Rail commuters set for steeper fare hike after inflation jumps

Transcription

BUSINESS WITH PERSONALITY
THE SEARCH FOR YIELD
HOW TO COPE AT A TIME
OF ULTRA-LOW RATES P15
WEDNESDAY 17 AUGUST 2016
ISSUE 2,692
MINI-GOLF...
BIG BURGERS
A QUIRKY CITY
LUNCH P19
CITYAM.COM
FREE
UBER GEARS UP FOR
HIGH COURT BATTLE
EXCLUSIVE
LYNSEY BARBER
The initial regulation was previously welcomed by Uber, but
in recent months the details of
@lynseybarber
the rules have become too onerUBER has launched legal action ous, Uber claims.
against London’s transport
Now, Uber is pursuing legal
regulator over new rules that action over the matter, filing ofthreaten to limit its business in ficial papers with the courts this
the capital, City A.M. can reveal. week after sending a so-called
The billion-dollar tech giant is “letter before action” to TfL.
seeking a judicial review to halt
TfL said it would defend the
the introduction of new rules it legality of the new regulations.
claims are too strict.
“We responded to Uber’s letTransport for London set out ter and will be robustly defendnew regulations earlier this year ing the legal proceedings
after a wide-ranging consulta- brought by them in relation to
tion of the taxi and minicab the changes to private hire regindustry following a long-stand- ulations,” a TfL spokesperson
ing feud between Uber and Lon- told City A.M.
don’s black cab drivers.
“These have been introduced
to enhance public safety when
using private hire services and we
are determined to create a vibrant taxi and private hire market
with space for all providers to
flourish.”
Uber is challenging four of the
new rules; requiring written
English tests for drivers, having to
locate its customer service call
centre in London, requiring
insurance that covers drivers
when they are not working and
having to alert TfL of changes to
its business model or app.
It last week rallied customers to
contact the Mayor of London urging him to review the regulation
while business leaders and entrepreneurs have also written to
Sadiq Khan asking him to rethink
the rules, raising concerns that
the red tape could stifle innovation and London’s digital economy in the wake of Brexit.
Tom Elvidge, general manager
at Uber London, said: “This legal
action is very much a last resort.
We’re particularly disappointed
that, after a lengthy consultation
process with Transport for London, the goalposts have moved at
the last minute and new rules are
now being introduced that will be
bad for both drivers and tech
companies like Uber.”
Private hire company Addison
Lee slammed Uber’s legal move.
£ CONTINUED: P2
Top German
MP: Give UK
special status
MARK SANDS
@MKSands
GERMANY’S European affairs
minister has proposed “a
special status” for Britain
after Brexit, while calling for
talks to begin early next year.
Theresa May has repeatedly
stated that she will not
activate Article 50, which
gives the UK two years to
secure new terms, until 2017.
But Michael Roth has told
Reuters the UK should be
ready to negotiate – and
trigger mechanisms to leave
the EU – early next year.
“Until the end of the year
should really be sufficient
time to get organised and
adjust to the new situation,"
he said.
Roth, a member of the SPD,
a party in Angela Merkel’s
ruling coalition, added that
Britain should be granted a
position distinct from that of
Switzerland and Norway,
which have both been cited as
potential examples for the UK
to follow.
“Given Britain’s size,
significance and its long
membership of the European
Union, there will probably be
a special status which only
bears limited comparison to
that of countries that have
never belonged to the
European Union,” he said.
“I want relations between
the EU and Britain to be as
close as possible,” he added.
Rail commuters set for steeper fare hike after inflation jumps
OLIVER GILL
@ojngill
MORE misery was piled on to
beleaguered commuters yesterday as
a hike in rail fares was unveiled.
Fares will rise by an average of
1.9 per cent next year following the
release of July’s retail price index
(RPI), against which fare increases are
pegged. RPI rose from 1.6 per cent.
The jump in fares comes as rail
workers across the Govia Thameslink
Railway (GTR) voted for further strike
action on Southern over ticket office
closures. The RMT union confirmed
a 70 per cent vote in favour of action.
Politicians from across the
political spectrum joined forces to
attack the price increase and called
for the government to intervene.
“There is an understandable
government policy [on fares],
however when it comes to Southern
there should be an exception. Fares
should be going down not up,” said
top Tory MP Crispin Blunt.
Fellow Conservative MP Tim
Loughton said increases were
“completely untenable in [the]
current chaos”.
Labour’s London Assembly
transport spokesperson, Florence
Eshalomi said that the proposed
increase would “come as a slap in
the face for rail passengers”.
John Hawksworth, chief economist
at PwC said the “anachronistic
system” of setting rail fares by RPI
will “be bad news for hard-pressed
rail commuters”.
Meanwhile, the RMT said it has
suspended strike action on Virgin
Trains East Coast that was set for the
bank holiday weekend.
FTSE 100▼6,893.92 -47.27 FTSE 250▼17,808.50 -120.77 DOW▼ 18,552.02 -84.03 NASDAQ▼ 5,227.11 -34.90 £/$▲ 1.304 +0.017 £/€▲ 1.156 +0.001 €/$▲ 1.127 +0.009
02
NEWS
CITYAM.COM
LET THE CHIPS FALL Las Vegas’ iconic Riviera Hotel & Casino
reduced to rubble to give way to a new convention centre
THE CITY VIEW
Rough & the smooth:
Khan’s first 100 days
L
ONDON mayor Sadiq Khan has celebrated his first 100 days
in City Hall. So, how’s his mayoralty shaping up? Khan was
elected on 5 May, after his rival Zac Goldsmith sank in a
pit of his campaign’s own making. The Tory candidate
would probably have made a perfectly decent and thoughtful
mayor, but his campaign failed to strike the right notes and
turned off a lot Londoners uncomfortable with attacks on
Khan’s character, background and religion. If the mayor enjoyed
a honeymoon period, it was starkly interrupted by the 23 June
referendum, which saw the UK (if not London) vote to leave the
EU. Since that event, Khan has done his best to tell the world
that London is open – and open for business. In an effort to
ensure this, he’s already called for more powers to be devolved to
the capital in areas such as skills funding, business policy and
greater financial autonomy. But what of the powers he already
has? Well, this newspaper
was first out of the block to
congratulate the new mayor
for lifting his predecessor’s
ban on development at City
Airport. This was a positive,
timely and necessary postreferendum move for which
the mayor deserves credit. Khan has also moved quickly to
reassure the business community, with the appointment of a
deputy mayor for business, Rajesh Agrawal, who is busily
seeking to build new bilateral relations with other European
cities. The details are vague at this stage, but the sentiment is
encouraging. However, in areas on which the new mayor directly
campaigned – such as housing and transport – progress has been
more disappointing. The high-profile pledge to build 50,000 new
homes a year has already been watered down to a “long-term
target” and the flagship “fares freeze” policy has unravelled
after revelations that it won’t include travelcard prices, which
are set by the Department for Transport. At least the Night Tube,
dogged by union opposition, will roll into service this weekend.
More broadly, Khan can be accused of having over-promised in
his campaign but he’s clearly not short on energy. If he can
combine this with real radicalism on the policy front, then
there’s every chance that he’ll make the most of his time in
office.
Khan can be
accused of having
over-promised in
his campaign
Follow us on Twitter @cityam
FINANCIAL TIMES
FORD PLANS MASS-MARKET
SELF-DRIVING CAR BY 2021
Ford says it will build a totally selfdriving car by 2021 as it seeks to take
the lead in the global race to produce
the world’s first high-volume driverless
vehicle. The car, which will have no
steering wheel or pedals, will be used in
the driverless taxi services that Ford
said it expects to dominate the market
in the coming decade. The carmaker
said in a later investor call that it
expected to first roll out the driverless
vehicles in big cities.
COMMERCIAL PROPERTY
STRESS TEST COSTS £12BN
Research found that the country’s six
biggest lenders would suffer £12bn of
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
THE REMAINING structures of the 60-year-old Riviera Hotel & Casino, which closed in May last year, were imploded yesterday. The
site, that hosted performances by famed singers including Dean Martin, has been snapped up by the Las Vegas Convention and
Visitors Authority which plans to build more convention space as part of its $1.4bn Las Vegas Convention Center District project.
