Cass Magazine #1

CAS S magazi ne TOPNEWS

MARKETS ECSTATIC IN A SHOCK CONSERVATIVE GENERAL ELECTION MAJORITY WIN

MANAGEMENT CONSULTI NG THE RIGHT PATH

ASSETALLOCATI ON EQUITIES OR BONDS? THE ASSET ALLOCATION DILEMMA

TRADI NG COLUMN HOW HIGH CAN THE DOLLAR GO?

EU DEBATE

BLOOMBERG BUSINESS EUROPE DEBATE

REALESTATE

PRIME RESIDENTIAL MARKETS DUBAI VS. LONDON

PRODUCT

LI FESTYLE

WHAT’S ON IN LONDON THIS MONTH?

CONTINENTAL DIVIDE?

2

EDI TO Welcome Letter

45

TOPNEWS Top news in the month

MARKETS Why Monetary Policy is so important to financial makets ?

7

ASSETALLOCATI ON Equities or Bonds ?

The Asset Allocation Dilemma

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REGI ONAL I NVESTMENT Real Estate in Mainland China

1 5

MANAGEMENT CONSULTI NG How high can the Dollar go ?

1 61 7

REALESTATE Prime Residential Markets Dubai VS.London

6 1 8 1 9 01 1 1 2 0 2 1 1 2 1 3 2 2 2 3

M&A A shift in the Energy Industry about to come ?

ACCOUNTI NG A new tax year brings a new ISA

EU DEBATE Bloomberg Business Europe Debate

PRODUCT Continental Divide ?

LI FEATCASS

LI FESTYLE What’s on in London this month ?

Markets Ecstatic In a Shock Conservative General Election Majority Win

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Ma yt he7t hwa ss e tt obet hemo s tunpr e di c t a b l eUKe l e c t i o ni nage ne r a t i o n.

Opi ni o npo l l si nt hemo nt hsbe f o r eha dEdMi l i ba nd’ sLa bo urPa r t ya ndt he I nc umbe nt sCo ns e r v a t i v e sne c ka ndne c ka ta r o und34% e a c h.Ho we v e rt he r e wa sahuges ho c kwhe nt heBBCpub l i s he di t se xi tpo l lwhi c hputt hec o ns e r v a t i v e si nahugel e a dwi t ho nl y10s e a t sl e s st ha nama j o r i t y .

MP’ sf r o ma l lpa r t i e s we r es c e pt i c a la bo utt hi sne wpo l l , wi t hal i be r a lde mo c r a ts a yi nghewi l le a thi s ha ti ft hepo l lc a met obet r uea st he ywe r epr e di c t e dt ogodo wnt o10me n.

Wha tha ppe ne dne xtwa se v e nmo r eo fas ho c kt ot heUK.Thea c t ua lr e s ul t s we r ee v e nf ur t he ra wa ywi t ht hec o ns e r v a t i v e sma na gi ngt oge tmo r et ha nha l f o ft he650s e a t supf o rgr a bs , s o me t hi ngwhi c hDa vi dCa me r o nha dno te xpe c t e da ta l l .

TheSNPwa st hebi gge s tga i ne ro fs e a t s ,wi nni ng50mo r et ha nl a s tt i me .

La bo urt o o kahi to f40s e a t sho we v e rt hi swa sno ts e tt obet o obi go fade a la s aSNPLa bo urde a lwa se xpe c t e dt oo ut s t r i paCo ns e r v a t i v e Li be r a lc o a l i t i o n.

Time for new faces

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TheGr e xi t( Gr e e ke xi tf r o m EU) , ha sbe e nbr o ughtba c kf r o mt hede a ds i nc e t her a di c a ll e f tpa r t ySyr i z awo nt hege ne r a le l e c t i o no nt he25t ho fJ a nua r y 2015.

Thepa r t ywhi c hha spr o mi s e dt obr i nga ne ndt ot heha r mf ula us t e r i t y i nt hec o unt r y ,ha v er e s ur f a c e df e a r swo r l d wi de ,t ha tGr e e c ema ye xi tf r o m t heEur o z o neo nc ea ndf o r a l l .

Gr e e c eha sha dwo r r i e se v e rs i nc et hef i na nc i a lc r i s i si n2008, f o l l o wi ngt hr e e r e c e s s i o ns( Q3Q42007, Q22008unt i lQ12009, a ndQ32009unt i lQ42013) a nda ne v e rgr o wi ngpi l eo fde btba l a nc i ngo nt hes ho ul de r so fAt he nswi t ha Go v e r nme ntde bt /GDPa ndHo us e ho l dde bt /Di s po s a b l ei nc o mea t179.

2% a nd112.

4%r e s pe c t i v e l y .

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O I ti sno tj us ti nt hef o r e xma r ke t t ha tmo ne t a r ypo l i c yi sha vi nga l a r gei mpa c t .Weha ves e e nl o ng t e r mt r e ndsi ne qui t i e sa ndbo nds t o o ,whi c hc a ne a s i l ybee xpl a i ne d byt hea c t i o nso ft hewo r l d’ sma j o r Ce nt r a lBa nks .Ta ket heUSs t o c k ma r ke ta sa pr i me e xa mpl e ;we ha ve s e e nt he S&P 5OO i nde x i nc r e a s ea r o und60% f r o mi t sl o w i nt hef i na nc i a lc r i s i si n2008.The ul t r a l o o s emo ne t a r ypo l i c yo fz e r o i nt e r e s tr a t e sa ndl a r geQua nt i t a t i ve Ea s i ng pr o gr a mme s ha ve a l l o we dbus i ne s s e st ogr o wi nt he s t i c ky a f t e r ma t ho ft he Gr e a t Re c e s s i o n.

Themo r a lo ft hi ss t o r yi st ha ta nyi ndi vi dua lt r a de ro ri nve s t o ri nf i na nc i a lma r ke t sne e dst ounde r s t a ndt he i mpl i c a t i o nso ft he s eva r i o usmo ne t a r ypo l i c ya c t i o ns .

Theo ut c o mei sbe ne f i t i ngf r o mt hel o ngt e r mt r e nds t ha tweha ves e e na ndwi l lc o nt i nuet os e e , i nt hea f t e r ma t ho fo net hede e pe s tr e c e s s i o nse ve rr e c o r de d.

L pr i c e sr i s i ngbac kt o$90/ bar r e li nt hef o l l o wi ngye ar s .

