12th July 2022

LONDON’S BUSINESS NEWSPAPER

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CITYAM.COM

FREE RAIL OVERHAUL

The end of off-peak on UK trains?

JAMES SILVER

IT’S RISHI AND LIZ IN THE FINAL TWO AS MORDAUNT FALLS AT LAST MP HURDLE STEFAN BOSCIA THE NEXT Prime Minister will be Rishi Sunak or Liz Truss, after they prevailed in a nail-biting Tory leadership vote yesterday.

The pair kicked Penny Mordaunt out of the race at the final MP vote, after the trade minister appeared to be the candidate to beat last week.

Mordaunt supporters were left furious last night and blamed a “smear campaign” against their candidate, after a flood of press stories about her record in government emerged in recent days.

The next Prime Minister will now be

determined by the Conservative party’s 200,000 grassroots members, with the results to be announced on 5 September.

Truss is favourite with bookmakers, after coming out on top of a YouGov poll of Tory members yesterday.

She is running from the right of the party and promising immediate widespread tax cuts, while Sunak is a unity candidate who has claimed Truss’ economic plans would fuel further inflation.

Truss said she “would hit the ground running from day one, unite the party and govern in line with Conservative values” if she wins the leadership contest.

Sunak said in a post-vote interview that “I'm the only candidate who can” defeat “Keir Starmer and the Labour Party at the next election”.

Yesterday ended a bruising week for the Tory party as the campaign became increasingly vicious the longer it carried on, with the candidates refusing to take part in a Sky News debate on the grounds ‘blue on blue’ attacks were not helping the party.

The Mordaunt and Truss campaigns were particularly hostile to each other in the hours leading up the final MP vote.

This included Mordaunt sharing an article on Twitter that claimed Truss and

Sunak would “murder the party” if made leader, which was later deleted.

The coming six-week campaign between Sunak and Truss could prove to be even more bruising.

A supporter of Mordaunt said the Sunak versus Truss matchup will “be a disaster for the party” and that they will “destroy each other”.

The vote came as Boris Johnson yesterday gave his final address to parliament as Prime Minister.

Johnson said it is “mission largely accomplished – for now”, while also invoking Arnold Schwarzenegger by declaring: “Hasta la vista, baby”.

THE BOSS of Britain’s new train operators’ body has called for an end to peak and off-peak tickets in favour of demand-led pricing similar to that used by car-sharing services like Bolt and Uber.

Andy Bagnall, boss of the new operators’ body Rail Partners, said customers expected the train network to be as responsive to demand as other methods of transport.

“Passengers want an industry guarantee that when you sell me the ticket, that does what I want it do, that will be the best possible price I can get,” he said.

The rail network is currently facing a summer of discontent with unions plotting strike action right across the country.

Bagnall warned it was unlikely that pay rises would be a quick fix to widespread industrial unrest.

“Train companies want to give their people a pay rise, but it has to be affordable and in the context of restoring the railway to a sustainable basis,” the executive told City A.M.

Sizewell C sized up by government as new nuclear power plants gets go-ahead NICHOLAS EARL SIZEWELL C is one step closer to construction after the government granted development consent for the proposed nuclear plant off the coast of Suffolk.

The 3.2 gigawatt power plant is scheduled to be the UK’s next

nuclear project after Hinkley Point C in Somerset, which is due for completion in 2027.

It is hoped Sizewell C will generate enough low-carbon electricity to supply six million homes.

The much-delayed project is estimated to cost at least £20bn.

Sizewell C is expected to be

funded by the regulatory asset base model, with taxpayers taking on the initial costs of construction, to incentivise private backing once the project is underway.

BRITAIN GOES NUCLEAR CITYAM.COM

PM BETS BIG ON NUCLEA R POWER IN ENERGY STRATE AND BUSINESS GROUPS GY BUT PROVIDERS COMPLAIN IT’S TOO LITTLE IN FACE OF PRICES CRISIS Prime Minister Boris Johnson said: to provide support “We’re setting

NICHOLAS EARL AND STEFAN BOSCIA

THE GOVERNMENT’s heavily trailed energy strategy failed to power much optimism yesterday, with one of the UK’s largest providers saying it offered little “that will deliver a solution this decade, let alone this year”.

The plans include a five-fold increase in offshore wind power, a quadrupling of nuclear power g i

out bold plans and accelerate affordable, to scale up clean and secure energy made in Britain, for Britain – from new nuclear to offshore wind – in the decade ahead.”

In particular, he talked up the government’s nuclear power declaring “nuclear is coming push, home” and that the UK would regain its “preeminence” in the field

for households during the current crisis, and for backtracking onshore wind proposals.

Eon UK chief executive Michael Lewis urged the government to encourage energy efficiency by providing people with the ability to insulate and improve their homes ahead of the winter.

Lewis argued such measures would “cut bills and carbon emissions t d ”

warning prices could rise again this year by a further 33 per cent to £2,599 per year in October.

Meanwhile, Emma Pinchbeck, chief executive of industry body EnergyUK called on the government to address “delays and barriers” preventing the development of onshore wind across the country.

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This model has been used to begin construction on the Thames Tideway Tunnel.

In March, the government revealed How we reported on Britain going nuclear in April

plans to take a 20 per cent stake in Sizewell C, with EDF also holding a 20 per cent stake.

The remaining 60 per cent would be held by private investors – with current investor China General Nuclear Power expected to be eased out of their current 20 per cent stake in the project.

INSIDE ROYAL MAIL AIL P3 EASYJET FOUNDER CALLS CEASEFIRE P4 INFLATION PUSHED BRITS TO INSTANT NOODLES P8 NETFLIX EXODUS CONTINUES P9 CRYPTO P12 SPORTS P18

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CITYAM.COM

THURSDAY 21 JULY 2022

STANDING UP FOR THE CITY

Tories’ final two must lay out a plan for Britain’s economic future

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ONGRATULATIONS to Rishi Sunak and Liz Truss, the two survivors in the Tory leadership race.

When they look at the in-tray should they become Prime Minister, they may wonder if it was worth it.

For on day one – whoever takes the gig – they will have to face up to the fact that Britain’s economic strength and the size of the state do not match up. In short: the former is lacking, and

THE CITY VIEW the second is expanding.

For all the ludicrous culture war waffle, the defining challenge that Britain has to face up to is that it cannot justify the size of the state as it currently stands.

Trend growth, disrupted though it is by the pandemic and the

inflationary impacts on the back end, will not keep pace with the size of the state: from pensions to welfare to the health service.

This defining challenge has barely been mentioned during the leadership contest, more interested in whether or not a woman with a penis can go in to a leisure centre changing room.

Whether or not Britain is ‘woke’ is not a debate that will help us solve our sizable economic challenges. It is now time for both

candidates to get serious, and lay out their solutions – or best efforts – to Britain’s demographic conundrum.

The first week or so of this contest has been absurdly rushed.

Only Sajid Javid and Tom Tugendhat have laid out anything close to substantial policies to address Britain’s myriad problems, from housing to the economy. It remains challenging, to be polite, to ascertain quite what the party stands for, and

RUSSIA’S ‘HUNGER GAMES’ Ukraine's first lady Olena Zelenska yesterday pled with US Congress for more air defence systems – showing testimonies of Russia’s bloodshed

whose vote it is attempting to sway at the next election.

Liz Truss and Rishi Sunak now have six weeks to put out their electoral stall.

If the Tory party yet again descends into internecine warfare, it is unlikely that the summer will be well-used. But we remain optimistic that the Conservative party possesses just enough new ideas that this so-far uninspiring leadership contest can turn for the better.

WHAT THE OTHER PAPERS SAY THIS MORNING THE DAILY TELEGRAPH

ROBOT CAMERA DEAL WITH CHINA BLOCKED IN FIRST USE OF NATIONAL SECURITY LAW

British academics have been blocked from sharing robot camera technology with a Chinese company in the first use of the government’s new national security powers.

THE FINANCIAL TIMES

DRAGHI ON BRINK AFTER COALITION PARTNERS WITHDRAW BACKING

Italian Prime Minister Mario Draghi’s government was unravelling yesterday as members of his national unity government walked out of parliament ahead of a vote of confidence.

THE TIMES

M25 DELAYS CAUSED BY JUST STOP OIL PROTESTERS

Just Stop Oil protesters at junction 10 eastbound near Cobham, Surrey climbed gantries on the M25 and declared the motorway a “site of civil resistance” as they pledged to block it for two days.

UK inflation races to fresh 40-year high – but economists warn worst is yet to come JACK BARNETT UK INFLATION raced to a fresh 40-year high last month, but economists have warned the cost of living squeeze is set to get even worse.

Prices surged 9.4 per cent over the year to June, the quickest acceleration since February 1982 and up from 9.1 per cent in May, the Office for National Statistics said yesterday.

A more than three decade high jump in motor fuel prices, up over 42 per cent, drove June inflation above the City’s expectations.

The new figures nail on the biggest

rate rise in the Bank of England’s 25 years of independence at its next meeting on 4 August, according to analysts.

Given “comments from governor [Andrew] Bailey” earlier this week “which firmly put a 50 [basis point] increase in bank rate on the table for the August meeting, we already have what looks like a big steer as to the forthcoming [monetary policy committee] decision,” RBC analysts said.

Bailey said at the annual Mansion House bankers’ dinner earlier this week that a larger rate rise is “on the table” next month.

Threadneedle Street has never raised

rates more than 25 basis points since it was handed control of UK monetary policy in 1997.

Mounting expectations of a historic rate hike have been sparked by economists forecasting inflation could surge to 12 per cent – six times the Bank’s two per cent target – in October when the energy watchdog may hike the cap on bills around 60 per cent.

Chancellor Nadhim Zahawi said: “Countries around the world are battling higher prices.”

The UK has the highest inflation rate in the G7, but the US and eurozone are also being hit by rising living costs.

BANK TO SWEAT AMID INFLATION SURGE “Much of the explanation for the inflation rate is international.

But given that further rises in the headline rate are expected when the household energy cap is increased in the autumn, the Bank of England is nevertheless feeling the pressure to demonstrate it is doing everything within its power to tackle those components of inflation that are home-grown.”

KITTY USSHER Chief economist at the Institute of Directors

“With further energy bill increases due to take effect from October, the peak in inflation is still some way off, and is not expected to return to the two per cent target before mid-2024. This means more pain is on the way for household budgets as the high rate of inflation continues to outpace wage growth, bringing down the real value of incomes across the UK... [rates will] reach two per cent.”

YAEL SELFIN Chief economist at KPMG UK

THURSDAY 21 JULY 2022

CITYAM.COM

Royal Mail warns of split as firm loses £1m a day CHARLIE CONCHIE AND LEAH MONTEBELLO ROYAL Mail chiefs yesterday warned that its postal service was haemorrhaging £1m a day as revenues across the group slumped 5.1 per cent in the first quarter of the year, with the firm now mulling to split the business in two.

Revenues at the flagship postal arm of the group plunged by £92m to £1.9bn in the three months to June, which bosses said reflected a slowdown in retail trends as well as the delivery of Covid-19 test kits that buoyed the firm’s performance through the pandemic.

Revenues across the group, including its Dutch logistics division GLS, fell to £3bn, down 5.1 per cent on last year but 14.1 per cent ahead of pre-pandemic levels. Bosses said the group had become increasingly reliant on GLS for returns – which saw a 7.5 per cent jump in revenues to £1.12bn – and they were now mulling a breakup of the two companies if the outlook fails to improve at Royal Mail.

“The pandemic boom in parcel volumes bolstered by the delivery of test kits and

parcels is over,” said Keith Williams, chair of Royal Mail.

“Royal Mail is currently losing one million pounds per day and the efficiency improvements which are needed for long term success have stalled.”

The update comes as the Communication Worker Union (CWU) served its notice to Royal Mail for its second national strike ballot over “unacceptable change proposals”.

The union is also refusing to back this year’s efficiency targets, meaning that £100m of the planned £350m in cost savings is under pressure.

A Royal Mail spokesperson said the second ballot was “another sign that the CWU are against the change required to modernise our business so we can compete, grow and succeed in the future”.

The union has already threatened the postal firm with the biggest strike of the summer over pay, following a landslide ballot result on Tuesday, when 97.6 per cent of voters voted in favour of industrial action.

Royal Mail offered a deal worth up to 5.5 per cent for CWU grade colleagues, which the CWU rejected.

Bulb Energy is still the UK’s seventh biggest supplier – home to 1.7m customers

Octopus submits only bid for collapsed energy supplier Bulb NICHOLAS EARL THE GOVERNMENT is weighing up Bulb Energy’s future after its auction process attracted just one bid.

Only Octopus Energy submitted a final offer for Bulb – as first reported in The Financial Times – after Masdar Energy and British Gas owner Centrica both pulled out of the running earlier this month.

Masdar, an Abu Dhabi-based company, had been in discussions with

the government but declined to bid.

However, they may still provide financing for Octopus’ bid.

The government has been keen to sell Bulb since it feel into de-facto nationalisation last November, where it has since cost energy users £3bn.

City A.M. understands there are “active and amicable” discussions between Bulb’s administrators, the government and Octopus over the terms of a potential deal – which remain undisclosed.

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UK to repeal hundreds of pieces of EU law in post-Brexit shakeup STEFAN BOSCIA MINISTERS yesterday tabled landmark post-Brexit legislation that will lay the foundation to scrap hundreds of retained EU rules on financial services.

The long-awaited Financial Services and Markets Bill sets up a mechanism to bin EU financial services regulations one at a time

and either replace them with brand new rules or with none at all.

The EU’s Solvency II directive, which forces insurance firms to put a certain amount of capital aside to withstand financial market shocks, is one of the first regulations set to be binned. The bill enshrines new powers that allow the government to force financial services regulators to review any decisions they have made.

The legislation will also force regulators to consider the City of London’s “growth and competitiveness” when making new regulatory decisions.

Andrew Pilgrim, UK financial services partner at EY, said: “The UK needs to ensure it does not fall behind other global financial centres, particularly New York, Paris, and Amsterdam.”

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THURSDAY 21 JULY 2022

CITYAM.COM

Easyjet founder calls for truce with airline management ‘scoundrels’ ILARIA GRASSO MACOLA EASYJET’s founder and majority shareholder Sir Stelios Haji-Ioannou has called for a ceasefire in the longstanding feud with the airline’s management.

The Greek-Cypriot entrepreneur was one of the many shareholders to vote in favour of an order for new Airbus planes at yesterday’s shareholder meeting, sources told the Financial Times.

The purchase – which was later

confirmed by the plane maker – consists of 56 A320neo as well as the upsizing of 18 A320neo into A321neo.

The deal’s total value is said to be around $6.5bn (£5.4bn).

“We’re pleased with the strong support that shareholders have shown today by approving the resolution,” said chair Stephen Hester.

The fleet’s renewal has been a reason for contention for almost 10 years, as the entrepreneur – who quit Easyjet’s board in 2010 – opposed the deal with Airbus in 2013.

In addition to vehemently rejecting the proposal, Haji-Ioannou tried to get rid of several executives including chief executive Johan Lundgren, but to no avail.

In 2020 he warned he would sue senior management, calling them “scoundrels” and accusing them of “squandering shareholders’ money”.