UK inflation hits
20-month high
JAKE CORDELL
@JakeCordell
PRICES in the UK are rising at their
fastest rate since the end of 2014, new
figures showed yesterday.
Inflation came in at 0.6 per cent in
July on the consumer prices index
(CPI), ahead of expectations and up
from a rate of 0.5 per cent in June.
Sterling charged higher in the minutes after the figures were published
by the Office for National Statistics
(ONS). After setting a three-year low
against the euro of below €1.15 yesterday morning, the pound hit back
against the single currency, rising to
€1.1563.
Against the dollar sterling jumped
0.7 per cent to reach $1.2964 and reversed Monday’s losses. At the close, it
stood at $1.304.
Economists said the higher rate of
inflation was driven by the sharp fall
THE TIMES
KAREN MILLEN LOSES
BATTLE FOR HER NAME
Karen Millen has lost a High Court battle
with her old company to regain the
rights to use her name in business. The
fashion designer sold the retail chain
she founded with ex-husband, Kevin
Stanford, to Baugur, the Icelandic
investor, for £95m in 2004.
FUND MANAGERS TO DITCH
UK HOLDINGS OVER BREXIT
total losses over two years from a
hypothetical stress scenario in
commercial property — equivalent to 14
per cent of their total exposure to the
sector.
More than half of Europe’s largest fund
managers plan to cut their holdings in
UK companies amid fears about the
impact of Brexit. Fifty three per cent of
the 34 major asset managers surveyed
said they would reduce their exposure
to London-listed shares.
in the value of sterling since the UK’s
vote to leave the EU in a glimpse of
faster price rises everybody expects to
materialise over the coming months.
The weaker pound caused the price
of fuel, food, drinks and other imports
to jump, with the cost of overseas
goods rising by 6.5 per cent for companies, the steepest increase since 2011.
Sterling has fallen 18 per cent on a
trade-weighted basis since last November and is down 14 per cent since the
EU referendum.
Although still very low by historic
standards, the effect of a cheaper
pound is already feeding through into
higher prices for firms. This spooked
some analysts who said it could “burst
the consumer-led recovery”.
KPMG’s head of macroeconomics
Yael Selfin said: “The figures show little evidence that businesses have
started passing on the higher costs of
imports.”
THE DAILY TELEGRAPH
FIRMS TO FACE 100PC FINES
FOR TAX AVOIDANCE ADVICE
City firms that help businesses run tax
avoidance schemes could face huge
financial penalties under fresh
government proposals. Banks,
accountancy firms and lawyers could be
forced to hand over underpaid tax if
they are found to have broken the law.
Currently, advisers who facilitate tax
avoidance by exploiting loopholes and
complex schemes face little risk.
G4S CLOSE TO ISRAELI
BUSINESS SALE
Security company G4S is close to
offloading its Israeli business in a $100m
(£77.1m) deal, as plans to rationalise the
firm continue.
Uber legal fight
slammed by
car hire rival
CONTINUED FROM P1
Addison Lee boss Andy Boland said
Uber was trying to “undermine” the
new passenger safety rules, which
was “unacceptable”.
“These new rules have been
widely discussed and will benefit
both passengers and drivers”
Uber’s legal manoeuvrering
comes as the mayor promised to
make new plans for the future of
the taxi and minicab industry.
A spokesperson for the mayor
said: “Sadiq has asked his team to
produce a comprehensive new
strategy that will herald in a new
era for the capital’s taxi and private
hire trades.
“Further details will be released
later this year of a plan that will
deliver radical improvements for
customers, a boost to safety, support
for the taxi trade and further
improve the quality of service
offered by the private hire trade.”
THE WALL STREET JOURNAL
UNIVISION SNAPS UP
GAWKER MEDIA FOR $135M
Univision Communications won a courtadministered auction for Gawker Media
Group yesterday, outbidding Ziff Davis
for control of the 14-year-old digital
media pioneer that was forced into
bankruptcy by a costly legal battle with
former professional wrestler Hulk
Hogan.
FACEBOOK CAN’T CLOSE
DIVERSITY GAP
Two years ago, Facebook offered its inhouse recruiters an incentive to help
diversify its largely white and male
workforce. But the tech giant has shown
little progress. Just six per cent of its US
employees are Hispanic or black.
CITYAM.COM
NEWS
03
IN BRIEF
SSE: NO NEED FOR HINKLEY
TO AVOID UK BLACKOUTS
Big Six energy giant SSE said yesterday
that Britain doesn’t need the
controversial Hinkley Point C nuclear
power plant to keep the lights on. In a
blog post published yesterday, Alistair
Phillips-Davies, chief executive of SSE
wrote: “If Hinkley doesn’t progress there
is plenty [of alternatives] to fill the gap,”
he said while suggesting new gas-fired
power stations, other nuclear projects
and windfarms. He added that its
significance “to the UK’s needs for
secure, modern supplies of electricity
has been repeatedly overplayed”. The
£18bn project’s future was thrown into
doubt last month after PM Theresa May
delayed its final decision to conduct a
review, amid concerns over Chinese
involvement and its high costs.
Chief executive Gavin Patterson has been under pressure to defend BT’s spending
Rivals hit back
at BT criticism of
their campaign
BILLY BAMBROUGH
@BillyBambrough
TALKTALK, Sky, and Vodafone have
hit back following BT boss Gavin Patterson’s complaints over their Fix
Britain’s Internet campaign.
In a letter signed by Sky chief
executive Jeremy Darroch, Jeroen
Hoencamp, the outgoing head of
Vodafone UK, and TalkTalk CEO Dido
Harding, the bosses rail against the
level of BT’s spending on its
infrastructure arm Openreach.
But BT chief executive Gavin
Patterson, wrote yesterday to his
counterparts at TalkTalk, Sky, and
Vodafone to complain that their
campaign to rally UK broadband
customers against the UK’s existing
internet infrastructure is misleading
consumers.
The campaign – which has already
been forced to amend details over
whether BT spent more on sports
rights than on broadband – argues
that BT spends “billions buying the
rights to televised football rather
than investing this money in
Britain’s broadband infrastructure”
and that “in rural areas, nearly half
of premises can’t get speeds above 10
MB/s”.
It’s calling on internet users to
complain to the telecoms watchdog
Ofcom as well as their local MP over
the quality of their service. The
heads of BT’s rivals claim: “Ofcom
data shows that deployment of pure
fibre in the UK is below that in
Turkey, Mexico and Poland. This is a
wasted opportunity which risks
Britain’s future competitiveness,
prosperity and quality of life.”
In his earlier letter Patterson said
the Fix Britain’s Internet campaign
“paints an unfairly diminished view
of connectivity across the UK and
makes a number of misleading
statements”.
Last month Ofcom recommended
BT legally separate Openreach while
leaving it under the BT Group
umbrella, giving it more
independence and investment
powers but leaving senior BT
managers in charge of the purse
strings. The watchdog’s consultation
of the proposals will run until the
middle of September.
Bayer expected to turn hostile if
Monsanto maintains rejection
WILLIAM TURVILL
@wturvill
GERMAN chemicals company Bayer
is expected to turn its Monsanto
takeover attempt hostile if its latest
offer comes to nothing.
Monsanto, a US seeds firm, has
already rejected two bids from Bayer,
the first at $122 per share, equal to
around $62bn, and the second at
$125. Handelsblatt, a German paper,
yesterday reported that Bayer may be
prepared to go hostile if no deal is
agreed in the coming weeks, citing
sources close to the deal.
Markus Manns, portfolio manager
at Union Investment, a top 20 Bayer
shareholder, also predicted a hostile
approach from Bayer might be the
next step. He said: “Bayer is
interested in starting negotiations/
due diligence as soon as possible,
whereas Monsanto would like to
slow down the entire process. The
next step will be for Bayer to start a
hostile takeover which might end up
in a friendly takeover.”
URBAN OUTFITTERS IN
FASHION AFTER SALES RISE
Shares in Urban Outfitters jumped
nearly 10 per cent in after-hours
trading last night on a better-thanexpected set of quarterly results. The
retailer, a favourite with would-be
hipsters, reported comparable sales
rose one per cent in the three months
ended 31 July. This smashed analysts’
expectations for a fall of 1.2 per cent,
according to research firm Consensus
Metrix. Net sales rose 2.7 per cent to
$890.6m during this period. “I am
pleased to announce our teams
delivered record second quarter sales,”
Richard Hayne, the group’s chief
executive, said. “These results were
driven by a positive retail segment
‘comp’ and substantial improvement in
merchandise margins,” he added.
