BUSINESS WITH PERSONALITY
THE POWER OF PROVOCATION WHEN ADVERTISERS DECIDE TO EMBRACE CONTROVERSY P22 MONDAY 10 SEPTEMBER 2018
BLUE ON BLUE: BORIS SPARKS TORY OUTRAGE
@SebMcCarthy THE TORY party was in a state of civil war last night after a series of Conservative MPs denounced Boris Johnson for his latest attack on the Prime Minister’s Brexit policy. The former foreign secretary, stung by newspaper coverage of the collapse of his marriage, claimed yesterday that Theresa May’s Brexit plan would put the UK constitution in a “suicide vest”. The jibe provoked a furious backlash among a number of senior party figures, laying bare the current internal splits the Tories face in the run-up to their annual party conference. Foreign Office minister Sir Alan Duncan, who served under Johnson, said that the comment was “one of the most disgusting moments in modern British politics”. Duncan added: “I’m sorry, but this is the political end of Boris Johnson. If it isn’t now, I will make sure it is later.”
THE BIG GAME LIVE EXPLORING KENYA’S CONSERVATION EFFORTS P24-25
Johnson has struggled to build support among the new generation of Tory MPs, highlighted by a tweet from rising star and foreign affairs committee chair Tom Tugendhat, who said: “A suicide bomber murdered many in the courtyard of my office in Helmand… Some need to grow up. Comparing the PM to that isn’t funny.” In an article for the Mail On Sunday, Johnson wrote that the Chequers deal, which would see the UK remain closely aligned to Brussels on goods and regulation, had opened
Johnson has come under fire from a number of Tory heavyweights the country to “perpetual political blackmail”. Johnson added: “We have wrapped a suicide vest around the British constitution – and handed the detonator to Michel Barnier. “It is a humiliation. We look like a seven-stone weakling being comically bent out of shape by a 500lb gorilla.” The latest comments from Johnson,
who resigned from his Cabinet post in July over Downing Street’s Chequers strategy, are likely to fuel further speculation around his leadership ambitions. They also come amid a frenzy of media speculation about Johnson’s private life, following the announcement on Friday that he has separated from his wife, Marina Wheeler, after 25 years of marriage. Another Foreign Office minister, Alistair Burt, also weighed in on the anger over Johnson’s comments, tweeting that there was “no justification for such an outrageous, inappropriate and hurtful analogy”. “If we don’t stop this extraordinary use of language over Brexit, our country might never heal. Again, I say, enough,” he added. The provocative remarks came at the end of a turbulent weekend for the former mayor of London, who was booed by a crowd of cricket fans at the Oval on Saturday. Home secretary Sajid Javid also expressed his frustration at Johnson’s actions, telling the BBC: “I think that there are much better ways to articulate your differences.”
SWEDEN IN DEADLOCK Early results show parties in dead heat
JAMES BOOTH @Jamesdbooth1 SWEDEN’S centre-left and centreright blocs were in a dead heat last night after an election in which the far-right Sweden Democrats were set to become the second-largest party in the historically liberal country. Partial results, with more than 80 per cent of districts counted, showed the ruling centre-left Social Democrats and Greens and their Left Party allies with 40.6 per cent of the vote, with the opposition centreright Alliance on 40.3 per cent last night as City A.M. went to print.
Social Democrat Prime Minister Stefan Lofven (pictured) late last night told a party rally he would not step down as PM, in spite of signs of a hung parliament, and called for cross-party cooperation. The Sweden Democrats, a nationalist party with roots in white supremacy, moved to 17.6 per cent from 12.9 per cent in the previous election – although this was a smaller vote share than some had expected. Forming a government in Sweden could take weeks of negotiations. £ CONTINUES ON P3
Ovo Energy entrepreneur reveals footage of electric ‘air taxi’ test flight JOSH MINES @Josh_Mines A STARTUP founded by energy boss Stephen Fitzpatrick has test flown an electric aircraft in a move that pits it against tech and engineering giants such as Uber and Rolls-Royce. The company, called Vertical Aerospace, successfully tested the
vertical-take-off aircraft in June. It says the model has been granted flight permission by the Civil Aviation Authority (CAA) and could be used as an alternative to shorthaul flights. Bristol-based Vertical, the brainchild of Ovo Energy chief exec Fitzpatrick, has been working on the project since 2016.
“We’ve learned a lot from Formula 1, both in terms of technology and pace of development,” said Fitzpatrick, who put millions of pounds into failed F1 team Manor Racing. “Aviation is now a major contributor to climate change and local air pollution... We want to decarbonise air travel and give
people the freedom to fly from their local neighbourhood directly to their destination.” Vertical faces stiff competition in the race to launch air taxi services. Uber hopes to kick-off services through its Uber Elevate project by 2023, while Rolls-Royce unveiled a concept for its own aircraft at the Farnborough Airshow in July.
FTSE 100▼ 7,277.70 -41.26 FTSE 250▼ 20,209.61 -73.88 DOW▼ 25,916.54 -79.33 NASDAQ▼ 7,902.54 -20.19 £/$▼ 1.292 -0.001 £/€▲ 1.118 +0.006 €/$▼ 1.155 -0.007
MONDAY 10 SEPTEMBER 2018
BIRTHDAY CELEBRATIONS North Korea marks 70th anniversary
THE CITY VIEW
Tory chaos could usher in Corbyn’s hard left
AKE a step back and consider the state of British politics. The Labour party is now firmly, perhaps irredeemably, in the grip of the hard left – from top to toe. Its leadership would subsidise what it doesn’t nationalise, while its membership revels in a new factionalism that puts loyalty to the dear leader above all else. Above, even, the very real fears of a Jewish community appalled by the antisemitism that has burst from the blogs and the fringes into the mainstream – encouraged or at least enabled by Jeremy Corbyn and his closest aides. This heady cocktail of socialism and racism is pretty much level-pegging with the Tory party in opinion polls. Conservatives might point at Labour MPs sitting opposite them in the Commons, taunting them over their current woes, but the next few weeks could rip the Tories apart and plunge the country into yet another political crisis. This is not hyperbole. As we all begin our working week, two serving government ministers have launched scathing attacks on Boris Johnson. What is most remarkable is that, until a few weeks ago, Johnson was their boss. Foreign office minister Alan Duncan vowed yesterday to “finish” Johnson’s political career. This is not normal. At least, it hasn’t been since the darkest days of the Blair/Brown feud. Duncan and others had declared themselves outraged at Johnson’s metaphorical reference to a suicide vest. If we assume our current crop of politicians are in fact capable of stomaching a metaphor it then becomes clear that the real source of their outrage is the prospect of Johnson becoming Prime Minister. A sizeable number of Tory MPs are so horrified by this notion that they overreact to every colourful outburst the former foreign secretary makes. Which brings us to the next few weeks, and the build-up to the Tory party conference. At this year’s gathering of the party faithful, Team Boris intend to lay siege to May’s territory – taunting her with rallies and, doubtless, more headline-grabbing language. Corbyn’s Labour party may be a frightening proposition to those of us who prefer market liberalism to the dead hand of the state, but they are preparing for government, as their upcoming conference will show. The Tories meanwhile are preparing for a bloodbath. One doesn’t know whether to laugh or cry. Brexit provides a soundtrack for this farce, and as we draw closer to the day when ‘selfgovernance’ is restored, we can but weep at the state of those who seek to govern us.
Follow us on Twitter @cityam FINANCIAL TIMES
EU READY TO GIVE BARNIER POWER TO DO BREXIT DEAL
The EU is preparing to give its Brexit negotiator new instructions to help close a deal with Britain, in a conciliatory move that will bolster Theresa May as she suffers attacks from Brexiters. An informal summit in Salzburg this month between the EU’s 27 remaining leaders is emerging as one of the most significant Brexit discussions since the bloc set its strategy. The meeting will discuss whether to issue additional guidance to Michel Barnier, the EU’s lead negotiator.
EUROPE SEEKS NEW MONEY LAUNDERING POWERS
Brussels will seek to toughen the
WHAT THE OTHER PAPERS SAY THIS MORNING
NORTH Korea celebrated the 70th anniversary of the pariah state’s founding yesterday with a military parade and a mass artistic and gymnastic display. Kim Jong Un (pictured inset, right), the communist state’s leader, watched the parade with China’s Li Zhanshu (pictured left), the powerful chairman of the standing committee of the national people’s congress.
House price growth to hit lowest levels since crash SEBASTIAN MCCARTHY
@SebMcCarthy LONDON house prices are set to drop by 0.7 per cent next year, marking the lowest annual rate of growth in the UK’s property market since the 2008 financial crisis. Big Four accountancy firm KPMG has projected that property prices in the capital will continue to fall until 2021 in a report out today that suggests the UK might be entering “a new normal” of more modest growth. According to KPMG’s UK quarterly economic outlook report, house price increases will be slower in almost every region over the next five years than in 2017, reaching their lowest annualised levels in roughly a decade. The only area which will see growth according to the projections is Scotland, where increasing investment and relatively modest valuations have
WARREN BUFFETT SEES HOT PROPERTY IN LONDON
The American investment giant that provides a vehicle for Warren Buffett to dispense his homespun financial wisdom is coming to Britain’s high streets. Berkshire Hathaway will say today that its property division has signed a franchise deal with Kay & Co, the London-based estate agent.
CUADRILLA SPENDS ALL CENTRICA’S FUNDS
powers of EU agencies, such as the European Banking Authority, to crack down on money laundering and terrorist financing in the wake of highprofile scandals.
Cuadrilla and its partners have burnt through at least £60m in their Lancashire shale gas operations before even beginning fracking. The shale gas explorer has tapped its shareholders for a further $6m (£4.6m) in recent months.
bolstered house prices. Yael Selfin, chief economist at KPMG UK, told City A.M.: “The reality is that fewer first-time buyers can now afford a property in London, and that is creating a definite downward pressure on the market.” Selfin added: “It’s going to be a very slow adjustment, and even with a mild decline in house prices in London, it will take time to go back to what was the historic average.” Recent Lonres research showed that expensive homes on the outskirts of central London have suffered some of the most significant price drops over the last 12 months, as buyers and sellers stay put amid growing political uncertainty. Marcus Dixon, head of research at Lonres, told City A.M. that “a combination of stamp duty and political uncertainty are both discouraging homeowners from buying and selling
THE DAILY TELEGRAPH
BA CUSTOMERS TO CLAIM FOR DATA ‘DISTRESS’
British Airways (BA) is facing a £500m group action lawsuit over its handling of last week’s cyber attack that accessed 382,000 customers’ personal data. SPG Law is launching an action over claims that BA was compensating customers for “direct financial losses” but not for the “inconvenience, distress and misuse of their private information”.
FTSE 100 RELX DITCHES NETHERLANDS FOR THE UK
Relx, the business information giant formed by the Anglo-Dutch merger of Reed and Elsevier, has scrapped its corporate structure in the Netherlands to unify under a single UK parent.
suburban prime properties.” House prices for prime properties in London’s Zone Two areas such as Fulham and Putney have tumbled 5.3 per cent and 3.9 per cent respectively in the last year. Today’s analysis is the latest in recent weeks to underline the growing evidence of a slowdown in the capital’s property market. Last week Nationwide’s house price index found that house price growth had continued to slow over the summer, with the building society’s chief economist, Robert Gardner, saying “subdued economic activity and ongoing pressure on household budgets” was likely to fuel a continued drop. In July KPMG’s rival accountancy firm PwC also predicted that London house price weakness would persist into 2019, falling as much as two per cent this year despite an expected rise in every other region of the UK.
THE WALL STREET JOURNAL
GOOGLE: EU PRIVACY RULES SHOULDN’T GO GLOBAL
Google will tomorrow appeal an order to extend the European Union’s “right to be forgotten” to its search engines across the globe, arguing before the EU’s top court that the order encourages countries to assert sovereignty beyond their borders.
VERIZON’S INTERNET BOSS IN TALKS TO LEAVE
Tim Armstrong, the leader of Verizon’s media and advertising business, is in talks to depart, according to people familiar with the matter, leaving unfinished the task of building the unit into a digital content giant which could challenge Facebook and Google.
MONDAY 10 SEPTEMBER 2018
to make firms set up share Store fears loom Labour scheme for workers post-election as Debenhams calls in auditors JAMES BOOTH
@SebMcCarthy EMBATTLED department store chain Debenhams has called in Big Four accountancy firm KPMG to help carry out desperate measures which could include a controversial restructuring process. Among the contingency options currently being weighed up by KPMG is a company voluntary arrangement (CVA), a restructuring option that can be used to close stores and renegotiate rents. KPMG’s arrival at the firm comes at a challenging time for Debenhams, which has announced a series of job cuts and seen its share price plummet by two-thirds since the beginning of January. The firm has also issued three profit warnings this year, in the wake of declining footfall and a consumer shift towards e-commerce which has hit a number of the UK’s major high street brands in the last 12 months. While British Retail Consortium figures found hot weather boosted the volume of high street shoppers over the summer months, the market
remains challenging for retailers, with consumer spending squeezed and margins pressured. Debenhams’ move to consider restructuring plans and call in KPMG comes as the department store giant faces growing pressure from suppliers, which fear that credit insurers such as Euler Hermes will continue to cut cover as uncertainty looms over the future of the department store. Earlier this summer Marks and Spencer revealed plans to close 100 shops, while House of Fraser was forced into administration in August before being bought by Sports Direct owner Mike Ashley. “Like all companies, Debenhams frequently works with different advisers on various projects in the normal course of business,” a spokesperson for the department store said yesterday in a statement. As part of the plan to raise extra much-needed cash and focus more on its core UK business, the firm is also looking to sell its Scandinavian department store chain, Magasin du Nord, for as much as £200m.
SOUPED UP Campbell Soup steps up chief executive search as hedge fund circles
CAMPBELL Soup’s board is drawing up a list of chief exec candidates, with chief operating officer Luca Mignini the top internal contender, as it seeks to fend off a proxy challenge from Daniel Loeb’s hedge fund, Third Point, Reuters reported.
Far right in Sweden capitalise on immigration and welfare fears CONTINUED FROM FRONT PAGE The mainstream parties have so far refused to co-operate with the Sweden Democrats. Nevertheless, Sweden Democrats leader Jimmie Akesson told a party rally: “We will gain huge influence over what happens in Sweden during the coming weeks, months and years.” The Sweden Democrats have capitalised on widespread worries about refugees and immigration. In 2015 163,000 asylum seekers moved to Sweden, the most in
Europe in relation to the country’s 10m population. The record number of asylum seekers in 2015 was also coupled with fears that Sweden’s welfare state was under pressure as waiting times for critical operations lengthened and shortages of teachers and doctors became acute. Akesson said the vote was a choice between immigration and welfare in what was a bad-tempered campaign. Voting in Stockholm, student Katze Collmar, 32, said the campaign had been “really unpleasant”.
@Jamesdbooth1 LABOUR would make all private companies with more than 250 employees set up “ownership funds”, giving workers a financial stake in their companies and a greater say in how they are run. Shadow chancellor John McDonnell revealed the plans in an interview with the Observer as
Labour gears up for a General Election which he predicted could happen within months. “What this will ensure is that in large companies, in addition to rewarding workers with wages, they will reward them with shares that will go into a pool that will allow them to have an ownership role,” he said. Among the ideas being looked at is one in which companies would
have to put a percentage of profits into an employee fund which would be used to build a shareholding in the company. The employees’ shares would be held in trust and would help give the workforce a say in how the company is run and managed. The workers would not be able to sell the shares, but any dividend payments could be used to boost their wage packets.
MONDAY 10 SEPTEMBER 2018
Report investigating TSB IT failure will be published before Christmas JESS CLARK @jclarkjourno A REPORT investigating an IT meltdown at TSB will be fast-tracked and published by the end of the year, it was revealed yesterday. Law firm Slaughter and May is investigating the botched computer systems migration that left customers unable to access online bank accounts in April.
The report will be divided into two sections and the first half, which will be published by Christmas, will focus on the migration. TSB’s management of the aftermath will be examined in the second section of the report, which is scheduled to be made public next year. Chief executive Paul Pester stepped down with a £1.7m payout last week as customers continued to
CRUNCH TIME Sports Direct investors to meet this week amid criticism of its bosses INVESTORS in retailer Sports Direct will meet this week amid criticism of its bosses by advisory groups. Glass Lewis, Pirc and ISS all advised shareholders to vote against the re-appointment of chief executive Mike Ashley and chair Keith Hellawell. A Sports Direct spokesperson said: “We hope that shareholders will continue to recognise the further positive progress that we have made over the last 12 months.”
face issues five months on. TSB executive chairman Richard Meddings said: “We have determined to make sure we can get information out as soon as practicable. “We are probably going to divide that in two essential chapters, so we are dividing the report into two elements. “That should enable us to produce the first part of that hopefully before the end of this year.”
Optimism sinks to lowest since 2017 election LOUIS ASHWORTH @Louis_Ashworth UK BUSINESS optimism has hit its lowest level since Prime Minister Theresa May called a snap General Election in 2017, as companies grow increasingly concerned over a lack of progress with Brexit negotiations. The optimism index from accountants BDO, to be published today, declined by 0.43 points in August to stand at 101.93, its lowest level since May 2017. Confidence in the services sector fell to its lowest level since March 2017. For the second month in a row, the BDO figures showed a fall in confidence – which measures how companies expect output to develop over the next three to six months – in the manufacturing sector, despite a rise in output. The drop in confidence, which landed hardest in the services industry, comes after the indicator suggested that output from the UK’s services sector, representing the majority of the economy, contracted for the first time in eight years in July.
BDO said the confidence decline was “indicative of the lack of political progress made on key economic issues, most notably the UK’s trading arrangements, as Brexit negotiations reach a critical phase.” The figures, a composite of data from closely followed surveys by the Bank of England, the Confederation of British Industry and data firm IHS Markit, come at a time when firms have been offered little clarity on how the UK’s trade relationship with the EU will function after 29 March 2019. The government has repeatedly warned that negotiations could still fall through, with trade defaulting to World Trade Organization terms, an outcome feared by most of business groups. Peter Hemington, a partner at BDO, said: “After more than two years since the UK voted to leave the EU, the lack of progress on what our future trading relationships will look like is now undermining business confidence and testing companies’ resilience.” Slowing economic growth across Europe may also have dented firms’ outlook, after a period of remarkable growth, BDO said.
MP warns vulnerable could be harmed by RBS branch closures JAMES BOOTH @Jamesdbooth1 VULNERABLE Royal Bank of Scotland (RBS) customers “must not be left behind” following the bank’s latest branch closures, Treasury Select Committee chair Nicky Morgan has warned. Following the bank’s announcement last week that it was closing 54 branches, with the loss of 258 jobs, Morgan said the cuts could cause “financial exclusion” for vulnerable customers such as the
disabled or the elderly. “Despite the growth of online banking, there will remain a group of customers, who want to use branch services. Such customers, who are often particularly vulnerable, will appear commercially less attractive to serve. But they must not be left behind,” Morgan told the Sunday Telegraph. She said she would raise her concerns with the Treasury and ensure ministers are “monitoring” the situation. RBS declined to comment.
