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LET’S MAKE A DEAL WHY TFL’S FUTURE IS STILL FAR FROM ASSURED P14
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PIPE SCREAM
TUESDAY 26 JULY 2022
ISSUE 3,785
NORD STREAM 1 FLOWS CUT AGAIN AS EUROPE BRACES FOR ENERGY SHORTAGES
NICHOLAS EARL GAZPROM plans to further cut gas flows into Europe, raising the chilling prospect of rationing and blackouts across the troubled Continent this winter. The Kremlin-backed gas giant warned yesterday it was shutting down a gas turbine engine on the key Nord Stream 1 pipeline to Germany, and that flows would drop to 20 per cent of normal capacity. Flows were already at just 40 per cent of normal levels — putting intense pressure on European countries scrambling for supplies to meet
household energy needs this winter. The European Union (EU) has been chasing replacement vendors such as Nigeria, Qatar and the US, alongside trying to push member states into 15 per cent gas cuts between August and March. Fears of supply shortages caused European gas prices to spike a whopping 12 per cent following the news, with UK benchmarks also up two per cent from already historically elevated levels. The UK is not heavily reliant on Russia for energy supplies, but is affected by spikes in the wholesale price. The bloc has accused Russia of energy blackmail, while the Kremlin has argued
gas disruption is being caused by maintenance issues and Western sanctions following the country’s invasion of Ukraine. Russia recently retaliated to EU plans to ban seaborne oil shipments and coal imports, cutting off supplies to 12 EU member states which refused to purchase Gazprom supplies in roubles. Moscow’s latest move likely nails on Germany, Europe’s economic powerhouse, tumbling into a recession in short order. The Continent’s largest economy is already stuttering amid surging inflation and months of weaker Russian gas flows,
a survey published yesterday revealed. Confidence among German businesses dropped to 88.6 this month according to an IFO Institute index, with 100 representing a neutral reading. “Germany is on the cusp of a recession,” the IFO Institute said, adding that “companies are expecting business to become much more difficult in the coming months”. Robin Brooks, chief economist at the Institute of International Finance, noted “the forward-looking expectations component in the German IFO survey is almost as bad as [the financial crisis in] 2008”.
FREE STAR WARS
Regulators to probe space takeovers MILLIE TURNER TWO foreign takeovers of satellite firms Oneweb and Inmarsat risk becoming stuck in orbit thanks to regulatory attention, as the country becomes increasingly reliant on space tech for digital communications and UK national security. The proposed buyout of Oneweb by French rival Eutelsat, partly owned by a Chinese sovereign wealth fund, could get tangled in the government’s National Investment and Security Act (NSIA) for its ties to an ‘unallied’ country, onlookers have said. Meanwhile the competition watchdog yesterday launched the first phase of an inquiry into Inmarsat’s £5.4bn takeover by the US’ Viasat. The joint companies would create satellite and communications powerhouses to compete against Elon Musk’s SpaceX and Starlink – which currently dominate the satcoms industry. Competition lawyer at DMH Stallard, Jonathan Compton, told City A.M. that national security and investment concerns are “less [likely] with allied countries, unlike countries who may not have our best interests at heart. “Where a Chinese shareholder’s involved, that will cause concerns,” he said. £ CONTINUED ON PAGE 3
Agency puts focus on ‘increased’ use of cryptocurrency in serious crime HAMZA FAREED MALIK THE UK’s top crime body yesterday warned that fraudsters and drug dealers were “increasingly” using cryptocurrency in moneylaundering schemes as it announced it seized millions of pounds worth of digital assets last year.
The National Crime Agency said it had recovered £26.9m-worth of assorted cryptocurrencies – up from zero in the twelve months beforehand. “With no change in the volume of illicit funds from crimes such as drugs and fraud, tried and trusted methods of money laundering
continued,” the report read. “Criminals increasingly exploited financial technology and crypto assets (last year),” the report’s authors warned. “It is a sign that law enforcement agencies are getting to grips with and adapting to this new technology and space. As adoption
increases, so will the level of regulation,” Asim Arshad, an associate solicitor in the crypto and blockchain team at law firm Mackrell Solicitors, told City A.M. “It shows the law enforcement agencies of this jurisdiction, along with the courts, will not be dissuaded from tackling, disrupting
and taking enforcement action against those bad actors seeking to exploit this technology for criminal gain.” Last year the Financial Conduct Authority warned that the unregulated crypto market posed a risk to the strength of the UK’s overall financial system.
INSIDE RYANAIR TAKES AIM AT FAILINGS P3 NASTY INSULTS IN TORY BATTLE P4 NAKED WINES CFO DEPARTS P6 AMAZON PRICE HIKE P8 MOTORING P16 THE PUNTER P17
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CITYAM.COM
TUESDAY 26 JULY 2022
STANDING UP FOR THE CITY
O’Leary deserves credit for flying Ryanair safely through storms
M
ICHAEL O’Leary is not everybody’s cup of Irish tea. But the Ryanair boss would be right to enjoy a celebratory cuppa aboard one of his flights (that’ll be €2, fella) as his airline returns to profitability in a summer marked by chaotic scenes across Europe at his rivals’ check-in desks. The story of how is a relatively simple one. In short, Ryanair used a strong balance sheet ahead of the pandemic to keep staff on
THE CITY VIEW albeit at mutually agreed — or at least mostly mutually agreed — lower rates. The firm kept training staff, too. Elsewhere in the industry, faced with an absurd lack of sector-specific help, airports, air traffic control providers and other airlines
instead cut staff to the bone. Lo and behold, as the aviation industry finds high altitude once again, Ryanair has been forced to cancel or delay fewer flights and, broadly, get people to the places they paid to go to on time (or at least, Ryanair time). This is some achievement and it deserves credit. O’Leary’s no nonsense persona (even yesterday he couldn’t resist a pop at “idiot Belgian unions”) distracts at times from the lean,
mean, efficient flying machine he has built. It is a shame others in the industry haven’t cracked the same trick. Many of the airlines which cut staff during the pandemic had in truth already been trying to bring costs into line with the models used by Ryanair and Easyjet, but did it — broadly — badly. There is a compelling argument that competing on price was never a good idea, because if you do that
IT’S ALL KICKING OFF DOWN IN SOUTHWARK Bermondsey estate shows support to the Lionesses as England ready to take on Sweden in Euro 2022 semi-finals tonight
you’re left with only one option: get cheaper. Legacy carriers simply couldn’t do so, and O’Leary won every price war that came his way. Nobody particularly enjoys a Ryanair flight, but this summer at least you can mostly be sure it’ll be there when you arrive at the airport. Though the rest of the industry has not covered itself in glory, O’Leary et al can be content with a summer’s job well done.
WHAT THE OTHER PAPERS SAY THIS MORNING THE DAILY TELEGRAPH
NETWORK RAIL TO REROUTE LINES DUE TO CLIMATE RISKS
Network Rail is drawing up plans to reroute coastal railway lines that are to be swept away by rising sea levels as part of its climate change preparations. The Climate Change Committee estimates 650km of railway is at risk.
THE TIMES
RECORD FALL IN HOUSEHOLD DISPOSABLE INCOME
Household disposable income fell by a record £44 a week in June, marking its eight consecutive month of decline as the cost of living crisis continues to intensify. The average household was £178.50 worse off in June of this year.
THE TIMES
CHINESE GOVERNMENT TO BAIL OUT DEVELOPERS
Shares in China’s biggest property developers rallied on the news the government had created a fund to help support the indebted sector. The plan for the RMB300bn (£36.9bn) fund comes after Evergrande defaulted on its debts.
US Federal Reserve to back up monster Inflation surge chills factories rate hike with further 75 basis point move but hiring remains strong JACK BARNETT THE US Federal Reserve will back up its monster rate rise last month with another big 75 basis point hike tomorrow as it chases down scorching inflation. That’s according to Wall Street analysts, who think Fed chair Jerome Powell and the rest of the federal open market committee (FOMC) will need to bear down on spending to squash price rises. Inflation in the US is primarily being driven by demand for workers outstripping supply, putting upward pressure on wages. A strong jobs market is
also supporting spending, handing firms more power to raise prices and still sell products. Prices are up 9.1 per cent, the quickest acceleration in four decades. The FOMC fears tightening policy too slowly will keep expectations of future inflation high, possibly baking strong price pressures into the US economy. However, the committee may tip the economy into recession by ramping up rate rises. Some think the US is already in the teeth of recession. “The FOMC wants to keep inflation expectations contained and needs to moderate aggregate demand and bet-
ter align labor demand with labor supply,” analysts at UBS said. They think the Fed will deliver another 75 basis point hike. As does Ellie Henderson, an economist at Investec. However, she does “see the risk of [a one percentage point] increase”. The Fed has already lifted its main rate 150 basis points since March, cooling the American economy. Home sales fell for the fifth straight month in June, down 5.4 per cent. Weaker demand in the housing market may hit property prices, knocking confidence and consumer spending.
JACK BARNETT A SOFTENING in the UK economy caused by surging inflation has clamped down on UK factories, a survey published yesterday revealed. A net balance of six per cent of manufacturers posted new order growth over the last three months, down sharply from 25 per cent in the three months to June, according to the Confederation of British Industry (CBI). Over the coming quarter, factories expect activity to slump to levels not seen since the country
was in the teeth of tough Covid-19 restrictions. A net balance of six per cent of firms think output will expand, the weakest reading since January 2021. Inflation hit 9.4 per cent last month, the highest level since 1982, curbing business and household activity. Higher interest rates have also cooled demand. Employment in the manufacturing sector remains strong. Staff numbers jumped 18 per cent, slightly lower than the previous quarter, and are expected to progress at a similar pace.
TUESDAY 26 JULY 2022
CITYAM.COM
Ryanair takes aim at ‘one job’ airport failings ILARIA GRASSO MACOLA RYANAIR’s chief financial officer Neil Sohoran yesterday blamed airports for ongoing summer travel chaos, arguing they only had “one job to do”. “The airports themselves, they had one job to do and that was to make sure they have sufficient handlers and security staff,” Sorahan told the BBC’s Today programme yesterday. “We managed to staff up for 73 additional aircrafts well in advance and it’s incumbent on the airports to get their planning better next year.” The executive’s comments come as the EU aviation industry continues to be swept by a wave of cancellations, delays and overall travel disruption. The UK was hit particularly hard due to a combination of post-Covid pent-up demand and labour shortages. Heathrow,
NEWS
Doubts raised over Ofgem in Westminister NICHOLAS EARL
Britain’s largest airport, was forced to put a daily cap for departing passengers of 100,000 while BA slashed its peak season schedule by 18 per cent compared with April forecasts. According to Sorahan, the main reason behind the travel mayhem was air traffic disruption across Europe. “You have to hold air navigation service providers and various governments to account in relation to not staffing up appropriately for that,” he said. Ryanair posted a £145m first quarter profit, its first since the pandemic struck, despite travel disruption and the blow dealt by Russia’s invasion of Ukraine. Passenger numbers also rebounded, hitting 45.5m, 9 per cent ahead of pre-pandemic levels. Nonetheless, the carrier declined to make predictions for the full year due to the “fragile” nature of the market.
Lastminute.com appointed a new CEO following the arrest of Fabio Cannavale
Lastminute.com execs questioned over alleged misuse of Covid funds JACK MENDEL
Ryanair CFO Neil Sohoran
ONLINE travel company Lastminute.com said it has appointed an interim chief executive with immediate effect after the company’s chief was arrested in Switzerland. The Swiss-headquartered firm said that chief executive Fabio Cannavale and chief operating officer Andrea Bertoli were held by Swiss authorities
over the weekend, and are being investigated by the Public Prosecutor’s Office in Ticino for allegedly misusing Covid support funds. The probe focuses on Swiss subsidiaries, Bravonext SA, Bravometa CH SA and LMNext CH SA. The firm said that it had “resolved to suspend the powers delegated to both” arrested directors for three months, and appointed Laura Amoretti as its interim chief executive.
MPs are sceptical about Ofgem’s ability to clean up the energy market, following mass carnage which saw over 30 suppliers collapse amid soaring wholesale costs, directly affecting over four million customers and driving energy bills to record highs. The Business, Energy and Industrial Strategy Committee’s report into energy pricing published today slammed the watchdog for failing to ensure suppliers were robust enough to withstand market shocks. The committee compared the current fallout in the energy sector to the banking crisis of 2008. Ofgem is pressing ahead with major reforms to boost the financial resilience of the market, including stress tests and fit and proper rules. An Ofgem spokesperson said: “While the unprecedented rise in global gas prices would have resulted in market exits under almost any regulatory system, we have been clear and transparent about the fact that suppliers and Ofgem’s previous financial resilience regime were not robust enough.”
UK’s ‘golden share’ in Oneweb could help Eutelsat deal despite China ties CONTINUED FROM PAGE 1 Both Liz Truss and Rishi Sunak have made clear that they view Chinese influence as an issue, as they battle it out to become the country’s next prime minister. However, the government’s golden share in Oneweb, could mean that the merger avoids the same fate as the Newport Wafer Fab and Nexperia
— a subsidiary of Chinese firm Wingtech Technology — where Nexperia’s takeover is currently being dragged through a lengthy national security review by the government. “The UK government is already a stakeholder with a golden share so presumably has been consulted in advance and a deal appears implausible without its consent in
the first place,” Andy Chambers, industrials analyst at investment research group Edison, told City A.M. “It undoubtedly has to determine its view between the future funding burden for Oneweb on the UK taxpayer, which could be alleviated with any overarching national security issues and priorities that would include Chinese involvement,” Chambers said.
The CMA is launching an enquiry into the £5.4bn takeover of Immarsat by Viasat
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Nasty insults in Tory battle risk hurting the party STEFAN BOSCIA CONSERVATIVE MPs yesterday called for an end to personal attacks in the party’s leadership race as the battle between Liz Truss and Rishi Sunak became even nastier. Culture secretary and Truss supporter Nadine Dorries launched an attack on Sunak’s immense wealth yesterday, tweeting that the ex-chancellor visited “Teesside in Prada shoes worth £450 and sported [a] £3,500 bespoke suit”. She compared that to Truss who had been wearing “earrings which cost circa £4.50 from Claire Accessories” while campaigning. Anger and frustration from Conservative MPs in response to the attacks spilled out, with some concerned that a bruising leadership contest risks damaging the party’s electoral chances. Replying to Dorries, veterans’ affairs minister Johnny Mercer said “the
puerile nature of this leadership contest is embarrassing” and that it is “time to raise standards”. Fallen Tory leadership candidate Tom Tugendhat also called for contenders to dial down attacks, telling the BBC that “I hope very much what we’ll do is we’ll see this debate focus on ideas rather than on personalities”. It comes after Sunak and Truss sparred with each other over national security on Sunday, with each campaign team briefing that the other would be soft on China. The biggest clash the pair have had so far is over the economy, with Sunak describing Truss’ plan to implement £34bn of unfunded tax cuts as “fantasy economics”. Truss is the bookmakers’ favourite to win the leadership contest and become next UK Prime Minister, with the latest polling of Tory members giving the foreign secretary a 20–plus point lead.
Good Friday architect passes away aged 77 NICHOLAS EARL
Keir Starmer yesterday gave a speech to Labour supporters in Liverpool
Starmer says there will be ‘no magic money tree’ with Labour STEFAN BOSCIA KEIR Starmer has promised there will be “no magic money tree economics” with a Labour government as he vows to deliver “sound finances”. He said he would not be bound to the “nostalgic” thinking that government should direct business activity and that “modern industrial strategy is not about growing the size
of the state”. Speaking in Liverpool, Starmer said if Labour wins the next election “you will always get sound finances, careful spending and strong, secure and fair growth”. Starmer’s speech is the latest in a line of interventions he has made to pitch the party as more moderate and business friendly than it was under former leader Jeremy Corbyn.
