OF A BREXIT SHOCKWAVE

BUSINESS WITH PERSONALITY 

SOCCER’S SUMMER SPLURGE 

TOP ENGLISH CLUBS TO SPEND 

£1bn ON TRANSFERS P22-23 

WAR TRUMPS PEACE 

DOES DONALD POSE 

A THREAT TO 

THE WORLD? P16 

THURSDAY 2 JUNE 2016 ISSUE 2,638 CITYAM.COM 

FREE 

OECD WARNS 

OF A BREXIT 

SHOCKWAVE 

END OF THE ROAD IN 

SIGHT FOR BHS SALE 

JAKE CORDELL 

@JakeCordell 

THE ORGANISATION for Economic Cooperation 

and Development (OECD), 

the heavyweight international think 

tank, threw itself headlong into the EU 

referendum debate yesterday, warning 

Brexit could trigger chaos in global 

financial markets and inflict “a large 

negative shock” on the UK. 

In its latest global economic outlook, 

the OECD called the EU referendum 

“the most immediate” risk facing the 

world economy and slashed its growth 

forecast for the UK economy. It added: 

“A decision to exit would result in considerable 

additional volatility in financial 

markets and an extended period of 

uncertainty… with substantial negative 

consequences for the UK, the EU and 

the rest of the world.” 

The warning, the latest high-level 

international intervention in the UK’s 

referendum, provoked a response from 

Leave campaigners who criticised the 

OECD as an EU-funded body that previously 

wanted the UK to join the euro 

and should not be listened to. “This is a 

flawed report that makes assumptions 

which have been roundly dismissed by 

senior economists,” said Vote Leave’s 

John Longworth, the for mer head of 

the British Chambers of Commerce. 

The OECD report predicts that Brexit 

EU REFERENDUM 

would cause the UK economy to be 

three per cent smaller than it 

otherwise would have been by 2020. 

“Brexit would lead to economic 

uncertainty and hinder trade growth, 

with global effects being even stronger 

if the British withdrawal from the EU 

triggers volatility in financial markets,” 

it said. 

Although the think tank forecasts 

that a fall in the value of the pound 

and deregulation could both help 

offset some of the effects of a Leave vote 

on domestic businesses and households, 

it added: “The overall net effect 

on living standards would be strongly 

negative.” 

Chancellor George Osborne said the 

intervention was “another wake up call 

of the grim consequences of leaving 

the EU and the single market.” 

In what Labour shadow chancellor 

John McDonnell termed evidence of 

the “absolute failure” of the 

Conservatives’ economic policy, the 

body also issued broader warnings 

about the state of the UK economy. It 

pointed to the fact that “productivity 

has been exceptionally weak” and the 

UK has become susceptible to “increasing 

vulnerabilities” such as a record 

high current account deficit. 

Referendum uncertainty prompted 

the OECD, led by secretary general 

Angel Gurria, to cut its forecast for UK 

growth this year from 2.1 per cent to 

1.7 per cent. 

£REFERENDUM REPORTS, P4-5 

TRACEY BOLES 

THE FUTURES of BHS and thousands 

of its staff are hanging in the balance 

as administrators and the only 

known remaining bidder struggle to 

agree terms. 

BHS administrator Duff & Phelps held 

further discussions with a buyer 

backed by Richess Group yesterday, 

with some execs hopeful that a deal 

could be announced today. 

£ CONTINUED ON P2 

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 

CITYAM.COM 

THE CITY VIEW 

Even Labour’s centrists 

are too far to the Left 

SUCH is the state of Labour’s front bench these days that 

deputy leader Tom Watson is considered markedly centrist, a 

throwback to an era when the top positions were not 

occupied by unreformed Marxists. But last night Watson 

reminded us that even the party’s so-called moderates have an 

instinct for blunt interventionism, and policies that are populist, 

childish and would ultimately prove counterproductive. 

Responding to news that some banks and hedge funds have 

commissioned private exit polls in an attempt to understand the 

likely result of this month’s EU referendum, Watson reacted in the 

manner of confused anti-capitalists the world over – he called for it 

to be banned. “I hope the government will put measures in place to 

prohibit this avaricious plan by financiers to benefit from 

information that belongs to every voter,” Watson said. 

His demand – that individuals and organisations should not be 

allowed to commission private 

surveys – is predictably 

illiberal, but also makes no 

sense. Just a few moments 

after insisting that hedge 

funds “stand to make many 

millions of pounds” from their 

polls, Watson describes polls as “often unreliable”. 

Exit polls are especially unreliable during elections with no recent 

and direct precedents. This is why, at this point in time, they are 

not expected to be published on the evening of 23 June. Hedge 

funds, by nature, are comfortable with risk, and thus some think it 

is worthwhile to invest heavily in polling research in a bid to jump 

the gun and get a head-start on the rest of the market. But be under 

no illusion – this is a considerable gamble, resting on an expensive 

outlay. If it was as simple as Watson suggests for “financiers… to 

make millions of pounds”, then all the major banks and fund 

managers throughout the world would be getting in on the game. 

Daring financial market punts on political outcomes are nothing 

new (and could be observed during the recent Greek crises, for 

example); as a niche pursuit, they are part and parcel of a healthy, 

free market in which prices reflect various degrees of information 

and interpretation. 

The run-up to the referendum has seen many frivolous claims 

emanating from both sides of the debate, but Watson’s complaint 

is perhaps the silliest of them all. 

Follow us on Twitter @cityam 

His demand is 

illiberal – but also 

makes no sense 

MORE than 400 Roman writing tablets were discovered during the 2012 excavation of Bloomberg’s new European headquarters 

in the heart of the City, 87 of which have now been deciphered. Among the collection is the first (ever) mention of London in 

history and, fittingly, the first financial document in Britain. They are also the earliest hand-written documents found in Britain. 

Tata set to reveal 

UK bids shortlist 

BILLY BAMBROUGH 

AND MARK SANDS 

@BillyBambrough & @MkSands 

TATA Steel is expected to release a 

shortlist of bidders for its UK business 

before the end of the week, City A.M. 

understands. 

The three companies tipped to be 

named are commodities trader Liberty 

House, management buyout team 

Excalibur, and Leeds-based private 

equity fund Endless. 

The Indian steel conglomerate has 

been reviewing up to seven bids since 

the deadline for submissions passed 

on 23 May. 

“We aren’t surprised by the names 

[that are set to be shortlisted],” said a 

spokesperson for steelworkers union 

Community. “These businesses have 

long looked like the front-runners, 

and those are probably the names we 

would pick out.” 

ROME IN THE CITY UK’s oldest 

written document dug up at 

Bloomberg’s new London HQ – 

and, yes, it’s a financial record 

It is understood Tata is now working 

towards 24 June to name a buyer. 

The government has been consulting 

with both Tata Steel and prospective 

bidders over recent months. 

There has recently been a flurry of 

reports that Tata will not go through 

with a sale of the business and will 

hold on to its UK assets, with the 

government taking a minority equity 

stake of up to 25 per cent. Tata insists 

the sale process is moving forward. 

The four firms expected to miss out 

on the shortlist are turnaround specialist 

Greybull Capital, Indian steel 

producer JSW, Chinese steelmaking 

giant Hebei, and US billionaire 

investor Wilbur Ross. 

Yesterday, Greybull completed its £1 

purchase of Tata’s Scunthorpe steelworks, 

re-branding it as British Steel – 

a name not seen since 1999. The 

Scunthorpe works made a loss of 

around £100m last year. 

Portuguese are 

only game in 

town for BHS 

CONTINUED FROM P1 

Sources close to the situation 

suggested that the prospects of a 

deal remained “in the balance”, 

according to Sky News, with proof 

of Richess’ funding still to 

materialise. 

They also cautioned that many 

jobs could still be at risk even if an 

agreement to sell the company 

could be reached. People close to 

BHS have suggest ed that if a deal 

cannot be struck to acquire BHS out 

of administration by the end of the 

week,it is likely to be handed to 

liquidators, a move that would 

threaten more than 10,000 jobs. 

Richess’ directors include Greg 

Tufnell, a former Mothercare exec - 

utive and brother of ex-England 

cricketer Phil. Its bid is understood 

to be backed by a weal thy Portu gu - 

ese family, whose iden tity remains 

shrouded in mystery. “[They] are the 

only game in town,” one insider said. 

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL 

EX-BARCLAYS EMPLOYEES 

TELL JURY OF HUMILIATION 

Five former Barclays employees on trial 

for allegedly conspiring to rig interest 

rates have taken the stand in their own 

defence, with several telling the jury of 

the stress and pressure they felt while 

working at the UK bank. Jonathan 

Mathew described how his boss used to 

call him a “deaf git” and “humiliate” 

him by “whacking” him on the back of 

the head with a 12-inch baseball bat. 

EX-ANGLO IRISH EXECS 

GUILTY OF €7.2BN FRAUD 

Two former execs at the ill-fated Anglo 

Irish Bank have been convicted of 

conspiracy to mislead investors after 

the longest criminal trial in Irish legal 

WHAT THE 

OTHER 

PAPERS SAY 

THIS 

MORNING 

history. John Bowe and Willie McAteer 

were found guilty in Dublin on a charge 

of arranging a €7.2bn (£5.6bn) financial 

transaction that disguised the state of 

health of Anglo before it collapsed. 

US FED A HACKING VICTIM 

Spies and hackers broke into the 

computer system of the US central bank 

on multiple occasions between 2011 

and 2015, resulting in more than 50 

cyberbreaches, Fed records disclose. 

The Fed’s cybersecurity experts 

identified 310 incident reports during 

the four-year period, and classified 140 

as hacking attempts and four as 

espionage. 

ARMANI EKES OUT SMALL 

PROFIT RISE 

The upmarket fashion retailer had a 

small rise in operating profit as growth 

in the wider luxury sector continues to 

slow. Giorgio Armani’s operating profits 

rose by one per cent to €513m last year. 

RYANAIR ATTACKED OVER 

OSLO BASE CLOSURE 

Ryanair has come under attack for 

deciding to close its base at Oslo Rygge 

airport, 66 kilometres from the 

Norwegian capital, a move that is 

expected to result in the loss of 1,000 

jobs – after Norway introduced a new 

tax on air passengers. 

MORTGAGE RATES DROP ON 

HINTS OF BANK CUT 

Home buyers in April paid the lowest 

interest rates ever on their mortgages 

amid suggestions the Bank of England 

might cut rates. In April, the average 

borrower paid just 2.41 per cent on a 

new mortgage, down from 2.49 per cent 

in March and 2.64 per cent in April 2015. 

FITBIT NAMES FIRST WOMEN 

TO BOARD 

Fitbit named its first women to its 

board – Williams-Sonoma’s Laura Alber 

and Glenda Flanagan of Whole Foods – 

part of a recent movement by tech 

companies to hire more women as top 

decision makers. 

NEW CARS FOUND TO HAVE 

FAULTY TAKATA AIR BAGS 

At least four car makers confirmed 

equipping new vehicles with defective 

Takata air bags that eventually will need 

to be replaced. Toyota, Fiat Chrysler 

Automobiles, Volkswagen and 

Mitsubishi have all confirmed equipping 

some new vehicles with rupture-prone 

Takata air bags.

CITYAM.COM 

THURSDAY 2 JUNE 2016 

NEWS 

03 

Deutsche Boerse 

talks up LSE deal 

as cuts revealed 

WILLIAM TURVILL 

@wturvill 

A SENIOR Deutsche Boerse exec has 

described the company’s impending 

merger with the London Stock 

Exchange as “the last chance for 

Europe”, after the two giants revealed 

details of their proposed £21bn tie-up. 

Jeffrey Tessler told City A.M. that the 

deal would create a “global powerhouse” 

in Europe with the power to 

stimulate the continent’s struggling 

levels of economic growth. 

He was speaking after the stock 

exchanges yesterday revealed their 

merger could lead to 1,250 job losses 

as they target extra annual savings of 

€250m (£194m). These are in addition 

to previous annual savings totalling 

€450m. 

“Europe’s at a crossroads right now 

in a number of different respects, and 

certainly the one in front of us is 23 

June, Brexit. But before Brexit everything 

was not fine in Europe,” Tessler 

said, in an interview to be published in 

full next week. 

“To [stimulate growth in Europe], 

you need a capital market that’s 

vibrant. And at the base of a capital 

market would be a capital markets 

infrastructure. It’s hard to have a capital 

market without a capital markets 

infrastructure. And so what we have 

today are a number of good players in 

the market. But when I think about 

the future – and this is what gets me 

kind of excited – the idea of Deutsche 

Boerse and LSE becoming a global 

powerhouse, located in Europe, is 

exactly what Europe needs right now 

to stimulate growth.” 

He added: “If it doesn’t happen, and 

let’s say the infrastructure is owned by 

a US player, they don’t have the same 

interest in developing [it]. We have a 

home-grown interest in developing 

[it].” 

In the event that it does fail, though, 

Tessler echoed the words of Deutsche 

Boerse chief executive Carsten 

Kengeter, who said the company will 

be looking to make deals elsewhere. 

Tessler said: “Yes, Deutsche Boerse 

could go somewhere else and will be 

successful. But this is to me the last 

chance for Europe.” 

Shareholders will be asked to 

approve the merger in July. 

Uber raises $3.5bn from Saudi 

Arabia’s sovereign wealth fund 

JOSH MARTIN 

@JoshMartinNZ 

CONTROVERSIAL taxi app Uber has 

raised $3.5bn (£2.43bn) from Saudi 

Arabia’s sovereign wealth fund 

valuing the company at $62.5bn. 

The Saudi Arabian Public 

Investment Fund will now own 

approximately five per cent of Uber 

and the fund’s managing director 

Yasir al-Rumayyan will join the 

company’s board. Other board mem - 

bers includes Huffington Post 

co-founder Arianna Huffington. 

Uber co-founder and chief 

executive officer Travis Kalanick 

called the investment a “vote of 

confidence in our business” 

and is set to invest 

$250m in the 

Middle East 

to expand 

its 

operations in the region. 

The deal puts Uber’s total balance 

sheet, including cash and debt, at 

more than $11bn. In the first 

quarter, Uber boasted 395,000 active 

riders across the region, a 

five-fold jump from the 

first quarter of 

2015. 

There was no word 

on surge pricing in 

the Saudi stake 

PIRC IRKED Shareholder group pushes to 

shrink Sir Martin Sorrell’s WPP pay packet 

AN INFLUENTIAL 

shareholder 

group has called 

on investors to 

reject the £70m 

pay packet of 

WPP chief 

executive Sir 

Martin Sorrell. 

Shareholders 

have been 

advised to oppose 

the pay of the 

highest paid boss 

of any FTSE firm, 

dubbed 

“excessive”, by 

the investor 

advisory body 

Pirc yesterday. 

Channel 4 invests in firm behind 

Bear Grylls’ YouTube channel 

JOSH MARTIN 

@JoshMartinNZ 

IN A BID to ramp up its digital 

innovation strategy, Channel 4 has 

taken a minority stake in multimedia 

content company Barcroft Media 

Group for an undisclosed sum. 

The deal was Channel 4’s first 

investment as part of its Commercial 

Growth Fund, which was launched 

last year to help “high growth 

potential companies to build their 

business”. Barcroft’s core businesses 

include Barcroft TV, which launched 

a YouTube channel for popular 

Discovery channel show Bear Grylls: 

Man vs. Everest, and Barcroft Media, 

a content agency which licenses and 

distributes text, photography and TV 

documentaries to broadcasters in 

over 50 countries. 

Sam Barcroft, chief executive of 

Barcroft Media Group, told City A.M.: 

“Channel 4’s expertise will help us 

accelerate our business growth and 

fulfil ambitions of becoming a big 

player in the entertainment space.”


EU REFERENDUM 

Successful migration clampdown 

could mean higher retirement age 

CITYAM.COM 

JAKE CORDELL 

@JakeCordell 

HITTING the government’s net 

migration target would punch an 

£8bn hole in the public finances, and 

could lead to a smaller state pension 

or higher taxes. 

New analysis, out today, from the 

National Institute for Economic and 

Social Research found that reducing 

immigration to the “tens of 

thousands” would hit tax revenues 

by £3bn a year by 2032 and by at 

least £8bn a year by the middle of 

the century. 

To make up the shortfall, the 

government could raise the state 

pension age from 68 to 69, cut the 

annual pension allowance by £300 a 

year, or raise the rate of employees’ 

national insurance from 12 per cent 

to 13.5 per cent. 

The Institute and Faculty of 

Actuaries, which commissioned the 

report, said that the potential 

shortfall could be offset if the fewer 

number of arrivals were higherskilled 

and had higher wages, and 

thus contributed more in tax. 

The report comes just one day after 

Leave campaigners presented their 

vision for an Australian-style pointsbased 

immigration system, which 

they believe would work for the UK 

economy and the wider public. 

HOW 

THE 

FUTURE 

WILL 

TECH- 

NOLOGY 

DISRUPT 

YOUR 

BUSINESS 

#howthefuture 

Find out now 

imperial.ac.uk 

/how-the-future 

Imperial means 

Intelligent Business 

Telford’s Jon Di-Stefano is so confident, he’d buy a plot of land in London on 22 June 

Brexit wouldn’t 

stop us building 

says developer 

HELEN CAHILL 

@HelCahill 

THE CHIEF executive of a top London 

property developer is so confident 

about the resilience of the housing 

market that he’d buy a plot the day 

before the EU referendum. 

Speaking to City A.M. on a day of 

strong results for the company, Jon 

Di-Stefano, chief executive of Telford 

Homes, said: “Even if we vote out, people 

aren’t going to disappear from 

London. We’re still going to need more 

homes. 

“We would go out and buy a site on 

22 June, because, regardless of the 

answer [from the EU referendum], we 

are confident we need those homes in 

London. We have to build.” 

Di-Stefano said that Telford Homes’ 

strategy is to focus on the non-prime 

areas of London and to provide homes 

at the city’s average house price rather 

than building luxury properties. 

On luxury homes, he said: “It has 

gone too far. The reason supply is 

going down in prime areas is because 

people are nervous that they won’t be 

able to sell. We’re focussing on places 

like Tower Hamlets, Newham, 

Hackney, Greenwich and Lewisham. 

We are quite relaxed about developing 

in any of those areas and there is no 

one area we are looking at, because 

there is plenty of opportunity. 

“As long as our homes are affordable 

and they’re near good transport links - 

and most places are in London – then 

the demand is out there.” 

Telford Homes yesterday announced 

strong revenue growth in its final 

results for the year ending 31 March, 

with pre-tax profits at the company 

exceeding original market expectations. 

The firm’s revenue was up 42 per 

cent year-on-year, from £173.5m in 

2015 to £245.6m this year. Pre-tax profits 

were up by 28 per cent, to £32.2m, 

compared to £25.1m in 2015. 

Pre-tax profit is forecast to grow in 

the next three years and to exceed 

£50m in the year ending 31 March 

2019. 

The company’s total dividend for the 

year was 14.2p, compared with 11.1p 

last year. 

UNREGULATED 

Subscribe to City A.M.'s podcast: uncensored 

insight into the issues driving the City 

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CITYAM.COM 

Sterling smashed as 

polls point to close 

battle at ballot box 

JAKE CORDELL AND 

JAMES NICKERSON 

@JakeCordell & @nickersonjw 

STERLING has crashed down from a 

one-month high this week after a 

smattering of opinion polls showed 

support for the Leave camp has 

surged. 

The pound was trading at $1.441 last 

night, down more than three cents on 

the highs of $1.473 reached last week. 

Traders said volatility was only going 

to increase during the final three 

weeks of the referendum campaign. 

What was thought to be a shock poll 

from ICM earlier this week, which 

gave the Leave side a four-point lead 

over Remain, was followed yesterday 

by a YouGov survey which put the two 

sides level on 41 per cent. 

Bookmakers slashed their odds on 

the prospect of Britain voting to leave 

the EU in response to the polls. 

Leave is now a best price of 11/4, 

down from 4/1 a few days ago. 

“Recent polls have persuaded punters 

to hedge their bets back in the 

Leave camp. We’ve trimmed the odds 

of Brexit,” said Betway’s Alan Alger. 

Sporting Index said the polls had 

“triggered a frenzy of activity on our 

Brexit markets, with the vast majority… 

selling the Remain camp”. 

Jameel Ahmad, chief market analyst 

at FXTM, said “investors were 

generally beginning to underprice the 

possibility of a UK exit, as if it was a 

foregone conclusion that the UK 

would automatically vote to remain in 

the EU. 

“All of the risks for the pound are 

still pointing strongly to further weakness,” 

he added. 

Jeremy Corbyn believes the Tories will attack workers’ rights if there’s a Brexit vote 


EU REFERENDUM 

NEWS 

Corbyn raises 

Tory Brexit 

fears on rights 

05 

MARK SANDS 

@mksands 

LABOUR leader Jeremy Corbyn will 

today warn that Brexit would allow 

the Conservatives a strong hand in 

reducing workers’ rights. 

Speaking at the Institute of 

Engineering Technology, Corbyn will 

say: “Everything they have done as a 

government so far means we could 

not rely on them to protect the 

workplace rights that millions rely 

on. 

“A Tory Brexit negotiation would 

be a disaster for the majority of 

people in Britain.” 

He will add: “The threat to the 

British people is not the European 

Union – it is a Conservative 

government here in Britain.” 

It comes two weeks after Labour 

shadow chancellor John McDonnell 

warned against a “Tory Brexit” that 

he argued would bring further 

austerity measures to the UK. 

Investment drop could 

have winners and losers 

JAKE CORDELL 

@JakeCordell 

TOP UK and European businesses 

could see investment dry up if the 

UK votes to leave the European 

Union on 23 June, according to 

Standard and Poor’s (S&P). 

