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CHARLIE MULLINS THE PLUMBING KING WITH HIS EYES ON CITY HALL P22 MONDAY 22 JANUARY 2018

ISSUE 3,045

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BOSSES URGE CAUTION OVER PENSION PLAN

LYNSEY BARBER AND HELEN CAHILL @lynseybarber @HelCahill THERESA May has been warned not to make knee-jerk reforms to executive pay following the collapse of former construction giant Carillion. The Prime Minister has vowed to introduce “tough new rules” on pensions after the contractor collapsed leaving a multi-million pound deficit. She also said top bosses could face fines if they fail to protect workers’ pensions. However, the Institute of Directors (IoD) said “significant policy decisions should never be made in the heat of the moment”. “If the Prime Minister is serious about these proposals, there needs to be extensive consultation, with involvement from industry, to ensure we strike a balance that safeguards all stakeholders including current employees, pensioners and shareholders,” said Roger Barker, head of corporate governance at the IoD. “As ever with these proposals, the devil will be in the detail – but we must ensure there are no unintended

consequences that might impact the health of currently successful companies.” Royal London’s Steve Webb, a former pensions minister under David Cameron, said the government was right to be concerned about executives putting their pay before pensions. However, he warned that policymakers will struggle to find a “silver bullet” solution. “Every company is different, and a dividend payout which looks excessive at one firm may be quite sustainable at another,” he said. “Despite all the concern about the BHS case, nothing has so far changed, and we are probably years away from new legislation coming into force”. The government May has proposed ‘tough new rules’

SOFTLY DOES IT KEEPING EU-CITY TIES STRONG AFTER BREXIT P8

is expected to publish a white paper in March setting out its pensions proposals. May is also considering whether to give regulators more power over takeovers that could put pension schemes at risk. Regulators may be given the ability to request more information from companies about their pension schemes. “Too often, we’ve seen top executives reaping big bonuses for recklessly putting short-term profit ahead of long-term success,” May said, writing for the Observer. “Our best businesses know that is not a responsible way to run a company and those who do so will be forced to explain themselves.” She also defended publicprivate partnerships, which have come in for criticism after Carillon went into liquidation under the weight of billions of pounds of debt.

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GERMAN BREAKTHROUGH SDP agrees to talks with Merkel’s CDU

LUCY WHITE @LucyGJWhite GERMANY came one step closer to having a stable government last night, as the country’s Social Democrats (SDP) voted to hold coalition talks with Angela Merkel’s conservative Christian Democratic Union (CDU). In a tighter result than expected, SDP delegates voted 362 to 279 to break months of political deadlock. A so-called “grand coalition” between the two parties would likely hand Merkel a fourth term in office as Germany’s chancellor.

“The coalition talks are going to be just as hard as the exploratory talks,” said SDP leader Martin Schulz. “We will talk to conservatives in the coming days and agree on a time frame. Then I hope that we will start negotiations soon.” Merkel said that she welcomed the result, though there were “still many questions to clear up in detail and that will require intensive talks”. The two parties had agreed a blueprint deal earlier this month. The SDP’s Andrea Nahles told her party they would “negotiate until the other side squeals”.

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BRICK BY BRICK The iconic Denmark-born Lego brick is set to celebrate its 60th birthday with new special edition products

THE CITY VIEW

Europe will benefit from a City Brexit deal

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RENCH President Emmanuel Macron made quite an impression during his brief visit to the UK last week. Not since the visit of President Obama in 2011 has the British media been quite so excited about catching a word from a visiting politician. Angela Merkel may be a step closer to forming a government (Berlin watchers think one could be in place by Easter) but she has vacated the role of supreme European leader and Macron has seized the crown. When it comes to Brexit, senior government figures talk privately of Merkel “no longer being on the pitch” as the wheels and machinery of British diplomacy are turned towards France. In that context, Macron’s musings on Brexit are taken seriously. As well they should be. But this is a sensitive time for the EU, when the unity of the negotiating position will be tested. As negotiations move from transition to trade, national interests will come to the surface – and Michel Barnier, the EU’s appointed chief negotiator, will find himself haggling with the heads of member states as much as he will with the British government. Barnier’s mantra that there is no deal on offer for UK financial services was tested by Macron who said over the weekend that a bespoke trade deal is on the cards, albeit with preconditions and limitations. Such is the risk of an EU leader contradicting Barnier, the French embassy in London rushed out a statement clarifying the President’s remarks and putting him back into line alongside the EU’s official negotiator. Nevertheless, as we explore on page 8 today, a deal including financial services is (in the words of Bank of England deputy governor Sam Woods) eminently achievable. The obstacles are political, but the risks associated with not achieving one are very real – for the EU as much as the UK. While a slow bleed of London’s financial infrastructure and jobs remains a risk (albeit it, an avoidable one) over the long term, the priority for both sides in the current negotiation must be to safeguard sufficient and sufficiently frictionless levels of access. European businesses depend upon it. The City remains, as Mark Carney put it, Europe’s investment banker. It should be prioritised by UK negotiators and valued as a European asset by EU officials.

The UK’s financial services should be seen as a European asset by EU officials

Follow us on Twitter @cityam FINANCIAL TIMES

HEDGE FUND MAKES $1BN BET ON BARCLAYS

Tiger Global, the US hedge fund, has quietly invested more than $1bn (£720m) in Barclays in a bet that backs chief executive Jes Staley’s plans to turn the British bank from being one of the sector’s worst stock market performers to one of its best. The purchase, which has not been disclosed publicly, makes Tiger Global a top 10 investor in Barclays and indicates it believes the bank’s shares are poised for a rebound.

APPETITE FOR JUNK BONDS SPARKS WARNINGS

The rally in financial markets that took US stocks to record heights this year has ricocheted across the $1.3 trillion

WHAT THE OTHER PAPERS SAY THIS MORNING

LEGO fans the world over will be celebrating the original brick’s 60th birthday next Sunday. Structural engineer Roma Agrawal, who worked on The Shard, said the toy “arguably had an influence on my choice of career”. The name Lego comes from the Danish “leg godt”, meaning “play well”, and the group has grown to generate revenues of £1.8bn in the first half of 2017.

UK and Eurozone to carry on tale of two economies JASPER JOLLY @jjpjolly ECONOMISTS expect new government data this week to show UK growth slowed down last year, as the European Central Bank (ECB) adjusts to a Eurozone pulling further away in a tale of two economies. Forecasts collected by the Treasury show independent economists expect GDP growth to hit 1.7 per cent for 2017 overall in figures to be released on Friday, a slight dip compared to the 1.8 per cent expansion seen in 2016. “The key drivers of the slowdown are set to be consumer spending and business investment,” said Christian Jaccarini, an economist at the Centre for Economics and Business Research. “Consumers have faced a real income squeeze, which we expect will persist for much of 2018.”

THE TIMES

DEFENCE CUTS LEAVE BRITAIN VULNERABLE

Britain would struggle to withstand Russian forces on the battlefield and ministers must invest in defence or further erode the country’s ability to combat threats, the head of the army will say today.

UKIP LEADER: PARTY’S OVER IF YOU OUST ME

(£938m) high-yield arena where riskier companies fund themselves, prompting warnings from several large investors who say the junk bond market is being propelled by the S&P 500’s “melt-up”.

The leader of Ukip warned that his party was “probably over” if he was forced to quit in a wake of a scandal over his private life. The party’s National Executive Committee unanimously backed a vote of no confidence in former army officer Henry Bolton last night.

The latest data on the UK labour market will be published on Wednesday, with expectations the unemployment rate will stay near four-decade lows, although annual wage growth is predicted, at 2.5 per cent, to remain well below inflation. Ian Williams, chief economist at Peel Hunt, said the UK’s real wage outlook is “improving”, with possible positive implications for consumer spending. He said: “On the labour market it looks like employment may have peaked but average earnings growth is trending higher and there is some survey evidence pointing to job-changers commanding higher starting salaries.” On the other side of the Channel policymakers are grappling with a very different environment. Investors will listen closely to the ECB’s president, Mario Draghi, at the central bank’s latest monetary policy meet-

THE DAILY TELEGRAPH

OPEC TIES TO OIL ALLIES WILL STRETCH INTO 2019

A historic oil deal between Opec and Russia has been strengthened by a renewed commitment to restrict crude supplies throughout 2018 – and a new pledge to continue collaborating into 2019. Following a meeting in Oman yesterday, Saudi Arabia and Russia said there was “unwavering resolve” to limit oil production and that their alliance could continue beyond this year.

COFFEE CHAINS SEEK FRESH IDEAS AS APPETITES WANE

After years of astonishing growth, a highly caffeinated Britain may be approaching peak coffee. Coffee shop sales slid last year, Allegra figures show.

ing on Thursday, with a press conference to begin at 12:45pm UK time. Markets were surprised earlier this month by a markedly optimistic outlook on the European economy and the promise of a change in communication about its outlook in its last meeting minutes, an acknowledgement that an extraordinary period of monetary stimulus may be approaching its end. The ECB is currently planning to continue buying bonds under its quantitative easing stimulus programme until September, at a pace of around €30bn (£26bn) each month. “They’re putting out feelers to prepare markets for an exit,” said David Owen, chief European economist at Jefferies investment bank, although he added Draghi will tread carefully, keen to avoid a sell-off in peripheral Eurozone economies’ government bonds.

THE WALL STREET JOURNAL

FOREIGN FIRMS BRACE FOR COST INCREASES

Foreign companies are calculating whether the cost increases they will bear under the new US tax law will outweigh the benefits of a lower corporate rate.

JUMANJI LEADS SONY PICTURES OUT OF JUNGLE

Three weeks into the new year, Sony Pictures is in an unfamiliar position: first place. After a dismal five-year run, Sony’s motion-picture business has outgrossed all competitors so far in 2018 thanks to a smash-hit sequel to a 1995 family film. Jumanji: Welcome to the Jungle was top of the US box office for the third weekend in a row.


MONDAY 22 JANUARY 2018

CITYAM.COM

Royal Mail deal to be ‘nailed down’ this week OLIVER GILL @ojngill ROYAL Mail’s main union expects to “nail down” a final pay and pensions deal this week, ending a bitter and protracted industrial dispute. The Communication Workers Union (CWU) claimed victory, saying the threat of strike action during the critical Christmas period forced Royal Mail’s top brass to take the union more seriously. Talks have made steady progress since October, something that has not gone unnoticed by the City. Royal Mail’s share price has risen by a quarter since a November nadir, adding £1bn to the postal giant’s stock market valuation. “Philosophically we are in the right place… Once you get into the drafting, it is such a complex

thing,” CWU deputy general secretary Terry Pullinger told City A.M. at the end of last week. “We’re really trying to get it [a final agreement] nailed down next week.” The CWU balloted its 110,000 members in October with almost nine in 10 of voting in favour of strike action. A 48-hour walkout was blocked by a High Court ruling mandating both sides must first hold mediated talks. “I think we had really lost our way from an industrial relations point of view,” said Pullinger. “The conversation did not change until we got a massive ‘yes’ vote and gave notice.” A Royal Mail spokesperson said talks were continuing and both parties were “finalising an agreement”.

CEO Moya Greene was appointed five years ago

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Hohn among world’s leading hedgies in 2017 SVEA HERBST-BAYLISS

The first batch of roundels for the new line are now in place

First Elizabeth Line stations get kitted out with purple roundels REBECCA SMITH @BexKSmith TRANSPORT for London has revealed the first batch of its iconic roundels are in place for the new railway. Now 110 years since the installation of the first roundel sign at St James’s Park station, the latest iteration has begun to crop up along the Elizabeth

Line at stations including Tottenham Court Road and Farringdon. New images today reveal the signage for the Elizabeth Line in the making including the manufacture of roundels at AJ Wells & Sons on the Isle of Wight, the installation of platform roundels manufactured by Merson, and wayfinding signage produced by Wood & Wood.

HEDGE fund managers who bet on stocks scored some of the industry’s biggest gains in 2017, when equity markets galloped past a series of critical milestones, according to a new list of the top 20 all-time performers. The annual list, released yesterday, shows Steve Mandel’s Lone Pine Capital, John Armitage’s Egerton Capital, Andreas Halvorsen’s Viking Global Investors and Chris Hohn’s TCI Fund Management as last year’s best performers. Each of the four stock-focused funds earned between $3.5bn (£2.5bn) and $5bn, according to list compiler LCH Investments, the world’s oldest fund of hedge funds. Two of 2017’s strongest funds were newcomers to the list. Egerton ranked 18th, having earned $14.7bn since its inception in 1995, while TCI came in at No20 with $14.2bn in gains since 2004. Ray Dalio’s Bridgewater Associates, the world’s biggest hedge fund, retained the top spot, and George Soros’ Soros Fund Reuters Management stayed second.


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Nationalisation vow branded a ‘£176bn gamble’ HARRY BANKS LABOUR’S plans to nationalise core industries would add at least £176bn to the UK’s national debt, the equivalent of £6,500 per household, a new study suggests. According to the free-market Centre for Policy Studies (CPS), nationalising the energy and water sectors would cost £55.4bn and £86.25bn respectively, while the price tag attached to bringing Royal Mail back into public hands would be £4.5bn. The cost of nationalising private finance initiative (PFI) contracts, which have come under scrutiny following the collapse of Carillion, would be £30bn. The energy figure only takes into account transmission and distribution networks. If Labour nationalised the whole sector, as championed by Jeremy Corbyn, the total cost rises to £306bn. The UK is currently straddling a national debt of £1.76 trillion. Shadow chancellor John McDonnell

has previously justified his plans by saying the companies’ subsequent profits would pay for the costs of nationalisation. However, he has also promised to use the same profits to cut household bills by £220 per year. When challenged about the CPS report on the BBC’s Andrew Marr show, he said the think tank was “almost a department of the Conservative party” and “hardly independent”. Reiterating his commitment to bringing PFI contracts back into public hands, McDonnell said: “It will be cheaper now to bring the special purpose vehicles into public ownership, parliament will determine the price, we can renegotiate the terms of the debt that there is now and make it cheaper. That’s what many people do in their own lives, they go out and renegotiate their mortgage, and that’s what we’ll do on this.” Chancellor Philip Hammond tweeted that the report laid bare Labour’s “fantasy economics”.

Boris blasts CBI after customs union claims HELEN CAHILL AND LYNSEY BARBER

The French President was speaking while on a visit to the UK

Macron opens door to bespoke UK deal in Brexit compromise LYNSEY BARBER @lynseybarber THE CITY will not get full access to the Single Market after Brexit, French President Emmanuel Macron said yesterday, but suggested the UK could secure a compromise deal. “For sure, full access for financial services to the Single Market is not

feasible given the functioning of the Single Market,” he said, speaking on the BBC’s Andrew Marr show. However, he added “for sure you will have your own solution.” Speaking after a summit with Prime Minister Theresa May last week, Macron suggested a Brexit deal could exceed the level of access enjoyed by Norway.

@HelCahill @lynseybarber BORIS Johnson hit out at leading business group the Confederation of British Industry (CBI) yesterday, saying its suggestion of creating a customs union with the EU “makes no sense”. In a speech today at the University of Warwick, the CBI’s director general Carolyn Fairbairn will say that there is “too much ideology, too little urgency” in UKEU negotiations so far, and will make the case for the EU and the UK being in a customs union. However, in a series of tweets, the UK foreign secretary said: “Staying in the customs union means effectively staying in the EU: the EU is a customs union. “It means no new free trade deals, no new export opportunities, and no leading role in the WTO.” The CBI, which represents the views of thousands of businesses across the country, will today put forward its argument against leaving a customs union, Fairbairn will say that the UK is not yet ready to form trade policy fully independently from its EU partners.


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McDonnell says the UK shouldn’t pay for access to the Single Market HELEN CAHILL @HelCahill JOHN McDonnell yesterday dismissed suggestions that the UK should pay for access to the Single Market after Brexit. Speaking on the BBC’s Andrew Marr show, McDonnell shut down the idea, which has been suggested by French President Emmanuel Macron. “I don’t understand why we would

John McDonnell said the whole of Europe benefits from the UK’s financial sector

MPs say stamp duty cuts will push up prices HELEN CAHILL @HelCahill TOP MPs have thrown their weight behind concerns that the government’s flagship housing policy will damage first-time buyers. Responding to the Autumn Budget, the Treasury Select Committee (TSC) has said Philip Hammond’s decision to cut stamp duty for first-time buyers will increase house prices. The committee has concluded Hammond’s stamp duty holiday will increase prices for first-time buyers by at least as much, and possibly more, than they will save from the stamp duty cut. “The only sustainable way to address housing market affordability, both for first-time buyers and other households, including those in the rental sector, is to significantly increase the supply of new housing,” the report said. “The Autumn Budget alone is unlikely to achieve this.” The report echoes the conclusions of the Office for Budget Responsibility, which has said the stamp duty holiday will push up house prices by

0.3 per cent, with most of the increase feeding through this year. In its analysis of the Budget, influential think tank the Institute for Fiscal Studies also said stamp duty cuts will lead to price rises. Theresa May promised to take “personal charge” of the housing crisis ahead of the Autumn Budget, but Hammond refused to adopt more radical policies suggested by Cabinet colleagues, including Sajid Javid, the secretary of state for housing, communities and local government, who proposed more government borrowing to stimulate housebuilding. The TSC has suggested the government encourage local authorities to build by scrapping a cap on borrowing for housing construction. Meanwhile, the Housing & Finance Institute (HFI) will today urge the government to focus on modular construction as a means of meeting its target of 300,000 new homes being built per year. Modular homes are built through constructing separate parts of the building (modules) off-site before putting them together on location.

Trust in bosses jumps as social media becomes new bogeyman JASPER JOLLY @jjpjolly BUSINESS leaders have enjoyed a surprise turnaround in public trust, according to a prominent survey of Britons’ faith in institutions – although social media companies have lost the trust of the public. The credibility of chief executives has improved by 14 percentage points during the last year, with 42 per cent of more than 3,000 Britons surveyed by US public relations firm Edelman saying they trust bosses.

At the start of 2017 the annual survey found trust across the world fell to an all-time low of 37 per cent, but business leaders have staged an unlikely comeback, although overall levels of trust in firms remains relatively low, with only 43 per cent of Britons saying they trust business, poll results published today show. Social media firms have had a particularly difficult year, with only 24 per cent of the British public saying they trust them. Only a third of Britons say social media are good for society.

have to pay,” McDonnell said. “Does that mean therefore that we would have to charge them to access our market as well? It seems to be a negotiating point rather than reality.” The shadow chancellor said Macron was being “hard-nosed” and that the EU would likely soften its position when negotiations on the future UK-EU relationship start later this year. “I actually think there is a deal to

be had because it isn’t just the City of London, the financial sector in London benefiting our own country, it benefits Europe as a whole because it brings together the opportunity of investors joining together and investing in Europe as well as Britain,” he said. Michel Barnier, the lead negotiator for the EU, has said City firms will lose their passporting rights when Britain leaves the trading bloc.


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Dixons Carphone tipped to post sales rise on success of iPhone X HELEN CAHILL @HelCahill DIXONS Carphone is tipped to post a rise in sales this week as it reports on how it fared over Christmas. The electronics retailer will publish its Christmas sales figures tomorrow, having flagged a good start to trading when it last published results around Black Friday. Several non-food retailers

announced disappointing trading figures over the festive season. However, Barclays analysts said a recent Kantar report revealing strong iPhone X sales was good news for Dixons Carphone. The retailer has been forced to shake up how it sells mobiles after it found consumers were replacing their electrical items less often, leading to a slump in firsthalf profits. The analysts have predicted like-for-

like sales growth of three per cent in the UK and Ireland, and four per cent growth across the group. The results come after the firm announced its boss Sebastian James was leaving the group to join Boots. He will be replaced at the retailer by Alex Baldock as chief executive, who currently heads up online retailer Shop Direct, with brands including Littlewoods and Very. James will step down in April.

