BUSINESS WITH PERSONALITY
IT’S A MARATHON NOT A SPRINT THE BEST TECH TO PUT YOU ON THE ROAD TO VICTORY P20
GO HANG THURSDAY 18 JANUARY 2018
BIT BY BIT
COULD BITCOIN BE ON THE WAY DOWN? P3 & P17
DIVINE LIGHT Festival brightens dark winter nights across London
RBS MANAGER TOLD STAFF TO LET SMALL BUSINESSES ‘HANG THEMSELVES’ AS BANK PROFITED FROM STRUGGLING CUSTOMERS
CATHERINE NEILAN @CatNeilan RBS STAFF were advised by a colleague to “let [small business] customers hang themselves” in the wake of the financial crisis, an internal memo revealed yesterday. Employees at the bank’s now defunct restructuring unit GRG were encouraged to raise fees to a level that clients “normally cannot afford”, in order to “leaverage [sic] an upside”. The bank is accused of profiting from the collapse of small business clients, as companies suffered the effects of a severe economic downturn. The document, entitled Just Hit Budget! and written in 2009, was published at the request of Treasury Select Committee (TSC) chair Nicky Morgan. It reveals how staff were given eight tips including: “Rope: Sometimes you need to let customers hang themselves” and “missed opportunities will mean missed bonuses”. “The RBS memo makes shocking reading,” said Treasury Select Committee member Stewart Hosie.
“It was a step by step guide to fleece RBS customers.” It also refers to some clients as “basket cases: time consuming but remunerative” and suggests that if a certain senior RBS manager – whose name has been redacted – and the client are both unhappy “you probably have the balance right”. The papers include a 16-page guide called “ways to generate income”. Top of the list is the suggestion that clients, SMEs who had been put into the GRG because of financial troubles, be CEO Ross McEwan said the manager is no longer working at RBS charged around 10 per cent of the debt owed in the full knowledge they could not usually pay. It also includes a guide on exit fees – “Consider ratcheting. Useful for property developments” – and margin enhancement – “as per bank matrix unless/until you agree an upside. Claim the margin until all limits formalised”. In a letter to Morgan published when he released the memo, RBS chief executive Ross McEwan distanced the firm as a whole from
the document, saying “it was written in 2009 by a junior manager who is no longer employed by the bank. “At no point did it form part of GRG or RBS policy. In addition, the document was not widely distributed.” McEwan said the document had been “identified by the bank and brought to the attention of the FCA and the skilled person during the review”. The watchdog’s report into the GRG case is known as the skilled persons’ report. “For the avoidance of doubt, the language used in the document was completely unacceptable, and the bank does not condone it.” Morgan told City A.M. last night: “The material published today underscores the long-held concerns of the Treasury committee about the treatment of SMEs referred to GRG. We will ask [the skilled person] and RBS about this in more detail when they appear before the committee on 30 January.” RBS-GRG will be the subject of a parliamentary debate today, requested last year by Labour MP Clive Lewis to highlight the treatment of small firms that were placed into GRG. In October, FCA boss Andrew Bailey published a summary of the longwithheld skilled persons’ report and confirmed another “more focused” investigation had begun.
HELEN CAHILL @HelCahill A FESTIVAL of light has returned to night-time London, bringing a new perspective to famous landmarks across the capital. Lumiere London 2018 officially starts today, with over 50 installations including a mix of neon lights, sculptures and light projections. Light shows will run between
5:30pm and 10:30pm. Light shows will be spread across Leicester Square, Oxford Circus, Piccadilly Circus, Regent Street, St James’s and Carnaby Street, as well as King’s Cross, Fitzrovia, Mayfair, the South Bank, and Westminster. Last night the Light of the Spirit by Patrice Warrener was projected on to Westminster Abbey (pictured). The festival is produced by art production company and registered charity Artichoke.
Former PA charged with stealing $1.2m of Goldman Sachs exec’s wine JASPER JOLLY @jjpjolly WHILE Goldman Sachs yesterday announced its latest financial results, one of the US investment bank giant’s top bankers may have had other things on his mind as his former personal assistant was charged with stealing from his rare wine collection.
Nicholas De-Meyer was named in an indictment unsealed in a Manhattan court, according to Bloomberg. He was accused of stealing wine worth $1.2m (£870,000) while working as a personal assistant to a wine collector. Although he was not named in the indictment, Goldman confirmed the wine’s owner was its
president and co-chief operating officer David Solomon. Solomon, a renowned oenophile, has storage for as many as 1,000 wine bottles in his New York apartment, according to a local property website. He is “one of the more knowledgeable and adventurous wine people out there”, according to a separate Bloomberg interview with a local
sommelier last year. In a statement, Goldman Sachs said: “The theft was discovered in the fall of 2016 and reported to law enforcement at that time. They have been pursuing the matter and are better positioned to answer questions.” The alleged theft included seven bottles from the Domaine de la Romanee-Conti vineyard (DRC)
described by wine merchants Justerini and Brooks as “one of the great Burgundian Domaines”. The seven bottles were previously bought for more than $130,000, an average per bottle of almost £14,000. Last year six bottles of 1996 DRC sold for $134,750 at Sotheby’s in New York. £ GOLDMAN IN THE RED: P6
FTSE 100▼ 7,725.43 -30.50 FTSE 250▼ 20,769.36 -107.94 DOW▲ 26,115.65 +322.79 NASDAQ▲ 7,298.28 +74.59 £/$▲ 1.382 +0.003 £/€▲ 1.134 +0.010 €/$▼ 1.218 -0.008
THURSDAY 18 JANUARY 2018
KEEP CALM AND CARRY ON World Economic Forum boffins warn of a terrifying series of threats to the world in 2018
THE CITY VIEW
Why Burberry needs to take a brand check
HE VERY first thing Marco Gobbetti did to put his stamp on Burberry as its new chief exec was ratcheting up prices in November to put the already upmarket retailer “firmly in luxury”. Result? Investors were spooked with shares crashing nearly 10 per cent on the day in Burberry’s biggest fall for five years. In similar fashion, the British brand’s shares dropped more than nine per cent yesterday after it revealed UK sales dropped in the final three months of last year. While Burberry blamed the unfashionable sales on tourists buying fewer luxury goods, analysts warned Gobbetti’s vision – to go beyond the £1,400 trench coat and focus on making expensive leather goods including handbags – could prove to be an expensive mistake. Indeed, Mulberry tried the same strategy in 2014 when it whacked up prices to become a “global luxury house”. However, it was forced to revert to more affordable luxury goods in 2016 after it failed to bag sales. One premium brand that has perhaps learnt from Mulberry’s mistakes is Hugo Boss. Earlier this week, the fashion stalwart reported that currency-adjusted group sales grew five per cent in the fourth quarter to €735m (£650m), representing something of a bounceback from a string of profit warnings and falling revenues in its core markets. Slashing prices, closing lossmaking stores and appealing to a younger customer base did the trick for the German brand. A key takeaway from Mulberry’s missteps and Hugo Boss’ bullish performance for Burberry is that premiumisation does not necessarily mean profit – you can’t build your brand equity via higher price tags that puts off many customers. With Gobbetti, Burberry should be in capable hands. After all, the man who replaced Christopher Bailey in July last year has spent more than two decades in various senior roles at fashion brands like Bottega Veneta, Givenchy and Celine. The retail veteran needs to emulate former boss Angela Ahrendts who channelled Bailey’s creative talents and took Burberry from a label that had become associated with baseball caps worn in nightclubs to one of Britain’s most iconic brands. That said, Gobbetti does not have the luxury to fall out of fashion with investors in his quest for making Burberry a superluxe brand.
Follow us on Twitter @cityam FINANCIAL TIMES
VERIZON SEES BOOST TO QUARTERLY EARNINGS
US telecoms group Verizon yesterday said the biggest American tax overhaul in decades will drive a one-time reduction in net deferred income tax liabilities of about $16.8bn (£12bn) and boost its fourth quarter earnings. The New York-based company said in a filing that the reduction as result of the Tax Cuts and Jobs Act will increase earnings for the fourth quarter and the fiscal year but not have an impact on the company’s cash flows.
BHP CONSIDERING OPTIONS FOR US SHALE OIL UNIT
BHP, the world’s biggest mining company, is considering a range of
WHAT THE OTHER PAPERS SAY THIS MORNING
DAVOS might conjure up images of skiing and champagne but experts at the World Economic Forum have offered a decidedly gloomy start to the impending bash with their assessment of the worst case scenarios for the global economy, ranging from the collapse of democracy to the crumbling of the food supply chain. Natural disasters and terrorist attacks also made the top 10.
Beancounters to top City pay rises JASPER JOLLY
@jjpjolly JUNIOR accountants will take home the biggest pay increases of any City roles during 2018, according to analysis of the top 10 jobs for pay rises to be published today – even beating finance directors and their more senior colleagues. Beancounters with less than three years’ experience will enjoy a 4.2 per cent salary rise this year, according to City recruitment firm Robert Half. The forecasts, based on interviews with senior financial services executives, show average salaries for accountants rising by more than £10,000 to hit £65,750, the biggest rise in a list dominated by finance roles as firms struggle to find talent. Chief financial officers will receive pay rises of four per cent along with senior financial controllers, the
MACRON WANTS BRITISH CASH FOR CALAIS
President Macron will demand cash today to boost the Calais economy as he arrives for a meeting with Theresa May. The Prime Minister will announce an extra £44.5m to improver border security.
BILLIONS LOST ON WASTEFUL PFI PROJECTS
options for its US shale oil unit including a trade sale, demerger and stock market flotation. It also reported production numbers that were broadly in line with market expectations.
Taxpayers are spending billions of pounds extra on hospitals and schools funded by private finance deals with little evidence of any benefit, the government’s spending watchdog has said. In a report today, the National Audit Office disputes Treasury claims that the scheme has advantages.
survey found, as tough competition for highly trained roles is exacerbated by an already-tight labour market. Separate recruiter surveys by the Recruitment and Employment Confederation show that starting salaries for skilled City roles are rising sharply, although that has not yet translated into pay growth for most employees. Matt Weston, a director at Robert Half UK, said: “In a bid to attract highly skilled professionals, many financial services firms plan to prioritise salary increases and bonus payments tied to performance over standard benefits this year.” Risk associates will receive 3.3 per cent pay rises and operations managers 2.9 per cent, the forecasts show. Meanwhile, accountants looking to move on to the next stage of their careers, with four to seven years of experience, will see a 3.1 per cent salary bump, Robert Half found.
THE DAILY TELEGRAPH
ARCADIA IMPOSES DISCOUNT ON SUPPLIERS
Topshop owner Arcadia has told suppliers it is imposing a two per cent discount on future orders and orders it has already placed, blaming the changing retail environment. Arcadia's CEO Ian Grabiner said, in a letter to suppliers, that the group had “absorbed significant costs in technology, distribution and people”.
MCKENNA MOST SENIOR WOMAN IN UK FOOD RETAIL
Walmart has promoted British retail veteran Judith McKenna to become chief executive of its international division, making her the most senior women in UK food retail.
Saunders says jobless rate to hit new lows LUCY WHITE @LucyGJWhite MICHAEL Saunders, a member of the Bank of England’s monetary policy committee, has insisted that UK pay growth will accelerate this year as the labour market tightens. Though subdued, he predicted the rise in the size of UK paypackets would also be likely to overshoot consensus estimates to rise to three per cent year-on-year. Added to that, despite bodies such as HM Treasury, Consensus Economics and the International Monetary Fund predicting that the decline in unemployment is now probably over, he said he had a “hunch” that the jobless rate would drop to four per cent this year – and possibly lower. “Wider labour market trends do not look weak in my view,” Saunders said at an event in London yesterday.
THE WALL STREET JOURNAL
APPLE PLANS TO PAY $38BN IN REPATRIATION TAXES
Apple said it would make a one-time tax payment of $38bn (£28bn) on profits accumulated overseas and ramp up its spending in the US, as it seeks to emphasise its contributions to the American economy after years of taking criticism for outsourcing manufacturing to China.
STEVE BANNON WILL ‘TELL ALL TO MUELLER’
Federal agents have issued a subpoena to former presidential adviser Steve Bannon, who plans to fully cooperate with special counsel Robert Mueller’s investigation into Russian meddling in the 2016 election, a source said.
THURSDAY 18 JANUARY 2018
GKN rejects firm £7.4bn hostile Melrose offer
COURTNEY GOLDSMITH AND LUCY WHITE
@courtneynoelg @LucyGJWhite GKN HAS rejected an increased £7.4bn offer from industrial turnaround specialist Melrose after the firm ramped up its hostile bid for the engineer. Melrose yesterday made a firm offer of 430.1p per share following a meeting with the company’s shareholders this week. The offer, increased from that it proposed last week, is based on a rise in Melrose’s own share price, which closed at 235p yesterday. GKN said the bid was “effectively unchanged” from Melrose’s unsolicited £7bn offer on Friday, which “fundamentally undervalued” the company. US buyout giant Carlyle is still understood to be mulling an offer, but has not yet engaged advisers. Following the rejection of Melrose’s initial bid on Friday, GKN said it would split its aerospace and automotive businesses to create value.
The engineer’s chief executive Anne Stevens and finance director Jos Sclater met yesterday with shareholders to fight their side. “We believe GKN’s current owners should retain all the benefits of the clear upside potential in GKN, rather than handing almost half of this upside to Melrose,” Stevens said. GKN also came under pressure this week from US activist hedge fund Elliott, which has urged the company to talk with Melrose. Elliott owns a 1.7 per cent stake in the engineering giant, which manufactures parts for Boeing and Volkswagen. Melrose wants to “re-energise and repurpose” GKN’s operations to improve the company’s trading margin. It says the deal would deliver “significantly greater benefits to the shareholders of GKN than GKN could otherwise achieve on its own”. It believes the “real value uplift” will come from merging GKN with its existing operations.
DOWNWARD SPIRAL Volatile crypto bitcoin dropped below $10,000 yesterday BITCOIN fell below $10,000 yesterday having halved from its peak of nearly $20,000 as fears of a regulatory clampdown persisted. The cryptocurrency dropped to as low as $9,801, its lowest point since before December, according to Coindesk’s aggregate price index. Late last night it was trading around the $10,800 mark.
@jjpjolly BARCLAYS will this week cut up to 100 jobs from its investment bank as it pursues chief executive Jes Staley’s plan to revamp its operations. Most of the redundancies will be concentrated at the managing director and director levels,
Banks leap to the support of Carillion firms OLIVER GILL
Barclays to cut up to 100 jobs in investment bank at senior levels JASPER JOLLY
although some more junior bankers will also lose their jobs. Job losses will be fairly evenly split between the US and Europe, with consultations with affected workers in Britain starting this week. The cuts are part of a regular performance review and Barclays will continue to make selective hires this year, City A.M. understands.
@ojngill BANKS and businesses yesterday rallied around Carillion’s beleaguered suppliers as the government switched off its funding. Lenders put a range of emergency measures in place after suppliers’ crippling debts threatened to cause havoc further down the supply chain. Overdraft extensions, payment holidays and fee waivers were being offered, UK Finance said. Meanwhile, the government’s Insolvency Service said 90 per cent of Carillion’s private sector customers want operations to continue. Work was being paused while decisions on the future of projects was being made, however. As the scrutiny of remuneration payments made to Carillion’s execs ramped up, the Insolvency Service confirmed severance payouts would not be paid. Shortly after Carillion crashed into liquidation on Monday ministers committed to pay for Carillion’s public sector projects. Private sector initiatives would only be funded until yesterday.
The new T-Roc. BORN CONFIDENT.
The compact SUV. Official fuel consumption figures for the T-Roc in mpg (litres/100km): urban 33.2 (8.5) – 46.3 (6.1); extra urban 48.7 (5.8) – 62.8 (4.5); combined 41.5 (6.8) – 55.4 (5.1). Combined CO2 emissions 117–155g/km. Information correct at time of print. Standard EU Test figures for comparative purposes and may not reflect real driving results.
THURSDAY 18 JANUARY 2018
Government’s Brexit lawyers ‘out of depth’ EXCLUSIVE CATHERINE NEILAN
@CatNeilan THE GOVERNMENT’S lawyers advising on Brexit are “out of their depth” and must be bolstered with external specialists as a matter of urgency, the chair of the influential Justice Select Committee has said. Conservative MP Bob Neill, who also sits on the All-Party Parliamentary Group for Wholesale Financial Markets and Services, said while ministers “have the will to get a settlement” he feared that a satisfactory deal for the City could not be agreed in time, based on the current legal resources. “The issues around the legal aspects of financial services regulation are so technical, I think frankly government lawyers are out of their depth,” he told City A.M. “The engagement with people at ministerial level, particularly people like [solicitor general] Robert Buckland, has been very positive. But the approach is still not joined up enough
– is it being led by the Ministry of Justice, the Law Officer, DexEU or Treasury? “When you get down to the official level, I don’t think in-house lawyers have expertise or experience, or frankly the capacity in terms of numbers to give me confidence that they will be able to get a real grip on the technicalities of this.” Neill’s comments come amid a growing debate around the extent of the government’s reliance on external companies. “It is patently untrue to claim government lawyers lack the required expertise to deliver Brexit. Across Whitehall, the government is able to draw on a substantial legal network with a deep and unrivalled expertise spanning EU law, international and constitutional law and legislation,” said a Department for Exiting the European Union (DexEU) spokesperson. “In addition and where necessary the government supplements its own expertise with the use of private sector solicitors and barristers.”
EU Withdrawal Bill passes MPs to face Lords JASPER JOLLY
European Central Bank president Mario Draghi will not attend future G30 meetings
Mario Draghi told to quit banker discussion group by EU official JASPER JOLLY @jjpjolly MARIO Draghi has been censured for his membership of the elite banker Group of 30 (G30), with the EU’s complaints boss recommending the European Central Bank president cease being part of group. The EU ombudsman, Emily O’Reilly, said Draghi should leave the group of bank bosses and central bankers because of the damage it
could do to public trust in the powerful body if meeting summaries were not shared. The G30 includes Bank of England governor Mark Carney, and bosses from the Federal Reserve, JP Morgan Chase, Barclays, and BlackRock. Draghi has not attended one of the G30 meetings since 2015, and does not plan to attend in the future, City A.M. understands. The Bank of England declined to comment on Carney’s attendance.
