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Lloyd’s of London to split in two CALLUM KEOWN @CallumKeown1 LLOYD’s of London yesterday unveiled plans to split into DEFENCESACKED SECRETARY WILLIAMSON two exchanges and move more of its business online in OUSTED OVER CLAIMS HE LEAKED a bid to cut costs. The six-point strategy INFO FROM TOP-SECRET MEETING includes splitting the 330-year- old market into two automated exchanges, OWEN BENNETT ing the investigation which prompted his allowing less complex risks to @owenjbennett dismissal. be placed “in minutes at a She said that while others under suspi- fraction of today’s costs.” GAVIN Williamson was sensationally cion had “engaged properly” with the in- Chief executive John Neal sacked as defence secretary last night quiry and “encouraged their staff to do the said the plan could cut costs after an investigation ruled he had leaked same”, Williamson’s conduct “has not by 10 per cent, which equates information from a top secret committee. been of the same standard as others’.” to around £1bn. Theresa May gave Williamson his march- May added: “In our meeting this Neal added the cost of ing orders after an inquiry discovered evening, I put to you the latest informa- buying insurance through the “compelling evidence” he had passed on tion from the investigation, which pro- market could be halved from information to a journalist about Chinese vides compelling evidence suggesting 39 per cent of the premium to company Huawei receiving permission to your responsibility for the unauthorised 20 per cent within five years. work on the UK’s 5G mobile network. disclosure. The report revealed the The ex-cabinet minister could now face a “No other, credible version of events to Lloyd’s expense ratio had police investigation into whether the leak explain this leak has been identified.” remained broadly unchanged constitutes a breach of the Official Secrets Downing Street insisted last night the since 1990 and was higher Act – a crime which carries a maximum jail Prime Minister would not push for crimi- than other global carriers. term of two years. nal proceedings to begin against One platform would be used After his sacking, Williamson insisted he Williamson, but Lib Dem deputy leader Jo for more complex risks, which was not responsible for passing on the Swinson wrote to Met police chief Cres- would still be conducted in highly-sensitive information, with a Sky sida Dick to demand an investigation. person, but more standard News journalist saying the now former Williamson was replaced as defence sec- contracts would be dealt with cabinet minster swore “on his children’s retary by Penny Mordaunt, with former through a new Lloyd’s Risk life” he was innocent. prisons minister Rory Stewart taking over Exchange. In a public letter to the Prime Minister, her role as international development sec- The market launched a Williamson cast doubts over the investiga- retary and leaving the Ministry of Justice. structural review last year tion which led to his dismissal, saying “a A former chief whip, Williamson was after it suffered a £2bn loss in thorough and formal inquiry would have seen as a May supporter, and was a key 2017 and chief executive Inga vindicated my position”. player in her successful bid to become Beale stepped down. In her own letter setting out the reasons Conservative leader in 2016. It has also faced criticism for his sacking, May was clear it was not over members’ costs, while just the leak but Williamson’s actions dur- £ TOP TORY SLAMS HUAWEI MOVE: P3 underwriters and brokers still use briefcases and paperwork. Labour MP only sticks with his party because he doesn’t think Corbyn can win

OWEN BENNETT MP said he does he not believe As a backbencher in 2011, the financial houses” have “control decision to endorse the book @owenjbennett Corbyn would not be a good Prime now Labour leader wrote the which they exercise over the body of during a radio interview, Streeting Minister and he would not tell foreword to a reprint of JA public opinion through the press”. took to Twitter: “My advice to any LABOUR MP Wes Streeting, a vocal voters otherwise when he is out on Hobson’s Imperialism: A Study. In his foreword, Corbyn hails the Labour MP today: refuse to defend critic of his party’s handling of the campaign trail. The book, first published in analysis as “railing against the Jeremy Corbyn lauding a book antisemitism, has said he’s only The outburst was prompted by 1902, claimed banking in Europe commercial interests that fuel the containing classic antisemitic staying in the party because he yet another row over antisemitism was controlled “by men of a single role of the popular press with tales tropes. If he wants to defend the does not believe Jeremy Corbyn engulfing Corbyn, after it emerged and peculiar race, who have behind of imperial might”. indefensible he should go on the could win an election. he described a book riddled with them many centuries of financial After shadow business secretary airwaves and defend himself. He In a stinging attack on the anti-Jewish conspiracy theories as a experience”. Rebecca Long-Bailey seemed to has a responsibility to explain Labour leadership, the Ilford North “great tome”. It also suggests the “great laugh off questions about Corbyn’s himself.”

FTSE 100▼ 7,385.26 -32.96 FTSE 250▼ 19,813.74 -11.07 DOW▼ 26,430.14 -162.77 NASDAQ▼ 8,049.64 -45.75 £/$ ▲ 1.305 +0.001 £/€ ▲ 1.166 +0.003 €/$ ▼ 1.120 -0.001 02 NEWS THURSDAY 2 MAY 2019 CITYAM.COM

RED SQUARE Shadow chancellor John McDonnell addresses crowds in Trafalgar Square after May Day socialist march THE CITY VIEW It’s hard to see how Coupe can carry on

IKE Coupe was met with rapturous applause from his fellow directors when he stepped up to the microphone Myesterday, as he hailed the coming of an era in Sainsbury’s history that would see it thrive having merged with long-time rival Asda. Coupe spoke boldly about price cuts and cost savings, and finished with a special thanks to the competition watchdog for approving the deal without hesitation. That is how yesterday’s presentation at Sainsbury’s HQ might have gone. But thanks to a deadly intervention from the Competition and Markets Authority last week, the tone was much less celebratory. With his Asda merger plans torn to shreds, Coupe was left to sell the City a business strategy that simply lacked the hefty promises (both to consumers and investors) which had been pledged as part of the tie-up. In his powerpoint pitch, the grocery JOHN McDonnell spoke to the annual May Day gathering in London yesterday. He gave his speech in front of a flag which showed images of socialist thinkers Karl Marx and Friedrich Engels, alongside communist dictators Joseph Stalin and Mao Zedong. This veteran could not bring himself to mention the A-word even once: week, the shadow chancellor told the BBC the Labour Party will unleash an economic “revolution” in the UK if it wins power. instead he talked of digital rollouts, store investments and the need to focus on economy products. Sitting next to the City grandee and Sainsbury’s chairman Martin Scicluna, Coupe stressed a number of positives to take away from the results: net debt was down, cash flow was up and underlying profits rose. But the botched merger plans were hard to ignore, May walks back no-deal even if it was not what he or his communications team wanted to talk about. “What these numbers confirm is that the pursuit of the Asda deal has been very very expensive, but the £46m that they spent on chasing it is the smaller part of the expense,” says retail analyst Richard Hyman. “The bigger part of the expense is stance at grilling by MPs the ground that they’ve lost in terms of market share and in terms of reputation with their customers”. OWEN BENNETT One the most publicly damaging parts of the Sainsbury’s–Asda Yvette Cooper, who accused May of good deal for the United Kingdom.” @owenjbennett “stubbornness” over her refusal to set The government is currently hold- collapse is that is has exposed with greater clarity the problems out any compromises over her post ing talks with Labour in a bid to fash- that Coupe’s business faces. Market share is being lost to German THERESA May yesterday said she was Brexit-customs policy. ion a Brexit plan which command the discounters at one end and a revitalised Tesco at the other. The talking in the “abstract” when she Asked by Tory veteran Sir Bernard support of the House of Commons. claimed “no-deal is better than a bad Jenkin if she stood by her claims that Jeremy Corbyn has called for the UK board has taken its eye off the ball in food retailing. Lower deal” during a grilling over the Brexit no-deal was better than a deal – first to enter a customs union with the EU product availability and a downward spiral in store standards stalemate. flagged up by the Prime Minister in a after Brexit, whereas May wants the leaves a once-great supermarket chain on the edge of a largely Appearing before parliament’s speech January 2017 – May said: “I country to operate an independent self-inflicted decline. powerful Liaison Committee of stand by the references I have made in trade policy. leading MPs, the Prime Minister the past that no deal is better than a Cooper, chair of the Home Affairs Se- Coupe insisted yesterday that he had no regrets over the merger repeatedly refused to say whether bad deal, but I actually happen to lect Committee, repeatedly asked May process. Perhaps he does not, for the moment. But the damage she would back the UK leaving think we have a good deal. for examples of where she had given the failed scheme has inflicted on his company simply cannot be the EU without an agreement “When I first made that refer- ground in the talks in order to facili- if the deadlock in parlia- ence I was talking in the tate a breakthrough. ignored, and now that he lives to fight another day, the question ment continued. abstract, it was in Lancaster “Your version of compromise is must surely be asked: for how long? May argued MPs would House. We now are no longer telling people you were right all prevent a no-deal outcome talking in the abstract, we are along,” Cooper said, later adding: as she clashed with Tory talking against the background “Resilience is a strength but stubborn- Brexiters over their repeated of a negotiated deal, hard ness is a weakness.” refusal to back her withdrawal fought, which I believe is a May insisted the two sides were mak- agreement across a series of ing progress, saying there was “a votes. The PM also crossed May stood firm on her greater commonality” in the benefits Follow us on Twitter @cityam swords with Labour’s no-deal comments of a customs union than first thought.

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL SQUARE TUMBLES AFTER WHAT THE OIL EXEC GOT MILLIONS ANYA HINDMARCH BACK AT BARR CAUGHT IN DISPUTE OUTLOOK COMES UP SHORT OTHER FROM ‘CORRUPT’ DEAL HELM OF HANDBAG BRAND OVER MUELLER FINDINGS Square saw its shares fall sharply on A mysterious British executive has been Fashion designer Anya Hindmarch has US attorney general William Barr faced yesterday after the payments group PAPERS SAY identified as the recipient of millions of returned to the helm of the fashion pointed criticism from Senate booked weaker payments volume than pounds from a $1.3bn (£995.8m) house she founded after stepping down Democrats over his handling of the expected and offered second-quarter THIS Nigerian oil deal at the centre of one of as chief executive eight years ago. The special counsel’s report in a contentious guidance that disappointed investors. the industry’s biggest corruption Essex-born entrepreneur has been hearing that laid bare a rift between him The company founded by Twitter’s Jack MORNING scandal. Peter Bosworth and his firm appointed managing director of her and Robert Mueller over the politically Dorsey expects second-quarter Arcadia Petroleum have been named in eponymous handbag and accessories charged investigation. revenues of $545m (£416.4m) to $555m multiple court documents. empire. and earnings of 14 cents to 16 cents a VENEZUELA’S GUAIDO SEEKS share on an adjusted basis.The average JULIAN ASSANGE JAILED FOR RAIL FRANCHISES ‘HARM’ TRACTION ON DAY TWO estimate called for earnings of 19 cents 50 WEEKS OVER BAIL BREACH USERS, SAYS BRANSON Opposition leader Juan Guaido called a share, on revenue of $555.5m. Julian Assange has been jailed for more Rail franchises are being awarded with for daily strikes and protests as Apple will boost the chipmaker’s than 11 months after he was removed the aim of removing as much risk from thousands of Venezuelans QUALCOMM SHOWS $4.7BN revenues by up to $4.7bn (£3.6bn) in the from the Ecuadorean embassy in the government as possible while demonstrated around the country for a BOOST FROM APPLE DEAL coming quarter. Qualcomm reported London where he had spent nearly harming services to train passengers, second day in a bid to raise pressure on The landmark deal ending legal sales and profit ahead of expectations seven years. The Wikileaks founder according to Virgin founder Sir Richard authoritarian President Nicolas Maduro. hostilities between Qualcomm and for its second quarter yesterday. received close to a maximum sentence. Branson. Public sector strikes will begin today. CITYAM.COM THURSDAY 2 MAY 2019 NEWS 03 Crossrail delay Metro Bank loses large commercial customers after £900m loans error to cost TfL £1bn CALLUM KEOWN error, as deposits fell 3.6 per cent In a difficult start to the year, from the previous quarter. Metro Bank admitted at the end of @CallumKeown1 The challenger bank also January that a swathe of commercial METRO Bank profit halved in the first reaffirmed that its £350m rights loans had been incorrectly classified quarter and the challenger bank lost issue – dramatically announced at and should have been among its so- in lost revenue a number of its largest customers as the end of February as a result of the called risk-weighted assets. it battled the aftermath of a £900m gaffe – would be launched by the The error has sparked two loans blunder. end of next month. regulatory investigations and shares The lender revealed yesterday it Pre-tax profit fell to £4.3m, a 50 have since fallen 65 per cent. ALEXANDRA ROGERS vital projects and upgrades in the cap- had lost of a small number of large per cent drop from £8.6m in the first Goodbody analyst John Cronin ital are likely to suffer. commercial customers due to quarter of 2018, the bank said as it described the results as a “truly @city_amrogers Earlier this week, Crossrail’s control- “adverse sentiment” following the published results last night. horrible set of numbers”. TRANSPORT for London (TfL)’s woes ling firm, Crossrail Ltd, put an end to over its embattled Crossrail project months of speculation by announc- have deepened further after a top rat- ing the railway, also known as the ings agency found the delay to its Elizabeth line, would open between opening until 2021 will cost the group October 2020 and March 2021. £1bn. The central section of the line will The £1bn figure is between £300m open between Paddington and Abbey to £400m more than cash-strapped Wood at some point during the six- TfL had forecasted in its 2018 business month window, Crossrail said. plan, which was published after it Keith Prince, the Tories’ transport became clear that the £17.6bn railway, spokesperson in the London Assem- billed as Europe’s largest infrastruc- bly, said: “It’s clear that the mayor of ture project, would not open last De- London took his eye off the ball, cember as planned. because by his own admission, he did- Moody’s said the two-year delay n’t know about the Crossrail delay would exert “significant pressure” on until the 11th hour. Once again, this TfL’s operating budget between 2020 incompetent mayor is costing not just and 2022. millions of pounds, but now £1bn.” The £1bn hit to passenger revenue A spokesperson for TfL said: “As amounts to about five per cent of its Crossrail Ltd continues to refine its total operating revenue in these two plans for completing and opening the years, Moody’s said. Elizabeth line, TfL continues to assess It said TfL could ramp up its cost-sav- the potential net impact of such plans ings drive – which has slashed its on its financial position. £1bn deficit to £500m – and hold off “Any potential financial impact on spending to manage the financial beyond 2019-20 will be reflected in impact of the delay, meaning other TfL’s 2019 update to its business plan.”

