Sony buys Ministry of Sound label

Transcription

BUSINESS WITH PERSONALITY
NO MAN’S SKY THE HOTTEST
GAME OF 2016 FOR ALL
YOU GROWN-UP KIDS P20
THE DEBATE HOW
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CASHING IN
THURSDAY 11 AUGUST 2016
ISSUE 2,688
CITYAM.COM
UNION BOSS BEHIND STRIKE BLITZ SLAMMED FOR SIX-FIGURE PAY PACK
OLIVER GILL
@ojngill
THE UNION boss at the centre of a threepronged attack on Britain’s commuters and
holidaymakers earned £137,344 last year,
outraging MPs and grassroots campaigners.
RMT general secretary Mick Cash received a
near seven per cent increase in salary and
pension in 2015, at £8,900, for leading Britain’s
15th largest trade union. By comparison, Len
McCluskey, the leader of Unite – Britain’s
largest trade union which serves more than
1.4m members – received total pay of £95,962
in 2015.
“I am astonished that a trade union leader
gets a salary well in excess of an MP. But then
he is negotiating on behalf of drivers that are
very well remunerated,” said Crispin Blunt MP,
whose Reigate constituency has been affected
by the industrial action.
“Taxpayers will be staggered by the
hypocrisy of union bosses who, while playing
at being class warriors, lead strikes which
disrupt the lives of millions of people while
pocketing telephone-number salaries,” said
Jonathan Isaby of the TaxPayers’ Alliance.
Of the £137,344 total, £96,766 is gross salary
and £29,330 is pension contributions; the
remainder is national insurance. An RMT
spokesman said: “In 2014 [his salary]
amounted £90,639. Over that period Mick Cash
was elected as general secretary
from the post of
assistant
general secretary and his salary increased to
the rate of general secretary as a consequence,
which accounts for the increase noted.”
RMT members of the Southern rail network
have been striking in a long dispute over the
changing role of guards. A five-day strike
which started on Monday has been suspended
as both sides resume talks.
Yesterday, the union revealed that it would
be downing tools on Eurostar services after a
ballot of just 55 workers. The first walkout on
the cross-Channel service, over staff
complaints about their work-life balance, will
start this weekend. On Tuesday, the RMT said
that staff at Virgin East Coast Mainline had
voted in favour of a strike.
Chris Grayling, secretary of state for
transport, condemned the RMT’s actions. He
said: “I am very disappointed that the union
keeps on calling strike action over what always
appears to be pretty minor matters, nothing to
do with passengers. It is not to do with jobs
because nobody is cutting jobs and no one is
cutting pay. This feels like an excuse to be
militant.”
Business group London First has said the
union risks becoming “public enemy number
one”. Cash was caught out during a Sky News
interview yesterday when asked how many
members had been balloted on the Eurostar
ballot. He said he did not know as he had been
too absorbed in the Southern dispute.
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Sony buys
Ministry of
Sound label
WILLIAM TURVILL
@wturvill
SONY Music UK yesterday
announced the acquisition of
British label Ministry of
Sound Recordings.
The label was established in
1993 as an extension to the
south London nightclub,
Ministry of Sound, which was
founded by James Palumbo,
now Lord Palumbo of
Southwark. The label boasts a
roster including London
Grammar, DJ Fresh and Sigala,
and helped launch the careers
of Eric Prydz
and
Example.
Sony
said the
label has
been
acquired
outright,
without
specifying a sum. According
to its accounts, Ministry of
Sound Recordings’ revenue in
2014 totalled £25.1m.
Sony said the partnership
would allow Ministry of
Sound Recordings to grow on
a “truly global scale”, with its
artists sitting alongside the
likes of Robbie Williams,
Beyonce and Miley Cyrus.
Lohan Presencer, Ministry
of Sound group chief
executive, said: “Sony has the
scale and strength within the
industry to project our artists
and music onto an even bigger
platform.”
FTSE 100▲6,866.42 +15.12 FTSE 250▲17,699.68 +12.28 DOW▼18,495.66 -37.39 NASDAQ▼5,204.58 -20.89 £/$▲1.301 +0.002 £/€▼1.164 -0.005 €/$▲1.118 +0.007
02
NEWS
CITYAM.COM
MIDDLE EAST-ON-MAYFAIR Supercar season is just heating up
as hundreds of Arabic licence plated cars descend on London
THE CITY VIEW
Lloyds boss ‘tryst’ is
no reflection of ability
N
OT SINCE Fred the Shred was at his most dastardly has a
banking boss made the gossip pages of the tabloids. But
this week Lloyds boss Antonio Horta-Osorio strolled into
the headlines hand in-hand with Russell Group director
general Dr Wendy Platt, after The Sun revealed an alleged tryst
between the pair. The paper’s report came complete with much
angry finger-pointing from veteran City analyst David Buik, who
blustered: “When you’re in the public headlights, at the very top
of a bank that has cost the taxpayer billions of pounds, your
behaviour has to be completely and utterly exemplary.” Investors
did not agree: they were remarkably unfazed by Horta-Osorio’s
extra-curricular dealings, with shares closing 0.8 per cent higher
yesterday. Casting judgement over such behaviour is easy - and
Buik did, in no uncertain terms. But should bosses’ private lives
be held to account to the same degree as, say, politicians, many
of whom base their
campaigns on upholding
family values? It is true chief
executives of the UK’s top
companies must be prepared
to be scrutinised by the
public. Recent scandals
involving BHS and Sports
Direct suggest this has never been more true – people at the top
of both companies squirmed as uncomfortable details of their
working lives were cross examined by MPs. And admittedly, it is
a little embarrassing for Horta-Osorio that back in 2013 he led
the launch of a “Code of Responsibility” at Lloyds, which
exhorted workers to ask themselves questions such as “have I
understood the risks and implications of what I am doing?” and
“would I be happy to tell my colleagues, family and friends about
my actions?”. Awkward. But it is also true that, during HortaOsorio’s time at the helm, shares have almost trebled, from their
low of 23p just after he was appointed in 2011, to a prereferendum high of more than 72p. And ultimately, in the City,
the numbers count.
So while Horta-Osorio, who is married, may face a difficult time
at home over the summer, investors, colleagues and pundits
should cut him some slack. Yes, chief executives should consider
themselves accountable – but the main point of that
accountability should be their bottom line.
The main point of
accountability for
CEOs should be
their bottom line
Follow us on Twitter @cityam
FINANCIAL TIMES
STURGEON IN £100M POSTBREXIT SPEND-UP
The Scottish government will seek to
soften the economic impact of the UK’s
Brexit vote by using £100m left over
from last year’s budget to accelerate
capital spending on infrastructure and
health projects. The move is an attempt
to demonstrate that Scotland is
addressing concerns that growth will
slow sharply after June’s EU
referendum, with Nicola Sturgeon, first
minister, accusing the UK government
of failing to take a “single meaningful
step” to reduce uncertainty.
ADECCO FLAGS NO EARLY
IMPACT FROM REFERENDUM
Adecco said yesterday that the
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
recruitment group had not witnessed
any slowdown in hiring in the UK in the
second quarter, in spite of the
uncertainty provoked by the Brexit
referendum.
A CHROME Mercedes-Benz McLaren, a silver Lamborghini Aventador and many more foreign beauties lined up outside the
Dorchester Hotel on Park Lane yesterday. The influx of luxury cars with number plates from Qatar, Saudi Arabia and other Middle
East states is timed so that the expensive cars are shipped weeks before their owners’ yearly jaunts around London.
City Hall in post-Brexit
talks with French capital
MARK SANDS
@mksands
CITY Hall has entered talks with
French authorities as it seeks to secure collaborative deals with London’s
peers to boost business.
Sadiq Khan’s office has been keen to
promote London’s openness to trade
since June's Brexit vote, and now the
Mayor's teams are seeking to strike a
series of city-to-city deals.
Speaking to City A.M., Sadiq Khan’s
deputy mayor for business Rajesh
Agrawal said talks are already underway with officials in the French capital, alongside several cities in more
distant locations.
“We are talking to cities and exploring opportunities and not just cities
that are so far [away], but we are also
talking to neighbours.
“We are talking to Paris, for example,” Agrawal said, adding that one
THE TIMES
E.ON HIT BY MERKEL’S
NUCLEAR POWER POLICY
E.on recorded a loss of €3bn (£2.58bn)
for the first half of the year as it
continued to suffer from German
Chancellor Angela Merkel’s nuclear
power shutdown and the switch to
renewable energy sources. The German
energy group said that revenues from
its UK business plunged by 16 per cent
during the period, as British customers
deserted the provider for smaller rivals
offering cheaper tariffs. Overall, E.on
booked additional charges on power
and gas stations, pushing writedowns
taken since 2014 above €18bn and close
to its present stock market value. It
announced contingent losses of around
€3.8bn.
possibility could be a deal to help start
ups in either the British or French capitals expand in the other site.
“This is just one example. It’s early
days, so we can’t discuss a lot of details at this stage, but Brexit also poses
opportunities which we need to grab
with both hands.”
An entrepreneur who launched two
fintech businesses before entering
City Hall this year, Agrawal argued
that the largest sources of investment
for London are the US, India and
China.
“The Chinese businesses and investors I have spoken to are very bullish on London. They know it as a great
place to do business. They love London,” he said.
“The dynamics for the rest of the
country are slightly different but London remains an international city and
the way the outside world perceives it
is different, and rightly so.
THE DAILY TELEGRAPH
LOOKERS LOOKS TO GET RID
OF CAR PARTS UNIT
Motoring group Lookers is to dispose of
its car parts division as the business
focuses on selling cars in a deal that has
been welcomed by the City. Lookers one of the largest car dealer groups in
the country - said it had agreed a
conditional sale of its parts division to
Alliance Automotive in a £120m cash
deal.
FALLON’S ARMED FORCES
HIT BY FALLING POUND
The Armed Forces could face deep cuts
because of a £700m black hole in the
Ministry of Defence's budget caused by
the falling value of the pound, causing
headaches for Michael Fallon.
“It is a global city, not a regional city,
so it is seen in a certain light.”
Meanwhile, City Hall is holding firm
to hopes of securing single market access for London businesses after the
UK completes Brexit.
“If you speak to businesses that is
what they want,” Agrawal said. “And
ultimately, this is going to be a trade
deal, so it has to be business-led.”
Alexandra Jones, chief executive of
the Centre for Cities, a think tank
dedicated to improving UK city
economies, said: “It’s vital that London continues to show it is open for
trade, investment and talent, so this
initiative by City Hall is a welcome
move to develop the capital’s international business links and boost jobs
and growth in the city. It also demonstrates the role that local leaders can
play in building networks with global
cities and firms, and in championing
the opportunities London offers.”
THE WALL STREET JOURNAL
WAL-MART DEAL COULD HIT
JET.COM’S SALES-TAX EDGE
Jet.com pitches itself as a lower-priced
alternative to Amazon.com Inc., partly
by not tacking on sales taxes in most
states. But tax experts say Jet’s
proposed $3.3bn sale to retail giant WalMart Stores could end up jeopardizing
that price advantage by forcing it to
collect taxes nationwide.
DELTA CEO TAKES HEAT FOR
OUTAGE
Delta’s chief executive yesterday said he
took full responsibility for the computer
failure that forced the US airline to
cancel more than 2,100 flights over
three days but said it was a one-time
event.
CITYAM.COM
Carney’s bond
buying turns UK
yields negative
JAKE CORDELL
@JakeCordell
GOVERNMENT borrowing costs set a
new all-time low yesterday after the
Bank of England’s quantitative easing
programme put itself back on track.
Investors flocked into the safe-haven
sovereign debt, pushing yields on
some short-term debt into negative
territory. Effective interest rates
slipped to minus 0.01 per cent on government bonds due to mature in
March 2019 and March 2020.
The yield on benchmark 10-year debt
dropped to 0.52 per cent, down from
around 0.7 per cent before the Bank
unveiled its dramatic stimulus package of extra bond buying and a cut to
interest rates last week.
The rally came as the Bank’s latest
offer to buy government debt was
massively oversubscribed. Threadneedle Street received offers from bondholders to hand over more than
£5.5bn worth of government coupons
yesterday afternoon, covering its daily
£1.17bn budget by a factor of 4.7 to
one.
The successful so-called reverse auction will soothe concerns after it fell
£52m short in a similar auction on
Tuesday. The Bank confirmed it will
make up the shortfall in the second
half of its £60bn quantitative easing
extension after November.
The dash to safer cash also came as
the Bank’s monthly agents’ summary
cast a gloomy economic outlook for
the rest of the year. The survey of 270
firms representing 1.2m employees
“indicated the result of the EU referendum would have a negative effect,
overall, on capital spending, hiring
and turnover over the coming year”.
Half of all companies said they
would scale back plans to recruit
more staff over the next year.
No firms said the result of the EU
referendum would encourage them to
invest more, while 60 per cent said
they plan to spend less.
NEWS
03
Labour leader
candidate asks
for Asos probe
JAMES NICKERSON
A third of homes on the market in Kensington and Chelsea have had their prices cut
House prices slashed by nearly
10pc in posh parts of the capital
HELEN CAHILL
@HelCahill
VENDORS trying to shift their
property in the aftermath of the
Brexit vote and stamp duty changes
are cutting prices by nearly 10 per
cent in some parts of London.
Of the houses currently on the
market, over 30 per cent have had
their prices cut, according to Zoopla,
an increase of 4.29 per cent since
April. In Kensington and Chelsea,
over a third of homes have had their
price reduced, with price cuts
averaging 9.2 per cent.
Nearly a third of the property
price-cuts across the UK, over 32 per
cent,were in July.
Royal Institute of Chartered
Surveyors said its forecast for house
price growth “remains negative”.
@nickersonjw
AN URGENT inquiry into working
practices at online retailer Asos is
necessary, Labour leadership
contender Owen Smith has said.
Smith has called for an inquiry to
deal with employment practices at
Asos, warning it is “the new Sports
Direct”.
Writing to chair of the Business,
Innovation and Skills Select
Committee Ian Wright, Smith asked
for consideration into “an urgent,
specific inquiry into reports of
unfit working conditions at the
centre”.
“Having met with the GMB
[union], I’m appalled at reports
that – among others – staff there
are having to face invasive
surveillance, limited access to toilet
facilities and random searches
during lunch breaks,” he added.
An Asos spokesperson said: “We
were surprised to see these
allegations from Owen given that it
was the first we had heard from
him and he’s never been inside the
warehouse. We work incredibly
hard to create a positive,
supportive, healthy working
environment for the team.”
04
NEWS
CITYAM.COM
M&S boss faces pressure from MPs
over proposed pay cuts for staff
HELEN CAHILL
@HelCahill
M&S CHIEF Steve Rowe has received
letters from six MPs asking him to
reconsider cutting pay for his shop
staff, City A.M. understands.
SNP MP Alison Thewliss wrote to
Rowe: “It is clear there is increasing
cross-party condemnation of
businesses who seek to exploit their
employees at a time when they
should be receiving a much-needed
increase in take-home pay.”
Tory MP Mark Lancaster has also
written to the Treasury regarding
how the National Living Wage law is
working in practice, sources told City
A.M.
The news comes as M&S staff
discuss with management how the
business’ pay cut proposals might be
curbed.
City A.M. has learned the staff’s
GIVE US CREDIT Government told tax
credits can help post-Brexit vote economy
representative body National BIG will
receive feedback from employees’
counter-proposals today.
An M&S spokesperson said: “We
believe our proposed new approach to
pay and pensions would reward our
people in a fair and consistent way,
simplify and modernise our business
and help us attract and retain the
best talent so we can continue to
provide great service for our
customers.”
THE GOVERNMENT is being urged to implement a tax credit scheme for UK exporters
to boost British business and the economy after the Brexit vote. In an open letter,
David Thomas, of the Council of British Chambers of Commerce in Europe (COBCOE),
said: “This will cost the exchequer nothing on balance.”
House prices in
the City and its
fringes shoot up
HELEN CAHILL
@HelCahill
HOUSE prices in the City and the surrounding boroughs have soared over
the past five years as the centre of London has become a more attractive
place to live.
City fringe areas such as Clerkenwell, Shoreditch and Wapping have
proven particularly popular, where
prices have jumped by 47 per cent
since 2011, according to research conducted by CBRE.
In the City itself – which is generally
associated with office blocks, not residential buildings – average prices
have increased by 81 per cent, equating to 12.6 per cent every year.
Jennet Siebrits, head of residential
research at CBRE, said the diversification of the City and its neighbouring
areas “has led to an expanded workforce keen to live in close proximity to
their place of work”.
“The current City workforce of
360,000 is anticipated to increase to
410,000 by 2026 and the residential
market is seeking to meet demand for
local homes, with 740 new properties
under construction,” Siebrits said.
CBRE said the City of London Corporation is now encouraging residential
development as well as bars and
restaurants.
The housing market has slowed over
the past year due to stamp duty tax
changes and homebuyers becoming
cautious about big-ticket purchases
due to the Brexit vote. However, developers are hoping for help from the
government.
“The current stand-off in the market
might be due to an expectation of fiscal loosing in the Autumn Statement,” said Michelle Ricci, co-founder
of property analysts Propcision.
“Anything short of stamp duty
changes would be disappointing to induce or entice domestic buying.
“In London, the higher rate of stamp
duty is punitive because it is stumping domestic transactions.”
Tim Jackson, managing director at
developers SAS Investments, said: “I
don’t think the high rate of stamp
duty affects anyone out of London.
“But the government might not
want to look like they are giving a
break to rich Londoners.”
Mortgage lending strengthened
by first-time buyers in June
HELEN CAHILL
@HelCahill
FIRST-TIME buyers boosted
mortgage lending in June as tax
changes designed to deter buy-tolet landlords took effect.
June mortgage lending was up by
29 per cent month-on-month and
12 per cent year, according to data
from the Council of Mortgage
Lenders (CML), while it grew by 12
per cent compared with the same
month last year.
As competition from landlords
dropped off, first-time buyers led
the way, borrowing £5.5bn, up 28
per cent as compared to May, and
up 25 per cent on June 2015.
More loans were given out to
first-time buyers than at any other
time since August 2007.
Paul Smee, director general of
the CML, said “there is uncertainty”
in the market currently and that “it
will take more time and patience to
understand how the market will
evolve in the current environment”.
06
NEWS
CITYAM.COM
William Hill berates ‘opportunistic’
takeover proposal by Rank and 888
FRANCESCA WASHTELL
@fwashtell
RANK Group and 888 Holdings have
hit back at William Hill’s rejection of
their £3.6bn takeover offer yesterday,
claiming the move would save £100m
per year in cost synergies.
The consortium formed by Rank,
the operator of Grosvenor Casinos,
and online gambling giant 888 has
not given up, saying it would still
“welcome the opportunity to
engage” with the bookmaker’s board
to strike a deal.
It said it had identified £100m in
annual cost savings from
significantly enhanced scale and
diversification. The consortium
proposed Henry Birch, current Rank
CEO, would head the newly-enlarged
group while 888 chief Itai Frieberger
would become the chief executive of
the group’s digital arm.
However, William Hill said last
night that the proposal is “highly
opportunistic, complex and poses
significant risk for shareholders”. It
added that the takeover would lead
to the combined group “operating
with substantially increased leverage
of approximately £2.2bn”.
William Hill boss Gareth Davis
said the board sees “no merit in
engaging with a proposal that
substantially undervalues” the firm.
Around 72 per cent of League Two sides, like Crawley Town, reported investor interest
Investors drawn
to bargain bin of
English football
FRANK DALLERES
@frankdalleres
WEALTHY Premier League clubs and
extravagant transfers such as Manchester United’s world record deal for
Paul Pogba may hog the limelight, but
canny investors are increasingly taken
by England’s less glamorous teams.
