Thursday 12 January 2023

IT’S NOT EASY BEING GREEN

INSURER BRUISED

Divi pulled by Direct Line as weather hits

LOUIS GOSS

SHARES in Direct Line cratered yesterday after the insurer said it expects to scrap its 2022 dividend.

The insurers said it was facing a “challenging and volatile operating environment”.

Shares lost 26 per cent of their value yesterday and the warning dragged other insurers down too, with Aviva down just shy of four per cent.

The Bromley-headquartered firm said a “prolonged period of sub-zero temperatures across the whole of the UK” in December led to a surge in claims related to burst pipes and water tanks.

FIRMS AND GOVERNMENTS KICK CLIMATE CONCERNS ONTO BACK BURNER AMID ECONOMIC STORMS AND COST-OF-LIVING

JACK BARNETT AND LOUIS GOSS

THE GLOBAL cost of living crisis threatens to railroad efforts to combat climate change as firms and governments prioritise their bottom lines.

Soaring energy and food prices are forcing governments and private businesses to turn to cheaper, often dirtier resources to produce goods and services, the World Economic Forum (WEF) warned yesterday ahead of their Davos summit next week.

As a result, “the risks of a slower and more disorderly transition” to net-zero

has “now turned into reality,” the WEF said in its annual global risks report.

Russia’s invasion of Ukraine roiling international oil and gas markets has prompted Europe to inject €50bn (£44bn) into new fossil fuel projects, the report said, to meet energy needs.

Other countries have reignited coal plants to boost energy supplies.

Inflation, higher

interest rates and greater social security spending has stretched Western nations’ public finances, while sky high input costs for businesses risks “investments in greener production methods” being kicked into the long grass, the Geneva-based organisation

Although gas costs have returned to their pre-Russian invasion of Ukraine levels, they are still above their long-term trend.

CRISIS

Global food prices remain on an upward march, prompting the WEF to warn poorer countries will bear the brunt of a cost-of-living crisis that is likely to be a fixture for the next two years.

Central banks’ efforts to tame inflation with aggressive rate hikes has piled pressure on poorer countries’ finances as most of their debt is denominated in wealthier countries’ currencies.

Insurers are likely to be incentivised to avoid dishing out cash to poorer countries to cover damages related to rising temperatures due to their heavy exposure to climate-related natural disasters.

Inflation also saw Direct Line forced to pay out six per cent more on motor claims, as higher prices caused the cost of fulfilling such claims to increase.

Soaring inflation in the cost of car parts and secondhand vehicles has driven up insurers costs and seen premiums surge north.

Falling property prices also hit Direct Line’s balance sheet, causing its property investment portfolio to lose 15 per cent of its value –equivalent to £45m.

The firm said it had returned £1.5bn of capital in the last five years.

Now Home REIT faces possible legal fight with tenant after reneging on rent deal

EXCLUSIVE

TROUBLED social housing investor

Home REIT faces a potential legal battle with its biggest tenant after reneging on a £5.5m rent relief deal it struck due to the dilapidated state of its properties, City A M can

exclusively reveal.

Liverpool-based Big Help Group and its two sister charities, which account for nearly a fifth of Home REIT’s total rental income, withheld £6m in rent from the firm between March and the end of August in protest at the dire state of housing it provided, prompting the two

parties to strike a deal for two years’ relief worth £5.5m from September.

Big Help paid its arrears as part of the deal. However, emails from Home REIT to Big Help seen by City A M , show that the firm is now looking to scrap the original agreement due to the “exceptional circumstances” it finds itself in.

The previously undisclosed deal raises major questions over the stability of Home REIT’s financial position and the consistency of its rental income, after a slew of criticism over its business model and the reliability of its revenues in recent weeks.

Big Help chief Peter Mitchell told

City A M yesterday he was “happy” to go to court.

The revelations also sit uncomfortably next to Home REIT’s insistence it only acquires “newly refurbished” properties.

A spokesman for Home REIT said after “further review” it elected not to “proceed with this proposal”.

CHARLIE CONCHIE

Adapting to a new reality: We’re going digital only on Fridays

WAY BACK in September of 2021, one of our reporters heard a new phrase from a trader they knew. Apparently, those heading back into the office on Tuesdays, Wednesdays and Thursdays had gained a nickname. We slapped it on our front page –and the “twat” entered the City vocabulary. A year and a bit on and that pattern has bedded in. More people are in the office in the middle of the week, and Mondays

are still a little lower than all three. Fridays, meanwhile, are dead –passenger numbers on the transport network are significantly down, data management services tell us that nobody is in the office, and anecdotes and data alike suggest that, for better or worse, Friday has become a day

for the home office. This has costs: the sandwich shops, coffee hotspots and pubs of the City have relied on five-daya-week trade for decades. The City of London Corporation’s worthy Destination City campaign has gone some way to persuading people of the merits of the Square Mile as an entertainment venue FridaySunday, but the morning throng

that used to cross London Bridge is now barely a trickle.

For us at City A.M., those changes meant printing a newspaper that, on Fridays, wasn’t read as often as we’d have liked. And so we’ve decided to adapt, by reining in our print run to Monday to Thursday, and going digital only on Friday. There will be some who miss our paper on Friday –we hope lots –but like any

business, adaptation and innovation will be at the heart of our success.

We are beefing up our Thursday paper with new features and expanded sports and lifestyle sections. And we’re looking forward to joining the Thursday night crowds that spill out of the City’s pubs and bars –rather than slaving away ‘til midnight in the newsroom. One thing is for sure, though: in print or online, we’ll keep sticking up for London and the Square Mile.

WHAT THE

THE GUARDIAN

THE CITY VIEW UAE TO LAUNCH COP28 PRESIDENCY WITH OIL BOSS TIPPED FOR LEADING ROLE

The United Arab Emirates will launch its presidency of global climate talks today, with the head of its national oil company likely to be given the leading role.

FINANCIAL TIMES

BLACKROCK PLANS TO CUT 500 JOBS WORLDWIDE FOLLOWING 2022 SELL-OFF Blackrock plans to cut 500 employees from its global workforce as the world’s biggest asset manager grapples with the fallout from last year’s market sell-off.

THE TIMES

FORMER TRUMP FINANCE BOSS ALLEN WEISSELBERG JAILED FOR TAX FRAUD

The former finance chief of Donald Trump’s sprawling business empire has been sentenced to five months in prison for tax fraud, which prosecutors said had lasted for 13 years.

Cash is king? Budgeting Brits sees return of folding money

CHRISTOPHER DORRELL

CASH usage increased for the first time in 13 years in 2022, according to fresh data from Nationwide, as Brits responded to the cost-of-living crisis by budgeting with physical money.

“For the first time in years we are seeing a natural rise in cash withdrawals as people return to using cash to help avoid getting into debt from the rising cost of living,” Otto Benz, director of payments at Nationwide Building Society, said.

Over 30.2m cash withdrawals were made from Nationwide ATMs last year – a 19 per cent increase on 2021.

Over recent years, the number of cash withdrawals has been steadily de-

clining. It fell most sharply at the start of the pandemic when the number of withdrawals at Nationwide ATMs dropped more than 40 per cent in a year.

The average amount of cash withdrawn from Nationwide ATMs was £105 last year, down two per cent on the previous year but still up 25 per cent on 2019, the bank said.

“Far from the end for cash, it shows that the future of money management is constantly evolving,” Benz said.

In June last year, Nationwide committed to keeping all of its 625 branches open until 2024 as a result of the cost-of-living crisis.

This bucks the trend among UK banks. HSBC will shut 114 branches in

2023, on top of the 69 it closed in 2022, while Natwest, Lloyds and Barclays are set to close 43, 14 and 11 branches respectively this year. Both Halifax and Santander will close five by the end of 2023.

Meanwhile there was another warning on the potential for a significant shock to household finances as a result of increased interest rates.

More than three quarters of a million households may risk a mortgage shortfall over the next two years, or are already falling behind their payments.

The calculations by the Financial Conduct Authority suggested the number at risk of falling into difficulty had increased by 570,000 since they last ran the numbers in September.

DEFENCE OF THE REALM Prime Minister Rishi Sunak meets with the Prime Minister of Japan at the Tower of London where they signed a UK-Japan defence agreement

Sainsbury’s to cash in on Brits’ Christmas spirit

JACK MENDEL

SAINSBURY’S cashed in on Christmas shopping with retail sales up more than five per cent, as the supermarket giant expects its profit to be at the “upper end” of guidance.

The major retailer now expects to be making close to £700m in pre-tax profit this March, despite the cost of living crisis weighing down consumer demand.

Sainsbury’s reported a near six-percent increase in like-for-like sales in the three months to January, with grocery sales being a major driver.

In the third quarter, retail sales were up more than five per cent, while grocery increased by 5.6 per cent, which is 12.5 per cent up on pre-pandemic levels.

Over the Christmas period specifically, the supermarket also saw groceries sales increase by 7.1 per cent, with profits expected to be at the “upper end of guidance range” between £630m-690m.

Sainsbury’s did however lose progress in some divisions, with merchandise and Argos down signif icantly.

Looking ahead to the fourth quarter of

the year, to March, and the rest of 2023, the supermarket said it had invested in innovation, service and product availability, especially over Christmas.

It will also “benefit from finance costs around £15m” which is lower than expected, and partially offset by “the cost of a significant colleague pay increase ahead of the year-end annual pay review,” the supermarket said.

Saying it remained “cautious on the consumer backdrop”, Sainsbury’s said it now expects “underlying profit before tax for the year to March 2023 to be towards the upper end of the guidance range of £630m to £690m.”

With millions of Brits struggling to make ends meet, Simon Roberts, chief executive of J Sainsbury, said the supermarket giant is “working together with our suppliers to battle cost inflation and we’re keeping prices low again this year with our biggest value campaign yet in January, price matching Aldi on around 300 of our most popular products.”

“Customers shopped early, buying Christmas treats and fizz more than once and looked for deals”, said Roberts.

Deloitte sells off its UK pensions advisory division to Isio Group

JOEL MEADOWS

DELOITTE yesterday revealed it had signed an agreement to sell its UK pensions advisory arm to Isio, subject to FCA regulatory approval.

The acquisition, which will bring Deloitte Total Reward and Benefits’s 200-strong workforce to Isio’s existing team, will create one of the largest pensions

advisory businesses in the UK once completed.

The terms of the deal were not disclosed, but it is expected to complete in the spring.

The enlarged Isio will have 1,000 employees working across 10 locations in the UK, including a new site in Belfast, and will have annual revenues of around £140m, Isio said.

“This acquisition builds on the

momentum we have as we build scale and challenge the status quo by developing the best pensions, benefits and wealth advisory offering in the market,” said Andrew Coles, chief executive of Isio.

Meanwhile, Mark McClintock, head of Deloitte’s UK pensions business, said it was a “hugely exciting proposition for our people and the marketplace”.

Lord Mayor to tell Whitehall: City

isn’t

CITY A.M. REPORTERS

THE CITY’s Lord Mayor will tonight warn that London is being cast as a “villain in our national story” in a speech at a flagship Mansion House dinner.

Nicholas Lyons will say the capital is not “sucking the life and wealth out of regions like an evil fairy godmother on a quest for eternal beauty,” and make a pitch for the capital to be seen as a driver of economic growth rather than a hindrance to so-called ‘levelling up.’

Speaking at the same event, London Mayor Sadiq Khan will call for an end to a “vow of silence” on the impact of Brexit on business and the City of London, arguing for a more collaborative deal with the European Union which could include membership of the customs union.

“No one wants to see a return to the division and deadlock [but an] unnecessarily hard-line version of Brexit is having a detrimental effect on our capital and country,” he will say.

an ‘evil fairy godmother’

NETWORK Rail’s chief negotiator Tim Shoveller yesterday told MPs he was optimistic negotiations were progressing, but said the RMT were not helping. Despite union leaders warning against it, 36 per cent of RMT members voted in favour of the latest pay deal.

TRAIN IN VAIN? Rail boss optimistic about pay deal but blames RMT for stalled talks

Barratt warns over profits as mortgages rise

JACK BARNETT

BARRATT Developments said the outlook for 2023 was ‘uncertain’ as rising mortgage costs force residential property sales down.

The FTSE 100-listed house builder yesterday said demand for its homes in 2023 looked “uncertain” due to prospective home buyers shunning big ticket purchases amid a cost-of-living and mortgage affordability squeeze.

Mortgage costs have been climbing following the Bank of England’s series of interest rate hikes, a move that analysts believe will send house prices sliding in 2023. The warning provides further evidence the UK property market is on a downward trajectory in 2023.

Latest house price indexes from Nationwide, Halifax and Zoopla have all revealed property prices are falling.

Some experts reckon they could tumble around a fifth this year.

“The outlook for the second half of [full year 2023] is uncertain with homebuyer confidence and the availability and competitive pricing of mortgages critical to the health of the UK housing market in the coming months,” Barratt said in earnings covering the six months to last December.

It will publish its interim results on 8 February.