@jjpjolly THE GOVERNMENT breathed a sigh of relief last night as MPs approved its EU Withdrawal Bill, setting the scene for a showdown over the flagship Brexit legislation in the House of Lords. The vote passed by 324 votes to 295, a majority of 29, after the Labour opposition opposed the bill’s third reading. The bill, known officially as the European Union (Withdrawal) Bill 2017-19, will repeal the European Communities Act from 1972 and copy over the massive existing body of EU law into the UK so that it will still apply after Brexit in 2019. However, the government received ominous signs from its own party as Justine Greening said MPs had a duty to make sure Brexit is “sustainable” and works for young people, a majority of whom voted against leaving the EU. Greening left the Cabinet last week as she refused a demotion from Prime Minister Theresa May. Meanwhile, Facebook last night told MPs it will expand an investigation into whether Russians tried to influence the Brexit vote. The social media giant will look for evidence of tampering beyond its original, limited search.
THURSDAY 18 JANUARY 2018
Goldman swings to loss after hit from tax reform CAITLÍN MORRISON
@citycait GOLDMAN Sachs reported a loss of $2.1bn (£1.5bn) in the fourth quarter of 2017, blaming a tax charge as a result of reforms brought in by US President Donald Trump. The bank posted net revenues of $7.8bn, down four per cent from the $8.2bn recorded in the final three months of 2016. Pre-tax earnings were $3.1bn, down nine per cent from $3.4bn in the same period of the previous year. The lender recorded a loss of $5.51 per share, compared with earnings per share of $5.17 in the last quarter of 2016. The firm said it booked a one-off income tax charge of $4.4bn, which it said was linked to tax legislation enacted by the US President in late 2017, confirming estimates the group published last month. Specifically, Goldman Sachs said the
total charge was made up of $3.32bn due to the repatriation tax and $1.08bn “due to the effects of the implementation of the territorial tax system and the remeasurement of US deferred tax assets at lower enacted corporate tax rates”. Therefore, the bank said, while it reported a loss of $2.1bn for the final quarter of last year, if the new tax legislation was excluded, earnings would have come in at $2.3bn. “Last year, we delivered higher revenue and stronger pre-tax margins despite a challenging environment for our market-making businesses,” said Lloyd Blankfein, chairman and chief executive of GS. “With the global economy poised to accelerate, new US tax legislation providing tailwinds and a leading franchise across our businesses, we are well positioned to serve our clients and make significant progress on the growth plan we outlined in September.”
Stanchart starts fintech venture investment unit LYNSEY BARBER
The company said the shake-up would reduce costs and improve performance
Rolls-Royce mulls the sale of its commercial marine business COURTNEY GOLDSMITH @courtneynoelg SHARES in Rolls-Royce closed up more than five per cent yesterday after the engineering giant said it was considering selling its commercial marine business as part of a wider restructuring. Rolls-Royce said it would “evaluate options” for its commercial marine
unit, which has taken a beating from offshore oil and gas markets. It also plans to consolidate its naval marine and nuclear submarines units within its defence business and to pack civil nuclear operations into power systems, resulting in three core businesses: civil aerospace, defence and power systems. Further details will be set out with the company’s 2017 results on 7 March.
@lynseybarber STANDARD Chartered is the latest bank to double down on fintech, setting up a dedicated unit for putting cash into innovation. SC Ventures will focus on startup investments and hot-house development of technology for the bank through an innovation lab. “As new technology continues to play an ever more important role in banking, there is a huge opportunity for us to promote more innovation, and at the same time develop and deliver digital solutions that work for our clients and for us," said group chief information officer Michael Gorriz. Exiting investments will be moved into the venture arm. That includes blockchain startup Ripple, the associated cryptocurrency which has rocketed in 2018. The bank’s global head of transaction banking Alex Manson will head up SC Ventures. Other banks have already jumped on the fintech trend via separate corporate venture arms. Santander Innoventures has been the most active over the last five years, according to CB Insights.
Activist investor Sachem Head pushes Bank of America stays in Whitbread to consider breaking up profit despite $2.9bn dent BEN MARTIN ACTIVIST investor Sachem Head has asked Whitbread to consider a break up of its Costa Coffee chain from its hotels and restaurant businesses, two people familiar with the matter told Reuters. The US hedge fund disclosed a 3.4 per cent stake in FTSE 100-listed Whitbread last month, sending the Premier Inn-owner’s shares up more than seven per cent on the day amid
speculation the activist would push to split up the company. Sachem Head wants Whitbread’s management team, led by chief executive Alison Brittain, to examine a break-up as a way to boost the value of its individual businesses, the people said. The company’s current market capitalisation is about £7.2bn. Spokesmen for Whitbread and Sachem Head declined to comment. The hedge fund is reviving an idea long mooted by investors and
analysts that Whitbread should spin off its popular Costa chain. Founded 276 years ago as a brewery by Samuel Whitbread and Godfrey and Thomas Shewell, Whitbread is one of Britain’s oldest companies. It has become more streamlined in the past few years, selling off its brewing business and some pubs to focus mainly on Premier Inn, Costa, the Beefeater restaurant brand and the Brewers Fayre pub restaurant Reuters chain.
JASPER JOLLY @jjpjolly BANK of America yesterday followed other major US banks in revealing a big $2.9bn (£2.1bn) tax hit after Donald Trump’s changes, although earnings still managed to reach the top end of expectations. Earnings per share came in at $0.47 excluding the tax charge, or $5.3bn in total for the quarter. Pretax earnings rose by 17 per cent.
Higher interest rates from the Federal Reserve helped to boost net interest income at the second biggest US bank by assets by 11 per cent in the quarter, although trading revenues fell by 13 per cent. The bank’s tax charge paled in comparison to the $22bn hit taken this week by rival Citi, and it expects to profit in the long run. In December it announced a $1,000 bonus for 145,000 employees after the tax bill was signed.
THURSDAY 18 JANUARY 2018
TWO FOR THE PRICE OF 1.8 EDF Energy boss pledges cost savings at second plant
@LucyGJWhite THE BIG fish of the asset management world are continuing to hunt down their smaller rivals, as Franklin Templeton Investments announced yesterday it would buy Edinburgh Partners. The Scottish asset manager, which currently manages around $10bn (£7.2bn), was sold for a value in the
Interserve flash crash headed off by ministers
COURTNEY GOLDSMITH AND OLIVER GILL
@courtneynoelg @ojngill MINISTERS have insisted support services firm Interserve is not facing a catastrophic Carillion-style financial meltdown. Shares nose-dived 14 per cent as markets opened yesterday morning amid reports MPs have been monitoring the firm since a September profit warning wiped 50 per cent off the company’s market capitalisation. However, investors were quickly reassured by a Cabinet Office statement dispelling comparisons with Interserve’s bust rival. “We monitor the financial health of all of our strategic suppliers, including Interserve. We are in regular discussions with all these companies regarding their financial position. We do not believe that any of our strategic suppliers are in a comparable position to Carillion,” it said. Investors were shaken after the Financial Times reported ministers were “very worried” about the financial position of Interserve. The Reading-based firm is currently in negotiations with lenders after last
year saying it would breach banking covenants. Interserve issued two profit warnings last year, the first just days after new boss Debbie White started. Of particular concern was poor trading in the summer months and spiralling costs to exit a misadventure in the waste sector. Interserve said lender discussions remain constructive and that it is keeping the Cabinet Office closely informed of its progress. “We believe Interserve is very different from Carillion,” said Liberum analyst Joe Brent. Interserve’s shares closed down 0.41 per cent at 120.5p.
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11 Jan 12 Jan 15 Jan 16Jan 17 Jan
City piles on pressure as Provi plunges for second day running OLIVER GILL @ojngill PROVIDENT Financial investors were hit for the second day running yesterday after a leading analyst slashed the doorstep lender’s profit expectations by almost a fifth. Shares fell by over 13 per cent, meaning a quarter of Provident’s market capitalisation has been wiped away in 48 hours. Peel Hunt analysts said Provident’s balance sheet was at risk from potential regulatory fines.
Annual profit forecasts were revised down by 16 per cent. “With little clarity about the eventual resolution with the regulators, we remain of the view that the shares will remain volatile,” said Peel Hunt analyst Stuart Duncan. Shore Capital said on Tuesday a rights issue is “increasingly likely”. City A.M. understands star fund manager Woodford, which owns 22 per cent of Provident, is remaining in close contact with the Bradfordbased lender and has re-affirmed its backing to the firm.
Franklin Templeton swallows up Edinburgh Partners in £200m deal LUCY WHITE
A SECOND nuclear power plant could be 20 per cent cheaper than Hinkley Point according to EDF’s chief executive Simone Rossi. He said that Hinkley was “going well” but that a proposed project at Sizewell in Suffolk could save money.
region of £200m, City A.M. understands. New York-listed Franklin Templeton, which in turn had $753bn under management as of December, will welcome Edinburgh’s chief executive and co-founder Sandy Nairn back into its fold – Nairn was employed by the firm for more than a decade, and worked alongside the legendary investor Sir John Templeton.
The deal between Franklin Templeton and Edinburgh Partners comes at a time when asset managers are coming under increasing pressure. Regulatory pushes towards greater transparency have put firms on the back foot, while technological developments and the rise of passively managed “tracker” funds are forcing managers to lower their fees to stay competitive.
THURSDAY 18 JANUARY 2018
McKinsey, SAP and KPMG accused of criminal conduct in South Africa LUCY WHITE @LucyGJWhite CONSULTANTS McKinsey, software group SAP and accountants KPMG stand accused of criminal conduct by South Africa’s Companies and Intellectual Property Commission. The move comes as the South African authorities crack down on businesses with ties to the controversial Gupta family. Links to
the Guptas, friends of the president Jacob Zuma, brought down PR firm Bell Pottinger last year. The charges, for contravention of the Companies Act, follow hot on the heels of an announcement from the National Prosecuting Authority in South Africa that it had frozen 1.6bn rand (£94m) of McKinsey’s assets. This flowed from McKinsey’s work for state utility business Eskom, which it undertook with Gupta-
INTEREST IN J&J DIABETES UNIT Firm has attracted Asian suitors for business
linked local partner Trillian Capital. A whistleblower accused Trillian last year of using its influence to funnel contracts at state-owned firms through to international companies. McKinsey yesterday denied that it had received a court order regarding the freezing of its assets, and urged authorities to pass the documents on. “We have no interest in being party to a contract entered into unlawfully by Eskom,” a spokesperson said.
CHINESE bidders are circling a diabetes care business owned by the world’s largest healthcare company Johnson & Johnson in a deal that could fetch up to $4bn (£2.9bn), five people with direct knowledge told Reuters.
Stamp duty cut hardly affecting first-time buyers HELEN CAHILL
@HelCahill STAMP duty changes announced in the budget are having little effect on the housing market, property experts have said. Buyer interest fell in December, according to a survey from the Royal Institute of Chartered Surveyors (Rics), and market activity continued to fall. When respondents were asked if they had seen an increase in enquiries from first-time buyers, the majority of (86 per cent) across the UK said they had not. In the Autumn Budget, Philip Hammond unveiled a stamp duty holiday for first-time buyers purchasing homes worth up to £300,000. Stamp duty was also axed for firsttime buyers on the first £300,000 of any purchase worth up to £500,000 in London. The pledge was part of the government’s renewed focus on housing. Transaction activity fell in December, with 13 per cent more respondents reporting a decline in sales volumes month-on-month.
But, surveyors predicted a marginal increase in prices over the coming months. Simon Rubinsohn, Rics’ chief economist, said: “The initial feedback from the market doesn’t suggest that the stamp duty regime announced in the budget is going to have a material impact on activity. Indeed, the risk was always that a good portion of the benefit would be capitalised in the price, therefore limiting the benefit for the first-time buyer.” When the chancellor first announced the stamp duty holiday, the Office for Budget Responsibility (OBR) said the measure would push up house prices slightly, thereby benefiting home owners. UK house prices grew by 2.7 per cent in the last three months of 2017, compared with the same period a year earlier, according to the Halifax house price index out earlier this month, slowing from 3.9 per cent in November. The figures showed house prices in the final quarter were 1.3 per cent higher than in the previous quarter, down from 2.3 per cent recorded in October and November
‘Chicken King’ Boparan told off for Christmas biscuit gift to MPs JASPER JOLLY @jjpjolly CHICKEN magnate Ranjit Boparan has been told off by the head of a parliamentary committee for sending MPs unsolicited Christmas biscuits – with an alleged total retail value of around £20. Boparan is chief executive of Wakefield-based 2 Sisters Food Group, which makes a wide variety of food products, including Fox’s Biscuits and Goodfella’s Pizza – although Boparan is known as the
“Chicken King” because of his extensive poultry interests. Neil Parish, chairman of the environment, food, and rural affairs committee, said the gifts to several MPs were an “inappropriate gesture” and an “unwarranted attempt to impugn the committee’s impartiality.” 2 Sisters has responded formally to the MP, but said they sent eight packets as a “goodwill gesture” sent to “hundreds” of customers, suppliers, and community organisations.
THURSDAY 18 JANUARY 2018
Burberry’s UK sales disappoint as pound climbs ALYS KEY
@alys_key BURBERRY missed some analyst expectations yesterday, revealing that performance in the UK was impacted by the pound’s recovery. Retail revenue in the three months to 31 December fell by two per cent on a reported basis to £719m compared to £735m in 2016. But on an underlying basis, sales grew by one per cent, while comparable store sales were up two per cent. The figures were at the lower end of analyst expectations, and shares closed down 9.3 per cent making Burberry the biggest FTSE 100 faller. The company said it was on-track to hit its operating profit guidance for the year, as well as cumulative cost savings of £60m. Sales in the UK declined by a high single digit during the quarter compared to last year. This was largely put down to
unfavourable comparable figures after the UK experienced a major influx of high-spending tourists in the second half of 2016. Since then, the pound has crept up, dampening the luxury spending boom somewhat. On a call with journalists, chief operating and financial officer Julie Brown said that headwinds on Chinese consumers had also impacted performance, both in the local market and in popular areas for Chinese visitors.
M&S has a network of 19 distribution centres and warehouses
Marks and Spencer’s logistics operations move affects 380 jobs HELEN CAHILL
Research hints at slowdown for Aldi and Lidl
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@HelCahill MARKS and Spencer (M&S) said yesterday it is opening a new distribution centre in Welham Green, Hertfordshire, in a bid to cut costs and boost sales in its clothing arm. As part of the move to the site, formerly used by Tesco, M&S will be shutting down its operations in
Neasden, north London, affecting 380 jobs. DHL and XPO Logistics employ the workers at the M&S site in Neasden. Both firms have now entered a consultation with staff. Gordon Mowat, director of clothing and home supply chain, said the decision to move from Neasden was “not one we have taken lightly”. The news comes after M&S posted a likefor-like sales fall over Christmas.
@HelCahill DISCOUNT supermarkets opened a record number of stores in 2017, but according to new research, a slowdown could be on the cards. Analysis by UBS published yesterday showed that last year Aldi opened 76 new stores, and Lidl opened 43. However, they submitted planning applications for 128 new stores, which was a 40 per cent drop from their peak in 2015, when they submitted 205 applications. The lag time from application to new store is around 18 months. “The data suggests their growth appetite could be starting to wane,” said analyst Daniel Ekstein. “Stricter capital allocation would be unsurprising in a context of sharply declining investment returns.” Ekstein said the supermarket price war, which took place following an expansion of supply between 2010 and 2013, could have had an impact on the rate of expansion of the discounters. Both Aldi and Lidl posted record Christmas figures as they continued to grow market share.
New robo-adviser aims to fill space Gender pay gap figures between Nutmeg and the super-rich stump UK’s statisticians LUCY WHITE @LucyGJWhite FINANCIAL planning firm Symphony has today become the latest to enter the growing “robo-advice” melee, launching an online wealth management service to rival competitors such as Nutmeg, Wealthify and Netwealth. The Finchtech platform will be aimed at clients who do not want – or can’t afford – bespoke advice
services, but would like their money invested in a low-cost portfolio. Managed by Tam Asset Management, a discretionary fund manager, investors can choose from four “mainstream” portfolios and four “socially responsible” portfolios ranging from cautious to adventurous risk levels. “We’re working with financial advisers who have clients that have fallen through the ‘advice gap’ – advisers don’t see it’s financially
worth their while spending hours giving advice, or it’s too expensive for their client to partake of full advice,” said Tam’s chief executive Lester Petch. Finchtech also has a charitable option called You Give, We Give. A client can choose to give a portion of the profits they make on their investment to charity, and Tam will pay the same percentage of its fees. Finchtech will also offer Isas, and aims to launch pensions in 2018.
REBECCA SMITH @BexKSmith MOST of the UK’s gender pay gap cannot be explained by differences in characteristics of men and women, or the types of jobs they do, according to new analysis from the Office for National Statistics (ONS). It found 36.1 per cent of the gap could be explained by a difference in characteristics between genders, and the jobs they do, considering
aspects such as occupation and how long people had been in their roles. The ONS said occupational differences were the biggest factor, accounting for 23 per cent of the gap, while 9.1 per cent can be explained by the difference in working patterns. But, 63.9 per cent “cannot be explained”, with the ONS saying information on family structures, education and career breaks could provide greater insight.