The ratings agency warned 

Brexit would “paralyse capital 

investment”, leave companies 

across the continent struggling to 

secure funds for “years to come” 

and “erode the competitive 

position” of a number of Europe’s 

biggest firms. 

However, many industries would 

be insulated from the drying-up of 

investment and S&P said Brexit 

could even be a boon for the UK’s 

burgeoning technology sector and 

fintech players. Analysts said Brexit 

could help challenger businesses 

steal a march on their bigger, more 

cumbersome rivals. 

“For technology companies… we 

see limited Brexit impact… With 

increased turbulence, we think 

nimble technology-based players 

may be better placed to capitalise 

than the larger traditional financial 

sector players, which may also be 

preoccupied with Brexit fallout in 

their core businesses.” 

In March London tech bosses 

came out against Brexit due to what 

some said was a strong reliance on 

foreign staff in technology startups. 

The retail, media, telecoms, 

consumer goods and pharma - 

ceutical industries could also 

emerge relatively unscathed in 

terms of lost investment. 

By contrast, industries that rely 

on big injections of capital, such as 

real estate, construction, aerospace, 

travel, and oil and gas would be hit 

hard. Investment into these sectors 

would falter while the UK’s 

relationship with the rest of the EU 

remains unclear and probably after 

depending on the terms of exit. 

There would “likely [be] a 

reduction in both domestic and 

foreign investment… potentially 

running to many years,” S&P said. 

S&P also warned that most 

businesses UP AND would DOWN suffer if the wider 

UK economy takes a downward turn 

after Would a vote be hit to leave. by Brexit 

Real estate 

Construction 

Aerospace and defence 

The capital goods 

and car industries, 

Chemicals 

Metals and mining 

Infrastructure 

Oil exploration and 

production companies 

Insulated from a potential hit 

Media and business 

services companies 

Technology 

Forest products 

Packaging 

European business chiefs call for the UK to vote 

to stay in the EU ahead of 23 June referendum 


@BillyBambrough 

BUSINESS leaders from across 

Europe have called for UK citizens 

to vote to remain in the Union. 

BusinessEurope issued a 

statement from its annual summit 

yesterday, saying its members 

“firmly wish” to see the UK stay an 

“active and positive” EU member. 

“The UK has played a crucial role 

over the past 40 years in shaping 

the development of Europe with 

trade and the single market at its 

core,” the group said. “A vote to 

leave the EU will only heighten the 

uncertainty around current and 

future investments as some tough 

negotiations will then begin.” 

Paul Drechsler, president of the 

Confederation of British Industry, 

said: “Our allies across 33 other 

European countries who speak for 

millions of firms of all sizes want 

to see us build on our decades-long 

partnership.” 

The UK goes to the polls on 23 

June to decide its future in the 

EU.


CITYAM.COM 

Bayer chief executive: Monsanto 

pursuit is a marathon not a sprint 


@wturvill 

THE CHIEF executive of Bayer has 

said its attempted takeover of US 

genetically modified seeds company 

Monsanto will be a “marathon 

rather than a sprint”. 

The German drugs and chemicals 

giant confirmed it had made a 

$62bn (£42bn) offer for Monsanto 

last Monday. 

It was rejected the next day, with 

Monsanto describing the offer as 

“incomplete and financially 

inadequate”, but both companies 

have indicated a willingness to reach 

a deal. 

While Bayer’s share price has 

remained at around its lowest level 

in three years, Monsanto’s is up by 

about 20 per cent to $112 since news 

of German interest broke in mid- 

May. 

Shareholders and analysts have 

told City A.M. they expect Bayer to 

improve its offer, which currently 

stands at $122 per share. 

But comments from Bayer chief 

executive Werner Baumann suggest 

a completed deal may still be a long 

way off. 

“Our planned takeover of 

Monsanto will be a marathon rather 

than a sprint,” he told German 

magazine WirtschaftsWoche in an 

interview to be published tomorrow. 

As well as highlighting the need to 

get past Monsanto’s “constructive 

refusal” on the offer, Baumann also 

spoke of the regulatory challenges 

the deal faces. 

Bayer and Monsanto are both targets for protesters and the merger is no different 

Goldman Sachs 

positive on M&A 

despite 2016 fall 


AND CAITLÍN MORRISON 

@wturvill & @citycait 

GOLDMAN Sachs has a positive outlook 

for mergers and acquisitions 

(M&A) activity in 2016 despite a slow 

start to the year. 

The bank’s president, Gary Cohn, yesterday 

said the conditions that led to a 

record year for M&A in 2015 still exist, 

as he talked up the business’s future 

prospects. 

“We still think in this lower growth 

environment with very cheap financing 

and low rates available that we’ll 

continue to see more of that merger 

activity over this part of the cycle,” 

Cohn told an investor conference in 

New York, Bloomberg reported. Cohn 

said cost savings “drive the M&A cycle 

last year”. He added: “Companies 

could merge themselves together and 

the rationale for the merger was to cut 

out expenses of duplicative costs.” 

Last year saw more than $5 trillion 

(£3.5 trillion) worth of deals, according 

to Dealogic statistics. The total for the 

first quarter of 2016 was $749.8bn, 

down 20 per cent year-on-year. 

Goldman Sachs also took a more positive 

view on M&A than most in April 

when chief executive Lloyd Blankfein 

wrote to shareholders, saying he saw 

“room to run” in the area in 2016. 

“By most measures, 2015 was a 

robust year for M&A,” he said. 

“However, volumes as a percentage of 

market capitalisation are still below 

prior-cycle peak levels. 

“We see this as a sign that there is 

still some room to run for M&A activity, 

particularly when equity markets 

show signs of sustained stabilisation.” 

Goldman Sachs was the highest 

ranking bank for M&A volume last 

year. According to Dealogic, it advised 

on more than $1.8 trillion in 

announced deals. 

Meanwhile, it was reported yesterday 

that Goldman Sachs has cut dozens of 

investment banking jobs across its 

global locations in recent weeks. 

Affected roles included managing 

directors, executive directors and vice 

presidents in the mergers and debt 

and equity capital markets teams, 

according to Bloomberg. 

The job cuts affected offices in 

London, New York and Hong Kong, 

among others, and were made on top 

of the five per cent staff reduction 

which sees Goldman get rid of employees 

deemed to be underperforming. 

Austin Reed all about it on Facebook and Twitter: staff learned of sackings on social 

Austin Reed staff slam retailer 

for learning of demise online 

HELEN CAHILL 

@HelCahill 

JUST as the heritage retailer Austin 

Reed shut its shops for good, City A.M. 

has learned that most of the staff 

found out they had lost their jobs via 

social media. 

An employee at one of the firm’s 

major London concessions told City 

A.M.: “About 80 per cent of the staff 

found out about it on social media. 

“The staff were absolutely in bits 

because they were given no 

warning.” 

A spokesman at Alix Partners, 

Austin Reed’s administrators, said: 

“Some of the rents were due on the 

buildings, but that’s not the reason 

we closed the stores – we owed every 

supplier a lot of money. 

“We addressed the managers 

yesterday morning, and there was a 

communication plan in place. But 

social media just blows everything 

out of the water.” 

Austin Reed began closing stores 

over the Bank Holiday weekend, 

when 28 stores were shut. Rents were 

due on some of the stores on 1 June. 

Tyrie raises 

concerns over 

crowdfunding 

MARK SANDS 

@MkSands 

TREASURY Select Committee chair 

Andrew Tyrie yesterday raised fears 

of insufficient regulation around 

crowdfunding. 

Writing to the chief executives of 

the Financial Conduct Authority 

(FCA) and the Prudential 

Regulatory Authority (PRA), Tyrie 

asked them to question whether 

they are paying enough attention to 

the risks associated with the 

growth of peer-to-peer lending. 

Crowdfunding has become a 

hugely popular way for businesses 

to raise cash, with campaigns 

launched for everything from 

challenger banks to cocktail bars. 

However, Tyrie said that 

watchdogs need to consider 

whether investors would benefit 

from stronger consumer 

regulation. 

“But greater regulation is not 

necessarily the answer. If this 

market can substantially increase 

competition it may offer benefits to 

the consumer,” he wrote to the 

FCA’s acting chief Tracey 

McDermott and PRA boss Andrew 

Bailey. “It is crucial that the 

regulator is doing what it can to 

find the right balance between 

these risks and opportunities.” 

Tyrie also asked McDermott to 

lay out responsibilities for ensuring 

that accurate information is 

conveyed to investors. 

Graduates on the money when it 

comes to guessing starting salaries 

The average expectation for a starting salary for graduates is just over £28,300 

JAKE CORDELL 

@JakeCordell 

SALARY expectations among new 

graduates have surged by 37 per cent 

over the past five years, according to 

recruitment website reed.co.uk, as 

students increasingly feel they should 

be getting more bang for their buck. 

Despite that, graduates aren’t 

pricing themselves out of the 

market. The average salary 

expectation is £28,362, only 1.4 per 

cent higher than the actual typical 

starting salary of £27,966. 

Back in the early days of the 

recovery, graduates were actually 

undervaluing themselves, with the 

class of 2012 expecting to scoop a job 

paying just £20,664 after university, 

nearly one-fifth down on the actual 

starting salaries offered to them at 

the time of £25,357. 

Surprisingly, graduates in the 

capital don’t strike it lucky when it 

comes to top spot on the salary 

league table – falling behind 

Liverpool and Reading. London does, 

however, have the most positions 

available for graduates. 

However, some graduates are in for 

a big shock when they get their first 

job offer. New starters in IT think 

they’ll be walking into a £37,000 a 

year job –16 per cent above the actual 

average starting salaries.

Free 10 year 

guarantee


Blockchain for 

banks launched 

by UK startup 

LYNSEY BARBER 

@lynseybarber 

A LONDON startup which boasts the 

former chairman of Barclays on its 

board has launched a new blockchain 

platform for financial institutions. 

Several organisations are in the race 

to build a distributed ledger platform 

with blockchain technology, which 

can be used across the industry for 

processing transactions more quickly 

and simply than current methods. 

That includes the R3 consortium of 

some of the world’s biggest banks and 

Digital Asset Holdings, run by former 

JP Morgan banker Blythe Masters. 

But Setl, founded by several industry 

veterans and chaired by Sir David 

Walker, is the first to launch a 

working blockchain-based platform 

which can be used by banks and financial 

institutions for settling transactions 

– from securities to foreign 

exchange. 

OpenCSD is Setl’s first commercial 

launch and will offer companies the 

chance to adopt blockchain without 

having to develop the technology 

itself, which can be difficult for smaller 

firms with no dedicated innovation 

or digital teams. 

“The time has come to stop talking 

about the characteristics of block - 

chain and to start realising its 

promise. 

“Our OpenCSD platform will revolutionise 

the way securities depositories 

and payments systems are organised,” 

said Setl chief executive and founder 

Peter Randall, who previously 

founded equities trading platform 

Chi-X. 

The platform – which Setl claims is 

the first of its kind – is compliant 

with existing and forthcoming regulation, 

including Europe’s Central 

Securities Depositories Regulation. 

Setl is privately funded by its 

founders, but hired Caroline Silver of 

Moelis & Company late last year to 

lead fundraising for the startup. 

Jeff Bezos has delivered a stinging attack on Donald Trump’s attitude to fee speech 

Bezos attacks Trump and hopes 

industry will be moved to Mars 

LYNSEY BARBER 

@lynseybarber 

AMAZON’S Jeff Bezos yesterday 

weighed in on Donald Trump and 

space travel. 

Bezos was far from complimentary 

about the presumptive Republican 

party presidential candidate. 

On property magnate Trump, who 

recently received the dubious backing 

of North Korea’s Kim Jong-un, Bezos 

said: “One thing that I think Donald 

Trump is doing that is not approp - 

riate, working to freeze or chill the 

media that are examining him.” 

He also said heavy industries 

should be moved to space – perhaps 

to Mars – leaving the earth to be “re - 

zoned” for living and shopping. 

CITYAM.COM 

Goldman and 

Amazon back 

security startup 

LYNSEY BARBER 

@lynseybarber 

AMAZON and Goldman Sachs are 

among investors to have put 

millions into a cyber security 

startup as worries grow around 

keeping private information 

secure for businesses and 

consumers. 

Ionic Security, which works with 

several Fortune 100 companies, has 

landed $45m (£31m) in a series D 

round of funding led by Hayman 

Capital and bringing total funding 

of the Atlanta-based startup to 

$122m. 

Goldman, already a customer of 

the company, joins existing 

investors such as Google and Silicon 

Valley venture capital firm Kleiner 

Perkins. 

“We believe that Ionic’s platform 

addresses one of the biggest 

unsolved security problems for 

large enterprises today: how to 

enable employees to utilise modern 

communication and collaboration 

platforms while also maintaining 

adequate controls and security 

standards,” said Goldman’s 

managing director and head of 

software investment banking Ward 

Waltemath. 

Inmarsat relegated from FTSE 100 

amid gruelling trading conditions 

Samsung seeks patent 

for a foldable phone 

JOSH MARTIN 

@JoshMartinNZ 

DRUGS giant Hikma Pharmaceuticals 

is set to enter the FTSE 100 index as 

satellite services firm Inmarsat drops 

to the FTSE 250. 

The changes will take effect on 20 

June, London Stock Exchange said in 

a statement yesterday. 

Hikma Pharmaceuticals’s 

promotion to Britain’s blue chip 

index comes after its shares surged 45 

per cent since mid-March. The 

company expects its full-year group 

revenue to be between $2bn (£1.3bn) 

and $2.1bn (£1.4bn). 

Inmarsat, on the other hand, has 

seen its shares fall 37 per cent since 

early February amid tough trading 

conditions in its maritime and 

government markets businesses. The 

company warned in May that 

revenues for the year ahead would be 

much lower than expected. 

Other companies entering FTSE 250 

index include Metro Bank, 

Countryside Properties, Hill & Smith 

Holdings, Smurfit Kappa Group and 

Ascential among others. 

Meanwhile, companies relegated 

from the FTSE 250 include 

Highbridge Multi-Strategy Fund, 

Interserve, Jimmy Choo, Lookers, 

Melrose Industries, Northgate and 

Ophir Energy. 

LYNSEY BARBER 

@lynseybarber 

KOREAN tech giant Samsung has 

filed for a patent for a foldable 

smartphone. 

Samsung has long talked about 

its plans for a flexible, foldable 

smartphone over the years, 

however the technology has not 

quite kept up with aspirations. 

The company’s most recent 

flagship devices, including this 

year’s S7, have inched closer to full 

foldability with curved screen 

edges. 

However, the latest patent, which 

appears to look similar to the 

Galaxy models, would indicate a 

major step forward. 

The patent was filed in November 

last year, according to Patently 

Mobile, but was published only this 

week. 

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CITYAM.COM 


NEWS 

09 

How to do things 

differently in the 

pub industry 

Ralph Findlay is 

the head of 

Marston’s 

Francesca Washtell talks to Marston’s 

boss Ralph Findlay about how to stay 

resilient in the modern pub sector 

IT’S FAIR to say it’s been a challenging 

decade for the UK’s pub sector. 

First, it was hit by the smoking ban 

in 2007, then by the recession in 

2009. Revenues across the industry 

have also been affected by broadly 

falling levels of alcohol consumption. 

Pub companies have been forced to 

rethink their strategies to stay 

resilient in a changed market, and 

also to redefine their purpose. 

Many have turned traditionally 

drinking-focused, community pubs 

into foodie hotspots. 

Data released this week showed the 

food-led branded pub segment has 

grown by 17 per cent in the last year 

and 47 per cent in the past five years. 

Marston’s, the independent brewer, 

nationwide pub operator and, most 

recently, lodge provider, might have 

taken the pub sector’s focus on food 

on board, but it’s also adopted a different 

approach. 

According to chief executive Ralph 

Findlay, avoiding London and making 

sure it maintains a diverse business 

have been key for the FTSE 250-listed 

company. 

It has mostly eschewed the capital in 

favour of the regions and suburban 

areas where the company can be a big 

fish in the small pond of less competitive 

pub markets. 

“The London market is incredibly 

vibrant from the point of view of consumers, 

but for our sector the competition 

is very intense,” Findlay told City 

A.M. 

“Also, the cost of property is a major 

barrier. We are a returns-focused business 

and making high returns in 

London is harder.” 

While the company 

operates a handful of 

pubs in London, 

including the Fire 

Station at Waterloo 

and Pitcher and 

Piano on Cornhill, 

the majority of its 

1,600 or so pubs are 

located elsewhere. 

“We aim to be the 

best pub for miles around and that is 

a greater challenge in 

London.” 

Although the group 

has locations across 

England, Scotland and 

Wales, you would be 

forgiven for not being 

aware of it. 

As well as avoiding 

London, the company 

shuns national advertising 

campaigns, opting 

for local advertising and 

sponsored events promotion. 

“We think we might 

turn people off if we operate 

with big brand behaviour,” 

Findlay said. 

We might turn 

people off if we 

operate with big 

brand behaviour 

It’s a strategy that would seem to be 

working for the firm. Like-for-like sales 

across its managed and franchised 

pubs grew three per cent last year, 

higher than the market average. The 

average profit for each of its pub was 

13 per cent in 2016 and up 44 per cent 

since 2012. 

Marston’s beer business has continued 

to grow strongly, with the group’s 

underlying profits in 2015 driven by 

its acquisition of brewer Thwaites last 

March. 

While its pub business accounts for 

around 90 per cent of profits, Findlay 

maintains that the brewery is still the 

“beating heart” of Marston’s, both for 

the company and its employees. 

Among its many ales the company 

brews Hobgoblin, Banks’s Bitter and 

Pedigree. 

However, the company is notably not 

precious about maintaining a monopoly 

of its own drinks at its pubs. 

Some 80 per cent of the beers sold in 

Marston’s pubs are not manufactured 

by the company. 

A part of its diversification strategy 

has also been to look to take over other 

smaller brewers, while maintaining 

an independent, craft beer feel. 

“In the mid-2000s, we looked at the 

US market and saw that, while consolidation 

was what everyone had expected, 

actually the market was getting 

more and more fragmented,” Findlay 

said. 

Marston’s took over Ryland 

Thompson and its subsidiary Refresh, 

which included the Oxfordshire-based 

Wychwood Brewery in 2008, and 

acquired the Hampshire-based 

Ringwood 

Brewery in 2007. 

As for the 

future, the company 

is aiming to 

build 20 new 

pubs per year, cultivating 

its premium 

segment of 

the market, franchised 

business 

and destination 

lodge arm. 

“I think the key 

thing in our market 

is to be able to 

move and be 

agile,” Findlay 

said. 

“What it does 

mean is that we 

don’t have all our 

eggs in one basket,” 

he added. 

“That’s something 

that the micro - 

brewers are good at 

and so are we. 

“We have a 

number of areas 

where we try to grow 

the business.”


Match.com tops 

list of Britain’s 

thriftiest firms 



DATING site Match.com, White Dark – 

the artistic company of sculptor Anish 

Kapoor, and the Royal Collection 

Trust, have all been named as some of 

the UK’s thriftiest small companies. 

The research, published today and 

carried out by company intelligence 

provider DueDil, named 156 companies 

in the UK with positive net 

assets and a turnover between £30m- 

£50m, and who hold between 50 per 

cent and 80 per cent of their assets as 

cash. 

Others include the Watch Tower 

Bible and Tract Society of Britain, BBC 

Media Action – the BBC’s internat - 

ional development charity – and the 

Scottish Football Association. 

Having a lot of cash on the books 

isn’t always a good thing – though 

may be because the firm is saving up 

for an acquisition or has had higher 

than expected sales – and could mean 

assets are not being used effectively. 

Credit rating agency Moody’s issued 

a report last year suggesting that 672 

major European companies were 

together holding about €870bn 

(£674bn) at the end of 2014. 

In Japan listed companies were 

thought to have amassed a 

combined cash pile of $2.2 trillion 

(£1.53 trillion) – a staggering 40 per 

cent of the country’s gross domestic 

product. 

Some of the biggest tech companies 

in the world are the worst offenders 

when it comes to hoarding cash – 

though this means they have plenty 

of cash on hand when the market 

quickly shifts, allowing them to buy 

up competitors. 

iPhone maker Apple has hoarded 

over $233bn in cash. There have been 

repeated calls from investors for the 

company to return more of its cash to 

shareholders – despite the Californiabased 

company paying out $2.9bn in 

mid-May. 

ALL HAIL ROYAL MAIL Postal service 

reaches pay deal with workers’ union 

ROYAL Mail yesterday said it reached a one-year pay deal with the Communication 

Workers Union (CWU) that would increase workers’ base salary by 1.6 per cent. The 

CWU will recommend that its members accept the offer for the year 2016-17. 

CITYAM.COM 

Money Advice 

Service to offer 

£7m in funding 

MARK SANDS 

@mksands 

THE MONEY Advice Service has 

launched a new £7m fund to 

support organisations trialling 

efforts to improve financial 

capability. 

The What Works Fund will 

support projects seeking to build 

quantifiable evidence on the type 

of interventions that can make a 

difference to individuals. 

It comes ahead of the close of a 

Treasury consultation next week 

looking reforms to the MAS, which 

would see it become a purely 

commissioning organisation, 

offering limited services directly. 

A successor money guidance 

organisation is expected in 2018. 

Commenting on the funding 

programme, the MAS chief 

executive Caroline Rookes said: 

“This will help organisations from 

across the sector to fund and 

deliver interventions that we know 

make a difference to people’s 

financial capability. 

“It will also help to provide the 

new money guidance organisation 

with information needed to 

commission effective services from 

day one.” 