A 40-year high inflation rate has forced the Bank of England to raise interest rates nine times in a row to 3.5 per cent, a financial crisis high. The ONS reckons nearly 800,000 Brits’ mortgage bills will double this year.

Those higher borrowing costs have also trimmed Barratt’s purchase pipeline. It said forward sales of its homes collapsed nearly a third to £2.54bn over the last year.

Fellow housebuilder Persimmon updates markets today and is expected to suffer a similar fate to Barratt.

London’s FTSE 100 shrugs off January blues

JACK BARNETT

LONDON’s FTSE 100 powered to its highest level since 2018 yesterday as the flagship index continued its strong start to the new year.

The flagship index, home to the UK’s largest companies, reached the milestone during afternoon exchanges in the City after rising nearly one per cent.

It shed some of those gains to eventually finish up 0.40 per cent at 7,724.99 points.

The FTSE 100 has raced ahead in the first two weeks of 2023, climbing nearly three per cent.

Last year, measured in local currencies, it was the only index to trouser a gain.

While the panEuropean Stoxx 600 has climbed faster than the FTSE 100 so far this year, it is down over the last 12 months.

Wall Street’s S&P 500 index is also down more than 16 per cent over the last year, but up in 2023.

JD Sports says it is on track for near £1bn profits

LOUIS GOSS

JD SPORTS expects to post pre-tax profits of more than £1bn for the year ending 3 February 2023 after it recorded a Christmas sales surge.

The sportswear retailer said a strong performance in the second half of 2022, driven by a surge in sales over Christmas, will see it achieve its financial goals.

The Manchester firm said it expects to post pre-tax profits for the year ending 28 January 2023 to hit the top end of market estimates, which range from £933m to £985m, JD said.

However, trading in January as part of the “postChristmas sale period” is set to drive the company’s pre-tax profits to heights of more than £1bn for the year ending 3 February, the firm said.

The sports retailer said the strong financial results show the “ongoing resilience” of its “proposition” and the “enduring strength” of its “multi-channel consumer engagement”.

JD pointed to its “attention-grabbing

theatre in stores, advanced digital technologies, breadth in the range of brands and availability of key styles” as key to its future growth.

“Management firmly believe that the most significant opportunities lie in the continued international multi-channel development of the Group’s sports fashion businesses,” JD said.

The retailer’s final results for the past financial year will be published following completion of the audit process, which is being carried out by KPMG.

JD Sports is poised to post pre-tax profits just shy of £1bn this year

JD chief executive Regis Schultz said: “The commitment of our teams through the peak trading period has been phenomenal with many of our stores and websites delivering record sales and JD’s market-leading retail experience capturing the imagination of customers globally.” never before.”

Shares jumped on the news, closing up seven per cent.

BAIN GETS ENTERPRISING WITH NEW ACQUISITION

Bain & Co has acquired London consultancy Enterprise Blueprints as it pushes forwards with efforts to bolster its tech advice offerings, City A.M. can exclusively reveal.

The Boston consultancy’s deal for an undisclosed sum comes as the world’s top professional firms have sought to profit on the global push to digitalise the economy by selling advice to businesses on technological transformation strategies.

The global pandemic accelerated the push to digitalise the global economy in driving uptake of cloud computing.

Enterprise Blueprints offers an array of technology architecture services, covering areas including cybersecurity and cloud computing.

AI STARTUP IS BOUGHT OUT BY BIONTECH

London-based AI startup Instadeep has been bought out by biotechnology giant BioNTech in a half-a-billion pound deal.

Instadeep focuses on machine learning and artificial intelligence, and has raised nearly £100m across four seed rounds.

The deal will allow BioNTech to use Instadeep’s machine learning to “improve its drug discovery process, including developing personalised treatments tailored to a patient’s cancer,” according to reports by the Financial Times.

The German vaccine maker will be paying £362m upfront as a mix of cash and an undisclosed amount of BioNTech shares, with the remaining £200m dependent on the company’s future performance and valuation.

FIRM TAKEOVER BY CHINA RISKS ‘NATIONAL SECURITY’

The chair of an influential Westminster committee has urged business secretary

Grant Shapps to review the takeover of fledgling semiconductor firm Flusso –amid growing concerns of China’s influence over strategic assets.

The company was acquired by a Shanghai subsidiary with ties to the Chinese state last year.

Tory MP Alicia Kearns, who heads both the Foreign Affairs Select Committee and the China Research Group, has called on Shapps to investigate the deal under the National Security and Investment Act. She has argued on Twitter that the £28m acquisition “represents a significant economic and national security concern”.

LVMH boss promotes daughter

Delphine Arnault to top job at Dior

JESS JONES

LVMH chairman and boss Bernard Arnault has appointed his daughter Delphine Arnault as CEO of Christian Dior in a management shake-up.

She succeeds Pietro Beccari, 55, who has headed Dior for nearly five years. He is set to take over as CEO of Louis Vuitton from Michael Burke, who will remain at LVMH.

Beccari will be a tough act to follow as he has trebled annual sales in just four years, boosting them to £5.9bn, according to estimates from Citi. Arnault is married to French telecoms tycoon Xavier Niel, the activist investor who has caused headaches at telecoms giant Vodafone recently.

Shares jumped two per cent.

Delphine is one of five Arnault children in senior LVMH roles

Delphine has been on the board at French luxury goods giant LVMH since 2003

Here comes the sun: Octopus boosts offering with solar panels

NICHOLAS EARL

OCTOPUS Energy is wading into the solar installation market, bolstering its catalogue of green energy solutions for the home with photovoltaic panels.

The company’s engineering arm, Octopus Energy Services, will install solar panels, alongside electric vehicle chargers, air-source heat

pumps and smart meters which it currently offers to customers.

The company is aiming to quickly ramp up the rollout, targeting 5,000 installations in 2023.

The new service is launching across the Midlands and the south, with a view to expand nationwide within the first year.

Octopus customers will also be able to store the green energy they produce

and sell it back to the grid.

It predicts a combination of solar panels and batteries could slash 90 per cent of household bills compared to customers on the conventional standard variable tariff.

John Szymik, chief exec of Octopus Energy Services, said the company was “champing at the bit” to install solar panels, which he described as “the last piece of the puzzle”.

Think tanks warn of China’s role in UK nuclear sector

NICHOLAS EARL

CHINA’s continued foothold in the UK’s nuclear energy sector poses headaches for the UK government as it looks to attract overseas investment to meet its ambitious green energy goals, several think tanks have warned.

Sophia Gaston, head of foreign policy and UK resilience at Policy Exchange, told City A.M. the so-called golden era of Chinese investment in critical infrastructure is “well and truly over”.

This was reflected, she said, in the government’s decision late last year to buy out state-backed China General Nuclear Power Group’s (CGN) 20 per cent stake in Sizewell C.

She has now called on the government to remove Chinese investments from both Hinkley Point C, where CGN still has a one-third stake, and for a potential new power plant at the defunct Bradwell B site, which is two-thirds owned by CGN.

“Securing alternative investors for the Hinkley and Bradwell nuclear sites must be seen as critical priorities for the government and a key opportunity for British diplomacy,” Gaston said.

Gaston said: “While it is no small feat attracting alternative investors into the UK’s urgently needed nuclear sites, the diversification of funders will be essential for the nation’s long term resilience.”

“Even beyond the geopolitical and security considerations, the prospect of Chinese state companies being subject to future Western sanctions renders their investments in long-term projects inherently unstable,” she added.

However, Antony Froggatt, deputy director and senior research fellow at Chatham House, offered a more cautious perspective.

He did not believe domestic funding alone would be sufficient for the country to meet its net zero goals over the next three decades.

The government is currently targeting a ramp up of nuclear energy generation from 7GW to 24GW in its supply security strategy as part of its climate and energy independence goals.

Dr Peter Bird, managing director at consultancy firm Berkeley Research Group, also believed managing overseas investment was a balancing act CGN and the government were approached for comment by City A.M.

China’s control of key metals puts green transition at risk, IEA warns

NICHOLAS EARL

CHINA’s control of many of the key metals that are crucial for making renewable technologies could risk the world’s transition to clean tech, a leading climate body has warned.

The International Energy Agency (IEA) has today called on the world to develop new international partnerships to build new supply chains to ensure countries can secure key minerals and materials.

It said it feared current supply chains

for clean energy were embedded with issues such as “high geographic concentrations” of mining, processing and technology manufacturing. In particular, it flagged that China has a dominant position in these markets.

“As we have seen with Europe’s reliance on Russian gas, when you depend too much on one company, one country or one trade route – you risk paying a heavy price if there is disruption,” IEA executive director Fatih Birol said.

The IEA warned that the mining of key materials was over-concentrated in some countries

DARKENING PROSPECTS British technology darling Darktrace cuts revenue predictions

British cybersecurity company Darktrace cut its full-year revenue forecast on Wednesday after prospective customers turned more reluctant to run product trials due to the current environment.

Shares slipped some 13 per cent despite the firm confirming recurring revenue was set to shoot up by around a third in the coming year.

London keeps its top spot for Euro tech investment

CHARLIE CONCHIE

LONDON sailed past European rivals to retain its crown as the top destination for tech investment last year as nearly $20bn was pumped into the capital’s start-ups, new data has revealed.

Tech firms in London attracted $19.8bn of venture capital in 2022, some $10bn more than Paris and over $14bn more than tech firms in Berlin, data from Dealroom and London & Partners showed.

The chasm between the cities came despite London investment tumbling from $27.5bn raised in 2021, amid a wider global slump in investment brought on by sharp interest rate hikes and the shock of Russia's invasion of Ukraine.

Global VC funding experienced a sharp 33 per cent fall from the record levels seen in 2021, when investors pumped $723bn into tech business in a post-pandemic fundraising frenzy.

Laura Citron, boss of London & Partners said the City's tech sector was “looking resilient, despite the challenging context”.

“Innovation in London continues to be grounded in the city's deep historic strengths – so we see sectors like Fintech, EdTech and gaming thrive,” shesaid.

“This data shows that London continues to be Europe's tech capital and one of the best places in the world to scale a tech business,” she added.

The surge in funding was led by a $1bn series D round for London payments firm Checkout.com as well as bumper rounds for GoCardless and Paddle, who raised $312m and $200m, respectively.

Dealroom analysts said the venture landscape across Europe looked positive despite the tricky economic conditions, as VC investors sat on hefty piles of dry powder raised prior to the downturn.

Check Warner, a partner at Ada Ventures, said: “Even in a challenging macroeconomic climate London’s position as a leading hub globally for tech investment remains unchallenged.

“Not only that, but there are strong indicators that London will remain one of the leading cities in the world for technology for decades to come, with a record $6.6bn of VC raised by Londonbased VCs in 2022,” she added.

The predictions come despite a marked downturn in VC activity in the final quarter of the year as investors opted to sit out the turbulence in the market.

London market resilient against an imminent national recession

JACK BARNETT

LONDON appears to be withstanding the UK’s wider economic decline, with businesses hiring at a record pace and expecting their finances to fatten up over the coming year, a new survey out yesterday revealed.

The capital’s jobs market is running at red-hot levels, according to the London Chamber of Commerce and Industry’s (LCCI) latest Capital 500 quarterly economic survey.

Nearly one in four companies tried to take on more staff over the three months to December, the highest proportion ever recorded by the LCCI. Some 17 per cent expect to step up hiring in the coming months.

Experts suspect the UK has already entered a year-long recession.

“Time and again, London businesses demonstrate their resilience when faced with adversity and they will be crucial to driving an economic recovery,” Richard Burge, chief exec of the LCCI, said.

PageGroup cuts its profit forecast during cautious hiring climate

HENRY SAKER-CLARK

RECRUITER PageGroup has lowered its profit forecast as rocketing inflation and the prospect of a lengthy recession have seen firms become cautious about hiring plans.

The company told investors it witnessed a slowdown towards the end of 2022.

It said it is therefore due to post an operating profit of £195 million for last year, downgrading its previous projection of £204 million.

PageGroup said the weakness at the end of the period meant gross profit per fee, its preferred measure, slipped by 12% in the fourth quarter of 2022 compared with the same period a year earlier.

Nicholas Kirk, chief executive

officer of the firm, said: “As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision-making.”

Total revenues grew by 22.6% to £1.07 billion in 2022 compared with the previous year, with 7.9% growth in final quarter.

Mirror and Express publisher Reach to cut jobs in bid to rescue revenue

HENRY SAKER-CLARK

DAILY Mirror and Express publisher

Reach is to axe 200 jobs as part of major cost-cutting following a slump in advertising revenue.

Shares in Reach plummeted by a quarter yesterday after a downbeat update from bosses.

The company told staff it would be cutting further roles across all parts of the business as it sought to secure £30m in cost savings this year.

In an internal email, it said: “Under

the proposals we’re announcing today we anticipate that, regrettably, around 200 roles of current employees will be made redundant.”

Reach said it would slash costs through the “simplification of central support functions, supply chain efficiencies in print and distribution, and removal of editorial duplication”.

