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HAMMOND’S BREXIT ROW FRIDAY 26 JANUARY 2018

ISSUE 3,049

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TREMENDOUS Trump pledges increase in UK trade with America

CHANCELLOR PROMISES ONLY ‘VERY MODEST’ CHANGES IN UK’S RELATIONSHIP WITH THE EU

CATHERINE NEILAN @CatNeilan PHILIP Hammond triggered a major backlash from Tory backbenchers yesterday, after he told Britain’s biggest business group that Brexit would involve “very modest” changes to the status quo. The chancellor told a CBI lunch at Davos that he was aiming to maintain “highly aligned regulatory systems” and “the closest possible future relationship between the EU and the UK, post-Brexit”. “We are taking two completely interconnected and aligned economies with high levels of trade between them, and selectively, moving them, hopefully very modestly, apart,” Hammond added. “And so we should be confident of reaching something much more ambitious than any free trade agreement has ever achieved.” His comments were seized upon by Leave advocates as a sign he was once again pushing a soft Brexit agenda. Senior backbencher Jacob ReesMogg, who heads up the pro-Brexit European Research Group, told City

A.M. the speech was “a grave error”. “It misses all the opportunities of Brexit... and I don’t think it’s government policy either,” Rees-Mogg said. “If we have a high level of regulatory alignment with the EU that makes deals pointless because we won’t have the flexibility to do anything differently,” he added. Bernard Jenkin, chair of the Public Administration and Constitutional Affairs Committee, agreed. “The chancellor has been playing blow football with the Prime Minister’s policy for some months, and it would be a good idea if he supported her,” he said. “The PM has been very clear... she wants us to take back control of our laws and borders, and she wants to take back control of our ability to do deals with other countries.” Henry Newman from think tank Open Europe said Hammond’s comments “risk opening a severe public row over Brexit”. He added: “It would be better to avoid such a row but we do need an answer to the question of where we want to end after Brexit – it’s just that Hammond has got it wrong.”

Former work and pensions minister Iain Duncan Smith said he was “puzzled” by the chancellor’s intervention, saying it marked a “substantial change” from the government’s position during the election, and argued that Rees-Mogg’s stance was “much closer to where the government was... and needs to be.” Hammond was later forced to clarify his comments, tweeting: “I said in Davos that the government wants to minimise any reduction in access to EU markets post-Brexit. “And it’s a fact our economies are integrated, that’s the baseline from which we leave the Single Market and customs union – which clearly represents change. For anyone concerned – I was clear... the UK will cease to be member of the EU on 29 March 2019”. Number 10 Downing Street issued a strong rebuke to the chancellor, despite his clarification. “While we seek a very deep and special economic partnership with the European Union after we leave, these could not be described as very modest changes,” a spokesperson said. £ PM EXPECTED TO CLING ON: P4

CATHERINE NEILAN @CatNeilan PRESIDENT Donald Trump insisted yesterday that the US would help boost trade with post-Brexit Britain. “One thing that will be taking place over a number of years will be trade. The trade is going to increase many times and we look forward to that,” Trump said, following a bilateral meeting with Theresa May in Davos. “The trade concepts and discussions, the discussions really I think I can say most importantly that will be taking place are going to lead to tremendous increases in trade between our two countries, which is

great for both in terms of jobs.” Earlier in the day US treasury secretary Steve Mnuchin denied Trump’s administration was provoking trade wars, and said the UK was “at the front of the line” for negotiating new deals. Trump also rekindled the prospect of a visit to Britain, following a period of frosty relations between his administration and the UK. Trump said disagreements between himself and the PM were a “false rumour”, adding: “I have tremendous respect for the Prime Minister and the job she’s doing. And I think the feeling is mutual from the standpoint of liking each other a lot.”

In da bitcoin club: 50 Cent finds millions in cryptocurrency COURTNEY GOLDSMITH

Rap star 50 Cent

@courtneynoelg RAPPER 50 Cent has become a bitcoin millionaire after discovering a long-forgotten hoard of the cryptocurrency. Back in 2014, 50 Cent became the first artist to take bitcoin as payment for his album Animal Ambition.

He received more than 700 bitcoins through album sales, which he had forgotten about until recently. With today’s price of between $10,000 and $12,000, 50 Cent has about $7m to $8m (£4.9m to £5.6m) in the digital currency. Back in 2014, one bitcoin was worth well below $1,000. The story was first published by

celebrity news site TMZ. In a post on Instagram, the artist confirmed the news, saying: “Not bad for a kid from the South Side. I’m so proud of me.” With the value of bitcoin rocketing up over 2017, many have gone searching for lost login information and old hard drives full of bitcoin, but not everyone has been successful.

In December, one unlucky Welsh IT worker who was an early investor in bitcoin realised he’d thrown out his old computer with the ownership codes to 7,500 bitcoins. January has been another rollercoaster month for bitcoin, which started the new year at around $13,000, climbing to $17,000 in a week and before falling back to between $10,000 and $12,000.

FTSE 100 ▼ 7,615.84 -27.59 FTSE 250 ▼ 20,521.74 -16.72 DOW▲ 26,392.79 +140.67 NASDAQ ▼ 7,411.16 -3.90 £/$ ▼ 1.411 -0.013 £/€▼ 1.140 -0.008 €/$▼ 1.237 -0.003


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FRIDAY 26 JANUARY 2018

CLOSER TO MIDNIGHT Bulletin of the Atomic Scientists inch their symbolic Doomsday Clock forward by another 30 seconds

THE CITY VIEW

Asos is in for a fashion face-off with Amazon

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HAT do Debenhams, House of Fraser, Mothercare and Asos not have in common? Cracking Christmas clothing sales. While the high street’s stalwarts struggled to attract bargain-hunting shoppers over the festive season, their smaller online-only rival yesterday revealed a 30 per cent rise in sales for the final four months of 2017. Asos, or as As Seen on Screen, floated on the Alternative Investment Market in 2001 for 20p a share. Today those shares are worth more than £70 a pop, valuing the fashion retailer at £5.9bn – a cool £1bn more than the retail industry’s bellwether Marks and Spencer. The north London-based company’s progress is thanks to a strategy of beating household names to the punch. From its product range to delivery service and social media presence, it has made the twentysomethings skip trips to shops. All this without the hassle and investment of shop estate. But having a first-mover advantage isn’t bullet-proof. As with any industry, someone better is right around the corner. For Asos, that someone could be Amazon. The e-commerce giant is currently trialling its “try before you buy” Prime Wardrobe service in the US. The new feature allows customers to order three or more items without paying for them up front. Members have a week to decide which items they want to keep and return. What’s more, shoppers are offered a hefty 20 per cent discount when they keep five or more items. And if customers don’t like any items, they put it back in Amazon’s resealable box which comes with a prepaid label for returns. Rumour has it that Amazon is bringing the Prime Wardrobe service to the UK, which would put it directly in the path of Asos’ growth. No doubt Asos has ambitious expansion plans. Just last year it opened a new distribution centre in Berlin and another one in Atlanta is on the cards for this year. But to remain a retail darling, Asos needs solid ammunition to fight a force like Amazon that has access to swathes of consumer data, let alone billions of dollars at its disposal. It’s also worth noting that the American behemoth’s strategy involves dominating sectors by acquisitions. And for years City analysts have said that Asos has a big Amazonshaped target on its back. This fashion face-off is one to watch.

SCIENTISTS yesterday moved the Doomsday Clock by half a minute, saying the world was at its closest to annihilation since the height of the Cold War, due to world leaders’ poor response to threats of nuclear war. It was the second time it has been moved forward since US President Trump’s election. The demise of diplomacy under his administration, they said, was a key concern.

US CORPORATE RESULTS ROUND UP STARBUCKS’ RECORD RESULTS MISS EXPECTATIONS

INTEL SMASHES THROUGH WALL STREET PREDICTIONS

£ Though coffee chain Starbucks hit record net revenue of $6bn (£4bn) as it announced its first-quarter results after the bell last night, its shares dropped by more than three per cent in after-hours trading. Investors were disappointed that sales at American cafes were up just two per cent, compared to a Consensus Metrix expectation of 3.3 per cent. The chain warned 2018 global cafe sales growth would be at the low end of its forecast.

£ Technology company Intel gave a bullish forecast, as revenue for the year was up six per cent. It said it would boost dividends by 10 per cent to an annual $1.20, as fourth-quarter revenue exceeded $16.35bn estimates to hit $17.05bn. Data centre sales were strong, as the company diversified from being a PC supplier. Analysts brushed off a concession from Intel that security flaws in its chips could hurt future results.

FIAT CHRYSLER CONFIDENT OF TURNAROUND TARGETS

CATERPILLAR SEES STELLAR SALES ON BUOYANT DEMAND

OIL COSTS MEAN FARE HIKES, WARNS AMERICAN AIRLINES

£The boss of Fiat Chrysler said yesterday he was confident that most of the targets in his five-year turnaround plan would be a hit. The vehicle maker announced strong results, as North America profit margins rose to eight per cent after a focus on more lucrative trucks and sport-utility vehicles. The company did warn that 2018 results would be at the lower end of expectations, but expects to become debt-free over the year. The chief executive said the business no longer needs to merge to survive.

£ Heavy-duty equipment manufacturer Caterpillar beat expectations yesterday, as an increase in sales marked a dramatic turnaround from declines in recent years. Caterpillar benefitted from an uptick in the global economy as sales surged 35 per cent on strong global demand for construction, mining and energy machines. The biggest rise came from North America, Caterpillar’s biggest market, led by demand for construction and on-shore oil and gas machinery.

£ Shares in American Airlines took a dive yesterday, as the company reported an 11 per cent drop in fourth-quarter profit. The firm blamed rising labour and fuel costs, saying that it may raise fares to deal with the pressure. Yet American has arguably brought much of this on itself, as it stunned investors last year by offering pilots and cabin crew a mid-contract pay rise. Despite the disappointing profit, earnings per share of $0.95 beat consensus figures of $0.92.

Follow us on Twitter @cityam FINANCIAL TIMES

GVC HIT BY €200M GREEK TAX BILL

Online gambling firm GVC has been forced to set aside €200m (£175m) over a disputed tax claim by Greece, through which it could be forced to pay a bill worth around a quarter of its annual revenues. The FTSE 250 firm, which is in the midst of a £4bn takeover of UK bookmaker Ladbrokes Coral, said it had received a tax bill worth €186.77m by the Greek taxman. GVC said it was taking legal advice over the matter, believing it has “strong grounds to appeal the assessment” in Greek court.

BANK OF ENGLAND SUFFERS TECH GLITCHES

The Bank of England yesterday said a

WHAT THE OTHER PAPERS SAY THIS MORNING

THE TIMES

CORBYN SACKS LABOUR PEER WHO ATTENDED GALA

The Labour peer Lord Mendelsohn last night became the first political casualty of the controversial Presidents Club dinner after he was effectively sacked from the party’s front bench for attending the gala event.

TRUMP SET TO MEET QUEEN AS UK VISIT CONFIRMED

limited number of transactions were being affected by technology problems after an internal IT update earlier in the day. The issue did not affect the realtime gross settlement (RTGS) service.

US President Donald Trump will come to Britain this summer for a working visit likely to include a meeting with the Queen. Trump and Prime Minister Theresa May agreed the outline of the stripped-down trip – without the pomp of a state visit – in Davos yesterday.

THE DAILY TELEGRAPH

THE WALL STREET JOURNAL

RUSSIA READY TO ‘KILL THOUSANDS’

SAUDI GIANT SNAPS UP CLARIANT FROM ACTIVISTS

Russia could cause “thousands and thousands and thousands” of deaths in Britain with an attack which would cripple the UK’s infrastructure and energy supply, the defence secretary has warned. Gavin Williamson says Moscow has been researching the UK’s critical national infrastructure and how it connects to continental power supplies with a view to creating “chaos”.

FINES MULLED FOR GAMING FIRMS’ AD BREACHES

The gambling watchdog is seeking new powers to fine bookmakers for breaking ad rules as part of a consultation aimed at better protecting consumers.

Saudi Basic Industries said yesterday it has acquired a roughly 25 per cent stake in Clariant from US activist investors, making it the biggest shareholder and triggering a sharp fall in the Swiss chemicals company’s share price. The deal looks set to settle a period of turbulence for Clariant.

BIGGEST PRODUCER DOUBLES COBALT TAXES

The Democratic Republic of Congo is moving to double taxes on cobalt, a move mining companies warned would inhibit investment in a metal experiencing a boom due to its use in cellphones and electric vehicles.


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Provi caught in fund royal rumble OLIVER GILL @ojngill TROUBLED doorstep lender Provident Financial is at the centre of a power struggle between some of Britain’s most revered fund managers. Mayfair stalwart Lansdowne Partners is leading the charge for short sellers, betting against the fortunes of the Bradford-based bank, and is joined by Carillion conqueror Marshall Wace.

In the opposite corner star manager Neil Woodford is steadfastly supporting Provident and earlier this week upped his stake to 23 per cent. Retail fund giant Invesco also owns 22 per cent of the sub-prime lender’s shares. Last week Provident Financial said full-year losses would top £120m. The firm was dumped out of the FTSE 100 last year after revealing a number of financial and operational problems as well as a watchdog probe into poten-

tial mis-selling of a PPI-style product. Hedge funds took profits in December, reducing bets against Provident. However, since 10 January they have steadily risen from 13.97 per cent to almost 18 per cent, according to IHS Markit. Last week analysts predicted a rights issue had become “increasingly likely”. Lansdowne, one of London’s oldest hedge funds, has the biggest punt against Provident, holding a net short position of 2.19 per cent.

Star fund manager Neil Woodford is backing Provident

Global activist short-selling fell last year

Mnuchin and Trump musings rattle US dollar

LUCY WHITE

EMMA HASLETT AND JOSH MARTIN

@LucyGJWhite THE NUMBER of short-selling campaigns which activist investors ran last year fell dramatically, according to new data from Activist Insight, as hedge funds were forced to search harder for overvalued targets. Globally, the number of activist short campaigns – where an investor publicly takes a short position, selling borrowed stock in the hope that the price will fall so it can pay a lower price to the lender – fell by 30 per cent to 185. In the UK, however, the total rose slightly from three to four as the year saw high-profile campaigns against companies including retailer Boohoo and debt collector Arrow Global. “It was a challenging environment for our investment style,” wrote David Einhorn of Greenlight Capital in a letter to investors this month, though he added that the firm would not “capitulate” and would stick to its strategy of “shorting ‘not value’” companies. Boohoo was heavily shorted by Man Group subsidiary AHL Partners last year, as short investors called the online fashion retailer “overvalued”. Bybrook Capital took to the floor meanwhile to criticise Arrow Global, saying it and certain other debt collectors “have no equity value”. Hedge fund Kerrisdale Capital released a report on Neil Woodfordbacked tech incubator Allied Minds, declaring it didn’t believe any of its portfolio businesses had “real value”. The data also found that a higher proportion of activist campaigns were driven by fraud allegations as opposed to “simple overvaluation”. Daniel Loeb said that the short selling team at his hedge fund, Third Point, achieved strong performance “by focusing on idiosyncratic factors ranging from misleading accounting to outright fraud to trends across industries”.

@emmahaslett @JoshMartinNZ THE POUND briefly nosed above $1.43 in early trading yesterday, a postBrexit vote high, as markets digested comments from US treasury secretary Steve Mnuchin – only to be contradicted by his boss President Trump. The pound rose as high as $1.4326 in morning trading, while the euro breezed to $1.2458, having risen to its highest since the end of 2014 on Wednesday. The dollar was sent lower by comments from Mnuchin at Davos, who said a weaker dollar is “good for us as it relates to trade and opportunities”. “[Mnuchin] also pointed out that he isn’t concerned by where it is in the short term and that in the longer term, its strength is a reflection of the strength of the US economy,” said Kit Juckes from Societe Generale. “In other words, he said very little really, but he said it under snowplastered slopes and he was speaking to a market where dollar bulls have been under the cosh. A few more capitulated.” Later in the day US President Donald Trump waded into the issue, saying Mnuchin had been “misinterpreted”, which reversed the gains sterling had made. “The dollar is going to get stronger and stronger and, ultimately, I want to see a strong dollar,” said Trump.

POUND HITS POST BREXIT HIGH 1.43

£/$

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Billionaire George Soros has been particularly outspoken against the Trump administration

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Soros lambasts tech giants as ‘a menace’ LUCY WHITE @LucyGJWhite HEDGE fund veteran George Soros launched an attack on social media giants such as Facebook and Google last night, saying they were a “menace” and accusing them of “deliberately engineering addiction”. Soros compared the platforms to gambling businesses, saying they

may be permanently damaging to human attention, while speaking at a World Economic Forum dinner in Davos. He added that some tech companies may fall into “unholy marriages” with Western-opposed regimes, which could give them “totalitarian control the likes of which not even Aldous Huxley or George Orwell could have imagined”.

On bitcoin, Soros denounced the cryptocurrency as “a speculation based on a misunderstanding” rather than an actual currency. He claimed its price will be “propped up by dictators” who will use it to “build their nest eggs”. Soros also called US President Trump a “temporary phenomenon”, and accused him of wanting to create a “mafia state”.


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FRIDAY 26 JANUARY 2018

CITYAM.COM

PM May will stay as Tory MPs liken party to Italian Job cliff edge scene CATHERINE NEILAN @CatNeilan TORY MPs have likened the party to the infamous cliff-edge scene at the end of film The Italian Job, warning that if a leadership challenge is mounted against Theresa May it could leave the Conservatives in free-fall. Three former ministers spoken to by City A.M. said the Prime Minister would be able to keep clinging onto

power by virtue of the overall vulnerability – although many would willingly jettison their leader if they thought the party could survive. One senior MP said: “We are that coach, teetering on the edge of the cliff right now, and no one knows whether to throw the cargo overboard or not. The local elections will absolutely be a flash point as to whether the whole Tory party falls off the cliff or whether it’s just the ‘cargo’.”

He said there was widespread “misery” among MPs who feared a leadership contest would prompt another election at a time when the Conservatives are at their weakest in years. Another ex-Cabinet minister said it was “all very shaky”, while a third said the party was “just so precarious”. “We have weak leadership, a party that isn’t going anywhere and stands for nothing,” said the latter.

One ex-minister likened the state of the Tory party to the climax in The Italian Job

Davis: We will start trade deals during transition CATHERINE NEILAN

@CatNeilan BREXIT secretary David Davis will set out his vision for the UK’s demands for the shape the transition period will take after the UK leaves the EU. The minister will travel to Middlesborough today, where he will stress that the UK will “once again have its own trading policy”. “For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe," Davis will say. He is expected to highlight emerging markets, specifically China and Brazil, as trading partners of growing importance. “We will be able to do so much more with them, when we are an independent trading nation, outside of the EU,” he will say. Davis will highlight the ongoing

restrictions that mean the UK cannot begin negotiating trade deals until we have left the bloc, but while we will “replicate the effects” of the customs union, it will “not preclude us from formally negotiating — or indeed signing — trade agreements”, the minister will say. The government has come under pressure to show evidence that trade deals are in the pipeline, and that the country is open for business. Davis’ speech comes during a week in which Brussels has set out its parameters for the next phase of talks ahead of the start of formal discussions. According to documents out this week, the EU expects all its laws and regulations to apply during the transition period, but the UK will not participate in the decision-making of the EU, meaning the UK will have no say on any laws made during the period.

City ‘best primed’ for no deal says study but Dimon disagrees CATHERINE NEILAN AND EMMA HASLETT @CatNeilan @emmahaslett THE EFFECT of the UK crashing out of the European Union without a deal on financial services would be “almost entirely negligible”, a new study has concluded. While service industries including professional, science and tech face huge disruption, new research by academic group The UK in a Changing Europe found the City is one of the least vulnerable to economic shocks if no deal was made. This is due to the sector’s “highly globalised” nature which has a “low dependence on EU markets”, the report claims.

Other sectors would not be so lucky, however. The research goes on to suggest that a no-deal scenario puts £140bn of economic activity “directly at risk”. However, bank bosses have contradicted the claims. JP Morgan CEO Jamie Dimon yesterday again warned that the US investment bank may move thousands of jobs out of the UK after Brexit. In Davos, Dimon said if talks between the UK and the EU lead to a divergence in banking rules, the lender will cut its 16,000strong workforce in the UK by 4,000. Goldman Sachs boss Lloyd Blankfein also told the BBC: “We’ve rented...10 floors in a new building in Frankfurt because we think we’ll have to have that many people there.”


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Draghi slams Mnuchin over dollar comment

LUCY WHITE AND REBECCA SMITH

@LucyGJWhite @BexKSmith ONE OF Europe’s most high-profile bankers sharply criticised US Treasury secretary Steven Mnuchin yesterday, over comments on the dollar which broke international rules. Mario Draghi, the president of the European Central Bank (ECB), accused Mnuchin of influencing euro-dollar exchange rates by saying a weaker greenback is good for US trade. Mnuchin’s comments, made at the World Economic Forum in Davos, broke rules agreed upon by International Monetary Fund members, Draghi alleged. “The exchange rate has moved in part because of endogenous reasons, namely the improvement in the economy, in part due to exogenous reasons that have to do with communication,” said Draghi. “But not by the ECB, but by someone else. This someone else’s communication doesn’t comply with the agreed terms of references.” Draghi issued his reproval in Frankfurt, as he delivered the ECB’s

decision to keep interest rates unchanged at record lows. Questions had been building over how the ECB would tackle the euro’s rise against the dollar – something threatening to impact inflation – and Draghi conceded that “the recent volatility” in the exchange rate needed monitoring. But he added that the ECB expected interest rates to remain low “well past” the end of its quantitative easing programme. “Overall, an ample degree of monetary stimulus remains necessary for underlying inflation pressure to continue to build up and support headline inflation developments over the medium-term,” he said. The theory is that lower interest rates will allow consumers to borrow and therefore spend more, causing inflation to rise. Draghi said economic data indicated “solid and broad” growth with inflation likely to rise in the mediumterm. The euro shot up to a three-year high of $1.2511, levelling off to around $1.2492 late last night.

NEWS

‘Not the City I recognise’: Morrissey kicks off Presidents Club rival event LUCY WHITE @LucyGJWhite CITY veteran Dame Helena Morrissey has launched a rival dinner to the widely condemned Presidents Club charity fundraiser, at which a number of female waitresses were found to have been sexually harassed in an investigation earlier this week. Morrissey, head of personal investing at Legal & General

Investment Management, has already garnered support from names such as Schroders, M&G and Aviva to run an event which will raise money for the charities which have felt compelled to give back donations from the Presidents Club. The dinner, to be held at Mansion House, will aim to have a even attendance between men and women in contrast to the Presidents Club male-only invitation list.

