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BE READY FOR BURNS OUR GUIDE TO THE BEST PLACES FOR PIPES & HAGGIS P24-25 WEDNESDAY 17 JANUARY 2018

@ojngill @CatNeilan PRESSURE was mounting on Carillion’s former top brass last night after the government promised a thorough investigation into the actions of the failed firm’s executives. A probe by the Official Receiver was ordered to be fast-tracked and widened by business secretary Greg Clark. “Any evidence of misconduct will be taken very seriously,” he said. Cabinet Office minister David Lidington told parliament he would not pre-empt such a review but stressed “severe penalties” would be imposed if misconduct was found. The tough stance came as fresh details emerged about the perilous state of Carillion’s finances when it crashed into liquidation early on Monday morning. Keith Cochrane, who was drafted in as Carillion’s interim chief executive in the wake of a catastrophic £845m contract write-down in July, claimed the actions of two of Carillion’s lead banks had “undermined” efforts to save Britain’s second-biggest contractor.

The construction veteran, who had served on Carillion’s board from July 2015 and was a member of the remuneration and audit committees, accused Royal Bank of Scotland of “unilateral action which in the company’s view undermined the group’s efforts to conserve cash”. Court papers seen by City A.M. show Carillion held just £29m of cash when it failed, and that Santander was also blamed by Cochrane for terminating a critical early payment facility (EPF). Cochrane claimed accountants PwC and EY rejected requests to be Carillion’s administrator amid concerns huge funding costs could not be met – necessitating a taxpayer-funded insolvency process. RBS insisted it withdrew support because the company “was not viable”. Santander said it removed the EPF in December after Carillion made a “material additional funding requirement”. Meanwhile, details of Carillion’s contagion surfaced as thousands of small and medium-sized suppliers face difficulties resulting from unpaid bills. Experts estimated unsecured creditors may recover less than

INFLATION DEBATE HAS IT PEAKED? WILL IT FALL AGAIN? WHAT’S GOING ON? P19

CITYAM.COM

ISSUE 3,042

SCREWS TURN ON CARILLION EXECUTIVES

OLIVER GILL AND CATHERINE NEILAN

blockchainweek.com

1p in every £1 owed to them. Landscaping firm Flora-tec was owed £800,000 prior to Carillion’s collapse. Managing director Andy Bradley said he was aware Carillion was facing financial difficulties and had intended to scale back exposure to the firm. “However... the government continued to give them billion-pound contract after billion-pound contract and that said to me, as a small supplier, that the government had done their due diligence,” he said. “We were following the government lead... only to be given a sucker punch.” Tory MP Bernard Jenkin, who chairs the Public Administration and Constitutional Affairs Committee and is planning an inquiry into Whitehall’s handling of private sector contracts, told City A.M.: “I think there is a lesson for capitalism as a whole that controversial levels of remuneration in the face of failure is unacceptable and undermines public confidence in private companies... Directors need to be much more alive to the long-term reputations of their business.” £ THE FORUM: P18

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MULLINS MULLS MAYORALTY Top plumber to take on Khan

CATHERINE NEILAN @CatNeilan THE OUTSPOKEN boss of Pimlico Plumbers has revealed plans to run for London mayor, saying the role needs “a big character”. Charlie Mullins, a self-made millionaire and OBE, said he had previously rejected the idea but decided to run because “my city of London, and its people, are being disgracefully neglected by the government, and it’s got to stop”.

He added: “My decision is not all about Brexit, but with the most powerful economic force in the country, generating billions of pounds in revenue, and paying for services all over the country, having its point of view ignored, I feel it’s time I did something about it. “The mayor of London is supposed to be a cheerleader for the city, and quite honestly I do not think that Sadiq Khan is the right man for the job. Sadiq’s a mild mannered solicitor by trade”.

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BITCOIN IS UP (1,300% in 12 months) A RECENT ICO RAISED $185M (in 5 days)

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NEWS

CITYAM.COM

WEDNESDAY 17 JANUARY 2018

MOD/CROWN COPYRIGHT

THE LAST LYNX Two soon-to-be-retired Lynx Army helicopters flew over the capital yesterday on a farewell tour of the country

THE CITY VIEW

Trump’s snubs are a mockery of diplomacy

T

HE OPENING of the capital’s new US embassy should have been all cheerleaders and marching bands. The Americans spent $1.2bn (£880m) on the ultra-secure new building, which includes a moat, a security ditch and a 15cm thick, bomb-proof glass facade. But after Donald Trump’s Twitter outburst last week, in which he mistakenly lambasted Barack Obama for deciding to locate the embassy in an “off-location” (it was actually a decision made by George W Bush’s government), yesterday’s opening was a rather feeble affair. Although it had been suggested US secretary of state Rex Tillerson might cut the ribbon, he had a prior commitment: a meeting with US allies in Vancouver to discuss North Korea. In the end, no formal opening took place and the nearest Trump has got to his new embassy was a waxwork model of the President temporarily appearing outside it. Trump’s tweet understandably provoked a flood of ire from south Londoners, who pointed out the new embassy is closer to Downing Street than its current location in Grosvenor Square. By being one of the earliest occupiers to agree to base itself in the area, it has also helped to bring the £15bn redevelopment of Nine Elms to life: eventually, it will be surrounded by 20,000 homes and millions of square feet of shops and offices, including the UK headquarters of Apple. “If Nine Elms was offlocation yesterday, it certainly is centre stage today,” said an indignant Ravi Govindia, leader of Wandsworth Council, last week. Londoners’ hurt feelings aside, though, Trump’s outburst has left the so-called special relationship in an uncomfortable state. It has been suggested he decided not to attend the launch when his trip to the UK was downgraded from a state visit to simply a “working” visit. However calmly Whitehall has appeared to react, his decision not to send anyone to the launch of the building will inevitably be perceived as a snub. Trump’s habit of choosing where to visit based on how many people will appear outside waving stars and stripes flags will begin to chip away at America’s relationship with its allies. He is no longer a mere celebrity, he is America’s president and his trips abroad should be determined by American interests and not on the size of the crowd he can draw or the calibre of the welcome party. It is time for him to put aside his ego, and begin putting strategic and economic relationships first.

Follow us on Twitter @cityam FINANCIAL TIMES

FORD WARNS OF 2018 PROFIT FALL

Ford predicted that its profits will fall in the current year as US car sales decline, becoming the second car maker to warn yesterday of tougher conditions for 2018. Ford said it expects full year 2018 adjusted earnings per share to fall to $1.45 to $1.70, as it announced preliminary adjusted earnings of $1.78 per share for full year 2017.

EU WANTS ALL PLASTIC WASTE RECYCLABLE BY 2030

Brussels wants to create an EU market for waste plastic and make all such packaging in the bloc recyclable by 2030. Jyrki Katainen, the European Commission’s vice-president for jobs

WHAT THE OTHER PAPERS SAY THIS MORNING

THE ARMY yesterday flew five Lynx helicopters down the Thames to mark the model’s retirement after 40 years. The Lynx is described as a primary battlefield utility helicopter, able to destroy tanks, evacuate the wounded, gather intelligence and provide humanitarian support. The Lynx, to be replaced by the Wildcat, has been used in battles across the globe.

BoE boss says City Brexit deal is ‘entirely feasible’ JASPER JOLLY

@jjpjolly A POST-BREXIT free-trade deal with the EU which includes financial services could be completed in three years, according to the Bank of England’s top banking regulator, countering the view of the EU’s chief Brexit negotiator, Michel Barnier. Sam Woods, the Bank’s deputy governor in charge of the Prudential Regulation Authority, said it is “plausible” that the UK and the EU could agree a “detailed free-trade agreement” which includes financial services within three years. “We’re fortunate in starting this discussion in a unique position in terms of having completely aligned rules and strongly aligned

THE TIMES

FRANCE TO LEND BRITAIN BAYEUX TAPESTRY

The Bayeux Tapestry is set to be displayed in Britain after President Macron agreed to let it leave French shores for the first time in 950 years, The Times has learnt. Macron is expected to announce the loan at his meeting with Theresa May in Berkshire tomorrow.

RAJOY THREAT TO EXTEND DIRECT RULE IN CATALONIA

and growth, said only six per cent of plastics in the bloc were recycled and that common quality standards would increase the amount of material that industry could reuse.

Direct rule over Catalonia will be maintained if Carles Puigdemont tries to govern remotely from self-imposed exile in Belgium, Spain’s prime minister Mariano Rajoy has warned. He said any new regional president has to be “physically present” to take office.

supervision,” he told MPs on the Treasury Select Committee yesterday. Woods also explicitly rejected the stark choice set out by Barnier in which UK financial services are either in the Single Market, using passporting, or outside the EU using equivalence to access EU firms. “It is both desirable and it is entirely technically feasible to devise something that is not one of the two extremes which Mr Barnier described,” he said, although he added it was nevertheless “challenging”. Michel Barnier last month said there is not a single trade agreement that is open to financial services, and said it was unavoidable that British firms will PRA chief Sam Woods

THE DAILY TELEGRAPH

BORIS TO MAY: COMMIT BREXIT DIVI TO NHS OR LOSE

Boris Johnson has warned Theresa May that the government must make a public commitment to giving the NHS an extra £100m a week after Brexit if the Tories are to beat Jeremy Corbyn at the next election.

BLACKROCK WARNS FIRMS TO FIND SOCIAL PURPOSE

The world’s biggest investor has warned companies to make a positive contribution to society or risk losing its support. In a letter sent to heads of FTSE 100 firms and global business chiefs, Larry Fink, the CEO of BlackRock, told companies they must make “a positive contribution to society”.

lose their passporting rights as the UK leaves the Single Market, relying instead on third-country equivalence rules on which the UK has no say. Woods yesterday warned of broader “tensions” with EU counterparts in banking regulation regarding requirements for wholesale and investment banking to establish subsidiaries. European investment banks with operations in the UK and vice versa can currently operate with a branch – a situation the Bank of England wishes to continue – but EU regulators have expressed their desire for subsidiaries, Woods said. Banks working across borders dislike the idea of establishing full subsidiaries, which must hold more capital separately from the parent company, dragging on profits. However, some EU regulators believe they are safer during a crisis, and make disastrous capital flight less likely.

THE WALL STREET JOURNAL

CELGENE IN TALKS TO BUY JUNO THERAPEUTICS

Celgene is in talks to buy biotechnology company Juno Therapeutics, just days after announcing another major deal to bolster its portfolio of blood-cancer drugs. The talks could produce a deal in the coming weeks, assuming they don’t fall apart, people familiar with the matter said.

ERICSSON TO TAKE ANOTHER £1.3BN IN CHARGES

Ericsson’s costly turnaround continues. The Swedish telecommunicationsequipment maker said it expects to write down another 14.2bn Swedish kronor (£1.3bn) in assets, as it struggles to retool itself.


WEDNESDAY 17 JANUARY 2018

CITYAM.COM

Melrose shrugs off GKN pension warning of £1bn

LUCY WHITE

@LucyGJWhite THE TRUSTEES of GKN’s pension scheme have warned that any buyer of the engineering giant would face a pension deficit of more than £1bn. GKN is currently fighting off a bid from restructuring firm Melrose, as other suitors including buyout house Carlyle are reported to be circling. But the company’s pension trustees yesterday warned that the scheme has an aggregate deficit of £1.1bn on a “gilts flat” basis – a measure for if the schemes were invested entirely in government bonds – or £1.9bn on a solvency basis, which is judged in relation to the cost of getting an insurer to buy out the liabilities. “The trustees expect full engagement with management and with any relevant third parties, at the appropriate time, to ensure satisfactory protection and mitigation for any impacts arising from any change in the strategic direction or future ownership of the company,” said a spokesperson for the trustees in a statement.

The trustees added that any takeover may have to involve a new funding agreement for the pension schemes, if it thought the strength of the covenant – or the new owner’s legal obligation and financial ability to support the schemes – had changed. Melrose however appeared undeterred. “The numbers published today by the trustees are entirely in line with our own reading of the pension exposure at GKN,” a spokesperson said. “Melrose has an impeccable track record of safeguarding and improving pensioners rights in every acquisition we have made.” GKN rejected a takeover approach from Melrose last week, which valued the business at £7bn. GKN, which manufactures parts for Volkswagen and Boeing, said the bid was “opportunistic” and “fundamentally” undervalued the company. However, it seems that Melrose, which specialises in buying industrial companies before improving them and selling them off, will be pursuing the bid as it met with shareholders on Monday.

SWEET DEAL Ferrero Group gobbles up Nestle’s US confectionery arm for $2.8bn IN A tasty deal, The Ferrero Group – manufacturer of Kinder sweets and Nutella – has announced it will acquire Nestle’s US sweets business for $2.8bn (£2bn). Ferrero will acquire 20 American brands including Laffy Taffy, Wonka and Butterfinger.

Events firm Informa in talks to acquire rival UBM in £3bn deal

JASPER JOLLY

@jjpjolly LONDON-HEADQUARTERED publisher and events company Informa is in talks to buy rival UBM in a deal that could be worth as much as £3bn. The firms were forced to reveal the “preliminary discussions” after shares in FTSE 250-listed UBM rose yesterday. In a joint statement both companies said there was no certainty an offer would be made. A tie-up between the two firms

would create the world’s largest business-to-business events company, with well over 11,000 employees at the two companies across the world. The initial approach was made by FTSE 100 firm Informa, which has until 13 February to make an offer, or else be forced to drop its interest. Informa’s move comes just 16 months after it bought US rival Penton for £1.2bn. Shares in UBM rose by more than five per cent yesterday, giving it a market cap of almost £3.1bn. Shares in Informa were largely unmoved.

NEWS

General Electric renews break-up talk after insurance and tax hit

ALWYN SCOTT

GENERAL Electric again raised the prospect of breaking up the conglomerate yesterday as it announced more than $11bn (£8bn) in charges from its long-term care insurance portfolio and new US tax laws. Chief executive John Flannery has previously raised the idea of selling pieces of the largest US industrial

company, as he slashes thousands of jobs and moves to cut $3.5bn in costs to counter a plunge in profits and cash flow. Flannery inherited a host of problems when he became CEO on 1 August, such as falling sales of power turbines, a build-up of inventory and declining profit margins in some businesses. His statements yesterday showed that the idea of a break-up remains

03

part of GE’s thinking, though not a certainty. GE said it will provide another update on its review in the spring. A decision could come then, CNBC reported, citing sources close to GE, adding that a break-up was “likely.” Earlier in the day, GE said its finance arm, GE Capital, would take a $7.5bn after-tax charge in the fourth quarter from a reevaluation of its Reuters insurance assets.


04

NEWS

WEDNESDAY 17 JANUARY 2018

CITYAM.COM

Saudi Aramco snubs UBS and Bank of America for roles in mega-float

CLARA DENINA

SAUDI Aramco has not invited UBS and Bank of America Merrill Lynch to pitch for senior advisory roles in its stock market listing because they have not lent money to the state oil giant in recent years, according to five finance sources. The two investment banks, among the world’s biggest, have not been asked to attend meetings in Saudi

Arabia in the coming weeks where its rivals will pitch for global coordinator mandates for the IPO, said the people familiar with the matter. They have been frozen out by Aramco, the sources added, despite having operations in the Middle East and wanting to take part in the initial public offering, which could be the biggest in history. Saudi Aramco, Bank of America

MOGGMENTUM Eurosceptic Tory Jacob Rees-Mogg to lead pro-Brexit group of MPs

Merrill Lynch and Swiss lender UBS all declined to comment. The sources said the exclusion of the banks reflected a corporate culture in the region of tying advisory mandates to how much of its own money a lender is willing to commit. Aramco will need to borrow significant sums from western banks in years to come to keep up with its Reuters investment pledges. JACOB Rees-Mogg was last night elected to lead the European Research Group, a group of Tory MPs who scrutinise the government’s handling of Brexit. The position became free when former chair Suella Fernandes was made a junior minister.

London growth to lag UK says business group JASPER JOLLY

@jjpjolly ECONOMIC growth in London will fall behind the average in the rest of the UK, according to predictions for British business in 2018 from the Institute of Directors (IoD). The business group said yesterday that the City’s concentration of financial services make it particularly exposed to uncertainty over the Brexit process – a factor which could drag the capital down. “This would buck a long-term trend that has seen London consistently outperform other UK regions,” the IoD said. Meanwhile, a continued fall in migration and weaker consumer spending could “disproportionately” hit London at the same time that the weakness of the pound since the Brexit vote in June 2016 has boosted manufacturers, which tend to be present in higher concentrations in other regions. However, Edwin Morgan, interim director of policy at the IoD, warned that while Brexit will take up a large

amount of attention over the coming year, “it would be a mistake to think it’s the only show in town.” Among the IoD’s other predictions are a spate of legal challenges to employers in the gig economy, a return to efforts by the Treasury to tax the self-employed more like employees, and a renewed assault on fake news from big social media companies. Morgan said: “The gig economy has produced much beneficial innovation in recent years, but 2017 saw several legal clashes over employment status, and we expect this to continue over the next 12 months.” The changing nature of employment has become one of the central political challenges currently facing the government, with a backlash early last year leading to the scrapping of an increase in national insurance for the self-employed designed to tackle bogus self-employment. Further away from home, the final frontier to space tourism could finally be crossed by Amazon magnate Jeff Bezos’s Blue Origin, which the IoD predicts will be the first to fly “a reusable suborbital space vehicle.”

Investor fears of a stock market peak later this year decrease

LUCY WHITE

@LucyGJWhite GLOBAL investors are less worried about stock markets peaking in 2018, according to a new survey, as the consensus expectation for when prices will begin to decline has slipped from the second quarter of 2018 to 2019 or beyond. The number of investors taking out protection against a near-term correction in the markets, meanwhile, has fallen to the lowest level since 2013, according to Bank

of America Merrill Lynch (BoAML)’s closely watched monthly survey. Equities became the asset of choice for investors in January, as allocation to stocks globally hit a two-year high and bonds fell to a four-year low. BoAML researchers attributed the shift to “bond paranoia”. As investors piled into stocks, cyclical plays such as tech, industrials and emerging markets took the limelight from defensive sectors such as telecoms, utilities and the UK.


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06

NEWS

CITYAM.COM

WEDNESDAY 17 JANUARY 2018

Passengers vote Southern worst train company

REBECCA SMITH

@BexKSmith SOUTHERN rail has been given the lowest customer score among train passengers, followed by Southeastern and Thameslink and Great Northern, according to a Which report out yesterday. The majority of 2,865 respondents said they had not seen any improvement in train services over a year, with 67 per cent saying they felt their service had stayed the same. A fifth, however, said they had noticed an improvement. Southern achieved a customer rating of 28 per cent, scoring one star out of five for value for money, reliability and punctuality. More than a third of commuters said they felt the service had gotten worst over the past year, although a wave of industrial action on the network had eased. Grand Central came top of the table on 64 per cent, followed by Translink

NI, Virgin Trains West Coast and Chiltern Railways. A spokesperson for Southern’s parent firm Govia Thameslink Railway said Southern was compared with firms that operate “far fewer trains”. They added: “Services are improving and we will introduce an enhanced train timetable in May to give passengers better reliability on Southern and a greatly expanded Thameslink network, creating 35,000-40,000 more seats into London.” BEST TRAIN LINES 1. Grand Central 2. Translink NI Railways 3. Virgin Trains West Coast 4. Chiltern Railways 5. Virgin Trains East Coast WORST TRAIN LINES 1. Southern rail 2. Southeastern 3. Thameslink & Great Northern 4. South Western Railway 5. Northern

BIRD IN HAND US activist David Einhorn’s Greenlight Capital buys stake in Twitter

Citi takes $22bn tax charge but earnings climb

JASPER JOLLY

PROMINENT US activist investor David Einhorn has bought a “small” stake in Twitter, he told investors yesterday. Twitter’s better user experience and increased time spent by users should give the firm a stronger 2018 for revenues, he said.

Uber to introduce cap on driver hours in the UK from next week LYNSEY BARBER

@lynseybarber UBER will introduce a cap on the number of hours drivers can work in the UK after MPs criticised working conditions and raised concerns about safety risks from working long hours. Drivers will be forced to log out of the app and will be unable to accept

rides for six hours after 10 hours of trips. The troubled ride-hailing firm has erred on the lower end of hours, having considered whether the level should be set at 10 or 12 following a probe by MPs into the gig economy. The tech company told them that the average number of hours worked by its 50,000 drivers is 30 per week.