SEC BARS EX-GOLDMAN
TRADER FROM INDUSTRY
A former head mortgage trader for
Goldman Sachs Group Inc has agreed to
be barred from the securities industry
and pay $400,000 to settle charges that
he repeatedly mislead customers,
causing them to pay higher prices, a US
regulator said yesterday. Edwin Chin,
Goldman’s former head trader for
residential mortgage-backed securities,
generated extra revenue for the
company by concealing the prices at
which it had bought such mortgages,
the US Securities and Exchange
Commission said. Chin then resold the
mortgages at higher prices to customers
while Goldman pocketed the difference,
the agency said. Chin neither admitted
to nor denied the findings, the SEC said.
Goldman said it let Chin go in 2012.
04
NEWS
CITYAM.COM
Cairn Energy strikes it lucky with its Balfour Beatty bags
world-class discovery in Senegal $700m rail contract
HAYLEY KIRTON
@HayleyLEK
CAIRN Energy revealed yesterday its
Senegal activity had come up trumps,
while it had also narrowed its losses
during its first half of 2016.
The Edinburgh-based oil and gas
exploration company revealed a total
loss after tax for the six months to
June of $38m (£29.4m), improving
from a $230m loss for the same
period the year before and compared
with a $516m loss for the full year to
the end of December 2015.
Shares closed up 4.9 per cent at
204.56p, and are also up more than a
third compared with where they
were this time last year.
Cairn Energy struck luck when it
started exploring offshore of Senegal
about two years ago, and has since
drilled six wells in the area. The
company has described the discovery
as “world-class”.
Simon Thomson, chief executive of
Cairn Energy, said: “Cairn’s
exploration and appraisal focus in
Senegal is balanced with
development assets in the UK, with
first oil targeted from both Kraken
and Catcher during 2017 and in the
meantime Cairn remains fully
funded in respect of all of its capital
commitments.”
Thomson added on a conference
call he was pleased with what had
been discovered so far and there was
“lots still to go in Senegal”, while
Richard Heaton, exploration
director, described the news to date
as a “great story”.
EMMA HASLETT
@emmahaslett
BALFOUR Beatty has been awarded a
$697m (£540m) contract to electrify
the 52-mile Caltrain rail link between
San Francisco and San Jose – the
largest US contract it’s ever won.
The construction giant said it will
begin work on the line, which operates across 17 cities including San
Francisco, San Mateo and Santa Clara
counties, this autumn.
Completion is due in 2020.
Samarco dam
disaster pushes
BHP to huge loss
EMMA HASLETT
@emmahaslett
MINER BHP Billiton unveiled a multibillion-dollar loss for the year yesterday, after a commodities rout, tax
issues and a dam disaster took their
toll.
BHP said it had made an attributable
loss of $6.4bn (£5bn) in the year to the
end up June, down from a profit of
$1.9bn last year.
That was driven by $7.7bn of exceptional items, including a $4.9bn impairment charge on the value of its
onshore US assets, a $2.2bn charge for
the financial impacts of the Samarco
dam disaster, and $570m for “global
taxation matters”.
Underlying profits, which strip out
those one-off costs, hit $1.2bn, down
81 per cent. Meanwhile, net operating
cash flow fell to $10.6bn, 45 per cent
lower than last year’s $19.3bn.
It managed to pay a dividend of 30
cents – although that is down 76 per
cent from the same period last year.
The Samarco dam disaster, in which
19 people were killed when a dam in
Brazil which was owned by the company burst last year, is continuing to
take its toll. In March BHP agreed to
shell out at least $1.1bn in compensation — although yesterday’s reports
show twice that figure will be paid.
The company was also cautiously optimistic when it came to crude oil. In
its statement, it suggested the market
had begun to rebalance thanks to
falling production in the US, unplanned supply outages and strong
demand outside the OECD.
Chief executive, Andrew Mackenzie,
said: “The last 12 months have been
challenging for both BHP Billiton and
the resources industry. Nevertheless,
our results demonstrate the resilience
of our portfolio and the diverse ways
in which we can create value for
shareholders despite low commodity
prices.”
BHP BILLITON
1,080
1,070
1,060
£
1,049.50
16 Aug
1,050
1,040
1,030
1,020
10 Aug 11 Aug 12 Aug 15 Aug 16 Aug
The line runs 92 trains each day,
serving more than 65,000 commuters.
Balfour reckons it can make the
changes with “minimal disruption”.
“Our extensive experience in managing complex rail projects leaves us
well qualified to deliver this significant scheme,” said Leo Quinn, Balfour
Beatty’s group chief executive.
“Caltrain builds on the back of the
recent successful delivery of our part
in the multi-billion dollar Eagle P3
Commuter Rail network in Denver,
Colorado,” he added.
CMA threatens
ICE’s $650m
Trayport deal
JESSICA MORRIS
The operating cost reductions helped offset falling copper prices
Antofagasta keeps cutting costs
as copper prices remain weak
JAMES NICKERSON
@nickersonjw
FALLING copper prices hit miner
Antofagasta hard in the first half as it
reported a fall in profits and revenues
yesterday.
Antofagasta reported revenue 18.5
per cent lower at $1.45bn (£1.12bn)
for the first half, while pre-tax
profits fell 8.4 per cent to $276.1m.
However, the company was bullish
in stating it had made further
progress on cost reductions and
improving its margins.
The company reported that
earnings before interest, taxation,
depreciation and amortisation had
risen by 2.3 per cent to $571.5m,
despite the fall in revenue due to
cost reductions.
Chief executive Ivan Arriagada
said: “We are focused on achieving
improved efficiencies in a
sustainable manner to ensure longterm shareholder value. Given the
current economic uncertainty we
are cautious in our outlook and
remain conservative in our approach
to managing capital.”
@jssmorris
THE COMPETITION and Markets
Authority yesterday threw into
doubt Intercontinental Exchange’s
takeover of commodities trading
software company Trayport.
It said that the takeover could
result in less competition for
wholesale European utilities trades.
It issued a list of possible remedies,
which includes a forced sale.
The CMA is worried about higher
fees for executing and clearing
trades, as well as worse terms for
traders. The deal could discourage
ICE and its rivals from launching
new products and trading
solutions, it added.
The annoucement is part of the
CMA’s ongoing probe into the
merger, which was completed in
December last year.
Simon Polito, inquiry chair at the
CMA, said: “We examined the
merger’s competition risks and
given the high level of dependence
of market participants on
Trayport’s integrated software
offering, we provisionally
concluded that the merged entity
would have the ability and
incentive to harm ICE’s main rivals'
ability to compete effectively.”
“This could lead to higher prices,
a general worsening of terms and
less innovative trading solutions
offered to traders in wholesale
energy markets.”
Wood Group reports slide in profits
but sees signs of recovery ahead
JAMES NICKERSON
@nickersonjw
WOOD Group’s chief executive made
positive noises yesterday despite
posting a massive slide in profits on
the back of falling oil prices.
Wood Group posted a 63.2 per cent
drop in profits to $44.6m (£34.5m) in
the first half of the year. Meanwhile,
the company reported revenue that
dropped by 16.6 per cent to $2.6bn for
the six months to the end of 30 June.
Earnings per share dropped to 10.9
cents, while interim dividend was
posted at 10.8 cents per share.
Wood Group said its performance
in the first half reflects the changing
nature of the oil and gas market. It
added that its “significant overhead
cost savings helped mitigate the
impact of reduced volumes and
pricing”.
In 2016 overhead cost reductions of
$148m were delivered, and in the first
half of this year $50m has been saved.
Chief executive Robin Watson said:
“Looking further ahead, we see early
indications of modest recovery in
some areas and believe our customer
relationships, geographic footprint,
strong financial footing and
relentless focus on delivering value
through our asset life cycle services
and specialist technical solutions,
position us well.”
Wood Group is one of many oil industry firms hit by the ongoing price rout
CITYAM.COM
Trade team push
to trigger Article
50 in early 2017
MARK SANDS
@MkSands
A GROUP of global trade experts is calling on the UK to trigger Article 50 by
the middle of 2017 at the latest, while
warning the UK to treat China “with
kid gloves”.