“I feel very strongly that most men I work with are as keen as anyone on gender equality,” Morrissey said. She told City A.M. that the image presented by the allegations of groping and lewd approaches by men at the Presidents Club was “absolutely not the City I recognise”. “This is the death throes of the old regime,” Morrissey added, saying that such behaviour is no longer being tolerated in the City.

BUBBLING OVER Moet and Louis Vuitton parent LVMH celebrates a record 2017

LUXURY brand conglomerate LVMH saw record revenues yet again last year at €42.6bn (£30.1bn). Strong performance in China helped to boost sales, while LVMH’s wines and spirits branch saw growth in all regions. The 2017 acquisition of Christian Dior Couture was also tagged as a highlight.

MPs expect more answers from Twitter in fake news inquiry LYNSEY BARBER @lynseybarber ONLY ONE per cent of 13,500 accounts identified as active only during the Brexit vote by a group of researchers were registered to Russia, Twitter has told a fake news inquiry. Twitter and Facebook were first given a ticking off late last year over “inadequate” responses to a fake news inquiry by the Digital, Culture, Media and Sport Select Committee. In a letter, the social media company has told committee chair Damian

Collins that a tiny proportion of 13,500 accounts identified as bots by a group of researchers were registered to Russia. The tech firm concluded that there was little evidence of a link between the bots and Russia. But Collins said the committee was not satisfied with the response, which has left “outstanding questions” that remain unanswered as well as further ones in light of the response. He added that he expected a further response before the company and other technology firms give evidence to the committee on 8 February.

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Taste the Hunter Valley before you even arrive Fly Qantas from London Heathrow to

Sydney from £3,499* Business return Book now at qantas.com *Offers end 23.59PM (GMT) 30 January 2018 unless sold out before. Offers are based on departures between 06 August to 27 August 2018, and 01 December to 31 December 2018, Sunday to Thursday. Selected travel dates and days apply. Flights are via Singapore, subject to government and regulatory approval. Availability may be limited and fares may not be available on all flights. Prices include taxes, fees and carrier charges payable to Qantas (excluding any amounts payable to third parties at the airport) and are based on payment at qantas.com. Prices are current as at 25 January 2018. Prices may fluctuate if taxes or foreign exchange rates change. An additional £40 per passenger per booking applies for Friday and Saturday departures. Check the fare rules for more details before booking. All schedules subject to change, including last minute aircraft changes. Other conditions apply. See qantas.com for details.


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FRIDAY 26 JANUARY 2018 IN BRIEF

Records fall but CMC warns of crackdown woes OLIVER GILL

@ojngill REGULATORY uncertainty yesterday took the gloss off record third-quarter trading at spreadbetting firm CMC Markets. Shares in the FTSE 250 firm rose by over two per cent after it announced revenue per client had swelled by a third over the three months to December. Revenue rose by 26 per cent in the year-to-date. The number of active clients fell by six per cent over the three month period, though the spreadbetting firm insisted its share of high-value clients had grown. Last Thursday, European regulators published a 20-day call for evidence to crack down on the spreadbetting sector. Plans included a cap on leverage limits to between 30x and 5x and restrictions on trading incentives. CMC said it was “confident” a focus on high-value customers would pay dividends. “However, the regulatory

uncertainty continues and the group remains cautious around the impact any potential changes could have on group performance in the shortterm,” it said. Peel Hunt analyst Anthony Da Costa said: “Net operating income is currently at a record level. CMC’s continued focus on targeting high-value and experienced clients underpins the momentum and positions it well when potential regulation comes into effect.”

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CITI NAMES NEW COMMODITIES HEAD

Citigroup has found a new head for its commodities branch, after moving Stuart Staley to the Asian markets and securities unit. Jose Cogolludo was formerly Citi’s global head of sales for commodity derivatives, and helped Staley make the bank’s commodity business one of the largest on Wall Street.

DEUTSCHE BANK UNIT ATTRACTS NET INFLOWS

J&J’s decision to steer clear leaves Pfizer with one less large bidder

J&J out of race for Pfizer’s huge consumer unit as deadline looms PAMELA BARBAGLIA

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JOHNSON & Johnson (J&J) has pulled out of the race to buy Pfizer’s consumer health business, leaving Glaxosmithkline and Reckitt Benckiser among those preparing bids, according to sources familiar with the matter. Bidders have until 1 February to submit their non-binding offers for

the unit, which makes Advil painkiller, Centrum multivitamins and Chapstick lip balm, five banking sources said. US drug maker Pfizer, which has not made public any details about the sale process, wants to sell the business for no less than $20bn (£14bn), two of the sources added. J&J was widely seen as one of the Reuters strongest contenders.

Deutsche Bank’s asset management unit, which is aiming for a stock market flotation, recorded net asset inflows of €15.8bn (£13.75bn) in 2017, recovering from outflows the previous year, a bank presentation showed yesterday. In 2016, the unit saw nearly €40bn in outflows as the bank struggled with US legal fines. Last year marked a return to normality, like 2015’s €19bn inflows.

OIL SURGES AHEAD

The price of Brent crude oil broke the $71 per barrel level yesterday for the first time since 2014, after US crude inventories fell and the dollar weakened. Brent crude oil climbed to a high of $71.28, while the US benchmark, WTI, rose above $66. It broke the $65 mark for the first time in three years on Wednesday, boosted by the tenth straight week of US inventory declines. Accendo Markets analysts said the US data added to bullish speculation over output cuts by Opec, which has hinted that “cooperation” will continue beyond 2018.

Spreadbetting firm slapped with £1m BT pension trustee head fine for ‘serious and systematic’ failings steps down after valuation OLIVER GILL @ojngill THE CITY’S top regulator yesterday fined a London-based contracts for differences broker more than £1m for failing to report “suspicious client transactions”. Interactive Brokers (UK) was slapped with a penalty of £1,049,412 for failings between February 2014 to February 2015 by the Financial Conduct Authority (FCA), which

labelled the breaches “serious and systematic”. The watchdog said Interactive Brokers also had “poor market abuse controls”. The broker delegated its post-trade monitoring to a team in the US. The FCA said Interactive Brokers’ systems were not up to scratch and failed to provide effective oversight of the US team’s conduct of the reviews of the reports produced. “It carried out no quality assurance or monitoring of the

review of the reports, and it failed to ensure that the staff conducting the reviews were adequately trained.” An Interactive Brokers (UK) (IB UK) spokesperson said the firm “disagreed” with the FCA’s proposed findings. The FCA’s regulatory decisions committee reduced the fine by 50 per cent to £1m because the original penalty was “disproportionate”, the person said, adding: “IB UK has elected not to further appeal this fine.”

OLIVER GILL

@ojngill THE HEAD of BT’s pension scheme trustee is stepping down upon conclusion of its 2017 actuarial valuation. Eileen Haughey joined the scheme five years ago, overseeing a period of substantial change. BT trustee chair Paul Spencer said the board was “very sorry” to see Haughey leave and praised her “immense contribution”. The telecoms giant is expected to

publish further details of its threeyear pension valuation later this year. Haughey’s resignation comes as a consultation closed on a raft of changes to BT’s mammoth retirement fund – estimated to have a deficit of up to £14bn. The Communication Workers Union launched a social media campaign against the changes, which include closing the scheme to managerial grade staff and requiring other workers to make larger contributions in the future.

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CITYAM.COM

Crest Nicholson boss says he was wrong on Brexit hit to economy REBECCA SMITH @BexKSmith EARLIER this week Lord O’Neill said he felt the Brexit outlook for Britain was brighter, and now the boss of housebuilder Crest Nicholson has said he was wrong on Brexit. Speaking to BBC Radio 5 Live’s Wake Up to Money yesterday, Stephen Stone said he had been “very concerned” about the potential hit to the economy from the referendum vote.

“I was very concerned about the impact that might have on the economy, so we stopped buying land for a period which is why we ended up with more cash on the balance sheet at the end of that year than we might have done,” he said. “But it’s fair to say I got that wrong, and a lot of other people now accept they’ve got that wrong – the economy is proving to be reasonably robust, we’re still seeing high levels of employment, low interest rates, and they’re the factors that are

supporting the new build housing market.” Stone is currently chief executive at Crest Nicholson, but will become executive chairman with Patrick Bergin taking on the role of chief executive. This week, the housebuilder reported increased sales and profit last year, saying the outlook for the UK housing market was strong. Stone said political factors had introduced some uncertainty, but he expects the market to remain robust.

Stephen Stone said the outlook for the new-build housing market was strong

Foxtons earnings slump as London market slows REBECCA SMITH @BexKSmith ESTATE agent Foxtons said yesterday group revenue for the year ended 31 December was down more than 10 per cent on 2016, as it forecast a chunky drop in profit for the full year. The agent said it had faced ongoing challenging conditions in the London property market and warned it foresees trading conditions to remain tough for the year ahead. Foxtons said its performance was in line with the board’s expectations as group revenue dropped 12 per cent on 2016’s total to £117m, with revenue for the quarter ending 31 December at £24m, compared to £26m for the same period the year before. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) for the full year is expected to come in at £15m – a 39 per cent fall on 2016’s £24.6m. It also announced a £2m non-recurring charge as it manages the cost base “for the future benefit of the business”. A bright note for Foxtons was that group cash performance for the year was solid, with year-end cash around

£18m compared to 2016’s £9.5m. Shares picked up more than five per cent in afternoon trading, but closed up 2.84 per cent. Foxtons’ chief executive Nic Budden said the update reflected “a solid performance in the context of ongoing challenging conditions in the London property market”. He expects tough trading conditions to continue, but said Foxtons is “well placed” to deal with them. The firm said the drop in full-year revenue was driven predominantly by the hefty fall in sales volumes in the first quarter of 2017, as it paled in comparison to the bumper equivalent quarter for 2016 when transactions surged ahead of stamp duty changes.

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UK mortgage approvals fall to a four-year low CAITLÍN MORRISON

Asos persuaded more customers to purchase items regularly with new services

Millennials splash the cash on fast fashion as Asos sales soar ALYS KEY @alys_key ASOS sales jumped again in the last four months of 2017, as the online retailer picked up more millennial customers from around the world. Total retail sales soared 28 per cent on a constant currency basis to £790.4m, pushing group revenue to £808.4m. The UK remains its single largest market, and growth showed no signs of slowing down with a 23 per cent leap to £300.9m in sales. International sales were up 32 per

cent to £489.5m. Sales to the EU were up 34 per cent at £235.2m, while the US sales rose 28 per cent to £102.4m. Sales in the rest of the world grew 32 per cent to £151.9m. Shares closed three per cent higher at 7,080p. Asos has not only upped its sales, it has driven up customer engagement. Active customers were up 19 per cent in the period, while the average basket value also increased by three per cent and order frequency increased eight per cent.

@citycait UK MORTGAGE approvals fell to their lowest level since April 2013 in December, with banks signing off 36,115 home loans. This represents a 19 per cent drop on the previous December, and was lower than the 39,007 approved in November, according to figures out yesterday from UK Finance. The level last month was also significantly lower than the longterm average of 51,609 monthly approvals. Annual growth in consumer credit slowed to 0.7 per cent from 0.8 per cent, the weakest reading since UK Finance started publishing a new version of this data in April 2017. “December’s sharp drop in mortgage approvals suggests that already pressurised housing market activity took a further hit from the Bank of England raising interest rates in early-November,” said Howard Archer, chief economic adviser at EY. “Housing market activity has been under pressure from squeezed consumer finances and fragile confidence.” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the figures pointed to a difficult year for the housing market.

Sky revenues and profits fly as it plots future without satellite dishes REBECCA SMITH

The firm plans to give customers an option of not having a satellite dish

@BexKSmith BOTH profits and revenues are on the rise at Sky, as the firm yesterday announced plans for a future without satellites. It has unveiled plans to launch Sky without a satellite dish, with all channels and on-demand content streamed over IP, which uses an existing wireless home network.

The company said it was “a major development” that will “open up headroom in existing markets” and signal a way to take Sky into new markets. It plans to launch this first in Italy and Austria, before rolling it out across all its key markets. The satellite broadcaster reported a five per cent rise in like-for-like sales for the six months to 31 December to a total of £6.7bn.

Pre-tax profit was up 28 per cent to £483m, while earnings before interest, tax, depreciation and amortisation (Ebitda) were up 10 per cent to £1.1bn. It also announced an 11 per cent rise in earnings per share to 31.3p. Sky unveiled an interim dividend of 13.06p per share, a rise of four per cent from 2016, in addition to a previously announced special dividend of 10p.


CITYAM.COM

FRIDAY 26 JANUARY 2018

EDITOR’S NOTES L

AST week Channel 4 news carried an interview with Canadian professor and clinical psychologist Jordan Peterson. You may have seen it, and if you didn’t, you should join the 4m other people who have since watched the 30-minute exchange on YouTube. The interview generated an almighty online backlash, mostly against Cathy Newman, who was subjected to a torrent of misogynistic abuse from keyboard warriors who objected to her critique of Peterson’s theories. The professor challenged a range of contemporary cultural sacred truths, touching on feminism and transgender activism. He’s no shock-jock, and drew on extensive research and clinical experience to question some issues which have become unquestionable. Much has been written dissecting this interview, and I won’t add my own analysis here other than to say that Newman (a fine journalist and broadcaster) did not cover herself in glory. As I said, watch the

interview and draw your own conclusions. Dwelling on the fallout, I was struck by just how rare it is to see an uninterrupted, 30 minute oneon-one interview these days. Credit to Channel 4 for releasing the full version, having simply clipped a shorter package for their programme. Therein lies the problem: Newman’s overly combative style and unwillingness to engage may be down to the fact that the interview was always meant to run in an edited short form, which these days prioritises heat over light. Somewhere in recent years, it has been decided that there is no public appetite for an intelligent, long-form TV interview – and yet we need them now more than ever. Away from two-minute Twitter videos and broadcasters looking for the “gotcha” moment, I’m willing to bet there’s an audience hungry for intelligent, conversational and forensic interviewing. Big, complex issues deserve thoughtful, illuminating interviews.

CHRISTIAN.MAY@CITYAM.COM £ Former Bank of England MPC member Andrew Sentance suggested on Twitter that those who took issue with Oxfam’s latest intervention in the public debate on inequality “should be ashamed of themselves.” But is the charity really above criticism? Lately their public remarks echo Jeremy Corbyn’s critique of capitalism almost word for word. It’s perfectly possible to appreciate Oxfam’s global charitable activities and yet wish their campaigning work focused more on the plight of the poor and less on the wealth of the rich.

ONLY IN DAVOS MY THANKS to Bloomberg reporter Javier Blas, who tweeted this picture from the World Economic Forum in Davos. Where else in the world would you get a sign that directs you to “a day in the life of a refugee” exhibition as well as the private car pick-up area? As for The Loft, I’ve no idea what it is but it sounds pretty exclusive. It’s a strange consequence of Davos, which focuses more and more on inequality, that the annual gathering tends to highlight the issue perfectly. £ When I moved to London a decade ago I was quite unfamiliar with the capital. I don’t want to sound too parochial but the truth is I hadn’t spent much time here before coming up after university. I still retain something of the excitement that I first felt, not least walking home over London Bridge at night or strolling into the City on a bright, cold morning. It can be easy to keep your head down when walking about the city, either immersed in a phone screen or just as a consequence of familiarity

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News and views from the City, Westminster & beyond

CHRISTIAN MAY @CHRISTIANJMAY

Long, illuminating TV interviews would be an antidote to Twitter

NEWS

and routine. Imagine my delight, therefore, to come across the website Look Up London – a wonderful blog that’s all about “discovering things you’ve never noticed before.” There’s plenty on the Square Mile, including guides to the many ancient churches that nestle between the skyscrapers, such as St Ethelburga’s on Liverpool St, which (like all the others) has a fascinating history. The site also highlights curiosities, relics and clues to the City’s past. Take a look – and look up, London.

CAN I QUOTE YOU ON THAT?

I don’t think the pre-referendum analysis is useful in the current debate The Treasury’s top official, Tom Scholar, finally jettisons the department’s infamous Project Fear economic forecasts

£ Yesterday we carried a debate about whether automation lies behind the wave of supermarket layoffs, but news from Scotland suggests the robots are a long way from replacing human staff. A supermarket took part in a university trial to ‘employ’ Fabio the robot to help customers. Alas, he was demoted after a few days, allowed only to offer free samples of pulled pork. Even this proved too much, and Fabio was fired after barely a week. His manager said “he just wasn’t helpful”.


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CITYAM.COM

Diageo buoyed by gin and tequila sales but exchange rate drags ALYS KEY @alys_key DRINKS giant Diageo grew sales across every region in the first half of its financial year, with tequila and gin leading the way. But the Tanqueray owner, which also makes world favourites Guinness, Bailey’s and Johnnie Walker, was negatively impacted by currency exchange rates. Net sales grew 1.7 per cent to £6.5bn, while operating profit was up 6.1 per cent to £2.19bn. Underlying profit before tax came in at £2.2bn, missing consensus by 3.3 per cent. Earnings per share jumped 36 per cent to 82.2p, thanks to the US tax changes. Excluding this change the increase was nine per cent to 67.8p. Diageo upped its interim dividend to 24.9p, an increase of five per cent. The company forecast a £60m hit to operating profit and £460m hit to sales for the full year, due to the rise of the pound against the dollar. All of its global giants increased volumes in the period, but Smirnoff’s organic net sales dropped as consumers

ditched vodka for gin. Tanqueray was the fastest growing of the core brands, up 16 per cent both in volume and in net sales. Tequila was the fastest growing category, with volumes up 37 per cent and organic net sales up 43 per cent. The strong performance of Don Julio in Mexico and the US was one of the biggest drivers behind the trend. City analysts had mixed views on the company. Jefferies analysts pointed to “a perfect blend of productivity and top-line growth” while Liberum noted the impact of vodka’s decline and said the company was “less attractive” than others in the drinks space. Chief executive Ivan Menezes said: “These results demonstrate continued positive momentum from the consistent and rigorous execution of our strategy. “We have delivered broad-based improvement in both organic volume and net sales growth. We have increased investment behind our brands and expanded organic operating margin through our sustained focus on driving efficiency and effectiveness across the business.”

ANNOUNCEMENTS

LEGAL AND PUBLIC NOTICES

EPPING FOREST

Verderer The Conservators of Epping Forest invite applications for the position of Verderer. Under the terms of the Epping Forest Act 1878, a vacancy for a Verderer of Epping Forest has arisen. Due to the retirement of one of the two elected Verderers for Epping Forest (North) we seek applications to fill this vacancy until elections take place in 2020 when the then incumbent may choose to stand for election. Epping Forest is governed by the Epping Forest and Commons Committee on behalf of the charitable trustees – the City of London Corporation. The Committee is made up of twelve Aldermen and Common Councilmen of the City of London plus four Verderers. As locally elected members of the Committee, Verderers are regarded as the representatives of local interest in the Forest. Members and Verderers give their services in an entirely voluntary capacity and receive neither fees nor expenses. To qualify as a Verderer the Act requires applicants to reside within one of the original twelve Forest parishes and must not be a member of the Court of Common Council of the City of London. More details including a map and explanation as well as job description can be found on our website www.cityoflondon.gov.uk/efverderers Further information about the role can be provided by Jo Hurst, Epping Forest Business Manager via jo.hurst@cityoflondon.gov.uk or on 020 8532 5317. Expressions of interest detailing qualification for the role as well as supporting statement should be addressed to Jo Hurst by email, or by post to The Warren, Loughton, Essex IG10 4RW to arrive no later than midday on 5th February 2018. Interviews are scheduled for the afternoon of 14th February 2018. The City of London is committed to Equal Opportunities and welcomes application from all sections of the community.

Turnaround on the menu for Chiquito owner ALYS KEY

The company said its planned changes should get it back on track

Hornby warns full-year loss will be bigger than expected REBECCA SMITH

@BexKSmith HORNBY yesterday said its full-year loss looks set to be larger than originally expected after disappointing Christmas trading. Sales over the key festive period were below management expectations, due to a reduction in discounting and a continuation of late product deliveries. The model train maker said that its autumn move to stop selling large quantities of stock at a discount in

order to protect the brand had not picked up steam just yet. Hornby said rebuilding trust in the pricing strategy takes time and some of its retail partners were “taking longer than others” to adapt. Hornby’s interim chairman and chief executive Lyndon Davies said the firm was “ determined to weather the storm and come out the other side with stronger brands, loyal customers, a leaner cost base and a better foundation from which to build a profitable and growing business”.

@alys_key FRANKIE & Benny’s owner The Restaurant Group (TRG) said it had made progress with a turnaround plan yesterday, despite a dip in sales. The company operates several brands including Chiquito and Garfunkel’s, as well as concessions in airports and stations. Like-for-like sales dropped three per cent in 2017, and total sales were down 1.8 per cent. TRG has suffered from the same headwinds affecting other casual dining operators. According to recent industry statistics, even Christmas did not help to boost consumer spending at chain restaurants. But chief executive Andy McCue told City A.M. that early action had put a turnaround on track. “TRG was early in having some change in trajectory,” he said, referring to the group’s decision to close several restaurants 18 months ago. “It’s pretty clear from others now that they are suffering as well.” Analysts at Liberum praised the “early and decisive action” which is now “bearing fruits with a volume led-recovery taking hold albeit in a difficult market,” they said. Shares closed up over five per cent.

White Christmas weighs on Greene King revenue

ALYS KEY

@alys_key GREENE King became the second major pub group to count the cost of snow in its trading update yesterday, as the weather dampened Christmas sales growth. Like Marston’s earlier this week, Greene King said weather had affected results, with like-for-like sales growth instead coming in at 1.6 per cent. Excluding the impact of snow, like-for-like sales across the 2,900strong pub group would have been up 3.4 per cent during the Christmas period. For the full third quarter, ending 14 January, like-for-like sales at

managed pubs were down 1.4 per cent, dragged down by food sales. Tenanted pubs posted growth of 0.2 per cent, while the brewing business declined in volumes of 0.9 per cent. Its share price closed up two per cent at 537.4p. Meanwhile Fuller, Smith and Turner reported “solid” growth across its premium pubs in London, Birmingham, and the south. In the 42 weeks to 20 January, like-for-like sales across managed pubs and hotels grew three per cent.

Daily Mail group’s shares rise ALYS KEY @alys_key THE PUBLISHER of the Daily Mail reported better underlying growth than the City expected yesterday, but headline figures were impacted by the sale of its Euromoney stake. Shares in Daily Mail & General Trust (DMGT) were up yesterday following the update. On a reported basis, revenue fell six per cent in the first three

months of the financial year. But excluding Euromoney from the comparative figures, underlying growth was two per cent. Underlying growth was driven by events and education technology. But underlying revenue for the consumer arm, which includes the Daily Mail and Metro newspapers and the Mail Online, fell one per cent. Shares closed up over six per cent at 650p.