Watchdog dishes out £2.4m fine for 

historic PPI complaints mishandling 

Solicitors’ body holds 

off over super-exam 

HAYLEY KIRTON 

@HayleyLEK 

CT CAPITAL yesterday was slapped 

with a £2.4m fine by the City 

watchdog for historic failings in its 

Payment Protection Insurance (PPI) 

complaint handling procedures. 

The Financial Conduct Authority 

(FCA) issued the £2,360,900 fine in 

relation to the mishandling of PPI 

complaints between May 2011 and 

November 2013, which resulted in 

customers missing out on redress 

repayments to which they were 

entitled. The firm would have been 

fined just shy of £3m, but received a 

20 per cent discount for agreeing to 

settle at an early stage. 

In particular, the FCA criticised 

the firm for failing to put into place 

various provisions on the handling 

of such complaints until November 

2011, despite these coming into force 

in December 2010. 

“Failing to handle complaints 

appropriately means that firms risk 

treating customers unfairly for a 

second time and it’s important that 

firms get this right,” said Mark 

Steward, director of enforcement 

and market oversight at the FCA. 

“We have taken action against firms 

on numerous occasions and there’s 

no excuse for firms continuing to get 

it wrong.” 

HAYLEY KIRTON 

@HayleyLEK 

THE SOLICITORS Regulation Authority 

(SRA) yesterday delayed making a decision 

on the introduction of a so-called 

super exam. 

While the SRA maintained that it 

still believed there was a strong case 

for the Solicitors Qualifying Exam, it 

has extended its timetable to work out 

some of the detail. 

“I think the case for a form of centralised 

assessment is strong,” said 

Paul Philip, SRA chief executive. “It 

addresses the problem that, currently, 

qualifications are not comparable – 

multiple courses and exams mean 

that standards can vary significantly 

and there is a lack of transparency. 

“Any new assessment needs to be fair 

and consistent and ensure that new 

solicitors can meet the high standards 

that the public and employers expect.” 

Feeling Tired? 

Private equity giants storm into Bank of 

America-owned MBNA credit card auction 

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THE AUCTION of credit card giant MBNA is 

becoming crowded, as three of the world’s 

biggest private equity firms prepare bids. 

Cerberus, Cinven, and TPG are considering 

bidding for MBNA, potentially putting them 

up against high street banks Lloyds Banking 

Group and challenger Virgin Money, which 

emerged as likely suitors last week. 

MBNA has a 11 per cent market share of 

credit cards across the UK, giving it a loan 

book of around £7bn. The business is thought 

to be worth hundreds of millions of pounds. 

MBNA is currently owned by Bank of 

America, though the bank has been looking 

to exit its non-domestic markets since the 

financial crisis and has already sold of the 

majority of its assets in Europe. 

The auction is understood to be in its early 

stages, and is expected to take several months 

to complete. 

Last week, it was reported that Lloyds, 

which has a 15 per cent share of the credit 

card market, is thought to be interested 

in MBNA, as well as Virgin Money, which 

has grown quickly since its IPO in 

November 2014. It wouldn’t be the first 

time Virgin Money has expressed an 

interest in MBNA. In December of 2014, 

Virgin Money bought £363m of assets 

from MBNA. 

MBNA employs more than 1,500 staff 

at its base in Chester and has over five 

million UK customers. 

A deal to buy the business, which issues 

cards under the brands of dozens of 

partners such as Premier League football 

clubs Arsenal and Manchester United, 

would be likely to cost a purchaser of MBNA 

at hundreds of millions of pounds and 

possibly more. A successful exit for BoA 

would underline the ongoing efforts of 

global banks to dispose of non-core 

operations amid regulatory 

reforms introduced since the 

financial crisis of 2008. 

News of the private 

equity firms’ interest 

was first reported by 

Sky News. 

MBNA, Cerberus, 

Cinven, and TPG all 

declined to comment. 

Five firms are 

considering a bid for 

MBNA

CITYAM.COM 


NEWS 

11 

THECAPITALIST 

EDITED BY TRACEY BOLES 

DONALD’S GOT TIMING HAVING 

UPSTAGED HIS RIVALS, IS BREXIT NEXT? 

Got A Story? Email 

thecapitalist@cityam.com 

Why airport drinking doesn’t fly 

GATWICK’S “Operation Disrupt” initiative 

to police alcohol consumption 

in its terminals comes into effect this 

week, as it strives to clamp down on 

drunken and rowdy behaviour. It may 

sound harsh but judging by the 

results of a new survey, it’s not before 

time 

The majority of British holidaymakers 

(62 per cent) admit they head 

“straight to the bar” as soon as they 

reach the airport departure lounge, 

according to global travel 

website, Cheapflights.co.uk. 

Some 28 per cent have had “one too 

many” before getting on the plane. 

Some start as early as 8am. 

Andrew Shelton, managing director 

of Cheapflights.co.uk, said: “At any 

other time, downing three drinks at 

8am would be unthinkable, but some 

holidaymakers adopt an attitude of ‘it 

must be after lunchtime somewhere 

in the world’.” Many are denied boarding 

as a result. If that doesn’t put you 

off, think of the cost: 17 per cent of 

those asked confessed they had overspent 

in the airport shops after having 

one too many. The average overspend 

is a whopping £1,239. 

DONALD Trump is to visit the UK this month to mark the opening of his Scottish golf 

resort. The presumptive Republican nominee for the US presidency will visit on 24 

June, one day after the referendum. What’s his game? 

CHILL OUT, YOU’RE A BANKER 

Bankers and work-life balance don’t go 

hand in hand – but UBS is trying to 

change that. More than 6,000 people 

working at UBS’ investment banking 

division globally are set to get two hours 

of “personal time” every week as part of 

the bank’s “take two” initiative. The 

scheme, that was started by investment 

bank president Andrea Orcel following a 

staff survey, is being implemented to 

reduce stress levels and lighten workloads 

of bankers. Launched on 4 May, the 

scheme offers at least two hours of 

personal time to bankers provided their 

co-workers are happy to cover for them. 

The Capitalist’s money is on takings being 

up at nearby bars and clubs. 

QUOTE OF THE DAY 

I’ve tried but 

it’s hard… 

Gavin Sibthorpe, 

Jeremy Corbyn’s 

events officer, when 

asked for a Vice 

documentary whether 

he’d tried to get 

Corbyn to dress 

smarter. 

Halfords cycles to increase 

in profit and signs up Trott 

CAITLÍN MORRISON 

@citycait 

MOTORING and cycling 

retailer Halfords 

yesterday unveiled a 

new tie-up with an 

Olympic cyclist. 

The announcement 

came as Halfords 

reported an increase 

in revenue and profit 

in its preliminary 

results for the 2016 

financial year. 

Sales were up 1.5 per cent 

like-for-like, to £1.02bn from £1bn, 

with £869m coming from the 

group’s retail operations, and 

£153m made through its 

autocentres. Profit before tax rose 

by 0.5 per cent to £81.5m from 

£81.1m. 

The company reduced its 

net debt by 22.5 per cent 

to £47.9m from £61.8m. 

The firm announced 

that it was launching a 

Halfords chief executive 

Jill McDonald 

new collaboration with 

Olympic gold medallist 

Laura Trott, to create a new 

range of limited edition 

perform ance bikes for women. 

Halfords has previously collaborated 

with Bradley Wiggins, Victoria 

Pendleton and Chris Boardman.


Defined benefit 

pensions facing 

a £310bn deficit 

HAYLEY KIRTON 

@HayleyLEK 

THE LEVEL of funding across defined 

benefit (DB) schemes has worsened 

over the past year, figures yesterday 

showed. 

According to the analysis by JLT Employee 

Benefits, the total deficit across 

all private sector DB schemes has increased 

to £310bn at end of last month, 

up from £255bn the same time in 2015. 

“Pension scheme deficits have 

reached record levels, with the total 

deficit for all UK private sector pension 

schemes exceeding the £300bn mark 

for the first time in May,” said Charles 

Cowling, director at JLT Employee Benefits. 

“Conditions are getting ever more 

challenging for pension schemes with 

prolonged low interest rates and uncertainty 

in the markets ahead of the EU 

referendum.” 

The black hole in FTSE 100 companies’ 

plans was looking particularly 

dark, with the total DB scheme deficit 

growing to £100bn, up from £80bn at 

the end of May 2015. 

Meanwhile, the funding level across 

all of the UK’s DB schemes slumped 

from 83 per cent last year to 80 per cent 

this year, while funding levels for FTSE 

100 companies dropped from 87 per 

cent to 85 per cent. Cowling continued: 

“There isn’t too much prospect of imminent 

relief from markets either, as 

the nervousness surrounding the EU 

referendum is causing short-term 

volatility. With interest rates looking to 

stay low for some time yet, it seems unlikely 

that pension schemes will benefit 

from either an exit or a remain vote. 

While companies should look to continue 

to seek opportunities to reduce 

risk and settle pension liabilities, they 

may wish to wait until after 23 June 

when there may be greater clarity on 

the shorter term outlook for markets.” 

DB pension schemes are in the spotlight, 

with the black hole in BHS’ fund 

worth £571m sparking a parliamentary 

inquiry. 

Those aged 18-24 years-old spend the most per person on their summer holidays 

Brits splash out two and a half 

months’ salary on family hols 



THE AVERAGE British family will 

spend two and half months’ wages 

on their summer holiday, according 

to new research. 

A family of four will spend an 

average of £1,074.40 per person on an 

annual break – equal to one 

breadwinner’s after-tax pay total for 

two and a half months’, based on the 

average wage of £26,411, e-tailer Give 

as you Live found. 

Among cities in the UK, sunhungry 

Glaswegians are the biggest 

spenders among us, splashing 

£1,922.97 per person. Londoners are 

far more restrained, however, 

forking out an average of £1,032.58. 

CITYAM.COM 

No power to the 

people: French 

strikes intensify 

BATE FELIX 

FRANCE’S CGT union workers 

voted yesterday to start rolling 

strikes in the power sector, 

including at all 19 nuclear power 

plants, as part of nationwide 

protests aimed at forcing the 

government to withdraw a 

disputed planned labour reform. 

The strike cut French power 

output from yesterday evening as 

workers downed tools at plants, 

but it is unlikely to lead to 

blackouts due to a rule that obliges 

unions to maintain a minimum 

level that prevents outages. 

State-controlled utility EDF may, 

however, be forced to increase 

electricity imports from 

neighbouring countries to meet 

demand. 

“All power production sites voted 

to strike from [today]. All 19 

nuclear plants voted for the strike. 

We will start cutting power 

output,” Laurent Langlard, CGT 

union official at power utility EDF, 

said last night. 

Langlard said CGT members at 

hydro and fuel-powered stations 

also voted for the strike. 

The strike has also hit the French 

rail and oil sectors, disrupting fuel 

supplies. 

Reuters 

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House price growth falls 

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EMMA HASLETT 

@emmahaslett 

HOUSE price growth fell in May to 

its lowest since October last year, 

suggesting it might soon be easier to 

get on to the property ladder. 

Nationwide’s House Price Index, 

published yesterday, showed prices 

rose 1.3 per cent to £204,368 in the 

three months to May, down from 1.4 

per cent rises in April and March, 

and a peak of 1.5 per cent in 

February. 

Year-on-year growth was at 4.7 per 

cent, its lowest since February, while 

monthly growth – which tends to be 

more volatile – remained at 0.2 per 

JAKE CORDELL 

@JakeCordell 

UK MANUFACTURING expanded 

last month, according to the new 

data out yesterday, but fears 

persist over a longer term decline. 

The sector clocked a score of 

50.1 on the Markit/Chartered 

Institute of Procurement and 

Supply (Cips) purchasing 

managers’ index (PMI) for May. A 

score above 50 indicates 

cent for the second month in a row. 

The dips in growth rates came a 

month after the government intro - 

duced new rules for buy to let 

properties, which mean would-be 

landlords must pay three per cent 

more in stamp duty than 

homeowners. 

But the dip could just be the 

market settling after buyers went 

into a frenzy in the months between 

November, when the new rules were 

announced, and April, when they 

came into effect. Nationwide’s 

figures showed a huge rise in the 

number of transactions between 

March and the year before – with 

cash transactions nearly doubling 

expansion. This was up from a 

disappointing 49.2 in April’s 

survey, though experts said it 

would not be enough to arrest the 

broader decline. 

“The UK manufacturing sector 

continued its lacklustre start to 

2016,” confirmed Rob Dobson, 

senior economist at Markit. 

The production sector – 70 per 

cent of which is made up by 

manufacturing – slipped into its 

third recession in a decade in the 

from about 35,000 to just over 

60,000. It could also be an effect of 

fears over Brexit, which some have 

suggested may be dampening 

demand. 

Robert Gardner, Nationwide’s 

chief economist, suggested activity 

in the market may have peaked. 

“House purchase activity is likely 

to fall in the months ahead given the 

number of purchasers that brought 

forward transactions,” he said. 

“The recovery thereafter may also 

be fairly gradual, especially in the 

buy to let sector, where other policy 

changes, such as the reduct ion in tax 

relief for landlords from 2017, are 

likely to exert an ongoing drag.” 

Britain’s manufacturing output improves but 

fears remain over stopping a broader decline 

first three months of the year, as 

output contracted for the second 

consecutive quarter. 

EEF, the manufacturers’ body, 

warned that “the very modest 

improvement in activity wasn’t 

enough to prevent further job 

losses across the sector”. 

Lee Hopley, EEF chief 

economist, said that while 

referendum nerves were playing 

some role in the sector’s decline, 

“this is a demand story rather 

than a Brexit one”.

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CITYAM.COM 

Sugar price rally continues as El Nino 

disrupts south east Asian production 

FRANCESCA WASHTELL 

@fwashtell 

THE RECENT raw sugar price rally 

continued yesterday as the sweet 

commodity traded at around 17.3 

cents per pound, according to Nasdaq 

data. 

Prices have reached a two-year 

high over the past week in a positive 

swing that contrasts with many 

other commodities, particularly 

metals such as copper and iron ore. 

Many countries have experienced 

production disruptions due to the El 

Nino weather phenomenon. In 

Thailand, a core sugar exporter in 

south east Asia, extreme weather 

caused by El Nino could reduce sugar 

production in the country by around 

14 per cent, a government official 

told the Wall Street Journal. 

Production in India has also been 

affected. 

In mid-May, the US department of 

agriculture forecast global sugar 

consumption would again outpace 

production in 2016/2017 and would 

draw stocks to the lowest level since 

2010/2011. 

Ahead of Easter, sugar prices rose 

by 20 per cent month-on-month, also 

largely as a result of El Nino, which 

can produce drier than normal 

weather and interfere with the 

growing cycles of agricultural 

commodities. 

This year’s El Nino has been the 

strongest cycle in 35 years, bringing 

with it above-average temperatures, 

water shortages but also flooding 

across the world. 

Production in Thailand, a core sugar exporter, could be reduced by up to 14 per cent 

Hollande warns 

champagne may 

delay trade deal 

FRANCESCA WASHTELL 

@fwashtell 

PRESIDENT Francois Hollande yesterday 

warned protection of France’s 

wines and cheeses could delay the 

Trans-Atlantic Trade and Investment 

Partnership (TTIP). 

Hollande insisted that France will 

not sacrifice any of its geographically 

protected labels, which include 

sparkling wine produced in the 

region of Champagne and comte 

cheese, as part of the free trade deal 

being hashed out between Europe 

and the US. 

Protected status is granted by the 

European Union and means that only 

products made in a specific geo - 

graphic area can carry the name 

associated with them. 

“There can be no question of sacrificing 

our interests to get a deal,” 

Hollande said, describing the protected 

names as France’s “heritage”. 

“Geo graphical indications contrib - 

ute to preserving agricultural quality 

in our country. They help to keep our 

farm ing activity on our land,” he 

added. 

The French president was speaking 

at the inauguration of a new wine cen- 

tre in Bordeaux, reported the Finan - 

cial Times. 

Prime Minister David Cameron 

recently made his own case, writing in 

the Gloucester Citizen newspaper, 

that many of the UK’s best-loved food 

and drink products could be under 

threat of losing protected status if 

Britain votes to leave the EU in the 23 

June referendum. 

In the UK, among the products 

granted protected status are arbroath 

smokies, cornish pasties and melton 

mowbray pork pies. 

Meanwhile, the president of the 

European Commission Jean-Claude 

Juncker addressed a convention of 

French mayors in Paris to try to sell 

the free trade deal, which would unify 

rules and slash tariffs to create a combined 

market of around 850m people, 

he said. 

US President Barack Obama has 

pressed for the Transatlantic-Trade 

and Investment Partnership to be 

agreed by the end of the year. 

A leak of confidential information 

that claimed to reveal disagreements 

in negotiations between Europe and 

the US on the deal was labelled a 

“storm in a teacup” last month by the 

EU’s trade commissioner. 

Le grand fromage: A cheese maker prepares a wooden mold of beaufort cheese 

Commodities 

hedge funds 

report uptick 

JESSICA MORRIS 

@jssmorris 

COMMODITY-based hedge funds 

shrugged off the problems plaguing 

other money managers at the start 

of this year, as investors piled into 

the long-suffering sector. 

Following more than three 

years of negative sentiment, 

investors returned to the 

commodities sector in the middle 

of last year and have since 

allocated $5.4bn (£3.7bn), 

according to data tracker 

eVestment. 

It comes during a torrid time 

for hedge funds which have had 

to grapple with the slowing global 

economy, disappointing 

performances as well as crowded 

trades and increasingly 

disillusioned clients. 

But commodity-focused hedge 

funds outperformed their peers in 

fixed income and credit, equities 

as well as FX and currencies 

during the first four months of 

2016. 

The former produced average 

aggregate returns of 4.1 per cent 

— compared to the industry 

benchmark of 0.8 per cent. 

“The [commodities] group 

benefited from a surge of higher 

prices across the commodity 

spectrum during the month, 

something which appeared to 

hurt larger managed future 

funds,” eVestment said. 

Swiss declare the Alps tamed as 

world’s longest rail tunnel opens 

After more than two decades in the making, the tunnel opened with circus act flair 

JAMES NICKERSON 

@nickersonjw 

IT’S A marvel to rival Hannibal’s feat – 

the world’s longest and deepest rail 

tunnel was officially opened in 

Switzerland yesterday . 

The Gotthard Base Tunnel will 

provide high-speed rail services under 

the Swiss Alps linking Rotterdam in 

the Netherlands and Genoa in Italy. 

Until now, freight relied mostly on 

lorries and older, slower trains 

through the Alps. 

The project cost $12.5bn (£8.7bn) 

after being supported by Swiss voters 

in 1992. The tunnel, as much as 

2.3km below the Alps, will take just 

17 minutes to pass through. When it’s 

fully up and running, the total 

journey time between Zurich and 

Milan will be reduced to 40 minutes. 

German Chancellor Angela Merkel, 

French President Francois Hollande 

and Italian Prime Minister Matteo 

Renzi were among those attending 

the opening. 

The 35.5-mile tunnel was com - 

pleted on time and within budget, 

sparking Swiss federal transport 

office director Peter Fueglistaler 

called “a masterpiece of timing, cost 

and policy”, Reuters reported. “It is 

just part of the Swiss identity. For us, 

conquering the Alps is like the Dutch 

exploring the oceans,” he added.

CITYAM.COM 


MARKETS 

15 

CITYDASHBOARD 

YOUR ONE-STOP SHOP BROKER 

VIEWS AND MARKET REPORTS 

In association with 

LONDON REPORT BEST OF THEBROKERS NEW YORK 

To appear in Best of the Brokers, email your research to notes@cityam.com REPORT 

Miners send the 

FTSE 100 lower as 

Wolseley slumps 

THE TOP share index 

retreated from a one-month 

high yesterday, with 

Wolseley slumping after 

poor results and mining 

stocks following metal prices lower. 

The blue-chip FTSE 100 index 

closed 0.6 per cent lower at 6,191.93 

points, a day after hitting its highest 

level since late April. 

Metal prices dropped following 

weak factory data from China and 

Europe. Shares in mining companies 

Rio Tinto, Antofagasta and Anglo 

American fell 1.3 to 3.8 per cent. 

British heating and products 

supplier Wolseley dropped 5.5 per 

cent, its biggest one-day percentage 

drop since September last year, after 

the company reported a slowdown in 

revenue growth for the third 

quarter, due to subdued demand. 

Housebuilders were also in 

negative territory, with analysts 

citing the ICM poll earlier in the 

week that suggested voters were 

leaning towards Brexit. 

Persimmon, Berkeley Group, 

Barratt Developments and Taylor 

Wimpey shares dropped between 2.9 

and 3.7 per cent. 

FTSE 

6,280 

6,260 

6,240 

6,220 

6,200 

6,180 

6,160 

1 June 

6,191.93 

25 May 26 May 27 May 31 May 

1 June 

SAGE 

617.50 

615.00 

612.50 

610.00 

607.50 

605.00 

602.50 

600.00 

P 

1 June 

612.50 

25 May 26 May 27 May 31 May 1 June 

Sage has been given a “buy” rating by analysts at Liberum who yesterday started 

covering the software company. The company could increase its current earnings 

margin from 27 per cent to more than 30 per cent, Liberum said. The analysts gave 

Sage a target price of 660p, noting that the company is one year into a transform - 

ation programme that has seen more than 70 of its top 100 managers changed. 

WOLSELEY 

4,100 

4,050 

4,000 

3,950 

3,900 

3,850 

3,800 

P 

1 June 

3,828.00 

25 May 26 May 27 May 31 May 1 June 

Analysts gave Wolseley a mixture of “buy” and “hold” ratings yesterday after the 

building materials supplier reported its third-quarter results. While Canaccord 

Genuity and Standard and Poor’s gave the company “buy” ratings, Liberum and 

Peel Hunt said “hold”. Peel Hunt said that while the group said it was on track to 

meet expectations, trading has slowed since the end of the third quarter. 