The new, independent trade commission will operate through think tank
Legatum and features former advisers
to both US President Obama and his
predecessor George W Bush.
Prime Minister Theresa May has said
the UK will not trigger Brexit talks
until next year at the earliest.
The group is led by Shanker
Singham, a trade and competition
expert, who warned that waiting too
long would engender further uncertainty and risk the UK missing out on
foreign investment. Singham, a
former adviser to Mitt Romney and
Marco Rubio in their failed presidential election bids, added the UK should
focus its efforts first on deals with the
likes of the US, Canada, Australia,
Singapore and New Zealand, which he
argued share similar values.
“Open trade, competitive markets
and the protection of property rights
form the key pillars of economic
growth. However, all countries should
be able to join if they demonstrate a
commitment to these same values,”
Singham said.
He added negotiations with China
should be approached with caution.
“Any country that distorts its market
through state owned enterprises
should be treated with kid gloves,”
Singham said. “The Chinese oversupply of steel was one of the main reasons why the steel mills in Port Talbot
and Redcar ran into difficulties.”
China has defended the Hinkley
plant deal and its steel export policy. A
spokesperson for the Chinese embassy
in London told City A.M. the Hinkley
project will “strictly follow UK laws”
and Chinese manufacturers have followed steel export market rules.
NEWS
05
Direct Line
partial pension
offload stalls
JESSICA MORRIS
China remains a vital market for Apple despite sales in the region falling 33 per cent
Apple set to ramp up its Chinese
presence with new R&D facility
LYNSEY BARBER
@lynseybarber
APPLE is planning to increase its
investment in China and will build its
first ever research and development
facility in the country, according to
local reports.
Boss Tim Cook is visiting the
country and commented on the
plans during a meeting with China’s
vice premier Zhang Gaoli, the report
from China’s official state
broadcaster claims.
“We have done fairly well in
China,” said Cook earlier this week
in a wide-ranging interview with the
Washington Post marking five years
as chief executive at the company.
Apple sales were down 33 per cent
in the last quarter in China but it is a
vital target market for the tech firm.
@jssmorris
DIRECT LINE has abandoned the
potential offload of part of its
pension scheme, following the
conclusion of an internal review.
It was part of a defined benefit
(DB) scheme — in which monthly
payouts are linked to an employee’s
final salary — going back to when
the insurer was wholly owned by
the Royal Bank of Scotland.
Direct Line concluded that the
current situation was the most
cost-effective way to manage its
pension liabilities. City A.M.
understands that market volatility
in the wake of the Brexit vote was a
secondary factor in its decision.
Sky News first reported that the
firm had been in talks to sell part
of its DB retirement scheme to an
external investor until June’s
referendum on the UK’s
membership of the European
Union. Direct Line declined to
comment last night.
The firm’s pre-tax profit fell 5.2
per cent to £298.5m in the second
quarter. It said it had been “well
prepared” for the EU referendum
and immediate investment
volatility was “actively managed”.
06
NEWS
CITYAM.COM
Polypipe flushed as half-year profit UK first-time buyers
and revenue climb post Brexit vote worry about rate cut
OLIVER GILL
@ojngill
POLYPIPE released record half-results
yesterday, which revealed profits had
spiked nearly 50 per cent.
Revenues for the six months to
June were £223m, up from £170m.
Operating profit margins climbed
from 15.1 per cent to 16.9 per cent.
“We have delivered another record
performance in the first half
continuing the strong momentum
from last year.
“Our strategic focus on the structural
growth opportunities, together with
the acquisition of our Nuaire
ventilation business has accelerated
our growth,” said chief executive
David Hall.
With plenty of rhetoric of
“challenging markets” in the wake of
low oil prices and the Brexit vote,
Polypipe said that its business was
largely unaffected.
“Order intake has remained
consistent with the normal seasonal
pattern and [is] yet to show any signs
of weakening following the EU
referendum,” it said.
Polypipe was also encouraged by
comments from the government that
stimulus is needed in the
construction sector – commercial and
infrastructure revenues grew by 57
per cent from £59.1m to £92.7m.
Operating profits at its largest
division – residential piping systems –
jumped up 39.6 per cent to £21.5m.
This division is focussed on Britain
and Ireland and Polypipe has moved
to higher margin product mix.
HELEN CAHILL
@HelCahill
ONE FIFTH of 18 to 34-year-old
prospective buyers say they will find
it difficult to save for a deposit due to
the recent cut in interest rates.
Research from MoneySuperMarket
found 21 per cent of this age group
thinks the interest rate cut will mean
they will have to wait for longer to
climb onto the housing ladder.
MoneySuperMarket said first time
buyers expect to be 37 years old by the
FRP Advisory to
be appointed
BHS liquidators
HELEN CAHILL
@HelCahill
FRP ADVISORY is set to be appointed
as liquidators of the BHS empire,
City A.M. understands - ousting Duff &
Phelps from the role.
Duff & Phelps have recommended to
creditors that BHS be moved into liquidation and suggested they take on
the job.
However, it has now emerged that
they have been pushed out due to concerns they will not be impartial in
their assessment.
FRP Advisory was made joint administrators to BHS in July and
will be taking on the liquidation after Dominic Chappell – who bought BHS for
£1 – alleged retail magnate Sir Philip Green described Duff & Phelps as
his “ponies”.
Not only will FRP Advisory look into the conduct
of
BHS
directors, it will
also investigate
Duff & Phelps.
“If there is a
need to check
on what the administrators have
done, you would bring in different liquidators,” said Nick Hood, business
risk analyst at Opus Restructuring.
“Obviously, the concerns with BHS
are because of the doubts thrown up
in parliamentary hearings - and the
Pension Protection Fund insisted
there was a second set of administrators appointed.”
Duff & Phelps recommended complete BHS liquidation in a proposal
document sent to creditors in June,
before FRP Advisory had been brought
in.
In the document, Duff & Phelps told
creditors: “The joint administrators
are likely to recommend that the
company be moved into Creditors’
Voluntary Liquidation (CVL) once
all assets have been realised.
“It is proposed that the joint administrators, currently Philip Duffy
and Benjamin Wiles of Duff &
Phelps Ltd be appointed as joint liquidators of the company should it
be placed into CVL.”
Duff & Phelps and FRP Advisory declined to comment.
Philip Green sold BHS for £1
and now it will be liquidated
time they land a property; in the east
of England, this rises to 42 years old.
The majority of 18 to 34-year-olds
surveyed said they had saved under
half of the amount they need for a deposit.
Kevin Mountford, banking expert at
MoneySuperMarket, said: “The Bank
of England dealt a blow to savers
when cutting interest rates to 0.25 per
cent this month and, as a result, first
time buyers now face the prospect of
having to save for longer due to dwindling savings rates.”
Morrisons sells
10pc stake in
Fresh Direct
EMMA HASLETT
CBRE recently sold a penthouse in Covent Garden for £2,900 per square foot
CBRE sells £60m worth of West
End properties after referendum
HELEN CAHILL
@HelCahill
HOME sales have remained “strong”
for CBRE after the Brexit vote, with
the company reporting it has
exchanged on nearly £60m worth of
residential property in the second
quarter of this year.
The transaction value achieved by
CBRE was its second highest for the
last four years.
Three quarters of the sales were at
more than £1,750 per square foot.
One penthouse in Covent Garden
went for £2,900 per square foot.
CBRE said its lettings in the West
End were up by 14 per cent
compared with the same quarter last
year, “largely fuelled by a buoyant
international student market”.
Jamie Gunning, executive director
at CBRE, said: “Overall, growth in the
London market remained robust in
the second quarter, albeit with a
slight moderation. The fundamental
drivers of London’s property market
are not affected by the decision to
leave... demand in the West End
remains strong,”
@emmahaslett
SUPERMARKET giant Morrisons has
disposed of its 10 per cent stake in
wholesale business Fresh Direct, it
said yesterday – almost 18 months
since it first announced plans for
the sell-off.
The supermarket said it had got
£45m from the sale – a premium of
£14m to the £31m holding value of
its equity investment.
Morrisons said in March 2014
that it was planning to sell off
Fresh Direct along with Kiddicare,
which it sold for £2m a couple of
months later.