Chief executive Simon Emeny said: “These are a good set of figures in what remains a challenging trading environment. “They prove that a great experience in a stunning pub with

Greene King was hit by adverse weather excellent service, delicious food and a fantastic range of interesting drinks, continues to appeal to our customers.” Shares closed up more than one per cent.

Class action privacy suit against Facebook dismissed by EU court LYNSEY BARBER @lynseybarber AN ATTEMPT to launch a court case involving thousands of people against Facebook over privacy has been rejected by the EU’s top court. A class action lawsuit can’t be brought by Austrian lawyer and privacy campaigner Max Schrems the Court of Justice of the European Union has ruled.


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Carillion collapse poses big questions for investors

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HEN in doubt, blame the accountants: a mantra which has gathered momentum after virtually every big corporate collapse since the financial crisis. Carillion is no exception. It seems obvious to ask now why KPMG signed off the construction group’s accounts in March without the merest hint of anxiety. Hindsight being a wonderful thing, the wafer-thin profit margins embedded into Carillion’s public-sector contracts allied to a bulging debt-pile (complete with big pension deficit) should have set alarm bells ringing. In the end, they rang too late. I understand that Frank Field and Rachel Reeves, the chairs of two parliamentary select committees, wrote yesterday to the big four auditors to demand disclosure of all work they undertook for Carillion during the last decade. Sources tell me that the accountancy watchdog will, with business secretary Greg Clark’s edicts about fast-tracked probes echoing in its ears, sanction a full inquiry within the next few weeks.

Mark Kleinman

Yet while a witch-hunt against KPMG might satisfy a desire in the City and Westminster for blame displacement, plenty of others were culpable as Carillion plunged into insolvency. Where, for example, was The Pensions Regulator, which should have been far more vocal in forcing Carillion’s board to tackle a deficit which stood at £2.6bn on a Section 75 buyout basis when the company collapsed? Will ministers give a full account of their decision-making and monitoring processes in the wake of the company’s initial profit warning last July? Why did Carillion’s board believe its dividend policy was sustainable, even as its borrowings soared? There’s another group which is yet to

face searching questions – but should: Carillion’s investors. The Investor Forum’s annual review, published yesterday, disclosed engagements with seven companies during the last year. Carillion was conspicuous by its absence. It looks like institutional shareholders were willing to shut their eyes as long as the dividend cheques kept arriving. If they were more rigorous than that, now’s the time to tell us.

STALEY’S FCA DELAY GOES ON

It’s nine months since the banking and City regulators disclosed their investigation into Jes Staley’s efforts to unmask a whistleblower who made allegations about a senior Barclays colleague. The bank, at least publicly, has been patient about the progress made by the watchdogs, with New York’s Department of Financial Services also conducting its own probe. But time is running out for the inquiries to reach their denouement if Barclays’ boardroom isn’t once again to be engulfed in chaos. Reports last year suggested that Staley

would learn his fate by the late autumn, then by the beginning of January. Neither has transpired, and the latest fear of some Barclays insiders is that it may now not arrive until March. Bear in mind that the Financial Conduct Authority (FCA) is required to issue a 28-day warning notice before any punishment is made public; Barclays will then require a similar period to publish the agenda for its annual general meeting, scheduled for early May. That doesn’t leave much time for AGM papers to either include or exclude his name from the list of directors seeking reelection. Those close to Staley say he remains confident of being largely exonerated – or at least to the extent that he will keep his job. The bigger mystery to some at Barclays, I’m told, is what’s taking the FCA so long to make its mind up.

THE RANGE FLOATS CHAIRS

It won’t be the biggest stock market debut in London this year, but I’m willing to bet that if it goes public, the listing of

The Range will be one of the most interesting. There’s a reason for that: its founder, Chris Dawson, whose self-made success should provide inspiration to aspiring entrepreneurs everywhere. Dawson has been frank about his lack of education – he didn’t learn to read until the age of 27 – and attributes The Range’s stunning growth to a nous for understanding what customers want. My headhunting sources tell me that Dawson has now begun the hunt for a heavyweight retail figure to chair the company when it floats. Given he has named Mike Ashley as one of the businessmen he most admires, parallels will undoubtedly be drawn between the two. One bit of free advice for Dawson: he should seek a better relationship with public investors than his Sports Direct counterpart. Hiring a chairman with a proven public company track record and an independent streak would be a sensible place to start.

£ Mark Kleinman is the City Editor of Sky News. @MarkKleinmanSky

Kier Group assures investors it is on UK offers £1m a year to solid ground in upbeat trading update host for radioactive waste COURTNEY GOLDSMITH

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@courtneynoelg SHARES in construction company Kier Group closed more than 15 per cent higher yesterday after the building firm’s chief executive gave an upbeat halfyear trading update. Kier’s shares tumbled in the days following the collapse of its peer and joint venture partner Carillion last

week as investors worried of sectorwide issues. However, in a trading update for the six months to December, Kier said the group traded in line with management’s expectations. The firm’s construction and services order books stood at about £9.5bn, with 100 per cent of forecast revenue for the 2018 financial year secured, providing good visibility. Kier Group said the contracts it had

taken over from Carillion, the HS2 joint venture and Highways England smart motorway schemes, were “performing well, operationally and financially”. Haydn Mursell, chief executive, said the company’s performance in the first half represented “the strength and stability of the business”. He said the group was on course to deliver double-digit profit growth in 2018.

Transport for London Public Notice ROAD TRAFFIC REGULATION ACT 1984 THE A10 GLA ROAD (GRACECHURCH STREET, CITY OF LONDON (TEMPORARY PROHIBITION OF TRAFFIC) ORDER 2018

1. Transport for London hereby gives notice that it intends to make the above named Traffic Order under section 14(1) of the Road Traffic Regulation Act 1984 for the purpose specified in paragraph 2. The effect of the Order is summarised in paragraph 3. 2. The purpose of the Order is to enable crane operation works to take place at A10 Gracechurch Street. 3. The effect of the Order will be to prohibit any vehicle from entering, exiting or proceeding on A10 Gracechurch Street between its junctions with Fenchurch Street and Eastcheap/King William Street. The Order will be effective at certain times from 2:00 AM to 9:00 PM on every Sunday between 18th February and 11th March 2018 or when the works have been completed whichever is the sooner. The prohibition will apply only during such times and to such extent as shall from time to time be indicated by traffic signs. 4. The prohibitions will not apply in respect of: (1) any vehicle being used for the purposes of those works or for fire brigade, ambulance or police

MAYOR OF LONDON

purposes; (2) anything done with the permission or at the direction of a police constable in uniform or a person authorised by Transport for London. 5. At such times as the prohibition is in force an alternative route will be indicated by traffic signs via (for vehicles travelling southbound on Bishopsgate) Bishopsgate, Threadneedle Street and King William Street to normal route of travel; (for vehicles wishing to travel northbound on Gracechurch Street) King William Street, Threadneedle Street and Bishopsgate; (for vehicles treavelling eastbound on Cannon Street wishing to enter Gracechurch Street) Eastcheap, Great Tower Street, Byward Street, Tower Hill, Minories, Aldgate High Street, Fenchurch Street and Gracechurch Street to normal route of travel. Dated this 26th day of January 2018 Glynn Barton Director of Network Management Transport for London, Palestra, 197 Blackfriars Road, London, SE1 8NJ

SPORT There is a readymade excuse for Eddie Jones and England OLLIE PHILLIPS ON THE BIGGEST TEST OF JONES’S CAREER PAGE 30-31

COURTNEY GOLDSMITH

@courtneynoelg THE UK government launched a public consultation yesterday to help it decide where to develop a new radioactive waste storage site, offering communities up to £1m a year to host the facility. A so-called geological disposal facility would involve placing radioactive waste created by Britain’s nuclear plants at least 200 metres under-

The minority of men who act in this way need to know they do not have the tacit support of their peers

ground in a specially engineered facility. About a fifth of the UK’s electricity is generated by nuclear plants, but the waste that is created has to be stored for thousands of years, and currently only temporary storage facilities are used. The facility will create up to 2,000 skilled jobs and bring at least £8bn to the economy over its lifetime, but energy minister Richard Harrington said planning consent would only be given to sites that secure local support.

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Transport for London Public Notice ROAD TRAFFIC REGULATION ACT 1984 THE A201 GLA ROAD (NEW BRIDGE STREET, CITY OF LONDON) (TEMPORARY PROHIBITION OF TRAFFIC) ORDER 2018

1. Transport for London hereby gives notice that it has made the above named Traffic Order under section 14(1) of the Road Traffic Regulation Act 1984 for the purpose specified in paragraph 2. The effect of the Order is summarised in paragraph 3. 2. The purpose of the Order is to enable chamber repair works to take place at A201 New Bridge Street. 3. The effect of the Order will be to prohibit any vehicle from entering, exiting or proceeding on New Bridge Street in a southerly direction between its junctions with Ludgate Circus and Tudor Street. The Order will be effective at certain times from 9:00 PM on the 30th January 2018 until 5:00 AM on the 31st January 2018 or when the works have been completed whichever is the sooner. The prohibition will apply only during such times and to such extent as shall from time to time be indicated by traffic signs

MAYOR OF LONDON

4. The prohibitions will not apply in respect of: (1) any vehicle being used for the purposes of those works or for fire brigade, ambulance or police purposes; (2) anything done with the permission or at the direction of a police constable in uniform or a person authorised by Transport for London. 5. At such times as the prohibition is in force an alternative route will be indicated by traffic signs via Ludgate Hill, St Paul’s Church Yard, Cannon Street, Friday Street and Great Victoria Street to normal route of travel. Dated this 26th day of January 2018 Glynn Barton Director of Network Management Transport for London, Palestra, 197 Blackfriars Road, London, SE1 8NJ


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FRIDAY 26 JANUARY 2018

CITY DASHBOARD LONDON REPORT

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HE UK’S top share index fell for a third straight day as a deepening global sell-off in the dollar strengthened sterling and dented earnings prospects for British companies exposed to the US currency. The blue-chip FTSE 100 index closed down 0.4 per cent at 7,612.61 points yesterday, with the pound on track for its best month against the dollar in almost nine years and at its highest since the June 2016 Brexit referendum. Drinks maker Diageo dipped 0.2 per cent after saying it expected foreign exchange swings to take a bigger than expected bite out of sales and profits. Among other big dollar earners, aerospace company Rolls-Royce fell 2.3 per cent and British American Tobacco fell 2.1 per cent.

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

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Kazakhstan-based miner Kaz Minerals will need to dig a bit deeper in 2018 if it is to win praise from analysts at Peel Hunt. Maintenance at its Bozshakol mill meant overall output was lower than estimated and by-product grades were a bit weaker than expected. Brokers keep an “add” recommendation and 965p price.

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An “orderly transition” is expected at the UK’s largest recruiter as chief executive Andy Hogarth moves to a non-exec role, according to Liberum brokers. Recruitment is at risk of a Corbyn government, they warn, but keep a “buy” recommendation and 1,320p per share target price.

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Medical technology firm Smith & Nephew was the biggest gainer, up 4.1 per cent after JP Morgan raised its view on the stock to “overweight” from “neutral”. JP Morgan analysts said a pull-back in the firm’s shares offered a compelling entry point.

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Sterling weighs on market’s major exporting firms

MARKETS

HE DOW Jones Industrial Average and S&P 500 closed at their highest levels ever yesterday although Wall Street relinquished bigger gains after President Donald Trump said he wants a strong dollar. The US currency erased losses against a basket of major currencies after Trump told CNBC in an interview in Davos, Switzerland, that he wants to see a strong dollar. Biogen surged 2.09 per cent after the drug maker reported fourthquarter revenue that beat Wall Street estimates on higher sales of recently launched drug Spinraza. The rise lifted the S&P healthcare sector 0.89 per cent as one of the best-performing S&P groups. The Dow Jones Industrial Average rose 0.54 per cent to end at 26,392.79, its highest close ever. The S&P 500 ended 0.06 per cent higher at 2,839.25, also its highest ever close. Earlier, it gained as much as 0.39 per cent. The Nasdaq Composite declined 0.05 percent to 7,411.16. Ford Motor slumped 3.98 per cent after the car maker posted a lowerthan-expected quarterly net profit.

CITY MOVES WHO’S SWITCHING JOBS MANIFESTO

Manifesto has appointed Rebecca Hull as delivery director, to lead the agency’s client, production and innovation team. As delivery director, Rebecca will lead Manifesto’s delivery function, providing oversight and direction on project portfolios from inception through to completion. Her responsibilities will include helping to define clear roadmaps to drive client digital transformation projects. Rebecca brings a wealth of experience to the

role and the agency. She joins Manifesto from Nest Pensions where she spent four years delivering change to the pension transactional and marketing platforms. She also spent several years at Cancer Research UK, managing a portfolio of IT projects designed to support the delivery of fundraising and marketing change initiatives. Before that, Rebecca spent over 10 years delivering transformation projects for Save the Children, Hayes and Jarvis, Vodafone and British Airways.

SEQUEL

Sequel, the leading insurance and reinsurance software provider, has appointed Lauren Ares as its chief strategy officer. By focussing on the company’s

business strategy and direction, he will help Sequel navigate and maximise its next phase of growth. Sequel already has a strong reputation for delivering powerful software and high quality services, which are now underpinned by Verisk’s comprehensive solutions for the global complex commercial and specialty insurance industry. Verisk Analytics acquired Sequel in August last year. Lauren will aim to build on this synergy by creating strategic relationships with other Verisk businesses to accelerate revenue growth, as well as providing support to Verisk Insurance Solutions’ broader UK and European strategies.

MOORE STEPHENS

Moore Stephens, the top 10 accountancy firm, is

pleased to announce that Ken Almand has been appointed as transfer pricing partner within Moore Stephens’ tax practice in London. Ken Almand joins from RSM, where he was head of transfer pricing for six years. Ken specialises in helping international corporations manage their global tax obligations, transfer pricing strategies and compliance responsibilities. Ken will be heading the transfer pricing team in London, working closely with Moore Stephens’ UK and international network as their transfer pricing practice grows. During Ken’s 21-year career he has been involved in advising the UK government on transfer pricing policy issues and has formulated UK transfer pricing legislation and antiavoidance laws.

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

NEWS

Decline in computer virus crimes in Easyjet chooses travel UK drags down instances of fraud startups for accelerator ALYS KEY @alys_key NEW CRIME statistics showed a drop in instances of fraud in the UK last year, with computer viruses becoming less frequent. Estimates from the Crime Survey of England and Wales released yesterday indicate 4.7m incidents of fraud and computer misuse were experienced by adults in the year ending September, marking a 15 per cent decrease from the previous survey year. Total occurrences of fraud fell by 10 per cent to 3.2m. Among the

types of fraud which declined were consumer and retail fraud, down 20 per cent, and advance fee fraud, which dropped 57 per cent. Computer misuse offences showed a dip of 24 per cent, mainly due to a 26 per cent drop in instances of computer viruses to 1m. But bank and credit account fraud was at a similar level to the previous year, and this offence accounts for the majority of all fraud in the UK. “The first year-on-year comparisons from new estimates of fraud, one of the most frequently occurring crimes, indicate fewer incidents were experienced by the

general population compared with the previous year,” said Mark Bangs, crime statistician for the Office for National Statistics (ONS). The drop in overall fraud rates contributed to a decline in the headline figures for all crime in the country. There was a 10 per cent drop in the number of crimes in the period, according to the ONS. Bangs said: “While overall levels of violent crime were not increasing, there is evidence of rises having occurred in some of the low incidence but more harmful categories such as knife and gun crime.”

REBECCA SMITH @BexKSmith EASYJET has announced the latest budding startups chosen to take part in its travel tech accelerator programme, with WeTrip, Car and Away and FlightSayer its picks. In October 2016, Easyjet announced a strategic investment into accelerator and incubator Founders Factory. As part of the partnership, Easyjet and Founders Factory will support the growth of five early-stage travel tech startups each year for five years. The first group’s participation led to deals and funding rounds with the

airline. Online group travel booking platform WeTrip was one of three successful startups this time around, which enables small groups to plan and book activity holidays together, selling complete packages. It has also launched WeSki, a bespoke ski holiday booking platform. Car and Away has been billed as “the Airbnb for cars”, effectively a peer-topeer car sharing community where owners make money from their parked vehicle while away on travels. FlightSayer, meanwhile, uses simulation algorithms and machine learning to better predict flight delays hours, days and weeks before departure.


14

OPINION

FRIDAY 26 JANUARY 2018

CITYAM.COM

FORUM EDITED BY RACHEL CUNLIFFE

Sexists in the City? Fewer than there were, but we can do better

T

HE PRESIDENTS Club will not be holding any more fundraising dinners, but the consequences of the last one will be felt for some time. The undercover expose by FT reporter Madison Marriage has been the talk of the Square Mile, with details emerging of women employed as “hostesses” at the event, only to be pressured and groped by some members of the allmale guestlist. The City, which has worked so hard in recent years to cleanse itself of its reputation for male domination, has been forced to confront evidence that, in some areas, we have not come as far as we thought. “If even half of what’s been written about this event is true, it is deplorable,” said Carolyn Fairbairn, the director general of the Confederation of British Industry. “We can and must do better than this.” So what can all of us who work the City and are shocked by this report do about the toxicity it reveals in certain quarters of business culture? First, acknowledge the problem. If the comments underneath the online FT article are anything to go by, the City is full of disgruntled readers confused about what the issue was. Their argument was that the women must have known what they were signing up for, with job specifications about high heels and underwear, and therefore it didn’t matter if their consent was violated.

The editor of online magazine Spiked, Brendan O’Neill, made a similar point this week, dismissing the night as “businessmen behaving badly”. This is hugely insulting to the thousands of men who work in the City and who would never dream of treating a woman, whether a female colleague or a hostess at a party, in such a way. Improving the culture starts with acknowledging that the behaviour described in the article is utterly unacceptable, and – equally importantly – that the majority of men in the City are just as sickened by it as the women. Second, encourage those men to speak out. There have been a spate of attempts by men who attended the dinner to assert that they didn’t know what kind of party it was, that they left early, or did not see the behaviour described. But some men must have seen. So far, no one has spoken publicly about regretting that they did not do more in the moment. They should. Men should feel confident stepping in if they see a colleague or business contact making a woman uncomfortable, whether with a hand on her knee in the office, or an order to down her drink and dance on a table at a party. Yes, it is difficult, and sometimes awkward. But to build on the cultural changes that have already taken place in the business world, the minority of men who act in this way need to know that they do not have the tacit support of their male peers.

Rachel Cunliffe Comment and features editor at City AM

The minority of men who act in this way need to know that they do not have the tacit support of their male peers Finally, stop viewing this as an industry-specific problem. It isn’t. Powerful men who exploit their positions to harass and abuse women can be found in all sectors. The last few months have seen a barrage of revelations against prominent members of multiple industries, from Hollywood to Silicon Valley to Westminster. This week, we learned of the US Olympic gymnastics medic, jailed for life for sexual offences against over 150 young women and girls. No community is immune, and in comparison to some of what we’ve seen elsewhere, the Presidents Club event is relatively minor, though still shocking. If we reduce this latest event to merely an inevitable consequence of City culture, in alignment with the eighties and nineties cocaine-andstrip-clubs stereotype, we risk miss-

ing how far we’ve come. It’s an easy mistake to make. Since the financial crisis, banking often seems irrevocably tied to immorality in the eyes of the general public. But such a sweeping assessment is lazy and counter-productive. City heavyweight Helena Morrissey called the Presidents Club scandal the “death throes of an old regime”. Serial entrepreneur Debbie Wosskow condemned the event as “seedy, scary, predatory, disgusting” and “threatening”, but pointed out how we are finally seeing that “this kind of behaviour is being shamed and has consequences”. They are right. The speed at which organisations and individuals, led by Martin Sorrell’s WPP, have sought to distance themselves from the Presidents Club dinner shows that this is neither commonplace nor considered permissible. This isn’t the coke-fuelled eighties. It is 2018, and diversity, inclusivity and equality are all top of the agenda for City firms. In many ways, the heightened scrutiny applied to the City and the conscious efforts to overcome its out-of-date reputation make it far more accessible to women and other minorities than “Wild West” industries like technology and entertainment. We can be outraged by what took place at the Presidents Club. We can acknowledge that it is an unacceptable throwback rather than a genuine reflection of City life. And we can all do more to ensure that the toxic culture it embodies continues to be stamped out. We should – we must – do all three.

Our position as a digital leader is under threat, so let’s go back to the classroom

T

HE UK is currently in the grip of a major digital talent shortage. This is a problem which is costing the industry dearly, with more than half of tech and digital businesses offering inflated salaries in order to attract skilled talent. This issue is being exacerbated by the economic uncertainty caused by Brexit, and as it stands there is little reassurance or information available for companies around the free movement of skilled labour from the EU, where we currently source around 10 per cent of our digital talent. Some of the main barriers to the UK solving its own talent problem lie in poorly thought-out government policy, a lack of joined-up thinking around education, and a shortage of investment in scalable solutions that will really deliver change. So, how do we go about solving this? Well, it begins in the classroom. Last year saw major advances in dis-

ruptive technologies, with mixed reality and artificial intelligence now moving into the mainstream. However, from a skills perspective, this creates an entirely new set of problems. If our education system isn’t fit to deliver the current demand for digital skills, how on earth will it keep pace as new demands are created? In fact, recent research found that more than six million graduates already deem their degree courses outdated in relation to the present day job market. If we are to stay ahead in this everchanging landscape, we must drastically change the way tech is taught in our schools. It’s no longer enough to simply have a computing curriculum – we need tech professionals who can teach the next generation of digital talent in a way that reflects the needs of industry. We also need to be working to increase the entire talent pipeline by encouraging more people into a

Katie Gallagher

career in the tech industry. Clearer progression routes from school are also sorely needed, and must be far more appealing to a wider range of students. The impetus is on employers to upskill their current staff, and to look further down the talent supply chain and structure their recruitment strategies to allow for apprenticeships. However, as digital apprenticeships tend to be hugely technical, we need the right people in place leading them and enforcing quality standards across the board. The solution to the skills shortage is multi-faceted, and it needs every-

body to play their part. We can’t just leave it up to politicians, who use the tutelage of our young people to score cheap points and bump up their approval ratings. While Brexit is looming larger by the day, it is by no means the only issue. Our position as a world leader in the tech sectors is under serious threat, both in terms of industry and capacity, and other countries across the globe are desperate to overtake us. Considering that many countries have coding and computing at the heart of their curriculum, there is a very real danger that we will be left behind. It has never been more crucial for us to take proactive measures to remain at the forefront of the global digital economy, and the time for us to act is now. £ Katie Gallagher is managing director of independent trade association for digital businesses in the North West, Manchester Digital.

