James Milner in action for Aston Villa against West Ham on Saturday.
James Milner in action for Aston Villa against West Ham on Saturday.

Milner completes move to Man City



James Milner has finally completed his protracted transfer to Manchester City. The England midfielder, 24, has joined City after a summer of speculation over his future, although Eastlands always seemed likely to be his ultimate destination. Milner has signed a five-year contract while the midfielder Stephen Ireland has joined Villa from City as part of the deal. Milner, who completed his medical late yesterday, could make his City debut in their Premier League clash with Liverpool at Eastlands on Monday. City boss Roberto Mancini told www.mcfc.co.uk: "I am very happy to have James with us, everybody knows we have admired him for some time.

"He is an excellent midfielder who can play in a number of positions. This is important for the team and I am looking forward to seeing him play for us. We have a very strong squad and this signing is a very important one for us. "James is already a very good player who has proved he can play at the very top level. But he is also young and a good character, I think he can also improve and be a great player for Manchester City for a long time." Milner replaces Ireland as City's No 7, and Mancini added of the departing midfielder: "I hope things go well for Stevie at Villa. "He is also a very good player and he has played a big part in City's history. I think he will enjoy the change of being at another club and I hope he does well for Aston Villa."

Milner's future had been the subject of ongoing speculation since Villa rejected a bid of around £20 million (Dh 71.36m) from City in May. Then Villa boss Martin O'Neill revealed last month that the midfielder had asked for a move away from Villa Park and had refused to sign a new contract. Villa's decision to sell Milner and how much of the fee O'Neill would be able to reinvest in the transfer market were rumoured to be key factors in the Northern Irishman's shock resignation last week. Under O'Neill, Milner developed into one of England's top midfielders last season, proving a revelation after moving from the wing into the centre. He was the principal figure behind Villa's ultimately unsuccessful push for a Champions League spot and his form earned him a starting spot in three of England's four World Cup games in South Africa.

Indeed, Milner was one of the few players to emerge with his reputation intact from a disappointing tournament and City continued their pursuit on his return. The two clubs finally agreed a fee but the deal was held up still further by the involvement of Ireland, who reportedly demanded a £2m pay-off from City. Milner played in Villa's opening Premier League game of the season against West Ham last Saturday and scored in a 3-0 win, earning a standing ovation as he bade his farewell. But the transfer has now finally gone through, bringing an end to two years at Villa Park for Milner and eight years with City for Ireland. Ireland, now 23, looked set for a great future at Eastlands after breaking into the first team as a teenager and then picking up the club's player of the year award for the 2008-09 season.

But his opportunities dried up once Mancini replaced Mark Hughes last autumn and the Italian made it clear Ireland's future lay elsewhere. Milner began his career with Leeds and became the Premier League's then youngest scorer when he netted against Sunderland on Boxing Day 2002, nine days before his 17th birthday. Leeds's relegation saw Milner sold to Newcastle in 2004 but he was on the move again a year later when a clause in the deal that took Nolberto Solano from Villa to St James' Park sent Milner on loan in the other direction. A permanent deal seemed on the cards the following summer but Newcastle eventually decided to keep the midfielder, and he stayed with the Magpies for another two seasons before joining Villa for a reported £12m in 2008. Milner becomes City's eighth signing of the transfer window and follows in the footsteps of former Villa teammate Gareth Barry, who moved to Eastlands last summer. * Press Association

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

The specs
Engine: 2.4-litre 4-cylinder

Transmission: CVT auto

Power: 181bhp

Torque: 244Nm

Price: Dh122,900 

First Person
Richard Flanagan
Chatto & Windus 

The specs: 2018 Range Rover Velar R-Dynamic HSE

Price, base / as tested: Dh263,235 / Dh420,000

Engine: 3.0-litre supercharged V6

Power 375hp @ 6,500rpm

Torque: 450Nm @ 3,500rpm

Transmission: Eight-speed automatic

Fuel consumption, combined: 9.4L / 100kms

The Africa Institute 101

Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.