The publisher saw hundreds of journalists take part in strike action in August last year during a dispute over pay. Further action was halted

Boohoo readies major job cuts at its London office

JESS JONES

ONLINE fast-fashion retailer Boohoo is preparing to slash over 100 jobs in its London Soho office as it continues to integrate a recent spate of big brand acquisitions.

The majority of roles at risk of being cut are believed to be among Boohoo’s e-commerce, buying and design teams, although the exact number of redundancies is still under consultation.

The retail giant acquired Debenhams for £55m in January 2021. A month later it bought Burton, Dorothy Perkins and Wallis from Sir Philip Green’s Arcadia Group for £25.2m.

Boohoo denied that Arcadia brands Burton, Dorothy Perkins and Wallis were being merged under the Debenhams umbrella, along with Oasis, Karen Millen and Coast.

A spokesperson for the company said the “difficult” decision was taken “to ensure long-term, sustainable growth of our brands”.

They added: “As a British retailer, we are proud to have secured the future of

some of our industry’s most recognised brands, strategically accelerating our ambition to be a leader, not just in fashion e-commerce, but in new categories including beauty, sport and homeware.”

It is the latest in a string of bad news delivered by pandemic-era darlings of online fast fashion.

Asos bought what was left of the tattered Topshop brand in 2021, but has since spooked markets with a host of profit warnings.

after workers accepted an improved pay deal.

It came as the newspaper group said advertising revenues were “lower than expected” over the last three months of 2022 as clients pulled back their spending.

Reach added that continued uncertainty in the economy has weighed further on “market demand” for advertising and campaigns.

Shares closed down 25.96 per cent last night following the update.

NO TERMINAL DECLINE London’s Heathrow Airport saw a booming December despite border force strikes throughout

After a difficult fourth quarter, Reach group have been forced to make staff cuts HEATHROW Airport’s passenger numbers skyrocketed last month despite challenges posed by border force strikes. The west London hub said 5.9m travellers passed through its gates during the festive month, up 90 per cent on 2021 levels.

Warnings of summer of discontent 2.0 as rail and airline operators forecast further staff shortages

ILARIA GRASSO MACOLA

All are struggling with the return of high street retail, which many analysts believed would die a death after the pandemic led to a widespread shift to e-commerce.

However many shoppers have returned to brick-and-mortar stores.

Asos will provide an update to markets this morning which will offer an insight into the run-up to Christmas, as it seeks to turn around a 75 per cent share price fall since last January.

SUMMER 2023 could spell additional trouble for the UK travel industry, with over half of rail and airline operators worrying about future staffing shortages – and almost 40 per cent blaming Brexit.

Data published yesterday by software company SAP shows that 55 per cent of industry decision makers believe staffing challenges will impact customers’ travel plans this year, with 34 per cent saying issues will peak in the summer months.

It comes after the UK aviation industry was plagued by severe delays over the summer due to a boom in travel demand combined with staff shortages.

Airlines and airport executives blamed each other for the chaos, with each side arguing the other didn’t hire enough staff to cater to the post-pandemic surge of air travel.

Yesterday’s figures confirmed the trend, with 40 per cent of senior executives agreeing that the issues were caused by “an inability to forecast supply and demand”.

Ryanair boss Michael O’Leary called on the government in July to implement post-Brexit immigration rules with “more common sense”.

The chief executive said it was easier for the low-cost carriers to recruit extra-EU nationals to work in Britain than to get visas for “Portuguese or Italian youngsters”.

To address labour shortfalls, around 35 per cent of respondents believe they will have to sacrifice their environmental, social and governance targets in favour of staffing.

Standard Chartered mulls sale of aviation arm in bid to up returns

CHRIS DORRELL

STANDARD Chartered is considering selling its £3bn aviation finance business, the bank said yesterday.

The company’s aviation business, based in Ireland, accounts for around two per cent of its total income.

The business owns and manages over 120 aircraft, leasing them to over

30 airlines around the world. According to Airfinance Journal’s 2022 rankings, its fleet was worth $3.7bn (£3.0bn).

Talking about the sale of the business, Simon Cooper, chief executive officer of corporate, commercial and institutional banking, said: “We believe that a new owner can drive the next phase of

growth whilst we continue to focus on our commitment to improve shareholder returns.”

CEO Bill Winters said the bank was aiming to “simplify” its business and “sharpen [its] focus”.

The news comes just days after First Abu Dhabi Bank pulled out of a potential takeover bid for Standard Chartered.

Standard Chartered is mulling over selling its successful aviation finance business

PA

Starmer lays into Sunak over blue light walkouts

CITY A.M REPORTERS

A WESTMINSTER row over whether or not Rishi Sunak had used private healthcare came to a head in an unedifying Prime Minister’s Questions session, with the former City high-flyer admitting he had used non-NHS services in the past.

Sunak has been under fire in recent days for a perceived refusal to answer the question amid a host of staff walkouts over pay and conditions.

Ambulance staff were on strike yesterday, with NHS leaders suggesting the lack of workers would inevitably impact care across the country.

Rising Labour star Wes Streeting later laid into the government for their treatment of the health service.

“Patients waiting entire days for an ambulance to arrive and then days on end in A&E before they are admitted. 50,000 needless, preventable deaths last year blamed by experts on unacceptably long waiting times. Hundreds of avoidable deaths every week this winter be-

WITH ambulance staff on strike, Rishi Sunak didn’t take to the dispatch box yesterday with a sunny backdrop. His own party were hardly helping: health secretary Steve Barclay on Monday announced the NHS would be fixed with “discharge frontrunners”, Grant Shapps was somehow, even after appearing in a picture with Boris Johnson photoshopped out, sounding quite reasonable on Tuesday, and only hours before Sunak stood up, Andrew Bridgen decided to compare the Covid-19 vaccine program to the Holocaust. Clearly the infamously disgruntled MP misunderstood the “discharge frontrunner” policy and thought it meant a race to be thrown out of the party.

But Sunak finally but deftly dealt with the row over whether he used a private GP (he has in the past) and actually managed to crack a decent joke.

The minimum service levels laws, billed by Labour anti-strike legislation, were published yesterday and, even up against Starmer’s best efforts, only sounded more sensible the more Sunak spoke.

The Labour leader accused Sunak of “choosing to prolong the misery” of strikes by baiting them with the new laws. But it would take a hardened socialist to disagree with rules which France –France! –also has on their statute books.

Against an opposition leader whose only

cause emergency care has collapsed… and the Prime Minister refuses to describe this as a crisis,” he said.

Polling continues to suggest the Conservatives are trailing Labour in voting intention across the country, though the popularity gap between Rishi Sunak and opposition leader Keir Starmer is notably smaller.

Meanwhile a Labour bid to withdraw charitable status from private schools fell flat yesterday afternoon.

The opposition brought a vote which would have required the government to set up a committee of MPs who would consider reforming the tax benefits of independent schools.

The Commons voted largely along party lines, defeating the motion by 303 to 197, a majority of 106.

Education secretary Gillian Keegan said the Labour proposal smacked of the “politics of envy” and described the policy as a “weakly veiled, politically motivated, economically incoherent policy that will not help.”

Prime Minister to meet Macron for ‘Entente Cordiale’ summit in Paris

JAMES SILVER

RISHI Sunak will visit French president Emmanuel Macron for talks on the cross-channel relationship in March, it was announced yesterday.

It is the first meeting of minds between Downing Street and the Elysee since 2018, though Macron and a host of British leaders have

met at the sidelines of wider summits since then.

“It will be the first meeting of this kind since 2018 and an opportunity to deepen cooperation between the UK and France in a huge range of areas including security, climate and energy, the economy, migration and shared foreign policy

goals,” a Downing Street spokesperson said yesterday.

Sunak is expected to raise the issue of small boats but last night business figures were hoping he may secure deals on research collaboration and trade processes.

defence was “well, under Tony Blair things were pretty good”, Sunak looked like he might just stand a chance at an election.

“It is terrifying to be told you might have cancer, that’s why the last Labour government brought in a guarantee you’d be seen by a specialist within two weeks,” Starmer crowed after reminding us, yet again, that yes, he clapped for the nurses.

In response, the Prime Minister almost made it look like he was pro-unions, by saying we’re not the antipodeans.

“In Australia, Canada and the US, they banned strikes on blue light services,” Sunak bellowed, his face scrunching up as he addressed someone who might not have done maths up until the age of 18. “We’re not doing that, all we’re saying is in these emergency services, people should be able to rely on a basic level of lifesaving care.”

Thankfully, the row over strikes and unions only made it to the 10 minute mark, with newly-minted SNP leader Stephen Flynn confusing the brief and instead talking about The Union of the four nations.

JABBED MP loses whip after anti-vax tweets

LONG-TIME MP Andrew Bridgen lost the Tory whip after he repeated an antivax campaigner’s message which compared the Covid-19 vaccine rollout to the Holocaust. Party chiefs said the talkative MP had crossed a line with his comments.

Season

Macron will host the meeting in the spring

SKETCH

Sascha O’Sullivan

Buckle up: Wall Street braces for recession

CHRIS DORRELL

US EARNINGS season kicks off later this week with a string of results from some of the country’s largest banks.

JP Morgan, Citi Group, Wells Fargo and Bank of America will all release results on Friday in an interesting environment – to say the least.

While higher interest rates have led to record levels of net interest margin, banks are expected to have to increase their loss provisions as the economy enters recession.

It is still likely that the banks will deliver strong results, with the tailwind from higher interest rates blowing stronger than the headwind stemming from loss provisions. How long that will remain the case into 2023 is the big question.

Bank of America, Citigroup, Wells Fargo and JP Morgan all recorded increased net interest margins in the third quarter of 2022, but with interest rates expected to peak and possibly fall in 2023, these margins will likely decrease over the year.

Yet even with 2022’s higher interest rates, earnings, though they remain very

strong, have fallen from last year as the banks were forced to increase their loan loss provisions in anticipation of more debtors being unable to repay loans.

AJ Bell investment director Russ Mould pointed out that changing loan-loss provision “largely explains the year-onyear drop in earnings” from 2021 to 2022.

“It’s just a matter of how big and how cautious the banks choose to be on their loan books,” Mould said.

Another area of interest will be how investment banking revenue holds up after a poor year in 2022 as mergers

and acquisitions dried up.

JP Morgan, the largest of the US banks to announce results on Friday, is expected to report net income of $7.9bn –a 24 per cent fall from the $10.4bn it reported last year. Analysts at Barclays expect JP Morgan results to benefit from strong net interest income, though they noted “higher expenses, a loan loss reserve build and a lack of repurchase activity” would restrain further improvement. Expect those trends to be repeated across the other Wall Street giants when they report on Friday.

Credit Suisse bonuses at risk of being halved

CHRIS DORRELL

CREDIT Suisse is considering cutting its bonus pool by 50 per cent as the embattled investment bank seeks to cut costs, Bloomberg reported.

The Swiss asset manager faced a challenging 2022 when its share price sunk 67 per cent.

In the nine months to September 2022, Credit Suisse swung to a pretax loss of CHF1.94bn (£1.73bn), compared to a profit of CHF1.06bn (£946.4m) profit in the same period the previous year.

Credit Suisse also announced a major restructuring plan last October amid rumours it was in danger of collapsing.

The firm sought a cash injection of £3.46bn from investors via a share sale backed by the Saudi National Bank and warned it would need to cut 9,000 jobs by 2025.

Major banks face plummeting income from IPOs and M&As, forcing them to reconsider bonus plans.

Goldman Sachs was reported to be considering a 40 per cent cut to the size of its bonus pool while Wall Street giants JP Morgan, Citi and Bank of America are also reported to be looking at cutting their bonus pools by 30 per cent.

Credit Suisse declined to comment.

knows if I’ll use an Apple phone in 10 years! Another key factor of the attractiveness of sports assets is that revenue streams are extremely forecastable, which investors love. These assets tend to have multiple-year broadcasts and sponsorship deals alongside some enjoying a monopolistic position within their local market.

WHERE DOES OAKWELL SIT WITHIN SPORT AND FINANCE?

Oakwell is the only UK-based sports-dedicated corporate finance and strategic consulting advisory firm out there. We advise federations, investors, leagues, clubs, right holders, agencies, and sports tech companies on anything from financing options and valuations to fundraising and commercial strategy.

We're probably best known for our work with CVC, where we acted as their exclusive global advisor on their £1 billion investment into the rugby ecosystem. But we've done many more deals since then.

WHY ARE INVESTORS LOOKING AT SPORTS ASSETS RIGHT NOW?

I think investment into clubs and sectors such as media, gambling, and apparel has always been there. What I think is new and what you're getting more of now is sports-focused private equity and investment into leagues and federations.

You've got the likes of Elysian Park, Bruin Capital, and Dutch Sports Tech Fund, which are all solely sports-focused. You may have seen recently that Will Ventures raised $150 million purely for sports investments. This, as well as investment into leagues and federations themselves, are all a new and growing phenomena.

CVC has obviously invested in a multiple of Rugby leagues as well as La Liga and Ligue 1,

INVESTMENT GOALS: TEAMING UP WITH SPORT

purchase

a

probably more relevant now than ever, sadly.

Sports fans, for example, are incredibly loyal.