See-saw day 

ends in rises 

US STOCKS fluctuated before 

closing slightly higher 

yesterday as investors 

processed data on global 

manufacturing, car sales and inflation 

for clues about the Federal Reserve’s 

next interest rate hike. 

The Dow Jones industrial average 

rose 2.47 points, or 0.01 per cent, to 

17,789.67, the S&P 500 gained 2.37 

points, or 0.11 per cent, to 2,099.33 

and the Nasdaq Composite added 

4.20 points, or 0.08 per cent, to 

4,952.25. 

Car sales weakened in May, with 

General Motors, Ford Motor and 

other manufacturers reporting lower 

US sales. 

GM shares fell 3.4 per cent while Ford 

dropped 2.8 per cent. 

Demandware soared 55.9 per cent 

to $74.81. Salesforce.com agreed to 

buy the company in a $2.8bn 

(£1.94bn) deal. Salesforce fell 0.3 per 

cent. 

Shares of Michael Kors rose 6.6 per 

cent, to $45.55 after the luxury 

accessories maker posted its strongest 

quarterly sales growth in a year. 

CITY MOVES WHO’S SWITCHING JOBS Edited by Joseph Millis @joemillis59 

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EMAIL SERVICE AT CITYAM.COM/CITY-MOVES 

BIBBY FINANCIAL SERVICES 

Independent business funder, 

Bibby Financial Services 

(Bibby) has appointed Ray 

Lowrey as UK risk director. 

First joining Bibby 15 years 

ago, Ray has held a variety of 

roles with the financier, 

including operations manager, 

head of operations, business 

director and – most recently – 

deputy risk director. A member 

of the Chartered Institute of Credit Management, Ray 

was appointed to his current role following Ian 

Ramsden’s appointment as group risk director. 

PAYNE HICKS BEACH 

Central London law firm, Payne Hicks Beach, has 

announced four promotions across its private client, 

family and property departments. Basil Dixon has been 

promoted from associate to partner in the private 

client team. In addition, Emily Foy, Emilie Helm and 

Marisa Beccarelli have been made associates in the 

family and property departments. 

TESTPLANT 

TestPlant, the maker of the eggPlant range of software 

tools, has announced that it has appointed Liz Andora 

as chief people officer. In her new role, Liz assumes 

responsibility for all aspects of TestPlant’s global 

human resources strategy and execution as the highgrowth 

software company scales up its global 

presence. With more than 20 years of HR experience, 

Liz joins from Rally Software, which was recently 

acquired by CA Technologies, where she was vice 

president, people. She has a strong background in 

leading HR for leading technology companies, 

including Sun Microsystems and HP. 

ALLIANZ UK 

Following a strategic review, Allianz UK is changing 

its structure and creating a new single trading 

division combining commercial and personal lines 

business and a new technical division. The new 

commercial and personal division will be led by 

Simon McGinn, who is currently general manager of 

Allianz’s commercial business. Neil Clutterbuck has 

recently been appointed as the new chief 

underwriting officer. 

SALARYFINANCE 

SalaryFinance, the financial employee benefit 

provider, has announced the appointment of Marina 

Theodosiou as head of decision science, with a brief to 

drive the development of the company’s credit risk 

function. Marina previously led Funding Circle’s risk 

and analytics team for 18 months, helping the firm to 

reach its £1bn lending milestone in 2015. She also 

worked as an economist at the European Central Bank 

and held a number of positions in the decision science 

departments of fintech startups. 

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com 

 

 

 

 

 

 

 

 

 

 

Open an account at spreadco.com 

Leveraged products are high risk, 

losses may exceed deposits

16 OPINION THURSDAY 2 JUNE 2016 

FORUM 

Leaving the EU will undermine 

London’s global competitiveness 

LONDON is at the forefront of 

the huge changes buffeting 

our society and our economy, 

as we confront and cope with 

the realities of globalisation. 

India and China, and the emerging 

economies of Indonesia, Singapore, 

Vietnam, Brazil and others, are overturning 

Europe’s traditional dominance. 

In Africa, Senegal, Uganda, 

Tanzania, Kenya and Ethiopia all had 

growth rates of over 5 per cent in the 

last year. China is investing more in 

African roads, airports, ports and cities 

than the World Bank. 

The world of tomorrow will be 

shaped by these new economies, with 

their new manufacturing, new service 

sectors and new universities. London 

will have new “rival” cities – and by 

working with our allies in Europe we 

are better placed to compete in the 

industries of the future. 

There is much to gain from expanding 

the Single Market further and 

developing the EU’s Digital Single 

Market – worth about €400bn per year 

and the best part of 4m jobs. The EU 

will increasingly be an area of huge 

opportunity for London’s tech industry, 

but a Brexit vote would jeopardise 

these visionary plans. 

The EU is an engine for scientific 

development too. It accounts for more 

than a third of world scientific output 

– outstripping the mighty United 

States, and that gap is growing. It’s not 

surprising that Stephen Hawking and 

150 other fellows of the Royal Society 

recently warned that quitting the 

European Union would be a “disaster 

for UK science”. 

According to the Russell Group, our 

top universities (five of which are 

based in London) receive £580m a year 

RECEIVED wisdom is that, to 

understand the economics 

of Britain’s relationship with 

the EU, one needs to either 

look forward (with so-called 

CGE or computable general equilibrium 

models) or backward (with socalled 

gravity and/or synthetic 

counterfactual 

models). 

Unfortunately, there are serious problems 

with both. 

CGE models try to simulate the 

future, but that future depends on 

the structure of the model. And that 

immediately faces the problem that 

we simply don’t know the “true” 

model of the economy. PwC’s CGE 

modelling for the CBI identifies a significant 

negative impact of Brexit by 

focusing on the impact of uncertainty 

and the migratory supply of labour. 

Academic modelling by professor 

Patrick Minford, however, produces a 

significant gain from Brexit because 

his modelling focuses on – arguably 

the most important issue – the cold 

shower boost to economic performance 

from opening up trade to world 

prices, outside the protection of the 

EU common external tariff. 

in EU research funding, more than the 

whole of Germany. And the current 

star of British science, Tim Peake, is 

also a symbol of European scientific 

collaboration. He is up in space 

because of a partnership between the 

European Space Agency and the EU, 

which provides 20 per cent of the former’s 

funds. Collaboration between 

scientists across the EU fosters 

advances that might not otherwise 

happen if these brilliant minds were 

separated by national boundaries. By 

bringing together a critical mass of 

intellectual talent, the EU creates the 

conditions for scientific discovery to 

flourish. 

In infrastructure investment too, the 

EU is critical to Britain’s future prosperity 

and global competitiveness. 

From upgrading our roads, railways 

and bridges, to hospitals, schools and 

high speed broadband, the European 

Investment Bank (EIB) is a vital source 

of funds. 

The EIB is an EU institution in which 

Britain holds a sixth of the shares. It’s 

the world’s largest international 

public bank, owned directly by the 

member states. And it is a tremendous 

force for good. By walking away from 

the EU, we would lose access to the 

huge level of funds it provides – to 

businesses, universities, schools and 

local authorities in Britain – at preferential 

rates. 

Last year alone the UK received 

£5.6bn from the EIB to help regenerate 

communities and modernise infrastructure 

up and down the country. In 

London, the powerhouse of the UK 

economy, the investment is crucially 

important. Over the past decade, the 

EIB has made available £7.3bn for 

transport, education, social housing, 

The Open Europe think tank’s CGE 

modelling produces a net gain from 

Brexit when allowing for the effects of 

open trade and politically feasible 

deregulation. The range between the 

CBI and Minford models is huge, from 

a net cost of 5.5 per cent of GDP in the 

CBI modelling, to a net gain of 3.7 per 

cent of GDP in Minford’s model. 

So what’s the takeaway? In my view 

it’s three fold. First, moving from the 

EU customs union to trading at world 

prices without imposing tariffs on 

imports is a clear positive. But the 

scale of this gain is very difficult to be 

precise about due to modelling and 

data issues. Second, any gain from 

world prices is likely to be amplified 

by moves to shrink the size of the 

state at the same time. Third, we have 

to be aware of the threat from intensified 

uncertainty, even though this is 

almost impossible to calculate accurately, 

and is being hyped by Project 

Fear – to the point of becoming selffulfilling. 

What about backward-looking modelling 

which seeks to quantify the 

impact of the EU on trade, and then 

the impact of trade on productivity 

Seema 

Malhotra 

Collaboration 

between scientists 

across the EU fosters 

advances that might 

not otherwise 

happen if these 

brilliant minds were 

separated by 

national borders 

water, energy, healthcare and urban 

regeneration investment across the 

capital. 

Among the recent loans are £280m 

for University College London to modernise 

its historic Bloomsbury campus 

and develop a new campus at the 

Queen Elizabeth Olympic Park, and 

£102m for Croydon Council to build 

new and expand existing schools. 

Can London take the risk of seeing 

this vital source of investment dry up? 

And can London afford the risk of 

being outside a Single Market of over 

and growth? Here again, the 

problems are immense. Synthetic 

counterfactual modelling attempts to 

establish a control group (as in medical 

research) and then compare its 

performance with that of the UK after 

the country’s accession to the then 

EEC. But no credible control group, 

however ingenious the methodology, 

can be devised. So that approach falls 

at the first fence. 

Gravity models also suffer from serious 

drawbacks. Just as CGE models 

can’t capture the future, gravity models 

struggle to capture the past. One 

example is the extent to which the 

growth in UK export performance 

can be attributed to the EU, or simply 

to economic reforms in the 1980s. 

These issues are immensely 

half a billion people? That market is a 

key reason why US and Swiss banks 

trade here. It gives them easy access to 

EU markets and to a talent pool almost 

ten times the size of the UK’s alone. 

Businesses know how important EU 

membership is. A February CBI survey 

found that “uncertainty over the UK’s 

role in Europe” was the most commonly 

cited top concern for London’s 

businesses alongside “retaining our 

best talent”. 

The same is true of the growing fintech 

sector. London is now the largest 

fintech hub in the world by revenue 

and the second largest by 

employment. But a recent KPMG 

report for London First found that 

Brexit would jeopardise the UK’s role 

as a global leader. Reduced access to 

skilled EU staff and increased regulation 

are worrying the industry. Leave 

campaigners seem oblivious to these 

fears. 

Of course, London – and Britain – 

would still enjoy advantages if we vote 

to leave: our language, our inclusive 

culture, our incredible heritage and, 

despite all its problems, our world 

class education system. Companies tell 

me over and again these are reasons 

they choose to invest in Britain. But 

they are clear that, by leaving the EU, 

we would be throwing away another 

advantage – access to the European 

market, and through it access to the 

rest of the world. 

This vital “pull factor” disappears 

overnight if we walk away from the 

EU. London is stronger with Europe 

and Europe is stronger with London. 

£ Seema Malhotra is shadow chief 

secretary to the Treasury and Labour & 

Co-op MP for Feltham and Heston. 

The true impact of Brexit on the economy 

is far less certain than economists claim 

Graeme 

Leach 

important because the gravity and 

synthetic approaches produce big 

numbers for the potential losses from 

Brexit. Professor Nick Crafts, in his 

own review of the gravity and synthetic 

modelling literature, has suggested 

that UK GDP is 8.6 to 10.6 per 

cent higher because of EU membership. 

He compares this with a membership 

cost (direct fiscal 

contributions and regulatory costs) of 

around 1.5 per cent of GDP. If true, 

that’s a big gap and a big cost from 

Brexit. 

But the numbers could be wrong, 

very wrong. First, because of the 

extent to which the estimated benefits 

of trade are in fact attributable to 

other factors not captured in gravity 

models. Second, by examining the 

gains from EU trade, while ignoring 

the potential gains from trading at 

world prices. Finally, because the 

range of estimates for regulatory 

costs is actually vast, from zero to 6 

per cent of GDP. 

£ Graeme Leach is chief executive and 

chief economist of macronomics, a new 

consultancy to be launched on 4 July. 

DEBATE 

Chad 

Wilcox 

YES 

Kurt 

Schlichter 

NO 

CITYAM.COM 

Q: As North 

Korea hails him 

as wise and farsighted, 

does 

Donald Trump 

pose a threat to 

world peace? 

Donald Trump certainly poses a threat to 

world peace, though not for the reasons 

you might initially think. Libertarian 

political satirist PJ O’Rourke endorsed 

Hillary Clinton purely out of fear of 

Trump, warning, “they’ve got this button, 

you know? It’s in a briefcase. He’s gonna 

find it!”. But a rush to war is far from the 

most likely scenario. In fact, Clinton is the 

more interventionist candidate by some 

margin. What peace-loving people 

should fear in Trump is his abject, 

unapologetic, authoritarian opposition 

to free trade and free movement of 

labour. The former is the greatest engine 

of peace between countries the world 

has ever known; the latter is how people 

escape dangerous situations in search of 

a better life. It is not some alleged 

warmongering attitude, but rather 

Trump’s repeatedly stated authoritarian 

policies, that should inspire fear in all of 

us. The world could indeed be a darker 

place under his regime – particularly for 

the least advantaged among us. 

£ Chad Wilcox is chief operating officer at 

the Institute of Economic Affairs. 

While no particular fan of Donald Trump, 

the notion that his installation as 

president would usher in an 

unprecedented era of conflict and 

bloodshed would be amusing if the 

reality of today’s world was not so grave. 

In fact, it is the weakness and wilful 

blindness of liberal elites who refused to 

do what was necessary to achieve 

victory over Islamic fanaticism in Iraq 

and Afghanistan that has allowed those 

states to disintegrate – along with Syria, 

Libya, and much of Africa. The coddling 

of the Ayatollah guarantees a 

confrontation when Iran inevitably goes 

nuclear, while China and Russia seek to 

take advantage of the American 

leadership void. Trump merely 

exemplifies America’s Jacksonian streak, 

that of the patriotic folks who fight and 

die in our wars (as opposed to the 

liberals who start them), men and 

women willing to fight to defend their 

country as long as their lives are not 

wasted. He could hardly do any worse. 

£ Kurt Schlichter is an author, lawyer and 

retired US army colonel.

CITYAM.COM 


OPINION 

17 

WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum 

LETTERS 

TO THE EDITOR 

Cameron’s future 

as PM 

[Re: Cameron has damned himself with his 

shrill defence of a broken EU, yesterday] 

Alex Story’s post-referendum scenarios 

(which see David Cameron’s career 

destroyed in all but one) suit his case, but 

aren’t realistic. Even in the aftermath of a 

Leave vote, there will be a clamour for 

stability given that the government will then 

face the daunting task of renegotiating our 

relationship with the EU once again. Perhaps 

some Tory MPs will want Cameron gone 

immediately, and perhaps Jeremy Corbyn’s 

Labour will take tactical advantage to make 

life as uncomfortable for the Prime Minister 

as possible. But I suspect cooler heads will 

prevail, meaning that Cameron will stay on 

as Prime Minister until he decides to step 

down himself – probably in a couple of years’ 

time. He is still extremely popular, after all. 

Giles Cave 

The reason why Cameron and George 

Osborne have stuck with fear is because they 

are not authentic Europhiles. Many Brexit 

supporters seem to think that they are 

signed up members of the pro-European 

elite, but their past statements and their 

current attitude show that they merely 

believe that the risks of leaving the EU far 

outweigh the benefits of staying. There is no 

conspiracy of fake Eurosceptic MPs who are 

actually quiet agents of European 

integration, because there is nothing 

inconsistent about being unhappy with what 

the EU currently looks like and how it 

operates, and yet still wanting to stay in 

because you believe it is better than the 

alternative. The EU is capable of reform – if 

we stay in and push for it. 

Name withheld 

BEST OF 

TWITTER 

£834,000 wagered on 

Betfair’s EU ref market in 

past 24 hours – the second 

busiest yet. Remain down to 

74 per cent chance. 

@MSmithsonPB 

OECD is right to warn leaving 

Europe would have 

“negative consequences’ for 

our economy. That means 

lost jobs and higher prices. 

@David_Cameron 

Only 5 per cent of voters 

believe their standard of 

living would decrease a lot 

post-Brexit. 69 per cent say 

no change or better. 

@andrew_lilico 

The EU is on wrong side of 

history – time for central 

planning is long gone... 

future is about people 

power. 

@SteveHiltonx 

Europe’s biggest grand 

projet in decades to open – 

57km Gothard tunnel 

through Alps. Astonishing 

engineering, financing 

achievement by Swiss. 

@DenisMacShane 

Refugee deaths in 

Mediterranean. Jan 1 – May 

31 2015: 1,828. Jan 1 – May 

31, 2016: 2,443 (34 per cent 

increase). 

@ianbremmer 

You’re going to live longer than you 

think and the implications are huge 

WHAT is the most important 

number you can 

think of? Your bank balance? 

Your mortgage? US 

GDP or the FTSE 100? All 

of these are important but the one number 

you should be very focused on is a 

guess of your own life expectancy. Get 

that wrong and the chances are you will 

get a life that isn’t as good as it should 

be. It’s a crucial number for your 

finances, your education and your 

career. 

Thinking about your own mortality is 

hard for emotional reasons. Basing projections 

on your parents is also problematic 

given each generation on average 

lives longer than the previous. Over the 

last 200 years, life expectancy at birth 

has increased at a near constant rate of 

two to three years every decade. That 

means each generation on average lives 

around six to nine years longer than 

their parents. However there is debate 

about what all this means for the future. 

One group (let’s call them the “levellers”) 

argues that we can effectively 

expect no further increases. With the 

diseases of prosperity such as obesity 

and diabetes, we may even see this go 

into reverse. 

Another group (let’s call them the 

“extrapolators”) argues that the trend is 

set to continue due to major improvements 

in healthcare and survival rates 

for those 70 or older. According to this 

group, the trend is likely to continue, 

although possibly at a declining rate 

(the oldest person ever was Jeanne 

Calment who lived for an extraordinary 

122 years and 164 days). 

Finally, there are “the accelerators” 

who believe scientific knowledge is 

poised to make dramatic improvements 

such that soon people will live beyond 

the 120-year barrier, with some even 

Andrew 

Scott 

arguing that the first person to live to 

500 has already been born. 

If demographers and scientists tell us 

that our life expectancy is somewhere in 

the range of 80 to 500, what does government 

say? There are two ways of stating 

life expectancy – a period and a 

cohort measure. The period measure 

starts with the assumption that the levellers 

are correct, so that a child born in 

2014 in effect lives their whole life medically 

in 2014. In other words, when they 

reach 50 in 2064 they will have the same 

survival rates as a 50 year old in 2014. 

In contrast, the cohort measure 

assumes the extrapolators/accelerators 

are correct and projects forward gains in 

life expectancy. For the UK, we can compare 

the period estimates of 79.3 for a 

boy and 83 for a girl with the central 

projection for cohorts born in 2014 of 

90.4 and 93.2. The ONS also produces an 

“optimistic” scenario, more consistent 

with the past trend of life expectancy 

increasing two or three years every 10, of 

102 and 105. It’s worth stressing that 

these are average life expectancy numbers 

– because the median is now above 

the mean, it’s actually the case that for 

more than 50 per cent of people the 

number is even higher. 

So what does all this mean for you? 

Given the historical trend, you have a 

high chance of living six to nine years 

longer than your parents. As a result, 

children born today have a realistic 

:@cityam 

chance of living to more than 100 (more 

than a third according to the ONS). But 

basing guesses of life expectancy on that 

of your parents or published period estimates 

is likely to serve as an underestimate 

and leave you unprepared. That’s a 

problem governments face too given 

that long-term budget projections are 

made based on period and not cohort 

life expectancy. 

Given this potential longevity, much 

needs to change socially. A life designed 

for 70 and 80 years is not easily 

stretched to 100. How long you work for, 

who we consider to be young and who 

old, the age at which we start a career, 

get married, have children or get educated 

will change. All these are already 

changing and we can expect them to 

shift markedly in the future. 

The financial implications of a longer 

life are also substantial. It’s not just that 

we will need to work and/or save more 

but the products we will need will 

change. We will hit milestones at different 

ages and need new more flexible 

life-time products. There are also major 

risks to deal with, such as preparing 

ourselves for possible major future 

increases in life expectancy or 

protecting ourselves against the costs of 

longer periods of disability. 

Society has only just begun to adapt to 

these trend increases in longevity. 

Focusing on possible estimates of your 

own life expectancy, taking stock of your 

financial and non-financial assets, and 

actively engaging in life planning will 

be how each of us begins this process 

ourselves. 

£ Andrew Scott is a professor of economics 

at London Business School and co-author, 

with Lynda Gratton, of The 100-Year Life: 

Living and Working in an Age of Longevity, 

published by Bloomsbury Press today. 