THURSDAY 18 JANUARY 2018
Cineworld announces £1.7bn rights issue to finance Regal acquisition COURTNEY GOLDSMITH @courtneynoelg CINEWORLD has announced a fully underwritten rights issue to raise £1.7bn to finance its $3.6bn (£2.6bn) acquisition of US rival Regal Entertainment, as 2017 sales jumped. The cinema chain said investors will receive four shares for every one they hold. Cineworld’s tie-up with Regal would create the world’s
second-biggest cinema operator behind AMC Entertainment, but not everyone is pleased with the deal. One of the UK’s best known asset managers, Jupiter Asset Management, which is also a shareholder in Cineworld, condemned the deal last year, saying the chain would bite off more than it could chew by entering the US markets, which it sees as a massive unknown. In a trading statement, Cineworld
also announced revenue had grown by 11.6 per cent in the year to 31 December driven by expansion of the estate, an ongoing refurbishment programme and the roll-out of premium formats. The biggest films of the year were Beauty and the Beast, Star Wars: The Last Jedi and Dunkirk. Cineworld said it was “well positioned” for 2018, with a strong film slate including a number of big-name sequels.
The latest Star Wars film was one of the biggest 2017 blockbusters for Cineworld
US college book market drags on Pearson sales
Shares fell almost six per cent in early trading and closed down 4.65 per cent. But there was good news as well, with progress in the group’s digital business. By lowering the prices of ebook rentals, Pearson increased revenue in this sector by 22 per cent. It also said there had been “success” in a pilot scheme to rent physical books and would add 90 more titles to the range.
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@alys_key PUBLISHING group Pearson was among the companies leading the FTSE 100 into the red yesterday, after a mixed trading statement. While the firm said its profits would reach the top end of guidance at as much as £606m, it revealed it was still grappling with the US textbook sector. Sales in the unit dropped three per cent in the nine months to the end of 2017. This contributed to a four per cent decline in its North American arm and the overall two per cent drop in underlying revenues. The group only expects the US higher education market to get tougher, due to “lower college enrolments, increased use of Open Educational Resources and attrition from growth in the secondary market driven by print rental”.
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THURSDAY 18 JANUARY 2018
Boeing turns its hand to plane seats with launch of Adient joint venture REBECCA SMITH @BexKSmith AEROSPACE giant Boeing has this week announced the formation of a joint venture, Adient Aerospace, to manufacture and sell seats to airlines and aircraft leasing firms. Boeing said the tie-up with auto industry supplier Adient is aimed at addressing the aviation industry’s capacity troubles, need for better quality, and “on-time performance”, while eyeing a chunk of the $4.5bn
(£3.3bn) commercial aircraft seating market set to grow to $6bn by 2026. The move forms part of the firm’s efforts to bring more work in-house, with Boeing saying that would help provide better products and grow services further. Kevin Schemm, senior vice president of supply chain management, finance and business operations and chief financial officer for Boeing Commercial Airplanes, said: “Seats have been a persistent challenge for our customers, the
industry and Boeing, and we are taking action to help address constraints in the market. “Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world.” Adient Aerospace’s headquarters will be based near Frankfurt in Germany, while its customer service centre will be in Seattle.
Boeing is looking to make inroads on the commercial aircraft seating market
Volkswagen sales speed to new record high
@BexKSmith THE BOSS of Volkswagen said yesterday he was grateful to customers “for their trust” as the car firm announced yesterday it delivered a record number of vehicles for 2017. The German group, incorporating the likes of Porsche, Audi, Skoda and VW, was rocked by a diesel emissions scandal in 2015, but reported yesterday that sales for last year rose 4.3 per cent to 10.74m units. Volkswagen chief executive Matthias Muller said: “We are grateful to our customers for the trust these figures reflect. We will continue to do everything we can in 2018 to meet and exceed the expectations of customers all over the world.” Deliveries in December surged by 8.5 per cent to near 1m units. Across Europe, Volkswagen provided customers with 4.3m vehicles for the year – up 3.3 per cent on 2016. Deliveries across North America meanwhile increased by four per cent to 976,400 units, and in the AsiaPacific region up 4.3 per cent to 4.5m. “We are making decisive investments in the mobility of tomorrow,
using funds from our own resources: in e-mobility, autonomous driving, new mobility services and digitalisation,” Muller added. “At the same time, we continue to systematically develop present technologies and vehicles.” In 2015, it was discovered that cars manufactured by VW had been equipped with software to evade tests, with around 1.2m cars in the UK affected, and 11m worldwide. It has since shelled out on compensation and fines in the fallout. Its strong sales showing, however, indicates the reputational hit from the troubles has not had a lasting effect among consumers. Thousands of motorists have teamed up in a class action lawsuit against VW in England and Wales, though, saying cars with engines fitted with so-called defeat devices should not have been certified fit for sale, as they produced higher levels of nitrogen oxide emissions than the rules allowed. Volkswagen Group UK has said that only “a very small number of customers have expressed interest in taking legal action against us in England”.
Mayor Khan hails pay deal for bus drivers REBECCA SMITH
There are plans for a new theatre and retail space over Tottenham Court Road
Crossrail hands West End site to Derwent London for new theatre REBECCA SMITH @BexKSmith CROSSRAIL has handed over a West End site to developer Derwent London for work to get underway to develop a major £260m project over Tottenham Court Road station encompassing offices, retail and a new theatre. Crossrail land and property director Ian Lindsay said yesterday: “This is the first Crossrail site to be handed over for full construction of the development above.
“Tottenham Court Road is our flagship development with Derwent London and our highest value commercial site.” Derwent will now start enabling works, and intends to appoint a main contractor later in the year to prepare the space for the 285,000 sq ft project, ahead of the Elizabeth Line fully opening by December 2019. The Elizabeth Line, as it will be known when it opens through central London, will serve 41 stations and stretch across more than 60 miles.
@BexKSmith SADIQ Khan yesterday unveiled a new “Licence for London” to ensure bus drivers can switch companies at a pay grade equivalent to their level of service and experience. The mayor said the move will provide a fairer deal for the capital’s 25,000 bus drivers, bringing an end to the previous system. Under that system, drivers moving from one firm to another could be paid the lowest driving wage as if they were starting their careers, although they may have worked for years with their present company. Drivers now take their qualifications and driving record in the form of an enhanced reference for their new employers, with all London bus operators signing up to Licence for London. The deal was agreed by the mayor, Unite union, Transport for London and the private bus firms operating services in London. Khan said: “I’m determined to ensure all of London’s bus drivers are treated fairly as professionals, and I’m delighted we’re now addressing a situation where a driver with the same level of knowledge, skill and experience could get paid significantly less, simply for working on a different route or moving company.”
London Southend flies to 25 per cent surge in passenger numbers REBECCA SMITH
The airport is aiming for an even better 2018 after hitting the 1m milestone last year
@BexKSmith ONE MILLION passengers travelled through London Southend Airport last year after a 25 per cent rise in passengers over 2017. The airport said yesterday it flies to over 30 domestic and European destinations, with the most popular choices over the past 12 months including Rennes and Amsterdam.
It is expecting the likes of Dubrovnik, Zadar and Pula in Croatia, and Prague in the Czech Republic to prove favoured picks over the summer. Glyn Jones, chief executive of Stobart Aviation, owner of London Southend, said: “2017 saw us make important additions to the retail offering in the terminal as well as adding a significant number of new routes – with more still to come –
some providing a time and costeffective way for our passengers to connect to North America and Canada.” Jones said the airport is eyeing greater passenger growth this year, with expansion on the cards. Last October, London Southend announced it had applied for permission to extend its terminal building, submitting an application to Rochford District Council.
THURSDAY 18 JANUARY 2018
Renault-Nissan to pursue plans to split up various management roles GILLES GUILLAUME RENAULT-NISSAN will pursue its plans of splitting up management roles between those dealing with strategic matters and those handling more operational affairs, said Renault boss Carlos Ghosn. “Regarding corporate governance, you will see changes in terms of separating the responsibilities of those dealing with Renault, with French car maker Renault was established in 1899
Cobham chief blasts claims of ‘fake degrees’
@citycait THE PURCHASING of fake degrees by staff in Cobham’s helicopter unit had no impact on safety and has been dealt with via an internal investigation, the manufacturer said yesterday. Allegations that Cobham workers had bought false qualifications emerged in a report on the BBC Radio 4 File on Four programme, broadcast on Tuesday night. The BBC reported that a firm called Axact, which claims to be the “world’s largest IT company”, sold thousands of fake degrees to UK nationals – including employees of defence contractor FB Heliservices, owned by Cobham. FB Heliservices, now known as Cobham Helicopter Services, bought fake Axact degrees for seven employees, including two helicopter pilots, between 2013 and 2015, according to the BBC. David Lockwood, Cobham’s chief executive, said yesterday: “I instigated an immediate investigation by a leading law firm as soon as I was made aware of this issue. The investigation was conducted over a three month period and completed in June 2017. “It concluded that the issue was
historic and related to the tax status of a small number of employees based in Curacao, was entirely unrelated to the performance of their roles, and had no impact upon the safety of any of its operations or the training of any individuals in the United Kingdom or elsewhere. “Procedural and disciplinary actions have been taken to address the issues raised and the matter is now closed.” Cobham said its Helicopter Services aircrew and engineers are “highly trained professionals who hold the required licenses and qualifications to fulfil their roles, and these are routinely and independently audited”. “When I joined Cobham, I stated that my focus would be on better control and execution, improved customer relationships, and strong and visible leadership,” Lockwood added. “I also stated that we would build a sense of momentum and clear purpose among Cobham’s management and employees, while improving accountability. Robustly dealing with legacy matters such as the purchase of these degrees is central to changing Cobham’s culture and improving its performance.” Cobham’s share price closed up 2.47 per cent yesterday, at 134.65p.
Tech speed-dating sessions match startups with investors LYNSEY BARBER @lynseybarber LONDON is hosting its first matchmaking event to bring tech startups together with top investors as part of the mayor’s efforts to generate investment in the industry. Sadiq Khan will tonight host the first of what’s set to be 20 events over the next four years, designed to showcase 10 of the top startups in certain areas that stand to be valuable to London’s development and its reputation as a global hub.
The first event will focus on AI startups, and includes on-demand home care startup Cera, which is using AI powered chatbots to assist carers and Digital Fineprint, which uses AI to tap social data for insurance. Future events will focus on areas such as virtual reality and socalled govtech. Experts at the event, which is backed by City Hall and the UK British Angels Associations, will include Wendy Tan-White of BGF Ventures, Ben Blume of Atomico and Simon Menashay of MMC Ventures.
Nissan, with Mitsubishi and with the overall alliance,” Ghosn told a French parliamentary finance commission yesterday. Last June, Reuters reported that Ghosn was recruiting a new operational second-in-command for the Renault-Nissan car making alliance, in a move designed to prepare his own succession and advance the companies’ integration. French newspaper Les Echos also
reported in December that Renault had started interviewing possible candidates to replace chief executive Ghosn when his term expires. Ghosn told the French parliamentary commission that the future regarding his role at Renault depended on the company’s strategic plans and roadmap. Last November, the French government began the sale of 4.73 Reuters per cent of Renault.
THURSDAY 18 JANUARY 2018
Startup Marshmallow holds firm as trademark war ensues with Marsh LYNSEY BARBER @lynseybarber AN INSURANCE giant with more than 100 years of history under its belt and a tech startup little more than a year old have become embroiled in a row over the word marshmallow. A dispute over trademarks has broken out after Marsh laid claim to the word, which was the name chosen by a couple of entrepreneurs for their startup which is planning to
launch its own insurance product. The dispute has been going on for longer than founder brothers Oliver and Alexander Kent-Braham have been in business. They received notification of the trademark infringement claim after they came up with the idea in 2016 and registered the name Marshmallow – something they said was run past lawyers at the time. They have since spent thousands of pounds defending their name and have tried to settle it on three
occasions, they said, but with no agreement from Marsh. “It’s the principle,” said Oliver Kent-Braham. “Marsh and Marshmallow are very different names and we would have been doing ourselves and other startups a disservice if we didn’t stand up for ourselves.” Marsh declined to comment. The Intellectual Property Office is now mediating on the matter and could come to a conclusion as soon as the end of January.
Marsh is disputing the use of Marshmallow
City Pub Co eyes millennials for further growth
@alys_key CITY PUB Company is eyeing younger pub-goers for further growth after announcing a 34 per cent jump in turnover yesterday. The 33-strong group said revenue had reached £37.4m for the whole of 2017, in its first trading update since its initial public offering (IPO) at the end of last year. This was largely due to expansion, but like-for-like sales at comparable sites also increased by 3.8 per cent. Since the end of the period, contracts for three more sites have been agreed, with anticipated refurbishment costs of £2.6m. Another two are currently being refurbished, putting the total estate at 38, with 23 freehold and 15 leasehold. Shares in the company closed up 1.19 per cent to 169.5p, though have yet to return to IPO highs of 181p. City Pub Company has earned praise from analysts, who see it as an opportunity to tap into the higher end of the pub market, with millennials as a particular focus. Earlier this month, Berenberg made the company one of its top picks in
the sector along with Fuller’s, citing “well-invested, differentiated offerings that tap into consumer trends towards premium alcohol consumption”. This appeared to bear out in a record Christmas, with recent acquisitions outperforming management expectations. Speaking to City A.M. about the consumer trend to spend more on premium alcohols, executive chairman Clive Watson said: “I don’t just see it surviving, I see it thriving. “I think a genuine shift away from brands [is happening] in general and particularly in pubs and restaurants. So I see our style of retailing actually gaining more and more as we go forward. He added: “We’ve got the experience, we’ve got the right strategy. We’ve completed the first lap, there’s no dash for growth.” The group will also open its first fully vegan pub in March, tapping into another millennial trend. Watson hopes that the pub will give the group expertise in vegan food and drink, which can then be rolled out with the goal of making a third of the menu in every pub vegan.
Revenue hits £34m at wine asset manager ALYS KEY
Worldwide same-store sales rose five per cent in November and December
Tiffany’s same-store Christmas sales sparkle in the Americas SIDDHARTH CAVALE TIFFANY & Co posted strong samestore sales yesterday for the holiday period, putting it on track for its first quarterly increase in more than two years and prompting a rise in its fullyear profit forecast. CEO Alessandro Bogliolo cautioned that the upscale jewellery chain still needed to invest more in its business to sustain the boost from what so far seems to have been a buoyant Christmas for retailers. “We were pleased with the
improvement in sales during the holiday period across regions and categories, both instore and online,” Bogliolo said. “However ... we believe that the preceding negative comparable store sales trend can only be reversed on a sustainable basis... by stepping up certain strategic spending in our business.” During November and December, same-store sales rose six per cent in the Americas, as customers spent more on fine jewellery, solitaires and cheaper fashion items. That helped boost overall same-store sales. Reuters
@alys_key CULT WINES, the wine asset manager founded by The Apprentice runner-up Tom Gearing, has posted record revenues five years after Lord Alan Sugar turned down investing in the business. The company increased revenues by 67 per cent to just shy of £34m in 2017. Assets under management stand at £65m after a 28 per cent increase in the firm’s client base. Growth in Asia was 123 per cent on the year, prompting the group to announce yesterday it is opening a new office in Shanghai. But the company still has an office in London, and the UK accounts for around 60 per cent of assets under management. Gearing told City A.M. that not winning The Apprentice was probably “the best thing that’s ever happened to me”. He revealed that two possible endings were filmed for the show with each of the finalists winning. But in negotiations in the following months, it emerged that Lord Sugar was not keen to invest in a fund and chose to invest in contestant Ricky Martin’s recruitment business. Cult Wines now expects turnover to rise 88 per cent in 2018, bringing in £55m.
Number of distilleries in UK more than doubles thanks to ‘ginaissance’ EMMA HASLETT
Gin o’clock? The spirit has sparked a national obsession
@emmahaslett GIN IS back – and the craze for artisanal versions of the classic English tipple have sent the number of distilleries in the UK to a new high. The number has more than doubled in five years, to 315 across the UK, with 49 new ones opening in 2017 (although seven closed). In
2013, there were just 152 distilleries in the UK, most of which were in Scotland. The Wine and Spirits Trade Association (WSTA) said the boom was down to what it dubbed the “ginaissance” – a boom in gin consumption. According to the figures, gin sales in shops and supermarkets have grown 19 per cent by volume in the past year, to 268,000
hectolitres, while sales in pubs and restaurants have risen 15 per cent. In the last year, the UK drank the equivalent of 1.32bn G&Ts, while we exported 180m bottles, worth £474m, to 139 countries. “New gin brands continue to pop up on our supermarket shelves on a regular basis, as Brits show no sign of tiring of the quintessentially British spirit,” said Miles Beale, chief exec of the WSTA.
THURSDAY 18 JANUARY 2018
CITY DASHBOARD LONDON REPORT
Market loses momentum as Interserve flails
K SHARES edged down yesterday as a flurry of corporate news triggered sharp moves, including for contractor Interserve after the Financial Times reported the British government was monitoring it following the collapse of competitor Carillion. The blue-chip FTSE 100 index ended the session 0.4 per cent lower at 7,725.43 points, underperforming the broader European market. Within small market capitalisations, Interserve saw its shares tumble around 15 per cent at the open then gradually recoup most of its losses, closing 0.4 per cent lower. Informa’s £3.8bn offer for events organiser UBM also triggered dramatic moves, with the latter surging 12 per cent and the bidder sinking 5.7 per cent at the same time. Shares in luxury brand Burberry were the biggest fallers on the FTSE, losing more than nine per cent after reporting a two per cent drop in retail revenue for the Christmas quarter. “Following better than expected sales for the December quarter from Richemont and Hugo Boss, Burberry’s
retail performance in Q3 may be seen as a bit disappointing,” said RBC Europe analyst Rogerio Fujimori Pearson also sustained heavy losses, down 4.6 per cent after saying it planned to cut staff and sell assets in a bid to eke out underlying growth in 2018, while its North American business continued to weigh on performance. Provident Financial posted another session of losses after Tuesday’s 13 per cent fall, down a further 13 per cent on the day. Broker Burberry was the biggest faller on the FTSE 100 index yesterday Liberum cut its price target on the stock and said the risks were still too great to consider owning the stock. On a more positive note, engineering group GKN added 1.3 per cent after turnaround specialist Melrose raised its takeover offer to £7.4bn after meeting the company’s shareholders. The bidder gained 0.3 per cent. Rolls-Royce was the top FTSE gainer, up 5.4 per cent after saying that it was considering the sale of its loss-making commercial marine business.
