OF A BREXIT SHOCKWAVE
cityam-2016-06-02-574f706c72657
cityam-2016-06-02-574f706c72657
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
BUSINESS WITH PERSONALITY<br />
SOCCER’S SUMMER SPLURGE<br />
TOP ENGLISH CLUBS TO SPEND<br />
£1bn ON TRANSFERS P22-23<br />
WAR TRUMPS PEACE<br />
DOES DONALD POSE<br />
A THREAT TO<br />
THE WORLD? P16<br />
THURSDAY 2 JUNE 2016 ISSUE 2,638 CITYAM.COM<br />
FREE<br />
OECD WARNS<br />
<strong>OF</strong> A <strong>BREXIT</strong><br />
<strong>SHOCKWAVE</strong><br />
END <strong>OF</strong> THE ROAD IN<br />
SIGHT FOR BHS SALE<br />
JAKE CORDELL<br />
@JakeCordell<br />
THE ORGANISATION for Economic Cooperation<br />
and Development (OECD),<br />
the heavyweight international think<br />
tank, threw itself headlong into the EU<br />
referendum debate yesterday, warning<br />
Brexit could trigger chaos in global<br />
financial markets and inflict “a large<br />
negative shock” on the UK.<br />
In its latest global economic outlook,<br />
the OECD called the EU referendum<br />
“the most immediate” risk facing the<br />
world economy and slashed its growth<br />
forecast for the UK economy. It added:<br />
“A decision to exit would result in considerable<br />
additional volatility in financial<br />
markets and an extended period of<br />
uncertainty… with substantial negative<br />
consequences for the UK, the EU and<br />
the rest of the world.”<br />
The warning, the latest high-level<br />
international intervention in the UK’s<br />
referendum, provoked a response from<br />
Leave campaigners who criticised the<br />
OECD as an EU-funded body that previously<br />
wanted the UK to join the euro<br />
and should not be listened to. “This is a<br />
flawed report that makes assumptions<br />
which have been roundly dismissed by<br />
senior economists,” said Vote Leave’s<br />
John Longworth, the for mer head of<br />
the British Chambers of Commerce.<br />
The OECD report predicts that Brexit<br />
EU REFERENDUM<br />
would cause the UK economy to be<br />
three per cent smaller than it<br />
otherwise would have been by 2020.<br />
“Brexit would lead to economic<br />
uncertainty and hinder trade growth,<br />
with global effects being even stronger<br />
if the British withdrawal from the EU<br />
triggers volatility in financial markets,”<br />
it said.<br />
Although the think tank forecasts<br />
that a fall in the value of the pound<br />
and deregulation could both help<br />
offset some of the effects of a Leave vote<br />
on domestic businesses and households,<br />
it added: “The overall net effect<br />
on living standards would be strongly<br />
negative.”<br />
Chancellor George Osborne said the<br />
intervention was “another wake up call<br />
of the grim consequences of leaving<br />
the EU and the single market.”<br />
In what Labour shadow chancellor<br />
John McDonnell termed evidence of<br />
the “absolute failure” of the<br />
Conservatives’ economic policy, the<br />
body also issued broader warnings<br />
about the state of the UK economy. It<br />
pointed to the fact that “productivity<br />
has been exceptionally weak” and the<br />
UK has become susceptible to “increasing<br />
vulnerabilities” such as a record<br />
high current account deficit.<br />
Referendum uncertainty prompted<br />
the OECD, led by secretary general<br />
Angel Gurria, to cut its forecast for UK<br />
growth this year from 2.1 per cent to<br />
1.7 per cent.<br />
£REFERENDUM REPORTS, P4-5<br />
TRACEY BOLES<br />
THE FUTURES of BHS and thousands<br />
of its staff are hanging in the balance<br />
as administrators and the only<br />
known remaining bidder struggle to<br />
agree terms.<br />
BHS administrator Duff & Phelps held<br />
further discussions with a buyer<br />
backed by Richess Group yesterday,<br />
with some execs hopeful that a deal<br />
could be announced today.<br />
£ CONTINUED ON P2<br />
FTSE 100 ▼ 6,191.93 -38.86 FTSE 250 ▼ 17,061.47 -123.26 DOW ▲ 17,789.67 +2.47 NASDAQ ▲ 4,952.25 +4.20 £/$ ▼ 1.441 -0.007 £/€ ▼ 1.288 -0.013 €/$ ▲ 1.118 +0.005
02 NEWS THURSDAY 2 JUNE 2016<br />
CITYAM.COM<br />
THE CITY VIEW<br />
Even Labour’s centrists<br />
are too far to the Left<br />
SUCH is the state of Labour’s front bench these days that<br />
deputy leader Tom Watson is considered markedly centrist, a<br />
throwback to an era when the top positions were not<br />
occupied by unreformed Marxists. But last night Watson<br />
reminded us that even the party’s so-called moderates have an<br />
instinct for blunt interventionism, and policies that are populist,<br />
childish and would ultimately prove counterproductive.<br />
Responding to news that some banks and hedge funds have<br />
commissioned private exit polls in an attempt to understand the<br />
likely result of this month’s EU referendum, Watson reacted in the<br />
manner of confused anti-capitalists the world over – he called for it<br />
to be banned. “I hope the government will put measures in place to<br />
prohibit this avaricious plan by financiers to benefit from<br />
information that belongs to every voter,” Watson said.<br />
His demand – that individuals and organisations should not be<br />
allowed to commission private<br />
surveys – is predictably<br />
illiberal, but also makes no<br />
sense. Just a few moments<br />
after insisting that hedge<br />
funds “stand to make many<br />
millions of pounds” from their<br />
polls, Watson describes polls as “often unreliable”.<br />
Exit polls are especially unreliable during elections with no recent<br />
and direct precedents. This is why, at this point in time, they are<br />
not expected to be published on the evening of 23 June. Hedge<br />
funds, by nature, are comfortable with risk, and thus some think it<br />
is worthwhile to invest heavily in polling research in a bid to jump<br />
the gun and get a head-start on the rest of the market. But be under<br />
no illusion – this is a considerable gamble, resting on an expensive<br />
outlay. If it was as simple as Watson suggests for “financiers… to<br />
make millions of pounds”, then all the major banks and fund<br />
managers throughout the world would be getting in on the game.<br />
Daring financial market punts on political outcomes are nothing<br />
new (and could be observed during the recent Greek crises, for<br />
example); as a niche pursuit, they are part and parcel of a healthy,<br />
free market in which prices reflect various degrees of information<br />
and interpretation.<br />
The run-up to the referendum has seen many frivolous claims<br />
emanating from both sides of the debate, but Watson’s complaint<br />
is perhaps the silliest of them all.<br />
Follow us on Twitter @cityam<br />
His demand is<br />
illiberal – but also<br />
makes no sense<br />
MORE than 400 Roman writing tablets were discovered during the 2012 excavation of Bloomberg’s new European headquarters<br />
in the heart of the City, 87 of which have now been deciphered. Among the collection is the first (ever) mention of London in<br />
history and, fittingly, the first financial document in Britain. They are also the earliest hand-written documents found in Britain.<br />
Tata set to reveal<br />
UK bids shortlist<br />
BILLY BAMBROUGH<br />
AND MARK SANDS<br />
@BillyBambrough & @MkSands<br />
TATA Steel is expected to release a<br />
shortlist of bidders for its UK business<br />
before the end of the week, City A.M.<br />
understands.<br />
The three companies tipped to be<br />
named are commodities trader Liberty<br />
House, management buyout team<br />
Excalibur, and Leeds-based private<br />
equity fund Endless.<br />
The Indian steel conglomerate has<br />
been reviewing up to seven bids since<br />
the deadline for submissions passed<br />
on 23 May.<br />
“We aren’t surprised by the names<br />
[that are set to be shortlisted],” said a<br />
spokesperson for steelworkers union<br />
Community. “These businesses have<br />
long looked like the front-runners,<br />
and those are probably the names we<br />
would pick out.”<br />
ROME IN THE CITY UK’s oldest<br />
written document dug up at<br />
Bloomberg’s new London HQ –<br />
and, yes, it’s a financial record<br />
It is understood Tata is now working<br />
towards 24 June to name a buyer.<br />
The government has been consulting<br />
with both Tata Steel and prospective<br />
bidders over recent months.<br />
There has recently been a flurry of<br />
reports that Tata will not go through<br />
with a sale of the business and will<br />
hold on to its UK assets, with the<br />
government taking a minority equity<br />
stake of up to 25 per cent. Tata insists<br />
the sale process is moving forward.<br />
The four firms expected to miss out<br />
on the shortlist are turnaround specialist<br />
Greybull Capital, Indian steel<br />
producer JSW, Chinese steelmaking<br />
giant Hebei, and US billionaire<br />
investor Wilbur Ross.<br />
Yesterday, Greybull completed its £1<br />
purchase of Tata’s Scunthorpe steelworks,<br />
re-branding it as British Steel –<br />
a name not seen since 1999. The<br />
Scunthorpe works made a loss of<br />
around £100m last year.<br />
Portuguese are<br />
only game in<br />
town for BHS<br />
CONTINUED FROM P1<br />
Sources close to the situation<br />
suggested that the prospects of a<br />
deal remained “in the balance”,<br />
according to Sky News, with proof<br />
of Richess’ funding still to<br />
materialise.<br />
They also cautioned that many<br />
jobs could still be at risk even if an<br />
agreement to sell the company<br />
could be reached. People close to<br />
BHS have suggest ed that if a deal<br />
cannot be struck to acquire BHS out<br />
of administration by the end of the<br />
week,it is likely to be handed to<br />
liquidators, a move that would<br />
threaten more than 10,000 jobs.<br />
Richess’ directors include Greg<br />
Tufnell, a former Mothercare exec -<br />
utive and brother of ex-England<br />
cricketer Phil. Its bid is understood<br />
to be backed by a weal thy Portu gu -<br />
ese family, whose iden tity remains<br />
shrouded in mystery. “[They] are the<br />
only game in town,” one insider said.<br />
FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL<br />
EX-BARCLAYS EMPLOYEES<br />
TELL JURY <strong>OF</strong> HUMILIATION<br />
Five former Barclays employees on trial<br />
for allegedly conspiring to rig interest<br />
rates have taken the stand in their own<br />
defence, with several telling the jury of<br />
the stress and pressure they felt while<br />
working at the UK bank. Jonathan<br />
Mathew described how his boss used to<br />
call him a “deaf git” and “humiliate”<br />
him by “whacking” him on the back of<br />
the head with a 12-inch baseball bat.<br />
EX-ANGLO IRISH EXECS<br />
GUILTY <strong>OF</strong> €7.2BN FRAUD<br />
Two former execs at the ill-fated Anglo<br />
Irish Bank have been convicted of<br />
conspiracy to mislead investors after<br />
the longest criminal trial in Irish legal<br />
WHAT THE<br />
OTHER<br />
PAPERS SAY<br />
THIS<br />
MORNING<br />
history. John Bowe and Willie McAteer<br />
were found guilty in Dublin on a charge<br />
of arranging a €7.2bn (£5.6bn) financial<br />
transaction that disguised the state of<br />
health of Anglo before it collapsed.<br />
US FED A HACKING VICTIM<br />
Spies and hackers broke into the<br />
computer system of the US central bank<br />
on multiple occasions between 2011<br />
and 2015, resulting in more than 50<br />
cyberbreaches, Fed records disclose.<br />
The Fed’s cybersecurity experts<br />
identified 310 incident reports during<br />
the four-year period, and classified 140<br />
as hacking attempts and four as<br />
espionage.<br />
ARMANI EKES OUT SMALL<br />
PR<strong>OF</strong>IT RISE<br />
The upmarket fashion retailer had a<br />
small rise in operating profit as growth<br />
in the wider luxury sector continues to<br />
slow. Giorgio Armani’s operating profits<br />
rose by one per cent to €513m last year.<br />
RYANAIR ATTACKED OVER<br />
OSLO BASE CLOSURE<br />
Ryanair has come under attack for<br />
deciding to close its base at Oslo Rygge<br />
airport, 66 kilometres from the<br />
Norwegian capital, a move that is<br />
expected to result in the loss of 1,000<br />
jobs – after Norway introduced a new<br />
tax on air passengers.<br />
MORTGAGE RATES DROP ON<br />
HINTS <strong>OF</strong> BANK CUT<br />
Home buyers in April paid the lowest<br />
interest rates ever on their mortgages<br />
amid suggestions the Bank of England<br />
might cut rates. In April, the average<br />
borrower paid just 2.41 per cent on a<br />
new mortgage, down from 2.49 per cent<br />
in March and 2.64 per cent in April 2015.<br />
FITBIT NAMES FIRST WOMEN<br />
TO BOARD<br />
Fitbit named its first women to its<br />
board – Williams-Sonoma’s Laura Alber<br />
and Glenda Flanagan of Whole Foods –<br />
part of a recent movement by tech<br />
companies to hire more women as top<br />
decision makers.<br />
NEW CARS FOUND TO HAVE<br />
FAULTY TAKATA AIR BAGS<br />
At least four car makers confirmed<br />
equipping new vehicles with defective<br />
Takata air bags that eventually will need<br />
to be replaced. Toyota, Fiat Chrysler<br />
Automobiles, Volkswagen and<br />
Mitsubishi have all confirmed equipping<br />
some new vehicles with rupture-prone<br />
Takata air bags.
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
NEWS<br />
03<br />
Deutsche Boerse<br />
talks up LSE deal<br />
as cuts revealed<br />
WILLIAM TURVILL<br />
@wturvill<br />
A SENIOR Deutsche Boerse exec has<br />
described the company’s impending<br />
merger with the London Stock<br />
Exchange as “the last chance for<br />
Europe”, after the two giants revealed<br />
details of their proposed £21bn tie-up.<br />
Jeffrey Tessler told City A.M. that the<br />
deal would create a “global powerhouse”<br />
in Europe with the power to<br />
stimulate the continent’s struggling<br />
levels of economic growth.<br />
He was speaking after the stock<br />
exchanges yesterday revealed their<br />
merger could lead to 1,250 job losses<br />
as they target extra annual savings of<br />
€250m (£194m). These are in addition<br />
to previous annual savings totalling<br />
€450m.<br />
“Europe’s at a crossroads right now<br />
in a number of different respects, and<br />
certainly the one in front of us is 23<br />
June, Brexit. But before Brexit everything<br />
was not fine in Europe,” Tessler<br />
said, in an interview to be published in<br />
full next week.<br />
“To [stimulate growth in Europe],<br />
you need a capital market that’s<br />
vibrant. And at the base of a capital<br />
market would be a capital markets<br />
infrastructure. It’s hard to have a capital<br />
market without a capital markets<br />
infrastructure. And so what we have<br />
today are a number of good players in<br />
the market. But when I think about<br />
the future – and this is what gets me<br />
kind of excited – the idea of Deutsche<br />
Boerse and LSE becoming a global<br />
powerhouse, located in Europe, is<br />
exactly what Europe needs right now<br />
to stimulate growth.”<br />
He added: “If it doesn’t happen, and<br />
let’s say the infrastructure is owned by<br />
a US player, they don’t have the same<br />
interest in developing [it]. We have a<br />
home-grown interest in developing<br />
[it].”<br />
In the event that it does fail, though,<br />
Tessler echoed the words of Deutsche<br />
Boerse chief executive Carsten<br />
Kengeter, who said the company will<br />
be looking to make deals elsewhere.<br />
Tessler said: “Yes, Deutsche Boerse<br />
could go somewhere else and will be<br />
successful. But this is to me the last<br />
chance for Europe.”<br />
Shareholders will be asked to<br />
approve the merger in July.<br />
Uber raises $3.5bn from Saudi<br />
Arabia’s sovereign wealth fund<br />
JOSH MARTIN<br />
@JoshMartinNZ<br />
CONTROVERSIAL taxi app Uber has<br />
raised $3.5bn (£2.43bn) from Saudi<br />
Arabia’s sovereign wealth fund<br />
valuing the company at $62.5bn.<br />
The Saudi Arabian Public<br />
Investment Fund will now own<br />
approximately five per cent of Uber<br />
and the fund’s managing director<br />
Yasir al-Rumayyan will join the<br />
company’s board. Other board mem -<br />
bers includes Huffington Post<br />
co-founder Arianna Huffington.<br />
Uber co-founder and chief<br />
executive officer Travis Kalanick<br />
called the investment a “vote of<br />
confidence in our business”<br />
and is set to invest<br />
$250m in the<br />
Middle East<br />
to expand<br />
its<br />
operations in the region.<br />
The deal puts Uber’s total balance<br />
sheet, including cash and debt, at<br />
more than $11bn. In the first<br />
quarter, Uber boasted 395,000 active<br />
riders across the region, a<br />
five-fold jump from the<br />
first quarter of<br />
2015.<br />
There was no word<br />
on surge pricing in<br />
the Saudi stake<br />
PIRC IRKED Shareholder group pushes to<br />
shrink Sir Martin Sorrell’s WPP pay packet<br />
AN INFLUENTIAL<br />
shareholder<br />
group has called<br />
on investors to<br />
reject the £70m<br />
pay packet of<br />
WPP chief<br />
executive Sir<br />
Martin Sorrell.<br />
Shareholders<br />
have been<br />
advised to oppose<br />
the pay of the<br />
highest paid boss<br />
of any FTSE firm,<br />
dubbed<br />
“excessive”, by<br />
the investor<br />
advisory body<br />
Pirc yesterday.<br />
Channel 4 invests in firm behind<br />
Bear Grylls’ YouTube channel<br />
JOSH MARTIN<br />
@JoshMartinNZ<br />
IN A BID to ramp up its digital<br />
innovation strategy, Channel 4 has<br />
taken a minority stake in multimedia<br />
content company Barcroft Media<br />
Group for an undisclosed sum.<br />
The deal was Channel 4’s first<br />
investment as part of its Commercial<br />
Growth Fund, which was launched<br />
last year to help “high growth<br />
potential companies to build their<br />
business”. Barcroft’s core businesses<br />
include Barcroft TV, which launched<br />
a YouTube channel for popular<br />
Discovery channel show Bear Grylls:<br />
Man vs. Everest, and Barcroft Media,<br />
a content agency which licenses and<br />
distributes text, photography and TV<br />
documentaries to broadcasters in<br />
over 50 countries.<br />
Sam Barcroft, chief executive of<br />
Barcroft Media Group, told City A.M.:<br />
“Channel 4’s expertise will help us<br />
accelerate our business growth and<br />
fulfil ambitions of becoming a big<br />
player in the entertainment space.”
04 NEWS THURSDAY 2 JUNE 2016<br />
EU REFERENDUM<br />
Successful migration clampdown<br />
could mean higher retirement age<br />
CITYAM.COM<br />
JAKE CORDELL<br />
@JakeCordell<br />
HITTING the government’s net<br />
migration target would punch an<br />
£8bn hole in the public finances, and<br />
could lead to a smaller state pension<br />
or higher taxes.<br />
New analysis, out today, from the<br />
National Institute for Economic and<br />
Social Research found that reducing<br />
immigration to the “tens of<br />
thousands” would hit tax revenues<br />
by £3bn a year by 2032 and by at<br />
least £8bn a year by the middle of<br />
the century.<br />
To make up the shortfall, the<br />
government could raise the state<br />
pension age from 68 to 69, cut the<br />
annual pension allowance by £300 a<br />
year, or raise the rate of employees’<br />
national insurance from 12 per cent<br />
to 13.5 per cent.<br />
The Institute and Faculty of<br />
Actuaries, which commissioned the<br />
report, said that the potential<br />
shortfall could be offset if the fewer<br />
number of arrivals were higherskilled<br />
and had higher wages, and<br />
thus contributed more in tax.<br />
The report comes just one day after<br />
Leave campaigners presented their<br />
vision for an Australian-style pointsbased<br />
immigration system, which<br />
they believe would work for the UK<br />
economy and the wider public.<br />
HOW<br />
THE<br />
FUTURE<br />
WILL<br />
TECH-<br />
NOLOGY<br />
DISRUPT<br />
YOUR<br />
BUSINESS<br />
#howthefuture<br />
Find out now<br />
imperial.ac.uk<br />
/how-the-future<br />
Imperial means<br />
Intelligent Business<br />
Telford’s Jon Di-Stefano is so confident, he’d buy a plot of land in London on 22 June<br />
Brexit wouldn’t<br />
stop us building<br />
says developer<br />
HELEN CAHILL<br />
@HelCahill<br />
THE CHIEF executive of a top London<br />
property developer is so confident<br />
about the resilience of the housing<br />
market that he’d buy a plot the day<br />
before the EU referendum.<br />
Speaking to City A.M. on a day of<br />
strong results for the company, Jon<br />
Di-Stefano, chief executive of Telford<br />
Homes, said: “Even if we vote out, people<br />
aren’t going to disappear from<br />
London. We’re still going to need more<br />
homes.<br />
“We would go out and buy a site on<br />
22 June, because, regardless of the<br />
answer [from the EU referendum], we<br />
are confident we need those homes in<br />
London. We have to build.”<br />
Di-Stefano said that Telford Homes’<br />
strategy is to focus on the non-prime<br />
areas of London and to provide homes<br />
at the city’s average house price rather<br />
than building luxury properties.<br />
On luxury homes, he said: “It has<br />
gone too far. The reason supply is<br />
going down in prime areas is because<br />
people are nervous that they won’t be<br />
able to sell. We’re focussing on places<br />
like Tower Hamlets, Newham,<br />
Hackney, Greenwich and Lewisham.<br />
We are quite relaxed about developing<br />
in any of those areas and there is no<br />
one area we are looking at, because<br />
there is plenty of opportunity.<br />
“As long as our homes are affordable<br />
and they’re near good transport links -<br />
and most places are in London – then<br />
the demand is out there.”<br />
Telford Homes yesterday announced<br />
strong revenue growth in its final<br />
results for the year ending 31 March,<br />
with pre-tax profits at the company<br />
exceeding original market expectations.<br />
The firm’s revenue was up 42 per<br />
cent year-on-year, from £173.5m in<br />
2015 to £245.6m this year. Pre-tax profits<br />
were up by 28 per cent, to £32.2m,<br />
compared to £25.1m in 2015.<br />
Pre-tax profit is forecast to grow in<br />
the next three years and to exceed<br />
£50m in the year ending 31 March<br />
2019.<br />
The company’s total dividend for the<br />
year was 14.2p, compared with 11.1p<br />
last year.<br />
UNREGULATED<br />
Subscribe to City A.M.'s podcast: uncensored<br />
insight into the issues driving the City<br />
WWW.CITYAM.COM/PODCAST
CITYAM.COM<br />
Sterling smashed as<br />
polls point to close<br />
battle at ballot box<br />
JAKE CORDELL AND<br />
JAMES NICKERSON<br />
@JakeCordell & @nickersonjw<br />
STERLING has crashed down from a<br />
one-month high this week after a<br />
smattering of opinion polls showed<br />
support for the Leave camp has<br />
surged.<br />
The pound was trading at $1.441 last<br />
night, down more than three cents on<br />
the highs of $1.473 reached last week.<br />
Traders said volatility was only going<br />
to increase during the final three<br />
weeks of the referendum campaign.<br />
What was thought to be a shock poll<br />
from ICM earlier this week, which<br />
gave the Leave side a four-point lead<br />
over Remain, was followed yesterday<br />
by a YouGov survey which put the two<br />
sides level on 41 per cent.<br />
Bookmakers slashed their odds on<br />
the prospect of Britain voting to leave<br />
the EU in response to the polls.<br />
Leave is now a best price of 11/4,<br />
down from 4/1 a few days ago.<br />
“Recent polls have persuaded punters<br />
to hedge their bets back in the<br />
Leave camp. We’ve trimmed the odds<br />
of Brexit,” said Betway’s Alan Alger.<br />
Sporting Index said the polls had<br />
“triggered a frenzy of activity on our<br />
Brexit markets, with the vast majority…<br />
selling the Remain camp”.<br />
Jameel Ahmad, chief market analyst<br />
at FXTM, said “investors were<br />
generally beginning to underprice the<br />
possibility of a UK exit, as if it was a<br />
foregone conclusion that the UK<br />
would automatically vote to remain in<br />
the EU.<br />
“All of the risks for the pound are<br />
still pointing strongly to further weakness,”<br />
he added.<br />
Jeremy Corbyn believes the Tories will attack workers’ rights if there’s a Brexit vote<br />
THURSDAY 2 JUNE 2016<br />
EU REFERENDUM<br />
NEWS<br />
Corbyn raises<br />
Tory Brexit<br />
fears on rights<br />
05<br />
MARK SANDS<br />
@mksands<br />
LABOUR leader Jeremy Corbyn will<br />
today warn that Brexit would allow<br />
the Conservatives a strong hand in<br />
reducing workers’ rights.<br />
Speaking at the Institute of<br />
Engineering Technology, Corbyn will<br />
say: “Everything they have done as a<br />
government so far means we could<br />
not rely on them to protect the<br />
workplace rights that millions rely<br />
on.<br />
“A Tory Brexit negotiation would<br />
be a disaster for the majority of<br />
people in Britain.”<br />
He will add: “The threat to the<br />
British people is not the European<br />
Union – it is a Conservative<br />
government here in Britain.”<br />
It comes two weeks after Labour<br />
shadow chancellor John McDonnell<br />
warned against a “Tory Brexit” that<br />
he argued would bring further<br />
austerity measures to the UK.<br />
Investment drop could<br />
have winners and losers<br />
JAKE CORDELL<br />
@JakeCordell<br />
TOP UK and European businesses<br />
could see investment dry up if the<br />
UK votes to leave the European<br />
Union on 23 June, according to<br />
Standard and Poor’s (S&P).<br />
The ratings agency warned<br />
Brexit would “paralyse capital<br />
investment”, leave companies<br />
across the continent struggling to<br />
secure funds for “years to come”<br />
and “erode the competitive<br />
position” of a number of Europe’s<br />
biggest firms.<br />
However, many industries would<br />
be insulated from the drying-up of<br />
investment and S&P said Brexit<br />
could even be a boon for the UK’s<br />
burgeoning technology sector and<br />
fintech players. Analysts said Brexit<br />
could help challenger businesses<br />
steal a march on their bigger, more<br />
cumbersome rivals.<br />
“For technology companies… we<br />
see limited Brexit impact… With<br />
increased turbulence, we think<br />
nimble technology-based players<br />
may be better placed to capitalise<br />
than the larger traditional financial<br />
sector players, which may also be<br />
preoccupied with Brexit fallout in<br />
their core businesses.”<br />
In March London tech bosses<br />
came out against Brexit due to what<br />
some said was a strong reliance on<br />
foreign staff in technology startups.<br />
The retail, media, telecoms,<br />
consumer goods and pharma -<br />
ceutical industries could also<br />
emerge relatively unscathed in<br />
terms of lost investment.<br />
By contrast, industries that rely<br />
on big injections of capital, such as<br />
real estate, construction, aerospace,<br />
travel, and oil and gas would be hit<br />
hard. Investment into these sectors<br />
would falter while the UK’s<br />
relationship with the rest of the EU<br />
remains unclear and probably after<br />
depending on the terms of exit.<br />
There would “likely [be] a<br />
reduction in both domestic and<br />
foreign investment… potentially<br />
running to many years,” S&P said.<br />
S&P also warned that most<br />
businesses UP AND would DOWN suffer if the wider<br />
UK economy takes a downward turn<br />
after Would a vote be hit to leave. by Brexit<br />
Real estate<br />
Construction<br />
Aerospace and defence<br />
The capital goods<br />
and car industries,<br />
Chemicals<br />
Metals and mining<br />
Infrastructure<br />
Oil exploration and<br />
production companies<br />
Insulated from a potential hit<br />
Media and business<br />
services companies<br />
Technology<br />
Forest products<br />
Packaging<br />
European business chiefs call for the UK to vote<br />
to stay in the EU ahead of 23 June referendum<br />
BILLY BAMBROUGH<br />
@BillyBambrough<br />
BUSINESS leaders from across<br />
Europe have called for UK citizens<br />
to vote to remain in the Union.<br />
BusinessEurope issued a<br />
statement from its annual summit<br />
yesterday, saying its members<br />
“firmly wish” to see the UK stay an<br />
“active and positive” EU member.<br />
“The UK has played a crucial role<br />
over the past 40 years in shaping<br />
the development of Europe with<br />
trade and the single market at its<br />
core,” the group said. “A vote to<br />
leave the EU will only heighten the<br />
uncertainty around current and<br />
future investments as some tough<br />
negotiations will then begin.”<br />
Paul Drechsler, president of the<br />
Confederation of British Industry,<br />
said: “Our allies across 33 other<br />
European countries who speak for<br />
millions of firms of all sizes want<br />
to see us build on our decades-long<br />
partnership.”<br />
The UK goes to the polls on 23<br />
June to decide its future in the<br />
EU.