MONDAY 10 SEPTEMBER 2018
finance minister claims radical Bell Pottinger Italy new policy moves will be ‘gradual’ faces Insolvency Service probe FRANCESCA LANDINI
@Josh_Mines SEVERAL former partners of folded PR firm Bell Pottinger are being investigated by the Insolvency Service. The company collapsed a year ago following a scandal over its work for the Indian Gupta family in South Africa, where it was accused of deliberately stoking racial tensions in the country. Letters have been sent to the partners telling them the investigation will home in on the case, which triggered the company’s collapse last year. After the investigation, the Insolvency Service will make a decision on whether civil proceedings can be launched against the disgraced communications company. While working for the Gupta family, Bell Pottinger led a campaign using fake social media accounts which stirred up racial tensions and provoked anger about “white monopoly capital” in order to divert attention from the family and their strong links to South African President Jacob
Zuma through their firm Oakbay Investments. Following the scandal, Bell Pottinger’s chief exec James Henderson was forced to resign, before the company became only the second City firm to be chucked out of industry trade body the Public Relations and Communications Association (PRCA). Shortly after that, the company lost a number of its most important clients due to the reputational damage the scandal had caused, before it was eventually put into administration in September 2017 following a failed fire sale. Co-founder of the company and former spin doctor for Margaret Thatcher Lord Bell told the Sunday Times he was “not surprised” the Insolvency Service had launched an investigation into the firm. “I think there is a lot of wrongdoing by people at Bell Pottinger and I am not surprised that it is being investigated,” he said. “They did things that were unspeakable. They did things to me that were unspeakable and they did things to others that were unspeakable.”
The first cartoon featuring Peppa Pig was aired on TV in 2004
Investors not happy as Peppa Pig boss brings home bacon SEBASTIAN MCCARTHY @SebMcCarthy ENTERTAINMENT One, the company behind Peppa Pig, could be the latest victim of a shareholder revolt in a row over executive pay this week. Influential shareholder advisory firms Glass Lewis and ISS have recommended voting against the firm’s remuneration report on Thursday, a year after nearly half of the company’s investors voted against a £7.6m bonus for Darren Throop, the chief executive of
Entertainment One. Throop, who is set to see his basic salary climb by seven per cent this year to $1.2m (£993,000), has come under pressure in the City for steep pay rises in the last three years. The potential revolt comes in the wake of several high-profile disputes over bosses pocketing large bonuses. Entertainment One, which is listed on the FTSE 250, was included on the Investment Association’s public register of companies which have experienced significant investor revolts.
ITALIAN bond yields will fall as the new government starts to implement its policies to boast the economy with prudent fiscal measures, economy minister Giovanni Tria said yesterday. Speaking at a business conference on the shores of Lake Como, Tria said some of the coalition’s more radical budget plans would only be introduced “gradually”, reassuring
investors that EU fiscal rules would be respected. “As the government puts words into actions, the (bond yield) spread will return to more normal levels,” Tria said. Investors heavily sold off Italian bonds over the summer, pushing up yields, on concerns the governing coalition’s fiscal plans would add to the country’s already huge debt pile. However, the gap between Italian
and German bond yields fell almost 50 basis points at the end of last week after Italy’s two deputy prime ministers softened their previous rhetoric and said the coalition would respect EU parameters in next year’s budget. Tria said the government would focus on stimulating the economy with the aim of halving by next year its growth gap with the rest of the Reuters Eurozone.
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MONDAY 10 SEPTEMBER 2018
Retail footfall drop hits high street JESS CLARK @jclarkjourno THE SUMMER heatwave and food price inflation halted three months of retail footfall growth on the high street in August, new figures show. Overall retail footfall dropped by 1.6 per cent on the previous year, with the sharper decline due to rising food inflation, which left shoppers with less money for non-essential items, the
British Retail Consortium (BRC) data will reveal today. The high street saw a decline of two per cent, with the steepest falls in the east, south west and the east Midlands. Northern Ireland was the only region to show growth, at 1.4 per cent. August was the 17th month of consecutive decline for shopping centres, where footfall fell at a decelerated rate of 2.4 per cent last month. Springboard marketing and insights
director Diane Wehrle said: “The drop in footfall of 1.6 per cent in August is the worst result since April. “Given the sweltering temperatures during what has been the hottest summer on record, it is not surprising that visits to shopping destinations declined further as consumers made the most of the weather elsewhere.” Retail parks performed better than the high street nationwide, but struggled in London and the north.
Old Mutual set to launch new £200m float
The British high street saw a two per cent drop in footfall in spite of summer sun
LAUNCHING 15TH SEPTEMBER 2018
LOUIS ASHWORTH @Louis_Ashworth ASSET manager Old Mutual Global Investors (OMGI) is preparing to raise £200m by floating a new investment fund aimed at private companies. The company has never previously formed a vehicle aimed at investing in unquoted firms. It is expected to announce the fund, called the Merian Chrysalis Investment Company, this week. Its portfolio is expected to consist of up to 15 firms, and it will be run by Richard Watts and Nick Williamson. Watts is noted for focusing on mid-tier stocks, while Williamson specialises in small companies. OMGI manages around £7bn in assets across its small and mid-cap desks, according to the Sunday Times. The firm, run by Richard Buxton, is set to rebrand shortly as Merian Global Investors, following a £583m management buyout by private equity firm TA Associates, which was led by Buxton. It was previously owned by Quilter, which was itself formerly known as Old Mutual Wealth. Quilter listed as a standalone company in June, after leaving parent Old Mutual. Speaking at the time of its buyout, Buxton said: “With the backing of TA Associates, I have every confidence that we will grow substantially from here. We are now preparing for the next big development: renaming the business later in the year.” He added: “As ever, our priority remains running distinctive, genuinely active funds. In my view, volatility is set to make a comeback as central banks end the extraordinary monetary policy experiment of the last decade; we are committed to helping clients navigate this unprecedented market environment.” OMGI declined to comment.
Asian banking ascendent after financial crisis LOUIS ASHWORTH
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@Louis_Ashworth THE TOTAL assets held by Asian banks have grown nearly six-fold since the financial crisis, as Europe increasingly diminishes in the global banking landscape. The rise of Asian banks, particularly those in Japan and China, is underpinned by an overall asset expansion from $4 trillion (£3.1 trillion) to $23 trillion, analysis by law firm Linklaters showed. Michael Kent, global head of finance and projects at Linklaters, said: “Ten years on from the administration of Lehmans, the global banking industry is unrecognisable. “Banks across the world have seen an unprecedented wave of regulation hit them and some markets have fared better than others.” As Asia’s banks have flourished, Europe’s have shrunk: over the decade from the beginning of the crash in 2007 until last year, European bank assets fell dramatically – reduced by 52 per cent, to $13.3 trillion, against a backdrop of tougher laws. Next Saturday will mark the 10-year anniversary of the collapse of global financial services firm Lehman Brothers, which filed for bankruptcy after becoming swamped in the subprime mortgage crisis, becoming one of the biggest victims of the global financial crisis. Linklaters pinned the change in part on change to regulation, which has resulted in banks in Europe being forced to hold a greater amount of their assets as a capital buffer, up from 3.4 per cent in 2008 to 5.5 per cent last year. “The regulatory response around the world was significant,” said Kent. “In Europe more so than elsewhere, regulators moved from a light-touch model to a far more rigorous system, clamping down on risky banking practices and strengthening banking standards.”
Aston Martin to hire City veteran for float CALLUM KEOWN
Luxury car maker Aston Martin reported the highest sales in its history last year
@CallumKeown1 FORMER Coca-Cola executive and Royal Bank of Scotland director Penny Hughes has been lined up by Aston Martin to lead its £5bn float on the London Stock Exchange. Hughes, who has also been a director at Vodafone, Morrisons and Reuters Group, will become the first
female chair of a British car maker, according to Sky News. The luxury car maker, favoured by James Bond in the film series, last month announced its plan to list on the London Stock Exchange later this year. It could make a formal announcement of its intention to float next week and reveal Hughes’ appointment in doing so. The company is expected to be
valued at around £5bn at the initial public offering. The British businesswoman, who was previously the chair of the remuneration committee at RBS, currently chairs The Gym Group and IQ Student Accommodation. Sky News reported that while Hughes had not yet formally signed up to the role, she was expected to do so imminently.
M I R R O R L E S S R E I N V E N T E D S E E
T H E
F U T U R E
D E T A I L
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MONDAY 10 SEPTEMBER 2018
private equity arm invests Cyborg dreams: Lloyds £25m in energy comparison firm AI brain plug-in coming says Musk JOSH MINES
@Louis_Ashworth TESLA and SpaceX chief executive Elon Musk has claimed he is just a “few months” from a major announcement about a device allowing the fusion of the human brain and artificial intelligence (AI). The eccentric billionaire, who has been the source of a host of controversies over the past few months, said his Neuralink project would produce “superhuman cognition” and that it would make a major announcement soon. “I think [Neuralink will] have something interest-
ing to announce in a few months that’s at least an order of magnitude better than anything else, probably better than anyone thinks is possible,” he said in a live interview on Friday, during which he smoked marijuana and drank whiskey. Tesla’s stocks crashed by 10 per cent on Friday after Musk’s interview, on a podcast hosted by comedian Joe Rogan, was released. Two of the car maker’s senior executives quit the company in the aftermath of its broadcast – including head of accounting Dave Morton, who had joined just last month.
@Josh_Mines LLOYDS Bank’s private equity arm LDC will today announce it has invested £25m into energy comparison firm Love Energy Savings. The secondary buyout of the business is expected to accelerate its growth, and marks a partial exit for NVM Private Equity, which first
backed the comparison site in September 2015. Bolton-based Love Energy, which was set up in 2007, specialises in comparing business energy prices by connecting small- and mediumsized firms with the best tariffs to suit their gas and electricity needs. The company boasts over 40,000 customers, last year reporting revenues of £17.4m, up from the £13.2m it brought in over the
course of 2016. Love Energy also announced the appointment of former Uswitch boss Steve Weller to the board as non-executive director. LDC’s investment will be put into the expansion of the corporate services division, Love Energy Solutions, as well as fund its proprietary technology platforms and diversification into the water, telecoms and insurance markets.
Billionaire Elon Musk has caused controversy
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House of Fraser probe calls escalate SEBASTIAN MCCARTHY @SebMcCarthy MIKE Ashley’s calls for an insolvency investigation into House of Fraser’s former directors were backed by one of the department store’s major suppliers yesterday. Tea Terrace boss Ehab Shouly told the Sunday Times that House of Fraser’s erstwhile bosses withheld vital information about the company
prior to its collapse last month. One source close to the matter told City A.M. a number of similar suppliers support the new owner’s calls for an investigation. Both the former chairman Frank Slevin and former chief executive Alex Williamson have faced intense pressure over the debts that totalled more than £880m when the firm went bust. The comments come a week after Mike Ashley, who bought House of
Fraser out of administration for £90m, said that the demise of the company should be “fully investigated”. XPO Logistics, which operates two warehouses that supply House of Fraser, has been holding crisis talks with Ashley following the buyout, amid disputes over debt left behind by the previous owners, with Ashley previously saying: “I believe that XPO and others were totally misled by Frank Slevin and the House of Fraser board.”
House of Fraser was in debt to a number of major fashion brands when it collapsed
Cold-call firms face £500k fines without consent
Uncertainty leaves hiring at a ‘standstill’
@CallumKeown1 COMPANIES cold-calling customers without their consent could be fined £500,000 after new measures came into force over the weekend. Previously, consumers had to opt out of receiving calls by registering with the free Telephone Preference Service or withdraw their consent during the call. But the new powers, which came into force on Saturday, will put the onus on the callers to make sure they have the recipient’s consent before calling. If they call up consumers without their consent, they could be fined up to £500,000. The Financial Conduct Authority said approximately 2.7bn unsolicited calls, texts and emails were made to Britons in the past year for claims for compensation alone, including calls about accidents and mis-sold payment protection insurance (PPI). Digital minister Margot James said: “Today we are one step closer to ending the menace of nuisance calls. “Our new laws mean people will now have to give consent to receive calls and have the power to choose where they seek compensation for personal injury claims or mis-sold payment protection insurance.” She added: “This is a big boost for the Information Commissioner’s Office (ICO) and will help them crack down on the cold-call sharks.” Consumers have been urged to report any potential breaches to the ICO as part of the government crackdown. People can still opt in to be contacted by claims companies if they wish. Andy Curry, the enforcement group manager at the ICO, said: “This amendment to the Privacy and Electronic Communications Regulations will increase our ability to take action against those companies who deliberately flout the law and cause real upset and harm.”
@jclarkjourno POST-BREXIT recruitment is “at a standstill” as businesses do not have enough information to draw up plans, according to new data published today. More than half of UK businesses said they cannot make post-Brexit recruitment strategy decisions based on the information currently available, research by staffing agency Adecco and human resources body the Chartered Institute of Personnel and Development found. Their labour market outlook report said 44 per cent of firms have not yet taken any action related to the workforce, and only 29 per cent are confident about the amount of information they have. Adecco Group UK and Ireland head Alex Fleming said: “Our tracker shows that post-Brexit recruitment planning is coming to a standstill because businesses don’t have enough information to make informed plans. “It is still yet to be seen whether the government’s recent Brexit strategy white paper will create an uplift in certainty. “We suggest that businesses take the initiative now, and start planning for a variety of Brexit outcomes.” London was the third most confident region in terms of planning for Brexit, with 33 per cent of businesses in the capital, indicating that they have enough information to prepare for leaving the European Union. Organisations in the Midlands had the most confidence overall, at 35 per cent, followed by the south of England with 34 per cent. “Those organisations that openly talk about Brexit to their workforce are better placed to understand the make-up of their teams and areas that might be of concern after the UK leaves the EU,” Fleming added.
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John Lewis may take £50m hit to its profits JAMES BOOTH
John Lewis will report its results this week after a summer of fierce competition
@Jamesdbooth1 RETAILER the John Lewis Partnership may take a £50m hit to profits after slashing prices this summer in the wake of the collapse of House of Fraser. The Waitrose-owner was forced to cut prices after department chain House of Fraser collapsed into
administration, leading to mass stock clearance. John Lewis, which is reporting its half-year financial results this week, would be “lucky to scrape a profit”, retail analyst Nick Bubb told the Mail on Sunday. The retailer had previously said that profit for the six months to July would be “close to zero”. Bubb estimated the impact of pricecutting on John Lewis’s profit could
reach £20m. Bubb said a warm autumn and John Lewis’s policy of matching its competitor’s prices could more than double the impact of the heavy discounting. “An Indian summer and House of Fraser stock clearance could easily lead to even more discounting damage and, for better or worse, they are totally wedded to their never knowingly undersold promise,” he said.
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MONDAY 10 SEPTEMBER 2018
Trump tells iPhone maker to build in America to avoid Chinese tariffs CHRISTOPHER BING US PRESIDENT Trump tweeted on Saturday that Apple should make products inside the United States if it wants to avoid tariffs on Chinese imports. The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a “wide range” of Apple products, including its Watch, but it
did not mention the iPhone. Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267bn (£207bn) worth of Chinese goods. Trump tweeted that “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your
products in the United States instead of China. Start building new plants now.” Apple declined to comment. The technology sector is among the biggest potential losers as tariffs would make imported computer parts more expensive. “The burden of the proposed tariffs will fall much more heavily on the United States than on China,” Apple said in Reuters its letter.
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Apple to lift lid on new products at extravaganza EMILY NICOLLE @emilyjnicolle APPLE is set to announce a whole new slate of products on Wednesday, including updates to the iPhone, iPad, Apple Watch and Mac lines, amid intense speculation on what will be unveiled on the Steve Jobs Theatre stage. The Californian firm is slated to release three new iPhone models to appease users on all sides, with updates expected in top-end models as well as its more affordable ranges. Recent reports have speculated that the iPhone X will be getting an update in Apple’s so-called S year in the form of a 5.8-inch iPhone XS, and the 6.5inch XS Plus (or Max, according to a leak supposedly from Apple itself). While the regular iPad and iPad Mini ranges might be staying still for now, the rumour mill has churned out images and information leaks of a 2018 update to the iPad Pro. However, the new 11inch and 12.9-inch iPad Pro could launch by the end of the year, meaning they may not make it into the September event. As the first re-designed
Apple Watch, analysts are all but certain that Apple will be releasing a Series 4 this September, due to regulatory filing requirements in Europe for encrypted devices. Images leaked from Apple by 9to5Mac show the Apple Watch will finally get a screen that is nearly edge-toedge, and lose some extra bezel weight, with 15 per cent larger displays rumoured for both sizes of the watch. In a long-overdue turn of events, Apple is rumoured to be providing an update to its 2014 Mac Mini this September. This is the version of the Mac computer base that doesn’t come with a screen, keyboard or mouse and starts at £500. If you believe the analysts, Apple will be targeting the professional market with a refresh to add higher specs and, potentially, higher prices. Finally, we could be getting the release of Apple’s long-awaited Airpower this year, according to Barclays analysts. The multi-device charging pad was flaunted at last September’s event, but never appeared. The firm may also unveil some wireless-charging supported Airpod headphones, too.
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MONDAY 10 SEPTEMBER 2018
N THE Prahova county of Romania, just outside Bucharest, there is a town called Urlati. From the verb “urla”, to howl, its name could be translated as Screamtown. While there is some debate about how this came to be, one story goes that the townsfolk got so drunk all the time that you could hear their intoxicated shouts from the surrounding area. It sounds unlikely, but when you arrive in the town it becomes a little more believable. The place itself is intoxicating, heavy with the fruits of the earth at every turn. Plums grow at the side of every road and the fields are teeming with wild herbs and overgrown brambles. In the kind of humid air that always threatens a thunderstorm, it smells delicious. This was what Mihnea Vasilache wanted to bottle up when he looked into buying a vineyard here. Romania is not short of vineyards, thanks to the collectivist agriculture policies enforced under the former Communist regime. But the hangover from this period of high production for the common good has resulted in Western connoisseurs perceiving Romanian wine as massproduced and inelegant. “From the taste of the fruit to the taste in the bottle, there seemed to be a disconnect,” says Vasilache, an investor. “The wines all tasted the same and the reds were too oaked and too alcoholic.” Dagon Clan is Vasilache’s answer to this problem. Part of a new generation of small producers in the country, he wants to show the wine world what Romania can produce. It is a good time to do it. British drinkers in particular have developed a taste for Eastern European wines in the
THE BEST FROM BUCHAREST Alys Key visits Romania to meet a new generation of fine wine producers past couple of years, in part due to the price. You can get a decent bottle from Slovenia or Hungary for less than the equivalent French or Italian produce. With some worried Brexit could impact the cost of importing wine to the UK, good quality alternatives with a smaller price tag are looking more and more appealing. Meanwhile millennials are driving an interest in artisan alcohol, as the craft beer boom and ginnaissance have both shown. This suits Dagon’s wines, which are fresh and complex – not what people
typically associate with Dealu Mare, Romania’s southern wine region. This is at least in part down to the influence of Mark Haisma, a winemaker with his own business in Burgundy. He came on board to advise the Dagon team after Vasilache introduced him to the area. “My direction was to be making wines that were very focused, very energy-driven, reflecting what I saw as an amazing potential,” he explains. “I wanted to throw the rulebook out and not be fixed with a traditional sense of winemaking.”