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Big Yellow shares advanced 27 per cent during 2017, perhaps profiting from Londoners needing to put their stuff somewhere as they squeeze into ever smaller abodes. Supply growth in the storage sector is “increasingly constrained” Berenberg analysts reckon. “[They] benefit from high barriers to entry and the ability to leverage their scale and cash generation to consolidate the market.” Big Yellow is upgraded to a “buy” and hikes its target price to 920p. “Berenberg continues to believe in the long-run growth potential of the UK self-storage market,” analysts say.
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Peel Hunt analysts give their opinion on a European Commission inspection of RISI’s Brussels office. RISI was acquired by Euromoney in March 2017 for $125m (£90m) and is a price reporting agency for the pulp and paper markets. The scope and nature of the investigation is as yet unclear, though the comments from the EC note “the inspected company may have breached article 101...” Does this put the broker off? Not on your nelly. Analysts hike Euromoney’s target price to 1,420p, given the “potential for an acceleration of the strategic plans” with a “buy” recommendation.
1. Rolls-Royce up 5.44 per cent 2. Mediclinic up 3.13 per cent 3. NMC Health up 1.61 per cent
TOP FALLERS 1. Burberry down 9.3 per cent 2. Informa down 5.67 per cent 3. Pearson down 4.65 per cent
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NEW YORK REPORT
Dow rockets past 26,000 on earnings boost
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Many in the City may turn their noses up at Greggs’ popular pastries. All those snobs should take one look at 79 Tower Bridge Road at 8am on a Friday morning and observe the queues. Canaccord Genuity say Greggs’ recent trading statement was a “good end-of-term report”. Refurbs and new openings are all on track and supports attractive dividend payouts. Canaccord brokers are therefore drawn to the sausage roll maker given the “yield-hungry world” investors live in. Analysts leave their recommendation as a “hold” but up their target price to 1,320p.
S STOCKS jumped yesterday and the Dow closed above 26,000 for the first time as investors’ expectations for higher earnings lifted stocks across sectors. The Dow also hit an all-time high in intraday trading. It had briefly reached the 26,000 milestone on Tuesday, in its fastest 1,000-point rise to date, before dropping back below that threshold. The S&P 500 posted a record closing high. It has gained 4.8 per cent this year, posting only two sessions of losses. More than three-quarters of the 36 S&P 500 companies that have reported so far have topped earnings estimates, according to Thomson Reuters. Outlooks for future earnings are rosy as well, due to the lower corporate tax rates passed last month. The Dow Jones Industrial Average rose 322.79 points, or 1.25 percent, to 26,115.65, the S&P 500 gained 26.14 points, or 0.94 percent, to 2,802.56 and the Nasdaq Composite added 74.59 points, or 1.03 percent, to 7,298.28. Boeing jumped 4.7 per cent after the company announced a joint venture with car seating leader Adient to make aircraft seats. IBM rose 2.9 per cent after Barclays analysts upgraded the stock two notches to “overweight” and hiked its price target by $59 to $192. Several companies, however, saw their shares trade lower after underwhelming earnings reports and forecasts. Banks seesawed as Goldman Sachs and Bank of America reported disappointing results. The S&P 500 banks subsector fell in earlier intraday trading but ended yesterday up 0.6 per cent. Goldman fell 1.9 per cent after posting its first quarterly loss in six years on tax-related charges and a sharp drop in trading revenue. Ford tumbled seven per cent after the car maker reported full-year profit below estimates and provided a downbeat forecast. General Electric slipped 4.7 per cent, extending losses from Tuesday, when it announced more than $11bn (£7.9bn) in charges.
CITY MOVES WHO’S SWITCHING JOBS HUNTON & WILLIAMS
Hunton & Williams LLP continues the expansion of its global corporate practice with the addition of Angus Duncan as a partner in the firm’s London office. He brings more than 25 years of experience handling complex structured finance and specialty finance transactions. Duncan has represented clients on securitisations and financings involving a range of assets, including loans, consumer receivables, real estate, and hedge fund interests. He has worked on a
number of “market firsts” including Europe’s first CRE CDO, the first European pro rata CLO, the first European CLO managed by a hedge fund and the first catastrophe bond transaction incorporating a tripartite repo structure. Recently, his practice has had a focus on acting for new entrants to the financial markets, both in the UK and overseas. He also advises on insurance-linked securities, including sidecars, industry loss warranties and privately placed transactions with respect to catastrophe, mortality and longevity risk using the capital markets.
Tunstall Real Estate Asset Management, the panEuropean alternative investment management firm,
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has further expanded its senior management team by appointing Rebekah Tobias as head of investor relations. This appointment follows the employment of Nicola Burke as general counsel and Christopher Hodson as finance director last year. Rebekah has over 15 years of real estate experience and joins Tunstall from Cushman & Wakefield, where her primary responsibilities included advising pension funds, private equity investors, international corporates, financial institutions and HNW private family offices on real estate acquisitions, dispositions and joint ventures in gateway cities across Europe. She started her career at CBRE in New York in 2006, prior to relocating to its London office in 2008. She is a member of the Royal Institution of Chartered Surveyors.
Lazard hires Dominik Woessner into its private capital advisory business to build its secondary advisory practice in Asia. Dominik was most recently the head of Greenhill-Cogent’s secondary advisory business in Asia, which he led since 2013. He is one of the most experienced secondary market advisory professionals in Asia. Dominik will initially work for Lazard in London and will move into Lazard’s Singapore office in the second half of 2018 to lead the origination and execution of secondary transactions in Asia. He joins a global team led by Holcombe Green in New York, that is one of the largest advisors in the secondary market and a recognized leader advising financial sponsors in secondary market transactions around the world.
THURSDAY 18 JANUARY 2018
FORUM EDITED BY RACHEL CUNLIFFE
As Thailand and Vietnam lead the Asian century, it’s time for British businesses to look east
WROTE in these pages last October that this has all the makings of being the Asian century: a century when Asia stands ready to cement its position as a cultural, political, and economic powerhouse. This was evident most recently on my visit to Thailand and Vietnam, where I continued to promote the UK as a champion of free trade, and a world leader in sectors such as fintech, education and medical research, as well as the world’s biggest destination for foreign direct investment. It’s clear that the region has many exciting opportunities to offer UK businesses. Thailand is a fascinating, dynamic nation, and the second largest economy in ASEAN. It is a developed country, but faces many immediate challenges (common throughout Asia’s rapidly growing economies) which it will need to overcome to avoid the middle-income trap. I reassured Prime Minister Prayuth Chan-o-cha of the UK’s commitment to supporting Thailand’s aspirations in becoming a high-income economy and a hub at the heart of ASEAN. The centrepiece of my visit was the third UK-Thailand Strategic Dialogue, which I co-chaired. We agreed to focus efforts on three key industrial sectors: aerospace; fintech; and science, technology and innovation. This fits neatly within Thailand’s
plan for achieving its development goals – its “Thailand 4.0” initiative is centred around a $47bn investment in the Eastern Economic Corridor. British companies are uniquely placed to offer expertise, particularly on projects such as the regeneration of U Tapao airport, and the development of high-speed rail links. Thailand already offers investors generous tax and regulatory breaks to incentivise investment, and the government is keen for UK business to be involved in the next of its development. Over the next year, I hope to work with UK companies to make the most of these opportunities. As for Vietnam, the country has seen eyewatering levels of economic growth over the past 30 years, second only to China. This is set to continue, thanks in part to recent improvements in the overall business environment. There is still room for progress, but the UK stands ready to provide expert advice to assist Vietnam to reach its full potential. Bilateral trade and investment is growing smartly – indeed, it has more than doubled since we signed our strategic partnership in 2010 – but there is much more potential to be exploited. Our relationship with Vietnam is broader and deeper than many would expect. During my visit, I saw the work we are doing to support economic development through
UK companies should feel confident in building ever more creative and collaborative partnerships with this dynamic part of the world
promoting renewable energy, green finance, and developing smart cities. I visited the Hanoi Stock Exchange to promote collaboration with London’s financial services, and donned a white coat at the National Hospital of Tropical Diseases to learn how research, innovation and education collaboration is leading to ground breaking progress in antimicrobial resistance. All of this, and more, will come together in 2018, as we celebrate 45 years of diplomatic relations. Meanwhile, this year will enable us to display in Vietnam the best of what the UK has to offer in education, creativity, and innovation. My trip underlined how diverse and varied the ASEAN region is, but at the same time the shared values which connect us: a strong focus on innovation and development, people-to-people links, and the commitment to fostering potential. Both Thailand and Vietnam have emergent middle classes and avid social media usership. Both countries are rapidly climbing the World Bank Ease of Doing Business rankings (Thailand by 20 places to 26th, Vietnam by 14 to 68th). British companies should feel confident in continuing to invest in building ever more creative and collaborative partnerships with this dynamic part of the world. £ Mark Field is minister of state for Asia and the Pacific for the Foreign and Commonwealth Office.
It’s pensioners, not first-time buyers, who should be getting stamp duty relief
TAMP duty is in the news again. Earlier this week, Labour’s shadow housing minister, John Healey, called on the government to extend the tax break introduced in the November Budget to first-time buyers who use the shared ownership scheme. Policies that are seen to help struggling first-time buyers always go down a treat from a political perspective. The scrapping of stamp duty tax was largely heralded as a positive move, and seemed like a long-awaited change in tone from the Tories, who had neglected the concerns of younger generations for years. On the surface, the tax break looks like a noble gesture that would nudge more young people onto the housing ladder. But what appeared to be an altruistic policy from the government is, in truth, a bit of a damp squib, and unlikely to achieve what is intended. In reality, those who ben-
efit from a tax break will have plans to purchase a property anyway. The real struggle for young buyers is getting the initial deposit together (and let’s not forget that wouldbe homeowners in London need an average first deposit of £91,409). Stagnant wage growth also makes the prospect of getting a mortgage even harder. Stamp duty relief might bring house purchases forward, but it will not alleviate the affordability problem. Where tax breaks could be helpful is in encouraging people to downsize. The government should address the fact that many older people are clutching onto these family-sized houses, even though their middle-aged children left the nest many decades ago. So what if the government gave older generations – say, those lasttime buyers in their 70s – a tax break for moving into smaller properties? This would give older people
an incentive to downsize, and free up the middle section of the market, so that younger buyers can get some real relief – in the form of housing stock. If families are able to take their next step up the property ladder by moving into larger properties (which older people are currently occupying), it will ultimately free up those potential first-time buyer properties in the lower price range. Giving retirees a tax break might sound like another policy for the oldies, but it’s possible that it could actually have a far bigger impact than the relief now offered to first-
time buyers. Key Retirement’s Dean Mirfin advocated this during a roundtable last week, pointing out that one of the biggest costs for older people is stamp duty tax. Older people are not mortgaging – they are moving, so actually saving a few thousand pounds on stamp duty would be a massive incentive to downsize. By comparison, stamp duty is relatively small in the overall cost of a first-time buyer’s finances. Of course, the problems in our housing market all stem from a lack of supply, but until we are building enough houses, we need to stimulate activity across the market to make the most of this painfully limited stock. It’s time to ease the pressure in parts of the property market so that young people can finally own their own homes. £ Katherine Denham is a business features writer at City A.M.
LETTERS TO THE EDITOR
Mayorbe not [Re: Pimlico Plumbers boss Charlie Mullins to run for London Mayor] Charlie Mullins says the mayor of London should be a cheerleader for the City. May I remind Charlie and your readers that the real spokesman for the City of London is the lord mayor. For 800 years, he or she has represented all that is best in the City of London, and with Brexit now on the horizon, we have the greatest opportunity since big bang under Margaret Thatcher in the late 1980s to once again position our financial services sector at the centre of the world. While the mayor of London should be encouraged to assist the Square Mile, the prime responsibility for representing the massive revenue-earning and taxpaying City of London and to strengthen the marketing of all our financial services – banking, insurance, accountancy, legal – expertise to the wider world is the lord mayor, who is the dedicated ambassador supporting and promoting the City of London. The lord mayor is regarded as the champion of the entire UK-based financial sector, regardless of ownership or location throughout the country. William Charnley, partner, King & Spalding
Trains of thought [Re: The UK’s best and worst train companies ranked by passengers] Train firms are struggling to address basic aspects of the passenger experience according to the Which? survey. Contending with the wider impact of overcapacity and unpredictable weather conditions, both the railways and trains are in need of a dramatic overhaul. Across the world, advancements in rail are taking shape in many ways. The digitisation of rail enables us to generate data and provide a holistic picture of every part of the journey taken by a train. Detecting the real-time health of trains and tracks will improve the reliability of trains and the passenger experience immensely. Taking a preventative approach to train maintenance means that emerging operational issues get either fixed or reported long before they start affecting the performance. By sharing best practices between governments and operators from different countries, we can all move towards a safer, connected train together. Bhoopathi Rapolu, head of analytics (EMEA), Cyient
BEST OF TWITTER If you got bitcoin for Christmas, it’s now worth a quarter less than when Santa delivered it @jkaraian How to become a #bitcoin millionaire? Start out as a Bitcoin billionaire. @tylerwardmusic Amber Rudd, MP for Hastings, wants Bayeux Tapestry to be displayed in Battle Abbey, not London, Theresa May says. @gordonrayner Convincing Macron to ship the Bayeaux Tapestry to Hastings in order to save the home secretary’s marginal seat would be politics in its purest form. @jimwaterson
THURSDAY 18 JANUARY 2018
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The reaction to Carillion shows how politicians get the economy wrong
HE RESPONSE of politicians to the demise of Carillion has been a little disturbing. The government has immediately underwritten all wages due to public sector contracts, and the official opposition has gone a step further, calling for these services to be insourced, instead of being outsourced to the private sector. Given the scale of Carillion’s involvement in key public services such as health, the government did not have much choice politically. In order for these crucial services to continue to be delivered, the wages of Carillion employees obviously need to to be paid. The key point though is that the government should have taken the opportunity to state emphatically that this was a one-off – the state would have been paying fees to Carillion anyway if it had continued to trade. By not doing so, the government has introduced a moral hazard by suggesting that private sector suppliers to the public sector will be too big to fail from now on. The wider economic consequences are significant also. Indeed, they go to the heart of why all companies should be allowed to fail. Estimates suggest that, across the globe, 25 per cent to 70 per cent of productivity growth is attributable to the entry and exit of firms in the economy. Indeed, the notion of zombie companies – only held afloat by record low interest rates – reinforces this point, and could be a significant explanation of why productivity growth has been so low in the wake of the financial crisis. The unintended consequences of the government bailing out compa-
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nies are far and wide. The employment and pension consequences of corporate failure are obviously horrible for those caught up in it, but this does not provide a case for state intervention. If 20,000 micro companies each lost one job, nobody would be calling for state intervention. And yet, the aggregate UK-wide employment consequences of Carillion’s demise would be the same – around 20,000 jobs. Tough love is the best route to prosperity in the long term. So how does this tough love work? There are many potential channels with regard to the entry and exit of firms. On the exit side, low-productivity firms are pushed out by market forces if they fail to provide goods and services that consumers want, at a price they are willing to pay, compared with their competitors. On the entry front, new entrants
The worst possible economic structure is a public sector monopoly
Certified Distribution from 30/10/2017 till 26/11/2017 is 90,820
emerge as a result of product and process innovation – look at the rise of Google or Facebook. The most successful economies will be those that can develop more of the faster growing companies while shedding the underperforming ones. This is hardly rocket science, but it is hugely important for long-term prosperity, and comparisons of per capita GDP. Perhaps my biggest fear is that the leader of the opposition, Jeremy Corbyn, is calling for the replacement of what he calls the “broken system” of outsourcing with insourcing. Markets are not perfect – they are made up of imperfect people. But just as we must oppose private sector monopolies and excess market power, economic history teaches one even more powerful point: the worst possible economic structure is a public sector monopoly. A public sector monopoly will be led by producer, not consumer, interests. And it gets worse. Producer interests would demand more and more money, while performance in crucial areas like healthcare deteriorated at the same time. Corbyn obviously loves state-run economies such as Venezuela, but does he realise that the situation there got so bad that the government stopped publishing health statistics? Way to go Jeremy. The situation with Carillion is lamentable, but the thought of the state running everything is far, far worse. £ Graeme Leach is chief executive and chief economist of Macronomics, a macroeconomic, geopolitical and future megatrends research consultancy.
DEBATE Is the cryptocurrency market collapse a sign that the bubble is starting to burst? One of the largest bitcoin exchanges has stopped trading bitcoin. Investors appear to have lost the bitcoin that the exchange held on their behalf. Whether this is through fraud, external hacking, technological failure, or mismanagement is yet to be revealed. As this exchange is one of the biggest and most widely used, this is akin to one of the big banks going down. Sound familiar? The other exchanges are saying that this doesn’t affect them, but if I held any bitcoin, I would be wanting to sell them while I can. Think of the Lehman’s domino effect, greed turning to fear. The next 24 hours will be key as to whether investors stampede for the exit. I fear that, just as some investors
The cryptocurrency markets are here to stay. Yes, we are seeing a slight blip right now. But following the 2008 financial crisis, there was a widespread demand – and need – for a decentralised alternative to the global economic markets. Why are we experiencing this blip? Because as cryptocurrency grows, mass media fear-mongering is affecting the markets. But those betting against cryptocurrency are blinkered, in that they see cryptocurrency as synonymous solely with bitcoin, and as nothing more than a vacuous and volatile get-rich-quick offering. Cryptocurrency is so much more than this. It is a both a philosophy, and a credible form of payment – today you
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YES GUY STEPHENS
frame an old certificate, minted bitcoins may become a novelty item framed alongside the penny farthing and crown: interesting and nostalgic, but since superseded. If bitcoin does collapse, there may be something else that takes its place. But surely this event kills this application of blockchain technology. £ Guy Stephens is technical investment director at Rowan Dartington.