Four in 10 clubs in the three divisions below the top flight fielded approaches from potential investors in
the last year, and that figure rose to
73 per cent for the fourth tier –
League Two – alone. That interest
came from overseas as much as domestic suitors, said accountants BDO,
which report the findings in a survey
of football finance directors.
Investors have been attracted by the
potential for future growth in the
medium to long term as clubs enjoy
greater financial stability following
the successful adoption of cost-control measures.
Premier League teams’ new era of
profitability is underlined by BDO’s
research, which found that 88 per
cent of top-flight sides expected to be
in the black for the coming season,
which starts on Saturday.
That too has been driven in part by
self-regulation in the form of so-called
financial fair play rules, as well as
rocketing income from domestic and
international broadcast contracts.
A new three-year TV deal taking effect this season guarantees top-tier
clubs £100-£150m each, allowing the
richest outfits such as United to spend
£89m on France midfielder and marketers’ dream Pogba.
The picture is less rosy in the fiercely
competitive Championship, English
football’s second tier, where 23 per
cent of clubs said their finances were
in need of attention or a cause for concern. It is worse still north of the border, with that figure rising to 40 per
cent for respondents from the Scottish Premiership.
“The healthy international brands of
the Premier League are a contrast to
the still very attractive, but financially
precarious, Championship clubs,” said
BDO’s Ian Clayden.
“Meanwhile, Leagues One and Two
are operating a financially stable business model, attracting significant
global investor interest.”
Standing up for standing up: A
Push for cheaper football tickets
FRANK DALLERES
@frankdalleres
SPORT Minister Tracey Crouch is
under pressure on the eve of the new
Premier League season to allow
England’s top clubs to reintroduce
standing areas at matches.
A report published today by think
tank the Adam Smith Institute (ASI)
says the use of “safe standing”
sections is backed by most top-flight
teams and the majority of fans.
It also argues that it could lead to
cheaper tickets, as it would allow
clubs to accommodate more
supporters in the same space, and
would be easy to apply as it does not
require new laws to be passed.
“The standing ban is an
anachronism,” said the ASI’s Ben
Southwood. “Clubs across Europe
have rail seating sections with no
incident, creating superior
atmosphere and allowing for a
cheaper tier of tickets.”
MORE IN THE FORUM, P17
CITYAM.COM
Royal Mail latest
pension scheme
to face closure
BILLY BAMBROUGH
@BillyBambrough
ROYAL Mail’s pension scheme is
facing closure after it warned trade
unions and workers the plan will be
“unaffordable” within two years.
Costs to maintain the fund are
expected to balloon to over £900m by
March 2018, more than double the
current £400m.
Royal Mail is negotiating with trade
unions over what will become of the
fund. The £400m in cash that Royal
Mail is paying into the fund each year
guarantees a retirement income to
two-thirds of its 140,000-strong workforce.
Costs are set to increase due to a
deterioration in financial market conditions, the company told employees.
“Early indications from the latest triennial valuation of the plan suggest
that the company’s contributions to
the pension plan each year would have
to increase from around £400m, to
over £900m,” a spokesperson for Royal
Mail said. “Such an increase in costs is
not sustainable.”
Royal Mail is in the midst of a strategic shift and a hefty cost-cutting programme as it shakes off the vestiges of
its public sector heritage following its
2013 privatisation.
The future of many UK pension
schemes have been thrust to the fore
in recent months by the collapse of
retailer BHS and the Tata Steel crisis.
Don’t start Brexit until
next Autumn: Khan
MARK SANDS
@MkSands
LONDON mayor Sadiq Khan has called on Theresa May
to delay triggering Article 50 until next Autumn.
Khan told Sky News the government should wait
until after French and German elections next year.
France will chose its next president in May, while
Germany is not expected to vote until at least August.
“Maybe waiting for French and German elections to
be out of the way gives the new French president or
German chancellor more of a chance for latitude for
some of the things that the British public say we
need,” Khan said, adding that business leaders from
Milan, Paris, Berlin and Dublin are courting business
leaders at present.
“Once we serve notice then the stopwatch starts,
the countdown begins and it becomes more difficult
rather than easier,” he said.
Aviva fund to remain
closed until 2017
HELEN CAHILL
@HelCahill
AVIVA’s property fund will be closed for six to eight
months, meaning investors wanting to withdraw
their cash won’t be able to do so until next year.
In a note issued to investors, Aviva said yesterday:
“Property sales may be more difficult to execute in
the current environment due to market
uncertainty.
“In disposing of properties, we need to ensure we
act in the best interests of all investors.
“The suspension is therefore likely to be in place
for a period of at least six to eight months from the
date of the suspension.”
The fund suspended trading on 5 July due to
investors withdrawing cash after the Brexit vote.
Several funds closed their doors around the same
time, as asset managers froze an estimated £15bn£20bn worth of funds.
Laith Khalaf, senior analyst at Hargreaves
Lansdown, said: “This is a big blow to investors in
the Aviva fund, who are basically now being told
they won't be able to get their money out any time
in 2016.”
NEWS
07
Pru boss feels
there is still
Asia confusion
HAYLEY KIRTON
Former business secretary Peter Mandelson has come to China’s defence
It is ‘suicidal’ for China to abuse
Hinkley role, Mandelson says
JESSICA MORRIS
@jssmorris
LORD Mandelson said yesterday it
would be “suicidal” for China to use
its role in the Hinkley Point C nuclear
power plant to compromise the UK’s
national security.
Speaking on BBC Radio 4, former
business secretary Mandelson, said:
“Nobody would want to do business
with China again.”
He also warned against a further
delay to the UK government’s
decision on Hinkley beyond current
expectations for the end of
September. Reports suggest security
concerns around Chinese
involvement drove this surprise
decision.
@HayleyLEK
THE MAN at the driving seat of one of
the most notable insurance giants
yesterday said he believes many are
still struggling to get their head
around the Asian market.
Discussing his company’s half-year
results, Prudential chief executive
Mike Wells pointed out there were
still many misconceptions about the
geographic region, mainly that
businesses could apply a one -sizefits-all approach.
Wells also noted he doesn’t “buy
these top line, simplistic looks at the
economy”, adding it often didn’t feel
true once you are on the ground.
Prudential’s profits were boosted
by its Asian efforts in the first six
months of 2016. While overall
operating profits increased by nine
per cent on a reported basis to
£2.1bn, operating profits in Asia
swelled by 18 per cent to £743m.
08
NEWS
CITYAM.COM
Hillary Clinton in jobs
pledge as she slams
Trump temperament
JAMES NICKERSON
AND WILLIAM TURVILL
@nickersonjw & @wturvill
DEMOCRAT Hillary Clinton yesterday
unveiled plans she said will help
create an economy that works for
everyone and not just those at the top.
Speaking at a campaign rally in Des
Moines, Iowa, Clinton said she would
seek to pass the largest investment in
job creation since World War Two,
stressing that she wants to see “good
paying jobs”.
The former secretary of state said:
“In this campaign, I’m crossing the
country to talk about what we can do
to improve the lives of the vast majority of Americans – to create more
opportunities for more people, to live
up to their own potential and to pursue the American dream.”
She added: “In the first 100 days of
my administration, we will make the
biggest investment in new jobs, good
paying jobs, since World War Two...
“I have this old fashioned idea that
the middle class of America is what
makes America’s economy work. And
what we’ve been seeing in recent years
is a deliberate effort to undermine the
middle class.”
Clinton also criticised rival Donald
Trump for a “long line of casual comments... that cross the line”.
She said: “His casual cruelty to a gold
star family, his casual suggestion that
more countries should have nuclear
weapons, and now his casual inciting
of violence. Every single one of these
incidents shows us that Donald
Trump simply does not have the temperament to be president and commander-in-chief of the United States.”
Ralph Lauren
shares trendy
despite costs
WILLIAM TURVILL
The handbag maker’s net sales fell by seven per cent to $394.4m
Michael Kors to tighten its purse
strings as sales decline in malls
WILLIAM TURVILL
@wturvill
MICHAEL Kors shares dropped
yesterday as sales figures were hit by
fewer mall trips.
The handbags, clothing and
jewellery company’s net sales came
in at $957.3m (£735.9m) in the three
months to 2 July, up from $947.3m.
Wholesale net sales fell by seven
per cent to $394.4m from $424m.
Total revenue was reported to be
$987.9m, up 0.2 per cent from
$986m.
The firm, which said it had
outperformed expectations in the
quarter, reported growth in digital
sales and global expansion was
“muted by the continued decline in
mall traffic trends”.
@wturvill
RALPH Lauren’s shares shot up 10
per cent yesterday despite the group
reporting falling turnover and profit.
The firm said its performance was
affected by costs associated with its
“Way Forward Plan”.
The US company’s net revenue for
the three months to 2 July came in at
$1.55bn (£1.19bn), down from
$1.62bn in the same period last year.
Gross profit for the period was
$895m, down from $966m.
The restructuring costs are in
relation to the company’s abovementioned scheme which will
“refocus on the core of what has
made Ralph Lauren the iconic
company it is today and get closer to
the consumer than ever before”.
In July, the company said it would
do this by evolving its “product,
marketing and shopping experience
to increase desirability”.
Wendy’s earnings give
investors indigestion
BILLY BAMBROUGH
@BillyBambrough
US BURGER chain Wendy’s has
served up expectation-beating
earnings, though same-restaurant
sales disappointed, sending shares
lower.
Shares slumped at the open in
New York but somewhat recovered
to close down 2.75 per cent.
Net income fell to $26.5m
(£20.2m), or 10 cents per share, in
the second quarter from $40.2m a
year earlier.
Revenue slid 22 per cent to
$382.7m, mostly due to the group
selling off 361 company-operated
restaurants in the period. A 33 per
cent slide in sales revenue offset an
18 per cent increase in franchise
revenue.
Analysts had expected nine cents
a share in earnings on revenue of
$368m, according to Thomson
Reuters.
The market was underwhelmed
by sales at established restaurants
open for at least 15 months coming
in under expectations, rising by
just 0.4 per cent in North America,
compared to the 1.9 per cent rise a
Consensus Metrix analyst poll had
expected.
The results follow better-thanexpected numbers for its first
quarter.
Wendy’s is in the middle of an
extensive strategic shift that will
reduce its company-operated
restaurant ownership to around
five per cent by the end of 2016.
By the end of the second quarter
it had offloaded 55 restaurants,
with 315 more set to be franchised
this year.
Wendy’s latest numbers will be
an all too familiar picture for those
following incumbent food and
drink vendors who are battling for
market share with new rivals and
more health conscious consumers.
Falling grocery prices and
increases to minimum wages have
also pushed up the price at many
popular chains.
McDonald’s, Dunkin Brands, and
Starbucks have all posted
disappointing sales for the quarter
as customers cut back.
Shake Shack’s growth unable
to shake off investor concerns
Pet food firm Blue
Buffalo in pink of
health as sales soar
WILLIAM TURVILL
WILLIAM TURVILL
@wturvill
SHAKE Shack’s shares plummeted
in after-hours trading last night
despite the fast food company
reporting expectation-beating
results.
The US company’s share price
fell to just over $37 yesterday
evening – down from more than
$70 a year ago amid investor
concerns over growth and
valuation.
Total revenue during the
second quarter of 2016 stood at
$66.5m (£50.6m), up 37.2 per cent.
Analysts had expected revenue
of $63m, according to a Thomson
Reuters consensus.
Adjusted earnings before
interest, taxation, depreciation
and amortisation (Ebitda) during
the period was up 39.3 per cent to
$15.6m.
Shake Shack increased its
revenue outlook for 2016 from
$245-249m to $253-256m.
Shake Shack’s chief executive
Randy Garutt said in a statement:
“Domestically, given favourable
development tailwinds in our
2016 pipeline, we have increased
guidance to open 18 domestic
company-operated Shacks this
year.”
@wturvill
PET FOOD company Blue Buffalo’s
shares were up in after-hours trading
last night after it reported a sales
and earnings growth in the second
quarter.
Earnings before interest, taxation,
depreciation and amortisation
(Ebitda) came in at $68m, up 40.7 per
cent. Earnings per share (EPS), meanwhile, were up 61.2 per cent to $0.18.
Net sales for the three months
totalled $287m, an increase of 12.9
per cent.
The firm said it was raising its sales
and EPS guidance for the full year.
CITYAM.COM
Wealthiest tech
billionaires add
$50bn to riches
LYNSEY BARBER
@lynseybarber
THE WORLD’S richest tech billionaires
have added another $50bn ($38.47bn)
to their wealth over the past year,
while titans Jeff Bezos, Mark Zuckerberg and Jack Ma climbed the
ranks.
Bill Gates retained his
long-standing title as the
world’s richest tech billionaire, the latest rich
list compiled by Forbes
reveals,
despite
a
$1.6bn decline in his
wealth since 2015.
It was a good year for
Amazon boss Bezos and
Facebook founder Zuckerberg, both celebrating a successful year in business which has sent
both companies stock soaring to new
highs over the past year.
This helped them claim second and
third position respectively, adding a
combined $31.2bn to their wealth and
overtaking Oracle founder Larry Ellison.
In another reshuffle, Alibaba entrepreneur Jack Ma overtook former Microsoft chief Steve Ballmer as his
wealth grew by $2.6m.
The greatest number of the top 20
tech billionaires - more than
half - come from the US and
then China. All are men.
The average age is 54.
Tech titans and investors
had a good year even
though Bill Gates lost cash
Just a single person from
the UK made Forbes’ top
100 tech rich list - founder of
Bet365 Denise Coates at number
53. She is also ranked second of only
five women to make the list.
Last month, Facebook’s Zuckerberg
added $1.9bn to his wealth in less
than 24 hours.
NEWS
09
Paysafe looks
to profit from
digital wallets
HAYLEY KIRTON
Several rival mattress startups have sprung up recently such as Eve and Simba Sleep
Prepare for your sleep to get
disrupted – but in a good way
LYNSEY BARBER
@lynseybarber
A US STARTUP with celebrity backing
has launched in the UK and is hoping
to shake up how Brits buy mattresses
and the way we sleep.
Casper, a two-year-old startup with
multi-million-dollar investment
from Leonardo DiCaprio as well as
venture capital investors, has
reinvented the traditional mattress
and wants to turn it into a lifestyle
brand.
Casper sells only online and keeps
choice simple, with one highly
engineered design in several sizes,
and delivery in a small cardboard
box. Buyers can test out the mattress
for 100 days and return it if they’re
unhappy, slightly more than the twominute test in traditional stores.
@HayleyLEK
PAYMENT solutions company
Paysafe has revealed it hopes to
rake in the cash from its digital
wallet business, including
launching a new mobile-enabled
wallet in September.
Joel Leonoff, Paysafe president
and chief executive, described the
product in the pipeline as being
focused on generic goods, including
pharmaceutical products, groceries
and alcohol.
“What we’re building and what
we're delivering is the mobile
wallet but also, for the merchants,
a delivery module, a pick-up
module, a loyalty module, an
analytics module, so that they can
start understanding who their
customers are,” Leonoff told City
A.M.
Also yesterday, the company
reported revenue for its first half
of this year had increased to
$486.7m (£373.2m), up 118 per cent
compared with $223m the year
before. Revenue in the company’s
digital wallet division had grown by
195 per cent.
Shares in the company closed up
5.8 per cent at 413.9p.
10
NEWS
CITYAM.COM
THECAPITALIST
Got A Story? Email
[email protected]
EDITED BY FRANCESCA WASHTELL
Crush hour time on
Transport for Lovin’
TOO BUSY to find love? Never fear:
dating site Match.com unveiled its
new “Datemaster” bus service yesterday which allows time- (and love-)
starved Londoners to speed date during their morning commute.
The Capitalist should probably
mention at this point that she
had a prime place on the
converted double-decker
bus’ maiden voyage,
sampling the latest
speed dating format so
you don’t have to.
You’re welcome.
The verdict? Sadly no
amount of Norah Jones
background music and
sweet pastries can make up
for the fact that it is a) first
thing in the morning and b) more
gals than guys follow through in turning up to these events.
Shacking up with your fellow passengers from Clapham Junction to Liverpool Street in what can only be
described as a prince and harem dynamic isn’t a pleasant start to any-
STRIPPED BACK RELAXATION The UK’s
first naked sun terrace will open soon
one’s day. Still, good on Match.com for
trying. Perhaps the next two journeys
when commuters can “put their time
to good use” and “interact in a fun, romantic and time-efficient way” will
go better than the debut.
The pilot scheme running this
week will also offer a route
from Limehouse to Waterloo and Brixton to Liverpool Street (but not back
Rowing,
Rowing, but
but not
not
as
as you
you know
know it...
it...
Former PM David Cameron might have a
new role: that of food guru. Sales of
paprika-flavoured Pringles have risen by
over 30 per cent on EasyJet flights after a
video of him eating the snack went viral.
No Deliciously Ella-style cookbook
guaranteed, then, but he could kick-start
a snack trend nonetheless.
The low-cost carrier also said sales of its
fruit, herbal and green teas had risen 14
per cent as the nation gets more
conscious of healthy eating and drinking.
That would make for one calm, but quite
dull, plane journey.
QUOTE OF THE DAY
No public transport
affection please, this is
shared transport after all.
to anyone’s flat, just to
temper your expectations).
If successful, Match has
threatened to roll the service
out to other UK cities at a later date.
Exciting times for the nation’s singletons, I think you’ll agree.
But The Capitalist has to wonder if efficiency really is the meal ticket here.
And how romantic can anything modelled on Transport for London ever really be?
CAMERON THE NEW FOOD GOD?
Make sure they have an
ancestor who was a
very close friend of
William the Conqueror
REGISTER fast, while the heatwaves are still coming. NOW TV is set to launch the first
fully naked sun terrace in central London, supposedly to encourage visitors to
embrace “total freedom”... and their new contract. We see the link, sort of. Views of
Big Ben and the London Eye and activities such as trampolining included. Tempted?
The late Duke of
Westminster, when
asked what advice
he would give to a
young entrepreneur
seeking to emulate
his success.
Join us in
ark
Canada Square Par
Canary Wharf
12.08.16
6–9pm
Crews racing
live on stage
Live DJ Set
C
ityregatta.co.uk
Cityregatta.co.uk
#
CityRegatta
#CityRegatta
CITYAM.COM
Peppa Pig firm
snorts at £1bn
offer from ITV
MARK SANDS AND WILLIAM TURVILL
@MkSands & @wturvill
THE maker of children’s TV hit Peppa
Pig has rejected a £1bn takeover bid
from ITV.
In a stock exchange announcement
yesterday, Entertainment One (EOne)
said the offer of 236p per share “fundamentally undervalues” the company, adding that its board had
unanimously rejected the bid.
ITV later confirmed it was behind
the bid. The broadcaster said in a
statement: “The proposal represents a
significant premium over the undisturbed EOne share price, prior to the
impact of recent bid speculation.
“ITV has a clear strategy that, over recent years, has created significant
value for shareholders. A key part of
that strategy is continuing to build a
scaled international content and
global distribution business, with a
focus on US scripted content. ITV believes that the proposed combination
with EOne has strong strategic ration-
NEWS
11
Direct lending
platforms gain
SME popularity
WILLIAM TURVILL
ale and would further accelerate ITV’s
rebalancing of the business.”
Speculation of a deal had seen the
Canadian film distributor’s share
price climb throughout Tuesday from
a Monday close of 198.4p to 217.5p at
the end of trading on Tuesday. Its
share price shot up another 11 per
cent yesterday to 242p.
EOne is also behind US drama Fear
the Walking Dead and the Oscar-winning movie Spotlight.
Analysts at Liberum speculated that
EOne shareholders would be after an
offer or more than 300p per share but
ITV may not be prepared to go that
far.
A note by Ian Whittaker also speculated that ITV might not be interested
in all of EOne, suggesting the broadcaster “may only want the TV assets”
rather than the film assets.