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The Dagon wines combine the region’s indigenous grapes Feteasca Alba and Feteasca Neagra with more well-known varieties. The white wine, made from the Alba and Sauvignon Blanc, recalls the wildflowers and herbs which surround the vineyard. The combination of Neagra and Pinot Noir in the red wine recalls the branches heavy with fruit around every corner. This is wine that expresses the patch of earth it came from. The pinnacle is the first wine using only grapes from Dagon’s own estate: Sandridge. Made from vines grown in a
sandy strip of land, this is a full-bodied red that packs a punch without fully smacking you in the face. Of course, none of this is much good if customers are averse to trying it. This is where Richard Ellison of Wanderlust Wines comes in. His wine club is taking on the challenge of getting lesser-known bottles into the hands of the UK’s adventurous drinkers. “One of the barriers is you want to imagine the context it’s grown in,” he says. “If you’re drinking Bordeaux you think of the big chateau. If you’re drinking Provence Rose you think of the south of France with the boats and the weather and the beach. People drink Romanian wine and they don’t have that picture in their head.” His solution to this is a subscription “discovery” box, showcasing sustainable wines made by small producers. He also hosts tasting events which give new drinkers an idea of the story behind the wine. “People love it,” he says. “They go mad for it.” As more enthusiasts venture into Romanian wine, more producers are emerging. EU funding has also been poured into the country’s agriculture. “There’s been an explosion,” says Vasilache. “You wouldn’t recognise the Romanian wine scene now compared to what it was 10 years ago”. During my trip I sample more wines by producers like Gramma, 1000 de Chipuri and Crama Basilescu. Each has its own distinct identity and taste, reflecting the diversity of this fascinating emerging market. Given the length of time needed to fully realise the full potential of a wine, it could be a transformation of which we have still only seen the first fruits.
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MONDAY 10 SEPTEMBER 2018
Hotel tycoon will take on Heathrow LOUIS ASHWORTH @Louis_Ashworth THE HOTEL tycoon behind an audacious bid to build and operate Heathrow’s third runway plans to put his money where his mouth is, challenging the airport’s operator for control of expansion plans. Surinder Arora has confirmed he intends to launch a formal bid to build a new terminal and runway at the
airport, the busiest in Europe, to compete against the proposals put forward by Heathrow Airport Limited (HAL), the company which manages Heathrow overall. Arora’s hotel group must prepare a development consent order (DCO), to compete with one produced by HAL. The proposals, which will likely cost in the hundreds of millions of pounds to make, will then both be considered for approval by planning authorities.
He said the plans, if successful, would boost competition and drive down costs for customers. “We’ve always said right from the start that we’re not just here making noises,” Arora told City A.M. “Our agenda has been very clear from day one, which is to break up [HAL]’s monopoly and create competition.” HAL claimed that Arora’s plans “lack a basic understanding of airport operations”.
Family-owned firms come out on top of rivals
Surinder Arora’s plans for a new terminal and runway will cost a total of £14.4bn
DALMENY AVEN UE I S L I N G T O N
New laws aim to open invoice finance access
@jclarkjourno FAMILY-OWNED businesses outperform their peers across all regions and sectors, and deliver stronger revenue growth and higher profitability, according to new data published today. A longer-term outlook, less of a reliance on external funding and more investment in research and development are all contributing factors to the success of family- or founder-owned firms, Credit Suisse research said. The study also found that the voting structure of the firm was unrelated to shareholder returns, and said that “investor concern in this area is misplaced.” Older businesses performed worse than companies in their first or second generation, the research found. Credit Suisse head analyst Eugene Klerk said: “This year we find familyowned businesses are continuing to outperform their peers in every region, every sector, whatever their size. “We believe this is down to the longer-term outlook of family-owned businesses relying less on external funding and investing more in research and development. “Our research on a global scale suggests family-owned companies with special voting right structures perform relatively in line with those with ordinary shares, contrary to the fears expressed by many investors.” Regional chief investment officer at Credit Suisse Michael O’Sullivan added: “Family-owned businesses make up a significant share across many parts of the world but are a relatively untouched area in terms of research and analytics. “They have better revenue and margin growth, and have less risky balance sheets which make them ideal targets for investors.”
@Louis_Ashworth THE GOVERNMENT has put forward new laws aimed at allowing small businesses to access invoice finance, which it says will provide a £1bn longterm boost to the economy. Proposals put forward as part of the government’s industrial strategy initiative by small business minister Kelly Tolhurst will allow companies to raise money from unpaid invoices – meaning they can assign their right to be paid to a lender in exchange for funds. Tolhurst said: “These new laws will give small businesses more access to the finance they need to succeed and will help ensure they have a level playing field from which to set fair contracts with the businesses they supply.” The laws are designed to combat restrictive contracts imposed by larger businesses, which can prevent smaller suppliers from assigning who has the right to receive the proceeds from an invoice. Without an ability to re-assign who the invoice will be paid to, companies cannot typically use them to gain financing. The changes are intended to come into effect at the end of the year, at which point restrictions on invoice finance will become null. The estimated value of the stock of invoice finance to small and medium businesses is approximately £9.5bn, the government claims. Mike Cherry, national chairman of the Federation of Small Businesses, said the move was “welcome”. “Some small firms – especially exporters – want this extra potential choice open to them,” he said. “Ultimately, though, we have to tackle the underlying issue that’s being indirectly addressed here. The UK’s £1bn late-payment crisis sends thousands of firms to the wall every year. It needs to end.”
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Games industry soars on mobile growth JAMES BOOTH
Games such as Angry Birds Action! have helped drive the UK market
@Jamesdbooth1 THE UK’S computer games industry grew by a third in the last year to revenue of £697m, according to new research published today. Revenue grew 34 per cent last year to £697m, from £522m the previous year, research from online business finance platform Funding Options
showed. The growth has been driven by the popularity of mobile-based games such as Angry Birds Action!, Transformers Earth Wars and Golf Clash, which were all developed by UK-based companies, Funding Options said. It has also been stimulated by growing demand for games, with UK consumers spending 12 per cent more on games in 2017 to hit £5bn.
Funding Options founder and CEO Conrad Ford said: “With a seemingly insatiable consumer appetite for cutting-edge, interactive games, there is no reason why the industry’s success cannot continue. “Provided the UK’s gaming industry remains at the forefront of gaming technology and able to pivot to new platforms as they emerge then growth should continue.”
MONDAY 10 SEPTEMBER 2018
Jack Ma to unveil succession plan after reports Alibaba boss to retire CALLUM KEOWN @CallumKeown1 ONE OF China’s richest men, Jack Ma, will unveil a succession strategy today following reports he is preparing to retire from internet giant Alibaba. Ma, who co-founded the Chinese tech behemoth in 1999, told the New York Times he planned to retire and focus on philanthropy in education. The e-commerce empire, with a market value of more than $400bn (£309bn), covers a range of industries,
including online retail, cloud computing, artificial intelligence and logistics. Ma is expected to remain on Alibaba’s board of directors. The South China Morning Post reported that Ma would remain as executive chairman, citing a company spokesman, but that a succession strategy would be unveiled today – his 54th birthday. The company bolstered its position as China’s largest online retailer last month, revealing revenue growth of
61 per cent for the three months ending 30 June. Staying apace with its US rival Amazon’s cloud growth, Alibaba posted a 93 per cent increase in cloud revenue to 4.7bn yuan (£530m), placing its attention on big data analytics and artificial intelligence. Meanwhile, its digital and media arm posted a 46 per cent rise in revenue to 6bn yuan. It now plans to merge its food delivery acquisition, Ele.me, with its own replica service, Koubei.
Former English teacher Jack Ma founded Alibaba 20 years ago
Fifth of FTSE 350 still don’t report pension deficit
@Josh_Mines ONE IN five of the UK’s 350 biggest firms are still are not disclosing the funding position or surplus of their defined benefit (DB) pension scheme. Though that represents a major drop from 2016, when the figure was over two-thirds (67 per cent), the figures from Lincoln Pensions highlight the continuing issue with transparency around company pension schemes. Lincoln’s third Give us a Clue report, released today, said over a quarter of FTSE 350 companies did not disclose the length of their recovery plan, down from 54 per cent two years ago. The findings also showed none of the FTSE 350 disclosed their scheme’s funding position on any alternative valuation basis, meaning stakeholders are not given a full picture of the size of a company’s pension deficit. Richard Farr, managing director of Lincoln Pensions, said disasters such as BHS and Carillion could have been identified earlier if there had been greater transparency in the companies’ accounts. He said: “BHS was seen as the slow
lingering death of a faded retail formula, whereas, Carillion was seen as the new face of government outsourcing. “We believe that many of the issues associated with cases of this nature could have been identified much earlier through greater transparency in the accounts. “DB pension schemes are often one of, if not, the largest obligations for a corporate sponsor. While there have been significant improvements made in basic disclosures over the past 18 months, we believe that a continued push is absolutely necessary.” BHS’s collapse in 2016 shone a light on the devastating impacts of large pension black holes, as it left behind a £571m pension deficit after shutting its doors. Carillion’s demise cost the government-run Pension Protection Fund £800m to cover the liabilities of its 13 UK schemes. Earlier this month, figures from Mercer showed the DB pension scheme deficits of FTSE 350 companies had increased by £2bn in August to £34bn – the second month in a row where it had risen – although this still represents the total deficit being cut in half since the start of 2018.
Uber opponent Careem starts Sudan service ALEXANDER CORNWELL
Microsoft founder Bill Gates has joined a £4.5m funding round for Wagestream
Amazon and Microsoft founders back London’s payday startup JESS CLARK @jclarkjourno THE FOUNDERS of Amazon and Microsoft have backed a London startup that allows workers to access their wages before payday. “Get-paid-as-you-go” platform Wagestream has received £4.5m of funding from supporters including technology billionaires Jeff Bezos and Bill Gates, it revealed yesterday. Wagestream aims to end the “payday poverty cycle” by offering an alternative to overdrafts, credit card
debt and payday loans. Other investors include boutique venture capital firm QED Investors, the London Mayor’s Co-Investment Fund, and the Fair by Design fund. Co-founder Peter Briffett said: “The poverty premium is real. Lowerincome workers can often pay more than everyone else, despite struggling to make ends meet. “At Wagestream we give people access to their earned income when they need it, without the need for employers to alter their usual payroll frequency.”
MIDDLE Eastern ride-hailing firm Careem said yesterday it has started a service in Sudan, making it one of few international companies to enter the country since the US lifted economic sanctions last year. Sudan is grappling with an economic crisis as a foreign currency shortage and an expensive black market for dollars weaken its ability to import and push up prices. Careem, which said its services were now available in Sudan’s capital, Khartoum, has hired 10 Sudanese employees and signed up hundreds of drivers to its app to launch operations. The company expects to have as many as 30 employees in Sudan and be present in at least one other city in the northeast African country by the end of the year. “My goal and aim is to cover as many (cities) as possible in the next one or two years,” said Careem’s managing director for emerging markets, Ibrahim Manna. Sudan has the potential to be one of Careem’s biggest markets in terms of number of trips taken due to the population size and demand for transport, he added. Careem will compete against several local ride-hailing apps, such as Tirhal, but Uber does not Reuters operate in Sudan.
Skills shortages to hold back new homes say small housebuilders LOUIS ASHWORTH
Construction companies worry Brexit could make skills shortages worse
@Louis_Ashworth THE UK’S largest construction trade association has warned of an impending skills shortage that will hurt housing delivery and slow down new builds. Research by the Federation of Master Builders (FMB) based on an annual survey of small and medium-
sized (SME) housebuilders found that 44 per cent said a shortage of skilled workers was a “major barrier” to their ability to build new homes – up two per cent on last year. Asked to look ahead, firms said that a lack of skilled workers was more likely to be a barrier to construction than issues with funding building. Brian Berry, the FMB’s chief
executive, said: “Given that the UK will leave the EU in less than six months, housebuilders are understandably concerned that skills shortages could worsen and choke housing delivery.” The survey, based on 116 responses from SME firms, found that a lack of available and viable land was the mostly commonly cited barrier to construction.
MONDAY 10 SEPTEMBER 2018
CITY DASHBOARD LONDON REPORT
FTSE 100 drops on trade fears as sterling rises
HE UK’S blue-chip index fell at the end of last week as investors awaited news on whether the United States would impose new tariffs on Chinese imports, while a data breach at British Airways triggered a fall in its owner’s shares. The FTSE 100 fell 0.6 per cent at 7,277.70 points, accelerating losses in afternoon trading as the pound rose after EU negotiator Michel Barnier said the bloc was open to discussing other “backstops” on the Brexit issue. Later in the session White House economic adviser Larry Kudlow told CNBC that the United States continued to talk with China about a number of trade issues but added that so far China has not met US requests. The FTSE ended at a fresh fivemonth low, down more than two per cent on the week. Shares in British Airways’ parent International Airlines Group fell 1.4 per cent after the airline reported the theft of financial and personal data of potentially hundreds of thousands of customers. Among mid-caps, pub operator
Greene King surged 7.5 per cent after reporting a boost in sales thanks to exceptionally warm weather and the football World Cup. The company, which owns ale brands such as Greene King IPA, Old Speckled Hen and Abbot Ale, said it sold 3.7m pints of beer during England’s seven World Cup matches. Shares in Ashmore rose 1.4 per cent after the emerging markets asset manager published full-year results. UK-focused oil company Enquest fell more than Greene King pubs enjoyed a boost from the football World Cup 13 per cent after announcing plans for a rights issue to finance acquisition of an oilfield from BP. Online retail trading platform Plus500 lost 7.3 per cent to 1,490p after Playtech said it had sold its entire 10 per cent shareholding for about £176m, equating to 15.5p per share. Fashion retailer JD Sports, heavy equipment rental firm Ashtead, housebuilder Galliford Try and the Wetherspoon’s pub chain all report earnings this week.
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Summer may be now (just about) behind us, but for many commuters memories of chaos on the UK’s railways still linger. Go-Ahead is one of the companies to have been affected by the timetable catastrophe, as its GTR franchise, which oversees Southern, was hit by a slew of operational difficulties. Reiterating its “hold” rating and setting a target price of 1,635p, Liberum analysts didn’t quite tell investors to get off at the next station, as operating profits remain steady, but warned there could be delays to services as interest costs and joint venture losses slow down earnings.
GREENE KING 550
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Months of punters knocking back pints in the summer and belting out “Three Lions on a Shirt” down the pub have given the industry a welcome boost – and analysts reckon summer success may lead Greene King to take back its crown. Raising its rating to “buy”, Canaccord said the stock was trading well below its valuation, telling investors the dividend was safe as it set a target price of 600p. Whether it can keep up momentum this side of the summer boom is still to be seen, but moderating cost pressures mean investors’ glasses are likely to remain full in the future.
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Apple under fire as tariffs worry Wall St
YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS
Kier, there and everywhere, it’s been a busy year for the construction firm, and analysts aren’t expecting too many shocks when it reports results on 20 September. Earnings are being built brick by brick in line with expectations. Alongside a planned debt reduction of as much as £40m, the firm is putting strong foundations in place for the future. Peel Hunt analysts “confidently” reiterated their “buy” rating with a target price of 1,600p, as they remained impressed by Kier’s new efficency and streamlining programme aimed at future-proofing the company.
ALL Street’s major indices fell on Friday as US President Donald Trump raised the possibility of additional tariffs on Chinese imports and Apple indicated that some of its products could be subjected to such levies. US stocks were lower for most of Friday’s session but dipped further in the last half-hour of trading on reports that Apple products, including the Apple Watch and Airpod headphones, would be slapped with duties. Apple shares, which had been in positive territory for most of the session, ended 0.8 per cent lower. US stocks had already been pressured after Trump said he had tariffs ready to impose on an additional $267bn (£207bn) worth of Chinese imports, on top of the proposed $200bn. The Dow Jones Industrial Average fell 79.33 points, or 0.31 per cent, to 25,916.54, the S&P 500 lost 6.37 points, or 0.22 per cent, to 2,871.68 and the Nasdaq Composite dropped 20.19 points, or 0.25 per cent, to 7,902.54. For the week, the Dow lost 0.19 per cent, the S&P fell 1.03 per cent, and the Nasdaq shed 2.55 per cent. The Nasdaq registered its greatest weekly percentage decline since late March, while the S&P’s weekly percentage drop was its biggest since late June. Shares of chip maker Broadcom rose 7.7 per cent after a strong current-quarter revenue forecast. Tesla shares slid 6.3 per cent following reports of two executives leaving the company and on mounting investor concerns about chief executive Elon Musk’s behaviour after he smoked marijuana on a live web show. Boutique-style chain store Francesca’s will report earnings tomorrow, while Pivotal Software will report half-year results on Wednesday. Retail behemoth Kroger, second only to Walmart in terms of scale, will report on Thursday, alongside software firm Adobe Systems and Nevada Gold and Casinos.
CITY MOVES WHO’S SWITCHING JOBS ING
ING has appointed Sachin Shah as director in the debt capital markets SSA (sovereign, supranational and agency) origination team, based in London. Sachin will focus on the agency and supra issuers to strengthen the bank’s presence in the sector. He will assume the role of head of agency and supranationals, reporting to Corrado Cogliati, global head of SSA DCM origination. Prior to ING UK, Sachin spent seven years at Rabobank where he worked with
SSA borrowers, most recently in a role which encompassed SSA syndicate responsibilities as well as SSA origination. Before that he worked in the SSA DCM team at Dresdner Kleinwort for over five years.
European law firm Fieldfisher has hired Andrew Hood, EU trade expert and former legal adviser to Prime Minister David Cameron, from Dechert. He joins the firm’s regulatory team as a partner. Andrew specialises in UK and EU regulatory and trade law and advises businesses in a range of sectors including automotive, aerospace, clothing, financial services, food and drink, publishing and travel, as well as government and NGOs. He will also join Fieldfisher’s Brexit taskforce
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advising clients on the likely outcome of UK/EU negotiations and future business opportunities as well as advising on the mitigation of any negative impacts. Andrew spent over 13 years as a lawyer and negotiator for the UK government, including three years in Brussels. He has also worked as a lawyer at the Foreign Office and was head of international and EU law at the attorney general’s office between August 2014 and January 2016. Prior to leaving the government, Andrew was general counsel in 10 Downing Street advising the then-Prime Minister David Cameron between October 2014 and January 2016. This included advising the Number 10 policy unit on the development and application of a broad range of domestic and international policies.
Stonehage Fleming, an independently owned family office, has appointed Mona Shah as director, investment strategy and research, in London. Mona will be a member of the investment committee. She will be responsible for the selection and review of managers for use in multi-asset client portfolios. With 11 years’ investment and research experience Mona joins Stonehage Fleming from Rathbone Brothers, where she was appointed head of collectives research in January 2017. At Rathbones she was responsible for the firm’s long-only and alternatives investment process. Mona led a team of analysts and also contributed to the management of multi-asset collectives.