FORMER Northern Ireland first minister David Trimble died yesterday at the age of 77, following a short illness. He was one of the principle architects of the Good Friday Agreement, which helped end decades of conflict in Northern Ireland. The Ulster Unionist Party announced his passing in a statement on behalf of the Trimble family. The party said: “It is with great sadness that the family of Lord Trimble announce that he passed away peacefully earlier today following a short illness.” His political career marked a number of firsts as Ulster Unionist leader, including becoming the first unionist leader since partition to negotiate with Sinn Fein in 1997. Lord Trimble later jointly won the Nobel Peace Prize along with SDLP leader John Hume for his work on the peace deal. He is survived by his wife Daphne and sons and daughters, Richard, Victoria, Nicholas and Sarah.
TUESDAY 26 JULY 2022
CITYAM.COM
London’s global status is at risk, warns Austin CHARLIE CONCHIE LONDON is at risk of losing its status as a premier global stock market if it does not act fast to reform rules, the author of a review into London’s capital markets has warned. Mark Austin, a partner at Freshfields who was commissioned by ministers last year to review how listed firms can raise cash in London, called for a swathe of measures to boost the appeal of London’s markets last week. In an interview yesterday, Austin warned the measures need to be pushed through for London to retain its status. “We need to be fleet of foot, ambitious and bold,” Austin told Bloomberg in an interview. “London was often the go-to option; that is not necessarily the case any more. They are increasingly also eyeing Amsterdam or other venues, be it for
valuation, or easier regulation,” he added. He warned that the capital was in danger of becoming a “regional stock market” if it did not boost its appeal. His warnings come as the London Stock Exchange announced the launch of a new UK Capital Markets Industry Taskforce last week chaired by LSE boss Julia Hoggett and featuring names including Austin, Barclays group head of strategic policy Katherine Braddick and Schroders CEO Peter Harrison. Hoggett has also been working with ministers in a bid to tempt British chipmaker Arm to float in the capital as it looks set for a US listing. She said last week there was still a “very compelling case for Arm to have a dual premium listing in the UK” rather than a sole listing in New York. “We should absolutely fight for anything that we think we have a compelling strategy to propose,” she added.
NEWS
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Aldi increases pay for 26,000 store assistants EMILY HAWKINS
The Spice Tailor is expected to generate £17.3m in revenue for Premier Foods in 2022/23
Mr Kipling owner signs deal for meal kit brand The Spice Tailor EMILY HAWKINS PREMIER Foods has snapped up the Indian and South East Asian meal kits business The Spice Tailor for an initial £43.8m. The Spice Tailor is anticipated to generate revenue of £17.3m in the 2022/23 financial year, with the Mr Kipling owner enticed by its 20 per cent compound annual growth rate
over the last four years. “The acquisition is well aligned to our growth strategy and we see a clear opportunity to build on the excellent track record of The Spice Tailor by leveraging the elements of our proven branded growth model,” Alex Whitehouse, chief executive officer, said. Premier shares were up two per cent yesterday.
ALDI has announced it is raising store assistant pay further, with London-based staff to receive a minimum of £11.95 per hour from the autumn. The pay increase represents an extra 40p per hour on top of staff’s current hourly rate, where shop assistants outside the M25 will receive a base pay of £10.50 an hour. The discount supermarket said this pay increase means it retains the crown of the country’s best-paying grocer, with Aldi stating it was the only store to offer paid breaks. Some 26,000 staff members will benefit from the increase, the supermarket said, with investment in pay hitting £43m this year following an initial wage increase in February. Giles Hurley, head of Aldi’s UK unit, said: “This announcement recognises the amazing contribution our colleagues make in serving local communities across the country. Their outstanding efforts have ensured that our customers continue to have access to fresh affordable food, every single day.”
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TUESDAY 26 JULY 2022
CITYAM.COM
City firms brace for Consumer Duty shakeup CHARLIE CONCHIE CITY firms are braced for one of the biggest shakeups of UK financial services regulation in a decade this week as the UK’s top watchdog unveils its new Consumer Duty. The Financial Conduct Authority will announce the package of reforms tomorrow in a bid to usher in better safeguards across the financial services sector and clarify perceived blurred lines across areas like financial advice and the communication of products to consumers. Legal experts said today the reforms could mark a watershed moment in financial services and ripple well beyond just retail finance firms. “This regulation is one of the FCA’s most ambitious and far-reaching to date,” Ian Stott, head of financial services at legal and compliance firm Konexo, told City A.M. “Banks have been watching it closely to understand just where its borders
lie, but many are still underestimating just how many in the financial services sector it will capture. It isn’t just retail banks. “ Stott added that the new rules will require a significant amount of structural and operational reform at banks in order to meet the demand of the new rules. Firms are expected to require a swathe of new procedures such as needing a member of the board to take responsibility and sign off on an annual outcomes report, a review of products and services to ensure compliance, and new staff training. The new rules are set to come into force from April 2023 but the watchdog has faced pushback from some quarters over concerns it does not leave enough time for implementation. “What everyone is hoping for is more time to implement,” said Michaela Walker, head of financial services at Eversheds Sutherland.
Julius Baer freezes hiring after downturn JOHN REVILL
This will be the second range of clothing made through the collaboration
Greggs joins forces with Primark to launch clothing collaboration JACK MENDEL GREGGS and Primark have announced they are teaming up for a new clothing range. The kings of sausage rolls and low cost clothes announced the new range on social media yesterday. Greggs and Primark, which collaborated on a similar project earlier in the year, announced the
range will hit the shelves in the first week of August. The collection includes 21 items ranging from Greggs-themed basketball jerseys and varsity jackets, bucket hats and boxer shorts. Hannah Squirrell, customer director at Greggs, said: “The reaction to our first official Greggs clothing collection was incredible and sold out even faster than we anticipated.”
SWISS wealth manager Julius Baer will freeze hiring for non relationship manager positions after higher costs and lower client activity triggered a 26 per cent drop in first half earnings. The bank, which competes with UBS and Credit Suisse in managing the investments of ultra wealthy clients, announced yesterday it would accelerate "cost discipline" in the second half of the year after its cost to income ratio rose to 67 per cent from 61 per cent a year earlier. Julius Baer revealed costs rose as it spent more on settling legal cases, provisions and IT. Chief executive Philipp Rickenbacher said there were no immediate plans for lay-offs at the bank which has seen its headcount rise by 71 people this year, to 6,798 staff by the end of June. Plans for structural cost savings were now being developed, he said, while the bank would continue to hire relationship managers. Earlier this month, the bank settled a case in relation to a Lithuanian corporation for €105m, with roughly half charged against Reuters its 2022 first-half results.
Naked Wines chief financial officer departs after gloomy sales guidance EMILY HAWKINS NAKED Wines’ chief financial officer has left his position immediately by mutual agreement, following a bleak sales forecast from the online wine seller. The London-listed company said Shawn Tabak, who held the position of director as well as the top finance job, departed last week on 22 July.
Former CFO James Crawford has taken on the job on an interim basis through to June 2023, after serving in the role from 2015 to 2020. The retailer issued a stark sales warning last month, cautioning investors that sales could tumble by as much as four per cent this year. Naked Wines would “not pursue growth at any cost,” CEO Nick Devlin said, with the company intending to
trade “at or around breakeven this year”. The company’s shares sunk five per cent yesterday, with its price down some 80 per cent in the past year. “During [Tabak’s] time at the company we have achieved significant growth which we have consolidated in our most recently completed fiscal year,” Devlin said yesterday.
Naked Wines has struggled over the last year, with its shares down 80 per cent
TUESDAY 26 JULY 2022
CITYAM.COM
KPMG struck with record fines over audit misconduct LOUIS GOSS THE UK’s accounting watchdog has fined KPMG a record £14.4m and told it to pay £3.95m in costs, for providing false and misleading information during its audits of collapsed construction firm Carillion and outsourcing firm Regenersis. The UK’s Financial Reporting Council (FRC) also fined four KPMG auditors and banned them from the accounting industry’s professional membership body over their role in the audit misconduct. The regulator fined former KPMG partner Peter Meehan £250,000 and banned him from the Institute of Chartered Accountants in England and Wales (ICAEW) for 10 years. Three other former KPMG executives – Alistair Wright, Richard Kitchen, and Adam Bennett — were fined sums of £45,000, £30,000, and £40,000 respectively. Wright and Bennett have been banned from the ICAEW for eight years each, while Kitchen has been banned
for seven years. Another junior KPMG employee, Pratik Paw, who had not qualified as an accountant before he was told to forge documents by his superiors, avoided any fines after being severely reprimanded instead. The decision not to fine Paw comes after the FRC asked an industry tribunal to fine the junior accountant £50,000. Elizabeth Barrett, executive counsel at the FRC, The KPMG executives were fined over the audit of collapsed firm Carillion said: “Misconduct that deliberately undermines the FRC’s ability to monitor and inspect the effectiveness of audits is extremely serious because it obstructs the FRC’s ability to protect the public interest. “This case underlines the need for all professional accountants, regardless of seniority, to be aware of their individual responsibility to act honestly and with integrity in all areas of their work.”
EXCLUSIVE
CHARLIE CONCHIE MINISTERS have announced plans to ramp up regulatory scrutiny of ‘final salary’ pension schemes today amid fears that some schemes are not properly safeguarding members’ cash. Final salary – or ‘defined benefit’ (DB) — pension schemes,
which cumulatively manage around £1.7 trillion in assets nationally, are designed to pay a guaranteed income for savers in retirement. But under proposals seen exclusively by City A.M., the Department for Work and Pensions will require schemes to submit plans to The Pensions Regulator, amid mismanagement
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Vodafone CEO Nick Read said the firm was “not immune” to macroeconomic challenges
UK saves the day for Vodafone as German market falters once again VODAFONE’s revenue continued to dip in Germany this quarter as regulation dented the firm’s largest market. Revenue for German services dropped a further 0.5 per cent, largely reflecting the impact of the Telecommunications Act, which has fuelled a customer decline. CCS Insight analyst Kester Mann told City A.M. this drop was the “main blot” in the results, with German services
concerns in some schemes. The plans follow the Pensions Schemes Act last year, and will look to ensure schemes are properly “delivering for savers”, Pensions minister Guy Opperman told City A.M. He warned that despite safeguards “best practice is not universal”. The plans are now under consultation.
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making up 30 per cent of service revenue for Vodafone. By comparison, the FTSE 100 firm posted strong UK results, largely driven by price hikes and roaming charges from holidaymakers. Mann also highlighted the strong growth in pay-as-you-go was one of the “main surprises,” from the results, with nearly 100,000 new customers added in the UK. Vodafone declined to comment on merger rumours with Three.
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‘Final salary’ pension schemes set for scrutiny under new plans
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OFFICE SPACE Investment in commercial property drops in second quarter of 2022
Dexters snaps up sixth rival agency in 12 months in city market boom MILLIE TURNER
ECONOMIC woes have dragged down office investments in London as higher debts and costs dented confidence. Activity in central London in the second quarter was £2.9bn, down from £5.3bn in the first quarter, according to BNP Paribas Real Estate.
LONDON estate agents Dexters yesterday snapped up its sixth competitor in a year, as it looks to make significant headway in the capital’s booming property market. Dexters declined to comment on the price of the agreement, but industry sources believe the deal for Conran was a seven-figure sum. “London has bounced back from the disruption caused by the Covid-19 pandemic and continues to be an
attractive investment for local and international clients, and it is important that Dexters continues to expand and thrive,” CEO Andy Shepherd said. It comes as London rent and property prices continue to swell, with the city reopening its arms to overseas students and business folk, as well as those who left for greener pastures during lockdown restrictions. Conran, founded in 1999, has offices in Greenwich, Brockley, Charlton and Lee, and is set to bolster
Serica rejects improved Kistos takeover offer NICHOLAS EARL SERICA Energy yesterday said it has rejected an improved merger proposal from energy investment firm Kistos. It believes the new offer does not reflect the overall value of its core assets. The company further argued that the deal relies on using Serica’s own cash to partly fund the transaction, which would leave a combined entity with a weaker balance sheet compared with Serica’s current position. Last week, Kistos submitted a revised cash-and-shares offer for Serica at 425p a share, an 11 per cent increase from its previous offer which values the company at about £1.2bn. It also proposed Tony Craven Walker, Serica’s chairman, to take on the same role at the combined company and Kistos chairman Andrew Austin for the role of chief executive. The deal is a 19 per cent premium on Serica’s last closing price. Serica’s latest snub is a setback to Kistos’ efforts to strengthen its foothold in the North Sea. The company first approached Serica in May about the advantages of merging the two North Sea-focused companies but has repeatedly been rebuffed.
Kistos is headed by North Sea dealmaker Andrew Austin and was set up in 2020 after he sold his previous company Rockrose Energy for £250m. Kistos has a market value of £439.2m — compared with Serica’s £970.8m — and had previously made public an offer of 382p per Serica share, which was rejected by the company’s board in June. Serica then approached Kistos on 1 July with a cash-and-stock offer of 483p per Kistos share, which was rejected by its own board. Serica is one of the UK’s leading midtier North Sea oil and gas operators, with five fields in the North Sea producing 22,000 barrels of oil equivalent per day. It currently operates the Bruce, Keith and Rhum producing assets in the UK Northern North Sea alongside Columbus Field, and is a partner in the Erskine Field in the UK Central North Sea. Stifel analyst Chris Wheaton said Serica shareholders should not accept the proposal and “instead wait for results of the North Eigg exploration well, which could add over 250p per share” to the company’s valuation. Shares in Serica rose over five per cent yesterday while Kistos closed down.
Dexters’ presence in the south east. Dexters is understood to be scouting out more agencies to partner with over the next three years, after revenue in 2021 jumped more than a third to £143.3m. Last year’s flurry of deals left Dexters with around £34.6m in surplus cash in comparison to 2020. Conran co-founding director Oliver Powell said the firm was keen to be part of Dexters’ office expansion, which creates “a strong foundation for further increases in revenue”.
Amazon has invested in a range of new dramas for its customers
Amazon Prime to increase UK prices HENRY SAKER-CLARK AMAZON is to hike the price of its Prime delivery and streaming service due to “increased inflation and operating costs”. The technology giant offers free unlimited delivery, entertainment streaming and live sport through the Prime service. It said it will increase the price of Prime from £7.99 each month to £8.99 from September 15 for new customers, or on the date of the customer’s next renewal.
Annual membership will increase from £79 to £95 per year in the UK. A spokeswoman for the company said: “Prime offers the best of shopping and entertainment, and continues to improve each year. “We have increased the number of products available with fast, unlimited Prime delivery, recently added ultra-fast fresh grocery delivery, and have significantly expanded our high-quality digital entertainment, including TV, movies, music, games, and books.
“With increased inflation and operating costs in the UK continuing to rise, we will change the price of Prime.” Amazon has pumped billions of pounds into its streaming content in recent years, with original series such as The Boys and The Terminal List. The price increase is the service’s first since 2014. It comes months after Netflix increased basic and standard plans by £1 a month, while its premium plan PA was pushed £2 higher.
