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YOUR REGULAR PAPER INSIDE → BUSINESS WITH PERSONALITY BUSINESS WITH PERSONALITY AND RECEIVE A £100 VOUCHER TO SPEND AT GAUCHO GO TO CITYAMCLUB.COM TO CHECK OUT OUR FULL RANGE OF PARTNERS AND OFFERS TUESDAY 2 JULY 2019 ISSUE 3,404 CITYAM.COM FREE HONG KONG CRISIS Activists storm government building as WOODFORD anti-Beijing protests turn ugly FUND STAYS UNDERANNA MENIN LOCK interests of all investors in the fund to Woodford has refused to suspend @annafmenin continue the suspension”, and it would management fees for the fund’s be formally reviewed again by 29 July. investors, and is thought to be receiv- EMBATTLED stockpicker Neil Woodford “We understand that the suspension ing £100,000 per day in fees. remained defiant last night of dealings may be causing concern to The suspension of the Equity Income despite confirmation that his flagship you as an investor in the fund”, wrote Fund is under investigation by the FCA, Equity Income Fund will stay frozen for Karl Midl, director of Link Fund Solu- which has faced questions about its at least another 28 days. tions, which is managing the handling of the scandal and whether it In a new video promoted on suspension. should have acted sooner. social media, Woodford “We can assure you that Nicky Morgan, chair of the Treasury defended his trademark we are striving to do all Select Committee, has questioned the strategy of focusing on FCA’s “alertness to the problems”. JESS CLARK graffitied the walls with slogans such “undervalued assets”, Woodford issued another Earlier yesterday it was announced @jclarkjourno as “HK is not China”. saying it “will remain at video for his fund’s that Woodford had jettisoned his 12 Protesters are demanding that a the front and centre of investors yesterday per cent stake in Raven Property POLICE in Hong Kong fired tear gas at controversial extradition bill, which how we construct the Group. The sale brings the total Wood- protesters yesterday during mass would allow Hong Kong to send portfolio”. we can to bring further ford has raised since the suspension of demonstrations that saw some people to China to face trial, is He added: “All of my clarity to the situation as his flagship fund to £459m. activists storm the Legislative Council completely scrapped. personal finances and invest- soon as possible.” Raven, which specialises in property building on the anniversary of the Last month, Hong Kong chief ments are in the funds we run Midl added that Woodford investment in Russia, said it had city’s handover from British to executive Carrie Lam agreed to here.” Investment Management, the fund’s bought back a smaller stake from Chinese control. suspend the bill indefinitely in the The Equity Income Fund suspended manager, “has been taking steps to Invesco Asset Management, Wood- Thousands of demonstrators wake of earlier protests. trading on 3 June after becoming over- reposition the fund’s portfolio to ford’s former employer. gathered around the government The chief executive is now facing whelmed by withdrawals. Woodford realise the unquoted and less liquid It also emerged yesterday that Metal- building in the city’s financial district calls to resign. had to decide by yesterday whether or stocks and invest in more liquid ysis, a 3D printing firm backed by both to mark 22 years since the end of Opponents fear the bill is the latest not to continue the suspension. investments”. Woodford’s Equity Income Fund and British rule. move away from the so-called one Investors were told in a letter last Despite condemnation from MPs and his Patient Capital Trust, collapsed into A number of protesters broke into country, two systems formula, and night that it “remains in the best the Financial Conduct Authority (FCA), administration earlier this month. the building, vandalised pictures and towards mainland control. Macron and Merkel despair as Brussels flounders in race to fill top jobs OWEN BENNETT EU leaders gathered in of the 28 member states German Chancellor Angela Merkel. Party grouping which won the @owenjbennett Brussels on Sunday to discuss went on for more than 17 However, Poland’s Prime Minister European parliamentary elections, who should succeed Donald hours before they broke Mateusz Morawiecki has described missing out on the top job. EMMANUEL Macron has vented has Tusk as European Council down without an Timmermans as the candidate After the summit broke up, frustration at the EU's decision- president and Jean Claude agreement yesterday. “who is strongly dividing Europe” Macron did not try to hide his making process following another Juncker as head of the The main sticking point due to his criticism of eastern anger at the lack of progress and round of failed talks aimed at Commission – as well as host is who should succeed