Sebastian James is leaving Dixons Carphone for Boots

Twitter exec lined up for SoFi leadership role LYNSEY BARBER @lynseybarber ONE OF Twitter’s most senior execs is being lined up for the top job at US online lender Social Finance, Inc, known as SoFi, according to reports. Chief operating officer Anthony Noto is being considered for chief executive of the firm which has been without a boss for several months after CEO and co-founder Mike Cagney stepped down amid a lawsuit that alleged he presided over a hostile work environment for women. Noto joined Twitter in 2014 as finance chief after a career as a banker at Goldman Sachs where he worked on the tech company’s initial public offering and was elevated to operating chief in 2016. Twitter has managed to stem the flow of senior departures which plagued it at around that time, as well as rebounding somewhat after a string

of less than impressive earnings. Shares in the social network were pushed to a year-high last week after Facebook – a rival for social media advertising dollars – announced major changes to its News Feed. Noto is the most senior person at Twitter after chief executive Jack Dorsey, who is also the boss of payments firm Square. According to Wall Street Journal reports, Noto has been approached about the top job at SoFi, an alternative lending firm, but could still remain at Twitter. Twitter, which is reviewing Russian interference during the 2016 US elections, said on Friday it would notify some of its users whether they were exposed to content generated by a suspected Russian propaganda service. It said it would email 677,775 people in the US who interacted with accounts associated with the Internet Research Agency. Twitter exec Anthony Noto

Former Gourmet Burger Kitchen chief gets taste for Burger King LUCY WHITE @LucyGJWhite GOURMET Burger Kitchen (GBK)’s former chief executive, who left the company amid poor trading results last November, has been crowned as the new head of Burger King UK. Alasdair Murdoch, who led GBK for seven years and was previously the boss of Pizza Express, stepped down from the up-market burger chain along with chief operating officer Keith Bird just weeks after disappointing results prompted talk

of halting new store openings. The new Burger King UK entity was formed last November, as private equity firm Bridgepoint grabbed exclusive rights to the low-cost burger brand in the UK and acquired its major franchisee Caspian UK. While Murdoch was still at the helm last October, GBK warned waning consumer confidence was partly to blame for its results. At a time when many in the sector have been wary of consumers’ decreased willingness to spend, his move to a value chain may seem canny.


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Private equity circles Poundland LUCY WHITE @LucyGJWhite SPECULATION over the future of Poundland has attracted a pack of prospective private equity bidders ready to snap up the discount retailer. Buyout giants including Advent International, Bain, Clayton Dubilier & Rice, CVC and KKR are sniffing around the company in the expectation that it might soon be sold by its disgraced

South African parent Steinhoff, according to the Sunday Telegraph. Steinhoff’s shares plunged in December after it revealed “accounting irregularities” had prompted a probe. Poundland has already begun distancing itself from the South African group, securing a £180m investment from hedge fund Davidson Kempner. The company’s executive chairman Andy Bond has also been hunting down further financial backing,

approaching turnaround specialists Alteri about a potential management buyout, according to the Sunday Telegraph. Former boss Jim McCarthy has also reportedly been approached by private equity houses to advise on a deal. Poundland’s rival Poundworld, already owned by US buyout firm TPG Capital, has also been in trouble recently after it had to ask its owner for a new cash injection.

Poundland reported record sales over the Christmas period

Aldi and Lidl take top spots in UK brand list

Melrose bid for GKN scrutinised by government

HARRY BANKS

LUCY WHITE

CONSUMERS renewed their faith in discount supermarkets Aldi and Lidl by placing them at the top of YouGov’s BrandIndex rankings for the fourth year in a row. A strong Christmas allowed the German retailers to surpass Marks & Spencer, which came in at eighth place with a ‘buzz score’ of 10.2, compared with Aldi’s 18.1 and Lidl’s 14.5. BrandIndex measures public perception of brands using buzz scores, which track whether people have heard anything good or bad about the brand during the previous two weeks. YouGov’s Amelia Brophy said: “Both Aldi and Lidl continue to adapt their offering evolving from being seen the ‘cheap’ option to projecting themselves as offering both value and, increasingly, quality.” Another battle that played out in the YouGov rankings was that between Netflix and BBC iPlayer. Netflix’s effective “quality original content” strategy propelled it into third place and pushed the catchup services to fourth place. The last time BBC iPlayer did not make the top three was 2014. Price comparison website Moneysavingexpert.com rounded off the top five with a score of 12.6. Making up the rest of the top 10 was Yorkshire Tea, Ikea, Marks & Spencer, PayPal and Premier Inn, which entered into the 10th spot for the first time with its score of 9.4. Brophy said the chain may have benefited from improved brand perception by moving away from adverts featuring Lenny Henry. YouGov also released the 10 “most improved” brands of the past year, with BHS topping the list with a significant rise of 13.8 points to its buzz score. The department store has endured a turbulent two years followings its collapse in April 2016.

@LucyGJWhite NATIONAL security concerns mean turnaround firm Melrose will now have to jump another hurdle if it is to proceed with its £7.4bn bid for engineering giant GKN, as the government has revealed that it is scrutinising any potential deal. Melrose was already battling with GKN’s board as the bid went hostile, and has been attempting to convince shareholders that its plans to create value at the FTSE 100-listed company are more feasible than GKN’s own. But a spokesperson for the Department for Business, Energy and Industrial Strategy (Beis) hinted that government ministers may yet intervene in any prospective deal, which is possible on the grounds of national security. GKN’s aerospace branch is heavily involved in defence projects, including the manufacture of parts for the UK’s F-35 fighter jet and the US’s new main B-21 bomber. “While this is a commercial matter for the companies involved, government is closely monitoring the situation. Business secretary Greg Clark has spoken on an impartial basis to both companies,” said a Beis spokesperson. GKN has slammed Melrose’s approach for the company as being “misleading” and offering a “fake premium”. It has instead told shareholders it can create value by splitting the aerospace and automobile divisions. In a well-timed announcement yesterday, GKN said its order book for electric car technologies hit £2bn in 2017 after “significant contract wins”. It added electric drive sales are now expected to increase more than eightfold to £275m. In response, Melrose said it welcomed the news and that the announcement was “part of the justification of the premium we are offering to GKN shareholders”.

New Look’s bondholders seek out advice HELEN CAHILL

New Look is closing down 60 stores

@HelCahill NEW LOOK’S bondholders are looking to hire lawyers ahead of the firm’s planned restructuring. The retail chain, which is controlled by Brait, the investment firm of Christo Wiese, has been holding meetings with lenders as it prepares to shut 60 stores as part of a

company voluntary agreement (CVA). The CVA will need approval from 75 per cent of investors. The Telegraph reported yesterday that bondholders including Carlyle, CQS, M&S Investments, and Blackstone’s GSO division have formed a committee and are intending to appoint advisers. Firms including PJT, Rothschild and Lazard have reportedly been called in to set

out the group’s options. New Look’s troubles deepened this month when it emerged credit insurers were either cutting or reducing their cover on the retailer’s stock, meaning suppliers were likely to start demanding upfront payments from the business. Moody’s has said it is uncertain the fashion chain can recover its falling profitability. New Look declined to comment.


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New passports: The City’s future EU trade Helen Cahill looks at how Westminster and the City can work together to secure a new trading relationship with the EU

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CRUCIAL phase in the Brexit talks will soon get underway when UK and EU negotiators meet to discuss trade. Leading the EU side, Michel Barnier has categorically said City firms will lose their passporting rights when the UK exits the Single Market and EU leaders have held firm on the reduced level of market access that the UK can expect. But might it be possible for Brexit secretary David Davis to negotiate a trade deal which includes financial services with the EU27? Policy experts in London are convinced the UK can secure licence-free access to the EU market. Rachel Kent, global head of financial institutions at Hogan Lovells, has conducted extensive research for a report describing such a deal. She points to the trade agreement between Canada and the EU, Ceta, as a springboard for talks. “I am something of an optimist, because if you look at trade agreements such as Ceta, they seem to envisage access might be possible down the line,” she said. “But we are different from every other country in the world, that for me is absolutely key.” In her report for the International Regulatory Strategy Group (IRSG), Kent argues financial services could be part of a free-trade agreement (FTA) with the EU because the UK is already aligned with EU rules. Normally, financial services firms are excluded from FTAs as part of a prudential carve-out. Financial services are treated as sensitive aspects of an economy because financial stability is non-negotiable, and governments naturally want to protect consumers. For example, if one jurisdiction has low capital requirements, it poses a risk to potential trade partners. But this would not be true of any UK-EU co-operation on financial services as currently the UK has the same capital requirements as its EU partners. The UK-EU FTA can bypass the prudential carve-out because the UK’s regulatory framework means it is not a risk to financial stability in the EU27; the deal could be set up using the language of the Single Market. So, according to the IRSG analysis, it is technically possible for financial services to be included in an FTA. But there’s another problem, articulated by trade expert Christophe Bondy, senior counsel to Canada in Ceta talks, when he gave evidence to the Brexit select committee last week. “I’ve heard many people say: Well it’s going to be easy because we’re harmonised,” he said. “Well, that’s day one. What about day two, day 10

— that’s where the real issue is.” Negotiators must, therefore, create a framework which allows the UK to diverge from the EU, without it becoming a liability to the bloc. Allie Renison, head of Europe and trade policy at the Institute of Directors, describes such a deal as a “living agreement”, with joint committees of regulators meeting on a weekly basis. Ruth Lea, economic adviser to Arbuthnot Banking Group, says the UK and the EU could agree areas where they must remain aligned, and areas where they can move apart. It is unlikely the EU would allow product regulations to diverge, for example. But Lea says the EU may allow for differences in labour market regulations, such as the working time directive, an EU rule which restricts the working week to 48 hours. Separately, the deal must outline an approach to new regulation. Given its outperformance in fintech, the UK will likely lead the way in regulating this sector. The EU would, therefore, benefit from ongoing communication with UK regulators on this area of financial services.

Disputes between the UK and the EU won’t end with Brexit Co-operating on trade means disputes between the EU and the UK won’t end with Brexit. Trade disputes will flare up in the future, and the IRSG has proposed a new judicial structure to provide resolutions. But the remit of the new body should be limited to whether both sides are complying with the trade agreement. Ultimately, both sides will benefit from drawing up a deal that allows licence-free access for financial services, Kent adds. Opting for no deal shuts European consumers out of a global financial centre, and increases the capital requirements for Londonbased banks looking to do business in Europe. Kent says institutions would start to question whether to do business in Europe, or pass on the extra costs to consumers. Sam Woods, deputy governor at the Bank of England, says a trade deal which recognises the City of London is technically feasible and could be completed within three years. So, it appears barriers to forging a deal are political, rather than technical. Firms will be hoping Whitehall is ready to do what it can to protect the City’s interests.


An utterly irresistible offer.

the end of the agreement there are three options: i) pay the optional final payment and own the vehicle; ii) return the vehicle: subject to excess mileage and fair wear and tear, charges may apply; Representative *Ator iii) replace: part exchange the vehicle. Excludes Golf SV, Golf GTE and e-Golf. With Solutions Personal Contract Plan. 18s+. Subject to availability and status. T&Cs apply. Offer available when ordered

5.1% APR Official fuel consumption for the Volkswagen Golf range in mpg (litres/100km): urban 29.4 (9.6) – 68.9 (4.1); extra urban 44.8 (6.3) – 76.3 (3.7); combined 37.7 (7.5) – 74.3

by 2nd April 2018 from participating Retailers. Indemnities may be required. Offers are not available in conjunction with Scrappage upgrade scheme or any other offer and may be varied or withdrawn at any time. Accurate at time of publication. Freepost Volkswagen Financial Services. Standard EU Test figures for comparative purposes and may not reflect real driving results. Model shown £21,010 RRP.

(3.8); CO2 emissions 180 – 38g/km. Information correct at time of print.


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MONDAY 22 JANUARY 2018

CITYAM.COM

Sub-contractors suffer from Carillion crash Oliver Gill on the businesses now sacking staff as unpaid debts wipe out their profits

C

ARILLION’S failure shortly before 7am last Monday morning sent shock waves through Britain’s vast network of small business sub-contractors. In the week that followed, the government insisted critical public services contracts servicing hospitals, schools and prisons will be fulfilled. On some building projects, Carillion’s joint venture partners have stepped in to fill a void left by Britain’s second-biggest contractor. Builder Kier will take up the slack on a £1.4bn HS2 contract, for example,

while telecoms firm Telent will take complete control of a £1.5bn broadband infrastructure roll-out for BT Openreach. But concerns linger over delays to already over-running building works. At the sites of two of Britain’s biggest new hospitals, Royal Liverpool and Midland Metropolitan, workers downed tools last week. Birmingham’s Midland Metro extension, preparing the “second-city” for the 2022 Commonwealth Games, could also be delayed.

‘STICKING PLASTER’

Banks have offered £225m of emergency funding to small businesses affected by Carillion’s failure after a task force led by business secretary Greg Clark demanded support on Thursday. In response, the Federation of Small Businesses (FSB) said such support was merely a “sticking plaster”. One of the victims of Carillion’s

TEARS

spectacular collapse was Birmingham-based building and refurbishment firm Drewmark. Often referred to as the “backbone” of the UK’s economy, firms like Drewmark were “forced into” working for contractors like Carillion, boss Andrew Taylor told City A.M. “Twenty-five years ago we would be working for big companies and we’d be working for people in our locality. [Then] the companies go and get rid of their services department and pass it out to the likes of Carillion,” he said. Drewmark was owed £200,000 by Carillion, meaning the firm, which

employs 65 staff, will post an £80,000 loss for 2017. Desperate to maximise cash reserves Carillion staff “bullied” the sub-contractor over a £55,000 debt owed to Drewmark in the second half of last year, he says. Having agreed a £10,000 discount just to get the money in, Taylor said Carillion quibbled an invoice of £130 and withheld payment for a further two weeks. He added: “I’ve been doing this for 37 years. I’ve never had bad debts, I don’t know how to chase money or what the legal [ramifications are]… and to an extent I was easily fobbed off.”

The head of the Specialist Engineering Contractors’ (SEC) trade body Rudi Klein estimated Carillion’s failure has left thousands of small contractors around £1.2bn out of pocket. One such company was Flora-tec, a Cambridge-based horticultural company servicing schools, prisons and hospitals. Its boss said 10 of its 90 staff needed to be laid off immediately following Carillion’s failure – which owed the firm £800,000. “People were in tears, colleagues we worked with for a long time,” said managing director Andy Bradley. Flora-tec had been comforted by the government supporting Carillion despite a string of profit warnings. He said: “I want the government to think long and hard about the SME sector because we are the people that will bear the brunt of this, not the shareholders and not the big multinational conglomerates.” Midlands-based firm Larc Construction was owed £200,000 by Carillion when it failed. Joint founder Josh Lee told the BBC the debt wipes out everything he has worked for. He has laid off 15 of his 20 staff already. “The government is woefully failing people like me,” he said. Last week accountants estimated small businesses could expect to receive less than 1p in every £1 owed to them by Carillion. FSB chairman Mike Berry said: “We all need to understand that it is very unlikely – as in any administration or liquidation – that those who have already invoiced Carillion up to the announcement on Monday are going to get anything out of this at all.”


MONDAY 22 JANUARY 2018

CITYAM.COM

NEWS

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Teesside in fresh push for free ports OLIVER GILL @ojngill POLITICIANS from both sides of the political divide have joined forces to urge chancellor Philip Hammond to allow parts of Teesside to be converted in free ports. Conservative party Tees Valley mayor Ben Houchen said Brexit will “provide the UK with economic freedoms, and the opportunity may exist for us

Banks: ‘Urgent’ need for Brexit cliff-edge fixes JASPER JOLLY @jjpjolly POLITICIANS on both sides of the Channel must “urgently” agree a Brexit transition deal to avoid a legal and regulatory cliff edge which would cause chaos for firms and threaten financial stability, according to a lobby group for Europe’s biggest banks. The Association for Financial Markets in Europe (Afme), which counts JP Morgan, Lloyds, and Citi among its heavyweight members, will today warn that failure to act will leave even the best-prepared firms vulnerable to massive disruption as data transfers become illegal and contracts with clients become void overnight. Simon Lewis, Afme chief executive, said: “There are now less than 15 months before the UK leaves the EU and the financial services industry continues to face significant uncertainty. It is therefore imperative that agreement is reached as soon as possible on transitional arrangements.” While many international banks with London-based EU headquarters have already planned staff moves in response to Brexit, regulators at the Bank of England believe the flow of jobs out of London will speed up significantly if there is no transitional agreement in place by the end of March – a year before Brexit on 29 March 2018. Cross-border wholesale banks are particularly concerned with getting a transitional deal so that business done in London with EU clients and vice versa can continue to function. The EU and UK government must agree a framework to secure crossborder data transfers and contracts after Brexit or risk firms being unable to do business, while risks extend to the legal and regulatory underpinnings of large parts of the financial system, Afme said.

to create free ports”. The letter was backed by 50 business leaders, who support the idea of having a tariff-free zone. Local MP Anna Turley also gave the idea her blessing. “As a Labour MP I am not usually someone who supports reducing taxes,” she told City A.M. yesterday. But she said the area, still reeling from the 2015 failure of the SSI steel plant, needs “a helping hand”.

Earlier this month, Turley told MPs a Teesside free port “would increase employment and economic activity in areas where economic need is high and could play a major role in rebalancing our London-centric economy”. Houchen wrote: “We do not yet know the trading arrangements that will apply after Brexit, however, I am keen that we act now to understand the benefits that free port status might bring to the Tees Valley region.”

Teesside’s ports sit close to SSI’s mammoth steel plants, mothballed in 2015

Corbyn fan is advising Beis secretary Clark

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@ojngill AN ECONOMIST working as an adviser to business secretary Greg Clark closely aligned himself with Jeremy Corbyn on social media, praising the Labour leader’s “democratic life-force”. Tony Curzon Price also promoted “good ways to be anti-capitalist”, the Telegraph reported yesterday. Clark’s adviser is on loan from the Financial Conduct Authority (FCA), a government spokesperson later confirmed to City A.M. The economist started work with the FCA in September 2016, only to be transferred to the Business, Energy and Industrial Strategy (Beis) department in January 2017. Curzon Price is a board member of OpenDemocracy, a “global website dedicated to bottom-up approaches to democracy and human rights”. Social media posts by the former head of economic analysis at the Competition and Markets Authority (CMA) backed new taxes on homeowners who have benefited from living near better schools, the Telegraph reported. Curzon Price has a first class degree from Oxford University in politics, philosophy and economics. A spokesperson for the BEIS department said: “This member of staff is on secondment from the Financial Conduct Authority. All our employees are hired in accordance with Civil Service recruitment principles.” OpenDemocracy co-founder Anthony Barnett wrote on Curzon Price’s LinkedIn profile: “Tony is a brilliant and inventive leader, a compelling and original writer and a true democrat.” Clark is at the centre of the government’s response to the Carillion collapse, chairing a task force aimed at minimising the fall out from the contractor’s failure.

Gambling terminal stakes will shrink to £2 PAUL SANDLE

Bookmakers have said they will be forced to close stores if they lose the machines

THE STAKE on gambling machines in British betting shops is set to be cut to £2 to tackle the risks that the terminals can pose to problem gamblers, the Sunday Times reported, citing an ally of new culture secretary Matt Hancock. The government said in October it would reduce the top stake on the

machines from £100 to between £50 and £2, with the limit agreed after a consultation that ends tomorrow. Fixed odds betting terminals (FOBTs), which allow players to bet on the outcome of various games, are an important source of income for highstreet bookmakers. Britain’s bigger bookmaker Ladbrokes Coral made about £800m of revenue from gaming machines in

2016. The terminals have been called the “crack cocaine of high street gambling” by critics as they allow players to bet as much as £300 a minute on high-speed games such as roulette. A report by industry regulator the Gambling Commission last year said 43 per cent of players were either problem gamblers or at risk of becoming a problem gambler. Reuters


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12 NEWS MONDAY 22 JANUARY 2018

The Range aims to list during the second half of 2018, according to reports

Discount furniture retailer The Range aims for £2bn London float LUCY WHITE @LucyGJWhite SELF-MADE businessman Chris Dawson is aiming to float the discount retail chain he founded almost 30 years ago. Dawson has entered into talks with investment bankers with a view to listing The Range, which sells branded furniture and homewares at knockdown prices, according to Sky News.

The chain, which has more than 140 stores across the UK, could be valued at close to £2bn. The Range’s holding company made profits of almost £55m in the year to January 2017 and is expected to reach £100m this year. Dawson, who reportedly learnt to read in his late 20s, has previously told interviewers that he has never read a book or written a letter.

UK leads the pack as European buyouts hit post-crisis highs LUCY WHITE @LucyGJWhite IN A YEAR which saw Brexit negotiations grind on while a number of European countries held elections, buyout activity in Europe hit a decade-high. Private equity firms completed 919 buyouts of companies in 2017, up 19 per cent year-on-year and the highest number since 2007’s 1,000 deals, according to Unquote data. The UK drove activity both in terms of the number of deals and their combined value, as 204 of its companies were bought out in private equitybacked transactions for a combined €38.8bn (£34.2bn). Low interest rates have meant debt is cheap and readily available to support buyouts. Buyers can “leverage” the deal by paying less from their own funds and more with borrowed money, potentially increasing their returns when they sell on the company. “Thankfully, while leverage multiples have certainly crept up, we are nowhere near the alarming levels that were seen in the run-up to the financial crisis 10 years ago,” said Unquote’s head of research Julian Longhurst. The biggest European private-equity backed deals last year included KKR's

£6bn carve-out of Unilever’s spreads division, its £4.2bn sale of software company Visma, and the €5bn buyout of German pharmaceuticals company Stada by Bain Capital and Cinven. While the UK was still the strongest country in Europe, other countries including the Netherlands, Spain, Poland and Denmark recorded all-time high deal volumes. Across the board it was the smaller end of the market which drove a rise in the number of deals, as 34 per cent more companies in the €5m to €50m price bracket were bought out compared to 2016. But the value of the plus-€1bn “megadeals” jumped by almost 50 per cent in 2017, from €36.9bn to €54.6bn. Although the private equity industry has long been denounced for asset stripping and cutting jobs, new research from advisory firm BDO suggests buyout house ownership might actually be beneficial for companies. The research, published today, showed private equity-owned companies had increased their revenues by 12 per cent during 2017 to £42bn, while growing their workforces by 8.5 per cent. Two fifths of these companies were based outside London, showing the benefits stretched beyond financial centres.