National Grid blames tight markets for supply scramble amid heatwave NICHOLAS EARL TIGHT markets and fires in East London forced the National Grid to pay record prices for energy from Belgium to prevent power outages during the hottest week of the year. NGESO, the National Grid’s electricity systems operator, said increased demand amid all-time high
temperatures led to constraints in supplies to the capital last week. There were also various planned maintenance outages with overhead lines. A spokesperson said: “In order to keep the network secure in this region, we used the standard operating tools available to us, namely to import via interconnectors. “We were bidding in a tight market
and market prices were high that day because Europe also wanted the energy.” This culminated with NGESO paying an all-time high of £9,724 per megawatt hour last Wednesday to import power from Belgium, according to data from market analyst EnAppSys — as first reported in The Telegraph.
National Grid said the record heat led to pressures on its supply of electricity
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Shapps accused of prolonging rail strikes by unions ILARIA GRASSO MACOLA AND EMILY HAWKINS TRANSPORT secretary Grant Shapps was yesterday accused of blocking the negotiations between rail operators and unions that could end the ongoing strikes. The Trades Union Congress (TUC) yesterday called on Shapps to “stop prolonging the rail dispute”, which has threatened to bring the country to a standstill. “Transport secretary Grant Shapps is giving secret instructions to rail firms from behind the scenes — and stopping them coming to a deal,” said TUC’s general secretary Frances O’Grady. “It’s time for the transport secretary to stop blocking an agreement that will end the dispute.” Contracts between the Department for Transport (DfT) and operators allow the government to apply financial sanctions if they do not follow the directions given by the secretary, a legal opinion commissioned by the union argued. “It’s extremely misleading to suggest the Transport Secretary should get involved in these negotiations,” a spokesperson for the Department for
Transport told City A.M. “The union knows full well that negotiations over pay and working practices don’t happen with the government – they happen with the employers of the people they represent. In this case, that’s Network Rail and the train operating companies.” “We once again urge union representatives to get back round the negotiating table instead of calling further strikes which serve only to bring disruption to people across the country,” the spokesperson added. Railway workers at Network Rail and 14 other operators will walk out on Wednesday in the first of a three-day strike over job cuts and salaries. They will also strike on 18 and 20 August — at the same time as members of the TSSA union working at seven railway operators will walk out. Platform and ticketing staff at Avanti West Coast will also join the industrial action on 27 July, while train drivers will take to the streets on Saturday. The strikes are set to have a significant impact on the capital’s economy and the city’s businesses, where the hospitality sector is likely to be hit the hardest.
Leicester garment factories have been under the spotlight since a low-pay scandal involving fast fashion brand Boohoo in 2020
Leicester garment workers afraid of reporting low wages as government urged to do more EMILY HAWKINS THE GOVERNMENT should do more to tackle Leicester garment workers’ fears around reporting illegal wages, a report has urged. Findings from the Low Pay Commission (LPC) found there is still a long way to go in improving the treatment of textile factory workers. Some factories have operated at nighttime to dodge inspections while
others have covered up their windows, campaigners told City A.M. The working conditions of textile workers have been under the spotlight after workers for Boohoo’s suppliers were discovered to be paid as little as £3.50 in 2020. While enforcement organisations have unearthed “relatively modest” examples of firms under-paying workers, other bodies and individuals described such mistreatment as
“widespread and flagrant”. While HMRC is allowed to request documents, it cannot search for them on factory visits and struggles to conclude records whether records are accurate without evidence like worker testimony. “There’s a lot that is missed,” Dominique Muller, from Labour Behind the Label said, with factories easily able conceal documents and dodge checks.
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LEGAL AND PUBLIC NOTICES CITY of LONDON The PLANNING ACTS and the Orders and Regulations made thereunder This notice gives details of applications registered by the Department of The Built Environment Code: FULL/FULMAJ/FULEIA/FULLR3 – Planning Permission; LBC – Listed Building Consent; TPO – Tree Preservation Order; OUTL – Outline Planning Permission
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All TSB employees earning up to £35,000 will be given a £1,000 bonus to help with skyrocketing inflation
TSB latest to dish out cost of living payments MICHIEL WILLEMS AROUND 4,500 staff at TSB are to be given a £1,000 bonus after the high street lender became the latest firm to announce payouts to help employees weather the cost of living crisis. The payment will be made to all staff at the bank earning up to £35,000 — estimated at 76 per cent of employees — and will be made in two stages, with £500 in October and the remaining £500 next February.
Trade union Unite said it had successfully secured the payout on behalf of workers at the bank to help with the rocketing cost of energy and wider eye-watering rises in the cost of living. National officer Caren Evans said: “Unite was able to successfully demonstrate to TSB that the lowest paid members of staff are struggling to meet their costs of living. “The agreement announced today is welcome news for over 4,000 staff, and the £1,000 payment will be
given to all those regardless of whether they are full or part-time workers.” A spokesman for TSB said: “We know that the rising cost of living is a concern for many of our colleagues, so we will be supporting eligible colleagues this winter with an additional cost-of-living payment of £1,000.” It follows moves by other employers to help staff struggling, with Lloyds and Barclays making similar payments.
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Court backlog hurting victims, says Sadiq Khan LOUIS GOSS SADIQ Khan has called on the UK government to take urgent action to tackle the court backlog, after warning the delays are stretching London’s victim support services “to breaking point”. In a letter to Dominic Raab, the London mayor said delays of up to five years for rape and sexual assault trials are “exacerbating trauma” and “increasing the likelihood of victims withdrawing from the justice system altogether” as he called on the government to take urgent steps “to tackle the court backlog”. Khan warned that the court delays are putting the capital’s “stretched support services in an impossible position” that has seen London’s rape crisis centres forced to turn away new referrals.
DOUZE POINTS The UK confirmed as new host for the 2023 Eurovision Song Contest
EMILY HAWKINS
“We’re doing all we can from City Hall but we urgently need the government to step forward and take steps to tackle the court backlog and ensure that support services are able to help Londoners in their time of need,” Khan said. There are currently almost 16,000 cases waiting to be heard in London’s The London mayor said victim support services were at ‘breaking point’ Crown Courts and nearly 73,000 cases waiting to be heard by London magistrates. The record backlog comes as a result of shortages of barristers and solicitors, the impacts of Covid-19 and cuts in the criminal justice system. The ongoing criminal barristers’ strike has also impacted more than 1,000 cases.
Office workers enticed back to desks by air con
THE UK was yesterday confirmed as next year’s host of the famous music contest, after coming behind Ukraine back in May. The news comes as Ukraine continues to fight against a Russian onslaught and Kyiv was no longer an option to host the event.
LONDON officer workers were lured to their desks last week by the prospect of air-conditioned offices, according to Google data. The data, first reported by Bloomberg, revealed that around 60 per cent of City workers were at their desks during the UK heatwave last week. On Tuesday, there was only seven per cent fewer office workers in the City compared to more typical weeks, despite advice not to travel. Meanwhile more workers than usual headed into offices last Wednesday. Londoners were advised to avoid public transport where possible and be careful as temperatures reached unprecedented levels of over 40C last week. Last Monday, Springboard’s ‘back to the office’ benchmark for central London office hubs showed that footfall was down 18.1 per cent compared to the Monday prior while central London footfall overall was down 16.1 per cent. Transport for London said London Underground usage was down 18 per cent versus the prior Monday, for the period until 10am.
Insolvency Service uses new powers to crack down on Covid-19 loan fraudsters LOUIS GOSS THE UK’s Insolvency Service has begun using new powers to crack down on company directors that dissolved their firms to avoid making repayments on government-backed loans. The Insolvency Service used its “tough new powers” to ban three individuals from acting as company
directors, business minister Lord Callanan said. In all three cases, individuals were struck off for dissolving their companies in order to avoid repaying loans issued through the government’s Bounce Back scheme, which offered small and medium businesses loans of up to £50,000. The new powers, granted in
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LEGAL AND PUBLIC NOTICES CITY of LONDON 1RWLFH LV KHUHE\ JLYHQ WKDW WKH &RPPRQ &RXQFLO RI WKH &LW\ RI /RQGRQ DV WUDIÀF DXWKRULW\ IRU WKH undermentioned streets made several Orders on 21 July 2022 with the exception of Bartholomew Lane /RWKEXU\ ZKLFK KDYH EHHQ DPHQGHG XQGHU 6HFWLRQ RI WKH 5RDG 7UDIÀF 5HJXODWLRQ $FW DV DPHQGHG E\ WKH 5RDG 7UDIÀF 7HPSRUDU\ 5HVWULFWLRQV $FW 7KH HIIHFW RI WKHVH 2UGHUV ZLOO EH WR SURKLELW YHKLFOHV RU SHGHVWULDQV ZKHUH VWDWHG IURP HQWHULQJ WKH VDLG URDGV Bartholomew Lane (Lothbury to Threadneedle Street) & Lothbury (Tokenhouse Yard to Bartholomew Lane) ---- Utility Works )URP DP RQ 0RQGD\ -XO\ WR SP RQ 6XQGD\ $XJXVW $OWHUQDWLYH URXWH ( % YLD 0RRUJDWH 6RXWK 3ODFH (OGRQ 6W %ORPÀHOG 6W /RQGRQ :DOO :RUPZRRG 6W %LVKRSVJDWH 7KUHDGQHHGOH 6W : % YLD 7KUHDGQHHGOH 6W 0DQVLRQ +RXVH 6W 4XHHQ 9LFWRULD 6W 4XHHQ 6W .LQJ 6W *UHVKDP 6W /RWKEXU\ 7KURJPRUWRQ 6W ZLOO EH PDGH WHPSRUDU\ WZR ZD\ IRU DFFHVV Stonecutter Street (Farringdon Street to Shoe Lane) ---- Mobile Crane )URP SP HDFK )ULGD\ WR SP HDFK 6XQGD\ IURP $XJXVW WR $XJXVW $OWHUQDWLYH URXWH 1RQH Took’s Court (Entire Length) ---- Mobile Crane )URP DP WR SP HDFK 6DWXUGD\ IURP $XJXVW WR $XJXVW 3HGHVWULDQV WR EH GLYHUWHG YLD &XUVLWRU 6W )XUQLYDO 6W YLFH YHUVD 0RWRUF\FOH SDUNLQJ ED\ ZLOO EH VXVSHQGHG )RU IXUWKHU LQIRUPDWLRQ SOHDVH UHIHU WR ZZZ FLW\RÁRQGRQ JRY XN URDG FORVXUHV (QTXLULHV WR 7UDIÀF 0DQDJHPHQW 6HUYLFHV RQ ,DQ +XJKHV 'LUHFWRU &LW\ 2SHUDWLRQV Environment Department
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December, gives the Insolvency Service the right to ban individuals from acting as company directors for up to 15 years. The sanctions come as part of a wider crackdown on those who abused government pandemic support packages, with fraudulent Covid-19 claims having cost the British taxpayer at least £5bn, according to HMRC.
Fraudulent Covid-19 support claims have cost the taxpayer £5bn, according to HMRC
Sanctioned VTB Bank’s lawyers ‘Crumbling’ struggle to process fee payments courts worsen case backlog LOUIS GOSS
THE LAW firm acting on behalf of VTB Bank has asked for more time to file its case, after warning that at least three financial institutions have refused to process legal fee payments from the sanctioned Russian bank, even after being assured that processing the payments would be legal. Brafman & Associates – which has previously worked on an array of highprofile cases in acting on behalf of Harvey Weinstein, P Diddy, and Martin Shkreli – warned that multiple banks have refused to process payments from Russia’s state-owned VTB Bank. The Manhattan law firm, which agreed to take on VTB Bank as a client after it was dropped by Los Angeles law firm Latham & Watkins in April, has been seeking to sign on as defence for the sanctioned bank since June, in a case over claims it helped fund a
Donbas militia that shot down Malaysia Airlines in 2014. However, the law firm warned in a court filing that three banks have refused to process payments from VTB Bank, even after the US government’s Office of Foreign Assets Control (OFAC) assured them that legal fee payments were exempt from sanctions. The case comes after the family of an American man, who was killed after flight MH17 crashed near a town in eastern Ukraine, sued the bank over claims it facilitated payments to a pro-Russian militia accused of downing the Malaysia Airlines plane. In a filing, Brafman & Associates said it had asked three other financial institutions whether they would be willing to accept funds from VTB Bank earmarked for representation in the MH17 case.
LOUIS GOSS THE LAW Society has called for “widespread investment” in the criminal justice system after it was revealed that more than 100 court sitting days were lost in the first six months of 2022 due to repair works in England and Wales’ “crumbling” Crown Court estate. As of the end of June, 111 court sitting days had been lost due to repair works across the HMCTS estate, figures obtained through a freedom of information request by the Law Society Gazette show. The revelations come amid mounting criticism that many of England and Wales’ courts are in a state of disrepair, with reports of leaking roofs, rat infestations, and squalid working conditions.
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CITYAM.COM
Silicon Valley braces itself for earnings week LEAH MONTEBELLO SILICON Valley is bracing itself for what is set to be a difficult earnings season for Big Tech this week amid a year of major sell-offs and supply chain woes. Last week, both Snap and Twitter posted underwhelming results, sending shares across Wall Street tumbling. However, all eyes are now on Apple, Amazon, Alphabet, Microsoft and Meta, which post their results this week. Analysts are bracing themselves for slowing growth for Amazon, while Facebook owner Meta and Google owner Alphabet are facing the pinch of tightening advertising budgets. Paolo Pescatore, TMT analyst at PP Foresight, said the cost of living crisis would be “the biggest concern” for Big
Tech, with “all prices heading in one direction”. However, he told City A.M. Apple was likely to buck this trend, having already injected renewed optimism from its most recent earnings. Meanwhile, tech analyst at Gartner and former Apple director Michael Gartenberg told City A.M. Meta would likely “point a finger at Apple” for its disruptive privacy policy that has rocked the sector. However, Alphabet would likely post solid results, he added, saying “the economy won’t prevent people from using Google”, though he cautioned the firm may also have been impacted by Apple’s policies. Layoffs and hiring freezes could also dominate the upcoming results, according to Gartenberg.
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MPs to analyse whether tax reliefs lift GDP JACK BARNETT
TalkTV is operated by News UK and aims to be a ‘straight-talking’ news channel
Viewing slump: TalkTV reaches only three per cent of Brits LEAH MONTEBELLO TALKTV reaches only three per cent of the UK viewing population per month for an average visit length of eight seconds, according to data from Broadcasters’ Audience Research Board (BARB). As first reported by the Press Gazette, the Rupert Murdoch-backed channel has struggled to get off the ground, despite investing heavily in
big name presenters and studios. BARB data for May 2022 showed that TalkTV reached 1.9m Brits for linear TV; this is compared to 12.3m for BBC News and 8.9m for Sky News during the same period. The channel’s closest rival, GB News, reached 2.19m people for an average of 35 seconds. TalkTV presenters include Piers Morgan and former political editor at The Sun Tom Newton Dunn.
A GROUP of cross-party MPs yesterday said they will scrutinise whether tax reliefs are effective at stimulating economic growth. The Treasury Committee has launched a new inquiry examining if household and business tax breaks “provide benefits to the broader economy”. The announcement comes as Tory leadership hopefuls Liz Truss and Rishi Sunak have promised to ease the tax burden in a bid to jolt the economy. Truss said she will immediately scrap the six percentage point corporation tax hike and reverse the 1.25 percentage point national insurance rise. Sunak favours cutting taxes once inflation has cooled. Some experts argue tax reliefs incentivise businesses to invest in productivity enhancing technology and steer consumers toward better behaviours.