The olive branch comes at a delicate time for Easyjet, which has repeatedly made headlines amid ongoing travel chaos, with the airline cancelling 2.8 per cent of its 2022 flights.

HIRING TAKES OFF Gatwick recruits 400 security staff in bid to battle travel delays

GATWICK has hired 400 additional security staff over the last few weeks as the airport battles the ongoing travel chaos. Crowned the UK’s worst hub last week, Gatwick said it was still recruiting workers ahead of the peak summer period.

Rock bottom yet to fully hit, KPMG VC chief warns CHARLIE CONCHIE THE REALITY of the venture capital (VC) downturn is yet to be fully felt this year as deals struck in the first quarter of the year unrealistically buoy investment figures, a KPMG venture capital chief warned yesterday.

In a new Venture Pulse report, Big four firm KPMG said that funding levels globally remained “robust” despite VC investment dropping to a six quarter low of $120bn (£100bn) in the three months to June, as war in Ukraine, high levels of inflation, and rising interest rates rocked global markets.

But KPMG’s head of private enterprise in the US, Conor Moore, told City A.M. yesterday that investment levels would continue to tumble this year as the full force of the economic downturn began to bite.

“Have we hit rock bottom yet? My personal view is I don’t think we have,” he said in an interview.

“I sit in a lot of board rooms and a lot of board members don’t necessarily think we have. There’s more bad news to come and more uncertainty to come.”

Moore added that frothy funding levels and cheap cash in 2021 had fuelled

an unrealistic boom in valuations which was set to come crashing down over the next few quarters.

“Things were being valued at significantly higher amounts than they should have been by any economic, rational analysis,” he said.

“So we’re getting into a period here where there’s some more realistic valuations. And I’m not sure that kind of reality has been reflected in the statistics you’ve seen in this report.”

Klarna has been among the most high profile plunges in valuations so far, falling from $46bn to $6.7bn.

Moore’s warnings come after venture investment in the UK fell to $8.6bn in the second quarter, down from $10.2bn in the previous three months, as VC firms began to pull back from the deals that fuelled an investment boom in 2021.

Fintech firm Sumup was the most valuable UK deal in the second quarter of the year, raising $626.6m, while cleantech firm Newcleo raised $318.75m and Gocardless bagged $312m.

Private markets have been hit by a downturn that has rocked tech stocks, as investors grow wary of long-term growth amid a looming recession.

EU calls for 15 per cent cut in gas usage NICHOLAS EARL

The European Union has called on member states to cut gas usage by 15 per cent

THE EUROPEAN Union (EU) yesterday urged member states to cut gas usage by 15 per cent until next March as an emergency step heading into winter, when demand will be at its peak in the coldest months of the year.

The bloc’s executive arm, the European Commission, has proposed a voluntary target for all EU states to reduce gas use from August to March, compared with their average consumption in the same period between 2016-2021.

The move, which needs the backing of all EU states, will be discussed tomorrow so ministers can potentially approve it on July 26.

Currently, countries across the EU are scrambling to ensure storage facilities are 80 per cent full by November, with levels currently sitting at around 65 per cent.

The call for reduced consumption follows Russian President Vladimir Putin warning that supplies sent via Nord Stream 1 could be stopped unless a key turbine was returned from Canada in top condition.

Nord Stream 1 deliveries typically account for more than a third of Russian gas exports to the EU. European politicians argue that Russia is using equipment issues as a pretext to cut deliveries, while the Kremlin maintains that Russia is a reliable energy supplier and blames sanctions for reduced flows.

Sunak dangles red meat to Tories with onshore wind farm crackdown NICHOLAS EARL

Sunak is hoping to close a poll gap on Liz Truss with policies to win over members

FORMER chancellor and leading Tory leadership contender Rishi Sunak has committed to keeping in place tight planning rules concerning the construction of onshore wind farms.

He pledged yesterday to maintain the de-facto ban on building new onshore wind farms if he wins the

Tory leadership race and becomes the next prime minister.

Sunak told The Telegraph he would reverse Boris Johnson’s decision to relax the rules and let local communities agree to host turbines in return for cheaper electricity bills.

This was outlined in the supply security strategy, published in April.

He said: “Wind energy will be an

important part of our strategy, but I want to reassure communities that as prime minister I would scrap plans to relax the ban on onshore wind in England, instead focusing on building more turbines offshore.”

Sunak is currently ahead in the leadership race with MPs, but finds himself behind in membership polls to rival Liz Truss.

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CITYAM.COM

Recession fears cause slump in City M&A value EXCLUSIVE

CHARLIE CONCHIE THE VOLUME of deals in the UK’s financial services sector rose to a sevenyear high in the first half of the year but a looming recession and economic uncertainty caused the value of transactions to plunge, new figures have revealed.

A total of 136 deals were announced in the six months to June – up from 118 in the same period in 2021 – but deal value slumped from £10.5bn to £8.6bn, according to new figures from big four firm EY. The second quarter of 2022 also saw a marked slowdown in both volume and value as recessionary fears and geopolitical volatility hit M&A activity and caused dealmakers to pull back from execution.

“UK M&A activity had a strong

start to the year as expectations that the economy would bounce back to pre-pandemic levels were high,” said Tom Groom, UK Financial Services Strategy and Transactions Leader at EY. “However, although we are looking at a seven-year H1 deal volume peak, activity fell between the first two quarters of this year as geopolitical tensions began to impact the market, and have led to rising inflation and supply issues.”

Deals in wealth and asset management plunged faster than other sectors as total value fell from £6.1bn to £2.6bn compared to 2021.

The UK’s banking sector saw 34 deals in the first six months of the year, with Barclays recent £2.3bn acquisition of specialist lender Kensington pushing value from £3bn to £3.6bn.

Back equities Blackrock tells bargain hunters CHARLIE CONCHIE

Boss Nick Wiles said the payments firm was confident it would continue to grow

Paypoint revenues near £30m as firm’s shopping division booms CHARLIE CONCHIE PAYPOINT boss Nick Wiles yesterday said the firm was building on “strong momentum” as the payments firm reported a jump in revenues to £29.9m for the first quarter.

Revenues were up 6.2 per cent on last year in the 13 weeks to the end of June, in line with expectations, as sales rose across the firm’s three divisions.

Shopping divisional net revenue increased by eight per cent to hit £15.3m, while payments and banking were up 1.8 per cent on last year’s figures at £13.1m.

Meanwhile e-commerce, the firm’s smallest division, jumped 33.8 per cent to reach £1.4m.

Wiles added that the payment firm “remained confident” in delivering progress this year.

A PLUNGE in the value of European equities has presented an opportunity for bargainhunting investors to snap up stocks, a Blackrock investment chief said yesterday.

In a note, the fundamental equities team at the world’s largest asset manager said that European stocks had now priced in recessionary fears which made them a rosy option for investors looking for long-term value.

“Near-term economic gloom is already reflected in stock prices, in our view – and in the valuation gap between European and US stocks,” Nigel Bolton, co-CIO at Blackrock fundamental equities, said.

“Europe’s reliance on Russian energy supply puts the region in a vulnerable position as war rages on. But European equity valuations are now below their long-term average... whereas US stocks appear far more expensive on a historical basis,” he continued.

The guidance runs counter to market trends in recent months as investors pulled £6.9bn from UK equity funds in June as they looked to shelter from market volatility.

Retail investment platforms hail Austin Review potential ‘watershed’ moment CHARLIE CONCHIE INVESTMENT platforms yesterday hailed the Austin Review, which looks to improve further capital raising processes for publicly traded companies in the UK, as a potential “watershed” moment for retail investors .

The Treasury-led Secondary Capital Raising Review, chaired by Freshfields

partner Mark Austin, was published on Monday after being launched last year in a bid to boost the appeal of London as a place for firms to go public and include measures to force firms to open up secondary fundraising to retail investors.

The review was cheered by retail platforms, with capital markets funding firm Primarybid telling City A.M. the measures could

revolutionise retail investment.

“Challenging boards to include retail shareholders in all fundraisings was expected: it’s now a governance norm. But the Austin Review has gone beyond individual rights,” Mike Coombes, VP of corporate affairs said.

Retail Investment platform Hargreaves Lansdown similarly welcomed the review and urged ministers to take them forward.

Retail investment platforms think the review could revolutionise the industry

THURSDAY 21 JULY 2022

CITYAM.COM

FRC slams BDO and Mazars over quality of audits LOUIS GOSS THE UK’s accounting watchdog yesterday criticized mid-tier auditors BDO and Mazars over the standards of their work, after warning “significant improvements” are needed in the quality of both firms’ audits.

The UK’s Financial Reporting Council (FRC) said BDO and Mazars’ inspection results had worsened in recent years, as the watchdog claimed both firms’ efforts, in pursuit of paced growth, had seen them sacrifice audit quality.

“These firms have been growing too fast, picking up higher risk audits being dropped by their peers, without adequate controls to ensure high quality audits,” the FRC said in its annual Audit Quality Review (AQR).

After carrying out its annual inspections, the FRC said half of Mazars’ audits and more than two-fifths of BDO’s audits required “more than limited improvements”, as it called on both firms to put in place stronger quality controls.

The inspections saw both Mazars and BDO achieve the lowest scores of the eight auditors assessed as part of the FRC’s AQR, for the second year in a row.

The scores of all other auditors reviewed – apart from EY – improved compared to last year’s inspections, as 75 per cent of all audits assessed in this year’s review were determined to be acceptable, compared to 71 per cent in 2021 and 67 per cent in 2020.

However, FRC chief executive Sir Jon Thompson said that while the watchdog had observed “some improvement in audit quality at the largest firms, consistent, long-term improvement is still required across the market”.

“The FRC will continue to build on our assertive supervisory approach to ensure firms are consistently delivering high quality audit which will drive increased choice and resilience in the market over time,” Thompson said.

Grant Thornton achieved the highest score as Big Four firms KPMG, PwC, and Deloitte trailed closely behind.

LIKE A DEER IN HEADLIGHTS Deer strut their stuff in East London on stagger home

EXCLUSIVE

LOUIS GOSS A SLUMP in the market for legal services could see the UK’s top law firms put greater pressure on their lawyers to return to offices and push them to lay off newly hired staff, Keystone Law founder James Knight told City A.M. The push to get back to the

office could in turn benefit fullyremote law firms such as Keystone Law, in offering them a wider pool of talent to recruit from, as those who prefer to work from home seek out new, remote jobs.

The law firm founder said the current boom in demand for legal services means there is a “lot less pressure” on lawyers to return to the office, than there otherwise would

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EY split could bring in extra $10bn in Silicon Valley consulting fees SPLITTING EY in two could help the firm bring in an extra $10bn (£8.3bn) in advisory fees from the world’s major tech companies, by freeing it from rules that block the firm from both auditing and selling advice to major firms, EY’s global chief executive has said.

EY’s plans to separate out its audit business could allow it to begin selling consulting services to its tech giant audit clients, including Amazon,

be in a market slump.

However, the founder said any downturn could also see layoffs across the legal sector, as law firms cut those staff hired during the boom over the past two years’ “frantic hiring spree”.

He noted that as much as 99 per cent of Keystone’s new work is brought in by lawyers who join the firm from elsewhere.

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SEASONED photographer Kyle Moore captured deer at night in Romford as part of Samsung’s urban photography campaign using low-light photography. The deer have been known to roam from their home in Dagnam Park.

Google, Oracle, and Salesforce, by freeing it from any conflicts of interest that could arise in its current form, EY chairman and chief executive Carmine Di Sibio told the Financial Times.

The comments come as EY mulls plans to break up its global business, with a view to listing a 15 per cent stake of its consulting business on the stock market in a bid to raise $10bn.

EY’s leadership team is set to meet in New York this week to discuss the plans for a split.

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Slump could see lawyers return to offices Keystone Law chief says

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THURSDAY 21 JULY 2022

CITYAM.COM

Hospitality sector least likely to give staff raises while tech bolsters pay HOSPITALITY is the least likely industry to offer workers a pay rise, according to new data.

Although pubs and restaurants have been forced to boost wages in recent months in a bid to abate staff shortages, the industry is still lagging behind others with offering staff raises, according to Fourth research.

A survey of 5,100 Brits asked individuals if they had considered asking for a pay rise amid the cost of

living crisis.

Just 2.4 per cent of pub and restaurant workers were voluntarily offered a pay rise, the lowest out of all industries.

Some 17.9 per cent of hospitality workers who asked were granted a pay rise.

Computer and technology bosses were the most generous, with some 8.1 per cent offering extra funding amid the economic crunch.

This was followed by the pharmaceutical and entertainment

Consumers turn to instant ramen amid cost crisis

MILLIE TURNER

SHOPPERS are increasingly turning to budget meals amid the cost of living crisis, the boss of consumer goods giant Premier Foods said yesterday.

The popularity of its instant ramen brands Nissin and Batchelors, which own Cup Noodle and Super Noodles respectively, has jumped in the second quarter of this year, as household budgets become increasingly stretched with inflation hitting 9.4 per cent.

Soaring energy prices will also have some consumers “looking for ways to reduce their usage of ovens,” Chris Beauchamp, chief markets analyst at investment platform IG told City A.M. Grocery sales grew by more than six per cent in the three months to 2 July, as consumers steered towards home cooking instead of dining out.

Sweet treats also rose by around five per cent, carried by popular brands such as Mr Kipling and Cadbury cake, as households turn to smaller rewards instead of larger luxuries.

While the average price for the budget

brands’ instant noodles ranges between 80p and £1.50, consumers could be lured by cheaper supermarket ownbrands, financial analyst at stockbroker AJ Bell, Danni Hewson, cautioned.

“Despite featuring many household favourites, Premier Food’s product portfolio is not immune to the risk of consumers trading down to cheaper supermarket own-brand alternatives,” she said.

However, Premier Foods’ ability to shield consumers from major price hikes has caught the eyes of investors.

The manufacturer’s Premier Foods said it had seen an uptick in sales of its instant noodles share price edged up slightly yesterday and is up 5.5 per cent on the year.

“We have made good progress in recovering our input cost inflation through a range of measures, including cost efficiencies and pricing, and we continue to monitor the situation closely,” Premier Foods CEO Alex Whitehouse said in a statement. “We remain firmly on track to deliver our expectations for the year.”

sectors, with around 5.5 per cent of workers receiving rises for both.

Bank of England governor Andrew Bailey recently said there was a “societal question” over whether workers should be asking for pay rises, with inflation standing at a 40year high of 9.4 per cent.

“I do think people, particularly people who are on higher earnings, should think and reflect on asking for high wage increases,” Bailey told cross-party MPs on the Treasury select committee earlier this year.

Just 2.4 per cent of pub and restaurant workers have been offered a pay rise

LOW FAT MILK

New data published yesterday showed rocketing food inflation, with prices of groceries climbing

26.3

BUTTER

21.5% COFFEE

13.2%

EGGS

11.5%

ICE CREAM

8.9% Source: ONS

EMILY HAWKINS

Food price hikes spell a ‘difficult road’ ahead as grocery inflation approaches 10 per cent EMILY HAWKINS FOOD inflation is edging closer to 10 per cent, with firms warning price rises need to be “brought to heel”.

The Office for National Statistics revealed yesterday that food inflation sat at 9.8 per cent in June.