MONDAY 10 SEPTEMBER 2018
FTSE ALL SHARE
20209.61 73.88 Price Chg High Low
GILTS Tsy 4.500 19 . . . . . . .101.89 Tsy 3.750 19 . . . . . . .102.97 Tsy 4.750 20 . . . . . .105.95 Tsy 3.750 20 . . . . . .105.93 Tsy 2.500 20 . . . . . .360.98 Tsy 8.000 21 . . . . . . .119.57 Tsy 4.000 22 . . . . . .110.82 Tsy 0.500 22 . . . . . . .98.40 Tsy 1.875 22 . . . . . . . .117.54 Tsy 2.250 23 . . . . . .105.93 Tsy 2.500 24 . . . . . .360.99 Tsy 0.125 24 . . . . . . .111.69 Tsy 5.000 25 . . . . . .124.07 Tsy 4.250 27 . . . . . .125.49 Tsy 1.250 27 . . . . . . .129.85 Tsy 6.000 28 . . . . . .143.82 Tsy 0.125 29 . . . . . . .120.28 Tsy 4.750 30 . . . . . .135.93 Tsy 4.125 30 . . . . . .359.99 Tsy 4.250 32 . . . . . . .132.55 Tsy 1.250 32 . . . . . . .146.24 Tsy 0.125 36 . . . . . . .135.75 Tsy 4.250 36 . . . . . .138.05 Tsy 4.750 38 . . . . . . .150.74 Tsy 0.625 40 . . . . . .155.70 Tsy 4.500 42 . . . . . .152.70 Tsy 3.500 45 . . . . . .134.68 Tsy 4.250 46 . . . . . . .153.51 Tsy 4.025 49 . . . . . .158.65 Tsy 0.500 50 . . . . . .180.37 Tsy 0.250 52 . . . . . .175.86
-0.01 -0.01 0.00 0.00 -0.03 0.02 0.05 0.06 0.00 0.08 0.05 0.03 0.10 0.21 0.13 0.22 0.14 0.26 0.15 0.32 0.20 0.30 0.37 0.39 0.32 0.46 0.51 0.53 0.58 0.35 0.47
106.6 107.3 111.6 110.8 371.2 129.2 116.7 100.6 125.3 110.3 373.9 117.7 131.7 131.6 138.0 152.8 127.5 143.1 378.1 138.9 156.3 145.4 144.0 157.2 168.7 159.2 140.3 160.4 166.6 198.8 195.0
101.9 103.0 105.9 105.9 360.6 119.6 110.8 97.3 117.4 105.3 355.4 111.0 123.7 123.4 128.6 142.2 118.7 133.0 353.9 129.3 144.7 133.7 134.3 146.2 154.2 147.2 129.4 147.5 152.5 176.5 171.7
AEROSPACE & DEFENCE BAE Systems . . . . . . . . .620.0 Cobham . . . . . . . . . . . . .122.2 Meggitt . . . . . . . . . . . . .534.2 QinetiQ Group . . . . . . . .276.5 Rolls-Royce Holdi . . . . .970.0 Senior . . . . . . . . . . . . . . .317.2 Ultra Electronics . . . . .1585.0
10.0 0.1 1.2 0.9 -4.2 -0.8 -3.0
676.4 148.0 572.0 281.5 1094.0 334.4 1861.0
535.5 113.5 417.1 195.5 814.0 250.0 1142.0
BANKS Bank of Georgia G . . . .1702.8 -18.4 Barclays . . . . . . . . . . . . .174.5 -1.7 Close Brothers Gr . . . .1582.0 -11.0 CYBG . . . . . . . . . . . . . . .332.2 -1.8 HSBC Holdings . . . . . . . .655.1 -5.3 Lloyds Banking Gr . . . . .58.7 -1.2 Metro Bank . . . . . . . . .2680.0 -98.0 Royal Bank of Sco . . . . .245.0 -3.1 Standard Chartere . . . . .619.5 -2.8 TBC Bank Group . . . . .1584.0 -32.0 Virgin Money Hold . . . .386.0 -0.7
3868.0 1593.0 217.0 172.4 1613.0 1316.0 364.2 283.2 796.0 650.5 72.1 58.6 4040.0 2676.0 302.4 239.6 849.2 612.1 1896.0 1530.0 421.8 258.6
BEVERAGES Barr (A.G.) . . . . . . . . . . .742.0 Britvic . . . . . . . . . . . . . .805.0 Coca-Cola HBC AG . . .2537.0 Diageo . . . . . . . . . . . . .2681.5
-1.0 -6.0 -5.0 -4.0
751.0 834.5 2801.0 2883.5
600.0 661.5 2216.0 2354.5
12.0 -1.6 3.0 -1.0 -4.0 0.0
5270.0 3675.0 315.6 240.6 3823.0 2820.0 38.7 22.0 575.5 460.0 3236.0 2275.0
CHEMICALS Croda Internation . . . .5022.0 Elementis . . . . . . . . . . .250.8 Johnson Matthey& MATERIALS . . . .3478.0 CONSTRUCTION Sirius Minerals . . . . . . . .26.3 Synthomer . . . . . . . . . .550.0 Victrex plc . . . . . . . . . .3162.0
CONSTRUCTION & MATERIALS Balfour Beatty . . . . . . . .281.2 0.2 311.1 253.5 CRH . . . . . . . . . . . . . . .2473.0 -68.0 2861.0 2338.0 Galliford Try . . . . . . . . .986.0 3.0 1260.5 719.8
Price Chg High Low Ibstock . . . . . . . . . . . . .243.0 Keller Group . . . . . . . .1010.0 Kier Group . . . . . . . . . .948.0 Marshalls . . . . . . . . . . . .441.0 Polypipe Group . . . . . .369.4
-0.8 -4.0 47.0 -5.0 -3.4
305.4 1120.0 1176.0 483.4 425.6
225.6 798.0 896.5 384.8 348.0
ELECTRICITY Contour Global . . . . . . .209.4 -8.4 300.0 203.6 Drax Group . . . . . . . . . .379.2 -1.4 385.0 221.4 SSE . . . . . . . . . . . . . . . .1252.5 -16.0 1441.0 1182.0
ELECTRONIC & ELECTRICAL EQ. Halma . . . . . . . . . . . . .1390.0 -13.0 Morgan Advanced M . .329.6 -5.0 Renishaw . . . . . . . . . .5105.0 -50.0 Spectris . . . . . . . . . . . .2296.0 -22.0
1456.0 1075.0 366.2 291.1 5775.0 4434.0 2908.0 2229.0
EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .1344.0 -6.0 1442.0 1254.0 Alliance Trust . . . . . . . . .761.0 0.0 785.0 689.0 Baillie Gifford J . . . . . . .855.0 15.0 882.0 683.0 Bankers Inv Trust . . . . .880.0 -1.0 923.0 800.5 British Empire Tr . . . . . .753.0 0.0 767.0 681.0 Caledonia Investm . . .2845.0 35.0 2890.0 2600.0 City of London In . . . . . .417.0 -0.5 443.0 393.5 Edinburgh Dragon . . .364.0 6.0 394.0 343.0 Edinburgh Inv Tru . . . .679.0 -2.0 724.0 616.0 F&C Global Smalle . . .1480.0 20.0 1480.0 1265.0 Fidelity China Sp . . . . . .212.5 -2.5 268.0 210.0 Fidelity European . . . . .226.5 -1.0 239.0 202.5 Fidelity Special . . . . . . .274.0 1.0 280.0 236.8 Finsbury Growth & . . . .827.0 -2.0 854.0 721.0 Foreign and Colon . . . . .721.0 0.0 741.0 595.0 GCP Infrastructur . . . . . .124.0 0.8 129.0 115.0 Genesis Emerging . . . .677.0 2.0 750.0 665.0 Greencoat UK Wind . . . .127.6 0.2 127.7 117.8 HarbourVest Globa . . .1380.0 4.0 1386.0 1178.0 Herald Investment . . .1355.0 0.0 1370.0 1080.0 HICL Infrastructu . . . . . .155.8 -1.2 163.6 133.5 International Pub . . . . .154.6 -1.6 166.6 138.2 John Laing Infras . . . . . .141.8 -0.2 146.0 109.6 JPMorgan American . .466.0 1.5 472.0 368.5 JPMorgan Emerging . .848.0 5.0 930.0 817.5 JPMorgan Indian I . . . .700.0 10.0 785.0 644.0 JPMorgan Japanese . . .457.0 -3.0 472.0 368.0 Jupiter European . . . .866.0 0.0 895.0 670.0 Mercantile Invest . . . . . .211.7 -0.3 226.0 197.9 Monks Inv Trust . . . . . .835.0 -2.0 872.0 690.0 Murray Internatio . . . .1120.0 6.0 1307.0 1100.0 NB Global Floatin . . . . . .93.0 0.1 95.6 91.3 Pantheon Internat . . .2090.0 10.0 2100.0 1757.5 Perpetual Income . . . .353.0 -0.5 392.0 333.5 Pershing Square H . . .1164.0 -8.0 1208.0 856.0 Personal Assets T . . .40100.0 100.0 41050.038750.0 Polar Capital Tec . . . . .1338.0 6.0 1386.0 999.0 RIT Capital Partn . . . .2080.0 0.0 2130.0 1844.0 Riverstone Energy . . .1268.0 -2.0 1330.0 1170.0 Schroder Asia Pac . . . . .433.0 1.0 484.0 425.0 Scottish Inv Trus . . . . . .864.0 -3.0 902.0 771.0 Scottish Mortgage . . . . .531.0 -1.3 568.3 407.6 Sequoia Economic . . . .112.0 1.0 114.5 104.5 Syncona Limited N . . . .282.0 0.5 290.0 165.0 Temple Bar Inv Tr . . . .1260.0 0.0 1354.0 1180.0 Templeton Emergin . . .693.0 8.0 825.0 683.0 The Renewables In . . . . .111.2 0.2 112.0 101.4 TR Property Inv T . . . . .420.0 -1.5 433.5 362.0 Vietnam Enterpris . . . .447.0 2.0 499.0 387.8 VinaCapital Vietn . . . . .339.0 0.0 367.0 295.0 Witan Inv Trust . . . . . .1100.0 0.0 1138.0 995.0 Worldwide Healthc . .2825.0 5.0 2910.0 2330.0
FINANCIAL SERVICES 3i Group . . . . . . . . . . . . .912.6 -3.6 1029.5 853.0 3i Infrastructure . . . . . .243.5 -3.0 248.5 191.3
0.0058 €/$ 1.1552
0.0008 €/£ 0.8942
0.3490 €/¥ 128.24
Price Chg High Low Allied Minds . . . . . . . . . .73.6 -0.6 Arrow Global Grou . . . .233.0 2.0 Ashmore Group . . . . . .350.0 4.8 Brewin Dolphin Ho . . . .347.2 -8.0 Charles Taylor . . . . . . . .287.0 3.5 Charter Court Fin . . . . .342.2 -9.2 City of London In . . . . .395.0 6.5 CMC Markets . . . . . . . . .167.0 -0.4 Coats Group . . . . . . . . . . .81.5 1.5 Georgia Capital . . . . . .1028.0 6.2 Hargreaves Lansdo . . .2168.0 -3.0 IG Group Holdings . . . .887.0 -13.5 IntegraFin Holdin . . . . .354.0 -2.0 Intermediate Capi . . . .1012.0 -12.0 International Per . . . . .232.4 7.8 Investec . . . . . . . . . . . .486.5 -1.6 IP Group . . . . . . . . . . . .129.6 -0.2 John Laing Group . . . . .313.0 -3.0 JTC . . . . . . . . . . . . . . . . .410.0 1.0 Jupiter Fund Mana . . . .407.2 -3.0 Liontrust Asset M . . . . .650.0 12.0 LMS Capital . . . . . . . . . . .52.3 0.0 London Finance & . . . . .42.5 0.0 London Stock Exch . . .4644.0 -19.0 Man Group . . . . . . . . . . .167.0 -4.2 OneSavings Bank . . . . .414.8 5.6 Paragon Banking G . . .464.0 -3.4 Provident Financi . . . . .665.8 -7.8 Quilter . . . . . . . . . . . . . .135.6 -2.6 Rathbone Brothers . . .2518.0 -42.0 Real Estate Credi . . . . . .174.0 2.0 Record . . . . . . . . . . . . . .42.0 0.3 River and Mercant . . . .322.0 8.0 S&U . . . . . . . . . . . . . . .2520.0 25.0 Sanne Group . . . . . . . . .597.0 0.0 Schroders . . . . . . . . . .2966.0 -33.0 Standard Life Abe . . . . .313.7 -4.7 TP ICAP . . . . . . . . . . . . .280.7 -4.3 VPC Specialty Len . . . . . .80.6 0.8 Walker Crips Grou . . . . . .37.5 -0.5 XPS Pensions Grou . . . .175.5 0.0
188.0 70.1 458.8 230.0 433.2 332.3 393.0 332.2 314.0 238.0 363.6 228.8 454.0 366.0 206.0 146.8 90.0 73.3 1233.4 975.0 2227.0 1384.0 954.5 617.0 401.0 253.5 1203.0 841.0 254.8 184.3 648.6 461.4 154.5 102.0 317.8 239.9 411.0 295.0 631.4 402.4 688.0 470.0 52.8 45.3 45.5 42.5 4681.0 3649.0 217.7 161.5 449.6 362.8 552.5 403.9 733.2 430.2 154.7 135.2 2772.0 2284.0 175.0 159.0 52.5 37.8 392.0 250.0 2790.0 1925.0 830.0 589.0 3773.0 2938.0 446.3 304.2 553.6 259.7 84.4 74.3 48.5 33.0 194.0 163.6
FIXED LINE TELECOMS BT Group . . . . . . . . . . . .222.9 2.5 287.6 203.0 TalkTalk Telecom . . . . . .127.5 -4.5 218.0 94.5 Telecom Plus . . . . . . . .1030.0 6.0 1280.0 999.0
Price Chg High Low United Utilities . . . . . . .719.0 -4.6 919.0 656.0
GENERAL INDUSTRIALS RPC Group . . . . . . . . . . .683.6 Smith (DS) . . . . . . . . . .484.8 Smiths Group . . . . . . .1569.5 Smurﬁt Kappa Gro . . .3190.0 Vesuvius . . . . . . . . . . . .615.0
-11.6 -5.3 -18.5 -4.0 -12.0
993.0 538.9 1801.0 3292.0 652.5
648.6 427.8 1444.0 2150.0 544.0
GENERAL RETAILERS Auto Trader Group . . . .433.5 6.5 B&M European Valu . . .406.3 -0.1 Card Factory . . . . . . . . .190.6 0.5 Dixons Carphone . . . . . .161.7 0.2 Dunelm Group . . . . . . .526.5 -5.0 Halfords Group . . . . . . .344.0 -5.2 Inchcape . . . . . . . . . . . .671.5 -3.5 JD Sports Fashion . . . . .492.6 -5.1 Just Eat . . . . . . . . . . . . .704.0 4.8 Kingﬁsher . . . . . . . . . . .263.3 -5.2 Marks & Spencer G . . . .293.4 -3.9 Next . . . . . . . . . . . . . .5448.0 -42.0 Saga . . . . . . . . . . . . . . . .127.0 -0.6 Sports Direct Int . . . . . . .362.1 -6.9 Ted Baker . . . . . . . . . .2170.0 12.0 WH Smith . . . . . . . . . .2064.0 20.0
457.0 319.0 434.8 364.2 355.0 177.4 234.7 149.1 753.5 484.0 388.0 307.4 880.5 670.0 514.6 318.0 890.0 661.0 362.5 263.1 354.1 264.5 6202.0 4230.0 200.5 109.5 436.1 354.6 3214.0 2096.0 2347.0 1859.0
942.0 204.1 238.7 224.8 499.6 176.0 671.5
FOOD PRODUCERS Associated Britis . . . . .2270.0 -30.0 Bakkavor Group . . . . . .170.6 -2.2 Cranswick . . . . . . . . . .3232.0 2.0 Dairy Crest Group . . . . .462.4 1.4 Greencore Group . . . . . .175.8 1.3 Hilton Food Group . . . .958.0 14.0 Tate & Lyle . . . . . . . . . . .657.8 -0.2 Unilever . . . . . . . . . . .4245.0 21.5
3371.0 2243.0 212.5 167.6 3460.0 2780.0 625.5 455.4 230.6 127.0 994.0 726.0 710.0 526.0 4548.5 3695.0
FORESTRY & PAPER Mondi . . . . . . . . . . . . .2082.0 -32.0 2236.0 1693.0
GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .148.1 National Grid . . . . . . . .804.9 Pennon Group . . . . . . .744.6 Severn Trent . . . . . . . .1954.5
-2.5 -5.4 -5.8 3.0
195.6 981.5 821.5 2283.0
124.1 736.8 583.4 1703.0
INDUSTRIAL METALS & MINING Evraz . . . . . . . . . . . . . . .481.3 -6.1 560.4 279.1 Ferrexpo . . . . . . . . . . . . .147.7 -4.3 323.2 144.1
INDUSTRIAL TRANSPORTATION BBA Aviation . . . . . . . .298.4 -4.2 Clarkson . . . . . . . . . . .2760.0 0.0 Fisher (James) & . . . .1780.0 -30.0 Royal Mail . . . . . . . . . . .467.6 1.4 Stobart Group Ltd . . . . .236.0 1.0
368.8 292.5 3450.0 2300.0 1930.0 1360.0 631.0 369.9 303.2 214.0
NON LIFE INSURANCE Admiral Group . . . . . .2021.0 Beazley . . . . . . . . . . . . .575.5 Direct Line Insur . . . . . .327.7 esure Group . . . . . . . . .278.8 Hastings Group Ho . . . .270.0 Hiscox Limited (D . . . .1683.0 Jardine Lloyd Tho . . . .1484.0
-7.0 -7.5 0.0 -0.2 -1.4 -8.0 -12.0
2118.0 619.5 393.2 283.9 320.0 1711.0 1530.0
1784.0 450.0 322.5 192.5 233.8 1214.0 1151.0
MAIN CHANGES UK 350 Risers Greene King . . . . . . . . . . . . . . . .510.6 Convatec Group . . . . . . . . . . . . .225.0 Kier Group . . . . . . . . . . . . . . . . .948.0 Sophos Group . . . . . . . . . . . . . . .510.5 Wetherspoon (J.D.) . . . . . . . . .1243.0 Ascential . . . . . . . . . . . . . . . . . . .434.6 Greggs . . . . . . . . . . . . . . . . . . . .1053.0 Rank Group . . . . . . . . . . . . . . . . .174.6 Smith & Nephew . . . . . . . . . . .1384.0 Aveva Group . . . . . . . . . . . . . .2666.0
% 7.5 5.9 5.2 3.5 3.3 2.5 2.4 2.2 2.2 2.1
Price Chg High Low 1399.0 269.4 1146.0 341.5 703.4 266.2 959.0
1443.0 1013.0 247.0 198.8 5350.0 3249.0 361.4 237.6 7270.0 5410.0 2325.0 1538.5
Price Chg High Low Moneysupermarket. . . .275.4 -1.2 Pearson . . . . . . . . . . . .896.8 0.8 Reach . . . . . . . . . . . . . . .70.6 -2.3 Relx plc . . . . . . . . . . . . .1651.5 -30.0 Rightmove . . . . . . . . . .478.0 -3.4 Sky . . . . . . . . . . . . . . . .1550.0 8.0 STV Group . . . . . . . . . . .397.0 -5.5 Tarsus Group . . . . . . . . .301.0 -1.0 WPP . . . . . . . . . . . . . . .1165.0 20.5
366.5 256.9 957.4 566.5 90.8 66.1 1782.0 1429.5 535.0 388.9 1550.0 900.0 458.0 305.0 335.0 273.0 1471.0 1094.0
MINING Anglo American . . . . .1475.4 -26.6 Antofagasta . . . . . . . . .744.2 -32.2 BHP Billiton . . . . . . . . .1519.0 -25.8 Centamin (DI) . . . . . . . . .90.4 -2.2 Fresnillo . . . . . . . . . . . .834.0 -29.0 Glencore . . . . . . . . . . . .296.0 -8.2 Hochschild Mining . . . . .161.9 -7.7 Kaz Minerals . . . . . . . . .440.5 -16.5 Polymetal Interna . . . .602.0 -16.6 Randgold Resource . .4769.0-120.0 Rio Tinto . . . . . . . . . . .3509.5 -35.0 Vedanta Resources . . . .839.4 -0.2
1926.4 1149.0 1779.2 165.9 1672.0 415.0 291.6 1076.0 927.5 8190.0 4492.0 954.0
1286.0 744.2 1305.5 89.3 829.0 294.9 156.2 433.8 591.0 4759.7 3417.0 632.4
MOBILE TELECOMS Inmarsat . . . . . . . . . . . .514.6 -3.6 658.0 336.4 Vodafone Group . . . . . .165.3 1.3 238.0 162.9
OIL & GAS PRODUCERS
FOOD & DRUG RETAILERS Greggs . . . . . . . . . . . . .1053.0 25.0 Morrison (Wm) Sup . . .261.9 0.2 Ocado Group . . . . . . . . .977.6 -20.8 Sainsbury (J) . . . . . . . . .318.9 -1.2 SSP Group . . . . . . . . . . .691.2 0.8 Tesco . . . . . . . . . . . . . . .238.9 -1.0 UDG Healthcare Pu . . . .685.5 2.0
Price Chg High Low IMI . . . . . . . . . . . . . . . . .1131.0 -19.0 Melrose Industrie . . . . .226.2 -3.8 RHI Magnesita N.V . . .4912.0 -52.0 Rotork . . . . . . . . . . . . . .331.0 -2.0 Spirax-Sarco Engi . . .6890.0 -10.0 Weir Group . . . . . . . . .1600.0 -32.0
HEALTH CARE EQUIPMETN & S. Assura . . . . . . . . . . . . . . .56.4 Convatec Group . . . . . .225.0 Mediclinic Intern . . . . .490.8 NMC Health . . . . . . . . .3690.0 Smith & Nephew . . . . .1384.0 Spire Healthcare . . . . . .169.7
0.2 12.6 5.8 52.0 29.5 -0.5
66.3 53.9 284.2 182.0 753.0 466.1 4120.0 2645.0 1431.0 1215.0 319.9 160.0
HHOLD GDS & HOME CONSTR. Barratt Developme . . . .553.4 0.2 Bellway . . . . . . . . . . . .2890.0 -32.0 Berkeley Group Ho . . .3563.0 -13.0 Bovis Homes Group . . .1126.5 -19.5 Countryside Prope . . . .336.0 2.4 Crest Nicholson H . . . . .369.0 -4.6 McCarthy & Stone . . . . . .117.4 2.2 Persimmon . . . . . . . . .2369.0 -23.0 Reckitt Benckiser . . . .6456.0 -17.0 Redrow . . . . . . . . . . . . .592.0 -5.0 Taylor Wimpey . . . . . . .165.8 -2.2
700.0 483.0 3792.0 2838.0 4321.0 3468.0 1301.5 1024.0 384.0 298.8 588.5 364.0 171.0 97.5 2890.0 2341.0 7187.0 5443.0 664.5 516.0 211.2 163.5
INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . . .897.0 0.0 1055.0 835.5 Hill & Smith Hold . . . . .1035.0 5.0 1523.0 1005.0
Fallers Hochschild Mining . . . . . . . . . . . .161.9 Go-Ahead Group . . . . . . . . . . . .1752.0 Antofagasta . . . . . . . . . . . . . . . .744.2 Hunting . . . . . . . . . . . . . . . . . . .748.0 Just Group . . . . . . . . . . . . . . . . . .84.5 Contour Global . . . . . . . . . . . . . .209.4 Superdry . . . . . . . . . . . . . . . . . .1135.0 Kaz Minerals . . . . . . . . . . . . . . . .440.5 Sirius Minerals . . . . . . . . . . . . . . .26.3 Metro Bank . . . . . . . . . . . . . . .2680.0
% -4.5 -4.3 -4.2 -4.0 -3.9 -3.9 -3.7 -3.6 -3.6 -3.5
Price Chg High Low Lancashire Holdin . . . .595.0 -4.5 759.5 549.0 RSA Insurance Gro . . . .614.4 -0.4 681.8 593.5
LIFE INSURANCE Aviva . . . . . . . . . . . . . . .478.3 Just Group . . . . . . . . . . .84.5 Legal & General G . . . . .252.3 Phoenix Group Hol . . . .683.5 Prudential . . . . . . . . . .1681.0 St James's Place . . . . . .1101.0
-7.6 -3.5 -2.0 -9.0 -19.5 -22.5
552.0 170.4 286.2 732.9 1981.0 1270.5
476.1 79.6 249.5 652.4 1669.0 1052.0
MEDIA 4Imprint Group . . . . .2230.0 -20.0 Ascential . . . . . . . . . . . .434.6 10.6 Bloomsbury Publis . . . .223.0 3.0 Centaur Media . . . . . . . . .42.1 0.0 Entertainment One . . . .372.2 -4.0 Euromoney Institu . . . .1310.0 -12.0 Gocompare.com Gro . . .101.0 0.0 Haynes Publishing . . . .201.0 0.0 Huntsworth . . . . . . . . . .119.5 5.5 Informa . . . . . . . . . . . . .752.8 -0.6 ITE Group . . . . . . . . . . . .80.9 -1.8 ITV . . . . . . . . . . . . . . . . .158.4 -0.5 Johnston Press . . . . . . . . .3.7 -0.0