HORNBY STEAMS IN Former HBOS head hired as The Restaurant Group chief exec

The former chief executive of HBOS is set to be appointed chief executive at Wagamama-owner The Restaurant Group. Sky News reported Andy Hornby has been given the job, with the decision expected to be announced as soon as today. Hornby has reportedly resigned from his position as joint chief operating officer of gambling firm GVC Holdings.

Senior Tory takes a swipe at May over sensitive Huawei decision

JAMES WARRINGTON described the decision as “frankly extraordinary” and accused Theresa @j_a_warrington May of ignoring the UK’s closest THE UK will be “nesting a dragon” if intelligence allies. it allows Chinese tech firm Huawei to The comments came days after the participate in its 5G network, a senior US, which has warned the company Tory MP warned yesterday. could be a vehicle for spying by Last week it emerged the Chinese authorities, told its allies it government will give the green light will reassess intelligence-sharing for Huawei’s equipment to be used in agreements with any country that non-core parts of the network, uses Huawei’s technology. despite warnings from spy bosses Speaking at Prime Minister’s over national security concerns. Questions yesterday, May said the But Tom Tugendhat, chair of the government would take decisions Foreign Affairs Select Committee, supported by a solid risk assessment. 04 NEWS THURSDAY 2 MAY 2019 CITYAM.COM Climate protesters call for ‘refusal’ of debt payments to destroy City JOE CURTIS Shell’s offices and glue themselves the global economic system. to the London Stock Exchange. Extinction Rebellion activists @joe_r_curtis “Economic growth tends to brought London grinding to a halt THE FOUNDER of Extinction require the taking of resources from in two weeks of protests last month. Rebellion has ambitions to upend the the earth,” Bradbook said in an The City did not escape the action, UK’s financial system after her interview published yesterday. “So with Canary Wharf station targeted organisation targeted the City in two something has to change on a debt- when protesters twice glued weeks of London protests. based economy.” themselves to DLR trains. Gail Bradbrook wants to provoke a “That would entail a mass refusal Protesters glued themselves “mass refusal” to pay off loans and to pay off mortgages and student together outside the London Stock mortgages in a bid to throw loans,” she added. Exchange and protested outside the London’s financial district into Bradbrook said a so-called debt offices of Goldman Sachs, as well as disarray following action that saw resistance movement could lead to blocking the entrance to the climate change activists deface countries looking at alternatives to Treasury. Extinction Rebellion protesters blockaded parts of the City last month LSE income rises Campaigners despite tough lose Heathrow market backdrop CALLUM KEOWN @CallumKeown1 LONDON Stock Exchange Group legal challenge (LSE) boosted income in the first three months of the year and said the listing environment had improved in the second quarter, ALEXANDRA ROGERS unlawfully by not taking into account the company revealed in an update the Paris Agreement, which seeks to yesterday. @city_amrogers keep the increase in the global aver- The increase, which was five per THE GOVERNMENT won a legal battle age temperature at “well below” two GSK boss Walmsley said plans are continuing to merge a business unit with Pfizer cent up year-on-year to £546m, was yesterday that had sought to stop its degrees celsius before the end of the led by its clearing and information proposed £14bn expansion of century. services businesses. Heathrow Airport. However, the court found that the The company’s capital markets Campaigners trying to block a third agreement, reached between 200 na- GSK beats expectations as its business suffered a nine per cent runway at the UK’s biggest airport lost tions in 2015, does not form part of revenue drop to £97m due to lower the High Court challenge after the UK law and so Grayling did not err in equity trading volumes. court found that transport secretary failing to take it into account. shingles vaccine boosts revenue The group’s London Clearing Chris Grayling’s airport national pol- Shadow chancellor John McDonnell House reported 14 per cent icy statement outlining the expansion told City A.M: “Despite the fact these AUGUST GRAHAM Sales of the vaccine more than revenue growth to £134m. plans, was lawful. claims were refused this judgment doubled to £357m, the company said LSE said it was partly due to an MPs backed the scheme last summer does give emphasis on the right to @AugustGraham in an earnings statement yesterday. updated agreement with partner by a majority of 296 votes. appeal. The key issue as we debate cli- PHARMACEUTICALS giant GSK was also helped by sales of banks for its interest rate swap Five councils, London mayor Sadiq mate change in the House of Com- Glaxosmithkline (GSK) beat HIV medication, which reached service Swapclear, which is set to Khan, environmental campaigners mons is that one of the reasons the expectations in the first three £1.1bn, up seven per cent. save £30m in costs this year. and residents challenged the policy government gets off the hook in this months of 2019, boosting revenue six “Strengthening our pipeline Chief executive David Schwimmer statement on the grounds it did not judgement is on the basis that the per cent to £7.7bn. remains our number one priority said: “While equity markets were adequately address concerns such as Paris Agreement is not enshrined in Its top line was boosted by strong and we reported positive data for slower due to macroeconomic climate change, air quality and noise UK law. This is a bizarre message.” vaccine sales in the US, which grew several potential new medicines in uncertainty, we have seen an for nearby residents. Friends of the Earth said yesterday 23 per cent, mainly driven by sales HIV and oncology,” said chief improved listing environment in the The claimants argued Grayling acted that they would appeal the decision. of its shingles vaccine Shingrix. executive Emma Walmsley. second quarter.”

NEWSLETTERS

The biggest ® Britain must cut emissions to zero stories direct to your inbox Photography: David Venni / Chilli Media Venni David Photography: by mid-century, government told AUGUST GRAHAM the government will need to bring which the CCC says will not be more forward its 2040 goal to rid Britain expensive than current goals to Tess Daly @AugustGraham of petrol and diesel cars to at least reduce emissions by 80 per cent. BRITAIN should set its sights higher 2035, but preferably as soon as 2030. The estimates that Britain will pay and commit to weaning off It would also require widespread between one to two per cent of GDP greenhouse emissions entirely by the use of carbon capture and storage every year are still the same for the VITAMINS middle of the century, the systems in industry, a near more ambitious target, as prices for government has been urged. quadrupling of the number of wind green technology fall. 24 nutrients Business groups today called on turbines in UK waters, and The new target is needed to meet To help maintain GET THE health & vitality MORNING ministers to adopt the Committee on reforesting swathes of farmland. the UK’s commitments as part of the With vits B6 & B12, Climate Change’s (CCC) proposal to “To achieve net zero, we have to 2015 Paris Agreement, the CCC said. magnesium & iron which UPDATE, CITY contribute to normal cut emissions to net-zero by 2050. put the pedal to the metal on our “The challenge to parliament and energy release A.M.’S DAILY The plan would, if accepted, make world-leading wind industry,” said government is: You can do it. And if EMAIL Britain’s climate policies among the Renewable UK deputy chief we don’t do it, it’s because you’ve most ambitious in the world. executive Emma Pinchbeck. chosen not to do it,” said CCC chair “It starts with a big, bold, Brits would also need to lean into Lord Deben. ambitious target, which we have. veganism, cutting back around 20 The Department for Business, From , Superdrug, Holland & Barrett, supermarkets, The government now needs to adopt per cent of the meat and dairy in Energy and Industrial Strategy said it pharmacies, health stores and wellwoman.com CITYAM.COM/ it,” Rain Newton-Smith, chief their diets. would not “immediately” accept the * UK’s No1 women’s vitamin brand. Nielsen GB ScanTrack Total Coverage Unit Sales 52 w/e 8 Sept 2018. NEWSLETTER economist at the CBI told City A.M. The government is widely recommendations in the report, but To reach the target, the CCC said, expected to adopt the new targets, would respond in due course. CITYAM.COM THURSDAY 2 MAY 2019 NEWS 05

TOTAL RECALL Disgraced ex-Labour MP Pressure builds Fiona Onasanya dismissed by voters Federal Reserve FORMER Labour MP Fiona Onasanya will opts for flat lose her seat, it emerged yesterday, after 19,261 of her interest rates on Sainsbury’s constituents signed a recall petition. The JAMES BOOTH move will trigger a @Jamesdbooth1 by-election in Peterborough, in THE US FEDERAL Reserve said last which she can stand. night it was not raising interest as profit slides Onasanya, 35, was rates, citing a strong labour market jailed in January with solid economic activity. after lying about a It said it would maintain its ALEX DANIEL were hampered by hundreds of mil- speeding offence. target rate at 2.25 to 2.5 per cent. @alexmdaniel lions of pounds worth of charges last She was expelled by It said the labour market year, including £81m on restructur- Labour after her remains strong and economic SAINSBURY’s profit tumbled 42 per ing its retail operation. conviction. activity rose at a “solid rate”. cent last year to £239m after the Chief executive Mike Coupe did not The Fed said job gains have been supermarket giant spent £46m on its reference the failed Asda deal in his “solid, on average” in recent failed merger with Asda, it revealed statement, but said increased under- months and the unemployment yesterday. lying profit and reduced net debt was rate has remained low. The retailer suffered a body blow down to “the hard work of colleagues It said growth of household last week when the Competition and across the business”. spending and business investment Markets Authority (CMA) banned the Coupe is now under pressure to pres- slowed in the first quarter. proposed merger “in its entirety”, a ent a plan B for shareholders after his Thomas Cook sets offer deadline Over a 12 month basis, it said year after talks were revealed. £7.3bn merger with Asda failed. inflation has declined and is Shares rose four per cent yesterday, KATE HOLTON consists of Germany’s Condor, as running below two per cent. however, as the firm squeezed a 7.8 well as British, Scandinavian and Aaron Anderson of Fisher per cent rise in underlying earnings – SAINSBURYS THOMAS Cook has set a deadline of 7 Spanish operations. Investments said: “Fed policy excluding the extra costs – through May for expressions of interest in its A source familiar with the expectations have swung wildly 235 P £220m cost savings, despite an “in- airline business, with Indigo Partners discussions said that Indigo and from hikes to cuts, but neither creasingly tough and competitive 230 231.20 and Lufthansa among the likely Germany’s Lufthansa appeared most seems presently necessary with a retail environment”. 225 1 May bidders, sources said. interested in the business. backdrop of steady growth.” Revenue rose slightly to £29bn for 220 The heavily-indebted British travel British Airways owner IAG should US President Donald Trump has the year ending 9 March, while net group put its profitable airline not be ruled out and Easyjet has repeatedly called for the Fed to debt fell by £222m to £1.6bn. 215 business up for sale in February engaged in talks but is seen as less keep interest rates low. On top of the £46m spent on the at- 210 after profit warnings in 2018 left it interested, the source added. This week, he tweeted the US tempted merger with Asda, the em- needing to raise cash. It is not clear whether Ireland’s economy would go up “like a battled supermarket chain’s profit 25 Apr 26 Apr 29 Apr 30 Apr 1 May Thomas Cook’s airlines business Ryanair would bid. Reuters rocket” if the Fed cut rates. SIMPLE TO COOK