Low fat milk has seen the sharpest increase in price, rising 26.3 per cent over the year to June 2022, followed by the price of butter, which was up 21.5 per cent.

Former M&S boss Justin King told The Sun food inflation could rise to as much as a staggering 12 per cent.

Everyday staples have also increased, with bread up 9.7 per cent and eggs up 11.5 per cent.

Businesses and households faced “a difficult road” ahead, Helen Dickinson, chief executive of the British Retail Consortium, admitted.

The war in Ukraine and Covidrelated supply disruption has caused food prices to sky-rocket this year.

Food prices have been driven upwards by surging global commodity prices and elevated costs of animal feed and fertiliser, following Russia’s invasion of Ukraine.

Prices have risen the most rapidly in

categories including dog food, butter and milk, Kantar data said.

These hikes will cost Brits an extra £454 in grocery bills per year, Kantar also said this week.

It comes as restaurateurs are being forced to fork out more and more to create Brits’ favourite dishes.

Dairy costs have surged the most for hospitality businesses, with increases of up to 40 per cent, according to data from around one thousand pubs and restaurants collected by Fourth.

Grains, including pasta and bread, have also rocketed by 35 per cent, with meat up by a similar rate.

Bloomsbury says increased reading here to stay amid record book sales EMILY HAWKINS

The pandemic-induced reading boom looks set to stay

LONDON publishing house Bloomsbury has said it is confident a new cohort of book lovers are here to stay after posting elevated growth for the year so far.

The Covid-19 pandemic inspired many consumers to pick up paperbacks, with lockdown giving rise

to Tiktok reading trends.

According to the Harry Potter publisher, increased reading is “here to stay”, with Nielsen data showing record consumer book sales in the first half of 2022.

With the addition of non-consumer titles, including academic books, Bloomsbury revenue hit £80.2m in the first quarter, marking a growth of 27

per cent on the same period in 2021.

Bestsellers included celebrity chef and television presenter Paul Hollywood’s Bake, alongside the Harry Potter series by J.K. Rowling.

Current market consensus place the publisher’s forecast annual revenue at £242.6m.

The publisher’s share price rose two per cent yesterday.

THURSDAY 21 JULY 2022

CITYAM.COM

Annual price rise of UK homes outpaces average salary in supply shortfall

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JD Sports in exclusive talks with Aurelius CITY A.M. REPORTER

MILLIE TURNER

It comes as rents in the UK rose by three per cent in the year to June, after UK HOUSE prices rises have outpaced a jump in May. the average annual wage, according to Rental costs have hit a monthly averofficial figures yesterday, pushing age of £1,450 in London and £795 homeownership further out of in the rest of the country, the reach. highest ever recorded outside ANNUAL The average cost of a home of the capital.

HOUSE PRICE jumped by £32,000 in the Nicky Stevenson, managGROWTH year to May, more than the ing director of estate average annual wage of agents Fine & Country, £31,252, the Office for Naadded: “The UK may be tional Statistics revealed. flirting with recession but “It is hard to see how there you wouldn’t know it lookwill be a property crash when ing at annual house price the shortfall in property stock regrowth. mains a constant problem, though ris“While transaction levels have ing interest rates are tempering buyers’ dipped, the shortage of homes across enthusiasm,” managing director of Lon- most of the country remains acute and don-based property finance specialist we are still in the midst of an unpreceAdvias, Edward Checkley, said. dented boom.”

£32,000

NEWS

Around 40,000 workers at Network Rail and 14 other operators are set to strike

Brits face zero rail services on some lines in July RMT strike ILARIA GRASSO MACOLA NETWORK Rail has warned passengers that limited to no services will run on 27 July, the first of an additional three-day strike called by the union RMT last week.

The government-owned operator said that timetables will be cut down

to 20 per cent of trains, with services dropping to zero in some areas.

Network Rail chief exec Andrew Haines accused RMT of being “hellbent... on political campaigning, rather than compromising”. RMT rebutted the comments, accusing the Department for Transport of meddling into the negotiations.

FTSE 100 retailer JD Sports Fashion is looking to sell up its Footasylum chain to the Aurelius Group following months of talks with the UK competition watchdog.

As first reported by Mark Kleinman for Sky News, JD Sports is in exclusive talks with the private equity titan, with a source suggesting that the retailer’s position as a ‘forced seller’ has inevitably reduced the price of the mega deal.

JD Sports and Footasylum were jointly fined £4.3m by the Competition and Markets Authority for sharing commercially sensitive information despite an order not to do so earlier this year. Executive chairman Peter Cowgill stepped down in May after 18 years, and has since been replaced with Morrisson’s former chair Andrew Higginson.

City of London update

‘Al fresco’ dining licences boost hospitality sector

S

QUARE Mile pubs, bars, cafes and restaurants are gearing up for a summer of ‘al fresco’ dining, after the City of London Corporation has agreed to offer free pavement licences to hospitality businesses.

This extension to the organisation’s Al Fresco Eating and Drinking Policy, means businesses can apply, free of charge, for a licence to seat customers outside until September 2023.

Stranger Things maker Netflix’s total revenue for the first quarter of 2022 was $7.97bn, missing analysts’ expectations of $8.04bn

Netflix and chill: Markets unfazed by subscriptions LEAH MONTEBELLO INVESTORS let out a sigh of relief this week after Netflix’s subscriber tumble was far less dramatic than initially predicted.

Announcing its second quarter results late on Tuesday, the streaming giant said subscribers dipped by 970,000 April through June, significantly under the two million estimate first forecast back in April.

The news saw Netflix’s shares climb as much as ten per cent in after-hours trading, buffered by the company’s claims that new customer additions for the next quarter would amount to one million.

While this was below initial Wall

Street expectations of around 1.84m, equity research analyst at Quilter Cheviot Ben Barringer said that the reality is that Netflix remains “an important business in the post-Covid age”.

He added that while competition in the video streaming space was crowded, new ventures, including exploring options for password sharing and advertising, could be a key driver for returning to growth and market confidence.

Nonetheless, equity analyst at Hargreaves Lansdown Sophie Lund-Yates said the battle for content was one of the biggest hurdles for Netflix moving forward.

“In today’s hyper-competitive landscape, having average content on offer

simply won’t cut it”, she said, highlighting rival Amazon’s acquisition of MGM as a major threat for Netflix.

Despite being the world’s biggest streamer, Lund-Yates suggested this could be a poisoned chalice for Netflix.

“Being big makes you stickier and harder to leave, the concern had been whether this giant was losing its edge, which means the benefits of scale start to slip away”, she said.

Netflix needs to throw spending at growing, rather than protecting a dwindling market share, LundYates suggested.

Netflix executives said on Tuesday that they expect to spend $17bn (£14.2bn) on their own content over the next few years.

The policy has proved popular with Square Mile establishments and there are currently 142 live licences.

The City Corporation recently announced its new flagship policy – Destination City – which will transform the Square Mile’s leisure offer, creating a leading destination for UK and international visitors, workers, and residents to enjoy.

The world(s) come to the City A unique sculpture trail is coming to the Square Mile to encourage City workers, residents, and visitors to take a journey of discovery to explore the many layers of our shared history, and how we can make racial justice a reality.

From 13 August to 31 October, The World Reimagined will transform the Square Mile’s streets with a free art trail of 10 globe sculptures, each of them designed by an individual artist who is responding to themes, including Mother Africa (pictured).

globes will bring people, families, and communities together to talk about how we understand our history, how our past shapes our future, and how we can act for social change.

Supported by the City Corporation, the

www.theworldreimagined.org

News, info and offers at www.cityoflondon.gov.uk/eshot

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NEWS

THURSDAY 21 JULY 2022

CITYAM.COM

Government unveils funding rounds to boost £9bn UK hydrogen agenda NICHOLAS EARL BUSINESS secretary Kwasi Kwarteng has met with industry leaders to boost the country’s hydrogen ambitions.

The government hosted a hydrogen investment summit where Kwarteng revealed plans to unlock £9bn of investment to strengthen hydrogen’s role in the country’s energy mix.

This includes the world’s first national clean hydrogen subsidiary scheme opened by the UK, where the government will use a contracts-for-

difference style set-up to help finance an initial one gigawatt of green hydrogen projects by 2025 – enough hydrogen to fuel up to 45,000 buses per year.

The funding round will help power government plans to reach 10 gigawatts of low-carbon hydrogen by 2030, in line with the supply security strategy unveiled in April.

In recent months, the government has also opened applications for the £240m Net Zero Hydrogen Fund, and has also published the Hydrogen

Investor Roadmap.

Energy minister Greg Hands has also announced the opening of the joint allocation round for electrolytic (green) hydrogen projects.

Green hydrogen uses an electrical current to separate hydrogen from oxygen in water.

Alongside the funding rounds, Kwarteng confirmed the hiring of Jane Toogood as the UK’s first Hydrogen Champion– who will work to bring industry and government together on future projects.

Business secretary Kwasi Kwarteng is keen to boost the UK’s hydrogen ambitions

BLAZING UK’s ‘hottest day ever’ recorded temperatures of 40.3C with fires breaking out in and around the capital

ACCORDING to the Met Office, over 34 UK locations beat their previous record of 38.7C from 2019, with 40.3C recorded in Lincolnshire. The London Fire Brigade declared a major incident after a string of blazes broke out in homes and buildings around the capital, with residents forced to evacuate and people being taken to hospital – firefighters described the conditions as “absolute hell”. Dr Nikos Christidis, climate attribution scientist at the Met Office, said the likelihood of“extremely” hot days in the UK had been increasing and “will continue to do so during the course of the century, with the most extreme temperatures expected to be observed in the southeast of England”.

GREEN JOBS Think tank calls for jobs plan to boost energy sector and help UK level up GREEN Alliance has called on the government to develop a jobs plan boost the green energy sector across the UK. This could help “level up” regions that most need it while meeting net zero goals.

Uniper edges toward state bailout as Europe’s energy crisis deepens NICHOLAS EARL UNIPER is closing in on a muchneeded bailout from the German government, which is weighing up a 15-30 per cent stake in the company.

The package would be worth a single-digit billion euro amount, according to Reuters.

A rescue deal must be agreed by

25 July, when the German utility could face more serious funding issues as a result of reduced gas supplies from Russia.

The troubled utility giant is bleeding cash in the wake of reduced gas deliveries from Russia, which has seen prices spike amid disruption in flows via the Nord Stream 1 pipeline.

Currently, it is being forced to buy

supplies at much higher prices from alternative sources due to Gazprom reducing deliveries.

The Kremlin-backed gas giant is Uniper’s main source of gas supplies.

Alongside financial relief, if the government takes a direct stake in Uniper, it will boost the utility’s credit rating, which is just one notch away from junk.

THURSDAY 21 JULY 2022

CITYAM.COM

NEWS

11

What does an editor look like in 2022?

Instagram tops news sources for teens LEAH MONTEBELLO FRESH data has revealed that Instagram is the most popular news source among British teenagers, intensifying calls to regulate Big Tech as news providers.

According to a new Ofcom report, youngsters are turning away from traditional news channels like the BBC and instead looking to Instagram, Tiktok and Youtube to keep up to date. Meta-owned Instagram is used by nearly three in

10 young people for news, whilst Tiktok and Youtube are close behind with 28 per cent of youngsters scrolling through their news feeds.

Director of the Internet Policy Unit at the Tony Blair Institute Max Beverton-Palmer told City A.M. that while the figures are “unsurprising”, it does raise questions for what needs to be done to regulate social media companies.

“We need to ask ourselves, what does an editor look like in 2022?”, he said, adding that the influence of a

City mustn’t fear mental health conversations MICHIEL WILLEMS THE BOSS of wealth management firm Quilter has warned there are still workers who are scared of discussing their mental health.

Longtime boss Paul Feeney told City A.M. that “we often refer to culture as the ‘soft’ aspect of business, when in fact it’s the hardest thing to get right”.

Feeney said the “City is changing, but it will take time.”

Feeney, who has been a long-time advocate of better mental health across the City, warned that a “culture of cutthroat competitiveness” could lead to burnout.

The firm is due to report its half-year results in mid-August.

Feeney also said that it “increasingly looks like a recession is coming” but said that investors should dial back into the equities market sooner rather than later.

“The market represents an amalgamation of global investors’ views about the future – not what is happening today, and pain in the stock market historically ends before a recession does,” he said.

“If you wait for the end of a recession before

switching back to stocks, you tend to miss out on a substantial chunk of the market’s recovery.”

Quilter shares are down some 40 per cent since the wealth manager floated on the stock market in 2018.

Feeney told City A.M. that the £100bnplus asset manager would “harness technology to create a much slicker client experience”.

“The pandemic brought the future forward, prompting seismic shifts in consumer behaviour and upskilling when it comes to technology,” he said.

“This isn’t because our clients wanted to access and speak to their wealth manager, but because they wanted to see their families online.”

Feeney did say that he didn’t believe technology could completely replace the wealth manager community.

“So called ‘robo-advice’ failed in the UK and that’s because it remains the case that you can offer a fantastic online interface, but you still have to make sure the phones are answered when somebody needs to speak to someone,” he said.

Quilter’s boss Paul Feeney

news feed and algorithm have become increasingly important in the way we consume news.

Beverton-Palmer said that although the Online Safety Bill, which has been delayed until the autumn, “takes you a lot of the way” in providing a framework for Ofcom to regulate Big Tech as news providers, there needs to be a combined approach.

He said there needs to be both selfregulation from the likes of Instagram and Tiktok, as well as a framework for guidance.

Ofcom said only a quarter of teens now use BBC One and Two for their news intake

ARCHITECTS SAY YES, YES, YES 100 Liverpool Street on the shortlist for Royal Institute of British Architects’ annual prize

HOPKINS Architects’ redesign of 100 Liverpool Street is on the six-long shortlist for the Royal Institute of British Architects’ annual prize. The office development – which encompasses a dramatic renovation of a 1980s office block – is one of a handful of developments which could take home the revered Stirling Prize. Other London projects in contention are the Orchard Gardens estate in Elephant and Castle, the Sands End Arts and Community Centre in Fulham and a primary school in Hackney.

Firms immune to billions in liabilities under current space tech regulations MILLIE TURNER

Even small pieces of space debris have the ability to cause huge damage

CURRENT space regulations mean companies are immune to the consequences of damage caused by their decommissioned tech in orbit, known as space debris, lawyers have told City A.M. “The liability for the collisions in outer space rests with the launching state of the spacecraft operator… It

does not deal with private players per se,” Akshay Sewlikar, managing associate at Linklaters, said. “The current treaties on space law were drafted and agreed in the 1970s and 80s and need an overhaul.”

It can be difficult to identify which country initially launched debris, which means governments too can avoid paying billions in damages.

This week, SpaceX snagged the

£212.6m contract to launch Nasa’s latest billion-dollar telescope.

“Even small objects have the ability to cause huge damage in space, given the speeds at which they travel – a speck of paint smashed a window of the ISS in 2016... If the new telescope were hit by space debris, the question as to who would foot the bill for the damage is unclear,” Rachael O’Grady, partner at Mayer Brown, said.

12

MARKETS

CITYAM.COM

THURSDAY 21 JULY 2022

Connecting the Community

London assets giant Shroders dips a toe in crypto waters

L

ONDON-based asset manager Schroders has revealed it has taken a strategic minority stake in blockchain and digital asset specialist Forteus.