2280.0 465.0 254.0 56.8 384.0 1450.0 139.0 246.0 139.0 859.0 121.0 180.4 17.5
1575.0 335.7 157.3 41.6 247.0 1105.0 91.5 176.5 72.8 659.5 73.2 142.4 2.7
BP . . . . . . . . . . . . . . . . .536.9 Cairn Energy . . . . . . . . .230.0 Energean Oil & Ga . . . .555.0 Premier Oil . . . . . . . . . . .114.3 Royal Dutch Shell . . . .2443.5 Royal Dutch Shell . . . .2479.0 Tullow Oil . . . . . . . . . . . .216.0
-4.3 -2.2 -1.0 -3.4 -19.0 -21.5 -4.7
592.8 267.6 570.0 134.9 2748.5 2841.0 276.0
446.1 173.0 418.0 57.8 2102.5 2142.5 154.6
OIL EQUIPMENT & SERVICES Hunting . . . . . . . . . . . . .748.0 -31.5 914.0 407.7 Petrofac Ltd. . . . . . . . . .608.4 -5.2 660.0 397.3 Wood Group (John) . . .681.4 -15.2 781.8 521.4
PERSONAL GOODS Burberry Group . . . . .2092.0 -2.0 2325.0 1498.0 PZ Cussons . . . . . . . . . .229.0 0.2 344.2 216.0 Superdry . . . . . . . . . . .1135.0 -43.0 2076.0 1107.0
PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .5650.0 15.0 BTG . . . . . . . . . . . . . . . .570.5 7.5 Dechra Pharmaceut . .2410.0 30.0 Genus . . . . . . . . . . . . .2462.0 -80.0 GlaxoSmithKline . . . . .1525.0 -0.4 Hikma Pharmaceuti . .1929.5 -5.0 Indivior . . . . . . . . . . . . .259.7 1.0 Shire Plc . . . . . . . . . . .4284.5 -47.0
6107.0 4705.0 779.0 475.0 3168.0 1970.0 2992.0 1955.0 1619.4 1242.8 2016.0 855.6 496.2 254.3 4562.0 2953.5
REAL ESTATE INVEST. & SERV. Capital & Countie . . . . .247.7 CLS Holdings . . . . . . . . .222.5 Daejan Holdings . . . .5950.0 F&C Commercial Pr . . . .147.0 Grainger . . . . . . . . . . . .299.2 NewRiver REIT . . . . . . .253.5 Safestore Holding . . . .529.0 Savills . . . . . . . . . . . . . .774.0 St. Modwen Proper . . .382.0 UK Commercial Pro . . . .90.6
-4.3 319.9 246.9 3.5 255.0 197.5 30.0 6400.0 5580.0 0.2 155.0 134.5 -1.6 322.0 254.9 -3.0 365.2 250.5 -2.5 577.0 391.3 -17.0 1034.0 771.5 -5.0 426.0 366.8 0.2 92.0 85.6
REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .950.5 -17.0 984.0 748.5 British Land Comp . . . . .613.4 -1.0 697.0 590.5 Derwent London . . . .2966.0 -15.0 3235.0 2625.0
Price Chg High Low Great Portland Es . . . . .700.4 -2.9 Hammerson . . . . . . . . .447.4 2.0 Intu Properties . . . . . . .150.0 -0.4 Land Securities G . . . . .883.0 -4.0 LondonMetric Prop . . . .180.9 -1.1 Primary Health Pr . . . . .113.8 0.4 RDI Reit . . . . . . . . . . . . . .32.4 0.1 SEGRO . . . . . . . . . . . . . .651.4 0.6 Shaftesbury . . . . . . . . .906.0 -6.0 Tritax Big Box Re . . . . . .150.0 -0.6 Unite Group . . . . . . . . .876.0 -5.0 Workspace Group . . . .1041.0 -28.0
AB INBEV ..........................................................77.53 ADIDAS N........................................................207.20 AIR LIQUIDE ....................................................105.75 AIRBUS ...........................................................104.84 ALLIANZ...........................................................181.52 ASML HLDG .....................................................159.02 AXA...................................................................21.79 BANCO SANTANDER............................................4.18 BASF N .............................................................76.94 BAYER N ...........................................................73.49 BBVA...................................................................5.18 BMW.................................................................81.07 BNP PARIBAS BR-A..........................................50.45 CRH PLC .............................................................0.00 DAIMLER N .......................................................54.48 DANONE............................................................65.19 DEUTSCHE BANK N.............................................9.62 DEUTSCHE POST N............................................30.58 DEUTSCHE TELEKOM N.......................................13.59 E.ON N................................................................8.86 ENEL N ...............................................................4.40 ENGIE................................................................12.26 ENI N.................................................................15.73 ESSILOR INTL....................................................119.50 FRESENIUS.......................................................63.60 IBERDROLA ........................................................6.25 INDITEX .............................................................25.17 ING GROUP.........................................................11.10 INTESA SANPAOLO N ..........................................2.26 KON AH DEL BR................................................20.86 L'OREAL ..........................................................199.20 LVMH...............................................................284.15 MUENCHENER RUECKV N................................184.05 NOKIA ................................................................4.65 ORANGE............................................................13.63 ROY.PHILIPS ......................................................37.74 SAFRAN............................................................117.40 SAINT-GOBAIN..................................................35.37 SANOFI .............................................................72.97 SAP I...............................................................100.56 SCHNEIDER EL..................................................64.50 SIEMENS N......................................................108.20 SOCIETE GENERALE...........................................35.40 TELEFONICA........................................................6.78 TOTAL................................................................51.99 UNILEVER CERT .................................................47.74 VINCI ................................................................80.24 VIVENDI ............................................................21.85 VOLKSWAGEN VZ I ..........................................136.08
660.1 434.4 148.2 880.0 164.0 108.8 31.5 527.0 901.0 139.6 656.0 861.5
3054.0 1620.0 1128.0 2739.0 986.5 821.4 888.0 669.5
1803.0 964.5 846.0 911.8 481.6 563.8 393.5 416.0
SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . .2666.0 Computacenter . . . . . .1322.0 FDM Group (Holdin . . .909.0 Micro Focus Inter . . . . .1286.5 Playtech . . . . . . . . . . . . .492.1 Sage Group . . . . . . . . . .581.6 Softcat . . . . . . . . . . . . .822.0 Sophos Group . . . . . . . .510.5
54.0 -6.0 5.0 6.5 5.1 11.4 -3.0 17.3
SUPPORT SERVICES AA . . . . . . . . . . . . . . . . . .111.8 -0.8 Aggreko . . . . . . . . . . . . .818.6 -6.4 Ashtead Group . . . . . .2258.0 -61.0 Babcock Internati . . . . .717.8 5.6 BCA Marketplace . . . . . .223.5 -2.5 Bunzl . . . . . . . . . . . . . .2357.0 -19.0 Capita . . . . . . . . . . . . . .150.2 1.2 DCC . . . . . . . . . . . . . . .6845.0 110.0 Diploma . . . . . . . . . . . .1382.0 -8.0 Electrocomponents . . .729.8 5.0 Equiniti Group . . . . . . . .251.5 4.0 Essentra . . . . . . . . . . . .434.0 -2.6 Experian . . . . . . . . . . .1890.0 8.0 Ferguson . . . . . . . . . .6269.0 -7.0 G4S . . . . . . . . . . . . . . . .230.6 -2.7 Grafton Group Uni . . . . .767.5 -7.5 Hays . . . . . . . . . . . . . . .204.4 -1.8 Homeserve . . . . . . . . .1008.0 -10.0 Howden Joinery Gr . . .472.9 -0.3 Intertek Group . . . . . .5028.0 -44.0 Pagegroup . . . . . . . . . .577.0 -9.5 Renewi . . . . . . . . . . . . . .62.1 1.0 Rentokil Initial . . . . . . .320.5 -0.3 Serco Group . . . . . . . . . .98.8 1.3 SIG . . . . . . . . . . . . . . . . .125.5 -0.3 Travis Perkins . . . . . . . .1133.0 0.5
176.6 71.1 983.0 641.8 2415.0 1684.0 862.4 626.2 242.0 149.6 2415.0 1936.0 392.7 80.2 7755.0 6475.0 1475.0 1037.0 761.6 568.6 326.5 204.5 555.0 416.8 1942.5 1446.0 6286.0 4493.4 291.3 230.1 841.5 729.0 208.4 174.9 1039.0 705.0 539.0 399.5 6014.0 4554.0 623.5 440.6 108.2 60.2 355.1 258.7 119.3 83.6 182.0 119.7 1609.0 1102.0
TOBACCO British American . . . .3685.0 2.5 5100.0 3635.0 Imperial Brands . . . . .2700.0 7.5 3327.5 2325.0
TRAVEL & LEISURE 888 Holdings . . . . . . . .225.0 Carnival . . . . . . . . . . .4634.0 Cineworld Group . . . . . .311.0 Compass Group . . . . . .1627.0 Domino's Pizza Gr . . . . .287.1 easyJet . . . . . . . . . . . .1440.0 FirstGroup . . . . . . . . . . . .94.8 Go-Ahead Group . . . . .1752.0 Greene King . . . . . . . . .510.6 GVC Holdings . . . . . . .1065.0 InterContinental . . . .4620.0 International Con . . . . .672.0 Merlin Entertainm . . . .376.8 Millennium & Copt . . . .523.0 Mitchells & Butle . . . . . .263.0 National Express . . . . .400.6 On The Beach Grou . . . .493.5
EU SHARES Price
798.7 570.0 253.0 1073.1 195.7 123.1 39.3 679.0 1055.0 156.9 888.5 1165.0
-2.4 16.0 2.8 -8.5 2.4 -21.0 -1.2 -78.0 35.6 -27.0 6.0 -9.2 -1.5 4.0 0.0 -0.6 4.0
324.8 221.2 5180.0 4215.0 311.4 214.0 1708.5 1425.0 386.9 267.1 1796.0 1156.0 117.5 77.0 1964.0 1338.0 659.0 458.9 1170.0 781.5 4966.0 3668.0 726.6 584.0 468.2 318.4 625.5 431.9 283.1 231.4 422.2 340.9 650.0 385.3
Price Chg High Low Paddy Power Betfa . .6835.0 -35.0 9110.0 6750.0 Rank Group . . . . . . . . . .174.6 3.8 248.5 155.0 Stagecoach Group . . . . .161.9 -1.7 182.5 129.6 Thomas Cook Group . . . .78.0 -0.1 146.1 76.4 TUI AG Reg Shs (D . . . .1334.5 -18.0 1810.5 1262.0 Wetherspoon (J.D. . . .1243.0 40.0 1325.0 992.5 Whitbread . . . . . . . . . .4710.0 10.0 4722.0 3512.0 William Hill . . . . . . . . . . .251.1 -8.4 338.0 243.1 Wizz Air Holdings . . . .3058.0 -37.0 3797.0 2799.0
AIM 50 Abcam . . . . . . . . . . . . .1484.0 -22.0 1539.0 957.5 Advanced Medical . . . .335.5 2.5 370.0 282.5 Alliance Pharma . . . . . . .92.8 -0.4 102.0 51.9 ASOS . . . . . . . . . . . . . .5852.0-126.0 7730.0 5490.0 Blue Prism Group . . . .2560.0 70.0 2600.0 988.0 Brooks Macdonald . . .2115.0 -20.0 2200.0 1760.0 Camellia . . . . . . . . . .10450.0 0.0 13600.010225.0 CareTech Holding . . . . .383.0 -3.0 445.0 365.0 Central Asia Meta . . . . .212.0 -5.5 339.5 209.5 Clinigen Group . . . . . . .921.5 -12.5 1177.0 837.0 CVS Group . . . . . . . . . . .922.5 1.5 1490.0 855.0 Dart Group . . . . . . . . . .997.5 -19.5 1020.0 502.0 EMIS Group . . . . . . . . . .973.0 -2.0 1017.0 705.0 Faroe Petroleum . . . . . .149.4 -1.2 155.2 91.2 Fevertree Drinks . . . . .3831.0 -6.0 3856.8 1900.0 First Derivatives . . . . .4050.0 50.0 4680.0 2750.0 Frontier Developm . . .1050.0 40.0 1825.0 888.0 Gamma Communicati .890.0 4.0 920.0 564.5 GB Group . . . . . . . . . . .600.0 -9.0 626.0 346.8 Gooch & Housego . . . .1677.5 -22.5 1715.0 1260.0 Hurricane Energy . . . . . .55.8 -0.4 57.5 24.0 Iomart Group . . . . . . . .430.0 2.0 434.2 313.5 IQE . . . . . . . . . . . . . . . . . .96.7 -2.0 178.8 91.6 James Halstead . . . . . .406.0 3.0 475.0 377.0 Johnson Service G . . . . .134.2 0.2 151.0 128.0 Keywords Studios . . . .1870.0 -38.0 2065.0 1185.0 Learning Technolo . . . . .115.5 -3.0 120.0 46.0 M&C Saatchi . . . . . . . . .380.0 -5.0 412.0 294.5 M. P. Evans Group . . . . .746.0 -4.0 819.8 725.0 Majestic Wine . . . . . . .404.0 6.5 485.0 311.3 Midwich Group . . . . . . .675.0 -10.0 690.0 382.5 Mulberry Group . . . . . . .414.5 3.5 1099.0 400.0 Next Fifteen Comm . . .566.0 -28.0 600.5 370.0 Nichols . . . . . . . . . . . . .1482.5 -5.0 1853.0 1415.0 Numis Corporation . . . .412.5 -3.0 440.0 269.0 Patisserie Holdin . . . . . .437.0 -5.0 492.0 303.0 Polar Capital Hol . . . . .644.0 20.0 732.0 436.5 Purplebricks Grou . . . .268.0 -6.0 489.8 259.1 Redde . . . . . . . . . . . . . .186.0 7.4 188.7 151.5 Renew Holdings . . . . . .393.0 3.0 457.0 364.5 RWS Holdings . . . . . . . .461.0 0.0 539.0 343.5 Scapa Group . . . . . . . . .414.0 -4.0 509.0 400.0 Secure Income Rei . . . .389.0 3.0 392.0 350.0 Smart Metering Sy . . . .601.0 -11.0 874.5 597.0 Sound Energy . . . . . . . .40.0 0.9 57.2 35.0 Staffline Group . . . . . .1324.0 4.0 1326.0 888.0 Telford Homes . . . . . . . .411.5 1.5 471.5 364.3 Thorpe (F.W.) . . . . . . . . .316.5 0.0 384.3 293.5 Watkin Jones . . . . . . . .200.0 -1.0 249.0 177.6 Young & Co's Brew . . .1745.0 15.0 1782.5 1305.0 Young & Co's Brew . . .1230.0 0.0 1325.0 1027.5
http://corporate.webfg.com mailto: firstname.lastname@example.org
0.08 1.10 0.65 0.56 0.98 -0.64 -0.18 -0.05 0.11 -1.40 -0.05 0.34 -0.54 0.00 0.16 -0.23 -0.14 -0.23 0.15 -0.04 0.02 -0.03 -0.10 0.60 -0.02 -0.05 0.16 -0.40 -0.04 0.01 1.95 3.50 -0.70 0.00 0.13 0.60 1.35 -0.50 0.70 1.80 -3.34 -0.34 -0.50 0.03 -0.04 0.34 -0.16 0.30 -0.16
107.40 218.00 113.30 111.16 206.85 189.50 27.69 6.09 98.80 118.04 7.73 97.50 69.17 34.87 76.48 72.13 17.13 41.36 15.88 10.81 5.59 15.16 16.89 127.60 72.76 6.81 32.81 16.69 3.23 22.08 214.90 313.70 200.30 5.39 15.24 39.09 119.35 51.40 86.39 105.28 78.56 125.95 49.87 9.27 56.27 52.31 88.80 24.87 192.46
76.48 165.05 93.41 69.52 170.12 130.90 20.50 4.14 76.22 71.66 5.12 76.50 50.06 26.53 53.52 62.24 8.76 27.23 12.72 7.88 4.22 12.17 13.22 100.60 58.96 5.56 23.00 10.70 2.11 14.89 170.30 218.10 166.60 3.81 13.32 29.25 80.72 35.19 62.88 82.05 64.02 99.78 34.82 6.67 41.72 42.13 77.56 19.82 131.30
3M ...................................................................212.57 ABBVIE..............................................................94.17 ACCENTURE-A.................................................169.07 ADOBE SYSTEMS ............................................260.87 ALPHAB NON VTG-C......................................1164.83 ALPHABET-A..................................................1177.59 AMAZON.COM ...............................................1952.07 AMERICAN EXPRESS.......................................106.08 AMGEN...........................................................196.30 APPLE.............................................................221.30 AT&T..................................................................32.12 BANK OF AMERICA...........................................30.86 BERKSHIRE HATH RG-B..................................214.04 BOEING CO .....................................................349.28 CATERPILLAR ...................................................141.32 CHEVRON........................................................114.60 CISCO SYSTEMS.................................................47.05 CITIGROUP.......................................................69.64 COCA-COLA CO..................................................45.72 COMCAST-A.......................................................36.17 DOWDUPONT ..................................................70.00 EXXON MOBIL....................................................81.83 FACEBOOK-A...................................................163.04 GOLDMAN SACHS GR ......................................233.91 HOME DEPOT..................................................206.23 IBM .................................................................145.45 INTEL................................................................46.45 JOHNSON & JOHNSO .......................................137.32 JPMORGAN CHASE...........................................114.32 MASTERCARD RG-A.........................................211.09 MCDONALD'S..................................................163.90 MEDTRONIC......................................................96.32 MERCK .............................................................69.67 MICROSOFT......................................................108.21 NETFLIX..........................................................348.68 NIKE -B-..........................................................80.30 NVIDIA............................................................271.86 ORACLE .............................................................47.81 PEPSICO ...........................................................118.61 PFIZER .............................................................42.20 PROCTER&GAMBLE............................................81.91 TRAVELERS COS..............................................130.09 TWITTER ..........................................................30.49 UNITEDHEALTH GRO.......................................268.28 UTD TECHS.......................................................132.01 VERIZON COMM ...............................................54.00 VISA RG-A......................................................143.20 WALGREENS BOOTS..........................................68.19 WALMART........................................................95.83 WALT DISNEY RG-DIS......................................110.97 WELLS FARGO ..................................................57.40