You know, I'll be a Spurs fan forever, but who

I think a driver of the flood of US capital to Europe is the under-commercialization of European sports properties. What I mean by this is the teams in America are better at commercializing themselves. The sports have four quarters of play, more ad breaks, and additional categories of branding and sponsorship. For many US investors, particularly looking at monetizing the fan base, there is a huge opportunity over in Europe. And the weak euro obviously helps, too.

And the final point, which is particularly relevant to some of the big football clubs that we've seen going on sale recently, is the scarcity and prestige associated with owning a premium sports asset. I think this is still a huge driver for high-net-worth individuals. As you know, there are a lot of technology deals out there, but you only see the Chelsea’s and the Manchester United’s go on sale every 10

To read the full interview, please scan the QR code.

Oakwell is a dedicated corporate finance and strategic consultancy boutique that advises sports rights holders and investors on commercial strategy, financing options, and valuation. Oakwell partners with leading sports rights holders, investors, and technology companies to deliver industry-leading advice and has pioneered the influx of institutional capital into the sports sector.

PARTNER CONTENT

Alex Coral, VP, Oakwell Sports Advisory, shares his insights on why sport and its related assets remain a popular investment, even during a downturn.

a majority stake in The Hundred and then you have Silverlake investing in New Zealand Rugby themselves. This is all

committed and loyal fan base, long-term contracted revenues (typical cycles are four years), and growing international

THE SQUARE MILE AND ME

WHAT’S YOUR FIRST MEMORY OF THE SQUARE MILE?

As a young Scotsman fresh to London, I thought the City was all bowler hats before a university chum invited me for lunch at the Jampot in Big-Bang 1985. We didn’t eat – just slurped beers! I was staggered by the scene: yuppy blokes knocking back pints by the bucketful and girls with big hair, big shoulder pads drinking wine by the bottle. A few weeks later I was part of it, having sort of fallen into the City by dint of being a terrible trainee accountant.

FIRST JOB IN THE CITY?

Morgan Stanley, where I was in the middle office based in the Commercial Union Building. I was enormously lucky to get in just as the Eurobond market was taking off – there were no limits on what they let us do. I’d always fancied being a journalist so my early career switched between journalism and banking. I joined Euromoney, had great fun but the pay was lousy. I went back into bonds before a spell at Bloomberg, before yet more bonds! I still mix my day job in finance, running Alternatives at Shard Capital, with writing about markets in my daily commentary, Blain’s Morning Porridge.

WHEN DID YOU THINK THE CITY WAS THE PLACE FOR YOU?

Best thing I ever did was joining Bear Stearns in 1992. Great people, great ethos and great culture. We were the underdogs who had to do more, work harder and deliver better outcomes than the bigger, more established banks. We also understood “information was only valuable if you can withhold it”, so we learnt to cooperate, monetise what we knew, and all worked together rather well. I learnt that success was something you could achieve by being imaginative, inventive, innovative and that a salesman’s job started when the client said no. My biggest mistake was joining HSBC – lovely people and a great bank, but a strict internal bureaucracy and method. To thrive you had to fit – I didn’t. I had great success growing their FIG bond business, but agreed I should depart. I learnt I could never work in a hierarchical firm again.

MOST MEMORABLE LUNCH?

in terms of laughs, it’s probably one I’m still trying to remember the details of… but it would probably have been in Sweetings with the legendary Padraig Fallon of Euromoney back in the 1980s. I still go there today!

Now, I tend to think of the City as less of a place, and more of a mindset. My most inspiring “City Lunch” was when I was taking Ace Greenberg, the legendary CEO of Bear Stearns, round the Washington IMF meetings. A 15 min break had been scheduled, but I was like a headless chicken checking next meetings. Ace told me to stop, sit down, take a breather, and demanded we shared his lunch together. He gave me some great advice on the business, and told great stories. I keep a copy of his “Memos from the Chairman” on my desk.

FAVOURITE PUB?

The Old Doctor Butler’s Head was my personal favourite. Today I like Planet of the Grapes for a quiet contemplation on what’s next. For business, nothing beats getting a client “relaxed” with a Martini at Dukes in St James before closing the deal.

WHAT’S ONE THING YOU LOVE ABOUT THE CITY OF LONDON...

Today “The City” is a mindset rather than a place. Deals work because of the experience that goes into them. I know I can talk with top-class investment and market professionals around the planet, and know they are thinking the same way I am. My clients may be European, American or Asian, but we’re doing business the City Way. It makes global finance easy.

... AND ONE THING YOU’D CHANGE

I’d probably require all compliance, risk management, diversity and HR officers have to spend at least 5 years being successful bankers, traders or

QUICKFIRE ROUND

dig into the memory bank of the City’s great and good: this week, Shard Capital’s Bill Blain tells us about Bear Stearns, the Jampot and an unlikely hero in the Debt Management Office

fund managers before they become management! The value of experience should not be dismissed – but being as old as I am, everyone would expect me to say that.

WHERE’S HOME DURING THE WEEK?

We live in Hamble-le-Rice, on the south coast. It should be an easy train trip, but never is. I am in town at least a couple of days each week. Zooms are ok, but face to face is better!

AND WHERE WILL WE FIND YOU ON THE WEEKEND?

My absolute passion and addiction is the ocean and sailing.

I’ll either be swimming in the River Hamble, paddleboarding, racing my Foxer dinghy, or sailing my yacht “Batfish” round the Solent, weather permitting. During the summer, I’ll end up working from the yacht, using a background shot to make it look like the dealing room.

WHAT’S YOUR BOLD PREDICTION FOR THE CITY IN 2023?

The UK will surprise the markets to the upside. After Liz Truss cost the UK our financial and political credibility last year, some tough decisions will be addressed and the prospect of a new

government will see increasing confidence the UK can get back on track. Or, we will see the “adults-in-theroom” Rishi Sunak premiership brought down by yet more internal Tory bickering, consigning Gilts and Sterling to the bin.. again!

WHO’S THE CITY FIGURE YOU MOST ADMIRE?

Sir Robert Stheeman of the Debt Management Office. Calm, clever and focused chap who kept the UK’s access to global funding on course despite what the political idiots have done over the past 15 years. Or Sir Douglas Flint, the best bank CFO ever who became chairman of HSBC before jumping from frying pan into the fire to sort out Standard Life.

YOU’VE GOT A WEEK OFF –WHERE ARE YOU GOING AND WHO ARE YOU GOING WITH?

If it’s winter, take my wife, kids and 20 of my mates skiing somewhere with deep snow, the best tarteflette, hot rums and bombardinos in multiple mountain bars. Alternatively, I’d take the same group to Antigua for Race Week, with expresso martinis at Skullduggerys, and remember practically nothing!

We

NSURANCE COMPANY OF THE YEAR

The insurance sector has had an extraordinary year, dealing with natural disasters and climate change on the one hand and investing at pace on the other. This year we’re looking not just at insurers who are delivering for shareholders but those looking to take the lead in greasing the wheels of the British economy.

ACCOUNTANCY FIRM OF THE YEAR

Auditors and accountants have spent plenty of time in the spotlight in recent years, but some firms are leading the way in putting audit and accountancy’s reputation back on the right track - and some are choosing innovative ways to respond to today’s challenges.

2ND MARCH 2023 THE GUILDHALL

LAW FIRM OF THE YEAR

The City’s legal sector continues to lead the world even in the face of great global changes and an occasionally difficult political climate. We’re looking not just at the biggest players in the market but those that are looking to innovate through both acquisition and technological innovation and disruption.

BANK OF THE YEAR

Lenders might have expected things to calm down postpandemic, but the cost of living crisis put paid to that. We recognise those banks that are going above and beyond to support British business.

ANALYST OF THE YEAR

City watchers are more valuable than ever, and these analysts have consistently got the big calls right. We recognise those who put the hard yards in to know their businesses and sectors.

DEALMAKER OF THE YEAR

Getting deals across the line in a global climate that is ever more volatile is no mean feat. London remains at the heart of global M&A –and we look at the rainmakers who are still doing the business.

INNOVATIVE COMPANY OF THE YEAR

The City has always thrived on the back of innovation and these firms have it in their DNA. We honour the big ideas and fast-moving firms who are helping to define the future of the Square Mile.

ENTREPRENEUR OF THE YEAR

London has always been a home for risk-takers, and that hasn’t changed. We look at the driving forces behind growing and established companies alike, looking not just at the bottom line but highlighting those who are using markets and business to solve global problems.

INVESTOR OF THE YEAR

Never have markets been more difficult to predict - but even in a tough environment there are gains to be had. It’s those investors that still raise the eyebrows of City professionals in admiration.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE AWARD

‘ESG’ has never been more in focus than it has been over the past year, with the City going green at pace.

But it’s not just about saying the right things, but doing them – and using innovative new products to finance them, too. From big to small, businesses are on the sustainability march.

BUSINESS OF THE YEAR

We’re looking for the best of the best - the companies that have navigated economic headwinds and come out ahead. We’re looking for smart management, growth, and a willingness to do things differently.

PERSONALITY OF THE YEAR

The final and arguably most prestigious category will see City A.M. recognise the very best of the best in the Square Mile and beyond. The City remains a global financial leader - and it does so on the back of its people. Who will be this year’s big winner?

MARK KLEINMAN

BREAKING BUSINESS STORIES AND ANALYSIS

New Year Predictions: Bonus rows, football takeovers and a Natwest win

AFTER the political and economic events of 2022, the idea of being able to predict anything with confidence seems even more outlandish than usual. Nevertheless, with the UK economy precariously balanced less than two years before a general election, these seem –in early January – to be sensible bets for UK plc in 2023.

Britain’s economy will endure another torrid year, with recession lasting for nearly three-quarters of it and house prices sliding sharply, particularly in the second and third quarters.

After a bright start to 2023, the FTSE 100 will also have a sluggish 12 months, ending the year at 7,450. A string of economic pledges by a Labour opposition which looks increasingly destined for government as Rishi Sunak struggles to unite Conservative factions may also unnerve financial markets –though not to the same extent as Kwasi Kwarteng’s infamous mini-Budget.

LONDON LISTINGS REMAIN TOUGH

Moribund in 2022, the London IPO market will fare better this year –but only just. Consumer industry floats will continue to be thin on the ground, leading the owners of businesses such as Burger King UK to turn to alternatives in the form of secondary sales to new private equity backers. ARM Holdings, the chip designer, will also opt against a UK listing despite the efforts of Rishi Sunak to persuade Softbank chief Masayoshi Son to commit to a dual New York-London share sale.

Ministers will commit hundreds of millions of pounds of public money to bail out Britain’s steel industry –again. Dressed up as an effort to decarbonise the sector, Grant Shapps will hail the funding for British Steel and Tata Steel as a boost for skilled industrial jobs –but Sanjeev Gupta’s Liberty Steel will miss out on taxpayer support, raising fresh questions about the fate of thousands of jobs.

Executive pay reform will once again soar to the top of the agenda in Westminster and the City, as a string of lavish CEO remuneration packages at companies which have barely outperformed their peer groups sparks renewed fury amid the cost-of-living crisis.

Labour will seek to exploit cabinet dithering over the issue by proposing to make all shareholder pay votes binding, but by the end of the year, the government will have also committed to consulting on such a move.

Rupert Murdoch will succeed in reuniting the two wings of his media empire –News Corp and Fox – but only just. A private equity consortium will test independent investors’ resolve by tabling an offer for a large chunk of Fox’s assets, sparking a full-blown battle between institutional fund managers and the media tycoon. In the end, his will –and voting rights – will prevail.

Royal Mail’s clumsily named parent company, International Distribution Services, will be broken up and taken over. A strategic buyer will emerge for its parcels business, GLS, with the historic letters division being acquired by private equity buyers following fraught negotia-

tions with ministers and Ofcom, the industry regulator.

Protests from union bosses against the deal will be to no avail, with only shortterm guarantees extracted relating to future employment levels.

The Americanisation of English football’s elite division will continue –in both the men’s and women’s game. Manchester United will be sold by the Glazer family to fellow US investors, but at a steep discount to some of the wilder valuations being mooted.

WHEN THE YANKS COME MARCHING IN

Tottenham Hotspur will also fall under American ownership, while the Women’s Super League will see a US-based private equity firm trump interest from Bridgepoint with an offer to acquire a sizeable stake in its commercial rights.

It will be a grim year for corporate insolvencies –and a bumper one for insolvency practitioners. The high street will provide its conventional setting for retail sector casualties, but more notable will be the collapse of one of the biggest names in online fashion retailing.

Continued inflationary pressures –par-

ticularly in the form of higher energy prices –will cause the demise of the largest number of small and mediumsized businesses for decades.

Vodafone, Unilever, Informa, Legal & General, Barclays: expect change at the top of a disproportionate number of Britain’s biggest companies as boards seek to exert a firmer operational grip on out-of-control cost bases. Some FTSE stalwarts, like Vodafone and Unilever, will come under intense shareholder pressure to look outside for new chief executives, although they will both find their chosen candidates elsewhere in Londonlisted companies. Meanwhile, activists will also agitate for new blood at companies including ITV and Smith & Nephew, but with limited success.