Fountain House, 

3rd Floor, 130 Fenchurch Street, 

London, EC3M 5DJ 

Tel: 020 3201 8900 

Fax: 020 7248 2711 Email: news@cityam.com 

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01/05/16 is 96,489 

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Gold ............................................................1214.50 2.40 

Silver ..............................................................15.95 -0.11 

Brent Crude ...................................................49.73 -0.29 

Krugerrand................................................1205.60 -8.90 

Palladium....................................................542.00 -1.00 

Platinum......................................................977.00 -16.00 

Tin Cash Official .......................................15902.50 -285.00 

Lead Cash Official .......................................1673.75 -17.50 

Zinc Cash Official .......................................1906.25 -17.50 

Copper Cash Official .................................4600.50 -98.50 

Aluminium Cash Official ............................1543.75 -4.00 

Nickel Cash Official ....................................8322.50 -137.50 

Aluminium Alloy Cash Official...................1535.00 -5.00 

Cocoa Futures ...........................................3046.00 -13.00 

Coffee 'C' Futures .........................................122.00 0.40 

Feed Wheat Futures....................................106.00 -0.10 

Soybeans Futures Continuation Contract..1100.20 21.60 

AIR LIQUIDE......................................................96.83 0.30 123.65 90.77 

AIRBUS GROUP ................................................55.94 -0.08 68.50 49.96 

ALLIANZ N.......................................................145.70 -1.00 170.00 126.55 

ANHEUS.-BUSCH INBEV...................................114.40 0.55 124.20 87.73 

ASML HLDG ......................................................88.95 -0.45 102.30 70.25 

AXA ..................................................................22.39 -0.19 26.02 18.80 

BANCO SANTANDER ............................................4.17 -0.12 6.82 3.31 

BASF N .............................................................69.55 0.12 85.97 56.01 

BAYER N...........................................................86.25 0.62 138.00 83.45 

BBVA ..................................................................5.84 -0.12 9.17 5.12 

BMW.................................................................73.93 -1.96 105.45 66.00 

BNP PARIBAS-A-..............................................48.86 -0.91 61.00 37.00 

CARREFOUR .....................................................24.09 -0.27 31.41 21.62 

DAIMLER N .......................................................60.35 -1.04 87.63 56.19 

DANONE ...........................................................62.88 -0.20 66.50 51.73 

DEUTSCHE BANK N............................................15.65 -0.41 32.31 13.03 

DEUTSCHE POST N ............................................26.25 0.04 29.10 19.55 

DEUTSCHE TELEKOM N.......................................15.78 -0.09 16.98 12.94 

E.ON N................................................................8.56 -0.28 13.64 7.08 

ENEL...................................................................4.04 -0.04 4.45 3.33 

ENGIE ...............................................................13.55 -0.30 18.40 12.96 

ENI ....................................................................13.54 -0.19 16.99 10.93 

ESSILOR INTL....................................................118.25 0.90 123.92 94.08 

FRESENIUS........................................................67.50 -0.33 70.00 52.39 

GENERALI..........................................................12.96 -0.07 18.27 10.90 

IBERDROLA........................................................6.00 -0.10 6.60 5.55 

INDITEX ............................................................30.21 -0.15 35.38 26.00 

ING GROUP ........................................................11.03 -0.17 16.00 9.19 

INTESA SANPAOLO..............................................2.27 -0.04 3.65 2.12 

L'OREAL...........................................................168.25 -0.65 178.95 140.40 

LVMH ..............................................................144.40 0.35 176.60 130.75 

MUENCH RUECKVERS N....................................167.10 -1.75 193.65 154.65 

NOKIA.................................................................5.07 -0.07 7.11 4.52 

ORANGE ............................................................15.50 -0.12 16.98 12.21 

ROY.PHILIPS .....................................................24.08 -0.15 26.10 20.48 

SAFRAN............................................................62.34 -0.66 72.45 48.87 

SAINT GOBAIN..................................................39.96 -0.17 44.84 31.47 

SANOFI .............................................................73.47 -0.22 101.10 66.44 

SAP...................................................................72.62 -0.34 75.75 53.91 

SCHNEIDER ELECTRIC.........................................57.73 -0.38 69.07 45.32 

SIEMENS N .......................................................96.98 0.19 100.90 77.91 

SOCIETE GENERALE ...........................................36.16 -0.83 48.77 26.61 

TELEFONICA.........................................................9.19 -0.20 13.91 8.48 

TOTAL................................................................43.03 -0.65 45.30 34.71 

UNIBAIL-RODAMCO ........................................240.30 -1.60 257.85 212.05 

UNICREDIT..........................................................2.82 -0.05 6.37 2.67 

UNILEVER CERT................................................40.49 0.12 42.84 32.86 

VINCI ................................................................67.20 -0.39 68.29 50.08 

VIVENDI.............................................................17.67 -0.16 24.83 16.30 

VOLKSWAGEN VZ.............................................131.80 -2.55 222.85 86.36 

Price Chg High Low 

EU SHARES 

3M ..................................................................168.69 0.37 171.27 134.00 

ALPHABET-A ..................................................748.46 -0.39 810.35 538.85 

ALPHABET-C....................................................734.15 -1.57 789.87 515.18 

ALTRIA GROUP.................................................64.35 0.71 65.53 47.31 

AMAZON.COM .................................................719.44 -3.35 724.23 419.14 

AMERICAN EXPRESS .........................................65.91 0.15 81.92 50.27 

AMGEN ...........................................................158.05 0.10 181.81 130.09 

APPLE ..............................................................98.46 -1.40 132.97 89.47 

AT&T .................................................................38.73 -0.42 39.72 30.97 

BANK OF AMERICA ...........................................14.86 0.07 18.48 10.99 

BERKSHIRE HATHAWY-B.................................141.99 1.45 148.03 123.55 

BOEING CO.......................................................126.41 0.26 150.59 102.10 

BRISTOL-MYERSSQUIBB ....................................71.87 0.17 73.06 51.82 

CATERPILLAR....................................................72.27 -0.24 88.81 56.36 

CHEVRON .........................................................101.13 0.13 104.26 69.58 

CISCO SYSTEMS ................................................28.90 -0.15 29.49 22.46 

CITIGROUP ......................................................46.94 0.37 60.95 34.52 

COCA-COLA CO .................................................44.70 0.10 47.13 36.56 

COMCAST-A ......................................................63.73 0.43 64.99 50.01 

DU PONT NEMOURS&CO ..................................66.40 0.99 75.72 47.11 

EXXON MOBIL...................................................89.24 0.22 90.46 66.55 

FACEBOOK-A....................................................118.78 -0.03 121.08 72.00 

GENERAL ELECTRIC ............................................30.11 -0.12 32.05 19.37 

GILEAD SCIENCES .............................................86.58 -0.48 123.37 81.28 

GOLDMAN SACHS GROUP................................159.97 0.49 218.77 139.05 

HOME DEPOT ...................................................131.83 -0.29 137.82 92.17 

IBM ..................................................................152.51 -1.23 173.78 116.90 

INTEL ................................................................31.66 0.07 35.59 24.87 

JOHNSON & JOHNSON.....................................112.78 0.09 115.00 81.79 

JPMORGAN CHASE...........................................65.69 0.42 70.61 50.07 

MCDONALD'S ...................................................121.97 -0.09 131.96 87.50 

MEDTRONIC......................................................80.52 0.04 82.00 55.54 

MERCK..............................................................56.33 0.07 60.88 45.69 

MICROSOFT.......................................................52.85 -0.15 56.85 39.72 

NIKE -B-...........................................................54.93 -0.29 68.20 47.25 

ORACLE............................................................40.26 0.06 45.24 33.13 

PEPSICO...........................................................101.57 0.40 106.94 76.48 

PFIZER..............................................................34.75 0.05 36.46 28.25 

PHILIP MRRS INT .............................................99.40 0.72 102.55 76.54 

PROCTER&GAMBLE ...........................................81.79 0.75 83.87 65.02 

SCHLUMBERGER...............................................75.86 -0.44 92.47 59.60 

TRAVLR COMP..................................................114.84 0.70 118.28 95.21 

TWITTER ...........................................................15.02 -0.20 38.82 13.73 

UNITEDHEALTH GROUP ..................................134.53 0.86 135.11 95.00 

UTD TECHNOLOGIES........................................100.35 -0.23 119.12 83.39 

VERIZON COMM ...............................................50.43 -0.47 54.49 38.06 

VISA-A .............................................................79.22 0.28 81.73 60.00 

WAL-MART STORES..........................................70.50 -0.28 75.20 56.30 

WALT DISNEY-DISNEY......................................98.52 -0.70 122.08 86.25 

WELLS FARGO ..................................................51.00 0.28 58.77 44.50 

WILLIS TOWERS ..............................................128.07 0.05 130.97 104.11 

COMMODITIES 

CREDIT & RATES 

BoE IR Overnight.........................................0.500 0.00 

BoE IR 7 days..............................................0.500 0.00 

BoE IR 1 month...........................................0.500 0.00 

BoE IR 3 months.........................................0.500 0.00 

BoE IR 6 months ........................................0.500 0.00 

LIBOR Euro - overnight ..............................-0.397 0.00 

LIBOR Euro - 12 months .............................-0.033 0.00 

LIBOR USD - overnight ................................0.387 0.00 

LIBOR USD - 12 months.................................1.337 0.02 

Halifax mortgage rate ................................3.990 0.00 

Euro Base Rate ...........................................0.000 0.00 

Finance house base rate .............................1.000 0.00 

US Fed funds..................................................0.37 0.09 

US long bond yield........................................2.63 -0.01 

Euro Euribor...............................................-0.365 0.00 

The vix index................................................14.22 0.03 

The baltic dry index...................................612.00 6.00 

Markit iBoxx EUR ........................................227.51 0.08 

Markit iBoxx GBP.......................................304.09 1.85 

Markit iTraxx.................................................71.66 0.00 


US SHARES 

€/$ 1.1187 0.0058 

€/£ 0.7761 0.0075 

€/¥ 122.55 0.7031 

/€ 1.2887 0.0124 

/$ 1.4415 0.0066 

/¥ 157.91 2.4471 

FTSE 100 

6191.93 

38.86 

FTSE 250 

17061.47 

123.26 

FTSE ALL SHARE 

3407.91 

21.86 

DOW JONES 

17789.67 

2.47 

NASDAQ 

4952.25 

4.20 

S&P 500 

2099.33 

2.37 

CONSTRUCTION & MATERIALS 

BAE Systems . . . . . . . . .488.0 4.4 526.5 425.5 

Cobham . . . . . . . . . . . . .162.0 -1.0 306.4 150.0 

Meggitt . . . . . . . . . . . . .389.2 1.2 509.5 346.5 

QinetiQ Group . . . . . . . .243.2 -2.7 274.4 212.0 

Rolls-Royce Holdi . . . . .605.0 -14.0 987.0 512.5 

Senior . . . . . . . . . . . . . . .217.5 0.0 324.2 193.1 

Ultra Electronics . . . . .1738.0 5.0 2026.0 1635.0 

GKN . . . . . . . . . . . . . . . .276.2 1.3 372.0 248.6 

Aldermore Group . . . . . .211.3 -4.8 316.0 178.0 

Barclays . . . . . . . . . . . . .180.0 -2.5 289.0 146.6 

BGEO Group . . . . . . . . .2512.0 -2.0 2581.0 1570.0 

HSBC Holdings . . . . . . .444.9 -0.2 625.3 416.2 

Lloyds Banking Gr . . . . . .71.3 -0.7 88.9 56.0 

Royal Bank of Sco . . . . .239.6 -6.9 368.7 207.0 

Shawbrook Group . . . . .291.4 -3.6 380.6 256.2 

Standard Chartere . . . .522.3 -7.0 1041.3 386.7 

Virgin Money Hold . . . .361.0 -7.7 464.0 273.6 

Barr (A.G.) . . . . . . . . . . .538.5 1.0 633.0 487.4 

Britvic . . . . . . . . . . . . . .677.0 1.5 749.5 642.0 

Coca-Cola HBC AG . . .1348.0 5.0 1629.0 1255.0 

Diageo . . . . . . . . . . . . .1864.0 -6.5 1949.5 1640.0 

SABMiller . . . . . . . . . .4320.0 25.5 4320.0 2877.5 

Croda Internation . . . .2924.0 -16.0 3139.1 2657.7 

Elementis . . . . . . . . . . .207.8 -2.9 312.0 200.3 

Johnson Matthey . . . .2827.0 -57.0 3502.1 2230.0 

Synthomer . . . . . . . . . .359.7 -3.0 368.1 275.1 

Victrex plc . . . . . . . . . .1423.0 -20.0 2092.0 1367.0 

Balfour Beatty . . . . . . .240.0 -7.8 272.5 220.2 

CRH . . . . . . . . . . . . . . .2074.0 -1.0 2088.0 1637.0 

Brown (N.) Group . . . . .240.0 -9.0 389.1 233.8 

Card Factory . . . . . . . . .360.4 -10.7 399.0 314.4 

Debenhams . . . . . . . . . .70.8 -3.2 94.8 64.9 

DFS Furniture . . . . . . . . .291.5 -3.4 349.0 263.8 

Dignity . . . . . . . . . . . .2550.0 9.0 2621.0 2046.0 

Dixons Carphone . . . . .428.0 -12.0 500.0 407.0 

Dunelm Group . . . . . . .935.0 -19.5 1018.0 820.0 

Halfords Group . . . . . . .406.9 -31.7 561.0 315.0 

Home Retail Group . . . .162.8 -2.5 181.5 89.7 

Inchcape . . . . . . . . . . . .676.0 -5.0 865.0 662.5 

JD Sports Fashion . . . .1300.0 -14.0 1321.0 642.5 

Just Eat . . . . . . . . . . . . .448.2 -6.4 494.9 329.1 

Kingfisher . . . . . . . . . . .364.5 -2.7 383.0 314.7 

Lookers . . . . . . . . . . . . .144.0 -5.7 185.0 130.8 

Marks & Spencer G . . . .370.9 -8.8 581.0 366.4 

Next . . . . . . . . . . . . . .5295.0-145.0 8015.0 4978.0 

Pendragon . . . . . . . . . . .40.5 -0.6 49.0 33.2 

Pets at Home Grou . . . .259.8 -5.2 311.2 231.2 

Saga . . . . . . . . . . . . . . . .212.1 -2.9 221.5 173.9 

Sports Direct Int . . . . . .363.4 -11.5 817.5 348.0 

Ted Baker . . . . . . . . . .2410.0 -26.0 3555.0 2270.0 

WH Smith . . . . . . . . . . .1714.0 -37.0 1878.0 1476.0 

Assura . . . . . . . . . . . . . . .55.9 -0.2 61.8 49.2 

Mediclinic Intern . . . . . .883.5 17.0 1191.0 814.0 

NMC Health . . . . . . . . . .1147.0 -3.0 1175.0 700.0 

Galliford Try . . . . . . . . .1343.0 -44.0 1813.0 1262.0 

Ibstock . . . . . . . . . . . . . .201.2 -6.1 225.0 184.9 

Keller Group . . . . . . . . .937.0 -17.0 1099.0 728.5 

Kier Group . . . . . . . . . .1243.0 8.0 1513.0 1162.0 

Marshalls . . . . . . . . . . . .323.0 -2.9 370.8 264.6 

Polypipe Group . . . . . . .323.1 4.8 362.0 269.5 

Drax Group . . . . . . . . . .297.7 -11.3 390.0 207.6 

SSE . . . . . . . . . . . . . . . .1521.0 -11.0 1641.0 1321.0 

Halma . . . . . . . . . . . . . .948.0 0.0 956.8 713.0 

Morgan Advanced M . . .243.7 -5.9 356.8 192.3 

Renishaw . . . . . . . . . .1945.0 -13.0 2495.0 1600.0 

Spectris . . . . . . . . . . . .1660.0 -18.0 2322.0 1442.0 

Aberforth Smaller . . .1064.0 -7.0 1234.0 966.0 

Alliance Trust . . . . . . . . .519.5 -1.5 523.0 440.1 

Bankers Inv Trust . . . . .581.0 -3.0 668.0 522.0 

BH Macro Ltd. GBP . . .1948.0 -8.0 2103.0 1930.0 

British Empire Tr . . . . .466.0 3.8 532.5 412.0 

Caledonia Investm . . .2400.0 -10.0 2515.0 2112.0 

City of London In . . . . .379.0 -2.3 414.3 341.5 

Edinburgh Inv Tru . . . .693.0 -3.0 728.0 636.5 

Electra Private E . . . . .3830.0 7.0 3955.0 3140.0 

Fidelity China Sp . . . . . .138.0 1.6 173.0 110.5 

Fidelity European . . . . .168.2 -1.0 186.7 152.0 

Finsbury Growth & . . . .597.5 -0.5 610.5 532.5 

Foreign and Colon . . . .439.9 -0.5 456.4 391.2 

GCP Infrastructur . . . . . .119.0 -1.5 123.9 114.5 

Genesis Emerging . . . .486.0 2.4 540.0 400.5 

HarbourVest Globa . . .943.0 0.0 1377.5 825.0 

HICL Infrastructu . . . . . .161.7 -1.0 165.3 150.2 

Highbridge Multi- . . . . .180.5 0.5 197.2 180.0 

International Pub . . . . .146.3 0.1 147.7 130.3 

John Laing Infras . . . . . .122.1 -0.7 126.2 114.0 

JPMorgan American . .290.6 -0.7 299.0 243.0 

JPMorgan Emerging . . .573.0 7.0 607.5 483.0 

Mercantile Invest . . . .1708.0 -7.0 1838.0 1546.0 

Monks Inv Trust . . . . . . .421.6 0.9 443.5 361.1 

Murray Internatio . . . . .932.0 -6.0 1041.0 742.5 

NB Global Floatin . . . . . .92.9 0.1 98.7 84.6 

P2P Global Invest . . . . .873.0 3.0 1095.0 832.0 

Perpetual Income . . . . .376.1 -2.1 428.5 363.8 

Personal Assets T . . .36900.0 0.0 37590.033130.0 

Polar Capital Tec . . . . . .599.0 4.5 641.0 503.5 

RIT Capital Partn . . . . .1566.0 -14.0 1690.0 1436.0 

Riverstone Energy . . . .867.5 2.5 1060.0 720.0 

Scottish Inv Trus . . . . . .618.0 2.0 665.0 544.5 

Scottish Mortgage . . . .262.5 0.1 280.8 220.6 

Temple Bar Inv Tr . . . .1054.0 -1.0 1220.0 940.0 

Templeton Emergin . . .455.5 8.5 544.0 371.5 

The Renewables In . . . . .97.3 -0.7 108.8 94.8 

TR Property Inv T . . . . . .299.1 -3.1 314.9 260.2 

Witan Inv Trust . . . . . . .753.0 4.0 830.0 683.0 

Woodford Patient . . . . .96.7 -0.5 119.3 85.0 

Worldwide Healthc . .1806.0 19.0 2097.0 1596.0 

3i Group . . . . . . . . . . . .546.5 -15.0 569.5 389.8 

3i Infrastructure . . . . . . .170.2 -0.5 180.5 163.6 

Aberdeen Asset Ma . . .270.0 -9.1 441.1 209.3 

Allied Minds . . . . . . . . .326.4 -4.2 615.5 267.0 

Arrow Global Grou . . . .264.8 -1.5 288.0 206.3 

