BUSINESS WITH PERSONALITY HEARTBREAK BLAST FROM THE PAST HOTEL WHEN A NEW SUPERCHARGED HOLIDAYS GO £90K CLASSIC MINI P18 WRONG P17 WEDNESDAY 7 AUGUST 2019 ISSUE 3,430 CITYAM.COM FREE CRYIN’ KING Disney investors GOVE POINTS tearful despite box office success THE FINGER CATHERINEAT NEILAN BRUSSELSthe backing of the Commons. ratification of the withdrawal agree- “We can’t have a deal that doesn’t ment, or further extension or revoca- @CatNeilan command the confidence of the gov- tion of Article 50... [I am] certainly not THE UK has accused the EU of refusing ernment, the parliament and the fatalistic about that. to budge on Brexit negotiations and in- country and that is why we have been “Our position is that the withdrawal sisted the bloc “must change its clear with the European Union that agreement, including the backstop is stance” if a no-deal exit is to be dodged. we need a new approach,” he closed, but there is always room for Ireland’s Leo Varadkar yesterday responded. talks and negotiations. We have said said he was confident a no-deal Brexit “We stand ready to engage with the we can certainly make changes to the could still be avoided, despite EU to negotiate in good faith… political declaration, and we have Prime Minister Boris Johnson We will put all our energy demonstrated before to offer clarifica- stressing the UK will leave into making sure we can tions as we did at the request of Prime the European Union “do secure that good deal. Minister May in the past.” or die”, come 31 Octo- “At the moment it’s Yesterday the pound hit its lowest ber. level against a basket of curerncies Varadkar added he Gove: The EU is since August 2017, when a previous AUGUST GRAHAM Disney’s earnings per share hit had invited the UK’s “wrong and sad” to tussle over Britain’s “divorce pay- $1.35, excluding some items, below new leader to Dublin not renegotiate ment” to the European Union had @AugustGraham analysts’ expectations of $1.75, for talks “on the basis sparked a sell-off. RECORD $8bn (£6.6bn) box office according to data from Refinitiv. of no pre-conditions”, the EU that seems to Meanwhile a group of MPs launched takings did not spare Disney Earlier this year Disney bought 21st and that he stood by be saying they’re not legal action designed to stop Johnson investors from taking a hit last night Century Fox’s TV and film assets for that offer. interested, they are sim- from forcing through a no-deal Brexit as the company missed expectations. $71bn, earning it a large catalogue of Michael Gove, who is over- ply saying ‘no we don’t by shutting down parliament. Shares dropped five per cent in films for its new streaming site, seeing no-deal preparations, want to talk’. Well I think Liberal Democrat leader Jo Swinson, after-hours trading as operating which will charge $2 less than Netflix. argued that if the EU is serious about that’s wrong and sad. It’s not in SNP MP Joanna Cherry and former losses widened to $553m from Revenue rose 33 per cent to averting a no-deal Brexit, talks must Europe’s interest.” Labour MP Heidi Allen are among the $168m a year ago. It comes as the $20.3bn, while analysts had been include the backstop. Varadkar said earlier in the day: 75 politicians from both houses put- firm increased spending on ESPN expecting $21.5bn. He stressed the agreement struck “There are many ways by which a no ting their name to legal papers lodged Plus and built Disney Plus, a under Theresa May had failed to win deal can be avoided, either through at the Court of Session in Edinburgh. streaming service to rival Netflix. £ DISNEY’S STREAM DREAM: P11 Beijing hits back after US Treasury labels China a currency manipulator HARRY ROBERTSON said it “has not used and will not The US’s statement followed a Chinese exports to the US are now bank said China “advised the United use the exchange rate as a tool to severe drop in the value of China’s tariffed. China then said its States to rein in its horse before the @henrygrobertson deal with trade disputes”. currency the renminbi to the seven- companies are to stop buying US precipice, and be aware of its errors, CHINA’s central bank has hit back The rebuttal came after the US per-dollar level not seen since the agricultural products in retaliation. and turn back from the wrong path”. at Washington’s move to officially Treasury on Monday night accused financial crisis. It climbed 0.3 per Chinese tariffs on the US’s US and European stocks also had call Beijing a currency manipulator, China of currency manipulation, cent against the dollar yesterday as valuable soybean exports have a rocky day yesterday following a saying it would “severely damage saying it had taken “concrete steps China stemmed its fall. already