Taxpayers will be well on their way towards the exit from Natwest Group by the end of the year, ending 2023 owning less than 30 per cent of the shares.

A series of drip-fed disposals during the year will continue to crystallise heavy losses for the government, but Dame Alison Rose, the newly honoured chief executive of the bank, will surprise many by unveiling at least one genuinely sizeable acquisition.

ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

JD Sports helps spring FTSE 100 to 2018 high after Christmas gains

LONDON’s FTSE 100 index leapt to its highest level since 2018 in afternoon exchanges in the City yesterday after a series of strong retailer earnings signalled the UK consumer is holding up well amid the cost-of-living crunch.

The FTSE 100 index climbed 0.99 per cent to 7,770 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed just under one per cent to 19,575.95 points.

However, the premier index gave up some gains to eventually close up 0.4 per cent at 7,724.99 points.

The FTSE 100 has kicked off 2023 strongly, advancing almost three per cent to reach a near four-year high.

Brits heading to the high street and snapping up deals online over the Christmas period helped boost trainer

retailer JD Sports in the weeks of 2022.

The firm said revenue climbed around a fifth in the six weeks to December, sending its shares up nearly seven per cent and to the top of the FTSE 100 yesterday. Fellow fashion retailer Frasers Group, owned by Mike Ashley, hoovered gains in its slipstream.

Investors are closely watching a string of bellwether retailers releasing results this week for signs on how Brits are responding to the cost-of-living crisis.

So far, spending seems to be holding up well, although companies have warned demand will steadily recede throughout 2023.

Insurer Admiral shed more than six per cent, the biggest fall on the FTSE 100, after the Bank of England this week told insurers to beef up their plans to withstand pressures on their finances from the coming recession.

Analysts at Peel Hunt have picked the numbers of AB Dynamic and reiterated their forecasts as the automotive test systems firm carries the trading momentum announced in November in the first half of 2023. AB Dynamics reported a good order book, with good visibility in the second half of the year. Its balance sheet remains strong with a net cash worth of £17.6m.

NO ENDING TO SPENDING

“For all the doom and gloom leading up to Christmas and the end of the year period, it would appear that while consumers are becoming choosier about where they spend their money, they are still spending it.”

MICHAEL HEWSON, CMC MARKETS

EDITED BY SASCHA O’SULLIVAN

Let’s be honest, making our own microchips won’t solve our China woes

Matthew Lesh

CHIPS are the hip, cool new thing. No, not the ones made from potatoes. The tiny transistors on silicon chips that constitute the beating heart of every modern technology – from computers, mobile phones and washing machines to cars, satellites, and weapons. They have been described as “the new oil”: they might be the new scarce resource on which modern economies depend.

Geostrategic concerns about China and Covid-related shortages have drawn the attention of policymakers to this topic. The Biden Administration has signed a $52bn law to encourage domestic production and, in an unprecedented step, banned US companies from supplying chips to Chinese companies. The European Union is also pursuing a Chips Act, making €11bn available for research and development and aiming to double European chip production.

The UK government has also promised a microchips strategy - which is so far nowhere to be seen. “The government is putting UK plc at significant risk by failing to take action in support of the semiconductor industry,” business committee chairman Darren Jones has claimed.

In truth, the UK does not need a

chips “strategy”. This is not to talk down Britain’s strengths in the sector. Cambridge is the home of Arm, a globally successful chip architect, and has some domestic manufacturing capacity. But the upfront investment necessary to manufacture the most advanced semiconductors would amount to tens of billions of pounds. The UK does not have the necessary scale or skills to compete with the likes of TSMC, the world’s biggest semiconductor producer, based in Taiwan, and supplier of Apple’s iPhones. Nor would it be a par-

ticularly good investment. Just this week TSMC missed its latest quarterly revenue goals and is reducing investment in response to slowing global demand for chips.

The Covid-era shortage of chips is likely to turn into a glut, particularly as new US and EU capacity comes onto the scene with large subsidies. This will mean that British manufacturers who use microchips in their production lines will benefit from lower input costs. Thank you, American taxpayers.

More broadly, we need to get out of the mindset that the UK must produce

everything it consumes. This is not a progressive policy. It reveals an isolationist, closed mindset. There may very well be a need to diversify supply chains, to reduce reliance on China. But that can come from businesses sourcing elsewhere in Asia, Europe or the United States.

The UK has benefited for centuries from being an open trading nation. “If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it off them with some part of the produce of our own industry employed in a way in which we

Parlez-vous Anglais? We don’t need to worry about losing our tech sector to Paris

THESE are tough times for tech – but we should be confident in London’s entrepreneurs. Last year saw big fluctuations in tech valuations, high profile layoffs and an overall decline in VC funding. And the turbulence is set to continue this year. But underlying that volatility is a buoyant and innovative technology sector in London.

According to data we’re publishing today with Dealroom, London is the top European hub for VC investment and fourth globally. And international tech investors continue to make longterm commitments to our city, with more fresh VC capital raised by new funds setup in London last year than any year previously. This provides an undercurrent of certainty for the capital, which will only entice more investors and talent.

Three things will help London to be resilient as a leading global technology hub.

Laura Citron

Second, London is positioned as the capital of a growing European technology ecosystem which increasingly competes on the global stage. I often hear anxiety in policy circles about the growing strength of the likes of Paris and Berlin as competitors for tech. But I see no reason to fear.

mission-driven businesses. This is starting to move the dial – for the first time this year, over 10 per cent of all investment into London’s tech sector went to impact-led companies. We expect that to grow.

have some advantage,” Adam Smith wrote as far back as 1776. Today we understand that this process boosts productivity, meaning higher incomes and a better quality of life.

The UK also doesn’t need a top-down strategy for every sector. Britain’s grocery sector fared just fine before the government released a 33-page “food strategy” in June 2022. It was perfectly capable of delivering millions of goods from across the world to thousands of stores across the country.

The alternative approach, championed by the likes of Mariana Mazzucato’s entrepreneurial state, advocates for a mission-oriented approach to the economy. In practice this means bureaucrats handing out taxpayer money to favoured industries. The beneficiaries are seldom the most competitive, meaning the state picks losers more often than winners. The result is wasting taxpayer money, a lessened incentive to innovate or respond to consumer needs, and ultimately a less productive economy.

The UK government spent decades subsidising International Computers Limited (ICL), a domestic British competitor to IBM for mainframe computers. Their only customers in the end were public sector entities. Whenever a business had a choice, they purchased the superior product from IBM. But that didn’t stop the farcical misuse of taxpayer money supporting ICL for many years.

If Britain is to be prosperous in the future, it’s important that we learn the lessons from the past.

£ Matthew Lesh is head of public policy at the Institute of Economic Affairs

First, our innovation has its roots in sectors in which we have deep strengths and enduring demand. The obvious example is fintech. As the leading global financial centre, London is also the leading global city for digital financial products, with London fintech companies attracting more venture capital funding than any other global city in 2022. This puts the capital ahead of both New York and San Francisco.

Beyond financial services, our strength in creative industries is powering growth in sectors like gaming and immersive reality.

In fact, the data published today shows that investment into London’s tech sector is still more than double the size of any other European city; and more importantly, we should see the growth of other tech cities in Europe as a positive. Seen from Silicon Valley, New York or Shanghai, Europe is a single technology market with London as its capital.

Finally, innovation will be resilient when it is solving real problems and creating real value for economies and societies – from tackling climate change to supporting mental health. The investors I talk to are increasingly looking for impact from their investments and seeking out

So, we should be confident that London’s tech sector will be resilient, albeit with some bumps in the road.

But to be globally competitive, we need to fix the inclusion gap in tech. Recent data shows that just 1 per cent of all European VC funding in 2022 went into women-led businesses, with similarly poor statistics for black and minority entrepreneurs. This is not good enough.

As one of the world’s most diverse cities, we need to lead the way in creating a technology sector which reflects our city and creates opportunity, jobs and prosperity for all Londoners.

£ Laura Citron is chief executive of London & Partners

Andrew Bridgen has been testing the limits of the Conservative Party’s patience (he surpassed everyone else’s a long time ago) and finally gone too far. The MP had the whip removed after comparing the Covid vaccine to the Holocaust. He joins the independent

Britain has historically relied on China for microchips and supply chains were derailed during the pandemic

A BRIDGE TOO FAR

benches with Jeremy Corbyn and Chris Pincher

Don’t let hackers steal our future

Rosie Beacon is absolutely spot on in her assessment of the UK government’s prioritisation of cybersecurity preparedness. For too long, it has been an afterthought, and this has resulted in a number of high-profile attacks on businesses and other organisations. These attacks are only going to increase as more and more of our everyday lives take place in the digital world. The financial and reputational damage these attacks have on businesses is bad enough, but successful attacks on our critical national infrastructure have the potential to bring society to a standstill. It is now time for the government to

seize the initiative and take a more proactive role in bolstering the nation’s cybersecurity defences. This begins in the classroom. As the education system is preparing students for their careers and a future in this increasingly digital world, it is time for cybersecurity to become a cornerstone of the curriculum. This includes making cybersecurity awareness training mandatory for students, as well as tying their performance in this training to their grades and making it a condition to graduate.

I would go so far as to argue cyber awareness is an essential basic life skill akin to good manners and decisionmaking. The benefits of teaching these skills early & regularly will be multifaceted including keeping children safer online and improving their job prospects.

Johan Dreyer Mimecast

Meta pumped cash into a futuristic vision, but they didn’t prepare for a recession

META suffered another blow last week, as the European Union ruled their ad practices in Ireland illegal. The decision resulted in a fine of €390m, which Meta is appealing, and shows yet another issue in the company’s business model and future-preparedness.

The technology sector has struggled over the past year, with the Nasdaq-100 technology sector index having fallen 38 per cent in 2022. However, there are big differences in how ready tech companies are to face the challenges confronting the industry.

As Andy Grove, the former chief executive of Intel, once said “Bad companies are destroyed by crises. Good companies survive them. Great companies are improved by them.” The challenge Meta now faces is unlike that of companies such as Google and Microsoft, who have properly futureproofed their business models. Meta risks being destroyed by ongoing crises, having lost an astounding 60 per cent, or near $450bn. By the end of 2022, it had dropped to a total market capitalization worth only $320bn.

Crises often expose vulnerabilities, so businesses must cultivate a diversified offering to be ready for the future.

In keeping with the trends of 2022, this year opened with more announcements of layoffs in all kinds of sectors. Corporate law firms in the City have hinted they might follow in their US counterparts’ footsteps and start sacking staff. Amazon has declared it will let more than 18,000 people go. And Goldman Sachs has announced what could be the biggest round of layoffs since the financial crisis.

Given these are all sectors with usually lofty profits, one might wonder what will happen to hospitality, the creative industry

and other sectors whose dividends are not as high.

Companies like Goldman Sachs, and sectors like tech, tend to invest a lot of money into new skilled employees and innovation when times are good, and can be obliged to scale back when times are bad. That’s part of the process. In other words, they live feast to famine, while other sectors such as hospitality tend to favour steady levels of staff and investment and squirrel extra cash away because they know windfalls can be far and few between.

Microsoft has successfully done this, mitigating negative impacts of the looming recession. They have done so by offering broader product lines and ensuring diversified income streams. People may not be using PCs running Microsoft Windows, but even hardcore Apple fans will find themselves using LinkedIn, Xbox or Teams. The business has recently defended its $69bn acquisition of the gaming giant Activision, as well as taking a 4 per cent stake in the London Stock Exchange as part of a 10-year deal on its cloud computing business. Microsoft has successfully become inescapable to a tech user: that is the power of a diversified business portfolio. When I visited their offices at the end of last year, the mood seemed upbeat, confident in the strength of their business.

Meta, on the other hand, has exposed its vulnerabilities. Until 2022, it seemed unstoppable. No matter how many data scandals there were - most notably with Cambridge AnalyticaFacebook’s share price did not stay down for long. But in 2021, Apple changed its privacy settings, impacting

Meta’s almost single source of income – ad revenue. Suddenly, Facebook and Instagram could no longer follow users to websites other than their own. This move is expected to cost Facebook $14.5bn in lost ad sales for 2022.

Google wasn’t affected as much by Apple’s privacy changes because it operates Android. It also has access to user information through Google Maps, Search, YouTube, and Gmail. In contrast, Meta has been shown to be at the mercy of Apple. It is, in fact, the only tech giant that never goes deep like Alphabet or broad like Microsoft.

Meta has been pursuing easy growth for too long.

Meanwhile, misinformation continues to fester on the Facebook platform. Mark Zuckerberg may support free speech, but the reality is that outrage generates more clicks than facts. And Facebook profits from posts that go viral. It forgot the younger users whom TikTok came scooping up.

This does not spell inevitable doom for Meta. Like the younger version of Facebook that acquired WhatsApp and Instagram, Meta could have started its

virtual reality experiment earlier. Rather than focusing on providing expensive goggles for a fixed group of users, the company could have connected with younger generations by exploring where they spend their time online. It could partner or acquire someone like Roblox or Fortnite. But these moves require repeated experimentation. It targets future users that cannot be monetized right away; they look much less attractive on an Excel spreadsheet.