MONDAY 22 JANUARY 2018

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earnings and dividend per British potential Diageo share set to bubble in 2017 results for productivity rises above rivals HARRY BANKS

JASPER JOLLY @jjpjolly BRITAIN’S potential for future productivity is higher than Germany, France, and the US in spite of the threat of political instability, according to new research to be published today. The UK came 13th overall in accountants KPMG’s growth promise indicators, which uses a range of measures, including openness to innovation, the quality of infrastructure and institutions to measure which countries have the highest potential for sustained growth. The Netherlands retains its top spot in the ranking, with strong institutions, high-quality infrastructure and highly trained workers counting in its favour.

The top of the table of countries best prepared for future growth is dominated by European nations, with only six of the strongest 20 coming from outside the continent. Switzerland came second, followed by Luxembourg, Hong Kong and Norway. While the ranking does not take into account political uncertainty – including the effects of the Brexit vote in the UK – it aims to show the countries with the best environment for future growth. The UK remains well above other rival economies such as France and the US, while Germany also fell down the ranking from last year to 14th, just below the UK reading. However, the research also found the UK is less open to technological catch-up than comparable nations.

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ANALYSTS expect FTSE 100 drinks giant Diageo to uncork a seven per cent increase in earnings per share on Thursday when it releases fullyear results. The owner of Johnnie Walker, Smirnoff and Guinness is also expected to post a seven per cent lift in its dividend per share for 2017.

The company is likely to continue to benefit from global market trends, including premiumisation and a recovery in Chinese demand following the government’s corruption clampdown. Hargreaves Lansdown equity analyst George Salmon said: “Industry level indicators are good, with scotch exports returning to growth in 2017 and single malt exports breaking the ÂŁ1bn barrier

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for the first time. As the globally dominant player in scotch, Diageo should be well placed to benefit.� Stock watchers should look out for chief executive Ivan Menezes’ delivery on the target of mid-single digit growth, the £1.5bn share buyback programme and the performance of tequila brand Casamigos, which Diageo acquired from George Clooney for $700m (£505m) last summer.


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CITYAM.COM

MONDAY 22 JANUARY 2018

OLIVER GILL @ojngill SKY INVESTORS, basking in a recent 10 per cent share price rise, are set to receive a fresh helping of good news on Thursday when the media giant announces its half-year results. Profits are expected to jump by a 10th, with analysts pencilling in £1.1bn of underlying earnings. The announcement comes as the City is braced for a decision on 21st Century Fox’s takeover of the Brentfordbased firm. Fox is vying to take control of the 61 per cent of shares it does not own in Sky. Regulators are due to report back on the takeover before 1 February. Last month Disney agreed a $52bn (£39bn) deal to buy Fox’s assets – including its interest in Sky – that will

likely be subject to separate scrutiny from UK regulators. Sky investors have been buoyed in recent weeks by a content partnership with BT. With a Premier League football TV rights auction kicking off on 8 February, analysts said the tie-up indicates a softening stance between the media rivals. Fang (Facebook, Amazon, Netflix and Manchester United sit in second place in the Premier League Google) entrants into the Premier League auction are “overhyped”, according to Liberum’s Ian Whittaker, who believes the cost of the rights will rise by around five per cent rather than the 15 per cent previously expected. Amazon is best placed of the four and may win some rights, analysts added.

A.M.

T Y OU IS DA TH RS U TH

Sky set for spike in profits before pivotal February

TRAVEL

A MAGAZIN E BY CITY

ISSUE 04

INSIDE:

| JANUARY

2018

WAYS TO AIR-M GAME THE HOW TO ILES SYSTEM LIVE ABRO AS A DIGIT AD AL THE WATCNOMAD COULD SAVE H THAT PUPPY YOUR LIFE PASSPORTS

SNEAK PREVIEW FROM OUR UPCOMING MAG LOS MEZCALEROS Until relatively recently, mezcal was viewed within its native Mexico as mere moonshine, a poor relation of tequila, Jalisco state’s $2bn global behemoth. Today it is celebrated for its sophisticated flavour, with drinks experts speaking of it in a language usually reserved for wine, with talk of ‘terroir’ and ‘the nose’. In London, Paris and LA it is the toast of the drinking scene. For a growing band of devotees, mezcal is the ultimate artisanal beverage, a drink of infinite complexity that rewards deep research and a willingness to delve into the back country to find the best stuff. Last year Diageo got in on the action, joining the likes of Cuervo and Scotch whisky producer William Grant & Sons in putting big money into mezcal brands. The circling of these big companies is a reminder that while these are undoubtedly exciting times for mezcal, that excitement comes with a shot of worry – and an acknowledgment that popularity may be the gravest challenge this storied drink has yet faced. We visit Oaxaca,

home to dozens of mezcaleros to learn more about this ancient, storied spirit. Read the full story in Thursday’s Travel magazine, inside your copy of City A.M. £ Elsewhere in the issue, we find out how easy it is to pack in your day job and work from a laptop from a sunbaked beach; we take the world’s most elevated trainline through the Andes; we find a surprising slice of luxury in the Ecuadorian jungle; and we pay a visit to the animals’ arrival lounge at Gatwick Airport.

Facebook execs seek to ward off European rules ERIC AUCHARD FACEBOOK execs are fanning out across Europe this week to address the social media giant’s slow response to abuses on its platform, seeking to avoid further legislation along the lines of a new hate speech law in Germany it says goes too far. Facebook’s communications and public policy chief used an annual meeting in Munich of some of Europe and Silicon Valley’s tech elite to apologise for failing to do more, earlier, to fight hate speech and foreign influence campaigns on Facebook. “We have to demonstrate we can bring people together and build stronger communities,” the executive, Elliot Schrage, said of the world’s biggest informationsharing platform, which has more than 2bn monthly users. “We have over-invested in building new experiences and under-invested in preventing abuses,” he said in a keynote speech at the DLD Munich conference yesterday. In the US, politicians have criticised Facebook for failing to stop Russian operatives using its platform to meddle in the 2016 Reuters presidential elections.


CITYAM.COM

MONDAY 22 JANUARY 2018

Online retail behemoth Amazon finally opens ‘Go’ store to the public JEFFREY DASTIN AMAZON will open its checkout-free grocery store to the public today after more than a year of testing, the company said, moving forward on an experiment that could dramatically alter brick-and-mortar retail. The Seattle store, known as Amazon Go, relies on cameras and sensors to track what shoppers remove from the shelves, and what they put back. Cash registers and checkout lines become superfluous – customers are billed after leaving the store using credit cards on file. For grocers, the store’s opening heralds another potential disruption at the hands of the world’s largest online retailer, which bought highend supermarket chain Whole Foods Market last year for $13.7bn (£9.9bn). Amazon did not discuss if or when it will add more Go locations, and

reiterated it has no plans to add the technology to the larger and more complex Whole Foods stores. The convenience-style store opened to Amazon employees on 5 December 2016 in a test phase. At the time, Amazon said it expected members of the public could begin using the store in early 2017. But there have been challenges, according to a person familiar with the matter. These included correctly identifying shoppers with similar body types, the person said. When children were brought into the store during the trial, they caused havoc by moving items to incorrect places, the person added. The 1,800-square-foot store is located in an Amazon office building. To start shopping, customers must scan an Amazon Go smartphone app and pass through a Reuters gated turnstile.

IT’S SNOW PROBLEM FOR DELIVEROO Gig economy titan trials mountain deliveries

@ojngill VIRGIN Atlantic in-flight magazine publisher Ink has appointed financial advisers as its owners mull a multi-million pound sale. KPMG has been drafted in to look at “strategic options”. A reported price tag of £70m would cap a bumper payday for Ink’s majority shareholder Endless and its three-man team of directorowners. Endless, which made its name turning around Crown Paints, bought a 53 per cent stake in Ink in 2015 for £8m. In an exclusive interview with City A.M., co-chief executives Michael Keating and Simon Leslie

described how demand for in-flight magazines had taken off. “I would love to think that is because of our sparkly engaging editorial. But sometimes, people pick it up because they want to look at the route map,” said Keating. “Sometimes they want to see how much a muffin or a cup of tea is. “Frankly, it doesn’t matter why they pick it up as long as they do pick it up, then they engage with it.” Ink has grown from a small number of clients in 1994 to a

DELIVEROO riders have been testing their skills on the slopes of Glencoe, Scotland, as the UK experiences the coldest winter in five years. The trial service will be ready for deployment today in the worst-hit cold weather areas until the end of February.

stable now including Easyjet, Etihad and American Airlines magazines. The company employs around 300 people. Insiders told the Sunday Times annual profits of £7.9m would value the company at Ink publishes airline Virgin’s in-flight magazine portfolio between £60m to £70m. A new agreement with Virgin Atlantic means Ink will not only produce the glossy magazine Vera, it will also take charge of promotions inside the airport lounges.

Luxury giant LVMH unveils new artistic director GEERT DE CLERCQ FRENCH luxury goods conglomerate LVMH said yesterday it has appointed former Yves Saint Laurent star designer Hedi Slimane as artistic director of its Celine label. LICENSING ACT 2003 NOTICE OF APPLICATION FOR A VARIATION

Notice is hereby given that Servet Bolat has applied to London Borough of City to vary a Premises Licence in respect of the premises known as Bolatti London, 141-142 Fenchurch Street London EC3M 6BL for the proposed changes in this licence is: 1. Supply of alcohol for consumption on the premises: from 09:00 to 01:00 Everday 2. Provision of Late Night Refreshment, Live Music, Recorded Music and Performances of Dance: - from 23:00 to 01:00 Everyday 3. Change of Layout. A record of this application is held by the City of London and can be viewed by members of the public online by visiting www.cityoflondon.gov.uk or by appointment at the offices of City of London Licensing Authority, Walbrook Wharf, 78-83 Upper Thames Street London EC4R 3TD. Any person wishing to make a representation in relation to this application must give notice in writing to the licensing authority at the address shown above, giving in detail the grounds of objection by: 11 February 2018. The licensing authority must receive representations by the date given above. The licensing authority will have regard to any such representation when considering the application. It is an offence, under section 158 of the Licensing Act 2003, to knowingly or recklessly make a false statement in or in connection with an application for a premises licence and the maximum fine on being convicted of such an offence is £5000. ADA Group Tel: 0845 200 8424 e-mail: info@adagroup.org.uk T520573

His predecessor Phoebe Philo left the high-end ready-to-wear brand in January after turning Celine into one of fashion’s most sought-after labels over the past 10 years. LVMH chief executive Bernard Arnault said Slimane will oversee and

15

Shell applies for a private hire London licence HARRY BANKS

Ink owners consider sale OLIVER GILL

NEWS

develop both women’s and men’s fashion, leather goods, accessories and fragrances. Slimane, who has designed clothes for actor Brad Pitt and the late David Bowie, worked for LVMH group’s Dior Reuters Homme in the 2000s.

SPORT BUTTLER CENTURY FIRES ENGLAND TO SERIES-CLINCHING ONE-DAY WIN OVER AUSTRALIA AS MORGAN HAILS VICTORY AS BEST UNDER HIS CAPTAINCY PAGE 27

ROYAL Dutch Shell has applied for a private hire licence in London in a bid to pilot its own Uber-style service. The application was submitted to Transport for London in July for its FarePilot app, which tells drivers where there is high demand for taxis and gives them the option of accepting a fare. Shell’s application, if successful, will expand the app to include a full cab booking service, marking the first attempt by an oil company to test the waters in the car booking market. However, City A.M. understands Shell is not intending to directly compete with Uber. “Drivers often ask us if we could further help them by giving them optional supplementary driving jobs and this is something that we are investigating, but no decisions have been taken to go live with such a product,” a FarePilot spokesperson said.

CITY TALK PARTNER CONTENT

Travelling for business? Why you should be wearing a GMT watch

BUCHERER TALK Bucherer’s Nish Tej explains why a GMT watch is a must have accessory for your travels

O

riginating from our wondrous city, the Greenwich Mean Time was created so travellers would be able to tell the time all over the world as long as they knew what the GMT time was and what to add or minus from that time. GMT watches were developed for aviation purposes and their brilliance lies not in complexity but in simple ingenuity. GMT watches have two hands displaying the time in a 12-hour format and an adjustable 24-hour hand. Those who use GMT watches typically use it to know their local time zone and another non-GMT time. Many GMT wristwatches feature a rotating 24 hour bezel which can even be used to track a third time zone with the right amount of math.

WHY SHOULD YOU WEAR ONE?

£ Great for frequent travellers; with a function of setting two-time zones £ It doubles as a compass if you set the GMT hand to local time and locate it towards the sun. The marker will point north for the northern hemisphere or south for the southern hemisphere. £ GMT watches tend to allow for more

GMT watches are great for frequent travellers with a function of setting two-time zones colourful accents, e.g., bicolour bezels and accentuated second hour hands. Nish Tej is the Content and PR executive at Bucherer 1888. Having previously worked for a luxury British retailer, her areas of expertise sit across fashion, lifestyle and fine jewellery.

READ MORE ONLINE Read more at: cityam.com/bucherer


16

MARKETS

CITYAM.COM

MONDAY 22 JANUARY 2018

CITYDASHBOARD LONDON REPORT

BEST OF THEBROKERS

Retailers in the spotlight at start of earnings season

T

HE UK’S major share index rallied to a higher close on Friday as strong metals prices boosted miners and investors sought out makers of consumer staples following fresh evidence of a slowdown in consumer spending. Profit warnings in the morning from retailer Carpetright and funeral services provider Dignity reverberated across the retail sector and underscored the challenges facing British companies that suffer most when household finances are tight. The FTSE 100 rose 0.4 per cent. It was down 0.8 per cent on the week, its first week of losses in seven, after a stellar start to the year riding the wave of rising global equities. There is no getting around it: results season will be back in full swing this

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

354.50

352.50

19 Jan

350.00

W

347.50 345.00 342.50

15 Jan

16Jan

17 Jan

18 Jan

19 Jan

Analysts at Canaccord Genuity are hungry for a slice of Domino’s stock, raising their target price from 347p to 415p and retaining a “buy” rating for the shares. Despite the market’s doubts, its decision to sign a joint venture with its largest London franchisee looks promising for the firm, they said.

OCADO 435

P 19 Jan

430

413

425

FTSE

420

7,800

415

7,750

7,650

P

357.50 355.00

15 Jan

7,730.79

16Jan

17 Jan

18 Jan

19 Jan

Peel Hunt analysts have welcomed Ocado’s decision to split its business into retail and solutions (its technology arm), saying the move showed the firm is much more than an online grocer. They gave the stock a “buy” rating with a target price of 460p, saying management were confident of signing new technology deals.

19 Jan

15 Jan 16 Jan 17 Jan 18Jan 19Jan

NEW YORK REPORT

Wall St shrugs off shutdown

DOMINO'S PIZZA 360.00

week, competing with a raft of trading updates. Companies with results include: Easyjet, Antofagasta, Fresnillo, Sky and Diageo. Trading updates will be retail-heavy, including statements from Pets at Home, WH Smith, Hotel Chocolat, Dixons Carphone and Asos.

7,700

YOUR ONE-STOP SHOP BROKER VIEWS AND MARKET REPORTS

ALL Street rose on Friday, led by gains in consumer stocks, even as a government shutdown loomed. The S&P 500 and the Nasdaq hit record closing highs, while the Dow ended the day higher after trading in a narrow range. Nike, Philip Morris International and Home Depot rose between 1.5 per cent and 4.8 per cent on upbeat analyst expectations, helping to boost the S&P 500. Conversely, losses in IBM and American Express capped gains on the Dow. The Dow Jones Industrial Average rose 53.91 points, or 0.21 per cent, to close at 26,071.72, the S&P 500 gained 12.27 points, or 0.44 per cent, to 2,810.3 and the Nasdaq Composite added 40.33 points, or 0.55 per cent, to 7,336.38. For the week, the Dow rose 1.04 per cent, the S&P 500 added 0.86 per cent and the Nasdaq gained 1.04 per cent. Heavyweight companies reporting this week include UBS, Halliburton, Procter & Gamble, Verizon, General Electric, Ford, Starbucks, Caterpillar, American Airlines, Intel and Colgate.

CITY MOVES WHO’S SWITCHING JOBS THRINGS

Leading commercial law firm Thrings has appointed commercial property expert Fionnuala Nolan as partner to advise the firm’s fast-growing portfolio of commercial real estate sector clients in London. Coming to Thrings from City law firm Banks Kelly Solicitors, Fionnuala has built her reputation in the areas of retail, property development and property trading. Fionnuala, who has more than 20 years’ experience advising businesses on the full spectrum of their

property needs, joins Alison Jarvis’ London-based commercial property team to provide legal expertise to high-end luxury retailers, UK property developers, European and UK investors, trading companies, banks and industrial clients. She has advised on several high profile and complex deals in the City, including the property aspects of PPP projects and carrying through acquisitions and disposals, landlord and tenant negotiations, put and call options, development agreements and conditional contracts.

POLYMATERIA

Polymateria has appointed Niall Dunne as its new chief executive. Niall is joining from BT where he led the company’s Purposeful Business agenda, which

involved him overseeing initiatives such as the growth of BT’s Net Good portfolio. Prior to BT, Niall led the creation and growth of the sustainability practices at Accenture and Saatchi & Saatchi. He is a keen athlete since his youth and represented Ireland over 800m. In 2012 the World Economic Forum selected Niall as a Young Global Leader. Niall also sits on the WEF’s Climate Change Global Agenda Council and was previously the vice chair for the Agenda Council on Sustainable Consumption.

LINKLATERS

Linklaters has appointed Matt Peers to become the firm’s new global chief operating officer as of 1 May, replacing Peter Hickman who remains global CFO.

Matt will join the firm’s executive committee and continue to hold the position of director of technology, the role he has had since joining Linklaters in 2015. As director of technology he has been recognised for a combination of technological expertise and a track record of driving change. His new appointment puts him in a position to help guide the firm through the changing dynamics of the legal sector, as well as ensuring Linklaters fully benefits from the increasing role of technology and the opportunities this brings in an increasingly competitive environment. Prior to joining Linklaters, Matt was the chief information officer for UK and Switzerland at Deloitte. He started his career at Arthur Andersen, where he qualified as a chartered accountant.

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

NEWS

Greece says 15 investors interested New data rules slipping in sale of coal-fired power plants past London businesses RENEE MALTEZOU FIFTEEN investors have expressed interest in acquiring coal-fired plants the country will divest to comply with an EU court ruling, Greece’s energy ministry said yesterday. Athens has agreed with its foreign creditors that power utility Public Power Corp (PPC), which is 51 per cent state-owned, will sell plants equal to about 40 per cent of its capacity after a European court ruled that the utility had abused its dominant position in the coal market.

Greek and international energy producers and local industries participated in a market test conducted by the European Commission’s directorate general for competition, the ministry said in a statement. “There was strong interest from investors,” energy minister George Stathakis said, without providing further details. Greece has reached an agreement with the Commission on the issue, which has been at the top of the agenda of talks with its creditors, and will prepare a draft law, he said. The units that will be sold are

Meliti I and the yet-to-be-built Meliti II in northern Greece along with another two units in the southern Greek town of Megalopolis. Athens is expected to pass any relevant law by April in order for PPC to launch a tender by June. Under its latest bailout, Greece also needs to cut PPC’s share of the retail market to below 50 per cent from 88 per cent by the end of 2019. The southern European country is keen to divest plants that will not significantly reduce PPC’s generation capacity. The EU wants to ensure that the plants will attract investors’ interest. Reuters

HARRY BANKS ONE IN four London businesses are not aware of new data regulations that are due to come into law in a few months, according to a new survey. The London Chamber of Commerce and Industry (LCCI) poll of more than 500 businesses found that of those that believe the new General Data Protection Regulation (GDPR) will affect them, just 16 per cent are prepared for it. The GDPR is due to come into force on 25 May and will replace the 1998 Data Protection Act with

tougher fines for breaches and non compliance. Offending companies could be fined up to four per cent of global annual turnover, significantly more than the current maximum fine of £500,000. Chief executive of LCCI Colin Stanbridge said: “Businesses that are already vigilant about their data protection responsibilities are unlikely to be unduly burdened by the new legislation. “However, we would urge businesses to take this opportunity to review their processes to see if they need to make any changes to be compliant.”


