Falling Back to Earth England Bowled Over On
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BUSINESS WITH PERSONALITY GRAB A COPY OUR FALLING BACK TO EARTH LATEST MAGAZINE ENGLAND BOWLED OVER ON HITS THE STREETS FARCICAL FIRST DAY P20 OF LONDON TODAY THURSDAY 25 JULY 2019 ISSUE 3,421 CITYAM.COM FREE BORIS ASSEMBLES QUICKFIRE CABINET PRIME MINISTER WASTES NO TIME IN OUT IN APPOINTING HARDLINERS TO KEY JOBS WHILE WAVING GOODBYE TO THE BULK OF THERESA MAY’S TOP MINISTERS OWEN BENNETT and social care secretary. Theresa Villiers AND JULIAN HARRIS is the new environment secretary, while JEREMY DOMINIC HUNT RAAB @owenjbennett @hariboconomics Grant Shapps becomes transport secre- tary, replacing Chris Grayling. BORIS Johnson oversaw one of the most Hardline Brexiter Jacob Rees-Mogg was brutal cabinet culls in UK political history appointed leader of the House of Com- yesterday, replacing a string of big-name mons, and Rishi Sunak was made chief MPs with some of his closest supporters. secretary to the Treasury. Within hours of arriving in Downing Earlier in the day prominent MPs – Street, Johnson had appointed Sajid including Theresa May, Philip Hammond, Javid as chancellor, Dominic Raab as for- Rory Stewart, David Gauke and David LIAM PRITI eign secretary, Priti Patel as home secre- Lidington – confirmed they were leaving FOX PATEL tary, and Liz Truss as international trade the government. At the time of going to secretary. print late last night nearly 20 ministers Supporters of his leadership rival had left their posts. Jeremy Hunt were the first to be ousted, As well as making sweeping changes to with Brexiters Liam Fox and Penny the Cabinet, Johnson has also installed Mordaunt sacked. Hunt will also return to new faces in Downing Street, with former the backbenches after turning down the Vote Leave campaign director Dominic job of defence secretary, which will be Cummings given a role alongside a slew taken by Ben Wallace. of other names who worked with John- PENNY SAJID Former City lawyer Nicky Morgan re- son during the 2016 EU referendum. MORDAUNT JAVID turns to the government as culture secre- Conservative MP Nigel Evans said: “It’s tary, opening up the chair of the Treasury not so much a reshuffle as a summer’s Select Committee – largely seen as West- day massacre.” minster’s leading financial watchdog. Ahead of the switch-up, Johnson said Andrea Leadsom was appointed busi- he would take personal responsibility for ness secretary, replacing Greg Clark. a range of improvements he wanted to Former leadership contender Michael see to the UK. Gove, with whom Johnson fell out during “Never mind the backstop, the buck PHILLIP LIZ the 2016 race to replace David Cameron, stops here,” he said. HAMMOND TRUSS was made chancellor of the Duchy of With his new Downing Street team Lancaster, while Gavin Williamson looking on, Johnson argued that should returns to the government as education the UK leave the EU without an agree- secretary and Amber Rudd takes the ment, it would be the fault of Brussels. work and pensions brief. Her predecessor He said: “I am convinced we can do a Esther McVey becomes housing minister. deal without checks at the Irish border Another leadership contender, Matt because we refuse under any circum- Hancock, who backed Johnson after stances to have such checks and get rid dropping out of the race, remains health of that anti-democratic backstop.” CHRIS ANDREA GRAYLING LEADSOM FTSE 100▼ 7,501.46 -55.40 FTSE 250▲ 19,787.78 +35.44 DOW▼ 27,269.97 -79.22 NASDAQ▲ 8,321.50 +70.10 £/$ ▲ 1.249 +0.005 £/€ ▲ 1.121 +0.006 €/$ ▼ 1.114 -0.001 02 NEWS THURSDAY 25 JULY 2019 CITYAM.COM NOT MY PRIME MINISTER Protesters take to the streets to voice disapproval of Boris Johnson’s succession to Theresa May THE CITY VIEW Boris’ chancellor must stand up to his boss NALYSTS at Deutsche Bank triggered sighs across the City yesterday with an attempt to coin the term “Borisnomics”. AThe portmanteau, as clunky as the new Prime Minister’s debut speech, is unlikely to catch on. But whatever we call it (Bojonomics, Johnsonomics…), how should we judge Boris Johnson’s likely approach to public finances and the economy? There were some bright notes to Johnson’s verbal manifesto, delivered on the steps of Downing Street. The former London mayor name-checked financial services when listing “the enormous strengths of this economy” and has suggested he will avoid the kind of banker-bashing so beloved of politicians. Johnson also reeled off policies that point to supply-side reform – free ports, tax incentives to boost investment, the slashing of red tape around some of the UK’s more competitive industries, PROTESTS swarmed Whitehall yesterday evening, causing disruption just steps down the street from Boris Johnson’s cabinet reshuffle. Groups of anti-Johnson activists, mobilised by the group Fck Boris, carried placards