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Firms are facing increased regulatory scrutiny over their environmental credentials
London climate tech Altrustiq bags £15m to fund ‘carbon accounting’ CHARLIE CONCHIE LONDON-BASED climate tech firm Altruistiq revealed it had bagged £15m in seed funding yesterday as investors bet on ‘carbon accounting’ as a solution to the rise of greenwashing. The fresh funding round for Altruistiq, which allows firms to track their carbon footprint across their supply chain, was led by London-listed venture vehicle Molten Ventures. Boss of Altruistiq Saif Hameed said firms were moving to better grasp their carbon footprint which had provided a boost to Altruistiq.
“In recent weeks, we’ve seen a big shift to embrace the ‘carbon accounting’ space. It’s a helpful tailwind, but the use of high-level calculations and generic emissions factors leaves organisations open to charges of greenwashing,” he said. “We’re seeing this create a real erosion of credibility for even very well-intentioned brands.” Investors and firms are looking for ways to better gauge climate impact and carbon footprint amid rising regulatory scrutiny of greenwashing and the misuse of the ‘environmental, social and governance’ (ESG) label. Molten’s head of climate George
Chalmers said there was an “increasing need and demand” for the technology. The investment from Londonlisted Molten comes after chief Martin Davis told City A.M. last month that investment would likely halve in the next 12 months as the venture capital environment cools amid soaring inflation and rising interest rates. “We need to be much more confident in an environment like this there will still be good investments so we’ll probably still invest in the £100-150m mark this year, roughly half what we did last year,” he said.
High Timber Street (Stew Lane to Queenhithe) ---- COL Scheme Works )URP DP RQ :HGQHVGD\ $XJXVW WR SP RQ 6DWXUGD\ 'HFHPEHU $OWHUQDWLYH URXWH 1RQH 4XHHQKLWKH ZLOO EH FORVHG IRU WKH GXUDWLRQ RI WKLV FORVXUH 5HPDLQGHU RI +LJK 7LPEHU 6W WR EH PDGH WHPSRUDU\ WZR ZD\ IRU DFFHVV Outwich Street &DPRPLOH 6WUHHW WR +RXQGVGLWFK Houndsditch 2XWZLFK 6WUHHW WR 6W 0DU\ $[H ---- Resurfacing Works )URP SP RQ )ULGD\ $XJXVW WR SP RQ 6DWXUGD\ $XJXVW $OWHUQDWLYH URXWH YLD %LVKRSVJDWH *UDFHFKXUFK 6W /HDGHQKDOO 6W $OGJDWH $OGJDWH +LJK 6W 5HPDLQGHU RI +RXQGVGLWFK XS WR FORVXUH SRLQW ZLOO EH PDGH WHPSRUDU\ WZR ZD\ IRU DFFHVV $IIHFWHG SDUNLQJ ED\V LQ +RXQGVGLWFK VKDOO EH VXVSHQGHG St Mary Axe (Leadenhall Street to Undershaft) ---- Mobile Crane )URP DP WR SP HDFK 6DWXUGD\ IURP $XJXVW WR $XJXVW $OWHUQDWLYH URXWH YLD /HDGHQKDOO 6W $OGJDWH $OGJDWH +LJK 6W 0LGGOHVH[ 6W 6W %RWROSK 6W 'XNH·V 3ODFH %HYLV 0DUNV 5HPDLQGHU RI 6W 0DU\ $[H VKDOO EH PDGH WHPSRUDU\ WZR ZD\ IRU DFFHVV 0RWRUF\FOH SDUNLQJ ED\ LQ 6W 0DU\ $[H VKDOO EH VXVSHQGHG Wood Street /RYH /DQH WR /RQGRQ :DOO Utility Works )URP DP RQ 0RQGD\ $XJXVW WR SP RQ )ULGD\ 1RYHPEHU $OWHUQDWLYH URXWH YLD *UHVKDP 6W /RWKEXU\ 0RRUJDWH /RQGRQ :DOO RU YLD *UHVKDP 6W 6W 0DUWLQ·V /H *UDQG 1HZJDWH 6W .LQJ (GZDUG 6W /LWWOH %ULWDLQ 0RQWDJXH 6W $OGHUVJDWH 5RWXQGD /RQGRQ :DOO )RU IXUWKHU LQIRUPDWLRQ SOHDVH UHIHU WR ZZZ FLW\RÁRQGRQ JRY XN URDG FORVXUHV (QTXLULHV WR 7UDIÀF 0DQDJHPHQW 6HUYLFHV RQ IDQ +XJKHV 'LUHFWRU &LW\ 2SHUDWLRQV (QYLURQPHQW 'HSDUWPHQW
'DWHG 26 July 2022
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TUESDAY 26 JULY 2022
CITY DASHBOARD LONDON REPORT
YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS
BEST OF THE BROKERS
City investors stutter ahead of US Fed rate decision as banks soar
L
ONDON markets were mixed yesterday as traders brace for another potential rate bazooka from the US Federal Reserve tomorrow. The capital’s premier FTSE 100 index edged 0.41 per cent higher to 7,306.30 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.11 per cent to 19,802.99 points. Investors were seemingly adverse to making any sudden moves before Fed chair Jerome Powell and the rest of the federal open market committee announce their next decision on interest rates tomorrow. Most traders expect the Fed to launch another 75 basis point rate, the same amount they moved by last month, to chase down a 40-year high inflation rate of 9.1 per cent across the pond.
SHAKY GROUND
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RYANAIR HOLDINGS €
13.0 12.5
12.87
12.0
25 July
11.5
19 July
FTSE 100-listed banks jumped ahead of second quarter earnings season kicking off this week. Now majority-private owned Natwest, which updates markets on Friday, climbed 2.27 per cent, while Britain’s biggest lender, HSBC, which reports on 1 August, added 2.19 per cent. Asia and emerging markets-focused Standard Chartered topped the FTSE 100’s biggest risers’ column, advancing 3.18 per cent. The City is betting a series of rate hikes from the Bank of England will have lifted high street lenders’ bottom lines. GSK’s consumer pharmaceutical spin-out business and FTSE 100-listed Haleon continued to slide, shedding 3.63 per cent. It started trading on the index last week. The pound strengthened 0.28 per cent against the dollar to buy $1.2036.
20 July
21 July
22 July
25 July
Ryanair’s net income of €170m (£144m) was ahead of analysts’ consensus of between €154m and €157m. The airline’s fares and revenues were also ahead of estimates, while costs were higher than expected at €2.3bn. Analysts said “whilst visibility is therefore limited, second quarter average fares are tracking ahead of peak S19 fares by a low double digit percentage.”
SIG P
34.50
33.95
34.00
25 July
33.50
Despite the rebound seen last week for European and US markets, the rebound remains on very shaky ground, and is likely to face further tests ... while we’re not at Covid lockdown levels of pessimism it can’t be too long before we slip back towards levels that we saw during June and July 2020.
33.00
19 July
20 July
21 July
22 July
25 July
Analysts at Peel Hunt have picked the numbers of SIG and confirmed their Buy recommendation at a 68p target price. The UK-based construction products supplier yesterday announced the acquisition of construction accessories firm Miers for a total of £36.5m. “The deal is expected to be accretive in 2022 and consequently we increase our PBT by £1.5m to £53.5m,” they said.
MICHAEL HEWSON, CMC MARKETS
CITY MOVES WHO’S SWITCHING JOBS IRWIN MITCHELL
property department. Georgie Collins, Head of IP and US Desk at Irwin Mitchell, said: “Marcus’ appointment is a strategic and key hire for our IP team and London office both in terms of his experience and the growing demand for international IP advice across our client base,” head of IP, Georgie Collins, said. “I’ve no doubt he’ll be a huge asset.”
Legal services firm Irwin Mitchell has bolstered its London office with a new intellectual property (IP) partner. Joining from White & Case, Marcus Collins has previously focused on international brand protection, trademark prosecution and IP litigation. Collins also worked in-house at SmithKline Beecham’s corporate intellectual
BAUER MEDIA AUDIO
Bauer Media Audio has appointed a people and culture director and general counsel. Ex-LVMH Group Christiane Freund, who joins at the
beginning of September, will be responsible for the people and culture strategy across Europe. While incoming general counsel Adrian Goss, who joins in August, will lead the audio legal team in Europe, as well as offer services to the publishing business. “Christiane and Adrian bring a wealth of experience and excellence to the audio business,” president of audio Richard Dawkins said.
MONEX EUROPE
Corporate FX and hedging provider Monex Europe has built out its board-level leadership team with a trio of hires, subject to regulatory approval.
David Whitcroft, who joins as group director of risk and treasury, brings nearly three decades of experience to the firm, having held positions with Doha Bank, Barclays Bank and CIBC. John Gallagher, newly appointed group chief technology officer and executive director, is Barclays’ former chief information officer and IT director, bringing over 25 years’ experience managing large tech teams. While Jacques de Villiers, as director of digital strategy, has over 15 years of international experience within the foreign exchange industry, having most recently served as business development director at Global Reach Group.
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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at a 30ITH UK inflation surging year high due to supply energy costs and for inchain issues, the casesaving, vesting, rather than been greater. your money has never are still hovering Interest rates low, meaning that around an all-timesavings account or a money held in eroded in cash ISA will be significantly real terms. ISA season, people As we head into their tax-free aluse to still looking to 5 April will need lowance before of inflation eroding weigh up the risk the risk of 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
SIX NATIONS IN ASSOCIATION
THURSDAY 3 FEBRUARY
MAKO VUNIPOLA EXCLUSIVE:
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
‘ENGLAND DO THE GRANDCAN SLAM’
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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
ACQUISITION FRENZY
P4 WHAT FUTURE
FOR ZOOM? P8
OPINION P20-21
OLYMPICS PREVIEW LIFESTYLE P22
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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
ic e o rise o more during the course of 20 an six per cen Therefore, in cash ISAsany money left languishing will decrease in value in
WEDNESDAY
p up again, y are o c im ing nance exper ys a e pring a , i“It is a slow oney s. though. There and stea y process was a base rate rise in
ca s sing rea erms, s a visa com or si er s oc s inancia are them a goo an c ance of
9 FEBRUARY
2022
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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
C b re
ARM WREST
M
A PR Green Stanf said “ chang the m
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BRIT CHIP FIRM TO NOT NEW COME UNDER YORK AFTER CONCHIE POLITICAL REGULATORY BRITISH PRESSURE subject chipmaker Arm York as HURDLES of a charm the is set political favoured destination, ensive t to be the TO LIST insiders END NVIDIA government have but e public IN LONDON is keen indicated the firm listed to see the in London. TAKEOVER firm reportedly in the capital. float glob also wooing Politicians ar PLAN CHARLIE
TIME OFF FOR EXAMS
P9 CO
MAN IN THE KNOW MARK KLEINMAN GETS THE CITY TALKING P13
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today t clearly change app realistic ad is need w the cost by 2050 o cool $9 ac tri C f the f projects r politicians b
list in New York changes to the UK’s listings regime to make it more attractive for tech firms. The governmen consulting with t has been recent weeks as tech bosses in it looks to overhaul the listings system and persuade more tech firms into going public in London.