MONDAY 22 JANUARY 2018

CITYAM.COM

FTSE 100

FTSE 250

7730.79 29.83

20653.32 11.70

Price Chg High Low

GILTS Tsy 5.000 18 . . . . . .100.57 Tsy 1.250 18 . . . . . . .100.41 Tsy 4.500 19 . . . . . .104.42 Tsy 3.750 19 . . . . . . .105.11 Tsy 4.750 20 . . . . . .108.75 Tsy 2.500 20 . . . . . .363.65 Tsy 8.000 21 . . . . . . .124.27 Tsy 1.875 22 . . . . . . .120.43 Tsy 4.000 22 . . . . . .113.08 Tsy 2.250 23 . . . . . .107.00 Tsy 2.500 24 . . . . . .363.50 Tsy 0.125 24 . . . . . . .113.60 Tsy 5.000 25 . . . . . .126.67 Tsy 4.250 27 . . . . . .126.85 Tsy 1.250 27 . . . . . . .132.68 Tsy 6.000 28 . . . . . .146.24 Tsy 0.125 29 . . . . . . .122.82 Tsy 4.125 30 . . . . . .365.70 Tsy 4.750 30 . . . . . . .137.36 Tsy 4.250 32 . . . . . . .133.55 Tsy 1.250 32 . . . . . . .150.36 Tsy 0.125 36 . . . . . . .139.30 Tsy 4.250 36 . . . . . . .138.57 Tsy 4.750 38 . . . . . . .151.04 Tsy 0.625 40 . . . . . .160.98 Tsy 4.500 42 . . . . . .152.55 Tsy 3.500 45 . . . . . .134.40 Tsy 4.250 46 . . . . . .153.24 Tsy 4.025 49 . . . . . .159.03 Tsy 0.500 50 . . . . . .186.57 Tsy 0.250 52 . . . . . .182.75

-0.01 0.00 -0.03 -0.02 -0.05 -0.10 -0.11 -0.20 -0.11 -0.14 -0.19 -0.20 -0.16 -0.23 -0.23 -0.23 -0.21 -0.24 -0.24 -0.25 -0.15 -0.14 -0.25 -0.33 -0.22 -0.35 -0.35 -0.37 -0.40 -0.40 -0.40

105.4 101.7 109.2 109.3 114.0 375.0 133.0 129.1 118.0 110.9 375.4 120.3 132.9 133.0 141.5 153.9 130.6 380.7 143.9 139.1 160.8 150.1 144.1 157.2 175.2 159.2 140.3 160.4 166.7 209.1 206.3

100.6 100.4 104.4 105.1 108.7 363.5 124.2 120.3 113.1 107.0 363.1 113.5 126.7 126.3 132.0 146.2 121.4 360.2 136.2 131.5 147.7 134.8 135.1 147.0 155.6 147.7 128.6 147.3 152.5 177.0 171.5

AEROSPACE & DEFENCE BAE Systems . . . . . . . . .587.6 1.4 Cobham . . . . . . . . . . . . .135.5 3.3 Meggitt . . . . . . . . . . . . .488.0 -2.1 QinetiQ Group . . . . . . . .212.1 -3.1 Rolls-Royce Holdi . . . . .892.8 9.4 Senior . . . . . . . . . . . . . .292.8 -3.2 Ultra Electronics . . . . .1450.0 -46.0

677.0 148.0 526.0 319.7 981.0 303.2 2204.0

535.5 96.2 410.6 201.5 660.0 175.8 1142.0

AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .439.4 -5.6 447.7 294.3

BANKS Aldermore Group . . . . .312.0 Barclays . . . . . . . . . . . .200.5 BGEO Group . . . . . . . .3780.0 Close Brothers Gr . . . . .1474.0 CYBG . . . . . . . . . . . . . . .334.0 HSBC Holdings . . . . . . .788.4 Lloyds Banking Gr . . . . . .71.5 Metro Bank . . . . . . . . .3580.0 Royal Bank of Sco . . . . .297.3 Standard Chartere . . . .819.0 TBC Bank Group . . . . . .1724.0 Virgin Money Hold . . . .275.8

0.4 1.2 0.0 -9.0 0.6 0.1 0.6 0.0 0.0 0.0 6.0 0.6

312.0 210.2 239.3 178.9 3868.0 2792.0 1715.0 1316.0 340.3 260.0 796.0 620.8 73.1 62.2 3834.0 3168.0 302.4 215.9 846.7 685.9 1818.0 1390.0 348.0 258.2

2.0 4.5 12.0 2.5

675.0 821.8 2671.0 2725.0

BEVERAGES Barr (A.G.) . . . . . . . . . .668.0 Britvic . . . . . . . . . . . . . .820.0 Coca-Cola HBC AG . . .2424.0 Diageo . . . . . . . . . . . . .2621.5

498.9 582.0 1788.0 2141.0

CHEMICALS Croda Internation . . . .4534.0 Elementis . . . . . . . . . . .296.0 Johnson Matthey . . . .3252.0 Sirius Minerals . . . . . . . .22.4 Synthomer . . . . . . . . . .491.8

84.0 4534.0 3310.0 0.6 317.1 259.1 -3.0 3503.0 2727.0 -0.2 35.0 17.3 0.8 509.5 377.5

FTSE ALL SHARE

BATS UK 100

4240.50 12.64

13126.59 58.51

Price Chg High Low Victrex plc . . . . . . . . . .2602.0 32.0 2730.0 1832.0

CONSTRUCTION & MATERIALS Balfour Beatty . . . . . . .289.8 CRH . . . . . . . . . . . . . . .2683.0 Galliford Try . . . . . . . . .1162.0 Ibstock . . . . . . . . . . . . .260.2 Kier Group . . . . . . . . . .994.0 Marshalls . . . . . . . . . . . .425.2 Polypipe Group . . . . . .402.0

-5.8 59.0 -3.0 3.0 -47.0 0.2 -1.4

307.6 253.5 2920.0 2530.0 1583.0 1142.0 270.2 176.5 1503.0 989.8 480.2 281.7 436.5 332.2

ELECTRICITY Drax Group . . . . . . . . . .282.0 -4.0 384.6 256.4 SSE . . . . . . . . . . . . . . . .1291.0 -9.0 1551.0 1288.5

ELECTRONIC & ELECTRICAL EQ. Halma . . . . . . . . . . . . .1330.0 15.0 Morgan Advanced M . .355.6 -2.4 Renishaw . . . . . . . . . .5690.0 150.0 Spectris . . . . . . . . . . . .2658.0 13.0

1333.0 913.5 366.2 281.9 5760.0 2721.0 2834.0 2229.0

EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .1376.0 Alliance Trust . . . . . . . . .767.0 Bankers Inv Trust . . . . .910.0 British Empire Tr . . . . . .748.0 Caledonia Investm . . .2805.0 City of London In . . . . .441.0 Edinburgh Inv Tru . . . .699.0 F&C Global Smalle . . .1405.0 Fidelity China Sp . . . . . .256.5 Fidelity European . . . . .231.5 Finsbury Growth & . . . .762.0 Foreign and Colon . . . .665.0 GCP Infrastructur . . . . . .121.0 Genesis Emerging . . . .741.0 Greencoat UK Wind . . . .121.2 HarbourVest Globa . . .1264.0 Herald Investment . . .1180.0 HICL Infrastructu . . . . . .152.4 International Pub . . . . .150.8 John Laing Infras . . . . . .117.4 JPMorgan American . . .415.5 JPMorgan Emerging . . .914.0 JPMorgan Indian I . . . . .775.0 Jupiter European . . . . .784.0 Mercantile Invest . . . .2190.0 Monks Inv Trust . . . . . . .816.0 Murray Internatio . . . .1260.0 NB Global Floatin . . . . . .94.0 Perpetual Income . . . .380.0 Pershing Square H . . .1042.0 Personal Assets T . . .40950.0 Polar Capital Tec . . . . . .1174.0 RIT Capital Partn . . . . .1960.0 Riverstone Energy . . .1308.0 Scottish Inv Trus . . . . . .879.0 Scottish Mortgage . . . .470.2 Sequoia Economic . . . . .111.0 Syncona Limited N . . . .213.5 Temple Bar Inv Tr . . . .1320.0 Templeton Emergin . . .815.0 The Renewables In . . . .108.4 TR Property Inv T . . . . .395.5 Vietnam Enterpris . . . .474.0 Witan Inv Trust . . . . . .1106.0 Woodford Patient . . . . .83.2 Worldwide Healthc . .2600.0

-2.0 1386.0 1106.0 5.0 768.0 645.0 14.0 911.0 701.0 4.0 753.0 647.0 -15.0 3008.0 2625.0 2.5 443.0 393.4 1.0 779.5 686.0 15.0 1415.0 1222.0 2.5 257.0 176.8 1.0 233.5 185.0 3.0 777.0 647.0 5.0 668.0 542.0 -0.4 133.0 118.8 4.0 745.0 605.0 -0.4 126.5 116.7 -10.0 1306.0 1188.0 5.0 1200.0 881.5 1.5 174.6 150.7 0.8 166.6 149.6 -1.8 140.2 117.2 2.5 416.0 359.6 3.0 917.0 695.0 4.0 785.0 609.0 -4.0 794.0 553.5 5.0 2210.0 1719.0 6.0 816.0 588.5 0.0 1307.0 1135.0 -0.1 100.2 93.0 0.5 408.5 356.0 0.0 1250.0 959.0 0.0 41580.039270.0 8.0 1197.0 859.5 -2.0 2005.0 1815.0 -6.0 1370.0 1204.0 3.0 891.0 763.0 4.2 471.9 336.0 -1.0 114.5 106.1 -2.0 216.5 128.0 4.0 1335.0 1210.0 6.0 817.0 610.0 0.2 112.2 102.8 0.5 405.0 286.0 4.0 477.0 303.0 8.0 1109.8 903.5 -0.3 106.0 82.0 30.0 2679.0 2117.0

BATS UK 250

DOW JONES

18789.33 5.86

26071.72 53.91

Price Chg High Low Arrow Global Grou . . . .429.0 6.0 470.5 292.5 Ashmore Group . . . . . .425.2 2.0 431.6 290.4 Brewin Dolphin Ho . . . .382.0 2.0 393.0 301.7 Charles Taylor . . . . . . . .285.0 4.0 290.0 205.4 Charter Court Fin . . . . .308.5 8.5 311.5 228.8 City of London In . . . . .439.0 0.0 439.0 350.0 CMC Markets . . . . . . . . .156.0 0.0 175.5 109.0 Coats Group . . . . . . . . . .78.6 -1.0 90.0 52.0 Hargreaves Lansdo . . .1928.0 8.5 1935.0 1266.0 IG Group Holdings . . . .788.0 14.0 792.5 491.9 Intermediate Capi . . . .1122.0 -3.0 1178.0 684.0 International Per . . . . .208.0 0.2 222.0 157.5 Investec . . . . . . . . . . . .544.4 -0.4 627.5 461.4 IP Group . . . . . . . . . . . . .134.6 0.8 194.7 112.5 John Laing Group . . . . .288.6 -1.0 317.8 252.0 Jupiter Fund Mana . . . .590.8 4.8 631.4 393.4 Liontrust Asset M . . . . .564.0 -6.0 578.0 380.9 LMS Capital . . . . . . . . . . .47.2 -0.5 57.1 41.3 London Finance & . . . . .44.5 0.0 46.0 42.0 London Stock Exch . . .3751.0 56.0 3983.0 3010.0 Man Group . . . . . . . . . . .214.7 1.2 215.2 125.1 OneSavings Bank . . . . .406.4 6.0 470.3 317.3 Paragon Banking G . . .493.0 -2.0 512.0 400.0 Provident Financi . . . . .698.2 -13.6 3265.0 589.5 Rathbone Brothers . . .2716.0 -2.0 2800.0 2031.0 Real Estate Credi . . . . . .170.0 0.0 175.0 159.9 Record . . . . . . . . . . . . . . .42.4 -0.6 52.5 36.3 S&U . . . . . . . . . . . . . . .2315.0 -25.0 2420.0 1883.5 Sanne Group . . . . . . . . .731.0 -19.0 830.0 592.5 Schroders . . . . . . . . . .3723.0 18.0 3743.0 2901.0 TP ICAP . . . . . . . . . . . . .542.0 4.2 544.8 437.0 VPC Specialty Len . . . . . .81.0 0.1 83.0 74.3 Walker Crips Grou . . . . . .41.5 0.0 48.5 38.5 Xafinity . . . . . . . . . . . . . .191.5 6.5 194.0 152.3

Price Chg High Low Smurfit Kappa Gro . . .2600.0 34.0 2638.0 1962.0 Vesuvius . . . . . . . . . . . .607.5 -0.5 619.5 439.3

FIXED LINE TELECOMS

easyJet . . . . . . . . . . . . . . . . . . .1584.5 Sophos Group . . . . . . . . . . . . . .654.5 Hochschild Mining . . . . . . . . . . .244.9 Renishaw . . . . . . . . . . . . . . . . .5690.0 InterContinental H . . . . . . . . . .4928.0 NMC Health . . . . . . . . . . . . . . .3280.0 Domino's Pizza Gro . . . . . . . . . .354.5 Cobham . . . . . . . . . . . . . . . . . . . .135.5 Telecom Plus . . . . . . . . . . . . . . .1184.0 Rentokil Initial . . . . . . . . . . . . . . .316.1

BT Group . . . . . . . . . . . .264.1 -2.9 387.2 243.8 TalkTalk Telecom . . . . . .137.8 -0.8 218.0 131.6 Telecom Plus . . . . . . . .1184.0 28.0 1321.0 1069.0

FOOD & DRUG RETAILERS Booker Group . . . . . . . .226.4 Greggs . . . . . . . . . . . . .1315.0 Morrison (Wm) Sup . . .229.0 Ocado Group . . . . . . . . .413.0 Sainsbury (J) . . . . . . . .258.0 SSP Group . . . . . . . . . . .645.0 Tesco . . . . . . . . . . . . . . .207.8 UDG Healthcare Pu . . . .794.0

-1.7 7.0 0.2 -2.0 0.3 1.5 -1.9 4.5

233.2 1399.0 252.9 437.8 281.7 687.5 214.4 959.0

182.7 964.5 207.0 238.5 224.8 390.6 166.5 635.0

-5.0 -4.0 0.0 1.3 -18.0 0.6 88.0

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

FOOD PRODUCERS Associated Britis . . . . .2750.0 Cranswick . . . . . . . . . .3170.0 Dairy Crest Group . . . . .571.5 Greencore Group . . . . . .225.1 Purecircle Limite . . . . . .423.5 Tate & Lyle . . . . . . . . . . .671.8 Unilever . . . . . . . . . . . .4108.0

FORESTRY & PAPER Mondi . . . . . . . . . . . . . .1971.5 32.5 2130.0 1693.0

GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .139.1 National Grid . . . . . . . .830.5 Pennon Group . . . . . . . .741.2 Severn Trent . . . . . . . .2024.0 United Utilities . . . . . . .768.2

-2.0 -0.1 2.8 3.0 -3.0

235.8 1091.0 944.0 2553.0 1056.0

137.3 827.2 735.2 2010.0 763.0

FINANCIAL SERVICES

GENERAL INDUSTRIALS

3i Group . . . . . . . . . . . .934.0 -7.4 969.5 687.5 3i Infrastructure . . . . . .205.5 1.5 214.5 187.0 Allied Minds . . . . . . . . . .163.4 6.2 418.0 116.0

RPC Group . . . . . . . . . . .815.2 10.4 1003.3 720.5 Smith (DS) . . . . . . . . . . .510.6 -4.0 558.5 418.8 Smiths Group . . . . . . . .1673.5 3.0 1685.0 1444.0

GENERAL RETAILERS Auto Trader Group . . . .349.9 3.0 B&M European Valu . . .413.8 -0.8 Brown (N.) Group . . . . .269.4 -2.6 Card Factory . . . . . . . . .202.6 -7.8 Dignity . . . . . . . . . . . . .962.0-954.0 Dixons Carphone . . . . .188.0 -7.0 Dunelm Group . . . . . . .637.0 -0.5 Halfords Group . . . . . . .348.4 -2.6 Inchcape . . . . . . . . . . . .749.0 4.0 JD Sports Fashion . . . . .376.8 -0.2 Just Eat . . . . . . . . . . . . .801.8 6.8 Kingfisher . . . . . . . . . . .336.1 -7.9 Marks & Spencer G . . . .304.0 -2.2 Next . . . . . . . . . . . . . .4898.0 -82.0 Pets at Home Grou . . . .178.8 -0.2 Saga . . . . . . . . . . . . . . . .117.8 -2.0 Sports Direct Int . . . . . .374.0 -1.0 Ted Baker . . . . . . . . . .2980.0 8.0 WH Smith . . . . . . . . . .2158.0 18.0

435.9 319.0 423.6 293.4 357.8 200.6 355.0 200.4 2767.0 874.5 348.9 149.1 753.5 545.0 385.0 307.4 880.5 704.0 456.0 303.3 824.0 496.0 368.1 288.0 395.5 297.8 5320.0 3617.0 219.5 154.9 215.3 115.5 419.5 284.0 3118.0 2320.0 2347.0 1480.0

HEALTH CARE EQUIPMETN & S. Assura . . . . . . . . . . . . . . .61.8 0.5 66.7 51.8 Convatec Group . . . . . . .187.0 -3.5 344.0 182.0 Mediclinic Intern . . . . . .607.0 0.8 887.0 507.5

Price Rotork . . . . . . . . . . . . . .300.1 Spirax-Sarco Engi . . .5800.0 Weir Group . . . . . . . . .2146.0

S&P 500

/€ 1.1316

0.0032 €/$ 1.2263

0.0021

7336.38 40.33

2810.30 12.27

/$ 1.3883

0.0009 €/£ 0.8831

0.0024

/¥ 153.64

0.5913 €/¥ 135.72

0.2084

Chg High Low -1.6 609.5 496.4 1.2 145.6 108.7 -1.1 294.0 194.7 -2.8 1208.5 917.0 1.0 188.4 146.3 0.1 40.5 33.9 3.2 587.6 435.7 2.0 1055.0 873.0 -0.6 151.4 137.2 3.0 813.0 571.5 -1.0 1016.0 742.5

Price Mitchells & Butle . . . . . .265.2 National Express . . . . . .371.8 Paddy Power Betfa . .8450.0 Rank Group . . . . . . . . . .240.5 Stagecoach Group . . . . .159.9 Thomas Cook Group . . .127.9 TUI AG Reg Shs (D . . . .1631.5 Wetherspoon (J.D. . . .1279.0 Whitbread . . . . . . . . .4005.0 William Hill . . . . . . . . . .336.3 Wizz Air Holdings . . . .3511.0

Chg High Low 2.2 283.1 221.0 0.4 386.8 334.7 40.0 8900.0 6665.0 0.5 248.5 192.9 -2.7 217.5 154.3 -1.0 129.9 84.1 28.5 1631.5 1068.0 4.0 1292.8 929.0 17.0 4307.0 3512.0 2.4 338.0 240.0 26.0 3700.0 1560.0

