AC Milan have accepted a bid from Manchester City for their Brazilian midfielder Kaka.
AC Milan have accepted a bid from Manchester City for their Brazilian midfielder Kaka.

Hughes is confident of luring Kaka from Milan



Mark Hughes says once Kaka hears the grand plans for Manchester City, he will have no hesitation in quitting AC Milan and joining the Blues. Milan allowed the Brazilian to talk to City after accepting a £108m (Dh592m) bid for the former world footballer of the year. And Hughes, who stressed he has been involved in discussions all the way through rather than being sidelined as some have suggested, does not feel there will be a problem, claiming: "We are all working to the same end: trying to be successful on a regular basis

"You do that by bringing good players to the club to supplement those we have. "It is not something that will happen overnight and we have to let people understand what we are trying to do and understand where this club will go in the next few years. Once they understand that and recognise the people driving it forward they will become excited by what we can offer." Reduced to bringing in ageing players such as Ronaldinho and, on a short-term loan, David Beckham to bolster their ranks, Milan realise City's bid, which is said to last only until the end of this month's transfer window, represents an opportunity to restore the side to former glories by spending the money on several replacements.

The next few days are likely to be taken up with assessing the former world player of the year's various sponsorship agreements and discovering how easily these can be transferred to England from Italy. Carlo Ancelotti, the Milan coach, hopes the Brazilian will stay at the San Siro. "My hope is to be able to coach Kaka for many more years, but we've got to be aware of the facts and the club's evaluation of the offer presented," he said.

The German side Hamburg said last night that City have bid for the midfielder Nigel de Jong. Portsmouth have had an undisclosed bid accepted for the Liverpool winger Jermaine Pennant. Pompey appear to have stolen a march on their rivals for Pennant's signature - with reports suggesting Real Madrid and Milan are also interested. The Wigan manager Steve Bruce confirmed a £14m deal to sell Wilson Palacios to Tottenham has been "virtually agreed". Palacios, 24, has been with Wigan for just over a year after he joined from Deportivo Olimpia in January last year.

Hull have agreed a deal with Manchester United to take the Angola striker Manucho on loan for the rest of the season. West Ham have refused to give Craig Bellamy permission to talk to Tottenham or Manchester City and have offered the Wales striker a new contract. The Benfica forward Ariza Makukula is moving to Bolton on loan after rejecting a move to West Bromwich Albion. The Liverpool manager Rafael Benitez has rejected the terms of the contract which was offered to him this week. The Spaniard has refused to commit to the deal because of a disagreement with owners George Gillett and Tom Hicks over his level of control.

* With agencies

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
AUSTRALIA SQUAD v SOUTH AFRICA

Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa

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 low down

Producers: Uniglobe Entertainment & Vision Films

Director: Namrata Singh Gujral

Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark

Rating: 2/5

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million