The note added: “A more interesting
question is whether ITV would want
to retain the ‘Peppa Pig’ franchise or
would look to sell it to a more children’s-orientated company.”
Rupert Grint, who played Ron Weasley, is no accounting wizard in the eyes of HMRC
Harry Potter star fails to conjure
up a win against the tax man
HAYLEY KIRTON
@HayleyLEK
ONE OF the stars of the Harry Potter
movies has discovered magic is no
match for the taxman, after losing his
case at a tribunal.
Rupert Grint had attempted to
include two tax accounting periods
in his filings for tax year 2009-10,
which would have prevented a
proportion of his income from being
taxed at the additional 50 per cent
rate.
The case was heard in London
between 27 and 29 June and a
decision was handed down earlier
this month, but an announcement
was only made by HM Revenue &
Customs yesterday.
@wturvill
SMALL businesses are increasingly
being drawn to direct lending
platforms, a new report has found.
The Centre for Economics and
Business Research (CEBR) report,
commissioned by P2P platform
Funding Circle, found that direct
lending to firms at the start of 2016
was up 50 per cent year-on-year.
The CEBR said direct lending is
“accounting for a growing
proportion of capital raised by
businesses”. “In the second quarter
of this year, close to one in 10 small
firms applying for credit applied
for funds from a direct lending
platform,” the report said.
The CEBR used data from
Funding Circle to examine how the
lending landscape for small firms
has changed since 2010.
Scott Corfe, CEBR director, said:
“Since the financial crisis, UK
businesses have increasingly turned
to non-bank lending to raise the
funds they need to invest, hire new
staff and expand to new markets.
Companies such as Funding Circle
are driving billions of pounds of
economic activity.”
Charitable cryptocurrency to launch next year
FRANCESCA WASHTELL
@fwashtell
A NEW cryptocurrency slated for
release next year is set to bridge the
world of digital currencies and
international charity payments.
The Cross-Stratum Coin (CSC),
created by UK-based fintech
company Cross-Stratum Mutual
Community (CSMC) Asia, will
utilise trading fees as a method for
donation to global charities when
it launches in the first quarter of
2017.
For every trade that is made using
CSC, the trading fee will be donated
to a suite of global charities. This
will be carried out by means of a
global-assistance movement.
CSMC has appointed a foundation
in Malaysia as its key platform and
partner to deliver the new service.
The group has said it aims to
redirect the trend of current
altcoins, alternatives to the leading
cryptocurrency bitcoin, and “chip
away the glamour of the investors as
they pursue financial gains”.
“It has been a long and
anticipated plan for us at CSMC
Asia to want to partake in the
cryptocurrency market,” a CSMC
spokesperson said.
“It came across to us that in
order for one coin to eventually
successfully sustain and create
value, a huge user-base is of
paramount importance and what
can be better than creating its
value and user base via a charitable
movement like Pay-It-Forward?
“We expect the CSC to take the
market by storm when it is
launched.”
There are hundreds of different
altcoins globally acting in
competition with bitcoin, all of
which operate independently of
central banking systems using
blockchain technology.
Merging exchanges to
focus on regulation
WILLIAM TURVILL
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@wturvill
DEUTSCHE Boerse has announced a “major
milestone” in its quest to complete a merger with
the London Stock Exchange.
The German exchange said more than 75 per
cent of shares have now been tendered in support
of the deal. The firm had already received the 60
per cent support necessary.
The stock exchanges, which now hope to
complete the deal in the first half of next year –
rather than the first quarter, as previously stated –
are switching their focus to gaining regulatory
support for the merger.
“We welcome that a large majority of our
shareholders has approved the industry-defining
merger of Deutsche Boerse Group and London
Stock Exchange Group,” said chief financial
officer Gregor Pottmeyer.
“This high acceptance level is a strong vote of
confidence and a major milestone. We will now
focus to receive regulatory approvals.”
Recently joined City Giving Day
Why are you supporting City Giving
Day?
When Heleba became involved with
City Giving Day last year, we were not
convinced that our small London
office could really do anything useful.
However, with the support of the Lord
Mayor’s Appeal team, we did a
number of fun staff engagement
events and raised over £1,500.
Which charities do you support?
This year we are sending 12 volunteers
to QEF, a national charity for disabled
adults and children in Leatherhead, to
prepare their gardens for an upcoming
open day. This will include gardening,
cleaning and painting amongst other
tasks. Another important part of the
day is interacting with the disabled
residents.
How will you celebrate CGD?
For the second year we are holding an
art show for the Lord Mayor’s Appeal.
Artists among our staff will donate
paintings which will then be auctioned
to the public.
CHARITY IN ACTION
Helaba made
a big
contribution
to our centre
by preparing
the grounds
for our
Open/Family
Day on 29
July 2016.
Everybody worked
together, had fun
and got lots done at
QEF. The residents
were happy with
the end result, we
made a difference.
Sue, Helaba
Accounts
Department
REGISTER NOW AT
WWW.THELORDMAYORSAPPEAL.ORG/CGD
12
NEWS
CITYAM.COM
Stock Spirits appoints new chief
exec and renews focus on Poland
Midatech stock price
gets a shot in the arm
@fwashtell
STOCK Spirits’ activist investors were
pleased yesterday after the company
appointed a new chief executive and
said it is already seeing positive
results from boosting its operations
in Poland.
The troubled Eastern European
vodka maker yesterday appointed
former interim chief exec Miroslaw
“Mirek” Stachowicz as its new leader,
after former head Chris Heath
@BillyBambrough
LONDON-LISTED pharma firm
Midatech’s shares soared yesterday
after it reported a 10-fold revenue
increase for its first fiscal half.
Shares surged by almost 20 per
cent after the London market open
before paring back gains to close 7.5
per cent higher.
Midatech – which is focused on US
markets after acquiring Nasdaqlisted Dara last year – brought in
FRANCESCA WASHTELL
stepped down in April.
Heath’s departure was part of a
wider shareholder rebellion, in
which major investor Western Gate
Private Investments and others
pushed to bring the company’s focus
back to Poland and Eastern Europe,
after management indicated it
would pursue M&A elsewhere in
Europe.
Releasing its first-half results
yesterday, Stock Spirits revealed its
revenue was up €8m (£6.8m) to
€116m in the six months to 30 June.
Operating profit more than doubled
to €12.5m, while earnings before
interest, tax, depreciation and
amortisation rose to €17.9m, up from
€10.8m in 2015. Total volumes grew
to 5.4m nine-litre cases.
“I am delighted to have been
appointed chief executive and
pleased to announce Ebitda growth
across all our markets for the first
half of this year, after a difficult
2015,” Stachowicz said.
Stock Spirits’ share price closed up
two per cent to 162.75p on the news.
BILLY BAMBROUGH
Rottweiler turns
up the pressure
on Speedy Hire
JESSICA MORRIS
@jssmorris
ACTIVIST investor Toscafund yesterday
published an open letter to Speedy
Hire, reiterating its call for the industrial tools and equipment rental firm’s
chairman to resign.
Toscafund believes current chairman
Jan Astrand has failed to deliver
during his time as executive chairman
and lacks the “appropriate track
record or attitude” to oversee the company’s turnaround. It now wants him
to resign ahead of the next general
meeting.
Toscafund’s chief executive, Martin
Hughes, said in a letter to Astrand:
“We believe that it would be in shareholders’ best interests if you were to
resign ahead of the meeting to save
both time and expense.
“You will by now be aware of the significant shareholder discontent about
your track record ... in terms of governance and shareholder value creation.”
Speedy Hire’s shares closed up 3.62
per cent to 35.75p per share yesterday,
after rising as much as 4.34 per cent.
Hughes has garnered the nickname
Rottweiler in the City for his some-
what aggressive investing stance and
practice.
His warning came after Speedy
Hire’s board bowed to the fund’s
demands last month, saying that it
would call a general meeting for shareholders to vote on Astrand’s removal.
The company recently initiated a
review of its operations after falling to
a full-year loss. Speedy Hire suffered
due to the botched implementation of
an IT system, as well as a shortage of
equipment to rent out to customers.
Hughes’ letter also said: “This is the
first time in Toscafund’s 16-year history that we have felt compelled to take
such action at one of the companies in
which we invest and we do not do so
lightly.”
SPEEDY HIRE
36.00
35.75
35.50
35.00
35.25
35.00
34.75
34.50
P
35.75
10 August
4 Aug 5 Aug 8 Aug 9 Aug 10 Aug
revenue of £3.8m, up from £320,000
in the six months to June 2015.
Midatech’s acquisition of Dara
gave it a commercial arm in the US
that has now launched anti-vomiting
drug Zuplenz for chemo and
radiotherapy patients. The firm is
developing treatments in the fields
of oncology, immunology and other
therapeutic areas.
Jim Phillips, Midatech chief
executive, said he expected further
progress in the US in the second half
of the year.
Markets react
well to steady
Interserve data
OLIVER GILL
Bombardier has won a £1bn order for 1,040 new train carriages for Abellio
Abellio steams ahead with £1bn
East Anglia rail franchise deal
EMMA HASLETT
@emmahaslett
THE CRAWL between London and
Norwich is about to get a little
speedier after the government gave
the East Anglia rail franchise back to
Abellio.
In a statement yesterday, the
government said its decision will cut
travel times between Liverpool Street
and Norwich, Cambridge and
Peterborough by an average of 10 per
cent, after Abellio agreed to oversee
a £1.4bn investment into the rail
franchise. The company, which is a
part of the Netherlands’ national
train operator, will provide four 90minute services between London and
Norwich as well as two 60-minute
services between London and
Ipswich.
The contract, which begins in
October this year, will include
offering customers free Wi-Fi on
trains and at stations. Abellio has
made a £1bn order for 1,040 new
train carriages from Bombardier,
whose Derby manufacturing plant
will build them.
@ojngill
SHARES in support services
provider Interserve leapt by nearly
17 per cent to 372.5p yesterday
after unveiling resilient half-year
results.
Revenues and operating profit
nudged two per cent higher
compared with 2015 with interim
dividends increasing by a similar
amount.
Chief executive Adrian Ringrose
said: “Trading in the first half of
the year, across the vast majority of
our divisions and our regions, has
been good, in markets that offer
both opportunities and challenges.
“We delivered a strong cash
performance and grew revenue and
Headline operating profit.”
Work pipeline remained identical
to 2015 at £7.6bn and £1.9bn of
work was won during the period.
“We are taking action to exit the
energy from waste sector. Our
assessment of the aggregate impact
of exiting this sector is in line with
the £70m exceptional charge we
announced in May,” said Ringrose.
The business unit comprised of
six contracts through to 2017 that
yielded £430m of revenues. No
further charges are expected.
Operating cashflow jumped from
£20m to £128m, underpinning the
reduction in debt balances to
£276m – below the guidance of
£300m-£320m.
G4S secures boost for revenues and
profit as it shakes off fraud scandal
CAITLÍN MORRISON
@citycait
SHARES in security firm G4S shot up
by over 16 per cent yesterday after the
company reported an uptick in earnings and revenue for the six months to
30 June.
Revenue was up to £3.53bn from
£3.42bn in the first half of 2015.
Profit before tax rose to £115m from
£80m last year, and earnings per share
went up to 4.5p from 2.7p. The company kept the interim dividend flat at
55p.
Shares in the company were up 17.4
per cent in early trading, the biggest
jump in the stock since 2013. They
closed at 227.2p.
G4S is still trying to shake off its
scandal-laden past – the group was
rocked in 2013 after allegations of
fraud relating to its electronic tagging
contract with the UK government –
and its share price was knocked in
June by the revelation that Orlando
massacre gunman Omar Mateen had
been employed by the company for
almost 10 years.
The group’s chief exec, Ashley
Almanza, said: “Our plans are delivering tangible results. We have much to
do to realise the full potential of our
strategy which is underpinned by our
growth, innovation, productivity and
portfolio programmes.”
Allegations of fraud relating to electronic tagging rocked G4S in 2013
CITYAM.COM
Oil dives as US
stockpiles post
surprise jump
JESSICA MORRIS
@jssmorris
CRUDE prices tumbled yesterday afternoon, as a shock build up in US oil
inventories offset the second-biggest
weekly drop in US gasoline stocks this
summer.
Brent crude, the global benchmark,
fell 1.78 per cent to $44.18 per barrel,
while its US counterpart, West Texas
Intermediate crude, slipped 1.87 per
cent to $41.97.
It came after data released by the US
Energy Information Administration
(EIA) showed crude inventories unexpectedly rose for the third consecutive
week. They added 1.1m barrels in the
seven days to 5 August, compared to
analysts’ expectations for a one million barrel draw.
This was cushioned somewhat by
gasoline and distillate stocks, which
fell by 2.8m barrels and 2m barrels respectively.
“At 523.6m barrels, US crude oil in-
NEWS
13
UK urged to
reconsider
carbon capture
JESSICA MORRIS
ventories are at historically high levels
for this time of year,” the EIA wrote in
its weekly report.
It continued: “Total motor gasoline
inventories decreased by 2.8m barrels
last week, but are well above the
upper limit of the average range. Distillate fuel inventories decreased by
two million barrels last week but are
near the upper limit of the average
range for this time of year.”
The Organisation of the Petroleum
Exporting Countries (Opec) yesterday
flagged “lingering concerns” over
weak demand from US and European
oil refiners.
“[This] could cut runs in response to
a declining gasoline crack in both regions in a period when summer driving and margins should have been at
their highest during the year,” the
group said in its monthly oil report.
Concern that the world’s oil markets
are recovering slower than previously
expected sent the black stuff to a
three-week low recently.
THIS BUS IS DELAYED Live traffic data
screens set to be added to London buses
LONDON buses were fit with screens displaying live traffic information for the first
time yesterday. Transport for London hopes the move will help Londoners avoid
congestion. The display boards have been fitted first on routes 344 and 415.
@jssmorris
THE COAL industry is lobbying the
new government to change its
stance on support for the
development of carbon capture
storage (CCS).
The World Coal Association,
which represents FTSE-listed
miners such as Glencore and Anglo
American, has written to business
secretary Greg Clark asking him to
better support the requisite
technology in the UK.
CCS would remove and store CO2
emissions from gas and coal-fired
power plants, meaning they can
generate electricity without
jeopardising the UK’s climate
change goals. A £1bn scheme to
encourage its development was
scrapped by the previous energy
minister Amber Rudd.
Benjamin Sporton, chief
executive of the industry group,
told City A.M. that the merger
between the business and energy
departments had created space for
the government to re-consider its
support for CCS, as well as
developing and eventually
exporting the technology to other
countries.
China plots route to make renminbi Centamin glitters as it
a more formidable world currency hikes gold estimates
JAKE CORDELL
@JakeCordell
CHINA has pledged to boost the role
of the renminbi in the international
economy as it plans to develop the
reputation of its under-used currency.
The People’s Bank of China (PBOC)
said yesterday it was seeking to
increase the use of the renminbi as a
reserve currency for central banks
and governments around the world,
and will improve the currency’s
“infrastructure” to expand its role in
financing cross-border investment.
Last year, the International
Monetary Fund (IMF) confirmed the
addition of the yuan to its basket of
currencies which make up the IMF’s
reserve currency, the so-called
“special drawing rights” (SDR). The
other four currencies in the SDR
basket include the dollar, the euro,
the Japanese yen and the pound.
The yuan’s addition to the SDR
becomes effective in October, where it
will become the third-most important
currency behind the dollar and the
euro.
The comments come ahead of the
PBOC’s publication of its annual
report into the “internationalisation”
of China’s currency, which provides
an update on progress and outlines
steps the government is taking to
advance the use of yuan.
JESSICA MORRIS
@jssmorris
CENTAMIN’s solid set of half-year results, in which it cut costs and boosted
production, helped its shares close up
1.28 per cent to 173.8p yesterday.
The firm’s gold production swelled
30 per cent year-on-year to 140,306
ounces in the six months to 30 June.
Meanwhile, its production costs per
unit shrank 34.7 per cent to $461 per
ounce, as its average realised gold
price rose 6.73 per cent to $1,268 per
ounce.
This helped its pre-tax profits jump
142 per cent to $114m (£87.6m).
Andrew Pardey, chief executive of
Centamin, said: “Our 2016 guidance
has been updated to reflect the strong
first half.”
Broker Canaccord Genuity said that
the key stand out “was a very strong
performance in cost control”.
JOIN OUR PRESTIGIOUS LIST OF WINNERS
Hosted by Julia Hartley-Brewer
THURSDAY 10 NOVEMBER, GRANGE ST PAUL’S HOTEL
Nominations for 12 categories are now open.
Visit CityAM.com/awards-nominate before 12 August 2016
to submit your nominations.
THE CATEGORIES
PERSONALITY OF THE YEAR BUSINESS OF THE YEAR BANK OF THE YEAR INSURANCE COMPANY OF THE YEAR LAW FIRM OF THE YEAR ACCOUNTANCY FIRM OF THE YEAR FINTECH COMPANY OF THE YEAR INNOVATIVE COMPANY OF
THE YEAR DEALMAKER OF THE YEAR INVESTOR OF THE YEAR ANALYST OF THE YEAR ENTREPRENEUR OF THE YEAR
14
MARKETS
CITYAM.COM
CITYDASHBOARD
LONDON REPORT
FTSE notches up
fifth positive day
as financials gain
T
HE FTSE 100 saw its fifth
straight day of gains
yesterday as stronger
financial stocks offset
weaker energy shares. The
blue-chip index rose 0.2 per cent to
6,866.42 points to close near its
highest level in 14 months.
Financial stocks sent the index
higher as insurer Prudential
advanced 2.2 per cent, helping lift
rivals such as Legal & General and
Admiral, up 3.3 per cent and 0.2 per
cent respectively. Admiral touched a
record high shortly after the market
opened before paring back gains.
Although Prudential reported
lower first-half profits, it said it was
well placed to deliver both growth
and cash.
Shares in BP and Royal Dutch
Shell slipped on the back of weaker
oil prices, after a global supply glut
weighed on the energy market and
analysts said that talks of a potential
producer meeting to discuss
propping up prices was unlikely to
have any impact on supplies. Both
finished down by 0.5 per cent.
Engineering firm Rolls Royce lead
the FTSE, closing up 4.4 per cent.
NEW YORK
REPORT
To appear in Best of the Brokers, email your research to [email protected]
TULLETT PREBON
P
365
10 August
Oil slide leaves
Wall St burnt
349.50
360
355
350
345
4 Aug
5 Aug
8 Aug
9 Aug
10 Aug
Inter-dealer broker Tullett Prebon has had its “buy” rating reiterated by analysts at
Liberum. Brokers upgraded its target price to 413p from 353p, while shares closed
yesterday at 349.5p. The rise was driven by the group’s first-half results surprising to
the upside, new commitments by management to make at least £60m in back office
savings and its soon-to-be-completed acquisition of Icap’s global broking business.
AMEC FOSTER WHEELER
540
P
520
10 August
500
502.50
440
6,800
4 Aug
BEST OF THEBROKERS
460
6,900
6,600
YOUR ONE-STOP SHOP BROKER
VIEWS AND MARKET REPORTS
480
FTSE
6,700
In association with
4 Aug
6,866.42
10 August
5 Aug 8 Aug 9 Aug 10 Aug
5 Aug
8 Aug
9 Aug
10 Aug
Brokers at Canaccord Genuity have reiterated Amec Foster Wheeler’s “buy” rating
and placed a 700p target on the oil and gas engineer’s stock. Shares closed
yesterday at 502.5p. Analysts said the first set of results under new chief executive
Jonathan Lewis were well ahead of forecasts, while results outside of the firm’s oil
and gas branch – particularly in solar – had shown a “very strong performance”.
W
ALL Street retreated from
record levels yesterday after a
drop in oil prices pressured
energy stocks, while shares of Walt
Disney surged on its results and an
acquisition.