which read “Boris is a no no” and and so on. Such measures are desperately required to boost the “No to racism, no to Boris Johnson”, as they chanted their disapproval of the UK’s newest Prime Minister and his cabinet. UK’s lagging levels of productivity and business investment. On Tuesday of this week, the Bank of England’s chief economist, Andy Haldane, explained that now is not the time for doping-up demand, and endorsed a supply-side focus instead. So far, so good. But there were also worrying elements to Johnson’s speech yesterday; primarily, a string of spending commitments that would add tens of billions to the Treasury’s Facebook sales surprise spending plans. Social care, police, GPs, hospitals, the pupil premium, roads, trains, broadband – all very noble, yet extremely costly. Conservative chancellors have taken nearly a decade to all-but- eliminate the government’s annual deficit, with George after record $5bn penalty Osborne’s former chief of staff Rupert Harrison boasting last EMILY NICOLLE night that Sajid Javid “inherits sound public finances left by his on the same topic, agreeing to a fur- yesterday that Facebook “deceived @emilyjnicolle ther $100m penalty. users about their ability to control the predecessors”. Harrison is right, and he is also right to warn Facebook had set aside $3bn in privacy of their personal information”, that a firm grip on the purse strings can easily be loosened once REVENUE at Facebook in its second anticipation of the settlement last and in turn provided that data to discipline slips. quarter topped analysts’ estimates last quarter, and said yesterday it took a third-party apps. night, hours after it agreed to pay a $2bn charge in the second quarter to FTC chairman Joe Simons said the Discipline is not a word one would associate with Britain’s new record $5bn (£4bn) penalty to the US account for the remainder. terms of the settlement were “unprece- Prime Minister, and it is not a quality one would expect to find Federal Trade Commission (FTC) relat- It reported 2.7bn monthly users and dented in the history of the FTC”. in “Borisnomics”. Johnson is naturally attracted to grand ing to violations of its users’ privacy. 2.1bn daily users across its portfolio of “The relief is designed not only to projects, to big giveaways and, frankly, to anything that will In the second consecutive quarter for apps – Facebook, Messenger, Instagram punish future violations but, more im- beating expectations, its revenue rose and Whatsapp – showing little growth portantly, to change Facebook’s entire earn him power. to $16.9bn from $13.2bn a year ago, from last quarter. privacy culture to decrease the likeli- Javid is a welcome addition to Number 11. As a man who once surpassing the average estimate of The FTC said Facebook will create an hood of continued violations.” proposed strict spending laws to rein in profligate politicians, $16.5bn. Shares bounced as much as independent board to handle privacy The FTC said the penalty against Face- two per cent after-hours. issues at all its companies as part of book is the “largest ever imposed on the former banker will need to keep a close eye on his boss’ The $5bn settlement is the culmina- the deal, and will better police its app any company for violating consumers’ spending habits. tion of a probe into the role of developers. privacy, and almost 20 times greater Facebook in 2017’s Cambridge Analyt- The social media giant also revealed than the largest privacy or data secu- ica scandal, in which the personal data in its results that it now faces another rity penalty ever imposed worldwide”. of millions of Facebook users was mis- investigation by the FTC into whether Facebook’s general counsel Colin used for political purposes. it engages in anti-competitive prac- Stretch said the settlement will “mark The social media giant also yesterday tices, alongside a slew of other major a sharper turn toward privacy, on a settled an investigation by the US digital firms. different scale than anything we’ve Follow us on Twitter @cityam Securities and Exchange Commission The FTC alleged in its settlement done in the past”. FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL UBER LOSES TWO EXECS IN WHAT THE IRAN OFFERS TO SWAP MAY LEAVES WITH WORST US SET TO APPROVE MERGER LATEST BOARD SHAKE-UP OTHER SEIZED OIL TANKERS RATINGS SINCE THATCHER OF T-MOBILE AND SPRINT Uber is losing two board members in The president of Iran has offered a deal Theresa May leaves Number 10 with the The US Justice Department is poised to the latest shake-up at the ride-hailing PAPERS SAY to swap the British-flagged tanker it lowest satisfaction rating of any approve T-Mobile’s merger with Sprint company following its May initial public impounded in the Gulf last Friday for outgoing Prime Minister since Margaret under a divestiture plan that would offering.