THIS WEEK BEAUTIFULLY SIMPLE CAJUN CHICKEN WITH MANGO & QUINOA

06 NEWS THURSDAY 2 MAY 2019 CITYAM.COM IN BRIEF MNUCHIN: US-CHINA SECRET SERVICE Putin signs law to allow TALKS ‘PRODUCTIVE’ Russia to disconnect from global internet Another round of trade talks Development between the United States and China ended yesterday, with US treasury secretary Steven Mnuchin calling them “productive”. Mnuchin flew to Beijing on Tuesday with US trade representative Robert bank lured into Lighthizer to hold discussions with their Chinese counterparts. Mnuchin yesterday tweeted: “We will continue our talks in Washington, DC next week.” Canary Wharf INVESTORS DELIVER OCADO PAY REVOLT Ocado suffered a shareholder SEBASTIAN MCCARTHY sustainable in the UK and to the rebellion last night with roughly 25 @SebMcCarthy amenities and environment EBRD em- per cent of votes cast against the ployees will enjoy at Canary Wharf. FTSE 100 company’s latest CANARY Wharf landed a major finan- We are looking forward to welcoming remuneration report. Boss Tim cial tenant yesterday, as Europe’s de- EBRD to Canary Wharf which is in- RUSSIAN President Vladimir Putin yesterday signed a law which permits Russia Steiner is in line to receive a £100m velopment bank shifted its new HQ to creasingly a destination for people to to sever ties with the global web. The move is designed to ensure the internet pay package if he can triple Ocado’s the business district in a post-Brexit work, live and relax.” continues to function in Russia should it be cut off by other states in sanctions. share price over the next five years. commitment to the capital. The coup for Canary Wharf Group Ocado shares closed up slightly The European Bank for Reconstruc- comes amid its high-profile court bat- more than one per cent last night. tion and Development (EBRD) is set to tle with the European Medicines take more than 360,000 square feet at Agency (EMA), which has been trying BOEING SUPPLIER SPIRIT 1–5 Bank Street, moving its headquar- to cancel its £550m long-term lease to SUSPENDS OUTLOOK ters from Exchange Square in the City move to Amsterdam post-Brexit. Boeing’s largest supplier Spirit of London. Dan Bayley, senior director of Cen- Workspace giant IWG posts a Aerosystems reported strong first- With plans to move to Canary Wharf tral London office leasing at BNP quarter results yesterday, while in 2022, the EBRD will occupy the top Paribas Real Estate, which advised following the planemaker in 13 floors of the 24-storey building, EBRD on the deal, said: “1–5 Bank double-digit bump in revenue suspending its full-year outlook in which is currently under develop- Street is the largest letting deal in Ca- the face of the global grounding of ment, on a long lease. nary Wharf since 2016 as well as the SEBASTIAN MCCARTHY IWG, the firm which owns Regus 737 Max jets. The recent crisis with Sir George Iacobescu, chairman and biggest new letting by Canary Wharf @SebMcCarthy and Spaces, said first-quarter sales Boeing’s most popular aircraft has chief executive of Canary Wharf Group for over 10 years. With the cur- had risen 10 per cent, in line with thrown into doubt orders for a raft Group, said: “We are delighted EBRD rent political uncertainty, this is a THE WORLD’s largest serviced offices forecasts. Occupancy was up 4.2 per of parts makers who have been has chosen Canary Wharf for its new great vote of confidence in London, group posted a double-digit rise in cent at 75.4 per cent.. investing heavily to meet record- headquarters. The move is testament demonstrating that our capital re- revenue yesterday amid growing Demand from France, Germany breaking demand from the world’s to the quality of our building, which mains resilient and an attractive place international appetite for its and Spain, as well as the Americas biggest planemaker over the past will be one of the most efficient and for organisations and businesses.” workspace brands. and Asia Pacific, drove the boost. two years. CITYAM.COM THURSDAY 2 MAY 2019 NEWS 07 Regulator gives Allied Irish Bank reports Lloyds Bank a lending growth CALLUM KEOWN @CallumKeown1 2.71% IRELAND’s largest lender Allied Irish Banks (AIB) grew capital boost lending in the first quarter and said the country’s economy was set to grow at a “healthy pace” despite CALLUM KEOWN duced its capital requirement, after a Brexit uncertainty. @CallumKeown1 number of years of upward revisions.” In a first quarter update, AIB 1.65% He added: “This is clearly positive said new lending grew 11 per cent LLOYDS Bank shareholders news for investors and reflects man- year-on-year and posted 2.5 per could be set for higher divi- agement’s good work over recent cent net interest margin growth. dends and further share buybacks years to simplify and reduce the risk The bank’s lending book grew by after the UK regulator loosened its profile of the group.” 1.4 per cent to €57.6bn (£49.5bn). risk buffer. The bank started a £1.75bn share The former Prime Minister has reportedly struggled to get backing for the project Chief executive Colin Hunt said: The Bank of England’s Prudential buyback earlier this year and Shore “We have had a good start to 2019 Regulation Authority (PRA) reduced Capital said the capital relief gave the with solid profitability, strong new the rate of the “systemic risk buffer” bank “comfortably enough” room for lending and continued performing of extra capital Lloyds needs to hold. a further share buyback of £1.5bn in Teething troubles for Cameron’s loan book growth.” The retail bank said yesterday it had 2020. The bank said its 31 Brexit reduced its capital ratio target, a The bank added weight to that advisors had been working with measure of capital strength, from theory in a statement yesterday. China fund as investors shrug customers and business owners. around 13 per cent to 12.5 per cent. It said: “The group has a progressive “In a continuation of credit Analysts said the regulator’s boost and sustainable ordinary dividend CALLUM KEOWN backed by both the UK and Chinese demand trends witnessed in 2018, could free up as much as £1bn in policy - the board will continue to give @CallumKeown1 governments, for almost a year and corporate and consumer credit extra capital and increase the likeli- consideration to the distribution of a half. remains strong but SME credit hood of further share buybacks. surplus capital at the end of the year.” DAVID Cameron’s proposed $1bn Sources close to the project said it demand remains somewhat Shares in the bank rose 1.7 per cent Goodbody analyst John Cronin said: (£765m) UK–China investment fund had still not completed a first round subdued as firms have delayed yesterday as a result. “It is unusual to see a bank reduce has reportedly faced reluctance from of fundraising, usually around half making investment decisions due Shore Capital analyst Gary Green- its... capital ratio target guidance but investors and could be set to fail in the overall target size. to Brexit related uncertainties,” the wood said: “This is the first example Lloyds’ move is absolutely justified, meeting its target. “It’s completely moribund,” one lender said. we can think of where one of the and arguably not entirely unex- The former Prime Minister has person who was asked to support AIB shares in London rose almost large quoted UK banks has actually re- pected.” been courting investors for the fund, the project told the Financial Times. three per cent yesterday.

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Subject to availability. 08 NEWS THURSDAY 2 MAY 2019 CITYAM.COM US factories pick House prices hit up as trade talks in fifth month of trudge onwards HARRY ROBERTSON @henrygrobertson GROWTH in the US manufacturing sector picked up slightly in April, subdued growth with output and new orders bouncing back from the lows seen in March, according to a closely-watched JOE CURTIS entering the market. industry gauge. “This doesn’t appear to have been Despite companies’ backlogs @joe_r_curtis enough to prevent a modest shift in growing, the rate of job creation was UK HOUSE price growth remained the balance of supply and demand in the slowest since June 2017 due to a flattened in April, as the annual price favour of buyers in recent months,” shortage of workers, according to growth rate rose less than one per Gardner added. survey data from IHS Markit released cent, the latest data showed yesterday. Howard Archer, chief economic ad- yesterday. While annual growth of 0.9 per cent viser at the EY Item Club, warned that April saw overseas demand for UK manufactured products decline. IHS Markit’s manufacturing beat March’s 0.7 per cent, it is the conditions remain “pretty challeng- purchasing managers’ index (PMI), fifth month in a row that growth has ing” for UK homes despite strong which indicates the health of the fallen below the one per cent mark, wage growth and a record employ- Brexit stockpiling slowdown sector, rose to 52.6 in April, up from according to Nationwide’s House ment rate. March’s score of 52.4. A score of above Price Index. He added that recent steep falls in 50 indicates an improvement. Nationwide warned that the figures London and the south east are hurt- Chris Williamson, chief business showed the housing market is still ing the UK as a whole. hurts British manufacturing economist at IHS Markit said: “subdued” as the spectre of a Brexit The prolonged Brexit process, and “Although the PMI ticked higher in delays looms over buyers and sellers. the lack of clarity around what will April, the survey remains consistent House prices rose 0.4 per cent happen next, is still hurting the UK HARRY ROBERTSON April, its pace eased due to the with manufacturing acting as a drag month-on-month in April, better than housing market, said Jeremy Leaf, extension of Britain’s exit from the on the economy at the start of the March’s 0.2 per cent hike from Febru- north London estate agent and a for- @henrygrobertson European Union to 31 October, IHS second quarter.” ary, when prices actually fell. mer Rics residential chairman. GROWTH in the UK manufacturing Markit and CIPS said, which The modest growth was held back The average house price rose less “Brexit uncertainty in the minds of sector slowed in April, according to lessened demand in the sector. by orders from abroad remaining than £2,000 to £214,920. homebuyers is still outweighing al- closely-watched data released Overseas demand rapidly subdued thanks to global trade Robert Gardner, Nationwide’s chief most record low mortgage rates and yesterday, following a faster-than- decreased in April, with the decline tensions and slowing foreign economist, said: “Indicators of hous- employment numbers, as well as im- expected expansion in March due to mainly due to Brexit according to demand. ing market activity, such as the num- proved affordability,” he said. Brexit stockpiling. the companies surveyed by IHS The mixed news came after the US ber of property transactions and the “A glimmer of good news is that The headline manufacturing Markit and CIPS. A global slowdown and China wrapped up the latest number of mortgages approved for first-time buyers are taking advan- purchasing managers’ index (PMI) also contributed. round of trade talks that seek to limit house purchase, have remained tage, particularly of help to buy and fell to 53.1 in April, down from Yesterday’s manufacturing PMI the damage that tariffs are doing to broadly stable in recent months, even deposits from the Bank of Mum and March’s 13-month high of 55.1, score “suggests that the sector will exporters in each country. though survey data suggests that sen- Dad, not forgetting reduced competi- according to IHS Markit and the slip back into stagnation now that Treasury secretary Steven Mnuchin timent has softened.” tion from landlord,” he added. Chartered Institute of Procurement the boost from preparations for a no- called the talks “productive”. Vice With weaker consumer confidence, He predicted house prices will only & Supply (CIPS). A score of over 50 deal Brexit has passed,” said Andrew premier of China Liu He is due to fly new buyer enquiries were low, exacer- rise one per cent this year due to the indicates growth in the sector. Wishart, UK economist at Capital to Washington next week to attend a bated by the low number of homes latest Brexit extension. While stockpiling continued in Economics. further round of discussions.

CITY A.M.’S SHADOW MONETARY POLICY COMMITTEE LGBTQ+: Does this group OUR MPC VOTE TO HOLD RATES AS BREXIT DARKENS BRIGHT SPOTS IN ECONOMY OUR PANEL’S GUEST CHAIR: KALLUM PICKERING BERENBERG still need supporting? HIKE Despite ongoing Brexit uncertainty, medium-term inflation risks are building in three areas. Firstly, finan- cial and economic participants’ inflation expectations are elevated and rising. Secondly, demand growth is far Yesterday, 60 attendees joined The Lord Mayor for exceeding the rise in productive capacity linked to softness in private business investment. And thirdly, wage the second Power of Inclusion breakfast of 2019, cost pressures are mounting as wage increases outpace productivity growth. The case to wait until after Brexit sponsored by Aon. Chaired by Pips Bunce of Credit is resolved has weakened following the latest delay that could last six months. The risk of falling behind the Suisse, the event looked in the fatigue faced by the curve now exceeds the risk from adding to current anxieties. City in supporting this community. Through our speed presenting format we heard how LGBTQ+ JEAVON LOLAY SIMON WARD staff definitely do still need supporting, saw how LLOYDS BANK JANUS HENDERSON there is a gap between what employers think their HOLD Based on UK data alone, the case for CUT Money growth is too low to achieve the employees experience and the reality, and got a rate hike has on balance strengthened inflation target over the medium term. different ideas for ways of addressing these issues. since February. However, continuing Brexit preparations have supported activity uncertainty around the global and but payback is imminent. Labour market domestic outlook argues for caution. strength is ebbing. LGBTQ+ IN NUMBERS MIKE BELL VICKY PRYCE JP MORGAN ASSET MGMT CEBR HOLD With the recent rise in productivity- HOLD Precautionary stock-building and adjusted labour costs, the case for a rate higher wages are giving a temporary boost 51% 35% rise is building, but it is worth waiting for to growth, but risk to inflation remains low of people of colour of LGBT members more evidence that the global while the Brexit extensions have increased experience racism and 15,000 don’t feel manufacturing slowdown is behind us. business uncertainty. other forms of LGBTQ+ PEOPLE HAVE comfortable or discrimination within SUFFERED A NEGATIVE included at work RUTH GREGORY TEJ PARIKH the LGBTQ+ EXPERIENCE AT WORK CAPITAL ECONOMICS INSTITUTE OF DIRECTORS community itself HOLD Hold for now, despite the slew of HOLD Higher wages and rising oil prices stronger data. Some activity may have been imply a pick-up in inflation is just around brought forward ahead of the original Brexit the corner but this has to be balanced date. Meanwhile, stronger pay growth has against ongoing Brexit considerations, yet to show up in inflation. which makes a rate rise risky.