A rally since late June has pushed the
S&P 500 up more than six per cent in
2016 as low interest rates encourage
investors to buy US equities, although
high valuations are of concern to
many.
Exxon Mobil lost 1.75 per cent and
was the biggest drag on the S&P 500
and the Dow.
The Dow Jones industrial average
declined 0.2 per cent to finish at
18,495.66 points and the S&P 500 lost
0.29 per cent, to 2,175.49 points. The
S&P 500 hit four record intraday highs
this month.
The Nasdaq Composite dropped 0.4
per cent to 5,204.59.
Shares of Walt Disney rose 1.23
percent after the company late on
Tuesday reported results that beat
estimates and said it is buying a 33 per
cent stake in video-streaming firm
BAMTech.
CITY MOVES WHO’S SWITCHING JOBS
THE CROWN ESTATE
UK real estate business, The
Crown Estate, has appointed
Robin Budenberg as
chairman. Robin is a
prominent figure from the UK
finance sector and his
appointment follows the
retirement of Sir Stuart
Hampson. He is currently
London chairman of
Centerview Partners and a
non-executive director for Charity Bank and the Big
Society Trust. Robin is the former chairman and chief
executive of UK Financial Investments, whose
responsibilities include managing the government’s
shareholdings in the Royal Bank of Scotland Group
and Lloyds Banking Group.
Majesty’s Treasury, including heading the European
and international financial services division.
STANDARD CHARTERED
Tim Adams, Luke Brooks, Rebecca Shepherd and Chris
Springett have all been promoted to partner at Smith
& Williamson, the accountancy, investment
management and tax group. Tim, who is a founding
member of Smith & Williamson’s Entrepreneurs Group,
has been promoted to partner within the assurance
and business services division while Luke specialises in
advising partners in law firms, sportspeople and
entrepreneurs on their financial planning. Rebecca,
who manages a selection of investment portfolios, has
been promoted to partner of Smith & Williamson
Standard Chartered Bank has appointed Daniel
Trinder as head, regulatory reform. Daniel will report to
Neil Barry, group head of compliance, and will be
based in London. He will join Standard Chartered from
Deutsche Bank where he was the managing director
and global head of regulatory policy. Daniel will be
responsible for ensuring the bank is prepared to meet
the challenges of constant and rapid regulatory
change. Prior to Deutsche Bank, Daniel worked at
Goldman Sachs and held a number of positions in Her
SMITH & WILLIAMSON
Investment Management, and, Chris has been
promoted to partner within the private client tax
services team.
ECCLESIASTICAL
Specialist financial services group, Ecclesiastical, has
appointed John Blundell as managing director of its
UK general insurance business. Before joining
Ecclesiastical from Covea, where he was Deputy CEO,
John was managing director at Sterling Insurance
Group prior to their acquisition in February 2015. He
was MD of St Andrews Group (part of HBOS), and held
senior roles at Mercantile/Barclays and Consolidated
Insurance Group. John holds a law degree from
Sheffield University and is ACII qualified.
To appear in CITYMOVES please email your career updates and pictures to [email protected]
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CITYAM.COM
FTSE 100
FTSE 250
6866.42
15.12
17699.68
12.28
Price Chg High Low
-0.02
-0.06
-0.04
-0.08
-0.07
-0.06
-0.03
-0.03
-0.00
0.19
0.17
0.27
0.30
0.20
0.35
0.52
0.33
0.85
0.80
0.98
1.21
1.71
1.25
1.47
1.92
1.85
2.10
2.10
2.16
2.59
2.68
106.0
116.7
111.0
112.7
111.7
117.2
372.8
138.4
121.5
129.0
113.8
119.4
370.8
138.3
138.4
139.9
162.2
374.4
152.8
148.4
157.7
144.5
155.2
170.0
166.9
173.2
153.4
176.0
184.3
193.6
188.6
104.1
108.7
107.7
110.8
109.4
114.4
354.6
134.3
114.5
118.3
102.9
105.7
331.5
126.0
121.9
122.1
143.3
324.1
130.0
124.0
132.7
119.5
125.2
135.6
132.5
134.3
115.3
132.5
135.6
144.9
138.1
BATS UK 100
BATS UK 250
DOW JONES
NASDAQ
S&P 500
/€ 1.1643
0.0049 €/$ 1.1180
0.0066
3732.38
7.54
11638.09
10.35
16091.05
41.58
18495.66
37.39
5204.58
20.89
2175.49
6.25
/$ 1.3014
0.0017 €/£ 0.8589
0.0039
/¥ 131.73
0.6590 €/¥ 113.18
0.0290
Price Chg High Low
AEROSPACE & DEFENCE
BAE Systems . . . . . . . . .521.5
Cobham . . . . . . . . . . . . .159.3
Meggitt . . . . . . . . . . . . .461.8
QinetiQ Group . . . . . . . .223.3
Rolls-Royce Holdi . . . . .797.0
Senior . . . . . . . . . . . . . .224.0
Ultra Electronics . . . . .1724.0
-3.5
-2.5
2.1
-0.5
33.5
-0.5
-21.0
545.5
260.4
506.5
274.4
831.0
302.5
2026.0
425.5
127.5
346.5
212.0
512.5
186.0
1595.0
AUTOMOBILES & PARTS
GKN . . . . . . . . . . . . . . . .307.4 3.6 309.4 248.6
BANKS
Aldermore Group . . . . .153.6 6.7
Barclays . . . . . . . . . . . . .163.7 2.5
BGEO Group . . . . . . . . .2916.0 -22.0
CYBG . . . . . . . . . . . . . . .260.0 -5.6
HSBC Holdings . . . . . . .544.3 3.5
Lloyds Banking Gr . . . . .55.5 0.5
Metro Bank . . . . . . . . .2231.0 11.0
Royal Bank of Sco . . . . .194.9 2.6
Shawbrook Group . . . .203.9 1.2
Standard Chartere . . . .660.9 -7.3
Virgin Money Hold . . . .286.9 4.0
303.2
278.4
2962.4
289.5
577.4
81.1
2262.0
344.7
365.0
863.4
450.0
104.8
127.2
1570.0
182.8
416.2
47.6
1623.0
148.9
132.0
386.7
205.0
BEVERAGES
Barr (A.G.) . . . . . . . . . . .517.0
Britvic . . . . . . . . . . . . . .610.5
Coca-Cola HBC AG . . . .1571.0
Diageo . . . . . . . . . . . . .2191.5
SABMiller . . . . . . . . . .4380.0
-10.0
-1.0
1.0
9.5
7.0
614.5 455.3
738.5 584.0
1629.0 1255.0
2192.0 1640.0
4440.0 2877.5
CHEMICALS
Croda Internation . . . .3366.0 -22.0
Elementis . . . . . . . . . . .218.8 -1.7
Johnson Matthey . . . .3279.0 -3.0
Synthomer . . . . . . . . . .384.3 -2.5
Victrex plc . . . . . . . . . .1514.0 2.0
3388.0 2657.7
259.4 180.6
3286.0 2230.0
387.0 275.1
1939.0 1367.0
Balfour Beatty . . . . . . . .237.1
CRH . . . . . . . . . . . . . . .2385.0
Galliford Try . . . . . . . . .1027.0
Ibstock . . . . . . . . . . . . . .158.5
Keller Group . . . . . . . . .897.0
Kier Group . . . . . . . . . .1145.0
Marshalls . . . . . . . . . . . .281.7
Polypipe Group . . . . . .262.9
2.1
16.0
39.0
-0.7
35.0
22.0
-1.9
-2.3
272.5
2386.0
1813.0
225.0
1054.0
1513.0
370.8
362.0
190.8
1637.0
785.0
114.7
728.5
932.0
206.5
221.5
ELECTRICITY
Drax Group . . . . . . . . . .312.0 -3.0 357.2 207.6
SSE . . . . . . . . . . . . . . . .1526.0 -10.0 1628.0 1321.0
ELECTRONIC & ELECTRICAL EQ.
Halma . . . . . . . . . . . . .1079.0
Morgan Advanced M . .284.5
Renishaw . . . . . . . . . .2633.0
Spectris . . . . . . . . . . . .1944.0
-2.0
2.0
-12.0
-4.0
1082.0 713.0
347.5 192.3
2650.0 1600.0
1959.0 1442.0
EQUITY INVESTMENT INSTRUM.
Aberforth Smaller . . . .1012.0 2.0 1216.0 849.0
Alliance Trust . . . . . . . .580.0 1.5 580.4 440.1
Bankers Inv Trust . . . . .648.0 -7.0 660.0 522.0
BH Macro Ltd. GBP . . . .1935.0 -4.0 2103.0 1915.0
British Empire Tr . . . . . .550.0 1.0 550.5 412.0
Caledonia Investm . . .2400.0 -5.0 2511.0 2112.0
City of London In . . . . .403.5 -0.5 404.5 341.5
Edinburgh Inv Tru . . . . .718.0 -2.5 728.0 620.0
Electra Private E . . . . .3780.0 -35.0 4019.0 3175.0
Fidelity China Sp . . . . . .165.8 1.3 165.8 110.5
Fidelity European . . . . .177.0 -1.0 180.9 151.2
Finsbury Growth & . . . .659.5 1.5 660.5 532.5
Foreign and Colon . . . .498.0 -1.2 501.8 391.2
GCP Infrastructur . . . . . .129.3 -1.9 131.5 114.8
Genesis Emerging . . . .588.0 -6.0 594.0 400.5
HarbourVest Globa . . .926.0 2.0 1377.5 825.0
HICL Infrastructu . . . . . .176.8 -5.2 185.1 150.2
International Pub . . . . .156.5 -1.9 162.6 130.3
John Laing Infras . . . . . .137.9 0.4 140.4 114.0
JPMorgan American . . .338.4 -3.1 341.5 243.0
JPMorgan Emerging . . .714.0 0.0 714.0 483.0
Mercantile Invest . . . . .1661.0 0.0 1838.0 1375.0
Monks Inv Trust . . . . . .492.5 2.1 494.9 361.1
Murray Internatio . . . .1079.0 -6.0 1088.0 742.5
NB Global Floatin . . . . . .93.0 -0.1 97.5 84.6
P2P Global Invest . . . . .805.0 -9.0 1090.0 804.0
Perpetual Income . . . . .382.1 -2.4 423.5 332.0
Personal Assets T . . .40010.0 -90.0 40140.033130.0
Polar Capital Tec . . . . . .770.0 3.0 778.5 503.5
RIT Capital Partn . . . . .1776.0 5.0 1784.5 1436.0
Riverstone Energy . . .1032.0 -18.0 1060.0 720.0
Scottish Inv Trus . . . . . .699.0 1.5 699.0 544.5
Scottish Mortgage . . . .306.2 -0.1 306.9 220.6
Temple Bar Inv Tr . . . . .1115.0 0.0 1157.0 940.0
Templeton Emergin . . .575.0 -1.0 577.5 371.5
The Renewables In . . . .106.4 0.0 106.5 90.3
TR Property Inv T . . . . .310.4 -1.2 314.9 241.7
Witan Inv Trust . . . . . . .827.0 -1.0 830.2 683.0
Woodford Patient . . . . .91.6 -0.2 117.1 81.0
Worldwide Healthc . . .2124.0 -5.0 2145.0 1596.0
FINANCIAL SERVICES
3i Group . . . . . . . . . . . .625.0
3i Infrastructure . . . . . .195.2
Aberdeen Asset Ma . . .326.9
Allied Minds . . . . . . . . .367.4
Arrow Global Grou . . . .225.5
Ashmore Group . . . . . .354.2
Brewin Dolphin Ho . . . .255.0
Charles Taylor . . . . . . . .275.0
City of London In . . . . .335.5
-7.0
-2.8
-1.1
2.4
2.8
-4.6
-1.6
5.0
-13.5
634.0
200.0
364.5
535.0
288.0
359.6
319.3
289.0
365.5
389.8
163.6
209.3
267.0
178.3
196.4
210.2
221.0
285.0
Price Chg High Low
Close Brothers Gr . . . .1330.0 -2.0 1547.0 989.5
CMC Markets . . . . . . . . .274.8 -4.2 290.8 219.0
Hargreaves Lansdo . . .1337.0 -10.0 1525.0 1054.0
Henderson Group . . . . .251.2 0.5 312.0 195.0
ICAP . . . . . . . . . . . . . . . .459.8 0.9 515.5 381.8
IG Group Holdings . . . . .913.5 -1.0 915.5 690.0
Intermediate Capi . . . .585.5 -4.0 671.9 454.2
International Per . . . . .267.0 -3.5 426.0 219.0
Investec . . . . . . . . . . . .486.8 12.6 586.0 402.7
IP Group . . . . . . . . . . . . .173.0 11.5 259.1 120.4
John Laing Group . . . . .229.1 1.1 230.2 187.0
Jupiter Fund Mana . . . .427.5 -2.0 472.5 328.9
Liontrust Asset M . . . . .325.0 0.0 350.0 235.0
LMS Capital . . . . . . . . . . .60.0 2.5 80.0 54.8
London Finance & . . . . .38.5 0.0 40.5 34.0
London Stock Exch . . .2847.0 28.0 2906.0 2123.0
Man Group . . . . . . . . . . .116.3 -0.5 175.7 107.3
OneSavings Bank . . . . .230.5 15.0 405.6 176.2
Paragon Group Of . . . .292.6 2.6 444.8 227.4
Provident Financi . . . .2817.0 -8.0 3634.0 2164.0
PureTech Health . . . . . .161.0 -0.5 170.5 120.0
Rathbone Brothers . . .1813.0 -23.0 2359.0 1590.0
Real Estate Credi . . . . . .163.0 -1.0 183.0 143.0
Record . . . . . . . . . . . . . . .25.3 0.0 38.8 22.1
S&U . . . . . . . . . . . . . . .2400.0 0.0 2610.0 1992.5
Sanne Group . . . . . . . .390.0 0.0 449.0 264.0
Schroders . . . . . . . . . .2719.0 -8.0 3075.0 2049.0
SVG Capital . . . . . . . . . .555.5 -3.5 564.0 436.0
Tullett Prebon . . . . . . . .349.5 -1.0 405.6 275.0
VPC Specialty Len . . . . . .83.5 -1.3 103.8 77.0
Walker Crips Grou . . . . .44.3 0.0 52.5 41.3
AIR LIQUIDE .....................................................96.07
AIRBUS GROUP.................................................51.20
ALLIANZ N.......................................................135.90
ANHEUS.-BUSCH INBEV ..................................110.50
ASML HLDG......................................................98.00
AXA...................................................................18.50
BANCO SANTANDER ...........................................3.82
BASF N..............................................................72.42
BAYER N............................................................97.42
BBVA..................................................................5.28
BMW.................................................................80.19
BNP PARIBAS-A-..............................................44.63
CARREFOUR .....................................................22.40
DAIMLER N .......................................................62.68
DANONE ...........................................................68.75
DEUTSCHE BANK N............................................12.76
DEUTSCHE POST N.............................................28.18
DEUTSCHE TELEKOM N ......................................15.66
E.ON N................................................................8.70
ENEL...................................................................4.05
ENGIE ...............................................................14.56
ENI .....................................................................13.51
ESSILOR INTL ...................................................115.00
FRESENIUS........................................................68.53
GENERALI ...........................................................12.11
IBERDROLA.........................................................6.01
INDITEX ............................................................31.82
ING GROUP.......................................................10.50
INTESA SANPAOLO..............................................1.95
L'OREAL...........................................................173.00
LVMH...............................................................153.05
MUENCH RUECKVERS N...................................159.65
NOKIA.................................................................5.07
ORANGE ............................................................13.83
ROY.PHILIPS......................................................24.97
SAFRAN.............................................................61.75
SAINT GOBAIN..................................................38.79
SANOFI...............................................................71.21
SAP...................................................................78.65
SCHNEIDER ELECTRIC .......................................60.58
SIEMENS N ......................................................105.45
SOCIETE GENERALE ...........................................31.88
TELEFONICA .......................................................9.00
TOTAL ...............................................................43.05
UNIBAIL-RODAMCO........................................246.20
UNICREDIT..........................................................2.05
UNILEVER CERT.................................................41.05
VINCI .................................................................67.71
VIVENDI.............................................................18.01
VOLKSWAGEN VZ............................................126.40
Chg
High
Low
0.29
0.10
2.10
-0.40
-1.05
0.23
0.01
0.17
-1.40
0.05
-0.10
-0.19
0.10
-0.19
-0.07
0.38
-0.07
-0.11
-0.74
-0.01
-0.09
-0.04
-0.30
-0.57
0.01
-0.02
-0.30
-0.09
0.02
-1.10
-0.55
-1.65
0.01
-0.10
0.37
0.07
-0.26
-1.84
-0.19
0.42
-0.80
0.02
-0.00
-0.35
0.25
0.02
-0.37
0.03
0.02
-0.15
123.65
68.50
170.00
124.20
100.50
26.02
6.27
82.10
135.00
9.08
104.85
60.36
30.87
85.50
69.89
30.88
28.29
16.98
12.03
4.40
17.93
16.27
124.55
70.00
18.12
6.46
35.38
14.92
3.51
177.90
174.30
193.65
7.11
16.98
25.19
72.45
44.15
99.72
79.15
64.82
106.25
48.37
13.74
44.65
257.85
6.17
42.84
68.30
24.25
189.05
88.25
48.07
118.35
87.73
70.25
16.11
3.15
56.01
83.45
4.50
63.38
35.27
20.90
50.83
51.73
11.06
19.55
12.94
7.08
3.33
12.34
10.93
94.08
52.39
9.76
4.70
26.00
8.30
1.52
140.40
130.55
140.90
4.48
12.21
19.76
48.87
31.47
62.50
53.91
45.32
77.91
25.00
7.45
34.21
212.05
1.70
32.86
51.11
14.87
86.36
Price Chg High Low
GENERAL RETAILERS
AA . . . . . . . . . . . . . . . . .268.5
AO World . . . . . . . . . . . .148.0
Auto Trader Group . . . .386.0
B&M European Valu . . .273.6
Brown (N.) Group . . . . .178.2
Card Factory . . . . . . . . .320.2
Darty . . . . . . . . . . . . . . . .171.3
Debenhams . . . . . . . . . . .57.1
DFS Furniture . . . . . . . .224.0
Dignity . . . . . . . . . . . . .2710.0
Dixons Carphone . . . . . .361.1
Dunelm Group . . . . . . .884.5
Halfords Group . . . . . . .360.8
Home Retail Group . . . .157.8
Inchcape . . . . . . . . . . . .709.5
JD Sports Fashion . . . . .1313.0
Just Eat . . . . . . . . . . . . .581.5
Kingfisher . . . . . . . . . . .354.7
Marks & Spencer G . . . .338.7
Next . . . . . . . . . . . . . .5390.0
Pendragon . . . . . . . . . . .32.5
Pets at Home Grou . . . .255.6
Saga . . . . . . . . . . . . . . . .216.7
Sports Direct Int . . . . . .294.8
Ted Baker . . . . . . . . . .2339.0
WH Smith . . . . . . . . . .1579.0
BT Group . . . . . . . . . . . .408.4 3.4 499.8 375.9
TalkTalk Telecom . . . . .219.9 -0.1 323.0 189.5
Telecom Plus . . . . . . . .1048.0 -12.0 1171.0 815.5
FOOD & DRUG RETAILERS
Booker Group . . . . . . . .175.5
Greggs . . . . . . . . . . . . .1053.0
Morrison (Wm) Sup . . . .191.3
Ocado Group . . . . . . . . .305.1
Sainsbury (J) . . . . . . . . .234.5
SSP Group . . . . . . . . . . .330.6
Tesco . . . . . . . . . . . . . . .158.9
UDG Healthcare Pu . . . .598.0
-1.0
3.0
-0.2
10.1
-1.4
-1.4
0.8
3.5
190.0
1314.0
209.4
407.1
292.5
332.2
209.6
625.0
149.4
884.0
139.0
208.1
214.6
264.0
139.2
460.3
-15.0
-33.0
-0.5
-1.5
-9.0
-18.0
3599.0 2350.0
2538.0 1536.0
697.0 504.5
392.4 273.2
734.0 502.0
3678.5 2524.0
0.6
0.6
-2.4
9.7
5.3
-0.5
0.3
-1.3
4.2
-6.0
1.2
0.5
4.6
-0.8
4.5
5.0
7.5
-0.3
0.3
60.0
-0.4
-1.5
0.7
2.6
35.0
-10.0
368.6 209.9
189.3 120.5
449.6 313.8
354.9 233.1
389.1 160.4
399.0 299.6
174.0 68.0
89.6 52.9
349.0 181.0
2834.0 2205.0
500.0 281.6
1018.0 741.0
537.5 305.6
181.5 89.7
810.0 581.0
1332.0 805.5
582.5 329.1
379.7 306.7
546.5 285.2
8015.0 4384.0
49.0 26.7
311.2 222.2
217.8 173.9
815.5 252.2
3555.0 2124.0
1878.0 1455.0
Price Chg High Low
Weir Group . . . . . . . . .1534.0 17.0 1565.0 787.5
INDUSTRIAL METALS & MINING
Evraz . . . . . . . . . . . . . . . .174.5 -0.1
Risers
%
16.2
10.3
7.1
7.0
6.2
4.6
4.4
4.3
4.1
4.0
G4S . . . . . . . . . . . . . . . . . . . . . . .227.2
Entertainment One . . . . . . . . . .240.0
IP Group . . . . . . . . . . . . . . . . . . .173.0
OneSavings Bank . . . . . . . . . . . .230.5
Paysafe Group . . . . . . . . . . . . . .415.2
Aldermore Group . . . . . . . . . . . .153.6
Rolls-Royce Holdin . . . . . . . . . . .797.0
SIG . . . . . . . . . . . . . . . . . . . . . . . .104.9
Keller Group . . . . . . . . . . . . . . . .897.0
Galliford Try . . . . . . . . . . . . . . . .1027.0
FOOD PRODUCERS
FORESTRY & PAPER
Mondi . . . . . . . . . . . . . .1610.0 12.0 1610.0 1124.0
GAS, WATER & MULTIUTILITIES
Centrica . . . . . . . . . . . . .233.2
National Grid . . . . . . . .1076.5
Pennon Group . . . . . . .883.0
Severn Trent . . . . . . . .2410.0
United Utilities . . . . . . .988.5
-1.0
-0.5
0.5
0.0
-1.0
270.4 183.6
1130.5 818.7
945.5 713.0
2478.0 2024.0
1039.0 828.0
4.0
-0.3
19.0
-13.0
3.4
888.0
416.8
1341.9
2783.0
399.1
GENERAL INDUSTRIALS
RPC Group . . . . . . . . . . .887.0
Smith (DS) . . . . . . . . . .406.9
Smiths Group . . . . . . . .1341.0
Smurfit Kappa Gro . . . .1815.0
Vesuvius . . . . . . . . . . . .376.8
575.6
331.2
863.5
1584.0
270.6
56.2
BBA Aviation . . . . . . . . .256.1 -1.4 260.0 150.2
Clarkson . . . . . . . . . . .2000.0 -40.0 2772.0 1691.0
Royal Mail . . . . . . . . . . .513.0 0.5 541.0 413.3
NON LIFE INSURANCE
Admiral Group . . . . . .2248.0
Beazley . . . . . . . . . . . . .403.2
Direct Line Insur . . . . . .393.0
esure Group . . . . . . . . . .261.6
Hastings Group Ho . . . .206.1
Hiscox Limited (D . . . .1088.0
Jardine Lloyd Tho . . . . .964.5
Lancashire Holdin . . . .620.5
RSA Insurance Gro . . . .509.5
5.0
0.0
0.7
-5.9
1.1
3.0
-14.0
6.5
2.5
2258.1
406.7
414.3
288.1
209.0
1094.0
1054.0
759.0
516.0
1433.0
318.4
333.3
223.7
149.8
867.0
778.0
518.5
373.2
LIFE INSURANCE
Aviva . . . . . . . . . . . . . . .419.2
JRP Group . . . . . . . . . . . .93.5
Legal & General G . . . . .212.8
Old Mutual . . . . . . . . . .225.5
Phoenix Group Hol . . . .837.5
Prudential . . . . . . . . . .1423.0
0.7
-5.5
6.8
2.7
-1.0
31.0
521.0
191.2
274.9
225.6
943.5
1577.0
346.2
93.5
165.0
149.4
719.0
1087.0
HEALTH CARE EQUIPMETN & S.