I ti sbe l i e ve dt obet hede alt hate nc o ur age si nc r e as e dM&As e c t o rac t i vi t y.Thi s ,c o upl e dwi t hhi ghl yunde r val ue do i lpr i c e sandpo t e nt i ali ns o l ve nc i e swi t hi ns mal l e rpl aye r s ,r e s o l ve di nas i t uat i o ns i mi l art ot hato f1998!

Cur r e nt l yc o mpani e sar ef o c us e do nc ut t i ngc o s t s ,She l lwe nto nes t e pahe adbys t ar t i ngapr e e xpe c t e dac qui s i t i o n ac t i vi t y.Thi si sal s oc o nne c t e dwi t ht heat t r ac t i ve ne s so ft het ake o ve r ,c o ns i de r i ngc ur r e nto i lpr i c e s ,i ti sc he ape r t oac qui r eac o mpanywi t hr e s o ur c e st hans e ar c hundi s c o ve r e dr e s e r ve si no i ls ands ,abys malwat e ro rAr c t i cf i e l ds .

Mo r e o ve r ,t hi sde alwi l lt ur nShe l li nt ot hegr e at e s ti nde pe nde ntgl o balpr o duc e ro fl i que f i e dnat ur algas( LNG)and t hi r di nt e r mso fgaso ve r al l .Me anwhi l e ,t hi sme r ge rt r ans ac t i o nwi l lde c r e as et hegi ant ’ sde pe nde nc eo nal t e r nat i ver e s o ur c e s ,s uc hasr e c e nt l ypo pul ars hal eo i l .The r e f o r e ,She l lt o o kadvant ageo fl o we ro i lpr i c e st oe xpandi t s aki ngo ve rs upe r i o rr e s e r ve s .Mo r e o ve r ,BG,al t ho ughs ai dt ohaveagr e atpo t e nt i al ,waskno wnt o i nf l ue nc ebyt haveo pe r at i o nalandmanage me ntpr o bl e mso ve rt hel as tye ar ,whi c hs i gni f i c ant l ypul l e di t ss har epr i c edo wn.

T I ti sge ne r a l l ybe s tt oha vebo t he qui t i e sa ndbo ndsi nyo ur po r t f o l i oa st he i rl o wc o r r e l a t i o npr o vi de sabe ne f i c i a ldi ve r s i f i c a t i o ne f f e c to nt her i s ko fyo urpo r t f o l i o .No ne t he l e s s , t hewe i ght sa s s i gne dt oe a c ha s s e tc l a s sc o ul dc ha ngedr a ma t i c a l l yde pe ndi ngo nt hef a c t o r shi ghl i ght e da bo ve .A yo ung,r e l a t i ve l yr i c hi nve s t o rwi t hal o ngt i meho r i z o n c o ul di nve s tupt o80% –90% i ne qui t i e si fc o ndi t i o nsa r e f a vo r a bl e .

Whi l ea no l de r , r e l a t i ve l yl e s sr i c hi nve s t o rc o ul d i nve s t80% –90% i nbo ndst obe ne f i tf r o m mo r es a f ec a s h f l o wsi nt hel a t e rpa r to ft he i rl i f e .

Att hemo me nt ,t hede c i s i o nbe t we e nbo ndsa nde qui t i e si s e ve nha r de rbe c a us eyi e l dsa r ee xt r e me l yl o wa l lo ve rt he wo r l d:Ge r ma n10ye a rbo ndsyi e l dj us t0.

16%,whi l eUS 10ye a rbo ndsyi e l d1.

93%.

Al t ho ughUSr a t ei shi ghe r , i ti s s t i l lno tve r ya t t r a c t i ve .Ont heo t he rha nde qui t i e sl o o k qui t ee xpe ns i ve ,wi t he a r ni ngsyi e l dr a t i o so fj us t5.

43% i n t heUSa nd4.

46%i nEur o pe .

I ti smo r edi f f i c ul tt ha ne ve rt oma kei nve s t me ntde c i s i o nsi naz e r oi nt e r e s tr a t e swo r l d.Ye t ,wes t i l lbe l i e vet ha tt he r ea r e go o di nve s t me nto ppo r t uni t i e so utt he r e .Equi t i e swi l lpr o ba bl yc o nt i nuet oo ut pe r f o r m bo ndsi nt hec o mi ngye a r se ve n t ho ughr e t ur nsc o ul dno tbepa r t i c ul a r l ya t t r a c t i ve , t he r e f o r eayo ungi nve s t o rc o ul dc ho s et oi nve s ta r o und80%i ne qui t i e s a nd20%i nbo nds .

Wi t hi ne qui t i e s ,As i ar e ma i nspr o ba bl yt hemo s ta t t r a c t i ver e gi o nt ol o o ka t ,t ha nkst ol o wP/Er a t i o s ,hi ghgr o wt hr a t e s , l o o s emo ne t a r ypo l i c i e sa ndl o wo i lpr i c e s .Ho we ve r ,as t r o nge rdo l l a ra ndt her i s ko fagl o ba ls l o wdo wnpo s es i gni f i c a nt t hr e a t st ot he s ema r ke t s .I nt heEU,l o wo i lpr i c e s ,l o we ur oa ndqua nt i t a t i vee a s i ngr e ma i npo s i t i vef a c t o r s ,butva l ua t i o ns l o o kabi ts t r e t c he d, e s pe c i a l l yi ff unda me nt a l sdono tc a t c hup.

Wee xpe c tUSe qui t i e st ounde r pe r f o r mo t he rma r ke t sduet o as t r o ngdo l l a ra ndt i ght e ni ngmo ne t a r ypo l i c y.

Bo ndsa r eve r ye xpe ns i vee ve r ywhe r e ,butt he r emi ghtbego o do ppo r t uni t i e si nEur o pe a ni nf l a t i o nl i nke dbo nds( t ha ta r e c he a pduet ol o wi nf l a t i o ne xpe c t a t i o ns )a ndhi ghyi e l dbo nds ,e ve nt ho ughs pr e a dsa r equi t ena r r o w.Lo ngma t ur i t ybo nds a r epa r t i c ul a r l yr i s kyi nt hi se nvi r o nme nta spr i c e sc o ul df a l ls i gni f i c a nt l ywhe ni nt e r e s tr a t e swi l ls t a r tt or i s e , whi l ec a s h do e sno tpr o vi deago o di nve s t me nto ppo r t uni t ya syi e l dsa r e ne ga t i ve a c r o s st he bo a r d.Yo uc a nf i ndmo r ei nve s t me nti de a s i nmyr e c e nta r t i c l ef o rFPr e s s“ Thee ndo f e a s ymo ne y–Whe r es ho ul dIi nve s tno w? ” .