LETTERS TO THE EDITOR

Dirty laundry Instead of introducing new powers to enable the introduction of even greater anti-money laundering requirements on those working in the City of London, the government ought to be conducting a wholesale review of the present system. The reality is that the present anti-money laundering regime does not work. Latest official statistics show that 429,451 suspicious activity reports were filed in 2015/16, but in cases where the National Crime Agency refused consent to proceed, less than 40 arrests were made. Many in the professional and financial sectors regard the regime as disproportionately burdensome and ineffectual. The government should grab the opportunity in the post-Brexit era to completely revamp the UK’s anti-money laundering laws. The obligation to make a suspicious activity report needs to be narrowed, with a stronger focus on high quality criminal intelligence involving serious crimes. Minor and low-value offences should be excluded, and the evidential requirement for reporting should be raised. The US Congress is considering reforms to the money laundering laws. The government should invite the UK parliament to do the same. As the phrase goes, when reporting suspicious activity of a financial nature is at stake, “more is less, and less is more”. Jonathan Fisher QC, lead counsel, Bright Line Law

BEST OF TWITTER Theresa May as PM is now like a plastic bag stuck in a tree. Nobody can quite remember how she got there, but too few Conservatives can be bothered to get her down. @MrRBourne Macron is charming and energetic. But his speech, after a good Trump joke, is now pure Davos technocracy: laundry list of micro-changes – like Bill Clinton on a bad day @gideonrachman Brexit has taken some people to very strange places – so-called @UnlockDemocracy are now lobbying the House of Lords (that they want abolished for being undemocratic) to reject the repeatedly asserted will of the House of Commons in implementing the outcome of the referendum. @wallaceme Today in Venezuela “procuring the cheapest 2,000 daily calories for a single person (eating nothing but yuca) costs more than twice the minimum wage.” @Mr_John_Oxley More than 23,430 crimes were committed using motorcycles in London last year. I’m working with @metpoliceuk to tackle moped crime – but it’s time for manufacturers to step up and design anti-theft measures into their vehicles to help keep Londoners safe @MayorofLondon Unbelievable. After years of total inaction by London, ignoring the endless requests to police and TFL to do something, he waits until it might affect his image and then blames...er...the bikes. @MotoClark


FRIDAY 26 JANUARY 2018

CITYAM.COM

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Boris is spot on in his lonely bid to make the positive case for Brexit

B

ORIS Johnson is due some praise. Whether or not he was right to float publicly the idea of sharing the financial benefits of Brexit with the hallowed but failing NHS is not worthy of consideration here. I could wax lyrical about how we might improve the NHS – suffice to say money is not the key. No, concern should not be focused on the supposed “leak” by Boris, but about how our politicians direct and craft our political discussion. It is not as if his colleagues, including the chancellor himself, have not mouthed-off outside cabinet suggesting what shape the negotiations should take – or what should be the outcome. Let us recall that, were it not for Boris, we could be facing a so-called “transition” period of five years, imposed upon us by Philip Hammond without any public discussion. That’s right, five years. Thank you, Boris, for calling him out publicly. Worse still, we can now see that, as the Brexit negotiations evolve, the “transition” is no such thing – it is, in everything but name, an extension of membership, only worse. It now looks like we shall be paying over-the-odds but have less say than if we had agreed to a continued membership of four years – instead of two years of membership and two years of “transition”. I must, however, move on, and use the foreign secretary’s timely and pertinent NHS intervention to point to what should be important to the Tory government. It is the one core issue that the party is poor at: namely, talking up the benefits of Brexit. In reminding the cabinet that voters will be looking for rewards from Brexit, Boris is being an honest politi-

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

Brian Monteith

cian looking towards the government’s (and dare I say it, the country’s) own interests. If there are no rewards, no Brexit bonuses, then what will be the point? The people voted for change, and politicians who support it should be pointing to a variety of outcomes that Brexit can make possible. The absence of such a strategy only feeds the suspicion that the Prime Minister does not believe in the project and is using weasel words to convey she is leading from the front. She takes the “lead” by responding to Michel Barnier’s positions, instead of striking her own. I like to think that, in the City, no business executive would last five minutes behaving in such a submissive way. To rebuild any personal credibility with the public, the Prime Minister either has to embrace the Brexit project positively, or retire and

We should give something directly to the people – and reducing the VAT rate must be in the mix

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

OPINION

hand it over to a disciple of the faith. My career is in communications, and what is obvious to me – and no doubt many of my peers – is that what this government requires is a programme that conveys to the British public what positive benefits they can expect from Brexit. In addition to scaring the bejeebers out of Barnier and the EU Commission (a useful negotiating lever), it will bolster support for the government’s approach. Yes, Boris is right, we should be putting money back into the NHS, if at least in the short term while reforms are conceived. But we should give something directly to the people – and reducing the VAT rate must be in the mix. VAT is a regressive tax; cutting it helps the poorest and wrong-foots Jeremy Corbyn. VAT was raised as a means to deal with the financial crisis – lowering it would be a reward, and would signal (belatedly, as the Tories have to admit) that “austerity” is now over. Personal taxes cannot be cut any further while indirect taxes such as VAT, stamp duty and capital gains tax are stifling economic activity. The government’s focus must shift to rebooting the economy towards higher growth, and rewarding the Brexit public for allowing a British chancellor more freedom to set our own tax rates to suit ourselves. There can be no more powerful message to statists here – or in Brussels – than cutting the UK VAT rate and demonstrating Britain is taking charge of its economic destiny. £ Brian Monteith is director of communications at Global Britain and a former member of the Scottish parliament.

15

:@cityam

DEBATE With John McDonnell giving lectures at Davos, can business ever trust the Labour party again? The World Economic Forum always likes to have a token leftist gadfly, and John McDonnell is fulfilling that role in Davos this week. But business can live and prosper under Labour. Jeremy Corbyn’s 2017 manifesto was to the right of any Labour platform in the 1970s and 1980s. Tony Blair’s 1997 manifesto and government, with its minimum wage, increased trade union rights, massive state investment in public services, as well as hikes in national insurance, stamp duty, and other stealth taxes, was arguably more radical than Corbyn’s two decades later, but such was Blair’s charm and promarket patter that no one noticed. GDP per capita doubled under Labour from 1974 to 1979, and the biggest ever

Businesses can only flourish when there is a strong economy, but economic strength depends on stable public finances. The last Labour government blew out the public purse, leaving the country teetering on bankruptcy, whereas this week’s news showed Britain has the lowest deficit this century. We are the most attractive country to invest in anywhere in Europe. Labour has a history of promising businesses one thing, then doing another. The last Labour government started with a massive windfall tax, hitting businesses and investors. Jeremy Corbyn has plans to do it again, borrowing up to £500bn – 20 per cent of our GDP – to nationalise entire industries.

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

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YES DENIS MACSHANE

increases in the FTSE happened under Blair and Brown. Whether a CorbynMcDonnell team is electable in 2022 is an open question, but once Labour becomes seriously hungry for power, it gets real about the economy – and business (to its surprise) does well under a Labour government. £ Denis MacShane is the former Europe minister and author of Brexit, No Exit. Why (in the End) Britain Will Stay in Europe.

NO VICKY FORD

Trust us on our results. A million more businesses exist today than under Labour. Employment is at an all time high. Conservatives are committed to delivering prosperity and peace, providing opportunities, and supporting innovators and creators. £ Vicky Ford is MP for Chelmsford and former chair of the European parliament committee for Internal Market and Consumer Protection.

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16

MARKETS

FRIDAY 26 JANUARY 2018

FTSE 100

FTSE 250

7615.84 27.59

20521.74 16.72

Price Chg High Low

GILTS Tsy 5.000 18 . . . . . .100.53 Tsy 1.250 18 . . . . . . .100.40 Tsy 4.500 19 . . . . . .104.36 Tsy 3.750 19 . . . . . . .105.06 Tsy 4.750 20 . . . . . .108.63 Tsy 2.500 20 . . . . . .362.63 Tsy 8.000 21 . . . . . .123.96 Tsy 1.875 22 . . . . . . . .119.61 Tsy 4.000 22 . . . . . .112.79 Tsy 2.250 23 . . . . . . .106.61 Tsy 2.500 24 . . . . . .360.63 Tsy 0.125 24 . . . . . . .112.69 Tsy 5.000 25 . . . . . .126.07 Tsy 4.250 27 . . . . . . .126.10 Tsy 1.250 27 . . . . . . .131.33 Tsy 6.000 28 . . . . . .145.31 Tsy 0.125 29 . . . . . . .121.45 Tsy 4.125 30 . . . . . . .361.69 Tsy 4.750 30 . . . . . . .136.51 Tsy 4.250 32 . . . . . . .132.76 Tsy 1.250 32 . . . . . . .148.80 Tsy 0.125 36 . . . . . . .137.83 Tsy 4.250 36 . . . . . . .137.83 Tsy 4.750 38 . . . . . . .150.15 Tsy 0.625 40 . . . . . .159.37 Tsy 4.500 42 . . . . . . .151.55 Tsy 3.500 45 . . . . . .133.45 Tsy 4.250 46 . . . . . . .152.12 Tsy 4.025 49 . . . . . . .157.85 Tsy 0.500 50 . . . . . .184.49 Tsy 0.250 52 . . . . . .180.39

-0.01 -0.01 -0.04 -0.04 -0.09 -0.14 -0.17 -0.35 -0.20 -0.27 -0.44 -0.44 -0.33 -0.48 -0.66 -0.47 -0.72 -0.68 -0.53 -0.56 -0.79 -0.82 -0.60 -0.62 -0.85 -0.69 -0.75 -0.75 -0.77 -0.97 -1.11

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

100.5 100.4 104.4 105.0 108.6 362.5 123.9 119.6 112.7 106.5 360.6 112.6 126.0 125.9 131.3 145.1 121.4 360.2 136.2 131.5 147.7 134.8 135.1 147.0 155.6 147.7 128.6 147.3 152.5 177.0 171.5

AEROSPACE & DEFENCE BAE Systems . . . . . . . . .565.8 Cobham . . . . . . . . . . . . .131.5 Meggitt . . . . . . . . . . . . .471.6 QinetiQ Group . . . . . . . .211.7 Rolls-Royce Holdi . . . . .844.0 Senior . . . . . . . . . . . . . .275.2 Ultra Electronics . . . . .1449.0

0.6 0.2 -0.4 -2.5 -17.6 -2.6 8.0

677.0 148.0 526.0 319.7 981.0 296.8 2204.0

535.5 96.2 410.6 201.5 660.0 175.8 1142.0

AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .432.9 -1.7 447.6 294.3

BANKS Aldermore Group . . . . . .311.2 0.0 Barclays . . . . . . . . . . . . .210.3 1.8 BGEO Group . . . . . . . .3754.0 6.0 Close Brothers Gr . . . .1569.0 118.0 CYBG . . . . . . . . . . . . . . .328.4 5.0 HSBC Holdings . . . . . . .768.4 -3.1 Lloyds Banking Gr . . . . . .71.3 -0.8 Metro Bank . . . . . . . . .3692.0 -6.0 Royal Bank of Sco . . . . .299.1 1.4 Standard Chartere . . . .833.0 7.1 TBC Bank Group . . . . . .1716.0 -28.0 Virgin Money Hold . . . .285.5 -3.6

312.0 210.9 239.3 178.9 3868.0 2805.0 1715.0 1316.0 340.3 260.0 796.0 620.8 73.1 62.2 3834.0 3212.0 302.4 221.8 846.7 685.9 1818.0 1390.0 348.0 258.2

BEVERAGES Barr (A.G.) . . . . . . . . . . .639.0 -2.0 Britvic . . . . . . . . . . . . . .789.0 -11.5 Coca-Cola HBC AG . . . .2371.0 -39.0 Diageo . . . . . . . . . . . . .2537.0 -5.5

670.0 820.0 2671.0 2725.0

498.9 582.0 1788.0 2141.0

CHEMICALS Croda Internation . . . .4422.0 -58.0 4597.0 3310.0 Elementis . . . . . . . . . . .300.2 1.2 317.1 259.1 Johnson Matthey . . . .3225.0 5.0 3503.0 2727.0 Sirius Minerals . . . . . . . .22.5 0.1 35.0 17.3 Synthomer . . . . . . . . . .474.0 -4.4 509.5 431.7

FTSE ALL SHARE

BATS UK 100

4185.04 12.63

12932.48 80.30

Price Chg High Low Victrex plc . . . . . . . . . .2532.0 16.0 2730.0 1832.0

CONSTRUCTION & MATERIALS Balfour Beatty . . . . . . . .291.0 CRH . . . . . . . . . . . . . . .2683.0 Galliford Try . . . . . . . . .1132.0 Ibstock . . . . . . . . . . . . .263.6 Kier Group . . . . . . . . . .1104.0 Marshalls . . . . . . . . . . . .422.2 Polypipe Group . . . . . .393.0

CITYAM.COM

0.9 -15.0 13.0 -3.4 146.5 -4.6 -8.4

307.6 253.5 2920.0 2530.0 1583.0 1110.0 270.2 185.4 1503.0 955.5 480.2 286.4 436.5 332.2

ELECTRICITY Drax Group . . . . . . . . . .275.4 -4.2 384.6 256.4 SSE . . . . . . . . . . . . . . . .1262.5 -17.0 1551.0 1262.0

ELECTRONIC & ELECTRICAL EQ. Halma . . . . . . . . . . . . .1273.0 -13.0 Morgan Advanced M . . .351.6 2.6 Renishaw . . . . . . . . . .4820.0-820.0 Spectris . . . . . . . . . . . .2572.0 -42.0

1330.0 913.5 366.2 281.9 5775.0 2795.0 2834.0 2229.0

EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .1356.0 -6.0 1386.0 1124.0 Alliance Trust . . . . . . . .755.0 -6.0 769.0 646.5 Bankers Inv Trust . . . . .900.0 -6.0 923.0 701.0 British Empire Tr . . . . . .739.0 -3.0 753.0 648.5 Caledonia Investm . . .2825.0 15.0 3008.0 2625.0 City of London In . . . . . .431.0 -7.0 443.0 393.4 Edinburgh Inv Tru . . . .692.0 -4.0 779.5 686.0 F&C Global Smalle . . . .1390.0 0.0 1415.0 1222.0 Fidelity China Sp . . . . . .255.5 -2.0 262.0 176.8 Fidelity European . . . . .228.5 -2.0 234.0 185.0 Finsbury Growth & . . . .755.0 -1.0 777.0 647.0 Foreign and Colon . . . .661.0 -2.0 672.0 543.5 GCP Infrastructur . . . . . .117.8 -0.8 133.0 116.6 Genesis Emerging . . . .747.0 5.0 747.0 606.5 Greencoat UK Wind . . . .119.6 0.8 126.5 116.7 HarbourVest Globa . . .1274.0 4.0 1306.0 1188.0 Herald Investment . . .1195.0 0.0 1208.4 891.5 HICL Infrastructu . . . . . .147.5 -2.8 174.6 147.5 International Pub . . . . .147.2 -1.8 166.6 147.2 John Laing Infras . . . . . .115.4 -1.0 140.2 115.4 JPMorgan American . .409.0 -3.5 418.5 359.6 JPMorgan Emerging . .922.0 -1.0 930.0 695.0 JPMorgan Indian I . . . . .771.0 -8.0 785.0 623.0 Jupiter European . . . . .758.0 -12.0 794.0 553.5 Mercantile Invest . . . .2165.0 -15.0 2210.0 1735.0 Monks Inv Trust . . . . . .803.0 -7.0 820.0 591.5 Murray Internatio . . . .1250.0 -8.0 1307.0 1135.0 NB Global Floatin . . . . . .94.0 -0.2 100.2 93.0 Perpetual Income . . . .377.5 -0.5 408.5 356.0 Pershing Square H . . . .998.0 4.0 1250.0 959.0 Personal Assets T . . .40650.0-100.0 41580.039270.0 Polar Capital Tec . . . . .1162.0 -4.0 1197.0 871.0 RIT Capital Partn . . . . .1924.0 -14.0 2005.0 1815.0 Riverstone Energy . . .1300.0 -4.0 1370.0 1204.0 Schroder Asia Pac . . . . .467.0 -8.0 484.0 350.0 Scottish Inv Trus . . . . . .866.0 -7.0 891.0 763.0 Scottish Mortgage . . . .462.6 -3.4 475.0 339.2 Sequoia Economic . . . .110.5 -1.5 114.5 106.1 Syncona Limited N . . . .204.5 0.5 215.5 128.5 Temple Bar Inv Tr . . . . .1318.0 -4.0 1335.0 1210.0 Templeton Emergin . . .816.0 3.0 821.0 610.0 The Renewables In . . . .106.8 0.2 112.2 102.8 TR Property Inv T . . . . .394.5 -0.5 405.0 286.0 Vietnam Enterpris . . . .495.0 3.0 502.0 303.0 Witan Inv Trust . . . . . .1088.0 -10.0 1108.0 908.5 Woodford Patient . . . . .83.4 -0.1 106.0 82.0 Worldwide Healthc . .2580.0 5.0 2679.0 2119.0

FINANCIAL SERVICES

BATS UK 250

18672.68 34.74

Price Chg High Low Allied Minds . . . . . . . . .165.0 1.2 418.0 116.0 Arrow Global Grou . . . .421.5 -2.0 470.5 292.5 Ashmore Group . . . . . .432.0 -1.2 435.0 303.5 Brewin Dolphin Ho . . . .375.4 -0.6 393.0 301.7 Charles Taylor . . . . . . . .285.5 -2.0 295.0 210.1 Charter Court Fin . . . . .324.0 17.0 330.0 228.8 City of London In . . . . .440.0 5.0 448.0 357.5 CMC Markets . . . . . . . . . .161.8 3.8 175.5 109.0 Coats Group . . . . . . . . . .74.4 -0.9 90.0 52.0 Hargreaves Lansdo . . .1906.0 13.0 1928.0 1266.0 IG Group Holdings . . . .784.0 14.0 792.5 491.9 Intermediate Capi . . . .1120.0 12.0 1178.0 684.0 International Per . . . . .208.0 -0.6 222.0 157.5 Investec . . . . . . . . . . . . .555.6 2.6 627.5 461.4 IP Group . . . . . . . . . . . . .132.4 0.8 194.7 112.5 John Laing Group . . . . .284.6 -2.0 317.8 252.0 Jupiter Fund Mana . . . .598.0 7.6 631.4 393.5 Liontrust Asset M . . . . .600.0 8.0 602.0 380.9 LMS Capital . . . . . . . . . . .47.7 -0.1 57.1 41.3 London Finance & . . . . .44.5 0.0 46.0 42.0 London Stock Exch . . .3932.0 -56.0 4020.0 3014.0 Man Group . . . . . . . . . . .213.5 0.5 214.7 132.2 OneSavings Bank . . . .409.0 9.0 470.3 323.2 Paragon Banking G . . .504.5 3.0 512.0 400.0 Provident Financi . . . . .692.2 -9.8 3265.0 589.5 Rathbone Brothers . . .2676.0 -38.0 2800.0 2050.0 Real Estate Credi . . . . . .170.0 0.0 175.0 159.9 Record . . . . . . . . . . . . . . .43.5 1.1 52.5 37.9 S&U . . . . . . . . . . . . . . .2290.0 -15.0 2420.0 1883.5 Sanne Group . . . . . . . . .736.0 -8.0 830.0 592.5 Schroders . . . . . . . . . . .3671.0 9.0 3723.0 2901.0 TP ICAP . . . . . . . . . . . . .548.0 6.6 550.8 439.5 VPC Specialty Len . . . . . .80.5 0.0 83.0 74.3 Walker Crips Grou . . . . . .41.5 0.0 48.5 38.5 Xafinity . . . . . . . . . . . . .190.0 2.5 194.0 152.3

FIXED LINE TELECOMS BT Group . . . . . . . . . . . .260.6 -0.9 342.5 243.8 TalkTalk Telecom . . . . .139.5 1.7 218.0 131.6 Telecom Plus . . . . . . . .1154.0 -4.0 1321.0 1069.0

FOOD & DRUG RETAILERS Booker Group . . . . . . . .227.7 Greggs . . . . . . . . . . . . .1336.0 Morrison (Wm) Sup . . .225.7 Ocado Group . . . . . . . . .519.0 Sainsbury (J) . . . . . . . .258.6 SSP Group . . . . . . . . . . .623.0 Tesco . . . . . . . . . . . . . . .209.7 UDG Healthcare Pu . . . .791.5

0.7 5.0 -0.7 -7.6 -0.3 -31.5 0.8 -12.5

233.2 1399.0 252.9 545.9 281.7 687.5 214.4 959.0

182.7 964.5 207.0 238.5 224.8 390.6 166.5 635.0

FOOD PRODUCERS Associated Britis . . . . .2861.0 77.0 Cranswick . . . . . . . . . .3048.0 -36.0 Dairy Crest Group . . . . .564.0 -6.5 Greencore Group . . . . . .212.8 -1.2 Purecircle Limite . . . . .408.5 7.5 Tate & Lyle . . . . . . . . . .646.0 -14.8 Unilever . . . . . . . . . . .3996.0 -40.5

3371.0 3337.0 652.5 262.8 517.0 795.0 4548.5

2361.0 2277.0 545.5 182.0 275.0 625.5 3191.0

FORESTRY & PAPER Mondi . . . . . . . . . . . . . .1876.5 -22.5 2130.0 1693.0

GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .134.9 National Grid . . . . . . . .795.6 Pennon Group . . . . . . . .727.0 Severn Trent . . . . . . . .2010.0 United Utilities . . . . . . .740.2

-1.6 -10.3 -14.6 16.5 -7.6

235.8 1091.0 944.0 2553.0 1056.0

134.1 793.7 721.4 1990.1 731.0

GENERAL INDUSTRIALS

3i Group . . . . . . . . . . . .908.6 -16.4 969.5 687.5 3i Infrastructure . . . . . .201.0 0.0 214.5 187.0

DOW JONES

RPC Group . . . . . . . . . . .784.2 -0.8 1003.3 720.5 Smith (DS) . . . . . . . . . .500.2 -3.6 558.5 418.8 Smiths Group . . . . . . . .1616.0 -23.0 1685.0 1444.0

26392.79 140.67

Price Chg High Low Smurfit Kappa Gro . . .2540.0 -18.0 2620.0 1962.0 Vesuvius . . . . . . . . . . . .585.5 11.5 619.5 444.9