Assura . . . . . . . . . . . . . . .57.9
Mediclinic Intern . . . . . .1101.0
NMC Health . . . . . . . . .1241.0
Smith & Nephew . . . . .1265.0
Spire Healthcare . . . . .342.7
-0.3
7.0
43.0
-13.0
2.1
61.8
1191.0
1302.0
1310.0
401.6
49.2
814.0
700.0
1051.0
279.9
HHOLD GDS & HOME CONSTR.
Barratt Developme . . . .435.9 1.5
Bellway . . . . . . . . . . . .2115.0 -9.0
Berkeley Group Ho . . .2613.0 -37.0
Bovis Homes Group . . .807.5 -2.5
Crest Nicholson H . . . . .428.5 3.9
McCarthy & Stone . . . . . .171.1 -0.2
Persimmon . . . . . . . . .1695.0 -7.0
Reckitt Benckiser . . . .7420.0 -40.0
Redrow . . . . . . . . . . . . .341.0 2.8
Taylor Wimpey . . . . . . .153.8 -0.8
662.5 332.6
2848.0 1689.0
3757.0 2270.0
1201.0 627.0
604.0 335.0
287.0 140.3
2219.0 1289.0
7692.0 5510.0
499.2 275.6
210.3 115.8
INDUSTRIAL ENGINEERING
Bodycote . . . . . . . . . . .602.5 -10.0
Hill & Smith Hold . . . . .1118.0 -25.0
IMI . . . . . . . . . . . . . . . .1082.0 14.0
Rotork . . . . . . . . . . . . . .205.4 0.2
Spirax-Sarco Engi . . . .4415.0 67.0
671.5
1143.0
1091.0
222.0
4435.0
494.0
643.5
742.0
152.7
2725.0
Price
Wireless Group . . . . . . .308.0
WPP . . . . . . . . . . . . . . .1769.0
Zoopla Property G . . . .304.9
Chg High Low
0.3 312.0 146.1
17.0 1770.0 1304.0
-4.4 337.8 199.3
MINING
Acacia Mining . . . . . . . .591.5 3.0
Anglo American . . . . . .876.9 -2.1
Antofagasta . . . . . . . . .526.5 1.0
BHP Billiton . . . . . . . . .1038.5 -11.0
Centamin (DI) . . . . . . . .173.8 2.2
Fresnillo . . . . . . . . . . .1960.0 3.0
Glencore . . . . . . . . . . . .195.3 -0.7
Hochschild Mining . . . .300.0 4.9
Kaz Minerals . . . . . . . . .159.9 0.5
Polymetal Interna . . . .1167.0 13.0
Randgold Resource . .8595.0 100.0
Rio Tinto . . . . . . . . . . .2501.0 -24.0
Vedanta Resources . . . .538.0 -6.5
Fallers
%
-6.5
-5.5
-4.0
-3.9
-3.6
-2.9
-2.9
-2.4
-2.4
-2.2
OIL & GAS PRODUCERS
BP . . . . . . . . . . . . . . . . .423.0
Cairn Energy . . . . . . . . .193.0
Royal Dutch Shell . . . . .1916.5
Royal Dutch Shell . . . .1984.5
Tullow Oil . . . . . . . . . . . .215.5
-2.2
-2.7
-2.0
-10.5
-4.7
461.8
231.5
2107.5
2148.0
281.4
310.3
127.2
1266.0
1277.5
118.2
Amec Foster Wheel . . .502.5 -18.5 839.5 327.6
Petrofac Ltd. . . . . . . . . .823.0 3.0 982.0 663.0
Wood Group (John) . . .719.5 6.0 723.0 534.5
PERSONAL GOODS
Burberry Group . . . . . .1326.0 9.0 1536.0 1041.0
PZ Cussons . . . . . . . . . . .349.1 -3.1 354.0 249.3
Supergroup . . . . . . . . .1581.0 -4.0 1714.0 1184.0
PHARMACEUTICALS & BIOTECH
Capital & Countie . . . . .281.9 2.3
CLS Holdings . . . . . . . .1356.0 -40.0
Countryside Prope . . . .236.2 1.2
Countrywide . . . . . . . . .238.4 -1.5
Daejan Holdings . . . . .5710.0 95.0
F&C Commercial Pr . . . .122.5 -0.8
Grainger . . . . . . . . . . . .219.8 1.3
Kennedy Wilson Eu . . .986.0 -10.5
Safestore Holding . . . . .362.4 -6.5
Savills . . . . . . . . . . . . . .683.5 -6.0
St. Modwen Proper . . . .281.1 2.2
UK Commercial Pro . . . . .78.1 -1.4
Unite Group . . . . . . . . . .619.0 -9.0
5220.0 3774.0
728.0 520.5
353.5 82.3
1371.0 912.0
1968.0 1281.0
1710.2 1237.5
2676.0 1704.0
299.7 130.8
5360.0 3480.0
188.5 144.0
473.4
1970.0
278.5
522.5
6595.0
148.7
254.0
1220.0
400.5
964.5
493.6
88.5
702.5
263.7
1163.0
173.2
227.0
4411.0
102.1
193.1
888.5
283.0
548.5
222.2
65.0
560.0
886.5
877.0
3880.0
889.5
685.5
124.1
353.2
654.5
544.5
2257.0
536.0
468.6
95.4
255.7
REAL ESTATE INVEST. TRUSTS
Big Yellow Group . . . . . .721.0
British Land Comp . . . .664.0
Derwent London . . . . .2819.0
Great Portland Es . . . . .661.5
Hammerson . . . . . . . . .563.0
Hansteen Holdings . . . .109.4
Intu Properties . . . . . . .308.0
-11.0
-1.0
44.0
6.5
3.0
0.0
-0.3
TOBACCO
TRAVEL & LEISURE
Carnival . . . . . . . . . . . .3574.0 -15.0
Cineworld Group . . . . . .593.5 -6.0
Compass Group . . . . . .1473.0 6.0
Domino's Pizza Gr . . . . .373.8 -5.0
easyJet . . . . . . . . . . . .1070.0 -6.0
FirstGroup . . . . . . . . . . .101.2 -1.5
Go-Ahead Group . . . . .1834.0 -75.0
Greene King . . . . . . . . .802.5 -10.0
InterContinental . . . .3295.0 14.0
International Con . . . . .402.5 -4.7
Ladbrokes . . . . . . . . . . .149.5 -2.0
Marston's . . . . . . . . . . . .140.2 -2.2
Merlin Entertainm . . . .474.8 -0.7
Millennium & Copt . . . .429.8 15.3
Mitchells & Butle . . . . . .246.5 -3.1
95.50
20.00
172.50
0.00
44.00
-2.34
1.95
-4.60
BoE IR Overnight.........................................0.250
BoE IR 7 days..............................................0.250
BoE IR 1 month...........................................0.250
BoE IR 3 months.........................................0.250
BoE IR 6 months.........................................0.250
LIBOR Euro - overnight .............................-0.400
LIBOR Euro - 12 months..............................-0.071
LIBOR USD - overnight.................................0.419
LIBOR USD - 12 months.................................1.523
Halifax mortgage rate ................................3.990
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.00
Euro Base Rate ...........................................0.000
Finance house base rate .............................1.000
US Fed funds.................................................0.40
US long bond yield........................................2.23
Euro Euribor...............................................-0.379
The vix index................................................12.05
The baltic dry index...................................631.00
Markit iBoxx EUR ......................................234.06
Markit iBoxx GBP.......................................335.20
Markit iTraxx................................................66.23
0.00
0.00
0.00
-0.02
0.00
0.39
-5.00
0.41
2.46
-0.19
WORLD INDICES
Price
Chg %chg
FTSE 100. . . . . . . . . . . . . . . . . . . . . 6866.42 15.12 0.22
FTSE 250 . . . . . . . . . . . . . . . . . . . . 17699.68 12.28 0.07
FTSE All-Share . . . . . . . . . . . . . . . . 3732.38
7.54 0.20
FTSE AIM All-Share . . . . . . . . . . . . . 776.94 -0.12 -0.02
Price Chg
S&P 500 . . . . . . . . . . . . . . . . . . . . . 2175.49 -6.25
Dow Jones I.A.. . . . . . . . . . . . . . . 18495.66 -37.39
Nasdaq Composite . . . . . . . . . . . . 5204.58 -20.89
Xetra DAX. . . . . . . . . . . . . . . . . . . 10650.89 -42.01
%chg
-0.29
-0.20
-0.40
-0.39
3907.0
602.0
1476.0
396.9
1808.0
117.4
2713.0
977.5
3317.0
614.5
156.2
176.0
477.5
570.0
374.0
2957.0
457.0
991.0
279.0
989.5
80.8
1790.0
728.0
2192.8
343.9
93.4
129.7
365.9
366.4
217.5
Price
National Express . . . . . .341.1
Paddy Power Betfa . .9190.0
Rank Group . . . . . . . . . .207.7
Restaurant Group . . . . .369.2
Stagecoach Group . . . .210.8
Thomas Cook Group . . . .60.3
TUI AG Reg Shs (D . . . .1012.0
Wetherspoon (J.D. . . . .874.0
Whitbread . . . . . . . . .3940.0
William Hill . . . . . . . . . .324.5
Wizz Air Holdings . . . .1575.0
Chg High Low
-2.2 349.3 272.4
10.0 14275.0 7560.0
-3.3 295.5 199.7
-0.9 723.5 256.9
-1.3 401.5 196.0
-1.5 126.0 54.7
-4.0 1271.0 844.5
-16.5 890.5 609.0
20.0 5225.0 3391.0
-4.5 410.4 246.9
-4.0 2047.0 1415.0
AIM 50
4D Pharma . . . . . . . . . .710.0 -5.0
Abcam . . . . . . . . . . . . . .742.0 -10.0
Advanced Medical . . . .213.5 -2.0
Amerisur Resource . . . . .26.3 -1.5
Arbuthnot Banking . . .1650.5 0.0
ASOS . . . . . . . . . . . . . .4710.0 -90.0
Brooks Macdonald . . .1897.5 -2.5
Camellia . . . . . . . . . . .8579.0 -121.0
Clinigen Group . . . . . . .648.5 -9.5
Conviviality . . . . . . . . . .224.0 5.0
CVS Group . . . . . . . . . . .910.0 19.0
Dart Group . . . . . . . . . . .512.0 5.5
EMIS Group . . . . . . . . .1033.0 -3.0
Fevertree Drinks . . . . . .965.0 2.5
First Derivatives . . . . . .1927.0 31.5
Gamma Communicati .436.0 4.0
GB Group . . . . . . . . . . .306.0 5.3
Gemfields . . . . . . . . . . . .38.0 -0.3
Gooch & Housego . . .1000.0 -35.0
GW Pharmaceutical . . .558.5 -41.5
Iomart Group . . . . . . . .308.0 10.5
James Halstead . . . . . .436.5 -1.5
Johnson Service G . . . . .95.8 0.3
M&C Saatchi . . . . . . . . .349.5 6.9
M. P. Evans Group . . . . .440.8 -9.5
Majestic Wine . . . . . . . .406.8 6.5
Mulberry Group . . . . . .1055.0 0.0
Nichols . . . . . . . . . . . . .1405.5 3.5
Numis Corporation . . . .193.0 -3.5
Pan African Resou . . . . .23.5 -0.8
Pantheon Resource . . . .159.5 2.0
Patisserie Holdin . . . . .282.3 3.3
Pinewood Group . . . . . .570.3 17.8
Polar Capital Hol . . . . . .307.0 -1.3
Purplebricks Grou . . . . .135.0 -1.0
Redcentric . . . . . . . . . . .183.0 -0.3
Redde . . . . . . . . . . . . . .192.8 1.3
Renew Holdings . . . . . .340.3 -5.0
RWS Holdings . . . . . . . .241.8 -8.3
Scapa Group . . . . . . . . .259.8 7.3
Secure Trust Bank . . . .2196.0 21.0
Sirius Minerals . . . . . . . . .35.3 0.5
Smart Metering Sy . . . .470.0 -5.8
Staffline Group . . . . . .1010.0 10.0
Telford Homes . . . . . . .288.5 2.8
Telit Communicati . . . . .274.8 8.0
Thorpe (F.W.) . . . . . . . . .237.5 10.0
Vertu Motors . . . . . . . . . .48.8 1.0
Watkin Jones . . . . . . . . .111.8 0.3
Young & Co's Brew . . .1200.0 -0.5
Young & Co's Brew . . . .970.3 -2.3
1012.5 660.0
775.5 551.5
217.8 143.5
33.0 17.3
1685.0 1265.0
4877.0 2473.0
2040.0 1400.0
9786.0 7510.0
753.0 492.8
238.0 155.0
910.0 609.0
676.5 429.0
1155.0 841.5
968.5 416.8
2113.0 1312.5
463.0 268.5
321.0 213.0
65.3 31.5
1060.0 816.5
623.0 211.5
312.5 214.0
520.0 379.0
99.5 84.0
370.0 282.8
450.3 345.5
477.8 296.0
1097.0 883.8
1492.0 1119.0
273.5 180.5
24.3 6.6
184.8 17.6
450.0 257.3
580.0 419.9
430.4 270.0
175.0 73.0
203.3 154.0
210.3 138.5
410.0 295.3
261.8 124.8
284.5 179.3
3385.0 1600.0
37.8 10.8
479.6 305.5
1623.0 748.5
433.8 262.0
356.0 178.3
244.5 177.0
78.5 37.8
116.0 100.3
1255.0 1075.0
980.0 792.5
http://corporate.webfg.com
mailto:
[email protected]
US SHARES
CREDIT & RATES
Copper Cash Official..................................4874.00
Aluminium Cash Official............................1645.75
Nickel Cash Official...................................10897.50
Aluminium Alloy Cash Official ..................1550.00
Cocoa Futures ...........................................3020.00
Coffee 'C' Futures..........................................138.98
Feed Wheat Futures ....................................130.20
Soybeans Futures Continuation Contract...1017.20
1286.0 770.0
1217.0 769.0
1656.0 1158.0
1084.0 854.0
1355.0 969.0
2397.0 1671.0
1300.0 848.5
354.3 221.4
6881.0 4620.0
870.5 608.0
300.0 172.5
905.0 467.7
1503.0 1022.0
269.9 164.0
752.0 440.0
168.6 94.0
581.5 363.2
531.0 341.1
3680.0 2328.0
335.6 230.0
551.0 264.9
1091.0 720.0
432.4 253.3
354.6 249.1
218.2 141.0
132.3 76.8
198.5 99.8
2132.0 1313.0
4332.0 3230.0
316.8 255.9
British American . . . .4858.5 58.5 5035.0 3355.5
Imperial Brands . . . . .4058.0 13.0 4087.5 2991.0
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6.70
0.63
-0.88
5.00
-6.00
1.00
302.50
49.00
39.00
1237.0
694.0
1758.0
1175.0
225.8
710.5
489.7
280.0
175.0
TECHNOLOGY HARDW. & EQUIP.