JOIN THE POWER OF INCLUSION SERIES BY VISITING JAMES SMITH SIMON FRENCH www.thelordmayorsappeal.org/power-of-inclusion ING PANMURE GORDON HOLD HOLD LED BY BREAKFAST SPONSOR Aside from decent wage growth, The UK economy is showing signs of there are few reasons to raise rates right a split personality. Consumers are carrying now. Lingering no-deal Brexit concerns will on spending but business investment continue to restrain economic activity in the remains weak. Rates should be left on hold near-term. until the full picture becomes clearer. CITYAM.COM THURSDAY 2 MAY 2019 NEWS 09 Sirius raises Inmarsat profit $425m for new slides ahead of fertiliser mine AUGUST GRAHAM @AugustGraham SIRIUS Minerals yesterday revealed it has exceeded its initial $400m $3.4bn buyout (£306m) fundraising target, despite shares being priced at the lower end of expectations. JAMES WARRINGTON its forecast of mid-single digit revenue The London-listed company, growth over the five years to 2022, which is raising cash to build a @j_a_warrington and 2019 revenue, excluding Ligado, fertiliser mine in North Yorkshire, SATELLITE communications firm of between $1.3m and $1.4m. got $425m from a new share issue. Inmarsat has posted a double-digit Shares in Inmarsat dipped just The miner said it had won fall in profit for the first quarter under one per cent yesterday. Next attributed the rise in sales to an unseasonably warm April agreements from investors to buy ahead of its $3.4bn (£2.6bn) private “Inmarsat produced a strong under- around 1.62m shares at 15p per equity takeover. lying performance during the first share. The book build comes in at Inmarsat reported a 0.4 per cent quarter of the year, building on the the lower end of its 15p to 18p uptick in revenue to $346.9m in the positive momentum achieved during High street giant Next credits target range. Now existing three months to the end of March, 2018,” said chief executive Rupert shareholders will be offered a but earnings before interest, tax, de- Pearce. change to buy one share at 15p for preciation and amortisation dropped “We continue to successfully build warm Easter as sales triumph every 22 shares they own. 12.9 per cent to $152.4m. and aggressively defend market share Shares fell 4.4 per cent to 16.65p The UK-based firm said the decline in our target markets, supported by JOE CURTIS decline of 3.6 per cent in the three yesterday. The project will be the in earnings was driven by costs relat- our diversified product portfolio, en- months to the end of April, much first new deep mine in the UK for ing to its takeover offer and a sharp abling the business to capitalise on @joe_r_curtis better than analysts’ consensus 40 years when it is completed in drop in income from its spectrum the significant growth opportunities HIGH street bellwether Next prediction of minus 6.2 per cent. 2021, and it is expected to support deal with British satellite firm Ligado. in these markets.” welcomed robust sales growth in its Meanwhile online sales soared 11.8 more than 1,000 jobs. The company was hit by a $13m in- Shareholders will vote on the pro- latest quarter as revenue beat its own per cent, Next revealed in yesterday’s “I am pleased that we have had crease in costs, reflecting a higher posed $3.4bn takeover at a meeting estimates. trading update, shy of an expected such a positive response to the level of low-margin equipment sales. on 10 May. The consortium of buyers The retailer credited “unusually 12.8 per cent gain. launch of our stage two financing But Inmarsat, which posted its first has previously said it will keep In- warm weather” over Easter for the 4.5 However, Next declined to raise its solution which is key to unlocking results since it unveiled a buyout deal marsat’s UK headquarters and main- per cent year-on-year rise to sales of full-year guidance, saying it was “too the vast and long-term potential of led by private equity firms Apax Part- tain its investment in research and around £10m. early” to revise its predictions for the our project,” chief executive Chris ners and Warburg Pincus, maintained development. High street stores had a sales 12 months to January 2020. Fraser said. LIFEPARTNER CONTENT AFTER LEUKAEMIA: WHY I CAN'T WAIT FOR MY 1,000KM CYCLE

ark Stevens was 21 and at Cowes, on the Isle of Wight, next week. university when he was di- Somewhere in my brain I still think agnosed with leukaemia. about the things I didn’t think were MHis life hung in the balance. possible as a result of my physical state Now, 12 years on, the J.P. and think, ‘Yes, I can do this.’ Morgan Brexit Project Manager is cy- We depart Largs, which opened in cling 1,000km for People’s Postcode 2013 thanks to the support of players Lottery-supported Ellen MacArthur of People’s Postcode Lottery, on Satur- Cancer Trust, the charity that restored day (4 May) and arrive in Cowes nine his sense of possibility after treatment. days and 1,014km later. “I nearly died. My parents were told I am a keen cyclist, but it’s been a it was 50:50 overnight. I spent a week challenge to fit in as much training as in intensive care, I was unconscious, possible. My partner, Mary, and I have my lungs and liver had failed and I had a one-year-old son, who takes up a a systemic infection. great deal of time, and a full-on job in Even though I’d been feeling pretty financial services. I’ve been cycling the unwell before I was diagnosed, I didn’t 20-mile round-trip to work from our believe I was seriously ill. Suddenly you Beckenham home four times a week don’t know if you’re going to be alive and doing longer rides at weekends. the next week. But I don’t want the ride to be easy, I You're staring down the barrel of am very keen that it’s hard and chal- three years of intense chemotherapy lenging and pushes me outside of my and radiotherapy and all the physical comfort zone. If I complete it with limitations, anxiety, and everything these things being true, I will have a else that comes with treatment. great sense of achievement. If you told Thankfully, I made it through, but I me I would complete such an en- was very weak and had to learn to walk durance feat after my treatment again as there were complications ended, I simply would not have be- with my leg bones from treat- lieved it.” ment. I’d lost belief in what I Players of People’s Postcode Lottery was capable of. have already raised an incredible In 2010, I had the chance £2,325,000 for the Ellen MacArthur to go sailing with the Cancer Trust and Ellen MacArthur Cancer are helping trans- Trust. The charity sup- Mark Stevens, Brexit In 2013 I took part in the famous on and I’ve stayed involved, volunteer- form the lives of ports young people aged Project Manager, J.P. Morgan Fastnet Race. To race on an ocean with ing to support young people like me young people 8-24 to rebuild their confi- no land in sight for almost a week in rebuilding their confidence after across Britain. dence after cancer through realise that perhaps I was ca- non-stop with people I'd never met, treatment. I am also an Ambassador sailing and outdoor adven- pable of more than I thought. working through the night and day on and the Company Secretary. ture trips. I was very unsure To learn a whole new skill was a different shifts, was a big achievement That’s why I couldn’t miss the chance READ MORE ONLINE about going as I was uncertain big deal. Suddenly, things that had for me. My capability was bigger than to take part in the first Ellen whether my legs would be up to it. But maybe seemed unobtainable felt pos- I thought. MacArthur Cancer Trust Charity Cycle Keep up to date on our news at: it was fantastic. sible. It massively enhanced my confi- The Trust is a force for good. It gave Challenge between its two bases in www.postcodelottery.co.uk Coming away unscathed helped me dence to push myself physically. me a really strong foundation to build Largs, on Scotland’s West Coast, and 10 NEWS THURSDAY 2 MAY 2019 CITYAM.COM Guardian in the black for first time in 20 years after turnaround efforts JAMES WARRINGTON be viewed as a major victory for the readers to donate money to fund its company, which has been battling to reporting. @j_a_warrington turn around its struggling finances. The newspaper said it now has THE GUARDIAN has posted a small The results come at the end of a more than 655,000 monthly paying profit for the full year, marking the three-year transformation strategy supporters, as well as an additional first time the media group has been launched by editor Katherine Viner 300,000 one-off contributors in the in the black since 1998. and chief executive David Pemsel in last year. Guardian News and Media (GNM), 2016. They are a significant The Guardian has also slashed which publishes the Guardian and turnaround for the firm’s core news costs by laying off hundreds of staff the Observer, posted a profit of division, which had posted a £57m members, as well as switching from £0.8m in the year to April, up from a loss three years ago. its trademark Berliner format to the loss of 23m the previous year. While the Guardian has opted not more cost-effective tabloid size. While the Guardian’s annual to set up a paywall on its website, it Viner said the results showed profit was marginal, the figures will has launched a campaign asking “Guardian journalism is flourising”. The Guardian made significant losses as it invested into international expansion

BEANCOUNT BOSS Challenger audit firm Regulator starts UHY Hacker Young appoints chairman Adland losing ACCOUNTANCY out as top tech firm UHY Hacker Young has appointed Colin firms tap talent Wright as its new financial advice chairman. Wright trained at EY in JAMES WARRINGTON Trinidad & Tobago and @j_a_warrington joined the ADVERTISING firms are missing out London office of on the best recruits as top talent is market review UHY Hacker scooped up by tech firms, a senior Young in 1996. He industry boss has said. has worked two Nigel Vaz, newly-elected president JAMES BOOTH we ensure that this important sector stints at the firm of the Institute of Practitioners in works well in the future. totalling 19 years. Advertising (IPA), said advertisers @Jamesdbooth1 “We want the market to deliver a should act like startups in a bid to THE CITY watchdog yesterday range of good quality, affordable match the deep pockets and launched a review of the financial advice and guidance services that attractive corporate cultures of tech advice market amid concerns meet consumer needs.” firms. investors are being overcharged. Ian Sayers, chief executive of the “We find it harder to attract the The Financial Conduct Authority’s Association of Investment Companies, best talent, to have the same brand (FCA) review will look at what con- said: “The changes RDR put in place appeal, or to pay as much as the sumers want from the market and were a significant step in the right technology giants and consultancies how the market works to deliver this. direction to improve financial advice that now comprise our competitive The FCA will review how changes to retail investors. set,” he said in his inaugural speech made since 2012, including the retail “Purchases of investment compa- Willis Towers Watson shares yesterday. distribution review (RDR) and the nies by advisers and wealth managers Unveiling his strategy for the next financial advice market review of adviser platforms have increased two years, Vaz said the IPA will (FAMR), need updating. It will publish five-fold since RDR, from £219m in fall after it misses estimates encourage agencies to act like its findings in 2020. 2012 to nearly a billion in 2018. startups and look to develop new It will also examine how new trends “However, there’s still more work to business models. and developments may affect the be done. The majority of advisors are JAMES BOOTH John Haley, Willis Towers The comments compound the future development of guidance and not recommending investment Watson’s chief executive, said: “We disruption faced by ad agencies as advice services. companies to their clients despite @Jamesdbooth1 delivered strong organic revenue tech firms and consultancies take a Christopher Woolard, executive investment companies’ many bene- SHARES in Willis Towers Watson fell growth, reflecting solid demand for growing share of advertising dollars. director of strategy and competition fits. We look forward to continuing to 4.8 per cent last night after it missed our solutions and services across all “In our own industry, we see that at the FCA said: “Consumers and the work with the FCA and contributing earnings estimates. of our core businesses. the value of creativity is in question,” market are changing rapidly, as to the call for input.” The insurance brokerage and “Likewise, we made solid progress Vaz said. “Our ability to make money technology, employment patterns Hugh Savill, director of regulation advisory company posted adjusted in driving profitable growth, as is constrained, as is our ability to and inter-generational challenges at the Association of British Insurers, diluted earnings per share of $2.98 demonstrated by our year-over-year reinvest.” change the way consumers interact said: “The measures proposed in the for the quarter, missing consensus margin expansion. With the The IPA boss, who comes from a with financial services. financial advice market review were estimates of $2.99 per share. disciplined execution of our tech background, called for a “As well as looking at how the supposed to lower costs and narrow Reported revenue was $2.3bn strategy, we remain confident in our reimagining of the role of the ad market has evolved... it’s important the advice gap, but this has not (£1.7bn) for the first quarter, up one ability to drive profitable growth. agency, as more brands opt to take that our work looks ahead to see how materialised in reality.” per cent on the previous year. Shares closed at $175.37. their marketing in-house. Kier secures £253m contract to build Northamptonshire prison for MoJ