@jjpjolly CITIGROUP yesterday announced an enormous $22bn (£16bn) charge from Donald Trump’s tax changes which pushed the US bank to its first loss since 2009, but distracted from otherwise above-expectations results. Banks with earnings overseas have been forced to account for a fundamental change to the way in which the US taxes profits. A tax credit for deferred losses was reduced by $19bn for Citi, while it took another $3bn hit on profits held abroad, a key target of the Trump administration. However, Citi expressed confidence that the major cut to the headline corporate tax rate would create higher net income and capital generation capabilities in the coming years. The bank reported a net loss of $18.3bn for the fourth quarter, but profits of $3.7bn after the non-cash tax charge was stripped out. That gave adjusted earnings per share of $1.28, well above the $1.19 consensus expectations. Adjusted net income rose by four per cent for the quarter.


WEDNESDAY 17 JANUARY 2018

CITYAM.COM

S&P: Tech giants don’t pose threat to banks LYNSEY BARBER @lynseybarber THE LIKES of Google, Apple, Facebook and Amazon will not pose a threat to global banks – in the short term at least – according to the ratings agency Standard & Poor’s. Payments stand to be the area where tech giants could potentially bring the most disruption to financial institutions, according to a fresh analysis, but only in the longer term.

“Although these firms are not posing any meaningful short-term pressure on fee income, we believe that they could leverage their strong customer bases and networks to potentially constrain traditional banks’ payment services revenues in the longer term,” the analysts’ report found. “We currently do not see competition from tech titans as posing a short-term risk to our bank ratings,” it added.

07

NO WAY THE LADS Amanda Staveley’s efforts to buy Newcastle United fall through

The ratings agency also said it believes regulation will limit the reach of “tech titans” into customer deposits, and they will likely focus on niche lending, such as providing working capital for small businesses, that aligns with their own brand. “We generally consider them as unwilling to fulfil the large number of technical standards and regulatory burdens in conjunction with providing banking services on a larger scale,” the research said.

TOP INVESTOR Amanda Staveley and Newcastle United owner Mike Ashley have ended talks over a deal for the club which could have been worth as much as £300m.

Provi shudders at prospect of rights issue OLIVER GILL

NEWS

UK inflation falls back to three per cent CAITLÍN MORRISON

12.61%

@ojngill INVESTORS in Britain’s biggest doorstep lender suffered fresh losses yesterday as an equity raise became “increasingly likely” amid cash squeeze worries. Shares in Provident Financial, backed by star fund manager Neil Woodford, plummeted after it said full-year losses would be £120m – worse than previously guided. Facing £35m of lender repayments in the coming weeks, the £3bn market cap firm had cash reserves of £34m and £66m of banking headroom at the end of 2017. Shore Capital Markets analyst Gary Greenwood said: “Although we think the group will avoid breaching debt covenants in a redress scenario, we now think an equity raise to replenish resources is increasingly likely, with a resumption of dividend payments also delayed.” Provident said it continued to “actively monitor” cash reserves given the “uncertainties” it faces. Last year the firm warned collection rates from its home lending division had collapsed in the wake of a botched shake-up of operations. Investors suffered huge losses as Provident fell out of the FTSE 100 after one of the biggest oneday share slides in blue-chip history. Provident is also being investigated by the Financial Conduct Authority (FCA) for the sale of a lucrative PPI-style product called “repayment option plan” or ROP. In addition, authorities are probing online division Moneybarn. Interim boss Malcolm Le May said Provident had “engaged in a dialogue with the FCA” with respect to both probes. ETX analyst Neil Wilson said valuing the company was hard given the “over hang” of potential fines. “If the FCA goes full PPI on Vanquis, it has a serious problem,” he said.

@citycait UK CONSUMER price inflation fell back to three per cent last month, according to the Office for National Statistics (ONS). The consumer price index (CPI) hit 3.1 per cent in November, prompting Bank of England governor Mark Carney to write to the Treasury, explaining the rise. The downward effect in December came “mainly from air fares, along with a fall in the prices of a range of recreational goods, particularly games and toys”, the ONS said today. “As is usually the case in December, air fares rose sharply, with the increase being of a similar magnitude to the previous year,” the ONS continued. “However, because air fares account for a smaller proportion of the basket of goods and services in 2017, the impact of the rise in prices on the contribution of air fares to the headline rate was smaller in 2017 than in 2016. “This in turn resulted in air fares making a downward contribution to the change in the rate. These downward contributions were partially offset by prices for motor fuel, which increased between November and December 2017, having fallen a year ago.” Despite the modest fall, inflation is still beyond the Bank of England’s mandated target of two per cent, noted Matthew Brittain, analyst at wealth manager Sanlam UK. “While we believe it is likely to remain like this in the short-tomedium term, we do not believe it cause for significant concern,” he continued. “Today’s inflation figure simply reflects the fact that businesses that sell imported goods are passing on higher import prices – brought about by the fall in sterling – to their customers.”

De Beers wants blockchain in 2018 BARBARA LEWIS

De Beers is the world’s biggest diamond producer by the value of its gems

ANGLO American’s diamond unit De Beers aims to launch the first industrywide blockchain this year to track gems each time they change hands starting from the moment they are dug from the ground, its chief executive said yesterday. De Beers, the world’s biggest diamond producer by the value of its

gems, has led industry efforts to verify the authenticity of diamonds and ensure they are not from conflict zones where gems could be used to finance violence. For De Beers, cast-iron guarantees its stones are ethically sourced are vital to maintaining consumer confidence. It sells technology across the industry to help prevent anyone trying to pass off synthetic stones as natural.

The firm also works with the rest of the industry and governments to support the Kimberley Process set up in 2003 to increase transparency and eliminate trade in conflict diamonds. • Shipping giant AP Moller-Maersk is teaming up with IBM to create an industry-wide blockchain-based trading platform it says can speed up trade and save billions of dollars, the Reuters company said yesterday.


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CITYAM.COM

WEDNESDAY 17 JANUARY 2018

WHAT GOES UP Price of bitcoin tumbles nearly $1,000 in just one hour of trading

@jjpjolly CHINESE investment into the UK doubled during 2017 to a record high as investors jumped at the chance to buy coveted British assets at cheaper prices, according to a study to be published today. Foreign direct investment (FDI) into the UK from China reached $20.8bn (£15bn) during the year, up

US adviser nabs West End firm in analytics play

LUCY WHITE

@LucyGJWhite NEW YORK-LISTED investment bank Houlihan Lokey yesterday acquired Quayle Munro, a UK advisory firm which has worked on some of the biggest recent fintech deals in the country. The boutique firm also specialises in data and analytics, to help advise businesses on their commercial and general management decisions. Houlihan believes that, with the addition of its experts who work across a broad array of sectors, the data and analytics capabilities will be a key string to the newly expanded firm’s bow. Although Houlihan already has its own established team in London, the Quayle acquisition has proved its commitment to the market. “We are in a people business, and the talent pool in the UK is still just differentiated when it comes to investment banking relative to other

from $9.2bn in 2016, according to analysis by law firm Baker McKenzie. The surge in investment was driven by China Investment Corp’s £10.7bn acquisition of warehouse firm Logicor, while anecdotal evidence suggests the fall in the value of the pound since the Brexit vote in June 2016 has boosted deals. Tim Gee, London M&A partner, said: “We’ve seen a steady increase in Chinese FDI into the UK,

culminating in last year’s record high. Weak sterling and a renewed confidence in Chinese investors have been key factors in driving much of this activity.” Since 2013 Chinese investors have driven a six-fold increase in investment in the UK. The jump in investment contrasted to lower spending elsewhere, with Chinese FDI overall falling for the first time since 2006.

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parts of Europe. We need to be where the talent is,” the firm’s co-president Scott Adelson told City A.M. In 2017, Quayle advised BC Partners and Pollen Street on their takeover of challenger bank Shawbrook, Bureau van Dijk on its €3bn (£2.7bn) sale to Moody’s and BlueStep Bank on its sale to private equity house EQT. Robert Hotz, Houlihan’s co-head of corporate finance, said that the two firms had been acquainted for some time, but it became clear that the companies could benefit from joining forces late last summer. “In addition to its comprehensive global presence, extensive private equity coverage, and broad sector expertise, Houlihan Lokey possesses a strong cultural compatibility with the Quayle Munro team,” said Quayle’s chief executive Andrew Adams. Houlihan, which advised Lehman Brothers’ creditors’ committee during the financial crisis, has crept further into the UK market through acquisitions over a period of years.

BEHIND THE DEAL

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ROBERT HOTZ £ SENIOR MANAGING DIRECTOR, vice chairman and global co-head of corporate finance are just a few of the titles Hotz has under his belt. He was previously at the predecessor firm of UBS before joining Houlihan Lokey in New York in 2002.

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£ DESPITE A LENGTHY theatre visit, the deal finished on target. Hotz popped into The Ferryman on impulse and was readying to leave after two acts, before being chivvied back into his seat for an unexpected third. Coincidentally, Quayle Munro’s chief executive almost made the same mistake.

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£ AN AVID READER, Hotz enjoys a good novel. Although he recommends that all City A.M. readers should see The Ferryman, he is a little more reserved with his book recommendations (“I don’t wanted to be painted in that light,” he said dryly). £ A COCKTAIL PARTY in London is likely to be the celebration of choice now the deal is finalised, although Hotz expects several more business meetings and dinners first.

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Chinese investment in UK doubles to record despite global spend dip

JASPER JOLLY

THE PRICE of bitcoin tumbled back below $11,000 yesterday, falling as much as 20 per cent to a four-week low, as the notoriously volatile digital currency shed nearly $1,000 in just an hour. Late last night it was priced just under $11,000 on Coindesk.

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Norway sovereign wealth fund sells out of BAE Systems in ethics push

LUCY WHITE

@LucyGJWhite NORWAY’S massive $1.1 trillion (£777bn) sovereign wealth fund has pulled its investment in UK defence company BAE Systems, as it continues an ethical push. The fund – which has traditionally focused on oil, but decided to ditch oil and gas investments last year – has also sold off its stake in another

eight companies as part of its principles drive. It said it had decided to exclude London-listed BAE Systems, US engineering firms Aecom and Fluor Corp, and shipbuilder Huntington Ingalls Industries because of their involvement in the production of nuclear weapons. Shipping companies Evergreen Marine Corp, Korea Line Corp, Precious Shipping and Thoresen Thai Agen-

BP’S LATEST BILL Oil major to take $1.7bn charge on Deepwater Horizon disaster

cies were also given the shove due to “the risk of severe environmental damage and serious or systematic violations of human rights”. South Korea’s Pan Ocean Co was placed under review for the same reasons, while Polish residential developer Atal was excluded due to the risk of human rights violations. The decisions were made by the fund’s exec board, on the recommendation of its Council on Ethics.

MBA evening information session Find out how the Imperial MBA can transform your career in 2018 Tonight Wednesday 17 January 18.30 – 21.00 South Kensington campus, London

Executive MBA Full-Time MBA Global Online MBA Weekend MBA Register at imprl.biz/city-am-jan The evening’s agenda includes a welcome speech by Professor Francisco Veloso, Dean of Imperial College Business School, information about our application process and an opportunity to hear directly from Programme Directors, students and alumni. Registration starts at 18.00

BP WILL take a $1.7bn (£1.2bn) post-tax, non-operating charge in its 2017 fourthquarter results as it winds down a settlement over the 2010 Deepwater Horizon disaster in the Gulf of Mexico, which has already cost it more than $60bn.

‘Buying smart’ not enough for private equity LUCY WHITE

@LucyGJWhite HEFTY asset prices mean that “buying smart” and finding a strong company is not enough to keep private equity firms safe, the £54bn investment manager Partners Group has warned. The firm believes pricing multiples – the amount a company is bought or sold for, compared to its underlying earnings – are reaching near record levels, and is predicting this will soon contract. Partners Group, which owns UK assets such as Key Retirement Group and software company Civica, added that it would be holding back from the mainstream buyout scene to focus on particular sectors where it believes it can “proactively create value”. “It is absolutely true that we live in a highly priced environment and market valuations have gone up,” Partners Group managing director Bilge Ogut told City A.M.

“When you’ve been part of this industry for a long time, you know that the market ebbs and flows. This does have an influence in terms of how you amend your strategy but at the end of the day, it’s all about figuring out trends which will lead to earnings growth.” According to Ogut, although the UK is facing uncertainty from Brexit it may still be able to offer some attractive opportunities. “We don’t have the top-down view on the UK and Brexit. We analyse the businesses from an overall macroeconomic picture, and there are many sectors of the UK which we believe are relatively insulated from changes that Brexit might trigger,” she said. Particularly interesting trends include digitalisation, from streamlining business processes to providing better insight through analytics, and clean energy technology. Ogut added business service outsourcing was also seeing significant innovation.

New Revolut travel insurance to use smartphone location signal

LUCY WHITE

@LucyGJWhite CHALLENGER bank Revolut has today launched a pay-per-day travel insurance plan which relies on a mobile phone’s geolocational services. The scheme, which Revolut claims to be the first of its kind, can be turned on and off from a user’s phone. When in use, it will use the phone’s location services to calculate the cost of insurance – starting at less than £1 per day.

This will cover medical and dental care, and can be extended to include features such as winter sports and family and friends coverage. The cost per day depends on location – the base rate will start at 99p, which moves up to £1.50 for North America and £1.25 for the rest of the world. Costs will be capped for the year. The bank partnered with Thomas Cook Money, the financial services arm of travel group Thomas Cook, to create the policies which will be issued under the firm’s White Horse Insurance brand.


WEDNESDAY 17 JANUARY 2018

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Strong results in grocery lift Premier Foods

ALYS KEY AND HELEN CAHILL

@alys_key @HelCahill PREMIER Foods’ shares climbed on the back of strong sales figures published yesterday. Sales in the 13 weeks to 30 December were up four per cent at £261.4m. The firm’s grocery division grew 4.8 per cent, while sweet treats were up 2.2 per cent, slowed down by a 7.3 per cent drop in branded products, including a dip in Cadbury and Mr Kipling cakes. Shares closed up almost three per cent higher at 44p. Speaking to City A.M., chief exec Gavin Darby said the firm would take a keen interest in the healthy eating trend this year. Premier Foods has already launched low-sugar versions of Kipling slices, and gluten-free Bisto. There will be more product launches in this category in 2018. The trading update follows a statement from the group on Monday in

which it sought to play down reports that it would sell popular noodle and soup brand Batchelors to Nissin, a Japanese company which holds a sizeable stake in Premier. Yesterday Premier praised its strategic tie-up with Nissin, noting that Batchelors Super Noodles in a pot, which is manufactured by the Japanese company, has now broken the £5m sales mark since its launch last year. Nissin’s Soba noodles product has also delivered £2m in sales.

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Tate & Lyle’s finance boss to take chief role ALYS KEY

Greggs’ sales rise was driven by the always popular “classic favourites”

Meaty fourth quarter sales put Greggs on track to hit targets

COURTNEY GOLDSMITH

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@courtneynoelg GREGGS is expected to serve up profits in line with expectations in 2017 following a rise in sales in the key festive quarter. In a trading update for the year to the end of December, the high street bakery’s sales rose by 7.4 per cent.

In the fourth quarter, like-for-like sales in company-managed shops rose three per cent. The firm opened a net 90 new shops, including 45 franchised stores, throughout the year. Going forward, it plans to increase the rate of shop openings with the number of net additions expected to be in the 110 to 130 range.

@alys_key SPLENDA maker Tate & Lyle has announced the appointment of Nick Hampton as its new CEO. Hampton, who is currently chief financial officer and a member of the board, will succeed Javed Ahmed, who is retiring from the company after more than eight years in the post. He will pass over control in April this year. Hampton joined Tate & Lyle as chief financial officer in September 2014 from Pepsi, where he worked for over two decades in a number of senior finance and operational roles. Chairman Gerry Murphy said: “Nick has been an outstanding chief financial officer with a strong track record of driving performance, building teams and capabilities, and focusing on key customers and markets.” Hampton said: “As global demand for healthier and tastier food continues to grow, this business has the opportunity to deliver meaningful benefits for our customers, employees, shareholders, and society at large, in the years ahead.”


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Hugo Boss turnaround surprises investors with improved sales ALYS KEY

@alys_key SHARES in fashion brand Hugo Boss climbed yesterday after the company posted better than expected results. Currency-adjusted group sales grew five per cent in the fourth quarter to €735m (£650m). This helped to increase annual sales by three per cent. Online sales jumped 42 per cent in the fourth quarter, while like-for-like retail sales were up seven per cent

Hugo Boss has increased sales in its own stores

on the prior year. Double-digit growth in the US was called “encouraging” by the company, and there was also an uptick in UK business. Wholesale revenue declined, which the group said was expected. Investors welcomed the results, particularly the rebound in the American market. Shares in the company climbed 3.7 per cent in early trading and closed up 3.54 per cent. Analysts at UBS said that price

JD Sports raises profit forecast

HELEN CAHILL

@HelCahill JD SPORTS’ shares raced ahead yesterday after the retailer upped its profit forecast on the back of strong sales at Christmas. Like-for-like sales for the 24 weeks to 13 January rose three per cent. The firm upgraded its full-year profit forecast to £300m. Analysts were expecting profits to come in between £270m and £295m. It is the second time the firm has upgraded its guidance in four months. Shares closed the day up 6.68 per cent at 389.9p. Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “Performance was by no means as stellar as it has been in recent times, but then conditions are tough on the high street right now, thanks to the financial pressure on the UK consumer. “Today’s update is a bit thin on detail, in particular how online sales have added to the mix. However the profit upgrade is a clear signal that sales are going to fall through to the bottom line, and that’s the key takeaway for the market.”

With millennials as its target audience, JD Sports is somewhat shielded from a squeeze on consumer spending as younger shoppers spend less of their income on inflation-hit essentials such as petrol and food. The brand also has a strong digital presence and connects with shoppers on social media sites such as Instagram, where it has thousands of followers. Exec chairman Peter Cowgill said: “I am delighted to report that we have maintained our positive performance from the first half of the year which continues to demonstrate the capability and strength of our highly differentiated multichannel proposition.”

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Airbnb halves up-front cost for bookers ALYS KEY

The retailer’s shares fell due to a change in its sales mix

Dunelm’s shares slide despite strong trading over Christmas HELEN CAHILL

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rebalancing had paid off in delivering a better than expected increase in volumes. It marks a stronger performance for the German fashion house, which issued a gloomy profit warning in 2016. But the uplift in sales has yet to affect the company’s bottom-line, with annual profits expected to be roughly flat on 2016. “We achieved our goals for 2017,” said Mark Langer, the firm’s chief executive officer.

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@HelCahill DUNELM’S shares fell yesterday after it took a margin hit on its acquisition of Worldstores. For the 13 weeks to the end of December, Dunelm’s like-for-like sales grew 3.4 per cent, with total sales rising by 13.6 per cent to £297.5m.

However, gross margins came in lower than expected due to the sales contribution from Worldstores, a lower-margin business which Dunelm bought for £8.5m. By the close, Dunelm’s shares were down by 4.42 per cent at 670p. Mark Photiades, director of retail research at Cantor Fitzgerald, said Dunelm would have outperformed the market with its results, and it will be able to recover its margins.

@alys_key AIRBNB announced yesterday that users will be able to defer half the cost of booking accommodation through its platform. The Pay Less Up Front initiative means users only need to pay 50 per cent of the cost of their stay when booking, where they previously had to pay the full amount. Targeted at guests booking expensive longer stays, it is only an option on reservations worth at least $250 (£181). It follows research by the tech company which showed that January was the month in which British consumers said they most wanted to book a holiday, but 30 per cent could not afford to do so. “We understand it can be difficult to pay for all of your holiday upfront,” said Airbnb’s James McClure. “That’s why we’ve introduced our new feature which allows you to get holidays booked in advance... then make the main payment for your holiday closer to your actual trip.”


CITYAM.COM

WEDNESDAY 17 JANUARY 2018

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HITTING THE BRAKES General Motors forecasts profit growth to stall in 2018 before revamped pickups drive demand higher

CFA INSTITUTE TALK

What's happening to jobs in the finance industry?

GENERAL Motors said yesterday it expects earnings in 2018 to be largely in line with 2017 results, which are set to come in at the upper end of expectations. The rollout of its “next-generation full-size trucks” later in the year, is then expected to “generate very strong returns for years to come”. CEO Mary Barra said it is positioned “for another strong 2018 and an even better 2019”.