06 NEWS THURSDAY 2 JUNE 2016<br />
CITYAM.COM<br />
Bayer chief executive: Monsanto<br />
pursuit is a marathon not a sprint<br />
WILLIAM TURVILL<br />
@wturvill<br />
THE CHIEF executive of Bayer has<br />
said its attempted takeover of US<br />
genetically modified seeds company<br />
Monsanto will be a “marathon<br />
rather than a sprint”.<br />
The German drugs and chemicals<br />
giant confirmed it had made a<br />
$62bn (£42bn) offer for Monsanto<br />
last Monday.<br />
It was rejected the next day, with<br />
Monsanto describing the offer as<br />
“incomplete and financially<br />
inadequate”, but both companies<br />
have indicated a willingness to reach<br />
a deal.<br />
While Bayer’s share price has<br />
remained at around its lowest level<br />
in three years, Monsanto’s is up by<br />
about 20 per cent to $112 since news<br />
of German interest broke in mid-<br />
May.<br />
Shareholders and analysts have<br />
told City A.M. they expect Bayer to<br />
improve its offer, which currently<br />
stands at $122 per share.<br />
But comments from Bayer chief<br />
executive Werner Baumann suggest<br />
a completed deal may still be a long<br />
way off.<br />
“Our planned takeover of<br />
Monsanto will be a marathon rather<br />
than a sprint,” he told German<br />
magazine WirtschaftsWoche in an<br />
interview to be published tomorrow.<br />
As well as highlighting the need to<br />
get past Monsanto’s “constructive<br />
refusal” on the offer, Baumann also<br />
spoke of the regulatory challenges<br />
the deal faces.<br />
Bayer and Monsanto are both targets for protesters and the merger is no different<br />
Goldman Sachs<br />
positive on M&A<br />
despite 2016 fall<br />
WILLIAM TURVILL<br />
AND CAITLÍN MORRISON<br />
@wturvill & @citycait<br />
GOLDMAN Sachs has a positive outlook<br />
for mergers and acquisitions<br />
(M&A) activity in 2016 despite a slow<br />
start to the year.<br />
The bank’s president, Gary Cohn, yesterday<br />
said the conditions that led to a<br />
record year for M&A in 2015 still exist,<br />
as he talked up the business’s future<br />
prospects.<br />
“We still think in this lower growth<br />
environment with very cheap financing<br />
and low rates available that we’ll<br />
continue to see more of that merger<br />
activity over this part of the cycle,”<br />
Cohn told an investor conference in<br />
New York, Bloomberg reported. Cohn<br />
said cost savings “drive the M&A cycle<br />
last year”. He added: “Companies<br />
could merge themselves together and<br />
the rationale for the merger was to cut<br />
out expenses of duplicative costs.”<br />
Last year saw more than $5 trillion<br />
(£3.5 trillion) worth of deals, according<br />
to Dealogic statistics. The total for the<br />
first quarter of 2016 was $749.8bn,<br />
down 20 per cent year-on-year.<br />
Goldman Sachs also took a more positive<br />
view on M&A than most in April<br />
when chief executive Lloyd Blankfein<br />
wrote to shareholders, saying he saw<br />
“room to run” in the area in 2016.<br />
“By most measures, 2015 was a<br />
robust year for M&A,” he said.<br />
“However, volumes as a percentage of<br />
market capitalisation are still below<br />
prior-cycle peak levels.<br />
“We see this as a sign that there is<br />
still some room to run for M&A activity,<br />
particularly when equity markets<br />
show signs of sustained stabilisation.”<br />
Goldman Sachs was the highest<br />
ranking bank for M&A volume last<br />
year. According to Dealogic, it advised<br />
on more than $1.8 trillion in<br />
announced deals.<br />
Meanwhile, it was reported yesterday<br />
that Goldman Sachs has cut dozens of<br />
investment banking jobs across its<br />
global locations in recent weeks.<br />
Affected roles included managing<br />
directors, executive directors and vice<br />
presidents in the mergers and debt<br />
and equity capital markets teams,<br />
according to Bloomberg.<br />
The job cuts affected offices in<br />
London, New York and Hong Kong,<br />
among others, and were made on top<br />
of the five per cent staff reduction<br />
which sees Goldman get rid of employees<br />
deemed to be underperforming.<br />
Austin Reed all about it on Facebook and Twitter: staff learned of sackings on social<br />
Austin Reed staff slam retailer<br />
for learning of demise online<br />
HELEN CAHILL<br />
@HelCahill<br />
JUST as the heritage retailer Austin<br />
Reed shut its shops for good, City A.M.<br />
has learned that most of the staff<br />
found out they had lost their jobs via<br />
social media.<br />
An employee at one of the firm’s<br />
major London concessions told City<br />
A.M.: “About 80 per cent of the staff<br />
found out about it on social media.<br />
“The staff were absolutely in bits<br />
because they were given no<br />
warning.”<br />
A spokesman at Alix Partners,<br />
Austin Reed’s administrators, said:<br />
“Some of the rents were due on the<br />
buildings, but that’s not the reason<br />
we closed the stores – we owed every<br />
supplier a lot of money.<br />
“We addressed the managers<br />
yesterday morning, and there was a<br />
communication plan in place. But<br />
social media just blows everything<br />
out of the water.”<br />
Austin Reed began closing stores<br />
over the Bank Holiday weekend,<br />
when 28 stores were shut. Rents were<br />
due on some of the stores on 1 June.<br />
Tyrie raises<br />
concerns over<br />
crowdfunding<br />
MARK SANDS<br />
@MkSands<br />
TREASURY Select Committee chair<br />
Andrew Tyrie yesterday raised fears<br />
of insufficient regulation around<br />
crowdfunding.<br />
Writing to the chief executives of<br />
the Financial Conduct Authority<br />
(FCA) and the Prudential<br />
Regulatory Authority (PRA), Tyrie<br />
asked them to question whether<br />
they are paying enough attention to<br />
the risks associated with the<br />
growth of peer-to-peer lending.<br />
Crowdfunding has become a<br />
hugely popular way for businesses<br />
to raise cash, with campaigns<br />
launched for everything from<br />
challenger banks to cocktail bars.<br />
However, Tyrie said that<br />
watchdogs need to consider<br />
whether investors would benefit<br />
from stronger consumer<br />
regulation.<br />
“But greater regulation is not<br />
necessarily the answer. If this<br />
market can substantially increase<br />
competition it may offer benefits to<br />
the consumer,” he wrote to the<br />
FCA’s acting chief Tracey<br />
McDermott and PRA boss Andrew<br />
Bailey. “It is crucial that the<br />
regulator is doing what it can to<br />
find the right balance between<br />
these risks and opportunities.”<br />
Tyrie also asked McDermott to<br />
lay out responsibilities for ensuring<br />
that accurate information is<br />
conveyed to investors.<br />
Graduates on the money when it<br />
comes to guessing starting salaries<br />
The average expectation for a starting salary for graduates is just over £28,300<br />
JAKE CORDELL<br />
@JakeCordell<br />
SALARY expectations among new<br />
graduates have surged by 37 per cent<br />
over the past five years, according to<br />
recruitment website reed.co.uk, as<br />
students increasingly feel they should<br />
be getting more bang for their buck.<br />
Despite that, graduates aren’t<br />
pricing themselves out of the<br />
market. The average salary<br />
expectation is £28,362, only 1.4 per<br />
cent higher than the actual typical<br />
starting salary of £27,966.<br />
Back in the early days of the<br />
recovery, graduates were actually<br />
undervaluing themselves, with the<br />
class of 2012 expecting to scoop a job<br />
paying just £20,664 after university,<br />
nearly one-fifth down on the actual<br />
starting salaries offered to them at<br />
the time of £25,357.<br />
Surprisingly, graduates in the<br />
capital don’t strike it lucky when it<br />
comes to top spot on the salary<br />
league table – falling behind<br />
Liverpool and Reading. London does,<br />
however, have the most positions<br />
available for graduates.<br />
However, some graduates are in for<br />
a big shock when they get their first<br />
job offer. New starters in IT think<br />
they’ll be walking into a £37,000 a<br />
year job –16 per cent above the actual<br />
average starting salaries.
Free 10 year<br />
guarantee
08 NEWS THURSDAY 2 JUNE 2016<br />
Blockchain for<br />
banks launched<br />
by UK startup<br />
LYNSEY BARBER<br />
@lynseybarber<br />
A LONDON startup which boasts the<br />
former chairman of Barclays on its<br />
board has launched a new blockchain<br />
platform for financial institutions.<br />
Several organisations are in the race<br />
to build a distributed ledger platform<br />
with blockchain technology, which<br />
can be used across the industry for<br />
processing transactions more quickly<br />
and simply than current methods.<br />
That includes the R3 consortium of<br />
some of the world’s biggest banks and<br />
Digital Asset Holdings, run by former<br />
JP Morgan banker Blythe Masters.<br />
But Setl, founded by several industry<br />
veterans and chaired by Sir David<br />
Walker, is the first to launch a<br />
working blockchain-based platform<br />
which can be used by banks and financial<br />
institutions for settling transactions<br />
– from securities to foreign<br />
exchange.<br />
OpenCSD is Setl’s first commercial<br />
launch and will offer companies the<br />
chance to adopt blockchain without<br />
having to develop the technology<br />
itself, which can be difficult for smaller<br />
firms with no dedicated innovation<br />
or digital teams.<br />
“The time has come to stop talking<br />
about the characteristics of block -<br />
chain and to start realising its<br />
promise.<br />
“Our OpenCSD platform will revolutionise<br />
the way securities depositories<br />
and payments systems are organised,”<br />
said Setl chief executive and founder<br />
Peter Randall, who previously<br />
founded equities trading platform<br />
Chi-X.<br />
The platform – which Setl claims is<br />
the first of its kind – is compliant<br />
with existing and forthcoming regulation,<br />
including Europe’s Central<br />
Securities Depositories Regulation.<br />
Setl is privately funded by its<br />
founders, but hired Caroline Silver of<br />
Moelis & Company late last year to<br />
lead fundraising for the startup.<br />
Jeff Bezos has delivered a stinging attack on Donald Trump’s attitude to fee speech<br />
Bezos attacks Trump and hopes<br />
industry will be moved to Mars<br />
LYNSEY BARBER<br />
@lynseybarber<br />
AMAZON’S Jeff Bezos yesterday<br />
weighed in on Donald Trump and<br />
space travel.<br />
Bezos was far from complimentary<br />
about the presumptive Republican<br />
party presidential candidate.<br />
On property magnate Trump, who<br />
recently received the dubious backing<br />
of North Korea’s Kim Jong-un, Bezos<br />
said: “One thing that I think Donald<br />
Trump is doing that is not approp -<br />
riate, working to freeze or chill the<br />
media that are examining him.”<br />
He also said heavy industries<br />
should be moved to space – perhaps<br />
to Mars – leaving the earth to be “re -<br />
zoned” for living and shopping.<br />
CITYAM.COM<br />
Goldman and<br />
Amazon back<br />
security startup<br />
LYNSEY BARBER<br />
@lynseybarber<br />
AMAZON and Goldman Sachs are<br />
among investors to have put<br />
millions into a cyber security<br />
startup as worries grow around<br />
keeping private information<br />
secure for businesses and<br />
consumers.<br />
Ionic Security, which works with<br />
several Fortune 100 companies, has<br />
landed $45m (£31m) in a series D<br />
round of funding led by Hayman<br />
Capital and bringing total funding<br />
of the Atlanta-based startup to<br />
$122m.<br />
Goldman, already a customer of<br />
the company, joins existing<br />
investors such as Google and Silicon<br />
Valley venture capital firm Kleiner<br />
Perkins.<br />
“We believe that Ionic’s platform<br />
addresses one of the biggest<br />
unsolved security problems for<br />
large enterprises today: how to<br />
enable employees to utilise modern<br />
communication and collaboration<br />
platforms while also maintaining<br />
adequate controls and security<br />
standards,” said Goldman’s<br />
managing director and head of<br />
software investment banking Ward<br />
Waltemath.<br />
Inmarsat relegated from FTSE 100<br />
amid gruelling trading conditions<br />
Samsung seeks patent<br />
for a foldable phone<br />
JOSH MARTIN<br />
@JoshMartinNZ<br />
DRUGS giant Hikma Pharmaceuticals<br />
is set to enter the FTSE 100 index as<br />
satellite services firm Inmarsat drops<br />
to the FTSE 250.<br />
The changes will take effect on 20<br />
June, London Stock Exchange said in<br />
a statement yesterday.<br />
Hikma Pharmaceuticals’s<br />
promotion to Britain’s blue chip<br />
index comes after its shares surged 45<br />
per cent since mid-March. The<br />
company expects its full-year group<br />
revenue to be between $2bn (£1.3bn)<br />
and $2.1bn (£1.4bn).<br />
Inmarsat, on the other hand, has<br />
seen its shares fall 37 per cent since<br />
early February amid tough trading<br />
conditions in its maritime and<br />
government markets businesses. The<br />
company warned in May that<br />
revenues for the year ahead would be<br />
much lower than expected.<br />
Other companies entering FTSE 250<br />
index include Metro Bank,<br />
Countryside Properties, Hill & Smith<br />
Holdings, Smurfit Kappa Group and<br />
Ascential among others.<br />
Meanwhile, companies relegated<br />
from the FTSE 250 include<br />
Highbridge Multi-Strategy Fund,<br />
Interserve, Jimmy Choo, Lookers,<br />
Melrose Industries, Northgate and<br />
Ophir Energy.<br />
LYNSEY BARBER<br />
@lynseybarber<br />
KOREAN tech giant Samsung has<br />
filed for a patent for a foldable<br />
smartphone.<br />
Samsung has long talked about<br />
its plans for a flexible, foldable<br />
smartphone over the years,<br />
however the technology has not<br />
quite kept up with aspirations.<br />
The company’s most recent<br />
flagship devices, including this<br />
year’s S7, have inched closer to full<br />
foldability with curved screen<br />
edges.<br />
However, the latest patent, which<br />
appears to look similar to the<br />
Galaxy models, would indicate a<br />
major step forward.<br />
The patent was filed in November<br />
last year, according to Patently<br />
Mobile, but was published only this<br />
week.<br />
JOOLS HOLLAND IS PATRON <strong>OF</strong> MUSIC<br />
AT BOISDALE <strong>OF</strong> CANARY WHARF<br />
LONDON’S GREATEST LIVE MUSIC RESTAURANT<br />
THE CONGO FAITH HEALERS<br />
FRI, JUNE 3 AT 21:45<br />
DINNER & SHOW £40.00<br />
COCKTAIL & SHOW £15.00<br />
THE 4TUNES<br />
SAT, JUNE 4 AT 21:45<br />
DINNER & SHOW £45.00<br />
COCKTAIL & SHOW £20.00<br />
‘‘<br />
A real supper club with wonderful ‘Boisdale’<br />
Tatler<br />
ERROL LINTON: BLUES FROM<br />
DEEPEST BRIXTON<br />
TUE, JUNE 7 - THUR, JUNE 9 AT 21:15<br />
DINNER & SHOW FROM £30.00<br />
COCKTAIL & SHOW FROM £15.00<br />
LIVE MUSIC EVERY NIGHT<br />
A TRIBUTE TO THE BUENA VISTA<br />
SOCIAL CLUB<br />
SAT, JUNE 11 AT 21:45<br />
DINNER & SHOW FROM £40.00<br />
COCKTAIL & SHOW FROM £15.00<br />
Tickets from £5.00. See full listings & purchase tickets<br />
at www.boisdale.co.uk or ring 0207 715 5818
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
NEWS<br />
09<br />
How to do things<br />
differently in the<br />
pub industry<br />
Ralph Findlay is<br />
the head of<br />
Marston’s<br />
Francesca Washtell talks to Marston’s<br />
boss Ralph Findlay about how to stay<br />
resilient in the modern pub sector<br />
IT’S FAIR to say it’s been a challenging<br />
decade for the UK’s pub sector.<br />
First, it was hit by the smoking ban<br />
in 2007, then by the recession in<br />
2009. Revenues across the industry<br />
have also been affected by broadly<br />
falling levels of alcohol consumption.<br />
Pub companies have been forced to<br />
rethink their strategies to stay<br />
resilient in a changed market, and<br />
also to redefine their purpose.<br />
Many have turned traditionally<br />
drinking-focused, community pubs<br />
into foodie hotspots.<br />
Data released this week showed the<br />
food-led branded pub segment has<br />
grown by 17 per cent in the last year<br />
and 47 per cent in the past five years.<br />
Marston’s, the independent brewer,<br />
nationwide pub operator and, most<br />
recently, lodge provider, might have<br />
taken the pub sector’s focus on food<br />
on board, but it’s also adopted a different<br />
approach.<br />
According to chief executive Ralph<br />
Findlay, avoiding London and making<br />
sure it maintains a diverse business<br />
have been key for the FTSE 250-listed<br />
company.<br />
It has mostly eschewed the capital in<br />
favour of the regions and suburban<br />
areas where the company can be a big<br />
fish in the small pond of less competitive<br />
pub markets.<br />
“The London market is incredibly<br />
vibrant from the point of view of consumers,<br />
but for our sector the competition<br />
is very intense,” Findlay told City<br />
A.M.<br />
“Also, the cost of property is a major<br />
barrier. We are a returns-focused business<br />
and making high returns in<br />
London is harder.”<br />
While the company<br />
operates a handful of<br />
pubs in London,<br />
including the Fire<br />
Station at Waterloo<br />
and Pitcher and<br />
Piano on Cornhill,<br />
the majority of its<br />
1,600 or so pubs are<br />
located elsewhere.<br />
“We aim to be the<br />
best pub for miles around and that is<br />
a greater challenge in<br />
London.”<br />
Although the group<br />
has locations across<br />
England, Scotland and<br />
Wales, you would be<br />
forgiven for not being<br />
aware of it.<br />
As well as avoiding<br />
London, the company<br />
shuns national advertising<br />
campaigns, opting<br />
for local advertising and<br />
sponsored events promotion.<br />
“We think we might<br />
turn people off if we operate<br />
with big brand behaviour,”<br />
Findlay said.<br />
We might turn<br />
people off if we<br />
operate with big<br />
brand behaviour<br />
It’s a strategy that would seem to be<br />
working for the firm. Like-for-like sales<br />
across its managed and franchised<br />
pubs grew three per cent last year,<br />
higher than the market average. The<br />
average profit for each of its pub was<br />
13 per cent in 2016 and up 44 per cent<br />
since 2012.<br />
Marston’s beer business has continued<br />
to grow strongly, with the group’s<br />
underlying profits in 2015 driven by<br />
its acquisition of brewer Thwaites last<br />
March.<br />
While its pub business accounts for<br />
around 90 per cent of profits, Findlay<br />
maintains that the brewery is still the<br />
“beating heart” of Marston’s, both for<br />
the company and its employees.<br />
Among its many ales the company<br />
brews Hobgoblin, Banks’s Bitter and<br />
Pedigree.<br />
However, the company is notably not<br />
precious about maintaining a monopoly<br />
of its own drinks at its pubs.<br />
Some 80 per cent of the beers sold in<br />
Marston’s pubs are not manufactured<br />
by the company.<br />
A part of its diversification strategy<br />
has also been to look to take over other<br />
smaller brewers, while maintaining<br />
an independent, craft beer feel.<br />
“In the mid-2000s, we looked at the<br />
US market and saw that, while consolidation<br />
was what everyone had expected,<br />
actually the market was getting<br />
more and more fragmented,” Findlay<br />
said.<br />
Marston’s took over Ryland<br />
Thompson and its subsidiary Refresh,<br />
which included the Oxfordshire-based<br />
Wychwood Brewery in 2008, and<br />
acquired the Hampshire-based<br />
Ringwood<br />
Brewery in 2007.<br />
As for the<br />
future, the company<br />
is aiming to<br />
build 20 new<br />
pubs per year, cultivating<br />
its premium<br />
segment of<br />
the market, franchised<br />
business<br />
and destination<br />
lodge arm.<br />
“I think the key<br />
thing in our market<br />
is to be able to<br />
move and be<br />
agile,” Findlay<br />
said.<br />
“What it does<br />
mean is that we<br />
don’t have all our<br />
eggs in one basket,”<br />
he added.<br />
“That’s something<br />
that the micro -<br />
brewers are good at<br />
and so are we.<br />
“We have a<br />
number of areas<br />
where we try to grow<br />
the business.”