NO ELEESA DADIANI
can buy anything from a cup of coffee to a supercar in many of the more than 1,350 cryptocurrencies in circulation. One characteristic of a bubble is euphoric swelling, which when bursts leaves no substance behind. But the underlying desire for a decentralised economic alternative isn’t subsiding – indeed, it’s only just beginning. £ Eleesa Dadiani is a leading cryptocurrency economist and broker.
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THURSDAY 18 JANUARY 2018
DATA & BUSINESS The potential uses for this technology go far beyond financial services, says Graham Richter
ONDON Blockchain Week kicks off tomorrow, bringing together experts from around the world to share their new and exciting applications for blockchain technology. It marks an important moment for blockchain’s move to the mainstream, with several indicators suggesting that 2018 will be a tipping point for the innovative technology. Big businesses are already starting to move from experimentation to piloting real world use cases – most of which is in industries outside financial services. Although made famous by bitcoin, blockchain is, in fact not a payments technology. In its simplest form, it’s a ledger that multiple parties can see at the same time. The transactions are shared equally between all participants and no one owns the master copy. New information can only be added if the other parties agree, and no one can ever go back and change it. There is a full audit trail that everyone can see. Unlike traditional ledgers that prevent tampering by adding layers of security on top of a database, blockchain weaves the security into the data itself. Blockchain’s combination of immutability, consensus and security means you can trust the data coming from other parties, regardless of whether you trust those parties themselves. This certainty and trust can help create new levels of transparency within supply chains, manage customer loyalty schemes, verify the identity or qualifications of workers, and create new business models that were not possible before. Imagine, for example, using blockchain in the diamond industry to identify the origin of a stone down the specific pit in a mine – and then trace it all the way to the end customer. An incorruptible record of where a diamond was sourced, its supply chain and its certification, could eradicate counterfeiting and the proliferation of blood diamonds. It doesn’t stop there though. One of the highest profile stories about food supply chains in recent memory is the horsemeat scandal of 2013. That kind of failure is rare, but think of the average supermarket shelf for a moment: organic, free range, line-caught, free trade – there are many labels stating the provenance of food but no way to verify the claims. However, blockchain could track these products from field to shelf with absolute accuracy and help restore consumer trust. Blockchain can also help people in a more direct way. Imagine specialists who work in extreme conditions – oil rigs, for example. Verification that these people are who they say and have the right qualifications is important, but often impractical because of their extreme surroundings. However, storing their profiles securely on a blockchain that is unlocked by facial recognition could solve this problem. The same technology could be applied at airports, banks, and even off-licenses to paperlessly prove who you say you are. This isn’t just theory. At Accenture, we have helped to create a solution for
BRING ON THE
BLOCKCHAIN REVOLUTION the United Nations that combines blockchain and biometric data, providing an identity for millions of refugees without legal documentation. The challenge of proving who you are when every piece of paper identity has been abandoned, stolen or destroyed is almost impossible and prevents refugees from taking jobs and participating in society. Millions of people go through that ordeal every day. However, trials of the blockchain solution will begin this year and could transform their lives by integrating them into society. We have also developed a platform that uses blockchain to find and track counterfeit radio parts, prompted by revelations that up to 15 per cent of components in some military equipment supply chains are counterfeit. The problem can be far greater in other industries. Our solution verifies components at
This certainty and trust can help create new levels of transparency, manage customer loyalty schemes, verify the identity of workers, and create new business models
source, gives them a unique identifying mechanism – in this case a “cryptoseal” – and then confirms receipt and integrity at every stage of the supply chain. The end customer can see instantly if their product is genuine, and if there is any doubt, they can immediately see where verification was first missed. With so many other possibilities, financial services probably won’t lead the way with blockchain, despite taking the lion’s share of attention so far. We predict that consumer goods and natural resources companies may be the first to take blockchain mainstream, because it brings significant value to their heavy reliance on supply chains and skilled people. That is not to say we’ll see a wholesale move onto the blockchain any time soon though. Like telephones, email and other technologies before them, blockchain will need critical mass to be
practical. Everyone in the supply chain, for instance, needs to use it, otherwise there will be blind spots that undermine the data’s validity. Privacy, performance and maturity of the blockchain platforms will still concern some, as will the ability to regulate and govern it. But progress is rapidly being made. It’s an exciting time for blockchain, and any challenges will be overcome. As organisations wake up to this potential, they will discover innovative applications outside the financial services box. No doubt we will hear more of these examples in the months to come. London Blockchain Week will help to focus attention and advise businesses to embrace fresh ideas that can help them to unlock the value of blockchain. £ Graham Richter is managing director at Accenture Technology.
THURSDAY 18 JANUARY 2018
Price Chg High Low
GILTS 0.00 0.00 0.00 0.01 0.00 0.09 -0.01 0.20 0.04 0.07 0.22 0.22 0.11 0.12 0.30 0.10 0.32 0.35 0.07 0.07 0.19 0.05 0.07 0.03 -0.11 0.04 0.05 0.05 -0.01 -0.02 -0.04
Tsy 5.000 18 . . . . . .100.62 Tsy 1.250 18 . . . . . . .100.41 Tsy 4.500 19 . . . . . .104.47 Tsy 3.750 19 . . . . . . .105.17 Tsy 4.750 20 . . . . . .108.83 Tsy 2.500 20 . . . . .363.99 Tsy 8.000 21 . . . . . .124.42 Tsy 1.875 22 . . . . . .120.64 Tsy 4.000 22 . . . . . .113.21 Tsy 2.250 23 . . . . . . .107.14 Tsy 2.500 24 . . . . .364.09 Tsy 0.125 24 . . . . . . .113.81 Tsy 5.000 25 . . . . . .126.96 Tsy 4.250 27 . . . . . .127.24 Tsy 1.250 27 . . . . . .132.98 Tsy 6.000 28 . . . . .146.69 Tsy 0.125 29 . . . . . .123.08 Tsy 4.125 30 . . . . . .366.46 Tsy 4.750 30 . . . . . .137.84 Tsy 4.250 32 . . . . . .134.08 Tsy 1.250 32 . . . . . .150.79 Tsy 0.125 36 . . . . . .139.76 Tsy 4.250 36 . . . . . .139.18 Tsy 4.750 38 . . . . . .151.84 Tsy 0.625 40 . . . . . .161.55 Tsy 4.500 42 . . . . . .153.43 Tsy 3.500 45 . . . . . .135.21 Tsy 4.250 46 . . . . . .154.20 Tsy 4.025 49 . . . . . .160.10 Tsy 0.500 50 . . . . .188.03 Tsy 0.250 52 . . . . . .184.13
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
100.6 100.4 104.5 105.2 108.8 363.7 124.4 120.5 113.1 107.0 363.2 113.6 126.7 126.3 132.0 146.3 121.4 360.2 136.2 131.5 147.7 134.8 135.1 147.0 155.6 147.7 128.6 147.3 152.5 177.0 171.5
AEROSPACE & DEFENCE BAE Systems . . . . . . . .592.2 Cobham . . . . . . . . . . . . .134.7 Meggitt . . . . . . . . . . . . .491.0 QinetiQ Group . . . . . . . .216.3 Rolls-Royce Holdi . . . .900.0 Senior . . . . . . . . . . . . . .295.6 Ultra Electronics . . . . .1487.0
-0.6 3.3 1.0 -2.4 46.4 2.8 7.0
677.0 148.0 526.0 319.7 981.0 296.8 2204.0
535.5 96.2 410.6 201.5 660.0 175.8 1142.0
AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .447.6 5.6 449.5 294.3
BANKS Aldermore Group . . . . .311.2 Barclays . . . . . . . . . . . .198.5 BGEO Group . . . . . . . .3752.0 Close Brothers Gr . . . .1490.0 CYBG . . . . . . . . . . . . . . .325.2 HSBC Holdings . . . . . . .792.8 Lloyds Banking Gr . . . . .70.4 Metro Bank . . . . . . . .3666.0 Royal Bank of Sco . . . .294.8 Standard Chartere . . . .819.5 TBC Bank Group . . . . .1730.0 Virgin Money Hold . . .285.2
0.2 -0.9 -4.0 0.0 -0.2 -0.2 -0.1 8.0 -3.9 2.1 -14.0 -3.4
311.9 210.2 239.3 178.9 3868.0 2792.0 1715.0 1316.0 340.3 260.0 796.0 620.8 73.1 62.2 3834.0 3150.0 302.4 215.9 846.7 685.9 1818.0 1390.0 348.0 258.2
-1.0 3.0 24.0 16.5
675.0 820.0 2671.0 2725.0
BEVERAGES Barr (A.G.) . . . . . . . . . .666.0 Britvic . . . . . . . . . . . . .800.0 Coca-Cola HBC AG . .2360.0 Diageo . . . . . . . . . . . .2618.0
498.9 582.0 1780.0 2131.5
CHEMICALS Croda Internation . . .4433.0 11.0 4512.0 3310.0 Elementis . . . . . . . . . . .290.4 -4.6 317.1 259.1 Johnson Matthey . . . .3222.0 -78.0 3503.0 2727.0 Sirius Minerals . . . . . . . .22.9 -0.2 35.0 17.3 Synthomer . . . . . . . . .490.0 0.2 509.5 372.0
FTSE ALL SHARE
BATS UK 100
Price Chg High Low Victrex plc . . . . . . . . .2570.0-100.0 2730.0 1832.0
CONSTRUCTION & MATERIALS Balfour Beatty . . . . . . . .291.1 -3.9 CRH . . . . . . . . . . . . . . .2661.0 -19.0 Galliford Try . . . . . . . .1180.0 1.0 Ibstock . . . . . . . . . . . . .262.8 -2.6 Kier Group . . . . . . . . .1097.0 -50.0 Marshalls . . . . . . . . . . .425.0 -16.6 Polypipe Group . . . . . . .411.2 -1.8
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 . . . . . . . . . .289.8 12.0 384.6 256.4 SSE . . . . . . . . . . . . . . . .1342.0 9.0 1557.0 1294.0
ELECTRONIC & ELECTRICAL EQ. Halma . . . . . . . . . . . . .1307.0 18.0 Morgan Advanced M . .359.2 -7.0 Renishaw . . . . . . . . . .5565.0 45.0 Spectris . . . . . . . . . . .2638.0 -22.0
1322.0 913.5 366.2 281.9 5565.0 2713.0 2834.0 2229.0
EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . .1380.0 Alliance Trust . . . . . . . .765.0 Bankers Inv Trust . . . .903.0 British Empire Tr . . . . .749.0 Caledonia Investm . .2845.0 City of London In . . . .442.0 Edinburgh Inv Tru . . . .704.0 F&C Global Smalle . . .1405.0 Fidelity China Sp . . . . .255.0 Fidelity European . . . . .231.5 Finsbury Growth & . . .759.0 Foreign and Colon . . .663.0 GCP Infrastructur . . . . .121.6 Genesis Emerging . . .739.0 Greencoat UK Wind . . .122.4 HarbourVest Globa . .1276.0 Herald Investment . . .1190.0 HICL Infrastructu . . . . .155.2 International Pub . . . . .157.2 John Laing Infras . . . . .124.6 JPMorgan American . .413.0 JPMorgan Emerging . .911.0 JPMorgan Indian I . . . .774.0 Jupiter European . . . .791.0 Mercantile Invest . . . .2195.0 Monks Inv Trust . . . . . .805.0 Murray Internatio . . . .1274.0 NB Global Floatin . . . . .94.5 Perpetual Income . . .382.5 Pershing Square H . .1026.0 Personal Assets T . .40950.0 Polar Capital Tec . . . . .1170.0 RIT Capital Partn . . . .1984.0 Riverstone Energy . . .1318.0 Scottish Inv Trus . . . . .879.0 Scottish Mortgage . . . .463.6 Sequoia Economic . . . .112.0 Syncona Limited N . . . .215.0 Temple Bar Inv Tr . . . .1324.0 Templeton Emergin . . .811.0 The Renewables In . . .109.0 TR Property Inv T . . . . .399.5 Vietnam Enterpris . . . .463.0 Witan Inv Trust . . . . . .1102.0 Woodford Patient . . . .83.9 Worldwide Healthc .2590.0
-6.0 1389.0 1106.0 -3.0 770.0 645.0 -3.0 906.0 701.0 -3.0 753.0 647.0 0.0 3008.0 2625.0 -0.5 444.6 393.4 -2.0 779.5 686.0 -10.0 1415.0 1222.0 -1.5 257.0 176.8 -0.5 232.0 185.0 0.0 777.0 647.0 -2.0 668.0 542.0 -0.6 133.0 118.8 -6.0 745.0 605.0 0.0 126.5 116.7 2.0 1306.0 1188.0 -5.0 1200.0 881.5 -1.3 174.6 153.3 0.0 166.6 150.3 -0.2 140.2 118.3 -2.5 415.5 359.6 -1.0 917.0 695.0 3.0 785.0 609.0 -3.0 796.0 553.5 -15.0 2210.0 1719.0 -6.0 816.0 588.5 -2.0 1307.0 1135.0 0.4 100.2 93.0 -2.0 408.5 356.0 4.0 1250.0 959.0 50.0 41580.039270.0 -12.0 1197.0 859.5 -12.0 2005.0 1815.0 2.0 1370.0 1204.0 -2.0 891.0 763.0 -5.0 470.2 336.0 1.5 114.5 106.1 1.5 215.5 128.0 -8.0 1335.0 1210.0 2.0 813.0 610.0 0.2 112.2 102.8 1.0 405.0 286.0 -3.0 477.0 303.0 -6.0 1110.8 903.5 -0.1 106.0 82.0 -10.0 2679.0 2114.0
BATS UK 250
Price Chg High Low Arrow Global Grou . . . .431.0 0.5 470.5 292.5 Ashmore Group . . . . . .419.2 -2.0 431.6 290.4 Brewin Dolphin Ho . . .379.8 0.0 393.0 301.7 Charles Taylor . . . . . . . .281.0 7.0 290.0 205.4 Charter Court Fin . . . . .292.0 3.0 295.0 228.8 City of London In . . . . .439.0 9.0 440.0 350.0 CMC Markets . . . . . . . . .154.8 0.0 175.5 109.0 Coats Group . . . . . . . . . .81.4 -1.4 90.0 52.0 Hargreaves Lansdo . .1840.0 -4.0 1858.0 1266.0 IG Group Holdings . . . .756.5 -0.5 792.5 491.9 Intermediate Capi . . .1134.0 -11.0 1178.0 684.0 International Per . . . .208.4 -4.8 222.0 157.5 Investec . . . . . . . . . . . .539.0 -0.8 627.5 461.4 IP Group . . . . . . . . . . . .135.0 -0.4 194.7 112.5 John Laing Group . . . .290.4 -5.0 317.8 252.0 Jupiter Fund Mana . . .587.0 -5.0 631.4 393.4 Liontrust Asset M . . . .556.0 -4.0 566.0 380.9 LMS Capital . . . . . . . . . . .47.7 0.0 57.1 41.3 London Finance & . . . .44.5 0.0 46.0 42.0 London Stock Exch . .3689.0 -10.0 3983.0 2946.0 Man Group . . . . . . . . . .213.0 -1.0 214.5 124.3 OneSavings Bank . . . .399.2 -5.8 470.3 317.3 Paragon Banking G . . .486.4 -14.1 512.0 400.0 Provident Financi . . . .699.0-105.0 3265.0 589.5 Rathbone Brothers . .2664.0 -2.0 2800.0 2031.0 Real Estate Credi . . . . .168.5 0.5 175.0 159.9 Record . . . . . . . . . . . . . .42.8 -1.3 52.5 36.3 S&U . . . . . . . . . . . . . . .2340.0 -10.0 2420.0 1883.5 Sanne Group . . . . . . . .745.0 -22.0 830.0 592.5 Schroders . . . . . . . . . .3675.0 5.0 3700.0 2901.0 TP ICAP . . . . . . . . . . . . .535.2 -3.0 544.5 437.0 VPC Specialty Len . . . . .81.2 1.8 83.0 74.3 Walker Crips Grou . . . . .41.5 0.0 48.5 38.5 Xaﬁnity . . . . . . . . . . . . .188.5 2.5 194.0 152.3
Price Chg High Low Smurﬁt Kappa Gro . .2580.0 10.0 2600.0 1962.0 Vesuvius . . . . . . . . . . . .617.0 -2.5 619.5 425.5
FIXED LINE TELECOMS
UBM . . . . . . . . . . . . . . . . . . . . . .880.5 Rolls-Royce Holdin . . . . . . . . .900.0 Drax Group . . . . . . . . . . . . . . . .289.8 Beazley . . . . . . . . . . . . . . . . . . . .527.0 Spire Healthcare G . . . . . . . . . .250.0 Mediclinic Interna . . . . . . . . . . .619.0 Cobham . . . . . . . . . . . . . . . . . . .134.7 Daejan Holdings . . . . . . . . . . .5920.0 NMC Health . . . . . . . . . . . . . . .3152.0 Hiscox Limited (DI . . . . . . . . . .1420.0
BT Group . . . . . . . . . . .269.0 -5.0 387.2 243.8 TalkTalk Telecom . . . . .137.3 -2.8 218.0 131.6 Telecom Plus . . . . . . . .1176.0 -24.0 1321.0 1069.0
FOOD & DRUG RETAILERS Booker Group . . . . . . . .228.7 -0.8 Greggs . . . . . . . . . . . . .1316.0 -20.0 Morrison (Wm) Sup . .228.9 -0.6 Ocado Group . . . . . . . .419.3 -7.2 Sainsbury (J) . . . . . . . .256.8 0.6 SSP Group . . . . . . . . . .643.5 -14.5 Tesco . . . . . . . . . . . . . . .212.0 0.2 UDG Healthcare Pu . . .791.5 -17.0
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 . . . .2857.0 -34.0 Cranswick . . . . . . . . . .3212.0 -8.0 Dairy Crest Group . . . . .581.5 -8.5 Greencore Group . . . . .221.4 0.5 Purecircle Limite . . . . .467.0 -3.5 Tate & Lyle . . . . . . . . . .681.8 -7.4 Unilever . . . . . . . . . . .4020.0 30.0