The Gym Group pumps up revenue with site openings

ALYS KEY

@alys_key BUDGET fitness giant The Gym Group posted a jump in revenue for 2017 yesterday, after expanding its empire to 128 sites. With 607,000 members by the end of the year, The Gym Group’s revenue was up 24.3 per cent versus 2016. This was largely down to a rapid increase in the number of The Gym sites. After acquiring the 18-strong Lifestyle Fitness chain and opening 21 other gyms over the year, the group increased its reach by 44 per cent to a total of 128. The rapid expansion has loaded on the firm’s debt, with current levels standing at £37.5m compared to £5.2m at the end of 2016.

The company continues to look towards expansion in 2018, with a target of 15-20 organic openings. Four of these are already planned for the first quarter of the year. The Gym increased its estimated share of the low cost gym market to 22.4 per cent last year, and grew faster than others in the category with 65 per cent of low cost gym net site growth. Chief executive John Treharne told City A.M. that the group was always interested in buying up sites from other gyms or making acquisitions similar to the Lifestyle Fitness takeover. The group also said it plans to roll

out a new member service proposition which would mean freelance personal trainers are offered part-time work in the gym, as well as running their own business on-site. The Gym Group and The company boasted more than 600,000 members at the last count rival Pure Gym faced criticism from work and pensions select committee chair Frank Field last year over using self-employed fitness trainers. But chief financial officer Richard Darwin told City A.M. the change in how personal trainers are employed was “not done to placate Frank Field”.

Hole in London TfL does not ‘fully understand’ why passenger numbers dropped homes budget REBECCA SMITH @BexKSmith LONDON Assembly members are not convinced that Transport for London (TfL) “fully understands” why its passenger numbers are falling, according to a new report. The London Assembly’s budget and performance committee yesterday published a response to the mayor’s draft budget, saying it had seen more indications that TfL was experiencing “financial difficulties”, with passenger numbers and fares revenue “well behind budget”. TfL has revised its fares expectation for 2017-2018 down by £240m on last year’s budget. London Assembly members are not convinced the dip in passenger numbers is “a ‘blip”, adding that if the fall is down to lifestyle changes, with more people working from

home, shopping online, and using ride-hailing apps like Uber, then an expected upswing “may not materialise”. TfL had blamed the unexpected fall on “economic factors affecting the whole of the UK”. The committee said the fall in fares revenue, and the end of TfL’s government subsidy, led to the suspension of road network improvements, while Tube upgrades were shelved too. It warned that Londoners will start to see effects over the next few years. A mayoral spokesperson said: “The mayor and TfL are investing record amounts in the future of London’s infrastructure, including the continued modernisation of the London Underground, investing in the next generation of cleaner buses, and record spending on London’s cycling infrastructure.”

CFA INSTITUTE TALK

HELEN CAHILL @HelCahill THE LONDON Assembly has raised concerns about a black hole in funding for affordable homes in the capital. In a response to Sadiq Khan’s budget for 2018-19, London Assembly members warned yesterday that there is a large funding gap for the 43,500 new affordable homes the capital needs each year. The Greater London Authority has estimated it needs £2.7bn each year for affordable homes, but it has a budget of just £500m. The report said the London mayor must bid for extra government funds, such as the £2.3bn Housing Infrastructure Fund announced in July last year. Meanwhile, the report said Khan was justified to raise council tax by 5.1 per cent to fund police officers.

Lori Pizzani discusses how jobs are changing for those already working in finance and those looking to get into the industry

N

o matter where your career stands, you can always count on one thing— the investment industry is constantly changing. The future will likely bring plenty of career opportunities as the profession evolves, but they may require some lateral thinking. First, the bad news: The industry has been experiencing layoffs as firms morph to meet new realities. Broadly speaking, many big firms are trying to flatten out their organisations. It’s clear the industry is preparing for a different future. The Future State of the Investment Profession, released in April 2017 by CFA Institute, cites a survey of 1,145 industry leaders to illustrate current global shifts. Of those surveyed, 84 per cent expect continued consolidation within the industry, and 52 per cent expect substantial or moderate contraction of the profit margins of asset management firms. However, there's opportunity if you know where to look. For example, Rebecca Fender, CFA, head of the future of finance initiative at CFA Institute, says “there will be more need for financial analysis skills and more opportunities in Asia” because many Asian countries have previously lacked access to professional financial services. Vanguard, the mega-index investing pioneer with 16 global locations and $4.3 trillion in assets under management, has been on a hiring spree in London, Melbourne, and Hong Kong. “Talent is critical to our future success,” says Tim Buckley, chief investment officer and managing director at Vanguard. The European market for Vanguard has been growing quickly, with particular needs for financial advisers. The firm currently manages $300 million of its AUM in non-US markets. “London is the global financial hub for a diverse pool of talent and for interaction with other firms. It’s a gateway to the world,” Buckley says.

It’s clear the industry is preparing for a different future What does Vanguard look for? CFA charterholders are appreciated for their knowledge and obvious commitment, according to Buckley. He also says Vanguard asks not only how well an individual manages money but “what is their higher order of thinking?” Buckley adds, “Analysts need to be comfortable with asking questions, being curious. We always look for someone with a purpose and who knows why they are doing this.” Perhaps the greatest impact has come from technology, used in amassing and sorting datasets and creating and using algorithms for modelling and selecting investments. Today, the technology trends primarily focus on implementing systems to take advantage of massive amounts of data from many sources. Yin Luo, CFA, vice chairman and managing director at Wolfe Research in New York City, says “the right move is about firms managing that data and giving analysts the tools to make better decisions.” £ Lori Pizzani is an independent business and financial services journalist.

READ MORE ONLINE For this article and others from CFA Institute go to: cityam.com/cfa-institute


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Robo-bookworms? AI reads as well as humans following breakthroughs LYNSEY BARBER

@lynseybarber RESEARCHERS at Microsoft have hailed a “major milestone” for artificial intelligence (AI) technology after they managed to create a system using the technology that can read just about as well as a human. They used what’s known as the Stanford Questions Answering Dataset (SQuAD), a tool commonly employed in scientific research to assess machine reading

comprehension, achieving the best ever score of 82.304, on a par with human comprehension. In addition to reading the information, the tech can be quizzed on what it is about, answering questions, with implications for search engine Bing and voice assistant Cortana. Microsoft is already looking at applying the technology to those products. It is not alone in the breakthrough. Chinese tech giant Alibaba also recorded a similar score of 82.440,

IAG ‘remains hopeful’ Niki deal will take off REBECCA SMITH

@BexKSmith BRITISH Airways owner IAG said yesterday it “remains hopeful” of being able to complete the acquisition of Austrian airline Niki, after a backand-forth over where insolvency proceedings should be handled. An Austrian court had ruled on Friday that proceedings should be held there rather than Germany, which had put a question mark over the previously agreed deal. Yesterday however, Niki’s German administrator Lucas Floether and Austrian counterpart Ulla Reisch issued a joint statement that they would work together on securing a deal for Niki. In a statement yesterday, IAG said it “remains interested in the assets of

Our robot overlords’ comprehension is getting more advanced by the day

FLAT WHITE ECONOMY The UK coffee market is primed to hit £13bn by 2022 RESEARCH by Allegra World Coffee Portal predicted that the total number of UK coffee shops will reach 31,400 by 2022, up from 24,061 in 2017. Last year the coffee market grew by 7.3 per cent, making it worth £9.3bn. This is expected to reach £13bn in the next five years.

Niki and is looking forward to the new process being completed promptly”. “The group remains hopeful that Vueling can continue with its acquisition and safeguard up to 740 former Niki jobs in Austria and Germany and provide airline customers in Austria, Germany and Switzerland with a greater choice of flights,” it added. Last month, IAG announced plans for a subsidiary of its Vueling airline to buy the assets of Niki – previously part of collapsed carrier Air Berlin. It said it would purchase the airline for €20m (£18m) and provide additional liquidity to the firm of up to €16.5m. Air Berlin filed for insolvency last August after key shareholder Etihad Airways withdrew financial support.

Kirkland Whittaker (Target AVC) Pension Scheme - 007845, Hill Samuel Executive Retirement Plan (0000009047), Prebon Marshall Yamane (UK) Ltd Retirement Benefits Scheme - IS00029253, Prebon Marshall Yamane (UK) Ltd Pension Scheme - H25150, Tullett & Tokyo Forex Allied Dunbar Pension Scheme - P30073-945-PB ("the Schemes") Notice is hereby given pursuant to Section 27 (1) of the Trustee Act 1925 that the Trustees of the above Schemes are winding up the Schemes. If you have received communication from the Trustees regarding the wind up of the Schemes then you do not need to take any action. Any former employees of Tullett Prebon (UK) Limited or Tullett Prebon Group Limited or any associated company, who believe that they were members of the above named Schemes and who are not receiving a pension from the Schemes or who have not received announcements from the Trustees of the Schemes are required to write to Mrs Sarah Hamilton at Aon Employee Benefits, Briarcliff House, Farnborough, Hampshire, GU14 7TE to make a claim for benefits under the Schemes. Claimants should provide their full name, address, date of birth, the period during which they worked for Tullett Prebon (UK) Limited or Tullett Prebon Group Limited or any associated company and any documents supporting their claim. Claims must be made within 2 months of the date of publication of this advertisement. In addition, if any person or persons have any other claims against or interest in the Schemes, they are requested to write to Mrs Sarah Hamilton at the above address setting out particulars of such a claim in writing within 2 months of the date of publication of this advertisement. After the 2 month period, the Trustees may distribute the assets of the Schemes amongst the persons entitled thereto having regard only to the claims and interests of which they have prior notice and will not, as regards the assets so distributed, be liable to any person of whose claim they do not have notice. If you have already received an announcement from the Trustees of the Schemes there is no need to respond to this advertisement. THE TRUSTEES OF THE SCHEMES

putting the two tech giants jointly at the top of the SQuAD leaderboard. According to Microsoft, the technology could be used to make books and documents digital – essentially making the “control F” function on computers for finding words and phrases applicable to printed information. They said it would, for example, “let drivers more easily find the answer they need in a dense car manual, saving time and effort in tense or difficult situations”.

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Euromoney probed by EU ALYS KEY @alys_key SHARES in Euromoney dropped yesterday after the group said its offices were being inspected by EU authorities. The firm said that the European Commission was conducting an “unannounced inspection” at the Brussels office of its RISI unit. The investigation concerns a sector of the paper industry, which is subject to an antitrust probe. RISI provides information to the paper industry. The Commission has previously inspected the offices of companies involved in the industry due to concerns they have violated regulations with anticompetitive practices such as price fixing. Shares fell one per cent after the announcement.

H&M in doghouse for ad

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AST week, high-street retail giant H&M found itself in the middle of a race controversy. It faced a public backlash after it emerged that the company’s website carried a photo of a black child model wearing a hoodie with the words “coolest monkey in the jungle” featured on the front. H&M swiftly apologised, removed the image from its website and withdrew the item from sale. However, famous names from sport – such as Manchester United striker Romelu Lukaku – condemned the brand on Twitter. American music star The Weeknd, who had a clothing line with the retailer, severed ties with the company. The incident has been labelled a PR disaster for the retailer, but what does YouGov BrandIndex data tell us about how the brand has been damaged? Since the story emerged, H&M’s buzz score (which measures whether someone has heard anything positive or negative about the brand in the past two weeks) has dropped sharply, from one to minus eight. There has been a similar impact in the US. There, H&M’s buzz score has declined by 11 points (from five to minus six). The story has got people talking on both sides of the Atlantic. H&M’s word of mouth exposure score (whether

Stephan Shakespeare

someone has discussed the brand with somebody else) rose from three to nine in the UK, while in the US it jumped from five to nine. Of course, adverse headlines do not necessarily alter a consumer’s perception of a brand, especially if it has been well-regarded until that point. In this

respect there is positive news for H&M in the UK. Its impression score (whether someone has a positive impression of the brand) has barely moved since the story broke, and remains around the 17 mark. However, this is not the case in America, where its impression score has fallen from 15 to nine. While this drop is not disastrous, in order to win back consumers that have changed their minds the retailer may need to stress that the incident was a genuine mistake, and that it has learnt from it. £ Stephan Shakespeare is the chief executive of YouGov

H&M’s buzz score decline in the UK and US Have you heard something positive or negative about H&M in the past two weeks?

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MARKETS

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CITY DASHBOARD LONDON REPORT

Energy and mining stocks knock market O IL AND mining companies dragged the FTSE 100 index to a negative close yesterday, tracking energy and metals prices lower, after gaining earlier in the session on a fall in sterling. The blue-chip FTSE 100 index ended down 13 points at 7,755.93, retreating further from a record set last week and slightly underperforming the broader European market. Inflation dipped slightly after six months of gains, official data showed earlier in the day, suggesting the effects on consumer prices of the pound’s slide after the 2016 Brexit vote may be starting to fade. Economists said it was too early to predict a sustained slowing of price growth in the UK. But sterling fell following the data release, boosting the FTSE 100 into positive territory. Interest rate-sensitive banks propped up the FTSE, but the downward pressure from oil and mining shares grew through the rest of the session, pulling the index into the red. BP slid 2.9 per cent after the energy

company said it would take a charge of around $1.7bn in its fourth-quarter results as part of the settlement of the 2010 Deepwater Horizon spill in the United States. Weaker Brent crude prices also weighed on the energy sector, while a slide in copper prices pulled BHP Billiton, Glencore, Rio Tinto and Anglo American down by between 1.4 and three per cent. Primark-owner Associated British Foods advanced 2.2 per cent on the back of a Barclays upgrade to Associated British Foods owns the high street discount retailer Primark “overweight” from “equal weight”, with analysts saying that in five to 10 years they believe ABF’s Primark clothing retail arm can build a US business the size of its European operation yesterday. Outsourcer Capita tumbled six per cent after client Prudential said it was transferring the administration of its life and pensions business to a new supplier. Apparel retailer JD Sports saw its shares jump more than six per cent after it raised its guidance.

YOUR ONE-STOP SHOP BROKER VIEWS AND MARKET REPORTS

BEST OF THE BROKERS To appear in Best of the Brokers, email your research to notes@cityam.com

P 16 Jan

440

421.20

430 420 410

10 Jan

11 Jan

1. Johnson Matthey up 2.84 per cent 2. NMC Health up 2.31 per cent 3. Associated Br. Food up 2.23 per cent

TOP FALLERS 1. Fresnillo down 3.47 per cent 2. Rio Tinto down 3.02 per cent 3. Antofagasta down 2.79 per cent

7,780

850

P

840 830 820

16 Jan

798.60

810 800

10 Jan

11 Jan

16 Jan

7,755.93

7,700

10 Jan

12 Jan

15 Jan

16 Jan

Plastics maker RPC was chucked in the bin by Berenberg yesterday, which downgraded its recommendation from “buy” to “hold” and lowered its target price by 200p to 920p. The broker said that the investment thesis for RPC had been “simple” when it began covering the firm in 2016, but a rights issue and the acquisition of Letica had “changed the debate”. It noted accusations that RPC’s acquisitions were not creating value – that the exceptional costs were too high and the resultant cash flow too low. Berenberg said it preferred DS Smith in the sector.

WATKIN JONES 230

P

225 220 215

10 Jan

7,760 7,720

16 Jan

207

16 Jan

200

7,800

7,740

15 Jan

RPC GROUP

205

FTSE

12 Jan

Emerging markets investor Ashmore should be finding favour this year, as several institutions have named the geography as one of the promising hotspots for the year ahead. Indeed Canaccord Genuity seemed impressed, as fund inflows and performance beat its predictions, which were already top of the market. Although it maintained a “buy” recommendation, noting that “markets will remain supportive in the short-to-medium term”, Canaccord said there remained “a number of longerterm tailwinds for emerging markets and Ashmore”.

210

TOP RISERS

Energy sector loses buzz as oil prices fall

ASHMORE 450

11 Jan 12 Jan 15 Jan 16 Jan

11 Jan

NEW YORK REPORT

12 Jan

15 Jan

16 Jan

In a mixed day for construction company Watkin Jones, its chief executive stepped down for personal reasons as it reported record results. The 13 per cent rise in earnings was in line with expectations, and the student development business was supported by strong forward sales. Mark Watkin Jones, the outgoing chief executive, said he was leaving the business on “solid foundations”. Peel Hunt issued a “buy” recommendation and a target price of 230p, saying the group’s prospects were “strong” and that there was “excellent visibility on future profitability”.

W

ALL Street paused its rally yesterday, weighed down by weakness in General Electric shares and as lower oil prices dragged down the energy sector. The energy sector fell 1.2 per cent as Brent crude oil shed some of its recent gains, falling nearly $1 per barrel. Industrials and materials were the other major laggards on the S&P, down 0.9 per cent and 1.2 per cent, respectively. General Electric fell 2.9 per cent after raising the prospect of breaking itself up and announcing more than $11bn (£8bn) in charges from its longterm care insurance portfolio and new US tax laws. The CBOE Volatility index, a widely followed measure of market anxiety, rose to a more than one-month high of 11.66. The Dow Jones Industrial Average fell 10.33 points, or 0.04 per cent, to 25,792.86, the S&P 500 lost 9.82 points, or 0.35 per cent, to 2,776.42 and the Nasdaq Composite dropped 37.38 points, or 0.51 per cent, to 7,223.69. Earlier yesterday, the Dow Jones Industrial Average had broken above the 26,000 mark for the first time as fourth-quarter earnings season got off to a strong start following upbeat results from UnitedHealth and Citigroup. UnitedHealth rose 1.9 per cent after the largest US health insurer reported results that beat estimates and raised its 2018 earnings outlook. More than three quarters of the 30 S&P 500 companies that have reported so far have topped profit estimates, according to Thomson Reuters. Pharma group Merck surged 5.8 per cent after early results from a key study showed its blockbuster drug Keytruda and two chemotherapy medicines helped lung cancer patients live longer and stopped the disease from advancing. Media conglomerate Viacom fell seven per cent after sources told Reuters CBS Corp and the company were not in active merger discussions.

CITY MOVES WHO’S SWITCHING JOBS COLLIERS INTERNATIONAL

Global real estate adviser, Colliers International, has strengthened its residential offering in London with the appointment of Nina Davies as a director in its residential division. The move will see Nina relocate back to London from Asia, where she has spent the past eight years (Malaysia, Singapore and Hong Kong), primarily as operations director for the Colliers International Properties team. Nina began working in the London residential property market in

1999. She moved to Asia in 2009 and for the past five years, she has been instrumental in numerous successful launches for Colliers’ clients including Lendlease; Berkeley Group; Redrow; Taylor Wimpey and Regal.

HIKMA PHARMACEUTICALS

Surendera Tyagi, PhD, has joined Hikma Pharmaceuticals as group chief scientific officer and global head of research and development. Surendera will focus on the group’s non-injectables business during the first year and will become a member of Hikma’s executive committee. Surendera joins from Fresenius Kabi, where he most recently led their US Innovation & Development Center. While at Fresenius,

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

he successfully expanded the company’s oncology business. Prior to joining Fresenius Kabi, Surendera served as chief scientific officer for Dabur Pharma, an oncology company that was acquired by Fresenius in 2008. He also has held scientific and/or regulatory roles at Roche, IGEN, Abbott/Hospira, and Schwarz Pharma with increasing management responsibilities.

JLT SPECIALTY

JLT Specialty, the specialist insurance broker and risk consultant, has appointed Colin Taylor as partner within the professional indemnity team. Colin has over 25 years of experience in the insurance industry, and brings with him a wealth of knowledge regarding the professional indemnity and risk management needs of

the legal and professional services sector. Colin is one of the most experienced specialist professional indemnity brokers in the UK. He has a deep rooted knowledge of the risk issues faced by professional services firms and will no doubt be a major asset both to our team and our clients. He joins from Willis Towers Watson where he was executive director in their FINEX division focussing on the risk management requirements for larger firms which included the implementation of risk management training programmes for businesses. Prior to this Colin was director and head of risk management services at Prime Professions, and was shortlisted in 2011 and 2013 for Risk Manager of the Year at the IRM Risk Management awards.


