Trader Sentenced to One Year of House Arrest After US Court Battle
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BUSINESS WITH PERSONALITY RATE OF CHANGE FLAGGING? TOP TIPS ON WHAT SHOULD HOW TO STICK WITH YOUR THE BANK DO FITNESS AMBITIONS P18 TOMORROW? P15 WEDNESDAY 29 JANUARY 2020 ISSUE 3,544 CITYAM.COM FREE US LEADERS AND TORY BACKBENCHERS ROUND Apple defies ON JOHNSON AFTER expectations GOVERNMENT GREEN LIGHTS ‘HIGH RISK’ FIRM in profit rise EMILY NICOLLE @emilyjnicolle APPLE reported earnings and MIXED revenue above Wall Street estimates late last night, proving its streak of success continued to rise during the crucial Christmas trading period and defying fears over the impact of coronavirus. The iPhone maker reported a profit of $22.2bn (£17bn) for the three months to the end of December 2019, reaching a new all-time high. Revenue came in at $91.8bn RECEPTION compared to analyst estimates of $88.5bn, a rise on nine per cent year on year and trouncing Apple’s own guidance for the quarter. New iPhone models powered much of its sales increase, as well as soaring demand for products such as its Apple Watch and Airpods. The tech giant said for the upcoming quarter it expected revenue of between $63bn and CATHERINE NEILAN from the core part of the system, while minister told City A.M. — however trade talks or by being ejected from the $67bn, compared to analyst AND JAMES WARRINGTON its market share will be capped at 35 Downing Street stressed the final verdict multinational Five Eyes intelligence estimates of $62.45bn. per cent of “non-sensitive parts of was the best way to deal with the alliance, which officials have stressed The beat cheered investors @CatNeilan @j_a_warrington the network”. “market failure” that left it without would come under no risk. who had been seeking to DOWNING Street was last night riding Huawei will also be excluded from alternatives. The only other option US President Donald Trump was evaluate how the Chinese out a storm over its decision to sensitive geographic locations, such as would have been to delay the rollout of uncharacteristically tightlipped epidemic could affect Apple’s greenlight Huawei’s involvement in nuclear sites and military bases. 5G until other players were in a position yesterday, but US senator Mitt Romney production in the region. building the UK’s 5G network, as it was City A.M. understands there are a very to take up the mantle, estimated to be at branded the move “disconcerting”. Shares jumped more than 2.7 attacked by politicians on both sides of small number of locations currently least a year away. He added: “By prioritising costs, the per cent in extended trading. the Atlantic. using Huawei equipment, but this will It is understood UK officials had been UK is sacrificing national security and However the range of Following a National Security Council be stripped out in order to safe-guard having hourly conversations with their inviting the CCP’s surveillance state in. I Apple’s guidance had (NSC) agreement, the government will future security as the firm’s technology US counterparts in the run-up to the implore our British allies to reverse their widened, which boss Tim allow the Chinese tech giant limited becomes more sophisticated. announcement. Whitehall is not decision.” Cook said was down to the access to the infrastructure as a “high The controversial move had been on a expecting any retaliation from unpredictable nature of the risk vendor”. Huawei will be blocked “knife edge”, one NSC-attending Washington, either through looming £ CONTINUES ON P5 virus’ rapid global spread. ‘Flash crash’ trader sentenced to one year of house arrest after US court battle ANGHARAD CARRICK The sentence, which was handed of circumstances. serve more jail time due to his yesterday: “The defendant was down by a Chicago court yesterday, Sarao said: “I made more money “extraordinary cooperation”. clearly not motivated by money, @angharadcarrick was thrown into doubt after than I could ever have imagined and Sarao had faced between six and a greed, or any desire for a lavish THE BRITISH trader responsible for lawyers said it would be it didn’t make me happy. My guilt is half and eight years imprisonment, lifestyle. His only significant the so-called flash crash in 2010 has unenforceable outside the US, heavy. I humbly ask your mercy and but US prosecutors called for purchase was a £5,000 car.” been sentenced to one year home according to the Guardian. can assure you I will never do leniency in sentencing. They cited Following his guilty plea, the Brit incarceration. Following recess, Judge Virginia anything illegal again.” his previous cooperation, his autism testified against his former partner Navinder Sarao was arrested in Kendall