The Times - UK (2021-11-10)

34 Wednesday November 10 2021 | the times

Business

tion of cryptocurrencies is now in

excess of $3 trillion, according to

CoinGecko, the crypto price and data

aggregator.

However, trading has been volatile,

triggering warnings from regulators,

who also have voiced concerns about

illegal transactions. Andrew Bailey, the

Bank of England governor, said on

Monday that “Crypto ... is providing a

means of payment for people conduct-

ing criminal activity”.

Bitcoin was created in 2009 as a

means of payment but has mainly been

used in speculative trading. Jefferies,

the bank, is among the institutions that

believe this is changing: it said that

the launch of the ProShare exchange-

traded fund had brought “the whole

crypto asset class into the mainstream”.

1

General Electric is to split into

three companies, dismantling

America’s best-known

conglomerate, once the world’s

most valuable firm. The American

industrial group hailed a “defining

moment” in its 129-year history:

an attempt to simplify its once

sprawling empire, reduce debt and

revive its share price. Pages 33, 36

2

Michael Gove has indicated

that he will go after big

building materials companies

whose products were used on

Grenfell Tower to help to fund

repairs to thousands of unsafe

buildings around the country. The

communities secretary seemed to

take aim at Kingspan, Saint-

Gobain and Arconic as he told

MPs that leaseholders should not

have to foot the bill. Page 33

3

Regulators will be required to

promote the competitiveness

of the UK financial services

sector under plans by the Treasury

for a post-Brexit overhaul of the

industry. Ministers want the

Financial Conduct Authority and

Prudential Regulation Authority

to focus more on enabling the

growth and competitiveness of the

economy and financial services

firms, on top of their existing

responsibilities. Page 33

4

The boss of Associated British

Foods underlined his

confidence in Primark’s

bricks-and-mortar strategy as the

chain unveiled plans for more

than 130 new shops worldwide and

said that it would not raise prices

despite supply chain pressures.

5

The price of bitcoin hit a new

high in the latest leg of the

cryptocurrency’s dizzying

rebound. The crypto asset was

changing hands for as much as

$68,564, propelling it above last

month’s peak of $67,017.

6

The economy risks stagnation

and inflation because of

persistent supply chain

bottlenecks and headwinds from

Brexit, a think tank has warned.

Inflation is on course to hit about

5 per cent next year, while the

economy looks set to grow by only

1.7 per cent in 2023 and by 1.3 per

cent in 2024, the National

Institute of Economic and Social

Research said. Page 36

7

JCB is plotting its transatlantic

expansion. The digger maker,

one of Britain’s largest

privately owned businesses, is set

to invest hundreds of millions of

dollars to increase its production

in America. Pages 38-39

8

Diversified Energy has

pledged a sixfold increase in

methane detectors after

coming under fire over leaks from

its more than 60,000 onshore

wells in the United States. Page 39

9

Yakir Gola, co-founder of

Gopuff, has accused his rivals

of being “super-lossmaking”

as the $15 billion US delivery

business launches a national

expansion across Britain. Page 40

10

The end of the stamp duty

holiday, changes to the

Help to Buy scheme and

rising costs have done little to

dampen demand for homes built

by Persimmon and Vistry Group,

which published upbeat trading

updates yesterday. Page 41

Need to know

Bitcoin rally shows no sign of slowing

The price of bitcoin hit a new record

yesterday in the latest leg of the crypto-

currency’s dizzying rebound.

The world’s largest crypto asset was

changing hands for as much as $68,564,

at one point yesterday propelling it

above last month’s peak of $67,017. It

pared some of the gains later and last

night in New York was 2.2 per cent

higher at 66,947.44

Ethereum, the world’s second largest

cryptocurrency, reached an all-time

high of $4,842.

Bitcoin has more than doubled in

value from the lows plumbed in July,

driven by a combination of the listing of

America’s first exchange-traded fund

linked to bitcoin last month and in-

creasing mainstream adoption, which

has bolstered confidence in its future.

Inflows into bitcoin products and

funds have hit a record $6.4 billion this

year and reached $95 million last week,

according to CoinShares, a digital asset

manager. The total market capitalisa-

Alex Ralph

Cook admits

investing in

crypto assets

Callum Jones

US Business Correspondent

The boss of Apple has revealed that he

has invested in cryptocurrencies such

as bitcoin but that the iPhone maker

will not be following suit.