WEDNESDAY 17 JANUARY 2018

CITYAM.COM

FTSE 100

FTSE 250

7755.93 13.21

20877.30 44.53

Price Chg High Low

GILTS -0.02 0.01 -0.01 0.00 -0.01 -0.02 0.02 -0.01 0.04 0.07 0.01 0.03 0.09 0.19 0.14 0.20 0.13 0.19 0.32 0.38 0.19 0.32 0.42 0.47 0.40 0.55 0.61 0.60 0.64 0.30 0.29

Tsy 5.000 18 . . . . . .100.63 Tsy 1.250 18 . . . . . . .100.41 Tsy 4.500 19 . . . . . .104.46 Tsy 3.750 19 . . . . . . .105.17 Tsy 4.750 20 . . . . . .108.85 Tsy 2.500 20 . . . . . .364.03 Tsy 8.000 21 . . . . . . .124.41 Tsy 1.875 22 . . . . . . .120.69 Tsy 4.000 22 . . . . . . .113.21 Tsy 2.250 23 . . . . . . .107.14 Tsy 2.500 24 . . . . . .364.29 Tsy 0.125 24 . . . . . . .113.86 Tsy 5.000 25 . . . . . .126.96 Tsy 4.250 27 . . . . . . .127.24 Tsy 1.250 27 . . . . . . .133.05 Tsy 6.000 28 . . . . . .146.70 Tsy 0.125 29 . . . . . . . .123.11 Tsy 4.125 30 . . . . . .366.55 Tsy 4.750 30 . . . . . . .137.80 Tsy 4.250 32 . . . . . .134.07 Tsy 1.250 32 . . . . . . .150.62 Tsy 0.125 36 . . . . . . .139.55 Tsy 4.250 36 . . . . . . .139.13 Tsy 4.750 38 . . . . . . .151.80 Tsy 0.625 40 . . . . . . .161.15 Tsy 4.500 42 . . . . . .153.37 Tsy 3.500 45 . . . . . . .135.12 Tsy 4.250 46 . . . . . . .154.12 Tsy 4.025 49 . . . . . .160.02 Tsy 0.500 50 . . . . . .187.44 Tsy 0.250 52 . . . . . .183.54

105.5 101.7 109.3 109.4 114.0 375.0 133.0 129.1 118.0 110.9 375.4 120.3 132.9 133.0 141.5 153.9 130.6 380.7 143.9 139.1 160.8 150.1 144.1 157.2 175.2 159.2 140.3 160.4 166.7 209.1 206.3

100.6 100.4 104.4 105.2 108.8 363.6 124.4 120.4 113.1 107.0 363.2 113.6 126.7 126.3 132.0 146.3 121.4 360.2 136.2 131.5 147.7 134.8 135.1 147.0 155.6 147.7 128.6 147.3 152.5 177.0 171.5

AEROSPACE & DEFENCE BAE Systems . . . . . . . . .592.8 Cobham . . . . . . . . . . . . .131.4 Meggitt . . . . . . . . . . . . .490.0 QinetiQ Group . . . . . . . .218.7 Rolls-Royce Holdi . . . . .853.6 Senior . . . . . . . . . . . . . .292.8 Ultra Electronics . . . . .1480.0

1.4 0.3 2.4 2.2 -2.0 -4.0 1.0

677.0 148.0 526.0 319.7 981.0 300.0 2204.0

535.5 96.2 410.6 201.5 660.0 175.8 1142.0

AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .442.0 4.6 447.6 294.3

BANKS Aldermore Group . . . . . .311.0 0.4 Barclays . . . . . . . . . . . . .199.4 3.9 BGEO Group . . . . . . . .3756.0 -22.0 Close Brothers Gr . . . .1490.0 -3.0 CYBG . . . . . . . . . . . . . . .325.4 2.2 HSBC Holdings . . . . . . .793.0 8.1 Lloyds Banking Gr . . . . .70.5 -0.1 Metro Bank . . . . . . . . .3658.0 34.0 Royal Bank of Sco . . . . .298.7 -1.4 Standard Chartere . . . . .817.4 1.3 TBC Bank Group . . . . . .1744.0 2.0 Virgin Money Hold . . . .288.6 -2.0

311.9 210.2 239.3 178.9 3868.0 2766.0 1715.0 1316.0 340.3 260.0 796.0 620.8 73.1 62.2 3834.0 3143.0 302.4 214.9 846.7 685.9 1818.0 1390.0 348.0 258.2

BEVERAGES Barr (A.G.) . . . . . . . . . . .667.0 Britvic . . . . . . . . . . . . . .797.0 Coca-Cola HBC AG . . .2336.0 Diageo . . . . . . . . . . . . .2601.5

11.0 -3.0 -41.0 -18.5

670.0 820.0 2671.0 2725.0

498.9 582.0 1780.0 2131.5

CHEMICALS Croda Internation . . . .4422.0 Elementis . . . . . . . . . . .295.0 Johnson Matthey . . . .3300.0 Sirius Minerals . . . . . . . .23.2 Synthomer . . . . . . . . . .489.8

34.0 4512.0 3310.0 1.8 317.1 259.1 91.0 3503.0 2727.0 0.2 35.0 17.3 0.0 509.5 372.0

FTSE ALL SHARE

BATS UK 100

4260.08 4.36

13156.93 37.72

Price Chg High Low Victrex plc . . . . . . . . . .2670.0 -8.0 2730.0 1832.0

CONSTRUCTION & MATERIALS Balfour Beatty . . . . . . .295.0 CRH . . . . . . . . . . . . . . .2680.0 Galliford Try . . . . . . . . .1179.0 Ibstock . . . . . . . . . . . . .265.4 Kier Group . . . . . . . . . .1147.0 Marshalls . . . . . . . . . . . .441.6 Polypipe Group . . . . . . .413.0

-2.6 -13.0 -6.0 -2.0 27.0 -7.2 1.4

307.6 253.5 2920.0 2530.0 1583.0 1142.0 270.2 176.3 1503.0 993.5 480.2 281.7 436.5 332.2

ELECTRICITY Drax Group . . . . . . . . . .277.8 0.2 384.6 256.4 SSE . . . . . . . . . . . . . . . .1333.0 3.0 1557.0 1294.0

ELECTRONIC & ELECTRICAL EQ. Halma . . . . . . . . . . . . .1289.0 Morgan Advanced M . .366.2 Renishaw . . . . . . . . . .5520.0 Spectris . . . . . . . . . . . .2660.0

8.0 9.0 175.0 13.0

1322.0 913.5 366.8 281.9 5555.0 2713.0 2834.0 2229.0

EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .1386.0 Alliance Trust . . . . . . . .768.0 Bankers Inv Trust . . . . .906.0 British Empire Tr . . . . . .752.0 Caledonia Investm . . .2845.0 City of London In . . . . .442.5 Edinburgh Inv Tru . . . .706.0 F&C Global Smalle . . . .1415.0 Fidelity China Sp . . . . . .256.5 Fidelity European . . . . .232.0 Finsbury Growth & . . . .759.0 Foreign and Colon . . . .665.0 GCP Infrastructur . . . . . .122.2 Genesis Emerging . . . .745.0 Greencoat UK Wind . . . .122.4 HarbourVest Globa . . .1274.0 Herald Investment . . .1195.0 HICL Infrastructu . . . . . .156.5 International Pub . . . . .157.2 John Laing Infras . . . . . .124.8 JPMorgan American . . .415.5 JPMorgan Emerging . . .912.0 JPMorgan Indian I . . . . .771.0 Jupiter European . . . . .794.0 Mercantile Invest . . . .2210.0 Monks Inv Trust . . . . . . .811.0 Murray Internatio . . . .1276.0 NB Global Floatin . . . . . .94.1 Perpetual Income . . . .384.5 Pershing Square H . . .1022.0 Personal Assets T . .40900.0 Polar Capital Tec . . . . .1182.0 RIT Capital Partn . . . . .1996.0 Riverstone Energy . . . .1316.0 Scottish Inv Trus . . . . . .881.0 Scottish Mortgage . . . .468.6 Sequoia Economic . . . .110.5 Syncona Limited N . . . .213.5 Temple Bar Inv Tr . . . .1332.0 Templeton Emergin . . .809.0 The Renewables In . . . .108.8 TR Property Inv T . . . . .398.5 Vietnam Enterpris . . . .466.0 Witan Inv Trust . . . . . .1108.0 Woodford Patient . . . . .84.0 Worldwide Healthc . .2600.0

10.0 1386.0 1106.0 3.0 773.0 645.0 6.0 906.4 701.0 3.0 753.0 647.0 25.0 3008.0 2625.0 -0.5 444.3 393.4 0.0 779.5 686.0 15.0 1415.0 1222.0 2.0 256.5 176.8 2.0 232.5 185.0 -3.0 777.0 647.0 4.0 668.0 542.0 0.8 133.0 118.8 8.0 745.0 605.0 -0.4 126.5 116.7 14.0 1306.0 1188.0 15.0 1200.0 881.5 -0.3 174.6 153.3 0.0 166.6 150.3 0.2 140.2 118.3 2.0 416.0 359.6 10.0 912.0 695.0 1.0 785.0 609.0 11.0 796.0 553.5 5.0 2214.0 1719.0 6.0 816.0 588.5 -4.0 1307.0 1135.0 -0.2 100.2 93.0 -1.0 408.5 356.0 12.0 1250.0 959.0 50.0 41580.039270.0 6.0 1197.0 859.5 -4.0 2010.0 1815.0 12.0 1370.0 1204.0 9.0 891.0 763.0 3.0 471.0 336.0 -0.5 114.5 106.1 1.5 214.0 128.0 4.0 1336.0 1210.0 0.0 815.0 610.0 0.0 112.2 102.8 4.5 405.0 286.0 -4.0 477.0 303.0 2.0 1112.0 903.5 1.4 106.0 81.6 0.0 2679.0 2114.0

18984.55 12.45

Price Chg High Low Arrow Global Grou . . . .430.5 -8.0 470.5 292.5 Ashmore Group . . . . . . .421.2 -6.6 447.2 290.4 Brewin Dolphin Ho . . . .379.8 -1.2 393.0 301.7 Charles Taylor . . . . . . . .274.0 -6.5 290.0 205.4 Charter Court Fin . . . . .289.0 1.5 293.5 228.8 City of London In . . . . .430.0 0.0 435.0 350.0 CMC Markets . . . . . . . . .154.8 0.8 175.5 109.0 Coats Group . . . . . . . . . .82.8 -2.2 90.0 52.0 Hargreaves Lansdo . . .1844.0 24.5 1844.0 1266.0 IG Group Holdings . . . . .757.0 -4.5 792.5 491.9 Intermediate Capi . . . .1145.0 -4.0 1178.0 684.0 International Per . . . . . .213.2 6.2 222.0 157.5 Investec . . . . . . . . . . . . .539.8 4.6 627.5 461.4 IP Group . . . . . . . . . . . . .135.4 -2.8 194.7 112.5 John Laing Group . . . . .295.4 -0.6 317.8 252.0 Jupiter Fund Mana . . . .592.0 4.4 631.4 393.4 Liontrust Asset M . . . . .560.0 12.0 562.0 380.9 LMS Capital . . . . . . . . . . .47.7 -0.1 57.1 41.3 London Finance & . . . . .44.5 0.0 46.0 42.0 London Stock Exch . . .3699.0 24.0 3983.0 2946.0 Man Group . . . . . . . . . . .214.0 -0.3 214.8 124.3 OneSavings Bank . . . . .405.0 -1.0 470.3 317.3 Paragon Banking G . . .500.5 -4.0 512.0 400.0 Provident Financi . . . . .804.0 -116.0 3265.0 589.5 Rathbone Brothers . .2666.0 40.0 2800.0 2024.0 Real Estate Credi . . . . . .168.0 0.0 175.0 159.9 Record . . . . . . . . . . . . . .44.0 -0.5 52.5 36.3 S&U . . . . . . . . . . . . . . .2350.0 0.0 2420.0 1883.5 Sanne Group . . . . . . . . .767.0 7.0 830.0 592.5 Schroders . . . . . . . . . .3670.0 17.0 3689.0 2901.0 TP ICAP . . . . . . . . . . . . .538.2 4.4 544.5 437.0 VPC Specialty Len . . . . . .79.4 -0.8 83.0 74.3 Walker Crips Grou . . . . . .41.5 0.0 48.5 38.5 Xafinity . . . . . . . . . . . . .186.0 0.0 194.0 152.3

FIXED LINE TELECOMS BT Group . . . . . . . . . . . .274.0 -1.7 388.6 243.8 TalkTalk Telecom . . . . . .140.1 3.2 218.0 131.6 Telecom Plus . . . . . . . .1200.0 16.0 1321.0 1069.0

FOOD & DRUG RETAILERS Booker Group . . . . . . . .229.5 Greggs . . . . . . . . . . . . .1336.0 Morrison (Wm) Sup . . .229.5 Ocado Group . . . . . . . . .426.5 Sainsbury (J) . . . . . . . .256.2 SSP Group . . . . . . . . . . .658.0 Tesco . . . . . . . . . . . . . . . .211.8 UDG Healthcare Pu . . . .808.5

1.7 31.0 0.7 -1.5 5.3 5.5 3.9 8.5

233.2 1399.0 252.9 437.8 281.7 687.5 214.4 959.0

182.7 964.5 207.0 238.5 224.8 390.6 166.5 635.0

FOOD PRODUCERS Associated Britis . . . . .2891.0 Cranswick . . . . . . . . . .3220.0 Dairy Crest Group . . . . .590.0 Greencore Group . . . . .220.9 Purecircle Limite . . . . . .470.5 Tate & Lyle . . . . . . . . . .689.2 Unilever . . . . . . . . . . .3990.0

63.0 6.0 1.5 -0.8 5.0 0.2 -10.0

3371.0 3337.0 652.5 262.8 517.0 795.0 4548.5

2361.0 2277.0 545.5 182.0 275.0 625.5 3191.0

FORESTRY & PAPER Mondi . . . . . . . . . . . . . .1937.0 6.5 2130.0 1693.0

GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .144.2 National Grid . . . . . . . . .841.4 Pennon Group . . . . . . .748.6 Severn Trent . . . . . . . .2045.0 United Utilities . . . . . . .771.2

0.7 -0.6 5.4 19.0 8.2

235.8 1091.0 944.0 2553.0 1056.0

DOW JONES

BATS UK 250

137.3 837.5 735.2 2015.0 760.1

FINANCIAL SERVICES

GENERAL INDUSTRIALS

3i Group . . . . . . . . . . . .949.0 8.4 969.5 687.5 3i Infrastructure . . . . . .207.5 0.0 214.5 187.0 Allied Minds . . . . . . . . .158.0 -4.0 418.0 116.0

RPC Group . . . . . . . . . . .798.6 -36.4 1003.3 720.5 Smith (DS) . . . . . . . . . . .513.2 5.6 558.5 418.8 Smiths Group . . . . . . . .1671.5 -1.5 1684.0 1444.0

25792.86 10.33

Price Chg High Low Smurfit Kappa Gro . . .2570.0 28.0 2604.0 1962.0 Vesuvius . . . . . . . . . . . .619.5 2.0 620.0 425.5

GENERAL RETAILERS Auto Trader Group . . . .356.8 B&M European Valu . . .416.4 Brown (N.) Group . . . . .284.4 Card Factory . . . . . . . . .213.8 Dignity . . . . . . . . . . . . .1933.0 Dixons Carphone . . . . . .199.1 Dunelm Group . . . . . . .670.0 Halfords Group . . . . . . .353.4 Inchcape . . . . . . . . . . . .759.5 JD Sports Fashion . . . . .389.9 Just Eat . . . . . . . . . . . . .806.2 Kingfisher . . . . . . . . . . .345.3 Marks & Spencer G . . . .310.2 Next . . . . . . . . . . . . . .5040.0 Pets at Home Grou . . . .174.8 Saga . . . . . . . . . . . . . . . .122.9 Sports Direct Int . . . . . .374.0 Ted Baker . . . . . . . . . .3002.0 WH Smith . . . . . . . . . .2154.0

6.8 1.4 -6.6 -1.6 53.0 -1.9 -31.0 -4.6 -18.0 24.4 16.2 -1.7 3.2 36.0 -0.6 -3.1 -1.0 0.0 0.0

435.9 319.0 423.6 293.4 357.8 200.6 355.0 213.7 2767.0 1594.0 350.9 149.1 753.5 545.0 385.0 307.4 880.5 704.0 456.0 303.3 824.0 496.0 368.1 288.0 395.5 297.8 5320.0 3617.0 241.7 154.9 215.3 121.0 419.5 284.0 3118.0 2320.0 2347.0 1480.0

HEALTH CARE EQUIPMETN & S. Assura . . . . . . . . . . . . . . .62.7 -0.2 66.7 51.8 Convatec Group . . . . . . .191.8 2.7 344.0 182.0 Mediclinic Intern . . . . .600.2 1.0 887.0 507.5

S&P 500

/€ 1.1249

0.0005 €/$ 1.2258

0.0009

7223.69 37.37

2776.42 9.82

/$ 1.3791

0.0002 €/£ 0.8889

0.0001

/¥ 152.26

0.1521 €/¥ 135.31

0.2467

INDUSTRIAL METALS & MINING Evraz . . . . . . . . . . . . . . .373.9 -2.4 382.9 173.2 Ferrexpo . . . . . . . . . . . .309.9 2.8 323.2 125.0

INDUSTRIAL TRANSPORTATION 365.0 279.5 3160.0 2206.0 1761.0 1437.0 464.8 369.9 303.2 172.8

NON LIFE INSURANCE Admiral Group . . . . . . .1881.5 Beazley . . . . . . . . . . . . .507.5 Direct Line Insur . . . . . .369.1 esure Group . . . . . . . . .245.0 Hastings Group Ho . . . .303.8 Hiscox Limited (D . . . .1398.0 Jardine Lloyd Tho . . . .1422.0 Lancashire Holdin . . . . .657.0 RSA Insurance Gro . . . .620.8

13.0 -0.5 0.1 -6.4 -3.4 5.0 20.0 0.0 -2.4

2178.0 534.5 411.3 303.0 325.0 1470.0 1448.0 759.5 666.5

1732.0 383.3 333.8 200.1 220.4 997.5 997.5 611.0 562.5

Risers

% 6.7 5.2 4.2 3.9 3.6 3.3 3.1 2.8 2.8 2.7

LIFE INSURANCE Aviva . . . . . . . . . . . . . . .526.8 -3.0 544.0 470.6

Fallers % Provident Financia . . . . . . . . . .804.0 -12.6 Capita . . . . . . . . . . . . . . . . . . . . .395.0 -6.2 Hochschild Mining . . . . . . . . . . .247.2 -4.8 Dunelm Group . . . . . . . . . . . . . .670.0 -4.4 RPC Group . . . . . . . . . . . . . . . . .798.6 -4.4 Fresnillo . . . . . . . . . . . . . . . . . . .1378.5 -3.5 Serco Group . . . . . . . . . . . . . . . .102.0 -3.2 Vedanta Resources . . . . . . . . . .924.2 -3.1 Rio Tinto . . . . . . . . . . . . . . . . . .4046.5 -3.0 Antofagasta . . . . . . . . . . . . . . .1009.5 -2.8

Price Chg High Low NMC Health . . . . . . . . .3102.0 70.0 3216.0 1583.0 Smith & Nephew . . . . .1254.5 -3.5 1431.0 1170.0 Spire Healthcare . . . . . .241.6 -5.0 361.0 221.5

HHOLD GDS & HOME CONSTR. Barratt Developme . . . .618.4 Bellway . . . . . . . . . . . .3574.0 Berkeley Group Ho . . .4120.0 Bovis Homes Group . . .1143.5 Countryside Prope . . . .337.6 Crest Nicholson H . . . . .525.0 McCarthy & Stone . . . . .146.5 Persimmon . . . . . . . . .2621.0 Reckitt Benckiser . . . . .6771.0 Redrow . . . . . . . . . . . . .642.5 Taylor Wimpey . . . . . . .198.2

2.0 36.0 20.0 -6.0 0.0 -1.5 0.0 2.0 1.0 1.5 0.5

700.0 471.1 3792.0 2457.0 4240.0 2787.0 1213.0 755.0 371.5 223.9 636.5 486.1 196.9 145.6 2890.0 1886.0 8108.0 6355.0 664.5 433.8 211.2 165.1

Bodycote . . . . . . . . . . .1006.0 22.5 Hill & Smith Hold . . . . .1327.0 -3.0 IMI . . . . . . . . . . . . . . . . .1413.0 -30.0 Melrose Industrie . . . . .234.3 3.7 RHI Magnesita N.V . . .4328.0 -69.0