-0.17 0.43 -0.29 1.12 -6.61 -6.40 -6.24 0.68 0.15 -1.80 -0.06 0.01 1.16 -1.99 -0.25 -0.63 -0.23 -0.47 -0.05 0.25 -0.08 1.37 0.51 -0.61 0.34 -0.94 -0.81 0.45 0.22 -1.68 0.16 -0.17 0.29 -0.53 2.22 -0.10 -0.86 0.10 0.56 0.42 -0.74 -2.48 -0.32 -1.37 -1.51 -0.29 -1.30 0.16 -0.62 0.71 -0.53
259.77 125.86 169.92 269.96 1273.89 1291.44 2050.50 107.43 201.23 229.67 39.80 33.05 217.62 374.48 173.24 133.88 48.06 80.70 48.62 44.00 77.08 89.30 218.62 275.31 207.61 171.13 57.60 148.32 119.33 217.35 178.70 97.38 70.25 112.78 423.21 83.68 285.22 53.48 119.74 42.77 94.67 150.55 47.79 271.16 139.24 55.21 147.86 83.89 109.98 117.90 66.31
190.57 81.11 132.27 143.95 909.70 924.51 931.75 84.02 163.31 149.16 30.13 22.85 173.57 235.21 117.00 108.02 31.46 64.38 41.45 30.43 61.27 72.16 149.02 215.40 156.22 137.45 35.08 118.62 88.24 136.06 146.84 76.41 52.83 72.92 176.25 50.35 162.71 42.57 101.06 33.20 70.73 114.48 16.57 186.00 109.28 43.97 102.75 59.07 77.50 96.26 49.43
COMMODITIES Gold.............................................................1205.15 Silver ..............................................................14.27 Brent Crude ...................................................76.50 Krugerrand.................................................1210.80 Palladium....................................................983.00 Platinum.....................................................790.00 Tin Cash Official.......................................18965.00 Lead Cash Official......................................2085.50 Zinc Cash Official.......................................2436.00
8.45 0.10 -0.77 -10.20 1.00 16.00 -115.00 0.00 34.00
CREDIT & RATES
Copper Cash Official..................................5850.00 Aluminium Cash Official ..........................2046.00 Nickel Cash Official ...................................12415.00 Aluminium Alloy Cash Official ..................1530.00 Cocoa Futures............................................2288.00 Coffee 'C' Futures.........................................102.50 Feed Wheat Futures ....................................174.00 Soybeans Futures Continuation Contract ...831.00
90.00 -16.00 0.00 0.00 -22.00 0.30 -1.25 4.20
BoE IR Overnight.........................................0.750 BoE IR 7 days..............................................0.750 BoE IR 1 month ...........................................0.750 BoE IR 3 months.........................................0.750 BoE IR 6 months.........................................0.750 LIBOR Euro - overnight..............................-0.447 LIBOR Euro - 12 months..............................-0.216 LIBOR USD - overnight..................................1.918 LIBOR USD - 12 months ...............................2.849 Halifax mortgage rate ................................3.990
0.00 0.00 0.00 0.00 0.00 -0.01 0.00 0.00 0.02 0.00
Euro Base Rate ...........................................0.000 Finance house base rate .............................1.000 US Fed funds...................................................1.91 US long bond yield .........................................3.11 Euro Euribor...............................................-0.376 The vix index................................................14.88 The baltic dry index.................................1484.00 Markit iBoxx EUR ........................................229.11 Markit iBoxx GBP .......................................323.88 Markit iBoxx USD .......................................237.04
0.00 0.00 0.00 0.05 0.00 0.23 7.00 -0.21 -1.18 0.24
WORLD INDICES Price Chg %chg FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7277.70 -41.26 -0.56 FTSE 250. . . . . . . . . . . . . . . . . . . . 20209.61 -73.88 -0.36 FTSE All-Share. . . . . . . . . . . . . . . . 4022.00 -20.34 -0.50 FTSE AIM All-Share . . . . . . . . . . . . . 1100.32 -3.49 -0.32
Price Chg S&P 500 . . . . . . . . . . . . . . . . . . . . . 2871.68 -6.37 Dow Jones I.A. . . . . . . . . . . . . . . . 25916.54 -79.33 Nasdaq Composite . . . . . . . . . . . . 7902.54 -20.18 Xetra DAX . . . . . . . . . . . . . . . . . . . 11959.63 4.38
%chg -0.22 -0.31 -0.25 0.04
Price CAC 40 . . . . . . . . . . . . . . . . . . . . . . 5252.22 Swiss Market Index. . . . . . . . . . . . . 8843.11 ISEQ Overall Index. . . . . . . . . . . . . 6646.34 FTSEuroﬁrst 300 . . . . . . . . . . . . . . . 1459.77
Chg 8.38 24.39 -47.24 -0.25
%chg 0.16 0.28 -0.71 -0.02
Price Chg %chg Hang Seng . . . . . . . . . . . . . . . . . . 26973.47 -1.35 -0.01 Shanghai Composite. . . . . . . . . . . 2702.30 10.71 0.40 Straits Times. . . . . . . . . . . . . . . . . . 3134.39 -13.30 -0.42 ASX All Ordinaries . . . . . . . . . . . . . 6252.30 -15.50 -0.25
MONDAY 10 SEPTEMBER 2018
Use the spoken word as a route to profit Smart entrepreneurs are using public speeches to reach millions across the world Alex Merry
However, there’s a new wave of entrepreneurs who are speaking smarter, both with the content and the platforms where they share their thoughts.
REAL TALK TED Free
HY DO poor people make such poor decisions?” That was how historian and economist, Rutger Bregman opened his TED talk before arguing the case for a universal basic income as a solution to end poverty. And my god, it was refreshing. Audiences have become numb to entrepreneurs using conferences to pitch their businesses or (worse still) tell their life-story in the hope that it will “inspire others”. Public speaking has always been an effective way of growing a business. But with every Tom, Dick, and Sally given stage-time in a booming conference industry, and paid speaking opportunities becoming more scarce, it’s getting increasingly difficult to justify the effort involved. Beyond the ego trip and small injection of Twitter followers, that is.
To start, rather than spending large chunks of stage time introducing themselves and justifying why they have been asked to speak (after all, that is what the compere is for), they immerse the audience in their subject matter from the word go. Like Steve Jobs, Elon Musk, and Jeff Bezos, they don’t speak about their industry, they speak for it. And by doing so, position themselves and their companies as visionary and pioneering. This is a really smart way of building a brand, regardless of what stage the business is at, because it showcases both expertise and ambition. The other thing that you’ll notice is that their content will be as relevant in five years time as it is today. Attend a conference to speak about current trends, and it is out of date by the time you’ve crafted the talk. That’s not why they’re doing it though – they’re doing it because the public speaking landscape has completely changed.
Like Steve Jobs, Elon Musk, and Jeff Bezos, they don’t speak about their industry, they speak for it
THE RIGHT MOUTHPIECE
In 2006, a conference company called TED decided to upload its speakers’ talks to YouTube, and in doing so created the information age’s new currency – ideas. What’s really interesting, though, is the online growth of its community initiative, TEDx. It took them seven years to reach one billion views online, and just a year to double it. Entrepreneurs realised that the live audience is minimal relative to the potential viewership online. Why waste time going from conference to
Get ideas for your own public speeches (or simply learn a cool fact to quote around the water cooler) by listening to the entire back catalogue of TED Talks available through this app. With more than 3,000 talks in its library, plus videos and podcasts, you’ll be kepy entertained during your commute or lunch hour.
conference, when you can speak just once and potentially reach millions of people across the world? Tie that in with a strategy to get the talk seen by the people that it was designed for, and not only does it become an incredible asset to create change, but a lucrative one as well. I’ve seen £10m investment deals created, book deals, and even marriages come from delivering an incredible talk and putting it online. It is the most effective public speaking strategy of all.
There is a longer game at play here. The most forward-thinking organisations are now embedding public speaking into their company culture to cultivate thought-leadership, build self-belief, and strengthen teams. Public speaking skills are used in meetings and AGMs, creating leaders within organisations. So it’s not just the finance that is transformed, it’s the people too. Be more than your job title and become a leader, inspiring colleagues and beyond to create change. There’s no definitive way to say what method is right or wrong, each individual has their own flair. As the saying goes, practice makes perfect. £ Alex Merry is a public speaking expert. He has launched an online public speaking course at alex-merry.com.
MONDAY 10 SEPTEMBER 2018
EDITED BY KATHERINE DENHAM
The voices of reform must be heard over Brexit brooding
’VE NEVER played for a draw in my life.” That was the clarion call from the legendary former manager of Manchester United, Sir Alex Ferguson. And it’s a message to consider as the autumn term for business and the body politic begins. If ever there was a need for a new chapter of courageous capitalism to lift the spirit of the nation, it is now. So much of the summer discourse about Britain’s future beyond Brexit has felt like the search for the safety of a single point from a draw, rather than three points from a win. When you speak to many in government, the air of exhaustion seems ever-present. While hands are tied on anything that is not related to Brexit. The mantra is that all of the nation’s political energy is being ploughed into Brexit at the expense of anything else. The consequence being that these are halcyon days for the “computer says no” brigade. I was part of the team that established StartUp Britain as part of an urgent attempt to embolden the national fibre with a can-do message in the face of falling startup rates. From 2011 to 2016, startup rates grew year-on-year. But they suffered a considerable setback in 2017 with a 10 per cent decline in new business creation. It’s exactly the sort of issue that we can’t afford to paper over, and it needs attention. That means new policy prescriptions, and we shouldn’t give the
lack of them a free pass. On matters of Europe, very soon – and forgive the Noel Edmonds pun – we will face deal or no deal. Irrespective of the advantages or dangers of either, we still have to face the nation that we have become and will become under our own steam. The danger for this government is that it somehow manages to bring the ship through the storm, but is too exhausted to get it into port. But alongside our long summer of Brexit battles there have also been some interesting signals that could avoid the need to launch the life boats. While Theresa May’s trip to Africa might rightly be recast as the political equivalent of the Noisettes’ song “Don’t upset the rhythm”, it also contained a significant speech in Cape Town about the reforming zeal that capitalism could deliver to the continent. “In those countries that have successfully embraced properly regulated market economies, life expectancy has increased and infant mortality fallen. Absolute poverty has shrunk and innovators have developed technology that transformed lives,” May said. It’s a message she needs to bring home to these shores, and if she needs to hit the dance floor to do it, all the better. Last week, health secretary Matt Hancock gave one of the most uplifting speeches on the future of public services that we’ve heard for a long time. He portrayed the NHS not as vic-
The danger for this government is that it brings the ship through the storm, but is too exhausted to get it into port tim, but as a technology-enabled architect of its own future. “Now is the moment to put the failures of the past behind us, and set our sights on the NHS being the most cutting-edge system in the world for the use of technology to improve our health, make our lives easier, and make money go further,” he said. But these voices of reform are quiet compared to the brooding voices that are fixated on Brexit. Under this noise, we risk drown-
ing out the signal that, whatever our views on the rights and wrongs of the decision, it would be nothing short of a national tragedy if we came out of these negotiations worse rather than better as a nation. I read “Limitless” by digital marketer Ajaz Ahmed over the summer, and in it he spells out the vision that courageous organisations share: “An excitement for the future you can see. An invitation for others to join the adventure.” And that is also what courageous capitalism has to embody. To do this, we need many more eyes on the horizon beyond Brexit. Because it’s really so much more than the technicalities of our future trading relationship with the European Union. It speaks to how ready we are for a world where change has become the new normal. From the way we work to the way we live, future generations will look back and probably see us as a nation that had tough decisions to take, but also one that had plenty of choices about how it chose to adapt to the pace and challenges of change. It’s why we really can’t play for the draw. Capitalism needs to show its courage as a reforming and progressive force that can bring about change for the good. That’s the key to the win and it’s this autumn where the shots on goal really do have to count. £ Michael Hayman MBE is co-founder of Seven Hills and co-author of Mission: How the Best in Business Break Through.
The City has come a long way since the crash, but we can’t afford to be complacent
HIS week marks the tenth anniversary of the collapse of Lehman Brothers – a shock that reverberated around the global financial system, and which will be seared in the memories of many workers across the City. Substantial progress has been made to raise standards across the sector, eradicating the unacceptable practices that led to the crash. However, the legacy of the financial crisis has had a long-lasting impact on our economy. While unemployment in the UK is near a record low, legitimate concerns have been raised about low productivity, stagnating wages, and geographical divides. A new paper published last week by the Institute for Public Policy Research’s Commission on Economic Justice – which the City of London Corporation funded and supported from its outset – looks at how the UK can strengthen the economy for
the benefit of people and businesses across the country. The final report, “Prosperity and Justice: A plan for the new economy”, is an important contribution to the public debate about the challenges facing the UK economy. The City of London Corporation wants an economy that works for everyone. That is why we welcome so many of the Commission’s recommendations – particularly those focusing on increasing productivity, improving diversity, and developing skills. The report finds that countries like the US and Japan have successfully created industrial hubs nationwide, which have bolstered their local and national economies, simultaneously enhancing export opportunities. The report suggests that mirroring this in the UK, centred around university towns, would likely create more jobs right across the country. Last year, the City of London Cor-
poration launched a regional strategy to help bridge the gap between London – the world’s leading financial hub – and other UK cities. This year, the regional strategy was doubled in order to ensure that the UK can continue driving up exports, raising productivity and addressing regional imbalances. The report also suggests that bolstering diversity in the workplace and on boards would contribute to creating better governed, more effective companies. There are a number of initiatives in the financial sector that are already working towards this goal, such as the Women
in Finance Charter, and the Social Mobility Employer Index. Finally, the report suggests that the current apprenticeship levy should be replaced with a productivity and skills levy, which would serve to remove any bureaucratic and inflexible elements of the current funding available. Instead, it would identify areas where skills need to be improved, and provide training in these areas to raise productivity across the country. These recommendations come at a time when the City should reflect on the progress made since the financial crisis – and recognise that more work still needs to be done. We cannot afford to be complacent. We want an economy that is fair, inclusive, and prosperous for all. The Commission’s report is a good starting point. £ Catherine McGuinness is policy chairman at the City of London Corporation.