I nc o nc l us i o n,e ve ni fe qui t i e sa r er e l a t i ve l y mo r ea t t r a c t i vet ha nbo nds ,i ti sr e a l l yha r d t of i ndgo o di nve s t me nto ppo r t uni t i e so ut t he r e .I ti spr o ba bl yt het i met ol o o kf o r yi e l di na l t e r na t i vea s s e tc l a s s e ss uc ha sRe a l Es t a t e , Co mmo di t i e so re ve nAr t .

Ho we ve r , i nt hi se nvi r o nme nti fyo u do n’ tf i nd a n o ppo r t uni t yyo ua r eno to bl i ge dt oi nve s t yo urmo ne y: yo uc a na l wa yss pe ndi t !

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Trade and Sovereignty Power Oneo ft heke yt o pi c sdur i ngt hede ba t ewa st heUK’ st r a dewi t hEur o pe , i fi twe r et ol e a vea ndi t sc ur r e nt s o ve r e i gnt ypo we r .

Mi l l so ut l i ne dhi sa r gume nta ga i ns tt heUK’ sme mbe r s hi pi nEur o pebyme nt i o ni ngi t s c ur r e ntwe a kne s s e ss uc ha so ve r r e gul a t i o na ndt hea nnua lc o s tt ot heBr i t i s hGo ve r nme nto f£15bn( > s pe ndi ngo nNa t i o na lPr o t e c t i o n) .Hef e l tt ha tt hema j o r i t yo fBr i t i s hpe o pl e“ wo ul dpr e f e rt oha ver e a l l y go o dr e l a t i o nswi t ht hepe o pl ea c r o s st hec ha nne lbutt obea ni nde pe nde ntc o unt r y” .

Ro na l dRudd, t hef o unde ra ndCha i r ma no fFi ns bur y, s t r o ngl ydi s a gr e e dwi t ht hi sbys a yi ngt ha tt he r ei s “ nos uc ht hi nga saha ppydi vo r c e ”a ndt ha twhi l s t“ wewo ul dbea bl et ot r a de , wewo ul dt r a dea tadi s a dva nt a gei fwewe r eno tme mbe r so ft heEU” .

Al t ho ugh, La mo ntf e l tt ha tt hec ha nge si nt hevo l ume so ft r a de wo ul dno tbea l t e r e ds i gni f i c a nt l yi ft heUKwe r et ol e a vet heEU, s i nc e“ t r a dei sma def o rmut ua la dva nt a ge ” .

La mo nta l s odi s a gr e e dwi t hRuddo ve rt heUK’ ss o ve r e i gnt ypo we r .

Rudds t a t e dt ha tt heUK“ ha si t ss o ve r e i gnt y”a ndt ha to nl y10%o fBr i t i s hl e gi s l a t i o nc o me sf r o mt heEU. Ho we ve r , La mo nts a i dt ha tt heUK “ a r es e mi de t a c he dme mbe r so ft heEU”a ndt ha t“ t her e l a t i o ns hi pha sde t e r i o r a t e d” .Hef e e l st ha tt he r e ne e dst obemo r eo ppo r t uni t yf o rna t i o na lpa r l i a me nt st oha veas a yi nl e gi s l a t i o na ta ne a r l i e rs t a gei n o r de rt o“ i nc r e a s ea c c o unt a bi l i t y” .

Thi spo i ntbyLa mo nti sas t r o ngo ne , heme nt i o ne dt ha ta st heEur o pe a n na t i o nswhoa r eme mbe r so ft hes i ngl ec ur r e nc ybe c a memo r ec l o s e l yi nt e gr a t e da f t e rt hef i na nc i a lc r i s i s , whi l s tt heUKi sbe c o mi ngmo r ei s o l a t e d.

Ho we ve r , t heUKs t i l lha st opa yt hehi ghc o s t sf o rme mbe r s hi p o ft heEUa ndf o l l o wt het i ghtr e gul a t i o nwi t ho utr e c e i vi ngt hebe ne f i t so fc l o s e ri nt e gr a t i o n.

Financial effects Ca r rt o o kadi f f e r e ntvi e wt oLa mo nts t a t i ngt ha tt heUKne e dst obe“ po s i t i ve ”a bo uti t sme mbe r s hi po f t he EU. Hef e e l st ha tt he r ei smo o df o rc ha ngea c r o s sEur o pe , a ndt ha tt he r ei sa“ c o l l e c t i vene e d”wi t hi nt he EUt o“ f unda me nt a l l yi mpr o vet hemo de l t oha veamo r es t r e a ml i nes t r uc t ur e ”i no r de rt obemo r ec o mpe t i t i vei nt hewo r l de c o no my.

Rudda gr e e dwi t ht hi spo i nt ,s t a t i ngt heUK’ s“ pr o bl e mswi l lno tl e a ve ”i ft heUKwe r et obe c o mei nde pe nde nto ft heEU.Hef e e l st ha ti two ul dbe“ e c o no mi cma dne s s ”t ol e a vea ndi ti s“ e s s e nt i a lwes t a yi n” s i nc et heUKha sbe ne f i t e dt r e me ndo us l yf r o mi t sme mbe r s hi pbybe c o mi ngt he“ f i na nc i a lc e nt r e ”o ft he wo r l d; wi t hLo ndo nho s t i ngmo r et ha n250f o r e i gnba nksa spr i mee xa mpl eo ft hi s .

What do we think at CASS Magazine?

Cl e a r l yt he r ea r es t r o nga r gume nt sf r o mbo t hs i de so ft hi sde ba t ebutt hef unda me nt a lque s t i o nt ha tne e ds t obea ns we r e di no r de rt oc o met os o mes o r to fc o nc l us i o ni swhe t he rt heUKi sbebe t t e ro f f , i no ro uto f Eur o pe ?Ca r rme nt i o ne di nt hede ba t et ha ti twa si mpo r t a ntt oa vo i d“ e xt r e mes c e na r i o s ”whe ndi s c us s i ng t hi s ;i nf e r r i ngt ha tr e ga r dl e s so fwhe t he rt heUKr e ma i nsame mbe ro ft heEU o rno t ,t hea f t e re f f e c t s wo ul dno tbema j o r l yde t r i me nt a l .