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FTSE 100 7306.30 29.93
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FTSE 250 19802.99 21.78
Price Chg High Low
GILTS Tsy 2.500 24 ....................376.32 Tsy 5.000 25 ....................108.15 Tsy 4.250 27 .................... 112.36 Tsy 6.000 28 ....................125.46 Tsy 4.125 30 .....................363.48 Tsy 4.250 32.....................120.59 Tsy 4.250 36 .....................121.73 Tsy 4.750 38.....................130.85 Tsy 4.250 46 .....................130.11
DIVERSIFIED INDUSTRIALS -0.06 -0.03 -0.06 -0.13 -0.48 -0.16 -0.39 -0.53 -1.25
379.4 117.4 124.6 140.4 402.3 138.0 148.0 163.4 175.8
358.8 106.8 109.6 121.5 352.1 114.1 115.9 124.8 123.6
Smith (DS) .......................... 272.9 2.9 462.3 270.0 Smiths Gp...........................1507.5 12.5 1629.0 1355.5 Smurfit Kappa Gp...........2768.0 29.0 4305.0 2623.0 Vesuvius...............................355.0 32.0 567.0 284.6
ELECTRICITY Contour Global...................255.5 0.5 257.0 178.0 Drax Gp ................................754.0 11.5 831.5 393.8 SSE ......................................1740.0 12.5 1920.0 1445.5
ELECTRONIC & ELECTRICAL EQUIPMENT
AEROSPACE & DEFENCE BAE Systems ......................780.8 0.8 838.4 Chemring Gp ......................348.0 1.0 367.5 Meggitt .................................791.0 1.4 839.2 QinetiQ ..................................387.4 3.6 387.4 Rolls-Royce ........................... 92.0 -0.7 147.5 Ultra Electronics ............ 3492.0 2.0 3494.0
528.8 256.0 454.4 243.0 78.2 2824.0
Halma .................................2237.0 Morgan Advanced ............296.5 Oxford Instruments .......2190.0 Renishaw ...........................4214.0 Spectris ............................ 2949.0 XP Power..........................2995.0
-45.0 2.5 -30.0 -16.0 -46.0 5.0
3216.0 412.5 2680.0 5565.0 4083.0 5630.0
1876.5 262.5 1760.0 3568.0 2458.0 2730.0
EQUITY INVESTMENT INSTRUMENTS
AUTOMOBILES & PARTS Aston Martin......................469.6 -14.0 2081.0 371.3 TI Fluid Systems ................162.0 -1.0 323.5 142.0
BANKS Barclays ................................160.7 2.9 217.1 140.6 HSBC Hldgs.........................526.5 11.3 567.2 359.8 Lloyds Banking .....................43.8 0.6 55.1 41.0 NatWest Group..................230.2 5.1 253.5 192.8 Standard Chartered.........591.0 18.2 638.6 410.0 TBC Bank Group..............1298.0 50.0 1656.0 901.0 Virgin Money UK ................141.8 0.2 218.1 124.2
BEVERAGES Britvic...................................862.0 10.5 1006.0 741.0 Coca-Cola HBC AG.......... 1941.0 -4.5 2784.0 1460.5 Diageo ................................3722.0 2.0 4103.5 3343.0
CHEMICALS Croda International ......6946.0 -104.0 10410.0 Elementis...............................107.1 2.5 157.3 Johnson Matt..................2095.0 -23.0 3077.0 Synthomer ...........................233.2 0.2 564.0 Victrex ...............................1858.0 6.0 2678.0
5908.0 97.0 1721.0 222.0 1590.0
CONSTRUCTION & MATERIALS Balfour Beatty ...................272.0 Barratt Devel......................502.8 Bellway ..............................2432.0 CRH ....................................2992.0 Genuit Group ..................... 408.0 Grafton Group....................805.5 Ibstock.................................184.0 Marshalls.............................485.4 Morgan Sindall Gp.........2000.0 Persimmon ........................1876.0 Taylor Wimpey ...................127.0 Vistry Group.......................938.5 Volution ...............................400.5
Ä
Price Chg High Low
4.8 3.0 28.0 8.0 -7.0 -4.5 2.8 -1.6 20.0 18.5 0.8 11.0 13.5
319.0 760.0 3526.0 4002.0 801.0 1412.0 239.2 845.0 2685.0 2940.0 182.9 1261.5 560.0
215.6 448.5 2070.0 2756.5 373.0 715.0 154.0 436.2 1776.0 1732.0 113.0 760.5 336.5
3i Infrastructure...............334.0 Aberforth Smlr Cos .......1244.0 Alliance Trust.....................951.0 Allianz Tech ........................229.5 AVI Global Trust................ 185.8 Baillie Gifford Japan........754.0 Bankers InvTst .................. 104.4 Bellevue Healthcare......... 164.2 BlackRock Smaller .........1430.0 BlackRock Wld Mining....568.0 BR Throgmorton ...............630.0 Caledonia Inv .................. 3750.0 Chrysalis Inv ........................ 99.0 City of London IT..............409.0 Edin Inv Trust .....................614.0 Edin Wwide .........................191.8 European Opp .................... 712.0 F&C Investment .................857.0 Fidelity China SPE ............252.0 Fidelity Emg ........................619.8 Fidelity Eur ......................... 291.5 Fidelity Spec Val ................267.0 Finsbury G&I Tst...............836.0 GCP Infra Inv......................114.6 Global Smaller ................... 144.0 Greencoat UK......................152.8 Harbourvest Glb.............2290.0 Henderson Sml Co ............881.0 Herald Inv Trust ..............1704.0 HICL Infr ..............................175.0 Hipgnosis Songs Fund ......112.6 ICG Enterprise .................1182.0 IMPAX ENVIRO MKTS....446.0 JPM American...................736.0 JPM Emerg Mkt ................ 109.6 JPM Euro Disc. ..................394.0 JPM Japan IT ....................469.0
1.0 2.0 -7.0 -3.0 -1.8 -10.0 -0.4 -1.6 14.0 -4.0 0.0 0.0 -5.0 0.5 2.0 -2.6 -4.0 -6.0 -2.0 -0.5 0.0 -5.0 0.0 0.0 0.0 -0.9 30.0 0.0 2.0 1.4 -1.2 44.0 -3.0 -5.0 0.2 -0.5 -5.5
366.5 1612.0 1078.0 370.0 222.0 1106.0 125.0 208.0 2220.0 792.0 1042.0 4100.0 277.0 425.0 657.0 338.0 891.0 946.0 368.5 905.0 345.0 315.0 930.0 118.6 177.0 159.9 2940.0 1370.0 2630.0 183.0 129.2 1314.0 583.0 782.0 139.0 582.0 729.0
304.0 1144.0 887.0 200.0 172.0 662.0 95.5 132.4 1254.0 502.0 533.0 3230.0 90.0 377.0 578.0 160.8 644.0 770.0 218.5 596.5 267.5 250.0 734.0 100.2 134.4 129.6 2000.0 778.0 1560.0 161.0 102.6 954.0 381.5 655.0 99.8 366.5 412.5
FTSE ALL SHARE 4041.31 13.03
Ã
Price Chg High Low Jupiter Fund Mngt ............133.5 -9.2 289.6 133.5 Law Debenture ..................773.0 2.0 830.0 732.0 Mercantile IT...................... 197.8 -0.2 291.0 173.8 Monks Inv Tst ................. 1008.0 -17.0 1472.0 888.0 Murray Inc Tst...................849.0 -1.0 952.0 770.0 Murray Intl Tst ................1242.0 -6.0 1320.0 1076.0 Ninety One ..........................200.8 0.0 277.4 183.7 Pantheon Intl Partn .........250.5 2.5 351.0 240.5 Pershing Square.............2600.0 -20.0 3115.0 2330.0 Personal Assets Tst....48550.0 -100.050900.047350.0 Polar Cap Tech Tst .........2050.0 -50.0 2750.0 1778.0 Renewables Infra Gp........135.8 0.0 139.4 123.2 RIT Cap Partners............2515.0 -15.0 2765.0 2250.0 Schroder Asia .....................531.0 0.0 614.0 498.0 Schroder Oriental ............. 261.0 -1.0 276.5 251.5 Scot American Inv ...........492.0 -2.5 543.0 442.5 Scottish Mortgage ........... 812.8 -18.6 1543.5 670.6 Sequoia Econ Infra ............86.6 0.1 114.6 83.3 Smithson Inv....................1335.0 -14.0 2025.0 1140.0 Syncona ................................207.0 -4.5 222.0 157.2 Temple Bar...........................219.0 -1.0 254.4 203.6 Templeton Em Mkts .........150.0 -1.0 190.3 140.6 Vietnam Enterprise ..........653.0 -9.0 791.0 625.0 VinaCapital Vietna ........... 507.0 -10.0 545.0 449.0 Witan Invest ......................221.0 -1.0 257.0 202.0 Wwide Healthcare .........3410.0 60.0 3835.0 2825.0
FIXED LINE TELECOMMUNICATIONS BT Gp ....................................180.2 3.0 200.9 135.2 Telecom Plus ....................2190.0 10.0 2190.0 1010.0
FOOD & DRUG RETAILERS Greggs ................................1956.0 -23.0 3416.0 1808.0 Ocado Gp .............................759.6 -32.0 2090.0 727.8 Sainsbury(J)....................... 221.2 0.8 340.0 203.3 SSP Group...........................252.5 -3.4 303.2 207.8 Tesco.....................................264.8 5.4 303.4 231.8
FOOD PRODUCERS Assoc British Foods........1695.5 -3.5 2131.0 1526.5 Cranswick ......................... 3316.0 28.0 4148.0 2918.0 Greencore Gp ......................107.3 2.1 146.6 92.6 Hilton Food Gp .................1082.0 10.0 1250.0 971.0 Premier Foods.....................115.0 2.0 126.8 98.3 Tate & Lyle ..........................798.0 4.0 906.5 733.5 Unilever..............................3916.5 5.0 4163.5 3328.0
FORESTRY & PAPER
Price Coats Group...........................72.7 Hargreaves Lans................840.2 IG Gp.....................................795.5 Integrafin Holdings..........256.6 Intermediate Cap ...........1408.5 Intl Public Prtnshps ..........163.4 Investec ...............................430.4 IP Group .................................81.4 JTC ........................................762.0 Liontrust..............................953.0 London Stock Exch .........7812.0 Man Group ..........................270.0 OSB Group .......................... 507.0 Paragon................................ 523.5 Petershill Partners ............227.5 Plus500 .............................1661.0 Provident Financial ...........215.8 Quilter ...................................102.7 Rathbone Grp...................1872.0 Ruffer Investment............299.5 Schroders..........................2774.0 SDCL Energy .......................125.4 TP ICAP .................................119.7
Chg High Low 0.6 81.4 58.2 -16.6 1645.5 762.6 20.5 945.0 648.0 -3.0 602.0 213.0 -17.0 2379.0 1284.5 0.8 174.8 156.0 3.0 536.8 272.8 1.0 155.2 66.7 8.0 936.0 571.0 -5.0 2485.0 854.0 -40.0 8504.0 6370.0 -4.0 274.9 178.8 0.0 599.0 418.8 7.5 617.5 427.2 1.5 350.7 194.8 17.0 1673.0 1255.5 -2.2 381.6 187.4 -0.1 197.1 96.4 -42.0 2210.0 1518.0 0.0 325.0 230.0 8.0 3871.0 2578.0 1.0 125.4 97.8 0.0 208.2 102.5
GENERAL RETAILERS B&M......................................420.9 Currys......................................71.0 Dunelm Gp........................... 873.5 Frasers Group ....................922.0 Howden Joinery Gp..........654.2 Inchcape...............................787.0 JD Sports Fashion .............138.9 Kingfisher............................ 268.1 Marks & Spencer ...............145.4 Moonpig................................199.3 Next ...................................6666.0 Pets at Home Gp ...............325.2 Vivo Energy ........................150.0 Watches of Switz .............875.0 WH Smith...........................1437.0
2.0 0.8 9.5 -20.0 -19.4 -6.0 -3.0 2.7 0.6 -3.3 -20.0 4.2 0.6 -9.0 -17.5
644.0 141.6 1521.0 949.5 975.6 933.0 234.0 374.8 256.9 401.0 8426.0 519.0 152.8 1518.0 1805.5
355.8 66.5 775.0 562.5 581.4 647.0 102.9 234.8 129.5 184.8 5764.0 278.0 101.0 746.5 1311.0
HEALTH CARE EQUIPMENT & SERVICES Convatec..............................222.4 -2.6 261.8 166.8 Mediclinic Intl ...................479.2 -0.6 479.8 275.8 Smith & Neph....................1176.0 -14.5 1563.5 1120.5 Spire Health .......................240.0 1.0 254.5 206.0
HOUSEHOLD GOODS
Mondi ..................................1437.0 20.5 2068.0 1309.0
GENERAL FINANCIAL 3i Group ..............................1227.0 Ashmore Gp........................203.6 Brewin Dolphin ...................511.0 Bridgepoint Group............228.4 Capital Gearing ..............5080.0 Close Brothers ................ 1080.0 CMC Markets .....................308.5
Ã
RISERS
Ferrexpo ....................................... 151.40 Vesuvius ...................................... 355.00 TBC Bank Group ....................... 1298.00
-10.0 -4.2 1.0 -9.2 10.0 0.0 -3.5
1503.5 399.2 517.0 569.0 5180.0 1602.0 455.5
1059.0 192.0 266.0 208.0 4905.0 987.0 219.5
Berkeley Grp Hldgs .......4200.0 27.0 4943.0 3670.0 Countryside ........................275.0 4.2 571.5 225.8 Crest Nicholson .................269.0 3.0 424.2 233.0 Reckitt Benckiser ..........6350.0 82.0 6458.0 5391.0 Redrow.................................585.0 7.5 718.8 470.4
INDUSTRIAL ENGINEERING Bodycote .............................582.5 0.0 984.5 500.0 Hill & Smith ......................1340.0 10.0 1902.0 1110.0 IMI ...................................... 1273.0 -12.0 1838.0 1150.0
% 14.2 9.9 4.0
Price Melrose Ind .........................163.6 RHI Magnesita ...............2068.0 Rotork ..................................252.4 Spirax-Sarco...................11330.0 Weir Gp..............................1509.5
Chg High Low -0.2 190.8 107.6 36.0 4260.0 1823.0 -3.8 373.4 232.8 -5.0 17135.0 9130.0 13.5 1903.5 1328.5
INDUSTRIAL METALS Evraz ........................................81.0 0.0 646.2 53.1 Ferrexpo ...............................151.4 18.8 495.2 107.0
INDUSTRIAL TRANSPORTATION Clarkson.............................3415.0 -20.0 4180.0 2835.0 Redde Northgate ...............374.5 -2.0 443.0 333.0 Royal Mail ...........................294.5 3.7 526.8 264.6
LEISURE GOODS Games Workshp ..............7530.0 -150.0 12220.0 6005.0
LIFE INSURANCE
MEDIA 85.0 -4.6 -8.8 -10.0 -37.0 -8.2 1.9 5.2 -2.8 -13.0 -5.8 -1.6
3200.0 448.8 741.8 1466.0 3910.0 624.0 125.8 258.0 869.4 2449.0 800.4 1224.0
2240.0 253.8 499.5 829.0 1551.0 464.4 62.9 167.0 571.8 2029.0 531.0 761.6
63.5 -1.0 23.0 -2.0 -73.0 -21.4 10.6 -2.8 78.0
4170.5 1781.5 3019.0 109.8 2100.0 986.8 541.5 173.4 6292.0
2470.5 991.6 1835.2 74.4 1510.0 622.4 307.1 74.0 4375.5
MINING Anglo American ..............2729.0 Antofagasta......................1075.0 BHP Group ........................2179.0 Centamin ................................79.2 Endeavour Mining...........1546.0 Fresnillo ...............................648.6 Glencore ..............................432.8 Hochschild Mining ...............74.0 Rio Tinto ...........................4850.0
MOBILE TELECOMMUNICATIONS Vodafone Gp ........................129.0
% -6.4 -5.8 -4.8
Price Chg High Low Hiscox .................................. 890.0 11.2 990.2 792.8 Lancashire Hldgs...............426.2 5.4 675.5 346.6
OIL & GAS PRODUCERS BP ..........................................386.7 Capricorn Energy...............215.4 Energean ........................... 1140.0 Harbour Energy ..................343.1 Shell ...................................2069.0 Tullow Oil................................46.7
3.4 -0.6 26.0 11.3 29.5 1.8
451.4 229.8 1391.0 530.0 2440.0 62.2
287.8 125.6 620.0 298.5 1833.4 39.7
OIL EQUIPMENT & SERVICES Wood Gp(J) .........................149.8 -2.5 256.5 138.1
PERSONAL GOODS Burberry Gp.......................1741.0 15.5 2182.0 1482.0 PZ Cussons...........................207.5 1.5 255.5 182.8
PHARMACEUTICALS & BIOTECHNOLOGY
abrdn .....................................159.1 -2.5 299.0 148.9 Aviva ......................................397.5 5.8 602.9 382.3 Just Group .............................69.0 0.1 106.0 63.3 Legal & General.................255.2 -1.5 307.8 233.2 Phoenix Gp...........................614.0 8.0 701.4 568.2 Prudential ...........................986.4 -16.1 1553.5 881.0 St James Place ................1186.0 1.0 1731.5 1054.0 4imprint............................3200.0 Ascential .............................302.0 Auto Trader Gp..................603.6 Euromny Inst Inv............1456.0 Future ..................................1911.0 Informa................................580.6 ITV ...........................................72.1 Moneysupermkt.com .......225.6 Pearson ................................788.4 RELX ...................................2345.0 Rightmove Group..............623.0 WPP ......................................870.0
Ä
FALLERS
Jupiter Fund Mngt ...................... 133.50 TUI AG .......................................... 129.45 Chrysalis Inv................................. 99.00
0.0 139.5 106.9
NONLIFE INSURANCE Admiral Gp........................1736.5 1.0 3688.0 1729.0 Beazley..................................537.0 15.0 537.0 370.2 Direct Line Ins .................. 200.0 -1.6 316.4 193.7
AstraZeneca .................. 10810.0 Dechra Pharma...............3594.0 Genus................................. 2692.0 GSK ..................................... 1744.8 Hikma Pharma .................1724.0 Indivior .................................314.6
44.0 11232.0 -112.0 5405.0 38.0 6070.0 1.6 1810.4 13.0 2690.0 4.4 336.8
8063.0 3110.0 2234.0 1380.4 1482.0 148.1
-0.6 -16.0 -2.9 -2.0 -0.5 -62.0 -1.8 0.0 0.1 -2.2 -3.6 -0.1 -23.0 6.0 -19.0 -9.5 0.0 -1.0 -2.0 -3.4 -1.0 -0.2 -17.0 -0.5 -16.0
59.6 1200.0 441.7 138.4 185.2 2570.0 269.8 700.5 19.0 643.6 225.6 131.1 1015.0 975.5 950.6 495.8 116.5 106.8 354.5 178.5 84.4 72.4 990.2 118.5 537.0
REAL ESTATE Assura .................................... 68.7 Big Yellow Gp ...................1409.0 British Land ........................486.2 Captl & Count Prop ...........146.9 CLS Hldgs ............................205.5 Derwent London ............2862.0 Grainger...............................295.4 Grt Portland Est .................737.0 Hammerson ...........................21.4 Land Securities..................730.4 LondonMetric Prop ...........247.2 Primary Hlth Prop .............143.4 Safestore Hldgs ...............1120.0 Savills ..................................1143.0 SEGRO ................................1061.0 Shaftesbury........................522.0 Supermarket Income .......125.5 Target Healthcare.............. 114.4 TR Property IT ..................399.5 Tritax Big Box .....................193.9 Tritax Eurobox ..................... 94.5 UK Commercial Prop ..........79.2 Unite Group ......................1190.0 Urban Logistics...................172.5 Workspace Gp ................... 574.0