62.0 -4.0 -6.0 0.0 -4.0 0.0 9.0 1.0 18.0

Abcam . . . . . . . . . . . . .1158.0 3.0 1174.0 795.0 Advanced Medical . . . .322.5 0.5 350.0 199.5 ASOS . . . . . . . . . . . . . .6792.0 78.0 6894.0 5119.0 Blue Prism Group . . . .1216.0 76.0 1639.0 395.0 Brooks Macdonald . . .1967.5 47.5 2582.0 1810.0 Camellia . . . . . . . . . .12550.0 0.0 12725.010070.0 CareTech Holding . . . . .404.0 -21.0 454.8 342.5 CityFibre Infrast . . . . . . . .57.0 0.0 70.0 39.5 Clinigen Group . . . . . .1059.0 9.0 1177.0 758.0 Conviviality . . . . . . . . . .347.0 -3.0 426.3 251.0 CVS Group . . . . . . . . . . .1174.0 -94.0 1490.0 855.0 Dart Group . . . . . . . . . . .677.5 3.5 719.0 483.8 EMIS Group . . . . . . . . . .784.0 17.0 1017.0 767.0 Faroe Petroleum . . . . . . .111.2 -2.2 114.4 75.5 Fevertree Drinks . . . . .2384.0 212.0 2569.0 1115.0 First Derivatives . . . . .4220.0 40.0 4360.0 2112.0 Frontier Developm . . .1420.0 25.0 1510.0 276.5 Gamma Communicati .664.0 26.0 694.0 463.0 GB Group . . . . . . . . . . . .413.0 -9.5 455.0 277.5 Gooch & Housego . . . .1485.0 2.5 1539.0 1050.0 Hurricane Energy . . . . . .37.2 -0.1 67.0 24.0 Iomart Group . . . . . . . .384.5 -3.5 410.0 285.5 IQE . . . . . . . . . . . . . . . . .130.1 6.0 178.8 38.8 James Halstead . . . . . . .431.0 -5.0 542.0 421.3 Johnson Service G . . . . .139.0 -0.4 151.0 108.3 Keywords Studios . . . .1454.0 28.0 1661.0 510.0 Learning Technolo . . . . .74.8 3.8 75.0 40.0 M&C Saatchi . . . . . . . . .380.0 -10.0 402.0 292.0 M. P. Evans Group . . . . .783.0 -2.0 819.8 635.0 Midwich Group . . . . . . .640.0 22.5 670.0 288.0 Mulberry Group . . . . . .994.0 2.0 1149.0 954.0 Next Fifteen Comm . . .425.0 -5.0 455.0 321.5 Nichols . . . . . . . . . . . . .1510.0 5.0 1958.0 1420.0 Numis Corporation . . . .336.5 0.0 342.0 231.3 Pan African Resou . . . . . .13.2 -0.4 18.0 12.5 Patisserie Holdin . . . . .383.0 1.0 396.5 300.5 Polar Capital Hol . . . . . .516.0 -2.0 558.0 329.3 Purplebricks Grou . . . . .424.4 3.6 514.5 155.5 Redde . . . . . . . . . . . . . .174.0 3.0 182.0 144.3 Renew Holdings . . . . .440.0 0.0 485.0 410.0 RWS Holdings . . . . . . .440.0 -10.5 539.0 310.0 Scapa Group . . . . . . . . .470.4 -2.6 515.5 318.8 Secure Income Rei . . . .368.0 -1.0 380.0 315.3 Smart Metering Sy . . . .805.0 -3.0 874.5 479.5 Sound Energy . . . . . . . . .53.6 -2.4 93.5 39.8 Staffline Group . . . . . .1000.0 2.0 1450.0 976.0 Telford Homes . . . . . . .426.0 -3.0 444.5 316.8 Thorpe (F.W.) . . . . . . . .346.5 2.0 396.5 294.8 Watkin Jones . . . . . . . .208.5 1.5 249.0 128.5 Young & Co's Brew . . .1350.0 2.5 1405.0 1300.0 Young & Co's Brew . . .1090.0 0.0 1124.0 978.0

INDUSTRIAL METALS & MINING Evraz . . . . . . . . . . . . . . .392.8 4.4 397.0 173.2 Ferrexpo . . . . . . . . . . . .310.2 6.5 323.2 130.1

INDUSTRIAL TRANSPORTATION 369.0 279.5 3165.0 2206.0 1761.0 1437.0 467.2 369.9 303.2 172.8

NON LIFE INSURANCE Admiral Group . . . . . . .1878.0 Beazley . . . . . . . . . . . . .525.0 Direct Line Insur . . . . . .373.4 esure Group . . . . . . . . .245.0 Hastings Group Ho . . . .306.6 Hiscox Limited (D . . . .1423.0 Jardine Lloyd Tho . . . .1426.0 Lancashire Holdin . . . . .656.5 RSA Insurance Gro . . . .626.2

2.5 3.0 0.1 0.0 -0.4 6.0 2.0 -2.0 2.0

2178.0 534.5 411.3 303.0 325.0 1470.0 1448.0 759.5 666.5

1732.0 392.9 333.8 200.4 220.4 997.5 1001.0 611.0 562.5

% 4.7 2.8 2.8 2.7 2.6 2.6 2.6 2.5 2.4 2.4

LIFE INSURANCE Aviva . . . . . . . . . . . . . . .534.8 2.6 544.0 470.6

Fallers % Dignity . . . . . . . . . . . . . . . . . . . .962.0 -49.8 Kier Group . . . . . . . . . . . . . . . . .994.0 -4.5 Cineworld Group . . . . . . . . . . . . .513.5 -4.4 Capita . . . . . . . . . . . . . . . . . . . . .363.2 -4.2 Purecircle Limited . . . . . . . . . . .423.5 -4.1 Card Factory . . . . . . . . . . . . . . . .202.6 -3.7 Dixons Carphone . . . . . . . . . . . .188.0 -3.6 Babcock Internatio . . . . . . . . . . .714.0 -3.3 Ultra Electronics . . . . . . . . . . . .1450.0 -3.1 Sanne Group . . . . . . . . . . . . . . . .731.0 -2.5

Price Chg High Low NMC Health . . . . . . . . .3280.0 82.0 3298.0 1616.0 Smith & Nephew . . . . .1245.0 14.5 1431.0 1170.0 Spire Healthcare . . . . .249.2 -4.6 361.0 221.5

HHOLD GDS & HOME CONSTR. Barratt Developme . . . .615.2 2.2 Bellway . . . . . . . . . . . .3521.0 16.0 Berkeley Group Ho . . .4221.0 72.0 Bovis Homes Group . . .1132.0 2.5 Countryside Prope . . . .338.8 2.2 Crest Nicholson H . . . . .524.5 -0.5 McCarthy & Stone . . . . .145.2 0.3 Persimmon . . . . . . . . .2634.0 13.0 Reckitt Benckiser . . . .6913.0 120.0 Redrow . . . . . . . . . . . . .640.0 6.0 Taylor Wimpey . . . . . . .198.0 1.3

700.0 471.1 3792.0 2457.0 4240.0 2787.0 1213.0 755.0 371.5 223.9 636.5 486.1 196.9 144.6 2890.0 1886.0 8108.0 6355.0 664.5 433.8 211.2 165.1

INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . .992.0 Hill & Smith Hold . . . .1294.0 IMI . . . . . . . . . . . . . . . .1407.0 Melrose Industrie . . . . .232.9 RHI Magnesita N.V . . .4339.0

9.0 -9.0 -1.0 -2.8 19.0

1006.0 633.0 1475.0 1096.0 1443.0 1082.0 261.2 195.3 4397.0 3249.0

Price Rightmove . . . . . . . . .4458.0 Sky . . . . . . . . . . . . . . . .1002.0 STV Group . . . . . . . . . . .316.5 Tarsus Group . . . . . . . . .321.0 Trinity Mirror . . . . . . . . . .76.3 UBM . . . . . . . . . . . . . . .899.0 WPP . . . . . . . . . . . . . . .1383.5 ZPG Plc . . . . . . . . . . . . .338.6

Chg High Low 67.0 4573.0 3889.0 2.0 1023.0 900.0 0.0 389.8 310.7 2.0 334.0 260.5 1.3 121.0 67.0 -0.5 914.0 645.0 10.5 1921.0 1253.0 3.4 394.0 321.7

MINING Acacia Mining . . . . . . . .192.4 Anglo American . . . . .1756.0 Antofagasta . . . . . . . . .993.8 BHP Billiton . . . . . . . . .1613.8 Centamin (DI) . . . . . . . .161.3 Fresnillo . . . . . . . . . . . .1403.5 Glencore . . . . . . . . . . . .407.2 Hochschild Mining . . . .244.9 Kaz Minerals . . . . . . . . .930.0 Polymetal Interna . . . .878.2 Randgold Resource . . .7172.0 Rio Tinto . . . . . . . . . . .4016.5 Vedanta Resources . . . .891.0

4.1 -4.8 -4.6 18.0 0.9 28.5 -0.1 6.7 10.0 9.2 96.0 7.0 -1.6

541.0 157.8 1783.6 959.4 1061.0 748.0 1660.0 1117.0 190.5 131.8 1725.0 1260.0 410.4 276.6 331.6 219.1 965.8 410.3 1095.0 803.5 8190.0 6420.0 4172.5 2910.0 1102.0 575.0

MOBILE TELECOMS Inmarsat . . . . . . . . . . . .502.4 -2.4 850.5 440.9 Vodafone Group . . . . . .225.8 -0.2 238.0 192.5

MAIN CHANGES UK 350 Risers

Price Chg High Low Just Group . . . . . . . . . . .158.0 Legal & General G . . . . .276.2 Old Mutual . . . . . . . . . . .237.5 Phoenix Group Hol . . . .795.5 Prudential . . . . . . . . . .1981.0 St James's Place . . . . .1270.5 Standard Life Abe . . . . .437.7

0.3 -1.2 1.0 4.0 1.5 14.0 -0.5

170.4 278.3 237.5 798.5 1992.5 1279.5 447.1

121.5 232.8 188.0 723.0 1532.0 1030.0 345.0

MEDIA 4Imprint Group . . . . . .1980.0 Ascential . . . . . . . . . . . .377.0 Bloomsbury Publis . . . .188.0 Centaur Media . . . . . . . .50.3 Entertainment One . . . .318.6 Euromoney Institu . . .1166.0 Gocompare.com Gro . . .116.4 Haynes Publishing . . . .195.0 Huntsworth . . . . . . . . . .83.8 Informa . . . . . . . . . . . . .701.8 ITE Group . . . . . . . . . . . .174.8 ITV . . . . . . . . . . . . . . . . .165.0 Johnston Press . . . . . . . . .10.1 Moneysupermarket. . . .345.4 Pearson . . . . . . . . . . . .688.0 Relx plc . . . . . . . . . . . .1646.5

0.0 0.2 2.0 -0.8 -1.4 -6.0 0.4 0.0 1.3 -8.8 0.6 -0.5 0.1 3.4 8.8 23.0

2020.0 391.0 191.5 57.0 329.4 1305.0 116.9 215.0 86.8 761.0 195.3 219.6 27.6 366.5 750.0 1782.0

1550.0 286.1 157.3 40.5 216.0 1027.0 76.0 122.5 37.3 629.5 151.8 146.9 9.5 314.9 566.5 1398.0

OIL & GAS PRODUCERS BP . . . . . . . . . . . . . . . . .509.9 Cairn Energy . . . . . . . . . .211.8 Royal Dutch Shell . . . . .2517.0 Royal Dutch Shell . . . .2560.0 Tullow Oil . . . . . . . . . . . .212.6

-6.6 -3.8 -3.0 -9.5 -5.5

534.8 439.8 242.0 167.5 2573.5 1992.5 2609.0 2052.5 260.2 145.6

OIL EQUIPMENT & SERVICES Hunting . . . . . . . . . . . .645.0 6.5 648.0 382.6 Petrofac Ltd. . . . . . . . . .547.8 4.2 946.0 349.0 Wood Group (John) . . .664.0 -7.2 865.0 560.0

PERSONAL GOODS Burberry Group . . . . . .1596.5 8.0 1985.0 1566.0 PZ Cussons . . . . . . . . . .330.6 1.6 363.7 299.7 Superdry . . . . . . . . . . .1822.0 1.0 2076.0 1446.0

PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .5043.0 62.5 BTG . . . . . . . . . . . . . . . . .747.0 14.0 Dechra Pharmaceut . .2040.0 22.0 Genus . . . . . . . . . . . . .2484.0 -44.0 GlaxoSmithKline . . . . .1358.0 4.8 Hikma Pharmaceuti . . .982.0 -13.0 Indivior . . . . . . . . . . . . .401.0 4.0 Shire Plc . . . . . . . . . . . .3461.0 8.5 Vectura Group . . . . . . . . .111.8 0.0

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 3452.5 163.0 90.0

REAL ESTATE INVEST. & SERV.

SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . . .2902.0 Computacenter . . . . . .1164.0 FDM Group (Holdin . . . .974.0 Fidessa Group . . . . . . .2450.0 Micro Focus Inter . . . . .2154.0 Playtech . . . . . . . . . . . .799.4 Sage Group . . . . . . . . . .818.6 Softcat . . . . . . . . . . . . . .517.0 Sophos Group . . . . . . . .654.5

AB INBEV .........................................................94.36 ADIDAS N........................................................182.80 AIR LIQUIDE....................................................109.00 AIRBUS.............................................................92.79 ALLIANZ .........................................................205.45 ASML HLDG.....................................................166.90 AXA...................................................................27.34 BANCO SANTANDER ...........................................5.93 BASF N..............................................................97.67 BAYER N .........................................................104.08 BBVA ..................................................................7.40 BMW ................................................................94.68 BNP PARIBAS BR-A..........................................66.95 CRH PLC .............................................................0.00 DAIMLER N ........................................................75.01 DANONE ..........................................................70.39 DEUTSCHE BANK N............................................15.33 DEUTSCHE POST N............................................40.96 DEUTSCHE TELEKOM N.......................................14.43 E.ON N................................................................8.92 ENEL N................................................................5.39 ENGIE................................................................14.42 ENI N.................................................................14.83 ESSILOR INTL....................................................112.05 FRESENIUS.........................................................67.14 IBERDROLA........................................................6.68 INDITEX ...........................................................28.56 ING GROUP .......................................................16.45 INTESA SANPAOLO N..........................................3.09 KON AH DEL BR.................................................18.82 L'OREAL...........................................................185.80 LVMH..............................................................240.95 MUENCHENER RUECKV N.................................192.25 NOKIA.................................................................3.97 ORANGE............................................................14.45 ROY.PHILIPS......................................................33.59 SAFRAN ............................................................91.26 SAINT-GOBAIN...................................................48.11 SANOFI .............................................................72.95 SAP I ................................................................92.30 SCHNEIDER E.SE ...............................................75.64 SIEMENS N.......................................................123.70 SOCIETE GENERALE...........................................45.33 TELEFONICA........................................................8.26 TOTAL................................................................47.29 UNIBAIL-RODAMCO........................................203.00 UNILEVER CERT.................................................47.07 VINCI ................................................................87.76 VIVENDI............................................................23.64 VOLKSWAGEN VZ I...........................................183.72

AIM 50 2928.0 1192.0 1031.0 2640.0 2871.6 1016.0 824.0 548.5 655.5

1863.0 715.0 582.0 2041.0 2139.0 768.0 599.0 295.5 260.9

SUPPORT SERVICES AA . . . . . . . . . . . . . . . . . .151.2 -2.8 Aggreko . . . . . . . . . . . .809.0 -5.2 Ashtead Group . . . . . .2136.0 2.0 Babcock Internati . . . . .714.0 -24.0 BCA Marketplace . . . . . .197.6 -1.6 Bunzl . . . . . . . . . . . . . .2028.0 1.0 Capita . . . . . . . . . . . . . .363.2 -15.8 DCC . . . . . . . . . . . . . . .7545.0 -90.0 Diploma . . . . . . . . . . . .1215.0 9.0 Electrocomponents . . . .621.6 2.4 Equiniti Group . . . . . . . .274.0 5.5 Essentra . . . . . . . . . . . .507.0 -2.5 Experian . . . . . . . . . . .1668.0 22.5 Ferguson . . . . . . . . . . .5624.0 0.0 G4S . . . . . . . . . . . . . . . . .291.3 3.3 Grafton Group Uni . . . .800.5 -6.5 Hays . . . . . . . . . . . . . . . .201.0 1.3 Homeserve . . . . . . . . . .829.5 13.5 Howden Joinery Gr . . . .447.9 -8.3 Intertek Group . . . . . .5274.0 50.0 Mitie Group . . . . . . . . . .192.7 0.6 Pagegroup . . . . . . . . . .532.0 2.0 Renewi . . . . . . . . . . . . .106.4 -0.6 Rentokil Initial . . . . . . . .316.1 7.3 Serco Group . . . . . . . . . . .97.2 -2.1 SIG . . . . . . . . . . . . . . . . .167.0 -0.8 Travis Perkins . . . . . . .1492.0 -23.5

272.6 149.5 1064.0 758.0 2146.0 1542.0 969.5 654.5 227.0 176.0 2465.0 2005.0 705.5 361.7 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 4460.0 341.1 246.2 841.0 579.5 201.6 147.2 867.0 523.0 475.7 373.0 5425.0 3392.0 297.2 187.3 549.5 417.0 108.2 80.0 335.8 219.1 148.4 90.6 182.0 102.8 1696.0 1408.0

TOBACCO British American . . . .5062.0 112.0 5643.0 4565.0 Imperial Brands . . . . .3016.0 -1.5 3933.5 3003.0

TRAVEL & LEISURE

Capital & Countie . . . . .296.7 1.3 CLS Holdings . . . . . . . . .235.0 2.0 Daejan Holdings . . . .6030.0 -60.0 F&C Commercial Pr . . . .141.2 0.6 Grainger . . . . . . . . . . . .282.4 0.8 NewRiver REIT . . . . . . . .318.0 0.5 Safestore Holding . . . . .487.6 8.0 Savills . . . . . . . . . . . . . .992.5 8.5 St. Modwen Proper . . .402.4 4.6 UK Commercial Pro . . . . .91.2 0.6

324.8 253.1 1989.0 190.2 7005.0 5700.0 151.8 134.5 291.1 234.2 366.2 299.5 499.6 353.4 1003.0 767.0 407.8 311.0 92.5 80.9

REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .841.5 British Land Comp . . . .680.0 Derwent London . . . . .2961.0 Great Portland Es . . . . .652.0

Price Hammerson . . . . . . . . .499.0 Hansteen Holdings . . . .140.7 Intu Properties . . . . . . .228.9 Land Securities G . . . . .990.2 LondonMetric Prop . . . .181.0 RDI Reit . . . . . . . . . . . . . .36.3 SEGRO . . . . . . . . . . . . . .579.2 Shaftesbury . . . . . . . .1008.0 Tritax Big Box Re . . . . . .148.4 Unite Group . . . . . . . . .794.0 Workspace Group . . . .985.0

2.5 0.8 -12.0 -1.0

869.5 691.5 3118.0 703.7

668.0 579.0 2451.0 587.5

888 Holdings . . . . . . . . .282.4 Carnival . . . . . . . . . . . .4975.0 Cineworld Group . . . . . .513.5 Compass Group . . . . . .1527.0 Domino's Pizza Gr . . . . .354.5 easyJet . . . . . . . . . . . .1584.5 FirstGroup . . . . . . . . . . .109.3 Go-Ahead Group . . . . .1595.0 Greene King . . . . . . . . . .521.4 GVC Holdings . . . . . . . .938.0 InterContinental . . . .4928.0 International Con . . . . .658.4 Ladbrokes Coral G . . . . .182.5 Marston's . . . . . . . . . . . .114.2 Merlin Entertainm . . . .350.6 Millennium & Copt . . . .545.0

EU SHARES Price

17

NASDAQ

Chg High Low -2.9 304.5 223.5 45.0 5920.0 4288.0 -15.0 2305.0 1727.0

BBA Aviation . . . . . . . .368.0 4.4 Clarkson . . . . . . . . . . .3140.0 -10.0 Fisher (James) & . . . .1552.0 -36.0 Royal Mail . . . . . . . . . . .464.2 1.0 Stobart Group Ltd . . . . .262.5 -1.0

MARKETS

2.8 33.0 -23.5 17.5 8.8 71.5 0.2 -7.0 -2.6 13.5 124.0 10.6 1.7 -1.7 3.6 -6.0

300.5 218.0 5380.0 4105.0 740.0 512.0 1760.2 1449.9 394.0 263.4 1587.0 914.5 153.0 101.0 2308.0 1485.0 766.0 508.5 982.0 594.0 4944.0 3668.0 670.0 472.6 188.0 111.3 146.1 101.4 537.0 346.2 625.5 410.2

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

US SHARES

Chg

High

Low

Price

Chg

High

Low

0.23 11.80 -0.80 2.39 2.05 0.30 0.08 0.03 1.52 0.60 0.02 1.61 0.32 0.00 0.49 0.97 0.15 0.78 0.00 0.04 0.04 -0.02 -0.12 1.95 2.02 0.03 0.23 -0.00 -0.01 0.17 2.40 2.20 0.60 0.01 -0.01 0.75 0.08 0.26 0.58 1.12 0.44 0.70 0.20 0.04 -0.30 0.00 0.74 0.36 0.38 3.76

110.10 202.10 111.60 92.88 205.75 168.15 27.56 6.20 98.80 123.90 7.93 94.81 69.17 34.87 75.28 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 3.11 20.88 197.15 260.55 199.00 5.96 15.80 36.12 92.36 52.40 92.97 100.70 76.06 133.50 52.26 10.63 48.75 238.15 52.31 88.80 24.87 185.74

92.50 142.60 90.27 62.46 154.25 112.00 21.81 4.82 78.97 100.70 5.92 77.07 53.96 28.22 59.01 56.48 13.11 30.52 14.36 6.70 3.82 10.77 12.94 100.60 60.15 5.52 28.21 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 41.11 202.00 37.23 64.74 15.96 124.75