Meta’s mistakes serve as a lesson to businesses looking ahead to the challenges of 2023. New capabilities and markets must be consistently created and scaled up to maximise innovation. To ensure a business is futureproof, it must constantly experiment with new business models ahead of time. Most importantly, businesses should never lose sight of existing and future customers, as Zuckerberg has done with its Facebook platform.

£ Howard Yu is Lego chaired professor of management and innovation at IMD business school

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Howard Yu

[Re: As we modernise education, we can’t allow hackers to target our kids’ future, yesterday]

EXPLAINER-IN-BRIEF: FEAST, FAMINE AND LAYOFFS ACROSS SECTORS

Mark Zuckerberg has invested $36bn into the metaverse

Illicit transaction volume in crypto hit ATH in 2022

AMUCH-anticipated annual report has revealed that 2022 experienced more crypto crime than any other year.

The industry-respected Chainalysis ‘Crypto Crime Report’ paints a disturbing picture in which illicit transaction volume reached an all-time high of more than $20bn.

Alarmingly, this figure does not take into account current investigations into several large crypto firms which imploded last year –Celsius, Three Arrows Capital, FTX and others where allegations of fraud have been made.

“Those allegations make this year’s Crypto Crime Report a bit tricky, as some feel that those businesses should be treated as criminal enterprises,” the report states.

“Ultimately though, we don’t include their transaction volumes in our measures of illicit activity because our estimates are based solely on on-chain intelligence - we don’t account for instances where, for example, off-chain bookkeeping may have been fraudulent.

“Plus, the bankruptcy and criminal cases associated with these collapses are still ongoing, so for the time being, we’ll leave questions of criminality to the legal system.”

It goes on to say the events of last year have made clear that although blockchains are inherently transparent, the industry has room for improvement in this respect.

There are opportunities to connect off-chain data on liabilities with onchain data to provide better visibility,

and the transparency of all transactions on-chain in DeFi is a standard that all crypto services should strive to achieve, the report adds.

There’s also a stark warning over the all-time high figure of $20.1bn.

“We have to stress that this is a lower bound estimate - our measure of illicit transaction volume is sure to grow over time as we identify new addresses associated with illicit activity, and we

have to keep in mind that this figure doesn’t capture proceeds from noncrypto native crime (such as conventional drug trafficking involving cryptocurrency as a mode of payment).

“For example, last year we published that we found $14 billion in illicit activity in 2021 - we’ve now raised that figure to $18 billion, mostly due to the discovery of new crypto scams.”

Despite the alarm, the Chainalysis

2022 report reminds readers that crime in cryptocurrency amounts to small fraction of all activity.

“Overall, illicit activity in cryptocurrency remains a small share of overall volume at less than one per cent,” it states.

“It’s also worth keeping in mind that despite this year’s jump, crime as a share of all crypto activity is still trending downwards.”

LONDON CRYPTO FIRM LISTED

TAP Global has become one of London’s first listings of 2023 and the UK’s first listed crypto exchange services provider.

The listing, on Aquis Stock Exchange, was via reverse takeover of Quetzal Capital (investment company), having raised gross proceeds of £3.1 million by way of a subscription for 68,888,890 ordinary shares at a price of 4.5 pence per share.

Tap provides access to several major crypto exchanges through its app allowing users to purchase more than 25 crypto assets, as well as the option to be issued a physical or virtual Tap Prepaid Mastercard to make purchases in crypto or fiat at more than 40 million merchants worldwide.

BANK OF ENGLAND CBDC SHORTLIST

THE Bank of England has drawn up a shortlist from applications to win the contract to create a wallet for its CBDC experiment.

A total of 20 companies submitted applications for the £200,000 five-month central bank digital currency project, with that list this week being whittled down to a handful of potential partners.

Despite the tight turnaround for the work, 28 applications were initially made, although eight didn’t pursue the bid beyond the initial stage. The completed applications are made up of nine SMEs and 11 ‘large’ companies, with the successful tender being announced on January 31.

WOOLLER TAKES ON COINCOVER ROLE

LEADING fintech expert Katherine Wooller has been appointed as Business Unit Director at digital asset protection technology company Coincover. Wooller joins the Cardiff-based firm from crypto exchange Dacxi where she spent two years as Managing Director of the New Zealand company’s UK and Europe operation.

“As a passionate advocate for crypto and blockchain, it’s been a privilege for me to be considered a subject matter expert on these technologies across a plethora of industries,” Wooller said.

LAST week marked 14 years since Bitcoin’s creator Satoshi Nakamoto officially mined the first Bitcoin, a seminal event that kickstarted a revolution in finance and investing. It sprung an industry worth trillions of dollars, with millions around the world now working in the field, investing, and building for the future.

It’s certainly been quite a journey so far, with last year in particular seeing no shortage of drama. The industry itself has matured in so many ways in

recent years, but suffered real knocks to its credibility last year with meltdowns for some major players. What does 2023 have in store?

It’s certainly been a stronger start to the year in the crypto markets. The price of Bitcoin on Monday jumped to more than $17k for the first time since mid-December, where it’s largely stayed since. The last month has seen the largest cryptocurrency by market capitalisation trading flatter than an elephant’s camping stool at around $16k, but can this now act as a

springboard for recovery?

The real excitement, though, has been in alt markets. Ethereum has had a solid week, rising above $1,300, pulling it to a four-week high. The big winners, though, have been Cardano and Solana. Solana posted a weekly gain of more than 50 per cent at one point, which followed a new addition to the Solana ecosystem in the release of the meme coin BONK. Is 2023 going to see a rejuvenation in interest for alt coins?

Generally, though, sentiment among

investors still looks weak, with the Fear and Greed Index dawdling at around the 26 mark on Wednesday – deep in Fear territory. The sagas around Celsius and FTX shook confidence, but it also ushered in a renewed focus of transparency. The industry now needs to rebuild trust if it is to move forward.

“In the wake of a challenging year for the market, I am excited to build on this momentum while the pace of change is supersonic.”

MAPLE LEAVES BIGGER TOKENS IN ITS WAKE

OBSCURE Ethereum token Maple has been the stand-out performer in the altcoin markets this week with an impressive lift of more than 80 per cent over seven days.

Last night, MPL posted a 24-hour trading volume of $5.5m – a giant leap of almost 600 per cent on the previous day as investors clamoured to catch the dramatic rise. At $5.80, though, it’s still some way off its $69 all-time high set in April last year.

REVIEWS

Tar: Cate Blanchett shines as a predatory composer

Cate Blanchett is a maestro playing a maestro in Tar, wildly conducting the audience just as her character conducts the Berlin Philharmonic Orchestra.

From the first time we see her, Lydia Tar – a fictional character with some pointed similarities to real-life luminaries of the classical music world – is portrayed as anxious but brilliant, popping pills to hold things together, just barely, but performing when it counts. She’s a rockstar on the podium and a superstar on the interview circuit, speaking off the cuff with captivating authority, flitting between English, German and French, often in the same sentence.

The early scenes – an interview with a journalist, a university lecture – feel like eavesdropping on conversation in a language in which you’re not quite fluent, filled with elusive musical terminology but delivered with such charm and conviction you understand the essence of the words if not the meaning. Her casual but surgical take-down of a progressive student who says he can’t appreciate Bach because of his mi-

UNMISSABLE

TAR

DIR. TODD FIELD BY STEVE DINNEEN

sogyny is a masterclass in the art of rhetoric, while speaking volumes about Lydia’s world view: she’s a musical absolutist for whom ethics are but a distant consideration.

The problems for Tar arise when she tries to conduct her private life with the same precision as she does the orchestra. She’s willing to fire her longstanding deputy to promote her young lover Francesca, then reneges on the deal when she feels it might incriminate her. She waves her metaphorical baton but the people around her are increasingly out of tune.

There’s a clinical feel to much of Tar. Lydia resides in the pristine brutalism of the concert hall, all poured concrete and wood panelling, a style of home decor that extends to the ludicrously chic apartment she shares with her wife and child. This makes the handful of times she enters somewhere more human feel instinctively meaningful:

the cosy old flat Lydia can’t bring herself to give up, the disquieting squalor of a Berlin squat, the smallness of her family home.

Lydia becomes increasingly paranoid and sleep-deprived. She hears strange noises in her apartment: a metronome ticking alone in a cupboard, a strange hum from the fridge, a figure behind the curtains; all echoes of horror movie tropes.

When it eventually comes, her downfall is swift and brutal. Almost too brutal. The unravelling is spectacular, everything everywhere all at once, the walls falling in from all sides, death by a thousand bad decisions. There’s a nightmarish quality to it all, Lydia drifting impotently from calamity to calamity.

There are various reading –it could be a portrait of an abuser grooming a string of young victims; that Lydia is a charming lesbian is perhaps a nod to the fact predators don’t all look like Harvey Weinstein. But this doesn’t feel right, or at least not entirely right. Conversely, it’s been criticised as an anti-Me Too parable, a revisionist stab at the left

DONMAR’S FASCISM PLAY FIZZLES OUT

ON THE RHINE DONMAR WAREHOUSE

BY ADAM BLOODWORTH

In the opening moments of Watch on the Rhine, the word “misinformation” is pertinently thrown about. It feels thoroughly modern and in some ways, it is.

The word has existed since the 1500s, which justifies its appearance in Lillian Hellman’s 1941 play about Kurt Muller, an anti-fascist protestor who flees possible incarceration in Germany to stay with family in America. Director Ellen McDougall’s idea, perhaps, was to align Hellman’s ideals about freedom fighting with contemporary ideas about the rise of fascism in Europe, alongside a message about conveying truth.

The set is gorgeously sumptuous,

all grand armchairs and rich cream carpets, the kind of plush, middle class setting in which unpleasant things are not spoken of. The family members buzz anxiously, awaiting Kurt’s arrival, each with their own trauma about why he’s been away so long. The idea is to present the varying ideals clashing: the absolutism of Kurt’s protests, the displacement of families because of it, and how it all that grates on selfgratifying matriarch Fanny.

It sustains a sense of tension in the first act as the Farrelly family welcome Kurt, his wife and their children into the safety of their suburban mansion.

Hellman’s script is full of vivid humour, which raises constant laughs, even if they aren’t sidesplitting. But the second act feels too ponderous. Nothing much

happens, least of all a rallying call about the scourge of fascism and how it’s ripping a family apart.

It’s not that Mark Waschke doesn’t give it all as Kurt: at the end of the first act, his body contorting into weird shapes and his face like some frenzied beast, he embodies the grief and stress of a man forced back into danger for their beliefs.

Likewise Patricia Hodge as Fanny, who is hammily fantastic, waving her arms around and delivering jokes with panache.

But it tails off with a whimper. A symbolic opening and closing turn by David Webber’s Joseph, the house help who questions the place of black people amongst the white privileged set, feels shoehorned. I’m not sure if there’s a reason to reprise Watch on the Rhine in 2023, but if there is, this isn’t it.

Field exploded onto the filmmaking landscape in 2001 with his sparse, slowburn relationship drama In the Bedroom, following it up five years later with suburban satire Little Children. And since then… Nothing.

More than 16 years in the wilderness, attached to a string of abandoned projects. This makes it all the more remarkable that Tar feels like the work of a director who is as utterly assured as the character he’s portraying. His direction is restrained, confident, precise, conjuring unbearable tension from the mundane.

Tar is a meeting of one of the finest actors on the planet and an enigmatic director finally realising two decades worth of pent-up creative energy. It is a strange, convoluted symphony, quite unlike anything else, but it’s perhaps the first great film of 2023.

M3GAN DIR. GERARD JOHNSTONE BY STEVE DINNEEN

There is a proud cinematic tradition of haunted doll movies. You can trace the lineage back from Annabelle (first appearing in The Conjuring in 2013), through to Chucky (Child’s Play, 1988), all the way back to Hugo the ventriloquist’s dummy from 1945 horror anthology Dead of Night.

Glossy new sci-fi horror M3gan picks up the mantle and adds a harddrive full of Black Mirror-esque techno-dread. The titular robot is plucked straight from the Uncanny Valley, its rubbery silicone face realistic enough to trigger an instinctual sense of revulsion.

M3gan is a secret project by young engineering wizard Gemma, an employee of a company that makes lewd, pooping Furby-adjacent toys. In the opening scenes Gemma gets a dressing down from her obnoxious boss David for her continued work on her uncanny monstrosity when she should be designing a bargain-basement version of the PurrPetual Petz line. In true Frankenstein fashion, she decides to take her work back underground.

Fortuitously, Gemma’s sister is involved in a horrible car crash en route to a ski trip, leaving her in charge of her orphaned niece. What better babysitter

for a career-oriented gal than an AI robot? Alas Gemma appears not to have read the work of Isaac Asimov before programming M3gan and the robot soon starts offing anything deemed a threat to Cady, be that a neighbour’s dog or an obnoxious child.