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 . . . . . . . . . . . . . .1911.5 -25.5 2130.0 1693.0
GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .142.4 -1.8 National Grid . . . . . . . .843.6 2.2 Pennon Group . . . . . . .744.4 -4.2 Severn Trent . . . . . . .2022.0 -23.0 United Utilities . . . . . .774.2 3.0
235.8 137.3 1091.0 838.5 944.0 735.2 2553.0 2010.0 1056.0 763.0
3i Group . . . . . . . . . . . .950.0 1.0 969.5 687.5 3i Infrastructure . . . . . .207.0 -0.5 214.5 187.0 Allied Minds . . . . . . . . .156.4 -1.6 418.0 116.0
RPC Group . . . . . . . . . .790.4 -8.2 1003.3 720.5 Smith (DS) . . . . . . . . . .512.2 -1.0 558.5 418.8 Smiths Group . . . . . . .1685.0 13.5 1692.5 1444.0
GENERAL RETAILERS Auto Trader Group . . . .355.0 -1.8 B&M European Valu . . .417.0 0.6 Brown (N.) Group . . . .276.2 -8.2 Card Factory . . . . . . . .208.6 -5.2 Dignity . . . . . . . . . . . .1934.0 1.0 Dixons Carphone . . . . .196.8 -2.4 Dunelm Group . . . . . . .635.0 -35.0 Halfords Group . . . . . . .351.8 -1.6 Inchcape . . . . . . . . . . . .745.0 -14.5 JD Sports Fashion . . . .394.2 4.3 Just Eat . . . . . . . . . . . .803.0 -3.2 Kingﬁsher . . . . . . . . . .342.4 -2.9 Marks & Spencer G . . . .307.4 -2.8 Next . . . . . . . . . . . . . .5002.0 -38.0 Pets at Home Grou . . .176.8 2.0 Saga . . . . . . . . . . . . . . . .121.3 -1.6 Sports Direct Int . . . . . .373.0 -1.0 Ted Baker . . . . . . . . . .3014.0 12.0 WH Smith . . . . . . . . . .2138.0 -16.0
435.9 319.0 423.6 293.4 357.8 200.6 355.0 206.7 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 3617.0 241.7 154.9 215.3 120.9 419.5 284.0 3118.0 2320.0 2347.0 1480.0
HEALTH CARE EQUIPMETN & S. Assura . . . . . . . . . . . . . . .61.1 -1.6 66.7 51.8 Convatec Group . . . . . .189.1 -2.7 344.0 182.0 Mediclinic Intern . . . . .619.0 18.8 887.0 507.5
Price Rotork . . . . . . . . . . . . .302.6 Spirax-Sarco Engi . . .5760.0 Weir Group . . . . . . . . .2190.0
0.0095 €/$ 1.2169
0.0017 €/£ 0.8812
1.4649 €/¥ 135.49
Chg High Low -1.6 304.9 223.5 -15.0 5920.0 4252.0 -15.0 2305.0 1727.0
INDUSTRIAL METALS & MINING INDUSTRIAL TRANSPORTATION -0.6 35.0 2.0 2.4 -5.5
365.0 279.5 3170.0 2206.0 1761.0 1437.0 467.6 369.9 303.2 172.8
-5.0 19.5 3.1 0.6 2.8 22.0 0.0 4.0 3.0
2178.0 534.5 411.3 303.0 325.0 1470.0 1448.0 759.5 666.5
NON LIFE INSURANCE Admiral Group . . . . . .1876.5 Beazley . . . . . . . . . . . . .527.0 Direct Line Insur . . . . . .372.2 esure Group . . . . . . . . .245.6 Hastings Group Ho . . .306.6 Hiscox Limited (D . . .1420.0 Jardine Lloyd Tho . . .1422.0 Lancashire Holdin . . . .661.0 RSA Insurance Gro . . . .623.8
1732.0 391.7 333.8 200.4 220.4 997.5 997.5 611.0 562.5
% 12.0 5.4 4.3 3.8 3.5 3.1 2.5 2.1 1.6 1.6
Aviva . . . . . . . . . . . . . . .527.0 0.2 544.0 470.6
Fallers % Provident Financia . . . . . . . . . .699.0 -13.1 Burberry Group . . . . . . . . . . . .1619.0 -9.3 Cineworld Group . . . . . . . . . . . .531.0 -5.8 Informa . . . . . . . . . . . . . . . . . . .705.0 -5.7 Cairn Energy . . . . . . . . . . . . . . . .217.4 -5.4 Acacia Mining . . . . . . . . . . . . . . .188.5 -5.3 Dunelm Group . . . . . . . . . . . . .635.0 -5.2 Pearson . . . . . . . . . . . . . . . . . . .685.0 -4.7 Kier Group . . . . . . . . . . . . . . . .1097.0 -4.4 Serco Group . . . . . . . . . . . . . . . . .98.0 -3.9
Price Chg High Low NMC Health . . . . . . . . .3152.0 50.0 3216.0 1583.0 Smith & Nephew . . . .1247.0 -7.5 1431.0 1170.0 Spire Healthcare . . . .250.0 8.4 361.0 221.5
HHOLD GDS & HOME CONSTR. Barratt Developme . . .609.8 -8.6 Bellway . . . . . . . . . . . .3521.0 -53.0 Berkeley Group Ho . .4129.0 9.0 Bovis Homes Group . .1136.0 -7.5 Countryside Prope . . . .333.8 -3.8 Crest Nicholson H . . . .520.0 -5.0 McCarthy & Stone . . . . .145.3 -1.2 Persimmon . . . . . . . .2610.0 -11.0 Reckitt Benckiser . . .6800.0 29.0 Redrow . . . . . . . . . . . .640.0 -2.5 Taylor Wimpey . . . . . . .196.7 -1.6
700.0 471.1 3792.0 2457.0 4240.0 2787.0 1213.0 755.0 371.5 223.9 636.5 486.1 196.9 144.9 2890.0 1886.0 8108.0 6355.0 664.5 433.8 211.2 165.1
INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . .996.5 Hill & Smith Hold . . . .1313.0 IMI . . . . . . . . . . . . . . . .1409.0 Melrose Industrie . . . .235.0 RHI Magnesita N.V . .4365.0
-9.5 -14.0 -4.0 0.7 37.0
1013.0 630.0 1475.0 1096.0 1443.0 1070.0 261.2 195.3 4397.0 3249.0
Price Rightmove . . . . . . . . .4561.0 Sky . . . . . . . . . . . . . . .1005.0 STV Group . . . . . . . . . .320.0 Tarsus Group . . . . . . . .323.5 Trinity Mirror . . . . . . . . .76.6 UBM . . . . . . . . . . . . . . .880.5 WPP . . . . . . . . . . . . . . .1363.5 ZPG Plc . . . . . . . . . . . . .343.6
Chg High Low -12.0 4585.0 3889.0 -3.0 1023.0 900.0 0.0 389.8 312.5 -2.5 334.0 260.5 0.6 121.0 67.0 94.0 914.0 645.0 -17.5 1921.0 1253.0 -8.2 394.0 321.7
MINING Acacia Mining . . . . . . . .188.5 -10.6 Anglo American . . . . .1755.0 -0.2 Antofagasta . . . . . . . .1004.5 -5.0 BHP Billiton . . . . . . . . .1607.0 -13.0 Centamin (DI) . . . . . . .163.0 -1.3 Fresnillo . . . . . . . . . . .1390.0 11.5 Glencore . . . . . . . . . . . .407.0 1.3 Hochschild Mining . . .240.4 -6.8 Kaz Minerals . . . . . . . .924.4 -19.6 Polymetal Interna . . . .879.0 -16.8 Randgold Resource . .7234.0 42.0 Rio Tinto . . . . . . . . . .4004.5 -42.0 Vedanta Resources . . .918.4 -5.8
541.0 157.8 1794.2 959.4 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 . . . . . . . . . . . .511.0 -10.4 850.5 440.9 Vodafone Group . . . . . .227.7 -3.4 238.0 192.5
MAIN CHANGES UK 350 Risers
Price Chg High Low Just Group . . . . . . . . . . .155.2 Legal & General G . . . .276.5 Old Mutual . . . . . . . . . .234.8 Phoenix Group Hol . . .784.0 Prudential . . . . . . . . . .1977.5 St James's Place . . . . .1252.5 Standard Life Abe . . . .434.0
-1.0 1.4 1.1 1.5 11.5 6.5 -2.0
170.4 121.5 277.1 232.8 235.6 188.0 798.5 723.0 1984.7 1532.0 1260.5 1030.0 447.1 345.0
MEDIA 4Imprint Group . . . . .1970.0 -10.0 Ascential . . . . . . . . . . .379.0 -3.8 Bloomsbury Publis . . .188.5 0.5 Centaur Media . . . . . . . .50.8 0.3 Entertainment One . . .319.0 0.4 Euromoney Institu . . .1170.0 -10.0 Gocompare.com Gro . .114.6 -0.4 Haynes Publishing . . .195.0 0.0 Huntsworth . . . . . . . . . .80.2 -1.2 Informa . . . . . . . . . . . .705.0 -42.4 ITE Group . . . . . . . . . . . .174.2 -0.8 ITV . . . . . . . . . . . . . . . . .165.4 -3.8 Johnston Press . . . . . . . .9.5 -0.2 Moneysupermarket. . .342.6 -4.7 Pearson . . . . . . . . . . . .685.0 -33.4 Relx plc . . . . . . . . . . . .1640.0 -14.5
2020.0 391.0 190.0 57.0 329.4 1305.0 117.6 215.0 84.6 761.0 195.3 219.6 27.6 366.5 808.0 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 9.0 302.3 566.5 1398.0
OIL & GAS PRODUCERS BP . . . . . . . . . . . . . . . . .516.3 Cairn Energy . . . . . . . . .217.4 Royal Dutch Shell . . .2523.5 Royal Dutch Shell . . .2568.5 Tullow Oil . . . . . . . . . . .222.9
-2.0 -12.4 -19.0 -21.0 -5.5
534.8 439.8 243.0 167.5 2573.5 1992.5 2609.0 2052.5 265.8 145.6
OIL EQUIPMENT & SERVICES Hunting . . . . . . . . . . . . .631.5 -4.5 636.0 382.6 Petrofac Ltd. . . . . . . . .548.4 -3.6 946.0 349.0 Wood Group (John) . .683.2 1.6 875.0 560.0
PERSONAL GOODS Burberry Group . . . . .1619.0-166.0 1985.0 1566.0 PZ Cussons . . . . . . . . . .332.8 3.8 363.7 299.7 Superdry . . . . . . . . . . .1823.0 -46.0 2076.0 1446.0
PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . .4990.5 -58.5 BTG . . . . . . . . . . . . . . . .750.0 -0.5 Dechra Pharmaceut .1995.0 11.0 Genus . . . . . . . . . . . . .2540.0 22.0 GlaxoSmithKline . . . .1359.2 4.2 Hikma Pharmaceuti .1022.5 15.0 Indivior . . . . . . . . . . . .403.2 -4.4 Shire Plc . . . . . . . . . . .3500.0 -75.0 Vectura Group . . . . . . . .116.9 -2.1
5508.0 4194.0 779.0 534.5 2249.0 1404.0 2573.0 1689.0 1722.0 1275.5 2297.0 949.5 419.5 267.6 5036.0 3484.5 163.0 90.0
REAL ESTATE INVEST. & SERV.
AB INBEV.........................................................94.55 ADIDAS N.........................................................167.15 AIR LIQUIDE...................................................108.90 AIRBUS ............................................................89.74 ALLIANZ.........................................................202.45 ASML HLDG .....................................................161.25 AXA...................................................................26.71 BANCO SANTANDER ..........................................5.89 BASF N.............................................................93.58 BAYER N.........................................................103.60 BBVA..................................................................7.40 BMW................................................................92.35 BNP PARIBAS BR-A.........................................66.38 CRH PLC.............................................................0.00 DAIMLER N.......................................................73.93 DANONE ..........................................................69.12 DEUTSCHE BANK N ...........................................15.10 DEUTSCHE POST N ...........................................40.16 DEUTSCHE TELEKOM N .....................................14.45 E.ON N ...............................................................8.93 ENEL N ...............................................................5.39 ENGIE................................................................14.55 ENI N ................................................................14.86 ESSILOR INTL....................................................111.55 FRESENIUS ......................................................65.50 IBERDROLA.........................................................6.71 INDITEX ...........................................................28.72 ING GROUP.......................................................16.47 INTESA SANPAOLO N.........................................3.06 KON AH DEL BR................................................18.62 L'OREAL..........................................................184.40 LVMH..............................................................242.35 MUENCHENER RUECKV N...............................190.55 NOKIA................................................................4.05 ORANGE ...........................................................14.55 ROY.PHILIPS ....................................................32.80 SAFRAN............................................................90.10 SAINT-GOBAIN.................................................47.89 SANOFI.............................................................72.87 SAP I................................................................90.47 SCHNEIDER E.SE...............................................74.62 SIEMENS N .....................................................122.20 SOCIETE GENERALE .........................................45.29 TELEFONICA.......................................................8.26 TOTAL ...............................................................47.88 UNIBAIL-RODAMCO.......................................205.30 UNILEVER CERT ................................................46.12 VINCI ...............................................................87.42 VIVENDI ...........................................................23.55 VOLKSWAGEN VZ I.........................................180.70
Chg High Low -6.2 609.5 501.5 -1.3 145.6 108.7 -2.0 294.0 194.7 8.9 1208.5 917.0 1.0 188.4 146.3 0.0 40.5 33.9 2.2 587.6 435.7 10.0 1055.0 873.0 -0.3 151.4 137.2 -0.5 813.0 571.5 13.5 1016.0 742.5
SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . .2810.0 -68.0 Computacenter . . . . .1166.0 0.0 FDM Group (Holdin . . .987.0 -1.0 Fidessa Group . . . . . .2495.0 -20.0 Micro Focus Inter . . . .2175.0 -56.0 Playtech . . . . . . . . . . . .803.2 -8.4 Sage Group . . . . . . . . .801.6 -3.8 Softcat . . . . . . . . . . . . . .514.0 -10.0 Sophos Group . . . . . . .642.0 -10.0
SUPPORT SERVICES AA . . . . . . . . . . . . . . . . .165.2 -1.0 Aggreko . . . . . . . . . . . .820.0 -7.2 Ashtead Group . . . . . .2146.0 11.0 Babcock Internati . . . . .751.0 1.4 BCA Marketplace . . . . .198.2 -2.3 Bunzl . . . . . . . . . . . . .2060.0 12.0 Capita . . . . . . . . . . . . . .388.5 -6.5 DCC . . . . . . . . . . . . . . .7595.0 -95.0 Diploma . . . . . . . . . . .1207.0 6.0 Electrocomponents . . .618.2 -3.0 Equiniti Group . . . . . . .274.5 -2.0 Essentra . . . . . . . . . . . .512.5 -10.0 Experian . . . . . . . . . . .1662.0 -2.5 Ferguson . . . . . . . . . .5690.0 -12.0 G4S . . . . . . . . . . . . . . . .288.0 -1.0 Grafton Group Uni . . . .799.0 -1.0 Hays . . . . . . . . . . . . . . .200.8 -0.4 Homeserve . . . . . . . . . .817.0 1.0 Howden Joinery Gr . . .454.0 -2.8 Intertek Group . . . . . .5262.0 32.0 Mitie Group . . . . . . . . . .191.3 -3.7 Pagegroup . . . . . . . . . .534.0 -13.0 Renewi . . . . . . . . . . . . .106.8 -1.4 Rentokil Initial . . . . . . .310.0 0.0 Serco Group . . . . . . . . . .98.0 -4.0 SIG . . . . . . . . . . . . . . . . .165.5 -3.4 Travis Perkins . . . . . . .1511.0 -29.0
324.8 253.1 1989.0 190.2 7005.0 5700.0 151.8 134.5 291.1 234.2 366.2 296.5 499.6 347.2 1006.0 767.0 408.2 311.0 92.5 80.9
272.6 149.5 1064.0 758.0 2168.0 1542.0 969.5 654.5 227.0 176.0 2465.0 2005.0 705.5 382.4 7755.0 6045.0 1247.0 993.5 709.0 471.1 310.9 173.2 581.5 408.7 1705.0 1446.0 5702.0 4460.0 341.1 243.1 841.0 579.5 201.8 147.2 867.0 523.0 475.7 373.0 5425.0 3392.0 297.2 187.3 549.5 417.0 108.2 80.0 335.8 219.1 150.0 90.6 182.0 102.8 1696.0 1408.0
TOBACCO British American . . .5003.0 -30.0 5643.0 4565.0 Imperial Brands . . . . .3072.5 -61.0 3933.5 3027.0
REAL ESTATE INVEST. TRUSTS 9.0 4.2 39.0 0.0
869.5 691.5 3118.0 703.7
668.0 579.0 2451.0 587.5
888 Holdings . . . . . . . .287.0 -5.2 Carnival . . . . . . . . . . .4950.0 -50.0 Cineworld Group . . . . .531.0 -32.5 Compass Group . . . . .1526.0 -3.5 Domino's Pizza Gr . . . .343.3 -3.6 easyJet . . . . . . . . . . . .1515.0 -14.0 FirstGroup . . . . . . . . . . .110.7 -1.7 Go-Ahead Group . . . .1595.0 -12.0 Greene King . . . . . . . . .519.6 -11.2 GVC Holdings . . . . . . . .923.5 -12.0 InterContinental . . . .4815.0 -30.0 International Con . . . .648.0 -10.6 Ladbrokes Coral G . . . . .181.1 -2.4 Marston's . . . . . . . . . . . .114.0 -2.4 Merlin Entertainm . . . .361.2 -4.7 Millennium & Copt . . .560.0 -9.0
Price Chg High Low Mitchells & Butle . . . . .262.2 -7.0 283.1 221.0 National Express . . . . .373.4 -5.8 386.8 334.7 Paddy Power Betfa .8360.0-100.0 8900.0 6665.0 Rank Group . . . . . . . . .239.0 -6.0 248.5 192.9 Stagecoach Group . . . .162.9 -2.2 217.5 154.3 Thomas Cook Group . . .127.1 -2.4 129.5 84.1 TUI AG Reg Shs (D . . .1600.0 1.5 1603.5 1068.0 Wetherspoon (J.D. . . .1278.0 14.0 1283.0 902.0 Whitbread . . . . . . . . .3855.0 -91.0 4307.0 3512.0 William Hill . . . . . . . . .335.8 -2.2 338.1 240.0 Wizz Air Holdings . . .3502.0 -44.0 3700.0 1560.0
AIM 50 2878.0 1863.0 1192.0 715.0 1031.0 582.0 2640.0 2041.0 2871.6 2118.0 1016.0 768.0 811.4 599.0 548.5 295.5 654.4 260.9
TRAVEL & LEISURE