Since then, the business has most
notably made a push into online
retail.
Last week Morrisons unveiled
plans to extend a partnership with
Ocado albeit with changes
including a cut in fees it has to pay
the online grocer to access its
services.
In a statement Morrisons said the
principal changes to its contract
with Ocado are: the restriction on
store pick has been lifted, the
profit share agreement will be
cancelled and the research and
development fee will be reduced.
Morrisons is taking capacity in
Ocado’s new warehouse in Erith, in
south east London, which it said
will allow “millions more
customers to shop with
Morrisons.com”.
Farmland prices expected to fall as
demand falters due to uncertainty
HELEN CAHILL
@HelCahill
DEMAND for rural land has fallen
over the last six months - and prices
are expected to follow suit.
According to the Royal Institute of
Chartered Surveyors (Rics), 49 per
cent of members expect prices for
farm land to fall over the next few
months.
Rics said demand for farm land
has dropped “substantially”,
currently sitting at a net balance of
minus 48 per cent.
Over half of respondents (56 per
cent) said they expect a further
decline in prices for commercial
farm land over the next half of the
year.
Average rents for arable land fell
by 8.8 per cent in the first half of the
year, and were down by 3.3 per cent
over the year as a whole. Rent for
pasture fell by 6.7 per cent in the
first half of the year and 7.3 per cent
over the whole year.
Jeff Matsu, Rics senior economist,
said: “Commodity price volatility
was already negatively impacting
sentiment in the rural land market
prior to the EU referendum, and the
outcome of the vote has added
further uncertainty. This appears to
be weighing heavily on demand and
prices have begun to slide.”
Demand for farm land has dropped substantially with more declines expected
08
NEWS
CITYAM.COM
EU referendum woes
set to lead to bumpy
road warns Santander
HAYLEY KIRTON
@HayleyLEK
THE CHIEF exec of the UK division of
banking giant Santander has warned
the UK economy slowed noticeably in
the run up to June’s Brexit vote, and
it was unlikely to get rolling again any
time soon.
In the company’s half-yearly report,
published yesterday, Nathan Bostock
wrote that the slowdown in the UK
economy was expected to continue
while “economic and political uncertainties prevail”.
For Santander UK in particular, the
statement noted the bank’s net interest margin was likely to decline over
the rest of 2016, while cost management remained vital.
However, Bostock’s assessment was
not all doom and gloom. He high-
lighted that some of the worst sides of
any downturn could be avoided by decisive action from the UK’s central
bank, while the capital buffers currently in place throughout the banking sector put it in a strong position
to weather any storms.
“Despite the uncertainties we face,
we believe we have the resilience and
capabilities to sustain profitability
and deliver on our strategy,” Bostock
wrote.
For the first six months of 2016, Santander UK reported profit before tax
of £1.1bn, up from £929m for the
same period the year before, while
total operating income rose to £2.4bn,
up from £2.3bn.
These financial figures were largely
trailed in the group’s half-year results,
announced towards the end of last
month.
Qatari bank to
review options
on Brexit vote
WILLIAM TURVILL
Indonesian airlines was downgraded in 2007 following a number of accidents
Indonesian airlines cleared for
take-off in the US after review
JAMES NICKERSON
@nickersonjw
INDONESIAN airlines will be able to
take-off in America following a nineyear ban having been cleared by
regulators.
A safety review by the US Federal
Aviation Administration (FAA) said
Indonesia had been upgraded to a
top-tier safety rating – Category 1 –
after nearly 10 years, having been
lowered to Category 2 in 2007.
Airlines must hold a Category 1
rating to be able to fly to the US.
“With the International Aviation
Safety Assessment (IASA) Category 1
rating, Indonesian air carriers... can
establish service to the United States
and carry the code of US carriers,”
the FAA said yesterday in a
statement.
@wturvill
QATARI investment bank QInvest,
the largest shareholder in broker
Panmure Gordon, will be “carefully
reviewing and stress-testing” its
portfolio after the Brexit vote.
The company yesterday reported
revenue of $65.7m (£50.6m) for the
first half of 2016 – up from $53.7m in
the same period in 2015. The firm’s
net profit, meanwhile, came in at
$25.3m, up from $24.4m.
Earlier this month, it emerged
that WMG, a fund controlled by
Mehmet Dalman, had made an
approach to QInvest over its 43.4 per
cent stake in Panmure. And while
QInvest has not commented on
Panmure, it did confirm yesterday
that, “in light of significant
headwinds around Brexit, Turkey
and continued subdued oil prices,
the firm has commenced a detailed
review of its portfolio positioning”.
Handelsbanken fires
boss after 18 months
HAYLEY KIRTON
@HayleyLEK
HANDELSBANKEN announced yesterday it was waving goodbye to
group chief executive and president
Frank Vang-Jensen.
Vang-Jensen has been replaced immediately by Anders Bouvin, who
was the bank’s UK chief up until yesterday. Meanwhile, Andrew Copsey
is replacing Bouvin as acting chief
executive of Handelsbanken UK.
The Swedish bank revealed the
board had reached a unanimous decision to give Vang-Jensen, who was
appointed to his role last year, his
marching orders.
Board chairman Par Boman described the move as being “purely re-
lated to the individual”.
Boman continued: “All managers
at Handelsbanken, particularly the
branch managers, must have a
very high degree of autonomy.
“Being the most senior manager at the
bank therefore requires a special type
of leadership, considerably more complex
than traditional management. Thus, it is possible to be an excellent
leader and manager, as
Frank Vang-Jensen has been, but
not fulfil the requirements of chief
executive of Handelsbanken.”
Of Bouvin’s new role, Boman
added: “For the past 10 years, he has
worked at Handelsbanken in the UK,
where he has built up a national
branch network with stable finances, good profitability –
and by far the most satisfied customers in the
Frank Vang-Jensen out
after 18 months in job
market.”
Shareholders, however,
were less confident in
Boman’s assessment. Shares in
the company, which is listed in
Stockholm, closed down 1.5 per cent
to 106.9 Swedish krona.
US housing market lifts profits
at DIY behemoth Home Depot
announces a net
sales increase
FRANCESCA WASHTELL
HELEN CAHILL
@fwashtell
THE STRONG US housing market
lifted second quarter sales and
profits at the world’s largest DIY
retailer, Home Depot.
Reported sales were up 6.6 per
cent to $26.5bn (£20.5bn), while
comparable stores sales rose 4.7
per cent in the three-month
period, marginally below a Wall
Street estimate of 4.8 per cent.
Home Depot operates 2,275
stores in all 50 US states, as well as
in 10 Canadian provinces and
Mexico. In US stores, sales rose 5.4
per cent.
The group reported net
earnings of $2.4bn, up from
$2.2bn in 2015, and net earnings
per share came of $1.97, in line
with consensus estimates from
Thomson Reuters.
“We had a solid quarter,
achieving the highest quarterly
sales and net earnings results in
company history as housing
continues to be a tailwind for our
business,” Home Depot chairman,
chief executive and president,
Craig Menear said.
The company reiterated its fullyear sales guidance of around 6.3
per cent and a lift in comparable
sales of 4.9 per cent.
TK Maxx’s owner
@HelCahill
OWNER of TK Maxx, the TJX Companies, announced net sales increased
by seven per cent to $7.9bn (£6.07bn)
in the second quarter.
TJX’s in-store sales were up four per
cent in the quarter to 30 July, beating analysts’ expectations of a 3.5
per cent increase.
Ernie Herrman, chief executive,
said it was “terrific” to see sales increase.
“We also are very pleased that our
apparel, including accessories, and
home businesses both performed
well,” Herrman said.
CITYAM.COM
NEWS
How Brexit chilled
the jobs market
this summer
Hayley Kirton examines how June’s
vote left London’s employers frozen
over and how they will finally thaw out
F
OR THOSE who were hoping to
polish off their CV during the
summer holidays and find happiness in professional pastures
new come autumn, recent
statistics have been unwelcome.
A study released this week by the
Chartered Institute of Personnel and
Development (CIPD) and Adecco discovered the proportion of employers
expecting to increase their staffing
numbers over the next three months
slumped to 36 per cent, down from 40
per cent before the historic vote.