CITY A.M. MORNING UPDATE
COMMODITIES
2319.0
879.0
2577.0
2006.0
348.4
921.5
728.0
383.0
289.7
ARM Holdings . . . . . . .1689.0 4.0 1689.0 848.5
Laird . . . . . . . . . . . . . . .333.2 2.3 403.9 287.8
Rise | Shine
Gold ............................................................1347.70
Silver..............................................................20.33
Brent Crude....................................................44.18
Krugerrand.................................................1339.50
Palladium ...................................................686.00
Platinum.....................................................1144.00
Tin Cash Official .......................................18625.00
Lead Cash Official ......................................1839.00
Zinc Cash Official.......................................2309.50
-17.0
-9.0
-14.0
2.0
-13.7
7.0
-5.5
5.1
7.7
SUPPORT SERVICES
REAL ESTATE INVEST. & SERV.
1100.0
200.0
144.3
33.8
84.0
130.0
852.5
7.9
99.0
543.0
128.8
154.0
9.9
233.5
657.5
1011.0
3173.0
797.0
304.0
204.0
73.5
477.9
SOFTWARE & COMPUTER SERV.
Aveva Group . . . . . . . .1908.0
Computacenter . . . . . . .817.0
Fidessa Group . . . . . . .2557.0
Micro Focus Inter . . . .2002.0
NCC Group . . . . . . . . . . . .331.1
Playtech . . . . . . . . . . . . .861.5
Sage Group . . . . . . . . . .722.5
Softcat . . . . . . . . . . . . . .348.1
Sophos Group . . . . . . . .234.0
Aggreko . . . . . . . . . . .1084.0 -27.0
Ashtead Group . . . . . . .1217.0 13.0
Atkins (WS) . . . . . . . . .1493.0 2.0
Babcock Internati . . . . .995.0 10.0
Berendsen . . . . . . . . . .1257.0 -8.0
Bunzl . . . . . . . . . . . . . .2397.0 20.0
Capita . . . . . . . . . . . . . .991.0 10.5
Carillion . . . . . . . . . . . . .280.5 4.6
DCC . . . . . . . . . . . . . . .6880.0 30.0
Diploma . . . . . . . . . . . .828.0 11.5
Electrocomponents . . .298.6 0.4
Essentra . . . . . . . . . . . .484.8 -7.0
Experian . . . . . . . . . . .1503.0 12.0
G4S . . . . . . . . . . . . . . . .227.2 31.6
Grafton Group Uni . . . .536.5 -11.0
Hays . . . . . . . . . . . . . . . .119.9 0.0
Homeserve . . . . . . . . . .569.0 2.5
Howden Joinery Gr . . .436.0 4.7
Intertek Group . . . . . .3567.0 42.0
Mitie Group . . . . . . . . . .253.9 1.0
Pagegroup . . . . . . . . . .350.4 1.0
PayPoint . . . . . . . . . . . .986.0 -6.5
Paysafe Group . . . . . . . .415.2 24.1
Regus . . . . . . . . . . . . . .300.1 -20.9
Rentokil Initial . . . . . . . .218.1 1.9
Serco Group . . . . . . . . . . .131.1 0.5
SIG . . . . . . . . . . . . . . . . .104.9 4.3
Travis Perkins . . . . . . .1560.0 2.0
Wolseley . . . . . . . . . . .4239.0 29.0
Worldpay Group (W . . .311.5 2.5
MEDIA
1650.0
272.4
176.5
85.5
162.0
291.9
1124.0
11.5
126.5
755.5
174.8
278.0
112.0
377.1
1224.0
1456.0
4250.0
1127.0
515.0
274.5
182.8
684.8
Chg High Low
4.0 1352.0 910.0
-0.6 171.5 134.9
-0.8 57.5 40.5
-0.1 463.8 370.5
2.5 969.5 813.0
-2.7 140.3 114.7
-3.0 987.0 577.0
MOBILE TELECOMS
St James's Place . . . . . .965.0 12.5 1023.0 716.0
Standard Life . . . . . . . .343.4 3.4 443.7 262.1
Price Chg High Low
Price
Land Securities G . . . . .1102.0
LondonMetric Prop . . . .161.9
Redefine Internat . . . . . .43.2
SEGRO . . . . . . . . . . . . . .442.6
Shaftesbury . . . . . . . . .928.5
Tritax Big Box Re . . . . . .137.1
Workspace Group . . . . .677.0
Inmarsat . . . . . . . . . . . .865.5 20.5 1148.0 689.5
Vodafone Group . . . . . .233.1 -1.1 241.3 200.2
AstraZeneca . . . . . . . .5160.0 -17.0
BTG . . . . . . . . . . . . . . . .636.0 -8.0
Circassia Pharmac . . . . .100.5 0.5
Dechra Pharmaceut . .1342.0 -8.0
Genus . . . . . . . . . . . . .1932.0 31.0
GlaxoSmithKline . . . . .1697.5 12.5
Hikma Pharmaceuti . .2268.0 -32.0
Indivior . . . . . . . . . . . . .295.4 -2.9
Shire Plc . . . . . . . . . . .5075.0 -30.0
Vectura Group . . . . . . . .144.6 0.4
4Imprint Group . . . . . .1617.0 -33.0
Ascential . . . . . . . . . . . .240.1 -5.3
Bloomsbury Publis . . . .176.5 6.8
Centaur Media . . . . . . . . .37.0 0.0
Creston . . . . . . . . . . . . . .93.0 0.0
Entertainment One . . .240.0 22.5
Euromoney Institu . . .1100.0 0.0
Future . . . . . . . . . . . . . . . .8.8 -0.1
Haynes Publishing . . . .110.0 0.0
Informa . . . . . . . . . . . . .714.0 -3.5
ITE Group . . . . . . . . . . . .166.3 -3.3
ITV . . . . . . . . . . . . . . . . .200.5 1.8
Johnston Press . . . . . . . .10.3 0.0
Moneysupermarket. . . . .311.1 1.7
Pearson . . . . . . . . . . . . .889.5 0.5
Relx plc . . . . . . . . . . . .1455.0 8.0
Rightmove . . . . . . . . .4179.0 -10.0
Sky . . . . . . . . . . . . . . . . .887.0 -11.0
STV Group . . . . . . . . . . .334.5 -0.5
Tarsus Group . . . . . . . . .271.8 0.8
Trinity Mirror . . . . . . . . . .92.5 1.8
UBM . . . . . . . . . . . . . . . .681.5 -2.0
602.0 156.6
890.2 221.1
615.0 346.1
1194.5 580.9
183.9 54.7
2008.0 588.0
197.2 68.6
303.6 39.5
190.0 72.7
1171.0 442.7
9715.0 3625.0
2599.5 1577.5
603.5 205.8
OIL EQUIPMENT & SERVICES
Regus . . . . . . . . . . . . . . . . . . . . .300.1
JRP Group . . . . . . . . . . . . . . . . . . .93.5
NCC Group . . . . . . . . . . . . . . . . . .331.1
Go-Ahead Group . . . . . . . . . . .1834.0
Amec Foster Wheele . . . . . . . . .502.5
CLS Holdings . . . . . . . . . . . . . . .1356.0
HICL Infrastructur . . . . . . . . . . . .176.8
Aggreko . . . . . . . . . . . . . . . . . .1084.0
Thomas Cook Group . . . . . . . . . .60.3
Debenhams . . . . . . . . . . . . . . . . . .57.1
Price Chg High Low
Associated Britis . . . . .2930.0
Cranswick . . . . . . . . . .2333.0
Dairy Crest Group . . . . .644.5
Greencore Group . . . . . .331.0
Tate & Lyle . . . . . . . . . . .724.0
Unilever . . . . . . . . . . . .3553.5
177.4
INDUSTRIAL TRANSPORTATION
MAIN CHANGES UK 350
FIXED LINE TELECOMS
EU SHARES
Price
15
FTSE ALL SHARE
CONSTRUCTION & MATERIALS
GILTS
Tsy 1.250 17 . . . . . . .104.85
Tsy 8.750 17 . . . . . .109.00
Tsy 5.000 18 . . . . . . .107.76
Tsy 4.500 19 . . . . . . .111.54
Tsy 3.750 19 . . . . . . .111.50
Tsy 4.750 20 . . . . . .116.96
Tsy 2.500 20 . . . . . .372.32
Tsy 8.000 21 . . . . . . .138.01
Tsy 4.000 22 . . . . . . .121.31
Tsy 1.875 22 . . . . . . .128.79
Tsy 2.250 23 . . . . . . .113.64
Tsy 0.125 24 . . . . . . .118.86
Tsy 2.500 24 . . . . . .370.38
Tsy 5.000 25 . . . . . . .138.13
Tsy 4.250 27 . . . . . . .138.17
Tsy 1.250 27 . . . . . . .139.33
Tsy 6.000 28 . . . . . .161.78
Tsy 4.125 30 . . . . . . .374.40
Tsy 4.750 30 . . . . . .152.76
Tsy 4.250 32 . . . . . .148.35
Tsy 1.250 32 . . . . . . .157.73
Tsy 0.125 36 . . . . . . .144.52
Tsy 4.250 36 . . . . . .154.93
Tsy 4.750 38 . . . . . .169.85
Tsy 0.625 40 . . . . . .166.93
Tsy 4.500 42 . . . . . .173.24
Tsy 3.500 45 . . . . . .153.35
Tsy 4.250 46 . . . . . .175.63
Tsy 4.025 49 . . . . . .183.68
Tsy 0.500 50 . . . . . .193.49
Tsy 0.250 52 . . . . . .188.57
NEWS
Price
Chg %chg
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4452.01 -16.06 -0.36
Swiss Market Index. . . . . . . . . . . . 8208.90 -20.52 -0.25
ISEQ Overall Index. . . . . . . . . . . . . 5909.33 -50.80 -0.85
FTSEurofirst 300 . . . . . . . . . . . . . . . 1354.10 -4.00 -0.29
Price
Chg %chg
Hang Seng . . . . . . . . . . . . . . . . . . 22492.43 26.82 0.12
Shanghai Composite . . . . . . . . . . . 3018.75 -6.93 -0.23
Straits Times. . . . . . . . . . . . . . . . . . 2875.57
4.79 0.17
ASX All Ordinaries. . . . . . . . . . . . . 5628.20 -8.50 -0.15
Price
Chg
High
Low
3M...................................................................178.82
ABBVIE.............................................................66.43
ALPHABET-A..................................................808.49
ALPHABET-C ..................................................784.68
ALTRIA GROUP.................................................66.84
AMAZON.COM.................................................768.56
AMERICAN EXPRESS.........................................64.74
AMGEN ............................................................171.23
APPLE ............................................................108.00
AT&T.................................................................43.20
BANK OF AMERICA............................................14.81
BERKSHIRE HATHAWY-B................................146.69
BOEING CO......................................................132.28
CATERPILLAR....................................................82.65
CHEVRON........................................................100.14
CISCO SYSTEMS.................................................30.85
CITIGROUP .......................................................45.45
COCA-COLA CO..................................................43.61
COMCAST-A.......................................................67.22
DU PONT NEMOURS&CO ..................................69.08
EXXON MOBIL ...................................................86.41
FACEBOOK-A...................................................124.88
GENERAL ELECTRIC............................................31.27
GOLDMAN SACHS GROUP................................162.19
HOME DEPOT ..................................................135.60
IBM.................................................................162.08
INTEL................................................................34.53
JOHNSON & JOHNSON ....................................123.36
JPMORGAN CHASE...........................................65.28
MCDONALD'S...................................................118.80
MEDTRONIC ......................................................87.29
MERCK.............................................................62.64
MICROSOFT ......................................................58.02
NIKE -B-............................................................55.13
ORACLE.............................................................41.09
PEPSICO..........................................................108.82
PFIZER...............................................................35.13
PHILIP MRRS INT...............................................99.17
PROCTER&GAMBLE...........................................86.31
SCHLUMBERGER...............................................80.85
THE KRAFT HEINZ.............................................89.35
TRAVLR COMP..................................................118.23
TWITTER...........................................................19.04
UNITEDHEALTH GROUP ...................................142.19
UTD TECHNOLOGIES.........................................108.12
VERIZON COMM ................................................53.81
VISA-A.............................................................79.68
WAL-MART STORES..........................................73.95
WALT DISNEY-DISNEY ......................................97.86
WELLS FARGO...................................................48.18
WILLIS TOWERS...............................................121.82
0.43
-0.33
1.01
0.42
0.22
0.25
-0.65
-0.85
-0.81
0.12
-0.38
-0.53
-0.34
-0.18
-1.18
-0.09
-0.45
0.14
0.32
0.28
-2.29
-0.18
-0.03
-1.25
-0.51
0.31
-0.39
-0.07
-0.59
0.49
-0.45
0.15
-0.18
-0.64
-0.01
0.54
0.05
0.77
0.32
-0.98
-0.43
0.05
0.36
0.37
-0.22
0.15
-0.38
0.41
1.19
-0.75
0.59
182.27
69.82
813.33
789.87
70.15
772.60
81.66
176.50
123.82
43.89
18.09
148.03
150.59
84.29
107.58
31.25
57.92
47.13
68.36
75.72
95.55
128.33
33.00
203.10
139.00
163.60
35.93
126.07
69.03
131.96
89.27
64.00
58.50
68.20
42.00
110.94
37.39
104.20
87.15
85.12
90.49
119.30
31.87
144.48
108.50
56.95
81.73
74.51
120.65
57.72
130.97
134.00
45.45
593.09
565.05
47.41
451.00
50.27
130.09
89.47
30.97
10.99
123.55
102.10
56.36
69.58
22.46
34.52
36.56
50.01
47.11
66.55
72.00
19.37
138.20
92.17
116.90
24.87
81.79
50.07
87.50
55.54
45.69
39.72
47.25
33.13
76.48
28.25
76.54
65.02
59.60
61.42
95.21
13.73
95.00
83.39
38.06
60.00
56.30
86.25
44.50
104.11
16
OPINION
CITYAM.COM
FORUM
EDITED BY TOM WELSH
How free trade died in the US – and why DEBATE
Q: Is the IFS right
the same could happen in Britain too
to warn that
T
WO landmark US trade
deals look like candidates
for the morgue: the 12
nation
Trans-Pacific
Partnership (TPP) and the
Transatlantic Trade and Investment
Partnership (TTIP) with the EU.
After nearly 70 years at the forefront
of efforts to liberalise trade and investment across international borders, the
US has done a complete about face,
with leaders across the political spectrum driving the final nails in the free
trade coffin. A surge of populist isolationism sent the issue of free trade to
its death. Sound familiar?
The Brexit vote should be a warning
that, despite positive attitudes to trade
among most British voters for now,
free trade advocates need to get their
act together quickly.
A recent poll found 55 per cent of
Americans support the idea “that free
trade with other countries is a good
thing because it opens up new markets, and Americans can’t avoid the
fact that it is a global economy.” Yet in
Washington, the issue has become
toxic. Republican leader Mitch
McConnell has effectively killed the
proposed 12 nation TPP pact; he has
supported every trade deal since first
being elected in 1984.
So how did US free trade advocates
fail? It’s not a simple question, and it
doesn’t have a simple answer. It does,
however, come down to one fundamental problem: communications.
As pro-traders across the political
spectrum withheld support for agreements still under negotiation, opponents of trade, primarily unions,
seized upon the issue as a motivating
force for their members. They aggressively sought to force politicians into
taking public positions opposing trade
agreements like the TPP, staging
digital and in-person protests where
they would have the most impact: at
home.
Tactically, they strove early on to
define technical aspects of trade negotiations regarded as too obscure for the
average voter to understand or care
about. Fast-track authority, which
allows trade negotiators to reach
better deals by guaranteeing an up-ordown vote in Congress without
amendment, became an attack by
shady politicians on “the health of our
families and [our] access to clean air,
clean water, and land.” Never mind
that private negotiations are the only
path to compromise, especially in an
age of instant news and knee-jerk punditry.
Investor-state dispute settlement, a
mechanism for arbitration found in
3,000 international treaties which
allows companies to seek damages for
seized property, suddenly became an
assault on the judicial process by evil
corporations. Intellectual property
rights protections became an attack
on access to medicines. And so on.
Pro-trade politicians and the US business community fundamentally misjudged the intensity of the opposition
they faced. As they delayed in their
efforts to define obscure components
of treaties, their opponents pounced,
leaving a picked-over skeleton of policies no politician in their right mind
would want to defend. Free traders also returned to the
political-insider playbook that served
them well in the past. They deployed
unwieldy arguments about the
general benefits of trade policy, failing
to tell the story of how trade is a twenty-first century reality that affects
nearly every purchase a consumer
makes today.
Too often, these cases were made in
specialist publications often ignored
by the public writ large, by former gov-
Sam
Jefferies
Opponents
successfully turned
an unsexy issue into
a vehicle to channel
widespread
frustration. With it,
they took down the
largest trade
agreement ever
ernment officials and policy wonks
who did little to provide the political
cover
members
of
Congress
desperately needed.
Legislative offices were flooded with
anti-trade letters at a ratio of 10:1; no
lecture from a cabinet official was
going to stem that tide while voters
watched their neighbours planting
signs outside town council meetings.
In choosing their weapons of war, free
traders chose poorly. All of this may have been prevented
by employing a counter-tactic too often
ignored in the public affairs arsenal:
introducing political risk among your
opponents. In the fight over TPP, with
proxy battles cropping up over fasttrack authority and TTIP, few bothered
to point out that populist anger over
trade negotiations was threatening job
growth, investment into local communities and, most importantly, the low
cost of goods and services consumers
have come to take for granted.
These arguments should have been
made in home district media outlets,
with credible, local voices to articulate
them to their neighbours. But they
weren’t. Unencumbered by these criticisms, trade opponents were free to
pick off legislators at will. They tapped
into a populist tidal wave that has
come to define much of western politics. Opponents successfully turned an
unsexy issue into a vehicle to channel
widespread frustration. With it, they
took down the largest trade agreement
ever.
Pro-Brexit voters dismissed warnings
of economic upheaval that many
experts declared a Leave vote would
bring. And while British politicians
aren’t currently being forced to defend
trade agreements, treaties and policies
specifically, they soon will be. Fewer
UK voters have been affected by trade
with China in the way manufacturing
workers have in the States, but they
cannot be relied upon to reject protectionist arguments without a vigorous
and public defence of free trade.
Populist fury, already effectively
directed at the EU, could be aimed elsewhere, and international trade agreements and regulations may very well
be next. Just ask anyone in
Washington.
£ Sam Jefferies is a vice president at
Dezenhall Resources, a crisis
communications firm in Washington, DC.
He previously worked as a lobbyist for the
Secretariat of the US Business Coalition
for TPP.
Why the post-Brexit economic doom and
gloom may have been greatly overdone
S
OMETHING quite remarkable
happened in the UK economy
in June. UK broad money
growth M4ex rose 5.8 per cent
(year-on-year) – its fastest rate
since the introduction of quantitative
easing in 2009. Indeed, the growth
rate is approaching the 6 per cent
baseline for broad money growth that
the Bank of England announced was
its target when QE was introduced.
The three-month annualised rate of
growth was stronger still, at a robust 8
per cent in June.
So we have the irony that, just as the
Bank of England throws the
proverbial kitchen sink at the “stuttering” UK economy, broad money is
growing at its fastest rate since the
recovery began.
Broad money growth suggests a pickup in nominal GDP growth, and headline inflation of just 0.5 per cent
(year-on-year) suggests that most of the
nominal growth will translate into
real growth.
Of course, these economic relationships aren’t precise. They depend on
more than one month’s data and the
velocity of money could have shifted
as well (broad money times velocity
equals nominal GDP). But they are a
signal which suggests that the economic doom and gloom post-Brexit
may have been overdone.