LETTERS TO THE EDITOR
Bittersweet energy [Re: Ofgem is set to cap energy bills] Saving households £75 in the face of the raft of rises that consumers have faced in recent years is a bittersweet gift. The national energy infrastructure is creaking and patently unfit for the future. We already know that the National Grid is unable to meet the government’s drive for electric cars, and that there are still too many people across the country who live with patchy energy supply. The real question is: what is the energy sector going to do to address the longterm increase in fuel costs? And how are they driving up the service that they deliver? All too often, energy companies announce these “feel-good” measures, while simultaneously, quietly brushing under the carpet another set of “efficiencies”, which in their vernacular simply mean cuts. The energy sector needs to fundamentally look at their businesses. They need to ask themselves if doing okay is enough for them, for their customers, and for the industry as a whole. Then they need to ask how they are going to provide a service that is fit for the future, at a cost that’s reasonable – as well as being focused on their end consumers. Chris Proctor, chief executive, Oneserve
BEST OF TWITTER So it turns out Boris Johnson is a fan of the single market after all. @MrKennethClarke . @British_Airways data hack was a two-week-long robbery. Criminals are responsible. But BA must admit if hackers exploited a known vulnerability, and show how robust its protection of customers and our data really was. @declancurry About that “protecting its personality”... To me, Foyles has its own personality because it stocks different books than Waterstones. If they centralise buying across Foyles and Waterstones, then Foyles loses its personality and is nothing more than a name. @LisaLibros I’m obsessed with the Karen Bradley interview, it’s the political equivalent of going “alright, I'm really going to be honest, I'm going to be me” on a first date and straight up opening with your parents’ divorce @youngvulgarian The Karen Bradley interview is hilarious but as someone whose job depends on people starting off not knowing things I am here to tell you that not knowing things is ok. Except not knowing when you should not admit to not knowing things, which is not ok, but she didn't know that. @ProfChalmers
MONDAY 10 SEPTEMBER 2018
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Business can reap the rewards of longer life, but only if we avert the looming care crisis
HAT everyone is living longer is a fantastic achievement. Not just for individuals, but for society. We have seen incredible advances in life expectancy – and in 15 years, the UK will have 1.2m more people aged 85 than today. But there is no point living those extra years if we spend them in poor health, or managing a disability that could have been prevented. Today, a 65-year-old can expect to spend around a decade of later life in poor health, and research published last week shows that there will be a million over-65s requiring round-theclock care by 2035. There is also a shameful gap in healthy life expectancy between rich and poor. People living in areas like Kensington and Chelsea can enjoy on average 18 more years of good health compared to people in places like Blackpool or Manchester. Good health is fundamental to quality of life. It allows us to work, stay socially active, and do things that we love. The government has stated its ambition to ensure that people can enjoy “five extra healthy, independent years of life by 2035”. Doing this will require transformative action and a strategic, forwardthinking approach to healthy ageing. There are three areas where we need to act. First, we can reduce the time people spend dependent on care by helping them be healthier in mid-life. That means bolder, faster action needs to
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be taken on four of the biggest contributors to ill-health in later life: physical inactivity, poor diet, smoking, and alcohol. Second, when people experience a sudden decline in health and end up in hospital, they need support to keep active and prevent loss of functional abilities, such as using the toilet unaided. Using Helpforce volunteers to get patients moving in wards has huge potential. Community-based services must do more to support people discharged from hospital in order to reduce their chances of being re-admitted and to prevent spiralling care needs. Part of the challenge is tackling ageist attitudes among health professionals, some of whom believe functional decline is a normal part of
Part of the challenge is tackling ageist attitudes among health professionals
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ageing that can’t be prevented. This misconception may prevent a focus on rehabilitating older people, reducing their chances of recovering to live independently. Finally, we need to recognise the role our environment plays in helping us to maintain our functional ability. This could mean installing a walk-in shower so we can continue to wash without help from a care worker. It could require adjustments in the workplace so we don’t have to stop working. Businesses must wake up to the economic opportunities of longer lives. Over-50s households contributed half of consumer spending in 2016, some £473bn. And enabling people to be in fulfilling work for longer provides increased tax revenues and lowers the welfare bill by reducing spend on out of work benefits. Halving the employment gap between workers aged 50 to state pension age and those in their late-40s could boost nominal GDP by one per cent (up to £20bn per year). We need products and services that are inclusive and help older consumers to stay independent. By supporting people to be healthy as they get older, regardless of where they live or what their background, we can enable more people to enjoy extra years living happy, healthy and independent lives. And we might just avert the social care crisis. £ Dr Anna Dixon is chief executive at the Centre for Ageing Better.
DEBATE With pension transfers said to be too generous, should people be allowed to cash out of defined benefit schemes? For most people who have built up valuable pension rights in a salaryrelated pension scheme, leaving their rights in the scheme will be the best thing to do. But for those who want more flexibility, taking a cash transfer gives them additional options. For example, you could potentially retire a bit earlier and live off the transferred pension pot until you reach the age when you can start receiving payments from your state pension. As long as the transfer value is fair to all parties, cashing out is a freedom that should be protected. The regulator has warned that some schemes may be offering transfers that are too generous, but this will only be a
No, people shouldn’t be allowed to cash out of defined benefit schemes. In reality, that’s a qualified no, because it’s not the financially-savvy members we should be concerned about, but those who are not well placed to consider the comparative benefits. Many members are getting a (potentially large) immediate cash benefit in exchange for the longer-term security of a defined benefit pension, without exploring how else they provide for their income in old age. It’s far easier for people to see their short-term needs (and the problems that this cash windfall would solve), than to consider what tomorrow might bring. The shift in our pension systems from
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YES STEVE WEBB
problem if the sponsoring employer goes bust. So while it is right that pension trustees make sure that they are being fair to all members – meaning those left behind and those transferring out – it would be draconian and unnecessary to block all transfers on the basis of this very specific concern. £ Steve Webb is director of policy at Royal London.
NO KAREN PARTRIDGE
paternalistic defined benefit to freedom and choice has happened with little consideration of how we educate people about the enormous shift in responsibility to them as individuals. There will be a cost for society to bear – and we need to wake up to that while we’re still able to do something about it. £ Karen Partridge is head of client services UK and Australia at AHC.
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MONDAY 10 SEPTEMBER 2018
MARKETING Luke Graham explains why advertisers are now trying to make you mad
ARNING: this article may make you angry. We know that advertising is all about evoking an emotion to make consumers feel a certain way about a product. You may think that making people happy or excited is the best way to make them buy, but marketers are realising that the most powerful tool at their disposal is something completely different: outrage. Sparking outrage may seem counterintuitive when trying to sell or promote a product, but to paraphrase Oscar Wilde, the only thing worse than being talked about is not being talked about. And outrage gets people talking, or at least noticing. “Studies tell us that 84 per cent of advertising is not noticed,” says Will Hanmer-Lloyd, head of behavioural planning at Total Media. “One thing you can say about advertising which causes outrage is that it usually gets noticed. It can earn a lot of media value, as people share the advertising across social media. Whether people applaud or condemn the ad, it’s still reaching a wider audience.” Obviously, content that taps into our emotions is more effective than blandness. And, of all our emotions, anger is the most effective at getting content shared. A 2009 study by the University of Pennsylvania found that content which evoked anger was 34 per cent more likely to be shared, compared to that which was awe-inspiring (30 per
One thing you can say about outrage is that it usually gets an ad noticed cent) or anxiety-inducing (21 per cent). Content that made people sad was 16 per cent less likely to go viral. Anger is a “high-arousal” emotion – it agitates us into doing something, such as leaving an angry comment online. Positive content leads to consensus (no one argues over pictures of cute cats), but anger provokes arguments and disagreements. Visible arguments, like ones on social media, draw in bystanders as people argue opposing views. This creates an “outrage cycle” – people share the thing they’re annoyed about, leading others to see it, and then sharing their annoyance with yet more people. For marketers, if provoking outrage creates the most engagement – which is crucial online, because customers who are more engaged with a website are exposed to more ads – then anger becomes the most profitable emotion.
PROFITING FROM OUTRAGE
There are many reasons why someone might feel outrage because of an ad, especially if it contains content designed to offend a person’s values, target something they hold sacred, or seem like a personal attack on an identity. And there’s no shortage of examples. Just this year, we’ve had Heineken pull a TV ad amid accusations of racism, because it showed a barman
ANGER-INDUCING ADVERTS slide a beer past three black people before stopping at a lighter-skinned woman, with the tagline “lighter is better”. In 2017, Dove pulled a social media advert for its body wash which appeared to show a black woman transforming into a white woman, supposedly after “cleaning” herself. While both brands publicly apologised, stating they had “missed the mark” and saying the offense hadn’t been deliberate, the ads were widely talked about, driving up engagement with the brand. The damage of accusations of racism was seemingly offset by increased publicity – although it’s hard to measure whether higher publicity directly leads to more sales. It would seem that controversy is no barrier to success. Protein World’s “Beach Body Ready” ad in 2015 was accused of sexism and body shaming for featuring an unrealistically skinny model in a bikini – regulators received hundreds of complaints about it. Despite this, the company claimed that the campaign generated £1m in sales in the days after it launched, thanks to the signal boost created by social media outrage.
Some brands take this a step further and purposefully try to provoke outrage. Challenger brands often use controversial ads to set themselves apart from established ones and break into the public conscious.
“If being provocative and controversial is based on a clearly defined brand strategy, it can be extremely powerful, especially for challenger brands,” says Fergus Hay, chief executive of Leagas Delaney. Think of beer-maker BrewDog. It has orchestrated a string of over-the-top publicity stunts, including creating a parody porn website for beer, or the company founders dressing up as sex workers for a crowdfunding ad – which was criticised for mocking trans women, sex workers, and homeless people all at once. Its latest campaign Nike’s latest advert featured NFL player Colin Kaepernick trolls rival brands by highlighting the low customer review scores for Carling, Budweiser, and Fosters beers. While BrewDog recently promised to tone down its “shock tactics”, these controversial campaigns play into its attempt to create an identity as a subversive and rebellious brand. “The world is full of sensible brands doing sensible things,” says Jamie Williams, a partner at creative agency Isobel, which is behind the latest BrewDog campaign. “That’s why so much advertising is essentially wallpaper. Nobody sees it
and nobody talks about it. Cutting through and getting noticed is everything, and being provocative and firing up a debate is a pretty good starting place for brands.”
A POISONED CHALICE?
But being provocative is a dangerous game, and can backfire if it’s not authentic to the brand’s identity – customers may expect a tongue-in-cheek company like BrewDog to be controversial, but perhaps not another brand. “If being controversial is simply being used as a tactic to secure press and social media coverage without any substance or strategy beneath it, then it’s a waste of resources and damages brand credibility,” warns Hay. And controversy isn’t an infinite resource. A brand may initially set itself apart by being juvenile or outrageous, but use shock tactics too often and customers will come to expect it and see it as more of a gimmick. “An offensive ad can lose you existing customers if they feel the campaign is a betrayal of the brand,” says Hanmer-Lloyd. “The other downside to this kind of attention seeking is that people will get bored, or realise it’s just clickbait, and start to ignore it entirely.”
There’s more than one way to use outrage as a tactic. Rather than provoking a reaction, some brands try to channel public anger against a social or political issue in order to gain consumer attention. “Whether it’s anti-Trump, Black Lives Matter, G20, or Grenfell, ac-
tivism is a way for people to connect,” says Jonathan Trimble, chief executive of 18 Feet & Rising. “Consumer brands have noticed and, hungry for those all-important campaign shares, are trying to adopt similar stances.” This path is also fraught with danger. Brands that piggyback on a cause they don’t genuinely believe in will get found out, and outrage will be directed back at the brand. “When marketing teams bolt-on a social cause, they can end up walking the brand into a hornet’s nest of public reaction,” adds Trimble. Think of Nike, which last week launched a campaign featuring US football player Colin Kaepernick, who has protested against police brutality by kneeling during the national anthem before games. While some praised the ad, others condemned it on social media (including President Trump) and posted pictures and videos of themselves destroying Nike products. It’s too early to say whether sales from anti-Trump supporters of the Nike ad will offset boycotts from critics. Outrage is a dangerous tool. It can set your brand apart from the crowd, but go too far, and you’ll alienate your consumers and burn your credibility. Sadly, the outrage movement isn’t slowing down anytime soon. As long as social media plays a major part in our everyday life, the “outrage cycle” will continue to play out, and marketers will profit from our anger. And if that thought makes you angry, please share this article with your friends and family.
MONDAY 10 SEPTEMBER 2018
THAT’S A WRAP
ONDON’S food scene attracts all sorts. Whatever you desire, it’s not hard to find someone who’s cooking it, fusing it with other cuisines, or serving it alongside an artisanal craft beer. From pop-ups and market stalls, to Michelin-star restaurants, the capital is a hotbed of culinary creation. One such company is Mexican-foodmaker Tortilla. 2018 marks its 10-year anniversary, and since opening its doors the chain has grown beyond London. It now has over 40 locations across the UK, including several franchises in the Middle East. Tortilla was founded by Brandon Stephens, who had moved to London from San Francisco to study. Dissatisfied with the lack of decent burritos and tacos in the capital, he decided to start his own company serving Mexican food with a Californian twist, and opened his first store in Islington in 2007. The concept proved popular and, after teaming up with a private equity business in 2011, Stephens was able to grow the startup and open additional sites around London. But taking the company to a new level proved a challenge, and eventually Richard Morris was brought in to run the business from 2014 as Tortilla’s managing director. “Brandon realised that he was not necessarily the person with the skillset to take it to the next stage,” Morris says. “We had 10 or 11 sites when I joined. He was managing to hold the whole thing together by being involved in every aspect of the business. Truth be known, he was absolutely shattered.” Morris has 20 years’ experience in
the food sector, working with the likes of TGI Fridays and The Rainforest Cafe, and was managing director of seafood restaurant chain Loch Fyne from 2000 to 2011. He explains that growing a scaleup business requires a different skillset to launching a startup, such as being able to delegate and allowing people to make their own decisions. “To Brandon’s credit, he realised that what he’d done was fantastic, but to make it successful going forward he needed to bring somebody in who had been there and done it. We got on extremely well immediately, and he still sits on our board today. “It’s a nice story, because generally when founders work alongside chief executives of their business, it doesn’t always work out, but so far so good in our situation,” Morris adds.
Luke Graham speaks to the boss of taco chain Tortilla about its 10-year anniversary
TIME FOR TACO-WAYS
BURRITOS MEAN BUSINESS
Upon taking charge, Morris made key changes to the business. He brought someone in to examine Tortilla’s supply chain, and streamlined the number of suppliers from hundreds of small, local suppliers to a handful of larger ones. “We created economies of scale, because we were buying good volumes on things, so immediately our food and drink costs started to get better.” Morris also faced some legacy issues. There were several other people who’d been involved with the company while it was a startup, who weren’t necessarily able to help take Tortilla to the next level. “They were all really good people, but they were all very much startup guys. We never fell out, but as it stands now, there are none of those
guys still in the business. We’re all still mates, we still see each other, but there were certain structures and disciplines that needed to come into the business,” he says. According to Morris, when people start a business, they tend to become emotionally attached to it, which makes it harder for them to make the difficult decisions that often need to be made. “It was a natural course of people moving on and me bringing in people who had experience of running slightly larger businesses, and who were perhaps slightly more emotionally detached from it and able to make more business-like decisions – as well as making sure we didn’t lose the culture and the family-feeling.”
We’ve embraced delivery. A lot of other businesses have tried to push against it.
Tortilla is operating in a cutthroat market. The casual dining sector has been in free-fall for months, and left a trail of high-profile casualties: Jamie’s Italian, Strada, Prezzo, Byron and more have all had to close dozens of their restaurants. “The casual dining market was simply over-cooked. There were too many people out there doing roughly the same thing, and all at similar price points. I think burger chain Byron opened potentially too many sites too quickly. Jamie’s Italian and Prezzo probably did the same thing. They all expanded very quickly,” says Morris. But Tortilla has avoided the slaughter and is trading well. Group sales increased by 20 per cent in 2017, exceeding £30.4m. Morris attributes the success down to the versatility of the product, which offers lots of choice to how consumers build their
burrito, as well as the space in the market for Mexican food, where there is less competition compared to burgers or Italian food. “It’s still quite a differentiated offer, even though it’s been around for a while – Mexican food is still cool and relevant. The product is really popular.” The brand has also found success by embracing the food delivery culture that has grown rapidly in the last couple of years, with Just Eat and Deliveroo becoming hugely popular with consumers. “We’ve embraced Deliveroo and delivery generally. A lot of businesses have tried to push against it. We know that people want to have restaurant food in their own homes and dining rooms,” says Morris. To cope with this growing demand, Tortilla has started launching miniature stores in built-up office or residential areas that are designed to cater to takeaway orders. The first one was opened in Putney in November and is only 700 square feet. “Delivery costs eat away at our profit margins, because you’ve got to pay for them to deliver the food. But because our costs going into these businesses are lower – we’re paying less rent and less capital expenditure because the places are smaller – it works incredibly well for us,” he says. Morris has outlined more things he wants to change at the business, from increasing customer interaction to improving evening sales. The brand is still expanding, with plans to add more locations around the UK and elsewhere. As Tortilla celebrates its tenth year, it’s clearly added plenty of spice to London’s food culture.
MONDAY 10 SEPTEMBER 2018
TRAVEL HOURS IN...
WINGING IT IN KENYA
LIVERPOOL SPONSORED BY
WHERE TO STAY
Presiding over the Kings Dock on Liverpool’s iconic waterfront and right next door to the Echo Arena, ACC and Exhibition Centre, Pullman Liverpool is stylish and central, with a gym, friendly staff, complimentary 5G Wi-Fi and views across the city skyline. Visit pullmanhotels.com
Sarah Gilbert takes to the skies to explore this African nation’s most vital conservation efforts WHERE TO GO
Head to the historic Albert Dock just five minutes away for year-round popup events and festivals, or simply stroll around the quayside’s many shops, restaurants and museums, including the world’s largest exhibition dedicated entirely to The Beatles. Visit albertdock.com
WHERE TO DRINK
Sample new wines, rare vintages and specially selected red, white and rose with Vinoteca By Pullman, an innovative wine dispensing machine at Pullman Liverpool that allows guests to try premium wines by the glass. If you prefer whiskey, gin or jazz, try and find the secretive speakeasystyled Berry & Rye, hidden behind an unmarked black door on Berry Street. Visit facebook.com/Berry-and-Rye
WHERE TO EAT
Book a table at Marco Pierre White’s recently opened Wheelers of St. James for relaxed fine dining, an excellent wine list and a mouthwatering menu offering Marco’s take on seafood classics such as seared Sea Scallops and Black Pudding. Visit mpwrestaurants.co.uk
aving seen off a smaller – but still enormous – bull, alpha elephant Jager made a beeline for a young female on heat and mounted her without preamble. Their far-fromprivate coupling was over as quickly as it began, but the rest of the herd continued to circle them, ears flapping, trumpeting loudly with excitement, while our small group sat dumbstruck in the midst of this tumultuous celebration. It was a spectacular finale to our morning in Samburu National Reserve in northern Kenya. “Sit quietly,” whispered our Samburu guide, “and they’ll come to us.” And they had. The fuzzy-haired, week-old calf that stood under its mother’s stomach to feed, two teenagers engaged in a play fight, and the testosterone-fuelled male in musth that came a little too close for comfort. We saw all this and more. Samburu was the third stop on Scenic Air Safari’s Endangered Species Flying Safari. It was no ordinary bush plane. Our Cessna Grand Caravan was fitted with just eight fully rotating and reclining leather seats and large panoramic windows to frame the stunning landscapes, and it transported our small group in style around Kenya’s iconic national parks and reserves. And it was no ordinary safari. The focus was firmly on frontline conservation efforts to preserve vulnerable and endangered species and it was giving us unrivalled access to key conservationists. We were in Samburu to meet Saba Douglas-Hamilton and Frank Pope of Save the Elephants (STE). According to the Great Elephant Census, more than 100,000 African elephants were slaughtered between 2007 and 2014 and despite an international ban on ivory trading coming into force in 1989 – followed by a Chinese ban in 2018 – illegal trafficking is still big business. But at the long-running Samburu Elephant Project, working closely with the local communities and state-of-the-art technology developed by Microsoft’s Paul Allen, is key in the fight against poaching. STE is a pioneer in tracking, designing and testing the first ever elephant collars; now they can map the routes of dozens of
elephants, providing insights into elephant habits and just how far they travel in search of food and safety. They can also pinpoint areas where elephants and people coexist, preventing clashes with a variety of innovative techniques, including beehive fences – these colossal pachyderms are apparently afraid of bees. Tourism, too, is playing its part. “Tourism is an economic driver to protect the elephants,” Frank told us. “When we create employment here, we show people the benefit of conservation and create elephant ambassadors at the same time.” Our first stop was the Maasai Mara, the northern extension of the Serengeti and a seemingly endless, undulating savannah, renowned for the great spectacle of the wildebeest migration with predators in hot pursuit. There wasn’t much left of the zebra by the time we arrived. Ten lion cubs circled its carcass, heads down, bottoms bobbing, to the unforgettable sound of teeth crunching on bone. Oblivious to our presence, two adult females lounged in the shade with full bellies, while a third grizzled and growled as she tugged at the last few morsels. While we were lucky enough to spot just over 30 lions in our day-long game drive, in the last 20 years Africa’s lion numbers have dropped dramatically to an estimated 20,000. Over a bush breakfast, ‘lion man’ David Mascall, the former curator of an orphaned lion programme in Nairobi who’s spent 30 years in the Mara, explained that the main threat to lions are humans. “Livestock is hugely important to the pastoralist Maasai communities that surround the Mara, both economically and socially, and where bush meets grazing land there are losses on both sides – lions kill livestock and villagers kill lions in retaliation. Engaging their support is vital to conservation success.” To that end, Mascall has developed solarpowered, flashing predator deterrent lights, known as lion lights, to install around cattle enclosures. Also joining us on our game drive was the ebullient Dr Elena Chelysheva, a Russian
NEED TO KNOW Ultimate Travel Company (theultimatetrave lcompany.co.uk, 0203 733 9683) offers a nine-day Endangered Species Flying Safari, from £7,862 pp based on two people travelling as part of a small private group, inc. flights from the UK, private camp-tocamp flights in a Cessna Grand Caravan, fullboard accom, expert talks in each camp and private game viewing activities.