said she was satisfied Sarao In a sentencing memo earlier this diagnosis and that he had lost over Jitesh Thakkar, who was charged 2015 and pleaded guilty to illegally would only be allowed to leave his month, the US Department of £40m to fraudsters. with conspiring to spoof the manipulating the stock markets. west London home in a handful Justice (DoJ) said Sarao should not Prosecutor Michael O’Neill said market. Thakkar was acquitted. FTSE 100▲7,480.69 +68.64 FTSE 250▲21,433.06 +129.39 DOW▲28,722.85 +187.05 NASDAQ▲9,269.68 +130.37 £/$▼1.300 -0.006 £/€▼ 1.180 -0.004 €/$▼ 1.101 -0.001 02 NEWS WEDNESDAY 29 JANUARY 2020 CITYAM.COM OBITUARY NICHOLAS PARSONS Beloved broadcasting legend and host of BBC Radio 4’s Just a Minute dies aged 96 following a short illness THE CITY VIEW Johnson’s Huawei 5G gamble is exactly that O, THEY’RE in. After all the hullaballoo of recent weeks, the actual announcement that Huawei will be granted Saccess to the UK’s 5G infrastructure was something of a damp squib, slipped out in a press release that didn’t even dare mention the name of the Chinese company. This is Boris Johnson’s first major decision, and it may come to be seen as his most impactful. Most people think of 3G and 4G as networks offering speedier data access and downloads on mobiles, but 5G is a rather more dramatic step up. It is revolutionary technology that can, in theory, support self-driving cars, power connected smart cities and deliver the so-called internet of things. It can provide reliable real-time updates on transport, on production statistics, on logistics tracking. All well and good — as long as NICHOLAS Parsons, star of BBC Radio 4’s Just a Minute, has died aged 96 following a brief illness. Parsons had hosted the show, the wiring underpinning it is sound. Johnson evidently feels in which guests have to speak on a subject for a whole minute without hesitation, since its inception in 1967. Outgoing BBC that our future relationship with China, and therefore its state- director general Tony Hall said: “No one deserves to be called a broadcasting legend more than Nicholas Parsons.” linked telecoms outfit, will not put that wiring at risk. That this is a decision that has come from the National Security Council, that there are caps on Huawei’s market access, and that the firm has been designated a “high risk vendor” suggests that the government is not blind to the possibilities that this deal carries great risks. It is also true that some of the caps are slightly Cut minimum salaries for bizarre; Huawei, for instance, will not be allowed access to 5G infrastructure around nuclear sites, but at least one of those nuclear sites is being built by the China General Nuclear Power Group, a state-owned outfit accused of stealing nuclear secrets from the US. But to govern is to choose. Johnson’s government, work visas, report urges on the advice of security officials, has decided that the risks of Chinese interference in the UK’s technological infrastructure CATHERINE NEILAN and the country’s total GDP, although needed more clarity and urged the are lesser than the economic risks which come from failing to @CatNeilan there would be a “very slight” increase government to work with them before keep up in the global race for fully functioning 5G connectivity. to GDP per capita and productivity. drawing up a bill, expected to be The National Cyber Security Centre yesterday was at pains to LONDON is expected to see the biggest Outgoing MAC chair professor Alan brought forward in March. impact from the proposed shakeup Manning said it would be a more Matthew Fell, from the CBI, said: “A make clear that it understands the risks and has strategies in to the UK’s immigration system, a “relaxed” system for most migrants new immigration system that is fair place to manage them. At the heart of this is a broken market. government-commissioned report although it would be more restrictive and sustainable is as important for Even the government’s own cyber wonks describe the fact that warned yesterday. than the freedom of movement cur- many firms as our future trading only Nokia, Ericsson and Huawei can run 5G in the UK as The Migration Advisory Committee rently enjoyed by EU migrants. relationships. Reducing the headline (MAC) set out a two-pronged approach Given the number of EU migrants salary threshold will be welcomed by “crazy”, and have proposed a host of fixes to encourage real for the government to build its post- living in London, the capital will bear businesses, which argued that a competition. China distorts the market, of course, having Brexit framework for work visas. the brunt of the impact, he said. £30,000 cap would be damaging.” ploughed billions into the development of Huawei’s technology.