3M...................................................................248.18 ABBVIE...........................................................104.64 ACCENTURE-A..................................................161.75 ALPHAB NON VTG RG-C..................................1137.51 ALPHABET RG-A............................................1143.50 ALTRIA GROUP...................................................71.12 AMAZON.COM ...............................................1294.58 AMERICAN EXPRESS ........................................98.03 AMGEN ...........................................................189.28 APPLE.............................................................178.46 AT&T ..................................................................37.21 BANK OF AMERICA............................................31.72 BERKSHIRE HATH RG-B...................................213.25 BOEING CO ......................................................337.73 CATERPILLAR ...................................................170.41 CHEVRON ........................................................131.30 CISCO SYSTEMS .................................................41.29 CITIGROUP .......................................................78.30 COCA-COLA CO...................................................47.16 COMCAST-A......................................................42.50 DOWDUPONT....................................................76.01 EXXON MOBIL....................................................87.15 FACEBOOK-A ...................................................181.29 GENERAL ELECTRIC ...........................................16.26 GOLDMAN SACHS GR ......................................256.12 HOME DEPOT...................................................201.33 HONEYWELL INTL ...........................................158.69 IBM..................................................................162.37 INTEL................................................................44.82 JOHNSON & JOHNSO.......................................147.36 JPMORGAN CHASE ...........................................113.01 MASTERCARD RG-A........................................166.83 MCDONALD'S ...................................................176.12 MERCK..............................................................61.28 MICROSOFT......................................................90.00 NIKE -B-............................................................67.21 NVIDIA.............................................................230.11 ORACLE............................................................50.58 PEPSICO ...........................................................118.61 PFIZER .............................................................36.94 PHILIP MRRS INT ............................................108.92 PROCTER&GAMBLE...........................................91.07 TRAVLR COMP..................................................137.85 TWITTER...........................................................23.66 UNITEDHEALTH GRO.......................................243.35 UTD TECHNOLOGIES........................................135.90 VERIZON COMM .................................................51.91 VISA RG-A ......................................................122.70 WAL-MART STORES ........................................104.59 WALT DISNEY RG-DIS......................................110.59 WELLS FARGO..................................................64.22

2.27 0.83 0.81 7.72 7.53 1.09 1.26 -1.83 1.69 -0.80 0.06 0.24 0.06 -2.43 1.58 -0.29 -0.01 0.91 0.28 0.65 -0.02 -0.28 1.49 -0.51 5.15 3.00 0.91 -6.75 0.34 0.44 -0.25 1.35 1.55 0.15 -0.10 3.10 5.67 0.35 0.56 -0.05 3.85 0.89 0.51 -0.38 0.19 1.29 0.36 -0.41 0.29 0.17 0.27

249.00 104.87 162.50 1139.91 1148.88 77.79 1339.94 102.39 191.10 180.10 42.70 31.79 215.78 352.23 173.24 133.88 41.52 78.44 47.48 42.71 0.00 88.21 188.90 30.90 262.14 201.33 159.85 182.79 47.64 148.32 114.34 166.95 176.64 66.80 90.79 67.24 231.09 53.14 119.74 37.37 123.55 94.67 137.99 25.85 244.35 137.73 53.69 123.65 104.94 116.10 64.31

173.55 59.27 112.31 790.52 812.05 60.01 803.00 75.39 150.38 119.37 32.55 22.07 158.61 157.29 90.34 102.55 29.92 55.23 40.22 34.78 0.00 76.05 126.78 16.02 209.62 134.60 116.98 139.13 33.23 110.76 81.64 104.01 119.82 53.63 62.20 50.35 95.17 39.43 101.06 30.90 94.07 85.42 113.76 14.12 156.49 106.85 42.80 81.50 65.28 96.20 49.27

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GET THE MORNING UPDATE, CITY A.M.’S DAILY EMAIL CITYAM.COM/NEWSLETTER COMMODITIES Gold............................................................1332.20 Silver...............................................................17.04 Brent Crude....................................................69.31 Krugerrand.................................................1347.90 Palladium...................................................1106.00 Platinum.....................................................999.00 Tin Cash Official.......................................19850.00 Lead Cash Official......................................2495.00 Zinc Cash Official.......................................3308.00

-3.45 -0.05 -0.07 -13.40 2.00 -2.00 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.............................................1931.00 Coffee 'C' Futures ...........................................121.17 Feed Wheat Futures....................................140.70 Soybeans Futures Continuation Contract ...977.20

-59.50 -5.00 165.00 0.00 -53.00 0.14 3.20 4.10

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..............................-0.442 LIBOR Euro - 12 months.............................-0.262 LIBOR USD - overnight .................................1.438 LIBOR USD - 12 months................................2.228 Halifax mortgage rate ................................3.990

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Euro Base Rate ...........................................0.000 Finance house base rate .............................1.000 US Fed funds...................................................1.41 US long bond yield ........................................2.91 Euro Euribor...............................................-0.378 The vix index.................................................11.27 The baltic dry index..................................1125.00 Markit iBoxx EUR .......................................229.16 Markit iBoxx GBP.......................................322.68 Markit iTraxx................................................69.48

0.00 0.00 0.00 0.01 0.00 -0.95 -14.00 0.15 -0.11 -0.78

WORLD INDICES Price Chg %chg FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7730.79 29.83 0.39 FTSE 250. . . . . . . . . . . . . . . . . . . . 20653.32 -11.70 -0.06 FTSE All-Share . . . . . . . . . . . . . . . . 4240.50 12.64 0.30 FTSE AIM All-Share. . . . . . . . . . . . . 1067.89 4.02 0.38

Price Chg %chg S&P 500 . . . . . . . . . . . . . . . . . . . . . 2810.30 12.27 0.44 Dow Jones I.A. . . . . . . . . . . . . . . . 26071.72 53.91 0.21 Nasdaq Composite . . . . . . . . . . . . 7336.38 40.33 0.55 Xetra DAX . . . . . . . . . . . . . . . . . . . 13434.45 153.02 1.15

Price CAC 40. . . . . . . . . . . . . . . . . . . . . . . 5526.51 Swiss Market Index . . . . . . . . . . . . 9509.77 ISEQ Overall Index . . . . . . . . . . . . . . 7157.12 FTSEurofirst 300 . . . . . . . . . . . . . . . 1575.68

Chg %chg 31.68 0.58 57.42 0.61 83.75 1.18 9.07 0.58

Price Chg %chg Hang Seng. . . . . . . . . . . . . . . . . . 32254.89 132.95 0.41 Shanghai Composite . . . . . . . . . . . 3487.86 13.11 0.38 Straits Times . . . . . . . . . . . . . . . . . 3550.36 29.05 0.82 ASX All Ordinaries. . . . . . . . . . . . . . 6119.30 -11.10 -0.18


18

OPINION

MONDAY 22 JANUARY 2018

CITYAM.COM

FORUM EDITED BY RACHEL CUNLIFFE

Oxfam would rather make us all poorer than feed the world

I

N THE film Groundhog Day, the protagonist is trapped in an infinite time-loop, constantly repeating the same experiences over and over again, each time hoping it will be the last, yet never seeming to learn the lesson. The 2018 Oxfam report on inequality has been released today with much fanfare, and, just like those before it, rather than discussing actual poverty it focuses on how the current wealth of the world is split between the top one per cent and the rest. In order to solve this supposed crisis, their report also lays out solutions that call for the effective abolition of the modern capitalist economy. There are broadly two different approaches to dealing with poverty in the world we live in, and though the approaches may not be contradictory, often the policies to support them are. Some pursue “growing the pie” as their main goal, emphasising economic growth to lift the incomes of rich and poor alike rather than concern over the gap between them. Others focus on how to “slice the pie”, assuming that the current wealth of the world is all we have and the solution to poverty is to redistribute from the “rich” to the “poor”. It seems odd to me that a charity supposedly created to feed people does not focus on growing the size of the pie as quickly as possible. Instead, Oxfam seems obsessed with pursuing policies that would slow down economic growth and leave us with a smaller pie than we

all might otherwise have had. It would promote a race to the bottom, where we would all indeed be more equal – equally miserable, equally poor, and equally condemned to the sort of non-existent economic growth that was the case before the Industrial Revolution. I, on the other hand, prefer to focus on growing the pie. Capitalism has been the greatest and most effective driver of prosperity and opportunity for the poor in our entire history. As the Industrial Revolution and the first free market revolution got going in 1820, at least 84 per cent of the population of the entire world was below the modern definition of the poverty line (in real terms). They were condemned to powerless, nasty, brutish and short subsistence lives. Even in 1990, more than a third of the world’s population subsisted on less than $1.90 a day. Today, that number is estimated to be below 10 per cent, and more than 1.2bn people have been taken out of extreme poverty in just the past 30 years. The biggest gains have come in China and India, which together account for close to a third of humanity. In the 1980s, half of all Indians lived in absolute poverty. That figure is now down to about 20 per cent. In China, the absolute poverty rate has fallen from 88 per cent to just two per cent. Both countries, admittedly coming late to the free market party, succeeded after they embraced procapitalist reform policies, including cutting taxes, reducing tariffs,

Mark Littlewood

The charity would promote a race to the bottom, where we would all indeed be more equal – equally condemned to non-existent economic growth deregulation, privatising state assets, and welcoming foreign direct investment. While neither China nor India are truly liberal, free market economies in quite the way we would understand the term, they have taken enormous strides in this direction – with impressive results. Across the centuries since the Industrial Revolution and the intro-

duction of the liberal economic policies that spurred it, governments all over the world which cut barriers to businesses, protected private property, and abolished tariffs on international trade succeeded, while those which got in the way failed. In the success stories, freeing trade and business broke apart an old economic model which had seen slow or non-existent economic growth, and replaced it with a vibrant economy where, today, we consider the economy growing at “only” two per cent an annum as a poor result. This does not mean, however, that we should rest on our laurels. Millions remain in grinding poverty, and for them two per cent growth is unacceptably unambitious. More needs to be done to break down trade barriers and to encourage more countries to replicate the radical free market policies that led countries like South Korea, Japan, and more recently China from grinding poverty to great wealth in a single generation. This means advancing property rights and ending corruption in countries like Zimbabwe, privatising state monopolies in Venezuela, and working to abolish trade barriers such as the EU’s Common Agricultural Policy. Charities like Oxfam should be out leading the charge on these issues. But instead of focusing on those who have too little, this report again relentlessly targets those the charity believes have too much. £ Mark Littlewood is director-general of the Institute of Economic Affairs.

London and Israel are working together to advance the industries of the future

I

T LOOKS as though 2018 will be a fast-paced and important year for the UK. This week, I leave for my first overseas visit of the new year, to promote all the UK’s financial and professional services industry has to offer the world. I will be heading to Israel, where I will be promoting London as an innovative and dynamic financial centre. Israel is a trusted friend in the region and a natural partner for British companies. I will meet businesses, regulators and government officials in Tel Aviv to discuss how we can build on the record levels of bilateral cooperation in trade, investment, science and technology. In the past three years alone, Israelis have invested more than £300m into infrastructure projects in the UK. In Jerusalem, I am looking forward to meeting the minister of economy and industry, Eli Cohen,

and the governor of the Bank of Israel, Dr Karnit Flug. We will discuss what a future trading and regulatory relationship between our two countries might look like. Israel is a perfect example of a country with which we should form closer bonds when we leave the EU: a growing and outwardlyfocused, entrepreneurial nation with world-leading expertise in the industries of the future such as cyber, fintech, coding, and green finance. After all, the UK is Israel’s secondlargest trading partner, so I expect to meet with enthusiasm for our relationship to develop further over the coming years. I will also be meeting representatives from many fintech and cyber companies to discuss how London can support the development of innovative new firms in Israel. London is the ideal city in which to set up a centre of operations as Israeli firms expand and look to

Charles Bowman

take their offer international. This is due to our talented workforce, open and global outlook, cluster of professional and financial services around the Square Mile, and regulatory support for new and disruptive ideas. I will be speaking to existing and potential stakeholders in Israel about why London is the ideal market for investment and listing – now and for decades to come. One aspect of the visit to Israel that I am particularly looking forward to is sharing my Business of Trust programme at a dinner hosted by the UK’s ambassador, David

Quarrey. Surrounded by chief executives of many of Israel’s leading companies, this will be my first opportunity to take the Business of Trust abroad this year. In the UK, public trust in financial and professional services is low, with many people feeling that businesses no longer serve their communities. I am keen to discuss with leaders of the Israeli business community how this initiative would be welcomed in Israel. My goal is to create better business, trusted by society. We in business need to work tirelessly and constantly in earning the trust of the society that we serve, but we also need to demonstrate that London continues to invest in being the trusted cluster of choice for global businesses. And in 2018, Israel seems a fitting place to start. £ Charles Bowman is lord mayor of London.

LETTERS TO THE EDITOR

Bubble trouble [Re: Is the cryptocurrency bubble starting to burst?] January has historically been a difficult month for the crypto market, and this year has been no exception. While the scale of this January slump has been magnified by short-term investors cashing out following December’s bull run and news of regulatory crackdowns in China and South Korea, this is by no means marks the beginning of the end. Price volatility is a natural consequence of the rapid growth the crypto market has experienced in recent months. The market remains nascent, and we expect to see further price volatility throughout 2018 as more investors enter the market and use cases for different tokens are examined. But the overall trajectory of the market is positive – this can be seen by comparing the price of one bitcoin or ethereum token now with its price in January 2017. Investors should not be spooked by short-term volatility, and instead approach crypto as they would any other investment: do your due diligence and invest where you believe in the longterm viability of the business model. Iqbal Gandham, UK managing director, eToro

Chinese whispers [Re: Can China sustain its ambitious growth?] A strong 2017 for China was driven chiefly by a strong external backdrop. While this might continue this year, we think demand will weaken in 2019 and beyond that is anyone’s guess. This would be okay if domestic engines were firing on all cylinders, but slowing credit growth is already taking a toll on real estate, which accounts for a third of GDP and a huge chunk of banks’ collateral. This slowdown comes despite the fact that total leverage is still growing, despite claims of deleveraging. The 2020 goal of doubling incomes from their 2010 levels needs just 6.3 per cent growth this year and next. With enough stimulus, that could happen. But the banking system is already entering dangerous territory, and more of the same from policymakers will guarantee a reckoning. We think China will be forced to step away from growth targets as soon as it declares victory on its quest to double incomes. Even then, the change may come too late. Craig Botham, emerging markets economist, Schroders

BEST OF TWITTER Much mockery of Boris suggesting Channel bridge. If Macron had suggested it this would be hailed as a stroke of pro-European genius. @iainmartin1 I’m trying to drum up support for the Boris Johnson Cross Channel Catapult @MikeIona Building a huge concrete structure in the middle of the world’s busiest shipping lane might come with some challenges. @ukshipping Should we require French banks to apply UK regulations if they want to access our money markets? Should we charge France a fee for using the City’s cheaper and better facilities? I say no: they are neighbours and allies whose prosperity matters to us. @DanielJHannan


MONDAY 22 JANUARY 2018

CITYAM.COM

WE WANT TO HEAR YOUR VIEWS

› E:theforum@cityam.com COMMENT AT:cityam.com/forum

The narrative is shifting –it’s now time to rekindle trust in business

A

S BUSINESS leaders face fire on everything from executive pay to labour standards and tax avoidance, the temptation can be to hunker down and keep out of the fray. It is only natural to want to avoid high-profile debate for fear of criticism. The problem is that managed retreat is not a strategy for rebuilding trust in business, or, for that matter, its leaders. Instead, business must demand recognition for the role it plays in tackling the issues that genuinely matter to the public, not just those of concern to investors and shareholders. When you are at the centre of a media storm, it can feel like that kind of effort is impossible. However, this year’s Edelman Trust Barometer shows that business has real potential to make a difference, provided it communicates. The task is to pick your timing and message. If we had once had enough of experts, we are now starting to give them another chance. The UK data shows trust in chief executives and boards is up significantly (by 14 points and 10 points respectively). Trust in business in general is higher than trust in government or the media, and nearly on par with trust in NGOs. Further, in 10 of the 28 countries we surveyed, business is the most trusted institution. Corporate leaders have a platform to lead the conversation about what kind of society and economy we want. They also have a responsibility to do so. Some 60 per cent of the public expect chief executives to lead on change rather than wait for regulators to impose it. The dangers of trying to ride out public concern are clear

Fountain House, 3rd Floor, 130 Fenchurch Street, London, EC3M 5DJ Tel: 020 3201 8900 Email: news@cityam.com

Rachel Bower

when you look at how regulatory threats have caught up with public discontent in sectors such as energy , financial services, or the gig economy. The Edelman survey shows that more than a third of people think their standard of living will get worse this year, while only a fifth expect it will improve – with Londoners the brightest about their personal prospects. When campaigners and charities rightly complain about inequality, they are communicating a very real worry, shared by 40 per cent of the population who say it is a top concern. It is therefore not surprising that the most commonly cited barriers to trusting business are overpaid executives (58 per cent), failure to pay the appropriate levels of corporation and personal tax (56 per cent), and lack of

Corporate leaders have a platform and a responsibility to lead the conversation about what kind of society we want

Certified Distribution from 30/10/2017 till 26/11/2017 is 90,820

OPINION

transparency in business dealings (45 per cent). Successful corporate leaders recognise these challenges, and appreciate the ways their business can be seen as contributing to them. This is a perception they need to tackle head-on. Early, bold statements of ambition and values can be risky, but inaction can be riskier still. Business leaders also need to be smart about the channels they use to communicate. The last year has seen a turn away from social media, while the share of the population who simply avoid news has increased, with well-educated, urban populations most likely to skip traditional news altogether. If you want a message to reach someone, one of the most powerful ways to communicate it is through employees (who are seen as highly credible sources by 50 per cent of Brits). As leaders of major businesses, it is easy to be accidentally sucked into a social and media world that creates a vacuum, separating corporate leaders from their front-line staff and consumers. This year’s Trust Barometer shows the danger of doing so, but also the power of intentionally engaging with the issues people care about. There is a huge opportunity for business to communicate its own value in a way that includes, but goes beyond, value for money of products and services. It is vital that corporate leaders seize the chance to build on growing trust and continue to change the narrative about business in Britain. £ Rachel Bower is managing director at Edelman Corporate Reputation.

19

:@cityam

DEBATE Will YouTube’s tougher requirements make the platform safe for brands to use? Google’s recent update is a step in the right direction for building trust within the advertising industry. Concerns surrounding YouTube have plagued the industry for the last 12 months, with a constant presence of negative stories in the media damaging the reputations both of Google, and of numerous advertisers. At m/SIX, we place the highest importance on brand safety for our clients through well-established rigour and processes. It’s encouraging to see that the industry’s feedback to Google has been taken on board, and we welcome the action plan the platform has set out. Allowing third-party verification vendor tests on YouTube in particular will go a long way towards

YouTube will never be 100 per cent safe. It never has been, and nothing – other than employing hundreds of thousands of staff to personally check every channel – will ever change that fact. User-generated content platforms have a built-in risk element, which any advertiser worth their salt is aware of. Unlike with traditional publishers, there is simply no failsafe way of monitoring the massive volume of content a platform like YouTube contains. For the most brand-conscious businesses, the best option is take a whitelist-only approach. That means manually vetting brand-appropriate channels yourself, and setting your targeting to appear exclusively on those channels. Google Preferred is a decent

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

Distribution helpline If you have any comments about the distribution of City A.M. please ring 0203 201 8955, or email distribution@cityam.com

YES ROSS BARNES

rebuilding Google’s reputation across the industry. Although we can never guarantee 100 per cent brand safety due to the usergenerated content that defines YouTube, Google’s actions, coupled with media agency rigour, will certainly help make YouTube a safer, more trusted environment for clients. £ Ross Barnes is chief technology officer at m/SIX.

NO DANIEL GILBERT

shortcut for this, and will certainly be a lot safer, but I’m sure many brands will want the lower costs and wider reach of the non-Preferred channels. I find it baffling how the media and the ad industry place the blame on YouTube. We all know the risks, and we should all know how to avoid them by now. £ Daniel Gilbert is founder and chief executive of Brainlabs.

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20

FEATURE

MONDAY 22 JANUARY 2018

CITYAM.COM

MARKETING THE WEEK IN BRIEF

WHO KNEW THAT?

DOOM AND GLOOM The IPA’s Bellwether Report seems to be suffering from a case of revisionitis. In the third quarter of 2016, 2017 adspend growth was expected to decline to -0.7 per cent. By the third quarter of last year, it was up to 0.6 per cent, an increase. Lo and behold, the final predicted figure, released last week, was 1.4 per cent, another lift. That’s a 2.1 per cent spread, from negative to positive territory – significant when the industry’s eyes are watching. That’s not to say that conditions aren’t tough, or that uncertainty (which appears 11 times throughout the short document) doesn’t make modelling hard. But perhaps relying on gloomy OBR growth figures doesn’t help.