ALEX DANIEL Kier said it would start work on Former prisons minister Rory the prison this month, ahead of a Stewart said the project was part of @alexmdaniel 2021 completion date. a plan to build up to 10,000 CONSTRUCTION outsourcer Kier The facility will have seven “modern and decent” prison places has been tasked with building a blocks, accommodating 1,680 to replace old accommodation. Northamptonshire prison that will resettlement people, with “modern Kier major projects director house more than 1,500 inmates, in facilities to encourage Mark Pengelly said the firm would a £253m contract award. rehabilitation among men”. treat the project as an opportunity The Ministry of Justice (MoJ) said It will feature windows with no to invest into the local community, the new facility in Wellingborough bars as part of an MoJ pledge to as part of a bid to “provide a will be on the same site as a former build “an environment conducive lasting legacy for the people of The prison will cost roughly £253m to build prison there which closed in 2012. to rehabilitation”. Wellingborough”. CITYAM.COM THURSDAY 2 MAY 2019 NEWS 11 Trivago’s first-quarter profit rises amid revamp of marketing strategy JAMES WARRINGTON marketing strategy in a bid to than 60 per cent of its revenue from improve the quality of traffic these formats. @j_a_warrington referred to its partner sites. Trivago said it expects earnings for HOTEL booking site Trivago has Chief executive Rolf Schroemgens the full year to be between €50m and posted a sharp increase in told City A.M. the company is looking €75m. profitability in the first-quarter amid to establish a “solid profit base” “We are pleased that we were able a revamp of its marketing strategy. before focusing on growth. to further increase our profitability The firm posted a net profit of Schroemgens added Trivago will and to carry the positive momentum €7.8m (£6.7m) in the three months to ramp up its advertising spend in the into the new year,” said chief the end of March, compared to a net third quarter, at which time it will financial officer Axel Hefer. loss of €21.8m last year, but revenue aim to return to revenue growth. “We believe this positions us well dropped 20 per cent to €208.8m. The firm is continuing to receive to achieve our goal of profitable The hotel search engine has most of its traffic from mobile growth in the second half of the embarked on a plan to transform its websites and apps, pulling in more year.” Trivago is hoping to reach a more targeted audience with its advertising campaigns Investors back CVS raises full- year outlook on Persimmon pay Aetna strength CAROLINE HUMER

CVS HEALTH yesterday raised its full-year profit forecast and after AGM vote reported first-quarter earnings that topped Wall Street estimates due to growth in its Aetna health insurance business, and as drug ALEX DANIEL customer care in March. prices fell within its expectations. Separately, the firm was one of two Aetna, CVS’s health insurance @alexmdaniel caught in a BBC investigation yester- unit, beat analysts’ consensus by BRITAIN’s largest housebuilding firm day, which found new-build homes more than a billion dollars in the Persimmon avoided an investor back- made by Persimmon and Bellway quarter, helped by its accounting lash over executive pay after 92 per have been sold with missing or incor- for lower medical costs than cent of shareholders voted in support rect fire barriers. anticipated during the fourth of the firm’s remuneration report. The lack of barriers, designed to halt quarter. The company was backed by Black- the spread of flames, could be behind The audit has sparked further suspicions that Ghosn misused company money The company, which bought rock, its biggest shareholder, at its the spread of fires that have destroyed Aetna for $69bn (£52.7bn) in annual general meeting yesterday, homes, according to the BBC report’s November, said 2019 cost savings after it disclosed that new boss Dave findings. Without the barriers, fire from the deal were tracking near Jenkinson was paid nearly £25m. and smoke can spread up to ten times Ex-Nissan boss Ghosn ‘racked the high end of its $300m to $350m Blackrock, which owns 5.25 per cent faster. Responsibility for ensuring the range, and that 2020 savings would of Persimmon’s shares, declined to buildings comply with regulations lie likely exceed its $750m target. comment, while the company did not with the house builder. up €11m in suspicious expenses’ The company said a handful of immediately respond to a request for More than 650 Persimmon houses new Healthhub pharmacies comment. were found to have the missing or in- JAMES WARRINGTON between 2009 and 2018, have sparked launched in Houston this year that Persimmon’s previous chief execu- correct barriers. suspicions Ghosn misused company provide healthcare services, such as tive Jeff Fairburn left after the com- The BBC reported a fire started by a @j_a_warrington funds for personal expenses. chronic care management for pany said criticism of his £47.1m pay cigarette at ground level which FORMER car boss Carlos Ghosn The findings, which are reportedly diabetes, have drawn more had hit its reputation. spread to the roof of a Persimmon- racked up costs of €10.9m (£9.4m) in outlined in a summary of the customers than expected. It plans In a trading update, Persimmon built house in Exeter – and spread to questionable expenses including Renault–Nissan joint venture’s audit, to provide details of a national yesterday said it is putting the brakes other buildings around it – kicked off luxury clothing and lavish are a fresh blow for the beleaguered rollout next month. on sales as it looks to confront issues an investigation by the developer international travel, an audit carried car executive, who is currently facing Sales in its health care benefits with build quality and recover from which found missing barriers in 37 out by Nissan and Renault has found. multiple charges of financial unit rose by $16.6bn to $17.8bn the executive pay scandal. per cent of houses on the estate it was The audit highlighted millions of misconduct in Japan. with the addition of Aetna to its Forward sales revenue is £2.7bn, it part of. euros in costs for items including A spokesperson for Ghosn denied operations. said, while in the first quarter of 2019 Some of the issues still have not Cartier watches and a trip to Brazil he had misused company money and Sales of prescription drugs at its that figure rose to £2.8bn. been rectified, and some homes have for the Carnival festival, the Wall said the accusations were part of a pharmacies were hurt as the Persimmon also announced it had still not been inspected, said the Street Journal reported. “well-orchestrated campaign” against company gets paid less for filling launched a review of its culture and broadcaster. The items, which were purchased the former chairman. prescriptions. Reuters Yum Brands beats US forecasts as KFC chicken flies out of its shops

NIVEDITA BALU the restaurant chain competes for been a major growth driver for Yum customers in a crowded market for Brands in the past two quarters, riding YUM BRANDS reported quarterly fast food. on the popularity of its value meals. earnings and same-store sales above “They (offer) cheap, inexpensive The restaurant chain has also Wall Street estimates yesterday, as food and the demand is still there. expanded its delivery in the United KFC recorded its best growth in three But it is not a big point of States, making the most of Yum years, but weaker-than-expected differentiation. You could go to a Brands’ investments in Grubhub. growth at Taco Bell weighed on the (convenience) store and get the same But Taco Bell’s same-store sales company’s shares. thing,” said Tim Powell, a restaurant rose four per cent in the latest Taco Bell recorded slowest growth analyst at Chicago-based Q1 quarter, falling short of the 4.47 per in same-store sales in three quarters Consulting. cent estimated by analysts, according Customers are flocking to KFC’s shops despite heavy competition and missed analysts’ expectations, as The Mexican-inspired chain has to estimates from Refinitiv. Reuters 12 MARKETS THURSDAY 2 MAY 2019 CITYAM.COM

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Oil and exports BURFORD CAPITAL P Wall St drops 1,800

1,700 after Fed chair 1 May 1,550 drag FTSE index 1,600 skips rate-cut

1,500 S STOCKS ended lower Uyesterday and the S&P 500 25 Apr 26 Apr 29 Apr 30 Apr 1 May snapped a three-day streak of record high closes as comments from as LSE shines Litigation funder Burford Capital was once the darling of the Aim market. Broker Federal Reserve chairman Jerome Canaccord Genuity however has given the stock a “sell” rating, arguing it is Powell appeared to dampen hopes overpriced and may have to raise further debt or equity. The analysts challenge the central bank could move later this Burford’s return on an invested capital claim of 85 per cent. They also highlight 20 year to cut interest rates. ONDON’s FTSE 100 dipped to a Apple after forecast-beating results areas of risk and concern which they believe are under-appreciated. The analysts In its policy announcement, the Fed one-month low yesterday as oil thrust up technology stocks. say they would expect to see either further fundraising or lending to be curtailed. It held rates steady as expected and majors dived after US invento- Among big fallers on UK’s blue-chip trims its target price for Burford to 1,196p, down from a previous target of 1,543p. struck a cautious tone on inflation. Lries bulked up and a rise in index was takeaway group Just Eat But Powell, speaking following the pound knocked exporters, but with a near three per cent drop after Fed statement, said a decline in gains in Sainsbury’s and LSE following JP Morgan called European rivals FERREXPO inflation this year could be due to upbeat results helped cushion the Delivery Hero and Takeaway.com more transitory factors. fall. attractive. 280 P That seemed to throw cold water on The FTSE 100 ended 0.4 per cent Education group Pearson lost 2.1 per views by some in the market that the lower and the more domestically-fo- cent after news of a planned merger 260 Fed might make a preemptive bid to cused FTSE 250 inched down 0.1 between Cengage and McGraw 240 head off lower inflation or a recession per cent. Hill, with Liberum analysts 1 May by cutting rates. Shell shed 1.4 per cent to a calling the planned deal a 220 226.50 As Powell spoke, traders of US short- month low and BP gave “major headache” for term interest rate futures began 200 up 2.1 per cent, as crude Pearson. trimming bets the Fed will cut rates prices weakened after 180 before the end of the year. US oil inventories rose Takeaway giant Just Eat “The fact that he’s basically saying more-than-expected, fell yesterday as its 25 Apr 26 Apr 29 Apr 30 Apr 1 May ‘we aren’t closer to a cut then we were with output reaching a rivals did strongly before’ made the market sell off,” said new record of 12.3m Iron ore miner Ferrexpo has had a tough time of late, after a probe into its Ukrainian Michael Antonelli, market strategist at barrels per day. Sainsbury’s jumped 4.3 charity partner raised concerns about the possible misappropriation of funds. Robert W. Baird in Milwaukee. As sterling rose to multi- per cent after the super- Auditor Deloitte quit last week after having given a qualified opinion on the miner’s Stocks had been higher for much of week highs with lingering market group's underlying twice-delayed results. However, analysts at Liberum say fears are overdone and the session and the S&P 500 hit an hopes of progress in cross-party full-year profit beat market esti- thinks investors could pick up a bargain after shares fell 31 per cent over the past two intraday record early, driven by a jump Brexit talks and ahead of Bank of Eng- mates and it said it would accelerate weeks. “We expect the shares will rebound,” they say. The analysts upgrade the stock in shares of Apple. The company late land interest rate meeting today, ex- investment in its technology. to a “buy” rating and boost their target price to 250p from 185p. on Tuesday reported quarterly results porter companies bore the brunt as London Stock Exchange climbed 3.4 that beat Wall Street estimates much of their revenue is earned in per cent after it reported higher quar- despite a record drop in iPhone dollars. terly income, as its clearing and infor- HASTINGS revenue. British American Tobacco, Astrazeneca mation services businesses grew It also announced plans for a new and Glaxosmithkline were among the strongly against what it called a chal- 230 P $75bn (£57.3bn) share buyback and biggest drags. lenging market backdrop. raised its cash dividend by five per Contrary to the mood in Britain, the Lloyds rose 1.6 per cent after it cut 220 191.40 cent. Apple’s stock ended up 4.9 per S&P 500 index notched a fresh record its target for its Common Equity Tier 210 1 May cent. The company briefly rejoined high on the Wall Street as gains in 1 ratio. the trillion-dollar club during the 200 session, before closing at a market capitalisation of $992.7bn. 190 TOP RISERS FTSE Apple has been jockeying with 180 Microsoft and Amazon for the title of 1. Paddy Power Up 4.28 per cent 7,500 most valuable US company as all 2. Sainsbury’s Up 3.91 per cent 25 Apr 26 Apr 29 Apr 30 Apr 1 May three have passed the symbolic 3. LSE Up 3.43 per cent 7,450 trillion mark. The analysts at Peel Hunt have trimmed their target price for insurer Hastings from The Dow Jones Industrial Average TOP FALLERS 7,400 1 May 255p to 250p and kept it at an “add” rating. However, they are not too down on the fell 162.77 points, or 0.61 per cent, to firm , which they say shows “better underwriting discipline than it is getting credit 26,430.14, the S&P 500 lost 22.1 1. Micro Focus Down 5.07 per cent 7,385.26 for”. They say “earnings volatility reflects cycle management in our view and we points, or 0.75 per cent, to 2,923.73 2. Just Eat Down 2.72 per cent 7,300 remain positive on the stock”. They praise Hastings’ investment in its digital platform and the Nasdaq Composite dropped 3. Antofagasta Down 2.18 per cent which they say “gives the company a significant advantage in the current market 45.75 points, or 0.57 per cent, to 25 Apr 26 Apr 29 Apr 30 Apr 1 May environment”. 8,049.64. CITY MOVES WHO’S SWITCHING JOBS

SANTANDER UK development and implementation of the private financial services, Patrick joins Intertrust from BRISTOWS Santander UK has announced bank’s strategy across the region, as well as the Citigroup where he was head of fund services, Ireland London-based law firm Bristows has announced the the appointment of Ben Covey shaping of its brand and culture. Prior to joining and head of offshore sales. Prior to that he spent eight promotion of senior associate Claire Smith into the as head of private banking, Santander, Ben spent over a decade at Barclays years at JP Morgan where he held several roles, latterly partnership, effective 1 May 2019. Claire is a member of reporting directly to Charlotte Wealth supporting private clients, charities and executive director, global head of fund services client the firm’s commercial and IP transactions practice. The Platts, head of wealth. Ben will pension funds. His roles included discretionary strategy. He has held pre-approved controlled four-partner group acts for clients such as Astrazeneca, take up his position from 1 portfolio manager, private banker and regional head in function positions with the Central Bank of Ireland De Beers, Johnson & Johnson, and The Francis Crick May and will be responsible the south east. since 2015. Reporting to newly appointed chief Institute. Claire has over 15 years’ of experience for the direction and growth of commercial officer Ian Lynch, Patrick will be advising clients on collaboration, licensing and other the private banking INTERTRUST responsible for leading Intertrust’s global fund strategy arrangements to develop and commercialise their proposition for Santander UK. Intertrust, a global leader in providing expert and expanding its client base among private capital technologies, brands and other valuable intellectual With over 20 years’ experience administrative services to clients operating and fund managers and investors in Europe, North America property assets. Claire has a unique background in life in the UK wealth management industry, Ben was most investing in the international business environment and the Asia Pacific region. He will also continue to sciences having held quality assurance and project recently divisional manager for south west and central has announced the appointment of Patrick O’Brien as develop Intertrust’s tailored and holistic funds offering management roles in Abbott Laboratories' medical at Santander Private Banking, where he oversaw the global head of funds. With over 27 years’ experience in and focus on delivering a market leading solution. device business prior to switching to a law career.