Theque s t i o nswewo ul dl i ket oa s ki st ha t ; c a nwej us t i f y£15bnp/af o ras ma l lpo s i t i veo rne ga t i vee f f e c t o nBr i t i s hbus i ne s ss ho ul dwel e a vet heEU?Andwhi l s twema yha vea nunha ppydi vo r c ewi t hEur o pe , s ur e l yt hi sbe t t e rt ha na nunha ppyma r r i a ge ?

Whe ns i mpl i f i e d, t hi sde ba t ec o me sdo wnt oama t t e ro fpe r s o na lo pi ni o na st owhe t he ryo uf e e lt hene ga t i ve so ut we i ght hepo s i t i ve so rvi c e ve r s a .

Co ns e que nt l y, wewi l ll e a veyo ut oma keyo uro wno pi ni o n,a nd yo uma yne e do nei n2017.

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Re c e nt l y ,If o undmy s e l fa tac o ns ul t i ngc o nf e r e nc ehe l db y Ca s sFi na nc eSo c i e t y .Thes p e a k e r swe r ef a nt a s t i ca ta ddr e s s i ng que s t i o nss uc ha s :“ whydoy o ul i k ey o urj o b ? ”a nd “ whe r edoy o us e eEme r gi ngma r k e t she a di ngi nt hene xtf e w y e a r s ? ”Ye ti twa sc l e a rt ome ,s p e a k i ngt oo t he ra t t e nde e s e xc i t e da b o utc o ns ul t i ng,t ha tt he r ewa st hel i nge r i ngque s t i o n; ho wt ounde r s t a ndwhe r eo nef i t si na ndf i ndwha to nei s mo s ts ui t e dt owi t hi nma na ge me ntc o ns ul t i nga sawho l e .

As t hi si sadi f f i c ul tque s t i o nt oa s ki nf r o nto fac r o wde dr o o m, t hi sa r t i c l ewi l la ddr e s st hi sque r y .

Ma na ge me ntc o ns ul t i ngc a nb edi v i de di nt ot hr e eb r o a ds e c t i o ns :St r a t e gyc o ns ul t i ng,Op e r a t i o na lSt r a t e gya ndPe r f o r ma nc eCo ns ul t i ng, a ndl a s t l yOp e r a t i o na l c o ns ul t i ng.

As i ngl e f i r m ma yp r o v i det hedi f f e r e ntt y p e so fc o ns ul t i ng, o rs e v e r a l s t e p so ft hep r o c e s sma yb ef o undunde ro nef i r m’ sr o o f .

The di a gr a m a b o v e s ho wst het hr e ea r e a si n a p y r a mi d, c o mb i ne d t he yf o r mt hef ul lma na ge me ntc o ns ul t i ngp r o c e s s .Thehe i ghtr e p r e s e nt sr e s p o ns i b i l i t ya nd p a yp r e mi um ( s t r a t e gy b e i ngt hehi ghe s tp a i d) , a ndt hea r e ao fe a c hs e c t i o ns ho wst her e l a t i v e ma r k e tde ma nda ndj o b a v a i l a b i l i t yf o rt hi st y p e o fc o ns ul t i ng s e r v i c e( Op e r a t i o na lc o ns ul t i ng b e i ng t he l a r ge s tma r k e tde ma nd) .As s umi nga l ls e r v i c e sa r ee nga ge d i nap r o c e s s ,t he ywo ul dt a k ep l a c ea ss t e p si nade s c e ndi ng o r de ra ss ho wnb yt hedi a gr a m.

Toe xp l a i nt hedi f f e r e nts e r v i c e s , wec a na na l y s et hep r o p o s a l o fMy l a np ha r ma c e ut i c a lt ot a k eo v e rt he i rr i v a lPe r r i gof r o m t hep o i nto fv i e wo fc o ns ul t i ngs e r v i c e s .

St r a t e gyc o ns ul t a nt swo ul db ec o nt a c t e df i r s t , b e f o r et hep r o p o s a l ,t oa na l y s ema c r oc o ndi t i o nsa nda s s e s swhe t he rt he c o ns o l i da t i o nwo ul db ea dv a nt a ge o usi nt hel o ngr un.Co ns i de r i ngf a c t o r ss uc ha st hel a t e s tf r e nz yo fde a l ma k i ngi nt he p ha r ma c e ut i c a li ndus t r y ,a nd whe t he rt hi sa c qui s i t i o ni s s i mp l ya nunne c c e s s a r ya nde xp e ns i v ek ne e j e r kr e a c t i o nt o c o ndi t i o nso ri fmi s s i ngo uto nt hi sp e r i o dwi l lha r mt he l o ngt e r mp r o s p e c t so ft hef i r m.

Onc et hef i r mha sde c i de dt oa c qui r ePe r r i go , t heOp e r a t i o na l St r a t e gyc o ns ul t a nt swo ul da ddr e s st heque s t i o no fho wt hi s s ho ul db edo ne .Fo re xa mp l e ,ho wi si tb e s tt oa p p r o a c ht he o t he rf i r m, c o ns i de r i ngt he yr e j e c t e dMy l a n’ sa dv a nc e si nt he p a s t ?The yma yc o ns i de rho wt hef i r msf i tt o ge t he ri nt e r ms o f p r o c e s s e s( i f t he yc o mb i nep r o duc t i o na s p e c t s ) , b utt hi sma y a l s of a l li nt ot hea r e ao fe xp e r t i s eo fPe r f o r ma nc eI mp r o v e me ntc o ns ul t a nt s , whor e v i e wp r o c e s s e sf o re f f i c i e nc ya sas e r v i c et ot he i rc l i e nt .Pe r f o r ma nc eI mp r o v e me ntc o ns ul t a nt s a r el i k e l yt oha v eagr e a t e rr o l es ho ul dt hea c qui s i t i o no c c ur , a sa tt ha tp o i nt ,p r o c e s si mp r o v e me ntwi l lb ene c c e s s a r yt o b r i dget hega p sb e t we e nt het wof i r ms .