Elliott Haworth talks transformation with IPG’s Caroline Foster Kenny

J

UST over a decade ago, the Interpublic Group of Companies (IPG) took a hit. Right in the share price. A slap across its reputational face. Dirty laundry, in the form of less-than-appropriate accounting practices, was hung out to dry. IPG fired staff, lost accounts, and disposed of several businesses within the group. Its share price has never recovered. Today, though, it’s a different business. Restructured with transparency at its core, the firm is in renaissance. Its media planning and buying division, IPG Mediabrands, is testament to the cultural shift witnessed since its fall from grace. This time last year, Caroline Foster Kenny, a veteran in her field from London to Hong Kong, took up the newly-created role of chief executive for Europe, the Middle East, and Africa – with a brief of “transformation”.

CHALK AND CHEESE

“You couldn’t get more chalk and cheese,” she says. “From a lifetime in ‘WPP World’ to IPG, it’s so different in every sense, but particularly cultural. I always thought it was about scale and size, but there’s so many other considerations, so many different metrics of success – I feel enlightened.” The debate about size and scale of media companies is not one that is mainstream, nor, one assumes, that is keeping many people up at night. It is, nonetheless, a recurrent conversation

in light of recent waves of consolidation. One side argues that bigger is always better, while the other sees top-down behemoths as bureaucratic machines that lack the agility to respond to the real-time needs of clients in the digital economy. Foster Kenny, having now experienced both first-hand, is firmly in the latter camp. “I think scale is fast becoming irrelevant in media,” she says. “The days of ‘the bigger you are, the better,’ that’s no longer true. I feel now, that our size and structure is an advantage. “For example, our breadth of capabilities is second to none. Perhaps we don’t always have the depth, but being joined up under one profit and loss, we can move and shift resources and capabilities literally from day-to-day. In my old role, while the company may have had those capabilities, they sit in very different places.”

INTREPRENEURSHIP

Having a culture that engenders internal entrepreneurship is high on Foster Kenny’s agenda. “I think all of our teams are very much empowered,” she says. “So if a market decides that there is a specific opportunity for a new product or offering, they get on and do that. They don’t have to go through the hierarchy of getting it approved. So it could be the shape of their teams or how they operate; it could be the products themselves.” Last year saw much of the

FAKE NEWS

advertising world reeling over transparency issues, from rebates and kickbacks to the opaque taxonomy of digital media. Having crossed that bridge long ago, Foster Kenny says that it’s IPG’s time to shine, but that the group hasn’t been as tubthumping as it may have once before. “That, again, is the nature of our culture,” she says. “We’re not loud and proud enough. And I think from the heydays of IPG, at one point it was a lot bigger. And I think maybe we got to a point where we’d lost too many accounts, heads went down, and it hasn’t been right to hold your head up and be really proud. “But today, I think we could be the industry’s best kept secret. I’m really surprised at the stuff I keep finding out. I have the ‘Who Knew?’ list. Our largest client is Coca-Cola. No one would think about us and Coca-Cola. And actually we do the majority of their global comms planning around the world. It was like ‘wow, who knew that?’. My goal now is to make us go viral.”

MIND THE GAP

Last year was one of scandals – not just in misplaced adverts. The spotlight on gender equality issues grew brighter, following allegations against Hollywood producer Harvey Weinstein. Advertising, once a notoriously sexist boy’s club, had its own issues. Last year, one male executive at M&C Saatchi was “bored with diversity”, while WPP

defended another against claims of racist, sexist behaviour. Whether or not advertising still has an issue with representation, sexism, and pay equality will be on the lips of many this coming year. But, says Foster Kenny, “it’s definitely changed. When I started 30 years ago, some of the stuff and the way people behaved was... amazing, but not in a good way. And I think we will see many more cases of people coming out, speaking out about situations in the past of harassment. That kind of mentality, it’s few and far between now. “Saying that, do there need to be more women in c-suite positions? Yes, absolutely. Because it’s not balanced at the moment. I think it’s better than some categories in the UK, and up until recently, from a media agency perspective, many are female-led. We’ve had five or six gone recently, four of those were female roles, so it will be interesting to see how those are being replaced.” She adds that, in her Europe-wide remit, the difference in representation and attitude she has noticed varies wildly across the continent, from equal in the north, to male-dominated in the south. Will she be addressing this? “Yes, I will.” She pauses, with the look of a bitten tongue. “I mainly have male executives across the region – at the moment. Equally, I firmly believe in hiring who’s best and right for the business. I genuinely love and appreciate diversity, it brings much-needed, differing perspectives and views.”

Facebook finally agreed to properly investigate Russian meddling in the EU referendum. A few months ago, it found just three malicious ads, totalling 75p, after analysing a single well-known “troll farm”. This time it will have to dig a little deeper to get the results Theresa May wants. “We know what you are up to,” she warned Vladimir Putin. “Likewise,” he probably nodded.

DARWIN AWARDS YouTube did two good things last week. It banned videos of teens eating detergent pods – a trend so stupid it must be American. And if that wasn’t enough (natural selection and all that), it announced it would manually review popular videos before placing ads. This follows a series of vloggers being naughty. One should always be suspicious of people with two first names. Logan Paul, a YouTube “sensation”, recently walked into Japan’s suicide forest and was so surprised to find a suicide victim he recorded it for all his young followers to have nightmares over. It took a pillock teenager to spur YouTube into offering brand-safe content options, but such is life.

AD OF THE WEEK

Under the influence of social media superstars

I

T IS true that 2017 was the year of the influencer. It was the year a boomtown industry sprung up on the promise of highly engaged audiences in huge numbers, all willing to buy into a brand message – provided it was delivered by a third party and ideally from a beach. Yet, despite the insistence by many that this is just a fad, it’s a promise that has held true. Influencers are here to stay. The concept of influencers is nothing new. Studies have proved that word of mouth is one of the most powerful tools for consumerbrand relationships, and consumers are used to celebrity endorsement and peer-to-peer reviews. However, it’s the meteoric rise of the micro-influencer that has taken

brands to the next level. Conde Nast Italia has just launched an academy to train the next generation of influencers on how best to use social media – a move that signifies the importance and long-term investment being made by brands with their fingers on the pulse. The power of influencers translates across all sectors, making it a formidable medium, and with social media developing daily, influencers undoubtedly will too. Although still a fairly new phenomenon, influencers are set to gain a bigger portion of the marketing budget allocated in 2018. Traditional channels are slowly being replaced by new long-term strategies based largely on the power of influencers, as the results are

showing real value for money. For example, InstaNatural, a skin care brand primarily sold online, has discussed how they avoid using agencies in favour of influencers as a product proof point. As technology adapts, and results can be tracked in real time, the subsequent effect has been validating the role of influencers. The recent introduction of bitcoin in influencer marketing will further change how brands and influencers collaborate – exchanging in a potentially safer and more analytical way, although whether this makes the process quicker and more costeffective has yet to be seen. Brands that are not embracing an influencer strategy need to evaluate where their budget is going, and be

brave in challenging their existing plans. Those that refute its ability to truly drive audience engagement tend to still think of influencers as traditional celebrity, but they are much more than household names or YouTube stars. Influencers that are truly in-line with your brand and purpose can give brands an identity through authenticity, depth, and insight. The landscape is constantly evolving. From rules that show real maturation of the category, to SMEs taking advantage, 2018 is set to be an exciting year for influencers as they become the best way to future-proof global businesses. £ Ross Brown is vice president of brand strategy and content at PMK-BNC.

Generally when disabled people feature in advertising, the ad is speaking specifically about disabilities. Otherwise, despite there being 13m disabled persons in the UK, they are invisible. It is easy to get it wrong. A couple of years ago, Brazilian Vogue ran a Paralympics campaign, featuring able-bodied actors in wheelchairs. So good on Asos, whose latest campaign features amputee model Mama Cax, without making a fuss or trying to prove a point. It’s step in the right direction.


MONDAY 22 JANUARY 2018

CITYAM.COM

FEATURE

21

OFFICE POLITICS

Lessons leaders can learn from (bad) political negotiations

WHAT A ROCKET NukeBlast Free

Avoid antagonising your opponent by suggesting your button is bigger than theirs Neil Clothier

C

AN YOU really negotiate with someone that’s not willing to negotiate? The answer is yes. But, if business leaders are looking for an example of how to negotiate in a tricky situation, they should categorically avoid taking the Donald Trump and Kim Jong-un approach. From tittle tattle and irritating

behaviours, to aggressive language and accusations, the spat between North Korea and the US is a masterclass in how not to negotiate. Business leaders frequently have to negotiate in delicate situations – be it navigating office politics to closing a big deal with a high-value customer. Regardless of the context, however, the basic principles of negotiating remain the same, and understanding what not to do can sometimes be more important than knowing what to do. The first no-go in any negotiation is to use irritating behaviours. And, by this we mean everything from selfpraising declarations, such as using the words “fair” and “reasonable”, to being overly outlandish or assertive. This behaviour creates a strained

We see Trump jumping to Twitter to demonstrate his displeasure with little apparent hesitation – meaning he shows his cards early

environment that leads to a defensive opponent. To negotiate well you need to form a give-and-take culture, where the outcome feels mutually beneficial. Avoid deliberately antagonising your opponent too. And yes, perhaps unsurprisingly to you and I, that means refraining from suggesting your “button is bigger”, in true Trump style. In a strained situation it’s also easy to respond quickly and without full consideration, which can be dangerous. On the political stage, we see Trump jumping to Twitter to demonstrate his displeasure with little apparent hesitation – meaning he shows his cards early. However, for smart negotiators, it’s important to remain considered and disciplined at all times.

It might sound morbid, but here’s an app that can help you find out how much damage a nuclear bomb would inflict on to your home town. Choose any destination in the world, select a nuclear weapon, and then simulate the effects. With all this hoo-ha about Trump and his (tiny) button, it’s not so ridiculous to consider the devastation which could be caused by a nuclear war.

Prepare properly and map out your negotiations – spend time considering how you will control the climate, shift the power in your favour, and what you ultimately want to achieve from the meeting. However, this doesn’t mean that you need to remain completely rigid. Flexibility is also key. To successfully negotiate, you must also have a firm understanding of what your opponent wants – be prepared to listen. This is another major weakness in the “discussions” between the US and North Korea. Neither party is prepared to acknowledge the other’s frustrations, leading to deadlock. Take time to sit back and listen. Digest the information you’re receiving properly, and understand the other party’s position. This will provide opportunity to explore their underlying objectives. You can also use this to build incisive questions that create doubt – doubt leads to movement, and movement is what you’re trying to create as a negotiator. When two difficult parties lock horns, these principles can help shift the stalemate. Ultimately, when things get tough, resort back to common ground and restate the areas that you both agree on – be it the goals you both share, or the kind of deal you both want. These tactics will help you avoid losing out on a deal on the basis that you’re negotiating with a difficult personality – something Trump could do well to remember. £ Neil Clothier is a senior negotiation specialist at Huthwaite International.


22

FEATURE

MONDAY 22 JANUARY 2018

CITYAM.COM

ENTREPRENEURS Running for mayor of London? ’Course I am. Elliott Haworth talks politics with Charlie Mullins

MAYOR

MULLINS 2020

I

F A SUCCESSFUL, wild-haired businessman running for high office on a ticket of sticking it to out-oftouch elites sounds like old news, think again. I’m in the lobby of Pimlico House in Lambeth, barely a mile from Elephant and Castle, where plumbing millionaire Charlie Mullins was raised. Below signed portraits of his famous clientele sit cuttings from long-closed newspapers next to a glass cabinet of blue, Pimlico-themed memorabilia. After our interview, I receive a scale model of a VW van, number plate: WE F1X. The choice of gift was not arbitrary; Mullins is running for mayor of London in 2020, insisting that his leadership can “fix” some of the capital’s problems. Rallying against Sadiq Khan’s tenure thus far, Mullins, a native Londoner and purveyor of common sense, thinks London’s focus needs to be business first and foremost. “I just think Khan’s not a leader, he doesn’t come from a business background, and I think that’s important to be mayor of London,” says Mullins. “I think he was a solicitor or something like that. I’ve got nothing against him personally, it’s a tough job. I think we need more of a largerthan-life character – we need someone that’s got some balls.”

THATCHERITE

Inspired and, he says, empowered by Margaret Thatcher to start his business in the eighties, Mullins’ politics are that of individual responsibility fused with working-class determination to forge himself a better life. “She encouraged us,” he says. “She said ‘you buy your house, you own your own business, you can do well in life’. I haven’t heard a government since say anything like that. She was a great inspiration.” Central to the nascent Mullins manifesto is getting young people into work via apprenticeships. While his voice was heard in the Cameron years (he was a business adviser), with Theresa May and Khan, he doesn’t feel that they are “drinking from the same teapot”. As mayor, he would make travel for all apprentices free. “Getting people into work, I think, resolves most of the problems. And when I’ve been trying to explain this to the government before, they’re not getting it. If you put someone into work they become part of society – eventually they start putting into the economy rather than draining from it. They’ve got a purpose in life. Putting someone into work would cut down on crime, it would cut down all the rehabilitation, prisons and that.” As for the money to pay for this free travel, his answer is “the economy”. The government, says Mullins, needs to prioritise work. The policy is as yet uncosted, but, to his defence, when we met last Wednesday, he had only decided to run for mayor three days prior, following years of friends and colleagues suggesting he climbed the greasy pole. As a former Tory donor who

described May as “incompetent” and Jeremy Corbyn a “tw*t’, will he stick to his Tory roots, or run alone? “I’m better off independent. I actually think it would be more of a downside to be in bed with Theresa May. And people have said to me ‘oh you could get financial backing, it would be stronger’. I’ll use my own money for my own campaign. That’s how sure I am. I ain’t in it for the money. “All I’m saying is that I don’t want to be tied in with any party. ’Course I’ve had people come up to me and ask if I want to be involved with them, but I’m doing this for London. I’m doing it for Londoners and I’m a working class guy. We don’t want any posh politicians in there.” His antipathy to posh politicians – “the old school tie brigade” – comes up throughout our conversation. Mullins may be well-monied, but posh he is not – and proud of it. Upon arrival, I interrupted him eating a kebab and chips among staff in the canteen. He’s the real McCoy. It’s the sort of feat a photo-opportunistic politician simply couldn’t pull off without looking a fool. He has working-class appeal, I suggest, that may resonate with those left behind by Labour’s elitist-socialism: his straight-talking, common sense

approach may well pay dividends. “Look, I’m not frightened to speak my mind,” says Mullins. “And most politicians can’t even answer a question, you know what I mean? And if I don’t know the answer, it’s because I don’t know everything. But I will build the right team around me to make sure we get the best we can for London people.”

LONG ROAD AHEAD

I’ll use my own money for my own campaign. That’s how sure I am. I ain’t in it for the money.

Mere days into his campaign, with some two years until the election, Mullins realises that he has a long way to go before fully addressing the many issues facing Londoners. To pick an issue out of a hat, Mullins selects pollution. He says Khan’s focus on it is a classic example of the incumbent’s misplaced priorities. “I believe Khan slipped up when he brought the T-charge in, because he hammered businesses. It’s costing Pimlico £7,000 a week extra because we’ve got a load of old vehicles. Why didn’t he have a bit of common sense and spread it out? Pollution has been around for years. Obviously we don’t want to be killing people, but his priority is pollution. He should concentrate on helping businesses, rather than discentivising them.” Naturally the B-word – Brexit – can’t

be absent from any conversation about political aspirations. Mullins bankrolled Gina Miller’s landmark Brexit case against the government regarding Article 50, which she won. Pimlico House even had a 100ft banner emblazoned with “Stronger In” strewn across its roof for the duration of the campaign. “Yes, I am a Remainer,” he admits, but “I don’t think it’s about that now. Just accept that we’re going to leave. This ain’t about Brexit any longer, this is about doing the best for London people, and I’ve got the passion, I’ve got the enthusiasm, and I’m in the real world. Once we have left, in 2020, I think we’re going to need someone in our corner to battle even harder for businesses and people in London. “I don’t care how blunt I am. I’ve said before, I’m not a saint, I’m not a perfect guy. There’s only one perfect man in the world and they nailed him to a cross. But I understand what London needs, and I’m not a talker I’m a doer. It’s a long road from declaring a desire to run for mayor and actually campaigning for votes. He’s not short on passion, but Mullins may be more rough than ready. £ Elliott Haworth is business features writer at City A.M.


MONDAY 22 JANUARY 2018

CITYAM.COM

FEATURE

23

IN ASSOCIATION WITH

Top tips to help you meet the tax deadline

T

HE DEADLINE is looming. Businesses have until the end of this month to get their tax affairs in order. January can be a tricky time for companies. Even if you’ve kept on top of it all throughout the year, you can still have a time-consuming task on your hands. Andy Davies, sales director at business finance provider LDF, says companies face a number of challenges at this time of year, particularly as the tax deadline is in tandem with reduced revenue after the Christmas break. “It’s all too easy to forget that small business owners don’t have the luxury of enjoying much downtime over Christmas. The break is often a prime opportunity to catch up on important business admin – and indeed, to start planning for the year ahead.” It’s worrying that nearly half of small businesses in the UK admit that they have struggled to pay tax bills, according to a report from insurer RSA. But what’s more worrying is that problems with accounting, or simply a lack of awareness about the process or the deadline, mean that as many as a quarter of companies are missing the due date. Failing to file a self assessment form

Katherine Denham

by 31 January can leave you facing an automatic £100 penalty. The fines build up after three months, with HMRC starting to charge penalties of £10 per day. And after six months, the penalty amounts to five per cent of the person’s tax or £300 – whichever is higher. Being hit with fines will inevitably put a strain on the cash flow of small businesses, so managing your tax properly is key. We’ve put together some tips to help you manage your taxes. First, stay organised. You don’t want to be panicking the day before the deadline trying to find bits of paperwork, so it’s a good idea to file everything in an organised fashion throughout the year. If you haven’t made any progress, there’s still a week until the deadline. Just don’t leave it until the last minute.

Don’t let tax confusion stop your company from having a prosperous future Second, keep tabs on all expenses and include all the information required. Make sure you don’t miss any sections out on the form, and include all earnings, including dividend income on any shares you own. You don’t want HMRC to reject your tax return if there are any mistakes, so also allocate time to double-check the

form before you submit it. Third, use tools available to you. The days of doing everything by hand are long gone. Software like Free Agent is now available to give you a helping hand when managing your accounts, so do a bit of research to figure out which app is best suited to your business. Making use of these tools will

make your life a whole lot easier – think of it as an investment. Finally, if you’re really stumped when it comes to your tax return, you can get a professional accountant involved who should be able to take all the stress away. Yes, this will come at a cost, but you have to consider if that cost outweighs the penalty from HMRC. Seeking advice from an accountant on your finances can be invaluable to your business, particularly later down the line as your company grows. Fulfilling tax obligations can be one of the biggest barriers to the success of a business, but don’t let it stop your company from having a prosperous future. “Cash flow is without doubt the principle concern for small businesses, and tax remains one of the largest demands on this resource,” Davies adds. It’s not just timing that has a bearing on ability to meet the deadline – it’s also access to the funds required to pay it. “As such, we continue to see a strong and growing demand from small businesses looking to create greater cashflow liquidity by simply spreading the cost of tax.”

Welcome to the flipside. A short-term loan from LDF lets you make tax more manageable, providing you with a loan to cover the full cost of personal tax, corporation tax or VAT, over a 3-12 month term. Stay ahead of the Jan 31st deadline. See what’s possible on the flipside.