zoologist with more than 30 years experience of captive and wild cheetah ecology and behaviour. The Maasai call her Mama Duma – Mother of Cheetahs – and as head of the Maru-Meru Cheetah Project, she’s out in the field every day. It’s estimated that there are only around 7,000 of the world’s fastest land mammal left worldwide and 65 of them are in the Mara, and we soon came across the Five Musketeers, a coalition of young male cheetahs sprawled on a termite mound surveying their terrain. “Cheetahs face a complex range of threats,” Elena explained, “including habitat loss, prey depletion, hunting, poaching and human-wildlife conflict – they’re often mistaken for leopards who kill livestock. They also lose their cubs to lions, leopards and hyenas; in fact 75 per cent of cubs die within three months. They’re in a race for survival but our aim is to secure their habitats through scientific research, and community outreach and education.” We left the savannah, crossing the craggy peaks of the Great Rift Valley, flying low over a string of jewel-coloured lakes, including Lake Nakuru, where hundreds of vibrant pink flamingos took flight rippling the turquoise water’s mirror-flat surface, and over the fertile slopes of Menengai
MONDAY 10 SEPTEMBER 2018
The exterior of the Wife of Bath; A dish from the downstairs tapas restaurant; One of its guest rooms
THE LONG WEEKEND
THE WIFE OF BATH WYE, KENT Steve Dinneen on the perfect foodie weekend just outside London
THE WEEKEND: Kent is a mere hour’s train ride from central London but can feel a million miles from the stress of city life. Over the last decade the county has been steadily building a reputation as a fine dining destination, as befits one of the most produce abundant areas of the UK. Here’s how to indulge in the perfect weekend away, staying overnight at the wonderful Wife of Bath in Wye.
crater, one of the world’s largest calderas. Our next stop was the pioneering Lewa Wildlife Conservancy. It began life as a cattle ranch before becoming a privately owned rhino sanctuary in the early 1980s. Today, it’s a model for successful conservation, balancing human use and the protection of wildlife and wilderness. It supports the surrounding communities with progressive farming initiatives, education and healthcare, as well as focussing on protecting endangered species, including the construction of an elephant corridor for migrating pachyderms. Zebra may not appear to be in short supply, but the stocky Grévy’s zebra – the largest of the wild equids – is endangered according to the IUCN Red List, and Lewa is home to 14 per cent of the remaining wild population in East Africa. On a game drive across the conservancy’s stunning landscape – forests of yellowbarked fever trees, marshland and granite peaks – Mary Mwololo, Lewa’s Research Manager, explained that Grévy’s have a different social structure to the more common Burchell’s zebra, with adult males living in splendid isolation, making them more vulnerable to predators, especially lions. Lewa also has a very successful Rhino Conservation Programme, including 87 criti-
cally endangered black rhino and 79 white rhino. Security is the main concern and Lewa’s operations centre is manned 24 hours a day, with rhino rangers, militarystyle anti-poaching units and close cooperation with local communities who are the first line of defence against poaching. “Rhinos have distinct personalities. They’re passionate, sensitive and very intelligent,” rhino scientist, Ian Lemaiyon told us, as we watched three white rhinos happily hoovering up grass. “We haven’t lost a rhino since 2013 but protecting and nurturing them takes up to 50 per cent of our annual budget. Along with donations, tourism provides valuable income, as do our rhino naming and adoption schemes.” In just over a week, I’d not only travelled in grand style – with breathtaking wildlife encounters matched by equally stunning scenic flights – I’d seen and learnt an enormous amount. Accompanied by knowledgeable and engaging local guides and wildlife experts, I’d realised that there’s no one-size fits all solution to the myriad threats facing Kenya’s wildlife. But with community involvement, the dedication and passion of the experts that I’d met and adequate funding, there is definitely hope.
WHERE FIRST? Hop on a Saturday morning, high speed train from Kings Cross to Ashford International, from where the town of Sturry is a short connection away. From here you can walk up to Fordwich, the UK’s smallest community with a town council. It’s an idyllic little place, cut through by the trout-rich river Stour and full of ramshackle cottages with extravagantly sloped roofs. Here you’ll find the Fordwich Arms, a gastro-pub (with the emphasis firmly on the “gastro”), where you can dine on the terrace overlooking the river. You have the option of a full tasting menu for £65, three courses plus assorted amuse bouches for £35 or a la carte, and you can tell as soon as the freshly baked sourdough with home-churned brown butter arrives that it’s going to be good. It’s the kind of place where nibbles are served in wooden boxes or atop a heap of pine needles, or in a bowl of smouldering hay. The menu is modern British, with lots of fish, some excellent lamb and a particularly good ‘hen of the woods’ mushroom number with pickled walnut. THEN WHAT: Next door to the Fordwich Arms is the ancient Church of St Mary the Virgin, which those seeking new experiences can stay in overnight through the Anglican church’s ‘champing’ programme – apparently waking up on a camp bed to sun streaming through stained glass windows is pretty wonderful. But I’d recommend retiring to the nearby George & Dragon pub for an aperitif before jumping back on the same train and taking it to Wye. WHY WYE? In Wye you will find the weekend’s accommodation, the Wife of Bath, a great tapas restaurant and guesthouse, with rooms that form the
centre of the Venn diagram between ‘cosy’ and ‘luxury’. Nice touches include a tiny bottle of sherry waiting by the bed and an ‘honesty bar’ that you can help yourself to 24 hours a day. WHAT’S THERE TO DO IN WYE? After taking a lateafternoon nap, you can wander across the road to the posh, family-friendly pub the King’s Head, which is the kind of lovely, spacious boozer most London neighbourhoods can only dream about. Or, if you’re into ale, there’s a microbrewery called the Barber’s Arms, where you can talk hops with the owner over a pint or two of freshly brewed IPA. GOD, I’M GETTING DRUNK NOW... OK, time for the main event – the tasting menu at the Wife of Bath. The Northern Spanish-inspired dishes use local produce to create interesting takes on familiar classics. Highlights include spiced crab, apple and cucumber in breadcrumbs, local wood pigeon with chicory and spiced cherries, and cod in a cider and saffron broth so decadently creamy it should almost certainly be illegal. The matched wine, including a glass of Ridgeview English fizz (the official tipple of 10 Downing Street) is highly recommended. The simple joy of only having to walk up a single flight of stairs after all that food is unmatched in all of human civilisation, and you will never again have such a great night’s sleep. ANYTHING ELSE? Oh yeah. Sleep in til noon and then get the train over to Folkestone on the coast, where the Wife of Bath owner, top chef Mark Sargeant, has a second restaurant called Rocksalt, serving amazing fish straight from the net. After that round off your weekend with a stroll on the beach and an ice cream if you can find the space. NEED TO KNOW A room at The Wife of Bath costs from £85 a night; go to thewifeofbath.com or call 01233 812232; the restaurant is open TuesdaySaturday and the tasting menu is £70 a head. To book Rocksalt go to rocksaltfolkestone.co.uk or call 01303 212070; To book the Fordwich Arms call 01227 710444.
MONDAY 10 SEPTEMBER 2018
HEN Amazon purchased the UK television rights for the US Open earlier this year in a £30m fiveyear deal, the acquisition seemed like the next stage of streaming giants acting as great disruptors to the established media order. Potentially, Amazon could shape live sports broadcasting in ways that we couldn't yet imagine, much in the same way Netflix and Amazon Prime have influenced television dramas well beyond many observers’ expectations. After all, binge-watching was an alien concept only five years ago, an untitled habit enjoyed by a minority of viewers. It is now a mainstream method of watching content, with seasons of Emmy-award winning dramas like House of Cards and massmarket genre shows like Marvel’s Jessica Jones released by Netflix on one date in their entirety, the emphasis placed on consumer choice. Since Amazon has more than 100m customers on its flagship Prime service, recorded $177.9bn revenue in 2017 and saw its valuation pass $1tn this month, it should have been exciting to see their plans for tennis coverage unfold. They have even matched their coverage of Flushing Meadows with a five-year deal for exclusive coverage of the men's ATP Tour, giving them rights to 37 additional tournaments including Masters events in Monte Carlo, Rome and Shanghai. On paper, the US Open is the kind of high-quality international tournament that perfectly suits the Amazon Prime profile. It is also the kind of sport with mass appeal that Amazon founder Jeff Bezos is looking for to attract further subscribers. Unfortunately, its coverage of the US Open has been plagued with viewer complaints.
FAULTY SERVICE Amazon’s US Open coverage a missed opportunity, writes Nicholas Earl
of live games should match the award-winning aspirations of their best dramas. What is more of a shame is that Amazon’s coverage doesn’t seem to want to answer some of the most interesting questions about streaming live media.
Viewers have cited strange camera angles during rallies, restricted match choices on the menu, and erratic sound and picture quality. Currently the US Open has a 1.7 stars out of five score on Amazon’s website, with 75 per cent of voters from a sample size of 1,311 reviews giving it 1 star – while the page even suspended reviews for several hours during the initial flurry of criticisms. This is a shame, in that the coverage
Viewers have cited strange camera angles, restricted choices and erratic sound and picture quality
For instance, should watching live sport on a smart phone or tablet merely replicate the output of satellite broadcasters and home entertainment systems, or should it to utilise the specific advantages of its own technology? A tablet or smart phone, for example, is a much more personal item than a television: it normally belongs to a specific individual and can be carried everywhere. It is held or placed only a few inches from someone’s eyes, and can be controlled much more intuitively than larger devices simply through touching the screen. The shift towards streaming could symbolise a shift from a passive viewing experience on the sofa and having content curated by a broadcaster to the user having an unprecedented autonomy over what they watch and how they watch it.
There could be statistics and analysis at the touch of the button, along with the ability to replay key moments such as with BT Sport’s mobile app or BBC iPlayer. In addition there could be a multiscreen option with the drag of a finger, making it easier than ever to change match, the ability to watch or take part in a social media feed while the game is playing, or change the camera angle of the match to suit your needs. It could have been your personal experience of the US Open, much like how it is for any spectator at Flushing Meadows.
Aside from a rewind option, however, Amazon’s coverage is highly conservative in its aims. Some continuity is fine, and trusted pundits and commentators such as
Jim Courier, Greg Rusedski and Mark Petchey have performed to their usual high standards. It is also welcoming that Amazon didn’t raise its prices for the US Open, as Prime membership remains at £79 a year. Yet it feels like a missed opportunity this year with shortcomings in quality and ambition diminishing Amazon’s first foray into UK sports coverage. This is disappointing considering the commitment they have shown with these exciting rights deals, but with such deep pockets and excellent quality elsewhere across their streaming service, there is still hope that things will improve when they broadcast the hard court season next year in Indian Wells and Miami. Perhaps only then will we see whether Amazon’s coverage represents a sea change in live broadcasting or more of the same.
Para-cycling making tracks as disability sport leader Discipline setting positive precedent for inclusivity, writes Felix Keith
ISABILITY sport is always fighting for something: more participants, more funding, more exposure. It’s been an ever-present, worthy battle – and one which has been making progress. The Paralympic Games are the pinnacle of the movement; a visible global competition with a wide reach. But by their very nature the Games have a limited impact. As with the Olympics, a four-year cycle means those watching only do
so intermittently. Unlike the Olympics, its cousin doesn’t have as many opportunities during the gaps to attract eyes and ears. That is why those governing disability sport are eager to maximise its airtime. One way to do so is to allow Paralympic stars the chance to compete on the same stage as their able-bodied colleagues. Enter British Cycling, who in partnership with UK Sport, have organised a first, which on closer inspection really shouldn’t be a first. In December para-cycling will feature at the Track Cycling World Cup at the Lee Valley VeloPark in London. The best from the Olympic and Paralympic worlds will compete over three days in front of a hopefully plentiful crowd. If it sounds simple that’s because it is. But surprisingly this is a global
first for the sport – and it’s taken some time to get to this point. The 2018 Commonwealth Games in Australia saw around 300 paraathletes take part across 38 sports, but that was a relative drop in the ocean considering there were some 4,400 participants altogether. For British Cycling that boiled down to just six of their 26 funded athletes competing, primarily in the sprint tandems. In contrast the Track Cycling World Cup will see every single classification, from C1 to C5, represented. It’s a chance for Britain’s best to gain experience of competing in a large event and prepare under pressure ahead of the 2020 Paralympic Games in Tokyo. Jon Pett, the head of para-cycling at British Cycling, also hopes December’s event can have a wider
impact and act as a positive forerunner for equal opportunities. “It’s really nice now to show that the two can exist in the same event,” he tells City A.M. “I’m not 100 per cent sure why it’s taken so long. I’ve been involved for four years and we’ve slowly grown the number of opportunities and races that have taken place, with UK Sport, the National Lottery, and with the major events team in British Cycling. “It seems now is the right time to take that next step and push the boundaries a little bit more and look at how we can integrate. We’re seeing how that can work on the track and we’re looking at other ways on the road too.” The hope is that with greater exposure names like Dame Sarah Storey, Jody Cundy and Neil Fachie
can provide role models and inspire participation in cycling at any level ahead of the Olympics and Paralympics in 2020. Surely that’s an idea other sports can latch onto too. Pett believes the will is there to move forward across the board, beyond just cycling. “Athletics last year did some really positive work, albeit not a fully integrated event, but they have made steps forward: sharing the same stadium and using the exact same advertising,” he says. “But for cycling to push that, have the two together, put them on the same stage and put it on TV is a real positive. I think other sports, where it’s possible, will look to do the same. Talking to colleagues in other fields I think it’s something people want to do, so it’s only the start of positive things to come.”
MONDAY 10 SEPTEMBER 2018
£ Serena Williams has been fined $17,000 (£13,000) following her outburst at the umpire during her US Open final defeat by Naomi Osaka on Saturday. Williams received three code violations for coaching, smashing her racket and launching a verbal tirade against umpire Carlos Ramos in the 6-2, 6-4 loss.
England batsman Alastair Cook will resume today on 46 in his final Test innings after reaching stumps on day three of the fifth Test match against India at The Oval yesterday. The opener, who will retire from international cricket after the match, took the hosts to 114-2 – a lead of 154 runs – after Ravindra Jadeja’s 86 not out helped India reach 292 in their first innings. The 33-year-old, who is alongside Joe Root at the crease, will have the chance to reach his 33rd century today in his 161st Test.
LEICESTER PAIR CHILWELL AND GRAY CALLED UP BY ENGLAND
£ Leicester City’s Ben Chilwell and Demarai Gray have been added to England’s squad to face Switzerland tomorrow. Left-back Chilwell replaces Luke Shaw, who suffered a concussion during Saturday’s 2-1 defeat by Spain and has returned to Manchester United for assessment. The England Under-21 pair could make their international debuts for Gareth Southgate in the friendly at the King Power Stadium.
FARAH WINS GREAT NORTH RUN FOR RECORD FIFTH TIME
£ Mo Farah ran a course record to win the Great North Run for a record fifth time yesterday. The 35-year-old claimed his fifth successive victory in Newcastle with a time of 59 minutes and 26 seconds in the half-marathon. Vivian Cheruiyot took the women’s race, while David Weir and Martyna Snopek won the wheelchair contest.
TOUR DE FRANCE WINNER THOMAS SIGNS NEW TEAM SKY CONTRACT
£ Tour de France champion Geraint Thomas signed a new three-year contract with Team Sky yesterday. The Welshman had offers from other teams following his success in France, but said he delighted to stay with Sky. “I’m excited about what’s still to come,” the 32-year-old said.
Sam Pilgrim won the Freeride Mountain Bike World Tour in 2013
TIME GIVEN PEOPLE SUPPORTED
Freeride mountain biker Sam Pilgrim on his training schedule
DON’T do anything like a typical athlete would. I get up, eat and then slowly decide what I’m going to do that day, as I make videos. I then head out to the woods in Essex, where I’m based, with whatever bike I’m using. I film YouTube videos, which can take all day, and then once I’m home I’ve got to edit it. But I also compete in Freeride Mountain Bike World Tour events, so I’m travelling a lot. Most recently I’ve been away to Vigo in northern Spain. The practice at that event didn’t start until 5pm and I didn’t eat until midnight, so I’d wake up at 1pm to conserve energy. It was spun on its head there, but it varies from event to event. The gaps in between events differ because I pick and choose which ones I want to enter, as I’ve been doing it for 10 years. I can still keep up with the younger guys, but I compete more for the fun of it now. I don’t work out like other athletes do. I don’t train, because that makes you think it’s not fun, which is something I want to avoid. However, the fun stuff I do is still bike riding, but I don’t call it training. I keep ‘bike fit’ but I can’t run. I am only fit at my sport. It doesn’t feel like working out because I do it every day. I hate going to the gym. I’d rather be outside riding. I have a training area at home in a
field, which is a homemade track and ramp leading to a gigantic airbag for landing on. That’s as close to training as I get. You can practice your hardest tricks without risking injury. When I’m competing I want to go to an event with as many tricks under my belt as possible. I can then decide when on the course and throughout the contest which I need to pull out to beat my competitors. I don’t have a preset routine, but I study the course so I can get an idea which tricks I will do. YouTube has taken over my life. I do three videos per week and if I don’t do one I feel like I’ve not achieved anything. It makes me go out and try
I hate going to the gym. I’d rather be outside riding different things. As a result I’m out more now than when I was winning contests all the time earlier in my career. It’s different stuff now. I recently took on an electric bike company as a sponsor, which has presented new challenges. It’s good fun but it’s caused a lot of commotion in the mountain bike world. There are so many tricks and the level is so high, which means I still feel like I’m learning the same ones. You need to be confident with them as they’re still scary to do. That’s where the airbag comes in. I still try to learn new tricks, but at this level it’s hard to do so. I am fortunate to have not hurt myself too badly, but I did lose my front tooth face-planting in my home town skate park.
Sam Pilgrim is a Haibike ambassador and rides a Haibike XDURO
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WILLIAMS FINED £13,000 FOR UMPIRE OUTBURST AT US OPEN
BOWING OUT Cook eyeing ton against India in final Test before retirement
City A.M. (2018.09.10)