caused the US to spend tens sharp equities sell-off on Monday in international financial order and to devalue its currency” to “gain Last week the US slapped 10 per of billions of dollars compensating favour of safer assets. cause chaos in financial markets”. unfair competitive advantage in cent tariffs on $300bn (£246.5bn) of farmers. The People’s Bank of China (PBoC) international trade”. Chinese goods, meaning almost all Yesterday the Chinese central £ THE DEBATE: P15 FTSE 100▼ 7,171.69 -52.16 FTSE 250▼ 18,846.20 -25.22 DOW▲ 26,029.52 +311.78 NASDAQ▲7,833.27 +107.23 £/$▲1.216 +0.002 £/€▲ 1.086 +0.002 €/$▼1.120 -0.001 02 NEWS WEDNESDAY 7 AUGUST 2019 CITYAM.COM MCDONNELL’S SCOTTISH PLEDGE Labour shadow chancellor says party is open to second bash at Scottish independence vote THE CITY VIEW It’s time for Ashley to take his firm private HE RELATIONSHIP between the City and unpredictable retail tycoon Mike Ashley has been on the rocks for a Twhile. Shares in Sports Direct are down 45 per cent since last year following a spate of questionable acquisitions and corporate governance blunders. Last month the retailer’s repeatedly delayed release of its full-year figures was widely regarded as an utter shambles. When the results finally emerged after the market closed, they featured a shock £605m tax bill from Belgian authorities. Sports Direct also abandoned all guidance for 2020 as it admitted that buying beleaguered department store House of Fraser in August last year could have been a mistake. The store, which Ashley once declared he would transform into the “Harrods of the high street”, was facing “terminal” problems. “If we had the gift of hindsight we might LABOUR will not get in the way of a second referendum on Scottish independence, shadow chancellor John McDonnell said yesterday, contradicting the position of Labour’s leader in Scotland. McDonnell’s comments, said at the Edinburgh Fringe have made a different decision,” the company conceded. Festival and reported by the BBC, come after first minister Nicola Sturgeon said there is “growing urgency” for independence. Shareholders can only hope that Ashley will not be saying the same thing about his most recent acquisition in a future set of results. The retail mogul bought Jack Wills out of administration on Monday, adding the high-end brand to his rapidly expanding empire that also includes video games, HSBC eyes ex- bicycles and soft furnishings. He has made failed bids for Debenhams and online retail group Findel. “Imagine if I was Woodford sells private, I’d be uncontrollable,” Ashley said following the Deutsche man publication of the company’s results last month. The irony will not have been lost on shareholders. Responsible investment for asset unit campaign group Share Action yesterday said “the list of leadership failings at Sports Direct is endless”.“The company has stake in Eurocell AUGUST GRAHAM been a corporate governance headache for years, from lack of AND SEBASTIAN MCCARTHY SEBASTIAN MCCARTHY independence to poor workforce practices,” it said. A ity of Woodford’s stake had been pur- chased by existing shareholders. @AugustGraham @SebMcCarthy spokesperson for the UK Shareholders Association added that @SebMcCarthy Woodford has been dumping shares HSBC is preparing to appoint a Sports Direct and Mike Ashley have become “poster boys” for lax NEIL Woodford has sold off his entire in a swathe of businesses as part of a former Deutsche Bank and Axa UK corporate governance. Meanwhile, as Sports Direct’s acquisitions stake in Eurocell as the under-fire fire sale to raise cash for his flagship executive as head of its $500bn stockpicker battles to shore up the Equity Income fund, which was sus- (£411bn) asset management arm. stack up, Ashley’s ultimate master plan remains a mystery. The health of his own troubled Equity In- pended in June after becoming over- Nicolas Moreau, who left logic behind buying up the high street is unclear as he juggles come fund. whelmed by investor withdrawals. Deutsche subsidiary DWS last year, bargain brands with high-price fashion. The businessman has The former star investor dropped his According to the Telegraph, which will be named for the role today, always liked a flutter – and there is nothing wrong with that – 16 per cent holding in the plastic win- first reported Woodford’s move to Sky News reported. dow and door firm Eurocell last week, drop his stake yesterday, the investor’s It comes two days after HSBC but he is gambling with shareholders’ money. Despite shooting ramping up his sell-off spree after a asset fire sale has now risen above ousted its chief executive John Flint down the suggestion that the eventual goal is to delist Sports torrid two months.