1014.0 630.0 1475.0 1096.0 1453.0 1070.0 261.2 195.3 4428.0 3249.0

INDUSTRIAL ENGINEERING

Price Rightmove . . . . . . . . .4573.0 Sky . . . . . . . . . . . . . . .1008.0 STV Group . . . . . . . . . . .320.0 Tarsus Group . . . . . . . . .326.0 Trinity Mirror . . . . . . . . . .76.0 UBM . . . . . . . . . . . . . . . .786.5 WPP . . . . . . . . . . . . . . .1381.0 ZPG Plc . . . . . . . . . . . . . .351.8

Chg High Low 27.0 4582.0 3889.0 1.0 1023.0 900.0 0.0 389.8 312.5 0.0 334.0 260.5 -2.9 121.0 67.0 39.0 790.0 645.0 -11.0 1921.0 1253.0 4.2 394.0 321.7

MINING Acacia Mining . . . . . . . .199.0 1.6 Anglo American . . . . .1755.2 -28.4 Antofagasta . . . . . . . .1009.5 -29.0 BHP Billiton . . . . . . . . .1620.0 -40.0 Centamin (DI) . . . . . . . .164.3 -1.6 Fresnillo . . . . . . . . . . . .1378.5 -49.5 Glencore . . . . . . . . . . . .405.7 -3.9 Hochschild Mining . . . .247.2 -12.4 Kaz Minerals . . . . . . . . .944.0 -21.8 Polymetal Interna . . . .895.8 -25.6 Randgold Resource . . .7192.0-162.0 Rio Tinto . . . . . . . . . . .4046.5-126.0 Vedanta Resources . . . .924.2 -29.8

541.0 157.8 1783.6 959.4 1061.0 721.0 1660.0 1117.0 190.5 131.8 1725.0 1260.0 409.6 276.6 331.6 219.1 965.8 410.3 1095.0 803.5 8190.0 6420.0 4172.5 2910.0 1102.0 575.0

MOBILE TELECOMS Inmarsat . . . . . . . . . . . .521.4 -12.0 850.5 440.9 Vodafone Group . . . . . . .231.1 3.1 238.0 192.5

MAIN CHANGES UK 350 JD Sports Fashion . . . . . . . . . . . .389.9 UBM . . . . . . . . . . . . . . . . . . . . . .786.5 Hunting . . . . . . . . . . . . . . . . . . .636.0 Savills . . . . . . . . . . . . . . . . . . . .1003.0 TI Fluid Systems . . . . . . . . . . . . .254.2 Renishaw . . . . . . . . . . . . . . . . .5520.0 Mitie Group . . . . . . . . . . . . . . . . .195.0 Johnson Matthey . . . . . . . . . . .3300.0 Dignity . . . . . . . . . . . . . . . . . . . .1933.0 Capital & Counties . . . . . . . . . . .309.4

Price Chg High Low Just Group . . . . . . . . . . .156.2 Legal & General G . . . . .275.1 Old Mutual . . . . . . . . . . .233.7 Phoenix Group Hol . . . .782.5 Prudential . . . . . . . . . .1966.0 St James's Place . . . . .1246.0 Standard Life Abe . . . .436.0

0.9 0.8 3.9 -5.5 2.0 3.0 -1.2

170.4 276.8 234.4 798.5 1981.5 1257.5 447.1

121.5 232.8 188.0 723.0 1532.0 1030.0 345.0

55.0 0.4 0.0 0.8 0.4 -16.0 1.0 0.0 -0.2 1.4 -1.2 -2.9 -0.5 5.6 -11.0 7.5

2020.0 391.0 190.0 57.0 329.4 1305.0 117.2 215.0 86.4 761.0 195.3 219.6 27.6 366.5 811.0 1782.0

1550.0 286.1 157.3 40.5 216.0 1027.0 76.0 122.5 36.5 629.5 151.8 146.9 9.0 302.2 566.5 1398.0

MEDIA 4Imprint Group . . . . . .1980.0 Ascential . . . . . . . . . . . .382.8 Bloomsbury Publis . . . .188.0 Centaur Media . . . . . . . .50.5 Entertainment One . . . .318.6 Euromoney Institu . . .1180.0 Gocompare.com Gro . . .115.0 Haynes Publishing . . . .195.0 Huntsworth . . . . . . . . . . .81.4 Informa . . . . . . . . . . . . .747.4 ITE Group . . . . . . . . . . . .175.0 ITV . . . . . . . . . . . . . . . . . .169.1 Johnston Press . . . . . . . . .9.7 Moneysupermarket. . . .347.3 Pearson . . . . . . . . . . . . .718.4 Relx plc . . . . . . . . . . . .1654.5

OIL & GAS PRODUCERS BP . . . . . . . . . . . . . . . . . .518.3 -14.4 Cairn Energy . . . . . . . . .229.8 -6.4 Royal Dutch Shell . . . .2542.5 -24.5 Royal Dutch Shell . . . .2589.5 -19.5 Tullow Oil . . . . . . . . . . .228.4 -3.8

534.8 439.8 243.0 167.5 2577.1 1992.5 2617.0 2052.5 266.9 145.6

OIL EQUIPMENT & SERVICES Hunting . . . . . . . . . . . .636.0 25.5 657.5 382.6 Petrofac Ltd. . . . . . . . . .552.0 -9.0 946.0 349.0 Wood Group (John) . . .681.6 6.2 879.5 560.0

PERSONAL GOODS Burberry Group . . . . . .1785.0 14.0 1985.0 1566.0 PZ Cussons . . . . . . . . . .329.0 2.4 363.7 299.7 Superdry . . . . . . . . . . .1869.0 40.0 2076.0 1446.0

PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .5049.0 BTG . . . . . . . . . . . . . . . .750.5 Dechra Pharmaceut . .1984.0 Genus . . . . . . . . . . . . .2518.0 GlaxoSmithKline . . . . .1355.0 Hikma Pharmaceuti . .1007.5 Indivior . . . . . . . . . . . . .407.6 Shire Plc . . . . . . . . . . . .3575.0 Vectura Group . . . . . . . .119.0

-81.0 0.5 12.0 -6.0 2.0 -1.5 3.7 39.0 -0.6

5508.0 4194.0 779.0 534.5 2249.0 1366.0 2573.0 1689.0 1722.0 1275.5 2297.0 949.5 419.5 267.6 5036.0 3480.0 163.0 90.0

8.1 6.0 0.0 -0.6 3.4 -1.0 -1.0 37.5 6.6 -1.0

324.8 253.1 1989.0 190.2 7005.0 5700.0 151.8 134.5 291.1 234.2 366.2 298.5 499.6 347.2 1003.0 767.0 409.0 311.0 92.5 80.9

10.0 9.0 3.0 0.0

869.5 691.5 3118.0 703.7

REAL ESTATE INVEST. & SERV. Capital & Countie . . . . .309.4 CLS Holdings . . . . . . . . .233.5 Daejan Holdings . . . .5800.0 F&C Commercial Pr . . . .140.8 Grainger . . . . . . . . . . . .285.6 NewRiver REIT . . . . . . .302.0 Safestore Holding . . . . .487.8 Savills . . . . . . . . . . . . .1003.0 St. Modwen Proper . . .406.6 UK Commercial Pro . . . .90.2

AB INBEV .........................................................94.82 ADIDAS N........................................................168.50 AIR LIQUIDE....................................................108.40 AIRBUS.............................................................89.97 ALLIANZ .........................................................202.05 ASML HLDG .....................................................153.65 AXA...................................................................26.74 BANCO SANTANDER...........................................5.94 BASF N.............................................................93.90 BAYER N..........................................................104.52 BBVA...................................................................7.48 BMW................................................................92.64 BNP PARIBAS BR-A...........................................67.01 CRH PLC .............................................................0.00 DAIMLER N........................................................74.35 DANONE ..........................................................68.75 DEUTSCHE BANK N............................................15.23 DEUTSCHE POST N............................................40.22 DEUTSCHE TELEKOM N.......................................14.57 E.ON N................................................................9.05 ENEL N................................................................5.37 ENGIE................................................................14.66 ENI N .................................................................14.91 ESSILOR INTL ....................................................112.10 FRESENIUS .......................................................65.28 IBERDROLA ........................................................6.70 INDITEX ...........................................................28.66 ING GROUP.......................................................16.50 INTESA SANPAOLO N..........................................3.04 KON AH DEL BR.................................................18.44 L'OREAL ..........................................................184.05 LVMH..............................................................243.00 MUENCHENER RUECKV N.................................190.15 NOKIA................................................................4.04 ORANGE............................................................14.60 ROY.PHILIPS......................................................33.25 SAFRAN ...........................................................90.64 SAINT-GOBAIN..................................................47.94 SANOFI.............................................................73.40 SAP I ................................................................90.97 SCHNEIDER E.SE ...............................................74.80 SIEMENS N......................................................123.00 SOCIETE GENERALE..........................................46.09 TELEFONICA........................................................8.32 TOTAL................................................................48.14 UNIBAIL-RODAMCO........................................206.00 UNILEVER CERT ................................................45.86 VINCI ................................................................87.54 VIVENDI............................................................23.80 VOLKSWAGEN VZ I..........................................184.00

Chg High Low 1.4 609.5 501.5 1.4 145.6 108.7 0.1 294.0 194.7 17.6 1208.5 917.0 2.0 188.4 146.3 0.1 40.5 33.9 4.4 587.6 435.7 26.0 1055.0 873.0 1.8 151.4 137.2 2.0 813.0 571.5 13.0 1016.0 742.5

Price Chg High Low Mitchells & Butle . . . . . .269.2 -2.4 283.1 221.0 National Express . . . . .379.2 -2.2 388.8 334.7 Paddy Power Betfa . .8460.0 -70.0 8900.0 6665.0 Rank Group . . . . . . . . . .245.0 1.0 248.5 192.8 Stagecoach Group . . . . .165.1 3.1 217.5 154.3 Thomas Cook Group . . .129.5 0.0 130.0 84.1 TUI AG Reg Shs (D . . . .1598.5 10.5 1598.5 1068.0 Wetherspoon (J.D. . . .1264.0 19.0 1283.0 898.0 Whitbread . . . . . . . . .3946.0 46.0 4307.0 3512.0 William Hill . . . . . . . . . .338.0 3.0 341.1 240.0 Wizz Air Holdings . . . .3546.0 34.0 3700.0 1560.0

4.0 0.0 0.0 5.0 20.0 4.8 -5.0 6.0 14.0

Abcam . . . . . . . . . . . . .1153.0 17.0 1171.0 795.0 Advanced Medical . . . .311.0 4.0 350.0 199.5 ASOS . . . . . . . . . . . . . .6754.0 -84.0 6894.0 5119.0 Blue Prism Group . . . .1104.0 4.0 1639.0 395.0 Brooks Macdonald . . .1985.0 5.0 2582.0 1810.0 Camellia . . . . . . . . . .12600.0 -50.0 12725.010070.0 CareTech Holding . . . . .421.0 -7.0 454.8 342.0 CityFibre Infrast . . . . . . . .57.0 -1.6 70.0 39.5 Clinigen Group . . . . . .1034.0 -1.0 1177.0 758.0 Conviviality . . . . . . . . . .371.5 -6.5 426.3 233.5 CVS Group . . . . . . . . . .1030.0 19.0 1490.0 855.0 Dart Group . . . . . . . . . .689.0 9.0 719.0 482.0 EMIS Group . . . . . . . . . .967.0 -11.0 1017.0 833.5 Faroe Petroleum . . . . . .114.0 2.0 114.7 75.5 Fevertree Drinks . . . . .2123.0 13.0 2485.0 1105.0 First Derivatives . . . . .4160.0 10.0 4220.0 2112.0 Frontier Developm . . .1400.0 15.0 1510.0 276.5 Gamma Communicati .650.0 2.0 668.0 463.0 GB Group . . . . . . . . . . . .407.0 -5.0 455.0 277.5 Gooch & Housego . . . .1440.0 -35.0 1539.0 1044.0 Hurricane Energy . . . . . .37.0 -2.9 67.0 24.0 Iomart Group . . . . . . . .385.0 -1.5 410.0 285.5 IQE . . . . . . . . . . . . . . . . .125.5 -0.6 178.8 37.8 James Halstead . . . . . .439.0 0.0 542.0 421.3 Johnson Service G . . . . .138.0 -3.4 151.0 107.3 Keywords Studios . . . .1426.0 -30.0 1661.0 510.0 Learning Technolo . . . . .70.0 1.2 70.0 37.5 M&C Saatchi . . . . . . . . .382.0 -8.0 402.0 292.0 M. P. Evans Group . . . . .786.0 -3.0 819.8 635.0 Midwich Group . . . . . . .557.5 0.0 570.0 224.0 Mulberry Group . . . . . .1015.0 -5.0 1149.0 971.0 Next Fifteen Comm . . .438.0 2.0 455.0 307.8 Nichols . . . . . . . . . . . . .1452.5 32.5 1958.0 1420.0 Numis Corporation . . . .337.5 3.0 341.5 231.3 Pan African Resou . . . . . .13.9 0.1 18.0 12.5 Patisserie Holdin . . . . .386.0 -3.0 396.5 300.5 Polar Capital Hol . . . . .520.0 -12.0 558.0 329.3 Purplebricks Grou . . . .408.2 0.4 514.5 155.5 Redde . . . . . . . . . . . . . . .171.0 0.2 182.0 144.3 Renew Holdings . . . . . .453.0 7.0 485.0 410.0 RWS Holdings . . . . . . .465.0 -2.0 539.0 310.0 Scapa Group . . . . . . . . .460.8 -0.2 515.5 318.8 Secure Income Rei . . . .362.0 1.0 380.0 314.5 Smart Metering Sy . . . .808.0 13.0 874.5 479.5 Sound Energy . . . . . . . . .55.1 0.1 93.5 39.8 Staffline Group . . . . . . .997.0 9.0 1450.0 976.0 Telford Homes . . . . . . . .431.5 2.5 444.5 316.8 Thorpe (F.W.) . . . . . . . .350.0 -5.5 396.5 286.5 Watkin Jones . . . . . . . .207.0 4.0 249.0 119.0 Young & Co's Brew . . .1355.0 5.0 1405.0 1300.0 Young & Co's Brew . . .1090.0 0.0 1124.0 978.0

SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . . .2878.0 Computacenter . . . . . .1166.0 FDM Group (Holdin . . .988.0 Fidessa Group . . . . . . .2515.0 Micro Focus Inter . . . . .2231.0 Playtech . . . . . . . . . . . . .811.6 Sage Group . . . . . . . . . .805.4 Softcat . . . . . . . . . . . . . .524.0 Sophos Group . . . . . . . .652.0

AIM 50 2890.0 1192.0 1031.0 2640.0 2871.6 1016.0 812.8 548.5 656.0

1863.0 715.0 582.0 2041.0 2145.0 768.0 599.0 295.5 260.9

SUPPORT SERVICES AA . . . . . . . . . . . . . . . . .166.2 3.1 Aggreko . . . . . . . . . . . . .827.2 0.4 Ashtead Group . . . . . .2135.0 27.0 Babcock Internati . . . . .749.6 1.6 BCA Marketplace . . . . .200.5 -1.0 Bunzl . . . . . . . . . . . . .2048.0 3.0 Capita . . . . . . . . . . . . . .395.0 -26.0 DCC . . . . . . . . . . . . . . .7690.0 10.0 Diploma . . . . . . . . . . . .1201.0 20.0 Electrocomponents . . . .621.2 0.4 Equiniti Group . . . . . . . .276.5 -4.5 Essentra . . . . . . . . . . . .522.5 -5.0 Experian . . . . . . . . . . .1664.5 2.0 Ferguson . . . . . . . . . . .5702.0 112.0 G4S . . . . . . . . . . . . . . . .289.0 -1.0 Grafton Group Uni . . . .800.0 -20.0 Hays . . . . . . . . . . . . . . . .201.2 1.4 Homeserve . . . . . . . . . .816.0 2.0 Howden Joinery Gr . . .456.8 3.2 Intertek Group . . . . . .5230.0 42.0 Mitie Group . . . . . . . . . .195.0 5.9 Pagegroup . . . . . . . . . .547.0 -2.5 Renewi . . . . . . . . . . . . .108.2 2.2 Rentokil Initial . . . . . . . .310.0 1.2 Serco Group . . . . . . . . .102.0 -3.4 SIG . . . . . . . . . . . . . . . . .168.9 1.9 Travis Perkins . . . . . . .1540.0 6.5

272.6 149.5 1064.0 758.0 2136.0 1542.0 969.5 654.5 227.0 176.0 2465.0 2005.0 705.5 389.0 7755.0 6045.0 1247.0 993.5 709.0 471.1 310.9 173.2 581.5 408.7 1705.0 1446.0 5722.0 4460.0 341.1 243.1 841.0 579.5 201.4 147.2 867.0 523.0 475.7 373.0 5425.0 3392.0 297.2 187.3 552.5 417.0 108.4 80.0 335.8 219.1 150.0 90.6 182.0 102.8 1696.0 1408.0

TOBACCO British American . . . .5033.0 18.0 5643.0 4565.0 Imperial Brands . . . . . .3133.5 -13.0 3933.5 3027.0

TRAVEL & LEISURE

REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .828.5 British Land Comp . . . .681.2 Derwent London . . . .2986.0 Great Portland Es . . . . .656.0

Price Hammerson . . . . . . . . .515.4 Hansteen Holdings . . . .143.5 Intu Properties . . . . . . .236.1 Land Securities G . . . . .996.7 LondonMetric Prop . . . .181.0 RDI Reit . . . . . . . . . . . . . .36.1 SEGRO . . . . . . . . . . . . . .576.6 Shaftesbury . . . . . . . . .1012.0 Tritax Big Box Re . . . . . .150.6 Unite Group . . . . . . . . .798.5 Workspace Group . . . .964.5

668.0 579.0 2451.0 587.5

888 Holdings . . . . . . . . .292.2 -3.0 Carnival . . . . . . . . . . .5000.0 -30.0 Cineworld Group . . . . .563.5 0.5 Compass Group . . . . . .1529.5 -2.0 Domino's Pizza Gr . . . .346.9 -5.2 easyJet . . . . . . . . . . . .1529.0 17.0 FirstGroup . . . . . . . . . . .112.4 0.4 Go-Ahead Group . . . . .1607.0 13.0 Greene King . . . . . . . . .530.8 -1.2 GVC Holdings . . . . . . . .935.5 6.0 InterContinental . . . .4845.0 58.0 International Con . . . . .658.6 4.2 Ladbrokes Coral G . . . . .183.5 2.4 Marston's . . . . . . . . . . . .116.4 -0.6 Merlin Entertainm . . . .365.9 2.4 Millennium & Copt . . . .569.0 4.0

EU SHARES Price

17

NASDAQ

Price Chg High Low Rotork . . . . . . . . . . . . . .304.2 1.2 306.8 223.5 Spirax-Sarco Engi . . . .5775.0 90.0 5920.0 4252.0 Weir Group . . . . . . . . .2205.0 25.0 2305.0 1727.0

BBA Aviation . . . . . . . .365.0 6.2 Clarkson . . . . . . . . . . . .3130.0 45.0 Fisher (James) & . . . .1594.0 -36.0 Royal Mail . . . . . . . . . . .464.8 8.7 Stobart Group Ltd . . . . .272.0 4.5

MARKETS

300.5 218.0 5380.0 4105.0 740.0 519.5 1760.2 1449.9 394.0 263.4 1538.5 914.5 153.0 101.0 2308.0 1485.0 766.0 508.5 982.0 594.0 4848.0 3668.0 670.0 472.6 188.0 111.3 146.1 101.4 537.0 349.0 625.5 410.2

http://corporate.webfg.com mailto: globaltechsales@webfg.com

US SHARES

Chg

High

Low

Price

Chg

High

Low

-0.52 -0.75 0.30 -0.03 -0.05 1.85 -0.06 0.04 -0.21 0.02 -0.00 2.85 -0.52 0.00 0.34 -0.42 -0.12 -0.02 0.11 0.12 0.07 0.18 -0.01 0.15 -0.08 0.13 -0.09 -0.09 0.01 0.14 -0.40 0.25 -0.10 0.02 0.13 0.25 0.74 0.01 0.20 0.91 0.22 0.90 -0.28 0.07 -0.44 1.80 0.07 2.96 -0.21 4.10