The referendum took place on 23
June and so July’s M4ex figures will provide a clearer picture. But the June figures do offer an interesting potential
example of Groundhog Day. The
March 1981 Budget led to the famous
letter to The Times, by 364 economists,
suggesting the economy was likely to
take a nasty downward turn. We now
know, of course, that the ink was barely dry on the letter when economic
recovery began. Past performance is
not necessarily a guide to the future,
but it shouldn’t be ignored either. The
consensus can be wrong, very wrong.
The Groundhog Day significance of
the latest M4ex numbers is that they
may be pointing towards an upturn in
the UK economy, at the very time
everybody is expecting a downturn.
Despite impressions to the contrary,
wider economic data doesn’t entirely
support the idea of a downturn either.
Graeme
Leach
Yes, the July Markit PMI survey and
REC employment survey showed their
fastest falls since 2009, but other
reports are more upbeat. The Reed Job
Index was up 8 per cent (year-on-year)
in July. British Retail Consortium and
Visa data show a pick-up in spending
in July, suggesting consumer expectations haven’t been hit too badly.
Moreover the 16 per cent fall in the
value of the pound against the dollar
and the euro over the past year (from
$1.56 to $1.30 and €1.40 to €1.17)
should boost exports or the profit
margins of exporters (notwithstanding the reverse effect on importers).
Travel figures show flight bookings to
the UK were up 7 per cent in the four
weeks after the referendum.
It’s too early to be sure whether the
latest M4ex numbers will tally with an
upturn or a downturn, but at the very
least they suggest a more measured
assessment of the economic impact of
the referendum is required. The Bank
of England’s latest expansion in QE
(by £60bn, from £375bn to £435bn)
will also help boost the money supply.
July’s M4ex numbers will be very significant. If they maintain a 6 per cent
(year-on-year) growth rate (still an if,
not a when), this will challenge the
prevailing view that we have
embarked on another leg of the monetary easing cycle that began seven
years ago. Combined with the impact
on inflation from a weaker pound, we
might then be talking about the next
move in interest rates being up, not
down to 0.1 per cent or 0.05 per cent.
Six per cent growth in broad money
certainly rules out negative interest
rates.
£ Graeme Leach is chief executive and
chief economist of macronomics, a
macroeconomic, geopolitical and future
megatrends research consultancy.
Britain will be
up to £70bn
worse off if it
leaves the Single
Market?
Denis
MacShane
YES
For centuries, the main purpose of British
foreign policy was to gain access for British
goods, services, and professions to other
markets in the world. Britain currently has
unfettered access to 500m mainly middle
class consumers in the EU Single Market. It
was Margaret Thatcher who forced
through the Single European Act which
broke down national barriers to British
goods, services, and people so that they
could be sold or ply for hire in 27 other
countries without let or hindrance. Now,
the respected and non-partisan Institute
for Fiscal Studies (IFS) says that outside the
Single Market we lose 4 per cent of GDP –
about £2,900 for every household. India
still places a tariff of 150 per cent on every
bottle of Scotch sold and the US Buy
America legislation is highly protectionist.
Leaving the Single Market is economic selfharm. A psycho-therapist might be able to
explain it, but it cannot make sense to
anyone in business.
£ Denis MacShane is a former Europe
minister and author of Brexit: How Britain
Will Leave Europe. He is a senior adviser at
Avisa Partners, Brussels.
John
Redwood
NO
Staying a member of the Single Market is
likely to entail continuing to make some
financial contributions to the EU and
accepting freedom of movement. Brexit to
those who voted Out means taking back
control of UK money, borders, taxes and
laws. The IFS claims that we will be 4 per
cent better off remaining in the Single
Market. To get to such a loss, you need to be
very pessimistic about trade between the
UK and the rest of the EU on leaving. There
is every chance, for example, that the UK
will keep financial passporting. Why would
the EU wish to make access to London more
difficult? Why wouldn’t the UK qualify for
passports under the MIFID equivalence of
regulation rules? There is also the issue of
tariffs. The UK may wish to continue with
tariff-free trade. Will EU member states
agree on specific tariffs they wish to impose
on profitable trade with the UK, that are
permissible under WTO rules? Do they want
the UK to have to retaliate? It is not possible
to predict the outcome before any exit and
trade negotiations. It is not sensible to put a
number on such uncertainty.
£ John Redwood MP is chief global strategist
at Charles Stanley.
CITYAM.COM
WE WANT TO HEAR YOUR VIEWS
LETTERS
TO THE EDITOR
BEST OF
TWITTER
Base Hinkley
debate on facts
The RMT doesn’t seem too
interested in the ‘work-life
balance’ of Southern Rail
commuters in recent
months.
@cjsnowdon
[Re: Would cancelling Hinkley severely
damage UK-China relations? yesterday]
Alan Mendoza wrongly claimed that China
had insisted on “zero security safeguards” at
Hinkley Point C. He also suggested that
foreigners are forbidden from nuclear projects
in China. In fact EDF has been working in
China with its Chinese partner CGN for more
than 30 years with French and Chinese teams
working side by side. China’s nuclear plants
are also open to international review and
inspection, and they have been opened to
teams from the British independent nuclear
regulator. Anyone working on British nuclear
projects faces rigorous security vetting
regardless of their nationality.
It is right that a project on this scale should
face scrutiny, but it is important that the
continuing public debate surrounding Hinkley
Point is based on facts and not conjecture
Humphrey Cadoux-Hudson, managing
director, EDF Energy Nuclear New Build
No one knows whether Theresa May is
reviewing the Hinkley project because of
Chinese security concerns. This view seems to
be based on a blog post by her chief of staff
and some unguarded comments by Vince
Cable on the television. It’s far more likely
that, given her publicly stated commitment to
ensure that energy policy does not
unnecessarily push up prices for consumers
and businesses, she has worked out that the
cost of Hinkley is far too high. She has
probably also set her secretary of state for
energy to work on finding alternatives to
Hinkley that would provide similar amounts
of power far more quickly.
Name withheld
› E:[email protected] COMMENT AT:cityam.com/forum
RMT’s actions cause chaos
for thousands of passengers.
That’s the same RMT that
helped bankroll Corbyn’s
campaign: a true man of the
people.
@neill_bob
42 per cent of Americans
polled say Trump’s praise for
Putin bothers them a lot, 27
per cent bothered a little, 27
per cent not bothered at all.
@prochovanec
Six out of the 54 Republican
senators now say they won’t
back Trump.
Unprecedented.
@MSmithsonPB
The UK 10 year gilt yield falls
to 0.52 per cent as investors
realise that via QE the Bank
of England and Calamity
Carney have to buy!
@notayesmansecon
Greece has only
implemented 13 per cent of
agreed upon reforms – Bild.
@Livesquawk
OPINION
17
:@cityam
The RMT’s dangerous strikes
are a cynical ploy to pave the
way for rail renationalisation
T
HERE is no general upsurge
of industrial militancy in
the UK: the latest figures
show both numbers of stoppages and days lost to strikes
remain low. The cluster of RMT actions
– against Southern Railway/Govia
Thameslink (now suspended), Virgin
East Coast and Eurostar – will not be a
harbinger of a new wave of damaging
disputes.
Nevertheless these strikes are worrying. They add to a dangerous postBrexit feeling, particularly for visitors
to our country, that things may be out
of control. They seriously inconvenience business and public, while
arguably creating a security risk at
overcrowded stations.
The immediate causes of these
strikes are trivial and backward-looking, as was the earlier long-running
dispute over late-night Tube trains.
Remember that nobody is losing their
job, nobody is being paid less. Instead
the RMT is quibbling over the redefinition of the role of guards and train
managers. In the case of Eurostar, it is
disinterring an old issue about shiftwork dating back to 2009.
Behind this, however, there looks to
be a clear political agenda. The RMT
has never accepted railway privatisation and wants renationalisation. It
sees a chance. Such a policy seems popular: in some polls up to 70 per cent of
the public agree with it. Jeremy
Corbyn and his neolithic cohorts in
the Labour Party are already committed to taking railways back into state
hands. With Brexit, we may see the
Len
Shackleton
end of the European directive which
requires a split between track and services and entrenches the principle of
open access running. So if disputes
can be manipulated to discredit the
train operating companies – and
Southern’s hamfisted approach may
have done this already – there is a real
possibility that renationalisation in
some form could happen, perhaps
even under this government.
This would be daft. The privatisation
of the railways was certainly handled
It is reasonable to
advocate state
control of railways. It
is less reasonable to
hold travellers to
ransom to pursue
this goal on the votes
of tiny numbers of
union members
badly. The structure we now have is
expensive and inefficient, and there is
not enough competition even where
technically feasible. But privatisation
has been a huge success in doubling
the numbers of passenger journeys
and miles travelled, turning a moribund industry into one with a future.
The industry could be radically
improved within the private sector if
the government set its mind to the
problem. Turning back the clock to
nationalisation is not the answer.
In a democracy, it is of course reasonable to advocate state control of railways. What is less reasonable is to
hold travellers to ransom to pursue
this goal on the votes of tiny numbers
of union members – about 50 in the
Eurostar case, and little over 300 on
Southern Railway. Or to pressurise
companies by mass use of sickness
absence to disrupt business.
The recent Trade Union Act was
ostensibly supposed to prevent unnecessary strikes, though it was more
plausibly just a cynical attempt to
wrongfoot the Labour Party. Certainly
many aspects of the Bill were quickly
dropped
as
other
priorities
intervened. The Act as passed does not
seem to have achieved anything in the
case of the RMT. Perhaps the government should revisit the issue with a
requirement for no-strike agreements
in key sectors like transport.
£ Len Shackleton is professor of
economics at the University of
Buckingham, and economics fellow at
the Institute of Economic Affairs.
End the football stadium standing ban: It’s an open goal
T
WENTY eight people died at the
30 June Stadium in Cairo last year,
suffocating in a crush that began
when police fired tear gas at away fans
entering without tickets. It was another
in a long line of stadium tragedies. But
like the 2006 PhilSports Arena disaster
in the Philippines, and the disasters in
Johannesburg in 2001 and Harare in
2000 and 2001, the stadium in question
was all-seated. In modern stadia, it is
organisation and policing that drive
safety, not the presence of seats – and we
ought to recognise this by allowing
standing once more in the top two tiers
of English football.
In the past, standing was different: we
had vast undifferentiated terraces and
people were deliberately penned in.
Now, the state-of-the-art rail seats used
in standing areas have barriers separating every row, making a crush even
more difficult than in seated areas.
Worse, authorities used to have oppositional attitudes toward fans – and it was
primarily these problems that the
recent Hillsborough inquest blamed for
Fountain House,
3rd Floor, 130 Fenchurch Street,
London, EC3M 5DJ
Tel: 020 3201 8900
Email: [email protected]
the unlawful killing of 96 people in
1989, rather than standing per se.
If standing is safe, why don’t we allow
it? Well we do. Regulatory standards
accept standing as a safe alternative to
seats in horse racing, rugby, and even in
football grounds outside the Premier
League and the Championship.
Scotland, which has devolved powers
over the area, has given the go-ahead for
Celtic to install standing room for 3,000
this season. The real reason is that,
although times have moved on, English
politicians have not.
Every poll of fans I could find – and
there were dozens – found large majorities in favour of allowing standing sections; often over 90 per cent of
respondents favour having a choice
between sitting and standing. Their
biggest reason is atmosphere: they
believe standing generates more noise
and buzz and feeling. And it’s hard to
disagree if you see the 25,000 strong
standing section at the Südtribüne in
Dortmund’s Westfalenstadion in action.
Clubs – 19 out of the 20 in the 2015-16
Certified Distribution
from 30/05/2016 till
3/06/2016 is 97,658
Ben
Southwood
Every poll of fans I
could find had large
majorities in favour of
allowing standing
sections – often over
90 per cent favour
having a choice
Editorial Editor Christian May | Deputy Editor Julian Harris
News Editor Tracey Boles | Digital Editor Emma Haslett
Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen
Sports Editor Frank Dalleres | Creative Director David Riley
Commercial Sales Director Jeremy Slattery
Head of Distribution Gianni Cavalli
Premier League and 70 per cent of the
Football League’s 72 – favour allowing
standing. One reason is it could bring in
yet more money from TV deals with an
improved atmosphere. Another reason
might be price discrimination. Firms
want to charge the rich eye-watering
prices, but they don’t want to miss out
on custom from regular fans, so they
need to offer them different products.
Standing massively increases the possibility of price discrimination, and it
seems to work in practice too, according
to research in my paper Safe Standing.
In European clubs surveyed in the BBC
Price of Football 2015, where there are
standing sections, the average most
expensive season ticket is four times as
expensive as the average cheapest offer.
In Premier League clubs the ratio is just
1.72. Clubs cannot go any cheaper to get
more of those with modest means in
the gate because they’d have to cut the
prices for their wealthier customers too.
Since you can fit more people into
standing areas, it’s possible the average
ticket price would fall too. But even if it
doesn’t, adding a wider gap between the
top and bottom ticket price could cut
over £300 off Southampton’s cheapest
season ticket and just under £200 off
Leicester’s.
Changing the rules would be surprisingly easy: it doesn’t require an Act of
Parliament or passing any laws. The
1989 Football Spectators Act gave the
Department for Culture, Media and
Sport the discretion to decide: sports
minister Tracey Crouch could, and
should, simply decide to no longer prohibit the top 44 clubs from opening up
standing areas.
It might have made sense to restrict
standing in 1989, when its safety was
unproven, but it doesn’t now. Sweden,
Austria, Germany and other sports show
it can be safe. Inquests show us it was
not to blame for past tragedies. It could
cut ticket prices and improve the atmosphere at games. And politically it’s an
easy step. Crouch: it’s an open goal.
£ Ben Southwood is head of research at
the Adam Smith Institute.
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18
FEATURE
CITYAM.COM
CROWDFUNDING
H
OW CAN an investor utilise
alternative finance in such a
low-rate
environment?
Transferring to an Innovative
Finance Isa is one option.
Crowd2Fund, one of the platforms
that’s already secured approval from
the regulator, offers tax-free returns of
around 8.7 per cent APR. And P2P
lending outside of a wrapper can yield
decent returns for investors. The
Liberum Alt Fi returns index, which
benchmarks UK P2P and marketplace
lending, shows the current industry
return is 6.27 per cent annualised.
But what about specific products?
One option is minibonds. While differing from retail bonds because they’re
not traded on a market, minibonds
enable private investors to lend money
to a company, club or charity for a set
period, in return for interest. I spoke to
David Walker, partner at Memery
Crystal, to find out more about minibonds and why he thinks now is a
good time for investors to consider
and/or invest additional funds.
HOW TO APPROACH
MINIBOND
INVESTMENT
Harriet Green asks Memery Crystal’s David
Walker what you should look out for when
considering the alternative finance product
Minibonds are not
appropriate for
startups; the
issuing company
should be profitmaking
them.
What is it about minibonds that may
appeal to the retail investor now?
Following the Brexit decision, lower
interest rates are likely to see investors
looking for alternative ways of seeking
returns on their savings. It’s too early
to say what the attitude of banks will
be, but it’s plain that investors will be
looking at other ways to get a return
on their money. Minibonds are a way
to do that.
Those minibonds that have been
most successful historically are ones
where there’s customer loyalty and
knowledge of the brand – and those
customers become investors. That’s
why sports clubs and gyms can do so
well and frequently make good candidates. Surrey County Cricket Club
raised £5m in five days.
One of my biggest bugbears is that
people often don’t realise that, if they
invest in equity, there is no contractual date for when they’re going to get a
return (if any) – by way of dividend or
on exit. With minibonds, an investor
should see income paid out bi-annually or quarterly. The average interest
paid on minibonds commonly ranges
from 5 per cent to 7.5 per cent gross
per annum. Obviously that’s significantly higher than anything we’re
seeing commonly offered on the high
street.
Interestingly, we’ve started seeing
returnee firms in the market. These
firms have shown proof of concept:
they have used the money raised in
the manner originally described, paid
interest when due, and made bondholders feel part of their growth journey. Now some of these bond issuers
are seeking to repeat their success
and go back to their original bondholders, many of whom are deciding
to roll their bond into a second one
Obviously your capital is at risk if you
invest it in a minibond. Are there
certain red flags investors should
look out for?
As is usually the case in life, if it looks
too good to be true, it probably is.
First of all, remember that these
investments are predominantly illiquid and unsecured. Then, you should
be looking for business-specific risk
factors. If it’s a beer company, what’s
the risk of it losing its licence? What
would happen if the brewery burnt
down? Those kinds of questions
should be bottomed out and, if the
information hasn’t been made available, you shouldn’t be afraid to ask
why. Investors should also be seeing a
return on a regular basis – ask why if
it’s rolled up and only paid at the end
of the maturity period.
In the minibond sector, we tend to
see two types of offering. The platform offering and the standalone
offering, which is via a business’s
website. In my view, while there are
some fantastic platforms out there,
minibonds are not suitable for every
crowdfunding initiative. In some
cases, the information can be limited
to a one-pager with an (admittedly
well-produced) video. This will
explain why the business wants to
raise money, but it won’t always provide historic financials or easilydigestible
business-specific
risk
factors.
This brings us to another point: a
minibond is not appropriate for a
startup; the company issuing should
be profit-making. Moreover, most
platforms make money through deal
volume. That said, those that recognise the need to only promote viable
and responsible propositions certainly do exist and can thrive.
We’re seeing better practices from
businesses raising funds via their own
sites. Of course, you might say ‘well,
he would say that, wouldn’t he?’, but
there are some distinctly improved
practices. The most important is that
these deals must be approved by a
third party – and that’ll be the likes of
Grant Thornton or BDO and other
established names. They are responsible to the FCA and add experience to
the offering – so you shouldn’t get situations where risk factors are hidden
or insufficient, or where unsupported
information is included in the offering documentation.
What does the CMA report mean for alt fi?
Conrad
Ford
A
FTER a two-year investigation into
retail and SME banking, this week
the Competition and Markets
Authority (CMA) mandated the adoption
of Open Banking by early 2018. Open
Banking will be underpinned by secure
authorised data gateways called application programming interfaces (APIs), the
pipes of modern software technology.
Just as our Android or Apple smartphones opened up an ecosystem of useful third-party apps, Open Banking will
open an ecosystem of useful new financial services apps that connect to our live
bank account data.
This impending financial services revolution has been compared to the
Cambrian Explosion, an era half a
billion years ago when high oxygen levels led to an unprecedented boom in life
on earth. Just as the availability of oxygen led to an explosion of new life
forms, rich data from Open Banking
APIs will add rocket fuel to innovative
fintech firms like alternative finance
providers.
For example, some alternative lenders
will use read-only access to Open
Banking data to make better credit decisions. Ironically, high street banks often
have more automated lending
approaches than their online peer-topeer rivals, because traditional banks sit
on a treasure-trove of valuable account
data. With Open Banking, expect to see
peer-to-peer lenders finally compete on
equal terms against the dominant
banks. Equally, equity crowdfunders
may use the same technology to drive
better due diligence and transparency.
Some alternative lenders may go further and utilise read-write access to
Open Banking data, giving them the
ability not just to view bank account
payments, but also to initiate them.
Imagine a world where an SME can raise
an invoice on their mobile phone then
immediately finance it at the touch of a
button, rather than waiting weeks to get
paid. Indeed, in an Open Banking world,
SMEs won’t even need to have both
online banking and online accounting
software – a veritable Battle Royale now
beckons for control of business banking.
For banks, the worst case scenario of
Open Banking is to become the expensive “dumb pipes” on which other people build great companies. After all, it
was telecoms companies that built the
hugely expensive infrastructure on
which Google built its $500bn market
cap business. In the best case scenario,
banks will open up huge new revenues
from alternative lenders, financing their
underserved customers, just as smartphones created fat new revenue shares
for Apple and Google from third-party
app developers.