Looking specifically at London’s jobs
market, permanent placements fell
for the third straight month in July,
according to a Recruitment & Employment Confederation (Rec) and Markit
report released towards the start of
this month.
Today marks the release of the most
recent set of labour market figures
from the Office for National Statistics
(ONS), which will track the numbers
in work in the UK between April and
June. Spreadbetters IG predict that,
while joblessness will have remained
reasonably subdued, unemployment
could inch up from 4.9 per cent to five
per cent.
“If [today’s ONS figures show] the
labour market’s already starting to
slide, most of those numbers will have
been affected by pre-Brexit decisions,”
explained Ian Brinkley, acting chief
economist at the CIPD. “So, if those
are already starting to weaken before
we get to Brexit, it means the forecast
for the rise in unemployment is looking pretty firm at the moment.”
However, not everyone in the City is
downbeat. Hakan Enver, operations
director at Morgan McKinley Financial Services, believes that a fall in
hiring may simply indicate hesitation
due to economic uncertainty rather
than the beginning of a long-term
trend. “You’ve got to think, there were
three months of complete back and
forth on people’s opinions on which
way everybody was going to vote,”
Enver said.
Regardless of the cause, a dip in the
market is not just bad news for anybody currently hunting for a job – it’s
also bad news for the people whose
job is finding jobs for others.
Last week, recruitment firm Pagegroup revealed it had scaled back its
UK headcount by three per cent
during the first half of the year, citing
“tougher trading conditions” and
commenting that its profits in the region had fallen thanks to “uncertainty
impacting
clients’
decision-making in the lead up to the
EU referendum”.
Figures shared with City A.M. by Rec
showed that while 44 per cent of recruiters had witnessed no reaction
from their clients following the reve-
lation of the Leave decision, 47 per
cent said clients had adopted a waitand-see approach to their hiring
strategies. Meanwhile, three per cent
said clients had indicated they did not
plan to renew contracts and an unfortunate five per cent had seen some
clients pull the plug on contracts.
Pagegroup’s results also revealed it
was the top end of the market that
stumbled in the run up to the referendum, with higher-salary focused
Michael Page faring worse in the UK
than the firm’s other divisions.
Robert Walters, which reported a
four per cent increase in UK net fee income but a drop in operating profit to
£1.8m from £2.8m in its most recent
half-year results, pointed towards
London’s financial services space as a
particularly problematic area during
the period.
“You’re more likely to hedge if
you’re appointing someone on a senior, managerial professional salary
than if you’re appointing someone to
I N PA RT N E R S H I P W I T H
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a big shock,
employers have
got a bit scared
do an admin job on £20k,” added Rec
chief executive Kevin Green.
However, despite the tricky trading
conditions, there is little sign that a
slew of recruiters’ jobs are immediately in the firing line.
“We have not been made aware of
any members who are planning on
cutting UK headcount as a result of
the UK’s decision to leave the EU,” said
Association of Professional Staffing
Companies operations director,
Samantha Hurley. “That is not to say
that it won’t happen – but in reality it
is just too early to ascertain if Brexit
will have any long-term impact on the
wider staffing sector.”
Brinkley added current forecasts for
any impending recession were for
something “pretty shallow and not
lasting that long”.
Meanwhile, Green pointed out that
despite a slowdown, employers were
still placing job adverts with recruiters, and the market for temporary and contract work remained
relatively buoyant.
“I think all you’ve got is a big shock,
employers have got a bit scared, have
hedged permanent hiring, demand
still seems to be there,” Green said. “It
could come back very quickly. It
wouldn’t surprise me if in September,
October, we see employers making
more and more permanent hirings.”
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10
NEWS
CITYAM.COM
Weak inflation freezes
chances of Fed hiking
rates before US election
JAKE CORDELL
@JakeCordell
ONE OF the US Federal Reserve’s chief
policymakers sparked confusion on
the markets yesterday, by signalling a
September rate hike was on the cards,
just as new inflation figures sent the
dollar tumbling.
William Dudley, the president of the
New York Fed and a close ally of chair
Janet Yellen said a rate rise before the
US election was “possible”, adding:
“We’re edging closer towards the
point in time where it’ll be appropriate to raise interest rates further”.
However, as Dudley was speaking official inflation figures from the US
Bureau of Labor Statistics showed the
pace of price rises in the world’s
largest economy eased back. The consumer prices index (CPI) came in at
0.8 per cent for July, down from a rate
of one per cent in June and slightly off
economists’ expectations of 0.9 per
cent.
The two developments sent the dollar down 0.7 per cent against the euro
while also pushing up the prospect of
a rate rise before the end of the year,
according to futures markets.
The probability of a hike before
Christmas hit 50 per cent, up from 44
per cent last week and the highest
level since the UK voted to leave the
EU at the end of June.
However, analysts suggested the
chances of that rise occurring before
the election in November were slim
given the latest string of disappointments, including weak GDP data.
Capital Economics’ Steve Murphy
said yesterday’s numbers “will give
Fed officials another reason to delay”.
Global public
finances on
shaky footing
JAKE CORDELL
From Berlin to Frankfurt to Munich, German investors are feeling better
German confidence creeps back
after Brexit but troubles remain
JAKE CORDELL
@JakeCordell
CONFIDENCE in Europe’s largest
economy has bounced back after a
sharp fall in the immediate
aftermath of the UK’s Brexit vote.
The ZEW economic indicator —
one of the leading gauges of
optimism among German investors
— climbed to 0.5 in August from a
reading of minus 6.8 straight after
the Brexit vote. Positive scores
indicate positive sentiment.
Nevertheless, the score is still
significantly down on its long-term
average of 24.2 and came in below
economists’ expectations.
@JakeCordell
GOVERNMENTS across the world are
becoming riskier to lend to, according
to an analysis of sovereign credit
ratings.
Research by IHS Global has shown
the number of downgrades outpaced
upgrades by a ratio of three-to-one in
the second quarter of the year, as low
commodities prices hurt emerging
markets.
The group also cited the vote for
Brexit which led to the UK losing its
top-notch AAA rating.
In the second quarter, IHS counted
61 downgrades to sovereign debt,
compared to just 19 upgrades,
suggesting a general deterioration of
public finances across the world.
Jan Randolph, director of sovereign
risk at IHS Global, said commoditiesheavy economies fared the worst,
with downgrades reaching “record
levels”.
Chinese tech firms open
up to international cash
JAKE CORDELL
@JakeCordell
INVESTORS will soon be able to tap
in to China’s fledgling tech sector
with the latest flagship
international stock market tie-up set
to be launched later this year.
The Chinese premier signalled
yesterday the long-awaited
Shenzhen-Hong Kong Stock
Connect has been given the green
light by the country’s state council,
opening the door to a potential
wave of overseas investment.
The deal is similar to the 2014
Shanghai-Hong Kong Connect and
marks the latest phase of Premier Li
Keqiang’s bid to open up the
Chinese money markets.
In a statement issued yesterday,
the state council said: “The
preparation for the launch of
Shenzhen-Hong Kong Stock Connect
has been basically
completed, and the state
council has approved its
implementation plan.
“The launch of the
programme will help
investors better share
the fruits of economic
development in both
the mainland and
Hong Kong, deepen the
financial cooperation
between them, and consolidate
and enhance Hong Kong's position
as an international financial
centre,” Li said.
The Shenzhen Stock Exchange is
China’s second largest after the
Shanghai exchange.
Around one-fifth of the
companies listed in Shenzhen
are technology firms,
compared to just one in
The Shenzhen-Hong
Kong deal was approved
20 of those listed in
Shanghai. Shenzhen also
runs the ChiNext sub-board
— the Chinese equivalent to
Nasdaq – which specialises in
technology and high-growth, riskier
stocks.
Publisher snaps up Aussie
shopping comparison website
sales and profits will
zoom ahead in 2016
WILLIAM TURVILL
OLIVER GILL
@wturvill
MAGAZINE publisher Future has
announced the acquisition of an
Australian and south east Asian
digital shopping comparison
business.
The UK company behind Tech
Radar and PC Gamer has
completed a deal for Next
Commerce. The acquisition comes
shortly after Future announced a
£14.2m takeover deal for fellow
UK publisher Imagine.