GENERAL RETAILERS Auto Trader Group . . . .350.0 4.0 B&M European Valu . . .413.0 -0.4 Brown (N.) Group . . . . .223.0 -2.2 Card Factory . . . . . . . . .198.0 1.2 Dignity . . . . . . . . . . . . . .937.0 -46.0 Dixons Carphone . . . . .202.5 -2.5 Dunelm Group . . . . . . .649.0 -2.0 Halfords Group . . . . . . .358.0 0.0 Inchcape . . . . . . . . . . . .719.5 -6.5 JD Sports Fashion . . . . .360.7 -8.3 Just Eat . . . . . . . . . . . . .801.8 -9.8 Kingfisher . . . . . . . . . . .347.9 5.5 Marks & Spencer G . . . .310.3 5.1 Next . . . . . . . . . . . . . .5064.0 152.0 Pets at Home Grou . . . .182.0 -3.1 Saga . . . . . . . . . . . . . . .120.4 2.0 Sports Direct Int . . . . . .375.6 3.3 Ted Baker . . . . . . . . . .2968.0 22.0 WH Smith . . . . . . . . . .2154.0 28.0

435.9 319.0 423.6 293.4 357.8 200.6 355.0 194.8 2767.0 930.3 342.0 149.1 753.5 545.0 378.0 307.4 880.5 711.0 456.0 303.3 824.0 496.0 368.1 288.0 395.5 297.8 5320.0 3617.0 219.5 1.8 215.3 117.8 419.5 284.0 3118.0 2320.0 2347.0 1584.0

HEALTH CARE EQUIPMETN & S. Assura . . . . . . . . . . . . . . .61.9 0.2 66.7 51.8 Convatec Group . . . . . .202.5 0.8 344.0 182.0 Mediclinic Intern . . . . . .629.2 12.4 887.0 507.5

NASDAQ

S&P 500

/€ 1.1406

0.0077 €/$ 1.2389

0.0019

7411.16 3.90

2839.25 1.71

/$ 1.4133

0.0085 €/£ 0.8765

0.0057

/¥ 154.86

0.6314 €/¥ 135.72

0.3002

Price Chg High Low Rotork . . . . . . . . . . . . . .295.4 0.6 304.2 223.5 Spirax-Sarco Engi . . . .5650.0 -20.0 5920.0 4305.0 Weir Group . . . . . . . . .2220.0 4.0 2305.0 1727.0

INDUSTRIAL METALS & MINING Evraz . . . . . . . . . . . . . . .377.4 2.9 395.4 173.2 Ferrexpo . . . . . . . . . . . .287.0 -10.2 323.2 137.2

INDUSTRIAL TRANSPORTATION BBA Aviation . . . . . . . . .357.2 Clarkson . . . . . . . . . . .3140.0 Fisher (James) & . . . .1488.0 Royal Mail . . . . . . . . . . .469.0 Stobart Group Ltd . . . . .257.5

-4.8 0.0 10.0 2.9 -1.5

368.8 279.5 3165.0 2298.0 1761.0 1437.0 472.8 369.9 303.2 172.8

NON LIFE INSURANCE Admiral Group . . . . . . .1878.5 29.0 Beazley . . . . . . . . . . . . .551.0 20.0 Direct Line Insur . . . . . .375.0 4.9 esure Group . . . . . . . . . .241.4 0.4 Hastings Group Ho . . . .303.8 3.8 Hiscox Limited (D . . . .1444.0 24.0 Jardine Lloyd Tho . . . .1368.0 -22.0 Lancashire Holdin . . . .683.0 10.0 RSA Insurance Gro . . . .620.2 4.2

2178.0 552.5 411.3 303.0 325.0 1470.0 1448.0 759.5 666.5

1769.0 397.4 333.8 201.0 220.4 1003.0 1016.0 611.0 570.5

Risers

% 15.3 8.9 8.1 5.1 4.4 4.2 3.9 3.8 3.5 3.1

Aviva . . . . . . . . . . . . . . .519.8 -1.4 544.0 476.9

Fallers % Renishaw . . . . . . . . . . . . . . . . .4820.0 -14.5 SSP Group . . . . . . . . . . . . . . . . . .623.0 -4.8 Dignity . . . . . . . . . . . . . . . . . . . .937.0 -4.7 Kaz Minerals . . . . . . . . . . . . . . . .851.0 -4.4 Hikma Pharmaceutic . . . . . . . . .995.0 -3.8 Inmarsat . . . . . . . . . . . . . . . . . .480.2 -3.7 Ferrexpo . . . . . . . . . . . . . . . . . . .287.0 -3.4 AA . . . . . . . . . . . . . . . . . . . . . . . .149.9 -2.7 Sophos Group . . . . . . . . . . . . . .626.0 -2.6 Essentra . . . . . . . . . . . . . . . . . . . .512.5 -2.4

Price Chg High Low NMC Health . . . . . . . . .3380.0 0.0 3460.0 1630.0 Smith & Nephew . . . . .1293.5 51.5 1431.0 1170.0 Spire Healthcare . . . . .256.4 2.4 361.0 221.5

HHOLD GDS & HOME CONSTR. Barratt Developme . . . .613.0 3.2 Bellway . . . . . . . . . . . .3439.0 -22.0 Berkeley Group Ho . . .4110.0 -8.0 Bovis Homes Group . . .1132.5 6.0 Countryside Prope . . . .329.2 -4.8 Crest Nicholson H . . . . .515.0 -8.5 McCarthy & Stone . . . . .143.7 -0.3 Persimmon . . . . . . . .2602.0 -38.0 Reckitt Benckiser . . . .6828.0 -81.0 Redrow . . . . . . . . . . . . .623.5 -7.5 Taylor Wimpey . . . . . . .196.9 -1.0

700.0 471.1 3792.0 2457.0 4240.0 2799.0 1213.0 755.0 371.5 223.9 636.5 486.1 196.9 141.4 2890.0 1886.0 8108.0 6355.0 664.5 433.8 211.2 165.1

INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . .966.5 2.5 Fenner . . . . . . . . . . . . .470.0 5.0 Hill & Smith Hold . . . .1240.0 -20.0 IMI . . . . . . . . . . . . . . . .1329.0 -5.0 Melrose Industrie . . . . .234.0 0.0 RHI Magnesita N.V . . .4489.0 33.0

1006.0 503.5 1475.0 1443.0 261.2 4559.0

653.5 277.3 1096.0 1121.0 195.3 3249.0

Chg High Low -5.0 4573.0 3889.0 12.5 1037.6 900.0 0.0 389.8 306.0 2.0 334.0 260.5 0.6 121.0 67.0 -7.0 899.5 645.0 -1.0 1921.0 1253.0 -5.0 394.0 321.7

MINING Acacia Mining . . . . . . . .196.2 0.0 Anglo American . . . . .1733.2 -3.6 Antofagasta . . . . . . . . .948.0 -11.2 BHP Billiton . . . . . . . . .1568.8 8.2 Centamin (DI) . . . . . . . .160.3 -1.9 Fresnillo . . . . . . . . . . . .1370.5 -14.0 Glencore . . . . . . . . . . . .400.0 3.0 Hochschild Mining . . . .233.5 1.4 Kaz Minerals . . . . . . . . .851.0 -39.0 Polymetal Interna . . . .852.2 -2.4 Randgold Resource . .7198.0 -64.0 Rio Tinto . . . . . . . . . . .3937.5 19.0 Vedanta Resources . . .883.0 4.8

541.0 157.8 1792.2 959.4 1061.0 748.0 1660.0 1117.0 190.5 131.8 1725.0 1260.0 409.6 276.6 331.6 219.1 965.8 430.5 1095.0 803.5 8190.0 6420.0 4172.5 2910.0 1102.0 575.0

MOBILE TELECOMS Inmarsat . . . . . . . . . . . .480.2 -18.5 850.5 440.9 Vodafone Group . . . . . .224.4 -0.9 238.0 192.5

LIFE INSURANCE

MAIN CHANGES UK 350 Kier Group . . . . . . . . . . . . . . . . .1104.0 Dechra Pharmaceuti . . . . . . . .2246.0 Close Brothers Gro . . . . . . . . . .1569.0 Indivior . . . . . . . . . . . . . . . . . . . .418.0 Mitie Group . . . . . . . . . . . . . . . . .182.3 Smith & Nephew . . . . . . . . . . .1293.5 Grainger . . . . . . . . . . . . . . . . . . .296.4 Beazley . . . . . . . . . . . . . . . . . . . .551.0 Bunzl . . . . . . . . . . . . . . . . . . . .2009.0 Next . . . . . . . . . . . . . . . . . . . . .5064.0

Price Rightmove . . . . . . . . .4418.0 Sky . . . . . . . . . . . . . . . .1036.0 STV Group . . . . . . . . . . .309.5 Tarsus Group . . . . . . . . .312.0 Trinity Mirror . . . . . . . . . .75.9 UBM . . . . . . . . . . . . . . .868.0 WPP . . . . . . . . . . . . . . .1301.5 ZPG Plc . . . . . . . . . . . . .333.8

Price Chg High Low Just Group . . . . . . . . . . .149.8 0.1 Legal & General G . . . . .272.0 -2.1 Old Mutual . . . . . . . . . .240.4 1.5 Phoenix Group Hol . . . .777.5 -5.0 Prudential . . . . . . . . . .1916.0 -20.5 St James's Place . . . . . .1221.0 -18.5 Standard Life Abe . . . . .430.7 -5.0

170.4 277.4 241.8 798.5 1981.0 1270.5 447.1

121.5 232.8 188.0 724.0 1532.0 1030.0 345.7

2020.0 391.0 190.0 57.0 329.4 1305.0 117.0 226.0 83.8 761.0 195.3 219.6 27.6 366.5 750.0 1782.0

1550.0 286.1 157.3 40.5 216.0 1027.0 79.0 122.5 38.0 629.5 151.8 146.9 9.5 314.9 566.5 1398.0

MEDIA 4Imprint Group . . . . . .1950.0 -30.0 Ascential . . . . . . . . . . . .371.0 0.0 Bloomsbury Publis . . . .185.5 -1.5 Centaur Media . . . . . . . .50.3 -0.3 Entertainment One . . .308.6 -2.2 Euromoney Institu . . .1160.0 -10.0 Gocompare.com Gro . . .113.8 -2.2 Haynes Publishing . . . .222.0 20.0 Huntsworth . . . . . . . . . .83.0 1.0 Informa . . . . . . . . . . . . .685.8 -7.6 ITE Group . . . . . . . . . . . .177.2 -1.8 ITV . . . . . . . . . . . . . . . . .170.7 2.7 Johnston Press . . . . . . . .10.0 -0.3 Moneysupermarket. . . .335.7 -3.0 Pearson . . . . . . . . . . . . .685.4 -5.8 Relx plc . . . . . . . . . . . . .1557.0 -29.0

OIL & GAS PRODUCERS BP . . . . . . . . . . . . . . . . . .516.7 Cairn Energy . . . . . . . . .212.6 Royal Dutch Shell . . . . .2511.0 Royal Dutch Shell . . . .2562.0 Tullow Oil . . . . . . . . . . .225.0

1.2 2.2 7.5 8.5 -1.0

534.8 439.8 242.0 167.5 2573.5 1992.5 2609.0 2052.5 260.2 145.6

OIL EQUIPMENT & SERVICES Hunting . . . . . . . . . . . . .657.0 -1.5 663.0 382.6 Petrofac Ltd. . . . . . . . . .549.2 -13.2 946.0 349.0 Wood Group (John) . . .689.2 -2.8 853.0 560.0

PERSONAL GOODS Burberry Group . . . . . .1602.5 -18.5 1985.0 1566.0 PZ Cussons . . . . . . . . . .330.0 1.6 363.7 300.2 Superdry . . . . . . . . . . .1828.0 8.0 2076.0 1446.0

PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .4998.5 27.5 BTG . . . . . . . . . . . . . . . . .733.5 0.5 Dechra Pharmaceut . .2246.0 184.0 Genus . . . . . . . . . . . . .2430.0 -20.0 GlaxoSmithKline . . . . .1335.0 -12.0 Hikma Pharmaceuti . . .995.0 -39.5 Indivior . . . . . . . . . . . . .418.0 20.3 Shire Plc . . . . . . . . . . .3364.0 -60.0 Vectura Group . . . . . . . .106.2 1.5

5508.0 779.0 2252.0 2573.0 1722.0 2297.0 419.5 5036.0 163.0

4194.0 534.5 1404.0 1694.0 1275.5 949.5 267.6 3341.5 90.0

REAL ESTATE INVEST. & SERV. Capital & Countie . . . . .304.5 0.0 CLS Holdings . . . . . . . . .240.0 1.0 Daejan Holdings . . . .6050.0-130.0 F&C Commercial Pr . . . .141.4 -0.2 Grainger . . . . . . . . . . . .296.4 11.2 NewRiver REIT . . . . . . . .310.5 -6.0 Safestore Holding . . . .486.4 -7.6 Savills . . . . . . . . . . . . .1026.0 21.0 St. Modwen Proper . . .420.8 2.8 UK Commercial Pro . . . .90.0 0.2

SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . .2990.0 -24.0 Computacenter . . . . . .1150.0 -10.0 FDM Group (Holdin . . . .975.0 -3.0 Fidessa Group . . . . . .2440.0 0.0 Micro Focus Inter . . . . .2182.0 11.0 Playtech . . . . . . . . . . . .803.4 5.2 Sage Group . . . . . . . . . .750.6 -17.6 Softcat . . . . . . . . . . . . .509.0 -2.0 Sophos Group . . . . . . .626.0 -17.0

AB INBEV...........................................................91.51 ADIDAS N.........................................................183.10 AIR LIQUIDE ....................................................108.55 AIRBUS ............................................................88.00 ALLIANZ .........................................................203.90 ASML HLDG .....................................................163.75 AXA..................................................................26.98 BANCO SANTANDER...........................................6.08 BASF N .............................................................95.35 BAYER N.........................................................106.64 BBVA ..................................................................7.60 BMW ................................................................93.25 BNP PARIBAS BR-A .........................................68.00 CRH PLC.............................................................0.00 DAIMLER N........................................................74.39 DANONE ..........................................................69.50 DEUTSCHE BANK N ...........................................15.80 DEUTSCHE POST N ............................................38.83 DEUTSCHE TELEKOM N ......................................14.58 E.ON N................................................................8.66 ENEL N ................................................................5.16 ENGIE................................................................14.07 ENI N.................................................................14.93 ESSILOR INTL....................................................113.50 FRESENIUS.......................................................69.00 IBERDROLA.........................................................6.72 INDITEX ...........................................................28.96 ING GROUP .......................................................16.26 INTESA SANPAOLO N...........................................3.12 KON AH DEL BR .................................................18.37 L'OREAL...........................................................181.80 LVMH...............................................................240.15 MUENCHENER RUECKV N.................................191.50 NOKIA ................................................................3.90 ORANGE............................................................14.73 ROY.PHILIPS .....................................................33.40 SAFRAN............................................................89.50 SAINT-GOBAIN..................................................47.56 SANOFI .............................................................72.25 SAP I................................................................90.80 SCHNEIDER E.SE................................................74.78 SIEMENS N ......................................................122.06 SOCIETE GENERALE...........................................46.47 TELEFONICA.........................................................8.41 TOTAL................................................................47.54 UNIBAIL-RODAMCO........................................204.30 UNILEVER CERT ................................................46.42 VINCI ................................................................87.20 VIVENDI............................................................23.22 VOLKSWAGEN VZ I...........................................181.38

1863.0 715.0 582.0 2041.0 2145.0 768.0 599.0 301.0 260.9

272.6 149.5 1064.0 758.0 2152.0 1542.0 969.5 654.5 227.0 176.0 2465.0 1941.0 705.5 353.6 7755.0 6070.0 1247.0 999.5 709.0 471.1 310.9 173.2 581.5 408.7 1705.0 1446.0 5702.0 4460.0 341.1 249.9 841.0 579.5 201.6 147.2 867.0 523.0 475.7 373.9 5425.0 3392.0 297.2 173.6 555.0 417.0 108.2 80.0 335.8 221.8 148.4 90.6 182.0 102.8 1696.0 1408.0

TOBACCO British American . . . .4870.0-106.0 5643.0 4565.0 Imperial Brands . . . . .2864.0 -56.0 3933.5 2856.5

870.5 668.0 691.5 579.0 3118.0 2459.0 703.7 587.5

888 Holdings . . . . . . . . .282.8 1.2 Carnival . . . . . . . . . . . .4879.0 -25.0 Cineworld Group . . . . . .497.4 10.2 Compass Group . . . . . .1496.5 -10.0 Domino's Pizza Gr . . . . .351.8 4.1 easyJet . . . . . . . . . . . . .1651.0 -28.0 FirstGroup . . . . . . . . . . .106.1 -0.8 Go-Ahead Group . . . . .1643.0 29.0 Greene King . . . . . . . . . .537.4 10.6 GVC Holdings . . . . . . . .948.0 3.0 InterContinental . . . .4755.0 -68.0 International Con . . . . .637.2 -12.2 Ladbrokes Coral G . . . . .172.2 1.0 Marston's . . . . . . . . . . . . .113.1 0.1 Merlin Entertainm . . . . .335.7 -4.3 Millennium & Copt . . . .573.0 6.0

Price Chg High Low Mitchells & Butle . . . . .264.6 6.0 283.1 221.0 National Express . . . . .366.2 -0.8 386.8 334.7 Paddy Power Betfa . .8030.0-140.0 8900.0 6665.0 Rank Group . . . . . . . . . .235.5 2.5 248.5 192.9 Stagecoach Group . . . . .155.2 -3.1 217.5 153.7 Thomas Cook Group . . .127.5 -0.5 129.5 84.1 TUI AG Reg Shs (D . . . .1613.5 -2.5 1640.5 1068.0 Wetherspoon (J.D. . . . .1301.0 2.0 1323.0 929.0 Whitbread . . . . . . . . .3900.0 -34.0 4307.0 3512.0 William Hill . . . . . . . . . .303.2 0.3 338.0 240.0 Wizz Air Holdings . . . .3623.0 -37.0 3700.0 1560.0

AIM 50 3054.0 1192.0 1031.0 2640.0 2871.6 1016.0 821.4 548.5 669.5

SUPPORT SERVICES AA . . . . . . . . . . . . . . . . .149.9 -4.1 Aggreko . . . . . . . . . . . . .814.2 13.4 Ashtead Group . . . . . .2072.0 -14.0 Babcock Internati . . . . .737.8 15.0 BCA Marketplace . . . . . .190.8 -2.8 Bunzl . . . . . . . . . . . . .2009.0 68.0 Capita . . . . . . . . . . . . . .365.4 10.8 DCC . . . . . . . . . . . . . . . .7475.0 -40.0 Diploma . . . . . . . . . . . .1178.0 5.0 Electrocomponents . . . .619.8 2.6 Equiniti Group . . . . . . . .274.0 0.5 Essentra . . . . . . . . . . . . .512.5 -12.5 Experian . . . . . . . . . . . .1618.0 -13.5 Ferguson . . . . . . . . . .5496.0 26.0 G4S . . . . . . . . . . . . . . . .286.0 -0.2 Grafton Group Uni . . . .800.0 10.0 Hays . . . . . . . . . . . . . . .200.4 0.9 Homeserve . . . . . . . . . .790.5 4.0 Howden Joinery Gr . . .458.3 5.2 Intertek Group . . . . . .5030.0 -18.0 Mitie Group . . . . . . . . . .182.3 7.6 Pagegroup . . . . . . . . . .555.0 10.0 Renewi . . . . . . . . . . . . .103.6 0.6 Rentokil Initial . . . . . . .293.8 -1.9 Serco Group . . . . . . . . . .96.4 0.9 SIG . . . . . . . . . . . . . . . . .164.3 0.3 Travis Perkins . . . . . . .1482.0 20.0

EU SHARES Price

Chg High Low -7.3 609.5 490.9 0.4 145.6 108.7 -4.5 294.0 194.7 -8.5 1208.5 917.0 -1.7 188.4 146.4 -0.5 40.5 33.9 -2.6 587.6 436.8 0.0 1055.0 873.0 -0.1 151.4 137.2 -3.0 813.0 580.0 2.0 1016.0 742.5

TRAVEL & LEISURE 324.8 253.1 1989.0 190.2 7005.0 5700.0 151.8 134.5 301.4 234.2 366.2 299.5 499.6 363.5 1026.0 773.5 422.8 311.9 92.5 80.9

REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .844.5 -7.0 British Land Comp . . . .680.0 1.2 Derwent London . . . .2893.0 -43.0 Great Portland Es . . . . .647.0 -1.0

Price Hammerson . . . . . . . . .490.9 Hansteen Holdings . . . .141.4 Intu Properties . . . . . . .225.2 Land Securities G . . . . .994.5 LondonMetric Prop . . . .179.5 RDI Reit . . . . . . . . . . . . . .34.7 SEGRO . . . . . . . . . . . . . .568.6 Shaftesbury . . . . . . . . .1007.0 Tritax Big Box Re . . . . . .149.4 Unite Group . . . . . . . . .794.0 Workspace Group . . . .992.0

300.5 218.0 5380.0 4233.0 740.0 483.8 1760.2 1449.9 394.0 263.4 1679.0 914.5 153.0 101.0 2308.0 1485.0 766.0 508.5 982.0 594.0 4928.0 3668.0 670.0 472.6 188.0 111.3 146.1 101.4 537.0 335.3 625.5 410.2