10 NEWS THURSDAY 2 JUNE 2016<br />
Match.com tops<br />
list of Britain’s<br />
thriftiest firms<br />
BILLY BAMBROUGH<br />
@BillyBambrough<br />
DATING site Match.com, White Dark –<br />
the artistic company of sculptor Anish<br />
Kapoor, and the Royal Collection<br />
Trust, have all been named as some of<br />
the UK’s thriftiest small companies.<br />
The research, published today and<br />
carried out by company intelligence<br />
provider DueDil, named 156 companies<br />
in the UK with positive net<br />
assets and a turnover between £30m-<br />
£50m, and who hold between 50 per<br />
cent and 80 per cent of their assets as<br />
cash.<br />
Others include the Watch Tower<br />
Bible and Tract Society of Britain, BBC<br />
Media Action – the BBC’s internat -<br />
ional development charity – and the<br />
Scottish Football Association.<br />
Having a lot of cash on the books<br />
isn’t always a good thing – though<br />
may be because the firm is saving up<br />
for an acquisition or has had higher<br />
than expected sales – and could mean<br />
assets are not being used effectively.<br />
Credit rating agency Moody’s issued<br />
a report last year suggesting that 672<br />
major European companies were<br />
together holding about €870bn<br />
(£674bn) at the end of 2014.<br />
In Japan listed companies were<br />
thought to have amassed a<br />
combined cash pile of $2.2 trillion<br />
(£1.53 trillion) – a staggering 40 per<br />
cent of the country’s gross domestic<br />
product.<br />
Some of the biggest tech companies<br />
in the world are the worst offenders<br />
when it comes to hoarding cash –<br />
though this means they have plenty<br />
of cash on hand when the market<br />
quickly shifts, allowing them to buy<br />
up competitors.<br />
iPhone maker Apple has hoarded<br />
over $233bn in cash. There have been<br />
repeated calls from investors for the<br />
company to return more of its cash to<br />
shareholders – despite the Californiabased<br />
company paying out $2.9bn in<br />
mid-May.<br />
ALL HAIL ROYAL MAIL Postal service<br />
reaches pay deal with workers’ union<br />
ROYAL Mail yesterday said it reached a one-year pay deal with the Communication<br />
Workers Union (CWU) that would increase workers’ base salary by 1.6 per cent. The<br />
CWU will recommend that its members accept the offer for the year 2016-17.<br />
CITYAM.COM<br />
Money Advice<br />
Service to offer<br />
£7m in funding<br />
MARK SANDS<br />
@mksands<br />
THE MONEY Advice Service has<br />
launched a new £7m fund to<br />
support organisations trialling<br />
efforts to improve financial<br />
capability.<br />
The What Works Fund will<br />
support projects seeking to build<br />
quantifiable evidence on the type<br />
of interventions that can make a<br />
difference to individuals.<br />
It comes ahead of the close of a<br />
Treasury consultation next week<br />
looking reforms to the MAS, which<br />
would see it become a purely<br />
commissioning organisation,<br />
offering limited services directly.<br />
A successor money guidance<br />
organisation is expected in 2018.<br />
Commenting on the funding<br />
programme, the MAS chief<br />
executive Caroline Rookes said:<br />
“This will help organisations from<br />
across the sector to fund and<br />
deliver interventions that we know<br />
make a difference to people’s<br />
financial capability.<br />
“It will also help to provide the<br />
new money guidance organisation<br />
with information needed to<br />
commission effective services from<br />
day one.”<br />
Watchdog dishes out £2.4m fine for<br />
historic PPI complaints mishandling<br />
Solicitors’ body holds<br />
off over super-exam<br />
HAYLEY KIRTON<br />
@HayleyLEK<br />
CT CAPITAL yesterday was slapped<br />
with a £2.4m fine by the City<br />
watchdog for historic failings in its<br />
Payment Protection Insurance (PPI)<br />
complaint handling procedures.<br />
The Financial Conduct Authority<br />
(FCA) issued the £2,360,900 fine in<br />
relation to the mishandling of PPI<br />
complaints between May 2011 and<br />
November 2013, which resulted in<br />
customers missing out on redress<br />
repayments to which they were<br />
entitled. The firm would have been<br />
fined just shy of £3m, but received a<br />
20 per cent discount for agreeing to<br />
settle at an early stage.<br />
In particular, the FCA criticised<br />
the firm for failing to put into place<br />
various provisions on the handling<br />
of such complaints until November<br />
2011, despite these coming into force<br />
in December 2010.<br />
“Failing to handle complaints<br />
appropriately means that firms risk<br />
treating customers unfairly for a<br />
second time and it’s important that<br />
firms get this right,” said Mark<br />
Steward, director of enforcement<br />
and market oversight at the FCA.<br />
“We have taken action against firms<br />
on numerous occasions and there’s<br />
no excuse for firms continuing to get<br />
it wrong.”<br />
HAYLEY KIRTON<br />
@HayleyLEK<br />
THE SOLICITORS Regulation Authority<br />
(SRA) yesterday delayed making a decision<br />
on the introduction of a so-called<br />
super exam.<br />
While the SRA maintained that it<br />
still believed there was a strong case<br />
for the Solicitors Qualifying Exam, it<br />
has extended its timetable to work out<br />
some of the detail.<br />
“I think the case for a form of centralised<br />
assessment is strong,” said<br />
Paul Philip, SRA chief executive. “It<br />
addresses the problem that, currently,<br />
qualifications are not comparable –<br />
multiple courses and exams mean<br />
that standards can vary significantly<br />
and there is a lack of transparency.<br />
“Any new assessment needs to be fair<br />
and consistent and ensure that new<br />
solicitors can meet the high standards<br />
that the public and employers expect.”<br />
Feeling Tired?<br />
Private equity giants storm into Bank of<br />
America-owned MBNA credit card auction<br />
14 micronutrients.<br />
With iron & vit. B12 which<br />
support the reduction of<br />
tiredness & fatigue.<br />
45<br />
YEARS<br />
VITABIOTICS<br />
DELICIOUS LIQUID<br />
MADE IN BRITAIN<br />
From , ,<br />
supermarkets, health<br />
stores, chemists &<br />
www.vitabiotics.com<br />
BILLY BAMBROUGH<br />
@BillyBambrough<br />
THE AUCTION of credit card giant MBNA is<br />
becoming crowded, as three of the world’s<br />
biggest private equity firms prepare bids.<br />
Cerberus, Cinven, and TPG are considering<br />
bidding for MBNA, potentially putting them<br />
up against high street banks Lloyds Banking<br />
Group and challenger Virgin Money, which<br />
emerged as likely suitors last week.<br />
MBNA has a 11 per cent market share of<br />
credit cards across the UK, giving it a loan<br />
book of around £7bn. The business is thought<br />
to be worth hundreds of millions of pounds.<br />
MBNA is currently owned by Bank of<br />
America, though the bank has been looking<br />
to exit its non-domestic markets since the<br />
financial crisis and has already sold of the<br />
majority of its assets in Europe.<br />
The auction is understood to be in its early<br />
stages, and is expected to take several months<br />
to complete.<br />
Last week, it was reported that Lloyds,<br />
which has a 15 per cent share of the credit<br />
card market, is thought to be interested<br />
in MBNA, as well as Virgin Money, which<br />
has grown quickly since its IPO in<br />
November 2014. It wouldn’t be the first<br />
time Virgin Money has expressed an<br />
interest in MBNA. In December of 2014,<br />
Virgin Money bought £363m of assets<br />
from MBNA.<br />
MBNA employs more than 1,500 staff<br />
at its base in Chester and has over five<br />
million UK customers.<br />
A deal to buy the business, which issues<br />
cards under the brands of dozens of<br />
partners such as Premier League football<br />
clubs Arsenal and Manchester United,<br />
would be likely to cost a purchaser of MBNA<br />
at hundreds of millions of pounds and<br />
possibly more. A successful exit for BoA<br />
would underline the ongoing efforts of<br />
global banks to dispose of non-core<br />
operations amid regulatory<br />
reforms introduced since the<br />
financial crisis of 2008.<br />
News of the private<br />
equity firms’ interest<br />
was first reported by<br />
Sky News.<br />
MBNA, Cerberus,<br />
Cinven, and TPG all<br />
declined to comment.<br />
Five firms are<br />
considering a bid for<br />
MBNA
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
NEWS<br />
11<br />
THECAPITALIST<br />
EDITED BY TRACEY BOLES<br />
DONALD’S GOT TIMING HAVING<br />
UPSTAGED HIS RIVALS, IS <strong>BREXIT</strong> NEXT?<br />
Got A Story? Email<br />
thecapitalist@cityam.com<br />
Why airport drinking doesn’t fly<br />
GATWICK’S “Operation Disrupt” initiative<br />
to police alcohol consumption<br />
in its terminals comes into effect this<br />
week, as it strives to clamp down on<br />
drunken and rowdy behaviour. It may<br />
sound harsh but judging by the<br />
results of a new survey, it’s not before<br />
time<br />
The majority of British holidaymakers<br />
(62 per cent) admit they head<br />
“straight to the bar” as soon as they<br />
reach the airport departure lounge,<br />
according to global travel<br />
website, Cheapflights.co.uk.<br />
Some 28 per cent have had “one too<br />
many” before getting on the plane.<br />
Some start as early as 8am.<br />
Andrew Shelton, managing director<br />
of Cheapflights.co.uk, said: “At any<br />
other time, downing three drinks at<br />
8am would be unthinkable, but some<br />
holidaymakers adopt an attitude of ‘it<br />
must be after lunchtime somewhere<br />
in the world’.” Many are denied boarding<br />
as a result. If that doesn’t put you<br />
off, think of the cost: 17 per cent of<br />
those asked confessed they had overspent<br />
in the airport shops after having<br />
one too many. The average overspend<br />
is a whopping £1,239.<br />
DONALD Trump is to visit the UK this month to mark the opening of his Scottish golf<br />
resort. The presumptive Republican nominee for the US presidency will visit on 24<br />
June, one day after the referendum. What’s his game?<br />
CHILL OUT, YOU’RE A BANKER<br />
Bankers and work-life balance don’t go<br />
hand in hand – but UBS is trying to<br />
change that. More than 6,000 people<br />
working at UBS’ investment banking<br />
division globally are set to get two hours<br />
of “personal time” every week as part of<br />
the bank’s “take two” initiative. The<br />
scheme, that was started by investment<br />
bank president Andrea Orcel following a<br />
staff survey, is being implemented to<br />
reduce stress levels and lighten workloads<br />
of bankers. Launched on 4 May, the<br />
scheme offers at least two hours of<br />
personal time to bankers provided their<br />
co-workers are happy to cover for them.<br />
The Capitalist’s money is on takings being<br />
up at nearby bars and clubs.<br />
QUOTE <strong>OF</strong> THE DAY<br />
I’ve tried but<br />
it’s hard…<br />
Gavin Sibthorpe,<br />
Jeremy Corbyn’s<br />
events officer, when<br />
asked for a Vice<br />
documentary whether<br />
he’d tried to get<br />
Corbyn to dress<br />
smarter.<br />
Halfords cycles to increase<br />
in profit and signs up Trott<br />
CAITLÍN MORRISON<br />
@citycait<br />
MOTORING and cycling<br />
retailer Halfords<br />
yesterday unveiled a<br />
new tie-up with an<br />
Olympic cyclist.<br />
The announcement<br />
came as Halfords<br />
reported an increase<br />
in revenue and profit<br />
in its preliminary<br />
results for the 2016<br />
financial year.<br />
Sales were up 1.5 per cent<br />
like-for-like, to £1.02bn from £1bn,<br />
with £869m coming from the<br />
group’s retail operations, and<br />
£153m made through its<br />
autocentres. Profit before tax rose<br />
by 0.5 per cent to £81.5m from<br />
£81.1m.<br />
The company reduced its<br />
net debt by 22.5 per cent<br />
to £47.9m from £61.8m.<br />
The firm announced<br />
that it was launching a<br />
Halfords chief executive<br />
Jill McDonald<br />
new collaboration with<br />
Olympic gold medallist<br />
Laura Trott, to create a new<br />
range of limited edition<br />
perform ance bikes for women.<br />
Halfords has previously collaborated<br />
with Bradley Wiggins, Victoria<br />
Pendleton and Chris Boardman.
12 NEWS THURSDAY 2 JUNE 2016<br />
Defined benefit<br />
pensions facing<br />
a £310bn deficit<br />
HAYLEY KIRTON<br />
@HayleyLEK<br />
THE LEVEL of funding across defined<br />
benefit (DB) schemes has worsened<br />
over the past year, figures yesterday<br />
showed.<br />
According to the analysis by JLT Employee<br />
Benefits, the total deficit across<br />
all private sector DB schemes has increased<br />
to £310bn at end of last month,<br />
up from £255bn the same time in 2015.<br />
“Pension scheme deficits have<br />
reached record levels, with the total<br />
deficit for all UK private sector pension<br />
schemes exceeding the £300bn mark<br />
for the first time in May,” said Charles<br />
Cowling, director at JLT Employee Benefits.<br />
“Conditions are getting ever more<br />
challenging for pension schemes with<br />
prolonged low interest rates and uncertainty<br />
in the markets ahead of the EU<br />
referendum.”<br />
The black hole in FTSE 100 companies’<br />
plans was looking particularly<br />
dark, with the total DB scheme deficit<br />
growing to £100bn, up from £80bn at<br />
the end of May 2015.<br />
Meanwhile, the funding level across<br />
all of the UK’s DB schemes slumped<br />
from 83 per cent last year to 80 per cent<br />
this year, while funding levels for FTSE<br />
100 companies dropped from 87 per<br />
cent to 85 per cent. Cowling continued:<br />
“There isn’t too much prospect of imminent<br />
relief from markets either, as<br />
the nervousness surrounding the EU<br />
referendum is causing short-term<br />
volatility. With interest rates looking to<br />
stay low for some time yet, it seems unlikely<br />
that pension schemes will benefit<br />
from either an exit or a remain vote.<br />
While companies should look to continue<br />
to seek opportunities to reduce<br />
risk and settle pension liabilities, they<br />
may wish to wait until after 23 June<br />
when there may be greater clarity on<br />
the shorter term outlook for markets.”<br />
DB pension schemes are in the spotlight,<br />
with the black hole in BHS’ fund<br />
worth £571m sparking a parliamentary<br />
inquiry.<br />
Those aged 18-24 years-old spend the most per person on their summer holidays<br />
Brits splash out two and a half<br />
months’ salary on family hols<br />
BILLY BAMBROUGH<br />
@BillyBambrough<br />
THE AVERAGE British family will<br />
spend two and half months’ wages<br />
on their summer holiday, according<br />
to new research.<br />
A family of four will spend an<br />
average of £1,074.40 per person on an<br />
annual break – equal to one<br />
breadwinner’s after-tax pay total for<br />
two and a half months’, based on the<br />
average wage of £26,411, e-tailer Give<br />
as you Live found.<br />
Among cities in the UK, sunhungry<br />
Glaswegians are the biggest<br />
spenders among us, splashing<br />
£1,922.97 per person. Londoners are<br />
far more restrained, however,<br />
forking out an average of £1,032.58.<br />
CITYAM.COM<br />
No power to the<br />
people: French<br />
strikes intensify<br />
BATE FELIX<br />
FRANCE’S CGT union workers<br />
voted yesterday to start rolling<br />
strikes in the power sector,<br />
including at all 19 nuclear power<br />
plants, as part of nationwide<br />
protests aimed at forcing the<br />
government to withdraw a<br />
disputed planned labour reform.<br />
The strike cut French power<br />
output from yesterday evening as<br />
workers downed tools at plants,<br />
but it is unlikely to lead to<br />
blackouts due to a rule that obliges<br />
unions to maintain a minimum<br />
level that prevents outages.<br />
State-controlled utility EDF may,<br />
however, be forced to increase<br />
electricity imports from<br />
neighbouring countries to meet<br />
demand.<br />
“All power production sites voted<br />
to strike from [today]. All 19<br />
nuclear plants voted for the strike.<br />
We will start cutting power<br />
output,” Laurent Langlard, CGT<br />
union official at power utility EDF,<br />
said last night.<br />
Langlard said CGT members at<br />
hydro and fuel-powered stations<br />
also voted for the strike.<br />
The strike has also hit the French<br />
rail and oil sectors, disrupting fuel<br />
supplies.<br />
Reuters<br />
Recently joined City Giving Day<br />
House price growth falls<br />
to lowest since October<br />
Why are you supporting<br />
CGD?<br />
City Giving Day helps companies to<br />
communicate their contributions to<br />
society beyond pure business<br />
performance. The day allows us to<br />
celebrate our partners and employees,<br />
thanks to whom we are able to<br />
achieve sustained impact through our<br />
strategic Community Affairs<br />
programme.<br />
Which charities do you support?<br />
UBS is committed to overcoming<br />
disadvantage by supporting<br />
education and social<br />
CHARITY IN ACTION<br />
Since attending<br />
IntoUniversity in 2011<br />
after seeking space to<br />
study away from his<br />
large family, Adetayo, a<br />
student at UBS's partner<br />
school The Bridge<br />
Academy, has accessed<br />
27 programmes and<br />
aspires to attend a<br />
Russell Group University.<br />
entrepreneurship initiatives through<br />
funding and utilising the skills of our<br />
people. 40% of our UK staff<br />
volunteered in 2015. The Bridge<br />
Academy is our flagship education<br />
partner but other significant partners<br />
include IntoUniversity, Young<br />
Foundation and Enabling Enterprise.<br />
How will you celebrate CGD?<br />
We will raise awareness of our charity<br />
partners, hold a volunteer event on<br />
careers with Inspiring the Future, and<br />
aim to widen participation by<br />
highlighting volunteering<br />
opportunities.<br />
IntoUniversity has<br />
moulded me into<br />
a person that I<br />
had never<br />
thought I would<br />
be and has helped<br />
me make the<br />
most of my life.<br />
Adetayo<br />
REGISTER NOW AT<br />
WWW.THELORDMAYORSAPPEAL.ORG/CGD<br />
EMMA HASLETT<br />
@emmahaslett<br />
HOUSE price growth fell in May to<br />
its lowest since October last year,<br />
suggesting it might soon be easier to<br />
get on to the property ladder.<br />
Nationwide’s House Price Index,<br />
published yesterday, showed prices<br />
rose 1.3 per cent to £204,368 in the<br />
three months to May, down from 1.4<br />
per cent rises in April and March,<br />
and a peak of 1.5 per cent in<br />
February.<br />
Year-on-year growth was at 4.7 per<br />
cent, its lowest since February, while<br />
monthly growth – which tends to be<br />
more volatile – remained at 0.2 per<br />
JAKE CORDELL<br />
@JakeCordell<br />
UK MANUFACTURING expanded<br />
last month, according to the new<br />
data out yesterday, but fears<br />
persist over a longer term decline.<br />
The sector clocked a score of<br />
50.1 on the Markit/Chartered<br />
Institute of Procurement and<br />
Supply (Cips) purchasing<br />
managers’ index (PMI) for May. A<br />
score above 50 indicates<br />
cent for the second month in a row.<br />
The dips in growth rates came a<br />
month after the government intro -<br />
duced new rules for buy to let<br />
properties, which mean would-be<br />
landlords must pay three per cent<br />
more in stamp duty than<br />
homeowners.<br />
But the dip could just be the<br />
market settling after buyers went<br />
into a frenzy in the months between<br />
November, when the new rules were<br />
announced, and April, when they<br />
came into effect. Nationwide’s<br />
figures showed a huge rise in the<br />
number of transactions between<br />
March and the year before – with<br />
cash transactions nearly doubling<br />
expansion. This was up from a<br />
disappointing 49.2 in April’s<br />
survey, though experts said it<br />
would not be enough to arrest the<br />
broader decline.<br />
“The UK manufacturing sector<br />
continued its lacklustre start to<br />
2016,” confirmed Rob Dobson,<br />
senior economist at Markit.<br />
The production sector – 70 per<br />
cent of which is made up by<br />
manufacturing – slipped into its<br />
third recession in a decade in the<br />
from about 35,000 to just over<br />
60,000. It could also be an effect of<br />
fears over Brexit, which some have<br />
suggested may be dampening<br />
demand.<br />
Robert Gardner, Nationwide’s<br />
chief economist, suggested activity<br />
in the market may have peaked.<br />
“House purchase activity is likely<br />
to fall in the months ahead given the<br />
number of purchasers that brought<br />
forward transactions,” he said.<br />
“The recovery thereafter may also<br />
be fairly gradual, especially in the<br />
buy to let sector, where other policy<br />
changes, such as the reduct ion in tax<br />
relief for landlords from 2017, are<br />
likely to exert an ongoing drag.”<br />
Britain’s manufacturing output improves but<br />
fears remain over stopping a broader decline<br />
first three months of the year, as<br />
output contracted for the second<br />
consecutive quarter.<br />
EEF, the manufacturers’ body,<br />
warned that “the very modest<br />
improvement in activity wasn’t<br />
enough to prevent further job<br />
losses across the sector”.<br />
Lee Hopley, EEF chief<br />
economist, said that while<br />
referendum nerves were playing<br />
some role in the sector’s decline,<br />
“this is a demand story rather<br />
than a Brexit one”.
Maggie’s<br />
Culture Crawl<br />
Walk through the night<br />
for people affected by cancer<br />
Friday 16 September 2016<br />
Join us as we walk 10 miles through London at night,<br />
experiencing amazing architecture and cultural surprises.<br />
Register now: www.maggiescentres.org/cclondon<br />
Maggie Keswick Jencks Cancer Caring Centres Trust (Maggie’s)<br />
is a registered charity, No.SC024414
14 NEWS THURSDAY 2 JUNE 2016<br />
CITYAM.COM<br />
Sugar price rally continues as El Nino<br />
disrupts south east Asian production<br />
FRANCESCA WASHTELL<br />
@fwashtell<br />
THE RECENT raw sugar price rally<br />
continued yesterday as the sweet<br />
commodity traded at around 17.3<br />
cents per pound, according to Nasdaq<br />
data.<br />
Prices have reached a two-year<br />
high over the past week in a positive<br />
swing that contrasts with many<br />
other commodities, particularly<br />
metals such as copper and iron ore.<br />
Many countries have experienced<br />
production disruptions due to the El<br />
Nino weather phenomenon. In<br />
Thailand, a core sugar exporter in<br />
south east Asia, extreme weather<br />
caused by El Nino could reduce sugar<br />
production in the country by around<br />
14 per cent, a government official<br />
told the Wall Street Journal.<br />
Production in India has also been<br />
affected.<br />
In mid-May, the US department of<br />
agriculture forecast global sugar<br />
consumption would again outpace<br />
production in 2016/2017 and would<br />
draw stocks to the lowest level since<br />
2010/2011.<br />
Ahead of Easter, sugar prices rose<br />
by 20 per cent month-on-month, also<br />
largely as a result of El Nino, which<br />
can produce drier than normal<br />
weather and interfere with the<br />
growing cycles of agricultural<br />
commodities.<br />
This year’s El Nino has been the<br />
strongest cycle in 35 years, bringing<br />
with it above-average temperatures,<br />
water shortages but also flooding<br />
across the world.<br />
Production in Thailand, a core sugar exporter, could be reduced by up to 14 per cent<br />
Hollande warns<br />
champagne may<br />
delay trade deal<br />
FRANCESCA WASHTELL<br />
@fwashtell<br />
PRESIDENT Francois Hollande yesterday<br />
warned protection of France’s<br />
wines and cheeses could delay the<br />
Trans-Atlantic Trade and Investment<br />
Partnership (TTIP).<br />
Hollande insisted that France will<br />
not sacrifice any of its geographically<br />
protected labels, which include<br />
sparkling wine produced in the<br />
region of Champagne and comte<br />
cheese, as part of the free trade deal<br />
being hashed out between Europe<br />
and the US.<br />
Protected status is granted by the<br />
European Union and means that only<br />
products made in a specific geo -<br />
graphic area can carry the name<br />
associated with them.<br />
“There can be no question of sacrificing<br />
our interests to get a deal,”<br />
Hollande said, describing the protected<br />
names as France’s “heritage”.<br />
“Geo graphical indications contrib -<br />
ute to preserving agricultural quality<br />
in our country. They help to keep our<br />
farm ing activity on our land,” he<br />
added.<br />
The French president was speaking<br />
at the inauguration of a new wine cen-<br />
tre in Bordeaux, reported the Finan -<br />
cial Times.<br />
Prime Minister David Cameron<br />
recently made his own case, writing in<br />
the Gloucester Citizen newspaper,<br />
that many of the UK’s best-loved food<br />
and drink products could be under<br />
threat of losing protected status if<br />
Britain votes to leave the EU in the 23<br />
June referendum.<br />
In the UK, among the products<br />
granted protected status are arbroath<br />
smokies, cornish pasties and melton<br />
mowbray pork pies.<br />
Meanwhile, the president of the<br />
European Commission Jean-Claude<br />
Juncker addressed a convention of<br />
French mayors in Paris to try to sell<br />
the free trade deal, which would unify<br />
rules and slash tariffs to create a combined<br />
market of around 850m people,<br />
he said.<br />
US President Barack Obama has<br />
pressed for the Transatlantic-Trade<br />
and Investment Partnership to be<br />
agreed by the end of the year.<br />
A leak of confidential information<br />
that claimed to reveal disagreements<br />
in negotiations between Europe and<br />
the US on the deal was labelled a<br />
“storm in a teacup” last month by the<br />
EU’s trade commissioner.<br />
Le grand fromage: A cheese maker prepares a wooden mold of beaufort cheese<br />
Commodities<br />
hedge funds<br />
report uptick<br />
JESSICA MORRIS<br />
@jssmorris<br />
COMMODITY-based hedge funds<br />
shrugged off the problems plaguing<br />
other money managers at the start<br />
of this year, as investors piled into<br />
the long-suffering sector.<br />
Following more than three<br />
years of negative sentiment,<br />
investors returned to the<br />
commodities sector in the middle<br />
of last year and have since<br />
allocated $5.4bn (£3.7bn),<br />
according to data tracker<br />
eVestment.<br />
It comes during a torrid time<br />
for hedge funds which have had<br />
to grapple with the slowing global<br />
economy, disappointing<br />
performances as well as crowded<br />
trades and increasingly<br />
disillusioned clients.<br />
But commodity-focused hedge<br />
funds outperformed their peers in<br />
fixed income and credit, equities<br />
as well as FX and currencies<br />
during the first four months of<br />
2016.<br />
The former produced average<br />
aggregate returns of 4.1 per cent<br />
— compared to the industry<br />
benchmark of 0.8 per cent.<br />
“The [commodities] group<br />
benefited from a surge of higher<br />
prices across the commodity<br />
spectrum during the month,<br />
something which appeared to<br />
hurt larger managed future<br />
funds,” eVestment said.<br />
Swiss declare the Alps tamed as<br />
world’s longest rail tunnel opens<br />
After more than two decades in the making, the tunnel opened with circus act flair<br />
JAMES NICKERSON<br />
@nickersonjw<br />
IT’S A marvel to rival Hannibal’s feat –<br />
the world’s longest and deepest rail<br />
tunnel was officially opened in<br />
Switzerland yesterday .<br />
The Gotthard Base Tunnel will<br />
provide high-speed rail services under<br />
the Swiss Alps linking Rotterdam in<br />
the Netherlands and Genoa in Italy.<br />
Until now, freight relied mostly on<br />
lorries and older, slower trains<br />
through the Alps.<br />
The project cost $12.5bn (£8.7bn)<br />
after being supported by Swiss voters<br />
in 1992. The tunnel, as much as<br />
2.3km below the Alps, will take just<br />
17 minutes to pass through. When it’s<br />
fully up and running, the total<br />
journey time between Zurich and<br />
Milan will be reduced to 40 minutes.<br />
German Chancellor Angela Merkel,<br />
French President Francois Hollande<br />
and Italian Prime Minister Matteo<br />
Renzi were among those attending<br />
the opening.<br />
The 35.5-mile tunnel was com -<br />
pleted on time and within budget,<br />
sparking Swiss federal transport<br />
office director Peter Fueglistaler<br />
called “a masterpiece of timing, cost<br />
and policy”, Reuters reported. “It is<br />
just part of the Swiss identity. For us,<br />
conquering the Alps is like the Dutch<br />
exploring the oceans,” he added.