Onc et hea qui s i t i o nha so c c ur r e da ndt heOp e r a t i o na lSt r a t e gya ndPe r f o r ma nc eI mp r o v e me ntc o ns ul t a nt sha v ede t e r mi ne dt heb e s tp l a ni nt hei nt e r e s t so ft hef i r m,t hea dv i c e gi v e nne e dst ob ei mp l e me nt e da ndt hef i r m ma y r e qui r ea s s i s t a nc e .Op e r a t i o na lc o ns ul t a nt s ,a sa f i na ls t e pt ot hema na ge me ntc o ns ul t i ng p r o c e s s , p r o v i deamo de lo fp e r f o r ma nc ef o rt he i rc l i e nt b a s e do nde c i s i o nsma de .

Thi sma yi nc l udee xp l a i ni ng t o My l a ns p e c i f i c l e ga lp r o c e dur e st ob ef o l l o we dwhe nde a l i ngwi t h Pe r r i goc o ugha nda l l e r gy me di c i nep r o duc t i o n.Aswe l la st hi s ,a p p l y i ngs o l ut i o nsf o r o p e r a t i o na lc o ns o l i da t i o n,t hr o ughs e t t i ngupt hel o gi s t i c so f c o mp l i me nt a r yp r o c e s s e s-i nawa ywhi c ht hef i r mc a na do p t wi t ht he i ro wne mp l o y e e s-c a nb ei mp l e me nt e d.

Toc o nc l ude ,t het hr e eb r o a ddi v i s i o nso fc o ns ul t i ngs e r v i c e s c a nf unc t i o ns e p a r a t e l yo ri nac o mp l i me nt a r yma nne r , i nt he p r o c e s s e so fc ha ngi ngac o mp a ny ’ sp r o f i l e .I nde c i di ngwhe r e y o uwo ul db eb e s ts ui t e dc o ns i de rt hedi s t i nc tc ha r a c t e r i s t i c s de ma nde dt oe xc e li ne a c hr o l ei nt hea b o v ee xa mp l e s .I ti s i mp o r t a ntt ohi ghl i ghtt ha tt hec a r e e rp r o gr e s s i o ni nma na ge me ntc o ns ul t i ng o f t e ns t a r t sf r o mo p e r a t i o na lc o ns ul t i ng ( whe r ema nyi nt e r nsa ndgr a dua t e sa r er e c r ui t e d)upt hep y r a mi dt ot heo t he ra r e a s-s ot hi sma yb eago o dp l a c et ob e gi n y o urc a r e e ra swe l la sga i ne xp e r i e nc ei nv a l ua b l et oo t he r a r e a so fc o ns ul t i ng.

t i a lpr i c e sa ndr e nt sha vebe e ni nc r e a s i nga ta nuns us t a i na bl el e ve lo ve rt hepa s tc o upl eo fye a r s .Ho we ve r ,t hi sye a rt he ma r ke ts t a r t e dt oc o o ldo wna nds t a bi l i s e , e ve ni nl uxur ypr o pe r t ys ubs e c t o r .

The r eha vebe e ns e ve r a lt a l ksa bo utho us i ngma r ke tde ve l o pme nt si nLo ndo na ndDuba ia st hegr o wt hha si nc r e a s e df e a r s a bo utt he“ bubbl e ” , l e t sdi s c o ve rt het r e ndsa ndf ut ur epe r s pe c t i ve so ft hehi ghe ndr e a le s t a t ei nt he s et o pa ndj ui c yl o c a t i o ns .

Dubai TheNe w Ye a rha ss t a r t e dwi t hi nc r e a s e dunc e r t a i nt yf a c i ngt heDuba ir e a le s t a t es e c t o r .La s tye a re nde do naqui e tno t ea s ne a r l ya l ls e gme nt so ft hema r ke twi t ne s s e ds t a bl er e nt sa ndpr i c e sdur i ngQ42014.

The r ea r et wor e l a t e dma j o rma c r o e c o no mi cf a c t o r st ha tha vemo ve da ga i ns tt heUAEe c o no my: 1)t hedr a ma t i cde c l i nei no i lpr i c e s , 2)t hes i gni f i c a nte s c a l a t i o no ft he do l l a ra ga i ns tmo s to t he rc ur r e nc i e s .

I ns o mewa yst hi sc o o l i ngo fs e nt i me nti sf a vo ur a bl ea si tha sa f f e c t i ve l yr e duc e dt hepr e s s ur eo na s s e tpr i c e st ha te me r ge di n2013.

Fo rma nyo fus , Duba is e e mst obeadr e a m pl a c et ol i ve ; whi t es a ndy be a c he s ,l uxur ybe a c hf r o ntr e a le s t a t e ,s ho ppi ngma l l s ,a ndl e t ’ sno t f o r ge ti ti sagr e a tf i na nc i a lc e nt r e , a l s oi t ’ so neo ft hewo r l d’ sf a s t e s t gr o wi nge c o no mi e swi t hGDPgr o wt hr a t eo f6% pe ra nnum.The pr o pe r t yma r ke ti sama j o rde t e r mi na nto fDuba i ’ se c o no mi cpr o s pe r i t yi n2015.I t sr e s i de nt i a ls e c t o rr e a c he sac yc l i c a lpe a k,butt he pa r a do xi st ha ti ti sabe ne f i tf o rt hec i t y.

Thedi ve r s i f i e de c o no myi s go i ngt oa t t r a c ti nve s t me nti nt hene xtye a r sa ndduet os t r o ngt o ur i s ma ndpo pul a t i o ngr o wt hDuba iwi l lr e ma i na sac o mme r c ea nd f i na nc ehubi nt heMENA r e gi o n.TheDuba ipr o pe r t yma r ke ti s s ho wi ngs i gnso fs e ns i bl ea nds us t a i na bl egr o wt h,wi t hr e s i de nt i a l pr o pe r t yc o nt i nui ngt obet hemo s tpr o mi ne nts e c t o r , a ndt hec i t yi s f o l l o wi ngi nt e r na t i o na ls t a nda r dss e tbyNe w Yo r k,Lo ndo na nd To kyo .