To appear in CITYMOVES please email your career updates and pictures to [email protected] CITYAM.COM THURSDAY 2 MAY 2019 MARKETS 13 14 OPINION THURSDAY 2 MAY 2019 CITYAM.COM FORUM EDITED BY RACHEL CUNLIFFE LETTERS Trump’s UK visit has exposed TO THE EDITOR Sound too good a nest of political hypocrites to be true?

[Re: Financial investment fraud cases O SOONER had the an- he has launched a thousand party in the UK’s history, with re- jumped 74 per cent in 2018] nouncement been made Youtube “order, order” moments Alan peated instances of Labour mem- The FCA’s latest research confirms our that President Donald has, however, had the unfortunate Mendoza bers’ hostility to Jews played down suspicions that investors get lured into Trump would be making a effect of encouraging him to exag- or excused under his leadership – scams all too often in the hope of N generating greater returns. state visit to the UK in gerate his own importance. apparently at times with his of- June than a predictable flurry of This may just about be bearable in fice’s complicity. Even the savviest of investors find it hard criticism emerged from a group of matters of House of Commons pro- It is also the very same Corbyn to question the truth when the promise of the usual suspects. cedure, where he most recently de- who has in the past carried a wreath a good ROI is presented to them. Leading this crowd of dissenters railed Theresa May’s Brexit plans by at the graves of Palestinian murder- Investors need to adopt an “is this too who have said that they will refuse citing precedent dating from 1604 ers of Jews, endorsed an antisemitic good to be true” attitude and ask to attend a state dinner with our ho- in justifying his intervention in try- mural, and written a foreword to themselves: why would one firm be able to noured guest were a curious trio: ing to prevent a vote. Seeing as Bercow John Hobson’s Imperialism: A Study offer such a great return on investment, Sir Vince Cable, John Bercow, and Je- But does anyone outside of the – which contained gems about the when other mainstream companies can’t? remy Corbyn – representing, in Bercow household believe that the has played host to “control” of the “policy of nations” The FCA continues to work to raise turn, irrelevance, self-promotion, speaker has any meaningful role to China’s despotic exerted “by men of a single and pe- awareness of this growing problem – and hypocrisy of the first order. play in foreign policy by dictating culiar race, who have behind them promoting what investors should be It is nobody’s fault if they have for- which of Britain’s allies should be al- President Xi Jinping, many centuries of financial experi- looking for to understand whether a firm is gotten who or what Sir Vince repre- lowed to speak to parliamentarians? ence” – all the while claiming that FCA-regulated, and most importantly, sents in British politics. So abject This is certainly not the view of his intervention is he didn’t know what he was doing. what types of investment are covered by has been his failure to break Bercow’s House of Lords equiva- not only offensive, All this leads to the inescapable the Financial Services Compensation through electorally at a time when lent, the lord speaker. The mild- conclusion that if Corbyn is happy Scheme. However, investors need to take Brexit has dominated debate, when mannered Lord Fowler was so but inexplicable to boycott Trump’s dinner on such on responsibility themselves. his is the only party unequivocally appalled by Bercow’s reiteration grounds, he is essentially stating Without improved awareness among the backing Remain, that even he has that he would not permit Trump to that he himself is unfit to be general population, wrongdoers – based recognised it. address parliament that he has ac- Britain’s Prime Minister, given his inside and outside the UK – will continue to He will shortly be resigning and cused him of dishonouring the only offensive, but inexplicable. own long litany of offences against prey on UK investors. disappearing into the political memory of US war dead. Which brings us to the final and decency in the same vein. Zoe Newman, managing director, global ether, in what will hopefully be a For the President is visiting Europe most troubling case: that of Corbyn. The British electorate may wish to investigations firm Kroll long and happy retirement. to commemorate the 75th anniver- The leader of the opposition cited ponder this when the next opportu- In contrast, the man Cable has sary of the D-Day landings, and this as part of his reasoning for declin- nity comes to test this hypothesis. slighted is only three years younger shared Anglo-American endeavour ing dinner with the President that President Trump is the leader of than him and – on current trends would surely have been the basis for Trump “uses racist and misogynist our closest ally, of a country with BEST OF – likely to win a second term as the any parliamentary comments. rhetoric”, and should therefore not which we have a historic relation- TWITTER most powerful political leader in Americans gave their lives to help have been invited on a state visit. ship that we presumably would the world. It is safe to say that liberate Europe from Nazi tyranny. Yet this is the same Corbyn who in- like to nurture further. It is per- BREAKING: Defence Secretary Gavin Trump will not lose much sleep Their sacrifice should be honoured famously described the racist terror- fectly possible to salute the rank Williamson has been SACKED in about missing out on the pleasure through an address by their cur- ist organisations Hamas and even if you dislike the man. relation to the Huawei leaks last of dining with Sir Vince, if indeed rent President, not impugned by an Hezbollah as “friends” in 2009, and He should be welcomed with open month. Looks like investigation has he knows who he is. insult to him. who has publicly supported extrem- arms and accorded the respect that laid the blame at his door for leaking Bercow is in a different category. Seeing as Bercow has previously ists of various kinds, ranging from his position – and our understand- details of National Security Council The speaker of the House of Com- played host to China’s despotic Pres- the IRA to Palestinian hate cleric ing of the centrality of the US to the meeting. mons enjoys some fame in the US, ident Xi Jinping – an autocrat guilty Raed Salah. vitality of the free world – deserves. @PaulBrandITV owing to his outlandish displays of presiding over massive human It is also the same Corbyn who has while chairing an often unruly rights violations – during his speak- presided over the worst anti- £ Alan Mendoza is executive director of Gavin Williamson has carved his name House of Commons. The fact that ership, his intervention here is not semitism crisis in any political the Henry Jackson Society. into history as the first – and probably only – person ever to actually be caught by a government leak inquiry. @DPJHodges

Williamson’s career has been meteoric in the traditional sense, in Want Britain to retain its entrepreneurial that he has crashed to earth in a moment of needless destruction. crown? Bring back the post-study visa @HackBlackburn So that’s now a Defence Secretary that leaks government secrets, a ARLIAMENT is taking back It turns out that there are lots of tractive for international students Transport Secretary that employs control – and not just of wannabe entrepreneurs in our in- Philip than Australia, Canada, or even the ferry firms with no ferries, a Foreign Brexit. Conservative MP Jo ternational student population. A Salter US. That has long-term conse- Secretary that doesn’t know what PJohnson and Labour MP survey of international students we quences. Britain used to be top in country his wife’s from, a Culture Paul Blomfield have bridged undertook with the NUS revealed terms of the number of world lead- Secretary that doesn’t read the the aisle to introduce an amend- that 42 per cent intend to start their ers who passed through our univer- papers... (1/6789) ment to the Immigration Bill. own business following graduation. sities. Last year, we were knocked @TiernanDouieb The primary aim is to ensure that In Silicon Valley, over half of all en- off the top spot by the US. the number of international stu- gineering and technology compa- Public opinion has shifted notice- I guess he finally succeeded in starting dents cannot be capped by the gov- nies have at least one foreign-born ably in favour of immigration since a war. Unfortunately, it was with the ernment in order to comply with founder, with the majority initially report, the average non-EEA student the Brexit vote and Windrush scan- cabinet office. the net migration target without moving to the US to study, not delivers a net fiscal return for the dal. Increased fees, unnecessary reg- @MarinaHyde parliamentary approval. But it also work. But entrepreneurs need time country of over £5,000 a year in ex- ulations, unlawful expulsions, and calls for the restoration of the two- to do the market research, develop cess of native residents. anti-immigrant rhetoric have As in Westeros, so in Westminster, “the year post-study work visa for inter- key contacts, and spot an opportu- Through its industrial strategy, the plagued immigration policy and perception of disloyalty can damage a national graduates. nity before taking the leap. government is focused on building practice for too long, in pursuit of hopeful’s chances among the those Before this visa was scrapped in A proper post-study work visa upon our comparative advantage in an elusive net target that few MPs – who play the role of kingmakers,” 2012, international students were would give international graduates key industries. We have many of the apart from the Prime Minister – ac- writes @DrAlanWager on the able to stay for two years following the necessary time to know world’s best universities, but we’re tually believe in. prospects for contenders to succeed graduation. whether they could be Britain’s stymieing them by restricting the in- Reinstating the post-study visa Theresa May as Tory leader. Now, graduates are turfed out be- next great immigrant founder. come they can bring in from foreign would help reverse this damaging @UKandEU fore they have time to test out the International students contribute students and their ability to attract trend. MPs from all parties, univer- job market, build a network of con- massively to the UK’s public fi- the very best and brightest – many of sities, businesses, and the entrepre- Extinction Rebellion activists describe tacts, or get to grips with what they nances. As the Migration Advisory whom would stay within academia neurial ecosystem should get meeting with Michael Gove as want to do next – whether that’s Committee – the independent, to maintain their reputations for behind this critical amendment. “disappointing”, as Michael Gove was convincing an employer to sponsor non-departmental public body that cutting-edge research. there. them, returning to academia, or advises the government on migra- As a result of our misguided immi- £ Philip Salter is founder of The @haveigotnews applying for the new startup visa. tion issues – concluded in its recent gration policies, we are now less at- Entrepreneurs Network. CITYAM.COM THURSDAY 2 MAY 2019 OPINION 15