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
MARKETS<br />
15<br />
CITYDASHBOARD<br />
YOUR ONE-STOP SHOP BROKER<br />
VIEWS AND MARKET REPORTS<br />
In association with<br />
LONDON REPORT BEST <strong>OF</strong> THEBROKERS NEW YORK<br />
To appear in Best of the Brokers, email your research to notes@cityam.com REPORT<br />
Miners send the<br />
FTSE 100 lower as<br />
Wolseley slumps<br />
THE TOP share index<br />
retreated from a one-month<br />
high yesterday, with<br />
Wolseley slumping after<br />
poor results and mining<br />
stocks following metal prices lower.<br />
The blue-chip FTSE 100 index<br />
closed 0.6 per cent lower at 6,191.93<br />
points, a day after hitting its highest<br />
level since late April.<br />
Metal prices dropped following<br />
weak factory data from China and<br />
Europe. Shares in mining companies<br />
Rio Tinto, Antofagasta and Anglo<br />
American fell 1.3 to 3.8 per cent.<br />
British heating and products<br />
supplier Wolseley dropped 5.5 per<br />
cent, its biggest one-day percentage<br />
drop since September last year, after<br />
the company reported a slowdown in<br />
revenue growth for the third<br />
quarter, due to subdued demand.<br />
Housebuilders were also in<br />
negative territory, with analysts<br />
citing the ICM poll earlier in the<br />
week that suggested voters were<br />
leaning towards Brexit.<br />
Persimmon, Berkeley Group,<br />
Barratt Developments and Taylor<br />
Wimpey shares dropped between 2.9<br />
and 3.7 per cent.<br />
FTSE<br />
6,280<br />
6,260<br />
6,240<br />
6,220<br />
6,200<br />
6,180<br />
6,160<br />
1 June<br />
6,191.93<br />
25 May 26 May 27 May 31 May<br />
1 June<br />
SAGE<br />
617.50<br />
615.00<br />
612.50<br />
610.00<br />
607.50<br />
605.00<br />
602.50<br />
600.00<br />
P<br />
1 June<br />
612.50<br />
25 May 26 May 27 May 31 May 1 June<br />
Sage has been given a “buy” rating by analysts at Liberum who yesterday started<br />
covering the software company. The company could increase its current earnings<br />
margin from 27 per cent to more than 30 per cent, Liberum said. The analysts gave<br />
Sage a target price of 660p, noting that the company is one year into a transform -<br />
ation programme that has seen more than 70 of its top 100 managers changed.<br />
WOLSELEY<br />
4,100<br />
4,050<br />
4,000<br />
3,950<br />
3,900<br />
3,850<br />
3,800<br />
P<br />
1 June<br />
3,828.00<br />
25 May 26 May 27 May 31 May 1 June<br />
Analysts gave Wolseley a mixture of “buy” and “hold” ratings yesterday after the<br />
building materials supplier reported its third-quarter results. While Canaccord<br />
Genuity and Standard and Poor’s gave the company “buy” ratings, Liberum and<br />
Peel Hunt said “hold”. Peel Hunt said that while the group said it was on track to<br />
meet expectations, trading has slowed since the end of the third quarter.<br />
See-saw day<br />
ends in rises<br />
US STOCKS fluctuated before<br />
closing slightly higher<br />
yesterday as investors<br />
processed data on global<br />
manufacturing, car sales and inflation<br />
for clues about the Federal Reserve’s<br />
next interest rate hike.<br />
The Dow Jones industrial average<br />
rose 2.47 points, or 0.01 per cent, to<br />
17,789.67, the S&P 500 gained 2.37<br />
points, or 0.11 per cent, to 2,099.33<br />
and the Nasdaq Composite added<br />
4.20 points, or 0.08 per cent, to<br />
4,952.25.<br />
Car sales weakened in May, with<br />
General Motors, Ford Motor and<br />
other manufacturers reporting lower<br />
US sales.<br />
GM shares fell 3.4 per cent while Ford<br />
dropped 2.8 per cent.<br />
Demandware soared 55.9 per cent<br />
to $74.81. Salesforce.com agreed to<br />
buy the company in a $2.8bn<br />
(£1.94bn) deal. Salesforce fell 0.3 per<br />
cent.<br />
Shares of Michael Kors rose 6.6 per<br />
cent, to $45.55 after the luxury<br />
accessories maker posted its strongest<br />
quarterly sales growth in a year.<br />
CITY MOVES WHO’S SWITCHING JOBS Edited by Joseph Millis @joemillis59<br />
SIGN UP TO RECEIVE THE DAILY CITY MOVES<br />
EMAIL SERVICE AT CITYAM.COM/CITY-MOVES<br />
BIBBY FINANCIAL SERVICES<br />
Independent business funder,<br />
Bibby Financial Services<br />
(Bibby) has appointed Ray<br />
Lowrey as UK risk director.<br />
First joining Bibby 15 years<br />
ago, Ray has held a variety of<br />
roles with the financier,<br />
including operations manager,<br />
head of operations, business<br />
director and – most recently –<br />
deputy risk director. A member<br />
of the Chartered Institute of Credit Management, Ray<br />
was appointed to his current role following Ian<br />
Ramsden’s appointment as group risk director.<br />
PAYNE HICKS BEACH<br />
Central London law firm, Payne Hicks Beach, has<br />
announced four promotions across its private client,<br />
family and property departments. Basil Dixon has been<br />
promoted from associate to partner in the private<br />
client team. In addition, Emily Foy, Emilie Helm and<br />
Marisa Beccarelli have been made associates in the<br />
family and property departments.<br />
TESTPLANT<br />
TestPlant, the maker of the eggPlant range of software<br />
tools, has announced that it has appointed Liz Andora<br />
as chief people officer. In her new role, Liz assumes<br />
responsibility for all aspects of TestPlant’s global<br />
human resources strategy and execution as the highgrowth<br />
software company scales up its global<br />
presence. With more than 20 years of HR experience,<br />
Liz joins from Rally Software, which was recently<br />
acquired by CA Technologies, where she was vice<br />
president, people. She has a strong background in<br />
leading HR for leading technology companies,<br />
including Sun Microsystems and HP.<br />
ALLIANZ UK<br />
Following a strategic review, Allianz UK is changing<br />
its structure and creating a new single trading<br />
division combining commercial and personal lines<br />
business and a new technical division. The new<br />
commercial and personal division will be led by<br />
Simon McGinn, who is currently general manager of<br />
Allianz’s commercial business. Neil Clutterbuck has<br />
recently been appointed as the new chief<br />
underwriting officer.<br />
SALARYFINANCE<br />
SalaryFinance, the financial employee benefit<br />
provider, has announced the appointment of Marina<br />
Theodosiou as head of decision science, with a brief to<br />
drive the development of the company’s credit risk<br />
function. Marina previously led Funding Circle’s risk<br />
and analytics team for 18 months, helping the firm to<br />
reach its £1bn lending milestone in 2015. She also<br />
worked as an economist at the European Central Bank<br />
and held a number of positions in the decision science<br />
departments of fintech startups.<br />
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Open an account at spreadco.com<br />
Leveraged products are high risk,<br />
losses may exceed deposits
16 OPINION THURSDAY 2 JUNE 2016<br />
FORUM<br />
Leaving the EU will undermine<br />
London’s global competitiveness<br />
LONDON is at the forefront of<br />
the huge changes buffeting<br />
our society and our economy,<br />
as we confront and cope with<br />
the realities of globalisation.<br />
India and China, and the emerging<br />
economies of Indonesia, Singapore,<br />
Vietnam, Brazil and others, are overturning<br />
Europe’s traditional dominance.<br />
In Africa, Senegal, Uganda,<br />
Tanzania, Kenya and Ethiopia all had<br />
growth rates of over 5 per cent in the<br />
last year. China is investing more in<br />
African roads, airports, ports and cities<br />
than the World Bank.<br />
The world of tomorrow will be<br />
shaped by these new economies, with<br />
their new manufacturing, new service<br />
sectors and new universities. London<br />
will have new “rival” cities – and by<br />
working with our allies in Europe we<br />
are better placed to compete in the<br />
industries of the future.<br />
There is much to gain from expanding<br />
the Single Market further and<br />
developing the EU’s Digital Single<br />
Market – worth about €400bn per year<br />
and the best part of 4m jobs. The EU<br />
will increasingly be an area of huge<br />
opportunity for London’s tech industry,<br />
but a Brexit vote would jeopardise<br />
these visionary plans.<br />
The EU is an engine for scientific<br />
development too. It accounts for more<br />
than a third of world scientific output<br />
– outstripping the mighty United<br />
States, and that gap is growing. It’s not<br />
surprising that Stephen Hawking and<br />
150 other fellows of the Royal Society<br />
recently warned that quitting the<br />
European Union would be a “disaster<br />
for UK science”.<br />
According to the Russell Group, our<br />
top universities (five of which are<br />
based in London) receive £580m a year<br />
RECEIVED wisdom is that, to<br />
understand the economics<br />
of Britain’s relationship with<br />
the EU, one needs to either<br />
look forward (with so-called<br />
CGE or computable general equilibrium<br />
models) or backward (with socalled<br />
gravity and/or synthetic<br />
counterfactual<br />
models).<br />
Unfortunately, there are serious problems<br />
with both.<br />
CGE models try to simulate the<br />
future, but that future depends on<br />
the structure of the model. And that<br />
immediately faces the problem that<br />
we simply don’t know the “true”<br />
model of the economy. PwC’s CGE<br />
modelling for the CBI identifies a significant<br />
negative impact of Brexit by<br />
focusing on the impact of uncertainty<br />
and the migratory supply of labour.<br />
Academic modelling by professor<br />
Patrick Minford, however, produces a<br />
significant gain from Brexit because<br />
his modelling focuses on – arguably<br />
the most important issue – the cold<br />
shower boost to economic performance<br />
from opening up trade to world<br />
prices, outside the protection of the<br />
EU common external tariff.<br />
in EU research funding, more than the<br />
whole of Germany. And the current<br />
star of British science, Tim Peake, is<br />
also a symbol of European scientific<br />
collaboration. He is up in space<br />
because of a partnership between the<br />
European Space Agency and the EU,<br />
which provides 20 per cent of the former’s<br />
funds. Collaboration between<br />
scientists across the EU fosters<br />
advances that might not otherwise<br />
happen if these brilliant minds were<br />
separated by national boundaries. By<br />
bringing together a critical mass of<br />
intellectual talent, the EU creates the<br />
conditions for scientific discovery to<br />
flourish.<br />
In infrastructure investment too, the<br />
EU is critical to Britain’s future prosperity<br />
and global competitiveness.<br />
From upgrading our roads, railways<br />
and bridges, to hospitals, schools and<br />
high speed broadband, the European<br />
Investment Bank (EIB) is a vital source<br />
of funds.<br />
The EIB is an EU institution in which<br />
Britain holds a sixth of the shares. It’s<br />
the world’s largest international<br />
public bank, owned directly by the<br />
member states. And it is a tremendous<br />
force for good. By walking away from<br />
the EU, we would lose access to the<br />
huge level of funds it provides – to<br />
businesses, universities, schools and<br />
local authorities in Britain – at preferential<br />
rates.<br />
Last year alone the UK received<br />
£5.6bn from the EIB to help regenerate<br />
communities and modernise infrastructure<br />
up and down the country. In<br />
London, the powerhouse of the UK<br />
economy, the investment is crucially<br />
important. Over the past decade, the<br />
EIB has made available £7.3bn for<br />
transport, education, social housing,<br />
The Open Europe think tank’s CGE<br />
modelling produces a net gain from<br />
Brexit when allowing for the effects of<br />
open trade and politically feasible<br />
deregulation. The range between the<br />
CBI and Minford models is huge, from<br />
a net cost of 5.5 per cent of GDP in the<br />
CBI modelling, to a net gain of 3.7 per<br />
cent of GDP in Minford’s model.<br />
So what’s the takeaway? In my view<br />
it’s three fold. First, moving from the<br />
EU customs union to trading at world<br />
prices without imposing tariffs on<br />
imports is a clear positive. But the<br />
scale of this gain is very difficult to be<br />
precise about due to modelling and<br />
data issues. Second, any gain from<br />
world prices is likely to be amplified<br />
by moves to shrink the size of the<br />
state at the same time. Third, we have<br />
to be aware of the threat from intensified<br />
uncertainty, even though this is<br />
almost impossible to calculate accurately,<br />
and is being hyped by Project<br />
Fear – to the point of becoming selffulfilling.<br />
What about backward-looking modelling<br />
which seeks to quantify the<br />
impact of the EU on trade, and then<br />
the impact of trade on productivity<br />
Seema<br />
Malhotra<br />
Collaboration<br />
between scientists<br />
across the EU fosters<br />
advances that might<br />
not otherwise<br />
happen if these<br />
brilliant minds were<br />
separated by<br />
national borders<br />
water, energy, healthcare and urban<br />
regeneration investment across the<br />
capital.<br />
Among the recent loans are £280m<br />
for University College London to modernise<br />
its historic Bloomsbury campus<br />
and develop a new campus at the<br />
Queen Elizabeth Olympic Park, and<br />
£102m for Croydon Council to build<br />
new and expand existing schools.<br />
Can London take the risk of seeing<br />
this vital source of investment dry up?<br />
And can London afford the risk of<br />
being outside a Single Market of over<br />
and growth? Here again, the<br />
problems are immense. Synthetic<br />
counterfactual modelling attempts to<br />
establish a control group (as in medical<br />
research) and then compare its<br />
performance with that of the UK after<br />
the country’s accession to the then<br />
EEC. But no credible control group,<br />
however ingenious the methodology,<br />
can be devised. So that approach falls<br />
at the first fence.<br />
Gravity models also suffer from serious<br />
drawbacks. Just as CGE models<br />
can’t capture the future, gravity models<br />
struggle to capture the past. One<br />
example is the extent to which the<br />
growth in UK export performance<br />
can be attributed to the EU, or simply<br />
to economic reforms in the 1980s.<br />
These issues are immensely<br />
half a billion people? That market is a<br />
key reason why US and Swiss banks<br />
trade here. It gives them easy access to<br />
EU markets and to a talent pool almost<br />
ten times the size of the UK’s alone.<br />
Businesses know how important EU<br />
membership is. A February CBI survey<br />
found that “uncertainty over the UK’s<br />
role in Europe” was the most commonly<br />
cited top concern for London’s<br />
businesses alongside “retaining our<br />
best talent”.<br />
The same is true of the growing fintech<br />
sector. London is now the largest<br />
fintech hub in the world by revenue<br />
and the second largest by<br />
employment. But a recent KPMG<br />
report for London First found that<br />
Brexit would jeopardise the UK’s role<br />
as a global leader. Reduced access to<br />
skilled EU staff and increased regulation<br />
are worrying the industry. Leave<br />
campaigners seem oblivious to these<br />
fears.<br />
Of course, London – and Britain –<br />
would still enjoy advantages if we vote<br />
to leave: our language, our inclusive<br />
culture, our incredible heritage and,<br />
despite all its problems, our world<br />
class education system. Companies tell<br />
me over and again these are reasons<br />
they choose to invest in Britain. But<br />
they are clear that, by leaving the EU,<br />
we would be throwing away another<br />
advantage – access to the European<br />
market, and through it access to the<br />
rest of the world.<br />
This vital “pull factor” disappears<br />
overnight if we walk away from the<br />
EU. London is stronger with Europe<br />
and Europe is stronger with London.<br />
£ Seema Malhotra is shadow chief<br />
secretary to the Treasury and Labour &<br />
Co-op MP for Feltham and Heston.<br />
The true impact of Brexit on the economy<br />
is far less certain than economists claim<br />
Graeme<br />
Leach<br />
important because the gravity and<br />
synthetic approaches produce big<br />
numbers for the potential losses from<br />
Brexit. Professor Nick Crafts, in his<br />
own review of the gravity and synthetic<br />
modelling literature, has suggested<br />
that UK GDP is 8.6 to 10.6 per<br />
cent higher because of EU membership.<br />
He compares this with a membership<br />
cost (direct fiscal<br />
contributions and regulatory costs) of<br />
around 1.5 per cent of GDP. If true,<br />
that’s a big gap and a big cost from<br />
Brexit.<br />
But the numbers could be wrong,<br />
very wrong. First, because of the<br />
extent to which the estimated benefits<br />
of trade are in fact attributable to<br />
other factors not captured in gravity<br />
models. Second, by examining the<br />
gains from EU trade, while ignoring<br />
the potential gains from trading at<br />
world prices. Finally, because the<br />
range of estimates for regulatory<br />
costs is actually vast, from zero to 6<br />
per cent of GDP.<br />
£ Graeme Leach is chief executive and<br />
chief economist of macronomics, a new<br />
consultancy to be launched on 4 July.<br />
DEBATE<br />
Chad<br />
Wilcox<br />
YES<br />
Kurt<br />
Schlichter<br />
NO<br />
CITYAM.COM<br />
Q: As North<br />
Korea hails him<br />
as wise and farsighted,<br />
does<br />
Donald Trump<br />
pose a threat to<br />
world peace?<br />
Donald Trump certainly poses a threat to<br />
world peace, though not for the reasons<br />
you might initially think. Libertarian<br />
political satirist PJ O’Rourke endorsed<br />
Hillary Clinton purely out of fear of<br />
Trump, warning, “they’ve got this button,<br />
you know? It’s in a briefcase. He’s gonna<br />
find it!”. But a rush to war is far from the<br />
most likely scenario. In fact, Clinton is the<br />
more interventionist candidate by some<br />
margin. What peace-loving people<br />
should fear in Trump is his abject,<br />
unapologetic, authoritarian opposition<br />
to free trade and free movement of<br />
labour. The former is the greatest engine<br />
of peace between countries the world<br />
has ever known; the latter is how people<br />
escape dangerous situations in search of<br />
a better life. It is not some alleged<br />
warmongering attitude, but rather<br />
Trump’s repeatedly stated authoritarian<br />
policies, that should inspire fear in all of<br />
us. The world could indeed be a darker<br />
place under his regime – particularly for<br />
the least advantaged among us.<br />
£ Chad Wilcox is chief operating officer at<br />
the Institute of Economic Affairs.<br />
While no particular fan of Donald Trump,<br />
the notion that his installation as<br />
president would usher in an<br />
unprecedented era of conflict and<br />
bloodshed would be amusing if the<br />
reality of today’s world was not so grave.<br />
In fact, it is the weakness and wilful<br />
blindness of liberal elites who refused to<br />
do what was necessary to achieve<br />
victory over Islamic fanaticism in Iraq<br />
and Afghanistan that has allowed those<br />
states to disintegrate – along with Syria,<br />
Libya, and much of Africa. The coddling<br />
of the Ayatollah guarantees a<br />
confrontation when Iran inevitably goes<br />
nuclear, while China and Russia seek to<br />
take advantage of the American<br />
leadership void. Trump merely<br />
exemplifies America’s Jacksonian streak,<br />
that of the patriotic folks who fight and<br />
die in our wars (as opposed to the<br />
liberals who start them), men and<br />
women willing to fight to defend their<br />
country as long as their lives are not<br />
wasted. He could hardly do any worse.<br />
£ Kurt Schlichter is an author, lawyer and<br />
retired US army colonel.