110.10 202.10 111.60 91.90 204.50 159.95 27.04 6.20 97.90 123.90 7.93 93.05 69.17 34.87 74.99 72.13 17.82 41.36 17.53 10.81 5.59 15.16 15.69 122.15 80.07 6.99 36.90 16.69 3.06 20.88 197.15 260.55 199.00 5.96 15.80 36.12 92.25 52.40 92.97 100.70 75.94 133.50 52.26 10.63 48.75 238.15 52.31 88.80 24.87 185.74

92.50 142.60 90.27 62.46 154.25 106.70 21.81 4.82 78.97 99.62 5.92 77.07 53.96 28.22 59.01 56.48 13.11 30.52 14.38 6.70 3.82 10.77 12.94 100.60 60.15 5.52 28.55 12.81 2.06 14.72 167.75 181.95 166.60 3.81 13.50 26.54 61.51 43.40 71.06 81.92 63.36 108.00 40.66 8.10 41.11 202.15 37.23 64.56 15.96 124.75

3M ..................................................................244.74 ABBVIE...........................................................102.49 ACCENTURE-A .................................................157.96 ALPHAB NON VTG RG-C..................................1121.76 ALPHABET RG-A............................................1130.70 ALTRIA GROUP.................................................68.92 AMAZON.COM ...............................................1304.86 AMERICAN EXPRESS.......................................100.34 AMGEN ...........................................................185.54 APPLE..............................................................176.19 AT&T.................................................................36.72 BANK OF AMERICA............................................31.24 BERKSHIRE HATH RG-B..................................210.29 BOEING CO ......................................................335.16 CATERPILLAR...................................................169.31 CHEVRON ........................................................132.01 CISCO SYSTEMS................................................40.54 CITIGROUP..........................................................77.11 COCA-COLA CO .................................................46.53 COMCAST-A.......................................................41.82 DOWDUPONT ...................................................74.95 EXXON MOBIL...................................................86.97 FACEBOOK-A...................................................178.39 GENERAL ELECTRIC............................................18.21 GOLDMAN SACHS GR .....................................258.46 HOME DEPOT...................................................196.31 HONEYWELL INTL............................................157.89 IBM .................................................................163.85 INTEL.................................................................43.14 JOHNSON & JOHNSO ......................................146.86 JPMORGAN CHASE...........................................112.27 MASTERCARD RG-A........................................162.29 MCDONALD'S ..................................................173.68 MERCK .............................................................62.07 MICROSOFT.......................................................88.35 NIKE -B-...........................................................63.42 NVIDIA.............................................................220.11 ORACLE............................................................49.59 PEPSICO ...........................................................118.61 PFIZER .............................................................36.60 PHILIP MRRS INT ............................................104.87 PROCTER&GAMBLE..........................................90.22 TRAVLR COMP .................................................135.52 TWITTER ..........................................................24.66 UNITEDHEALTH GRO.......................................232.90 UTD TECHNOLOGIES.........................................133.97 VERIZON COMM ................................................51.66 VISA RG-A......................................................120.39 WAL-MART STORES........................................100.69 WALT DISNEY RG-DIS......................................110.69 WELLS FARGO..................................................62.50

0.27 2.15 -2.15 -0.50 0.05 -0.69 -0.34 -0.63 0.50 -0.90 -0.18 0.05 0.13 -1.05 -0.99 -1.59 -0.33 0.27 0.38 -0.62 -0.46 -0.55 -0.98 -0.55 1.43 -0.11 -1.18 0.71 -0.10 1.10 -0.40 -0.04 0.11 3.41 -1.25 -1.25 -2.87 0.08 0.56 0.06 0.37 0.61 0.79 -0.75 4.26 -2.61 -0.20 0.30 -0.18 -1.78 -0.05

247.19 103.00 160.64 1139.91 1148.88 77.79 1339.94 102.39 191.10 179.39 42.70 31.79 214.03 347.73 173.24 133.88 41.16 78.44 47.48 42.71 0.00 87.99 188.90 31.45 262.14 199.42 159.85 182.79 47.64 148.06 113.43 163.94 175.78 66.80 90.79 65.36 227.51 53.14 119.74 37.35 123.55 94.67 137.95 25.85 235.00 137.73 53.69 121.94 102.35 116.10 63.67

173.55 59.27 112.31 790.52 812.05 60.01 803.00 75.39 150.38 118.22 32.55 22.01 158.61 156.75 90.34 102.55 29.84 55.23 40.22 34.78 0.00 76.05 126.78 17.25 209.62 134.60 116.98 139.13 33.23 110.76 81.64 104.01 119.82 53.63 62.03 50.35 95.17 38.89 101.06 30.90 90.15 83.88 113.76 14.12 156.09 106.85 42.80 80.76 65.28 96.20 49.27

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GET THE MORNING UPDATE, CITY A.M.’S DAILY EMAIL CITYAM.COM/NEWSLETTER COMMODITIES Gold ............................................................1333.85 Silver...............................................................17.09 Brent Crude ...................................................70.26 Krugerrand.................................................1364.25 Palladium...................................................1128.00 Platinum.....................................................995.00 Tin Cash Official.......................................19850.00 Lead Cash Official......................................2495.00 Zinc Cash Official.......................................3308.00

-5.40 -0.03 0.39 5.35 42.00 0.00 75.00 -16.00 20.00

CREDIT & RATES

Copper Cash Official...................................7156.50 Aluminium Cash Official............................2241.00 Nickel Cash Official ..................................12260.00 Aluminium Alloy Cash Official ...................1710.00 Cocoa Futures ............................................1932.00 Coffee 'C' Futures .........................................120.67 Feed Wheat Futures.....................................137.05 Soybeans Futures Continuation Contract...966.50

-59.50 -5.00 165.00 0.00 18.00 -1.58 -0.80 6.20

BoE IR Overnight.........................................0.500 BoE IR 7 days..............................................0.500 BoE IR 1 month...........................................0.500 BoE IR 3 months.........................................0.500 BoE IR 6 months........................................0.500 LIBOR Euro - overnight..............................-0.439 LIBOR Euro - 12 months .............................-0.252 LIBOR USD - overnight .................................1.438 LIBOR USD - 12 months ................................2.189 Halifax mortgage rate ................................3.990

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00

Euro Base Rate ...........................................0.000 Finance house base rate .............................1.000 US Fed funds...................................................1.41 US long bond yield........................................2.83 Euro Euribor...............................................-0.379 The vix index ................................................11.66 The baltic dry index.................................1264.00 Markit iBoxx EUR .......................................229.15 Markit iBoxx GBP........................................323.43 Markit iTraxx................................................69.48

0.00 0.00 0.00 -0.02 0.00 1.50 -15.00 0.39 0.51 -0.78

WORLD INDICES Price Chg %chg FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7755.93 -13.21 -0.17 FTSE 250. . . . . . . . . . . . . . . . . . . . 20877.30 44.53 0.21 FTSE All-Share. . . . . . . . . . . . . . . . 4260.08 -4.36 -0.10 FTSE AIM All-Share. . . . . . . . . . . . . 1063.23 -2.09 -0.20

Price Chg S&P 500 . . . . . . . . . . . . . . . . . . . . . 2776.42 -9.82 Dow Jones I.A.. . . . . . . . . . . . . . . 25792.86 -10.33 Nasdaq Composite . . . . . . . . . . . . 7223.69 -37.38 Xetra DAX . . . . . . . . . . . . . . . . . . . 13246.33 45.82

%chg -0.35 -0.04 -0.51 0.35

Price CAC 40. . . . . . . . . . . . . . . . . . . . . . . 5513.82 Swiss Market Index. . . . . . . . . . . . 9464.05 ISEQ Overall Index. . . . . . . . . . . . . 7066.95 FTSEurofirst 300 . . . . . . . . . . . . . . . 1565.83

Chg 4.13 -73.23 -25.72 -0.97

%chg 0.07 -0.77 -0.36 -0.06

Price Chg %chg Hang Seng . . . . . . . . . . . . . . . . . . 31904.75 565.88 1.81 Shanghai Composite. . . . . . . . . . . 3436.59 26.11 0.77 Straits Times. . . . . . . . . . . . . . . . . . 3550.21 13.80 0.39 ASX All Ordinaries . . . . . . . . . . . . . 6165.90 -10.90 -0.18


18

OPINION

WEDNESDAY 17 JANUARY 2018

CITYAM.COM

FORUM

EDITED BY ELLIOTT HAWORTH

Carillion’s death is testament to free market mechanisms

F

OR A short while, if some reports were to be believed, the government was considering some form of a bailout for stricken construction services company Carillion. Thankfully the government has done the sensible thing – nothing – and the company has gone into liquidation. Taxpayers can breathe a cautious sigh of relief: rightly, the company’s shareholders, along with its major creditors, will take the hit. Sure, retendering the contracts will impose an additional cost on taxpayers, but nothing like what a bailout or nationalisation would have cost. Yet, bizarrely, voices usually critical of what happened during the financial crisis are calling for exactly the same response in the case of Carillion, condemning the fiasco as yet another failure of “privatisation” and calling for the government to nationalise it, potentially pouring untold amounts to prop the company up. All while accepting – in an impressive form of doublethink – that the government should not have continued to contract with the company once its problems became clear. Which means Jeremy Corbyn is wrong – nationalisation is not the answer. If the company collapsed, it’s because it was not making enough profit. Margins at the top 10 contractors are around 0.8 per cent. If that’s true, how could it have been ripping off the state? The reality is that what happened to the ailing company has nothing to do with “privatisation” (was Carillion ever owned by the state?)

and everything to do with bad management – at Carillion, but also in Whitehall. Last year, the company issued three profit warnings in five months, wrote down more than £1bn from the value of its contracts, and suspended paying dividends. Hedge funds had been betting heavily against the company long before that. Yet the government, apparently oblivious to what was going on, continued to dish out contracts to Carillion, including some for High Speed 2. The government’s own procurement policies, designed to minimise taxpayers’ exposure to risk, were largely ignored. Under these rules, a company which has issued a profit warning ought to be classified as “high risk,” meaning that a decision to nevertheless engage it should be made only in extraordinary circumstances. In other words, the issue was not too much profit, it was too little. The company was providing the service for less than it costs to provide it – it wasn’t fleecing the taxpayer, it was, in fact, being fleeced. If the government was to bring those contracts in-house, the cost of providing the service would rise. It takes a truly enormous leap of faith to believe that the government, having demonstrated itself incapable of even keeping up with financial news, is best-placed to manage all these construction and facilities management projects. What evidence is there that the same mistakes will not be made? Why give more responsibility to people who are partly responsible

John O’Connell

The company was providing the service for less than it costs to provide it – it wasn’t fleecing the taxpayer, it was, in fact, being fleeced

for the fiasco? The answer apparently lies in eliminating the supposedly enormous profit margins and cutting out this “waste,” but as already mentioned, the fact that Carillion has entered liquidation suggests these margins were not as spectacular as many seem to believe. Still, things would probably have been worse under public ownership. So often the main criticisms of private management is that it is too

efficient. Consider the discontent with the huge efficiency gains made in privatised industries in the 1980s and 1990s, as new management, free from political meddling, stripped out unnecessary jobs which had built up under state ownership. And yet what is the ideal model according to the unions? According the GMB union there is “no place for private companies who answer to shareholders, not patients, parents and service users in our public services.” No computers from Microsoft, no drugs from Pfizer and no biros from Bic. So what should happen now? As many of those contracts were joint ventures with other companies, these will simply be taken over by Carillion’s venture partners. Others should be re-tendered, this time following the government’s own procurement policy. Firms such as Kier have already expressed an interest, which means they think they can learn from their predecessor’s mistakes. And this learning process, allowing the market to trial and error different solutions, is what a market in public sector contracting should be all about. The market’s brutal treatment of Carillion’s owners isn’t an indictment of the private sector. It’s a major reason why it is, on average, more efficient. If only the government could adopt a similar approach in the public sector, perhaps we’d enjoy the kind of public services we all want. £ John O'Connell is chief executive of the TaxPayers’ Alliance.

Act now, think later: Card surcharge ban is typical of myopic soundbite politics

C

OMPANIES and service providers are no longer allowed to charge customers for using a credit or debit card. The new law came into effect last Saturday. The economic secretary to the Treasury, Stephen Barclay, trumpeted: “rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end.” It all sounds good. But far from reflecting well on the government, it calls into question just how much a so-called Conservative administration understands the workings of market economies. One immediate effect of the new law is that it is no longer possible to pay your tax bill online direct to HMRC. The relevant part of their website proclaims “you won’t be able to pay with a personal credit card from 13 January 2018”. Exactly at the time when people are coughing up, a new regulation

designed to benefit the consumer has made it harder for them to pay. In economist-speak, this reduces consumer welfare. Many retailers, especially the large ones, will of course simply find other ways of passing the costs on. Just Eat, for example, has introduced a 50p service charge on all orders. Previously, the company added a 50p charge to card transactions. But now all customers will have to pay it. Other retailers will just add the odd bit here and there so that no-one will really notice. The fundamental point is that, ultimately, only individuals can pay taxes and charges. Even if a retailer chooses to absorb the fee and not pass it on, this leaves less money for its other commitments. Such as money for wages, dividends to shareholders, and payments to suppliers. Credit and debit charges seem to attract bad legislation. A change introduced in 2015 has probably

Paul Ormerod

made consumers worse off overall. In this case, the blame can safely be laid at the door of the EU. It was their regulatory requirement. The card schemes such as Visa and Mastercard charge card companies such as Barclaycard and Capital One a fee. This “interchange” fee is a sort of royalty. It is just a fee for being part of the big scheme, not for any sort of processing. There is a genuine market in operation here, because the card companies can switch schemes. There was a wide variety of fees, such as a fixed percentage of the transaction being financed, with and without a

maximum cap, and fixed amounts. But through competition, high value transactions such as car purchase or tax payments had tiny percentage fees. The EU in its wisdom capped the interchange fee at 0.2 per cent of the transaction value. But just as universities have all charged the maximum student fee set by the government, the interchange fee is now very frequently set at the maximum 0.2 per cent. So car buyers, for example, lost out by having a much bigger fee passed on to them. The urge to meddle unthinkingly in micro detail, without grasping that this will change behaviour, is a besetting sin of modern politicians. £ Paul Ormerod is an economist at Volterra Partners LLP, a Visiting Professor at the UCL Centre for Decision Making Uncertainty, and author of Positive Linking: How Networks Can Revolutionise the World

LETTERS TO THE EDITOR

Closed banking? [Re: Open Banking implementation, Saturday] That five of the nine banks won’t be fully ready for the initial compliance deadline is disappointing but not entirely surprising as the January 13 date was always viewed as a ‘rolling start’ to open banking. The 6 week testing phase will confirm that the open API implementations that are ready are indeed standard, and thus capable of delivering open banking as the regulator intended. For consumers, open banking appears to be nothing more than a change of Ts and Cs and a lot of scary looking legalese around the dangers of sharing data with third parties. The communication from the banks to consumers and SMEs has been poor to date, and must improve to genuinely help people understand the opportunities available as the open data future evolves, as well as how to stay safe. The open future starts here; consumers and small business can now start to benefit from a hyper-personalised environment, with predictive and preemptive services that dynamically flex and flow as financial needs change, and all based on the willingness to securely share the data they generate. That is vastly different from the financial services experience to date with monolithic banking products that are mass-marketed with no consideration to the individual. In a new world built around the smarter use of data, large holders of data such as energy and telco firms, fintechs and the tech titans could deliver financial services either individually or through collaboration. They could anticipate spending patterns and usage, comingle data from multiple sectors to surface and satisfy un-met or under-served needs. Amazon, Facebook and others have a distinct advantage as they are designed with data at their core, with a huge incumbent user base and an ability to be at the forefront of customer engagement while training us to adopt new services. Dr Louise Beaumont is a strategic advisor at Publicis.Sapient and co-chair of techUK’s Open Bank Working Group

BEST OF TWITTER No, Carillion is not being “bailed out”, taxpayers are not “picking up tab”. All shareholders & creditors will lose ££. Pension fund will go to industryfunded PPF, services will revert to gov & be re-tendered/contracts sold on. This is not a “bailout”. It’s called “going bust” @CitySamuel Momentum co-founder Christine Shawcroft - once kicked out of Labour for supporting former Tower Hamlets mayor Luthfur Rahman - elected chair of the NEC’s disputes committee. Funny old world. @PolhomeEditor Still can’t believe I live in a country where it’s illegal to advertise sweets to children. That’s who they’re for, ffs. @cjsnowden


WEDNESDAY 17 JANUARY 2018

CITYAM.COM

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Verdict by Twitter show trial is no alternative to due process

R

IGHT across the political spectrum, from left-wing feminist activists to the Conservative prime minister, the commentariat has come out firmly in support of Carrie Gracie, the BBC’s China Editor, who resigned over alleged systemic pay discrimination by her employer. The one-sidedness of this debate (with a few notable exceptions) has taken me by surprise. How can we, the public, possibly know whether Carrie Gracie’s allegations are correct. And by the same token, how can she? This is no slight on Gracie, widely acknowledged as a talented, experienced journalist, who is undoubtedly worth a lot to the BBC (or any other employer). She and the pundits may well be right about her remuneration. But without access to all the information about Gracie’s role compared to the BBC’s other international editors, it is simply impossible to make a fair judgement. Indeed, the widely-repeated claim that Gracie is being paid less for doing the same work, because she happens to be a woman, is founded on a number of misapprehensions. It assumes that all four of the BBC’s international editors do exactly the same job, and, therefore, are entitled to exactly the same pay. In practice, however, having similar, or even identical job titles, does not automatically mean that two jobs are the same. Just as regional managers at the same private sector firm, or editors in charge of different sections at a newspaper might hold the “same” position, there are a host of reasons why they might be earning wildly different amounts from one another.

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Madeline Grant

To take the most extreme example from Gracie’s cohort, it is not immediately clear that Jon Sopel’s role as North America editor is precisely the same as that of China editor. Beset with censorship and surveillance, China is clearly a challenging country to report from, and much has rightly been made of the value of Gracie’s fluent Mandarin to the BBC. Yet given the greater importance of US politics in the British news cycle – particularly during the 2016 presidential election – it is likely that Sopel receives more airtime, heads a larger bureau with more staff, and appears in more bulletins than Gracie. The argument that the BBC as an employer should be able to reward output as much as input, and to pay more for what is almost certainly a higher-profile role, has been largely absent from the debate so far. So too has the fact that media and showbiz employers habitually make subjective value judgements between different employees and their impact on ratings – particularly influential onscreen talent – and reward them

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OPINION

accordingly. Until the controversy arose over Gracie’s resignation, few viewers outside a small handful of news obsessives could have put a name to her face. It’s hardly surprising that many onlookers would view pay gaps at companies like the BBC’s as evidence of illegal discrimination. Already, we are seeing how easily statistics on gender pay can be manipulated, with potentially harmful consequences. The government’s recent pay gap reporting measures have added to an already confused picture by focusing on crude, company-wide pay differentials, rather than how most people would interpret the gender pay gap – namely, whether or not women are being paid less for doing the same work. Yet, the right to equal pay for equal work has been enshrined in UK law since 1970. If Carrie Gracie is indeed being underpaid illegally, then surely the proper and proportionate response would be to sue the BBC rather than resigning (and continuing to work for the employer she claims is discriminating against her)? One reason could be that the numerous imponderables governing her and her fellow editors’ remuneration; the secrecy surrounding pay negotiations and the difficulty in comparing likewith-like, would make any legal action tortuous and unpredictable. Yet the alternative to due process, the court of public opinion – justifying people’s salaries on hearsay and rumour – is a frightening thought indeed. We should tread carefully. £ Madeline Grant is digital officer at the Institue of Economic Affairs.

19

:@cityam

DEBATE Does the fall in the rate of inflation signify the start of a longer-term reduction? The fallen value of the pound following the Brexit vote has been the main driver behind rising prices. But the nature of currency-driven inflation is that it tends to be short-lived and self-correcting. Sterling has been steadily rising since the start of the year, passing $1.38 for the first time since Britain’s decision to leave the EU. Second, with our pay packets not rising as fast as prices, we’re feeling progressively poorer as each month rolls by and this inevitably means we’ll spend less. Less consumption, in time leads to weaker inflation. Then there are longer-term economic trends that cannot be ignored. An ageing population limits the size of the global workforce, which by corollary

While the impact of sterling’s devaluation is now reducing, there is probably still inflation in the supply chain which has yet to be passed through to final prices. Indeed the percentage of firms reported to be intending to raise prices has risen. And global inflationary pressures will continue, with the cost of a barrel of Brent crude climbing above $70 last week for the first time since 2014. Though strengthening against the dollar, the pound remains particularly weak against the euro. The small December inflation improvement owed a lot to possibly one-off downward contributions from airline fares, and a fall in prices of recreational goods such as toys and games – probably reflecting

Editorial Editor Christian May | Deputy Editor Julian Harris Digital Editor Emma Haslett | Comment & Features Editor Rachel Cunliffe Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres | Head of Politics and Investigations Catherine Neilan | Creative Director Billy Breton Commercial Sales Director Jeremy Slattery | Head of Distribution Gianni Cavalli

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YES MAIKE CURRIE

suppresses economic activity. Rising inequality and the growing cohort of self-employed people with limited earning power, means less money to spend. Again, that means less consumption and keeps a lid on inflation over the long term. There’s a very good chance that three per cent might be the peak for inflation. £ Maike Currie is an investment director at Fidelity International.