Next Commerce reported
revenue of AU$3.3m (£1.9m) in the
year to June. It operates the
Getprice.com.au and
Pricepanda.com comparison
shopping websites across
Australia and south east Asia.
Getprice was founded in 2005
and claims to be Australia’s
largest shopping comparison
website, with more than 1,200
retailers using the website.
Pricepanda was founded in
Singapore in 2012 and now lists
5.8m products and has sites in
five countries.
“This acquisition further
diversifies our revenue, an
important element of our
strategy,” said Future chief
executive Zillah Byng-Thorne.
Car dealers think
@ojngill
TWO-THIRDS of car dealerships said
they expected to either stabilise or
grow profits during the rest of 2016
despite the “uncertainty” created by
the Brexit vote.
The survey prepared by accountants MacIntyre Hudson also indicated around 53 per cent of dealers
expected to hit sales targets.
“The report shows that the sector
is very positive about the next 12
months. We look forward to continued growth in the industry for the
rest of this year and beyond,” said
Steve Freeman of MacIntyre Hudson.
CITYAM.COM
THECAPITALIST
NEWS
11
Got A Story? Email
[email protected]
EDITED BY FRANCESCA WASHTELL
Do you accept cards? Or leads?
Childhood dreams move aside
CONTACTLESS payments may already
be ubiquitous here in the City, but
with the ever-encroaching tide of the
Internet of Things people might start
using some slightly more unusual
payment methods in the future.
Contactless technology is used to
make around seven million transactions per day in the UK, but what
about cufflinks? Watches? Even your
dog’s lead?
Almost seven in 10 contactless payment users would prefer to add contactless functionality to something
they already own or wear rather than
purchasing a brand new wearable payment device, according to research
from Barclaycard.
Topping the list of preferred
personal items that could be futurefied was a watch, followed by a
bracelet or ring from a family member, and bringing up third place was
a wedding ring.
In fourth place was a dog’s lead.
From the outset, this might seem a bit
bizarre, but think about all those dog
walkers on your street who time their
dog walks with trips to the local cornershop or Tesco Metro. Sunglasses,
comfy jumpers and cufflinks were in
the top 10 too. We’ll stick to cards, just
for now, though, thanks.
AS THE City’s new anti-hero, Oliver
Alcock, taught us this week, very
few people grow up wanting to be
accountants.
The Capitalist would expect Alcock,
who was fired from PwC’s graduate
scheme for failing his exams, is
living proof of new research from
Leeds Beckett University, which
found a mere 1.1 per cent of
children want to be accountants as
an adult.
This was the same amount as
those wanting to become a
paramedic and double the amount
who wanted to be a dentist (0.5 per
cent – we’re as shocked as you are).
It’s hard to gauge whether nowadults had a deep-seated desire to
go into banking or financial
services when they were little, as
this was not one of the available
categories.
The bad news is that almost eight
in 10 of us are not pursuing our
childhood ambitions. Though a
simple walk through the City, or
some strategic eavesdropping in
Broadgate Circle on a Friday
evening could’ve told us that.
THE MEDIA COALMINE’S CANARY
QUOTE OF THE DAY
Note: You probably need a longish lead so as not to cause your dog any harm
Worrying news from the media coalmine
– the canary is alive and thriving.
Political website, The Canary, described
by one Telegraph commentator as “the
maddest left-wing website in the world”,
is now more popular online than the
Spectator, New Statesman and
Economist, according to one measure.
The SimilarWeb UK Media Index for July
found the site rose 113 places to 97 in the
month after the referendum – attracting
7.53m page views, putting the proJeremy Corbyn site one place ahead of
the Spectator. Is this the worst news to
come out of the Brexit vote...?
None of your
business
Nigel Farage’s curt response
when asked what he
was doing queuing up
outside the German
embassy. Apparently
he was not applying
for citizenship...
MyOptique sets its sights on Europe Boris in charge of UK
after glasses group Essilor takeover while Theresa tramps
FRANCESCA WASHTELL
@fwashtell
ONLINE glasses retailer MyOptique
has been sold to the French eyewear
giant Essilor.
MyOptique, whose brands include
the Sunglasses Shop and Glasses
Direct, will leverage its new parent
company’s global supply chain and
collaborate with its other operating
businesses to increase its reach across
Europe, the company said yesterday.
Glasses Direct, which was founded
in 2004, was the first company to
take prescription eyewear online,
though MyOptique provides
products across all categories,
including glasses, contact lenses and
sunglasses.
The company was sold by a ream
of private equity investors, including
Highland Capital Partners, Korys and
Acton Capital Partners. It has annual
revenues of around £57m.
“This transaction represents a
major milestone for the MyOptique
Group,” MyOptique chief executive
Kevin Cornils said.“Our new
ownership provides a tremendous
platform from which to continue to
build a very successful business on
our proven multi-category, multibrand model.”
The financial details of the deal
were not disclosed.
MARK SANDS
@MkSands
FOREIGN secretary Boris Johnson is
the government’s senior minister
for the second week of Theresa
May’s holiday.
May, who is spending a break in
Switzerland, last week appointed
chancellor Philip Hammond to the
role of “senior minister in charge”.
However, the position has now
been rotated to the former London
mayor for the second half of May’s
holiday. It means Johnson is
effectively leading the country for
the remainder of May’s absence.
He is not expected to relocate
from the Foreign Office to Number
10. It is a demonstration of May's
faith in Johnson after her foreign
secretary endured a bruising start
to his time in office. May is due to
return to the UK on 24 August.
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12
NEWS
CITYAM.COM
BT Sport could be bruised as Sky bends it like Beckham
I
N THE past years, I’ve discussed BT
Sport’s gradual journey from new
challenger to a genuine force in televised sports.
As the new football season starts, it’s
a good time to look at how Sky Sports,
its principal rival, has adapted its campaigns and messaging in an attempt to
dissuade subscribers migrating to BT.
Once again, the advertising battle between the two broadcasters began several weeks before kick-off.
BT Sport’s multi-channel campaign
has emphasised that it is the sole broadcaster to show both Champions League
and Premier League football. Sky Sports
has turned to David Beckham to give its
own effort a touch of stardom, while focussing on its dominant position when
Stephan
Shakespeare
it comes to broadcasting the domestic
competition.
But which campaign has resonated
best with the public? YouGov’s BrandIndex data indicates that Sky has had the
upper hand.
Among all respondents, its Ad Awareness score (whether they have seen a
brand’s advert in the past two weeks)
peaked at 17 per cent before the start of
the season, compared to 14 per cent for
BT Sport. Although both brands have
seen their scores rise by over five points
in a month.
Sky is also winning the battle among
football fans. The scores are more
marked among this group as we might
expect; The Sky Sports score is 25 per
cent against BT Sport’s 21 per cent This
marks a turnaround for Sky Sports. At
the same point last year it lagged behind in the battle for advert supremacy.
Our data shows that BT Sport still has
reason to be optimistic, though. Its
Value score among all respondents is
healthier than Sky’s (although both
brands show negative ratings on this
metric). BT Sport’s score currently
shows minus 4.7, against minus 15.2
for Sky Sports. Perhaps more matches,
doesn’t automatically mean greater
value for potential subscribers.
Sky does still does have a way to go to
reassert itself as the undisputed sector
leader. In the past, competition fell
away as Sky used its financial muscle
@lynseybarber
DRIVERLESS car technology is careering towards the trough of disillusionment after hitting the peak of hype,
according to Gartner analysts monitoring the progression of the world’s
emerging technology trends.
The firm’s annual Hype Cycle tracks
where trends such as virtual reality
(VR), robotics, personal voice assistants and, of course, driverless cars,
are in their journey from talked-about
technology to becoming as mainstream as smartphones.
Autonomous vehicle technology is
being worked on by the world’s top
tech companies, including Google,
Apple and Uber, in addition to the
leading car manufacturers.
It has moved past what Gartner calls
the peak of inflated expectations, edging closer to the so-called trough of
disillusionment with a time-scale for
mass adoption moving beyond the
five to 10-year period identified last
year and now put at more than 10
years away.
LICENSING ACT 2003
NOTICE OF APPLICATION FOR
VARIATION OF PREMISES LICENCE
NOTICE IS GIVEN THAT Strada Trading
Limited has applied to City of London on
10 August 2016 to vary the premises
licence at Strada, 4 St Paul’s Churchyard,
London, EC4M 8AY so as to permit the
sale of alcohol to commence at 09:00
Monday to Sunday, as more particularly
set out in the application.