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
OPINION<br />
17<br />
WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum<br />
LETTERS<br />
TO THE EDITOR<br />
Cameron’s future<br />
as PM<br />
[Re: Cameron has damned himself with his<br />
shrill defence of a broken EU, yesterday]<br />
Alex Story’s post-referendum scenarios<br />
(which see David Cameron’s career<br />
destroyed in all but one) suit his case, but<br />
aren’t realistic. Even in the aftermath of a<br />
Leave vote, there will be a clamour for<br />
stability given that the government will then<br />
face the daunting task of renegotiating our<br />
relationship with the EU once again. Perhaps<br />
some Tory MPs will want Cameron gone<br />
immediately, and perhaps Jeremy Corbyn’s<br />
Labour will take tactical advantage to make<br />
life as uncomfortable for the Prime Minister<br />
as possible. But I suspect cooler heads will<br />
prevail, meaning that Cameron will stay on<br />
as Prime Minister until he decides to step<br />
down himself – probably in a couple of years’<br />
time. He is still extremely popular, after all.<br />
Giles Cave<br />
The reason why Cameron and George<br />
Osborne have stuck with fear is because they<br />
are not authentic Europhiles. Many Brexit<br />
supporters seem to think that they are<br />
signed up members of the pro-European<br />
elite, but their past statements and their<br />
current attitude show that they merely<br />
believe that the risks of leaving the EU far<br />
outweigh the benefits of staying. There is no<br />
conspiracy of fake Eurosceptic MPs who are<br />
actually quiet agents of European<br />
integration, because there is nothing<br />
inconsistent about being unhappy with what<br />
the EU currently looks like and how it<br />
operates, and yet still wanting to stay in<br />
because you believe it is better than the<br />
alternative. The EU is capable of reform – if<br />
we stay in and push for it.<br />
Name withheld<br />
BEST <strong>OF</strong><br />
TWITTER<br />
£834,000 wagered on<br />
Betfair’s EU ref market in<br />
past 24 hours – the second<br />
busiest yet. Remain down to<br />
74 per cent chance.<br />
@MSmithsonPB<br />
OECD is right to warn leaving<br />
Europe would have<br />
“negative consequences’ for<br />
our economy. That means<br />
lost jobs and higher prices.<br />
@David_Cameron<br />
Only 5 per cent of voters<br />
believe their standard of<br />
living would decrease a lot<br />
post-Brexit. 69 per cent say<br />
no change or better.<br />
@andrew_lilico<br />
The EU is on wrong side of<br />
history – time for central<br />
planning is long gone...<br />
future is about people<br />
power.<br />
@SteveHiltonx<br />
Europe’s biggest grand<br />
projet in decades to open –<br />
57km Gothard tunnel<br />
through Alps. Astonishing<br />
engineering, financing<br />
achievement by Swiss.<br />
@DenisMacShane<br />
Refugee deaths in<br />
Mediterranean. Jan 1 – May<br />
31 2015: 1,828. Jan 1 – May<br />
31, 2016: 2,443 (34 per cent<br />
increase).<br />
@ianbremmer<br />
You’re going to live longer than you<br />
think and the implications are huge<br />
WHAT is the most important<br />
number you can<br />
think of? Your bank balance?<br />
Your mortgage? US<br />
GDP or the FTSE 100? All<br />
of these are important but the one number<br />
you should be very focused on is a<br />
guess of your own life expectancy. Get<br />
that wrong and the chances are you will<br />
get a life that isn’t as good as it should<br />
be. It’s a crucial number for your<br />
finances, your education and your<br />
career.<br />
Thinking about your own mortality is<br />
hard for emotional reasons. Basing projections<br />
on your parents is also problematic<br />
given each generation on average<br />
lives longer than the previous. Over the<br />
last 200 years, life expectancy at birth<br />
has increased at a near constant rate of<br />
two to three years every decade. That<br />
means each generation on average lives<br />
around six to nine years longer than<br />
their parents. However there is debate<br />
about what all this means for the future.<br />
One group (let’s call them the “levellers”)<br />
argues that we can effectively<br />
expect no further increases. With the<br />
diseases of prosperity such as obesity<br />
and diabetes, we may even see this go<br />
into reverse.<br />
Another group (let’s call them the<br />
“extrapolators”) argues that the trend is<br />
set to continue due to major improvements<br />
in healthcare and survival rates<br />
for those 70 or older. According to this<br />
group, the trend is likely to continue,<br />
although possibly at a declining rate<br />
(the oldest person ever was Jeanne<br />
Calment who lived for an extraordinary<br />
122 years and 164 days).<br />
Finally, there are “the accelerators”<br />
who believe scientific knowledge is<br />
poised to make dramatic improvements<br />
such that soon people will live beyond<br />
the 120-year barrier, with some even<br />
Andrew<br />
Scott<br />
arguing that the first person to live to<br />
500 has already been born.<br />
If demographers and scientists tell us<br />
that our life expectancy is somewhere in<br />
the range of 80 to 500, what does government<br />
say? There are two ways of stating<br />
life expectancy – a period and a<br />
cohort measure. The period measure<br />
starts with the assumption that the levellers<br />
are correct, so that a child born in<br />
2014 in effect lives their whole life medically<br />
in 2014. In other words, when they<br />
reach 50 in 2064 they will have the same<br />
survival rates as a 50 year old in 2014.<br />
In contrast, the cohort measure<br />
assumes the extrapolators/accelerators<br />
are correct and projects forward gains in<br />
life expectancy. For the UK, we can compare<br />
the period estimates of 79.3 for a<br />
boy and 83 for a girl with the central<br />
projection for cohorts born in 2014 of<br />
90.4 and 93.2. The ONS also produces an<br />
“optimistic” scenario, more consistent<br />
with the past trend of life expectancy<br />
increasing two or three years every 10, of<br />
102 and 105. It’s worth stressing that<br />
these are average life expectancy numbers<br />
– because the median is now above<br />
the mean, it’s actually the case that for<br />
more than 50 per cent of people the<br />
number is even higher.<br />
So what does all this mean for you?<br />
Given the historical trend, you have a<br />
high chance of living six to nine years<br />
longer than your parents. As a result,<br />
children born today have a realistic<br />
:@cityam<br />
chance of living to more than 100 (more<br />
than a third according to the ONS). But<br />
basing guesses of life expectancy on that<br />
of your parents or published period estimates<br />
is likely to serve as an underestimate<br />
and leave you unprepared. That’s a<br />
problem governments face too given<br />
that long-term budget projections are<br />
made based on period and not cohort<br />
life expectancy.<br />
Given this potential longevity, much<br />
needs to change socially. A life designed<br />
for 70 and 80 years is not easily<br />
stretched to 100. How long you work for,<br />
who we consider to be young and who<br />
old, the age at which we start a career,<br />
get married, have children or get educated<br />
will change. All these are already<br />
changing and we can expect them to<br />
shift markedly in the future.<br />
The financial implications of a longer<br />
life are also substantial. It’s not just that<br />
we will need to work and/or save more<br />
but the products we will need will<br />
change. We will hit milestones at different<br />
ages and need new more flexible<br />
life-time products. There are also major<br />
risks to deal with, such as preparing<br />
ourselves for possible major future<br />
increases in life expectancy or<br />
protecting ourselves against the costs of<br />
longer periods of disability.<br />
Society has only just begun to adapt to<br />
these trend increases in longevity.<br />
Focusing on possible estimates of your<br />
own life expectancy, taking stock of your<br />
financial and non-financial assets, and<br />
actively engaging in life planning will<br />
be how each of us begins this process<br />
ourselves.<br />
£ Andrew Scott is a professor of economics<br />
at London Business School and co-author,<br />
with Lynda Gratton, of The 100-Year Life:<br />
Living and Working in an Age of Longevity,<br />
published by Bloomsbury Press today.<br />
Fountain House,<br />
3rd Floor, 130 Fenchurch Street,<br />
London, EC3M 5DJ<br />
Tel: 020 3201 8900<br />
Fax: 020 7248 2711 Email: news@cityam.com<br />
Certified Distribution<br />
from 04/04/16 till<br />
01/05/16 is 96,489<br />
Editorial Editor Christian May | Deputy Editor Julian Harris<br />
Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen<br />
Sports Editor Frank Dalleres | Creative Director David Rile y<br />
Commercial Sales Director Jeremy Slattery |<br />
Head of Distribution Gianni Cavalli<br />
Distribution helpline<br />
If you have any comments about<br />
the distribution of City A.M.<br />
please ring 0203 201 8955, or email<br />
distribution@cityam.com<br />
Our terms and conditions for external<br />
contributors can be viewed at<br />
cityam.com/terms-conditions<br />
Printed by Trinity Mirror Printing,<br />
St Albans Road, Watford Herts, WD24 7RG<br />
Connect | Follow | Like | Share |<br />
Keep informed 24/7:<br />
Don’t forget to follow us on<br />
LinkedIn, Twitter, Facebook and Google+
Gold ............................................................1214.50 2.40<br />
Silver ..............................................................15.95 -0.11<br />
Brent Crude ...................................................49.73 -0.29<br />
Krugerrand................................................1205.60 -8.90<br />
Palladium....................................................542.00 -1.00<br />
Platinum......................................................977.00 -16.00<br />
Tin Cash Official .......................................15902.50 -285.00<br />
Lead Cash Official .......................................1673.75 -17.50<br />
Zinc Cash Official .......................................1906.25 -17.50<br />
Copper Cash Official .................................4600.50 -98.50<br />
Aluminium Cash Official ............................1543.75 -4.00<br />
Nickel Cash Official ....................................8322.50 -137.50<br />
Aluminium Alloy Cash Official...................1535.00 -5.00<br />
Cocoa Futures ...........................................3046.00 -13.00<br />
Coffee 'C' Futures .........................................122.00 0.40<br />
Feed Wheat Futures....................................106.00 -0.10<br />
Soybeans Futures Continuation Contract..1100.20 21.60<br />
AIR LIQUIDE......................................................96.83 0.30 123.65 90.77<br />
AIRBUS GROUP ................................................55.94 -0.08 68.50 49.96<br />
ALLIANZ N.......................................................145.70 -1.00 170.00 126.55<br />
ANHEUS.-BUSCH INBEV...................................114.40 0.55 124.20 87.73<br />
ASML HLDG ......................................................88.95 -0.45 102.30 70.25<br />
AXA ..................................................................22.39 -0.19 26.02 18.80<br />
BANCO SANTANDER ............................................4.17 -0.12 6.82 3.31<br />
BASF N .............................................................69.55 0.12 85.97 56.01<br />
BAYER N...........................................................86.25 0.62 138.00 83.45<br />
BBVA ..................................................................5.84 -0.12 9.17 5.12<br />
BMW.................................................................73.93 -1.96 105.45 66.00<br />
BNP PARIBAS-A-..............................................48.86 -0.91 61.00 37.00<br />
CARREFOUR .....................................................24.09 -0.27 31.41 21.62<br />
DAIMLER N .......................................................60.35 -1.04 87.63 56.19<br />
DANONE ...........................................................62.88 -0.20 66.50 51.73<br />
DEUTSCHE BANK N............................................15.65 -0.41 32.31 13.03<br />
DEUTSCHE POST N ............................................26.25 0.04 29.10 19.55<br />
DEUTSCHE TELEKOM N.......................................15.78 -0.09 16.98 12.94<br />
E.ON N................................................................8.56 -0.28 13.64 7.08<br />
ENEL...................................................................4.04 -0.04 4.45 3.33<br />
ENGIE ...............................................................13.55 -0.30 18.40 12.96<br />
ENI ....................................................................13.54 -0.19 16.99 10.93<br />
ESSILOR INTL....................................................118.25 0.90 123.92 94.08<br />
FRESENIUS........................................................67.50 -0.33 70.00 52.39<br />
GENERALI..........................................................12.96 -0.07 18.27 10.90<br />
IBERDROLA........................................................6.00 -0.10 6.60 5.55<br />
INDITEX ............................................................30.21 -0.15 35.38 26.00<br />
ING GROUP ........................................................11.03 -0.17 16.00 9.19<br />
INTESA SANPAOLO..............................................2.27 -0.04 3.65 2.12<br />
L'OREAL...........................................................168.25 -0.65 178.95 140.40<br />
LVMH ..............................................................144.40 0.35 176.60 130.75<br />
MUENCH RUECKVERS N....................................167.10 -1.75 193.65 154.65<br />
NOKIA.................................................................5.07 -0.07 7.11 4.52<br />
ORANGE ............................................................15.50 -0.12 16.98 12.21<br />
ROY.PHILIPS .....................................................24.08 -0.15 26.10 20.48<br />
SAFRAN............................................................62.34 -0.66 72.45 48.87<br />
SAINT GOBAIN..................................................39.96 -0.17 44.84 31.47<br />
SAN<strong>OF</strong>I .............................................................73.47 -0.22 101.10 66.44<br />
SAP...................................................................72.62 -0.34 75.75 53.91<br />
SCHNEIDER ELECTRIC.........................................57.73 -0.38 69.07 45.32<br />
SIEMENS N .......................................................96.98 0.19 100.90 77.91<br />
SOCIETE GENERALE ...........................................36.16 -0.83 48.77 26.61<br />
TELEFONICA.........................................................9.19 -0.20 13.91 8.48<br />
TOTAL................................................................43.03 -0.65 45.30 34.71<br />
UNIBAIL-RODAMCO ........................................240.30 -1.60 257.85 212.05<br />
UNICREDIT..........................................................2.82 -0.05 6.37 2.67<br />
UNILEVER CERT................................................40.49 0.12 42.84 32.86<br />
VINCI ................................................................67.20 -0.39 68.29 50.08<br />
VIVENDI.............................................................17.67 -0.16 24.83 16.30<br />
VOLKSWAGEN VZ.............................................131.80 -2.55 222.85 86.36<br />
Price Chg High Low<br />
EU SHARES<br />
3M ..................................................................168.69 0.37 171.27 134.00<br />
ALPHABET-A ..................................................748.46 -0.39 810.35 538.85<br />
ALPHABET-C....................................................734.15 -1.57 789.87 515.18<br />
ALTRIA GROUP.................................................64.35 0.71 65.53 47.31<br />
AMAZON.COM .................................................719.44 -3.35 724.23 419.14<br />
AMERICAN EXPRESS .........................................65.91 0.15 81.92 50.27<br />
AMGEN ...........................................................158.05 0.10 181.81 130.09<br />
APPLE ..............................................................98.46 -1.40 132.97 89.47<br />
AT&T .................................................................38.73 -0.42 39.72 30.97<br />
BANK <strong>OF</strong> AMERICA ...........................................14.86 0.07 18.48 10.99<br />
BERKSHIRE HATHAWY-B.................................141.99 1.45 148.03 123.55<br />
BOEING CO.......................................................126.41 0.26 150.59 102.10<br />
BRISTOL-MYERSSQUIBB ....................................71.87 0.17 73.06 51.82<br />
CATERPILLAR....................................................72.27 -0.24 88.81 56.36<br />
CHEVRON .........................................................101.13 0.13 104.26 69.58<br />
CISCO SYSTEMS ................................................28.90 -0.15 29.49 22.46<br />
CITIGROUP ......................................................46.94 0.37 60.95 34.52<br />
COCA-COLA CO .................................................44.70 0.10 47.13 36.56<br />
COMCAST-A ......................................................63.73 0.43 64.99 50.01<br />
DU PONT NEMOURS&CO ..................................66.40 0.99 75.72 47.11<br />
EXXON MOBIL...................................................89.24 0.22 90.46 66.55<br />
FACEBOOK-A....................................................118.78 -0.03 121.08 72.00<br />
GENERAL ELECTRIC ............................................30.11 -0.12 32.05 19.37<br />
GILEAD SCIENCES .............................................86.58 -0.48 123.37 81.28<br />
GOLDMAN SACHS GROUP................................159.97 0.49 218.77 139.05<br />
HOME DEPOT ...................................................131.83 -0.29 137.82 92.17<br />
IBM ..................................................................152.51 -1.23 173.78 116.90<br />
INTEL ................................................................31.66 0.07 35.59 24.87<br />
JOHNSON & JOHNSON.....................................112.78 0.09 115.00 81.79<br />
JPMORGAN CHASE...........................................65.69 0.42 70.61 50.07<br />
MCDONALD'S ...................................................121.97 -0.09 131.96 87.50<br />
MEDTRONIC......................................................80.52 0.04 82.00 55.54<br />
MERCK..............................................................56.33 0.07 60.88 45.69<br />
MICROS<strong>OF</strong>T.......................................................52.85 -0.15 56.85 39.72<br />
NIKE -B-...........................................................54.93 -0.29 68.20 47.25<br />
ORACLE............................................................40.26 0.06 45.24 33.13<br />
PEPSICO...........................................................101.57 0.40 106.94 76.48<br />
PFIZER..............................................................34.75 0.05 36.46 28.25<br />
PHILIP MRRS INT .............................................99.40 0.72 102.55 76.54<br />
PROCTER&GAMBLE ...........................................81.79 0.75 83.87 65.02<br />
SCHLUMBERGER...............................................75.86 -0.44 92.47 59.60<br />
TRAVLR COMP..................................................114.84 0.70 118.28 95.21<br />
TWITTER ...........................................................15.02 -0.20 38.82 13.73<br />
UNITEDHEALTH GROUP ..................................134.53 0.86 135.11 95.00<br />
UTD TECHNOLOGIES........................................100.35 -0.23 119.12 83.39<br />
VERIZON COMM ...............................................50.43 -0.47 54.49 38.06<br />
VISA-A .............................................................79.22 0.28 81.73 60.00<br />
WAL-MART STORES..........................................70.50 -0.28 75.20 56.30<br />
WALT DISNEY-DISNEY......................................98.52 -0.70 122.08 86.25<br />
WELLS FARGO ..................................................51.00 0.28 58.77 44.50<br />
WILLIS TOWERS ..............................................128.07 0.05 130.97 104.11<br />
COMMODITIES<br />
CREDIT & RATES<br />
BoE IR Overnight.........................................0.500 0.00<br />
BoE IR 7 days..............................................0.500 0.00<br />
BoE IR 1 month...........................................0.500 0.00<br />
BoE IR 3 months.........................................0.500 0.00<br />
BoE IR 6 months ........................................0.500 0.00<br />
LIBOR Euro - overnight ..............................-0.397 0.00<br />
LIBOR Euro - 12 months .............................-0.033 0.00<br />
LIBOR USD - overnight ................................0.387 0.00<br />
LIBOR USD - 12 months.................................1.337 0.02<br />
Halifax mortgage rate ................................3.990 0.00<br />
Euro Base Rate ...........................................0.000 0.00<br />
Finance house base rate .............................1.000 0.00<br />
US Fed funds..................................................0.37 0.09<br />
US long bond yield........................................2.63 -0.01<br />
Euro Euribor...............................................-0.365 0.00<br />
The vix index................................................14.22 0.03<br />
The baltic dry index...................................612.00 6.00<br />
Markit iBoxx EUR ........................................227.51 0.08<br />
Markit iBoxx GBP.......................................304.09 1.85<br />
Markit iTraxx.................................................71.66 0.00<br />
Price Chg High Low<br />
US SHARES<br />
€/$ 1.1187 0.0058<br />
€/£ 0.7761 0.0075<br />
€/¥ 122.55 0.7031<br />
/€ 1.2887 0.0124<br />
/$ 1.4415 0.0066<br />
/¥ 157.91 2.4471<br />
FTSE 100<br />
6191.93<br />
38.86<br />
FTSE 250<br />
17061.47<br />
123.26<br />
FTSE ALL SHARE<br />
3407.91<br />
21.86<br />
DOW JONES<br />
17789.67<br />
2.47<br />
NASDAQ<br />
4952.25<br />
4.20<br />
S&P 500<br />
2099.33<br />
2.37<br />
CONSTRUCTION & MATERIALS<br />
BAE Systems . . . . . . . . .488.0 4.4 526.5 425.5<br />
Cobham . . . . . . . . . . . . .162.0 -1.0 306.4 150.0<br />
Meggitt . . . . . . . . . . . . .389.2 1.2 509.5 346.5<br />
QinetiQ Group . . . . . . . .243.2 -2.7 274.4 212.0<br />
Rolls-Royce Holdi . . . . .605.0 -14.0 987.0 512.5<br />
Senior . . . . . . . . . . . . . . .217.5 0.0 324.2 193.1<br />
Ultra Electronics . . . . .1738.0 5.0 2026.0 1635.0<br />
GKN . . . . . . . . . . . . . . . .276.2 1.3 372.0 248.6<br />
Aldermore Group . . . . . .211.3 -4.8 316.0 178.0<br />
Barclays . . . . . . . . . . . . .180.0 -2.5 289.0 146.6<br />
BGEO Group . . . . . . . . .2512.0 -2.0 2581.0 1570.0<br />
HSBC Holdings . . . . . . .444.9 -0.2 625.3 416.2<br />
Lloyds Banking Gr . . . . . .71.3 -0.7 88.9 56.0<br />
Royal Bank of Sco . . . . .239.6 -6.9 368.7 207.0<br />
Shawbrook Group . . . . .291.4 -3.6 380.6 256.2<br />
Standard Chartere . . . .522.3 -7.0 1041.3 386.7<br />
Virgin Money Hold . . . .361.0 -7.7 464.0 273.6<br />
Barr (A.G.) . . . . . . . . . . .538.5 1.0 633.0 487.4<br />
Britvic . . . . . . . . . . . . . .677.0 1.5 749.5 642.0<br />
Coca-Cola HBC AG . . .1348.0 5.0 1629.0 1255.0<br />
Diageo . . . . . . . . . . . . .1864.0 -6.5 1949.5 1640.0<br />
SABMiller . . . . . . . . . .4320.0 25.5 4320.0 2877.5<br />
Croda Internation . . . .2924.0 -16.0 3139.1 2657.7<br />
Elementis . . . . . . . . . . .207.8 -2.9 312.0 200.3<br />
Johnson Matthey . . . .2827.0 -57.0 3502.1 2230.0<br />
Synthomer . . . . . . . . . .359.7 -3.0 368.1 275.1<br />
Victrex plc . . . . . . . . . .1423.0 -20.0 2092.0 1367.0<br />
Balfour Beatty . . . . . . .240.0 -7.8 272.5 220.2<br />
CRH . . . . . . . . . . . . . . .2074.0 -1.0 2088.0 1637.0<br />
Brown (N.) Group . . . . .240.0 -9.0 389.1 233.8<br />
Card Factory . . . . . . . . .360.4 -10.7 399.0 314.4<br />
Debenhams . . . . . . . . . .70.8 -3.2 94.8 64.9<br />