NO VICKY PRYCE

the discounting in the run up to Christmas. So while the three per cent inflation rate may be near its peak, the impact of the 3.4 per cent increase in rail fares, pressures from increased skills shortages, and higher oil prices as the global economy continues its recent strong expansion, will tend to limit how far inflation falls in the short-to-medium term. £ Vicky Pryce is on the board of CEBR.

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20

FEATURE

CITYAM.COM

WEDNESDAY 17 JANUARY 2018

LEAP 100 City A.M. has teamed up with Mishcon de Reya and other expert partners to identify 100 of the most exciting, fast-growing firms in the UK. They operate at a range of scales and across many sectors, but all are in the process of making the leap to the next level in terms of revenue. We will track the challenges and hopes of this brave and economically vital group, sharing the collective portrait that emerges on this monthly page and at cityam.com/leap-100

Chieu Cao wants to revolutionise workplaces, starting with his own Sophie Jarvis

What would would yyou ou lik overnment’s priority likee the g government’s tto o be in 2018?

40%

C

HIEU Cao, co-founder of Perkbox, is on a mission to transform the workplace. First stop? His own business. Perkbox is an employee benefits platform currently used by over 500,000 workers across the UK. Launched in 2014 by Chieu and Saurav Chopra, it is the fastest growing employee benefits platform. At a recent Leap 100 breakfast, Chieu set out how employee incentives are both his business model and his business strategy. Perks are a key component of Perkbox’s culture, but it’s not just about being nice. He believes they “give you a competitive advantage, by selling happiness in the workplace. If you want to be successful, you have to understand the drivers of productivity.” Chieu has observed how employees use their perks with co-workers, increasing social cohesion in the workplace: “we encourage teams to go for a coffee together and watch a movie as a team”. Chieu’s mission is to create a world where a better relationship between employees and employers is more commonplace. “It all boils down to culture, our mission is our North Star”. When it comes to hiring and firing, “the culture is more important than the individual”. He wants workplaces to be seen in a positive light, rather than a ball and chain pervading employees’ homelives. “If you get a discount, you can give it to your wife or husband. When you go out shopping, they may ask where it’s from, and a conversation

LEAPPOLLING

60%

Skills and training training International International trade trade

general, do you you think 20188 will be politic ally In general, politically positive or ne gative ffor or yyour our business positive negative business??

40%

60%

Positive Positive Don’t know know

TOPRESPONSES happens about how great your work is,” he explains. The majority of Perkbox’s employees are millennials. Chieu thinks culture and the learning process are more important for them. “Corporate values matter to them a lot more than previous generations. It’s really important. They want to know why we exist as a business.” As such, like many Leap 100 companies, Perkbox takes its stated mission and values very seriously. On giving equity to employees, Chieu found that “it can mean a lot to a lot of people, but it can also mean nothing to people who don’t know about that space, so you have to educate them on the long-term value of equity.” The next step for Chieu’s vision in improving the employee-employer

Perkbox takes its stated mission and values very seriously

relationship is to build a real-time survey app that allows employees to communicate how they feel about their job on a daily basis. Chieu wants to create more transparent offices and move away from the traditional surveys carried out by HR. He wants to “democratise communication” so that employees can voice their concerns, and their needs. It also means that managers are held accountable for whatever’s wrong. Chieu’s vision for Perkbox goes beyond perks. “We’re not just here to sell products, we’re here to improve your culture and how you operate with your employees.” He is a boss who practises what he preaches. £ Sophie Jarvis is research associate at The Entrepreneurs Network.

We need to continue to build a high-skilled economy where quality candidates exist for quality jobs. AVIN RABHERU FOUNDER AND CHIEF EXECUTIVE HOUSEKEEP

A boost in international trade is the best way to mitigate Brexit uncertainties and pave the way for a successful deal. DANNY LOPEZ CHIEF OPERATING OFFICER BLIPPAR

Equity-able treatment for a millennial workforce

T

HE MILLENNIAL workforce gets a bad rap. But while millennials may have different expectations to previous generations, their ambitions can be harnessed so that both employers and employees benefit. The normal scenario – where you work your way up the career ladder by ticking certain boxes – is being overturned. Management is increasingly expected to be flatter, and employees want to be treated as equals with more influence over the business. There are many ways founders can meet new employee demands for more respect and inclusiveness, but one of the most effective is offering equity. After all, it doesn’t get more respectful and inclusive than giving away a little of your company.

MISHCON COMMENT Stephen Diosi

For millennials to be inspired by equity, it’s essential that its value is communicated properly. Equity can’t act as an incentive unless employees understand how the value can be realised. Over the past few years, expectations have risen for benefits of this nature, particularly when the entrepreneur of a growing business is bringing in someone senior from a listed

company. This has percolated down to questions about incentives for all staff. Equity can act as the cement for businesses looking to build an ownership culture. Enterprise Management Incentives (EMI) Options are popular, but the moment for Employee Ownership Trusts (EOT) – exemplified by John Lewis – has arrived. There are significant tax benefits with EOTs. A founder can sell their shares tax free into the trust, and employees can be paid tax-free bonuses of up to £3,600 per year. A lack of external financing may have held back this structure since its introduction in 2014, but over the past year we have started to see this change. The support for EOTs is strong. While not right for every firm, it really puts ownership into employees’ hands.

Motivating employees of different seniority requires different approaches. The senior leadership team are often best motivated by the bottom line, but further down the company, incentives could be more effectively linked to sales targets. Bonuses aren’t necessarily considered to be the effective motivator of performance that they once were. Employees come to expect them, and anything less than what is believed to be deserved is demotivating. Some businesses are going as far as scrapping staff bonuses and instead adjusting salaries. Another area ripe for change is the gig economy. The government has done a lot to help traditional firms incentivise employee ownership, but there is a disconnect for workers in

the gig economy and the need for incentives, including tax breaks. EMI, for example, can only be given to employees. There’s a strong case that this, together with other tax efficient incentives, should be extended to the gig economy to reflect a newer, more modern way of working. This also ensures that the UK retains the best talent, whichever workforce model they are part of. Millennials want a stake in their future. If business owners want to attract and retain the best and brightest to ensure their company has a bright future, they may need to give away a little of their stake in the present. £ Stephen Diosi is a partner in the employment department at Mishcon de Reya.


CITYAM.COM

IN PARTNERSHIP WITH

WEDNESDAY 17 JANUARY 2018

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FEATURE

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THE ENTREPRENEURS NETWORK

LEAP COMPANY SPOTLIGHT

NOTONTHEHIGHSTREET Notonthehighstreet was founded in 2006 by Holly Tucker and Sophie Cornish around a kitchen table in South West London. In the early days, the company worked in partnership with 99 local businesses. But after 12 years of exceptional growth, the company now connects 3m customers to more than 5,500 creative small businesses from across the country, all of which sell through the online marketplace. Over the years, the brand has gained the trust and loyalty of its customers through offering an alternative to the high street: a curated product selection with unique designs, high-quality craftsmanship, and inspiring stories about the people who make these bespoke products. Having a partnership with these small companies is at the heart of Notonthehighstreet, and its 200-strong team aims to connect creative businesses to the world. Plans for 2018 include focusing on the technology behind the platform to ensure that Notonthehighstreet is the go-to destination for customers to find gifts for any occasion. From personalised prints to jewellery, each product has a personal touch, which is made possible by the creativity of these British businesses.

Let’s make the most of British talent

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RITAIN’S got talent. This country’s success is built upon a mix of unconventional innovators, plucky entrepreneurs and hardworking employees. But to make the most of this wealth of natural resources, we must ensure that our country has the skills to thrive. The government already does a lot. Innovate UK, via The Enterprise Europe Network, offers free training workshops for innovative entrepreneurs in small and medium sized businesses. These workshops have been developed for firms that have won awards in Innovate UK funding competitions, but there are a limited number of places open to similarly technology-led, high growth potential SMEs. For startups, the first port of call should be their Local Enterprise Partnership or Growth Hub, and founders may want to draw on the lessons of their peers for best practice – something that the Leap 100 breakfasts aim to facilitate. When it comes to talent and skills, we cannot rest on our laurels. According to the latest ScaleUp Institute Report, scaleups cite access

Gillian Keegan

to talent as the number one factor that will allow them to continue to grow, with 90 per cent saying that, without it, scaling will be harder. And it’s not all about coding. When scaleup firms were asked to force rank skills for school leavers and graduates, social skills topped business, management, tech, and finance skills. I started working life at 16 on an apprenticeship scheme with Delco Electronics, a subsidiary of General Motors Group, in Kirby near Liverpool, moving around the company while studying for a Business Studies degree at Liverpool John Moores University. This comprehensive and wideranging apprenticeship provided me with a foundation of skills and knowledge for my 27 year business career before entering parliament.

The ScaleUp Institute Report finds that eight out of 10 scaleups which offer apprenticeships said that they brought benefits to the firm, with those that didn’t citing a lack of ability to find suitable candidates. I have also invested in a venture capital fund focused on early-stage tech companies, so I know that finding the right talent to grow a startup business is mission critical. This is why the All-Party Parliamentary Group on Apprenticeships, of which I am vicechair, called last year for schools and colleges to provide better information as part of a reformed careers advice service that proactively encourages young people to take up an apprenticeship. I’m also an officer of the All-Party Parliamentary Group for Entrepreneurship, which is currently seeking responses on how to improve enterprise education at universities. A lot of great work is being done in higher education across the country, but we aim to ensure that best practice is better disseminated across all universities and colleges, so more students have the skills and

mindset necessary to be adaptable for the modern world of work – whether as an employee or starting their own business. Teaching skills for a more enterprising workforce cannot wait until higher or further education, though. These should be imbued throughout every stage of education. The Entrepreneurs Network, in its report A Boost For British Businesses, suggests moving forward with Lord Young’s proposal to introduce an Enterprise Passport. The Passport would accompany an individual throughout their education, encouraging pupils to engage in extracurricular activities, and acting as another way for UCAS and employers to assess candidates. The Leap 100 is a remarkable group of high-growth companies. Their success is proof that Britain is doing something right – but as the demands of high-growth companies for talent and skills shows, more can be done. Our country’s future success demands it. £ Gillian Keegan is MP for Chichester and vice-chair of the All-Party Parliamentary Group on Apprenticeships.

Entrepreneurs ignore the status quo, challenge the rules and change the game. We should know. Entrepreneurs: we understand what drives them and have tools to accelerate their plans. To know more, go to theleap.mishcon.com Business | Dispute Resolution | Real Estate | Mishcon Private

It’s business. But it’s personal.


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FEATURE

CITYAM.COM

WEDNESDAY 17 JANUARY 2018

PERSONAL FINANCE

HOUSING YOUR MONEY Buy-to-let landlords should look beyond the obvious for opportunities, says John Goodall

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ANDLORDS were hit by changes left, right, and centre in 2017, with new legislation affecting almost every corner of the market. Some of the changes introduced in the past couple of years include a reduction in the amount of tax relief landlords can claim on mortgage interest costs, the scrapping of the socalled “wear and tear allowance”, and the hike in stamp duty tax. And yet, despite the barrage of blows, buy-to-let continued to deliver competitive returns. So what does 2018 have in store?

landlords should instead use variations in rental growth and yields over the past year to pick out some of the most promising regions for buyto-let.

STURDY FOUNDATIONS

Many young professionals are moving further afield to reduce their rent burden, possibly while they save for a house of their own

From an investment point of view, the property market remains an exciting proposition built on the strong foundations of an exciting and robust asset class. The UK may have seen its fair share of political upheaval over the past year, but none of that has changed the fact that Britain will always need homes. In fact, the growing cohort of people who can’t buy, or don’t want to, will more than ever rely on the rental sector to house them. In the absence of a crystal ball,

CAPITAL PROBLEMS

London has experienced falling rents for over a year now, with prime locations seeing the greatest decline and rents, shrinking in 26 of the 33 London boroughs in 2017. Rents in London fell by 0.83 per cent last year, compared to growth of 1.27 per cent elsewhere in the UK.

However, despite the closing gap, London rents remain, on average, 2.5 times greater than those across the rest of the UK. There remains good opportunities for a range of property sizes in London. As house prices become increasingly out of reach for aspiring homeowners, Generation Rent is growing both in volume and household size, with people more likely to be in rental accommodation as they begin and grow their families. As a result, three-bed properties saw the greatest rental growth across UK in 2017. For landlords, it’s clear that there’s a lot to be gained by offering a three-bed property in a London market that is crowded with smaller properties. For example, average rents for three-bed properties in London are 39 per cent higher than rents for two bedroom properties. This is a 39 per cent uplift in rent you can receive for a house that is likely to have no more than 30 per cent extra living space.

CROSS COUNTRY

But this slowdown in rental

growth has not been consistent across the country. The East Midlands saw 2.1 per cent growth in 2017, while the South West and East England both saw growth around the 1.6 per cent mark. This is in stark contrast to the UK average of just 0.53 per cent. These figures would suggest that many young professionals are moving further afield to reduce their rent burden, possibly while they save for a house of their own. The strong demand for low-rent accommodation by long-distance commuters is thought to be pushing up rents in East England more specifically. And in turn, this shows signs of increased yields for buy-tolet property. For example, Peterborough and Thurrock are among the greatest risers, with growth sitting at around two per cent.

UNIVERSITY CHALLENGE

It may not be a market for everyone, but those looking for better yields may even want to consider looking further afield to university cities. Although the costs of maintaining houses in multiple occupation (HMOs) are typically higher than

maintaining those housing a single family, the number of homes lived in wholly by students continues to soar, and the presence of a top university nearby is one way of ensuring a consistent stream of income. Leading university towns include Manchester, Bristol, Birmingham, Leeds, and Nottingham, which all saw rents increase more than four times the amount of the UK average in 2017. There are some great investment opportunities out there for people prepared to target the student market.

THE WAITING GAME

On one level, 2018 is going to be a year of waiting and watching, as the impact of new regulation and tax reforms come to bear on the market. Landlords may look back at 2017 as the year that things got tough, but in the UK’s property microcosm, there are always new locations and new opportunities. This is the year for buy-to-let investors to branch out beyond the obvious. £ John Goodall is chief executive of buyto-let specialist lender Landbay.


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LIFE&STYLE

WEDNESDAY 17 JANUARY 2018

CITYAM.COM

FOOD&DRINK CUT-OUT-AND-KEEP BURNS DAY KIT – JUST ADD WHISKY

JOSE PIZZARO Broadgate Circle Tel: 07973 638610

Fair fa' your honest, sonsie face, Great chieftain o the puddin'-race! Aboon them a' ye tak your place, Painch, tripe, or thairm: Weel are ye worthy o' a grace As lang's my arm.

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The groaning trencher there ye fill, Your hurdies like a distant hill, Your pin wad help to mend a mill In time o need, While thro your pores the dews distil Like amber bead. His knife see rustic Labour dight, An cut you up wi ready slight, Trenching your gushing entrails bright, Like onie ditch; And then, O what a glorious sight, Warm-reekin, rich!

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Then, horn for horn, they stretch an strive: Deil tak the hindmost, on they drive, Till a' their weel-swall'd kytes belyve Are bent like drums; The auld Guidman, maist like to rive, 'Bethankit' hums. Is there that owre his French ragout, Or olio that wad staw a sow, Or fricassee wad mak her spew Wi perfect scunner, Looks down wi sneering, scornfu view On sic a dinner?

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EIGHT OF THE BEST Burns Night suppers: 25 January is the most Scottish night of the year, with haggis and whisky aplenty at these top restaurants

2. DEVONSHIRE CLUB 5 Devonshire Square, The City; devonshireclub.com This City-based private members club and hotel is hosting a traditional Scottish supper – with the option to swap haggis for Arbroath fish pie – followed by cranachan and a deep fried Mars Bar. Matthew Supranowicz, 2015 world champion, will be piping. £28 for two courses, £35 for three 3. TIENDA ROOSTERIA The Curtain, Shoreditch; thecurtain.com The taqueria at new hipster haunt The Curtain will be spicing things up this

Burns Night with haggis and neep tacos (including a vegan version) and Scottish Pina Colada slushies made with Dewar’s scotch. Tacos £4, slushies £6 each

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4. PLUM & SPILT MILK Great Northern Hotel, King’s Cross; plumandspiltmilk.com In honour of its name – which refers to the dining livery of the Flying Scotsman – a four course menu is on offer. Expect leek and whisky soup, haggis, Highland beef and cranachan, with Dalmore drams. £70 per person with drinks 5. POLLEN STREET SOCIAL 8-10 Pollen Street, Mayfair; pollenstreetsocial.com Jason Atherton’s flagship Michelinstarred restaurant is hosting a blowout nine course menu in its private dining room. In typically experimental fashion, it will include a cock-a-leekie bun, haggis with a twist on neeps and tatties, and Fearn Abbey cheese ice cream, paired with Bruichladdich whiskies. £135 with paired drinks 6. THE JUGGED HARE 49 Chiswell Street, Barbican; thejuggedhare.com This City gastropub is throwing its

Burns Night shindig on 23 January. There will be five courses with wines to match. It will also be attempting the fabled deep fried Mars Bar with Glenfiddich ice cream. Other inventions include haggis croquettes with HP sauce and a ‘haggis bomb’. £75 per person

Poor devil! see him owre his trash, As feckless as a wither'd rash, His spindle shank a guid whip-lash, His nieve a nit; Thro bloody flood or field to dash, O how unfit!

7. CRAFT LONDON Peninsula Square, North Greenwich; craft-london.co.uk A four course menu awaits diners with paired drams from boutique scotch brand Compass Box. Expect poetry readings and haggis odes. £48 per person 8. HIX RESTAURANTS Various; hixrestaurants.co.uk Hix Soho and Hix Oyster & Chop House have a special menu on offer in honour of Rabbie Burns. Haggis will of course appear – with neeps and tatties and as a croquette – and there’s also a whisky cocktail called Brose, which includes cider and oatmeal for you to try. Dishes from £6

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1. BOISDALE Canary Wharf, Bishopsgate, Belgravia, Mayfair; boisdale.co.uk The place to go for top-notch Scottish food, Boisdale is a sure-thing this Burns night. The Orkney salmon, Scottish red deer, Aberdeenshire dryaged beef fillet, and roast haggis will, of course, be accompanied by live pipers. From £35 per person

But mark the Rustic, haggis-fed, The trembling earth resounds his tread, Clap in his walie nieve a blade, He'll make it whissle; An legs an arms, an heads will sned, Like taps o thrissle. Ye Pow'rs, wha mak mankind your care, And dish them out their bill o fare, Auld Scotland wants nae skinking ware That jaups in luggies: But, if ye wish her gratefu prayer, Gie her a Haggis

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Address to a Haggis


WEDNESDAY 17 JANUARY 2018

CITYAM.COM

How to be the perfect host with the perfect toast Top tips from an old hand at hosting this yearly Scottish celebration HOW FORMAL SHOULD IT BE?

MY FOOD DIARY

This is one of those nights where people should really be going all-out. At very least I’d want to see some tweeds, but any Scots on your invite list should be dusting off the family tartan. Anyone rocking up in jeans should be gifted a single glass of whiskey and kicked back out into the cold.

Mark Hix

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y native Dorset may be at the opposite end of this island to Scotland, but I’ve hosted so many Burns Suppers at the restaurants over the years that I feel like something of an authority. Obviously you should just book into one of my places on the 25th and have a guaranteed fab time, but if you’re determined to host your own evening of Scottish revelry, here are some tips.

WILL SUPERMARKET-BOUGHT HAGGIS SUFFICE? Most people make do with MacSweens, which is fine, but as you can imagine, anything churned out in vast numbers and left to sit on a supermarket shelf is going to be a compromise. Your local butcher should be your first port of call. I use Blackface haggis made in Dumfriesshire, which doesn’t taste of sawdust like many of the commercial ones. Think

of it like the difference between a top notch black pudding and a budget one.