Like Microsoft’s infamous AI chatbot that became racist after a few days on Twitter, M3gan learns from the people around her and soon becomes a hideous reflection of humanity, picking up spite and violence just as easily as she learned compassion and empathy.

The film works because M3gan herself is so brilliantly realised through a combination of animatronics and CGI. Her movements are so very, very close to human and yet alien enough to be consistently disturbing. One of the film’s key concerns is the dangers of palming off parenting to computers – while M3gan is the antagonist here, the real danger is screen time (or should that be scream time?).

Like the recent revival of The Invisible Man, M3gan brings a fresh lick of paint to an age-old story – the result being a smart, propulsive horror movie that feels both timeless and brand new.

and an attempt to excuse real-life abusers in the classical music world. But this doesn’t feel right either. Director Todd Field is clearly in thrall to his anti-hero but he builds an emotional gallows nonetheless – he just leaves it to the viewer to pull the lever.

M3gan is a glossy sci-fi horror parable

RECOMMENDED

WATCH

LIFE&STYLE THE BEST OF 2023

THEATRE

This Almeida production starring Normal People’s Paul Mescal has had a rocky road to the stage, with lead Lydia Wilson pulling out close to opening night in December. It will officially open this week with the wonderful Patsy Ferran playing Blanche Dubois. This looks set to be a steamy success.

One of the most highly regarded plays of the last decade, The Lehman Trilogy is a barnstorming history of the eponymous brothers who founded the titular bank, and their ancestors who ran it into the ground. Now starring Michael Balogun, Hadley Fraser and Nigel Lindsay, this is an unmissable tale of greed and hubris.

After a short but successful fringe run, Vardy v Rooney: The Wagatha Christie Trial transfers to the Ambassadors Theatre. Using verbatim transcripts from the trial between the footballers’ wives, this play brilliantly recalls the guilt-free pleasure of the stupidest trial of the century.

FILM

If you love Doctor Who then The Unfriend has to be on your unmissable list. It’s the first play by Who writer Steven Moffat and is directed by Mark Gatiss. Together they are the television duo behind Sherlock. It’s a dark comedy about the horror that unfolds when a Trump-supporting widow flies to see a British couple. And it stars Reece Shearsmith, who is great.

WONKA

RELEASE DATE: 15 DECEMBER DIR. PAUL KING

There’s a third iteration of Roald Dahl’s famous chocolate maker being released to cinemas this year. Timothee Chalamet will play Wonka in an origin story that follows the eccentric chocolate-maker’s formative years. There’s a bright role call of supporting actors, including Rowan Atkinson, Matt Lucas and Olivia Colman.

Hanya Yanagihara’s epic novel has sold over 2.5m copies and has been called too miserable to be made into a TV series. It’s the touching, tragic tale of four men’s lives that turn out badly. Ivo Van Hove, who most recently did Network and West Side Story, is on board to direct the handsome James Norton.

Thursday is the new Friday! In our new Thursday Going Out section we bring you a list of all the things we’re looking forward to this year from the worlds of art, theatre and film. 2023 already looks like a classic

Batman and Inception director Christoper Nolan returns with Oppenheimer this summer, the story of J. Robert Oppenheimer, the physicist known as the “father” of the American atomic bomb. Cillian Murphy plays the

titular role in this fictional tale about the life of the charismatic, arrogant intellectual. The supporting cast includes Emily Blunt, Robert Downey Jr, Matt Damon and Rami Malek.

So hyped has this Barbie film been, photos of Ryan Gosling and Margot Robbie in neon outfits on the set have had fashionistas rethinking their style trends for 2023. The movie will do what it says on the tin: be a stylised, grownup retelling of the story of the fashion doll and earmarks the first live action version of Barbie’s story. It’s directed by Little Women director Greta Gerwig, so you’re in good hands if you think it all looks a bit ridiculous.

COCAINE

Very, very, very loosely based on a true story about a bear who finds and con-

sumes a lot of cocaine, this is 2023’s answer to Snakes on a Plane. It’s also a fond, if surreal, farewell to the late Ray Liotta, and while this will be no Goodfellas, it promises to be old fashioned cinema fun.

JOHN

Having already completed an incredible trilogy of Hong Kong-influenced action movies, Keanu Reeves will return for another dose of gratuitous, glorious fight-dancing. He reprises the role of besuited assassin John Wick, who was lured back into the biz in the first movie after someone killed his dog. Brilliant, mindless fun.

looking at this cast it’s impossible not to get a little excited. Harrison Ford, now a thousand years old, will dust off his iconic hat for the first movie in the franchise not directed by Steven Spielberg. But in the hands of Girl, Interrupted and Walk the Line director James Mangold, this could be a hit. We’re in (again).

DUNE PART TWO

RELEASE DATE: 3 NOVEMBER

DIR. DENIS VILLENEUVE

The Indiana Jones franchise, once the most exciting IP in the world, has stung us before (the less said about the Kingdom of the Crystal Skull the better) but

Dune was one of the great cinematic events of the last few years, a film so grand and slow and perfect it’s a miracle it got made at all. Now Denis Villeneuve will return with the second part, having already done the narrative heavy-lifting in the first instalment. Originally planned as a two-parter, it has already grown in scope to span three epic films. Timothy Chalamet will return as the heir apparent to The Spice Melange, Paul Atreides. If this isn’t the film of the year, we’ll put our hand in that terrifying little box and keep it there for ages.

Clockwise from top left: Barbie, Cocaine Bear, The Unfriend, Vardy vs Rooney

ARTSUMMER EXHIBITION 2023

ACADEMY

The Royal Academy’s Summer Exhibition is the capital’s uncompromising ode to art. It has run every year since 1769 and collates work from celebrated artists and brand new talent. Prints, paintings, film, photography, sculpture and architectural works feature in the collection which takes over the RA’s Main Galleries.

sit in front of her in silence. For 2023, Abramović is back with an exhibition spanning her whole life’s work.

The whole Saatchi Gallery will be taken over by Beyond the Streets, an exhibition bringing together Graffiti artists, muralists, sculptors and all manner of other street artists into a single mind-bending explosion of colour and ideas. Artists featured will include Goldie, Charlie Ahearn, Guerrilla Girls, Jenny Holzer, all curated by graffiti historian Roger Gastman. He says it will “examine the fundamental human need for public self-expression, highlighting artists with roots in graffiti and street art”.

She has since established herself as a provocateur, challenging notions of sex and gender with her often humorous work. She works with sculpture, installation and photography, and her pieces have a certain playful quality. Lucas narrates the exhibition in her own voice.

Why we back the four-day office week

Work-from-home Friday and Thirsty Thursday are the new normal –and City A.M. welcomes it. By Adam Bloodworth

Jasmine used to go into the office on Fridays but her company pivoted to working from home. She finds staying at home one day per week eases her anxiety and she enjoys being in a more comfortable environment. She’s productive too. “I think I actually get more work done,” she tells City A.M. “I can catch up on all the tasks that got postponed throughout the week.”

Taking a more flexible approach to office working is nothing new. In fact, Jasmine represents thousands of City workers logging on from home on the final day of the week. Recent statistics show only 13 per cent of staff were going into the office on Fridays as of last year, and while some research showns productivity dips, a 2021 study by Stanford found working from home one day per week increased productivity by 13 per cent.

It’s not only about work. Logging on from home also allows more time to prepare for the weekend, or enjoy later midweek nights out, as workers redistribute their commuting time to get more done at home.

“Thursdays are popular days to go out for my team, which makes Fridays from home appealing,” adds Jasmine. “You get extra time to sleep by skipping the commute.”

As foresight editor Fiona Harkin from trend forecasters The Future Laboratory puts it: “Fridays are becoming the de facto non-working work day simply because of its proximity to the weekend.”

Excitingly, we’ve got news relating to this change. City A.M. is responding to the silent end-of-week Cityscape by ceasing our Friday newspaper. Put simply, on Fridays near our office on Lower Thames Street, there are silent thoroughfares, empty cafes, and infuriated publicans getting no trade.

much as it is a physical place. If we’re doing our job, the Square Mile’s ethos will scream through every page of our website.”

There are other reasons why we’re supportive of one day per week from home. For one, it’s good for our mental health: a 2021 study found 70 per cent of those working from home found meetings less stressful. Jasmine says she “feels healthier” for it and often has enough time to make lunch herself “instead of going out to the shops.” Olivia, 24, who works in the City, finds WFH Fridays frees up her weekend for more fun stuff. “I can get on top of those ad hoc tasks you might have let slip in over the week while busy in the office,” she says.

There are, of course, downsides. With footfall in the City low, stats suggest one in seven pubs and restaurants have closed as fewer commuters are seeking after work

Marina Abramović is probably the most famous performance artist in the world. Her career spans 50 years but she is most famous for her provocative works like The Artist Is Present, which, performed in 2010, required guests to

Sarah Lucas was hanging out with Damian Hirst back in the late 1980s.

Swedish painter Hilma af Klint and Dutch painter Piet Mondrian never met but their abstract approaches and interest in understanding the natural world and the forces behind it aligned. Both artists shared an interest in creating work using vibrant colours and shapes, meaning their pieces lend well to curation. Rarely seen works from these modern artists will be on display.

£ Go to cityam.com for all the latest entertainment news

So we’ll instead take our news to where our readers are, which is online. We’re embarking on a digital push, particularly on Fridays, and a bigger Thursday newspaper with an extended Life&Style section featuring things to do at the weekend. It’ll respond to O2 data that shows more people are in the capital on Thursday than any other day in the working week.

“London is changing and there’s no point pretending it isn’t,” says City A.M. editor

Andy Silvester. “We want to make sure that our journalism is in the right place –and on Fridays, at the moment, that means online. In some ways, the City is a state of mind as

pints. Closures are particularly common in parts of London that rely on after-work drinkers. The Square Mile’s decline is steepest, at 14 per cent, worse than any other district and worse than London as whole, which has seen a 10.5 per cent decline in pubs and restaurants.

Even so, we must accept that hybrid work is staying. Twitter, Reddit and Spotify are a few of the companies offering hybrid working patterns or a complete work from home approach, with big tech signalling the future approach to smaller or less progressive companies.

“A new generation of workers feels more empowered than ever to demand work on their terms,” says Harkin from The Future Laboratory. At City A.M., we’ll be proud to serve those people the latest news as they work hard from their kitchen tables.

City A.M. will be proud to serve people the latest news as they work hard from their kitchen tables

Clockwise from top left: Oppenheimer, Beyond the Streets, Hilma af Klint and Piet Mondrian, John Wick: Chapter 4

My hopes for 2023 in a huge World Cup year

THE NEXT 12 months have the potential to be game-changing for rugby. It’s a World Cup year and domestic leagues are becoming ever more competitive, so here are my three hopes for the coming year.

NOTHING TO LOSE

My main hope for 2023 is to see England give the Six Nations and World Cup a good go. I still do not believe sacking Eddie Jones was the right thing to do but I do like the look of Steve Borthwick and Kevin Sinfield at the helm.

From the national side this year, I would like to see them really challenge France at home in the Six Nations and put up a good showing in Ireland. Beating one of the top sides in the world would be the early confi-

RUGBY COMMENT

Ollie Phillips

dence boost that England need in this new era.

I think England can still win the World Cup, frankly, and believe they can surprise so many in the rugby world.

I’d like to see Borthwick’s side develop some creativity in their midfield. Remember the days of Jonny Wilkinson, Mike Tindall and Rory Underwood?

Besides that, I’m not too sure there’s

much to change in the side. The pack is strong and the set piece generally performs well.

I do wonder whether Owen Farrell and Courtney Lawes will carry on sharing the captaincy or whether the likes of Ellis Genge could take over. Borthwick knows the prop from their time at Leicester Tigers.

GET LE PARTY STARTED

It’s only January but I already cannot wait until September and the Rugby World Cup in France.

You’ve got a misfiring All Blacks side, a brute South African outfit and a number of other challengers for the William Webb Ellis trophy. But I hope in 2023 we finally see a second northern hemisphere World Cup winner.

It’s going to be the best World Cup

ever and I really think both France and Ireland can be challengers for the title. I wouldn’t rule out an England resurgence, either.

I want to see Ireland finally win a knockout match and I want to see Chile and Portugal give good accounts of themselves.

I think we could see the host nation in the final but I have a soft spot for what’s going on in Ireland and I hope they can finally add their name to the roll call of winners.

Wales head into the World Cup with a new but familiar coach in Warren Gatland –that could either be a stroke of genius or an absolute nightmare.

Scotland need Gregor Townsend and Finn Russell to kiss and make up but the side are in a much more positive place at the moment –they’re not relying on poor weather to have a go.

DOMESTIC DISASTER?

There’s no arguing with the fact that the Premiership is the best and most competitive league in the world. The domestic product coming out of England is outstanding, but I worry about what else is going on.

I hope 2023 can be a year where there’s mass appreciation for the Championship and what it can offer the top flight, and I hope there’s now a period of stability where clubs can consolidate their positions and protect their futures.

It won’t be easy but where there’s a will there’s a way.