DFS Furniture . . . . . . . . .291.5 -3.4 349.0 263.8<br />
Dignity . . . . . . . . . . . .2550.0 9.0 2621.0 2046.0<br />
Dixons Carphone . . . . .428.0 -12.0 500.0 407.0<br />
Dunelm Group . . . . . . .935.0 -19.5 1018.0 820.0<br />
Halfords Group . . . . . . .406.9 -31.7 561.0 315.0<br />
Home Retail Group . . . .162.8 -2.5 181.5 89.7<br />
Inchcape . . . . . . . . . . . .676.0 -5.0 865.0 662.5<br />
JD Sports Fashion . . . .1300.0 -14.0 1321.0 642.5<br />
Just Eat . . . . . . . . . . . . .448.2 -6.4 494.9 329.1<br />
Kingfisher . . . . . . . . . . .364.5 -2.7 383.0 314.7<br />
Lookers . . . . . . . . . . . . .144.0 -5.7 185.0 130.8<br />
Marks & Spencer G . . . .370.9 -8.8 581.0 366.4<br />
Next . . . . . . . . . . . . . .5295.0-145.0 8015.0 4978.0<br />
Pendragon . . . . . . . . . . .40.5 -0.6 49.0 33.2<br />
Pets at Home Grou . . . .259.8 -5.2 311.2 231.2<br />
Saga . . . . . . . . . . . . . . . .212.1 -2.9 221.5 173.9<br />
Sports Direct Int . . . . . .363.4 -11.5 817.5 348.0<br />
Ted Baker . . . . . . . . . .2410.0 -26.0 3555.0 2270.0<br />
WH Smith . . . . . . . . . . .1714.0 -37.0 1878.0 1476.0<br />
Assura . . . . . . . . . . . . . . .55.9 -0.2 61.8 49.2<br />
Mediclinic Intern . . . . . .883.5 17.0 1191.0 814.0<br />
NMC Health . . . . . . . . . .1147.0 -3.0 1175.0 700.0<br />
Galliford Try . . . . . . . . .1343.0 -44.0 1813.0 1262.0<br />
Ibstock . . . . . . . . . . . . . .201.2 -6.1 225.0 184.9<br />
Keller Group . . . . . . . . .937.0 -17.0 1099.0 728.5<br />
Kier Group . . . . . . . . . .1243.0 8.0 1513.0 1162.0<br />
Marshalls . . . . . . . . . . . .323.0 -2.9 370.8 264.6<br />
Polypipe Group . . . . . . .323.1 4.8 362.0 269.5<br />
Drax Group . . . . . . . . . .297.7 -11.3 390.0 207.6<br />
SSE . . . . . . . . . . . . . . . .1521.0 -11.0 1641.0 1321.0<br />
Halma . . . . . . . . . . . . . .948.0 0.0 956.8 713.0<br />
Morgan Advanced M . . .243.7 -5.9 356.8 192.3<br />
Renishaw . . . . . . . . . .1945.0 -13.0 2495.0 1600.0<br />
Spectris . . . . . . . . . . . .1660.0 -18.0 2322.0 1442.0<br />
Aberforth Smaller . . .1064.0 -7.0 1234.0 966.0<br />
Alliance Trust . . . . . . . . .519.5 -1.5 523.0 440.1<br />
Bankers Inv Trust . . . . .581.0 -3.0 668.0 522.0<br />
BH Macro Ltd. GBP . . .1948.0 -8.0 2103.0 1930.0<br />
British Empire Tr . . . . .466.0 3.8 532.5 412.0<br />
Caledonia Investm . . .2400.0 -10.0 2515.0 2112.0<br />
City of London In . . . . .379.0 -2.3 414.3 341.5<br />
Edinburgh Inv Tru . . . .693.0 -3.0 728.0 636.5<br />
Electra Private E . . . . .3830.0 7.0 3955.0 3140.0<br />
Fidelity China Sp . . . . . .138.0 1.6 173.0 110.5<br />
Fidelity European . . . . .168.2 -1.0 186.7 152.0<br />
Finsbury Growth & . . . .597.5 -0.5 610.5 532.5<br />
Foreign and Colon . . . .439.9 -0.5 456.4 391.2<br />
GCP Infrastructur . . . . . .119.0 -1.5 123.9 114.5<br />
Genesis Emerging . . . .486.0 2.4 540.0 400.5<br />
HarbourVest Globa . . .943.0 0.0 1377.5 825.0<br />
HICL Infrastructu . . . . . .161.7 -1.0 165.3 150.2<br />
Highbridge Multi- . . . . .180.5 0.5 197.2 180.0<br />
International Pub . . . . .146.3 0.1 147.7 130.3<br />
John Laing Infras . . . . . .122.1 -0.7 126.2 114.0<br />
JPMorgan American . .290.6 -0.7 299.0 243.0<br />
JPMorgan Emerging . . .573.0 7.0 607.5 483.0<br />
Mercantile Invest . . . .1708.0 -7.0 1838.0 1546.0<br />
Monks Inv Trust . . . . . . .421.6 0.9 443.5 361.1<br />
Murray Internatio . . . . .932.0 -6.0 1041.0 742.5<br />
NB Global Floatin . . . . . .92.9 0.1 98.7 84.6<br />
P2P Global Invest . . . . .873.0 3.0 1095.0 832.0<br />
Perpetual Income . . . . .376.1 -2.1 428.5 363.8<br />
Personal Assets T . . .36900.0 0.0 37590.033130.0<br />
Polar Capital Tec . . . . . .599.0 4.5 641.0 503.5<br />
RIT Capital Partn . . . . .1566.0 -14.0 1690.0 1436.0<br />
Riverstone Energy . . . .867.5 2.5 1060.0 720.0<br />
Scottish Inv Trus . . . . . .618.0 2.0 665.0 544.5<br />
Scottish Mortgage . . . .262.5 0.1 280.8 220.6<br />
Temple Bar Inv Tr . . . .1054.0 -1.0 1220.0 940.0<br />
Templeton Emergin . . .455.5 8.5 544.0 371.5<br />
The Renewables In . . . . .97.3 -0.7 108.8 94.8<br />
TR Property Inv T . . . . . .299.1 -3.1 314.9 260.2<br />
Witan Inv Trust . . . . . . .753.0 4.0 830.0 683.0<br />
Woodford Patient . . . . .96.7 -0.5 119.3 85.0<br />
Worldwide Healthc . .1806.0 19.0 2097.0 1596.0<br />
3i Group . . . . . . . . . . . .546.5 -15.0 569.5 389.8<br />
3i Infrastructure . . . . . . .170.2 -0.5 180.5 163.6<br />
Aberdeen Asset Ma . . .270.0 -9.1 441.1 209.3<br />
Allied Minds . . . . . . . . .326.4 -4.2 615.5 267.0<br />
Arrow Global Grou . . . .264.8 -1.5 288.0 206.3<br />
Ashmore Group . . . . . .286.2 -4.5 333.9 196.4<br />
Brewin Dolphin Ho . . . .254.2 -3.8 330.7 244.0<br />
Charles Taylor . . . . . . . .256.0 -9.0 289.0 220.0<br />
City of London In . . . . .308.0 -7.0 367.5 285.0<br />
Close Brothers Gr . . . . .1327.0 -11.0 1642.0 1167.0<br />
Hargreaves Lansdo . . .1327.0 -22.0 1525.0 1054.0<br />
Henderson Group . . . . .258.6 -9.5 312.0 214.6<br />
ICAP . . . . . . . . . . . . . . . .421.1 -10.9 563.0 401.0<br />
IG Group Holdings . . . .794.0 -5.5 819.5 690.0<br />
Intermediate Capi . . . .659.5 -8.0 671.0 505.5<br />
International Per . . . . .276.5 -1.5 498.0 219.0<br />
Investec . . . . . . . . . . . . .471.3 2.5 621.0 402.7<br />
IP Group . . . . . . . . . . . . .167.9 -0.5 259.1 151.9<br />
John Laing Group . . . . .219.3 -3.7 233.8 187.0<br />
Jupiter Fund Mana . . . .434.9 -7.3 475.1 362.7<br />
Liontrust Asset M . . . . .270.0 -7.0 374.8 245.3<br />
LMS Capital . . . . . . . . . . .61.5 -2.0 80.0 61.0<br />
London Finance & . . . . .37.0 0.0 40.5 34.0<br />
London Stock Exch . . .2698.0 -37.0 2906.0 2123.0<br />
Man Group . . . . . . . . . . .131.4 -0.5 182.6 128.6<br />
OneSavings Bank . . . . .328.5 -3.1 405.6 245.9<br />
Paragon Group Of . . . .305.9 -3.3 444.8 287.1<br />
Provident Financi . . . .2873.0 -39.0 3634.0 2697.0<br />
PureTech Health . . . . . .126.0 0.0 170.5 120.0<br />
Rathbone Brothers . . .1902.0 -28.0 2359.0 1881.0<br />
Real Estate Credi . . . . . .160.5 -3.3 183.0 152.3<br />
Record . . . . . . . . . . . . . . .24.5 0.0 39.8 22.1<br />
S&U . . . . . . . . . . . . . . .2297.5 -27.5 2560.0 1992.5<br />
Sanne Group . . . . . . . .430.0 -1.0 448.3 251.0<br />
Schroders . . . . . . . . . .2661.0 -49.0 3367.0 2342.0<br />
SVG Capital . . . . . . . . . .535.0 -2.5 541.0 436.0<br />
Tullett Prebon . . . . . . . .332.2 -3.8 414.8 304.8<br />
VPC Specialty Len . . . . . .87.0 0.3 104.0 84.5<br />
Walker Crips Grou . . . . .46.3 0.0 53.8 41.3<br />
BT Group . . . . . . . . . . . .431.2 -11.7 499.8 404.0<br />
TalkTalk Telecom . . . . .238.9 -1.3 408.8 189.5<br />
Telecom Plus . . . . . . . .1016.0 -16.0 1214.0 792.0<br />
Booker Group . . . . . . . . .181.2 -0.8 190.0 149.4<br />
Greggs . . . . . . . . . . . . .1129.0 2.0 1355.0 969.0<br />
Morrison (Wm) Sup . . .196.5 -1.7 209.4 139.0<br />
Ocado Group . . . . . . . . .270.8 0.3 470.8 232.5<br />
Sainsbury (J) . . . . . . . .256.9 -11.6 292.5 223.7<br />
SSP Group . . . . . . . . . . .318.2 1.2 325.0 264.0<br />
Tesco . . . . . . . . . . . . . . .167.0 1.9 223.7 139.2<br />
UDG Healthcare Pu . . . .593.0 1.0 625.0 460.3<br />
Associated Britis . . . . .2928.0 -16.0 3599.0 2870.0<br />
Cranswick . . . . . . . . . .2333.0 15.0 2538.0 1536.0<br />
Dairy Crest Group . . . . .544.0 -6.5 697.0 517.0<br />
Greencore Group . . . . .339.4 -5.3 392.4 273.2<br />
Tate & Lyle . . . . . . . . . .633.0 4.5 636.5 502.0<br />
Unilever . . . . . . . . . . . .3177.5 31.5 3331.0 2524.0<br />
Mondi . . . . . . . . . . . . . .1327.0 -19.0 1611.0 1124.0<br />
Centrica . . . . . . . . . . . .202.0 -1.8 283.0 183.6<br />
National Grid . . . . . . . .1005.5 -1.5 1011.5 817.2<br />
Pennon Group . . . . . . .856.0 -7.0 896.5 713.0<br />
Severn Trent . . . . . . . .2264.0 -28.0 2297.0 2024.0<br />
United Utilities . . . . . . .955.0 -15.0 998.5 828.0<br />
Rexam . . . . . . . . . . . . .630.5 2.0 637.0 517.0<br />
RPC Group . . . . . . . . . . .802.5 -3.0 810.0 572.8<br />
Smith (DS) . . . . . . . . . .386.5 -2.2 421.0 331.2<br />
Smiths Group . . . . . . . .1119.0 -3.0 1215.0 863.5<br />
Vesuvius . . . . . . . . . . . . .335.1 -9.7 437.5 270.6<br />
AA . . . . . . . . . . . . . . . . .284.7 -3.3 419.3 249.1<br />
AO World . . . . . . . . . . . .168.0 -2.0 189.3 119.7<br />
Auto Trader Group . . . .393.6 0.6 449.6 287.3<br />
B&M European Valu . . .305.5 -5.5 358.5 247.7<br />
Price Chg High Low<br />
Smith & Nephew . . . . .1176.0 4.0 1212.0 1051.0<br />
Spire Healthcare . . . . .354.2 3.6 401.6 279.9<br />
Barratt Developme . . . .573.5 -18.5 662.5 499.6<br />
Bellway . . . . . . . . . . . .2645.0 -88.0 2848.0 2233.0<br />
Berkeley Group Ho . . .3180.0 -95.0 3757.0 2847.0<br />
Bovis Homes Group . . .984.0 -26.0 1201.0 819.0<br />
Crest Nicholson H . . . . .575.5 -12.5 604.0 467.9<br />
McCarthy & Stone . . . . .236.8 -0.7 287.0 207.0<br />
Persimmon . . . . . . . . .2038.0 -64.0 2219.0 1782.0<br />
Reckitt Benckiser . . . .6873.0 -2.0 6974.0 5488.0<br />
Redrow . . . . . . . . . . . . .408.3 -12.5 499.2 358.5<br />
Taylor Wimpey . . . . . . .197.7 -7.7 210.3 168.8<br />
Bodycote . . . . . . . . . . .596.0 -13.5 770.0 494.0<br />
IMI . . . . . . . . . . . . . . . . .991.5 -13.5 1262.0 742.0<br />
Melrose Industrie . . . . .394.0 9.7 396.9 242.8<br />
Rotork . . . . . . . . . . . . . .195.2 -1.5 258.0 152.7<br />
Spirax-Sarco Engi . . . .3457.0 7.0 3651.0 2725.0<br />
Weir Group . . . . . . . . . .1172.0 -27.0 1975.0 787.5<br />
Evraz . . . . . . . . . . . . . . . .113.3 2.3 168.7 56.2<br />
4Imprint Group . . . . . .1327.0 -37.0 1377.0 1046.0<br />
Bloomsbury Publis . . . .163.8 0.3 180.0 144.3<br />
Centaur Media . . . . . . . .52.0 0.8 85.5 48.3<br />
Creston . . . . . . . . . . . . . .91.0 0.0 162.0 89.0<br />
Entertainment One . . . .178.8 -6.3 326.3 130.0<br />
Euromoney Institu . . . .930.0 20.0 1230.0 855.0<br />
Future . . . . . . . . . . . . . . . .8.9 0.0 11.5 8.2<br />
Haynes Publishing . . . .100.0 1.0 130.5 99.0<br />
Huntsworth . . . . . . . . . .45.0 0.0 49.3 35.0<br />
Informa . . . . . . . . . . . . .682.5 2.5 712.0 534.0<br />
ITE Group . . . . . . . . . . . .138.3 -2.5 193.8 128.8<br />
ITV . . . . . . . . . . . . . . . . .210.7 -4.1 280.7 204.6<br />
Johnston Press . . . . . . . .35.0 -0.8 159.8 35.0<br />
Moneysupermarket. . . .331.0 0.3 377.1 273.1<br />
Pearson . . . . . . . . . . . .848.0 9.5 1304.0 657.5<br />
Relx plc . . . . . . . . . . . .1262.0 12.0 1319.0 1011.0<br />
Rightmove . . . . . . . . .4215.0 -9.0 4259.0 3154.0<br />
Sky . . . . . . . . . . . . . . . .950.5 -13.0 1141.0 921.0<br />
STV Group . . . . . . . . . . .366.8 -3.3 515.0 345.0<br />
Trinity Mirror . . . . . . . . .120.0 -0.3 182.8 111.5<br />
UBM . . . . . . . . . . . . . . . .590.5 1.5 605.5 469.6<br />
Wireless Group . . . . . . .179.3 -0.3 199.0 135.4<br />
WPP . . . . . . . . . . . . . . .1590.0 -2.0 1678.0 1304.0<br />
Zoopla Property G . . . . .313.7 -11.3 337.8 199.3<br />
BBA Aviation . . . . . . . . .201.2 -1.4 236.2 150.2<br />
Clarkson . . . . . . . . . . .2294.0 40.0 2797.0 1722.0<br />
Royal Mail . . . . . . . . . . .529.5 -11.5 544.0 413.3<br />
Admiral Group . . . . . . .1974.0 6.0 1983.0 1385.0<br />
Beazley . . . . . . . . . . . . .366.2 1.1 398.9 295.6<br />
Direct Line Insur . . . . . .375.0 -0.3 414.3 333.1<br />
esure Group . . . . . . . . .285.3 1.1 290.0 223.7<br />
Hastings Group Ho . . . .181.0 -0.9 187.7 149.8<br />
Hiscox Limited (D . . . . .982.0 -1.5 1061.0 832.0<br />
Jardine Lloyd Tho . . . . .915.0 -8.5 1063.0 778.0<br />
Lancashire Holdin . . . .556.0 -12.5 759.0 519.0<br />
RSA Insurance Gro . . . .490.2 0.2 526.5 373.2<br />
Aviva . . . . . . . . . . . . . . .443.7 -6.1 535.5 400.5<br />
JRP Group . . . . . . . . . . .140.0 -3.0 199.5 119.4<br />
Legal & General G . . . . .235.8 -3.6 276.3 199.5<br />
Old Mutual . . . . . . . . . . .178.1 0.0 229.1 149.4<br />
Phoenix Group Hol . . . .871.5 -8.5 943.5 784.5<br />
Prudential . . . . . . . . . .1350.0 -30.0 1634.0 1087.0<br />
St James's Place . . . . . .915.0 -12.5 1023.0 801.0<br />
Standard Life . . . . . . . .334.9 -4.2 484.0 314.7<br />
Acacia Mining . . . . . . . .310.5 5.0 351.8 156.6<br />
Anglo American . . . . . .592.1 -8.0 1048.5 221.1<br />
Antofagasta . . . . . . . . . .415.7 -13.3 766.5 346.1<br />
BHP Billiton . . . . . . . . . .807.1 -15.9 1383.5 580.9<br />
Centamin (DI) . . . . . . . . .98.9 2.5 121.5 53.6<br />
Fresnillo . . . . . . . . . . . .1032.0 23.0 1160.0 588.0<br />
Glencore . . . . . . . . . . . .128.9 -2.2 289.0 68.6<br />
Kaz Minerals . . . . . . . . .143.8 -0.6 255.3 72.7<br />
Polymetal Interna . . . .830.5 19.5 832.0 427.1<br />
Randgold Resource . .5845.0 45.0 6860.0 3625.0<br />
Rio Tinto . . . . . . . . . . .1868.0 -74.5 2902.0 1577.5<br />
Vedanta Resources . . . .375.0 -1.5 603.5 205.8<br />
Inmarsat . . . . . . . . . . . .705.0 -14.5 1148.0 701.5<br />
Vodafone Group . . . . . .229.5 -1.4 254.6 200.2<br />
BP . . . . . . . . . . . . . . . . .353.6 -3.7 450.0 310.3<br />
Cairn Energy . . . . . . . . .196.4 1.5 231.5 127.2<br />
Ophir Energy . . . . . . . . .70.9 -0.8 135.4 65.1<br />
Royal Dutch Shell . . . .1666.0 8.5 1938.0 1266.0<br />
Royal Dutch Shell . . . .1664.0 3.5 1952.0 1277.5<br />
Tullow Oil . . . . . . . . . . .230.9 0.4 397.7 118.2<br />
Amec Foster Wheel . . .430.9 -5.9 915.0 327.6<br />
Petrofac Ltd. . . . . . . . . .777.0 -1.0 982.0 663.0<br />
Wood Group (John) . . . .617.5 1.5 720.5 534.5<br />
Burberry Group . . . . . .1070.0 -4.0 1699.0 1064.0<br />
Jimmy Choo . . . . . . . . . .116.1 -3.9 181.4 106.0<br />
PZ Cussons . . . . . . . . . . .344.1 -6.1 370.0 249.3<br />
Supergroup . . . . . . . . .1375.0 -19.0 1714.0 1130.0<br />
AstraZeneca . . . . . . . .4015.5 -12.5 4627.5 3798.5<br />
BTG . . . . . . . . . . . . . . . .677.0 -2.0 707.5 520.5<br />
Circassia Pharmac . . . . .267.0 -2.0 353.5 254.5<br />
Dechra Pharmaceut . .1169.0 -8.0 1228.0 912.0<br />
Genus . . . . . . . . . . . . .1506.0 -9.0 1620.0 1281.0<br />
GlaxoSmithKline . . . . .1447.5 2.5 1510.0 1237.5<br />
Hikma Pharmaceuti . .2308.0 10.0 2490.0 1704.0<br />
Indivior . . . . . . . . . . . . .170.2 -1.7 266.4 130.8<br />
Shire Plc . . . . . . . . . . .4380.0 120.0 5730.0 3480.0<br />
Vectura Group . . . . . . . .163.3 -1.1 188.5 146.6<br />
Capital & Countie . . . . .342.8 0.5 473.4 314.9<br />
CLS Holdings . . . . . . . .1599.0 -9.0 2009.0 1381.0<br />
Countrywide . . . . . . . . .370.0 0.0 595.5 313.3<br />
Daejan Holdings . . . .6020.0 -60.0 6595.0 5400.0<br />
F&C Commercial Pr . . . .127.3 -0.2 148.7 124.8<br />
Grainger . . . . . . . . . . . . .241.3 -2.9 254.0 203.9<br />
Kennedy Wilson Eu . . .1061.0 -24.0 1220.0 995.0<br />
Savills . . . . . . . . . . . . . .778.0 0.5 986.5 653.0<br />
St. Modwen Proper . . . .324.4 -2.1 493.6 287.5<br />
UK Commercial Pro . . . .82.5 -0.8 91.5 78.1<br />
Unite Group . . . . . . . . .652.5 -4.0 702.5 571.5<br />
Big Yellow Group . . . . .834.5 0.5 886.5 620.0<br />
British Land Comp . . . . .731.5 -8.5 877.0 644.5<br />
Derwent London . . . .3250.0 -42.0 3880.0 2916.0<br />
Great Portland Es . . . . . .741.5 -9.5 889.5 684.5<br />
Hammerson . . . . . . . . .567.5 -11.5 685.5 535.0<br />
Hansteen Holdings . . . .103.2 -1.5 124.4 99.8<br />
Intu Properties . . . . . . .296.6 -3.1 353.2 269.8<br />
Land Securities G . . . . .1145.0 -21.0 1352.0 967.0<br />
LondonMetric Prop . . . .158.0 -6.5 171.5 153.0<br />
Redefine Internat . . . . . .45.0 -0.3 57.5 41.9<br />
SEGRO . . . . . . . . . . . . . .435.4 -2.5 463.8 398.2<br />
Shaftesbury . . . . . . . . .909.0 -9.0 971.0 813.0<br />
Tritax Big Box Re . . . . . .138.1 0.6 138.3 112.2<br />
Workspace Group . . . .859.0 -8.5 987.0 713.0<br />
Aveva Group . . . . . . . .1614.0 0.0 2319.0 1237.0<br />
Computacenter . . . . . . .839.5 -9.0 879.0 705.0<br />
Fidessa Group . . . . . . .2358.0 -8.0 2522.0 1758.0<br />
Micro Focus Inter . . . . .1631.0 1.0 1634.0 1175.0<br />
NCC Group . . . . . . . . . . .286.0 -2.7 324.1 208.0<br />
Playtech . . . . . . . . . . . .839.0 -10.5 924.0 710.5<br />
Sage Group . . . . . . . . . .612.5 -0.5 636.5 489.7<br />
Softcat . . . . . . . . . . . . . .359.7 5.8 359.7 280.0<br />
Sophos Group . . . . . . . .207.1 -2.9 289.7 176.2<br />
Aggreko . . . . . . . . . . . .1120.0 -4.0 1562.0 770.0<br />
Ashtead Group . . . . . . .961.0 -15.0 1158.0 769.0<br />
Atkins (WS) . . . . . . . . .1347.0 3.0 1656.0 1158.0<br />
Babcock Internati . . . .1030.0 -7.0 1145.0 854.0<br />
Berendsen . . . . . . . . . .1228.0 20.0 1235.0 969.0<br />
Bunzl . . . . . . . . . . . . . .2039.0 -5.0 2094.0 1671.0<br />
Capita . . . . . . . . . . . . .1053.0 -11.0 1326.0 990.0<br />
Carillion . . . . . . . . . . . . .273.1 -4.2 362.4 245.4<br />
DCC . . . . . . . . . . . . . . .6360.0 70.0 6695.0 4620.0<br />
Diploma . . . . . . . . . . . .750.0 4.0 835.0 608.0<br />
Electrocomponents . . .286.7 2.9 289.7 172.5<br />
Essentra . . . . . . . . . . . .822.5 -7.5 1029.0 673.5<br />
Experian . . . . . . . . . . .1293.0 -13.0 1306.0 1022.0<br />
G4S . . . . . . . . . . . . . . . . .185.4 -1.5 297.0 181.0<br />
Grafton Group Uni . . . .720.0 -19.0 834.5 619.5<br />
Hays . . . . . . . . . . . . . . . .135.5 -0.6 172.8 113.4<br />
Homeserve . . . . . . . . .490.0 0.0 493.4 363.2<br />
Howden Joinery Gr . . .504.0 -3.0 531.0 444.5<br />
Interserve . . . . . . . . . . . .331.1 -3.1 663.0 298.3<br />
Intertek Group . . . . . . .3155.0 18.0 3349.0 2323.0<br />
Michael Page Inte . . . . .393.5 -3.5 560.5 359.0<br />
Mitie Group . . . . . . . . . .283.7 2.0 335.6 245.7<br />
Northgate . . . . . . . . . . .393.9 -0.5 633.0 323.0<br />
PayPoint . . . . . . . . . . . .940.0 12.0 1091.0 720.0<br />
Paysafe Group . . . . . . . .410.3 -1.7 432.4 219.0<br />
Regus . . . . . . . . . . . . . . .314.2 -1.5 354.6 248.6<br />
Rentokil Initial . . . . . . . .177.9 -2.2 182.1 141.0<br />
Serco Group . . . . . . . . . .107.6 0.8 138.5 76.8<br />
SIG . . . . . . . . . . . . . . . . .131.8 -2.4 209.5 119.0<br />
Travis Perkins . . . . . . .1868.0 -55.0 2260.0 1680.0<br />
Wolseley . . . . . . . . . . .3828.0-223.0 4384.0 3230.0<br />
Worldpay Group (W . . .276.5 -0.6 316.8 255.9<br />
ARM Holdings . . . . . . . .978.0 -9.0 1148.0 848.5<br />
Laird . . . . . . . . . . . . . . .354.4 0.9 409.5 316.5<br />
British American . . . . .4167.0 -31.0 4281.0 3355.5<br />
Imperial Brands . . . . .3732.0 -29.0 3863.0 2991.0<br />
Carnival . . . . . . . . . . . .3382.0 -27.0 3907.0 2957.0<br />
Cineworld Group . . . . . .567.0 3.5 597.0 455.6<br />
Compass Group . . . . . .1295.0 8.0 1308.0 991.0<br />
Domino's Pizza Gr . . . .1041.0 -14.0 1095.0 764.0<br />
easyJet . . . . . . . . . . . .1508.0 -25.0 1808.0 1416.0<br />
FirstGroup . . . . . . . . . . .106.2 -1.9 127.7 80.8<br />
Go-Ahead Group . . . .2542.0 -23.0 2713.0 2151.0<br />
Greene King . . . . . . . . .879.0 -13.0 977.5 772.0<br />
InterContinental . . . .2625.0 -36.0 2939.8 2192.8<br />
International Con . . . . .525.5 -10.0 614.5 475.3<br />
Ladbrokes . . . . . . . . . . .135.6 0.0 140.0 93.4<br />
Marston's . . . . . . . . . . . .152.0 -0.7 176.0 143.3<br />
Merlin Entertainm . . . . .416.1 -6.5 466.8 365.9<br />
Millennium & Copt . . . .419.5 -19.2 587.0 379.0<br />
Mitchells & Butle . . . . . .289.4 -0.9 475.3 256.0<br />
National Express . . . . .338.2 -1.0 349.3 272.4<br />
Paddy Power Betfa . .9230.0 65.0 14275.0 7560.0<br />
Rank Group . . . . . . . . .250.0 -3.2 295.5 213.0<br />
Restaurant Group . . . . .348.7 -17.5 723.5 273.6<br />
Stagecoach Group . . . .256.2 -2.0 419.6 247.9<br />
Thomas Cook Group . . . .72.8 -3.6 146.8 72.5<br />
TUI AG Reg Shs (D . . . .1038.0 -19.0 1271.0 975.0<br />
Wetherspoon (J.D. . . . .723.5 -26.5 800.0 609.0<br />
Whitbread . . . . . . . . . .4164.0 -48.0 5275.0 3649.0<br />
William Hill . . . . . . . . . .307.3 -3.8 423.5 301.6<br />
Wizz Air Holdings . . . .1927.0 -8.0 2047.0 1538.0<br />
4D Pharma . . . . . . . . . .855.0 -10.0 1012.5 740.0<br />
Abcam . . . . . . . . . . . . .645.5 5.0 682.5 499.0<br />
Advanced Medical . . . .198.0 -1.3 202.3 137.3<br />
Alternative Netwo . . . .332.0 4.5 541.0 282.0<br />
Amerisur Resource . . . . .27.3 0.3 38.8 17.3<br />
Arbuthnot Banking . . .1562.5 -13.0 1625.0 1265.0<br />
ASOS . . . . . . . . . . . . . .3474.0 -22.0 3970.0 2473.0<br />
Brooks Macdonald . . .1751.5 -3.5 2040.0 1682.0<br />
Camellia . . . . . . . . . . .8025.0 -85.0 9800.0 7904.0<br />
Clinigen Group . . . . . . .553.0 -2.0 761.0 510.5<br />
Conviviality . . . . . . . . .206.5 -1.5 238.0 143.5<br />
CVS Group . . . . . . . . . . .804.0 -3.5 840.0 599.5<br />
Dart Group . . . . . . . . . .637.0 -11.5 676.5 395.0<br />
EMIS Group . . . . . . . . .1048.0 -14.0 1155.0 871.5<br />
Fevertree Drinks . . . . . .729.5 -0.5 746.6 280.0<br />
First Derivatives . . . . .2007.5 -7.5 2113.0 1290.0<br />
Gamma Communicati .444.3 -2.3 463.0 268.5<br />
GB Group . . . . . . . . . . .304.8 4.8 304.8 202.5<br />
Gemfields . . . . . . . . . . . .41.6 -0.1 68.3 35.5<br />
Gooch & Housego . . . . .914.5 0.0 935.0 772.0<br />
GW Pharmaceutical . . .520.0 -21.0 696.0 211.5<br />
Iomart Group . . . . . . . .265.0 -6.0 307.5 214.0<br />
James Halstead . . . . . .410.0 -4.0 520.0 373.5<br />
Johnson Service G . . . . .99.3 0.3 99.3 84.0<br />
M&C Saatchi . . . . . . . . .338.0 0.0 370.0 282.8<br />
M. P. Evans Group . . . . .403.5 -8.5 445.9 345.5<br />
Majestic Wine . . . . . . . .464.3 -7.8 478.3 296.0<br />
Mulberry Group . . . . . .1037.5 3.5 1043.8 883.8<br />
Nichols . . . . . . . . . . . . .1417.0 6.0 1492.0 1119.0<br />
Numis Corporation . . . .224.3 3.3 276.3 198.8<br />
Pan African Resou . . . . . .14.3 0.0 15.8 6.3<br />
Patisserie Holdin . . . . .360.0 3.3 450.0 297.0<br />
Pinewood Group . . . . . .551.5 6.5 580.0 419.9<br />
Polar Capital Hol . . . . . .319.8 -7.3 479.5 317.3<br />
Purplebricks Grou . . . . .137.3 -12.8 175.0 73.0<br />
Redcentric . . . . . . . . . . .198.0 -5.3 203.3 158.0<br />
Redde . . . . . . . . . . . . . .168.8 3.3 210.3 124.0<br />
Renew Holdings . . . . . .359.8 9.3 410.0 301.5<br />
RWS Holdings . . . . . . . .231.0 11.0 245.0 119.5<br />
Scapa Group . . . . . . . . .274.3 -5.3 280.0 179.3<br />
Secure Trust Bank . . .2600.0 -15.0 3385.0 2600.0<br />
Sirius Minerals . . . . . . . . .19.8 0.0 23.0 10.8<br />
Smart Metering Sy . . . .425.0 6.3 433.0 305.5<br />
Staffline Group . . . . . .1093.0 -7.0 1623.0 1055.0<br />
Telford Homes . . . . . . .366.0 -5.3 490.5 315.8<br />
Telit Communicati . . . . .221.3 -5.0 356.0 178.3<br />
Thorpe (F.W.) . . . . . . . . .237.5 -0.5 244.5 169.5<br />
Vernalis plc . . . . . . . . . . .45.0 -0.6 86.5 43.0<br />
Vertu Motors . . . . . . . . . .56.0 -2.3 78.5 55.4<br />
Young & Co's Brew . . .1228.0 -7.0 1310.0 1075.0<br />
Young & Co's Brew . . . .945.5 0.0 955.0 792.5<br />
Shire Plc . . . . . . . . . . . . . . . . . .4380.0 2.8<br />
Centamin (DI) . . . . . . . . . . . . . . .98.9 2.6<br />
Melrose Industries . . . . . . . . . . .394.0 2.5<br />
Polymetal Internat . . . . . . . . . .830.5 2.4<br />
Fresnillo . . . . . . . . . . . . . . . . . .1032.0 2.3<br />
Euromoney Institut . . . . . . . . . .930.0 2.2<br />
Evraz . . . . . . . . . . . . . . . . . . . . . . .113.3 2.1<br />
Mediclinic Interna . . . . . . . . . . .883.5 2.0<br />
Templeton Emerging . . . . . . . . .455.5 1.9<br />
Clarkson . . . . . . . . . . . . . . . . . .2294.0 1.8<br />
Halfords Group . . . . . . . . . . . . .406.9 -7.2<br />
Wolseley . . . . . . . . . . . . . . . . . .3828.0 -5.5<br />
Restaurant Group . . . . . . . . . . . .348.7 -4.8<br />
Thomas Cook Group . . . . . . . . . . .72.8 -4.7<br />
Millennium & Copth . . . . . . . . . .419.5 -4.4<br />
Sainsbury (J) . . . . . . . . . . . . . . .256.9 -4.3<br />
Debenhams . . . . . . . . . . . . . . . . .70.8 -4.3<br />
LondonMetric Prope . . . . . . . . . .158.0 -4.0<br />
Rio Tinto . . . . . . . . . . . . . . . . . .1868.0 -3.8<br />
Lookers . . . . . . . . . . . . . . . . . . . .144.0 -3.8<br />
Risers<br />
Fallers<br />
MAIN CHANGES UK 350<br />
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low<br />
Price Chg High Low Price Chg High Low<br />
GILTS<br />
http://corporate.webfg.com<br />
mailto:<br />
globaltechsales@webfg.com<br />
%<br />
%<br />
AUTOMOBILES & PARTS<br />
AEROSPACE & DEFENCE<br />
BANKS<br />
BEVERAGES<br />
CHEMICALS<br />
CONSTRUCTION & MATERIALS<br />
ELECTRICITY<br />
ELECTRONIC & ELECTRICAL EQ.<br />
EQUITY INVESTMENT INSTRUM.<br />