Forteus is the asset management arm of the Numeus Group – a diversified digital asset investment firm headquartered in Switzerland.

Numeus, led by Nobel Gulati – former CEO of Two Sigma Advisers – was founded by an expert team of finance, blockchain and technology professionals who have a shared passion for digital assets alongside many years of experience from global institutions.

Schroders has chosen to invest in a specialist in blockchain technology and digital assets in order to support its ongoing education and research in the sector and to develop investment solutions for the benefit of its clients.

Learning from the Numeus research and technology platform will, Shroders says, enable it to harness the transformational benefits that blockchain can bring to the asset management industry and develop its tokenisation strategy.

Forteus will offer a range of investment solutions which span customised portfolios of external managers, yield generation, actively managed thematic portfolios and, over the long term, tokenisation. Once available, Schroders will give clients access to Forteus capabilities where appropriate.

“Blockchain will be a catalyst for fundamental change within asset management, financial services at large, and many other industries more broadly,” said Peter Harrison,

I

BINANCE SLAPPED WITH $3.4M FINE BINANCE, the world’s largest cryptocurrency exchange, has been fined $3.4 million by the central bank of the Netherlands for operating unregistered in the country.

De Nederlandsche Bank (DNB) says it warned Binance a year ago about offering crypto services without its approval.

The DNB hit the exchange with its highest level of enforcement – a ‘category three’ fine “due to the gravity and degree of culpability of the non-compliance,” the DNB stated.

STUDY REVEALS CONTRAST IN US AND UK A NEW study by Klavivo suggests just 20 per cent of UK consumers think cryptocurrency is a worthwhile investment.

The research – which quizzed a thousand UK and a thousand US consumers – found 43 per cent of Brits believed crypto was unsafe.

Different views across the generations were also evident in the study, with 36 per cent of 18 to 24-year-olds certain cryptocurrency will form a mainstream future. It was a viewpoint shared by only 18 per cent of 45 to 54-year-olds.

By contrast, the US evidence showed 44 per cent of users surveyed believe crypto was the future of money.

Group CEO, Schroders.

“It not only has the potential to transform the efficiency of existing solutions but will drive the democratisation of private assets; it represents a new frontier of technological and financial innovation.”

Nobel Gulati, Numeus Group CEO added: “We are very excited to welcome Schroders as a founding investor in Forteus. Together, we will build upon Numeus’ expertise in digital as-

sets, technology and quantitative research combined with Schroders’ leading brand, vast capabilities in asset management and global distribution.

This will enable us to serve investors who up until now have struggled to access robust investment opportunities in this fast-evolving asset class.”

Gideon Berger, former Co-CIO of Blackstone Alternative Asset Management, is Forteus Chairman (nonexecutive). The business is based in

the heart of the Crypto Valley in Zug, Switzerland and also has an office in New York.

Schroders plc, founded in 1804, is a multinational asset management company employing more than 5,000 people worldwide in 32 locations around Europe, America, Asia, Africa and the Middle East. Based in the City of London, it is traded on the London Stock Exchange and is an integral member of the FTSE 100 Index.

Ethereum taking the lead on crypto recovery T’S been a strong week in the crypto markets, with the price of Bitcoin climbing above $23k for the first time in more than a month on Tuesday. The largest cryptocurrency has managed to hold that level, approaching $24k on Wednesday. Can it sustain the momentum?

Ethereum has seen the most remarkable recovery, posting an astonishing 50 per cent gain over the past seven days to more than $1,500 as of last night.

The move comes amid apparent progress in Ethereum’s long-awaited

CRYPTO NEWS IN BRIEF

network upgrade, which some analysts claim will make the second-largest cryptocurrency more environmentally friendly. On July 14 the Ethereum Foundation member Tim Beiko suggested September 19 as the tentative launch date.

Structural effects might have also contributed to lifting Ethereum and other tokens. Last week, Celsius repaid its DeFi loans. This contributed to reducing the downward gravitational pull enforced by potential liquidations and contagionrelated uncertainty.

Other major cryptocurrencies including Solana and Avalanche have soared too this week, with many posting weekly gains in excess of 30 per cent. The recovery means that the total market capitalisation of all cryptocurrencies has risen above $1 trillion for the first time since early June.

Can it now continue to build?

The positive price action means investor sentiment has also climbed, with the Fear and Greed Index ending its record-long 74-day streak in the ‘extreme fear’ zone on Tuesday. The index, which analyses emotions and sentiments to

gain an impression of how the market is feeling, was up to 31 yesterday – its highest level since April 11.

The news is all the more positive given that inflation continues to dominate the economic news, with the US June CPI that measures US inflation well above the expected 8.8 per cent at 9.1 per cent.

ALARM BELLS RINGING OVER ZIPMEX THAI cryptocurrency exchange Zipmex has triggered alarm bells with investors after last night announcing withdrawals were being suspended.

“Due to a combination of circumstances beyond our control, including volatile market conditions and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform we would be pausing withdrawals until further notice,” a statement read.

Earlier this year, Zipmex had been in line for a takeover by Coinbase. The acquisition fell through last month, with Coinbase making what it described as “a strategic investment” of an undisclosed sum.

ALCHEMY CONCOCTS IMPRESSIVE NUMBERS ETHEREUM may have been taking all the plaudits for apparently leading the latest crypto market comeback, but ‘performance of the week’ goes to little-known token Alchemy Pay (ACH).

Sitting just inside the top 100 most popular cryptocurrencies, the platform has a market cap of just $91.5m. However, it posted a 24 hour rise of 46 per cent yesterday, with a seven-day lift of more than 60 per cent.

The ACH price last night stood at $0.0192 – albeit a far cry from its August 2021 all-time high of $0.16.

FOR ALL THE LATEST NEWS, VIEWS AND ANALYSIS HEAD OVER TO CRYPTOAM.IO

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THURSDAY 21 JULY 2022

CITY DASHBOARD

BEST OF THE BROKERS

FTSE loses Wall Street bounce to finish lower as big lenders stumble

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LONDON REPORT

BOOST from a bumper day on Wall Street yesterday was not enough to help London’s FTSE 100 finish higher today. The capital’s premier FTSE 100 index shed 0.44 per cent to close at 7,264.31 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, added 0.61 per cent to reach 19,399.84 points.

A bright day stateside on Tuesday, which saw the Dow Jones and other top indexes post their biggest surge in a month, initially lifted market sentiment in the City and the FTSE 100.

However, those gains were quickly cancelled out around midday.

Banks led the premier index lower, suggesting investors were more fearful of the blow surging inflation cooling the UK economy will deal to their bot-

MARKETS

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888 HOLDINGS P

153 152 151 150 149 148 147 146

152.5

20 July

14 July

tom lines than the boost they would receive from a big interest rate hike.

Lloyds, HSBC and Natwest all closed down more than one per cent.

Figures published by the Office for National Statistics yesterday revealed inflation hit 9.4 per cent last month, higher than analysts’ expectations of 9.3 per cent.

Those figures ramped up bets on the Bank of England launching a 50 basis point rate rise, its biggest since it was made independent in 1997.

Higher interest rates tend to help banks by allowing them to charge more for loans.

However, lenders tend to perform badly in recessions due to consumers cutting spending.

The pound continued to fall against the dollar despite growing expectations of a historic rate rise. It weakened around 0.18 per cent to buy $1.1969.

European shares finished lower.

15 July

18 July

19 July

20 July

Peel Hunt gave gambling titan 888 a ‘Buy’ rating yesterday, citing the fact that the stock is currently trading on a single-digit PE despite the immense potential for profits thanks to £100m of targeted cost synergies and revenue growth. However, brokers downgraded the target price for the company from 600p to 500p due to the high cost of debt funding the William Hill acquisition.

DIRECT LINE INSURANCE P

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220 210 200 190

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Peel Hunt maintained its ‘Add’ rating for Direct Line yesterday, stating that the company was “being forced to catch-up with accelerating claims inflation across its Motor book as margins begin to erode”. Brokers said they remain confident that the “diversified model will remain resilient”. Despite this view, they dropped the target price for the insurance firm from 315p to 220p.

STREAMER MILKING THE COW Netflix is

guilty of being too reckless with its spending on content in recent years, chasing quantity over quality and paying too much to attract star talent. Reining that spending in, and focusing on quality, would be to the company’s benefit longer term.

DANNI HEWSON, AJ BELL

CITY MOVES WHO’S SWITCHING JOBS KNIGHT FRANK

Property consultancy Knight Frank has named its new head of farms a real estate, after Clive Hopkins retired after more than three decades with the firm.

Will ‘Stan’ Matthews will oversee day-to-day management of the specialist unit, having joined Knight Frank in 2003.

The team itself has undergone a reshuffle in recent weeks, with internal

moves including George Bramley and Alice Keith also stepping into the team.

“I am delighted for Stan and his newly bolstered team – there is no doubt they offer a formidable combination of black book contacts, best in class sales strategy and the most up to date thinking when it comes to the burgeoning trends of ESG, diversification and rewilding for aspiring rural landowners.,” head of the country department, Edward Rook, said.

TURNKEY LENDER

Fintech B2B software company Turnkey Lender, which specialises in artificial intelligence, has appointed a fresh

chairman of the board.

Christian Moralesas, whose appointment follows the closing of £8m funding round, brings over 40 years’ worth of experience in leadership roles in the tech industry.

“We are excited to have Christian in our corner,” CEO and co-founder, Dmitry Voronenko, said. “As our new Chairman, I am certain his vision and experience in the market will help our business accelerate even faster on the journey to be a leading global financial services company.”

FINNCAP CAVENDISH

M&A specialist Finncap Cavendish has built out its

technology division with a new duo to co-lead.

Chris Malcolm, who joined the firm in 2017, brings some 17 years of experience to the top position.

While Anthony Platt, who has previously held senior roles at Grant Thornton and EY, is a transactions expert, having inked deals with the likes of Microsoft, Sony and Apple.

“Chris and Anthony have played a major role in helping our technology team deliver a wide range of transactions across the technology sector both in the UK and internationally,” managing partner John Farrugia said.

“With their combined expertise they are well placed to drive the next stage of growth.”

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com

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Money languishing in savings accounts can be put to better use this ISA season, as Suzie Neuwirth reports

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NEWSPAPER

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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 investas their savings versus in asset classes such ing their money or peer-to-peer loans. 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 on the next tax year, of opportunities With a plethora can be overwhelmoffer, the ISA market the best places ing, so we have analysedmoney. to put your hard-earned

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of the fund as the “You should think and indiin April, will hit six per centbe looking main course of your investment KING plates – slightly more better, inflation CASH IS NO LONGER that investors should fence waiting for vidual shares as side more lifted the base rate 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 for returns low but now might Coventry Building Historic stock mar- fun and interesting to follow. from an historic a eroding their savings.

December, and raised data as of 25 January from Moneyfacts. that best rate.” sure you first have that this can be 0.25 per cent last “You should make most average rates this year to 0.5 ket performance suggests is riskand then buy “Last year, we saw it again on 3 February although no investment core plate of investmentsthe edge.” across the savings UP EQUITIES around money in achieved, go to record lows out of the ISA wrap- EYEING per cent. individual shares ISAs losing savers 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 fees with “For a the perper, but they are position to confund that tracks inflation, which hit to pay a few different 2021 and is presays Rachel Springall, comfortable financial ISAs, which give index trackerthe stock market, on a his- have s ISAs. Th per cent in Decemberthan six per cent up again,” at Moneyfacts. in- formance of sider stocks and shares nance expert dicted to rise to more2022. steady process chance of outperforming of in them a good “It is a slow and during the course left languishing though. There was a base rate rise in Therefore, any money decrease in value in cash ISAs will

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NICHOLAS EARL

latest announce its OFGEM will consumer price update to the millions of cap today, with bracing for a households hike in energy painful price bills this spring. at Cornwall Energy analysts the cap, warned Insight have what suppliers can which limits tariffs, could year. charge for default per £2,000 rise to almost the energy Jonathan Brearley, ly chief, previous watchdog’s mechanism suggested the soaring should reflect wholesale costs. is expected to Downing St loan scheme roll out a £6bn £200 a g this week, providin household to rebate for every from rising soften the blow prices. taxpayers This will involve iting loans effectively underwr . c to suppliers for Economi The Institute City destination, but CHARLIE CONCHIE York as thetold favoured Mayer Affairs’ Andy will only political have indicated the plansinsiders that the A.M. relief for BRITISH chipmaker the government is keen to see the firm go per cent Arm is set to be provide partial come “at or above four ofaround a charm offensive to encourage in London. and will ldspublic will “remain at subject for househo of end ofto2022,” higher bills list intarget.

London rather than New York. source said “it shouldn't be expense AofWhitehall through to the itinflation from the Institute years five Julian Jessop, is betting the Bank will three to Japanese owner Softbankthe said may abesurprise that ministers would like a the Bank’s Arm’s today, rise double rate what a in Economic Affairs, at one Monetary Policy In preparationsthe yesterday it was making to loanBritish success story like Arm to float in is repaid.” before.

Markets are pricing out as caught whether been defy recent historymeeting this year and float the Cambridge-based chipmakerIt is alsoLondon”, a Treasury spokesperson unclearwhile but they have Bank expectations in the defied fallpush . will the Committee (MPC) r, after a $40bn (£29.5bn) takeover bid from said it would ahead with reforms to points, e prices Novembe energy d, triggering be the lift rates 0.5 percentag with US giantcompariso Nvidia collapsed listing rules toenergy make ns to amid hawkish tilt will and left rates unchange near future, capthe capital more and The Bank’s abrupt g dampening warning regulatory pressures. attractive to the major firms. volatility in markets trade body Carney’s Mark in October. economy driven by it prioritisin againlocal Softbank said it was.’eyeing up New MP said itto was “vital” the former Governor ‘unreliable boyfriend rises across the could rise Arm’s . an for suppliers rampant price g to the pandemic reputation as The inability e costs to rate and inflation instead of respondin

by City A.M. wholesal higher interest agitate Chancellor Rishi A polled on ts has pass cap, to the may Most economis peak at between 6.5 environment will customers, due estimates a one and is going bust. think inflation per cent in April Sunak. The Treasury in both would led to dozens point increase per cent and seven e soon. finances. percentag anytime to the public unlikely to cool developed markets deal a £23bn blow James Smith, said the cost of living economist at ING,

BRIT CHIP FIRM TO COME UNDER POLITICAL PRESSURE TO LIST IN LONDON NOT NEW YORK AFTER REGULATORY HURDLES END NVIDIA TAKEOVER PLAN LED BY NOMISTS POL firm listed in the capital. Politicians are T reportedly also wooing other soon-toTODAY AS ECO YEAR – AT LEAS float global firms.

ERS SET TO HIKE News of the float came after a bumper E TO COME THIS BANK RATESETT takeover bid from US giant Nvidia was DICT THREE MOR PRE finally kiboshed, with a combination of A.M. 2022, in CITY three times competition watchdog interest and lift rates a further Bank has raised

time the marking the first four times in a calendar borrowing costs– that’s the consensus will this year since year since 2004 A.M.’s poll of economists. cycle THE BANK of England forecast of City fastest rate hike a former rate setter embark on the tame rampant inflation in e Andrew Sentance, adviser to Cambridg 2004 in a bid to at its meeting of rate “three and now senior City said he expects the UK – starting Econometrics, this year” after today’s reveals an exclusive setters today – economists. further rate risesrates to 1.25 per cent by 18 A.M. poll of top ck rate hike in meeting, taking year.