Att hi spo i nti nt i meDuba i ’ spr o pe r t ys e c t o ri ss t i l lma s s i ve l yunde r pr i c e di nc o mpa r i s o nt oi t si nt e r na t i o na lc o unt e r pa r t s , a s i t spr i mer e a le s t a t ei sc ur r e nt l ypr i c e da ta bo uto net e nt ht hepr i c eo ft ha ti nLo ndo n,whi c hme a nsi tha st hec a pa c i t yt os t i l l gr o ws i gni f i c a nt l yi nt hel o ngt e r m.Thef e a ra bo utt heho us i ngbubbl eha sr i s e nduet oa ve r a gepr i c e si nt hi ss e c t o rha vi ng i nc r e a s e dby64pe rc e nto ve rt hel a s tt woye a r s .Thea na l ys t spr e di c tt ha tt hema r ke twi l lpe a ki n2015,ho we ve rt hegr o wt h c a nbes us t a i ne da ndpr o l o nge dt oa vo i dt hedo wnf a l la ss e e ni n2008. fyo umi ghtf i ndi ts ur pr i s i ngt ha to ne f i f t ho fDuba i ’ spr i mepr o pe r t i e sl i ee mpt yf o rmo s to ft heye a re ve nwhe nde ma nd So meo o ut s t r i pss uppl y.

Whyt hi si st hec a s e ?Ac t ua l l y, t hea ns we ri ss i mpl e -t het o ppr o pe r t i e si nDuba ia r eho l i da yho me so ri nve s t me nt sa st hema j o rt a r ge tma r ke ti si nt e r na t i o na lhi ghne t wo r t hi ndi vi dua l sf r o m Rus s i a ,I ndi a ,As i aa ndGul fCo o pe r a t i o n Co unc i lc o unt r i e s .

Ove r a l l , t he r ea r emo r et ha n140na t i o na l i t i e si nve s t i ngi nt hepr o pe r t yma r ke ti nDuba i wi t ht o t a lr e a le s t a t e t r a ns a c t i o nsa mo unt i ngt o£40bi l l i o ni n2014.

Duba iMa r i na( o nt hepho t oa bo ve )a ndJ ume i r a hVi l l a gea r eho t s po t sf o rt hepr i mei nve s t me nt s , whe r er e nt a lyi e l dsc a nr e a c h 810%, whi c hi sdo ubl et ha ni nLo ndo n, a ndwhe r et hemo s te xpe ns i vea pa r t me ntc o s t sUS$17.

7mi l l i o n.

Ass our c e df r om Bl oombe r g,t heove r s e a sbuye r sofpr i mec e nt r a lLondonpr ope r t y s a wc a pi t a lva l ue sr i s eby80%ove rt hel a s tf i veye a r s .Thedr opi nva l ueofs t e r l i ng dur i ngt hef i na nc i a lc r i s i s , c ombi ne dwi t ha17%f a l li npr ope r t ypr i c e sma deLondon ve r ygoodva l uet oove r s e a sbuye r s ,t hi si spr ove nbye xt r e me l ys t r ongde ma ndi n 2009a nd2010.Howe ve r ,a swe ’ vee nt e r e d2015t hepr ope r t yma r ke ts e e mst obe l os i ngi t ss t e a m.

Dur i ngt hedownt ur nt hec a pi t a l ’ spr i mepr ope r t yma r ke tbe c a mea ni nve s t me nt s a f eha ve n,a sf or e i gna nddome s t i cf undss e a r c he df ort a ngi bl e ,l ongt e r mi nve s t me nt s .Howe ve r ,c ur r e ntf l uc t ua t i onsi nc ur r e nc i e st oge t he rwi t ht a c ha nge smor t ga gec a psa ndt het hr e a tofama ns i ont a xa r ec ool i ngde ma ndf orpr i me Londonhous i nga ndva l ue sha ves t a t e dt os l i pba c ka sar e s ul t .Al s o,a st heUKha ss t oppe di t s pr ogr a mmeofQua nt i t a t i veEa s i ngi nt hebe gi nni ngofApr i l2015,i tr e s ul t e di nt he de pr e c i a t i onoft heChi ne s eYua n, whi c hc oul dul t i ma t e l yr e duc et henumbe rof f or e i gnbuye r sf orpr i meLondonpr ope r t y.

Compa r e dt o2013,t he r eha sbe e nas i gni f i c a ntdr opi ns a l e svol ume si npr i me c e nt r a lLondoni n2014.

TheLa bourpa r t yha spr omi s e dt or a i s eUKma ns i ont a x onpr ope r t i e sva l ue dove r£3m t o£25,706,whi c hi sonec a us ef ort hef a l li n Londonpr i mepr ope r t yyi e l dst o3.

1%.Roya lBor oughofSout hKe ns i ngt ona nd Che l s e ac ur r e nt l ya r et hewor s tpe r f or mi ngpr i mel oc a t i onsi nLondoni nt e r ms ofpr i c egr owt ha spr ope r t yva l ue sha vedr oppe dby1.

2%s i nc et hebe gi nni ngof t heye a r .

Asobs e r ve di nDuba i , i ti snotunus ua lf ora not he rma j orCi t ys uc ha sLondont o ha vee mpt ypr ope r t i e si nt hel uxur yde ve l opme nt s .Thec i t yi snot or i ousf ort he phe nome nonknowna s‘ buyt ol e a ve ’ , whe r es omei nve s t or sdonote ve nhol dt he ke ysf ort he i rpr ope r t i e s .OneHydePa r ki sagoode xa mpl e ,a si ti st hemos t l uxur i ousbl oc koff l a t si nLondon.Sol df ora r ound£70m e a c hwi t ht hec os tpe r s q. f tof£6, 000,a ndt her e gi s t e r e doc c upa nc yr a t ej us ta r ound30% i nt hede ve l opme nt .Thes t a nda r dde s i gnoft hepe nt hous e ’ sl i vi ngr oom i spr e s e nt e di nt he pi c t ur eont her i ght .

Thus , t he r ei sac onc e r nt ha tLondon' sl uxur yne wbui l dpr ope r t yma r ke ti sbe c omi ngar e pos i t or yf ort hewe a l t hoft hegl oba l r i c h.

Thei nt e r e s t i ngf a c ti st ha tt hewor l d’ smos te xpe ns i vea pa r t me nti sl oc a t e di nOneHydePa r ka ndwor t hi n2011US$221 mi l l i on( For be s ) .

Thef ut ur es e e mst obequi t ec ont r ove r s i a la s , a l t hought hema r ke tha sc ool e dnow, i ti spr oj e c t e dbySa vi l l st ha tpr ope r t ypr i c e s i nc e nt r a lLondonc oul dr i s e26%byt hee ndof2017, t he r e f or e , i tc a nbec onc l ude dt ha tCe nt r a lLondonhous i ngmi ghtbe c ome e ve nmor euna f f or da bl e .