FINANCIAL SERVICES<br />
FIXED LINE TELECOMS<br />
FOOD & DRUG RETAILERS<br />
FOOD PRODUCERS<br />
FORESTRY & PAPER<br />
GAS, WATER & MULTIUTILITIES<br />
GENERAL INDUSTRIALS<br />
HEALTH CARE EQUIPMETN & S.<br />
OIL & GAS PRODUCERS<br />
OIL EQUIPMENT & SERVICES<br />
PERSONAL GOODS<br />
PHARMACEUTICALS & BIOTECH<br />
REAL ESTATE INVEST. & SERV.<br />
REAL ESTATE INVEST. TRUSTS<br />
SUPPORT SERVICES<br />
TECHNOLOGY HARDW. & EQUIP.<br />
TOBACCO<br />
TRAVEL & LEISURE<br />
AIM 50<br />
Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5<br />
Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6<br />
Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7<br />
Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3<br />
Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3<br />
Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1<br />
Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7<br />
Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0<br />
Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2<br />
Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5<br />
Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4<br />
Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7<br />
Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4<br />
Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1<br />
Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5<br />
Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4<br />
Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1<br />
Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0<br />
Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9<br />
Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3<br />
Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4<br />
Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7<br />
Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7<br />
Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6<br />
Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4<br />
Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2<br />
Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1<br />
Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6<br />
Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3<br />
Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4<br />
Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9<br />
INDUSTRIAL METALS & MINING<br />
GENERAL RETAILERS<br />
WORLD INDICES<br />
FTSE 100. . . . . . . . . . . . . . . . . . . . . . 6191.93 -38.86 -0.62<br />
FTSE 250 . . . . . . . . . . . . . . . . . . . . 17061.47 -123.26 -0.72<br />
FTSE All-Share . . . . . . . . . . . . . . . . 3407.91 -21.86 -0.64<br />
FTSE AIM All-Share . . . . . . . . . . . . . . 737.16 -2.34 -0.32<br />
S&P 500 . . . . . . . . . . . . . . . . . . . . . 2099.33 2.37 0.11<br />
Dow Jones I.A. . . . . . . . . . . . . . . . 17789.67 2.47 0.01<br />
Nasdaq Composite . . . . . . . . . . . . 4952.25 4.20 0.08<br />
Xetra DAX . . . . . . . . . . . . . . . . . . . 10204.44 -58.30 -0.57<br />
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4475.39 -30.23 -0.67<br />
Swiss Market Index . . . . . . . . . . . . 8185.53 -30.89 -0.38<br />
ISEQ Overall Index . . . . . . . . . . . . . 6435.74 -57.72 -0.89<br />
FTSEurofirst 300 . . . . . . . . . . . . . . . 1350.34 -12.29 -0.90<br />
Hang Seng. . . . . . . . . . . . . . . . . . 20760.98 -54.11 -0.26<br />
Shanghai Composite . . . . . . . . . . . 2913.51 -3.11 -0.11<br />
Straits Times . . . . . . . . . . . . . . . . . 2790.54 -0.52 -0.02<br />
ASX All Ordinaries . . . . . . . . . . . . . 5395.20 -52.60 -0.97<br />
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg<br />
LIFE INSURANCE<br />
MOBILE TELECOMS<br />
INDUSTRIAL ENGINEERING<br />
MEDIA<br />
MINING<br />
S<strong>OF</strong>TWARE & COMPUTER SERV.<br />
HHOLD GDS & HOME CONSTR.<br />
NON LIFE INSURANCE<br />
INDUSTRIAL TRANSPORTATION<br />
CITYAM.COM<br />
18 MARKETS THURSDAY 2 JUNE 2016
CITYAM.COM<br />
THURSDAY 2 JUNE 2016 FEATURE<br />
19<br />
CROWDFUNDING<br />
How<br />
bureaucracy<br />
killed the<br />
US market<br />
ORDINARY American investors<br />
finally got permission to<br />
invest in startups and other<br />
private businesses last month.<br />
Equity crowdfunding, as this<br />
form of investment has come to be<br />
known, has been a reality in Britain for<br />
almost four years. Seedrs, the Londonbased<br />
platform I co-founded, became<br />
the first regulated equity crowdfunding<br />
platform in 2012.<br />
Since then, alongside our competitors,<br />
we have redefined early-stage investment<br />
in the UK (and, in our case, elsewhere<br />
in Europe), transforming the<br />
space from a small, clubby grouping of<br />
hobbyists to an open marketplace for<br />
investors of all shapes and sizes.<br />
Crowdfunding’s journey into the US<br />
has been far less straightforward. The<br />
original legislation permitting it was<br />
passed in 2011, but regulatory holdups<br />
meant that it has only become reality<br />
now.<br />
So will the floodgates open, and the<br />
US quickly overtake us in this area of<br />
the capital markets? For better or worse,<br />
the answer is no. The sound of<br />
American equity crowdfunding will, for<br />
now, be far more a whimper than a<br />
bang.<br />
LEFT BEHIND<br />
This is because the law that came into<br />
force on Monday, known as Title III of<br />
the Jobs Act, is so deeply flawed as to be<br />
almost unworkable.<br />
One of the biggest problems with Title<br />
Jeff<br />
Lynn<br />
III is the huge burdens in places on companies<br />
seeking to raise capital. While<br />
these are intended to protect investors,<br />
many of them are unnecessary or even<br />
absurd for early-stage businesses.<br />
These burdens have the effect of making<br />
crowdfunding far more expensive<br />
and time-consuming than raising<br />
money through other channels, such as<br />
institutional or private angel investors.<br />
Businesses will turn to crowdfunding as<br />
a last resort after more efficient capitalraising<br />
methods have failed.<br />
This is the adverse selection problem<br />
that we have successfully defeated in<br />
Europe: because equity crowdfunding<br />
here is a reasonably straightforward<br />
process for companies, many choose it<br />
in lieu of (or in combination with) institutional<br />
or angel investment.<br />
That will not be the case in the US.<br />
Instead, only those businesses that cannot<br />
raise capital elsewhere will use equity<br />
crowdfunding. Ordinary retail<br />
investors will have access only to lowerquality<br />
investment opportunities.<br />
A second issue is that, despite all the<br />
burdens it imposes, Title III gives insuffi-<br />
cient protection to investors.<br />
While Title III focuses heavily on limiting<br />
investors’ losses, it is also important<br />
that investors be protected in the case of<br />
a business’s success. A successful business<br />
can see its valuation increase 100-<br />
fold or more, but if the investment has<br />
not been properly structured or monitored,<br />
investors may receive nothing.<br />
Where restrictions interfere with<br />
crowdfunding platforms’ ability to provide<br />
those protections – which is precisely<br />
what Title III does – investors will<br />
be significantly worse off in the long<br />
run.<br />
A final problem is that the American<br />
legislation reduces the likelihood of<br />
businesses succeeding in raising capital.<br />
One of the key lessons from the<br />
growth of equity crowdfunding in<br />
Europe is that raising capital in this way<br />
is a dynamic process that requires the<br />
business to build momentum behind its<br />
campaign.<br />
A VIABLE FUTURE<br />
Successful campaigns tend to require<br />
active outreach, ongoing and multimodal<br />
engagement with prospective<br />
investors, and the participation of one<br />
or more “anchor” angel or institutional<br />
investors, who can lead funding rounds.<br />
Title III’s significant marketing restrictions<br />
mean that companies will be very<br />
limited in their ability to create momentum,<br />
which in turn will make it exceptionally<br />
difficult for their campaigns to<br />
succeed. Combined, these flaws in Title<br />
III will make it exceedingly difficult for<br />
equity crowdfunding to have anywhere<br />
near the impact in the US that it has<br />
had on this side of the pond.<br />
But all hope is not lost. In late March<br />
2016, Congressman Patrick McHenry,<br />
who authorised the original crowdfunding<br />
bill in 2011, introduced a new piece<br />
of legislation called, aptly, the Fix<br />
Crowdfunding Act. Focusing on investor<br />
protection, I think this is a strong piece<br />
of legislation that goes a long way<br />
toward addressing the concerns above.<br />
The question is whether it will become<br />
law, or will languish in bureaucratic<br />
delays for another five years.<br />
£ Jeff Lynn is co-founder and chief<br />
executive of Seedrs.<br />
Why private equity is coming to the crowd<br />
SMALL business investment has<br />
gone mainstream – or has it?<br />
While individual private<br />
investors looking to back earlystage<br />
businesses are spoilt for<br />
choice as crowdfunding gathers pace,<br />
opportunities for them to provide<br />
private equity backing to more<br />
established SMEs remain scarce.<br />
Investing in such businesses is often<br />
more complex, but usually offers a better<br />
risk/return profile. We’re talking<br />
about two quite different types of<br />
investment here. Venture capital investing<br />
presents the possibility of returns<br />
worth many times the original investment<br />
– if you pick a winner. The flip<br />
side is that there’s a far greater likelihood<br />
of losing your stake altogether. To<br />
balance the risk, investors need to have<br />
quite a wide range of venture capital<br />
investments in their portfolios.<br />
With private equity investments – i.e.<br />
growth capital for longer-standing businesses,<br />
or funding a change of ownership<br />
through a management buy-out<br />
(MBO) or an equity restructuring –<br />
investors are less likely to see 10 or<br />
Claire<br />
Madden<br />
more times their money on exit.<br />
But equally, they have a far greater<br />
probability of seeing a return overall,<br />
particularly if the investment has been<br />
structured and managed correctly.<br />
Indeed, figures from the British<br />
Venture Capital Association show that<br />
small MBOs are the most consistent<br />
longer-term performer of any private<br />
equity or venture capital investment<br />
stage – providing 39.2 per cent internal<br />
rate of return over 10 years (compared<br />
with 4.6 per cent for venture funds).<br />
There are several reasons for this.<br />
Later stage businesses are more robust,<br />
with visible revenue streams and profits:<br />
they don’t need to prove their concept<br />
or routes to market. Management<br />
teams are well-established, therefore<br />
less reliant on just one or two key people,<br />
reducing risk. Exit prospects are<br />
better – since they are already more<br />
mature, time required to position the<br />
business for exit is often shorter.<br />
Moreover, there are likely to be more<br />
exit options available on the secondary<br />
market or through a trade sale. Such<br />
buyers usually won’t be interested in a<br />
business until it has reached a certain<br />
size.<br />
But for private investors, access is a<br />
stumbling block. Although crowdfunding<br />
platforms are starting to broaden<br />
their company focus beyond startups,<br />
the average age of investment prospects<br />
is currently only just over three years,<br />
according to AltFi Data. You’re unlikely<br />
to find private equity opportunities run<br />
on a crowdfunding platform.<br />
Why not? First, later-stage investee<br />
companies are often highly sensitive to<br />
having commercial information publicly<br />
available. Second, there is the deal<br />
management factor. Investments like<br />
this require an institutional approach<br />
which needs to be managed by an experienced<br />
party, both pre and post deal.<br />
Given the wide variety of parties<br />
involved, a great deal of coordination is<br />
required complete the deal. Due diligence<br />
is more complex. Most crowdfunding<br />
platforms are simply not set up<br />
to navigate this level of complexity: it<br />
needs full-scale private equity treatment.<br />
Equally, deals of this type need ongoing<br />
professional management of the<br />
investor syndicate – again, something<br />
which is not par for the course with<br />
crowdfunding. This is especially important<br />
on exit. A fragmented or dis-unified<br />
investor base could deter potential<br />
buyers, adversely affecting the firm’s<br />
valuation.<br />
These kinds of<br />
investments require<br />
an institutional<br />
approach<br />
Investors also need the relationship<br />
with the portfolio company to be actively<br />
managed on their behalf – not least<br />
to ensure that appropriate legal protections<br />
are in place to safeguard their<br />
interests as minority shareholders.<br />
This sounds like a tall order. But we<br />
are now starting to see more platforms<br />
opening the door for sophisticated private<br />
investors to participate in private<br />
equity deals by providing a more structured<br />
syndication approach. The idea of<br />
investing via an innovative “experienced<br />
investor collective”, where private<br />
equity professionals take on the<br />
role of institutional investor on behalf<br />
of multiple clients, is gaining traction.<br />
There’s a certain thrill factor in investing<br />
in a new business. But more established<br />
SMEs can be just as exciting –<br />
while being a less uncertain proposition<br />
for investors. The prospect of superior<br />
risk-adjusted returns is an<br />
attractive one. Why should institutional<br />
investors have them all to themselves?<br />
£ Claire Madden is managing partner at<br />
Connection Capital.
20 LIFE&STYLE THURSDAY 2 JUNE 2016<br />
TECHNOLOGY<br />
EDITED BY STEVE HOGARTY @misterbrilliant<br />
: @city_am<br />
CITYAM.COM<br />
:@cityamlife<br />
AUDIO<br />
SONOS PLAY:5<br />
£429 – SONOS.COM<br />
HEATING<br />
NEST THERMOSTAT<br />
£249 – NEST.COM/UK<br />
SECURITY<br />
CANARY<br />
£159 – STORE-UK.CANARY.IS<br />
Home security cameras have been around for<br />
some time, their sales numbers buoyed by<br />
the release of alarmist home invasion<br />
documentaries such as Home Alone and<br />
Home Alone 2: Lost In New York. But its only<br />
in recent years that they’ve become welldesigned,<br />
discreet and web-enabled. The<br />
Canary monitors your living room using a<br />
motion sensing camera, alerts you to<br />
unwelcome visitors, and can be<br />
made to emit a burglar-spooking<br />
90 decibel alarm remotely using<br />
the Canary app. By registering<br />
your family’s phones, it will<br />
politely stop recording when<br />
trusted people are home.<br />
Sonos is a byword for connected home speaker systems, and<br />
with the launch of the re-engineered Play:5 last year, the<br />
company’s flagship speaker is more powerful, better sounding,<br />
faster connecting and better looking than ever. Purists will love<br />
that the front logo doesn’t interfere with sound quality, as it’s<br />
been designed to be “acoustically transparent”.<br />
Easily the object on this page that most<br />
resembles the homicidal computer<br />
from 2001: A Space Odyssey, the super<br />
clever Nest thermostat gradually learns<br />
how to heat your home, switches the<br />
heating off while you’re out and warms<br />
things up in time for your arrival home<br />
from the office. Let it monitor your<br />
thermostat adjustments and in a week<br />
or two it will automatically create an<br />
intelligent heating schedule. It’s the<br />
best thermostat available and almost<br />
certainly isn’t plotting to murder you.<br />
MAKE THE CONNECTION<br />
Is your home smart, or just a big idiot made of bricks? Get connected with these top home devices<br />
LIGHTING<br />
PHILIPS HUE<br />
£14.95 – MEETHUE.COM<br />
These LED lightbulbs from Philips can glow in any<br />
colour you can name and some that you can’t.<br />
They’re controlled wirelessly, meaning they can be<br />
adjusted from your phone to create your preferred<br />
lighting conditions. When connected to Apple’s<br />
HomeKit, you can ask Siri to change the bulbs to<br />
things like “light blue”or “the colour of the darkest<br />
recesses of my consumerist soul”.<br />
TRACKING<br />
TILE<br />
$25 – THETILEAPP.COM<br />
Attach a Tile to your keys (or to<br />
anything you’re likely to lose) and you<br />
can ring them from your phone, and<br />
vice versa. Lose them outdoors and<br />
your phone will remember the last<br />
place you had them. If they’re stolen,<br />
you can call upon every phone using<br />
the Tile app to scan for your lost item.<br />
TELEVISION<br />
AMAZON FIRE TV<br />
£79.99 – AMAZON.CO.UK<br />
The Amazon Fire TV<br />
comes in both box<br />
and dongle form,<br />
the latter plugging<br />
itself wholly into<br />
your television’s HDMI port. This larger<br />
version allows you to stream in 4K resolution, has enough processing power<br />
to play games and comes with the voice remote, which allows you to bark<br />
the names of films and actors to summon them to the screen. It plays<br />
Amazon Video and runs all of the usual suspects, eg. iPlayer and Netflix. The<br />
freedom to sideload Android apps allows for some expanded function too.<br />
APPLE TV<br />
£129 – APPLE.COM/UK<br />
Naturally the slickest of the<br />
three major connected TV<br />
devices, the Apple TV is<br />
Cupertino’s most recent attempt at<br />
creating a one-stop telly shop for all of<br />
your entertainment needs. Siri can search<br />
across all of your streaming apps to find<br />
films, music and shows, while the sleek<br />
touchpad remote is easily the best little black<br />
rectangle you’ll ever point at your big black rectangle. It also<br />
has the loveliest screensavers you’ve ever seen. Just top notch.<br />
CHROMECAST<br />
£30 – GOOGLE.COM<br />
Google caused a stir<br />
when it first released<br />
its cheap-as-chips<br />
HDMI dongle, which<br />
turns any TV into a<br />
smart TV. A two-finger<br />
salute to more expensive<br />
rivals, it proved that you only really need your phone and<br />
your wi-fi to power your TV’s entertainment. Compatible<br />
with more devices than the Apple TV, it’s the perfect solution<br />
for households who aren’t locked into the iOS ecosystem.
CITYAM.COM<br />
THURSDAY 2 JUNE 2016<br />
FEATURE<br />
21<br />
<strong>OF</strong>FICE POLITICS<br />
Our lives need a blend, not a balance<br />
Twenty four hour connectivity killed the old<br />
formula for a good life, says Paul Lindley<br />
I<br />
T IS time to abandon the idea of<br />
the work-life balance. Work and<br />
life don’t exist in separate,<br />
opposing spheres. In a world of<br />
24 hour connectivity, the distinction<br />
between the two is increasingly<br />
impossible to make out.<br />
According to a survey by Willis<br />
Towers Watson, our pursuit of this<br />
illusive sense of balance is a principal<br />
cause of workplace stress. Businesses<br />
across the country are counting the<br />
cost of reduced productivity and<br />
attainment associated with diminished<br />
wellbeing, which eventually<br />
affects employee attendance and<br />
retention rates.<br />
So what can we use to replace the<br />
idea of balance?<br />
WORK-LIFE BLEND<br />
Put simply, employers need to<br />
embrace the truth that work impacts<br />
on life, and life is impacted by work.<br />
But reports demonstrate that employees<br />
don’t feel comfortable discussing<br />
vital parts of their lives with their<br />
employers. For example, the Modern<br />
Families Index recently showed that<br />
fewer than half of parents are happy<br />
to discuss family issues with their<br />
employer.<br />
At Ella’s Kitchen, our head of HR has<br />
recently begun piloting a new<br />
method of employee coaching. The<br />
goal is to help our team achieve a<br />
work-life blend. The idea behind the<br />
blend is to openly acknowledge and<br />
respect that productivity at work is<br />
impacted by external, as well as internal<br />
factors.<br />
CREATE SPACE TO TALK<br />
A vital part of the strategy is to create<br />
open, honest communication<br />
between leaders and the individuals<br />
in their team.<br />
Make time for one-on-one meetings<br />
between leaders and team members<br />
to discuss the factors inside and outside<br />
work which are affecting their<br />
success. It may be that they want the<br />
time to play on a badminton team, be<br />
home for dinner with their children,<br />
take a language class or train for a<br />
marathon.<br />
It’s vital to acknowledge that having<br />
time to do these things has as much<br />
of an impact on a person’s wellbeing<br />
and productivity as good team<br />
dynamics or a sense of career progression.<br />
There needs to be space on the<br />
agenda in resourcing and strategy<br />
decisions to accommodate these<br />
external interests.<br />
MAKE A PLAN<br />
It is important that leaders work with<br />
The Modern<br />
Families Index<br />
recently showed<br />
that fewer than<br />
half of parents are<br />
happy to discuss<br />
family issues with<br />
their employer<br />
each team member to identify practical,<br />
measurable steps that will help<br />
them to achieve a fulfilling work-life<br />
blend.<br />
Online tools can help in this area.<br />
We use the Open Blend Method,<br />
which facilitates interactive coaching<br />
sessions between individuals and<br />
their managers, encouraging each to<br />
achieve their optimal blend.<br />
It’s also worth ensuring you’ve got<br />
expert support available. We work<br />
with a specialist coach who supports<br />
on specific areas, like returning to<br />
work following maternity leave.<br />
DATA<br />
THRIFT<br />
Opera Max<br />
Free<br />
Designed to help<br />
users economise<br />
on their data<br />
usage, Opera<br />
Max allows you<br />
to cut down<br />
when watching<br />
videos on the<br />
likes of YouTube<br />
and Netflix, and<br />
monitor apps<br />
which are<br />
costing you<br />
most. Users are<br />
also able to set a<br />
roaming cap,<br />
and stop apps<br />
from eating into<br />
their monthly<br />
limit when<br />
they’re on in the<br />
background.<br />
TRACK AND FEEDBACK<br />
Open Blend also provides a great software<br />
application that allows us to<br />
track the feedback of our team in realtime,<br />
across a number of their different<br />
priority areas.<br />
It also provides an analytics tool<br />
which allows leaders to analyse live<br />
data about their team members, and<br />
compare their trends and performance<br />
with that of other industries and<br />
countries.<br />
Before Ella’s Kitchen began running<br />
the Open Blend initiative, 50 per cent<br />
of a group we sampled said that they<br />
had achieved right work-life blend.<br />
But after only a few sessions, this had<br />
increased to 80 per cent.<br />
CHANGE IN MINDSET<br />
The rise of flexible working has been<br />
an enormous step forwards. It has<br />
given individuals back a sense of ownership<br />
over their time, and is gradually<br />
creating a more compassionate<br />
style of management. However, these<br />
new approaches must be<br />
underpinned by a genuine shift in<br />
mindset at the heart of businesses.<br />
In the race to attract and retain top<br />
talent, as well as to spark creativity<br />
and industry-leading innovation, prioritising<br />
the wellbeing of your team<br />
has got to be top of the agenda if you<br />
want to make your employees more<br />
productive and profitable.<br />
£Paul Lindley is founder and chairman<br />
of Ella’s Kitchen.