The first back-to-ba today and will the of the end certainty agree with years is a near intent to rapidly shift Several top analysts Sachs and Capital signal the Bank’s rate g the British Sentance. Goldman supportin pricing in four from to both policy the pandemic Economics are t 2022. economy through inflation. to hikes throughou stamping out edle Street is set Threadne After today,

JACK BARNETT

LOUIS GOSS

pay more be forced to KPMG could damages for its role in giant than £1bn in construction auditing collapsed a Carillion. firm has received The Big Four the Official Receiver legal claim from

ent officer (OR) – a UK governm g Carillion’s for managin responsible requesting the firm pays News’ liquidation – of £1bn, Sky last damages in excess reported late Mark Kleinman by the night. being driven ’s The claim is duty to Carillion OR’s statutory

NE PLOTS SES P3 VODAFO H DEAL COLLAP INSIDE PLAYTEC

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

Windfall tax plans rubbished by economists after oil giant’s losses last year London must become tech payout claim lodged

NICHOLAS EARL North Sea gas impact.

The Labour Party have been pushing ECONOMISTS and BP’s boss rejected for a one-off levy on energy firms calls yesterday for a windfall tax on amid spiking household to costs. will be forced energy firms after the energy giant The auditor But Looney said at “the UK needs more which today, claim le for the be That’s announced healthy profits. gas, not less gas,case right now. will recognise been responsib of the for Bernard KPMG had details The British firm’s chief going to require more ’s accounts courtinvestment, not point the Carillion through the itself auditing public Looney said it earning would be misguided made to less investment.” two decades, work.and reducesystem. Calls for a tax raid almostlimit firmincreased in itsfor ability to invest its audit nds thehave s £29m in fees A.M. understa against the OR’s the provision City increased the itself KPMG has to all of plans to defend declined to comment. up to respond it has saved faces, from £92m claim. The firm nds. claims it currently understa A.M. to £144m, City

billion-pound gs around KPMG with Carillion collapse han recovery of maximise the creditors, to any losses. put the OR in The High Court ng Carillion in collapse charge of liquidati following the January 2018, lion-pound building go of the multi-bil saw the firm contractor, which debt worth £7bn. bankrupt with

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SCRUM DOWN New enjoy sizable priva Zealand set to te equity boost

MICHIEL WILLEMS

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 the funding of green energy projects rather than JACK BARNETT“showering politicians to the governmen subsidies over expensive vanity t’s spending bill ECONOMIC by projects.”growth is vital if state the end of the decade.

O’Connell said spending state spending at is not The report comes tobecome scale envisioned City has a hub reach “unsustain the as a raft of able” The by - ing pledges of levels, green experts financewarned in recent set out at the spend- was “unsustainable” the new report today.

A report and said growing from the ranking years.

A global

by Resolu- budgets have already put last two the economy was division Rene Haas taking over as chief think tank tion Foundation crucial. the size of the state on published analysts at Z/Yen put thetoday executive from Arm-veteran Simon Segar.

Pursuing a strategy vealed re- level since course to reach its largest tained a persistentl of achieving susat the top of the global Softbank boss Masayoshi Son said: the 1970s. y higher economic growth NHS bill and capital the The planned 1.25 to tree enormous for the first time 2021.

“Rene is the right leader to accelerate cost of in transitionpercentage point enue for the Treasury raise reving to net zero national hike, is more will swell the desirable The UK government is size Arm’s growth as the company starts the British of and dividend on top of corporation nances than balancing the public state under to historic fire for making preparations to re-enter the fitax hikes and the through proportionsincreasingly further in the to ing of income freez- perts said. tax hikes, excoming lay out the costs of public markets.” years. tax Thefailing costtransition raise the tax burdenthresholds, will of caringto “Avoiding the zero’ ageSon added that Softbank was aiming to for‘net Britain’s ing population level since the 1950s. to the heaviest and relative a period of weak growth will rows amid ongoing about the take Arm public before the end of the primarily drive a economic ramping up in John O’Connell, governmen cial,” the Resolution decline is cruof energy and the rollout financial year in March 2023. t spending chief executive to theprice tune Foundation said, the Taxpayers’ Alliance, of £76bn of adding that electric vehicle facilities. a year by the a protracted period of thisofdecade, told City A.M. taking the size end that “ministers must sluggishness after CONTINUED ON PAGE 3 of refuse of the state to the same the financial crisis LOMBORG:level PAGEas12Germany’s argument that spending the tired has wiped £200bn before cannot be ernment’s a year off the govthe Covid-19 crisis. reined in. spending Ramping up funding “Instead, they should Dan Tomlinson war chest. to reach zero targets will go for growth add £14bn each net by backing business Foundation said of the Resolution year taxes.” and cutting the coming national insurance increase was “small compared to tax hikes to come. fry”

P24

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

They lost billions in 2020, when the the week since Shell also revealed pandemic caused prices to plunge. chunky profits.

They regained some of this in 2021-22, BP lost £4.2bn in 2020 amidst a when economic activity restarted.” collapse in global demand for oil, Michael Hewson, chief market similarly to most oil majors.

CHARLIE CONCHIE analyst at CMC Markets, described the Speaking to City A.M., Andy Mayer Arm’s Japanese from the Institute of Economic AffairsTECH calls for a tax as “predictable”. leaders said on Tuesday owner Softbank said: “Fossil fuel energy companies governmen have called on the it was looking take the chipmaker to t to shake up UKPAGE 5 RESULTS AND ANALYSIS: have not enjoyed ‘windfall’ profits. listings rules after Nasdaq exchange public on the British chipmaker the owner of bid by American after a takeover rival Nvidia eyeing up a New Arm said it was collapsed.

York floatation for one of Britain’s Russ Shaw, founder most exciting companies. of Tech London Advocates the move showed , told City A.M. “there is a lot

INSIDE LV= AND ROYAL LONDON

MARRIAGE COLLAPSE

MATT HARDY result in a stake smaller PRIVATE equity firm 15 per cent anticipated than the when Silver to acquire a stake Silver Lake is set Lake and NZR held of talks in January cent in internationa around five per of last year. l rugby outfit the All Blacks which could The initial deal was commercial arm of see the been valued at aroundsaid to have valued at £1.5bn. the rugby team time and came a year £1.5bn at the The deal with New acquired a stake in after Silver Lake (NZR) would give Zealand Rugby Group – who own City Football the Premier minority shareholdin American firm a champions Manchester League be a new commercialg in what would The deal was originallyCity. holding the subject company. of a player rebellion, According to Sky News’ would represent the but if finalised latest – and Kleinman, the transactionMark biggest – private equity would move into rugby union.

float capital as Arm plan s to more work that to be done” to needs tempt tech firms into listing in the capital.

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

S P3 CO-OP BOSS TAKES

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9 FEBRUARY

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going to be a hard slog over the coming years.”

Janine Hirt, boss of UK fintech body Innovate Finance, said the government needs to push ahead with

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list in New York changes to the UK’s listings regime to make it more attractive for tech firms.

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OPINION

THURSDAY 21 JULY 2022

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OPINION EDITED BY SASCHA O’SULLIVAN

Hasta la vista! Boris waves goodbye but casts a shadow for his successor Will Cooling

T

HERE’S always an awkward moment when you start a new job, and someone comes round asking you to contribute to a collection for someone you barely know. That moment came unusually quickly for the dirty double dozen that Boris Johnson shuffled into the Cabinet room, with ministers who had been serving him for less than a fortnight being asked to fork out for his leaving present.

They played it safe by getting our journalist turned prime minister some rare first edition books written by Sir Winston Churchill. Johnson’s worship of the man who led Britain through the Second World War has always raised hackles from those who place the wartime leader on a pedestal. But for all his admirable qualities, Churchill was just as prone to reckless flights of fancy in his politics and chaos in his personal life, as Johnson is.

Indeed, the two men share more than that. They are part of an extremely rare group of prime ministers who were genuinely famous before they entered Parliament, never mind government.

Admittedly, Churchill making his name as a wartime correspondent is slightly more impressive than Johnson’s despatches from Brussels for the Daily Telegraph or appearing on satirical tele-

vision programmes. Their fame was matched with the length of their careers. That Churchill’s career in public life spanned the end of Queen Victoria’s reign to the beginning of the current Queen’s is legendary, but Boris Johnson’s longevity is similarly impressive. In an age that rewards freshness and tires of politicians quickly, he has somehow managed to be one of our most prominent media and political figures for nearly thirty years.

That fame and longevity was inevitably built on the ability to withstand setbacks that would end the careers of most politicians. Churchill set troops on striking miners, championed the doomed assault on Gallipoli, and supported Edward VIII during the

abdication crisis.

Johnson meanwhile was recorded “humouring” a friend’s plan to have a reporter beaten up, lied about paying for one of his journalists to have an abortion during their lengthy affair, and had the police turn up to his future wife’s flat after neighbours complained about his drunken argument with her.

No one could accuse Johnson of failing to take Churchill’s advice to “Keep Buggering On” to heart.

And Johnson’s dedication to the mantra will likely cause consternation for whoever does find themselves in Downing Street, as his spectre looms over them from the backbenches. His lessons from his idol are not over yet.

Nothing better demonstrated

Churchill’s sangfroid than when he shockingly lost the premiership in 1945.

He used the unexpected return to opposition to rebuild his finances and finetune his legend. He signed lucrative deals for his wartime memoirs and resumed work on projects delayed by the war. Those memoirs and his frequent speeches overseas were not only designed to defend his past record but sought to shape future events at the start of what became the Cold War. Johnson will obviously not have the moral authority nor the prestige to roam the global stage in the same way. But he will have the same ability to shake off the most shattering of personal defeats, a similar genius for attracting attention, and a shared determination to earn

Designs to adapt all our cities to extreme weather must dovetail with mitigation

O

N TUESDAY, the London Fire Brigade had over 2,000 calls on its busiest day since the Blitz. Extreme heat in the capital and across the nation sparked fires, with temperatures exceeding 40 degrees celsius for the first time.

Sixteen firefighters were injured, 41 properties destroyed, our runways and railways melted, and the NHS remains under intense pressure. The UK Health Security Agency issued a Level 4 National Emergency, with even fit and healthy people warned about a risk to health.

This isn’t the summer of 1976, and the public know that. Around 68 per cent of people think we should take the recent high temperatures seriously, with only 24 per cent buying into the “it’s just summer” excuse , according to a poll for Opinium. The percentage who think the situation is serious is even higher amongst older voters (who might well remember the summer of 1976).

Joe Tetlow

We’ve been warned, repeatedly about the risks of climate change, and yet failed to start investing in adaptation. We need to ensure our cities are well equipped to deal with these changes and redouble efforts to mitigate and prevent the worst impacts of climate change.

For national and local government, the drive to plant more trees is one of the cheapest ways to reduce carbon emissions from the atmosphere but also provide shade and cooling, as a means of adaptation. This is particularly true for urban areas like London.

Better still, trees provide cleaner air and reduce the risk of flooding during

heavy rain. Let’s not forget during this heatwave that flooding is now increasingly a threat too, with downpours flooding the capital’s tube network, roads and homes in October last year.

Home efficiency is another tool that is both an adaptation and mitigation strategy. We can make homes more comfortable whilst using less carbon intensive energy. Insulation can keep your home cool because external wall and cavity wall insulation will stop your home from getting as hot in the first place. Meanwhile, electric heat pumps are cleaner and more efficient than gas boilers, cheaper to run, and can also be used for cooling as well as heating.

Despite repeated promises from government to grasp the nettle, movement is frustratingly slow – and costly too. Installation of energy efficiency measures fell dramatically from 2012 onwards, as part of a cost saving drive, but we are all counting the cost today. Energy bills in the UK are nearly £2.5bn higher than they would have

been if climate policies had not been scrapped over the past decade.

Every year that we continue to rely on expensive and polluting fossil fuels is a year that we worsen the emissions in our atmosphere, hand over cash to autocratic petrostates, and leave household billpayers exposed to volatile fossil fuel prices.

In just eleven weeks’ time, twelve million families in the UK - almost half of the population - will struggle to afford to heat their home due to the price of gas. According to the latest predictions, the average annual energy bill will be £3,244 from 1 October this year, two and a half times more than October last year. The path we are on is unsustainable.

For the incoming prime minister, the choice is clear. We can cut the cost of living and cut emissions with a green economy, or we can delay action and pay a heavy price. £ Joe Tetlow is a senior political adviser to Green Alliance

money. Likewise, unlike his recent predecessors, his skills and personality will compel him to earn that money in public rather than through low-profile consultancies or directorships. Instead, his future will be resuming his lucrative career writing columns and books, appearing on television shows, and delivering humorous speeches.

This will, no doubt, be an awkward relationship to navigate. Theresa May also remained on the backbenches, and although her interventions have become more frequent, there were still far and few between. But each one of them garnered significant traction. Any grumbling from Johnson in future will no doubt be an easy way to snatch headlines for the soon-to-be-former prime minister.

And of course, Winston Churchill did much more than enjoy a lucrative retirement. He completed one final comeback by re-entering Downing Street after winning the 1951 general election. In his final Prime Minister’s Questions, a remarkably cheerful Boris Johnson ruled out the possibility that he would ever speak at the despatch box again.

But he used his final remarks to issue a forthright defence of his record in office and advise his successors to stay true to his stances on key issues such as the Atlantic Alliance, defence of Ukraine, Brexit, deregulation, and levelling up. It was a clear warning that should the Tory Party deviate too far from his legacy, Boris Johnson would not hesitate to criticise his successor and doom yet another Tory government. £ Will Cooling writes about politics and pop culture at It Could Be Said substack

MAY YOU JOIN ME? Theresa May was stony faced yesterday as she prepared to welcome Boris Johnson to the backbenches. The former PM, ousted by the outgoing leader, almost tried to stay sitting during the standing ovation and then refused to clap him out

THURSDAY 21 JULY 2022

CITYAM.COM

WE WANT TO HEAR YOUR VIEWS

LETTERS TO THE EDITOR Sharing the fraud blame [Re: Zahawi to outline plan to change EU’s City rules, July 18] The Financial Services and Markets Bill is a welcome step to help Authorised Push Payment (APP) fraud victims. But the onus on reimbursing fraud victims cannot be placed solely on banks. This fraud doesn’t happen in siloes. Other actors need to be incentivised to do their part. As a collective industry, we must relook at scam activity and ask, where is it first taking place? On social

media, through the telecom industry, via email or even post? We must understand how other players should also change the way they conduct business to make it harder for scammers to succeed. Banks must think of new ways to properly monitor incoming transactions. However it should not all be down to the banks to reimburse victims. Especially if they can show they have warned and informed consumers. Until we have properly investigated every actor involved in enabling and allowing this fraud to succeed, only holding banks responsible is an injustice in itself.