033 301 42111 | ldf.co.uk/cityam

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24

LIFE&STYLE

CITYAM.COM

MONDAY 22 JANUARY 2018

TRAVEL

HOURS IN... GLASGOW, SCOTLAND

THE DIGITAL DETOX

WHERE TO STAY

Get some bijou action when you check in to Point A, one of Glasgow’s cooler and more compact hotels, with comfortable beds, breakfasts made for a king and slap bang in the city centre. Visit pointahotels.com

Laura Ivill ditches the Glastonbury crowds in favour of a radical new mindfulness festival

M WHERE TO GO

Get a sense of the city’s mix of traditional and modern architecture at the Lighthouse, designed by Mackintosh in 1995 and home to Scotland’s Center for Design and Architecture. Visit thelighthouse.co.uk

WHERE TO EAT

There are restaurants aplenty, but one worth the effort is Kimchi Cult, a holein-the-wall Korean restaurant serving up steaming soft Taiwanese bao buns with French fries drizzled with bulgogi barbecue beef. Visit kimchicult.com

WHERE TO DRINK

One of the city’s newest brewpubs, Shilling Brewery is where you can try house craft brews. Make space to sip and savour beer from draught ales to bottles from fridges. Visit shillingbrewingcompany.co.uk

ost travellers arriving in Flagstaff, Arizona, come to explore the Grand Canyon, but not me. My destination was the high plains of the Painted Desert, a dry and barren landscape on the edge of the Navajo Nation Reservation. I would leave a different person. I’d come for Restival, a mind, body and spirit festival taking place over five nights in the wilderness. Fewer than 100 people were in attendance, mostly thirty-something women. I’d packed for the heat of the day, the cold of the night and the dry desert winds, and most importantly I’d brought a curious mind, open to new experiences. First, a confession. I’m averse to the thousands-strong music festival. I went to Glastonbury once and our tent blew down in a thunderstorm. But Restival is a different beast entirely. The “rest” half of the portmanteau refers to a respite from technology, a digital detox and a break from the dopamine pings of the smartphone. With the looming threat of no wifi and an emergency-only phone, I’d scrambled to get all my work commitments done before I left, setting up my first-ever out-of-office email. There was also a Restival photographer on hand, so I didn’t even have to carry my phone for pictures. It was liberating. Nobody could bury their head in their screens, instead they turned their focus outwards. It is this modern addiction that inspired Restival founder Caroline Jones to create the festival. “I was on the tube in 2014 surrounded by City workers trying to get a signal underground,” she says. “I recognised that we were becoming addicted to technology.” Building on her 15 years’ experience in the music industry, Caroline set out to work with local people to organise leave-notrace, eco-luxe retreats that would “help us reconnect us with ourselves”. The inaugural Restival in 2015 was in the Sahara with the Berber people. The 2016 and 2017 events were here at Gateway Ranch with the Navajo people. Accommodation – in teepees and tents – is either shared or private. Next to my own spacious tent was another huge one; my private washroom with porcelain loo, basin and hot shower. No traipsing across the camp in the middle of the night. However, as it turned out, my VIP facilities didn’t go

Seminars, classes and workshops take place in and around these desert structures, many taken from Burning Man unnoticed. A fellow camper sussed my daily routine of leaving for 6:45am yoga, and I returned one morning to find that this mystery guest had used not only my sink, my shower and my soap, but left a huge blockage in my loo. But that first night, as I stepped into the desert, the only smells were the earth: dark, gritty and charred. They call it cinder, a soft ground-up mixture of sandstone and volcanic lava, whipped together over millennia by winds into a powder that blows across featureless scrub, unfenced and untroubled by a single tree. Above me the Milky Way blazed. The next morning, unzipping my tent at dawn, the dial had turned, the stars had gone, and the scene had transformed into a cloudless sky turning from pre-dawn blue

The festival offers a respite from the constant dopamine pings of the smartphone

NEED TO KNOW Restival takes place in the UK in 2018, on Osea private island, Essex, between 23-26 March. Doubles start from from £1,187 per person. The festival will then take place at Joshua Tree National Park, California, in May 2018. To find out more visit restival global.com

to morning gold. I was in the swing of it, getting back to nature. Each day there were timetabled workshops and activities. Jones has a little black book of international teachers, healers, practitioners, therapists and coaches, whose free classes, workshops and taster sessions took place from morning till night. Alongside this was the spa, where guests could, for a fee, indulge in age-old and cutting-edge treatments and therapies, from traditional Navajo healing, to sound therapy, acupuncture, Thai massage, crystal healing, career and life-planning, etcetera, etcetera. There’s too much to do in one visit. I couldn’t fit in the Navajo horse whisperer, the meditation course, the creative writing and story-telling workshops, or the mural painting afternoons with local artists. However, I listened to the Navajo statesman, Thomas Walker, talk about the art of peacemaking and I took the trip to his home on the Reservation. I joined the seminar led by the women’s executive coach Anne Loyd from Putney on love and relationships, something I would usually steer clear of, but in this “safe space” I felt brave enough to dive in. I found her to be sympathetic and knowledgeable, so I booked a one-to-one. For our session, we sat in one of the iso-


CITYAM.COM

MONDAY 22 JANUARY 2018

: @city_am

LIFE&STYLE

25

: @cityamlife

Mural painting in the desert sun is one of many ways to spend a relaxing afternoon at Restival

lated sculptures on the ranch (some had come from Burning Man), and talked about the breakdown of family communications, about finding the “authentic self” and how I can speak from the heart rather than saying what I think people want to hear. I can get inexplicably tearful, so I sometimes clam up. I wanted to find tools to break this pattern, and, in an isolated steel pod in the Arizona desert, I feel like I made some progress. Communication thereafter took centre stage. I reflected on how I’d chosen the Thai massage taster as my first workshop, and that perhaps the awkwardness of touching a stranger, and another woman at that, had actually been the first steps towards freeing social constraints and opening myself up to new horizons. I didn’t miss the phone at all (except as a watch), and I felt my shoulders soften and

relax after being hunched over a keyboard for so many hours a day for so many years. I filled my time with wellness sessions, and quickly came to realise what a uniquely curated group of practitioners were here. Jeneda Benally is one of only a handful of practitioners skilled in traditional Navajo bodywork (a combination of osteo/chiro/energy practices). She gave me a hands-on, fullbody tune-up, smoothing out my knots, kinks and niggles from head to toe, hitting every stubborn spot. She recommended seeing Karin Pine for my chronic neck tension and a recent lowerback injury. Karin, who practices at Tecopa Hot Springs on the outskirts of the Mojave desert, has pioneered a form of fascial release called UnDoing Bodywork, which helped me to soften and reset. The early morning kundalini yoga with Amar Atma from Reno was also a joy. What a wonderful way to start the day: in a small group on top of a hill in the groovy Temple of Life, wrapped against the desert cold in a poncho, blanket and hat, singing and chanting together in excruciating yet uplifting mind-over-matter yoga sets, all guided by Amar’s kundalini wisdom. Our last morning of yoga was themed around “polarity”, and in our 90-minute practice we experienced being both soft and strong, emotional and steely. New thoughts tumbled forward, and in that moment, the idea of engaging with the strength and sensitivity found in all of us, which Thomas Walker had expressed as the heart of peacemaking, made complete sense. Ready to leave, Walker thanked us all for spending time with his tribe in their homeland. “Where you walk, the earth does not forget you,” he said.

THE LONG WEEKEND THE WEEKEND: You’ve missed Saint Andrew’s Day and Hogmanay, but there’s one more Scottish winter festival to go. Burns Night is coming up on Thursday, and what better way to honour Rabbie than by heading up to the Highlands for a weekend of shooting and fine Scotch. WHERE? There are Highland hotels and then there are Highland hotels that have birthed their own whisky brand. The Craigellachie, a favourite of Kate Moss, Noel Gallagher and Sadie Frost, is just the right mixture of rustic charm and modern boutique hotel. Afternoon tea is served daily in the drawing room by roaring fires, but Hunter wellies are also lined up next to the door for city types who may have “forgotten” the appropriate footwear. SORRY, WHAT DID YOU SAY ABOUT WHISKY? The 26-room hotel is the home of Copper Dog, a blended whisky that’s named after the metal tubes used to smuggle drams out in the 17th and 18th century. If you want to learn more about it, seek out Cragganmore Distillery, which boasts rare flat-topped stills, for a tour.

THE CRAIGELLACHIE SPEYSIDE, SCOTLAND Melissa York samples the scotch on St Andrew’s Day in the Highlands IT’S COLD, DO I HAVE TO GO OUT? No, simply pop next door to Copper Dog, the hotel’s in-house pub. Serving up fare from the local area and live music most nights of the week, it’ll make you worryingly reluctant to explore the stunning landscape. The Quaich bar, also in the hotel, hosts over 900 whisky varieties as well. You should really go out though. WHY? Johnston’s of Elgin is a half hour drive up the road and it offers fascinating free tours of its centuries old mill. There’s also a criminally cheap sale of its cashmere and wool goods once a year. Also less than half an hour away is House of Mulben, which specialises in arranging bespoke clay pigeon shooting, archery and off-road group adventures. NEED TO KNOW: Room rates at The Craigellachie (thecraighellachie.co.uk) start from £119 a night including breakfast. Call 01343 554088 to find out more about tours and sales at Johnston’s of Elgin (johnstonscashmere.com) and 01542 860207 for House of Mulben (houseofmulben.com).

ANYTHING ELSE IS JUST A HOLIDAY


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SPORT

CITYAM.COM

MONDAY 22 JANUARY 2018

SPORT FOOTBALL

Sinking Swans seek survival boost against familiar foes ROSS MCLEAN @rossmcleanRMAC IF BOB Geldof is right that “mankind at its most desperate is often at its best” then Swansea supporters can adopt a sanguine demeanour, confident that Carlos Carvalhal’s Premier League strugglers are destined for an upturn. While tonight’s clash with Liverpool at the Liberty Stadium does not verge into muck or nettles territory quite yet, the need for the Swans to enact a rescue package intensifies with each passing week. Swansea are rooted firmly to the foot of the table, six points adrift of Stoke in 17th and safety, with 15 matches between now and the end of the season to preserve their topflight status. It is by no means impossible. Crystal Palace lost their opening seven showdowns of the season without scoring a goal and were declared a lost cause, only for them to be sitting in the relative grandeur of 13th place, three points clear of the drop zone, 17 matches later. A showdown with Liverpool, who are unbeaten in 18 games and have just destroyed the Manchester City myth of invincibility, is probably not going to be the defining moment of their struggle. Their fixture list from 24 February reads: Brighton, West Ham, Huddersfield and Southampton, with West Brom to come after a trip to face Manchester United at Old Trafford. It is not unreasonable to suggest redemption, or otherwise, beckons here. But it does not look good for Swansea whichever way you look at it; bottom of the pile not only in terms of league position but also for goals scored (14), shots (196), shots on target (52) and goals from inside the penalty area (12). If there is a straw to clutch at, however, then Liverpool do appear to have stirred something of a survival instinct within Swansea during recent campaigns. The Welsh outfit dismantled Jurgen Klopp’s men, albeit a muchchanged Reds side, in May 2016 during the ill-fated spell of Italian Francesco Guidolin – a win which ensured their Premier League survival. Perhaps more poignantly, having won just two matches in their last nine – they enter tonight’s clash on the back of the same run of form – the Swans conjured victory at Anfield on this very weekend 12 months ago. That triumph preceded an ultimately successful battle against the drop for Paul Clement’s team. Liverpool were in pretty patchy form at this stage last term – the antithesis of now – but if the past really does influence the future then perhaps Swansea have a glimmer of hope and today will be the day the tide starts to turn for real. Be warned, however: we all know Geldof’s feelings about Mondays.

PISTOL STAR Mark Allen beat Kyren Wilson 10-7 to be crowned Masters champion FOOTBALL

Pochettino warning for stalling Spurs

Pochettino’s Tottenham are two points adrift of fourth-placed Liverpool

Tottenham told to improve after draw with Southampton hands initiative to rivals PREMIER LEAGUE

SOUTHAMPTON TOTTENHAM HOTSPUR

1 1

ROSS MCLEAN @rossmcleanRMAC TOTTENHAM boss Mauricio Pochettino has told his Champions League-chasing side to up their game or risk missing out on a place in the Premier League’s top four after failing to beat relegation-threatened Southampton yesterday. The Saints, whose winless run now stands at 11 matches, drew first blood as Spurs centre-half Davinson Sanchez put through his own net, only for prolific hitman Harry Kane to net moments later with his 99th top-flight goal. After a weekend when all of their closest rivals won, fifth-placed Tottenham’s slip has handed Liverpool, who play bottom of the table Swansea tonight, the chance to move five points clear of them and tighten their grip on a top-four slot. “Our performance wasn’t the best,” said Pochettino, who refused to use illness, which had sidelined goalkeeper Hugo Lloris and playmaker Christian Eriksen and affected others, as an excuse. “We need to be focused now and try to improve because of course Southampton’s pitch didn’t help but we must do better, play better and if we want to be in the top four we need to improve and increase our level. “I feel disappointed because our game

wasn’t great. Our performance wasn’t the best. I think this was for different reasons. I think in possession we must link better. “We made a lot of mistakes in possession that allowed them a lot of transition, chances and allowed them to feel comfortable on the pitch. It wasn’t our best vision tonight.” A point was not enough for Southampton to exit the relegation zone; they remain 18th, a point adrift of safety, while their streak of 11 winless matches is their worst run since 1998. Manager Mauricio Pellegrino, however, insists he does not fear the sack. “I don’t worry about my job because I am happy doing the job. It is part of our life,” said Pellegrino. “In Argentina we say that the job is the electric chair – it is not easy to stay in the seat.” Southampton opened the scoring after a quarter of an hour when full-back Ryan Bertrand’s left-wing cross was diverted into his own goal, in off the near post, by a sliding Sanchez, the former Ajax defender. But Tottenham were behind for all of three minutes as Kane shrugged off the attentions of defender Jack Stephens to rise above goal-shy Manolo Gabbiadini and head home Ben Davies’s corner. Both sides wasted chances to win the clash late on; 17-year-old substitute Michael Obafemi scuffed a presentable opportunity from Dusan Tadic’s cross before Sofiane Boufal’s shot was blocked, while Kane dragged wide with only minutes remaining.

FOOTBALL

TENNIS

Free-falling Watford appoint Edmund into Australian quarterGracia hours after axing Silva final and eyeing Dimitrov scalp ROSS MCLEAN @rossmcleanRMAC WATFORD last night appointed former Rubin Kazan manager Javi Gracia as their new boss after sacking Marco Silva and blaming Premier League rivals Everton for his departure. Gracia, who has signed an 18month deal at Vicarage Road, is the 10th manager to work for Watford under the Pozzo family since 2012 when they completed their takeover. Silva, meanwhile, was a target for Everton as they sought a

replacement for the axed Ronald Koeman earlier this season, but after their attention Watford’s form plummeted and they have won just one of their last 11 league matches. “Had it not been for the unwarranted approach by a Premier League rival for his services we would have continued to prosper under his leadership,” read a club statement. “The catalyst for this decision is that unwarranted approach, something which the board believes has seen a significant deterioration in both focus and results.”

FRANK DALLERES @frankdalleres BRITISH No2 Kyle Edmund insists he is ready to upset the odds against third seed Grigor Dimitrov in his first quarter-final at a grand slam event. Edmund, 23, advanced to the last eight of the Australian Open on Sunday with a gutsy 6-7 (4-7), 7-5, 6-2, 6-3 victory over Italian Andreas Seppi. He heads into tomorrow’s showdown with Dimitrov, who saw off home hope Nick Kyrgios in a five-set thriller, in ebullient mood. “Every time I step on the court, I be-

lieve I’m going to win,” said Edmund. “It’s no different now. I take it one step at a time. Whoever I’m playing on Tuesday, I have to believe I’m going to win and believe in my game.” Top seed Rafael Nadal also progressed with a four-set win against Argentinian Diego Schwartzmann. The 2009 champion meets Croatian Marin Cilic in the quarter-finals. World No2 Caroline Wozniacki and fourth seed Elina Svitolina both swept into the last eight with ruthless wins. Wozniacki despatched Magdalena Rybarikova 6-3, 6-0, while Svitolina beat Denisa Allertova by the same score.


MONDAY 22 JANUARY 2018

CITYAM.COM

SPORT

JOINT PROBLEM Wales to assess shoulder injury picked up by Ospreys fly-half Dan Biggar CRICKET

Morgan hails finest England win after Buttler fireworks seal series ROSS MCLEAN @rossmcleanRMAC SKIPPER Eoin Morgan revelled in England’s best one-day performance under his captaincy after the Jos Buttler-inspired tourists claimed a series-clinching victory over Australia in Sydney yesterday. On a slow pitch, similar to that which England failed to fathom during last year’s Champions Trophy semi-final loss to Pakistan, Buttler notched a majestic century as his side posted 302-6. England had been struggling on 189-6 before Buttler and Chris Woakes struck 102 in the final 10 overs, an acceleration which proved too much for Australia as they could only muster 286-6 off their 50 overs.

Morgan also had to contend with being robbed of seamer Liam Plunkett, who departed after bowling only eight deliveries due to a hamstring injury, although England prevailed by 16 runs to take an unassailable 3-0 series lead. “This is certainly right up there,” said Morgan. “It [Buttler’s innings] was a huge contribution in what was our best performance as a group to date, throughout the last two years. “Throughout the game today there were a lot of questions asked of us. With the bat, the way the pitch turned out, it wasn’t as good as we thought it would be, and we never really got away from Australia. “It was a bit of a cat fight for quite a stage and Jos anchored the innings until the 40th over and then really

Buttler notched his fifth one-day international century

did pull the trigger.” England looked to be heading towards a score of around 250 at best before Buttler and Woakes instigated late fireworks. Buttler, whose first 50 was made in relatively sedate fashion, went ballistic in the closing stages, clubbing fours and sixes around the ground, while Woakes was by no means a silent partner and added an invaluable 53. Wicketkeeper-batsman Buttler scampered two runs off the final delivery to bring up his fifth one-day international ton – his slowest at 83 balls – before England took a steady stream of wickets as Australia failed to keep up the required run-rate. Seamer Mark Wood, Woakes and leg-spinner Adil Rashid all snared two wickets apiece.

RUGBY UNION

Relief as back-to-back winners Sarries reach Europe’s last eight ROSS MCLEAN @rossmcleanRMAC DEFENDING champions Saracens will travel to Leinster in the quarter-finals of the European Champions Cup after squeezing through to the knockout stage yesterday as the third-best secondplaced team. The Premiership outfit, who have conquered Europe in each of the last two seasons, progressed after Dai Young’s Wasps beat Ulster 26-7 at the Ricoh Arena. Sarries, the only English side to reach the tournament’s last eight, did all they could on Saturday by running in seven tries and thrashing Northampton Saints 6214 at Allianz Park. Their qualification hopes boiled down to Wasps and their bonuspoint success was secured courtesy of tries from flanker Guy Thompson, hooker Tom Cruse, fullback Willie le Roux and prop Jake Cooper-Woolley, although it was

not enough to secure their own progress. Defeat ended Ulster’s hopes of making the knockout phase for the first time since 2014. Despite winning four of their six group matches, they only collected one bonus point which proved decisive. Saracens’ quarter-final clash, which will take place between 29 March and 1 April, will prove an intriguing battle as the reigning tournament winners go head to head with the only side still unbeaten in this term’s competition. As well as Leinster, La Rochelle, Clermont Auvergne, Munster and Scarlets – the first Welsh region to qualify for the quarter-finals in six years – also came top of their pools. The remainder of the last-eight draw sees Scarlets host La Rochelle, three-time winners Toulon travel to Munster and last season’s runnersup Clermont Auvergne play Racing 92 at the Parc des Sports Marcel Michelin in an all-French tie.

GOLDEN EAGLES RUGBY SEVENS LONDON DINNER

GOLF

Hungry Fleetwood off mark as he retains Abu Dhabi title FRANK DALLERES @frankdalleres ENGLAND’S Tommy Fleetwood insists he is hungrier than ever after he made a winning start to the year by retaining his Abu Dhabi Championship title yesterday. Fleetwood carded an eight-underpar final round of 65, which included six birdies on the back nine, to finish on 22 under, two shots clear of compatriot Ross Fisher. The 27-year-old from Southport won last year’s Race To Dubai but revealed he had tried to disregard

his achievement during the winter break in a bid to avoid complacency. “I wanted to prepare for this year like I didn’t win the Race to Dubai,” said Fleetwood. “It was important to come out and make sure I’m hungry. My best golf is getting better and better, and my worst golf is getting better as well.” Former world No1 Rory McIlroy finished tied for third with England’s Matt Fitzpatrick on 18 under par. McIlroy’s challenge for a first title in more than a year faded after the turn with a run of seven pars and a bogey.

THURSDA AY 31ST MA AY 2018 Smith & Wollensky W sky, y,, Covent Garden, G den, London A unique opportunity to dine with the Golden Eagles Rugby 7s team in one of London’ finest restaurants, London’s W estaurants, Smith h & Wo Wollensky. Please join USA Rugby Tr Trust for an Trust a intimate and exclusive dinner with the USA Rugby 7s team ahead of the London stop of the HSBC Wo World Rugby World Rug Sevens Series. Guests will be welcomed with champagne and opportunity to mingle with Wollensk the team, followed by a famous Smith & Wo Wollensky steak dinner with wine. The night will featur feature e interviews and Q&A session with players and coaches as well as a small auction. Proceeds from Pr om the event benefit the Men’ Men’ss Eagles Sevens team as they build towards the Japan 2020 Olympics. towards A very special, memorable night in the company of the whole team and coaches.

Book online at www www.vultd.co.uk .vultd.co.uk Call 01225 788880 @vu_ltd

VUhospitality y

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27


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