WE WANT TO HEAR YOUR VIEWS › E: [email protected] COMMENT AT: cityam.com/forum :@cityam Stop arguing about expanding DEBATE Heathrow – time to get building At $1.5bn, is the loss-making plant burger firm Beyond Meat HANKFULLY for the UK econ- Second, we must greatly improve omy, the High Court yester- Jasmine public transport to all our airports, in- over-valued? day quashed a challenge Whitbread cluding Stansted, Gatwick and City. Tbrought against the govern- Heathrow will have Crossrail (albeit a ment’s decision to expand couple of years later than expected), For many, Beyond Meat’s IPO would Heathrow Airport. but other rail links must be improved. seem to mark the perfect “market top” No one questions the need for The Department for Transport has moment. A company producing a scrutiny. Indeed, detailed considera- sat on proposals for new links, includ- cutting-edge product, with ongoing YES tion for how to manage the impact of ing plans which would be wholly fi- losses and the risk that it may never the expansion on local people – which nanced and delivered by the private make a profit, is seeking to become CHRIS BEAUCHAMP for some will be significant – lies process will require the airport to sector. Let’s stop dithering and get publicly traded. ahead through the planning process. spell out how it will meet the commit- these projects off the drawing board Like so many new firms, it has yet to the firm will face stiff competition from But it is time to draw a line and stop ments it has made to the government and spades in the ground. make any money, with losses each year much bigger rivals, which could easily arguing about the principle of and local communities to mitigate Third, we must show global leader- since its foundation. Investors would be see it overtaken by those with whether or not to expand Heathrow, the negative impacts that arise from ship in tackling aviation emissions, buying into a company where hope is economies of scale that allow them to and focus on the practical matters any big new infrastructure scheme. which contribute to climate change. one of the main drivers for the future. produce more at lower prices. that will deliver a new runway that First, we must grasp the challenge of It’s all very well to harrumph about Leaving aside the possibility that it will Changing the world is one thing, works for the entire country. poor air quality, which requires more the disruption caused by climate change consumption habits, investors being a successful investment is The decision to expand this airport than just Heathrow alone taking re- change protesters, but they have a rushing to buy in the wake of the IPO something else – and it is not clear that follows decades of consultation, ex- sponsibility. The problems of air pollu- point which we need to address head- are likely to see their investment suffer Beyond Meat yet falls into the latter amination, and, quite frankly, prevar- tion around the airport are primarily on. This means stronger government in value in the short term. There are category. ication from previous governments. the result of vehicle emissions. support and incentives to invest in positives, such as the existing Businesses around the country have The mayor of London has made the cleaner fuels and engines – including agreements with some restaurant £ Chris Beauchamp is a senior market been left wondering when the jobs city a world leader in tackling emis- cutting-edge electric power for planes. chains and steadily rising margins, but analyst at IG. and growth promised by new connec- sions through the ultra-low emission It has now been two years since this tions to the rest of the world will fi- zone, which came into effect in cen- expansion was unanimously recom- nally take off. tral London just last month. We also mended by the independent Airports’ For too long, the UK has failed to in- have a successful congestion charging Commission – a decision backed by Valuing a loss-making company which vest enough in infrastructure – in the zone in central London. the government, parliament, regional does not know when it will report a roads, railways, and airports that will When it comes to Heathrow, we airports, trade unions, and thousands profit at $1.5bn sounds punchy, to put keep this country moving – and sup- should look at how such charging of British businesses that will benefit it mildly. But in the case of Beyond NO port the jobs and economic growth schemes might be adapted to incen- from the economic boost that a new Meat, it makes sense. vital to our future prosperity. tivise the worst polluters to invest in runway will bring. According to a recent survey, the OLIVIA UTLEY With Heathrow, we now have a cleaner modern vehicles, or leave the Expansion at Heathrow promises number of vegans in Britain has scheme that will be financed privately, car at home when going to the airport. tens of thousands of new jobs around increased by more than 360 per cent sooner rather than later. Beyond Meat is without recourse to the taxpayer, and the country, and billions of pounds of over the past decade, and the trend in one such company. Its products are ultimately paid for by those people new growth, particularly as we open the US is even more extreme. Given that already available at 30,000 outlets in who will benefit from expansion: Expansion promises up routes to emerging markets. Let’s the movement is being led by the the US and overseas, and eminent food Heathrow’s passengers and the UK’s tens of thousands of now banish those Brexit blues and under-35s, it seems almost certain that critics are queueing up to rave about it. importers and exporters. We should press forward with this vital national “plant-based eating” is here to stay. When the vegan revolution begins in be biting investors’ hands off, not giv- new jobs and billions project that will show the world that That means that the global meat earnest, Beyond Meat will more than ing them pause for thought about in- of pounds of growth Britain remains open to business. market, which is worth a mouth- live up to its valuation. vesting in our competitors instead. watering is $1.4 trillion, is ripe for There are – rightly – challenges £ Jasmine Whitbread is chief executive of disruption. Any company ready to take £ Olivia Utley is deputy editor at ahead for Heathrow. The planning London First. a bite out of it can expect huge rewards TheArticle.

Editorial Editor Christian May | Deputy Editor Julian Harris Distribution helpline Our terms and conditions for external Josh Martin Rachel Cunliffe contributors can be viewed at Fountain House, News Editor | Comment & Features Editor If you have any comments about Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres the distribution of City A.M. cityam.com/terms-conditions 3rd Floor, 130 Fenchurch Street, Billy Breton London, EC3M 5DJ Certified Distribution Creative Director please ring 0203 201 8955, or email [email protected] Tel: 020 3201 8900 from 25/02/2019 till Printed by West Ferry Printers Ltd, Email: [email protected] 31/03/2019 is 86,073 Commercial Sales Director Jeremy Slattery | Head of Distribution Gianni Cavalli Kimpton Rd, Luton LU2 0SX 16 FEATURE THURSDAY 2 MAY 2019 CITYAM.COM OFFICE POLITICS The new boss who rocked the boat

leadership transition. When your chief exec jumps ship, how can By talking about the plan for the fu- ture (even if it’s only a rough idea), you manage staff through the change? you can also give people a sense of control, which in turn helps create HEN Royal Bank of Scot- Adrian more certainty. land announced that its chief executive Ross Moorhouse A SENSE OF NORMALITY McEwan was stepping BE MORE Of course, once the new chief exec of down, it didn’t take long LIKE... the business is identified, they also forW the news to turn to talk of remu- have a role to play in keeping the boat neration packages and successors. Monzo Bank steady. It is really important that he or This response is to be expected, but it Free she spends at least three months fo- does leave an important question cused on understanding the business unanswered: how will employees at This is Monzo. and getting to grips with its culture, the front line of the firm be affected? example, explains why people stay in a Monzo has a before making any changes. Choosing the right successor is im- job they dislike. Resistance to change, really good app. This will help people ease into the portant, but how leadership change is however big or small, is natural. Monzo doesn’t change by creating a sense of normal- managed from an employee perspec- This is something that we are all use archaic ity. It also ensures that any changes tive is key to keeping the boat steady. aware of, but during a leadership technology or made further down the line are In fact, this can be crucial to long- transfer, it can have a significantly ad- have really rooted in a true understanding of the term business success. verse impact on employee engagement unintuitive culture, and therefore have a greater and company performance. systems in place chance of success. AVERSION TO CHANGE With RBS boss who will take over the business in that make it One big mistake a new leader can Even if most employees never worked THE COMMUNICATION VOID Ross McEwan the future. impossible for make is to hide away from their work- directly with the former chief execu- So how do you remedy this uncer- resigning, it Don’t just present people with infor- customers to get force. In their first months as chief ex- tive, the announcement of their depar- tainty in the interim of not having a didn’t take long mation, but actively involve them in a good service, ecutive, it’s especially important that ture can still create a communication chief executive? for news to the conversation. nor does it rip they are visible in the business and on void that leads to uncertainty. When people don’t know some- turn to talk of Setting up informal lunches and ar- you off with the front line, talking to their employ- Staff members will question what thing, they will often create their successors ranging more structured Q&A ses- exchange rates ees. This will help them show their the new boss will be like, or worry own story to explain what’s going on, sions will give employees the when you’re support for their new colleagues and how the change will impact their job. and that leads to unhelpful confu- opportunity to talk and ask questions going abroad. ensure that their transition is as If these questions go unanswered, it sion and inaccurate rumours. about what the future may hold. Monzo is smart. smooth as possible. causes distraction, taking attention Business leaders must steer the con- Communication is not just a water- Other banks A leadership change doesn’t have to away from the day job. versation by having clear and consis- fall where information is cascaded should be more rock the boat. Because of our innate aversion to un- tent communication about the from the top of an organisation. In- like Monzo. certainty, humans tend to respond leadership change – even if it’s just stead, information should continually £ Adrian Moorhouse is managing director negatively to change – a fact that, for to acknowledge the uncertainty of circle round throughout the whole at Lane4. 17 LIFE&STYLE THURSDAY 2 MAY 2019 CITYAM.COM TECHNOLOGY EDITED BY STEVE HOGARTY

GADGET ALIENWARE AREA 51-M Days Gone invites you FROM £2,199, DELL.COM hhhhh | BY STEVE HOGARTY The Alienware Area 51-m gaming laptop requires not one, but two to a zombie nation power adaptors to fuel its high-end internal components alongside its full-fat, zero-compromise graphics card. Plugging both into the mains at once and switching the thing on, Sony’s undead you’d expect all of the lights in the house to dim slightly, and a man exclusive is an from the electricity company to come round to make sure you’re not unexpected hit trying to hook up the entire cul-de- sac to your living room socket. But such ravenous leccy demands GAME are a necessity of a laptop that DAYS GONE delivers the performance of a full PLATFORM: PS4 desktop PC. The Area 51-m is a proud beast, weighing almost four hhhhi | BY DOUGIE GERRARD kilos and more than an inch and a half thick in places. Round the back t times the plot of Days Gone it sports a vast ventilation grille that can be difficult to track. You wouldn’t look out of place on a play as Deacon, a hardass Mercedes AMG. When going at full Abiker navigating a zombie-in- pelt it sounds like it might lift off, as fested open world. For the though it wants to return to the most part you’re on a quest to find planet it came from. If you dropped your missing girlfriend Sarah. this laptop on a small child, it would However, your motorcycle parts are very likely kill them. nicked early on (Deacon’s bike func- The insides are customisable, and tions as the game’s second lead char- unlike most other laptops can be acter; personalising it is half the fun), upgraded over time as new and and much of the action consists of better components are launched. taking on missions at nearby camps But even in its basic configuration in order to rebuild it. you’ve got a 9th generation Intel The early missions are standard sur- Core i9 processor and an NVIDIA vival-game fare, a slightly monoto- GeForce 2070 graphics card that nous mix of bounty-hunting and comfortably makes the Alienware rescue jobs. They become more inter- Area 51-m the most powerful esting when Deacon begins investigat- gaming laptop you can buy. ing the shadowy government agency For typical users this laptop is NERO, which is in charge of supplying impractical overkill, an obscene act aid to the beleaguered countryside. ways seemingly unconnected by any However, the nature of zombie But the real prize is the game’s beau- of technological ideation, like a one- From here on, the game is pleasingly guiding motivation. Early on, he per- games is such that a dud lead can be tiful open world, which unfolds in off concept supercar or a drawing of difficult, with stealth missions espe- forms a mercy killing; later, he mur- redeemed by a satisfying enemy. You dramatic and surprising ways. The a space station. A gaming laptop not cially requiring almost total mastery ders in cold blood while sermonising don’t need to be engrossed in a char- prototypical zombie landscape of made for man, but for history. to complete. on the uselessness of mercy in an un- acter’s arc to enjoy using him to mas- bombed out cars and abandoned gas Unfortunately, the action is under- forgiving world. We’re supposed to be- sacre hordes of the undead. The stations is supplemented by vast served by a hacky and uninteresting lieve that he’s motivated by a desire zombies – sorry, ‘freakers’ – are clev- green forests and snow-capped moun- central character. When we are intro- to see Sarah again, but there’s noth- erly and lovingly designed, with dif- tains. Exploring these diverse land- duced to Deacon, he is sending his ing meaningful to be gleaned about ferent enemy types distinguished in scapes on your trusty motorcycle wounded girlfriend to safety in an aid their relationship from the few brief intricate ways that go far beyond the offers something uncommon to zom- helicopter, refusing her pleas to come flashbacks we’re given of it. Deacon is standard big and slow/small and fast bie games: moments of serenity. Days with in order to stay and help his sim- a bundle of contradictions, none of dichotomy. My favourite were Newts, Gone has had the biggest physical ilarly wounded friend Boozer. These them ever amounting to character. A infected children who don’t attack on sales launch of the year so far, and de- are the actions of a Mensch, but over couple of hours in, I realised I was sight, only becoming aggressive if you spite occasional bugs and imperfec- the rest of the game Deacon acts in more invested in his bike than in him. invade their turf. tions, it deserves its crown. A bit of the old ultraviolence in Mortal Kombat 11 GAME from its contemporaries is its classic heroes and villains from the enthusiastic indulgence in past to the present. MORTAL KOMBAT 11 gratuitous, edgy violence. Blood and This iB-movie schlock provides an PLATFORMS: XBO, PS4, PC, SWITCH guts are spilled liberally across the opportunity for developer screen as you decapitate and NetherRealm to revive fan favourite hhhhh | BY LUKE GRAHAM disembowel your opponent using characters who’ve been killed in Mortal Kombat 11 marks the latest cinematic Fatality moves. earlier titles, unpick the game’s instalment in this long-running The gore may be too much for convoluted story, and replay the series of over-the-top fighting games gentle souls, but the onscreen greatest hits in a way that allows it that was originally launched in violence is so ridiculous that it to both satisfy long-time fans and arcades back in 1992. shouldn’t be taken seriously. Some welcome newcomers. For the unfamiliar, Mortal Kombat examples: a man uses his hat as a A story mode lasts about five involves magicians, monsters, and buzzsaw. A movie star bludgeons hours and lets players experience martial arts masters from different opponents with a knock-off Oscar most of the game’s 25 playable worlds duking it out in a series of trophy. Two colour-coded ninjas use characters. A Tower mode has you gentlemanly one-on-one fisticuffs in frost and fire powers like they’re fight through a series of opponents, an eternal battle of good versus evil. rejected characters from Power and a tutorial system helps you Much like other stalwarts of the Rangers. This is Looney Tunes-level graduate from button mashing to genre, such as Street Fighter, the ultraviolence, but with photo- combo master. There’s plenty of game requires players to master realistic graphics. single-player content before you ever timing, strategy, and intricate MK11 continues the story since feel the need to venture online and button combinations – or to just the series’ reboot in 2011. Here, a fight other players. mash the controller until you punch time-travelling god called Kronika As brilliant as it is bloody, Mortal your opponent to death. seeks to change history and wipe out Kombat 11 is the best fighting game What sets Mortal Kombat apart the goodies, and brings several in years. 18 SPORT THURSDAY 2 MAY 2019 CITYAM.COM MESSI MAGIC Not for the first time, Barca’s genius No10 turns a crucial tie on its head, writes Felix Keith