WHAT SHOULD YOU SERVE TO DRINK? If you just stick bottles of whisky on the table, you’re going to have a riot on your hands come midnight. I often knock up some whisky cocktails; a great one is Monkey Shoulder whisky and Temperley’s ice cider with oatmeal brose, cream and heather honey water, topped with cinnamon. Then I’d pour glasses of a nice whisky to toast the haggis itself.

WHEN SHOULD YOU ADDRESS THE HAGGIS? The haggis should be addressed as it’s being brought into the room. Ideally this should be accompanied by a live piper, although admittedly this might not go down particularly well with your neighbours. If you stick on some pipe music from Spotify nobody will complain. The host should really be the one to read the Address to a Haggis, although be warned, if you weren’t brought up reading Burns in school like most Scots were,

LIFE&STYLE

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you’re probably best passing it over to someone born north of the border, because it’s a difficult one to get your tongue around.

AND AFTER ALL THIS WE’RE EXPECTED TO GO TO WORK THE NEXT DAY? Absolutely. Save a bit of the haggis and fry it up in a pan with an egg and whack a load of HP sauce on top. That’ll sort you right out. And if that doesn’t work, there’s always a hair of the dog...

WHAT STARTERS AND DESSERTS WILL COMPLIMENT THE HAGGIS? This is a night steeped in tradition, so I’d always go for something like a classic Cullen Skink (a smoked haddock soup) or Scotch broth. Or you could go the game route and serve a red deer chop with haggis dumplings. For dessert, you can’t go wrong with cranachan (whipped cream, whisky, honey, raspberries and whisky-soaked oatmeal) and rhubarb.

WHAT EXACTLY ARE “NEEPS AND TATTIES”? Well, this is a point of some contention. The word “neeps” obviously suggests turnips, but the Scottish often call swedes turnips. Nobody seems entirely sure, so just go with your preference. I reckon swedes both look and taste better, so I use a few of those, roughly mashed.

WHISKY BUSINESS What to serve alongside the haggis to get the party started on the 25th

Copper Dog This blended malt is fruity with a hint of spice, great alone and in cocktails. £24, waitrosecellar.com

Glen Marnoch Aldi’s fine own-label whisky is another win for the discounter. £17.49, aldi.com

Highland Black A taste of things to come from a new Hebridean distillery. £54.95, masterofmalt.com

Bowmore 15 Years Old Fruity, peaty and with strong sherry flavours, this is a great dram. £49.95, thewhiskyexchange.com

The Naked Grouse Rich aromas of black cherry and cacao abound in this great bottle. £24.95, 31dover.com

Lagavulin Peaty and smokey as all hell, this is just about as good as it gets. £49, tesco.com


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FEATURE

WEDNESDAY 17 JANUARY 2018

CITYAM.COM

OFFICE POLITICS

Give your firm a personality test to find and nurture talent

TAKE IT PERSONALLY Good&Co Free

In the era of authenticity, encouraging individuality in the workplace pays dividends Pip Hulbert

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HE BUSINESS world has spent a lot of time agonising over diversity and equality, but it’s missing out on a fundamental truth. Metrics on gender, ethnicity, or sexuality are helpful, but everyone should feel comfortable being themselves in the workplace. After all, we spend a significant portion of our time at work and having to

hide behind a corporate mask is fundamentally stressful. It goes without saying then, that if a business wants to engender loyalty in its employees, it needs to embrace the individual. That means giving people permission to be who they are. Many companies – particularly within the media sector – are trying to appear less corporate. However, what’s really key is to look deeper, and to create safe emotional environments where people can feel confident enough to be themselves. This isn’t about being touchy-feely for the sake of it. In fact, encouraging individuality within a work culture can offer concrete benefits. We are finding that it makes good business sense to better connect with

We should aspire to attract, not only the most talented people, but also the most memorable personalities in the room

staff, to understand their aspirations, accept their vulnerabilities, and celebrate their side-hustle talents. As such, workplaces must embrace people’s weaknesses as well as their strengths. This may sound obvious but we still hear about businesses shunning individuals for having particular concerns and issues (mental illness being one of them). The outcome of accepting difference is reduced churn. If you keep quality people for longer, then you’ll save on recruitment fees and allow teams to develop together. Every happy employee is a brand ambassador, right? Which is why you should want to create more of them. More and more, we’re seeing clients ask suppliers like us how we create a

Do you despise your job? Are you worried that you’re not well-matched to this line of work? Well consider the stress over, because here’s an app that can help you find a company and a career that fits your personality. Just take the test, and Good&Co will look at your skills and strengths to find a business that will suit you better than your current one. What have you got to lose? Only a job you hate.

positive culture for the agency teams that they work with. This makes perfect sense, because it pays to be associated with businesses that have positive word-of-mouth, and therefore generate good publicity. Your staff are the most important assets to your business. And your customers are all too aware of that. Your clients want to work with happy, clever, and interesting people. This is why we should aspire to attract, not only the most talented people, but also the most memorable personalities in the room. These are the people that others want to work with, because they’re truly authentic in character. The authenticity-centric approach to running a business is also a generational thing, with younger people looking for different stimuli in the workplace. They want to be learning every day. This doesn’t mean that they aren’t focused on their jobs – quite the opposite. And it leads to a more vibrant culture for everyone. While it’s clear why businesses traditionally seek people who “live to work”, it’s the individuals with a more balanced approach to work that we want to speak to. They bring the most to the table in terms of skills, interests, and talents that are well nurtured. As such, you should look for staff who are multi-dimensional. Their extra-curricular activities show clients that your team is interesting, has transferable skills, and lots of enthusiasm. These personality traits can easily be redirected into the business. £ Pip Hulbert is chief executive of Wunderman UK.


CITYAM.COM INTERVIEW

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HATEVER topic is discussed with Maro Itoje, his hunger to improve is overwhelmingly evident. It is so pronounced that the England and Saracens forward’s underlying message, to borrow from the Bachman-Turner Overdrive song, seems to be: “You ain’t seen nothing yet”. That is a scary prospect considering the 23-year-old is already a two-time Six Nations, European Champions Cup and Premiership winner, not to mention a fully-fledged British and Irish Lion. But it would certainly tally given that, in many people’s eyes, Itoje is destined to be England captain. As topics are deliberated high in the gods at Allianz Park, the desire for personal and professional development influences the vast majority, if not all, of Itoje’s carefully considered answers and is a common theme of the conversation. He depicts his recent month-long absence due to a fractured jaw as empowering, despite a wariness of straying into oxymoronic territory, given that it provided the opportunity for introspection and mental stimulation away from the game. Even his wish-list for 2018 is shaped more than anything else by an appetite for individual betterment and an ardent wish to ensure his output remains on a relentlessly upward curve. “Ultimately it is about getting better. I’m still quite young and I feel as if I still have a lot of growth left in me,” Itoje tells City A.M. “My goal is to go to training every day with the mentality of getting better, improve my understanding of the game, improve my physical attributes and my skill set. “If I do that then hopefully I will keep improving and keep pushing and putting my hand up for selection.” Putting a hand up for selection is surely the bare minimum a pivotal weapon in the Saracens armoury and mainstay of the England set-up will attain, although perhaps such distaste for assumption is heightened by international boss Eddie Jones. “He keeps us on our toes, he’s a great man-manager of play-

WEDNESDAY 17 JANUARY 2018

THE HUNGER GAME England captaincy can wait – I just want to get better, Maro Itoje tells Ross McLean

ers,” said Itoje. “He is very clear, there is no ambiguity as to his message or in what he is trying to get across. “He is obviously a very intelligent coach and no matter what you have done or what you have achieved, he pushes you to get better. “You can always be better. It doesn’t matter if you are 23 or 33 you can always be better and he sets that agenda.”

Intelligent, erudite and always striving for more – that sounds like Itoje, while viewers of the DVD British and Irish Lions: Uncovered will also have witnessed the 6ft 5in lock being more than capable of articulating a point of view.

MANTRA

Itoje’s leadership is being nurtured. Jones has entrusted him to direct operations at England’s lineout – the latest rung, it is widely assumed, on the ladder towards one day leading his country. For now, though, he is observing and absorbing. Itoje’s capacity for learning and expression, exemplified by his study of politics at the School of Oriental and African Studies and penchant for writing poetry, is a well-worn tale. As is his discussion on leadership

with individuals from outside the confines of the rugby bubble, but theory is no match for on-the-job training. Take Itoje’s Lions experience in New Zealand during the summer, where his name was bellowed by supporters to the tune of The White Stripes anthem Seven Nation Army. It proved to be another bout of personal advancement. “For me, it was definitely an eyeopener,” added Itoje. “I got to see how different world-class players operate, how different players tick, how different coaches think. “I got to see how those coaches operate in a different environment and certain things they like to do and certain things they don’t. “Warren Gatland is a top coach and it was the first time I have worked with Graham Rowntree in a bit of de-

tail, Rob Howley and Neil Jenkins, and it was good to pick their brains. “I think every experience, good or bad, makes you more rounded. This one definitely made me more rounded and more educated in terms of how different things are done.” One man who failed to make that tour was oft-criticised Northampton hooker Dylan Hartley, who Jones recently felt the need to publicly back as England skipper for the Six Nations. Itoje is set to knuckle down with Hartley during the championship, and continue perhaps to take traits from the leaders in his midst as he looks to mould his own views on effective command. “He’s a very good captain, is Dylan. He sets the agenda well for the team and he’s clear and vocal,” said Itoje. “I have been very impressed by him since I got into the England environment. He is very clear and a good speaker with the boys.

“He is a good communicator between the coaches and the players and he looks after the players’ best interests. Dylan’s a top guy.” But whatever predictions are made about the former Harrow School pupil’s future, the modern-day Itoje was sorely missed by Saracens during their seven-match losing streak in a bleak mid-winter. The versatile forward was absent for all but one of those defeats – he fractured his jaw in two places in the only game he played – but he is now firmly back in the fold as Sarries have gone some way to arresting their slump. “It was a tough period for the club but I think it will put us in good stead for the rest of the season,” added Itoje. “For a long time we have won games relatively easily and sometimes you can take that for granted. “The club going through that patch of being a little bit unsuccessful has sharpened the desires of people in the squad a bit more. “Hopefully the plan for the long run is to draw from that and when we get into similar positions on the field then we can learn from it.” Learning, desire and an aversion to complacency – the Itoje mantra. Maro Itoje was speaking on behalf of Ricoh. Go to www.rugby.ricoh.co.uk to find out more about The Business of Rugby.

IN BRIEF

FOOTBALL

Liverpool have shown how to beat Man City

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I’m still quite young and I feel as if I have a lot of growth left in me

Itoje is aiming for a third Six Nations title with England

IVERPOOL’S thrilling win over Manchester City on Sunday was more than just a mighty performance. In becoming the first team to beat the leaders in the Premier League this season they also established a blueprint for how to set up against Pep Guardiola’s team that I expect other managers to follow. The formula was simple: a high press with tons of energy. They worked hard, starting at the front with the pace of Roberto Firmino, Mohamed Salah and Sadio Mane, and backed up by the midfield. Their finishing was clinical and when they smelled blood they went for the jugular, scoring three goals in nine second-half minutes. They pressed right up to the 18yard box, meaning that City either had to play long balls out from the

SPORT

FOOTBALL COMMENT Trevor Steven

back or take risks in possession that they didn’t want to take. It was vital that Liverpool’s press was a team effort, because if you leave gaps or sit back then City have the quality and patience to punish you. It’s the first time that we have seen Guardiola’s side subjected to such intense pressing this season and it rattled them like nothing else. Any team can try that, but you do need the quality in attack to take advantage when you win the ball in

the final third. Pressing itself doesn’t take talent; it’s effort combined with organisation. Bristol City had a good go at it against City in the Carabao Cup semi-finals last week. Championship teams don’t have the forward talent that the likes of Liverpool do, but I’d be surprised if any team that faces them from now on – especially their rivals in the top six – didn’t adopt the same approach.

PUMPED

Despite selling Philippe Coutinho this month, Liverpool seem to be in a great place. Manager Jurgen Klopp looks pumped and back to his best, and his team’s current form is second only to City’s; they have more momentum than Manchester

United, Chelsea and Tottenham. I still think they need a new goalkeeper, but a shaky defence has been improved by two full-backs – Joe Gomez and Andrew Robertson – playing really well and the signing of Virgil Van Dijk. Guardiola won’t be happy to have lost, but with all the talk about going the season unbeaten this may even be a relief of sorts. He always emphasises going game-by-game and City will be focusing on responding with a win against Newcastle on Saturday. Defeat was a blow but they are too good and too united behind Guardiola’s methodology for this to sink the City ship. Trevor Steven is a former England footballer who has played at two World Cups and two European Championships. @TrevorSteven63

SEROTKIN GETS WILLIAMS DRIVE AHEAD OF KUBICA

£ FORMULA ONE: Williams have named Sergey Serotkin as second driver after picking the Russian to partner Lance Stroll ahead of former F1 racer Robert Kubica. Kubica, who suffered career-threatening injuries in 2011, will be reserve driver.

LAIDLAW RETURNS TO SCOTLAND SQUAD

£ RUGBY UNION: Scrum-half and former captain Greig Laidlaw has been recalled to Scotland’s squad for the Six Nations after recovering from a broken fibula. Josh Strauss, Matt Scott and Tim Visser are not among the 40-man party.

WALES HAND UNCAPPED DUO SIX NATIONS CHANCE

£ RUGBY UNION: Wales have named two uncapped players – Scarlets flanker James Davies and Worcester wing Josh Adams, the Premiership’s top scorer – in their squad for the Six Nations.


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CITYAM.COM

WEDNESDAY 17 JANUARY 2018

THE HUNGER GAME Exclusive interview with Maro Itoje PAGE 27

SPORT RUGBY UNION

TENNIS

Haskell holds onto England recall dream

Haskell was not selected for England’s autumn fixtures

FRANK DALLERES @frankdalleres BRITISH No1 Johanna Konta insists soaring temperatures at the Australian Open hold no fear for her after she cruised into the second round in Melbourne yesterday. The grand slam, which was forced to overhaul its extreme heat policy after several players fell ill during the 2014 tournament, is expected to see the mercury nudge 37C on Thursday and Friday. Ninth seed Konta is set to play again tomorrow when she faces world No123 Bernarda Pera, having seen off another American, Madison Brengle, 6-3, 6-1. “I’ll love it,” said Konta, who was born in Sydney. “I’m really looking forward to that. I love the Australian heat.” Fellow Briton Heather Watson failed to join Konta in progressing after she lost 7-5, 7-6 (8-6) to Kazakhstan’s Yulia Putintseva in more than two hours. Watson battled back after losing the first set to lead 4-1 in the second but failed to convert a set point and lost to world No54 Putintseva in a tie-break. Former world No1 Novak Djokovic, meanwhile, has played down suggestions that he is leading a push for male tennis players to form a union and demand greater prize money. After a straight-sets win over American Donald Young in the opening round — his first match since Wimbledon — Djokovic said claims that he had floated the idea of boycotting next year’s Australian Open if the men’s tour did not adjust their revenue distribution model had been “a little bit exaggerated”. “There were no decisions being made. There were no talks about a boycott or anything like that,” he said. “We just wanted to have us players talk about certain topics. I don't think there is anything unhealthy about that.” Defending champion Roger Federer also advanced with a straight-sets win over Aljaz Bedene.

EXCLUSIVE: Flanker opens up ahead of key disciplinary hearing tonight ROSS MCLEAN @rossmcleanRMAC ENGLAND flanker James Haskell desperately hopes his red card in Wasps’s European Champions Cup defeat to Harlequins on Saturday does not wreck his dream of earning an international recall. Haskell will appear before a disciplinary hearing this evening after being sent off for a dangerous tackle on Wales centre Jamie Roberts in the 76th minute of a clash which Quins won 33-28. The errant tackle and subsequent hearing could not have come at a worse time for the 32-year-old given head coach Eddie Jones is set to name his squad for England’s Six Nations title defence tomorrow. If found guilty of a strike to the head, Haskell – in contention for a recall after being omitted from England’s autumn fixtures – could face a six-week ban, which would rule him out of the start of the championship at least. England begin their campaign against Italy on 4 February. “I would love to play for England at next year’s World Cup but I would just love to have the opportunity to play for my country again, full stop. I would just take one more cap, if I could get it,” Haskell told City A.M. “It was very satisfying to have got back in the training squad [January’s two-day camp in Brighton] when I didn’t think I was ever going to be involved with England again. “My form has transformed since the start of the season. There is a lot more work to

37C forecast no sweat for Konta at Aussie Open

be done but whatever happens on Wednesday will dictate the future. “It’s all up in the air. But you can drive yourself mad thinking about it or you just wake up and do the best you can do.” Wasps director of rugby Dai Young has spoken of Haskell’s relatively unblemished disciplinary record working in his favour; the back-rower has served a total of five weeks in bans during his 16-year career. The former Stade Francais forward – who is due to visit the Square Mile for a book signing session tomorrow evening – also issued an apology to Roberts on social media on Saturday, hours after the incident which left the 31-year-old undergoing head injury assessment protocols. “You would hope that a good record is going to help you but you just don’t know,” added Haskell, who has won 75 England caps. “In any of these situations you just cannot comment on what their interpretation is. “You’ve just got to go in there, put your hand up and be very honest and that is what I’m going to be. You have got to respect the laws and put your hand up when you’ve made a mistake. I made a mistake. “I can’t go back in time so I’ll have to deal with it and I will just keep fighting on every front to be the best rugby player I can. We’ll see what happens.” £ James Haskell will be signing copies of his new book, Perfect Fit: The Winning Formula, at Waterstones in Leadenhall Market at 5.30pm tomorrow.

FOOTBALL

FOOTBALL

Allardyce’s Everton close to finalising Burke strikes in extra-time £20m deal for Arsenal winger Walcott as West Ham see off Shrews

ROSS MCLEAN

@rossmcleanRMAC ARSENAL misfit Theo Walcott is expected to complete a £20m move to Everton this week after undergoing a medical at the Merseyside club’s Finch Farm training base yesterday. Walcott’s 12-year stay at the Gunners appears to be at an end, while Everton look to have beaten off competition from the 28year-old’s former club Southampton for his signature. During his time at Emirates Stadium, Walcott has scored 108 goals in 397 appearances but he

is yet to start a Premier League match this season after falling down the Arsenal pecking order. Walcott is believed to be enthused by former England manager Sam Allardyce’s plan for Everton and his role in the side as he looks to make a late dash into Gareth Southgate’s World Cup plans. Another player close to leaving Theo Walcott has spent 12 years at Arsenal

Arsenal is Alexis Sanchez, although his protracted transfer away from north London is being held up by the failure of the Gunners to reach an agreement with Manchester United over playmaker Henrikh Mkhitaryan. It is thought that any deal for Sanchez to join United hinges on Mkhitaryan, who the Old Trafford club pipped Arsenal to the signing of in 2016, moving in the opposite direction, but as yet there is a stalemate. Arsenal, meanwhile, look to be closing in on a deal for Sanchez’s replacement and are believed to have agreed personal terms with Borussia Dortmund striker Pierre-Emerick Aubameyang.

ROSS MCLEAN

@rossmcleanRMAC ACADEMY graduate Reece Burke scored West Ham’s winner as the Hammers required extra-time to see off plucky League One highflyers Shrewsbury and book their place in the FA Cup fourth round. The 21-year-old defender crashed home an effort off the underside of the crossbar in the 112th minute of last night’s replay as the east Londoners set up a clash with the winners of the Bournemouth versus Wigan tie, which will be resolved tonight. It was Burke’s first senior goal for West Ham, who were pushed all

the way by the Shrews. Leicester, meanwhile, also avoided a giant-killing against League One opposition although the Foxes ensured their safe passage to round four, where they will travel to Peterborough, in rather more routine fashion. Former Manchester City striker Kelechi Iheanacho netted twice in a 2-0 win, although his second goal was notable for being the first in English football to be awarded by a video assistant referee. Iheanacho’s strike was initially ruled out for offside before referee Jonathan Moss liaised with video official Mike Jones and the goal was subsequently awarded.

City A.M. (2018.01.17)  

City A.M. (2018.01.17)

City A.M. (2018.01.17)  

City A.M. (2018.01.17)

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