79.8 1724.0 556.4 179.3 262.0 3802.0 335.0 803.5 39.9 813.2 285.2 169.6 1418.0 1450.0 1436.5 662.0 133.0 119.2 510.0 249.0 124.0 93.4 1237.0 199.0 971.0
SOFTWARE & COMPUTER SERVICES Auction Tech ......................999.0 10.0 1642.0 788.0 Avast.....................................498.3 -4.7 645.4 474.0 Aveva Gp............................2332.0 -61.0 4220.0 1924.0 Baltic Classifieds................149.0 0.0 255.0 99.8
£
/€ 1.1790 /$ 1.2039 /¥ 164.65
Price Computacenter...............2506.0 FDM Group..........................899.0 Kainos Gp ..........................1223.0 Micro Focus Intl .................287.3 NCC Grp ...............................202.0 Playtech ...............................488.0 Sage Group .........................695.0 Softcat ...............................1364.0
à à Ã
0.0037 €/$ 1.0212 0.0018
€/£ 0.8482
1.0100
€/¥ 139.65
Chg High Low -20.0 3030.0 2268.0 -16.0 1362.0 830.0 4.0 2084.0 954.5 0.8 466.1 256.3 2.0 335.0 167.4 12.4 770.0 370.0 -5.4 853.8 595.6 -9.0 2240.0 1253.0
SUPPORT SERVICES Ashtead Gp .......................4138.0 Babcock Intl Grp............... 332.8 Biffa .......................................357.8 Bunzl ...................................3019.0 DCC .....................................5170.0 Diploma.............................2656.0 discoverIE Gp.....................691.0 Essentra...............................248.5 Experian ............................2781.0 Ferguson ...........................9940.0 Hays .......................................125.1 Homeserve .........................1177.0 Intertek Gp......................4384.0 IWG........................................191.8 MITIE GROUP.......................73.3 Network Int.........................194.6 Pagegroup...........................459.4 Rentokil Initial...................506.6 RS Group .............................988.5 Sanne Group.......................920.0 Serco ....................................186.8 Travis Perkins....................1033.5
-51.0 6450.0 0.8 380.2 -3.4 416.0 -24.0 3163.0 -86.0 6486.0 -58.0 3460.0 -8.0 1262.0 1.5 357.0 -53.0 3667.0 -36.0 13305.0 -1.9 175.4 1.0 1179.0 -133.0 5782.0 -2.5 328.0 1.5 77.3 3.4 394.4 -7.2 680.5 -8.8 636.2 -25.5 1255.0 6.0 946.0 4.4 186.8 -16.5 1830.0
3359.0 255.9 283.0 2397.0 4889.0 2158.0 597.0 227.0 2285.0 8680.0 109.0 608.5 4188.0 181.8 46.5 171.8 386.0 444.5 812.0 844.0 121.2 938.4
TECHNOLOGY HARDWARE & EQUIPMENT Spirent Comms.................. 271.2
1.0 300.2 215.4
TOBACCO Br Am Tob ........................3466.5 46.0 3628.0 2512.5 Imperial Brands ..............1863.5 8.5 1900.5 1486.0
TRAVEL & LEISURE 888 Holdings....................... 151.1 -5.1 478.0 Carnival................................659.2 -32.8 1766.4 Compass Gp......................1845.0 -9.0 1854.0 Dominos Pizza....................282.6 -1.0 465.2 easyJet .................................373.8 -5.3 888.8 Entain ................................. 1154.5 -25.5 2377.0 FirstGroup........................... 130.5 -0.5 139.5 Flutter Ent........................8060.0 -216.0 15890.0 Intercontl Htls .................4729.0 -33.0 5338.0 Intl Cons Airl.......................114.0 -0.8 188.0 Mitchells & Butlers ...........176.6 2.3 295.0 National Express ................177.3 -5.0 284.2 TUI AG ..................................129.4 -8.0 352.2 Wetherspoon (JD) ............560.0 -6.0 1167.0 Whitbread.........................2659.0 -31.0 3438.0 Wizz Air Holdings ...........1928.0 10.0 5398.0
MARKETS
144.0 619.6 1436.0 272.6 345.5 1075.5 81.9 7614.0 4193.0 102.9 160.7 169.0 124.3 540.0 2431.0 1695.0
Ä Ä Ã
13
0.0015 0.0026 0.4240
Price Chg High Low
AIM 50 Abcam .................................1183.0 Advanced Medical ............272.5 Alliance Pharma..................98.2 ASOS....................................1121.0 Camellia ............................6225.0 Caretech Holdings ............744.0 Central Asia Metals ......... 241.0 CVS Group......................... 1703.0 Dart Group ..........................878.2 Diversified Energy ..............116.1 EMIS Group......................1846.0 FD Technologies ..............1996.0 Fevertree Drinks ..............1077.0 Frontier Devs....................1406.0 Gamma Comms ...............1098.0 GB Group .............................455.8 Gooch & Housego .............930.0 Hurricane Energy...................8.4 Impax Asset Mgmt ..........648.0 Iomart Group ......................179.6 IQE...........................................40.0 James Halstead ..................213.0 Johnson Service Gp .........104.0 Keywords Studios .........2404.0 Learning Tech Gp ...............129.4 M&C Saatchi ....................... 147.0 M.P. Evans ...........................810.0 Majestic Wine.....................161.2 Midwich Group ..................550.0 Molten Ventures ............... 471.2 Mortgage Advice B ..........920.0 Next Fifteen Comm ........1034.0 Nichols................................1275.0 Numis Corporation ............257.0 Polar Capital Hdgs............475.0 Purplebricks Gp....................14.5 Renew Holdings.................703.0 RWS Holdings ....................365.0 Secure Income REIT .......461.0 Serica Energy.....................375.0 Smart Metering Sys........ 880.0 Telford Homes....................349.5 Thorpe (F.W.)......................380.0 Watkin Jones ..................... 221.5 Young’s Brew NV...............750.0 Young’s Brew-A................1184.0
-14.0 -5.5 1.2 -36.0 0.0 1.0 7.0 -7.0 -11.8 2.1 -10.0 -69.0 7.0 -52.0 -42.0 -14.4 -6.0 1.2 4.0 -2.8 0.3 1.0 -3.6 -24.0 0.6 -5.0 -14.0 -3.8 -6.0 -9.4 0.0 -22.0 15.0 -6.0 0.5 0.0 12.0 -12.6 0.0 18.0 -6.0 0.0 2.5 -0.5 20.0 16.0
1750.0 341.0 121.6 4080.0 6925.0 747.0 284.0 2770.0 1423.0 128.8 1890.0 2500.0 2812.0 2840.0 2335.0 952.5 1455.0 11.7 1482.0 265.5 53.3 580.0 162.0 3302.0 235.8 216.0 1085.0 879.0 700.0 1180.0 1500.0 1458.0 1540.0 383.0 902.0 73.0 872.0 678.5 480.0 418.5 1030.0 349.5 520.0 276.5 982.0 1660.0
1049.0 256.5 95.0 783.5 5850.0 530.0 200.5 1549.0 783.8 98.5 1136.0 1378.0 866.5 1078.0 1026.0 386.2 816.0 2.1 550.0 140.0 28.2 196.0 97.6 1952.0 107.1 125.0 684.0 151.0 494.0 391.8 840.0 874.0 1105.0 230.0 438.0 14.1 594.0 331.8 394.0 145.6 688.0 349.5 371.0 205.5 648.0 1120.0
14
OPINION
TUESDAY 26 JULY 2022
CITYAM.COM
OPINION EDITED BY SASCHA O’SULLIVAN
A London transport funding deal must not come at the cost of accessibility Elena Siniscalco
H
OW many of us have gotten lost in the maze between Bank and Monument station? Imagine how much harder it would be if you suddenly couldn’t remember where you had to go. “I get very confused with technology”; “I can’t ask what I’m doing wrong to a machine”. These are common refrains from people affected by dementia while trying to get a ticket or journeying across the underground system. Chief among the complaints driving tube workers to strike this summer were job cuts, pensions and so-called “modernisation” plans. TfL bosses plan are set to cut 600 jobs among underground station workers. It would mean letting go 10 per cent of the workforce. People with dementia are one of several groups who would be affected by TfL’s planned staffing cuts, together with people with disabilities - spanning from wheelchair users to those with sight impairment - and those who don’t speak English. The debate about staffing cuts is part of a broader discussion on accessibility. Only 33 per cent of London’s tube stations have step free access. A wheelchair user has to wait for every third bus, on average, before there is
City Hall is currently considering a long-term transport deal room for them to board. Sadiq Khan’s transport strategy aims to make public transport “safe, affordable, and accessible to all”. We are not even close. Despite this, TfL staff do their best to assist those who need just a bit more help to move around. A TfL spokesperson points to the “Turn Up and Go” service, where people with disabilities get support from the moment they enter the station to the moment they board their carriage. Yet if the network decides to go ahead with the staffing cuts, people with disabilities will have to rely on the kindness of strangers to descend from the tube or to understand where to go. It would be shameful for TfL to
have to delegate this responsibility of care to the other passengers. To be fair on TfL, they haven’t had it easy. The fight about budget cuts with the government has been excruciating. The funding package provided to sustain the network during the pandemic - when passenger revenue collapsed - has expired. But the mayor has warned that without continued support to the recovering transport system, a prospect of “managed decline” would harm the capital. Discussions are ongoing, with a long-term funding agreement currently being reviewed by City Hall. But TfL is caught between a rock and a hard place: how to modernise and make
more stations accessible, all while retaining staff under a shrinking budget? “People will invest money back in public transport if they feel safe and supported in using it”, says Kirstie Kalonji, policy manager at the Alzheimer’s Society. A big part of the mayor’s transport strategy is about reducing the use of cars to cut emissions - he wants 80 per cent of all trips in London to be made on foot, by cycle or public transport by 2041. Yet most people affected by dementia or disabilities won’t use public transport if faced with the prospect of a mainly automated system. They will resort to cars or taxis instead.
Simple soundbites for post-Brexit dividends do the City little good for our future growth
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O YOU want the City of London to be slow and cautious or quick and nimble? This is how the debate over a potential new round of regulation in the City of London has been framed. However, the situation is clearly more complex than this simple soundbite suggests. Forming part of ex-chancellor Rishi Sunak’s pitch to become Tory leader, publicly backed by current chancellor Nadhim Zahawi and reported to be backed by Boris Johnson, the proposals have been dubbed “Big Bang 2.0”. This reference to Margaret Thatcher’s successful deregulation of the Square Mile in 1986 is clearly aimed at Conservative Party members, who have the final say in the current leadership election – a victory that will also come with the keys to 10 Downing Street. It is also aimed at an investment environment which was promised substantial more flexibility in return for voting to leave the European Union. The so-called “Brexit dividends” have
Garry White
been slow to materialise. Sunak, Zahawi and Johnson are all said to be frustrated with the pace of regulatory change. So far, there has been no “bonfire of EU red tape” as was promised in the Brexit campaign – particularly in relation to Solvency II capital adequacy rules, which tie up funds at insurance companies. This is the kind of sentence which makes most people’s eyes glaze over, but these rules form an important part of safeguards in place. The debate over Solvency II is highly politically charged, but there is a simple proposition at its heart. If capital rules for insurance companies are
loosened it will release funds that will be available to direct into long-term infrastructure projects. This will allow insurers to invest in projects that deliver a long-term income stream, give the UK an infrastructure that is fit for the 21st century and provide a boost to The City itself. It has, however, come up against some regulatory resistance. Andrew Bailey, governor of the Bank of England, wants to ensure it does not increase risk and has warned he will oppose any changes that would undermine the stability of financial regulation. He has been especially vocal on proposals to allow ministers to call in regulatory decisions for approval. “The independence of the regulators is important because much of our international standing depends on this,” he argued. Of course, there is nothing wrong with a “growth-focused” approach to City regulation. However, rules and regulation are not “anti-growth” they are “anti-risk”. Regulators are in place
to protect investors from unscrupulous operators but also to maintain the reputational integrity of the City as a good place to do business. These rules were put in place after the financial crisis, which was a direct result of too little oversight in some jurisdictions. Managing risk is one of the most important aspects of investment – it cannot be treated lightly. If loosening regulations creates new systemic risk, it is all the more important they are watertight. This is clearly what drives Bailey’s opposition to the move. Helping the City to find new areas of growth post-Brexit is a vital task. As any investor knows, becoming more growth orientated in your investments ups the risks involved. As eager as those in the race for PM might be to prove their prowess to the City, the security of regulations must not be sacrificed at the political altar of speed. £ Garry White is chief investment commentator at Charles Stanley
This leads to what Amy FrancisSmith, a specialist architect in inclusive design, calls the “disability tax” the unfair cost that disabled people have to cough up to travel. By bringing these people back into the underground system, TfL would make more money that could be used to retain staff. It would be a virtuous circle. The underground could learn from metro systems elsewhere in Europe. Barcelona’s metro ticket machines were notoriously impossible to use for people with visual impairments and older people. They were envisioned as a cost-saving measure, but they were so inefficient that they required staff to be there to explain how to use them - the expensive opposite of their aim. “So they got people with visual impairments to redesign them, to make them as intuitive as possible”, says Matt McCann, CEO of Access Earth, an app that helps people with disabilities navigate public transport. Barcelona has also set the new target of making 100 per cent of their metro service wheelchair accessible by 2024, and they’re on track to fulfil their goal. It shows it’s possible - even in cities with old infrastructure like Barcelona or indeed, London. With TfL forced to make significant savings, it is unlikely it will find the money “for what is sadly still seen as a ‘nice-to-have’”, says Katie Pennick, Campaigns and Policy Manager at Transport for All. Yet everything starts with transport - allowing people to reach schools and workplaces. For all the talk of achieving equality in our capital, with an unequal transport system, how we do it can only remain a mystery.
WHAT’S WEARING YOU DOWN? It couldn’t be the bizarre twist the Tory leadership race has taken, could it? Nadine Dorries kicked off a fashion feud after slamming Rishi Sunak for a £3.5k suit, while Truss’ earrings only cost £4.50. But it turns out the Culture Sec has a pair worth a hefty £6k
TUESDAY 26 JULY 2022
CITYAM.COM
WE WANT TO HEAR YOUR VIEWS
LETTERS TO THE EDITOR Staying ahead of the game [Re: Jubilee weekend boom fails to lift June’s retail sector, July 22] Given the difficult winter ahead, it is unsurprising the latest ONS retail data showed that many are choosing to spend less. However, the rise in food sales tells a slightly different tale. Driven by the Queen’s Platinum Jubilee, it speaks to the ability of grocers to connect with their customers in moments of celebration. During the challenging months ahead, grocers must work hard to maintain that special relationship and connect with consumers on a personal, human level. Grocers who fail to connect face an
uncertain future. According to Ensono research, 79 per cent of UK shoppers have tried an alternative grocer following their experience with their normal grocer during the pandemic. Unlike previous decades, consumers aren’t as attached to their grocers as they once were. To stay ahead of the game, businesses in this sector need to rethink and reimagine the shopping experience for customers. A period of economic slowdown is a moment for grocers to work even harder to stay in touch with customer needs, offering them a personalised experience that mixes value and flexibility. This work will be enabled and accelerated by a modernised approach to technology, bringing together the best of cloudnative systems with reliable back-end mainframe technology. Simon Ratcliffe
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to radiologists, dentists to social care workers, warned about a collapse in the quality or number of staff in their workforce, despite government targets to increase new recruits. The NHS in England is short of 12,000 hospital doctors and more than 50,000 nurses and midwives. The number of GPs has continued to fall. It comes only days after another report showed the number of people turning to private care. In the final three months of last year, there were 69,000 private treatments carried out - a 39 per cent rise on pre-pandemic.