Ashmore Group . . . . . .286.2 -4.5 333.9 196.4 

Brewin Dolphin Ho . . . .254.2 -3.8 330.7 244.0 

Charles Taylor . . . . . . . .256.0 -9.0 289.0 220.0 

City of London In . . . . .308.0 -7.0 367.5 285.0 

Close Brothers Gr . . . . .1327.0 -11.0 1642.0 1167.0 

Hargreaves Lansdo . . .1327.0 -22.0 1525.0 1054.0 

Henderson Group . . . . .258.6 -9.5 312.0 214.6 

ICAP . . . . . . . . . . . . . . . .421.1 -10.9 563.0 401.0 

IG Group Holdings . . . .794.0 -5.5 819.5 690.0 

Intermediate Capi . . . .659.5 -8.0 671.0 505.5 

International Per . . . . .276.5 -1.5 498.0 219.0 

Investec . . . . . . . . . . . . .471.3 2.5 621.0 402.7 

IP Group . . . . . . . . . . . . .167.9 -0.5 259.1 151.9 

John Laing Group . . . . .219.3 -3.7 233.8 187.0 

Jupiter Fund Mana . . . .434.9 -7.3 475.1 362.7 

Liontrust Asset M . . . . .270.0 -7.0 374.8 245.3 

LMS Capital . . . . . . . . . . .61.5 -2.0 80.0 61.0 

London Finance & . . . . .37.0 0.0 40.5 34.0 

London Stock Exch . . .2698.0 -37.0 2906.0 2123.0 

Man Group . . . . . . . . . . .131.4 -0.5 182.6 128.6 

OneSavings Bank . . . . .328.5 -3.1 405.6 245.9 

Paragon Group Of . . . .305.9 -3.3 444.8 287.1 

Provident Financi . . . .2873.0 -39.0 3634.0 2697.0 

PureTech Health . . . . . .126.0 0.0 170.5 120.0 

Rathbone Brothers . . .1902.0 -28.0 2359.0 1881.0 

Real Estate Credi . . . . . .160.5 -3.3 183.0 152.3 

Record . . . . . . . . . . . . . . .24.5 0.0 39.8 22.1 

S&U . . . . . . . . . . . . . . .2297.5 -27.5 2560.0 1992.5 

Sanne Group . . . . . . . .430.0 -1.0 448.3 251.0 

Schroders . . . . . . . . . .2661.0 -49.0 3367.0 2342.0 

SVG Capital . . . . . . . . . .535.0 -2.5 541.0 436.0 

Tullett Prebon . . . . . . . .332.2 -3.8 414.8 304.8 

VPC Specialty Len . . . . . .87.0 0.3 104.0 84.5 

Walker Crips Grou . . . . .46.3 0.0 53.8 41.3 

BT Group . . . . . . . . . . . .431.2 -11.7 499.8 404.0 

TalkTalk Telecom . . . . .238.9 -1.3 408.8 189.5 

Telecom Plus . . . . . . . .1016.0 -16.0 1214.0 792.0 

Booker Group . . . . . . . . .181.2 -0.8 190.0 149.4 

Greggs . . . . . . . . . . . . .1129.0 2.0 1355.0 969.0 

Morrison (Wm) Sup . . .196.5 -1.7 209.4 139.0 

Ocado Group . . . . . . . . .270.8 0.3 470.8 232.5 

Sainsbury (J) . . . . . . . .256.9 -11.6 292.5 223.7 

SSP Group . . . . . . . . . . .318.2 1.2 325.0 264.0 

Tesco . . . . . . . . . . . . . . .167.0 1.9 223.7 139.2 

UDG Healthcare Pu . . . .593.0 1.0 625.0 460.3 

Associated Britis . . . . .2928.0 -16.0 3599.0 2870.0 

Cranswick . . . . . . . . . .2333.0 15.0 2538.0 1536.0 

Dairy Crest Group . . . . .544.0 -6.5 697.0 517.0 

Greencore Group . . . . .339.4 -5.3 392.4 273.2 

Tate & Lyle . . . . . . . . . .633.0 4.5 636.5 502.0 

Unilever . . . . . . . . . . . .3177.5 31.5 3331.0 2524.0 

Mondi . . . . . . . . . . . . . .1327.0 -19.0 1611.0 1124.0 

Centrica . . . . . . . . . . . .202.0 -1.8 283.0 183.6 

National Grid . . . . . . . .1005.5 -1.5 1011.5 817.2 

Pennon Group . . . . . . .856.0 -7.0 896.5 713.0 

Severn Trent . . . . . . . .2264.0 -28.0 2297.0 2024.0 

United Utilities . . . . . . .955.0 -15.0 998.5 828.0 

Rexam . . . . . . . . . . . . .630.5 2.0 637.0 517.0 

RPC Group . . . . . . . . . . .802.5 -3.0 810.0 572.8 

Smith (DS) . . . . . . . . . .386.5 -2.2 421.0 331.2 

Smiths Group . . . . . . . .1119.0 -3.0 1215.0 863.5 

Vesuvius . . . . . . . . . . . . .335.1 -9.7 437.5 270.6 

AA . . . . . . . . . . . . . . . . .284.7 -3.3 419.3 249.1 

AO World . . . . . . . . . . . .168.0 -2.0 189.3 119.7 

Auto Trader Group . . . .393.6 0.6 449.6 287.3 

B&M European Valu . . .305.5 -5.5 358.5 247.7 


Smith & Nephew . . . . .1176.0 4.0 1212.0 1051.0 

Spire Healthcare . . . . .354.2 3.6 401.6 279.9 

Barratt Developme . . . .573.5 -18.5 662.5 499.6 

Bellway . . . . . . . . . . . .2645.0 -88.0 2848.0 2233.0 

Berkeley Group Ho . . .3180.0 -95.0 3757.0 2847.0 

Bovis Homes Group . . .984.0 -26.0 1201.0 819.0 

Crest Nicholson H . . . . .575.5 -12.5 604.0 467.9 

McCarthy & Stone . . . . .236.8 -0.7 287.0 207.0 

Persimmon . . . . . . . . .2038.0 -64.0 2219.0 1782.0 

Reckitt Benckiser . . . .6873.0 -2.0 6974.0 5488.0 

Redrow . . . . . . . . . . . . .408.3 -12.5 499.2 358.5 

Taylor Wimpey . . . . . . .197.7 -7.7 210.3 168.8 

Bodycote . . . . . . . . . . .596.0 -13.5 770.0 494.0 

IMI . . . . . . . . . . . . . . . . .991.5 -13.5 1262.0 742.0 

Melrose Industrie . . . . .394.0 9.7 396.9 242.8 

Rotork . . . . . . . . . . . . . .195.2 -1.5 258.0 152.7 

Spirax-Sarco Engi . . . .3457.0 7.0 3651.0 2725.0 

Weir Group . . . . . . . . . .1172.0 -27.0 1975.0 787.5 

Evraz . . . . . . . . . . . . . . . .113.3 2.3 168.7 56.2 

4Imprint Group . . . . . .1327.0 -37.0 1377.0 1046.0 

Bloomsbury Publis . . . .163.8 0.3 180.0 144.3 

Centaur Media . . . . . . . .52.0 0.8 85.5 48.3 

Creston . . . . . . . . . . . . . .91.0 0.0 162.0 89.0 

Entertainment One . . . .178.8 -6.3 326.3 130.0 

Euromoney Institu . . . .930.0 20.0 1230.0 855.0 

Future . . . . . . . . . . . . . . . .8.9 0.0 11.5 8.2 

Haynes Publishing . . . .100.0 1.0 130.5 99.0 

Huntsworth . . . . . . . . . .45.0 0.0 49.3 35.0 

Informa . . . . . . . . . . . . .682.5 2.5 712.0 534.0 

ITE Group . . . . . . . . . . . .138.3 -2.5 193.8 128.8 

ITV . . . . . . . . . . . . . . . . .210.7 -4.1 280.7 204.6 

Johnston Press . . . . . . . .35.0 -0.8 159.8 35.0 

Moneysupermarket. . . .331.0 0.3 377.1 273.1 

Pearson . . . . . . . . . . . .848.0 9.5 1304.0 657.5 

Relx plc . . . . . . . . . . . .1262.0 12.0 1319.0 1011.0 

Rightmove . . . . . . . . .4215.0 -9.0 4259.0 3154.0 

Sky . . . . . . . . . . . . . . . .950.5 -13.0 1141.0 921.0 

STV Group . . . . . . . . . . .366.8 -3.3 515.0 345.0 

Trinity Mirror . . . . . . . . .120.0 -0.3 182.8 111.5 

UBM . . . . . . . . . . . . . . . .590.5 1.5 605.5 469.6 

Wireless Group . . . . . . .179.3 -0.3 199.0 135.4 

WPP . . . . . . . . . . . . . . .1590.0 -2.0 1678.0 1304.0 

Zoopla Property G . . . . .313.7 -11.3 337.8 199.3 

BBA Aviation . . . . . . . . .201.2 -1.4 236.2 150.2 

Clarkson . . . . . . . . . . .2294.0 40.0 2797.0 1722.0 

Royal Mail . . . . . . . . . . .529.5 -11.5 544.0 413.3 

Admiral Group . . . . . . .1974.0 6.0 1983.0 1385.0 

Beazley . . . . . . . . . . . . .366.2 1.1 398.9 295.6 

Direct Line Insur . . . . . .375.0 -0.3 414.3 333.1 

esure Group . . . . . . . . .285.3 1.1 290.0 223.7 

Hastings Group Ho . . . .181.0 -0.9 187.7 149.8 

Hiscox Limited (D . . . . .982.0 -1.5 1061.0 832.0 

Jardine Lloyd Tho . . . . .915.0 -8.5 1063.0 778.0 

Lancashire Holdin . . . .556.0 -12.5 759.0 519.0 

RSA Insurance Gro . . . .490.2 0.2 526.5 373.2 

Aviva . . . . . . . . . . . . . . .443.7 -6.1 535.5 400.5 

JRP Group . . . . . . . . . . .140.0 -3.0 199.5 119.4 

Legal & General G . . . . .235.8 -3.6 276.3 199.5 

Old Mutual . . . . . . . . . . .178.1 0.0 229.1 149.4 

Phoenix Group Hol . . . .871.5 -8.5 943.5 784.5 

Prudential . . . . . . . . . .1350.0 -30.0 1634.0 1087.0 

St James's Place . . . . . .915.0 -12.5 1023.0 801.0 

Standard Life . . . . . . . .334.9 -4.2 484.0 314.7 

Acacia Mining . . . . . . . .310.5 5.0 351.8 156.6 

Anglo American . . . . . .592.1 -8.0 1048.5 221.1 

Antofagasta . . . . . . . . . .415.7 -13.3 766.5 346.1 

BHP Billiton . . . . . . . . . .807.1 -15.9 1383.5 580.9 

Centamin (DI) . . . . . . . . .98.9 2.5 121.5 53.6 

Fresnillo . . . . . . . . . . . .1032.0 23.0 1160.0 588.0 

Glencore . . . . . . . . . . . .128.9 -2.2 289.0 68.6 

Kaz Minerals . . . . . . . . .143.8 -0.6 255.3 72.7 

Polymetal Interna . . . .830.5 19.5 832.0 427.1 

Randgold Resource . .5845.0 45.0 6860.0 3625.0 

Rio Tinto . . . . . . . . . . .1868.0 -74.5 2902.0 1577.5 

Vedanta Resources . . . .375.0 -1.5 603.5 205.8 

Inmarsat . . . . . . . . . . . .705.0 -14.5 1148.0 701.5 

Vodafone Group . . . . . .229.5 -1.4 254.6 200.2 

BP . . . . . . . . . . . . . . . . .353.6 -3.7 450.0 310.3 

Cairn Energy . . . . . . . . .196.4 1.5 231.5 127.2 

Ophir Energy . . . . . . . . .70.9 -0.8 135.4 65.1 

Royal Dutch Shell . . . .1666.0 8.5 1938.0 1266.0 

Royal Dutch Shell . . . .1664.0 3.5 1952.0 1277.5 

Tullow Oil . . . . . . . . . . .230.9 0.4 397.7 118.2 

Amec Foster Wheel . . .430.9 -5.9 915.0 327.6 

Petrofac Ltd. . . . . . . . . .777.0 -1.0 982.0 663.0 

Wood Group (John) . . . .617.5 1.5 720.5 534.5 

Burberry Group . . . . . .1070.0 -4.0 1699.0 1064.0 

Jimmy Choo . . . . . . . . . .116.1 -3.9 181.4 106.0 

PZ Cussons . . . . . . . . . . .344.1 -6.1 370.0 249.3 

Supergroup . . . . . . . . .1375.0 -19.0 1714.0 1130.0 

AstraZeneca . . . . . . . .4015.5 -12.5 4627.5 3798.5 

BTG . . . . . . . . . . . . . . . .677.0 -2.0 707.5 520.5 

Circassia Pharmac . . . . .267.0 -2.0 353.5 254.5 

Dechra Pharmaceut . .1169.0 -8.0 1228.0 912.0 

Genus . . . . . . . . . . . . .1506.0 -9.0 1620.0 1281.0 

GlaxoSmithKline . . . . .1447.5 2.5 1510.0 1237.5 

Hikma Pharmaceuti . .2308.0 10.0 2490.0 1704.0 

Indivior . . . . . . . . . . . . .170.2 -1.7 266.4 130.8 

Shire Plc . . . . . . . . . . .4380.0 120.0 5730.0 3480.0 

Vectura Group . . . . . . . .163.3 -1.1 188.5 146.6 

Capital & Countie . . . . .342.8 0.5 473.4 314.9 

CLS Holdings . . . . . . . .1599.0 -9.0 2009.0 1381.0 

Countrywide . . . . . . . . .370.0 0.0 595.5 313.3 

Daejan Holdings . . . .6020.0 -60.0 6595.0 5400.0 

F&C Commercial Pr . . . .127.3 -0.2 148.7 124.8 

Grainger . . . . . . . . . . . . .241.3 -2.9 254.0 203.9 

Kennedy Wilson Eu . . .1061.0 -24.0 1220.0 995.0 

Savills . . . . . . . . . . . . . .778.0 0.5 986.5 653.0 

St. Modwen Proper . . . .324.4 -2.1 493.6 287.5 

UK Commercial Pro . . . .82.5 -0.8 91.5 78.1 

Unite Group . . . . . . . . .652.5 -4.0 702.5 571.5 

Big Yellow Group . . . . .834.5 0.5 886.5 620.0 

British Land Comp . . . . .731.5 -8.5 877.0 644.5 

Derwent London . . . .3250.0 -42.0 3880.0 2916.0 

Great Portland Es . . . . . .741.5 -9.5 889.5 684.5 

Hammerson . . . . . . . . .567.5 -11.5 685.5 535.0 

Hansteen Holdings . . . .103.2 -1.5 124.4 99.8 

Intu Properties . . . . . . .296.6 -3.1 353.2 269.8 

Land Securities G . . . . .1145.0 -21.0 1352.0 967.0 

LondonMetric Prop . . . .158.0 -6.5 171.5 153.0 

Redefine Internat . . . . . .45.0 -0.3 57.5 41.9 

SEGRO . . . . . . . . . . . . . .435.4 -2.5 463.8 398.2 

Shaftesbury . . . . . . . . .909.0 -9.0 971.0 813.0 

Tritax Big Box Re . . . . . .138.1 0.6 138.3 112.2 

Workspace Group . . . .859.0 -8.5 987.0 713.0 

Aveva Group . . . . . . . .1614.0 0.0 2319.0 1237.0 

Computacenter . . . . . . .839.5 -9.0 879.0 705.0 

Fidessa Group . . . . . . .2358.0 -8.0 2522.0 1758.0 

Micro Focus Inter . . . . .1631.0 1.0 1634.0 1175.0 

NCC Group . . . . . . . . . . .286.0 -2.7 324.1 208.0 

Playtech . . . . . . . . . . . .839.0 -10.5 924.0 710.5 

Sage Group . . . . . . . . . .612.5 -0.5 636.5 489.7 

Softcat . . . . . . . . . . . . . .359.7 5.8 359.7 280.0 

Sophos Group . . . . . . . .207.1 -2.9 289.7 176.2 

Aggreko . . . . . . . . . . . .1120.0 -4.0 1562.0 770.0 

Ashtead Group . . . . . . .961.0 -15.0 1158.0 769.0 

Atkins (WS) . . . . . . . . .1347.0 3.0 1656.0 1158.0 

Babcock Internati . . . .1030.0 -7.0 1145.0 854.0 

Berendsen . . . . . . . . . .1228.0 20.0 1235.0 969.0 

Bunzl . . . . . . . . . . . . . .2039.0 -5.0 2094.0 1671.0 

Capita . . . . . . . . . . . . .1053.0 -11.0 1326.0 990.0 

Carillion . . . . . . . . . . . . .273.1 -4.2 362.4 245.4 

DCC . . . . . . . . . . . . . . .6360.0 70.0 6695.0 4620.0 

Diploma . . . . . . . . . . . .750.0 4.0 835.0 608.0 

Electrocomponents . . .286.7 2.9 289.7 172.5 

Essentra . . . . . . . . . . . .822.5 -7.5 1029.0 673.5 

Experian . . . . . . . . . . .1293.0 -13.0 1306.0 1022.0 

G4S . . . . . . . . . . . . . . . . .185.4 -1.5 297.0 181.0 

Grafton Group Uni . . . .720.0 -19.0 834.5 619.5 

Hays . . . . . . . . . . . . . . . .135.5 -0.6 172.8 113.4 

Homeserve . . . . . . . . .490.0 0.0 493.4 363.2 

Howden Joinery Gr . . .504.0 -3.0 531.0 444.5 

Interserve . . . . . . . . . . . .331.1 -3.1 663.0 298.3 

Intertek Group . . . . . . .3155.0 18.0 3349.0 2323.0 

Michael Page Inte . . . . .393.5 -3.5 560.5 359.0 

Mitie Group . . . . . . . . . .283.7 2.0 335.6 245.7 

Northgate . . . . . . . . . . .393.9 -0.5 633.0 323.0 

PayPoint . . . . . . . . . . . .940.0 12.0 1091.0 720.0 

Paysafe Group . . . . . . . .410.3 -1.7 432.4 219.0 

Regus . . . . . . . . . . . . . . .314.2 -1.5 354.6 248.6 

Rentokil Initial . . . . . . . .177.9 -2.2 182.1 141.0 

Serco Group . . . . . . . . . .107.6 0.8 138.5 76.8 

SIG . . . . . . . . . . . . . . . . .131.8 -2.4 209.5 119.0 

Travis Perkins . . . . . . .1868.0 -55.0 2260.0 1680.0 

Wolseley . . . . . . . . . . .3828.0-223.0 4384.0 3230.0 

Worldpay Group (W . . .276.5 -0.6 316.8 255.9 

ARM Holdings . . . . . . . .978.0 -9.0 1148.0 848.5 

Laird . . . . . . . . . . . . . . .354.4 0.9 409.5 316.5 

British American . . . . .4167.0 -31.0 4281.0 3355.5 

Imperial Brands . . . . .3732.0 -29.0 3863.0 2991.0 

Carnival . . . . . . . . . . . .3382.0 -27.0 3907.0 2957.0 

Cineworld Group . . . . . .567.0 3.5 597.0 455.6 

Compass Group . . . . . .1295.0 8.0 1308.0 991.0 

Domino's Pizza Gr . . . .1041.0 -14.0 1095.0 764.0 

easyJet . . . . . . . . . . . .1508.0 -25.0 1808.0 1416.0 

FirstGroup . . . . . . . . . . .106.2 -1.9 127.7 80.8 

Go-Ahead Group . . . .2542.0 -23.0 2713.0 2151.0 

Greene King . . . . . . . . .879.0 -13.0 977.5 772.0 

InterContinental . . . .2625.0 -36.0 2939.8 2192.8 

International Con . . . . .525.5 -10.0 614.5 475.3 

Ladbrokes . . . . . . . . . . .135.6 0.0 140.0 93.4 

Marston's . . . . . . . . . . . .152.0 -0.7 176.0 143.3 

Merlin Entertainm . . . . .416.1 -6.5 466.8 365.9 

Millennium & Copt . . . .419.5 -19.2 587.0 379.0 

Mitchells & Butle . . . . . .289.4 -0.9 475.3 256.0 

National Express . . . . .338.2 -1.0 349.3 272.4 

Paddy Power Betfa . .9230.0 65.0 14275.0 7560.0 

Rank Group . . . . . . . . .250.0 -3.2 295.5 213.0 

Restaurant Group . . . . .348.7 -17.5 723.5 273.6 

Stagecoach Group . . . .256.2 -2.0 419.6 247.9 

Thomas Cook Group . . . .72.8 -3.6 146.8 72.5 

TUI AG Reg Shs (D . . . .1038.0 -19.0 1271.0 975.0 

Wetherspoon (J.D. . . . .723.5 -26.5 800.0 609.0 

Whitbread . . . . . . . . . .4164.0 -48.0 5275.0 3649.0 

William Hill . . . . . . . . . .307.3 -3.8 423.5 301.6 

Wizz Air Holdings . . . .1927.0 -8.0 2047.0 1538.0 

4D Pharma . . . . . . . . . .855.0 -10.0 1012.5 740.0 

Abcam . . . . . . . . . . . . .645.5 5.0 682.5 499.0 

Advanced Medical . . . .198.0 -1.3 202.3 137.3 

Alternative Netwo . . . .332.0 4.5 541.0 282.0 

Amerisur Resource . . . . .27.3 0.3 38.8 17.3 

Arbuthnot Banking . . .1562.5 -13.0 1625.0 1265.0 

ASOS . . . . . . . . . . . . . .3474.0 -22.0 3970.0 2473.0 

Brooks Macdonald . . .1751.5 -3.5 2040.0 1682.0 

Camellia . . . . . . . . . . .8025.0 -85.0 9800.0 7904.0 

Clinigen Group . . . . . . .553.0 -2.0 761.0 510.5 

Conviviality . . . . . . . . .206.5 -1.5 238.0 143.5 

CVS Group . . . . . . . . . . .804.0 -3.5 840.0 599.5 

Dart Group . . . . . . . . . .637.0 -11.5 676.5 395.0 

EMIS Group . . . . . . . . .1048.0 -14.0 1155.0 871.5 

Fevertree Drinks . . . . . .729.5 -0.5 746.6 280.0 

First Derivatives . . . . .2007.5 -7.5 2113.0 1290.0 

Gamma Communicati .444.3 -2.3 463.0 268.5 

GB Group . . . . . . . . . . .304.8 4.8 304.8 202.5 

Gemfields . . . . . . . . . . . .41.6 -0.1 68.3 35.5 

Gooch & Housego . . . . .914.5 0.0 935.0 772.0 

GW Pharmaceutical . . .520.0 -21.0 696.0 211.5 

Iomart Group . . . . . . . .265.0 -6.0 307.5 214.0 

James Halstead . . . . . .410.0 -4.0 520.0 373.5 

Johnson Service G . . . . .99.3 0.3 99.3 84.0 

M&C Saatchi . . . . . . . . .338.0 0.0 370.0 282.8 

M. P. Evans Group . . . . .403.5 -8.5 445.9 345.5 

Majestic Wine . . . . . . . .464.3 -7.8 478.3 296.0 

Mulberry Group . . . . . .1037.5 3.5 1043.8 883.8 

Nichols . . . . . . . . . . . . .1417.0 6.0 1492.0 1119.0 

Numis Corporation . . . .224.3 3.3 276.3 198.8 

Pan African Resou . . . . . .14.3 0.0 15.8 6.3 

Patisserie Holdin . . . . .360.0 3.3 450.0 297.0 

Pinewood Group . . . . . .551.5 6.5 580.0 419.9 

Polar Capital Hol . . . . . .319.8 -7.3 479.5 317.3 

Purplebricks Grou . . . . .137.3 -12.8 175.0 73.0 

Redcentric . . . . . . . . . . .198.0 -5.3 203.3 158.0 

Redde . . . . . . . . . . . . . .168.8 3.3 210.3 124.0 

Renew Holdings . . . . . .359.8 9.3 410.0 301.5 

RWS Holdings . . . . . . . .231.0 11.0 245.0 119.5 

Scapa Group . . . . . . . . .274.3 -5.3 280.0 179.3 

Secure Trust Bank . . .2600.0 -15.0 3385.0 2600.0 

Sirius Minerals . . . . . . . . .19.8 0.0 23.0 10.8 

Smart Metering Sy . . . .425.0 6.3 433.0 305.5 

Staffline Group . . . . . .1093.0 -7.0 1623.0 1055.0 

Telford Homes . . . . . . .366.0 -5.3 490.5 315.8 

Telit Communicati . . . . .221.3 -5.0 356.0 178.3 

Thorpe (F.W.) . . . . . . . . .237.5 -0.5 244.5 169.5 

Vernalis plc . . . . . . . . . . .45.0 -0.6 86.5 43.0 

Vertu Motors . . . . . . . . . .56.0 -2.3 78.5 55.4 

Young & Co's Brew . . .1228.0 -7.0 1310.0 1075.0 

Young & Co's Brew . . . .945.5 0.0 955.0 792.5 

Shire Plc . . . . . . . . . . . . . . . . . .4380.0 2.8 

Centamin (DI) . . . . . . . . . . . . . . .98.9 2.6 

Melrose Industries . . . . . . . . . . .394.0 2.5 

Polymetal Internat . . . . . . . . . .830.5 2.4 

Fresnillo . . . . . . . . . . . . . . . . . .1032.0 2.3 

Euromoney Institut . . . . . . . . . .930.0 2.2 

Evraz . . . . . . . . . . . . . . . . . . . . . . .113.3 2.1 

Mediclinic Interna . . . . . . . . . . .883.5 2.0 

Templeton Emerging . . . . . . . . .455.5 1.9 

Clarkson . . . . . . . . . . . . . . . . . .2294.0 1.8 

Halfords Group . . . . . . . . . . . . .406.9 -7.2 

Wolseley . . . . . . . . . . . . . . . . . .3828.0 -5.5 

Restaurant Group . . . . . . . . . . . .348.7 -4.8 

Thomas Cook Group . . . . . . . . . . .72.8 -4.7 

Millennium & Copth . . . . . . . . . .419.5 -4.4 

Sainsbury (J) . . . . . . . . . . . . . . .256.9 -4.3 

Debenhams . . . . . . . . . . . . . . . . .70.8 -4.3 

LondonMetric Prope . . . . . . . . . .158.0 -4.0 

Rio Tinto . . . . . . . . . . . . . . . . . .1868.0 -3.8 

Lookers . . . . . . . . . . . . . . . . . . . .144.0 -3.8 

Risers 

Fallers 

MAIN CHANGES UK 350 

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 

Price Chg High Low Price Chg High Low 

GILTS 

http://corporate.webfg.com 

mailto: 

globaltechsales@webfg.com 

% 

% 

AUTOMOBILES & PARTS 

AEROSPACE & DEFENCE 

BANKS 

BEVERAGES 

CHEMICALS 

CONSTRUCTION & MATERIALS 

ELECTRICITY 

ELECTRONIC & ELECTRICAL EQ. 