Tim Cook, chief executive of the

technology group, told an industry

event that he had been interested in

digital coins “for a while”.

Cook believes that bitcoin, the

world’s largest cryptocurrency, and

ethereum, the second, are “reasonable

to own” as part of a diversified invest-

ment portfolio, he told the online

DealBook conference, organised by

The New York Times, adding: “I’m not

giving anyone investment advice, by

the way.”

However, Apple is unlikely to do the

Primark puts

more stores

on the agenda

Ashley Armstrong Retail Editor

The boss of Associated British Foods

underlined his confidence in Primark’s

bricks-and-mortar strategy yesterday

as the chain unveiled plans for more

than 130 new shops and said it would

not raise prices despite supply chain

pressures.

Unlike other retailers that were

cushioned during lockdown by shop-

pers switching online, Primark has

continued to resist having a trans-

actional website and suffered £2 billion

of lost sales during lockdowns.

“We didn’t ever doubt the business

model as the most cost-effective way to

retail; our problem was that we were

shut,” George Weston, 57, chief execu-

tive of ABF, said.

The budget retailer is launching a

new website in the first quarter of next

year which will mean that shoppers can

find out what their local store has and

can browse 70 per cent of its range

online, but they will still have to go to a

Primark shop to make a purchase.

Despite disruption from store clo-

sures, ABF recorded flat revenues of

£13.88 billion for the year to Septem-

ber 18. Statutory pre-tax profit rose by

6 per cent to £725 million, helped by op-

erating profits in its sugar business

jumping by three quarters. Weston said

he expected Primark to make a “much

improved” profit and margin this year.

The FTSE 100 conglomerate, which

includes Ryvita crispbreads, Twinings

tea, Silver Spoon sugar and Allinson

flour, is paying a 20.5p-per-share final

dividend, resulting in a full-year payout

of 26.7p per share. A special dividend of

13.8p per share has been awarded,

taking shareholder payouts to 40.5p per

share, costing £320 million.

The billionaire Weston family, who

own a 54.5 per cent stake through their

Wittington Investments vehicle, will

get a £174.4 million payout. ABF, which

is valued at nearly £16 billion, traces its

roots to a bakery established by

Weston’s great-grandfather in Canada

in the late 19th century. Primark, one of

its five divisions, was founded in Dublin

in 1969 as Penneys.

Shares in ABF rose by 148½p, or 8 per

cent, to £20.07. Analysts at Investec

said: “The shares have been weak

following the softer fourth-quarter

Primark performance, but the outlook

is improving.”

Weston joined other British business

leaders in warning of supply chain dis-

ruptions caused by Chinese factories

shutting down because of coal shorta-

ges, international ports closing amid

Covid-19 outbreaks, a scarcity of sea

containers and congestion at British

ports. ABF said that the issues were

leading to “limited availability on a

small number of lines”. Weston said

that the government could help to ease

the pressure by delaying post-Brexit

port checks on goods coming from the

EU, due to be in place from January.

In addition to rising transport costs,

retailers are facing inflation in raw

materials, but Weston said: “We are not

52

20

Fashion houses

Total stores

Year first store opened

36

20

10

32

191

13

8

2

1

7

1

US

2015

The

Netherlands

2008

Germany

2009

France

2013

Italy

(^2016) Slovenia
2019
Czech
Republic
2021
Poland
2020
Belgium
2009
UK
1973
Portugal
2009
Spain
2006
Ireland
1969
5
Austria
2012
Britcoin still several years away
A new digital currency
for the UK, dubbed
Britcoin by the
chancellor, is still
several years away
officials said as they set
out plans for deciding
whether to push ahead
with the idea (Patrick
Hosking writes).
The Treasury and the
Bank of England
cautioned that if it were
launched, it would be in
the second half of the
decade at the earliest
before it could be used
in ordinary transactions.
The so-called central
bank digital currency
would sit alongside
cash and bank deposits
and would be
denominated in pounds
sterling. A formal
consultation will be
launched next year to
assess the case for a UK
digital currency,
consider design and
gauge its implications.
That would be followed
by a development
period and then a “build
and test phase” of
several years.