European governments over said: “Our credibility is profoundly filling the bloc’s top jobs. of other key roles. Juncker, with Dutch matters such as law and justice. tainted with these meetings that The French President said the The talks between leaders centre-left politician Frans If Timmermans were to succeed are too long and lead to nothing, EU's credibility is at stake after the Timmermans the Junker, it would see Manfred we give an image of Europe that latest emergency summit ended Macron complained meetings are preferred Webber, the preferred candidate of isn’t serious.” without agreement. too long and lead nowhere candidate of the centre-right European People’s Talks continue today. FTSE 100▲ 7,497.50 +71.87 FTSE 250▲ 19,634.66 +172.56 DOW▲ 26,717.43 +117.47 NASDAQ▲ 8,091.16 +84.92 £/$▼ 1.264 -0.003 £/€▲ 1.120 +0.002 €/$▼ 1.129 -0.007 02 NEWS TUESDAY 2 JULY 2019 CITYAM.COM FRIGHT AT THE MUSEUM New Museum of London price tag rises by a third to £332m after studies show extent of repairs THE CITY VIEW No Jeremy – bailouts did not cost £1 trillion MAGINE this: a young person finds themselves in financial trouble, perhaps as a consequence of their own actions, and Ican’t keep up payments on their £250,000 mortgage. A generous parent steps in and acts as guarantor on the mortgage, and also lends their chastened offspring £50,000 to get by. Over the following years, the young person covers all the mortgage payments, pays back £45,000 of the parental loan and takes back legal responsibility for the mortgage. How much has the parent spent on their child? If you think it’s £5,000, then you find yourself at odds with Conservative leadership contender Jeremy Hunt who seemingly thinks the answer is £250,000. That’s the only explanation for Hunt’s statement, posted on Twitter yesterday, that “we spent just over £1 trillion bailing out the banks”. THE PRICE tag for the new Museum of London in Smithfield Market has increased by a third to £332m, after studies revealed the extent of repair work needed. The relocation, previously estimated to cost £250m, is one of the largest cultural projects currently He adds: “If we did it for the bankers then why wouldn’t we do it underway in Europe and is set to be the UK’s most expensive cultural building project ever. what is needed [sic] for our fishermen and our farmers Hunt’s is the latest now?” An honest comparison absurd pledge to of the figures would go as spill out of the Tory follows. The government’s guarantees immediately after leadership battle Factory flop: UK, EU and the crash were valued at £1 trillion. The government did not “spend” £1 trillion on bank bailouts. It spent around £135bn. Today, that figure has fallen to roughly £27bn due to the sale of its stakes in rescued banks and other repayments. US manufacturing wanes Hunt wants so-called government support funds to back up popular industries in the event of a no-deal Brexit. His SEBASTIAN MCCARTHY implication that these funds should exceed £1 trillion is the Chartered Institute of Procurement & ing earlier estimates. AND MICHAEL SEARLES Supply, blamed a “triple whammy” of Germany’s weakness was once again latest absurd spending pledge to spill out of the Tory leadership @SebMcCarthy @michaelsearles_ the fallout from the Brexit delay, a major contributory factor as it contenders. Last night, outgoing chancellor Philip Hammond weaker demand and low optimism. remained the worst performer with a issued yet another plea to Hunt and Boris Johnson to resist the MANUFACTURERS across major west- “The sector was left gasping for PMI of 45, although it was its highest ern economies took a battering last breath,” he added. in four months. “temptation of a bidding war” as they battle for the keys to month amid mounting geopolitical “All the signs from the manufactur- Spain also endured a disappointing Number 10. Johnson himself is guilty of wildly talking up the uncertainty. ing sector point to another decline month, suffering a 74-month low as UK’s degree of fiscal headroom in recent days, as he too A string of closely-followed manufac- next month unless someone pulls a orders and output fell. promises billions in new projects alongside chunky tax cuts. turing indices painted a gloomy rabbit out of the Brexit hat.” France bucked the overall trend financial outlook yesterday, with the High stock levels, ongoing Brexit with a nine-month high of 51.9, While the two finalists are understandably keen to instil a fresh, sector’s downturn deepening across uncertainty, a wider economic slow- becoming the only major Eurozone bold and optimistic tone around their plans for life after the EU, large parts of its European and US down and tougher competition all economy to signal an expansion in Brexit Britain can surely do better than rely on a vast increase in markets in June.