Capital & Countie . . . . .307.9 -1.5 CLS Holdings . . . . . . . .234.0 0.5 Daejan Holdings . . . .5920.0 120.0 F&C Commercial Pr . . .140.8 0.0 Grainger . . . . . . . . . . . .286.0 0.4 NewRiver REIT . . . . . . .299.5 -2.5 Safestore Holding . . . .491.2 3.4 Savills . . . . . . . . . . . . . .989.0 -14.0 St. Modwen Proper . . .405.0 -1.6 UK Commercial Pro . . . .90.0 -0.2 Big Yellow Group . . . . .837.5 British Land Comp . . .685.4 Derwent London . . . .3025.0 Great Portland Es . . . .656.0
Price Hammerson . . . . . . . .509.2 Hansteen Holdings . . .142.2 Intu Properties . . . . . . .234.1 Land Securities G . . . .1005.6 LondonMetric Prop . . .182.0 RDI Reit . . . . . . . . . . . . . .36.1 SEGRO . . . . . . . . . . . . . .578.8 Shaftesbury . . . . . . . .1022.0 Tritax Big Box Re . . . . .150.3 Unite Group . . . . . . . . .798.0 Workspace Group . . . .978.0
EU SHARES Price
300.5 218.0 5380.0 4105.0 740.0 517.7 1760.2 1449.9 394.0 263.4 1536.5 914.5 153.0 101.0 2308.0 1485.0 766.0 508.5 982.0 594.0 4845.0 3668.0 670.0 472.6 188.0 111.3 146.1 101.4 537.0 349.0 625.5 410.2
Abcam . . . . . . . . . . . . .1146.0 -7.0 1155.0 795.0 Advanced Medical . . . .313.0 2.0 350.0 199.5 ASOS . . . . . . . . . . . . . .6760.0 6.0 6894.0 5119.0 Blue Prism Group . . . .1120.0 16.0 1639.0 395.0 Brooks Macdonald . . .1997.5 12.5 2582.0 1810.0 Camellia . . . . . . . . . .12550.0 -50.0 12725.010070.0 CareTech Holding . . . .426.5 5.5 454.8 342.0 CityFibre Infrast . . . . . . .57.0 0.0 70.0 39.5 Clinigen Group . . . . . .1003.0 -31.0 1177.0 758.0 Conviviality . . . . . . . . .366.0 -5.5 426.3 233.5 CVS Group . . . . . . . . . .1031.0 1.0 1490.0 855.0 Dart Group . . . . . . . . . .682.5 -6.5 719.0 483.5 EMIS Group . . . . . . . . .963.0 -4.0 1017.0 833.5 Faroe Petroleum . . . . . .114.4 0.4 115.4 75.5 Fevertree Drinks . . . .2122.0 -1.0 2485.0 1105.0 First Derivatives . . . . .4170.0 10.0 4220.0 2112.0 Frontier Developm . .1400.0 0.0 1510.0 276.5 Gamma Communicati 642.0 -8.0 668.0 463.0 GB Group . . . . . . . . . . .407.0 0.0 455.0 277.5 Gooch & Housego . . .1465.0 25.0 1539.0 1050.0 Hurricane Energy . . . . .39.0 2.0 67.0 24.0 Iomart Group . . . . . . . .379.5 -5.5 410.0 285.5 IQE . . . . . . . . . . . . . . . . .124.7 -0.8 178.8 37.8 James Halstead . . . . .440.0 1.0 542.0 421.3 Johnson Service G . . . .137.6 -0.4 151.0 107.3 Keywords Studios . . .1416.0 -10.0 1661.0 510.0 Learning Technolo . . . . .71.0 1.0 73.0 40.0 M&C Saatchi . . . . . . . . .390.0 8.0 402.0 292.0 M. P. Evans Group . . . .784.0 -2.0 819.8 635.0 Midwich Group . . . . . . .617.5 60.0 650.0 224.0 Mulberry Group . . . . .980.0 -35.0 1149.0 970.0 Next Fifteen Comm . . .430.0 -8.0 455.0 321.5 Nichols . . . . . . . . . . . .1485.0 32.5 1958.0 1420.0 Numis Corporation . . .337.5 0.0 340.0 231.3 Pan African Resou . . . . .13.8 -0.2 18.0 12.5 Patisserie Holdin . . . . .384.0 -2.0 396.5 300.5 Polar Capital Hol . . . . .508.0 -12.0 558.0 329.3 Purplebricks Grou . . . .404.2 -4.0 514.5 155.5 Redde . . . . . . . . . . . . . .171.4 0.4 182.0 144.3 Renew Holdings . . . . .454.0 1.0 485.0 410.0 RWS Holdings . . . . . . .452.5 -12.5 539.0 310.0 Scapa Group . . . . . . . .462.0 1.2 515.5 318.8 Secure Income Rei . . .362.0 0.0 380.0 314.5 Smart Metering Sy . . .808.0 0.0 874.5 479.5 Sound Energy . . . . . . . .55.8 0.8 93.5 39.8 Staffline Group . . . . . .996.0 -1.0 1450.0 960.0 Telford Homes . . . . . . .428.5 -3.0 444.5 316.8 Thorpe (F.W.) . . . . . . . .345.0 -5.0 396.5 286.5 Watkin Jones . . . . . . .206.0 -1.0 249.0 123.5 Young & Co's Brew . . .1347.5 -7.5 1405.0 1300.0 Young & Co's Brew . .1090.0 0.0 1124.0 978.0
http://corporate.webfg.com mailto: email@example.com
-0.27 -1.35 0.50 -0.23 0.40 7.60 -0.03 -0.05 -0.32 -0.92 -0.08 -0.29 -0.63 0.00 -0.42 0.37 -0.13 -0.06 -0.12 -0.12 0.02 -0.11 -0.05 -0.55 0.22 0.01 0.06 -0.03 0.01 0.18 0.35 -0.65 0.40 0.00 -0.06 -0.45 -0.54 -0.06 -0.53 -0.50 -0.18 -0.80 -0.80 -0.06 -0.26 -0.70 0.27 -0.12 -0.25 -3.30
110.10 202.10 111.60 91.90 204.50 163.95 27.04 6.20 97.90 123.90 7.93 93.58 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 28.52 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 ...................................................................248.11 ABBVIE ..........................................................104.36 ACCENTURE-A ................................................160.21 ALPHAB NON VTG RG-C................................1131.98 ALPHABET RG-A............................................1139.10 ALTRIA GROUP.................................................70.15 AMAZON.COM..............................................1295.00 AMERICAN EXPRESS......................................100.76 AMGEN ...........................................................188.01 APPLE .............................................................179.10 AT&T ................................................................36.85 BANK OF AMERICA ...........................................31.18 BERKSHIRE HATH RG-B..................................214.16 BOEING CO......................................................351.01 CATERPILLAR.................................................168.50 CHEVRON .......................................................132.36 CISCO SYSTEMS................................................41.20 CITIGROUP .......................................................77.47 COCA-COLA CO ................................................46.82 COMCAST-A......................................................41.68 DOWDUPONT...................................................75.77 EXXON MOBIL .................................................88.00 FACEBOOK-A ..................................................177.60 GENERAL ELECTRIC...........................................17.35 GOLDMAN SACHS GR.....................................253.65 HOME DEPOT .................................................199.82 HONEYWELL INTL ...........................................158.41 IBM.................................................................168.65 INTEL...............................................................44.39 JOHNSON & JOHNSO.....................................146.98 JPMORGAN CHASE .........................................112.99 MASTERCARD RG-A.......................................164.32 MCDONALD'S..................................................174.98 MERCK.............................................................62.03 MICROSOFT ......................................................90.14 NIKE -B-...........................................................63.81 NVIDIA...........................................................224.72 ORACLE............................................................50.27 PEPSICO...........................................................118.61 PFIZER ..............................................................37.18 PHILIP MRRS INT ...........................................105.79 PROCTER&GAMBLE..........................................91.20 TRAVLR COMP................................................136.86 TWITTER..........................................................24.56 UNITEDHEALTH GRO......................................238.43 UTD TECHNOLOGIES.......................................134.42 VERIZON COMM................................................51.72 VISA RG-A ......................................................121.98 WAL-MART STORES .......................................102.70 WALT DISNEY RG-DIS......................................111.97 WELLS FARGO .................................................63.88
3.37 1.87 2.25 10.22 8.40 1.23 -9.86 0.42 2.47 2.91 0.13 -0.06 3.87 15.85 -0.81 0.35 0.66 0.36 0.29 -0.14 0.82 1.03 -0.79 -0.86 -4.81 3.51 0.52 4.80 1.25 0.12 0.72 2.03 1.30 -0.04 1.79 0.39 4.61 0.68 0.56 0.58 0.92 0.98 1.34 -0.10 5.53 0.45 0.06 1.59 2.01 1.28 1.38
248.53 104.84 160.64 1139.91 1148.88 77.79 1339.94 102.39 191.10 179.39 42.70 31.79 214.50 352.23 173.24 133.88 41.32 78.44 47.48 42.71 0.00 88.21 188.90 31.34 262.14 199.82 159.85 182.79 47.64 148.32 113.43 164.50 175.78 66.80 90.79 65.36 227.51 53.14 119.74 37.37 123.55 94.67 137.95 25.85 238.96 137.73 53.69 122.16 102.94 116.10 64.04
173.55 59.27 112.31 790.52 812.05 60.01 803.00 75.39 150.38 118.22 32.55 22.07 158.61 156.75 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 39.03 101.06 30.90 92.54 84.28 113.76 14.12 156.09 106.85 42.80 80.98 65.28 96.20 49.27
COMMODITIES Gold............................................................1335.65 Silver...............................................................17.21 Brent Crude ...................................................69.15 Krugerrand.................................................1362.15 Palladium....................................................1111.00 Platinum.....................................................991.00 Tin Cash Official......................................19850.00 Lead Cash Official ....................................2495.00 Zinc Cash Official .....................................3308.00
1.80 0.11 -1.11 -2.10 -17.00 -4.00 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...........................................1985.00 Coffee 'C' Futures ........................................123.08 Feed Wheat Futures....................................141.25 Soybeans Futures Continuation Contract968.60
-59.50 -5.00 165.00 0.00 53.00 2.41 3.90 0.50
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.............................-0.441 LIBOR Euro - 12 months ...........................-0.250 LIBOR USD - overnight................................1.439 LIBOR USD - 12 months...............................2.195 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 ......................................2.84 Euro Euribor..............................................-0.379 The vix index................................................11.91 The baltic dry index ................................1221.00 Markit iBoxx EUR ......................................229.19 Markit iBoxx GBP.......................................323.74 Markit iTraxx...............................................69.48
0.00 0.00 0.00 0.01 0.00 0.25 -43.00 0.04 0.31 -0.78
WORLD INDICES Price Chg %chg FTSE 100. . . . . . . . . . . . . . . . . . . . . 7725.43 -30.50 -0.39 FTSE 250 . . . . . . . . . . . . . . . . . . . 20769.36 -107.94 -0.52 FTSE All-Share . . . . . . . . . . . . . . . 4242.35 -17.73 -0.42 FTSE AIM All-Share . . . . . . . . . . . . 1060.75 -2.48 -0.23
Price Chg %chg S&P 500 . . . . . . . . . . . . . . . . . . . . 2802.56 26.14 0.94 Dow Jones I.A. . . . . . . . . . . . . . . . 26115.65 322.79 1.25 Nasdaq Composite. . . . . . . . . . . . 7298.28 74.59 1.03 Xetra DAX . . . . . . . . . . . . . . . . . . . 13183.96 -62.37 -0.47
Evraz . . . . . . . . . . . . . . .373.1 -0.8 382.9 173.2 Ferrexpo . . . . . . . . . . . .310.2 0.3 323.2 125.0 BBA Aviation . . . . . . . .364.4 Clarkson . . . . . . . . . . .3165.0 Fisher (James) & . . . .1596.0 Royal Mail . . . . . . . . . . .467.2 Stobart Group Ltd . . . .266.5
Price Chg %chg CAC 40. . . . . . . . . . . . . . . . . . . . . . 5493.99 -19.83 -0.36 Swiss Market Index . . . . . . . . . . . 9440.01 -24.04 -0.25 ISEQ Overall Index. . . . . . . . . . . . . 7051.74 -15.21 -0.22 FTSEuroﬁrst 300 . . . . . . . . . . . . . . 1563.40 -1.11 -0.07
Price Chg %chg Hang Seng . . . . . . . . . . . . . . . . . . 31983.41 78.66 0.25 Shanghai Composite . . . . . . . . . . 3444.67 8.08 0.24 Straits Times . . . . . . . . . . . . . . . . . 3541.91 -8.30 -0.23 ASX All Ordinaries. . . . . . . . . . . . . 6134.30 -53.40 -0.86
THURSDAY 18 JANUARY 2018
TECHNOLOGY WATCHES HUAWEI WATCH 2 SPORT £329, HUAWEI.COM Half smart watch, half sports watch, the Huawei Watch 2 Sport treads the fine line between utility and fashion. It’s finely tuned to the fitness market, with GPS tracking and body metric sensors out the wazoo, but it also performs wonderfully as a wristmounted extension of your Android device.
FITBIT CHARGE 2 £90, FITBIT.COM The latest iteration of Fitbit’s most popular fitness tracker introduces a larger OLED screen, a more comfortable design, GPS tracking via your phone, and a range of premium straps. The clever bracelet can now track multiple sports, and for the lethargic among us, it can be worn in bed to track how well you’ve been sleeping.
TRAINERS STRIDALYZER SMART INSOLES $100, RETISENSE.COM Slip a pair of these intelligent insoles into your clogs and the accompanying app will relay all manner of vital health data, such as pressure readings, stress maps and impact measurements. You can even have the app send an audio warning if your insoles reckon you’re about to twist a knee.
GARMIN FORERUNNER 935 £469, GARMIN.COM
FUTURECRAFT 4D £TBC, ADIDAS.CO.UK/FUTURECRAFT
Widely regarded as the GPS sports watch of professionals, the Garmin Forerunner 935 tracks almost every metric you can think of, both inside your body and out. It works while running, but can also track swims, hikes and bike rides too.
The mid-sole of these futuristic, 3D-printed Adidas trainers is made using what the company calls “Continuous Liquid Interface Production”, which helps form a shoe that’s both custom-designed for an individual’s gait as well as super sciencefiction looking. They’re due to hit the market some time later this year.
With just three months until the London Marathon, now’s the time to really up your game: here’s the cutting edge running tech that will help you pick up the pace
APPLE WATCH 3 £329, APPLE.COM/UK The latest Apple Watch is more geared towards fitness than ever before. While the second iteration added GPS, the third can untether itself from the iPhone entirely thanks to its 4G data capabilities. The Watch lacks the variety of sensors found in dedicated fitness bands, but if you just want to beam music from your wrist as you run, you can’t go too far wrong here.
EARPHONES AFTERSHOKZ TREKZ AIR £149, AFTERSHOKZ.CO.UK They’ve got a reprehensible name, but the Aftershokz series of earphones are beloved by tech-savvy runners. They’re technically not even earphones, instead using bone-conduction to transmit audio through your skull and into your mind. The result is maximum comfort and (as nothing is actually blocking your ears) the best situational awareness you can get, albeit at the expense of a little sound quality.
ALTRA TORIN IQ TRAINERS $220, ALTRARUNNING.COM
GADGETS FLIPBELT £25, FLIPBELT.CO.UK
MILESTONE POD RUN TRACKER $29, MILESTONEPOD.COM
MILLION MILE LIGHT £12, BATTERYFREE.CO.UK
If you’re the kind of runner who can’t bear to leave any personal belongings at home, the Flipbelt is an innovative solution for the over-encumbered. It’s a big lycra pocket that wraps around your waist, with compartments for your phone, your cash, and a clip for your keys. No more jangling your way around the park.
Smaller than a box of tictacs but bigger than a postage stamp, the MilestonePod attaches to your laces to turn any pair of running shoes into a pair of smart running shoes. It gathers up all kinds of data, from mileage to more specific information about your running style, and beams it to the companion app for later perusal. The battery lasts six to eight months too.
If we learned anything from the Matrix, it’s that we humans are basically hot, wet batteries. So why not power stuff using our personal energy supply? With the Million Mile Light you can. It uses jiggle-power to illuminate a pair of LEDs, improving your visibility on the roads, especially in these dusky winter months.