The losing banks will be those dragged
kicking and screaming into Open
Banking by regulators, losing control
over strategy. Indeed, some banks
employ extraordinary mental gymnastics, on the one hand arguing that Open
Banking is impractical, while at the
same time already offering the same API
technologies elsewhere (such as to preferred accounting software partners).
The CMA is rightfully taking a tough
line on them.
The next area where disingenuous
banks will try to undermine Open
Banking is on who gains access to the
APIs. Alternative lenders will balk at the
cost of meeting arbitrary IT standards,
often set by bank middle managers
whose technical skills are years out of
date. There is an elegant answer here, as
the UK government has made great
strides in improving SME access to
public contracts through consistent and
modern procurement standards. One
initiative is a Digital Marketplace for
authorised government suppliers,
another an information security standard called Cyber Essentials Plus.
Last but not least, Open Banking will
also support the UK’s post-Brexit leadership in fintech, as similar initiatives arising from the EU’s Revised Directive on
Payment Services (PSD2) should lag
some way behind. If traditional lenders
really are dinosaurs lumbering into
inevitable extinction, let’s at least make
the UK a fertile environment for the
exciting new alt fi creatures that will
replace them.
£ Conrad Ford is founder and chief
executive of Funding Options.
CITYAM.COM
FEATURE
19
OFFICE POLITICS
You don’t know what perks staff want
Get them wrong and benefits can be a huge
waste of money, says Matthew Gregson
T
HE BUSINESS and economic
landscape is in flux, and is
likely to remain so for some
time. With this uncertainty,
there’s a danger that
employee morale, motivation and
engagement will suffer – adding to the
already substantial challenge of sustaining business growth.
The type of employee benefits a company provides, and how they are
offered, has changed dramatically over
recent years, and will only continue to
evolve at speed. However, employers
looking to create a benefits strategy
with longevity would do well to start
with the question: what do my employees really want?
Making staff feel heard, understood
and valued will be critical to keeping
them engaged, and benefits can play a
significant role in this. So how can
bosses ensure that their offerings hit
the mark?
PERSONALISATION MAKES
PERFECT
Every employee is different and they
want their individuality recognised.
This is driving the trend for personalisation across all areas of the employer–
employee relationship, including
rewards.
Over the last two to three years, companies have increasingly turned to
technology and data analytics to deliver bespoke benefits to staff. This is a
valuable first step, but requires further
analysis to answer vital questions on
what employees would really like to
see in their packages.
Layering a consultative approach on
top of this data insight is therefore critical in understanding employees’
lifestyles, priorities and goals, and providing perks to match.
SCHOOL
RUNNER
OneLane
Free
MONEY CAN’T BUY EVERYTHING
The benefits which make a real impact
on employees are the ones money simply can’t buy – the opportunity to work
on a “time-bank” system, for example.
This allows employees to choose how
they distribute work throughout the
week, enabling them to fit their worklives around personal commitments.
Increasing flexibility in this way can
significantly improve employees’ personal happiness. Research in July by
job app Coople indicated that one fifth
of parents have missed an important
moment in their child’s life due to
work. This is significant problem,
diminishing parents’ quality of life in
two ways – they miss important family
events and often feel guilty as a result.
Does the boss
know best?
Companies are
increasingly
allowing staff
to spend a
benefits
allowance on
whatever they
choose
Forward-thinking companies are taking this common problem as an opportunity by offering a range of solutions
from onsite creches to child travel facilities. These improve parents’ wellbeing
and arguably loyalty to their employer.
WHY GO TO THE TROUBLE?
A well thought-out reward strategy
will improve employees’ general wellness and increase their engagement
with their benefits offering.
If they log on and interact with their
scheme more regularly, they will be
more likely to understand the value of
With the new
school year just
around the
corner, working
parents will find
themselves
juggling the
school run with
workplace
punctuality once
more. OneLane
is a ride app to
send children to
school with a
vetted childcare
professional
from £9 a
journey. It is
currently
available in
Zones 1-3.
their total benefits package – something 57 per cent of employers view as
their main challenge, according to our
Global Employee Benefits Watch 2015
study. Similarly, they’re more likely to
recognise the effort their employer has
taken to understand them at important life moments and meet their personalised requirements.
It’s a positive cycle that improves
employee satisfaction and encourages
the discretionary effort that drives
business productivity.
Cost is also a factor. Benefits are
expensive, equating to 11 per cent of
employee salary in the UK, according
to our analysis of existing client spend.
Employers need to ascertain what benefits their people really want, to be
sure that they’re spending in the right
places and will see the best possible
return on their investment.
CHOICE AND FLEXIBILITY ARE
KEY
No matter which way you look at it,
choice and flexibility are central to a
successful benefits strategy.
It is for this reason that an increasing
number of companies transition
towards benefits allowance-style systems, which let staff spend their benefits funding on whatever they choose,
delivering the ultimate level of personalisation that employees now require.
£Matthew Gregson is consulting director
at Thomsons Online Benefits.
20
LIFE&STYLE
CITYAM.COM
TECHNOLOGY
: @city_am
:@cityamlife
EDITED BY STEVE HOGARTY
NO MAN’S SKY: AN
INDIE SMASH HIT
GAME
NO MAN’S SKY
PLATFORM: PS4, PC
hhhhi | BY STEVE DINNEEN
N
o Man's Sky gives real
thought to what it would be
like to be marooned on an
alien planet. What would it
look like? How would it feel?
British indie developer Hello Games
has created an algorithm-based universe containing a mind-boggling
number of planets to explore, far
more than anyone will ever actually
see. My experience began on a real-life
Arcadia, a yellow planet with a pleasant climate and breathable air, its
ground covered with gently swaying
grass, giant mantis-like creatures grazing its plains. It was spectacular, every
bit as impressive as the tantalising
screenshots that have dropped from
time to time over the last three years.
But I know other players whose baptism of fire involved cowering from
the 70 degree midday sun on an unforgiving, barren planet.
This realism is both No Man's Sky's
greatest achievement and its biggest
stumbling block. Seeing new creatures
on an alien landscape for the first
time fills you with a sense of childlike
wonder, but hiding in a mushroominfested cave while you wait for the
arctic night to pass, or scooping up
endless ore to feed your life support
system, is probably just as dull as it
would be in real life.
I should point out that reviewing No
Man's Sky is tricky – the whole point is
each player's experience is supposed to
be different; I have only an inkling of
how distinct my experience has been
from that of other players. The only
certainty is that your character wakes
up beside the smouldering remains of
a wrecked space-ship on a planet
unseen by any other players. Better use
your handy multi-tool to mine some
stuff to fix things up.
No Man’s Sky
contains billions
upon billions of
unique planets
to discover and
explore.
It quickly becomes clear that beyond
the spectacular vistas lies a resource
management game: mine, build,
upgrade, repeat. Which is fine: endless
exploring with no focus would soon
lose its lustre. But your initial inability
to carry stuff suffocates the sense of
limitless possibility. There are mysterious items scattered about that you're
forced to abandon because you need
zinc to build a new thingamabob for
your spaceship. I spent the first two
hours marveling at the environment
and the second two cursing my shallow pockets.
When you finally get off the planet,
the sense of wonder kicks back in: you
roar into the sky, not a loading screen
in sight, choosing which of the distant
planets you feel like exploring next.
My “home” star system also included
an ice world, a lifeless toxic rock, and
an aquatic realm teeming with
bipedal chameleons.
But the resource management soon
creeps up again: there's always more
to mine to craft your next upgrade: a
pulse-drive so you can get places quicker, a warp-drive to visit new parts of
the galaxy. After 10 hours I'd given up
exploring planets on footl, instead
cruising along in my ship looking for
promising loot. Eventually I found a
trading station located in a belt of
solid-gold asteroids, and spent an hour
mining enough to buy a bigger ship,
which frees you up to concentrate on the game's more
interesting elements.
One of the fears about No
Man's Sky was that it
would be a beautiful environment without much to
do, and there's truth in
this – while there's no
shortage of things to interact with, after over 15
hours I'm yet to find anything too challenging.
Another fear was that its
algorithm-based
universe
would soon start to repeat the
same tired old landscapes
and creatures, but each of the dozen
or so planets I've visited have felt utterly distinct, each with a plausible
ecosystem and an impressive diversity
of plant and animal life.
The design is so seamless, in fact,
that it tricks you into assuming a
degree of authorship the algorithm
can't possibly provide. After finding an
underwater monolith, for instance, I
spotted a tunnel encrusted with glowing coral. There must be some treat hidden in there, right? But my
exploration just took me to a watery
grave: as in real life, you explore submerged caves at your peril.
There are relics of other civilisations
littered across the universe, with a
vague lore you can start to piece
together adding to the feeling this is
somewhere that existed long before
you crash-landed. You're also silently
guided by a mysterious force intent on
taking you to the centre of the uni-
Seeing new alien
creatures fills you
with a sense of
childlike wonder
verse, a quasi-religious presence that
hints at something profound lying at
the end of your journey. You can
ignore it, of course, but the quest to
find new challenges will spur most
players to take the bait.
If No Man's Sky had landed without
the years of anticipation, it would be
mind blowing. But hype can be a cruel
mistress: she's elusive when you need
her most, and demands a heavy payment after she's gone. It's an
incredible technical achievement, but
it oscillates between moments of profound beauty and incredible frustration. If you want to know what it
would be like to be stranded in an
alien galaxy, this is your best bet.
22
SPORT
CITYAM.COM
SPORT
OLYMPIC GAMES
THURSDAY GUIDE: WHAT TO
WATCH AT RIO 2016 TODAY
SIR BRADLEY Wiggins
is the big name
making his bow at
the Games today
when the velodrome
opens its doors for
the men’s team
pursuit qualifying
round (9:23pm). The
cycling icon won gold in the event eight
years ago and is back on the track after
racing on the road in London. British
gold medal hopes also rest with Laura
Trott, Jo Rowsell, Elinor Barker and Ciara
Horne in the women’s team pursuit
qualifiers (8:19pm). Finally, the 2012
men’s team sprint gold medallists will
aim to repeat the feat (10.20pm). Philip
Hindes and Jason Kenny will team up
with Callum Skinner who has big shoes
to fill in replacing six-time Olympic gold
medal winner Sir Chris Hoy.
HERE WE ROW
AGAIN
Team GB’s men race
for a medal in the
quadruple sculls 24
hours later than
expected (2.12pm)
after Wednesday’s
rowing events were
cancelled due to high winds, while
reigning Olympic champions Helen
Glover and Heather Stanning will look to
progress from their rescheduled semifinal (12.30pm). The final of the men’s
pair (4.44pm) features debut duo Stuart
Innes and Alan Sinclair.
ALL-AMERICAN SWIM-OFF
David Florence and Richard Hounslow
qualified for the canoe men’s double
final with the third best time so will fancy
their chances of bettering the silver they
secured in London (4.30pm).
The first ever medals in men’s rugby
sevens will be on the line tonight (final at
11pm). Late night action worth risking a
bleary-eyed morning
for includes the
potential of an allAmerican showdown
between Michael
Phelps and Ryan
Lochte in the men’s
200m medley (3am
Friday).
DAN THE MAN Bibby scores only try
as Great Britain beat Argentina 5-0 in
men’s sevens to reach semi-finals
OLYMPIC GAMES
Britain crashes medal party
A flurry of triumphs on day five of Rio
Games moves Team GB ahead of their
tally at same stage of London 2012
ROSS MCLEAN
@rossmcleanRMAC
GOLD in the pool and on the water
headlined Great Britain’s rampant charge
during a historic and medal-fuelled fifth
day of the Olympic Games in Rio de
Janeiro yesterday.
Tearful duo Jack Laugher and Chris
Mears won Team GB’s first ever Olympic
diving gold medal in the men’s
synchronised 3m springboard, hours
after Joe Clarke’s kayak triumph
handed the nation its second
top prize of this Olympics.
Great Britain’s haul was
swelled by a flurry of
bronze gongs in
gymnastics, cycling,
shooting and judo as
Great Britain moved ahead
of their tally of medals
snared by the same stage of
London 2012.
Laugher and Mears added to their
Commonwealth and European crowns
after ending China’s hopes of a clean
sweep of Rio diving titles, as they chalked
up a total of 454.32.
Mears, who was given only a five per cent
chance of surviving having contracted the
life-threatening Epstein Barr virus in 2009,
said: “After going through all that, just
making the 2012 Olympics in London was
enough for me.
“But we were in a different position at
this Games. We knew we could get medals
but to actually win them is incredible.”
British No1 Clarke, meanwhile, was left
pinching himself after a prodigious final
run saw the 23-year-old win gold in the
men’s K1 canoe slalom with a time of 88.53
seconds.
“When I woke up I struggled to have
breakfast I was so nervous with all the
emotions,” said Clarke, who qualified third
fastest for the final. “I thought if it goes to
plan I could come away with a medal but
to be Olympic champion is something you
dream about.”
Gymnast Max Whitlock ended a 108-year
wait for a British Olympic medal in the
men’s all-around. Japan’s Kohei Uchimura
retained his Olympic crown, while Oleg
Verniaiev of Ukraine took silver.
Cyclist Chris Froome toasted a glorious
summer after adding Olympic
bronze in the men’s individual
time trial to the Tour de
France crown, the third of his
Mears and Laugher
(right) won gold, as did
Clarke (left)
career, he secured last
month.
Froome, who won bronze at
London 2012 in the same discipline,
finished over a minute behind
Switzerland’s Fabian Cancellara as
Holland’s Tom Dumoulin took silver.
Welshman Geraint Thomas finished ninth.
“Winning the Tour was a big target for me
and I came here to try and back it up,” said
Froome. “Just to be at the Olympics is
really special, but to come away with
another medal is even more special.”
Whitlock and Froome were by no means
alone in their bronze medal-winning
heroics as shooter Steven Scott defeated
team-mate Tim Kneale to take his place on
the podium following a third-place finish in
the men’s double trap event.
Judoka Sally Conway then defeated
Austria’s Bernadette Graf in the -70kg
category to take bronze after earlier
beating world champion Gevrise Emane.
SARACENS
S
AR ACENS V LONDON
LONDON SCOTTISH
SCOTTISH
THURS 25TH
THURS
25TH A
AUG
UG | KO
KO 1
18H15
8H15
HON
OUR ABLE ARTILLERY
ARTILLERY COMPANY
COMPANY
HONOURABLE
Saracens return to the Honourable Artillery Company in the
heart of the City of London this August as the European and
Aviva Premiership champions prepare for the new season.
Catch all the action at this unique sporting venue with tickets
available from £25.
To buy now visit www.saracens.com/tickets
CITYAM.COM
SPORT
23
WILL POWER Wales skipper
Ashley Williams joins Everton
from Swansea for £12m
CRICKET
IN BRIEF
No1 spot beckons
but bigger test is
staying at summit
CRICKET
COMMENT
Chris
Tremlett
I
T’S all very well getting to No1 in
the world Test rankings but the
true measure of a side worthy of
that tag is to stay there for a long
time.
That’s the challenge facing England
should they hit the summit by the
end of the summer. Such a feat will be
achieved if Alastair Cook’s side win
the fourth and final Investec Test at
the Kia Oval, which starts today, to secure a 3-1 series victory, and India fail
to seal victory in the final two Tests of
their tour of the West Indies.
I was a member of the England side
which worked its way to that coveted
No1 slot in 2011. It was a massive
achievement, especially considering
where English cricket was in 2009
when the Test side had just been
bowled out for 51 against the West Indies in Kingston.
Once Andy Flower was appointed
permanently as team director and
started turning things around, it became the mission of that group to
reach No1 in the world. The momentum-shifting Ashes success later that
year followed and along the way there
was a first series win Down Under in
24 years.
Such accolades were quickly forgotten as all the focus was on becoming
No1 in the world, something which
was achieved with victory by an innings against India at Edgbaston in
August 2011.
Unfortunately, we didn’t play well
enough once we’d made it to No1. Pakistan wiped the floor with us during
the winter and a series defeat against
South Africa later in 2012 saw England knocked off their perch.
In English and Australia-type conditions that England side probably were
the best in the world but there was
some doubt with regard to the subcontinent teams as we hadn’t beaten
the likes of India or Pakistan in their
own backyard.
BENCHMARK
The same can be said of the current
England crop. They haven’t yet come
through a thorough test in spinning
conditions – they lost to Pakistan in
the United Arab Emirates last autumn
– and that will be pivotal to their
chances of staying top of the pile
should they get there.
Skipper Cook admitted as much yesterday and said that his side still have
challenges to overcome and questions
to answer.
The true sign of a No1 side is one
that gets there and remains there for
a long time. The benchmark is Australia in the early noughties, a team
which from June 2003 until August
2009 occupied top spot.
Should this England side assume the
status of the world’s best-ranked side,
I can’t see any reason why they can’t
stay there but big tests await; India
this winter and Australia on their own
turf. Getting to No1 is a huge challenge and great achievement, but a
greater challenge is staying put.
FOOTBALL
Ranieri challenges rivals to turn
big wallets into silverware tilts
ROSS MCLEAN
@rossmcleanRMAC
LEICESTER boss Claudio Ranieri has
thrown down the gauntlet to fellow
Premier League contenders and
challenged them to turn their bigspending summers into a title
charge.
Defending champions Leicester
have not been shy in bolstering
their squad with the signing of six
players, including a club-record
outlay of £16m for forward Ahmed
Musa from CSKA Moscow.
The likes of Manchester United,
Manchester City and Chelsea have
all invested heavily in a bid to
reassert themselves as a Premier
League force, and Ranieri insists
those sides have no other choice
but to deliver.
“We can’t repeat it, of course we
try and we defend very strongly our
trophy but there are big teams now
that last season, I don’t know why,
made mistakes and now they have
to win because they are used to
winning and have spent a lot of
money,” said Ranieri, who yesterday
signed a new four-year contract at
the King Power Stadium.
West Ham manager Slaven Bilic,
meanwhile, insists the club’s
retention of former Marseille
playmaker Dimitri Payet is a
statement of intent as the
Hammers bid to gatecrash the
league’s top six.
“West Ham was always labelled as
a club that has to sell its best
players, be it Frank Lampard, Rio
Ferdinand or whoever,” said Bilic.
“But we have kept Dimi, and we
have shown to everyone that the
club is thinking seriously.”
ENGLAND STICK WITH THEIR
WINNING FORMULA FOR OVAL
£ CRICKET: England have named an
unchanged XI for the fourth and final
Investec Test against Pakistan at the Kia
Oval, which starts today. Yorkshire legspinner Adil Rashid had been touted for
a recall but England have opted to stick
with the players on duty during last
week’s win at Edgbaston. Hampshire
skipper James Vince has been passed fit
following a dislocated finger and will
take his place in England’s middle order.
England lead the series 2-1 with just the
one match to play.
WENGER WILL ONLY RENEW IF
ARSENAL HAVE GOOD SEASON
£ FOOTBALL: Arsenal manager Arsene
Wenger insists he will not renew his
current contract, which expires next
summer, if the Gunners do not do well
this season. The 66-year-old Frenchman
starts his 21st campaign in charge in
north London on Sunday when Arsenal
host Liverpool in their opening Premier
League fixture. Wenger, who won the
most recent of his three English topflight titles in 2004, said: “What I will do
after will depend a little bit on how the
season goes.”
OUT-OF-SORTS DJOKOVIC
WITHDRAWS FROM EVENT
£ TENNIS: World No1 Novak Djokovic
has pulled out of next week’s Cincinnati
Masters following his shock defeats at
the Olympics and Wimbledon. Djokovic,
who lost to Juan Martin del Potro in the
first round in Rio, blamed a nagging wrist
injury that he said had been exacerbated
by a busy schedule. The Serb, beaten by
American Sam Querrey at SW19, said: “I
am very sad to announce that I won’t be
able to play this year in Cincinnati. I have
played many matches and I have to take
some rest in order to heal.”

Sony buys Ministry of Sound label

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