Abcam . . . . . . . . . . . . .1187.0 4.0 1195.0 795.0 Advanced Medical . . . .320.0 5.5 350.0 199.5 ASOS . . . . . . . . . . . . . .7080.0 206.0 7144.0 5119.0 Blue Prism Group . . . .1392.0 42.0 1639.0 395.0 Brooks Macdonald . .2000.0 50.0 2582.0 1810.0 Camellia . . . . . . . . . .13600.0 725.0 13700.010070.0 CareTech Holding . . . . .403.5 -6.5 454.8 346.0 CityFibre Infrast . . . . . . .56.0 0.0 70.0 39.5 Clinigen Group . . . . . .1086.0 -4.0 1177.0 758.0 Conviviality . . . . . . . . . .363.0 7.5 426.3 251.3 CVS Group . . . . . . . . . .1178.0 -22.0 1490.0 855.0 Dart Group . . . . . . . . . .655.0 -12.5 719.0 486.3 EMIS Group . . . . . . . . . .770.0 1.0 1017.0 725.0 Faroe Petroleum . . . . . .113.2 -0.4 114.4 75.5 Fevertree Drinks . . . . .2432.0 35.0 2485.0 1210.0 First Derivatives . . . . .4240.0 -70.0 4380.0 2136.0 Frontier Developm . . .1395.0 10.0 1510.0 276.5 Gamma Communicati .702.0 -2.0 710.0 463.0 GB Group . . . . . . . . . . . .410.0 -1.5 455.0 277.5 Gooch & Housego . . . .1445.0 -22.5 1539.0 1050.0 Hurricane Energy . . . . . .38.1 -0.9 67.0 24.0 Iomart Group . . . . . . . .381.0 -2.0 410.0 285.5 IQE . . . . . . . . . . . . . . . . .110.3 -4.7 178.8 38.8 James Halstead . . . . . .440.0 7.0 542.0 421.3 Johnson Service G . . . .140.0 0.2 151.0 108.3 Keywords Studios . . . .1458.0 -22.0 1661.0 522.0 Learning Technolo . . . . .80.1 -0.7 84.0 40.0 M&C Saatchi . . . . . . . . .388.0 -1.0 402.0 292.0 M. P. Evans Group . . . . .774.0 -2.0 819.8 685.0 Midwich Group . . . . . . .620.0 0.0 640.0 290.0 Mulberry Group . . . . . .978.0 -12.0 1149.0 951.8 Next Fifteen Comm . . .425.5 5.5 455.0 325.9 Nichols . . . . . . . . . . . . .1527.5 -17.5 1958.0 1420.0 Numis Corporation . . . .337.5 -1.5 345.0 231.3 Pan African Resou . . . . . .13.2 0.7 18.0 12.5 Patisserie Holdin . . . . .394.5 -2.0 397.5 300.5 Polar Capital Hol . . . . . .516.0 6.0 558.0 329.3 Purplebricks Grou . . . .449.6 1.6 514.5 181.0 Redde . . . . . . . . . . . . . .172.2 0.2 182.0 144.3 Renew Holdings . . . . . .451.0 -6.0 485.0 410.0 RWS Holdings . . . . . . . .421.0 -17.0 539.0 310.0 Scapa Group . . . . . . . . .472.8 0.6 515.5 321.3 Secure Income Rei . . . .369.0 -1.0 380.0 315.3 Smart Metering Sy . . . .765.0 -5.0 874.5 479.5 Sound Energy . . . . . . . . .50.6 -0.3 93.5 39.8 Staffline Group . . . . . . .989.0 16.0 1450.0 973.0 Telford Homes . . . . . . .426.0 -1.0 444.5 317.5 Thorpe (F.W.) . . . . . . . . .337.5 -2.5 396.5 300.0 Watkin Jones . . . . . . . . .213.0 -5.0 249.0 128.5 Young & Co's Brew . . .1352.5 5.0 1405.0 1300.0 Young & Co's Brew . . .1090.0 0.0 1124.0 978.0

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

US SHARES

Chg

High

Low

Price

Chg

High

Low

-0.52 -1.95 1.00 -2.50 -0.90 0.45 -0.10 0.09 -0.87 -1.18 0.12 -1.10 0.82 0.00 -1.03 -0.72 -0.08 -1.15 -0.12 -0.14 -0.02 -0.11 0.02 0.70 0.60 -0.03 -0.04 0.04 0.04 0.23 -2.30 -1.05 -0.25 -0.07 0.05 0.11 -0.52 0.41 0.25 -1.47 -0.88 -0.96 0.47 -0.01 -0.01 -2.50 -0.46 0.24 -0.37 -2.64

110.10 202.10 111.60 94.00 206.85 169.20 27.69 6.20 98.80 123.90 7.93 97.50 69.17 34.87 76.48 72.13 17.82 41.36 17.53 10.81 5.59 15.16 15.49 122.15 80.07 6.99 36.90 16.69 3.17 20.88 197.15 260.55 199.00 5.96 15.80 36.12 92.36 52.40 92.97 100.70 76.34 133.50 52.26 10.63 48.75 238.15 52.31 88.80 24.87 192.46

91.28 142.60 90.27 62.46 154.25 112.00 21.81 4.82 78.97 101.30 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 26.90 61.51 43.40 69.79 83.85 63.36 108.00 40.66 8.10 41.11 202.00 37.23 64.74 15.96 124.75

3M..................................................................252.36 ABBVIE...........................................................108.30 ACCENTURE-A.................................................160.79 ALPHAB NON VTG RG-C.................................1170.37 ALPHABET RG-A.............................................1182.14 ALTRIA GROUP .................................................69.91 AMAZON.COM................................................1377.95 AMERICAN EXPRESS........................................99.69 AMGEN...........................................................190.08 APPLE................................................................171.11 AT&T .................................................................37.45 BANK OF AMERICA...........................................32.09 BERKSHIRE HATH RG-B ...................................215.10 BOEING CO.......................................................343.11 CATERPILLAR ..................................................169.37 CHEVRON........................................................130.65 CISCO SYSTEMS.................................................41.90 CITIGROUP .......................................................79.44 COCA-COLA CO..................................................47.84 COMCAST-A.......................................................42.14 DOWDUPONT...................................................76.65 EXXON MOBIL...................................................88.37 FACEBOOK-A...................................................187.48 GENERAL ELECTRIC............................................16.18 GOLDMAN SACHS GR .....................................269.03 HOME DEPOT..................................................205.37 HONEYWELL INTL ............................................161.84 IBM .................................................................165.47 INTEL................................................................45.30 JOHNSON & JOHNSO......................................144.40 JPMORGAN CHASE ..........................................115.70 MASTERCARD RG-A........................................168.59 MCDONALD'S ..................................................175.66 MERCK..............................................................61.30 MICROSOFT.......................................................92.33 NIKE -B-............................................................67.71 NVIDIA ...........................................................236.35 ORACLE.............................................................51.60 PEPSICO ...........................................................118.61 PFIZER ..............................................................37.23 PHILIP MRRS INT.............................................107.49 PROCTER&GAMBLE ..........................................88.34 TRAVELERS COS ..............................................148.47 TWITTER ...........................................................22.16 UNITEDHEALTH GRO........................................245.18 UTD TECHS.......................................................137.75 VERIZON COMM................................................54.29 VISA RG-A.......................................................125.22 WAL-MART STORES........................................106.60 WALT DISNEY RG-DIS......................................110.55 WELLS FARGO..................................................65.65

4.67 2.79 0.19 6.13 10.85 -1.65 20.44 0.39 -0.55 -3.11 0.43 0.00 -0.51 8.42 1.03 -0.74 -0.27 -0.01 0.01 -0.85 0.64 -0.16 0.93 -0.26 3.35 -0.85 1.87 0.10 -0.21 2.33 0.03 1.58 -0.46 0.12 0.51 -0.29 0.55 0.15 0.56 0.30 -3.11 0.03 0.85 -0.21 0.33 2.07 0.07 0.67 0.81 0.05 0.17

254.80 108.37 162.50 1179.86 1187.05 77.79 1388.16 102.39 196.03 180.10 42.70 32.25 216.89 352.23 173.24 133.88 42.69 80.39 48.00 44.00 0.00 88.92 190.66 30.59 270.50 207.10 161.89 182.79 47.64 148.32 116.17 168.95 177.75 66.80 93.43 68.64 240.49 53.14 119.74 37.37 123.55 94.67 148.88 25.85 247.31 138.38 54.77 125.51 106.81 116.10 65.85

173.55 59.27 112.31 790.52 812.05 60.01 803.00 75.51 151.77 120.28 32.55 22.07 160.93 160.82 90.34 102.55 30.36 55.23 40.22 34.78 0.00 76.05 129.52 15.80 209.62 136.33 117.12 139.13 33.23 111.60 81.64 104.01 121.48 53.63 62.75 50.35 95.17 39.68 101.06 30.93 95.20 85.42 113.76 14.12 156.49 106.85 42.80 81.57 65.28 96.20 49.27

NEWSLETTERS

The biggest stories direct to your inbox

GET THE MORNING UPDATE, CITY A.M.’S DAILY EMAIL CITYAM.COM/NEWSLETTER COMMODITIES Gold............................................................1354.95 Silver...............................................................17.52 Brent Crude ...................................................70.53 Krugerrand.................................................1364.45 Palladium..................................................1099.00 Platinum ....................................................1014.00 Tin Cash Official.......................................19850.00 Lead Cash Official......................................2495.00 Zinc Cash Official.......................................3308.00

1.25 0.33 0.57 7.10 11.00 24.00 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............................................1960.00 Coffee 'C' Futures..........................................123.62 Feed Wheat Futures....................................136.00 Soybeans Futures Continuation Contract ...991.20

-59.50 -5.00 165.00 0.00 5.00 1.34 -1.60 -1.00

BoE IR Overnight.........................................0.500 BoE IR 7 days..............................................0.500 BoE IR 1 month...........................................0.500 BoE IR 3 months.........................................0.500 BoE IR 6 months ........................................0.500 LIBOR Euro - overnight ..............................-0.441 LIBOR Euro - 12 months.............................-0.262 LIBOR USD - overnight .................................1.438 LIBOR USD - 12 months................................2.230 Halifax mortgage rate ................................3.990

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00

Euro Base Rate ...........................................0.000 Finance house base rate .............................1.000 US Fed funds...................................................1.41 US long bond yield........................................2.89 Euro Euribor...............................................-0.377 The vix index ................................................11.58 The baltic dry index ................................1200.00 Markit iBoxx EUR .......................................228.91 Markit iBoxx GBP........................................321.27 Markit iTraxx................................................69.48

0.00 0.00 0.00 -0.04 0.00 0.11 43.00 -0.37 -16.47 -0.78

WORLD INDICES Price Chg %chg FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7615.84 -27.59 -0.36 FTSE 250 . . . . . . . . . . . . . . . . . . . . 20521.74 -16.72 -0.08 FTSE All-Share . . . . . . . . . . . . . . . . 4185.04 -12.63 -0.30 FTSE AIM All-Share . . . . . . . . . . . . 1068.20 0.35 0.03

Price Chg S&P 500 . . . . . . . . . . . . . . . . . . . . . 2839.25 1.71 Dow Jones I.A.. . . . . . . . . . . . . . . 26392.79 140.67 Nasdaq Composite . . . . . . . . . . . . . 7411.16 -3.89 Xetra DAX . . . . . . . . . . . . . . . . . . . 13298.36 -116.38

%chg 0.06 0.54 -0.05 -0.87

Price Chg %chg CAC 40 . . . . . . . . . . . . . . . . . . . . . . . 5481.21 -13.95 -0.25 Swiss Market Index. . . . . . . . . . . . 9482.96 -64.61 -0.68 ISEQ Overall Index . . . . . . . . . . . . . 7033.76 -122.64 -1.71 FTSEurofirst 300. . . . . . . . . . . . . . . 1564.79 -12.96 -0.82

Price Chg %chg Hang Seng. . . . . . . . . . . . . . . . . . 32654.45 -304.24 -0.92 Shanghai Composite . . . . . . . . . . . 3548.31 -11.16 -0.31 Straits Times . . . . . . . . . . . . . . . . . 3572.62 -36.62 -1.01 ASX All Ordinaries . . . . . . . . . . . . . 6164.70 14.00 0.23


CITYAM.COM

FRIDAY 26 JANUARY 2018

FEATURE

17

OFFICE POLITICS

Automation is evolution, not class war Taking opportunities to create efficiencies and improve productivity is critical Elliott Haworth

I

SUFFER the great misfortune of living near a busy Tesco Express store, which, absent of self-service checkouts, often makes the innocuous task of buying eggs feel like a test of one’s self-restraint. While waiting for the two portraits of human inefficiency behind the till to serve 20 shoppers, glancing at my phone, I read that thousands of Tesco and Sainsbury’s jobs are being culled. A cruel second passed imagining Tweedle Dee and Dum being replaced by robots. Or even redeployed to monitor self-service checkouts. Anything had to be better than waiting millennia to buy eggs. Supermarket checkout jobs are just some of the thousands that will be washed away in the tide of automation. Middle class jobs – call-centre workers, insurance underwriters, and bank tellers – could be gone in a decade.

Lower-skilled work of driving a taxi or laying bricks (there are robots that can lay 3,000 bricks a day) will be largely free of humans within two. If the gloomiest studies are to be believed, there will be 800m job losses by 2030, with women hit the hardest. However, while lamenting predicted job losses makes a good splash, it willfully neglects the boundless opportunities to create better ones. Liberating human beings from the sort of tedium better suited to emotionless machines invariably improves their quality of life, happiness, and affinity with their output. It’s a bit of a Marxist debunker, if one were ever needed. Through automation, workers will be less alienated from their work; capitalism will succeed without the exploitation of the working class. It’s not like robots can own the means to production, either. If they unite and revolt, that’s a different matter altogether. For businesses, taking the opportunity to create efficiencies and improve productivity is critical. Employing people for the sake of keeping them in work is the job of communist regimes, not profit-seeking institutions. There’s a great Milton Friedman anec-

FILL ME UP Refill Free

Employing people for the sake of keeping them in work is the job of communist regimes, not profit-seeking institutions

dote, in which workers digging a canal he visited were using hand-tools. Why? It was a “job creation programme”, he was informed. “If it’s jobs you want,” joked Friedman, “then you should give these workers spoons, not shovels.” Having a call centre full of people doing a job achievable by a single computer is no different. But, say critics: if 10 people can be replaced by one, serious questions about what happens to the remaining nine must be answered. Such uninspired assumption neglects the limits of human imagination.

Here’s a weird fact: In the UK, 38.5m plastic bottles are used every day, and only just over half make it to recycling. We all watched Blue Planet. David Attenborough said use less plastic. This app plots points on a map where you can refill your water bottle for free, thus saving cute turtles. Costa Coffee and Premier Inn have signed up as locations.

We have literally no idea, nor can we accurately predict, the new types of work the future will hold. Web designers and data scientists were few and far between barely a decade ago. Today they are in high demand. Naturally, the leap from spoon-shoveller to digger driver, call-centre worker to technician, will require education. According to the Davos set this week, 95 per cent of those at highest risk of losing their jobs can be retrained for new, potentially higher-paying, work. Aviva is a good case study. The insurance giant made headlines last year by asking its workers whether their jobs could be done better by robots. Those who answered “yes” were re-trained for other roles in the company. Not every company will be so considerate, and nor are they obliged to be. Consequentially, the debate is framed as a class war: wealth-creating businesses against their employees. But automation is little but the ongoing evolution of human efficiency. It isn’t new, it will never end, and impeding its progress is futile. As technology develops, so every industry will begin to ask whether tasks can be performed better by, or with the assistance of, a robot. Automation isn’t a threat. But those who treat it like one will be the first to suffer. £ Elliott Haworth is business features writer at City A.M.


18

HOT PROPERTY

FRIDAY 26 JANUARY 2018

HOTPROPERTY

CITYAM.COM

Edited by Melissa York

WHAT TO BUY, WHERE TO INVEST AND HOW TO DECORATE

NEW HOMES

NEW DEVELOPMENTS ON THE MARKET THIS WEEK

FORBURY, LEWISHAM £530,000 Rare new build properties in Blackheath are going on sale tomorrow. Sitting on Lee Terrace, within the Blackheath Conservation Area, there are 27 one to three bedroom apartments and 10 four bedroom, four storey houses designed to reflect the period architecture of the area, with cast Portland Stone features. Each home also has a balcony, terrace or garden and is situated near the train station, with trains taking 18mins to travel into Cannon Street. £ Call Berkeley Homes on 01732 809552

COLINDALE GARDENS, BARNET

POCKET EDITION, LEWISHAM

BRANDON HOUSE, SOUTHWARK

GREYBROOK HOUSE, MAYFAIR

From £375,000 for a one bed apartment

From £450,000

From £949,995 for a two bedroom apartment

From £12.5m

Join a huge new community being built in north London by snapping up one of the homes going on sale tomorrow. The launch will see 104 new homes go on the market, comprising The Villas, one to three bedroom apartments, and The Family Quarter, three and four bedroom townhouses. These are part of Redrow’s £1bn project to build 2,900 properties across 47 acres. The developer is also investing £11m in Colindale station improvements, with a 31min commute into Bank.

Live in the increasingly arty neighbourhood of Deptford in south London. Affordable housing developer Pocket Living is selling 14 of its Pocket Edition homes, comprising one and two bedroom apartments, from tomorrow. The old propeller factory has been totally refurbished, but the original brick facade and period features linger in the residents’ lounge. It’s equidistant from New Cross and Deptford stations, with both offering commutes of less than 10mins into London Bridge.

Walk to work over London Bridge and brunch in Borough Market at the weekend by snapping up one of the last homes at this scheme directly opposite Borough underground station on the High Street. The apartments are 90 per cent sold, but eight five-storey mews houses went on sale yesterday, boasting three bedrooms and a roof terrace each. Due to be completed in the spring, a show home is also available to view with interiors from London-based design firm No.12 Studio.

Piano maker Bechstein’s former London HQ and show room has been transformed into four luxury residences in west London. Developer Fenton Whelan is behind the apartments on 28 Brook Street set inside a Grade II listed, Art Deco building. Now, the six storey building is home to three full floor, three bedroom apartments and a five bedroom duplex penthouse with its own full-floor roof terrace for £25m. An optional Health Club membership at Claridges and The Connaught is also thrown in for buyers.

£Call 0203 8113 734 or visit colindalegardens.com

£Call 020 7226 6611 or email newhomes@currell.com

£Call 020 3437 1101 or visit brandonhousese1.com

£Call Knight Frank on 020 7647 6612

PROPERTY OF THE WEEK

Inside artist Olivier Mourao’s home P21

FOCUS ON DEPTFORD

Why it’s the Help to Buy capital P22

LEGAL Q&A

How much will it be to extend my lease? P22


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FRIDAY 26 JANUARY 2018

CITYAM.COM

HOT PROPERTY

21

PROPERTY OF THE WEEK

A unique home for antiques

Melissa York talks to painter Olivier Mourao about the sale of his colonialstyle period conversion in west London

Princedale Road, Notting Hill, £1.6m patio that can be used as a retreat all year round. Now it’s time to move onto pastures new with a studio space. “I looked at 300 houses and most of them don’t have a touch of originality. When I found this one I realised it was special.” £ Call Dexters on 020 7792 2700

AREA GUIDE: W11 HOUSE PRICES Source: Zoopla DETACHED SEMI TERRACED FLATS £8.28m £6.999m £3.903m £1.146m TRANSPORT Source: TfL Time to Canary Wharf 30 mins Time to Bank 18 mins Nearest tube station Holland Park

Camden

Brent

Islington

ac

H

ey

kn

Notting Hill

Westminster Southwark

ith

18th century Indian palace. The result is a visually striking home filled with artistic gems. “We have been working on it ever since we bought it and have only recently finished,” says Mourão. “It was a place for the teachers who taught at the school behind the house to live. “It was maybe the biggest house on the street and I squeezed the most out of it.” Aside from the enormous ground floor reception room, there’s another living space upstairs and a covered

m ers mm am Ha Fulh &

When Brazilian-born, London-based painter Olivier Mourão first bought his flat in 1983, he said it was “absolutely awful” and the area was “run down.” How times have changed. Moments away from Portobello Road Market, this spot in Holland Park is one of the most sought-after in the city, and Mourão’s two bedroom flat is sure to stand out from the crowd. He designed the flat himself in what he calls a “colonial style” and filled it with antiques accumulated on his travels, which include a trip to an

Lambeth Wandsworth

Lew


22

HOT PROPERTY

FRIDAY 26 JANUARY 2018

CITYAM.COM

LEGAL

Why SE8 is totally great

I intend to extend the lease of my flat and read the price payable for an extension is 15 times the current ground rent? Is this correct?

Deptford is the Help to Buy capital of London

Q&A

Hema Anand partner at Bircham Dyson Bell

There is a popular myth that the price for a lease term extension is simply a multiple of the passing ground rent under the terms of the lease. Unfortunately, the price payable for a lease term extension is not as straightforward. Pursuant to the Leasehold Reform, Housing and Urban Land Act 1993 (the Act) and subject to meeting relevant criteria, a leaseholder can force a landlord to grant a lease term extension under the Act. The landlord is obliged to grant a new lease of 90 years plus the term that is left on the existing lease and the ground rent is reduced to nil for the remainder of the new extended lease. The Act sets out the principles upon which the price for the lease term extension is calculated and which does factor in lost ground rent. A valuer who specialises in preparing a valuation under the Act is best placed to advise and part of the process is to consider market values. Essentially, because the ground rent under the terms of the new lease will be reduced to nil, the price will factor compensating the landlord for the loss of ground rent that would otherwise be payable for the rest of the term of the existing lease. Where the lease is less than 80 years, the landlord is entitled to 50 per cent of the profit stemming from the increase in value of the property arising from the grant of the new lease. The impact on the price is significant which is why it is crucial to extend your lease before it falls below 80 years. In recent months, some lenders have amended their lending requirements and will not lend where the lease of the property has less than 85 years left to run. Other compensation is available if the landlord can successfully establish that by extending the lease he or she has suffered a reduction in the value of his or her interest in the building or other flats in the building, for example. The Government is currently considering ways in which to streamline the process for extending leases (and buying freeholds) and if the Leasehold Reform Bill is passed, there is scope to simplify and possibly cap the price payable for a lease extension. Separately, the parties are free to negotiate terms outside of the Act i.e., for a longer or shorter lease length, to include a ground rent and any other terms that are negotiated between the parties. All of which will have an impact on the valuation and therefore price payable for the lease term extension. £ Bircham Dyson Bell is a multidisciplinary UK law firm advising private companies, public sector bodies, not-for-profit organisations and individuals since 1834. Visit bdblaw.co.uk to find out more

FOCUS ON DEPTFORD Since Help to Buy, the government’s equity scheme to help first time buyers on to the property ladder, was announced in 2013, it’s created thousands of new home owners. And nowhere has benefitted more from this than Deptford. This once run down part of south east London is now the Help to Buy capital of the city. “Since the start of the scheme, a third of new homes in Deptford have been sold using Help to Buy – more than anywhere else in London,” says David Fell, research analyst at Hamptons International estate agents. “Developers have worked hard to keep pricing at just under the £600,000 mark – the Help to Buy price cap in London.” It also helps that more new homes have been built here that fall under the cap than anywhere else, with roughly four in ten of them sold under Help to Buy last year. Developers have been keen to jump on the Deptford wagon, filling in the gaps along the banks of the Thames and along Deptford Creek,

thanks largely to two factors. Firstly, it’s become a lot cooler. Young artistic types have colonised the high street, and it’s now home to a quirky pop up restaurant in a double decker bus and The Job Centre, a trendy pub that used to be, you guessed it, a job Left: The Job Centre, an Antic pub. Above: The Laban Building centre. Students also keep the area young. “Nearby Goldsmiths University is a draw for both UK and international students, with some of its courses ranking in the top ten in the world,” says Edward Robin-

son, residential development partner at Knight Frank. It’s also on the doorstep of beautiful, historical Greenwich, but represents much better value for money. “A one bedroom apartment in Deptford is typically around £325-375,000 compared to Greenwich, where a one bed is £375-425,000,” says Graham Lawes, director of residential agency at JLL. Professionals also love the Zone 2 location’s transport links. Though not on the Tube, the mainline station links to London Bridge in six minutes and Canary Wharf in 16 minutes. Seven figure sales are still very rare, with the most expensive sale being a £1.207m terraced house on Albury Street, a road that’s been breaking records for the area since 1995, ac-

cording to Hamptons’ data. The best houses include “stunning Victorian properties around Deptford Park, with Scawen Road a particular favourite,” says Chris Early, KFH’s sales manager at its nearby Canada Water office. For something more affordable, look out for “the 2005 converted former council block Aragon Tower, from which you can enjoy some of the best views of the capital.” House price growth has risen 12 per cent year-on-year, representing strong investment potential. “The SE postcode has the greatest potential out of all areas in London,” says Matthew Moloney, associate director at Colliers International. “If buyers are looking to make a smart move, Deptford is definitely an area to consider.”