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Lee Shankland-Gort
Editorial Editor Andy Silvester | News Editor Ben Lucas Comment & Features Editor Sascha O’Sullivan Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres Creative Director Billy Breton | Digital Editor Michiel Willems Commercial Sales Director Jeremy Slattery
EXPLAINER-IN-BRIEF: DID WE PROTECT THE NHS? During the pandemic, the flagship slogan from No10 was centered around protecting the NHS. Without the health service, we were repeatedly told, the collateral damage of deaths and waitlists would enact a toll much greater than Covid-19 on the UK. A damning report released yesterday by a cross-party group of MPs suggests the damage has already been done. It’s worth remembering the health service was struggling pre-pandemic, with waiting lists for elective surgery growing 50 per cent from 2015 to 2020. But A range of groups, from GPs
Reckless greenwashing has tarnished faith in the private sector’s role in social issues
with the overturning of Roe – with potentially devastating consequences – brought in the name of populist politics. But we have also seen many businesses offering support – financial or otherwise – to those affected by what is seen as very unjust law. Without doubting the values of those businesses, those decisions are clearly influenced by the knowledge that it’s what their consumers, employees and shareholders expect to see. One might well ask what this has to do with ESG, but the answer is: everything. Not only is it businesses demonstrating social impact, it is also a clear case of customer values driving a ground roots movement that is confronting injustice head-on. In order for this to work for other issues, such as poverty, discrimination or ecological devastation, trust is crucial. Nothing will accelerate fatigue more fiercely than cynicism. So how do we overcome that ESG Fatigue? How do proponents of ESG ensure that governments don’t row back on their environmental commitment, that lawmakers don’t introduce regressive laws which contravene human rights, that senior
It’s not just British airports struggling to ensure travellers can make their way smoothly out of the country. Ground staff at German airports working for Lufthansa will go on strike tomorrow morning for a 9.5 per cent pay rise.
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› E: opinion@cityam.com COMMENT AT: cityam.com/opinion
FTER the past month anyone might be forgiven for struggling to remember what last year's biggest priorities were. While political attention has been whisked away from the stark problems we face, those problems have not helpfully agreed to go on standby. If anything, they have intensified – and nowhere is this more evident than the increasing problem of greenwashing. We should not doubt the insidious effects. Despite tremendous efforts, meeting the UN’s Sustainable Development Goals by 2030 remains a distant ambition, beset by myriad challenges. We live in a post-pandemic world seemingly on the brink of global war, with supply chains interrupted and a cost of living crisis. So far, focus on ESG has had tremendous influence on businesses, communities and individual lives. From carbon-intensive firms looking to reposition their business models to entire countries over-reliant on fossil fuels, we have seen sustained efforts at continuous transition. But even those of us who believe passionately in the benefits can see that we are at a crossroads. We have seen governments row back on commitments – some now claiming gas extraction is "green", senior business commentators categorising ESG advocates as “nutjobs” and US Senators demanding ESG be “reined in”. And worst of all – against a backdrop of increasing hardship and rising costs – is the spectre of ESG fatigue. The philosophy behind ESG is simple: in the absence of regulation or intergovernmental co-operation, everyone can influence change to tackle the largest environmental and societal challenges through their choices – as employees, employers, consumers, purchasers, stakeholders, or shareholders. If businesses fear their consumer base will go elsewhere, that will influence their values and drive them to advocate change. If enough individuals, groups and businesses do so; governments have no option but to follow suit. The hope is that where regulation fails, business and society will step in to tackle unfairness. This may seem naïve, but in truth we can see it happen all the time – more usually in respect to social issues than green ones. In the US, we have recently seen one of the largest reversals of progressive social regulation in a century
LUFT YOU UP, LET YOU DOWN Staff at Lufthansa set to strike over pay
OPINION
Liz Truss has suggested she would remove green levies on gas bills voices within large business offer constructive and not destructive challenge to ESG? Yes, we need better government, with a consistency of message, which rolemodels behaviour. But we also need globally-recognised, internationally applicable regulation. This is the only way to ensure all entities - businesses, nonprofit making organisations and, in particular, government and public bodies – are transparent and accountable for their ESG commitments. This will help end greenwashing and drive real progress. None of this is new. But government and business commitments to ESG are at such a critical moment. The private sector has made great leaps in driving the ESG agenda, green bonds are launching, social finance is booming, and companies are creating new ways of delivering renewable energy by the day. The risk is that if the public will for change ebbs away, so will their impetus to change. £ Lee Shankland-Gort is partner, head of social, sustainable and green finance at Addleshaw Goddard
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LIFE&STYLE
CITYAM.COM
TUESDAY 26 JULY 2022
MOTORING BY MOTORINGRESEARCH.COM FOR CITY A.M.
SIMPLE PLEASURES The Mazda MX-5 offers a sense of connection that the majority of cars lack. John Redfern drives the latest version
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AZDA has updated the muchloved MX-5 for 2022, hoping to keep its now seven-year-old sports car feeling fresh. In reality, with the growth of electrification and the fashion for oversized SUVs, a simple two-seat roadster is now something of a rarity. The latest MX-5 still resembles the car that debuted back in 2015. Mazda has subscribed to the philosophy that its shrink-wrapped styling was good enough to remain unchanged. This year does bring the option of a new Platinum Quartz Metallic paint colour (seen here), though. Not messing with a winning formula is the overall mantra for this update, and also true for the MX-5’s two naturally aspirated petrol engines. Although the 1.5-litre is said to be the favourite of Mazda engineers, we took to the road in the punchier 184hp 2.0 version. An engine that revs beyond 7,000rpm
is a treat in 2022, and the MX-5 demands you work the gearbox to make the most of it. Doing so isn’t a hardship, though, with the six-speed manual delivering a short throw and a wonderfully mechanical action. It’s a world away from the turbocharged engines and dual-clutch transmissions of many modern cars, let alone anything electric. Yes, a turbo would probably make the MX-5 quicker than its 0-62mph time of 6.5 seconds, but that’s missing the point. With the roof down, it feels more than fast enough, and the pleasure comes from the sights and sounds of roofless motoring. Mazda has also given the MX-5 additional tech to enhance its on-road performance. All models now come with Kinematic Posture Control (KPC), which aims to reduce body-roll when cornering. It works by braking the inside rear wheel through a turn, with
MAZDA MX-5 2.0 GT SPORT TECH PRICE: POWER: 0-62MPH: TOP SPEED: FUEL ECONOMY: CO2 EMISSIONS:
£25,725 184HP 6.5SEC 136MPH 40.9MPG 155G/KM
the resulting force then pulling the body downwards. The effect is incredibly subtle, and would take driving the older and new models back-to-back to notice it. This enhances the sensation of the MX-5 rotating around your hips, aided by the torque of the 2.0-litre engine. Adding to this is the low-slung driving position, along with steering that still feels as accurate and delightful as when this fourth-generation car was first launched. Being behind the wheel of an MX-5
makes you think about your driving. You work out braking points, focus on smooth steering inputs, and ultimately enjoy being part of the process – instead of being a button-pressing human-AI interface. The only real drawbacks are, as ever, the MX-5’s tiny 130-litre boot, plus an interior that can feel cramped for larger drivers. There are cubbyholes for smaller items, and even cupholders, but practicality is not the MX-5’s strong suit. However, its folding soft-top roof remains a paragon of simplicity, while those who prefer a folding metal roof are served by the MX-5 RF version. The hard-top does add weight and complexity, though, which seems a little at odds with the MX-5 ethos. Standard equipment for the MX-5 remains strong, with all cars gaining LED headlights, a 7.0-inch multimedia screen, automatic air-con and cruise
control. Higher-specification models add leather seats, a Bose sound system and a reversing camera. The 17-inch BBS alloy wheels fitted to the GT Sport Tech are a particular highlight. All of the above add extra degrees of luxury, but are ultimately superfluous to the overall MX-5 experience. In a world that looks set to be increasingly dominated by autonomous vehicles and self-driving technology, a simple sports car is a refreshing change. It is easy to lapse into hyperbole about this little Mazda, but in truth it really is that good. Enthusiasts often joke about the MX-5 being the answer to every automotive question. The latest model is still the default choice for those who want pure and affordable motoring enjoyment. Buy one while you still can. John Redfern writes for motoringresearch.com
STIRLING MOSS'S FAVOURITE CAR: RACING LEGEND’S MERCEDES SL UP FOR SALE
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MERCEDES-BENZ 230 SL ‘Pagoda’, formerly owned by Sir Stirling Moss, will be auctioned next month. Moss famously never won the Formula 1 World Championship, but he is indisputably one of motorsport's greatest heroes. The 1966 230 SL was built to his own requirements, and has never been restored. It will cross the block at next month’s The Classic Sale at Silverstone. The second-generation 'W113' Mercedes-Benz SL was launched in 1963. Moss was particularly impressed by it, saying: "In all the years I have been driving, I cannot remember ever driving a car that I liked more – except for racing cars". When the
Mille Miglia winner and former Mayfair resident wanted a new car, it was top of his list. Although Moss had already retired from racing, his earlier success with the Mercedes-Benz team allowed him to order a unique 230 SL. Instead of the standard engine, he requested the more powerful 2.5-litre motor from the 250 SL. These were reserved for American buyers, but Moss had one made in right-hand drive. The engine itself was hand-selected from the production line. More bespoke features included an opening roof vent, added to the Pagoda’s hard-top. Engineered specially for Moss, it was based on the
item used in the Mercedes-Benz 300 SL 'Gullwing'. The 230 SL was owned by Moss until 1968. A new owner had the car painted in its current Jaguar Pearl Grey, and it was later bought by Mercedes collector, Jack McAleer. Owned by the McAleer family from 1977 until today, this is the first time the car has been offered for sale in 45 years. Its history file includes the original factory order form, made out to Stirling Moss. With a pre-sale estimate of £100,000 to £120,000, the Mercedes-Benz will be auctioned on Saturday 27 August. The sale is part of the annual Silverstone Classic motorsport event.
CITYAM.COM
TUESDAY 26 JULY 2022
PUNTER
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THE PUNTER RACING TRADER
Bill Esdaile previews the Goodwood Cup and Lennox Stakes
Kyprios to prove he’s the star stayer in Goodwood Cup
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LTHOUGH the Qatar Goodwood Festival takes place over the next five days, many will argue that the race of the meeting comes during today’s opening salvo. The Al Shaqab Goodwood Cup (3.35pm) might only feature nine runners, but they are a seriously talented group headed by the Ascot Gold Cup winner KYPRIOS. Aidan O’Brien has always talked about the son of Galileo as a potential staying superstar and it’s pretty rare that the master of Ballydoyle gets it wrong. That’s once again been the case with Kyprios, who has won all three of his
races this season, including the aforementioned Gold Cup on his most recent outing. The winning margin might have been half-a-length that day, but given Ryan Moore had to track a wide path from quite a way out, he was probably better value than the official result. He hit the line well but there’s enough to suggest the drop back to two miles will suit him better, particularly as he’s shown plenty of pace in the past, and he looks a strong candidate to give O’Brien his first win in the race since Yeats in 2008 at 13/8 with Star Sports. The World Pool with tote.co.uk is back in action for the first three days of the
Kyprios (nearside) gets the better of Stradivarius at Ascot
meeting at Goodwood and with huge sums likely to be in the pools, I’m going to suggest adding a couple of Kyprios’ rivals into a Quinella alongside him. And the first of those simply has to be STRADIVARIUS. His record in this race speaks for itself having won the two-mile contest a record four times and for many he comes into this after a very unlucky third at Ascot. Frankie Dettori, Stradivarius’ jockey for 26 of his 34 races, took much of the blame for his luckless run at the Berkshire track and while the Italian has made up with John Gosden subsequently, owner Bjorn Nielsen hasn’t
been quite as forgiving with Andrea Atzeni taking over in the saddle. Atzeni, of course, won two Goodwood Cups on Stradivarius, so the change isn’t a negative, but it certainly adds another level of intrigue to an already fascinating contest. The dry weather which has hit the UK recently will suit the eight-year-old and while he’s probably not quite the force of old, he’s still a big player and looks a must for the exotic bets. Last year’s winner Trueshan has to be respected on the back of his huge weight-carrying performance in the Northumberland Plate, but given his trainer Alan King pulled him out of the
Gold Cup due to the quick ground, there have to be serious doubts about his participation here on a likely similar surface. Instead, the final one for the World Pool Quinella is COLTRANE. Andrew Balding’s five-year-old contests his first Group race here, but looks very progressive and could pick up the pieces if the big guns misfire.
POINTERS Kyprios 3.35pm Goodwood Kyprios, Stradivarius, Coltrane (World Pool Quinella) 3.35pm Goodwood
Put faith in Sacred to give Haggas a first Lennox Stakes victory T
HERE aren’t many races in Britain that trainer William Haggas hasn’t won, but today’s World Pool Lennox Stakes (3.00pm) is one of them. I have a feeling that might be about to change though as I’m keen on his filly SACRED at 13/8 with Star Sports. The four-year-old has always been highly touted, and she’s already gone some way to repaying that potential
having won both the Nell Gwyn and Hungerford Stakes last year. She was tried in the Platinum Jubilee on her first start of the season and while she ran well, she looked a touch outpaced, so the step back up to seven furlongs looks a wise move. Haggas continues to fire out plenty of winners and I can see Sacred getting his week off to a great start.
She’s marginally preferred to POGO, who is greatly respected. Charlie Hills’ six-year-old seems to be a totally different horse this season having posted career bests en route to victory at Haydock and Newmarket. He’ll be very tough to peg back, and should go well at 9/2 with Star Sports, but I feel Sacred will have a touch too much speed for him at this track.
I’ll certainly be sticking both of those in a World Pool Quinella and I’ll also be adding SANDRINE . All of her wins last season came over six furlongs, but she’s been campaigned over a mile this term. Andrew Balding’s contender ran well in the Falmouth Stakes last time but looked to be slightly running on empty at the finish, so she should be much
happier dropping down to seven furlongs here. She could easily outrun her odds of 11/1.
POINTERS Sacred 3.00pm Goodwood Sacred, Pogo, Sandrine (World Pool Quinella) 3.00pm Goodwood
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PUNTER
CITYAM.COM
TUESDAY 26 JULY 2022
THE PUNTER RACING TRADER
Bill Esdaile previews the action on day one of Glorious Goodwood
Caradoc can Rock Goodwood in Glorious opener
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HERE wouldn’t be a more fitting winner of the opening race of Glorious Goodwood than the Queen’s Just Fine in her Platinum Jubilee year. The four-year-old is 11/2 favourite with Star Sports to land the Coral Chesterfield Cup Handicap (1.50pm) after an eyecatching run at York earlier this month. Supporters of Her Majesty’s runner will hope he is returning to form at the right time and the handicapper has dropped him two pounds, which looks generous. The concern is he didn’t fire on his only previous run at the track and is becoming a little expensive to follow. BELL ROCK is ridden by the excellent Harry Davies and is attempting to make it third time lucky having been targeted
at this race for the last two years. Two years ago, he was an excellent third, while last year torrential rain changed the ground, so he was a late withdrawal. The six-year-old has since been upped in grade, being placed in a Group Three and Listed races at Haydock, Windsor and York. He will relish this step up in trip on fast ground and has a big shout each-way at 15/2 with Star Sports. Like Just Fine, CARADOC suffered a nightmare passage up the straight at York, so that run is best forgotten. He was runner-up in this race 12 months ago and was also second at the April meeting this season, so the track suits him.