Jackie Barwell

PUTIN’S BACK, BACK AGAIN News outlet RT evades European sanctions

After Kremlin-backed Russia Today made clear it wasn’t going to stop spreading disinformation about the war in Ukraine, the EU sanctioned it. But the site has appeared all over the internet again in the form of copycat websites.

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Innovation can save our food system from climate threats

O

N TUESDAY, people in the UK experienced the hottest day on record. For those living in cities, there were sweltering commutes, walks through parched parks and a newfound gratitude for office air conditioning.

Overnight rain broke some of the heat.

But further afield, the National Farmers’ Union is warning of lower crop yields as a result of the heatwave.

This will mean even higher food prices as inflation hit 9.4 per cent yesterday.

We live in a world where space is at a premium - agriculture comprises 60 per cent of global land displaced by urban expansion since 1970. Against this backdrop, indoor farming is one solution to ramp up food production without turning over more land to agriculture and protecting against extreme weather shocks.

Indoor farming can provide higher crop yield per square metre and reduce food waste through controlled conditions which slim down the chances of crop failure. Shelf life of indoor produce is 3-4 times longer than open-field produce.

We saw the chaotic repercussions of a heatwave yesterday. Clearly, our infrastructure needs to adapt to the changing environment. The consequences of failure to invest were stark. So as we look to make our cities more resilient, we must do the same for the industries which struggle as the weather changes.

Indoor farming either needs purposebuilt assets – often using modular techniques – or existing buildings, particularly warehouses, which can be

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Catriona Hyland

retrofitted to cope with the specific needs of the industry. Warehouses and greenhouses located in and around cities can bring produce closer to where demand is highest.

Over the last two years, there has been a boom in investment for companies delivering groceries to our door in ten minutes or less. There needs to be a shift in focus from short-term convenience to guaranteeing food supplies for decades to come. The future of food is about long-term growth.

According to the UN’s Food and Agriculture Organisation, food production will need to increase by at least 60 per cent. In the West in particular, an ageing population threatens the labour

We need a shift in focus from shortterm convenience to guaranteeing food for decades

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pool - the fruit pickers, the tractor drivers - needed for traditional agriculture.

We’ve had three summers now of stories of crops rotting in the ground because of a lack of staff. This is food going to waste, while costs are going up. It is a flagbearer for inefficiency.

There are hurdles: high electricity requirements chief among them. This impinges on the margins of indoor agritech and leave the sector vulnerable to accusations of greenwashing. Indoor farms do require 90 per cent less water than traditional open-field methods.

But there needs to be significant development in how we power this sector. Some companies have already started to tackle this, for example through what’s known as “distributed networks”. Think of shipping containers which double up as smaller, automated farms, such as Boston-based Freight Farms.

Thus far, much of this innovation and investment has come from the US. But the European sector has shown strong signs of growth. For example, Amsterdam-based firm Source.ag is using advancement in AI to maximise energy efficient, profit and yield in both greenhouses and vertical farms.

The last few days have made our own homes feel like greenhouses. This is a lesson for us all: we must reorientate our efforts and shore up our most vulnerable industries to our changing climate. £ Catriona Hyland is a research analyst at A/O PropTech

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LIFE&STYLE

CITYAM.COM

THURSDAY 21 JULY 2022

LIFE&STYLE

The sweet smell of success Fashion icon Jean Paul Gaultier talks to Adam Bloodworth about Abba, trans models and working through retirement

Fashion designer Jean Paul Gaultier photographed in 2016 by Gorka Postigo.

I

t’s 9.30am and Jean Paul Gaultier is relentlessly turning over last night’s performance of ABBA Voyage. It’s far too hot for coffee so we’re sitting with a pair of orange juices and Gaultier is encouraging me to get stuck into the breakfast buffet. I politely decline because there are more important things at hand: discussing ABBA. “It fascinating,” Gaultier says philosophically. “Maybe [making an] avatar is to create a new person rather than duplicate someone?”

Recently turned 70, and supposedly retired since 2020, Gaultier’s passion for ABBA holograms is a bellwether for his ferocious appetite for culture. He’s as excited to imagine how holograms might work for his live shows as he is engaged about the US’s recent abortion ban; as interested in trans issues as he is about helping burgeoning designers get their break.

He appears to have no intention of behaving like a retiree. Twenty minutes after our conversation is supposed to have finished he’s still talking, his anecdotes taking the form of tidy monologues that leave little room for my list of unanswered questions. His English isn’t perfect but that doesn’t stop him tying seemingly non-sequitur points together, applying the same principle to language as he does his pioneering couture designs.

With a broad grin he regales me with the details of upcoming projects but keeps getting interrupted by his publicist, who swears me to secrecy. At one point Oscar-winning actor Marion Cotillard spots him and comes over for a chat. Celebrities including Kendall Jenner are still photographed in new season Gaultier and Kim Kardashian and her daughter North West were photographed on the front row of the brand’s haute couture show last month.

He is clearly a man able to keep many plates spinning – I wonder how he stays motivated after so long in the industry?

“I am lucky to have desire,” he smiles.

“When I have no more it will be finished, voila! But I am getting older, I feel it. My first reaction when I have a project is, ‘Do I have envy? Do I want it?’

It’s like, ‘Oooh I want to eat that,’” he says, holding both hands out to an invisible dish on the table. “It’s always

I am getting older but I am lucky to have desire. When I have no more it will be finished, voila!

the envy I am looking for. That desire.”

We’re meeting to talk about Fashion Freak Show, the cabaret-variety show written and directed by Gaultier, now playing at the Roundhouse in Camden.

Gaultier is played by a young male actor, and the show itself is something like a catwalk, a high-octane celebration of his most famous looks and career highs.

“In some way I always directed my fashion shows,” he says. “You have the light on the actress, light on the model, it’s the same.”

It was on the catwalk in 1976 where Gaultier began showcasing his natural sensibility to disrupt. Having interned for Pierre Cardin aged 18 he established a reputation for ripping up the rulebook, combining punk and high fashion and juxtaposing looks

that shocked: leather with sheer fabrics, men with dresses. He celebrated androgynous, black and bigger female bodies long before inclusivity was cool.

“In a restaurant, there are not men on one side and women on the other, so why a fragrance for men and women?” he says. “Smell is smell, food is food.”

Known as the enfant terrible of fashion, he says he always felt at home in

London, where he was inspired by Bowie, Boy George and Grace Jones.

It was 1990 when Gaultier hit the AList, after Madonna approached him to design 350 dresses for her Blond Ambition world tour. She wore a version of his iconic conical bra, first fashioned in papier mache for his teddy bear, Nana, when he was a young boy.

Going on to co-present outrageous late-night comedy sketch show Eurotrash, he transcended the typical behind-the-scenes reputation of most aloof designers, combining a largerthan-life screen presence with critical acclaim.

Probably the first designer to pay trans models to wear his clothes on the catwalk, I’m interested in how this champion of the underdog feels about the fight for inclusion in 2022?

“I think it’s fabulous,” he says. “The only thing is I hope it doesn’t become like a frontal fight. I heard for example there are some associations that say now to play in Priscilla Queen of the Desert, the one which is trans, it is a trans that plays a role.

“People have to be chosen for their performing and good acting. For example, sometime there is people that are playing gay and were excellent. Tom Hanks did it very well, Javier Bardem did it perfectly. Sometimes if the actor is excellent you have to choose it not because of his sexuality. Choose him because of the quality of the actor.”

When I ask about the first time he worked with a trans model, he says he didn’t intend to make a political statement. “She was great and fabulous – she didn’t look like…” he trails off and laughs. “She was looking truly like a woman, not a caricature of a woman.

She was looking like a modern girl.”

He goes on to say he doesn’t believe the fashion industry has a trans problem: “It’s changing, ideals about men, women, it’s evolution and fashion is supposed to be evolution. It’s a reflection of society.”

As the interview comes to a close I ask Gaultier if he feels political, causing him to pause for the first time.

“In some way, no,” he sighs. “Because I always respect the idea of the other one. But in some way we are all doing politics, I realise that. I am not going to demonstrations but I think by the fact that I am gay, the fact I tried to show different races, different kind of spirits – androgyny, homosexuality – all means definitely I am.”

THE LIFE AND TIMES OF JEAN PAUL GAULTIER 1990 – MADONNA’S CONICAL BRA

1976 – LAUNCHED FIRST CATWALK SHOW

Six years after Gaultier interned with Pierre Cardin, the Parisian launched his first catwalk show. It was pulled together cheaply and the designer’s signature eccentricity was already on show: pieces included ballerina tutus worn with leather jackets and trainers.

First debuted in 1984, Gaultier’s iconic conical bra has gone on – alongside his fragrances and signature blue and white stripes – to define him. A version of the bra designed by Gaultier was a key part of Madonna’s look for her Blond Ambition world tour.

1993 – ICONIC FRAGRANCE

Gaultier turned his hand to fragrances in 1993 with the launch of the enduringly popular Classique. Le Male, below, followed in 1995.

1993 – EUROTRASH

Irreverent late night variety show Eurotrash launched in the same year as the designer’s first fragrance. A high camp show featuring sex and silly jokes, it featured Gaultier as co-host and showed off his humourous side, winning him a new legion of fans.

THURSDAY 21 JULY 2022

CITYAM.COM

FTSE 100 7264.31 31.97

Ä

FTSE 250 19399.84 117.25

Price Chg High Low

GILTS Tsy 2.500 24 ................375.15 Tsy 5.000 25 .................107.61 Tsy 4.250 27 ................ 111.35 Tsy 6.000 28 ............... 124.30 Tsy 4.125 30 ................ 361.04 Tsy 4.250 32.................118.82 Tsy 4.250 36 .................119.23 Tsy 4.750 38................. 127.96 Tsy 4.250 46 ................127.02

DIVERSIFIED INDUSTRIALS 0.15 -0.02 0.05 0.24 1.09 0.56 0.61 0.69 0.83

379.4 117.4 124.6 140.4 402.3 138.0 148.0 163.4 175.8

358.5 106.8 109.6 121.5 352.1 114.1 115.9 124.8 123.6

-8.0 838.4 528.8 4.5 367.5 256.0 2.6 839.2 428.3 -5.6 384.0 243.0 -1.8 147.5 78.2 -4.0 3494.0 2470.0

AUTOMOBILES & PARTS

BANKS -0.6 -5.6 -0.6 -2.4 1.0 22.0 1.9

217.1 567.2 55.1 253.5 638.6 1656.0 218.1

140.6 359.8 41.0 192.8 410.0 901.0 124.2

BEVERAGES Britvic...............................831.0 -13.5 1006.0 741.0 Coca-Cola HBC AG......1925.5 -20.0 2784.0 1460.5 Diageo ............................3667.5 -7.5 4103.5 3343.0

CHEMICALS Croda International ..6874.0 Elementis.........................102.4 Johnson Matt..............2120.0 Synthomer ..................... 236.0 Victrex .......................... 1852.0

-14.010410.0 5908.0 -0.3 157.3 97.0 24.0 3077.0 1721.0 0.8 564.0 222.0 -11.0 2678.0 1590.0

CONSTRUCTION & MATERIALS Balfour Beatty .............. 256.6 Barratt Devel .................487.3 Bellway .........................2349.0 CRH ................................2968.0 Genuit Group .................400.0 Grafton Group................795.6 Ibstock.............................178.8 Marshalls.........................479.0 Morgan Sindall Gp......1930.0 Persimmon ....................1799.0 Taylor Wimpey ..............122.2 Vistry Group..................896.0 Volution ...........................371.0

ELECTRICITY Contour Global..............254.0 -0.5 257.0 178.0 Drax Gp ............................ 741.5 -12.0 831.5 393.8 SSE .................................. 1763.5 -23.5 1920.0 1445.5 Halma .............................2177.0 37.0 3216.0 1876.5 Morgan Advanced ....... 286.5 5.5 412.5 262.5 Oxford Instruments .. 2140.0 70.0 2680.0 1760.0 Renishaw .......................4116.0 -36.0 5565.0 3568.0 Spectris ....................... 2900.0 8.0 4083.0 2458.0 XP Power......................2950.0 0.0 5630.0 2730.0

EQUITY INVESTMENT INSTRUMENTS

Aston Martin..................539.2 20.0 2081.0 371.3 TI Fluid Systems ........... 163.8 1.0 323.5 142.0 Barclays ............................157.6 HSBC Hldgs......................517.8 Lloyds Banking ................ 43.5 NatWest Group..............225.6 Standard Chartered....584.8 TBC Bank Group..........1192.0 Virgin Money UK ...........140.8

Smith (DS) ......................283.6 -11.3 462.3 270.5 Smiths Gp......................1489.5 -2.5 1629.0 1355.5 Smurfit Kappa Gp.......2819.0 -51.0 4305.0 2623.0 Vesuvius........................... 315.2 1.4 567.0 284.6

ELECTRONIC & ELECTRICAL EQUIPMENT

AEROSPACE & DEFENCE BAE Systems ..................803.2 Chemring Gp .................340.0 Meggitt ............................791.6 QinetiQ ............................. 377.8 Rolls-Royce .......................92.0 Ultra Electronics ........3490.0

Ã

Price Chg High Low

-3.4 319.0 215.6 2.3 760.0 448.5 2.0 3526.0 2070.0 -34.5 4002.0 2756.5 5.5 801.0 373.0 9.3 1412.0 715.0 0.8 239.2 154.0 0.2 845.0 436.2 30.0 2685.0 1776.0 -12.5 2940.0 1732.0 1.6 182.9 113.0 -2.0 1261.5 760.5 21.0 560.0 336.5

3i Infrastructure...........332.5 Aberforth Smlr Cos ..1200.0 Alliance Trust.................947.0 Allianz Tech ....................231.0 AVI Global Trust............ 183.6 Baillie Gifford Japan....732.0 Bankers InvTst .............. 103.6 Bellevue Healthcare.....165.6 BlackRock Smaller ....1346.0 BlackRock Wld Mining565.0 BR Throgmorton ..........590.0 Caledonia Inv ..............3630.0 Chrysalis Inv .....................97.9 City of London IT.........406.0 Edin Inv Trust ...............605.0 Edin Wwide .....................187.2 European Opp ............... 699.0 F&C Investment ........... 845.0 Fidelity China SPE ....... 255.0 Fidelity Emg ................... 623.1 Fidelity Eur .................... 289.0 Fidelity Spec Val .......... 262.0 Finsbury G&I Tst...........815.0 GCP Infra Inv..................114.4 Global Smaller ...............140.4 Greencoat UK.................154.4 Harbourvest Glb.........2120.0 Henderson Sml Co .......848.0 Herald Inv Trust ..........1636.0 HICL Infr ......................... 174.0 Hipgnosis Songs Fund .109.4 ICG Enterprise ............. 1118.0 IMPAX ENVIRO MKTS439.0 JPM American...............731.0 JPM Emerg Mkt .............107.0 JPM Euro Disc. ..............392.0 JPM Japan IT ................461.0