PRIVATE VIEW ON THE MARKET IN DEPTFORD THIS WEEK THE TIMBERYARD FROM £585,000 Over a thousand homes are being built on this former industrial site, alongside new shops and offices. Call 020 3815 9000 or visit thetimberyard.london

DEPTFORD HIGH STREET

DEPTFORD FOUNDRY

£385,000

FROM £365,000

A two bedroom flat on the High Street with a sizeable living room, balcony and bike storage. Call KFH Canada Water on 020 3199 8110

One to three bedroom apartments on Arklow Road, all available with Help to Buy loans. Visit anthology.london/develop ments/deptford-foundry

AREA GUIDE Deptford Deptford Market Yard

Little Nan’s Bar

HOUSE PRICES Source: Zoopla DETACHED SEMI TERRACED FLATS £667,515 £550,874 £562,855 £381,409 TRANSPORT Source: TfL Time to Canary Wharf 16 mins Time to London Bridge 6 mins Nearest train station Deptford BEST ROADS Source: Hamptons International Most Expensive Albury Street £1,069,432 Best Value Enterprize Way £219,750 PRICE DIFFERENCE £849,682 - 487%

The Albany

Old Tidemil Wildlife Garden

Panda Panda

Area highlights Deptford Market sells fruit, vegetables, bric a brac and antiques and is open seven days a week. It also has unusually long hours for a street market, opening as early as 7.30am most days and closing at 11pm every day apart from Sunday. The Albany is a much-loved community arts centre, with up to 300 seats in the theatre, a bar, two studio theatres a cafe and rehearsal space. It even hosts a Thursday gardening club. Set up in honour of his late grandmother, Tristan Scutt’s Little Nan’s Bar is a quirky establishment that’s a retro living room parody in an old railway arch. Vintage decor and cocktail lists tucked inside Charles and Diana memorability books are just some of the treats in store for visitors. Panda Panda is also a great chilled out lunchtime spot. It’s a simple cafe but serves steaming hot, comforting bowls of Vietnamese pho to eat in or take away, plus sandwich baguettes and bubble teas, an increasingly popular Asian import.


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24

LIFE&STYLE

CITYAM.COM

FRIDAY 26 JANUARY 2018

ELLIOT MOSS PRESENTS

JAZZ SHAPERS EVERY SATURDAY AT 9AM

GOING OUT

IN CONVERSATION WITH THE SHAPERS OF BUSINESS, WITH MUSIC FROM THE SHAPERS OF JAZZ, BLUES & SOUL

IN ASSOCIATION WITH

EDITED BY STEVE DINNEEN @steve_dinneen

FILMS OUT THIS WEEK

FILM DOWNSIZING DIR. ALEXANDER PAYNE

hhhii | BY STEVE DINNEEN Alexander Payne has had a hell of a run. Since the breakout success of 1999’s Election, he’s directed Jack Nicholson in the Oscar-nominated About Schmidt, sent sales of Merlot into a downward spiral with the brilliant Sideways, somehow topped all three with the hilarious, heartbreaking The Descendants, and, most recently, brought a tear to my eye with the crushingly sad Nebraska. He’s carved out a reputation for

fiercely intelligent, bitter-sweet comedies in which people rail impotently against the absurdity of life, wistful depictions of disappointment and loss that highlight the importance of snatching life’s fleeting moments of happiness. His new film, Downsizing, is a break from the ostensibly drab realism of his recent films. Its premise, that people can choose to shrink themselves to five inches tall in order to cut down on consumption of resources, therefore leading more lavish lifestyles, sounds more like a Charlie Kaufman pitch than one from Alexander Payne. But it’s also his most conventional work in years, with the gloss of spe-

cial effects papering over a script that’s a little too on the nose, its commentary on consumerism verging dangerously close to preachy. Matt Damon and Kristen Wiig play Paul and Audrey Safranek, a couple scraping by, neither winners nor losers in the game of life, comfortable but discontented. All around them are tiny little people leading apparently wonderful lives, travelling in bijou firstclass compartments and living in lavish doll-house mansions in hermetically-sealed micro-towns. While “miniaturisation” was created by idealistic Norwegian scientists as a way to save humanity from itself, it has been co-opted by luxury lifestyle brands,

challenge the mighty force for the right to return to their homeland. The form of this duel? A nice game of football. What follows is a goodnatured satire of both the beautiful game, and British-European relations, with the pampered Real Bronzio, all quiffed hair and puffed-out chests, being individually talented but inherently selfish. The cavemen, meanwhile, are an insular bunch, set up as classic underdogs, learning how to play through Rocky-style training montages. Unlike Chicken Run and Shaun the Sheep, there’s a definite, slightly contrived lesson about teamwork, am-

bition, hard work and selflessness. But it’s so lovingly put together, so filled with sharp visual gags and cute cultural references, that a little moralising can be forgiven. There’s a real sense of nostalgia to Early Man, a harking back to the studio’s early work – it’s not a far stretch to imagine Dug and Hognog as a prehistoric antecedent to Wallace & Gromit – and even the faintest trace of fingerprints on plasticine faces adds to the tactile charm. It’s also, perhaps, a little reminder that, amid the glut of blockbuster CGI animations, there’s life yet in the evolutionary backwater of stop-motion.

who will liquidate a person’s assets and make them relative millionaires in their new, downsized lives. The bland utopia of Leisureland, of course, is not all it’s cracked up to be. Behind the facade of glamorous parties and tiny designer dresses are all the faults and foibles of regular society. You can’t run away from yourself, yeah? Christoph Waltz plays a wonderfully oily smuggler, getting rich peddling drugs and bootleg booze. When his all-night parties finally come to a close, tiny east Asian maids arrive to clean up. Meanwhile, governments are using the technology to shrink political dissidents, and little refugees are smuggling themselves

around the world in TV boxes. As I said, it’s all a bit on the nose. In lieu of his usual deep characterisation, Payne concentrates his efforts on visual flourishes; there’s a great perspective shot of Matt Damon shrinking as he walks down a long corridor on his way to the miniaturisation ward, and little details like the way the nurses scoop up unconscious downsizers on little spatulas are a reminder that a thoughtful, talented director is at work. But nice as these trappings are, they’re no substitute for the unfiltered, joyous, depressing examination of the human condition that’s made Payne such an essential director.

FILM EARLY MAN DIR. NICK PARK

hhhhi | BY STEVE DINNEEN Aardman Animations, creator of beloved duo Wallace & Gromit, rarely puts a plasticine foot wrong. Its stopmotion shorts featuring a northern inventor and his indefatigable hound are classics for the ages, destined to be repeated every Christmas from now until the fiery end of days, passed from adoring parent to amazed child. Then came Chicken Run, which laid the winning blueprint for nearly two decades of glorious, family entertainment, including the excellent Wallace & Gromit: The Curse of the Were-Rabbit and Shaun the Sheep Movie. Even the foray into digital animation with Flushed Away and Arthur Christmas were fun, if forgettable. With Nick Park back writing and directing, the studio is very much on terra firma with Early Man, which returns to the exaggerated toothy grins and northern accents of yore. It features a tribe of simple cavemen in stone-age Manchester, who are supplanted by a greedy panEuropean bronze-age civilization who want to set up a new mine. Banished to the volcanic dead-lands, the cavemen are plagued by giant, aggressive mallards, prompting young Dug and his warthog sidekick to

ART ANDREAS GURSKY HAYWARD GALLERY

The Southbank’s Hayward Gallery opens after a years-long renovation to celebrate its 50th anniversary with an exhibition of German photography master Andreas Gursky. It includes more than 60 images from the 1980s to the present day.


CITYAM.COM

: @city_am

FRIDAY 26 JANUARY 2018

LIFE&STYLE

25

: @cityamlife

FILM

FILM

LAST FLAG STANDING DIR. RICHARD LINKLATER

12 STRONG DIR. NICOLAI FUGLSIG

hhhii | BY MELISSA YORK

hiiii | BY STEVE HOGARTY

Remember Boyhood? Richard Linklater’s Oscar-gobbling epic about the pains of growing up? That was peak Linklater, not least because what followed, Everybody Wants Some!! – note the double exclamation points – was such a crashing disappointment. Last Flag Standing isn’t quite a return to form, but it’s certainly a return of sorts. It explores familiar themes of nostalgia and male friendship, but in a far more nuanced fashion. It follows three Vietnam veterans, Sal, Richard and Larry, who served in the marine corps together 30 years before the story starts. Larry, a man of quiet reserve and simple tastes, seeks out Sal, a foul-mouthed barman played with bombast by Bryan Cranston, then reunites him with Richard, played by Laurence Fishburne, a reformed alcoholic and womaniser turned Baptist priest. Once together, Larry quietly announces that his wife died and his son, also a marine, was recently killed in Iraq and asks his two friends to help him collect the body from the military and organise his funeral. Steve Carrell, perhaps the most likeable, relatable actor on the planet after Tom Hanks, imbues Larry with an ocean’s worth of hidden depths. Richard and Sal, meanwhile, bicker at his shoulders like cartoon angels and devils, battling to influence his decisions. All the while, Larry maintains a dignified stillness that’s almost touching, broken only by the occasional expression of tortured grief. Aside from Carrell’s masterful per-

THEATRE AMADEUS NATIONAL THEATRE

hhhhi | BY STEVE DINNEEN The National’s blockbuster 2016 production of Amadeus is rewarded with a second run that’s destined to once again have patrons of the Olivier in raptures. It’s a guaranteed crowd pleaser, combining the intellectual whiff of classical music, an insouciant scatological humour and visually arresting set pieces. It tells the sad tale of Salieri, the Viennese court composer rumoured to have poisoned the young Mozart. He is portrayed as devout man of God, having risen to his eminent position through a combination of prayer and hard work. But his world is brought crashing down when he encounters the prolific, effortless genius of Adam Gillen’s Mozart. To make matters worse, Mozart is a total dick, a pompous, arrogant, ill-mannered little so-and-so who you would pay to avoid were he not so gifted. Mozart effortlessly reels off symphonies that Salieri couldn’t hope to produce in a lifetime. What kind of God would curse his loyal subject with such a gross injustice? Lucian Msamati does the heavy lifting as Salieri, imbuing his character with passion, spite and a streak of sardonic humour. I’m still unconvinced by how utterly unlikable Mozart is, with the incessant fart jokes often relegating him to the role of panto dame. But this is an enthralling, impressive production nonetheless.

In the weeks following 9/11, the US sent a covert team into Afghanistan to liberate (and bomb the absolute bejesus out of) a handful of Talibanoccupied towns. The squad joined forces with a local Afghan warlord, and together they traversed the mountainous region on horseback, calling in airstrikes, gunning down Taliban troops and kickstarting the War on Terror. It’s a striking image – these men on their horses protecting democracy – and now that it’s been declassified, it’s pure, uncut Hollywood bait. If you wanted to trap a producer under a cardboard box, you’d use a doodle of Chris Hemsworth saving the world on the back of a pony to do it. It was almost inevitable too, given the facts of the story, that this Bruckheimerproduced war drama turned out to be a two-hour long army recruitment video,

formance, the writing is sharp, particularly compelling when it roots around the concept of patriotism and what it means to be an invading force in a foreign land. The Americans, it goes, are the only invading force that expects foreigners to receive them with open arms. The symbolism of the flag, too, is also questioned, a poignant topic considering Trump’s recent aversion to NFL

players choosing to “take a knee” in front of it. But compelling concepts can only carry you so far. Last Flag Standing drags along at a snail’s pace, becoming utterly directionless in the last half an hour, with little closure offered by the muddled and unsatisfying ending. Despite the trio of fine performances, Linklater just has too little to say.

the kind of jingoistic, flag-waving soldier porn that doesn’t travel well outside of United States of Mother-Effing America. There’s Bay-grade spectacle and some truly marvellous explosions to behold, though it’s in lieu of the slightest shred of commentary, nuance or critical hindsight. And as the bodycount of faceless Middle-Eastern extras hits triple figures, it’s difficult not to squirm in your saddle. With better pacing – your mind will be wandering by the fifth airstrike – 12 Strong might have been dumb fun. As it is, it’s a hot pile of horse plops.


26 PUNTER FRIDAY 26 JANUARY 2018

CITYAM.COM

THE PUNTER

Bill Esdaile previews the best of the action from Doncaster and Cheltenham

RACING TRADER

A

LTHOUGH most eyes will be on Cheltenham for their excellent Trials Day meeting, the biggest betting race of the weekend is the Sky Bet Chase at Doncaster (3.15pm). Tenor Nivernais looks set to make his reappearance off top weight after being pulled out of a handicap at Ascot last Saturday. He certainly doesn’t hold any secrets from the handicapper, but he has a fine record fresh so should still run well and I could easily see him running into a place. But if there is one horse who could be very well-handicapped it surely has to be Nicky Henderson’s L’AMI SERGE. This will be only his seventh chase start, and his first in over a year, but he has some top quality form over hurdles. Last time out he was a good second to Sam Spinner in the Long Walk Hurdle at Ascot, while he won the Grade One French Champion Hurdle at Auteuil last summer. He’s undeniably quirky, and sometimes doesn’t seem to want to go through with it, but is still hugely talented. Reports from Seven Barrows suggest that he’s been schooling very well and his 7lb lower mark over fences could be a massive advantage in this field. Essentially he is better than a handicapper and this race is full of handicappers. He isn’t an easy ride, and will need to be nursed into it, so the booking of Davy Russell is absolutely perfect. There isn’t a better jockey out there with this type of horse, as he has shown with Whisper. L’Ami Serge is likely to go back for the Stayers’ Hurdle at Cheltenham next, but he’s my bet of the weekend at 3/1 with Ladbrokes. Henderson could be set for a good day on Town Moor, as I also like the look of his VERDANA BLUE in the mares’ hurdle (2.40pm). She won well at Ascot two starts back, especially as she suffered some serious interference in the early stages. Following that she was backed into favouritism for the Racing Welfare Handicap Hurdle over the same course and distance where she put in another excellent performance to finish third behind Hunters Call. That was one of the hottest handicaps of the season and she should have a really strong chance back against her own sex in this Grade Two prize. The one to beat is undoubtedly Stuart Edmunds’ Maria’s Benefit who is chasing a five-timer. She destroyed her rivals at Taunton over Christmas, winning by an aston-

L’Ami can Serge to victory with Russell in the saddle

L’Ami Serge (left) chased home Sam Spinner in the Long Walk Hurdle at Ascot ishing 30 lengths, a performance which saw her rating rise from 136 to 152. It was a brilliant display, but this is a better race and I’m always a little wary of the form when a horse wins by such a big margin. Edmunds is a trainer going places and it won’t be long before he has a winner at one of the big festivals. That said, Verdana Blue has been running in some top handicaps, experience which may prove valuable back in a mares’ only race. Henderson continues to fire in the winners week in, week out and this one is worth backing at around the 5/2 mark. The two-mile handicap chase (3.50pm) looks like it could be a very open race with the likes of Forest Bihan, Double W’s and Duke Of Navan entered. However, I’m not going to desert BIGMARTRE who did this column a big

favour when winning well at Newbury in December. Harry Whittington’s inmate put his rivals to the sword with a faultless display of jumping that day, following on from an impeccable chasing debut at Ludlow in October. Some might have expected his trainer to target a Graded race after that, but Whittington clearly believes he’s well-handicapped off a mark of 145. I can see him landing this before potentially trying to win the same Grade One novice chase at Aintree that stablemate Arzal took a couple of years ago, ironically with L’Ami Serge behind in second. @BillEsdaile

POINTERS

TOMORROW

Verdana Blue L’Ami Serge Bigmartre

2.40pm Doncaster 3.15pm Doncaster 3.50pm Doncaster

RACING POST

JECEHHEMÊI8?=H79;7J:ED97IJ;H Going: SOFT (Good to soft in places)

3.15

8

SKY BET HANDICAP CHS (LISTED RACE) (1) 3m 5yo plus £45,560 14 Dec. 1

ITV4

43120- TENOR NIVERNAIS (294) (D)

Miss V Williams Runs: 38

2

11 11-12 ................A Coleman

Wins: 8 GD,SFT,HY

Places: 8

1-2122 L’AMI SERGE (35) (H)

N Henderson Runs: 26

8 11-7 ...............D N Russell Wins: 7 SFT,HY,GD,VSFT

Places: 11

3 1P-543 FLYING ANGEL (49) N Twiston-Davies Runs: 18

7 11-7 ..S Twiston-Davies

Wins: 5 GD,SFT,HY

Places: 3

4 01-83P LABEL DES OBEAUX(56)(P)(D) A King Runs: 21

7 11-6 .........W Hutchinson Wins: 4 SFT,GS,GD

Places: 6

5 P5-542 VIBRATO VALTAT (42) (T) Miss E Lavelle Runs: 38

6

9 11-4 ......................L Aspell Wins: 8 GD,HY,GS,SFT

Places: 11

115-U2 WARRIORS TALE (56) (T) (D)

P Nicholls Runs: 23

9 11-2 .....................S Bowen Wins: 5 SFT,GS,GF

Places: 5

7 P3-252 BWAKANDA (32) (D)

Mrs S Smith Runs: 28

9 11-0 ................... H Brooke

Wins: 7 GD,SFT,HY,GS

Places: 7

25/41- LONG HOUSE HALL(560)(HT)

D Skelton Runs: 18

10 11-0 .................. H Skelton Wins: 6 YLD,GD

Places: 3

9 28P3-P COOLOGUE (91) C Longsdon Runs: 19

9 10-6 .................. J J Burke Wins: 3 GS,GD

Places: 8

10 10-652 PILGRIMS BAY (31) (HP) (D) N Mulholland Runs: 23

8 10-4 ......................... J Best Wins: 3 SFT,GD

Places: 9

11 1-98U1 MUSTMEETALADY(42)(P)(CD) Jonjo O’Neill Runs: 20

8 10-3 ............. R McLernon Wins: 4 GD,SFT

Places: 5

12 U1P-83 MINELLA ON LINE (19) (D) O Sherwood Runs: 26

9 10-3 .............C Shoemark Wins: 3 SFT,GD

Places: 11

13 22-322 THUMB STONE BLUES(64)(TP)(C) K Bailey Runs: 14

8 10-1 ......... C Gethings (3) Wins: 3 GD/Y,GS,SFT

Places: 7

14 5-5145 FEDERICI (28) (B1) (D,BF)

D McCain Runs: 40

9 10-0 ...................B Hughes Wins: 6 HY,SFT,GD,YLD

Places: 7

2017: Ziga Boy (FR) 8 10 11, T Bellamy 10/1 (A King), 14 ran. BETTING: 3 L’Ami Serge, 8 Flying Angel, Wakanda, 10 Long House Hall, 12 Pilgrims Bay, Thumb Stone Blues, Warriors Tale, 14 Label Des Obeaux, Tenor Nivernais, Vibrato Valtat, 16 Coologue, Mustmeetalady, 20/1 Federici, 28 Minella On Line

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FRIDAY 26 JANUARY 2018

CITYAM.COM

PUNTER

27

The Last Samuri can put his rivals to the sword in Cotswold Chase

N

ATIONAL Hunt racing is all about highs and lows and you couldn’t have got much higher or lower in the space of a few minutes 12 months

ago. The joy of the enthralling Cotswold Chase battle between Many Clouds and Thistlecrack was immediately replaced by utter dejection after the former collapsed and died just a few yards from the line having caused a massive upset. Many Clouds epitomised everything that is good about jump racing. He was an old school chaser, a real warrior, who lugged 11st 9lbs successfully around Aintree in 2015 in what was undoubtedly one of the finest weight-carrying Grand National performances of all time. Cheltenham will screen the awardwinning film Many Clouds – The People’s Horse after racing and if you’re going to Prestbury Park tomorrow, I’d advise that you stay to watch it because it really is a fantastic piece of

cinema. On to this year’s renewal of the Betbright Trial Cotswold Chase (2.25pm), where Bristol De Mai is certain to start favourite. Nigel Twiston-Davies’ seven-yearold couldn’t have been more impressive when winning the Betfair Chase at Haydock by almost 60 lengths in December. He then went into the King George at Kempton as the 3/1 second favourite, but he was never at the races and dropped out quickly. Connections put that down to him suffering ulcers, which may well have been the reason, although he has disappointed a few times during his career and Cheltenham may not be his ideal track. At 11/10 with Coral, I’m happy to leave him alone and instead will be backing THE LAST SAMURI for the inform Kim Bailey team. The 2016 Grand National runner-up hasn’t actually won a race since March of that year, but he’s put in some fine efforts in defeat, not least

The Last Samuri (left) was an excellent second in the 2016 Grand National last time out in the Becher Chase when he tried to concede 6lbs to the very well-handicapped Blaklion. You’d have to think that the 10year-old’s chances of winning the National are now gone with him rated so highly, but a race like this on soft ground could be the perfect opportunity to get back to winning ways. Although he doesn’t have any experience of Cheltenham, he’s a very good jumper and he will be getting weight from almost all of his rivals. Bailey has had a good season and landed a double last Saturday with two progressive novice hurdlers, so he’ll be hoping that one of his old boys can now get on the scoresheet.

He is worth supporting each-way at around the 13/2 mark. This does look a decent renewal, though, with plenty having claims albeit with a number of questions to answer. Definitly Red has been a little up and down throughout his career, but he was back to his best in the 188bet.co.uk Many Clouds Chase at Aintree last month. The worry with him is that he hasn’t performed the two times he’s been to Cheltenham with all of his best runs coming on a flat track. Harry Fry’s American will love the ground, but he has plenty of questions to answer after his disappoint-

ing show in the Ladbrokes Trophy last time. If 2015 Cheltenham Gold Cup winner Coneygree could bounce back to the form of that run, he’d eat these for breakfast. However, he’s been pulled-up on both starts this campaign and looks to be regressing, while Tea For Two is another who hasn’t shown his best form at this unique track.