EQUITY INVESTMENT INSTRUM. 

FINANCIAL SERVICES 

FIXED LINE TELECOMS 

FOOD & DRUG RETAILERS 

FOOD PRODUCERS 

FORESTRY & PAPER 

GAS, WATER & MULTIUTILITIES 

GENERAL INDUSTRIALS 

HEALTH CARE EQUIPMETN & S. 

OIL & GAS PRODUCERS 

OIL EQUIPMENT & SERVICES 

PERSONAL GOODS 

PHARMACEUTICALS & BIOTECH 

REAL ESTATE INVEST. & SERV. 

REAL ESTATE INVEST. TRUSTS 

SUPPORT SERVICES 

TECHNOLOGY HARDW. & EQUIP. 

TOBACCO 

TRAVEL & LEISURE 

AIM 50 

Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5 

Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6 

Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7 

Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3 

Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3 

Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1 

Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7 

Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0 

Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2 

Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5 

Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4 

Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7 

Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4 

Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1 

Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5 

Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4 

Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1 

Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0 

Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9 

Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3 

Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4 

Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7 

Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7 

Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6 

Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4 

Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2 

Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1 

Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6 

Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3 

Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4 

Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9 

INDUSTRIAL METALS & MINING 

GENERAL RETAILERS 

WORLD INDICES 

FTSE 100. . . . . . . . . . . . . . . . . . . . . . 6191.93 -38.86 -0.62 

FTSE 250 . . . . . . . . . . . . . . . . . . . . 17061.47 -123.26 -0.72 

FTSE All-Share . . . . . . . . . . . . . . . . 3407.91 -21.86 -0.64 

FTSE AIM All-Share . . . . . . . . . . . . . . 737.16 -2.34 -0.32 

S&P 500 . . . . . . . . . . . . . . . . . . . . . 2099.33 2.37 0.11 

Dow Jones I.A. . . . . . . . . . . . . . . . 17789.67 2.47 0.01 

Nasdaq Composite . . . . . . . . . . . . 4952.25 4.20 0.08 

Xetra DAX . . . . . . . . . . . . . . . . . . . 10204.44 -58.30 -0.57 

CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4475.39 -30.23 -0.67 

Swiss Market Index . . . . . . . . . . . . 8185.53 -30.89 -0.38 

ISEQ Overall Index . . . . . . . . . . . . . 6435.74 -57.72 -0.89 

FTSEurofirst 300 . . . . . . . . . . . . . . . 1350.34 -12.29 -0.90 

Hang Seng. . . . . . . . . . . . . . . . . . 20760.98 -54.11 -0.26 

Shanghai Composite . . . . . . . . . . . 2913.51 -3.11 -0.11 

Straits Times . . . . . . . . . . . . . . . . . 2790.54 -0.52 -0.02 

ASX All Ordinaries . . . . . . . . . . . . . 5395.20 -52.60 -0.97 

Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg 

LIFE INSURANCE 

MOBILE TELECOMS 

INDUSTRIAL ENGINEERING 

MEDIA 

MINING 

SOFTWARE & COMPUTER SERV. 

HHOLD GDS & HOME CONSTR. 

NON LIFE INSURANCE 

INDUSTRIAL TRANSPORTATION 

CITYAM.COM 

18 MARKETS THURSDAY 2 JUNE 2016

CITYAM.COM 

THURSDAY 2 JUNE 2016 FEATURE 

19 

CROWDFUNDING 

How 

bureaucracy 

killed the 

US market 

ORDINARY American investors 

finally got permission to 

invest in startups and other 

private businesses last month. 

Equity crowdfunding, as this 

form of investment has come to be 

known, has been a reality in Britain for 

almost four years. Seedrs, the Londonbased 

platform I co-founded, became 

the first regulated equity crowdfunding 

platform in 2012. 

Since then, alongside our competitors, 

we have redefined early-stage investment 

in the UK (and, in our case, elsewhere 

in Europe), transforming the 

space from a small, clubby grouping of 

hobbyists to an open marketplace for 

investors of all shapes and sizes. 

Crowdfunding’s journey into the US 

has been far less straightforward. The 

original legislation permitting it was 

passed in 2011, but regulatory holdups 

meant that it has only become reality 

now. 

So will the floodgates open, and the 

US quickly overtake us in this area of 

the capital markets? For better or worse, 

the answer is no. The sound of 

American equity crowdfunding will, for 

now, be far more a whimper than a 

bang. 

LEFT BEHIND 

This is because the law that came into 

force on Monday, known as Title III of 

the Jobs Act, is so deeply flawed as to be 

almost unworkable. 

One of the biggest problems with Title 

Jeff 

Lynn 

III is the huge burdens in places on companies 

seeking to raise capital. While 

these are intended to protect investors, 

many of them are unnecessary or even 

absurd for early-stage businesses. 

These burdens have the effect of making 

crowdfunding far more expensive 

and time-consuming than raising 

money through other channels, such as 

institutional or private angel investors. 

Businesses will turn to crowdfunding as 

a last resort after more efficient capitalraising 

methods have failed. 

This is the adverse selection problem 

that we have successfully defeated in 

Europe: because equity crowdfunding 

here is a reasonably straightforward 

process for companies, many choose it 

in lieu of (or in combination with) institutional 

or angel investment. 

That will not be the case in the US. 

Instead, only those businesses that cannot 

raise capital elsewhere will use equity 

crowdfunding. Ordinary retail 

investors will have access only to lowerquality 

investment opportunities. 

A second issue is that, despite all the 

burdens it imposes, Title III gives insuffi- 

cient protection to investors. 

While Title III focuses heavily on limiting 

investors’ losses, it is also important 

that investors be protected in the case of 

a business’s success. A successful business 

can see its valuation increase 100- 

fold or more, but if the investment has 

not been properly structured or monitored, 

investors may receive nothing. 

Where restrictions interfere with 

crowdfunding platforms’ ability to provide 

those protections – which is precisely 

what Title III does – investors will 

be significantly worse off in the long 

run. 

A final problem is that the American 

legislation reduces the likelihood of 

businesses succeeding in raising capital. 

One of the key lessons from the 

growth of equity crowdfunding in 

Europe is that raising capital in this way 

is a dynamic process that requires the 

business to build momentum behind its 

campaign. 

A VIABLE FUTURE 

Successful campaigns tend to require 

active outreach, ongoing and multimodal 

engagement with prospective 

investors, and the participation of one 

or more “anchor” angel or institutional 

investors, who can lead funding rounds. 

Title III’s significant marketing restrictions 

mean that companies will be very 

limited in their ability to create momentum, 

which in turn will make it exceptionally 

difficult for their campaigns to 

succeed. Combined, these flaws in Title 

III will make it exceedingly difficult for 

equity crowdfunding to have anywhere 

near the impact in the US that it has 

had on this side of the pond. 

But all hope is not lost. In late March 

2016, Congressman Patrick McHenry, 

who authorised the original crowdfunding 

bill in 2011, introduced a new piece 

of legislation called, aptly, the Fix 

Crowdfunding Act. Focusing on investor 

protection, I think this is a strong piece 

of legislation that goes a long way 

toward addressing the concerns above. 

The question is whether it will become 

law, or will languish in bureaucratic 

delays for another five years. 

£ Jeff Lynn is co-founder and chief 

executive of Seedrs. 

Why private equity is coming to the crowd 

SMALL business investment has 

gone mainstream – or has it? 

While individual private 

investors looking to back earlystage 

businesses are spoilt for 

choice as crowdfunding gathers pace, 

opportunities for them to provide 

private equity backing to more 

established SMEs remain scarce. 

Investing in such businesses is often 

more complex, but usually offers a better 

risk/return profile. We’re talking 

about two quite different types of 

investment here. Venture capital investing 

presents the possibility of returns 

worth many times the original investment 

– if you pick a winner. The flip 

side is that there’s a far greater likelihood 

of losing your stake altogether. To 

balance the risk, investors need to have 

quite a wide range of venture capital 

investments in their portfolios. 

With private equity investments – i.e. 

growth capital for longer-standing businesses, 

or funding a change of ownership 

through a management buy-out 

(MBO) or an equity restructuring – 

investors are less likely to see 10 or 

Claire 

Madden 

more times their money on exit. 

But equally, they have a far greater 

probability of seeing a return overall, 

particularly if the investment has been 

structured and managed correctly. 

Indeed, figures from the British 

Venture Capital Association show that 

small MBOs are the most consistent 

longer-term performer of any private 

equity or venture capital investment 

stage – providing 39.2 per cent internal 

rate of return over 10 years (compared 

with 4.6 per cent for venture funds). 

There are several reasons for this. 

Later stage businesses are more robust, 

with visible revenue streams and profits: 

they don’t need to prove their concept 

or routes to market. Management 

teams are well-established, therefore 

less reliant on just one or two key people, 

reducing risk. Exit prospects are 

better – since they are already more 

mature, time required to position the 

business for exit is often shorter. 

Moreover, there are likely to be more 

exit options available on the secondary 

market or through a trade sale. Such 

buyers usually won’t be interested in a 

business until it has reached a certain 

size. 

But for private investors, access is a 

stumbling block. Although crowdfunding 

platforms are starting to broaden 

their company focus beyond startups, 

the average age of investment prospects 

is currently only just over three years, 

according to AltFi Data. You’re unlikely 

to find private equity opportunities run 

on a crowdfunding platform. 

Why not? First, later-stage investee 

companies are often highly sensitive to 

having commercial information publicly 

available. Second, there is the deal 

management factor. Investments like 

this require an institutional approach 

which needs to be managed by an experienced 

party, both pre and post deal. 

Given the wide variety of parties 

involved, a great deal of coordination is 

required complete the deal. Due diligence 

is more complex. Most crowdfunding 

platforms are simply not set up 

to navigate this level of complexity: it 

needs full-scale private equity treatment. 

Equally, deals of this type need ongoing 

professional management of the 

investor syndicate – again, something 

which is not par for the course with 

crowdfunding. This is especially important 

on exit. A fragmented or dis-unified 

investor base could deter potential 

buyers, adversely affecting the firm’s 

valuation. 

These kinds of 

investments require 

an institutional 

approach 

Investors also need the relationship 

with the portfolio company to be actively 

managed on their behalf – not least 

to ensure that appropriate legal protections 

are in place to safeguard their 

interests as minority shareholders. 

This sounds like a tall order. But we 

are now starting to see more platforms 

opening the door for sophisticated private 

investors to participate in private 

equity deals by providing a more structured 

syndication approach. The idea of 

investing via an innovative “experienced 

investor collective”, where private 

equity professionals take on the 

role of institutional investor on behalf 

of multiple clients, is gaining traction. 

There’s a certain thrill factor in investing 

in a new business. But more established 

SMEs can be just as exciting – 

while being a less uncertain proposition 

for investors. The prospect of superior 

risk-adjusted returns is an 

attractive one. Why should institutional 

investors have them all to themselves? 

£ Claire Madden is managing partner at 

Connection Capital.

20 LIFE&STYLE THURSDAY 2 JUNE 2016 

TECHNOLOGY 

EDITED BY STEVE HOGARTY @misterbrilliant 

: @city_am 

CITYAM.COM 

:@cityamlife 

AUDIO 

SONOS PLAY:5 

£429 – SONOS.COM 

HEATING 

NEST THERMOSTAT 

£249 – NEST.COM/UK 

SECURITY 

CANARY 

£159 – STORE-UK.CANARY.IS 

Home security cameras have been around for 

some time, their sales numbers buoyed by 

the release of alarmist home invasion 

documentaries such as Home Alone and 

Home Alone 2: Lost In New York. But its only 

in recent years that they’ve become welldesigned, 

discreet and web-enabled. The 

Canary monitors your living room using a 

motion sensing camera, alerts you to 

unwelcome visitors, and can be 

made to emit a burglar-spooking 

90 decibel alarm remotely using 

the Canary app. By registering 

your family’s phones, it will 

politely stop recording when 

trusted people are home. 

Sonos is a byword for connected home speaker systems, and 

with the launch of the re-engineered Play:5 last year, the 

company’s flagship speaker is more powerful, better sounding, 

faster connecting and better looking than ever. Purists will love 

that the front logo doesn’t interfere with sound quality, as it’s 

been designed to be “acoustically transparent”. 

Easily the object on this page that most 

resembles the homicidal computer 

from 2001: A Space Odyssey, the super 

clever Nest thermostat gradually learns 

how to heat your home, switches the 

heating off while you’re out and warms 

things up in time for your arrival home 

from the office. Let it monitor your 

thermostat adjustments and in a week 

or two it will automatically create an 

intelligent heating schedule. It’s the 

best thermostat available and almost 

certainly isn’t plotting to murder you. 

MAKE THE CONNECTION 

Is your home smart, or just a big idiot made of bricks? Get connected with these top home devices 

LIGHTING 

PHILIPS HUE 

£14.95 – MEETHUE.COM 

These LED lightbulbs from Philips can glow in any 

colour you can name and some that you can’t. 

They’re controlled wirelessly, meaning they can be 

adjusted from your phone to create your preferred 

lighting conditions. When connected to Apple’s 

HomeKit, you can ask Siri to change the bulbs to 

things like “light blue”or “the colour of the darkest 

recesses of my consumerist soul”. 

TRACKING 

TILE 

$25 – THETILEAPP.COM 

Attach a Tile to your keys (or to 

anything you’re likely to lose) and you 

can ring them from your phone, and 

vice versa. Lose them outdoors and 

your phone will remember the last 

place you had them. If they’re stolen, 

you can call upon every phone using 

the Tile app to scan for your lost item. 

TELEVISION 

AMAZON FIRE TV 

£79.99 – AMAZON.CO.UK 

The Amazon Fire TV 

comes in both box 

and dongle form, 

the latter plugging 

itself wholly into 

your television’s HDMI port. This larger 

version allows you to stream in 4K resolution, has enough processing power 

to play games and comes with the voice remote, which allows you to bark 

the names of films and actors to summon them to the screen. It plays 

Amazon Video and runs all of the usual suspects, eg. iPlayer and Netflix. The 

freedom to sideload Android apps allows for some expanded function too. 

APPLE TV 

£129 – APPLE.COM/UK 

Naturally the slickest of the 

three major connected TV 

devices, the Apple TV is 

Cupertino’s most recent attempt at 

creating a one-stop telly shop for all of 

your entertainment needs. Siri can search 

across all of your streaming apps to find 

films, music and shows, while the sleek 

touchpad remote is easily the best little black 

rectangle you’ll ever point at your big black rectangle. It also 

has the loveliest screensavers you’ve ever seen. Just top notch. 

CHROMECAST 

£30 – GOOGLE.COM 

Google caused a stir 

when it first released 

its cheap-as-chips 

HDMI dongle, which 

turns any TV into a 

smart TV. A two-finger 

salute to more expensive 

rivals, it proved that you only really need your phone and 

your wi-fi to power your TV’s entertainment. Compatible 

with more devices than the Apple TV, it’s the perfect solution 

for households who aren’t locked into the iOS ecosystem.

CITYAM.COM 


FEATURE 

21 

OFFICE POLITICS 

Our lives need a blend, not a balance 

Twenty four hour connectivity killed the old 

formula for a good life, says Paul Lindley 

I 

T IS time to abandon the idea of 

the work-life balance. Work and 

life don’t exist in separate, 

opposing spheres. In a world of 

24 hour connectivity, the distinction 

between the two is increasingly 

impossible to make out. 

According to a survey by Willis 

Towers Watson, our pursuit of this 

illusive sense of balance is a principal 

cause of workplace stress. Businesses 

across the country are counting the 

cost of reduced productivity and 

attainment associated with diminished 

wellbeing, which eventually 

affects employee attendance and 

retention rates. 

So what can we use to replace the 

idea of balance? 

WORK-LIFE BLEND 

Put simply, employers need to 

embrace the truth that work impacts 

on life, and life is impacted by work. 

But reports demonstrate that employees 

don’t feel comfortable discussing 

vital parts of their lives with their 

employers. For example, the Modern 

Families Index recently showed that 

fewer than half of parents are happy 

to discuss family issues with their 

employer. 

At Ella’s Kitchen, our head of HR has 

recently begun piloting a new 

method of employee coaching. The 

goal is to help our team achieve a 

work-life blend. The idea behind the 

blend is to openly acknowledge and 

respect that productivity at work is 

impacted by external, as well as internal 

factors. 

CREATE SPACE TO TALK 

A vital part of the strategy is to create 

open, honest communication 

between leaders and the individuals 

in their team. 

Make time for one-on-one meetings 

between leaders and team members 

to discuss the factors inside and outside 

work which are affecting their 

success. It may be that they want the 

time to play on a badminton team, be 

home for dinner with their children, 

take a language class or train for a 

marathon. 

It’s vital to acknowledge that having 

time to do these things has as much 

of an impact on a person’s wellbeing 

and productivity as good team 

dynamics or a sense of career progression. 

There needs to be space on the 

agenda in resourcing and strategy 

decisions to accommodate these 

external interests. 

MAKE A PLAN 

It is important that leaders work with 

The Modern 

Families Index 

recently showed 

that fewer than 

half of parents are 

happy to discuss 

family issues with 

their employer 

each team member to identify practical, 

measurable steps that will help 

them to achieve a fulfilling work-life 

blend. 

Online tools can help in this area. 

We use the Open Blend Method, 

which facilitates interactive coaching 

sessions between individuals and 

their managers, encouraging each to 

achieve their optimal blend. 

It’s also worth ensuring you’ve got 

expert support available. We work 

with a specialist coach who supports 

on specific areas, like returning to 

work following maternity leave. 

DATA 

THRIFT 

Opera Max 

Free 

Designed to help 

users economise 

on their data 

usage, Opera 

Max allows you 

to cut down 

when watching 

videos on the 

likes of YouTube 

and Netflix, and 

monitor apps 

which are 

costing you 

most. Users are 

also able to set a 

roaming cap, 

and stop apps 

from eating into 

their monthly 

limit when 

they’re on in the 

background. 

TRACK AND FEEDBACK 

Open Blend also provides a great software 

application that allows us to 

track the feedback of our team in realtime, 

across a number of their different 

priority areas. 

It also provides an analytics tool 

which allows leaders to analyse live 

data about their team members, and 

compare their trends and performance 

with that of other industries and 

countries. 

Before Ella’s Kitchen began running 

the Open Blend initiative, 50 per cent 

of a group we sampled said that they 

had achieved right work-life blend. 

But after only a few sessions, this had 

increased to 80 per cent. 

CHANGE IN MINDSET 

The rise of flexible working has been 

an enormous step forwards. It has 

given individuals back a sense of ownership 

over their time, and is gradually 

creating a more compassionate 

style of management. However, these 

new approaches must be 

underpinned by a genuine shift in 

mindset at the heart of businesses. 

In the race to attract and retain top 

talent, as well as to spark creativity 

and industry-leading innovation, prioritising 

the wellbeing of your team 

has got to be top of the agenda if you 

want to make your employees more 

productive and profitable. 

£Paul Lindley is founder and chairman 

of Ella’s Kitchen.