-2.0 366.5 302.0 0.0 1612.0 1144.0 11.0 1078.0 887.0 5.0 370.0 200.0 2.6 222.0 172.0 14.0 1106.0 662.0 1.8 125.0 95.5 4.6 208.0 132.4 2.0 2220.0 1254.0 7.0 792.0 502.0 7.0 1042.0 533.0 15.0 4100.0 3230.0 2.1 277.0 90.0 -3.0 425.0 377.0 0.0 657.0 578.0 4.0 338.0 160.8 2.0 891.0 644.0 15.0 946.0 770.0 0.0 387.0 218.5 7.1 907.0 596.5 -3.0 345.0 267.5 4.0 315.0 250.0 0.0 930.0 734.0 0.4 118.6 100.2 0.0 177.0 134.4 -0.2 159.9 129.6 20.0 2940.0 2000.0 12.0 1370.0 778.0 20.0 2630.0 1560.0 0.2 183.0 161.0 0.0 129.2 102.6 -2.0 1314.0 954.0 13.5 583.0 381.5 14.0 782.0 655.0 1.8 139.0 99.8 2.5 582.0 366.5 6.5 729.0 412.5

FTSE ALL SHARE 4009.11 9.53 Price Jupiter Fund Mngt ....... 139.4 Law Debenture ..............766.0 Mercantile IT .................190.2 Monks Inv Tst .............1000.0 Murray Inc Tst..............828.0 Murray Intl Tst ........... 1236.0 Ninety One .......................191.4 Pantheon Intl Partn .....245.0 Pershing Square.........2645.0 Personal Assets Tst.48300.0 Polar Cap Tech Tst .... 2080.0 Renewables Infra Gp ...134.4 RIT Cap Partners.......2480.0 Schroder Asia ................519.0 Schroder Oriental ........ 256.0 Scot American Inv ......484.0 Scottish Mortgage ...... 838.2 Sequoia Econ Infra ........86.0 Smithson Inv................1324.0 Syncona ...........................199.6 Temple Bar......................218.0 Templeton Em Mkts .....146.6 Vietnam Enterprise .....640.0 VinaCapital Vietna .......483.0 Witan Invest ..................218.5 Wwide Healthcare ....3295.0

Ä

Chg High Low -5.0 289.6 135.2 4.0 830.0 732.0 2.2 291.0 173.8 24.5 1472.0 888.0 -4.0 952.0 770.0 6.0 1320.0 1076.0 -0.7 277.4 183.7 0.0 351.0 240.5 45.0 3115.0 2330.0 100.050900.047350.0 60.0 2750.0 1778.0 -0.8 139.4 123.2 -20.0 2765.0 2250.0 0.0 614.0 498.0 -3.5 276.5 251.5 8.0 543.0 442.5 38.2 1543.5 670.6 -0.1 114.6 83.3 55.0 2025.0 1140.0 0.6 222.0 157.2 3.0 254.4 203.6 0.2 195.2 140.6 5.0 791.0 625.0 -1.0 545.0 445.0 4.0 257.0 202.0 0.0 3835.0 2825.0

FIXED LINE TELECOMMUNICATIONS BT Gp .................................179.7 -1.8 200.9 135.2 Telecom Plus ............... 2125.0 5.0 2140.0 1010.0

FOOD & DRUG RETAILERS Greggs ............................1925.0 2.0 3416.0 1808.0 Ocado Gp .........................774.8 20.0 2090.0 727.8 Sainsbury(J)...................216.3 -0.3 340.0 203.3 SSP Group.......................251.6 1.6 303.2 207.8 Tesco.................................259.8 -2.5 303.4 231.8

FOOD PRODUCERS Assoc British Foods....1678.0 11.0 2131.0 1526.5 Cranswick .....................3218.0 0.0 4148.0 2918.0 Greencore Gp ..................101.1 -0.1 146.6 92.6 Hilton Food Gp ............ 1038.0 8.0 1250.0 971.0 Premier Foods.................111.0 0.4 126.8 98.3 Tate & Lyle ......................785.4 0.2 906.5 733.5 Unilever.........................3893.0 -50.0 4163.5 3328.0

FORESTRY & PAPER

Price Coats Group......................66.6 Hargreaves Lans........... 836.8 IG Gp..................................711.5 Integrafin Holdings..... 248.0 Intermediate Cap .......1416.5 Intl Public Prtnshps ..... 163.8 Investec ...........................435.7 IP Group ............................ 76.6 JTC ....................................675.0 Liontrust..........................910.0 London Stock Exch ....7796.0 Man Group ..................... 268.6 OSB Group ..................... 495.8 Paragon...........................508.5 Petershill Partners .......215.5 Plus500 .........................1601.0 Provident Financial .....208.8 Quilter ..............................102.7 Rathbone Grp...............1910.0 Ruffer Investment........ 297.5 Schroders.....................2738.0 SDCL Energy ..................122.4 TP ICAP ............................113.5

Chg High Low -0.2 81.4 58.2 4.8 1645.5 762.6 -13.0 945.0 648.0 4.8 602.0 213.0 18.0 2379.0 1284.5 0.8 174.8 156.0 -4.7 536.8 270.5 3.0 155.2 66.7 22.0 936.0 571.0 21.0 2485.0 854.0 108.0 8504.0 6370.0 3.8 268.6 178.8 -2.8 599.0 418.8 0.0 617.5 427.2 -4.0 350.7 194.8 -19.0 1673.0 1255.5 -1.8 381.6 187.4 -0.8 197.1 96.4 -14.0 2210.0 1518.0 0.0 325.0 230.0 -20.0 3871.0 2578.0 -0.2 124.0 97.8 -0.1 208.2 102.5

GENERAL RETAILERS B&M.................................. 414.7 Currys..................................71.5 Dunelm Gp......................826.0 Frasers Group ............... 750.0 Howden Joinery Gp..... 629.0 Inchcape..........................779.5 JD Sports Fashion ........139.8 Kingfisher........................262.3 Marks & Spencer ...........143.4 Moonpig..........................200.0 Next ...............................6548.0 Pets at Home Gp .......... 309.8 Vivo Energy ....................150.8 Watches of Switz .........835.0 WH Smith......................1452.0

6.5 644.0 355.8 -2.6 141.6 66.5 19.5 1521.0 775.0 -2.5 813.5 562.5 2.2 975.6 581.4 7.5 933.0 647.0 2.3 234.0 102.9 3.2 375.5 234.8 0.6 256.9 129.5 -3.0 424.6 184.8 -18.0 8426.0 5764.0 -0.2 519.0 278.0 -0.2 152.8 101.0 16.0 1518.0 746.5 -9.5 1805.5 1311.0

HEALTH CARE EQUIPMENT & SERVICES Convatec......................... 222.6 2.4 262.5 166.8 Mediclinic Intl ...............474.8 -0.4 476.2 275.8 Smith & Neph............... 1176.0 5.0 1563.5 1120.5 Spire Health .................. 236.0 -1.0 254.5 206.0

HOUSEHOLD GOODS

Mondi .............................1487.0 -7.0 2068.0 1309.0

GENERAL FINANCIAL 3i Group ..........................1197.0 Ashmore Gp....................205.4 Brewin Dolphin ..............510.0 Bridgepoint Group........ 227.6 Capital Gearing ..........5010.0 Close Brothers .............1057.0 CMC Markets ................ 292.0

Ã

RISERS

Future .........................................1923.00 Volution ........................................371.00 Molten Ventures ........................ 452.20

-1.0 1503.5 1059.0 -0.2 399.2 192.0 -1.0 517.0 266.0 2.2 569.0 208.0 25.0 5180.0 4905.0 -14.0 1602.0 987.0 5.5 455.5 219.5

Berkeley Grp Hldgs ...4063.0 8.0 4943.0 3670.0 Countryside ....................252.2 5.0 571.5 225.8 Crest Nicholson ............. 257.6 0.2 424.2 233.0 Reckitt Benckiser ......6302.0 -122.0 6458.0 5391.0 Redrow............................. 557.5 -0.5 718.8 470.4

INDUSTRIAL ENGINEERING Bodycote ........................ 566.5 3.0 984.5 500.0 Hill & Smith ................. 1266.0 20.0 1902.0 1110.0 IMI ..................................1257.0 5.0 1838.0 1150.0

% 7.4 6.0 6.0

Price Melrose Ind ....................164.7 RHI Magnesita ...........2022.0 Rotork .............................250.0 Spirax-Sarco..............10895.0 Weir Gp......................... 1440.5

Chg High Low -1.2 190.8 107.6 6.0 4262.0 1823.0 0.8 373.4 232.8 80.0 17135.0 9130.0 15.0 1916.5 1328.5

INDUSTRIAL METALS Evraz ...................................81.0 Ferrexpo ..........................125.2

0.0 646.2 53.1 2.7 495.2 107.0

INDUSTRIAL TRANSPORTATION Clarkson........................3445.0 35.0 4180.0 2835.0 Redde Northgate ......... 368.5 8.0 443.0 333.0 Royal Mail ...................... 285.6 0.6 533.2 264.6

LEISURE GOODS Games Workshp .........7240.0 10.012220.0 6005.0

LIFE INSURANCE abrdn ................................158.2 Aviva .................................389.5 Just Group ........................66.3 Legal & General.............254.7 Phoenix Gp..................... 594.8 Prudential ....................1005.5 St James Place ............1156.5

299.0 148.9 602.9 382.3 106.0 63.3 307.8 233.2 701.4 568.2 1553.5 881.0 1731.5 1054.0

30.0 3170.0 2240.0 4.8 454.4 253.8 10.6 741.8 499.5 -2.0 1464.0 829.0 132.0 3910.0 1551.0 10.4 624.0 464.4 1.2 125.8 62.9 3.3 265.6 167.0 7.0 869.4 571.8 4.0 2449.0 2029.0 7.8 800.4 531.0 18.6 1224.0 761.6

MINING Anglo American ........ 2604.0 Antofagasta ................ 1049.0 BHP Group ................... 2105.0 Centamin ........................... 79.6 Endeavour Mining...... 1599.0 Fresnillo ..........................660.6 Glencore ..........................426.1 Hochschild Mining .......... 74.0 Rio Tinto .......................4691.0

% -6.0 -3.8 -3.5

Price Chg High Low Hiscox ..............................860.0 -18.8 990.2 792.8 Lancashire Hldgs...........401.2 -3.8 675.5 346.6

OIL & GAS PRODUCERS BP ..................................... 388.5 2.9 451.4 Capricorn Energy..........212.0 0.0 229.8 Energean .......................1123.0 1.0 1391.0 Harbour Energy ............ 350.2 0.5 530.0 Shell ...............................2050.5 16.5 2440.0 Tullow Oil...........................44.6 -0.2 62.2

284.0 125.6 620.0 298.5 1833.4 39.7

OIL EQUIPMENT & SERVICES Wood Gp(J) .....................151.2

2.4 256.5 138.1

PERSONAL GOODS Burberry Gp.................1698.0 -18.0 2182.0 1482.0 PZ Cussons.....................204.0 2.0 257.5 182.8

PHARMACEUTICALS & BIOTECHNOLOGY -0.5 -5.7 -2.4 0.2 -4.8 -17.0 -6.0

MEDIA 4imprint........................2930.0 Ascential ........................ 298.2 Auto Trader Gp.............600.4 Euromny Inst Inv....... 1462.0 Future .............................1923.0 Informa............................579.0 ITV ......................................68.9 Moneysupermkt.com ....192.1 Pearson ............................782.8 RELX ...............................2315.0 Rightmove Group .......... 615.4 WPP ..................................853.8

Ä

FALLERS

Hochschild Mining ........................74.05 Smith (DS)................................... 283.60 Currys .............................................71.50

-33.0 4170.5 2.5 1781.5 -10.0 3019.0 2.5 109.8 -19.0 2100.0 5.4 986.8 6.6 541.5 -4.8 173.4 -16.5 6292.0

2470.5 991.6 1835.2 74.4 1510.0 622.4 307.1 74.0 4375.5

MOBILE TELECOMMUNICATIONS Vodafone Gp ...................129.3 -1.7 139.5 106.9

NONLIFE INSURANCE Admiral Gp....................1749.0 20.0 3688.0 1729.0 Beazley............................486.0 -2.0 504.0 361.0 Direct Line Ins ...............199.0 -2.0 316.4 193.7

AstraZeneca ..............10918.0 -314.0 11232.0 8063.0 Dechra Pharma...........3730.0 8.0 5405.0 3110.0 Genus.............................2482.0 98.0 6070.0 2234.0 GSK .................................1776.2 -7.2 1810.4 1380.4 Hikma Pharma ............ 1690.5 11.0 2690.0 1482.0 Indivior ........................... 299.0 -9.8 336.8 148.1

REAL ESTATE Assura .................................67.8 Big Yellow Gp ...............1372.0 British Land ....................474.2 Captl & Count Prop .......147.4 CLS Hldgs ........................203.0 Derwent London ........2776.0 Grainger..........................286.0 Grt Portland Est .............737.0 Hammerson ......................20.9 Land Securities..............704.4 LondonMetric Prop ......241.6 Primary Hlth Prop ........139.3 Safestore Hldgs ...........1102.0 Savills .............................1125.0 SEGRO ............................1036.5 Shaftesbury....................519.0 Supermarket Income ..125.5 Target Healthcare..........111.6 TR Property IT ..............387.0 Tritax Big Box ................189.8 Tritax Eurobox ................. 91.6 UK Commercial Prop ..... 76.6 Unite Group ...................1161.0 Urban Logistics ..............167.0 Workspace Gp .............. 564.5

0.1 79.8 59.6 0.0 1724.0 1200.0 3.5 556.4 441.7 1.5 179.3 138.4 1.0 262.0 185.2 36.0 3802.0 2570.0 2.6 335.0 269.8 0.0 803.5 700.5 0.1 39.9 19.0 4.2 813.2 643.6 1.0 285.2 225.6 0.0 169.6 131.1 11.0 1418.0 1015.0 15.0 1450.0 975.5 7.0 1436.5 950.6 3.5 662.0 495.8 0.5 133.0 116.5 -0.6 119.2 106.8 6.0 510.0 354.5 2.1 249.0 178.5 1.4 124.0 84.4 0.5 93.4 72.4 -5.0 1237.0 990.2 5.0 199.0 118.5 12.5 971.0 537.0

SOFTWARE & COMPUTER SERVICES Auction Tech ................. 959.0 -7.0 1642.0 788.0 Avast.................................527.0 -3.4 645.4 474.0 Aveva Gp........................2312.0 68.0 4220.0 1924.0 Baltic Classifieds........... 145.8 1.2 255.0 99.8

£

/€ 1.1742 /$ 1.1986 /¥ 165.62

Price Computacenter...........2442.0 FDM Group..................... 883.0 Kainos Gp ......................1184.0 Micro Focus Intl ............291.6 NCC Grp ...........................198.6 Playtech .......................... 470.8 Sage Group .....................691.2 Softcat ..........................1344.0

Ä Ä Ä

0.0001 €/$ 1.0209 0.0034 €/£ 0.8517 0.1520

Chg High Low 44.0 3030.0 2268.0 14.0 1362.0 830.0 27.0 2084.0 954.5 2.6 466.1 256.3 2.2 335.0 167.4 13.8 770.0 370.0 14.8 853.8 595.6 15.0 2240.0 1253.0