POINTERS

TOMORROW

The Last Samuri e/w

2.25pm Cheltenham

And the Oscar for best supporting actor goes to Finian’s

E

ARLIER this week the racing industry was rocked by the tragic news of trainer Richard Woollacott’s sudden death at the tender age of 40. His horse Beer Goggles’ win in the Long Distance Hurdle at Newbury last month was one of the stories of the National Hunt season so far, and there won’t be a dry eye in the house if he can go in again in tomorrow’s

galliardhomes.com Cleeve Hurdle (3.35pm). However, even though there didn’t appear to be any fluke about his Newbury success, he looks up against it here as he has a penalty to carry for that success. Wholestone loves Cheltenham, so he must go well, while I also wouldn’t be surprised to see Agrapart run a big race. However, I think this can go to

FINIAN’S OSCAR who is reverting to hurdles for the first time since finishing a close second in the Grade One Champion Novice Hurdle at Punchestown in April. He certainly hasn’t looked a natural over fences and Colin Tizzard has made what looks to be a sensible decision in coming back over hurdles. Take the 3/1 with Coral. As with all these races, we won’t

know the final declarations until later this morning, but look out for LE PATRIOTE in the last (4.10pm). He was having his first run for trainer Dr Richard Newland at Kempton a fortnight ago when failing to see out the 2m 5f trip of the Lanzarote Hurdle. The six-year-old French import finished seventh that day, but looked to be travelling with real

menace at the second last before the petrol ran out. Any more rain would play to his strengths with the drop back in trip a real plus.

POINTERS

TOMORROW

Finian’s Oscar 3.35pm Le Patriote e/w 4.10pm

Cheltenham Cheltenham


28 PUNTER FRIDAY 26 JANUARY 2018

CITYAM.COM

THE PUNTER

Hong Kong racing expert Wally Pyrah previews Sunday’s card at Sha Tin

RACING TRADER

Seasons Bloom can spring win for punters at Sha Tin

R

ACING enthusiasts are in for a treat at Sha Tin on Sunday morning, with the premier Hong Kong race-track hosting two Group One races, and a competitive eight-race undercard. Make sure you set your alarm calls early with the action taking place live on both RACING UK and ATR. The highlight of the morning must be the Group One Stewards’ Cup (8.40am) run over a mile. With prizemoney totalling around £550,000 for the winner, this promises to be a race to set the pulse racing. If you don’t believe me, imagine putting the ingredients of two former Stewards’ Cup winners, Beauty Only (2017) and Giant Treasure (2016), and a couple of LONGINES HK Mile winners, Beauty Generation (2017) and Beauty Only again (2016) into the melting-pot. Add to that the reigning LONGINES HK Cup victor Time Warp, the former HK Horse of the Year Werther, and a potential superstar who has risen 37lbs

in the ratings in Fifty Fifty and what do you come up with? A race to savour. Beauty Generation had half a dozen of Sunday’s rivals behind him, when winning last month’s HK Mile on International Race Day. All credit for that success went to young local jockey Derek Leung, who after dictating the pace from the off, quickened clear in the straight, before his rivals were aware he had gone beyond recall. He will be lucky to get away with those tactics again. A similar scenario happened in the HK Cup over 10f the same day, when jockey Zac Purton judged the pace to perfection on Time Warp and left his rivals with too much to do. This former Sir Mark Prescott gelding has won over a mile but has shown his best form over further. Trainer John Moore saddles four in the contest including former HK Derby and QE11 Cup winner Werther, who chased home Time Warp last time out. The six-year-old seems to have lost

Seasons Bloom won a Group Two at the track back in November some of his tactical speed, and a better option may prove to be stable companion Helene Paragon who has suffered some niggling health problems all season but is expected to be in peak condition now. It all went wrong for SEASONS BLOOM in last month’s HK Mile. Following a slow start, he could never get into contention in a slowly-run race, eventually finishing fourth. He did however, produce the fastest closing sectional times over the last 800m, despite having a health issue during the race.

This time he lines-up after a six-week break – has won all five races after at least a month’s rest – and has the inside draw setting him up for a dream journey. With Joao Moreira aboard, he can prove he is the best miler in the country. Half an hour earlier at 8.05am, the first four home in last month’s LONGINES HK Sprint renew rivalry again in the Group 1 Centenary Sprint Cup over 6f. Mr Stunning will be all the rage with punters having proved himself the best sprinter in HK and joint 29th in the of-

ficial World’s Best Racehorse Rankings. On this occasion, it may be worth taking a chance with his stable companion D B PIN who travelled further – was caught three-wide for most of the trip – than the official neck verdict by which Mr Stunning beat him in the HK Sprint, and could gain his revenge.

POINTERS

SUNDAY

D B Pin 8.05am Seasons Bloom 8.40am

Sha Tin Sha Tin

Out of this world Rocketeer can soar for trainer Moore T

RAINER John Moore, by his own high standards has underperformed so far this season. With a rich array of horses in his yard, the four-time champion trainer would have expected a better return than just 14 winners since the turn of the New Year. One thing you can guarantee, when the major race-meetings are on show in Hong Kong, Moore will

be at the forefront. Despite his lowly total of winners, the Australian maestro is still third in the trainers’ prize-money table accumulating £4m so far. Moore was particularly bullish this week when talking about his chances for the weekend, insisting all his contenders were now in peak condition after some niggling setbacks.

On Sunday, he is represented by nine horses – four in the Group One Stewards’ Cup – and it will be disappointing if he leaves the Sha Tin empty-handed. His best chance of success may come in the 9.15am when he saddles the to-date disappointing ROCKETEER, who lines-up in a competitive handicap over 1m1f. This four-year-old was rated as one

of Moore’s leading HK Derby hopes, but nothing has gone right this season. It was only in his latest run when seventh to leading HK Derby contender, Exultant, that there was a glimmer of hope on the horizon. On that occasion, after travelling sweetly in the middle part of the contest, his jockey fell asleep when the pace quickened, and he never saw daylight down the home stretch

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until too late. A highly-encouraging recent trial against the likes of top sprinter Lucky Bubbles, suggests he is now ready to perform to his best, and he could prove a value wager.

POINTERS Rocketeer e/w 9.15am

SUNDAY Sha Tin


FRIDAY 26 JANUARY 2018

CITYAM.COM

PUNTER

29

Ben Cleminson previews this weekend’s FA Cup action FOOTBALL TRADER

Yeovil to make it tricky for United this evening

W

HILE the annual debate of whether the ‘FA Cup is losing its magic’ is fast becoming one of the cup’s firm traditions, there isn’t much more magical than when a small club get to host a genuinely huge one. Tonight sees Yeovil Town, 20th in League Two, and with only one season of second tier football in their history, welcome Manchester United, second in the Premier League and three time European champions. While it is the second time in four seasons that United have made the trip to Huish Park, the excitement of seeing the Red Devils in Somerset certainly won’t be diminished for Glovers fans. Fiercely loyal (the song “Yeovil True�, recorded when they faced Liverpool in the 2004 third round and sold only in the town itself reached number 36 in the charts), there’s sure to be a sell-out at the 9,500 capacity ground, on what

could be a tricky evening for the Red Devils. It certainly was in that 2015 meeting, where Yeovil held out until deep into the second half, before goals from Ander Herrera and Angel Di Maria saw Louis van Gaal’s United to a scrappy 20 win. As is often the case in these sort of ties, the result is far more important than the performance, and current United boss Jose Mourinho would surely be delighted with a similar outcome here. Aesthetics are rarely key for Mourinho, as seen in United’s pragmatic 1-0 victory over Burnley last time out – their fourth win on the spin without conceding. However, the signing of Alexis Sanchez (a little known Chilean signed from Arsenal, if anyone had missed that one) could signal a greater attacking intent, and how Mourinho utilises Sanchez will be fascinating to watch. Sanchez could make his debut

Ander Herrera scored as Man United beat Yeovil 2-0 in the 2015 FA Cup

tonight, and does love this trophy – he has eight goals in 14 FA Cup matches, including strikes in the 2015 and 2017 finals. He’ll certainly fancy his chances of adding to that against the team sat just two points above the League Two relegation zone. Darren Way’s men have struggled near the foot of the fourth tier this term, though have saved their best form for cup competitions – making it into the quarter-finals of the Checkatrade Trophy, and getting past League One Bradford in the last round of this one.

They have had Harry Redknapp involved in an advisory role at times this season, but the former Tottenham boss hasn’t had much of an impact, with the Glovers winning just seven of their 28 league matches so far. Still, they currently sit outside of the drop zone – a position Way and Redknapp would surely take at the end of the season for a team that only reached the football league for the first time in 2003. Interestingly for a side that doesn’t win many matches, Yeovil don’t let in many first half goals, conceding just once before the break in their last 13

games. While a United victory may appear a foregone conclusion (as short as 1/9 with some bookmakers), there could be a lot more value in backing Way’s men to frustrate the Red Devils as they did three years ago. Draw HT/Man United FT is 7/2 with 188BET – a bet I suggest taking if you’d like a little FA Cup magic of your own.

POINTERS Draw HT/Man United FT

7/2 (188BET)

Pardew’s West Brom a handsome price to stop Reds W

HILE some clubs have a certain bogey team, in Alan Pardew, Liverpool have a bogey manager. Pardew is unbeaten in his last three visits to Anfield, winning two as Crystal Palace boss, and getting a 0-0 draw last month in his new role at West Brom. He leads the Baggies to Merseyside again tomorrow for the fourth round of the FA Cup, hoping to cause another stir amongst Reds fans.

After a club record 21 games without a win in all competitions from August to January, the cup has proved the catalyst for a mini-revival for West Brom, with a 2-0 victory at Exeter followed by a win and a draw against Brighton and Everton. It may not be much, but with the freedom of a ‘free hit’ against Liverpool in the cup, Pardew will hope to keep the momentum going.

Liverpool’s 18 match unbeaten streak came crashing down at Swansea on Monday night, with a frustrating performance that has been seen far too often over recent seasons. While Jurgen Klopp’s men were excellent in beating Manchester City 4-3 the previous weekend, they failed to raise their game for a supposed smaller club, and couldn’t find a way past a stoic Swans defence.

Their ability to try and unpick the lock will be tested again tomorrow night, with Pardew certain to set up with the same defensive block that picked up a point six weeks ago. That might prove tricky for a Liverpool side who could rest some key attacking talent ahead of Tuesday’s league meeting with Huddersfield – and Klopp could be in for yet another exasperating evening.

Pardew knows how to stop the Reds – plus he always relishes the glint of the floodlights and the sparkle of the TV cameras. The draw is 5/1 with 188BET, which I advise backing.

POINTERS Draw

5/1 (188BET)

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30 SPORT

FRIDAY 26 JANUARY 2018

CITYAM.COM

FOOTBALL

Mourinho signs new deal and targets trophies ROSS MCLEAN

@rossmcleanRMAC MANCHESTER United boss Jose Mourinho insists he has laid the foundations for a trophy-laden period in the club’s history after committing to an Old Trafford future by signing a contract extension yesterday. Former Chelsea, Inter Milan and Real Madrid manager Mourinho’s new deal will run until 2020, an extension of 12 months to his existing United contract, with the option of a further year to 2021. Mourinho guided United to League Cup and Europa League success during his first season in charge, while

Mourinho is set to unleash Sanchez the Red Devils are firmly in the hunt for Champions League qualification this term, but trail Premier League leaders Manchester City by 12 points. Questions had been raised over the Portuguese’s commitment given his decision to live out of a hotel rather than more permanent accommodation, although his talk is of a long-

term vision for the 20-time top-flight champions. “We have set very high standards – winning three trophies [including the Community Shield] in one season – but those are the standards I expect my teams to aim for,” said Mourinho. “We are creating the conditions for a brilliant and successful future for Manchester United. I am delighted they feel that I am the right manager for this great club for the foreseeable future.” Mourinho, meanwhile, confirmed that new signing Alexis Sanchez will go straight into the Untied squad for tonight’s FA Cup fourth-round clash at League Two Yeovil. He described the 29-year-old as “one of the best attacking players in the world” and could not resist a dig at Arsenal and old adversary Arsene Wenger, who acquired Armenia captain Henrikh Mkhitaryan in the swap deal with Sanchez. “The deal is good for everybody,” added Mourinho. “I lost a fantastic player, so did Mr Wenger. Mkhi has gone to a fantastic club and Alexis changed from a fantastic club to a giant club.” One player Mourinho was more reticent to discuss was former United forward Cristiano Ronaldo, who has been linked with a return to Old Trafford in the summer from struggling La Liga outfit Real Madrid. “I think I should be the last one to add some fuel to the fire,” said Mourinho. “Madrid is on fire. The results are not good, and it’s a club where I worked for three years. I care about the club. So to put some water on the fire I think Cristiano is the kind of player that every manager wants, every club wants. But only one manager can, only one club can have – [Zinedine] Zidane and Real Madrid.”

RUGBY UNION

Six Nations turning into

E

NGLAND’S injury woes have continued to mount this week and if they lose a couple of matches during the Six Nations or don’t achieve their aim – a Grand Slam – then there is a ready-made excuse. But Eddie Jones’s charges have got to become a side that is durable and can weather storms because this situation is exactly what they could face at next year’s World Cup. At the start of the season, the ideal scenario for England in 2018 would have been to build into the year with a Grand Slam, take that confidence into the summer tour of South Africa before facing New Zealand, the world’s No1 side, in the autumn. Imagine the psychological boost if, come the end of the Six Nations, England can say: we had a huge amount of injuries, we had players out of form but we still smashed a Grand Slam. There would be an air of invincibility

RUGBY COMMENT Ollie Phillips and rightly so. Contrast that with them potentially under-performing, heading into the summer tour struggling for form and then having to face the All Blacks with confidence low, admitting that they have lost momentum in their mission to become No1 in the world. That’s why this Six Nations is a huge test. It’s not by any means make or break, the 2019 edition in World Cup year is the big one, but I believe Jones will be bitterly disappointed if England do not achieve a Grand Slam, even with their injury problems.


CITYAM.COM

FRIDAY 26 JANUARY 2018

SPORT

31

FOOTBALL

BACK TOGETHER Carrillo links up with Pellegrino as Saints boost forward line

SOUTHAMPTON last night boosted their striking options with the signing of forward Guido Carrillo from defending French champions Monaco on a three-and-a-half-year deal. The 26-year-old has made 22 appearances for Monaco this term, but has started only twice in Ligue 1. He will again link up with Saints boss Mauricio Pellegrino, who he played under for Estudiantes in their homeland of Argentina.

FOOTBALL

City close in on club-record £57m deal for Athletic Bilbao’s Laporte ROSS MCLEAN @rossmcleanRMAC RUNAWAY Premier League leaders Manchester City are closing in on a club-record £57m deal for French defender Aymeric Laporte from La Liga outfit Athletic Bilbao. An agreement for the 23-year-old centre-half is yet to be finalised although City boss Pep Guardiola is hopeful of completing the transfer before the close of the window on Wednesday. Should City conclude negotiations and seal a move, Laporte would become the club’s most expensive player, eclipsing the £55m they paid for Kevin de

Bruyne in 2015. Laporte has scored 10 goals in 222 appearances for Bilbao since joining the Basque club at the age of 16, while he has also represented France 19 times at under-21 level during that time. The arrival of Laporte would boost Guardiola’s defensive options, with John Stones and Nicolas Otamendi a settled pairing, although the fitness of Vincent Kompany cannot be relied upon and Eliaquim Mangala is out of favour. West Brom skipper Jonny Evans remains an option for City, although much depends on whether Mangala leaves before the transfer window deadline.

Jones’s biggest test yet With England potentially missing 18 players for their opening match against Italy they are starting to look vulnerable – not necessarily for that game in Rome but the championship as a whole – but the saving grace is other teams are in the same boat. Italy, for me, are simply not a good side, France are all over the place and shrouded in controversy while there seems to be a lack of clarity in their decision-making, and Scotland don’t have a front row. Wales have injuries too and are early in the process of trying to change their style of play. That leaves Ireland without any problems as they are Jones could face similar injury woes at the World Cup

all fit and head coach Joe Schmidt knows how to win a game. It’s a big hurdle for England and indeed Jones, possibly the biggest of his career. He will be hugely frustrated at having to adapt his training sessions and being unable to instil the values and principles he would ideally like to. At the start of the season a Six Nations fixture list of Wales and Ireland at home and Italy, Scotland and France away would have screamed Grand Slam, but such thoughts have been overtaken by events. I back Jones to have the nous and experience to handle the problems, but I wouldn’t blame people if they were starting to pick Ireland as their favourites.


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TESTING TIMES Mounting injuries could be Jones’s biggest career hurdle PAGES 30-31

SPORT FOOTBALL

Pochettino aims rebuke at Wenger FRANK DALLERES

@frankdalleres TOTTENHAM manager Mauricio Pochettino has stoked the rivalry with Arsenal by rebuking opposite number Arsene Wenger for appearing to suggest Spurs get too much praise. Pochettino said Wenger had “made a mistake” in making unflattering comments on the performances of other clubs, adding that he should only “talk for himself”. In remarks widely interpreted as referring to Tottenham and Liverpool, Wenger told media this week: “You celebrate some teams who have not been in a final for 25 years.” “There’s no point to talk about another team,” said Pochettino, whose Spurs side finished above Arsenal in the Premier League last season and lead them this term. “Of course we receive praise. Football is not only to win trophies. It’s the circumstances of different clubs. He [Wenger] is and will always be one of the best managers in the world, I respect him, but I think he needs to talk for himself and for Arsenal. Everyone sometimes makes a mistake and for me he made a mistake to talk about us or a different team.” Wenger made the comments on Tuesday when arguing that his achievements in leading Arsenal to three FA Cups in four years had not garnered sufficient acclaim. On

TENNIS

Edmund out – but takes home £500,000 prize

Edmund lost in straight sets to Cilic in their semi-final clash

FRANK DALLERES @frankdalleres SIXTH seed Marin Cilic tipped Britain’s Kyle Edmund for a bright future after halting his fairytale run at the Australian Open. Cilic beat Edmund, who was bidding to become only the fourth British man to reach a grand slam final in the Open Era, 6-2, 7-6 (7-4), 6-2 in Melbourne. He will face Roger Federer or South Korean Hyeon Chung, who meet this morning, in Sunday’s final. Edmund, 23, struggled with a hip problem and appeared battle-weary from his breakthrough performance at a major tournament but departs Australia with his reputation enormously enhanced. He has also banked prize money of £497,000 – almost a third as much as he had previously earned in the rest of his career. “He is playing great tennis,” said Cilic, the 2014 US Open champion. “The last couple of years he’s improved a lot and started great this year. He had an extremely tough run to the semis, a couple of five-setters and a couple of four-setters. Definitely it left some scars on his body. I can feel that too, but definitely he’s got a bright future in the game and we’re going to be seeing him a lot.” Edmund, who was born in South Africa and moved to Yorkshire aged three, is still to reach his first final on the ATP Tour but will climb to a career-high position of around 25 when the rankings are updated on Monday. “It’s been a really good couple of weeks for me,” he said. “Obviously I’m disappointed right now, but I can be very happy with the way I’ve gone about things. I won some tough matches, beat good players.” World No1 Simona Halep will play Caroline Wozniacki in the women’s singles final on Saturday after the Romanian overcame Germany’s Angelique Kerber in a thriller. Halep eventually won 6-3, 4-6, 97 to set up the clash with Dane Wozniacki, in which both players will be bidding not only for their first grand slam title but also for top spot in the rankings.

Wednesday they beat Chelsea to reach the Carabao Cup final, where they face Manchester City next month. Tottenham’s most recent trophy came in 2008, when they won the League Cup, while they last won the FA Cup in 1991 and the league in 1961. But since Pochettino took charge in 2014 they have closed the gap on their north London neighbours in the topflight and last year finished second while the Gunners were fifth. Silverware has become a The Spurs boss said his team merited their praise

thorny topic for Spurs, however, who may struggle to retain their star players, such as England striker Harry Kane, and indeed Pochettino, who has been linked with Real Madrid, in the long term without tangible reward for their obvious improvement. Pochettino, meanwhile, has told his players to treat Saturday’s FA Cup fourth-round trip to League Two Newport County with all the gravity of a major European fixture – or risk entering the competition’s folklore as victims of a giant-killing. “Try to believe we’re going to play Real Madrid, Bayern Munich or Juventus in the Champions League,” he said. “If we’re not ready to compete, we’re going to struggle.” Newport’s pitch, which they share with two rugby teams, could prove a leveller. Manager Michael Flynn said: “I’m getting more confident as the week goes on.”

FOOTBALL

HORSE RACING

Moyes confirms West Ham are close to Racing hit by second horse securing loan move for Inter’s Mario mix-up in just six months FRANK DALLERES

ROSS MCLEAN @rossmcleanRMAC WEST Ham boss David Moyes has confirmed a loan move for Inter Milan midfielder Joao Mario is nearing completion and told suitors to up their bid if they wish to prise forward Andre Ayew from east London. Mario, who joined the Serie A outfit from Sporting Lisbon for £35m in 2016, is poised to become West Ham’s first signing of the January transfer window as Moyes bids to bolster his injury-hit squad. The Hammers’ woes have deepened in recent days after

forwards Marko Arnautovic and Manuel Lanzini were ruled out for the best part of four weeks, while hitman Andy Carroll is set to be sidelined for three months. Asked whether it was correct that Mario, who was part of Portugal’s Euro2016-winning side, was flying to London to finalise a deal, Moyes said: “Your sources are correct. It is a loan. We’ll be able to tell you more once it’s done.” Moyes also confirmed that West Ham have snubbed an offer, believed to have come from the 28year-old’s former club Swansea, for Ayew, who has scored six goals in all competitions this season.

Despite being adamant that he did not want to lose any of his players this month, the former Manchester United manager did leave the door ajar for a revised offer for the ex-Marseille frontman. “I never said we want anyone to go. If someone comes up we will look at it but as far as I’m concerned, no-one is going,” added Moyes. “I think there has been an offer [for Ayew] but we wouldn’t accept the current bid as it is.” West Ham, who are currently 11th in the top flight, travel to League One leaders Wigan Athletic tomorrow in the FA Cup fourth round.

@frankdalleres BRITISH racing chiefs have vowed to review procedures after the sport was hit by a second case of mistaken identity in the space of six months. Two of trainer Ivan Furtado’s horses ran in the wrong races at the Southwell meeting on 14 January. The mistake was not noticed at the time, despite all horses now being micro-chipped, and only emerged via an audit process because one of them had been randomly selected for a drug test. Scribner Creek finished third in a seven-furlong race, earning

punters who believed they had backed stablemate African Trader an each-way return. African Trader was seventh in the following race, for which Scribner Creek had been entered. The British Horseracing Authority (BHA) said there had been no suspicious betting activity and that it was satisfied that it had been an honest mistake. Furtado faces a disciplinary hearing. The mix-up followed a similar controversy at Yarmouth in July, which resulted in a £1,500 fine for trainer Charlie McBride. The BHA called the latest episode “simply unacceptable”, adding: “The priority now is to take whatever steps are appropriate.”

City A.M. (2018.01.26)  

City A.M. (2018.01.26)

City A.M. (2018.01.26)  

City A.M. (2018.01.26)

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