HERE IS such a thing in foot- fielder, looked like a fish out of water which opened the scoring from Jordi made a cunning substitution to bring ball as scoring at the right BARCA LIVERPOOL leading the line. Alba’s cross and it was he who pro- on Nelson Semedo and nullify Liver- time. After 74 minutes Liver- As part of four changes Klopp also vided the foil his opponents so lacked. pool’s left before Messi swung the Tpool were cursing their luck decided to hand Joe Gomez his first If there was any doubts about his pendulum in the opposite direction. but content with a 1-0 score start since breaking his leg against bottle playing against his old team, Firmino then had a shot cleared off line they could take back to Anfield. Burnley on 5 December, with the de- his passionate goal celebration, spats the line and Salah slammed the re- Eight minutes later they were head- fender taking over from the more dy- with Alisson and Gomez and booking bound into the post as the away side ing home with their tails between namic, attacking threat of Trent for dissent showed Suarez didn’t realised it wasn’t to be their day. their legs. The architect of such a de- Alexander-Arnold at right-back. change his game one iota. 3 - 0 OPEN SEASON mise was, not for the first time, Lionel Suarez (26’), Gomez is a solid defender, but of- Messi. Messi (75’, 82’) fered little going forward, with Liver- CHANCES MISSED While it made for a brilliant specta- As per usual on Champions League pool’s flanks heavily weighted On another day Liverpool could easily cle, Liverpool’s desperation also made nights like this Barcelona’s majestic towards Andy Robertson on the left. have gone home with at least two for a wide-open game which suited No10 wrote new records, scoring his blow for Liverpool, which will likely away goals. While they were enterpris- their opponents. With Messi pulling 47th and 48th goals of the season in prove a knock-out one. SAME OLD SUAREZ ing without creating much in the strings Barca frequently tore up the contrasting fashion to bring up 600 Luis Suarez used to be an Anfield idol. first half, besides an opening for Sadio pitch in search for more goals. for his club and make it 26 in 33 KLOPP’S DECISIONS You wouldn’t have guessed it watch- Mane from Jordan Henderson’s ball, Twice in injury-time they botched games against English clubs. Hindsight is a wonderful thing and ing the Uruguayan striker last night, they were absolutely dominant for a breakaways, with Suarez spurning a If Messi’s first was the easiest he’ll Jurgen Klopp may well reflect on his as he scrapped, argued, pleaded and period after the break. three-on-one chance before substitute ever score – a rebound in front of an decision to play Georginio Wijnaldum charged around the Camp Nou pitch. Marc-Andre ter Stegen had to be at Ousmane Dembele scuffed a better unguarded net – his second was right as an uncomfortable false No9, with Before the game Suarez had en- his best to keep out placed attempts one with the last kick of the game. from his genius playbook: a picture- Roberto Firmino not fully fit. dured a quiet Champions League cam- by James Milner and Mohamed Salah Ultimately they will be satisfied perfect 30-yard free-kick laser-guided A different move may not have paign with no goals from 36 shots, before Milner shot straight at the with three goals to take to the away straight into the top corner. stopped Messi, but it may well have but he was on it from the word go Barca keeper from a brilliant move leg at Anfield but in truth Klopp’s After a performance of heart, fight helped conjure some crucial away against his former club. It was his per- down the right. But Barca rode the gung-ho gambling could have en- and no little quality it was a gutting goals. Wijnaldum, a capable mid- fectly-timed run and deft finish storm and manager Ernesto Valverde sured the tie was utterly put to bed. CITYAM.COM THURSDAY 2 MAY 2019 SPORT 19

SANGUINE SARRI London rivals seek Chelsea travel to play Eintracht Frank- furt in a less fraught situation, but salvation in the with plenty of their own concerns. CRUNCH TIME The Blues have also been operating at Europa League less than full capacity and remain worryingly reliant on Eden Hazard. with their top four Just like Arsenal, Tottenham and Manchester United, Maurizio Sarri’s hopes in jeopardy, IN EUROPE side have stumbled in the league, al- beit in less dramatic circumstances, writes Felix Keith drawing with United and Burnley after defeat by Liverpool. RSENAL and Chelsea face With a two-point cushion, the other different opponents in their top four contenders struggling and Europa League semi-finals games against Watford and Leicester this evening. Valencia and to come, Sarri doesn’t sound too con- Eintracht Frankfurt are dif- cerned. ferentA propositions and will pose dif- “We are fighting for the top four and ferent questions, but in many ways in semi-final of the Europa League. the London rivals are in the same We have done a good season,” he said. boat. “Now we need to take two very impor- Like so many seasons before, their tant targets.” respective campaigns have boiled down to one major objective: qualifi- cation for the Champions League. The Europa League is a laudable tro- phy to win, but it remains very much in the shadow of its bigger, most pres- tigious and, crucially, more fruitful The fact the sibling. Yet the fact the winner is granted safe passage into the prom- winner is granted ised land means it remains uniquely desirable. safe passage to Considering the precarious posi- the promised land tions Arsenal and Chelsea occupy in the Premier League – teetering on the means it remains precipice, straddling the fine line be- tween the harsh black and white na- uniquely desirable ture of success and failure – their European adventures carry great sig- nificance. Having already lost the League Cup Chelsea, in fourth, may currently final to Manchester City amid a Kepa hold the upper-hand, two points Arrizabalaga-shaped storm, the Eu- ahead of fifth-placed Arsenal, but ropa League holds greater to signifi- with just two league games remain- cance to Sarri personally. ing and poor to indifferent form af- Chelsea, and in particular owner fecting both, the Europa Roman Abramovich, are not scared to League could provide sal- move on if trophies are not forthcom- vation. ing. Sarri’s predecessors won them and still got the sack; the Italian him- EMERY UNDER-FIRE self is yet to win a single trophy in his The situation is cer- long managerial career. tainly most precarious A Europa League win would ensure for Arsenal. Three suc- Champions League football regardless cessive league defeats in of league position and could keep the which they’ve conceded wolves from the door. nine goals through var- Sarri is without Antonio Rudiger, ied methods of blooper who has been ruled out for the season reel-quality defending following injury against United, so means their season is in Andreas Christensen is expected to the advanced stages of un- start alongside David Luiz. ravelling. times in day. “Our confidence can go up, can side who they have lost all three of While that straight swap shouldn’t Ramshackle defending has successive go down, but the most important is their previous meetings in Europe prove much of a problem, Sarri has a left manager Unai Emery seasons to be clear in our minds and our way.” against – Brighton at home and a trip personal investment in the perform- under pressure, with the with former That way won’t include the injured to Burnley to come fans might be con- ance of on-loan striker Gonzalo Spaniard admitting after the club Sevilla. Aaron Ramsey, who has played his cerned to hear defender Laurent Ko- Higuain, who he wants to sign perma- 3-0 defeat by Leicester on Sunday “We have a final game for the club ahead of a scielny’s concession that “maybe nently at the end of the campaign. that finishing in the top four big ambition in summer move to Juventus, but will everyone is a little tired”. Higuain has scored just four goals in would be “very difficult”. this competition,” have to include more robust defend- Arsenal have the firepower in the 14 appearances, against Huddersfield, Luckily for them Emery is not only Emery said on Sun- ing. The hapless Shkodran Mustafi form of 24-goal Pierre-Emerick Fulham and Burnley, since joining a former manager of their opposition has born the brunt of criticism but he Aubameyang and 16-goal Alexandre from Juventus in January. at the Emirates Stadium tonight, Va- Chelsea’s Hazard and is far from the only player under-per- Lacazette, but in order for them to If there was ever a time to step up lencia, but a Europa League expert, Arsenal’s Aubameyang forming of late. function they need those behind the plate and back up Hazard tonight having won the competition three are key to Europe hopes With two legs against Valencia – a them tighten up. is it. 20 SPORT THURSDAY 2 MAY 2019 CITYAM.COM MESSI MAGIC Barca No10 scores two quick-fire goals to SPORT derail Liverpool’s hopes PAGE 18

CASILLAS IN HOSPITAL AFTER LANDMARK RULING Semenya vows to fight testosterone case SUSPECTED HEART ATTACK SPORT DIGEST £ World Cup winner Iker Casillas was last night in hospital after suffering a who also works as a commentator, was suspected heart attack at his club’s sentenced to three years’ probation and training ground. The 37-year-old 60 days’ community service for attacking goalkeeper, who now plays for FC Porto Randall Kaplan. Gimelstob said he was after leaving Real Madrid, was rushed to stepping down after becoming a CUF Hospital in Porto on Wednesday “significant burden and distraction”. morning. The club said in a statement he was in a “stable” condition but would INJURED RAMSEY HAS PLAYED continue to be monitored. HIS LAST GAME FOR ARSENAL £ Aaron Ramsey sent a farewell message LEGENDARY JOCKEY WALSH to Arsenal fans yesterday after confirming RETIRES FROM HORSE RACING he had played his final game for the club. £ Jockey Ruby Walsh has announced his Ramsey, who had already agreed to join retirement from horse racing at the age of Juventus in the summer, has been ruled 39. Walsh called time on a stellar career out for the rest of the season with a yesterday after riding Willie Mullins’ joint- hamstring injury. “I am really favourite Kemboy to victory in the disappointed not to play until the end,” he Punchestown Gold Cup. The Irishman was said. “Unfortunately it’s out of my hands.” the leading jockey at Cheltenham Festival 11 times and rode two winners at the SRI LANKA’S SANGAKKARA TO Grand National – Papillon on debut in BECOME MCC PRESIDENT 2000 and Hedgehunter five years later. £ Former Sri Lanka batsman Kumar Sangakkara was yesterday appointed as GIMELSTOB RESIGNS FROM the first non-British president of ATP BOARD AFTER ASSAULT Marylebone Cricket Club. Sangakkara, £ Justin Gimelstob has resigned from his who retired from playing in 2017, will Caster Semenya is considering an appeal after yesterday losing a landmark case against athletics’ governing body. The Court of position on the Association of Tennis begin his one-year tenure in October. The Arbitration for Sport ruled in favour of the IAAF, meaning Semenya will have to take medication to reduce her testosterone if she Professionals board following his MCC are the guardians of the laws of the wants to compete in events between 400m and a mile. “The decision of Cas will not hold me back,” said Semenya in a statement. sentencing for assault. The 42-year-old, game and uphold the spirit of cricket. HALES ONLY HAS HIMSELF TO BLAME OVER DRUGS ISSUE

DON’T have a lot of sympathy CRICKET The storm around Hales has been for Alex Hales. The batsman was followed with the first injuries in this week dropped from Eng- COMMENT some time, with Sam Billings ruled Iland’s World Cup squad after out through a shoulder problem failing a recreational drugs test and Jason Roy suffering back and I think director of cricket Ash- Chris spasms. Unlike the Hales incident, ley Giles has made the right call. Tremlett injuries are a part of the game and It’s not the first time he’s been in having spent the past four years the spotlight for his actions away building momentum England’s from the cricket field, having failed build-up shouldn’t be derailed. a drugs test previously and been in- tion for players, so he could have They remain focused on the task volved in an incident outside a Bris- undergone that and come at hand and are blessed with a tol night club with team-mate Ben back without the public group of around 20 players who Stokes, so I believe he’s had enough knowing. But being a offer depth to the squad. warnings. As a professional high-profile player in sportsman there are some the run-up to a major VINCE’S OPPORTUNITY things you just don’t do and tournament there Hales hasn’t been a shoe-in for Eng- drugs are certainly one of is bound to be land in one-day cricket for some them. more scrutiny time, with Roy and Jonny Bairstow He’s set a bad ex- on your behav- forming a brilliant opening partner- ample, disre- iour. Ru- ship, but he had performed well spected the mours fly when called upon and was first re- England team around the serve in the batting department. culture and county cir- Thankfully in James Vince Eng- sparked an un- cuit and land have a like-for-like replace- necessary dis- once the news ment. Like Hales, Vince is a tall traction on the had been broken England right-hander who hits the ball well eve of a home were left with little option through the offside and is more World Cup. but to drop him. suited to white-ball cricket. I believe he Perhaps the England and He’s a seasoned campaigner with got off lightly Wales Cricket Board could Hampshire and has found form at for his involve- have handled they way the perfect time, having hit 430 ment in the they did it better, but ulti- runs at an average of 71.67 in six Stokes incident in mately Hales is in the One-Day Cup innings this season. 2017 but he clearly wrong and deserves to be Having played Test cricket and hasn’t learned his les- punished. around the world for various fran- son. I just hope England chises I don’t think he’d be daunted Hales was initially can nip it in the bud by the pressure of a World Cup. suspended for 21 now, draw a line under- If he performs against Ireland and days and his county, neath it and set a strong Pakistan over the next few weeks I Nottinghamshire, precedent to show other think he’ll come into the squad and tried to keep the rea- players the conse- could slot anywhere into the top son why he wasn’t play- quences of their ac- three as a perfect replacement. ing under wraps. The tions. Professional Cricketers’ Chris Tremlett is former England and Association offer coun- Hales will not play a Surrey fast bowler. Follow him selling and rehabilita- part in the World Cup @ChrisTremlett33