22 SPORT THURSDAY 2 JUNE 2016 

CITYAM.COM 

RESULTS 

IN BRIEF 

FOOTBALL 

INTERNATIONAL MATCH 

Belgium .................(0) 1 Finland .......................(0) 1 

Czech Republic .....(0) 2 Russia .........................(1) 1 

Estonia ....................(1) 2 Andorra .....................(0) 0 

Latvia .....................(0) 2 Lithuania ...................(0) 1 

Norway .................. (2) 3 Iceland........................(1) 2 

Poland ....................(0) 1 Holland .......................(1) 2 

Spain ...................... (3) 6 South Korea ..............(0) 1 

CRICKET 

SPECSAVERS COUNTY CHAMPIONSHIP - DIVISION 

ONE—Middlesex v Hampshire (Merchant Taylors 

School): Middlesex 467-3dec. (115.2 overs). Hampshire 

131 (51.4 overs) and 220 (77 overs). Middlesex (24pts) 

beat Hampshire (1pts) by an innings and 116 runs. 

Yorkshire v Lancashire (Headingley Carnegie): Yorkshire 

308 (97.1 overs) and 236 (84.2 overs). Lancashire 196 

(60.4 overs) and 173 (86.4 overs). Yorkshire (22pts) beat 

Lancashire (3pts) by 175 runs. 

DIVISION TWO—Leicestershire v Kent (Canterbury): 

Leicestershire 341 (98.3 overs). Kent 117-2 (44 overs). 

Kent (8pts) drew with Leicestershire (8pts).No play 

Wednesday due to rain. Worcestershire v 

Gloucestershire (New Road): Worcestershire 439 (113.1 

overs) and 239 (56.3 overs). Gloucestershire 364-6dec. 

(112 overs) and 320-5 (57.4 overs). Gloucestershire (23pts) 

beat Worcestershire (7pts) by 5 wickets. 

TENNIS 

FRENCH OPEN (Roland Garros, Paris, France)—Men’s 4th 

rnd: (1) N Djokovic (Ser) bt (14) R Bautista Agut (Spa) 3-6 

6-4 6-1 7-5, (7) T Berdych (Cze) bt (11) D Ferrer (Spa) 6-3 

7-5 6-3, (13) D Thiem (Aut) bt M Granollers (Spa) 6-2 6-7 

(2-7) 6-1 6-4, (12) D Goffin (Bel) bt E Gulbis (Lat) 4-6 6-2 

6-2 6-3. Men’s Qtr-finals: (3) S Wawrinka (Swi) bt A 

Ramos-Vinolas (Spa) 6-2 6-1 7-6 (9-7), (2) A Murray (Gbr) 

bt (9) R Gasquet (Fra) 5-7 7-6 (7-3) 6-0 6-2. 

Women’s 4th rnd: (1) S Williams (USA) bt (18) E Svitolina 

(Ukr) 6-1 6-1, Y Putintseva (Kaz) bt (12) C Suarez Navarro 

(Spa) 7-5 7-5, K Bertens (Ned) bt (15) M Keys (USA) 7-6 

(7-4) 6-3, (8) T Bacsinszky (Swi) bt (9) V Williams (USA) 

6-2 6-4. Women’s Qtr-finals: (4) G Muguruza (Spa) bt S 

Rogers (USA) 7-5 6-3, (21) S Stosur (Aus) bt T Pironkova 

(Bul) 6-4 7-6 (8-6). 

TODAY’S DIARY 

International Matches 

England v Portugal ...................................................................................7.45 

ENGLAND FACE AUSTRALIA 

IN CHAMPIONS TROPHY 

£ CRICKET: Host nation England 

were pitched against world 

champions Australia, New Zealand 

and Bangladesh as the draw for the 

2017 Champions Trophy was made 

yesterday. Whereas England have 

been drawn in Group A, defending 

champions India, Pakistan, Sri 

Lanka and South Africa are in Group 

B. World Twenty 20 winners West 

Indies will not be present as they 

were ranked outside the top eight 

sides in the world at the cut off point 

in September. A league system for 

Test cricket, meanwhile, could be in 

place by 2019, according to ICC boss 

Dave Richardson. 

NADAL WITHDRAWS FROM 

QUEEN’S DUE TO INJURY 

£ TENNIS: Former world No1 

Rafael Nadal has withdrawn from 

the Aegon Championships at 

Queen’s Club due to the wrist injury 

which forced him to pull out of the 

French Open. Nadal, a 14-time 

grand slam champion who won at 

Queen’s in 2008, feared risking 

further injury so close to 

Wimbledon, which starts on 27 

June. The 29-year-old said: “I enjoy 

playing in front of the British people 

and I was looking forward to trying 

to win the title for a second time.” 

Queen’s starts on 13 June. 

BILLION 

POUND 

SUMMER! 

00396 

CRICKET 

What now for Cook and Anderson? 

Sachin and 600 wickets ultimately 

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AS WELL as England wrapping 

up a series-clinching 

victory against Sri Lanka this 

week, there were also some 

extremely impressive milestones 

for skipper Alastair Cook and 

seamer James Anderson. The question 

now is, how far can these guys go? 

At 31 years and 157 days, Cook 

became the youngest player in 

history to reach 10,000 Test runs 

during England’s second innings in 

the second Test at Chester-le-Street. 

He is the first Englishman to 

achieve the feat and is one of only 

12 batsmen to do so. 

Cook is probably the fittest guy I 

ever played cricket with. He used to 

absolutely smash the fitness tests 

and batting doesn’t seem to tire 

him. There is nothing stopping him 

playing for another five or six years 

and chasing down some seriously 

big records. 

It might come down to his 

mental state; how long he wants to 

keep playing and be away from his 

family. That element is made 

slightly easier by him only playing 

Test cricket these days. 

India great Sachin Tendulkar 

holds the record for Test runs, he 

CRICKET 

COMMENT 

Chris 

Tremlett 

amassed 15,921 during his career, 

while the likes of Ricky Ponting, 

Jacques Kallis and Brian Lara are all 

above Cook in the standings. Time, 

however, is on the England 

captain’s side. 

DARK PLACE 

Factor in also that this England side 

is an exciting place to be. Credit 

must go to Cook, who has really 

grown into the captaincy role over 

the last year, for taking the side from 

a pretty dark place after the 2013/14 

Ashes to now – one of the world’s 

best teams. 

I’m sure he will be determined to 

take England to the next level and 

conceivably he could play for 

another six years. If he does and 

averages 45-50, for instance, he is 

going to be well into the teens and 

it is feasible he could surpass 

Tendulkar’s record. 

Turning to Anderson, who 

claimed his 450th Test wicket up at 

Durham. His skills are phenomenal 

and his results speak volumes. In 

English conditions he tends to bowl 

within himself a little bit but, on 

flatter pitches, knows when to up 

the ante and his pace. 

The only thing which could derail 

him over the next few years is 

injury, but with his frame and the 

way he’s built he doesn’t put too 

much stress on his body. I’ve read 

articles in which he says he aims to 

still be playing at the age of 40. 

I remember writing last year that 

I could see Anderson chalking up 

500 Test scalps but the Lancashire 

right-armer, who is now 33, just 

keeps on taking wickets and I can 

see him going on to snare 550, 

maybe even 600 Test victims. The 

latter would put him fourth on the 

all-time list behind spinners 

Muttiah Muralitharan, Shane 

Warne and Anil Kumble but above 

ex-Australia seamer Glenn McGrath, 

who has 563 wickets. Like Cook, if 

Anderson remains hungry, there 

really is nothing stopping him.

CITYAM.COM THURSDAY 2 JUNE 2016 SPORT 23 

Joe Hall examines Deloitte’s Annual 

Review of Football Finance and finds 

a record spending spree is imminent 

PREMIER League clubs are expected 

to smash transfer 

records this summer and spend 

over £1bn in a single window for 

the first time. 

Deloitte’s Sports Business Group is 

predicting Premier League clubs’ 

expenditure on new players will hit new 

heights in the forthcoming transfer 

window, following another season of 

revenue growth. 

Collective revenues for the 20 clubs in 

England’s top tier reached a record 

£3.3bn in the 2014/15 season, according 

to Deloitte’s Annual Review of Football 

Finance published today, a figure 

projected to rise to £4.3bn next year. 

Premier League clubs scored their 

second-highest collective pre-tax profits 

of £121m last season, a slight dip on the 

previous campaign as clubs racked up 

record receipts from wages, transfers 

and capital expenditure. 

Premier League clubs’ wage costs 

increased by seven per cent to exceed 

£2bn for the first time, spending on new 

players hit a record £1.1bn across the 

season — more than double that of any 

other European league — and capital 

expenditure reached a new high of 

£305m. 

Yet Deloitte’s Sports Business Group, 

which advises clubs on acquisitions and 

strategy, believes such outlay will be 

dwarfed over the coming months as 

Premier League clubs enjoy the riches of 

a new £8bn broadcast deal to snap up 

the stars of Euro 2016. 

“A lot of Premier League clubs will 

already be going into this summer 

window, particularly with a major 

international tournament about to 

start, looking at which players they 

want to buy to push for the title next 

season,” Deloitte’s sports business 

Group senior consultant Andy Bull told 

City A.M. 

“We’re expecting it to be a big summer 

transfer window anyway with the new 

TV deal starting next year, but with the 

addition of a major tournament, 

spending by Premier League clubs could 

easily reach £1bn which would be a new 

record.” 

The Premier League was Europe’s 

most profitable league in the 2014/15 

season, with a lower wages to turnover 

ratio than Spain’s La Liga, Italy’s Serie A 

and France’s Ligue 1. Such sound 

financial footing prompted an £870m 

spending spree last summer as the likes 

of Stoke City, Southampton and West 

Bromwich Albion, clubs which are not 

expected to compete for major honours, 

all broke their transfer records. 

Next season marks the beginning of a 

new Premier League broadcast deal 

worth nearly £3bn a season and at least 

£99m to every club. 

By half time of the second live match 

broadcast in the UK next season, more 

television revenue will have been 

generated than by all top-flight matches 

during the 1990/91 campaign. 

That will give Premier League clubs an 

even greater advantage over European 

rivals in the transfer market this 

summer, with collective operating 

profits potentially rising as high as £1bn 

next year, although English clubs could 

be asked to pay a premium. 

“There’ll still be an elite few European 

clubs — Barcelona, Real Madrid, Paris 

Saint-Germain and Bayern Munich — 

who will be able to compete with the 

Premier League clubs for the very top 

talent,” said Bull. “But the difference is 

now all of the Premier League clubs can 

compete for the best talent in Europe, 

not just a handful. 

“If an English club is looking at a 

player that will no doubt drive the price 

up because the selling club will know 

they can spend big.” 

FOOTBALL 

TV riches tipped to bring ticket relief 

JOE HALL 

@joehallwords 

MATCH-GOING football fans could 

benefit from the Premier League’s 

new £8bn broadcast deal next season 

as clubs freeze ticket prices to keep 

grounds full and broadcasters happy. 

Deloitte’s Annual Review of 

Football Finance found that 

matchday revenue of £584m 

accounted for just 18 per cent of the 

Premier League’s total £3.3bn 

revenue in the 2014/15 season -- its 

smallest proportion in the 

competition’s 24-year history. 

With the clubs’ accounts being 

primarily boosted by commercial 

and broadcast income — set to swell 

further next season with the start of 

a new deal worth at least £99m to 

clubs per year — they are expected 

to place less emphasis on extracting 

money from ticket sales. 

“Matchday revenue is becoming 

relatively less important in terms of 

the percentage against the total,” 

explains Deloitte Sports Business 

Group’s Andy Bull. “It’s now down 

below 20 per cent and we’d expect it 

go down to 15 or 14 per cent when 

the new deal comes in. What’s vital 

for the clubs and the league is that 

grounds remain full because the 

game is being broadcast as a great 

spectacle, it’s what the broadcasters 

want to see. 

“We’d expect to see any price 

increases to be low and freezes to be 

more common. Clubs are aware 

they need to keep ticket prices at a 

price where grounds remain full.” 

London top of the league for revenue 

JOE HALL 

@joehallwords 

LONDON clubs accounted for 

nearly a third of all revenue raised 

in English football in the 2014/15 

season, despite making up less 

than 16 per cent of teams. 

The capital’s 15 clubs in the 

Premier League and Football 

League had a combined revenue of 

£1.3bn, contributing 31 per cent of 

the £4.1bn revenue generated by all 

92 teams across England’s top four 

divisions. Deloitte’s Annual Review 

of Football Finance found that 

London clubs employed 3,500 fulltime 

members of staff across the 

season and attracted over seven 

million attendees to games. 

All six Premier League clubs that 

season – Arsenal, Chelsea, 

Tottenham, West Ham, Crystal 

Palace and Queens Park Rangers — 

enjoyed a stadium utilisation of 97 

per cent, pipping the competition 

average of 96 per cent. 

Arsenal were London’s most 

financially well off club with 

revenue of £331.3m and operating 

profits £51m, despite notching the 

Premier League’s biggest wage bill 

increase of £26m. 

OLYMPIC GAMES 

Economists predict a Great 

Britain medal slump in Rio 

JOE HALL 

@joehallwords 

GREAT Britain’s net medal haul is 

set to plummet more than any 

other nation at this year’s Olympic 

Games in Rio de Janeiro, according 

to financial services giant 

PricewaterhouseCoopers (PwC). 

Team GB’s medal total is 

predicted to take a bigger hit than 

anyone else, with PwC forecasting 

the loss of home advantage being 

the main contributing factor to a 

shedding of 13 medals from their 

tally of 65 at London 2012. 

That would still keep Team GB in 

fourth spot, the position they 

finished after a successful games 

four years ago, but with just 52 

medals. 

PwC economists have turned 

their attentions to sport to 

predict performance at this 

summer’s Games and found that 

the number of medals won at 

previous Games can be 

explained by three 

statistically significant 

factors; the size of a 

country’s GDP, their 

performance in 

the previous two 

Games and whether or not a 

country is the host nation. 

The US, China and Russia are 

therefore predicted to once again 

occupy first, second and third 

position on the 2016 medal table, 

while hosts Brazil can anticipate 

winning eight more medals than 

they did last time, boosting their 

position from 15th to 11th. 

“David can sometimes beat 

Goliath in the Olympic arena, 

although superpowers like the US 

and China continue to dominate 

the top of the medals table,” said 

PwC chief economist John 

Hawksworth. 

“Now it is no longer 

the host country, 

Great Britain may 

find it difficult to 

match its exceptional 

performance in 

London 2012 — though 

our model suggests it 

should remain as high as 

fourth in Rio with over 

50 medals in total.” 

PwC predict GB’s 

medal haul will 

plummet

24 SPORT THURSDAY 2 JUNE 2016 

SPORT 

FOOTBALL 

Hodgson: Attack is 

CITYAM.COM 

MONEY, MONEY, MONEY Deloitte’s 

Annual Review of Football Finance suggests 

a billion pound transfer window PAGES 22&23 

FOOTBALL 

I wanted to kill 

Irish players, 

bristles Keane 

best defence 

ROSS MCLEAN 

@rossmcleanRMAC 

ENGLAND boss Roy Hodgson admits 

the composition of his squad is a clear 

indication that the Three Lions will go 

on the attack at the European 

Championship in France, which starts 

next week. 

Hodgson has selected five strikers in 

his 23-man party for the tournament, 

including teenage Manchester United 

frontman Marcus Rashford, who made 

the cut ahead of Leicester’s Premier 

League title-winning midfielder Danny 

Drinkwater. 

There are only three recognised 

centre-halves amongst the squad – 

Chris Smalling, Gary Cahill and John 

Stones – although Hodgson, often 

portrayed as a conservative tactician, 

does not believe his side will be 

exposed defensively. 

“We’ve got balance,” said Hodgson. 

“If anything, the balance does tilt 

towards attackers and offensive 

midfielders. That was a conscious 

decision. That’s where we think our 

strength lies. 

“We believe defending is very much a 

team job and we can’t just rely on a 

back four and a goalkeeper. We need 

great mobility and great running 

power to defend in that way. With this 

squad they’ve got that ability. 

“Often in a tournament the players 

that get injured or suffer a lack of form 

are the guys at the cutting edge, the 

guys who make the difference or score 

the goals.” 

Hodgson has been widely criticised 

for axing Drinkwater. Former England 

captain Alan Shearer accused Hodgson 

of selecting the likes Jordan Henderson 

and Jack Wilshere on “reputation rather 

than form”. 

“It was a very difficult decision,” 

added Hodgson. “For a long period of 

time, if anything, we haven’t had an 

enormous amount of choice. 

Sometimes there have been 

comments that we don’t have enough 

to pick from. 

“Suddenly, we do have a lot of 

players to pick from and it was a very 

tough decision for me. 

“It simply became a question of do I 

take the extra attacker or midfielder? 

That’s how Rashford came about. The 

front players, apart from Harry Kane – 

we wouldn’t want to move him from a 

central position – can do the job wide 

in midfield. 

“I’m happy I’ve got so many good 

players to put on the field.” 

England face Portugal at Wembley 

this evening in their final warm-up 

clash before the start of the 

tournament. While Hodgson has 

promised a strong side, he stopped 

short of saying his starting XI tonight 

will be the one which lines up against 

Russia in Marseille on 11 June. 

“I don’t need to try anything out any 

more but I’m not prepared to say the XI 

who start will start against Russia,” 

said the 68-year-old. “I don’t want to 

commit myself to a team agains Russia 

in 10 days’ time. 

“If you take out Marcus Rashford, who 

is a new boy on the block, there is 

nobody’s game I don’t know extremely 

well. I know the players and I know what 

they can be.” 

ROSS MCLEAN 


REPUBLIC of Ireland assistant 

manager Roy Keane was at his 

uncompromising best yesterday when 

he claimed that he wanted to “kill” a 

number of his side’s players after 

their defeat to Belarus on Tuesday. 

Their 2-1 reverse in Cork was only 

the second defeat Martin O’Neill’s 

outfit have suffered in 14 matches, 

although it was hardly the ideal sign 

off prior to Euro 2016. Ireland play 

Sweden in their opening match of 

the tournament on 13 June. 

“I wanted to kill some of them,” 

said Keane. “They should count their 

blessings they’ve managed to get on 

the flight. It’s a reality check for one 

or two players who thought they 

were good players.” 

No-nonsense former Manchester 

United skipper Keane also laid bare 

the level of commitment he expects 

from players, claiming there is 

something amiss if they’re 

completely injury-free. 

“I’m worried when players aren’t 

carrying knocks,” he added. “You’re 

supposed to carry knocks because 

you’re supposed to tackle people, 

you’re supposed to hit people at pace 

and hit them hard. 

“It’s part of the game. It’s not 

chess we’re playing. Every time you 

get a knock, you don’t have to take 

painkillers, have two days’ recovery 

or sit in the pool for an hour and a 

half. It’s a man’s game we’re playing, 

believe it or not.” 

There was also a stark warning 

from Wales boss Chris Coleman, 

whose side face England in Lens on 

16 June but have failed to record 

victory since October when they beat 

minnows Andorra to seal 

qualification to the tournament. 

“Since we qualified, if you look at 

our results, it is nothing to shout 

about,” he said. “I’m not making any 

excuses. Sometimes with success 

comes a little bit of complacency. 

Subconsciously sometimes.” 

BOXING 

Khan keen to represent 

Pakistan at Olympics 

TENNIS 

Murray intent on breaking French 

Open duck and landing first title 

ROSS MCLEAN 


BRITISH-BORN former world superlightweight 

champion Amir Khan has 

opened the door to representing 

Pakistan at this summer’s Olympics 

after boxing bosses announced that 

professional fighters will be eligible 

to fight at the Games. 

The International Boxing 

Association yesterday confirmed the 

rule change, which previously 

stipulated only amateur boxers could 

compete, following an extraordinary 

congress at Lausanne in Switzerland. 

“It’s a decision I welcome,” said 

Khan, who won silver for Great 

Britain at the 2004 Olympics. 

“If I am permitted as per rules and 

from my promoter then I would love 

to compete for Pakistan. I want to 

serve Pakistan.” 

The British Boxing Board of 

Control have issued a statement 

condemning the move. It read: “It’s 

against the spirit of the Olympics, 

disrespectful to many GB amateur 

boxers and ultimately dangerous.” 

Former world champion Carl 

Frampton of Northern Ireland was 

one of a number of eminent fighters 

to express their opposition. 

He said: “Professional boxers being 

allowed to fight in the Olympics is 

ridiculous. They’re two different 

sports. It’s like a badminton player 

playing tennis.” 

ROSS MCLEAN 


BRITAIN’S Andy Murray believes a 

maiden French Open title is within 

reach after dispatching Richard 

Gasquet to reach the 19th grand slam 

semi-final of his career yesterday. 

World No2 Murray battled back 

from a set and 3-1 down in the 

second-set tie-break to prevail 5-7, 7-6 

(7/3), 6-0, 6-2 and set-up a last-four 

tussle with Switzerland’s Stan 

Wawrinka. 

The 29-year-old, who entered the 

tournament having defeated top 

seed Novak Djokovic in Rome, has 

never won a set against Wawrinka on 

clay. Murray’s renaissance on clay in 

recent years, however, has 

left him confident of 

lifting the Coupe des 

Mousquetaires. 

“Last year was 

similar. I came in not 

having lost on the clay 

and played some 

really good 

tennis,” said 

Murray. “I 

believe I can win 

the event. 

Whether I do or 

not, we’ll have to 

wait and see, 

“But I believe it’s 

possible and I’m 

only a couple of 

matches away now. I’ll just give 

everything I’ve got the next few 

days.” 

World No1s Djokovic and Serena 

Williams both advanced to the 

quarter-finals after 

prevailing from their 

respective fourth-round 

rain-affected clashes. 

Williams dispatched 

Ukraine’s Elina 

Svitolina 6-1, 6-1, while 

Djokovic beat Roberto 

Bautista Agut of Spain 

3-6, 6-4, 6-1, 7-5. 

Murray is yet to win a set 

against Wawrinka on clay

OF A BREXIT SHOCKWAVE

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