Ed Walker’s Caradoc (right) finished second in this race 12 months ago Furthermore, all his four wins have been on this fast ground, and he looks another serious player at 11/2 each-way with Star Sports. LEGEND OF DUBAI was an expensive disappointment when a well-backed unplaced favourite in the Royal Hunt Cup. He still has very few miles on the clock and remains of interest back up in trip. The World Pool once again offers punters huge value for the first three days of the meeting, as the world bets into the huge pools. I’d be keen to throw my two selections into a Quinella with the addition of the better fancied Legend Of Dubai as his sub-100 handicap mark could still underestimate his ability. The Vintage Stakes (2.25pm) sees the re-
turn of shock Royal Ascot winner Holloway Boy who managed to win the Chesham on his first racecourse start. That was a remarkable effort, and he is just 15/8 with Star Sports to prove that there was nothing fluky about it. The jury is still out for me as both the second and the fourth have finished last in their respective assignments since. Charlie Appleby has his team in red-hot form once again and runs MYSTERIOUS NIGHT, who wasn’t suited by the drop down in trip at Newmarket last time where things happened a little too quickly for him. The son of Dark Angel should relish the extra furlong here and looks too big at 4/1 with Star Sports to upset the favourite.
Mark Johnston is always to be respected at this meeting and runs both Dear My Friend and Dornoch Castle who are likely to be positively ridden from the front. Both may be vulnerable late on, but make plenty of appeal if playing the exotics and you are tempted to leave the favourite out.
POINTERS Caradoc e/w 1.50pm Goodwood Bell Rock e/w 1.50pm Goodwood Caradoc, Bell Rock, Legend Of Dubai (World Pool Quinella) 1.50pm Goodwood Mysterious Night 2.25pm Goodwood
It could be Destiny for Lord Riddiford to win big handicap again S
PRINT races at Goodwood are virtually all downhill making this one of the fastest five furlongs in the calendar. It’s unsurprising then that a proven ability to handle the track is an important factor, and several in this race, the Nicholson Gin Handicap (4.10pm), have shown form here in the past. CELSIUS is a course and distance
winner and looks the form horse coming into this race after winning his last two starts. While he’s naturally been hit with a rise in the weights, he has gone close off higher handicap marks in the past so still looks feasibly treated. However, one that might have been overlooked, is last year’s winner LORD RIDDIFORD. John Quinn’s seven-year-old hasn’t
won since taking this race 12 month ago and now finds himself lower in the weights. A record of two wins from three starts shows he thrives on this sharp track and while his most recent form has to be forgiven, it’s likely his two recent runs were intended to prepare him for another go at this race. He can be backed at 12/1 with Star Sports and looks sure to be in the mix.
Another weighted to run well is Andrew Balding’s seven-year-old STONE OF DESTINY who wears cheekpieces for the first time. He finished sixth in a Group Two at this meeting last year when rated 104 and has slipped to a mark of just 84 after a string of disappointing efforts. With Harry Davies’ five-pound allowance, he is in essence running from a mark of just 79 and cannot go
unbacked at 9/1 with Star Sports. I’ll also be throwing the pair in a Quinella with the likely favourite Celsius.
POINTERS Lord Riddiford e/w 4.10pm Goodwood Stone Of Destiny e/w 4.10pm Goodwood Lord Riddiford, Stone Of Destiny, Celsius (World Pool Quinella) 4.10pm Goodwood
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TUESDAY 26 JULY 2022
SPORT
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I
F YOU lived through the London 2012 Olympics then you will probably remember where you were for its most spectacular or poignant moments – Super Saturday, Danny Boyle’s vivid opening ceremony, Andy Murray winning tennis gold – and Sir Craig Reedie is no different. But while the former chairman of the British Olympic Association, one of the key figures in bringing the Games to the capital, had a front-row seat for most of that golden 17 days which began a decade ago tomorrow there was one highlight that he missed: Usain Bolt’s 100m final. Reedie had been due to be in the stadium in his capacity as a member of both the London organising committee (Locog) and the International Olympic Committee (IOC) but stepped in to present fencing medals at the ExCel when a colleague was forced to drop out.
RACE AGAINST TIME
“I went to help the IOC and there was a protest and it went on and on. It became clear that I wasn’t going to get back to the stadium in time,” he recalls. “So we went back to the car but found that our television set had broken down. I think I was the only person in the world who didn’t see the 100m final as it happened.” It is one of few regrets that Reedie harbours about that time and the £9bn London 2012 project as a whole, which he staunchly defends as both a success and good value for money as the 10-year anniversary provokes a bout of national introspection. The Scot is one of the very few to have played a key role in the planning and execution of those Games, which he recounts in his new book Delivering London’s Olympic Dream. An early breakthrough came in 1994, more than a decade before the final vote would be taken, when he established through some unofficial canvassing that his fellow IOC members would look kindly on a bid from the capital. “That was the easy bit. Thereafter it’s complicated,” he says. While the creation of the Greater London Authority and the support of the late Dame Tessa Jowell greased the political wheels, Reedie and the BOA had to overcome the hijacking of Wembley’s rebuild by football and bad blood in the athletics world caused by the UK pulling out of hosting the 2005 World Championships. “That wasn’t the best background, I can tell you.” Reedie, bid chief Sir Keith Mills and future chair Lord Coe went on a charm offensive. “The IOC like to give the Games to people they like. So we went out of our way to be liked,” he says. Up against the highly fancied Paris, London sought to emphasise its sporting credentials by taking an athlete along to each presentation.
INTERVIEW
THE GAMES MAKER Ten years on from the Games, Sir Craig Reedie lifts the lid on London 2012. By Frank Dalleres racing to the All England Club in Wimbledon to catch the end of compatriot Murray winning what was then the biggest title of his career.
HARD LEGACY
THIS IS SERIOUS
Star quality of another kind also proved persuasive. “The turning point was the night that the IOC’s evaluation commission came into town and had their dinner at Buckingham Palace with the royals and whatnot,” Reedie says. “That went so well that suddenly people began to think ‘hey, this is serious’. And we pulled it off.” Reedie, Coe and others celebrated long into the night after the vote in Singapore on 6 July 2005 but the jubilation was halted abruptly the very next day by the 7/7 bombings. He emerged from IOC meetings, unaware of the extent of the devastation, into a media scrum. “I fought my way through, went into an IOC office, looked at the television and thought ‘Oh my God’.” Organising London 2012 was, nevertheless, “more routine than bidding for it”, he says. Tony Blair’s Labour government offered an early helping hand by footing the £400m bill for laying power cables at the site of the future Olympic Park.
Reedie presented Jessica Ennis (now Jessica Ennis-Hill) her heptathlon gold medal “You begin to get a warm feeling that you’ve got a decent partnership here if that’s the first thing that happens.” “Of course there were arguments, small ones, but at the end of the day it came together,” adds Reedie, who praises Locog chief Baron Deighton for quickly solving any problems, such as G4S failing to provide its promised number of security staff. “Everybody said it was a disaster. It took Paul Deighton about a weekend to sort it out. The army were brought in; that was a big one.” Although he missed Bolt successfully defending his 100m crown, Reedie has no shortage of highlights from London 2012, such as presenting gold medals to Katherine Grainger and Jess Ennis, and
We took the most awful part of London and we turned it into a magic place
He considers it all a huge success. “We won medal after medal after medal, which made people feel happy. And secondly we filled the stadiums, and that was a complicated ticketing exercise that worked very well [raising £770m], and then had the wonderful knock-on effect because of the ballot system of selling out the Paralympic Games as well.” Reedie insists the “hard legacy” represents value for money, when new facilities, housing and jobs – along with related developments such as Westfield Stratford – are taken into account. “The housing, you could argue about the shape and use of it afterwards.” But, he says: “We took the most awful part of London and we cleaned it up and turned it into a magic place.” London 2012 has not, however, led to the boom in exercise promised by its strapline “Inspire a Generation”. “People have said not enough people took up sport afterwards. The answer is, with respect, our job was to run the Games, not to look after the promotion of sport in the country for time immemorial,” says Reedie. “On balance, I think we did alright.” Nonetheless, some aspects of the Games have been tainted. Team GB won 29 gold medals, behind only the USA and China. It proved the zenith of UK Sport’s controversial “no compromise” strategy, which has since been cast in a different light a host of welfare scandals and ethically dubious practices, most notably in gymnastics and cycling. And painfully for Reedie, who later as president of the World Anti-Doping
Agency dealt with Russia’s systematic cheating, it turned out to be far from “the cleanest Olympics ever”, as some had pledged. “I was furious. But at the end of the day, me being furious doesn’t do away entirely with the good London 2012 did for athletes and for this country.” He concludes: “I can make a case for it in every way – the political unity, the skill, care and hard work of delivering a very complex project. “I can also make a case for its economic impact, all the construction work, the business that came to Britain – all of that made sense. There is a soft benefit which is impossible to put a value on, but it has a value.” London 2012 also re-established Britain as a destination for major sporting events. Since then the UK has hosted the Commonwealth Games, World Athletics Championships, cricket and rugby World Cups, the bulk of a men’s football European Championship and is reaching the crescendo of the women’s version. There has even been talk of bringing the Olympics back in 2036 or 2040, but Reedie is sceptical about the chances of success, at least while the political stability that helped so much in winning and then delivering London 2012 remains absent. “I think there is some UK Sport committee quietly thinking about it, but it’s no more than that. And to the best of my knowledge no one has been anywhere near the IOC. “I would expect to be pushing up the daisies for quite a long time before that happened.” £ ‘Delivering London’s Olympic Dream: A Long Life in Sport - Highlights and Crises’ By Sir Craig Reedie was published by Fonthill Media on 7 July 2022. https://www.fonthill.media/
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TUESDAY 26 JULY 2022
GAMES MAKERS Looking back a decade on from London 2012 PAGE 19
SPORT
SPORT DIGEST
READY TO ROAR Lionesses set to play Sweden tonight in huge Women’s Euro clash
PITCH INVADERS TO BE BANNED FROM CLUBS
£ Pitch invaders in both the Premier League and English Football League will receive a club ban under new measures revealed yesterday to tackle bad fan behaviour. FA chief executive Mark Bullingham said the measures will “send out a clear message that we will not tolerate this type of illegal behaviour”.
EX RUGBY PLAYERS LAUNCH LEGAL ACTION
£ Over 185 rugby players yesterday launched legal action against the sport’s governing bodies in relation to negligence over playing potentially causing brain damage. Law firm Rylands Legal said: "This claim isn't just about financial compensation; it is also about making the game safer and ensuring current and former players get tested.”
CRICKET INQUIRY FINDS 448 CASES OF RACISM
£ An inquiry into Cricket Scotland and their practices surrounding racism and discrimination found 448 cases of institutional racism in the organisation. An anonymous survey showed 62 per cent of those asked had experienced, seen or had reported incidents of racism, inequalities or discrimination. On Sunday the entire Cricket Scotland board resigned.
VOS WINS ON FEMMES TOUR TO LEAD RACE
Sarina Wiegman’s England side will tonight play the biggest game under her tenure as the Lionesses face Sweden in their Women’s Euro 2022 semi-final. “I think it is necessary to be in the now and I do think you always have to learn from your experiences,” the England manager said. “But it’s no use now to talk about [previous semi-final losses] all the time because it’s now. It is now.” The winner will play either Germany or France on Sunday in the final at Wembley.
£ Veteran Dutch cyclist Marianne Vos won a sprint finish on Stage two to take the Tour de France Femmes yellow jersey yesterday. The 35-yearold was beaten by overnight leader Lorena Wiebes in Paris on Sunday but won in Provins to ensure she and her Jumbo-Visma team – who won the men’s event with Jonas Vingegaard – held the yellow jersey going into stage three.
GOLD RUSH? NOT SO MUCH
Britain may have most medals since 2015 but it’s the lowest gold haul in over a decade, writes Matt Hardy
of Ukraine this year. So while stars have cemented their place at the peak of the global athletics scene – notably Jake Wightman with TeamGB’s first gold in the men’s 1,500m since Steve Cram in 1983 – others haven’t quite performed to their peak. Below we take a look at the medals won by Britain:
I
Jake Wightman picked up TeamGB’s only gold with a tactically sublime run in the 1,500m – he stuck on the tail of Olympic champion Jakob Ingebrigsten before kicking twice inside the last 200m to take top spot in a race that had been void of any British male dominance since the era of Sebastian Coe, Steve Cram and Steve Ovett.
F THE Great Britain and Northern Ireland performance at the 2022 World Athletics Championships was turned into a secondary school attendance report, the team would have received a B plus. On one hand, the seven medals the team captured in Oregon, United States were the most by a contingent of athletes since 2015 – when Team GB also took home the same number medals from Beijing. On the other hand, it was the lowest gold medal haul – one – since Osaka 2007 and the lowest position in the medal table – 11th – since the same championships in Japan despite the exclusion of Russia due to their invasion
MEN’S 1,500M
WOMEN’S 800M
Britain’s first silver came on the final night of the championships as Olympic silver medalist Keely Hodgkinson repeated her Japanese feat and came home in second to Athing Mu. Mu is so dominant in the event but the Brit pushed the American close when
BRITAIN AT THE WORLD’S GONE BY:
Eugene 2022: Gold 1–Silver 1–Bronze 5 Total: 7 Medal table position: 11 Doha 2019: G2–S3–B0 Total: 5 Medal table position: 6 London 2017: G2–S3–B1 Total: 6 Medal table position: 6 Beijing 2015: G4–S1–B2 Total: 7 Medal table position: 4 Moscow 2013: G3–S1–B4 Total: 7 Medal table position: 6 Daegu 2011: G3–S3–B2 Total: 8 Medal table position: 5
Mu left the inside line open going into the home straight – there were just mere tenths between Mu and Hodgkinson come the line.
WOMEN’S 1,500M
Britain’s first medal came from one of the athletes expected to place in Eugene when middle-distance stalwart Laura Muir came home for a bronze medal in north west America. She hasn’t faced the smoothest of seasons and being up there with the likes of Faith Kipyegon and Gudaf Tsegay will be of comfort to the Scot given her rocky ride to the championships.
WOMEN’S 200M
On the face of it reigning 200m champion Dina Asher-Smith has gone backwards in earning a bronze in the championships but the Brit has had an injury dogged couple of years – which concluded in the relays after her bronze – and there were doubts over her form going into the meet. That said, she performed at a level higher than most expected and was beaten by two exceptional Jamacians in Shericka
Jackson and Shelly-Ann Fraser-Pryce.
MEN’S 400M
Matthew Hudson-Smith has had a brutal series of months away from the sport, including a suicide attempt, but shone in an event Brits have sometimes struggled with in recent years. His 400m bronze came behind the suburb Michael Norman and Kirani James and should have lit another fire under the Brit.
MEN’S 4X100M
It was a close sprint relay for the men despite the surprise winners being Canada in the latter stages of the championships. Besides anything else, the medal vindicates British relay runners tarnished with last year’s doping scandal involving CJ Ujah.
WOMEN’S 4X400M
The United States looked like winning this event before the half-way stage but TeamGB did well to hang in there and get a bronze medal. The relays finished with a 40 per cent medal achievement, something to work on going forward.