Wha tha ppe ne d?Poorma na ge me nt ,wi t h ma ny f a c e t s .

Pe r ha psmos tnot a bl y,l ongt e r m domi na nc ea ndc ul t ur a l s i mi l a r i t yf a c i l i t a t e dt hee me r ge nc eofc ompl a c e nc y.Compe t i t or ss uc ha sLe xus ,I nf i ni t ia ndAc ur awe r ee a s i l ydi s mi s s e da tf i r s t ,a nde ve nEur ope a nc ompa ni e sdi dn’ t“ ge t ” t heUSma r ke t .Li nc ol nc oul ds e e mi ngl yge ta wa ywi t h a nyt hi ng,s ot he ydi d.Gonewa sJ ohnF.Ke nne dy’ sc ool Cont i ne nt a l ;i nc a met hemi l dl yr e de s i gne dFor dTa ur us a ndCr ownVi c t or i a .Wor s es t i l l ,s uc c e s s i vege ne r a t i ons we r eof t e nbui l tont hes a meunde r l yi ngpl a t f or m.Toda y, wec a ne xpos et hi sa sc l e a rma xi mi z a t i onofpr of i ta tt he e xpe ns eofs ha r e hol de rva l ue ,butonl ywi t ht hebe ne f i tof hi nds i ght ;c us t ome r sc ont i nue dt ol a pupt e r r i bl eLi nc ol ns t hr oughoutt he1990’ s ,ha t e f uls oa pba rs t yl i nga nda l l .

Thi ss pe a ksvol ume sa boutc a rbuye rde c i s i onma ki ng.

Cons ume r sbuyl uxur yc a r sf ort he i rs ymbol i cva l ue ,a nd ge ne r a l l ya r enots e ns i t i vet ot e c hnol ogi c a lc ha nge s .For e xa mpl e ,“ poorbodyc ont r ol ”i same a ni ngl e s sc r i t i c i s mi n t heNe i ma nMa r c uspa r ki ngl otunt i li tbe c ome sa s s oc i a t e d

i n ape j or a t i ves e ns ewi t h br a nd i ma ge .A pot e nt i a l l y de c a de s l ongpe r c e pt ua ll a gt huse me r ge s ,a l l owi nge . g.a di l a pi da t e dLi nc ol nt ol e a dt heUSs a l e sc ha r ta sl a t ea s 1998. us t ome r sdi dc a t c hone ve nt ua l l y,a se ve n Unf or t una t e l y,c pa t r i ot i s mc oul dnol onge rhopet odi s gui s et heva s tqua l i t y de f i c i tt ot hel i ke sofBMW a ndMe r c e de s Be nz .The n,t he gr e a tf i na nc i a lc r i s i sa r r i ve d,l e a vi ngr oom onl yf ort he t r ul ywor t hy.I twa sj us twha tt hedoc t oror de r e d;pa r e nt c ompa ni e sFor da ndGM we r ef i na l l yf or c e dt ot r ul yc ompe t ei nt he i rdome s t i cma r ke t ,a soppos e dt oj us tge t t i ng a wa ywi t hmur de r .Te l l i ngl y,t he yde pl oye dt he i re xi s t i ng r e s our c e s( ma i nl yf r om t hec ut t hr oa t ,a ndt husa dva nc e d, Eur ope a nma r ke t )i nor de rt odos o.Thi sha swor ke dwe l l i nt hema s sma r ke t , whe r ebot hFor da ndGM c oul dr e a di l y s our c ee xpe r t i s ef r om ove r s e a ss ubs i di a r i e s( i . e .For dof Eur opea ndOpe l ) ,butwi l ll i ke l ypr ovepr obl e ma t i ci nt he l uxur ys pa c e ,whe r enos uc hoppor t uni t ypr e s e nt si t s e l f .

Re e s t a bl i s hi ngal uxur yc a rbr a ndt o da yc o ns t i t ut e sa nune nvi a bl et a s k.

TheGe r ma nt r i umvi r a t eo fMe r c e de s Be nz ,BMW a ndAudiha se s t a bl i s he dar o c ks o l i dpo s i t i o nwo r l dwi de , wi t ha l lo ft heba s e ss e e mi ngl y c o ve r e d.Audi sha veni c ei nt e r i o r s ,4WD a ndunde r s t e e r .BMW’ sha ve gr e a te ngi ne sa ndha ndl i ng.Me r c e de s Be nzha sa dva nc e dt e c hno l o gy a nds l e dge ha mme rV8’ s .

Mo s ti mpo r t a nt l y, a l lo ft he s ec o mpa ni e se ngi ne e rl uxur yc a r sf r o mt hegr o undupi ns t e a do fmo di f yi ngl e s s e rmo de l s a nda t t e mpt i ngt opa s st he mo f fa ss o phi s t i c a t e d.Ec o no mi e so fs c a l e a l l o wt he mt odos opr o f i t a bl y. ( No t e : Audi ’ spl a t f o r ms ha r i ngwi t hVW i sake ye xc e pt i o n,butt hi so nl ya f f e c t ss o memo de l s ,e . g.t heA3) .

Li nc o l n’ sc ur r e ntl i ne upf a i l st hi sc r uc i a lt e s t , a sdot hemo r epr o mi s i ng o f f e r i ngso fCa di l l a c .

Al li sno tl o s t , ho we ve r .

Mo s tl i ke l yduet omut ua lc o mpe t i t i o n, t heGe r ma nsha vebe e ngr o wi ngi nc r e a s i ngl y s i mi l a r ,r e nde r i ngt hepr o f i l e so ut l i ne da bo ves o me wha to ut da t e d.Ea c hc o mpa nyha so ve r c o mewe a kne s s e s r e l a t i vet ot heo t he rt wo ,ma ki ngf o rac r o wde dpe r c e pt ua lma p.Mo r e o ve r ,t he yha vea l lbe c o meo bs e s s e d wi t hs e l l i ng“ s po r t i ne s s . ”Thi sha ss pi l l e do ve rt oLe xus( l o ngapur ve yo ro fbl a ndne s s ) , I nf i ni t i , Ca di l l a ca nd i nde e dmuc ho ft hec a ri ndus t r y.