£ China Sevens head coach Ollie Phillips is the founder of Optimist Performance, experts in leadership development and behavioural change. Follow Ollie on Twitter and on LinkedIn.

SPORT COMMENT

Ed Warner

WIMBLEDON will be here before we know it. Expect the debate about Russian and Belarusian stars to start soon.

The tug of war over the two bellicose nations’ participation at next year’s Paris Olympics and Paralympics has already begun. Schisms within sports and between their leaders and politicians are inevitable.

Last year, backed (or if you prefer, pressurised) by the UK government, the All England Club barred the likes of Daniil Medvedev from Wimbledon, which had its ranking points removed as a result. I applauded them at the time, and see no reason now to change that view. Contrary to the naysayers’ arguments, the tournament did not suffer a mass exodus of big-name players more anxious about their global rank than the prize money and cachet on offer in SW19.

Within the All England’s committee room, however, things have been reported to be fractious, with its leadership under fire for failing to hold onto the Championships’ ranking status. The fear is that they could get away with it once at short notice, but not for a second time.

As the war in Ukraine continues with little prospect of a resolution any time soon, so the chances of a U-turn increase. Britain is on its second PM since last year’s ban and the zeal to exert pressure on Putin’s regime through sport may well have abated in favour of commercial pragmatism.

It’s fair to say that the International Olympic Committee is anxious to see Russia in Paris. The only uncertainty is how keen president Thomas Bach is privately to see its flag flying rather than the country’s athletes competing under a banner of neutrality.

The sports that make up the Games, however, have adopted a range of stances, some quite a way from the IOC’s. Things could yet get messy.

World Athletics, responsible for the marquee Olympic sport, has granted neutral status to a string of Russian athletes who it deems to be clear of the cloud of state-sponsored doping that has hung over the sport. But because of the invasion of Ukraine, it does not

SPORT’S RUSSIA ROW SET TO REAR ITS HEAD AGAIN

World Athletics before their ability to run, jump or throw in Paris is decided.

The French government will already be seeing a massive public relations challenge heading its way. Where will it position itself if Ukrainian athletes decline to compete against ‘neutral’ Russians and Belorussians in Paris next summer? Can it stand up to the IOC? The UK’s conundrum over a fort-

night’s worth of tennis is as marbles to medicine balls by comparison.

THE ELEPHANT AND THE FLEA

More nonsense from MPs on sport. This time it’s the Public Accounts Committee, which used a 28-page report into grassroots sport and physical activity to thrash Sport England.

I’m no apologist for the quango, although organisations I chair have been grateful recipients of its funding over the years. I’ll also be the first to agree with the committee that there has been no meaningful participation legacy from London 2012. But to chide Sport England for only a modest rise in the nation’s fitness is delusional in overlooking the societal forces driving inactivity and poor health.

“Sport England should, by June 2023, write to us with details of the barriers for the least active groups, and what action it is taking to address them to ensure people have the motivation, confidence and opportunity to participate in physical activity.” MPs said.

The annual cost of NHS England is around £160bn; Sport England spends a little over £300m. Will any government ever grasp the nettle and treat physical activity as a means to reduced care costs worthy of genuine integration into its overall health strategy?

Until one does, MPs will continue to be able to feel good about scoring their cheap points.

Ed Warner is chair of GB Wheelchair Rugby and writes at sportinc.substack.com

Ukrainian athletes decline to compete against ‘neutral’ Russians at the Paris Olympics next summer?

IF THE Premier League season is the proverbial marathon rather than a sprint, then this weekend sees the pacesetters in the title race, Arsenal and Manchester City, approach the halfway marker.

As they do so, they face personal duels with bitter rivals that could have a huge impact on their momentum heading into the second half of the campaign. Depending on how City fare at Manchester United on Saturday lunchtime and Arsenal’s result at Tottenham Hotspur a day later, the Gunners’ lead at the top of the table could be slashed to two points or stretched to eight. It’s too early to be called a decisive round, but it will determine whether each team enters the home straight with a spring in their step or a stumble.

TOTTENHAM V ARSENAL

Arsenal have already set a personal best, having made their strongest ever start to a Premier League season. Their goalless draw with Newcastle United last time out was only the third time Mikel Arteta’s team had dropped points this term.

They have already beaten Spurs, 3-1 at home in October, as well as Liverpool and Chelsea, and have shown no sign of being knocked off their stride by the World Cup break or the loss to injury of striker Gabriel Jesus.

Tottenham matched their north London rivals stride for stride in the opening weeks and were just one point behind them after eight games.

Since then, however, they have treaded water while their neighbours have hit their straps and they now trail Arsenal by 11 points.

Spurs can take heart from their formidable recent home record in

DERBY DATES SET TO SHAPE TITLE RACE

What they would give for a repeat that threatened to put the skids under Arsenal’s unexpected tilt at a first Premier League crown since 2004.

MAN UTD V MAN CITY

By kick-off at the Tottenham Hotspur Stadium, City could be on the shoulder of the

last 12.

They now rival Arsenal for the status of England’s most in-form team and have climbed to fourth, only four points behind Pep Guardiola’s outfit now. City have not been bad by any stretch but uncharacteristically dropped points at home to Brentford and Everton either side of the World Cup break.

KANE AND RASHFORD

England’s two leading strikers look set to have a major say in this weekend’s derbies, and therefore the rest of the

title race.

Harry Kane seems to raise his game when facing Tottenham’s biggest enemies, scoring 14 times in 16 starts against Arsenal.

Currently one goal shy of Jimmy Greaves’s 266 Spurs goals, Kane could equal or even surpass the record in the most fitting fashion on Sunday.

Marcus Rashford, meanwhile, is in perhaps the form of his life, having netted seven times in his last six outings for United.

Rashford has flourished since the sidelining and ultimate departure of Cristiano Ronaldo, becoming the most potent weapon in Erik ten Hag’s newlook side.

Arsenal and City may have sprinted away from their local rivals for now, but Kane and Rashford are in prime shape to trip them up.

THIS WEEKEND’S FIXTURES:

FRIDAY

Aston Villa v Leeds United

SATURDAY

Man United v Man City Brighton v Liverpool Everton v Southampton Nottingham Forest v Leicester Wolves v West Ham Brentford v Bournemouth

SUNDAY Chelsea v Crystal Palace Newcastle v Fulham Tottenham v Arsenal

Break Point: Netflix tennis doc fails to wow

TOMORROW morning the latest sports docu-series goes live on streaming giant Netflix as Break Point – the tennis version of Formula 1’s Drive to Survive – offers a peek behind the scenes of the sport. Here’s what we learned from the series.

SPECIAL

KS

Break Point grips you instantly, using Nick Kyrgios and his ego to open fans up to one of tennis’s biggest personalities.

With the likes of Novak Djokovic and Rafael Nadal not collaborating on the programme, it’s clear the makers saw the Australian as capable of plugging the gaping hole when the greats have all retired. But in showing Kyrgios and his love-hate relationship with tennis we’re let in on the ‘Special Ks’ bromance between Kyrgios and fellow countryman Thanasi Kokkinakis.

Kokkinakis and Kyrgios teamed up to secure the doubles Grand Slam in Melbourne – and Break Point proves why every Kyrgios needs a Kokkinakis.

When Kyrgios was having one of his trademark spats, Kokkinakis was there as a friend but as a teammate too – and the duo pushed through together. It was a striking representation of friendship through adversity.

SHE’S THE ONS

Serena Williams has been the biggest icon in women’s sport over the last 20 years, and Break Point positions Ons Jabeur as her possible successor, in tennis at least.

Jabeur became the first African and Arab woman to win a major tennis

event when she triumphed in Madrid – a storyline Netflix follows – and has become a beacon of perseverance and triumph in women’s tournament draws that are always so open.

With an all-Tunisian support team that she nicknames the Three Musketeers, Jabeur is praised by Martina Navratilova and Maria Sharapova in the series for her professional and personal attributes. Seeing her victory in the Spanish capital was one of the more emotional moments of the first five episodes.

She also shone a light, as Williams did, on being a woman in tennis and how wanting children means leaving the sport for a number of years – an important narrative.

BADOSA COMES GOOD

Paula Badosa was the surprise of the series, which is in itself surprising given she’s already a social media star. The Spaniard’s warmth on the topics of depression, being a home favourite in Madrid and the struggles of finding sponsorship made you want to follow her progress. The idea of tennis players being addicted to their

craft, chasing their losses like gamblers, was as honest an assessment of what sport means to athletes as you’ll find.

There may have been a huge focus on Nadal – including an episode named “King of Clay” –but he wasn’t interviewed. Neither was Roger Federer, Djokovic, Williams or Ashleigh Barty. The producers will hope the series follows Drive To Survive and recruits the bigger names as more episodes are commissioned.

The series, which continues with five more episodes in June, draws you in but it doesn’t wow. But you can see what Netflix are trying to do and they have proved this formula works.

Matt Hardy dives into sport’s latest reality series, which aims to uncover the stars who will fill the shoes of the greats

Jabeur looks to have been cast as the next star

Premier League matches could cause a huge shift in how the table looks, writes Frank Dalleres

TENNIS

LIGHTS, CAMERA, ACTION

Man Utd double in value to raise Glazers’ hopes of £8bn windfall

FRANK DALLERES

THE GLAZER family’s hopes of achieving a record valuation for the sale of Manchester United increased after the football club’s share price reached a four-year high yesterday.

Some analysts believe it could push the price of a takeover towards $10bn (£8.2bn), in excess of the original $7bn (£5.8bn) asking price.

United’s share price has more than doubled since last summer, passing $24 this week to push the Premier League outfit’s market capitalisation to around $3.8bn.

It follows a marked improvement in the on-field fortunes of the 20-time English champions, who have won 11 of their last 12 matches. The Glazers’ confirmation in November that they were open to a full or partial sale saw shares rocket past the $20 mark for the first time since 2018.

Cristiano Ronaldo’s acrimonious departure from Old Trafford days later did not halt the rising valuation, despite his commercial worth to the club.

“Man United’s share price reached a four-year high on Monday at $24 per share, a significant rise from $11 per share in the summer – the club’s lowest point since joining the New York Stock Exchange in 2012,” said Anaam Raza, a spokesperson for financial investment platform Saxo.

“The club’s market cap now currently

sits at $3.79bn, more than double when as low as $1.71bn in June. The rise on the stock market comes after the Glazer family announced they would be looking to sell the club in November.

“However, with the club’s stock rising, the originally rumoured asking price of $7bn could now be even closer to the $10bn mark – breaking all sorts of records and potentially pricing out a number of consortiums if the Glazers are adamant about selling at the highest price.”

Chelsea set a new record for the most expensive sale of a sports team when Todd Boehly’s consortium agreed to pay £2.5bn to acquire the club from Roman Abramovich in May.

That was eclipsed just weeks later when NFL franchise the Denver Broncos changed hands for $4.7bn (£3.9bn), which remains the benchmark.

United remain attractive to investors because of their global reach, despite posting record losses of £115.5m in their last full-year accounts.

A valuation of $8bn initially looked optimistic, especially with fellow Premier League giants Liverpool also officially put on the market by their US owners, Fenway Sports Group.

Another US party is still considered the most likely buyer for either United or Liverpool, as the influx of American investors in European football shows no sign of abating.

LUCKY ESCAPE England captain Farrell avoids Six Nations ban

ENGLAND rugby captain Owen Farrell has avoided a ban for the Six Nations Championship despite being found guilty of dangerous play. Farrell was hauled in front of an independent disciplinary panel on Tuesday after being cited for a high tackle in Saracens’ Premiership trip to Gloucester last week. The fly-half argued that his challenge on Jack Clement did not merit a red card but was overruled by the panel, who imposed a four-game ban. That was cut to three games, however, after Farrell agreed to take part in a coaching programme, meaning he will be free to play in the Six Nations.

Farrell is set to miss Saracens’ Champions Cup fixtures with Lyon on Saturday and Edinburgh the following week, as well as an English Premiership meeting with Bristol Bears.

FOOTBALL

Chelsea pay £10m to make Felix 12th signing

FRANK DALLERES

CHELSEA have continued their recruitment drive by signing Portugal forward Joao Felix on loan from Atletico Madrid for the rest of the season.

The 23-year-old is the 12th player to join since Todd Boehly’s consortium bought the Premier League club from Roman Abramovich for £2.5bn last summer. Chelsea are believed to have agreed to pay Atletico a loan fee of

almost £10m (€11m) to borrow Felix until June.

The Blues will also have to meet the player’s salary costs, which are reported to be around £250,000 (€280,000) per week.

“Chelsea is one of the great teams in the world and I hope to help the team reach

The Portugal star has joined Chelsea on loan

their objectives, so I am very, very happy to be here and very excited to play at Stamford Bridge,” he said. Felix could make his debut in tonight’s Premier League fixture against west London neighbours Fulham.

He is Chelsea’s fourth arrival of the January transfer window alone, following defender Benoit Badiashile, forward David Datro Fofana and midfielder Andrey Santos.

Our verdict on tennis’s attempt at Formula 1’s Drive to Survive

RUGBY UNION