The Altra Torin IQ trainers stand out from other smart trainers, in that they’ve taken an existing popular shoe and enhanced it with an array of sensors that track pace, cadence, distance and running style. The sensor measures impact and landing zones to help you analyse and overcome problems with your form.
JAYBIRD X3 £109, JAYBIRDSPORT.COM
JABRA ELITE SPORT £229, JABRA.CO.UK
VI, THE AI PERSONAL TRAINER $249, GETVI.COM
Look at the shape of that earbud. That’s an earbud that’s going right inside your ear canal and not coming out until you’re back home after your run and gulping down pint after pint of cold water over the sink. The Jaybird X3 boasts top-end sound quality in a light form factor, with excellent build quality and a battery life ensuring you don’t run out of music mid-sprint. Perhaps not an earphone you’d ever want to share with a friend however. Think of the wax.
These are a truly wireless pair of earbuds with a beefy 4.5 hour battery life. They’re superior to the Apple AirPods and the Google Pixel Buds in that they’re sweat and water-proof, form a tight seal inside the ear for decent bass and come with a built-in heart rate monitor. Jabra’s roots are in bluetooth headsets, so you can bet your mother’s Sunday dress they can be used to make important phone calls too.
An artificially intelligent personal trainer built into a pair of earphones, Vi provides helpful advice tailored to your own routine, from encouragment to perfecting your form. She might tell you to slow your pace to avoid over-exertion too early in a session, or push you harder when you’re coming up to a personal best. The more you run, the more she learns and the better trainer she eventually becomes.
THURSDAY 18 JANUARY 2018
Founding a business doesn’t make you a genius
REALLY SMART Google Arts & Culture Free
Pitching your client as an enigmatic savant makes you sound ‘like, really smart’ Elena Shalneva
EMEMBER that tweet from the President of the United States? The one where he says he is a “very stable genius” and “like, really smart”? Measured commentators responded that such behaviour was, like, really not normal; whereas more outspoken bloggers hastened to volunteer some very colourful assessments of the
President’s mental state. Actually, Trump’s delusional bragging is not that unusual. Most days I get a press release promoting some genius or other. I am urged to profile them, or interview them, or – in the very least – take a good note of their views. Enter Susie. Susie left a job in the City to become an “entrepreneur”. A PR exec wants me to meet her. Does Susie’s business have any clients? No, but I am missing the point: Susie is amazing. So what should I talk to her about? Oh, many things: UK economy, globalisation, China, Brexit. What makes her an expert on these subjects? She used to work in the City. As a chief economist? No, a first-year analyst. But again, this is hardly the
A person with an average CV does not become more interesting just because she can afford a PR agency
point: what I have to understand is that Susie has great ideas. She is inspiring. A true talent. Okay, last chance: is there anything else that Susie can credibly talk about? Gender issues. Has she studied the subject? Read the definitive works on both sides of the debate? Interviewed the key players? No, but she is a woman. And that makes her an authority? Yes, and you still don’t get it: she is a visionary, a disruptor, an innovator. A genius! I am about to hang up. Wait, there is more, the PR urges me. Susie speaks three languages. You don’t say! Where did you find someone like that in London? Okay, fine, here’s the punchline: Susie collects art. Oils, prints, aquarelles. There are two dozen pieces in her flat. Would I care for
On the offchance that you think you are a genius, or perhaps look like a genius, Google, as ever, can help to validate your vanity. Its new Arts & Culture app can analyse your face, and match it with well-known works of art. Who knows who you might look like, and by extension, essentially be. Somewhere between Munch’s The Scream and Goya’s Saturn Devouring his Son? one assumes.
some high-res photos? City A.M. readers would find them delightful. And anyway, when would be a good time to interview Susie? Dear PR exec, are you out of your mind? I meet hundreds of people like Susie every day: on the tube, in the gym, just walking the streets of London. Do you seriously expect me to be in awe of someone who speaks three languages? Most of my friends work in five and interchange seamlessly between them. As far as collecting goes, I do that as well – seashells, as a matter of fact. I have them in all shapes and colours – but so far my editor (very unreasonably, in my view) refuses to let me write a column about this exciting hobby. And guess what: herds of people leave the City every day to become “entrepreneurs”. Some of them succeed, some don’t. When Susie’s business actually disrupts something – or, in the very least, has clients and revenues – get in touch. If your job is to raise someone’s profile, please look up the definition of “genius”. JM Coetzee is a genius: read his novels, and you’ll know you are in the presence of greatness. Incidentally, Coetzee won the Nobel Prize for Literature: this is what geniuses do. Your client, on the other hand, is someone who has a few skills. So please don’t send me cliched superlatives about her life and times, or stretch her feeble achievements. A person with an average CV does not become more interesting just because she can afford a PR agency. £ Elena Shalneva is a communications consultant and non-executive director.
PUNTER THURSDAY 18 JANUARY 2018
RedZone Sports’ Steve Baumohl with his best bets for this week’s NFL action
Fournette key to keeping Brady quiet JACKSONVILLE JAGUARS AT NEW ENGLAND PATRIOTS SUNDAY 8.05PM
Once Jack Conklin went down early on for the Titans last week, New England smelt blood and just continuously pressured the right side of their offensive line, gaining eight sacks as a result. On the other side, Tennessee forgot how to tackle running backs. Nobody on their defense rallied to the ball and the Patriots’ receivers picked up a ridiculous 178 yards. This week will be a completely different story. Whilst the Titans could not stop the New England offense, Jacksonville are built to stop Tom Brady. Yes, they gave up yards to the
MINNESOTA VIKINGS AT PHILADELPHIA EAGLES SUNDAY 11.40PM
Steelers, but Ben Roethlisberger had no choice but to throw as they were down throughout the game and playing catch-up. The key to stopping the Patriots is to generate as much interior pressure as possible and play man coverage on the receivers. The Jaguars front four is virtually unblockable and should be able to disrupt Brady and give him minimal time to throw. The deeper he drops, the more likely he is to make mistakes, leading him to either getting sacked or struggle to find open windows to throw into. Jacksonville have the linebackers to matchup on the pass-catching running backs, and I think they should put superstar cornerback Jalen Ramsey on
These are two very similar teams. Both have back-up quarterbacks starting, a mediocre running game, questionable offensive lines and an outstanding defense. One could argue Minnesota’s defense is the stronger, as they have a true shutdown corner in Xavier Rhodes, but Philadelphia’s home advantage could prove to be the difference maker. Not only is this Doug Pederson’s and Mike Zimmer’s’ first championship game, it’s also Nick Foles’ and Case Keenum’s too. This is likely to be a defensive battle and I can see the play calling being very conservative, as neither coach will want to put their quarterback in a situation where mistakes can happen. A lost fumble or interception could easily decide who wins this game and I feel scoring will be hard to come by. Both defenses are excellent at generating pressure andhurrying the quarterback, and with both offensive lines struggling lately (due to injuries), I’m expecting a huge volume of pressure from both defensive fronts, which will inevitably pose the question, which quarterback makes a mistake first?
Jacksonville’s Leonard Fournette (centre) run game can keep Tom Brady sidelined Rob Gronkowski. If Gronkowski is taken out of the game, Brady will struggle even further. Ramsey has allowed just over 50 per cent of passes thrown his way to be caught this year. On the other side of the ball, we’ll need another huge game from Leonard Fournette if Jacksonville are going to pull off an upset. The good news is that the New England run defense is poor, which could mean Fournette can keep Brady on the sidelines. But, more importantly, it’ll come
down to Blake Bortles making those clutch throws, as he did against Buffalo and Pittsburgh. The Jaguars gave up zero sacks to Pittsburgh’s stellar pass rush last week, so they should have no problem in giving Bortles all the time he wants. Jacksonville don’t need him to be a hero, just competent enough to make crucial throws and let the run game dictate. He might well fold in such an intimidating environment but there is a chance for the Jaguars to shock the world if they play mistake-free football.
POINTERS Jacksonville +9 v New England Minnesota v Philadelphia Under 38.5 points
CHAMPIONSHIP SUNDAY AFC Championship
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THURSDAY 18 JANUARY 2018
Stokes has been sorely missed CRICKET COMMENT
was ditched from England’s whiteball side during the Champions Trophy after a barren spell of just 51 runs in eight one-day innings. I remember being at a dinner with him and he was saying how his confidence had dropped and he had stopped enjoying the game for a while, before re-finding his love towards the end of the season.
HEN the news of Ben Stokes being cleared to return to international duty flashed up on my phone yesterday morning, my reaction was one from a cricketing perspective and what great news it is for England. Stokes was sorely missed during the Ashes and hopefully he will be ready to play when called upon for the second half of next month’s triangular Twenty20 series and then one-day and Test showdowns with New Zealand. Whatever the rights or wrongs of the England and Wales Cricket Board’s handling of the situation, it will be fantastic for Test captain Joe Root and limited-overs counterpart Eoin Morgan to have the 26-year-old at their disposal again. All-rounder Stokes will get his opportunity to contest the charge of affray, which he was served on Monday, in court in due course, but for now he has to ensure that going forward his off-field behaviour is impeccable. It won’t be easy when he returns to
NATURE OF THE BEAST
All-rounder Ben Stokes is set to make his international return next month the glare of the international spotlight – people will judge and try to wind him up – but he must take the mature route and mirror what he does on the field. Until the incident in Bristol, he was going from strength to strength as a cricketer and provided so much balance to both England’s red and whiteball teams when in the side. Hopefully he can proceed in the right
direction. The irony of Stokes’s suspension from playing for England is that, had he been available, opener Jason Roy might not have even played in the opening one-day clash of the series against Australia in Melbourne on Sunday where he blasted a recordbreaking 180. Roy, a former Surrey team-mate of mine, had a tough time last year and
The expectation on players like Roy is huge given the standards of limitedovers batting around the world. The top of the order is a great place to bat but also a tough one given the pressure on openers to get their sides off to an explosive start. It’s the nature of the beast that players of Roy’s ilk will get a run of low scores from time to time, but to notch the highest ever score by an England player in a one-day international, at the MCG to boot, will mean his confidence is sky high. I have written about Roy’s credentials before, and looking at the cricket England played in the Ashes, they are crying out for someone like him or Alex Hales; a player who can take a game away from the opposition. England threw Dawid Malan into the Test team on the back of one-day exposure and he racked up some decent scores in the Ashes, but, for me, Roy needs to prove himself a little more in red-ball county cricket.
WALCOTT COMPLETES £20M MOVE TO EVERTON
£ FOOTBALL:Arsenal misfit Theo Walcott insisted it was time to leave the Gunners after completing a £20m move to Everton yesterday. The transfer brings Walcott’s 12-year stay at Arsenal, where he scored 108 goals in 397 appearances, to an end and the 28-year-old becomes Sam Allardyce’s second signing of the January transfer window after striker Cenk Tosun from Besiktas. Walcott said: “It felt like it was time for me to move on from Arsenal. It was sad but exciting at the same time and I want to reignite my career and push Everton to win things as they have done before.”
BASTAREAUD BANNED FOR FRANCE’S IRELAND CLASH
£ RUGBY UNION:Centre Mathieu Bastareaud will miss France’s opening clash of the Six Nations against Ireland after being handed a threeweek ban for making a homophobic remark. The 29-year-old admitted verbally abusing flanker Sebastian Negri during Toulon’s European Champions Cup showdown with Benetton on Sunday. France start their campaign against Ireland on 3 February.
ZIDANE: I CANNOT SEE RONALDO LEAVING REAL
£ FOOTBALL:Real Madrid boss Zinedine Zidane insists he cannot envisage Cristiano Ronaldo playing anywhere else. Ronaldo, who has scored only four La Liga goals this season, has been linked with a move away from the Santiago Bernabeu. Zidane said: “I do not see a Madrid without Cristiano.”
THURSDAY 18 JANUARY 2018
TREMLETT ON STOKES However it’s been handled, his return is good news for England PAGE 23
Stokes set to return in New Zealand tour FRANK DALLERES
@frankdalleres ENGLAND chiefs have lifted their ban on Test vice-captain Ben Stokes representing the national team, saying it would not be “fair, reasonable or proportionate” to continue with his suspension. Stokes was charged with affray on Monday in relation to an alleged incident in Bristol in September and is set to appear before magistrates, along with two other men, on an as-yet unspecified date. The all-rounder has not played for England since his initial arrest four months ago, missing a 4-0 Ashes series defeat, but is due to rejoin the set-up next month for the tour of New Zealand. The England and Wales Cricket Board (ECB) said: “Following a full board discussion, in which all considerations were taken into account, the ECB board has agreed that Ben Stokes should now be considered for England selection. “Given the Crown Prosecution Service decision to charge him and two others with affray, confirmation of his intention to contest the charge and the potential length of time to trial, the board agreed that it would not be fair, reasonable or proportionate for Ben Stokes to remain unavailable for a further indeterminate period.” Stokes, 26, could play for England again as soon as 13 February, when they begin the tour of New Zealand
Chelsea down to nine but survive FA Cup fright FA CUP
CHELSEA NORWICH CITY (AET. Chelsea win 5-3 on penalties) ROSS MCLEAN
@rossmcleanRMAC CHELSEA breathed a huge sigh of collective relief after keeping alive their FA Cup campaign by squeezing past Championship outfit Norwich on penalties on a controversial evening. Substitute Eden Hazard converted the decisive spot-kick after Willian, David Luiz, Cesar Azpilicueta and N’Golo Kante had also scored their penalties and back-up goalkeeper Willy Caballero had saved Norwich striker Nelson Oliveira’s effort. The Blues will now host Newcastle in round four but were far from at their best as Canaries wing-back Jamal Lewis sent the third-round replay into extra time with a last-gasp leveller following Michy Batshuayi’s opener. Although Pedro and Alvaro Morata were both sent off, the real talking point came moments into extra-time when Willian was booked for diving in the Norwich penalty area despite appearing to be tripped by defender Timm Klose. Video official Mike Jones did not consider there to have been a clear and obvious error so the decision was not reviewed at length. Chelsea, who had failed to score in their three previous matches, broke the deadlock on 55 minutes as goal-shy Batshuayi side-footed Kenedy’s left-wing cross into the top corner. Norwich, having twice struck the woodwork, levelled with seconds remaining as Lewis guided a flicked header from Klose’s inswinging cross beyond a static Caballero. Pedro was sent off in the second period of extra time after being shown a second yellow card for a foul on Wes Hoolahan – his first was for diving – while Morata followed him moments later. Morata was booked for simulation and then dissent, before penalties decided the contest.
with the first of two Twenty20 matches. That is followed by five oneday internationals and a two-match Test series that concludes in the first week of April. “The ECB fully respects the legal process and the player’s intention to defend himself against the charge,” the governing body added. “England selectors, management and players have been informed and Ben Stokes is expected to join the squad in New Zealand for February’s T20 matches.” Stokes travelled to his native New Zealand in Stokes has been banned since September November to play domestic cricket for Canterbury on a short-term deal. He played three one-day matches and three T20s before returning to England at the end of the year. Prior to that stint he was also given the ECB’s approval to play in this year’s Indian Premier League, which starts in April. He responded to news of his affray charge on Monday by saying that he welcomed the chance to clear his name. England are currently in Australia, where they lead the hosts 1-0 after the opening match of a five-game one-day series. The second match is on Brisbane on Friday. Trevor Bayliss’s team then play Australia in two T20 fixtures before heading to New Zealand.
Hazard netted Chelsea’s decisive penalty
Jones agrees to remain England head Brit Edmund advances in coach until 2021 to groom successor Australia as draw opens up FRANK DALLERES @frankdalleres ENGLAND head coach Eddie Jones has given the team a major boost ahead of the Six Nations by extending his contract until 2021. The Australian has led England out of the doldrums and established them as the closest rivals to New Zealand since taking charge in 2015. He had been due to depart after next year’s World Cup in Japan. “Coaching England is a dream job for me, and I was delighted to be asked to stay on after Rugby World Cup 2019,” said Jones. “I never take my role as England head coach for granted and did not presume I would be asked to stay on, but, once
the conversations started very recently, it was not a difficult decision to make.” Jones, who turns 58 this month, has agreed that the final year of his contract will be spent working alongside his eventual successor in a move designed to ensure a smooth handover. “We now have a robust succession planning process in place which will avoid the Jones’s contract was due to expire after the 2019 World Cup
historically disruptive pattern of resetting the coaching team and performance system every four years,” said Rugby Football Union chief executive Steve Brown. “Eddie will be a big part of this process, and wants to ensure a smooth handover to his successor.” Jones, who names his Six Nations squad today, will be without flanker James Haskell for the first two games after he received a four-week ban yesterday for a dangerous tackle when playing for Wasps against Harlequins on Saturday. England begin their title defence against Italy in Rome on 4 February.
FRANK DALLERES @frankdalleres BRITAIN’S Kyle Edmund vowed to reach for the sunscreen after continuing his encouraging start to the Australian Open with a second-round win over Uzbekistan’s Denis Istomin yesterday. Edmund beat Istomin, who eliminated six-time champion Novak Djokovic last year in Melbourne, 6-2, 6-2, 6-4 and is now the highest ranked player in his part of the draw until the quarter-finals. The fair-skinned world No49 suffered sunburn during his first-round match on Monday and, with temperatures
soaring into the 40s later this week, he is ready to heed parental advice. “It’s my neck that gets it worst,” the 23-year-old said. “You’re in the sun quite a bit. I know I have to because of my pale skin. My mum gives me a lecture if I don’t.” Edmund, the only Briton in the men’s draw due to Andy Murray’s absence, faces Georgian Nikoloz Basilashvili next on Friday. Second seed Carline Wozniacki survived a match point on her way to beating Jana Fett, while 15year-old Ukrainian Marta Kostyuk became the youngest woman to reach the third round of a grand slam event for 20 years by beating Olivia Rogowska in straight sets.
City A.M. (2018.01.18)