Ent e rt hene wLi nc o l nCo nt i ne nt a l .

Bl ueo c e a nma ybet o os t r o ngat e r m, but t hef a c ti st ha tadi s t i nc te mpt ys pa c eha sa ppe a r e df o rac a rwi t ht hel a i dba c kc o o lo fJ FK’ sde a t hbe d.

So me t hi ngt ha te xude squa l i t ya nds t yl e , butdo e s n’ ts e e mt r yha r d.

So me t hi ngr e f r e s hi ngl ydi f f e r e nt , butno t ne c e s s a r i l yt hr o ugho ve r te nvi r o nme nt a lf r i e ndl i ne s se i t he r( a l s ono t e : t heTe s l aMo de lSi s“ s po r t y”t o o ) .

Ofc o ur s e , t he r ea r es t i l lma nypi t f a l l s .

Cr uc i a l l y, t hee ngi ne e r i ngmus tl i veupt ot hehype ,a l t ho ught heus eo fabe s po ke e ngi nea l l e vi a t e st ha tc o nc e r na tl e a s tt os o mee xt e nt .But e ve ni ft heCo nt i ne nt a lma ke spr o duc t i o na sas o phi s t i c a t e d f l a gs hi pmo de l ,i tc a nno tr e s us c i t a t eLi nc o l na l o ne .As us t a i ne dc o mmi t me ntt or e pl a c i ngt hec ur r e ntt une dupMo nde o s wi t hapur po s e bui l tl uxur yc a rr a ngewi l lber e qui r e d,e nt a i l i ngbo t hi nve s t me nta ndc a r e f ulc o ns i de r a t i o no ft heo ve r l a p i nt omo r ema i ns t r e a mt e c hno l o gy.Bl unde r ss uc ha sI nf i ni t i ’ s s o ur c i ngo ft hedi e s e le ngi ner e qui r e dt oc o mpe t ei nEur o pe f r o m al o wl yRe na ul tLa gunamus tbea vo i de d.Li nc o l nwi l l no wf i ndi t s e l fo nt hedi s a dva nt a ge o use ndo ft hepe r c e pt ua l l a gdi s c us s e da bo ve , a ndFo r dha dt husbe t t e rbes e r i o usa bo ut i t si nt e nt i o nt or e s t o r et hebr a nd’ sf o r me rgl o r y.

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Lo ndo n,a saf i na nc i a lc e nt r ei sbo o mi ng.So meo ft hemo s tf a mo usc o mpa ni e sha vet he i rpr o mi ne nt br a nc he sc o nve ni e nt l yl o c a t e dhe r e -Ro l l sRo yc e ,Ca dbur y,BBC,Ba r c l a ys ,Ll o ydsBa nk.Suf f i c ei tt os a y t ha t“ t heCi t y”i swha tma ke sLo ndo nt het i meke e pe ro ft hewo r l d.I tma yno tha vet hei nt e ns i t yo fNe w Yo r k, buti tmo r et ha nma ke supf o ri ti nva r i o uso t he ra s pe c t s .

So meo ft hepi c t ur e sIc l i c ke dwhi l et o ur i ngLo ndo n.

Imus ts a yt ha twa t c hi ngt hec ha ngeo fQue e n’ sgua r d wa sas i ghtt os e e .

Bus i ne s so ppo r t uni t i e sa r ea pl e nt yhe r e .De s pi t et hede pr e c i a t i ngdo l l a r ,a ndt hedo o me dda nc e so ft he dr a c hma , t hec o mi ngye a r sa r es e e na saha r bi nge rf o ri nc r e a s e dpr o s pe r i t yo ft hee c o no my(Ca ve a t : Ac e r t a i nEDuc a t e dpo l i t i c a lc a ndi da t ec o ul ddowe l lno tt ohe l p) .

I tma ys e e m ge ne r i c , butt he r ei saf o r e s e e a bl e i nc r e a s eo fbus i ne s si na r e a ss uc ha sr e a le s t a t e , t r a de , ba nki ng( s o r r yno ndo ms ) , a nda ut omo bi l ec o ns t r uc t i o n. e t c .

Toc o nc l ude , a va i l a bi l i t yo fbus i ne s so ppo r t uni t i e spl usac a ut i o us l yo pt i mi s t i cf o r e s e e a bl ef ut ur ee c o no my r e s ul t si nLo ndo nbe i ngo neo f t het o pc i t i e si nt hewo r l dt obea ndwo r ki n.

Ca s sBus i ne s sSc ho o l i nLo ndo n, a spa r to f Ci t yUni ve r s i t yha sc o nt i nue dt oi mpr o vei t sgo o do l dha bi to f c o nve r t i ngr udde r l e s ss t ude nt si nt o f o c us s e dbus i ne s sme na ndwo me nwho ,a l t ho ughwo r ki ngi nhi ghl yc o mpe t i t i ve i ndus t r i e s ,s e e kt ogi ve ba c ks o me t hi ngt ot hec o l l e gea ndc i t ywhi c hs ha pe dt he i rl i ve s .

Thi sl a s te pi s odei s THE movi et os e e t hi s mont h, a nd don’ t he s i t a t e t o wa t c ht hef i r s tt hr e e e pi s ode s whi c ha r e de f i ni t e l y wor t ht o bes e e n!

Bo r o ughMa r ke t ' sgo ur me tf o o dma r ke ti sma deo f 70 s t a l l ss e l l i ng f i s h,me a t s ,ve ge t a bl e s ,c i de r s , c he e s e s , br e a ds ,c o f f e e s ,c a ke sa nd pa t i s s e r i e s .

Bo r o ughMa r ke ti so neo ft hemo s tr e no wne dwho l e s a l ea ndr e t a i lf o o dma r ke ti nLo ndo n.

Si t ua t e di n So ut hwa r k,Ce nt r a lLo ndo n,Bo r o ugh Ma r ke ti sac o nvi vi a lpl a c et ha tpr o vi de sf o o dqua l i t y a ndva r i e t y.

Co met he r ef o rl unc hyo uwo n’ tbedi s a ppo i nt e d!Yo uc a ne ve nus et he i ri nt e r a c t i veMa r ke t Ma po nt he i rwe bs i t e( ht t p: //bo r o ughma r ke t . o r g. uk) t of i ndt hepr o duc e ro rt r a de r syo uwa nt!