22 SPORT THURSDAY 2 JUNE 2016<br />
CITYAM.COM<br />
RESULTS<br />
IN BRIEF<br />
FOOTBALL<br />
INTERNATIONAL MATCH<br />
Belgium .................(0) 1 Finland .......................(0) 1<br />
Czech Republic .....(0) 2 Russia .........................(1) 1<br />
Estonia ....................(1) 2 Andorra .....................(0) 0<br />
Latvia .....................(0) 2 Lithuania ...................(0) 1<br />
Norway .................. (2) 3 Iceland........................(1) 2<br />
Poland ....................(0) 1 Holland .......................(1) 2<br />
Spain ...................... (3) 6 South Korea ..............(0) 1<br />
CRICKET<br />
SPECSAVERS COUNTY CHAMPIONSHIP - DIVISION<br />
ONE—Middlesex v Hampshire (Merchant Taylors<br />
School): Middlesex 467-3dec. (115.2 overs). Hampshire<br />
131 (51.4 overs) and 220 (77 overs). Middlesex (24pts)<br />
beat Hampshire (1pts) by an innings and 116 runs.<br />
Yorkshire v Lancashire (Headingley Carnegie): Yorkshire<br />
308 (97.1 overs) and 236 (84.2 overs). Lancashire 196<br />
(60.4 overs) and 173 (86.4 overs). Yorkshire (22pts) beat<br />
Lancashire (3pts) by 175 runs.<br />
DIVISION TWO—Leicestershire v Kent (Canterbury):<br />
Leicestershire 341 (98.3 overs). Kent 117-2 (44 overs).<br />
Kent (8pts) drew with Leicestershire (8pts).No play<br />
Wednesday due to rain. Worcestershire v<br />
Gloucestershire (New Road): Worcestershire 439 (113.1<br />
overs) and 239 (56.3 overs). Gloucestershire 364-6dec.<br />
(112 overs) and 320-5 (57.4 overs). Gloucestershire (23pts)<br />
beat Worcestershire (7pts) by 5 wickets.<br />
TENNIS<br />
FRENCH OPEN (Roland Garros, Paris, France)—Men’s 4th<br />
rnd: (1) N Djokovic (Ser) bt (14) R Bautista Agut (Spa) 3-6<br />
6-4 6-1 7-5, (7) T Berdych (Cze) bt (11) D Ferrer (Spa) 6-3<br />
7-5 6-3, (13) D Thiem (Aut) bt M Granollers (Spa) 6-2 6-7<br />
(2-7) 6-1 6-4, (12) D Goffin (Bel) bt E Gulbis (Lat) 4-6 6-2<br />
6-2 6-3. Men’s Qtr-finals: (3) S Wawrinka (Swi) bt A<br />
Ramos-Vinolas (Spa) 6-2 6-1 7-6 (9-7), (2) A Murray (Gbr)<br />
bt (9) R Gasquet (Fra) 5-7 7-6 (7-3) 6-0 6-2.<br />
Women’s 4th rnd: (1) S Williams (USA) bt (18) E Svitolina<br />
(Ukr) 6-1 6-1, Y Putintseva (Kaz) bt (12) C Suarez Navarro<br />
(Spa) 7-5 7-5, K Bertens (Ned) bt (15) M Keys (USA) 7-6<br />
(7-4) 6-3, (8) T Bacsinszky (Swi) bt (9) V Williams (USA)<br />
6-2 6-4. Women’s Qtr-finals: (4) G Muguruza (Spa) bt S<br />
Rogers (USA) 7-5 6-3, (21) S Stosur (Aus) bt T Pironkova<br />
(Bul) 6-4 7-6 (8-6).<br />
TODAY’S DIARY<br />
International Matches<br />
England v Portugal ...................................................................................7.45<br />
ENGLAND FACE AUSTRALIA<br />
IN CHAMPIONS TROPHY<br />
£ CRICKET: Host nation England<br />
were pitched against world<br />
champions Australia, New Zealand<br />
and Bangladesh as the draw for the<br />
2017 Champions Trophy was made<br />
yesterday. Whereas England have<br />
been drawn in Group A, defending<br />
champions India, Pakistan, Sri<br />
Lanka and South Africa are in Group<br />
B. World Twenty 20 winners West<br />
Indies will not be present as they<br />
were ranked outside the top eight<br />
sides in the world at the cut off point<br />
in September. A league system for<br />
Test cricket, meanwhile, could be in<br />
place by 2019, according to ICC boss<br />
Dave Richardson.<br />
NADAL WITHDRAWS FROM<br />
QUEEN’S DUE TO INJURY<br />
£ TENNIS: Former world No1<br />
Rafael Nadal has withdrawn from<br />
the Aegon Championships at<br />
Queen’s Club due to the wrist injury<br />
which forced him to pull out of the<br />
French Open. Nadal, a 14-time<br />
grand slam champion who won at<br />
Queen’s in 2008, feared risking<br />
further injury so close to<br />
Wimbledon, which starts on 27<br />
June. The 29-year-old said: “I enjoy<br />
playing in front of the British people<br />
and I was looking forward to trying<br />
to win the title for a second time.”<br />
Queen’s starts on 13 June.<br />
BILLION<br />
POUND<br />
SUMMER!<br />
00396<br />
CRICKET<br />
What now for Cook and Anderson?<br />
Sachin and 600 wickets ultimately<br />
Entertain clients with the very best hospitality London can offer.<br />
From Private Suites to a relaxed sports lounge, with our range of packages<br />
you’ll find a hospitality experience tailored to suit you.<br />
Book now for Annual Hospitality membership.<br />
Limited availability on sale now for 2016/17<br />
Be a part of the present, to secure your place in our future<br />
AS WELL as England wrapping<br />
up a series-clinching<br />
victory against Sri Lanka this<br />
week, there were also some<br />
extremely impressive milestones<br />
for skipper Alastair Cook and<br />
seamer James Anderson. The question<br />
now is, how far can these guys go?<br />
At 31 years and 157 days, Cook<br />
became the youngest player in<br />
history to reach 10,000 Test runs<br />
during England’s second innings in<br />
the second Test at Chester-le-Street.<br />
He is the first Englishman to<br />
achieve the feat and is one of only<br />
12 batsmen to do so.<br />
Cook is probably the fittest guy I<br />
ever played cricket with. He used to<br />
absolutely smash the fitness tests<br />
and batting doesn’t seem to tire<br />
him. There is nothing stopping him<br />
playing for another five or six years<br />
and chasing down some seriously<br />
big records.<br />
It might come down to his<br />
mental state; how long he wants to<br />
keep playing and be away from his<br />
family. That element is made<br />
slightly easier by him only playing<br />
Test cricket these days.<br />
India great Sachin Tendulkar<br />
holds the record for Test runs, he<br />
CRICKET<br />
COMMENT<br />
Chris<br />
Tremlett<br />
amassed 15,921 during his career,<br />
while the likes of Ricky Ponting,<br />
Jacques Kallis and Brian Lara are all<br />
above Cook in the standings. Time,<br />
however, is on the England<br />
captain’s side.<br />
DARK PLACE<br />
Factor in also that this England side<br />
is an exciting place to be. Credit<br />
must go to Cook, who has really<br />
grown into the captaincy role over<br />
the last year, for taking the side from<br />
a pretty dark place after the 2013/14<br />
Ashes to now – one of the world’s<br />
best teams.<br />
I’m sure he will be determined to<br />
take England to the next level and<br />
conceivably he could play for<br />
another six years. If he does and<br />
averages 45-50, for instance, he is<br />
going to be well into the teens and<br />
it is feasible he could surpass<br />
Tendulkar’s record.<br />
Turning to Anderson, who<br />
claimed his 450th Test wicket up at<br />
Durham. His skills are phenomenal<br />
and his results speak volumes. In<br />
English conditions he tends to bowl<br />
within himself a little bit but, on<br />
flatter pitches, knows when to up<br />
the ante and his pace.<br />
The only thing which could derail<br />
him over the next few years is<br />
injury, but with his frame and the<br />
way he’s built he doesn’t put too<br />
much stress on his body. I’ve read<br />
articles in which he says he aims to<br />
still be playing at the age of 40.<br />
I remember writing last year that<br />
I could see Anderson chalking up<br />
500 Test scalps but the Lancashire<br />
right-armer, who is now 33, just<br />
keeps on taking wickets and I can<br />
see him going on to snare 550,<br />
maybe even 600 Test victims. The<br />
latter would put him fourth on the<br />
all-time list behind spinners<br />
Muttiah Muralitharan, Shane<br />
Warne and Anil Kumble but above<br />
ex-Australia seamer Glenn McGrath,<br />
who has 563 wickets. Like Cook, if<br />
Anderson remains hungry, there<br />
really is nothing stopping him.
CITYAM.COM THURSDAY 2 JUNE 2016 SPORT 23<br />
Joe Hall examines Deloitte’s Annual<br />
Review of Football Finance and finds<br />
a record spending spree is imminent<br />
PREMIER League clubs are expected<br />
to smash transfer<br />
records this summer and spend<br />
over £1bn in a single window for<br />
the first time.<br />
Deloitte’s Sports Business Group is<br />
predicting Premier League clubs’<br />
expenditure on new players will hit new<br />
heights in the forthcoming transfer<br />
window, following another season of<br />
revenue growth.<br />
Collective revenues for the 20 clubs in<br />
England’s top tier reached a record<br />
£3.3bn in the 2014/15 season, according<br />
to Deloitte’s Annual Review of Football<br />
Finance published today, a figure<br />
projected to rise to £4.3bn next year.<br />
Premier League clubs scored their<br />
second-highest collective pre-tax profits<br />
of £121m last season, a slight dip on the<br />
previous campaign as clubs racked up<br />
record receipts from wages, transfers<br />
and capital expenditure.<br />
Premier League clubs’ wage costs<br />
increased by seven per cent to exceed<br />
£2bn for the first time, spending on new<br />
players hit a record £1.1bn across the<br />
season — more than double that of any<br />
other European league — and capital<br />
expenditure reached a new high of<br />
£305m.<br />
Yet Deloitte’s Sports Business Group,<br />
which advises clubs on acquisitions and<br />
strategy, believes such outlay will be<br />
dwarfed over the coming months as<br />
Premier League clubs enjoy the riches of<br />
a new £8bn broadcast deal to snap up<br />
the stars of Euro 2016.<br />
“A lot of Premier League clubs will<br />
already be going into this summer<br />
window, particularly with a major<br />
international tournament about to<br />
start, looking at which players they<br />
want to buy to push for the title next<br />
season,” Deloitte’s sports business<br />
Group senior consultant Andy Bull told<br />
City A.M.<br />
“We’re expecting it to be a big summer<br />
transfer window anyway with the new<br />
TV deal starting next year, but with the<br />
addition of a major tournament,<br />
spending by Premier League clubs could<br />
easily reach £1bn which would be a new<br />
record.”<br />
The Premier League was Europe’s<br />
most profitable league in the 2014/15<br />
season, with a lower wages to turnover<br />
ratio than Spain’s La Liga, Italy’s Serie A<br />
and France’s Ligue 1. Such sound<br />
financial footing prompted an £870m<br />
spending spree last summer as the likes<br />
of Stoke City, Southampton and West<br />
Bromwich Albion, clubs which are not<br />
expected to compete for major honours,<br />
all broke their transfer records.<br />
Next season marks the beginning of a<br />
new Premier League broadcast deal<br />
worth nearly £3bn a season and at least<br />
£99m to every club.<br />
By half time of the second live match<br />
broadcast in the UK next season, more<br />
television revenue will have been<br />
generated than by all top-flight matches<br />
during the 1990/91 campaign.<br />
That will give Premier League clubs an<br />
even greater advantage over European<br />
rivals in the transfer market this<br />
summer, with collective operating<br />
profits potentially rising as high as £1bn<br />
next year, although English clubs could<br />
be asked to pay a premium.<br />
“There’ll still be an elite few European<br />
clubs — Barcelona, Real Madrid, Paris<br />
Saint-Germain and Bayern Munich —<br />
who will be able to compete with the<br />
Premier League clubs for the very top<br />
talent,” said Bull. “But the difference is<br />
now all of the Premier League clubs can<br />
compete for the best talent in Europe,<br />
not just a handful.<br />
“If an English club is looking at a<br />
player that will no doubt drive the price<br />
up because the selling club will know<br />
they can spend big.”<br />
FOOTBALL<br />
TV riches tipped to bring ticket relief<br />
JOE HALL<br />
@joehallwords<br />
MATCH-GOING football fans could<br />
benefit from the Premier League’s<br />
new £8bn broadcast deal next season<br />
as clubs freeze ticket prices to keep<br />
grounds full and broadcasters happy.<br />
Deloitte’s Annual Review of<br />
Football Finance found that<br />
matchday revenue of £584m<br />
accounted for just 18 per cent of the<br />
Premier League’s total £3.3bn<br />
revenue in the 2014/15 season -- its<br />
smallest proportion in the<br />
competition’s 24-year history.<br />
With the clubs’ accounts being<br />
primarily boosted by commercial<br />
and broadcast income — set to swell<br />
further next season with the start of<br />
a new deal worth at least £99m to<br />
clubs per year — they are expected<br />
to place less emphasis on extracting<br />
money from ticket sales.<br />
“Matchday revenue is becoming<br />
relatively less important in terms of<br />
the percentage against the total,”<br />
explains Deloitte Sports Business<br />
Group’s Andy Bull. “It’s now down<br />
below 20 per cent and we’d expect it<br />
go down to 15 or 14 per cent when<br />
the new deal comes in. What’s vital<br />
for the clubs and the league is that<br />
grounds remain full because the<br />
game is being broadcast as a great<br />
spectacle, it’s what the broadcasters<br />
want to see.<br />
“We’d expect to see any price<br />
increases to be low and freezes to be<br />
more common. Clubs are aware<br />
they need to keep ticket prices at a<br />
price where grounds remain full.”<br />
London top of the league for revenue<br />
JOE HALL<br />
@joehallwords<br />
LONDON clubs accounted for<br />
nearly a third of all revenue raised<br />
in English football in the 2014/15<br />
season, despite making up less<br />
than 16 per cent of teams.<br />
The capital’s 15 clubs in the<br />
Premier League and Football<br />
League had a combined revenue of<br />
£1.3bn, contributing 31 per cent of<br />
the £4.1bn revenue generated by all<br />
92 teams across England’s top four<br />
divisions. Deloitte’s Annual Review<br />
of Football Finance found that<br />
London clubs employed 3,500 fulltime<br />
members of staff across the<br />
season and attracted over seven<br />
million attendees to games.<br />
All six Premier League clubs that<br />
season – Arsenal, Chelsea,<br />
Tottenham, West Ham, Crystal<br />
Palace and Queens Park Rangers —<br />
enjoyed a stadium utilisation of 97<br />
per cent, pipping the competition<br />
average of 96 per cent.<br />
Arsenal were London’s most<br />
financially well off club with<br />
revenue of £331.3m and operating<br />
profits £51m, despite notching the<br />
Premier League’s biggest wage bill<br />
increase of £26m.<br />
OLYMPIC GAMES<br />
Economists predict a Great<br />
Britain medal slump in Rio<br />
JOE HALL<br />
@joehallwords<br />
GREAT Britain’s net medal haul is<br />
set to plummet more than any<br />
other nation at this year’s Olympic<br />
Games in Rio de Janeiro, according<br />
to financial services giant<br />
PricewaterhouseCoopers (PwC).<br />
Team GB’s medal total is<br />
predicted to take a bigger hit than<br />
anyone else, with PwC forecasting<br />
the loss of home advantage being<br />
the main contributing factor to a<br />
shedding of 13 medals from their<br />
tally of 65 at London 2012.<br />
That would still keep Team GB in<br />
fourth spot, the position they<br />
finished after a successful games<br />
four years ago, but with just 52<br />
medals.<br />
PwC economists have turned<br />
their attentions to sport to<br />
predict performance at this<br />
summer’s Games and found that<br />
the number of medals won at<br />
previous Games can be<br />
explained by three<br />
statistically significant<br />
factors; the size of a<br />
country’s GDP, their<br />
performance in<br />
the previous two<br />
Games and whether or not a<br />
country is the host nation.<br />
The US, China and Russia are<br />
therefore predicted to once again<br />
occupy first, second and third<br />
position on the 2016 medal table,<br />
while hosts Brazil can anticipate<br />
winning eight more medals than<br />
they did last time, boosting their<br />
position from 15th to 11th.<br />
“David can sometimes beat<br />
Goliath in the Olympic arena,<br />
although superpowers like the US<br />
and China continue to dominate<br />
the top of the medals table,” said<br />
PwC chief economist John<br />
Hawksworth.<br />
“Now it is no longer<br />
the host country,<br />
Great Britain may<br />
find it difficult to<br />
match its exceptional<br />
performance in<br />
London 2012 — though<br />
our model suggests it<br />
should remain as high as<br />
fourth in Rio with over<br />
50 medals in total.”<br />
PwC predict GB’s<br />
medal haul will<br />
plummet
24 SPORT THURSDAY 2 JUNE 2016<br />
SPORT<br />
FOOTBALL<br />
Hodgson: Attack is<br />
CITYAM.COM<br />
MONEY, MONEY, MONEY Deloitte’s<br />
Annual Review of Football Finance suggests<br />
a billion pound transfer window PAGES 22&23<br />
FOOTBALL<br />
I wanted to kill<br />
Irish players,<br />
bristles Keane<br />
best defence<br />
ROSS MCLEAN<br />
@rossmcleanRMAC<br />
ENGLAND boss Roy Hodgson admits<br />
the composition of his squad is a clear<br />
indication that the Three Lions will go<br />
on the attack at the European<br />
Championship in France, which starts<br />
next week.<br />
Hodgson has selected five strikers in<br />
his 23-man party for the tournament,<br />
including teenage Manchester United<br />
frontman Marcus Rashford, who made<br />
the cut ahead of Leicester’s Premier<br />
League title-winning midfielder Danny<br />
Drinkwater.<br />
There are only three recognised<br />
centre-halves amongst the squad –<br />
Chris Smalling, Gary Cahill and John<br />
Stones – although Hodgson, often<br />
portrayed as a conservative tactician,<br />
does not believe his side will be<br />
exposed defensively.<br />
“We’ve got balance,” said Hodgson.<br />
“If anything, the balance does tilt<br />
towards attackers and offensive<br />
midfielders. That was a conscious<br />
decision. That’s where we think our<br />
strength lies.<br />
“We believe defending is very much a<br />
team job and we can’t just rely on a<br />
back four and a goalkeeper. We need<br />
great mobility and great running<br />
power to defend in that way. With this<br />
squad they’ve got that ability.<br />
“Often in a tournament the players<br />
that get injured or suffer a lack of form<br />
are the guys at the cutting edge, the<br />
guys who make the difference or score<br />
the goals.”<br />
Hodgson has been widely criticised<br />
for axing Drinkwater. Former England<br />
captain Alan Shearer accused Hodgson<br />
of selecting the likes Jordan Henderson<br />
and Jack Wilshere on “reputation rather<br />
than form”.<br />
“It was a very difficult decision,”<br />
added Hodgson. “For a long period of<br />
time, if anything, we haven’t had an<br />
enormous amount of choice.<br />
Sometimes there have been<br />
comments that we don’t have enough<br />
to pick from.<br />
“Suddenly, we do have a lot of<br />
players to pick from and it was a very<br />
tough decision for me.<br />
“It simply became a question of do I<br />
take the extra attacker or midfielder?<br />
That’s how Rashford came about. The<br />
front players, apart from Harry Kane –<br />
we wouldn’t want to move him from a<br />
central position – can do the job wide<br />
in midfield.<br />
“I’m happy I’ve got so many good<br />
players to put on the field.”<br />
England face Portugal at Wembley<br />
this evening in their final warm-up<br />
clash before the start of the<br />
tournament. While Hodgson has<br />
promised a strong side, he stopped<br />
short of saying his starting XI tonight<br />
will be the one which lines up against<br />
Russia in Marseille on 11 June.<br />
“I don’t need to try anything out any<br />
more but I’m not prepared to say the XI<br />
who start will start against Russia,”<br />
said the 68-year-old. “I don’t want to<br />
commit myself to a team agains Russia<br />
in 10 days’ time.<br />
“If you take out Marcus Rashford, who<br />
is a new boy on the block, there is<br />
nobody’s game I don’t know extremely<br />
well. I know the players and I know what<br />
they can be.”<br />
ROSS MCLEAN<br />
@rossmcleanRMAC<br />
REPUBLIC of Ireland assistant<br />
manager Roy Keane was at his<br />
uncompromising best yesterday when<br />
he claimed that he wanted to “kill” a<br />
number of his side’s players after<br />
their defeat to Belarus on Tuesday.<br />
Their 2-1 reverse in Cork was only<br />
the second defeat Martin O’Neill’s<br />
outfit have suffered in 14 matches,<br />
although it was hardly the ideal sign<br />
off prior to Euro 2016. Ireland play<br />
Sweden in their opening match of<br />
the tournament on 13 June.<br />
“I wanted to kill some of them,”<br />
said Keane. “They should count their<br />
blessings they’ve managed to get on<br />
the flight. It’s a reality check for one<br />
or two players who thought they<br />
were good players.”<br />
No-nonsense former Manchester<br />
United skipper Keane also laid bare<br />
the level of commitment he expects<br />
from players, claiming there is<br />
something amiss if they’re<br />
completely injury-free.<br />
“I’m worried when players aren’t<br />
carrying knocks,” he added. “You’re<br />
supposed to carry knocks because<br />
you’re supposed to tackle people,<br />
you’re supposed to hit people at pace<br />
and hit them hard.<br />
“It’s part of the game. It’s not<br />
chess we’re playing. Every time you<br />
get a knock, you don’t have to take<br />
painkillers, have two days’ recovery<br />
or sit in the pool for an hour and a<br />
half. It’s a man’s game we’re playing,<br />
believe it or not.”<br />
There was also a stark warning<br />
from Wales boss Chris Coleman,<br />
whose side face England in Lens on<br />
16 June but have failed to record<br />
victory since October when they beat<br />
minnows Andorra to seal<br />
qualification to the tournament.<br />
“Since we qualified, if you look at<br />
our results, it is nothing to shout<br />
about,” he said. “I’m not making any<br />
excuses. Sometimes with success<br />
comes a little bit of complacency.<br />
Subconsciously sometimes.”<br />
BOXING<br />
Khan keen to represent<br />
Pakistan at Olympics<br />
TENNIS<br />
Murray intent on breaking French<br />
Open duck and landing first title<br />
ROSS MCLEAN<br />
@rossmcleanRMAC<br />
BRITISH-BORN former world superlightweight<br />
champion Amir Khan has<br />
opened the door to representing<br />
Pakistan at this summer’s Olympics<br />
after boxing bosses announced that<br />
professional fighters will be eligible<br />
to fight at the Games.<br />
The International Boxing<br />
Association yesterday confirmed the<br />
rule change, which previously<br />
stipulated only amateur boxers could<br />
compete, following an extraordinary<br />
congress at Lausanne in Switzerland.<br />
“It’s a decision I welcome,” said<br />
Khan, who won silver for Great<br />
Britain at the 2004 Olympics.<br />
“If I am permitted as per rules and<br />
from my promoter then I would love<br />
to compete for Pakistan. I want to<br />
serve Pakistan.”<br />
The British Boxing Board of<br />
Control have issued a statement<br />
condemning the move. It read: “It’s<br />
against the spirit of the Olympics,<br />
disrespectful to many GB amateur<br />
boxers and ultimately dangerous.”<br />
Former world champion Carl<br />
Frampton of Northern Ireland was<br />
one of a number of eminent fighters<br />
to express their opposition.<br />
He said: “Professional boxers being<br />
allowed to fight in the Olympics is<br />
ridiculous. They’re two different<br />
sports. It’s like a badminton player<br />
playing tennis.”<br />
ROSS MCLEAN<br />
@rossmcleanRMAC<br />
BRITAIN’S Andy Murray believes a<br />
maiden French Open title is within<br />
reach after dispatching Richard<br />
Gasquet to reach the 19th grand slam<br />
semi-final of his career yesterday.<br />
World No2 Murray battled back<br />
from a set and 3-1 down in the<br />
second-set tie-break to prevail 5-7, 7-6<br />
(7/3), 6-0, 6-2 and set-up a last-four<br />
tussle with Switzerland’s Stan<br />
Wawrinka.<br />
The 29-year-old, who entered the<br />
tournament having defeated top<br />
seed Novak Djokovic in Rome, has<br />
never won a set against Wawrinka on<br />
clay. Murray’s renaissance on clay in<br />
recent years, however, has<br />
left him confident of<br />
lifting the Coupe des<br />
Mousquetaires.<br />
“Last year was<br />
similar. I came in not<br />
having lost on the clay<br />
and played some<br />
really good<br />
tennis,” said<br />
Murray. “I<br />
believe I can win<br />
the event.<br />
Whether I do or<br />
not, we’ll have to<br />
wait and see,<br />
“But I believe it’s<br />
possible and I’m<br />
only a couple of<br />
matches away now. I’ll just give<br />
everything I’ve got the next few<br />
days.”<br />
World No1s Djokovic and Serena<br />
Williams both advanced to the<br />
quarter-finals after<br />
prevailing from their<br />
respective fourth-round<br />
rain-affected clashes.<br />
Williams dispatched<br />
Ukraine’s Elina<br />
Svitolina 6-1, 6-1, while<br />
Djokovic beat Roberto<br />
Bautista Agut of Spain<br />
3-6, 6-4, 6-1, 7-5.<br />
Murray is yet to win a set<br />
against Wawrinka on clay