SUPPORT SERVICES Ashtead Gp ..................4074.0 Babcock Intl Grp...........329.2 Biffa ................................. 356.0 Bunzl ..............................2936.0 DCC ................................5280.0 Diploma.........................2560.0 discoverIE Gp.................672.0 Essentra........................... 247.0 Experian .......................2759.0 Ferguson .......................9694.0 Hays ..................................125.4 Homeserve ....................1178.0 Intertek Gp...................4387.0 IWG...................................190.0 MITIE GROUP..................68.9 Network Int.................... 195.7 Pagegroup...................... 454.0 Rentokil Initial..............509.8 RS Group .........................979.0 Sanne Group..................908.0 Serco .................................181.7 Travis Perkins.................991.4

135.0 6450.0 3359.0 -1.8 380.2 255.9 -5.0 416.0 283.0 7.0 3163.0 2397.0 -46.0 6486.0 4889.0 106.0 3460.0 2158.0 29.0 1262.0 597.0 2.0 357.0 227.0 -21.0 3667.0 2285.0 154.013305.0 8680.0 -1.4 175.4 109.0 2.0 1178.0 608.5 -5.0 5782.0 4188.0 -0.8 328.0 181.8 1.4 77.3 46.5 5.0 394.4 171.8 -3.8 680.5 386.0 -4.0 636.2 444.5 14.0 1255.0 812.0 0.0 946.0 844.0 -0.3 183.8 121.2 5.0 1830.0 938.4

TECHNOLOGY HARDWARE & EQUIPMENT Spirent Comms..............255.4 -0.2 300.2 215.4

TOBACCO Br Am Tob .................... 3463.5 -65.0 3628.0 2512.5 Imperial Brands ..........1867.5 -33.0 1900.5 1486.0

TRAVEL & LEISURE 888 Holdings..................152.5 Carnival............................781.6 Compass Gp................. 1838.5 Dominos Pizza................283.0 easyJet ............................390.4 Entain .............................1154.0 FirstGroup.......................135.0 Flutter Ent................... 8028.0 Intercontl Htls .............4787.0 Intl Cons Airl...................116.0 Mitchells & Butlers ...... 172.6 National Express ........... 183.4 TUI AG ..............................137.7 Wetherspoon (JD) ....... 568.5 Whitbread....................2695.0 Wizz Air Holdings .......1952.0

MARKETS

1.0 478.0 144.0 38.4 1766.4 619.6 -14.0 1852.5 1436.0 0.4 465.2 272.6 -3.2 888.8 345.5 27.5 2377.0 1075.5 0.7 139.5 81.9 162.015890.0 7614.0 18.0 5338.0 4193.0 0.6 188.0 102.9 2.1 295.0 160.7 1.8 284.2 169.0 3.1 352.2 124.3 12.5 1167.0 540.0 14.0 3438.0 2431.0 37.0 5398.0 1695.0

€/¥ 141.06

Ä Ã Ä

17

0.0028 0.0001 0.1180

Price Chg High Low

AIM 50 Abcam ............................1175.0 Advanced Medical .......280.0 Alliance Pharma..............95.0 ASOS..............................1096.0 Camellia ........................6225.0 Caretech Holdings ........ 743.0 Central Asia Metals .... 230.0 CVS Group.....................1673.0 Dart Group ......................915.0 Diversified Energy .........114.3 EMIS Group .................1862.0 FD Technologies ........2000.0 Fevertree Drinks .........1061.0 Frontier Devs................1410.0 Gamma Comms ...........1124.0 GB Group ........................446.6 Gooch & Housego ........ 925.0 Hurricane Energy............... 7.3 Impax Asset Mgmt ......601.0 Iomart Group .................178.2 IQE.......................................39.0 James Halstead ............. 211.0 Johnson Service Gp .....104.2 Keywords Studios .....2364.0 Learning Tech Gp ..........124.0 M&C Saatchi ..................152.6 M.P. Evans ......................820.0 Majestic Wine................158.4 Midwich Group ..............576.0 Molten Ventures ...........452.2 Mortgage Advice B .....888.0 Next Fifteen Comm ....1016.0 Nichols........................... 1255.0 Numis Corporation .......265.0 Polar Capital Hdgs.......468.5 Purplebricks Gp................14.5 Renew Holdings.............676.0 RWS Holdings ................362.6 Secure Income REIT ...461.0 Serica Energy.................353.5 Smart Metering Sys....886.0 Telford Homes................349.5 Thorpe (F.W.)..................382.5 Watkin Jones ................ 222.0 Young’s Brew NV...........738.0 Young’s Brew-A............1150.0

57.0 1750.0 1049.0 1.5 341.0 256.5 -18.6 121.6 95.0 57.0 4080.0 783.5 0.0 6925.0 5850.0 0.0 747.0 530.0 4.0 284.0 200.5 2.0 2770.0 1549.0 -0.4 1423.0 783.8 1.6 128.8 98.5 -8.0 1890.0 1136.0 2.0 2500.0 1378.0 13.0 2812.0 866.5 0.0 2840.0 1078.0 20.0 2335.0 1026.0 5.8 952.5 386.2 9.0 1485.0 816.0 0.1 11.7 2.1 13.0 1482.0 550.0 0.2 265.5 140.0 0.6 53.3 28.2 0.0 580.0 196.0 0.8 162.0 97.6 56.0 3302.0 1952.0 2.5 235.8 107.1 -3.4 216.0 125.0 6.0 1085.0 672.0 1.2 879.0 151.0 -10.0 700.0 494.0 25.4 1180.0 391.8 2.0 1500.0 840.0 44.0 1458.0 874.0 -15.0 1540.0 1105.0 -5.0 383.0 230.0 -2.0 902.0 438.0 0.0 73.0 14.1 23.0 872.0 594.0 -1.4 678.5 331.8 0.0 480.0 394.0 15.0 418.5 145.6 3.0 1030.0 688.0 0.0 349.5 349.5 -2.5 520.0 371.0 1.0 276.5 205.5 8.0 982.0 648.0 6.0 1660.0 1120.0

18

SPORT

CITYAM.COM

THURSDAY 21 JULY 2022

SPORT CAPTAIN OVERBOARD Stenson switches to LIV but hopes to play in Ryder Cup at 16pt

SPORT DIGEST ASHER-SMITH INTO 200M FINAL WITH SOLID TIME

£ British sprinting star Dina AsherSmith qualified for tonight’s 200m World Athletics Championships final with a season’s best time of 21.96.

The qualification time for the final in Oregon is astonishingly quick and Asher-Smith qualified second in her semi behind Jamaican Elaine Thompson-Herah. “We knew we had to run this very well so I was really happy to get second,” the Brit said.

“I’m happy that we’ve got a day break so I can rest, recuperate, focus and get ready to go again, just a bit faster.”

THOMAS’ TOUR HOPES FADE AS BRIT LOSES TIME

£ British Tour de France hopeful Geraint Thomas lost over 30 seconds to his two main rivals on stage 17 yesterday as the Welshman’s aspirations of riding into Paris donning the yellow jersey faded.

Reigning champion Tadej Pogacar won the stage in Peyragudes but current yellow jersey holder Jonas Vingegaard finished right behind the Slovenian. The Tour finishes this weekend in Paris.

THREE NATIONAL TEAMS JOIN TO CREATE GB 7S

Henrik Stenson’s tenure as Ryder Cup Europe captain was yesterday brought to an abrupt end after the Swedish golfer confirmed he would join Saudi Arabia-backed LIV Golf Invitational Series. “Unfortunately my decision to play in LIV events has triggered Ryder Cup Europe to communicate that it is not possible for me to continue in my role as Ryder Cup captain,” he said. “I sincerely hope a resolution between the tours and its members can be reached soon.” Team Europe are hoping to win the historic tournament next year in Rome having suffered a record breaking defeat last year in the United States. The next LIV Golf event is set to take place in Bedminster, United States next weekend.

£ England, Scotland and Wales’ national sevens teams will wind up and combine to create Great Britain 7s in a move which is supposed to help TeamGB draw resources and compete on a more consistent basis.

The project has faced criticism but the new team will be in place before next season’s World Rugby Sevens Series – each of the three sides will still compete individually at the Commonwealth Games. “This is a seminal day for sevens, it is the right way forward, giving Team GB a real opportunity to go to the Olympic games with the right preparation,” England’s performance director Conor O’Shea said.

WIGHTMAN’S GOLDEN GLORY Brit’s win the latest in a long history of middle-distance successes, writes Matt Hardy

I

N THE 1950s it was Roger Bannister in the 1,500m; in the 1980s it was Steve Ovett, Sebastian Coe and Steve Cram dominating the global landscape of middle-distance track and field athletics.

And this week, in 2022, it’s Jake Wightman, the 28-year-old three-andthree-quarters lap runner who secured gold at the World Athletics Championships in Oregon.

It was a family affair, too, for the Brit; his mother was in the stands, his father in the gantry as stadium announcer – how he remained cool, calm and collected remains unknown.

Because Geoff’s son was competing

against Olympic champion Jakob Ingebrigtsen, Tokyo 2020 silver medalist Abel Kipsang with his notorious kick, and Timothy Cheruiyot, among others.

But as the Nottingham-born Wightman got onto the shoulder of the seemingly unbeatable Norwegian with just 200m to go, fellow TeamGB athletes knew what was on the cards.

“Oh my God, oh my God, oh my God,” sprinter Asha Philip pronounced as she watched from the team’s base in Eugene, in the States’ north west.

ON THE SHOULDER

Everyone sensed exactly what Wightman was doing: sticking on the shoulder of the favourite and, ultimately, taking a risk.

The risk was calculated to perfection.

Wightman kicked with 150m remaining, and again with 75m to go as he secured the 1,500m title in a world lead time of 3:28.23 – a yard or two ahead of Ingebrigtsen’s season’s best performance.

A first major British middle-distance men’s medal since Coe in 1984, a first

at the athletics championships since Cram in 1983 – and the latest chapter in Britain’s storied history of 1,500m running.

Wightman’s historic achievement follows the monumental effort by Laura Muir to secure a bronze just days ago in the same event.

Having fought for a silver at the Tokyo Olympics last year, a bronze in America will suffice for the Scottish athlete following a blistering opening start to her race.

Wightman, fellow Briton Josh Kerr – who finished fifth ahead of Kipsang and Cheruiyot – Kelly Holmes, Jo Pavey, Ovett, Coe and Cram – to name a few – have graced the polyurethane coated athletics tracks of years past.

The middle-distance events have been an ever-present in British track, defining the rivalries that have shaped the way many see the sport.

Coe is now head of World Athletics, Cram now a commentator, but athletics archives of old will relay footage of Coe versus Cram – no matter their position in a group of any size, it was al-

ways just portrayed as Cram versus Coe – that was the battle.

The 1,500m probably draws us in partly to do with its contextual distance – Brits the country over know the 1.5km distance, or just short of a mile – but the battles that have raged throughout British track history in the middle distance discipline helps it maintain its aura.

It could all be coincidence, it could be a funding reward for a strong British 1,500m performance in Japan – but it’s worked anyhow.

Think of Holmes’s heroics in Athens, the trio of men in the 1980s and, now, Wightman in 2022 – the youngster from England has received the baton of British middle distance history and can now run away with it.

But if history is anything to go by, there will be another athlete – here in the present or somewhere in the future – who is ready to take that legacy and add their own chapter to a book of British athletics history that this week gained another page courtesy of world champion Jake Wightman.

Wightman won with a world lead time

THURSDAY 21 JULY 2022

CITYAM.COM

SPORT

19

SPORT COMMENT Ed Warner

I

F YOU will insist on selling tickets that have to be scanned at the turnstile via your app, at least make sure that there’s enough 4G coverage for me to access mine.

And don’t make the fallback an email proof of purchase when my mates – including the one who sorted our tickets – are already in the ground in a lengthy queue for the first beer of the evening.

In a huddle of similarly frustrated punters outside the gates at the Ageas Bowl for England’s recent T20, I realised that the dystopian future reliant on robust tech had already arrived.

Event organisers and broadcasters see technological innovation as key to our future consumption of live sport – in the flesh, on the move and at home.

Shortening attention spans in all generations, not just the young; competing demands on scarce leisure time; and heightened expectations set by the gaming and entertainment industries. All are combining to challenge traditional sports presentation.

Hence new formats, such as The Hundred, multiple broadcast models – linear coverage, highlights clips and interactivity side-by-side – and streaming platforms buying up sports rights.

The first of two comments that have stayed with me from the recent Web3 Summit at Emirates Stadium came from Scott Carlson of Kudelski Security: “Broadcast rights get you into the home. Web3 gets you into the person.”

Ahead of the summit my mindset on technological enhancement of sport watching was mired in virtual reality headset mode.

STICK-IN-THE-MUD

Call me a stick-in-the mud, but I can’t see myself with a massive VR contraption strapped to my head in the privacy of my own home, let alone in the stands at Selhurst Park.

Turns out the future is augmented reality glasses, however, and even I might get excited at their potential.

Provided stadium Wi-Fi holds up and Openreach eventually installs the longpromised fibre broadband at home.

The second comment that has remained with me came from BT Sport’s

ON THE SPECTRUM OF SPORT Director of Mobile and Immersive Strategy, Matt Stagg: “We have to make the tech work for Grandma, who just wants to watch the game.”

The beauty of AR, it transpires, is that it allows each consumer to have their sporting experience individually tailored.

A family could sit together watching a game, live or at home, and each have a different degree of augmentation.

From novice to nerd, if you like.

Simple explanations – even just player identification, if your eyes aren’t up to reading the numbers on the backs of shirts – through to rich, real-time data analysis. And all can enjoy instant replays and multiple viewing angles.

Proponents talk about every seat being the best in the ground. But I suspect they are forgetting differing proximity to the bars, burger stands and toilets as well as exits that crowd differently at the final whistle. I get the

A family could sit together watching a game and each have a different degree of augmentation basic ambition through.

Last autumn I had the privilege of sitting just behind Eddie Jones during an England rugby international.

It was a fantastic experience watching the England coach and his analysts with their array of screens.

Instant replays during breaks in play

were pored over together – most tellingly, shots from behind the posts, presumably to search for line break opportunities that may not have been apparent sideways on.

The assistant with iPad is now a staple behind managers at top level football. Playbooks are interactive, no longer thick files, so that in-game optionality can be analysed real time.

JUST IMAGINE

Cricket wouldn’t be cricket today if there wasn’t a laptop or two in evidence on the dressing room balcony.

Now, imagine your live sport experience to be as data rich and interactive as that available to Jones, Gareth Southgate or Brendon McCullum.

Without the pressure to perform of course! That’s where those at the heart of sport believe you’re heading.

As an aside, I read what I thought to be a rather pious article last week calling for the MCC to stop the practice of

England cricketers holding up numbers in the pavilion to signal tactical instructions or advice to the captain on the field.

This is like suggesting King Canute could hold back the tide. Cricket’s opportunity is to harness technology not outlaw it.

The time will come when the captain on the field takes advice via his AR glasses and in the audience we get to see and hear it for ourselves. Maybe only with a delay for bleeping out the swearing, as in Formula 1’s cockpit comms.

You can see in this brave new world how gaming and sport will become increasingly intertwined, and gambling too. Live sport as entertainment is a spectrum not a fixed point. It will be for you to choose just where on that spectrum you want to interact from. £ Ed Warner is chair of GB Wheelchair Rugby and writes at sportinc.substack.com

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