Any person who wishes to make
a representation in relation to this
application must give notice in writing to:
City of London Licensing Authority,
Markets and Consumer Protection,
Corporation of London, PO Box 270,
Guildhall, London EC2P 2EJ to be
received by no later than 07 September
2016 stating the grounds for making said
representation.
A record of the application can be
inspected on the Council’s website
www.cityoflondon.gov.uk or at the above
address during office hours. The register
can be viewed at the above address
during office hours.
It is an offence, under section 158 of the
Licensing Act 2003, to knowingly or
recklessly make a false statement in or in
connection with an application for a
premises licence and the maximum fine
on being convicted of such an offence is
£5,000.
Thomas & Thomas Partners LLP
38a Monmouth Street,
London WC2H 9EP
www.tandtp.com
£ Stephan Shakespeare is the chief
executive of YouGov
Sky Sports is winning ad battle
25
SKY SPORTS
BT SPORT
20
15
10
5
01 July 16
10 July 16
19 July 16
Driverless cars
set to hit their
peak of hype
LYNSEY BARBER
and history to dominate. BT Sport isn’t
going away any time soon though, and
the competition will continue, not just
in the ad world.
28 July 16
06 Aug 16
May is most
popular senior
UK politician
MARK SANDS
Virtual reality technology is making
headway, however, moving closer to
the “plateau of productivity”, or mainstream adoption.
Several tech firms, including Facebook’s Oculus, China’s Xiaomi and
Samsung have launched or plan to
launch limited availability VR headsets this year.
Immersive experiences is one of
three top-level trends identified by
Gartner in 2016.
Along with virtual reality and augmented reality, which has gained
huge attention with the popularity of
Pokemon Go, other tech in this area
includes gesture controlled devices,
smart homes and human augmentation.
The report said: “Due to radical computational
power,
near-endless
amounts of data and unprecedented
advances in deep neural networks,
[smart machine technologies] will
allow organisations with smart machine technologies to harness data in
order to adapt to new situations and
solve problems that no one has encountered previously,”
Gisela Stuart will lead think tank British Future to welcome EU citizens in the UK
Labour Brexiteer leads probe on
rights for UK-based EU nationals
MARK SANDS
@MkSands
LABOUR MP and Brexit campaigner
Gisela Stuart will lead a cross-party
inquiry into rights that could be
granted to EU nationals living in the
UK after Britain splits from the EU.
Stuart will lead the work for think
tank British Future, working with
figures from the Conservatives and
Ukip, as well as the Institute of
Directors’ head of employment and
skills Seamus Nevin, and union boss
Owen Tudor.
Theresa May has indicated she
would grant residency to EU
nationals living in the UK if
European states agree to reciprocate,
but Stuart said today that May had
left UK-based Europeans “in limbo”.
“There is wide agreement among
the public, politicians and business,
that EU citizens are welcome here
and that the government should
make clear they can stay,” Stuart said.
@MkSands
PRIME Minister Theresa May is
viewed more favourably than any
other senior UK politician,
according to polling data.
May, who took office only last
month, is the only UK politician to
achieve a positive score in the
rankings, published yesterday by
PoliticalBetting.
Forty eight per cent of the UK
public said they have a positive
view of May, compared to 36 per
cent who view her unfavourably,
creating a net favourability rating
of 12 per cent.
The only other figures to record a
positive score were Barack Obama
and Hillary Clinton.
Both David Cameron and Jeremy
Corbyn notched negative scores,
while more than five times as many
people disapproved of George
Osborne than backed him.
When comparing the ratings of
May and Corbyn, two groups
showed greater support for the
Labour leader.
Among Scots, Corbyn is rated
marginally more favourably while
he also benefits from more young
supporters. A greater proportion of
18-24 year olds rated the Labour
leader favourably than any other
group.
Corbyn unveils plans to
nationalise bus networks
JAMES NICKERSON
@nickersonjw
LABOUR leader Jeremy Corbyn yesterday
laid out his plans to rebuild and transform
the UK’s transport system through
renationalisation as the fight for the
Labour leadership crown continues.
Corbyn set out how he would “rebuild
and transform Britain’s transport system”,
extending public ownership from rail to
bus networks.
He said that enough money from public
ownership would be raised to cut rail fares
15 Aug 16
by as much as 10 per cent, while more than
£500m would be unlocked every year to
invest in increasing bus routes and
capacity.
In an email to all Labour party members
yesterday, Corbyn said: “We have a
transport system that doesn’t work for
passengers or taxpayers. That’s got to
change. I want to rebuild and transform
Britain so that no one and nowhere is left
behind. For transport that means that we
will put the public back into our economy
and services by expanding our publicly
controlled bus network.”
Jeremy Corbyn said the transport system doesn’t work for taxpayers
WEDNESDAY 17 AUGUST 2016 MARKETS 13
CITYAM.COM
CITYDASHBOARD
LONDON REPORT
UK inflation data
shocker bursts
FTSE 100 bubble
U
K INFLATION, that was
higher than expected in
July, knocked the FTSE 100
from its 14-month high
yesterday as new data
weighed on the market. The bluechip index fell 0.7 percent to
6,893.92 points. A rise in inflation –
up 0.6 per cent in July from 0.5 per
cent in June – pointed to the impact
on the UK economy from the vote to
quit the European Union and a
generally weaker sterling. Stocks
most exposed to a weaker domestic
British economy, such as banks and
retailers were hit.
Retailer Marks & Spencer fell 3.2
per cent, while the FTSE 250 mid-cap
index – which contains more
domestically-focused companies –
fell 0.7 per cent. However, mining
stocks outperformed to rise in spite
of the weaker market, with
Antofagasta surging 8.7 per cent
after posting an increase in mid-year
profits.
The FTSE 100 is up around 10 per
cent so far in 2016, although the
value of UK shares in US dollar terms
has been impacted by a fall in
sterling after the Brexit vote.
In association with
YOUR ONE-STOP SHOP BROKER
VIEWS AND MARKET REPORTS
BEST OF THEBROKERS
NEW YORK
REPORT
To appear in Best of the Brokers, email your research to [email protected]
AVIVA
P
424
16 Aug
Wall St slips
on rate chatter
417
422
420
418
U
416
10 Aug
11 Aug
12 Aug
15 Aug
16 Aug
Canaccord Genuity has reiterated its “buy” rating on insurance giant Aviva’s stock
after the group announced more modest cuts to its earnings per share than had
been feared. The broker hiked its target price to 500p from 435p after FX tailwinds
bolstered the company’s results, released at the beginning of this month, despite a
lowered outlook for life insurance growth after the Brexit vote.
FAROE PETROLEUM
75.00
P
72.50
73.75
16 Aug
70.00
FTSE
6,950
67.50
6,900
16 Aug
6,893.92
6,850
6,800
10 Aug 11 Aug 12 Aug 15 Aug 16 Aug
10 Aug
11 Aug
12 Aug
15 Aug
16 Aug
A successful spudding in the Norwegian North Sea and a confirmed acquisition, both
announced yesterday, have boosted confidence in Faroe Petroleum from brokers at
Cantor Fitzgerald. Analysts said they were “encouraged with the pace of activity
exhibited by the company” in a “challenging” sector environment. Cantor Fitzgerald
has retained its “buy” rating and put a 100p target price on the group’s stock.
S STOCKS eased from record
highs yesterday after comments
from Federal Reserve officials
fuelled speculation of an interest rate
hike this year.
New York Federal Reserve Bank
president William Dudley said a rate
hike in September was possible, while
Atlanta Fed president Dennis Lockhart
said the US economy is likely strong
enough for at least one rate increase
before the end of 2016, with two a
possibility.
The Dow Jones industrial average
was down 84.03 points, or 0.45 per
cent, to 18,552.02, the S&P 500 lost 12
points, or 0.55 per cent, to 2,178.15
and the Nasdaq Composite dropped
34.90 points, or 0.66 per cent, to
5,227.11.
Investors will pore over the minutes
of the Fed’s July policy meeting,
scheduled for release today, for clues
on the US central bank’s rate plans
after recent blowout jobs data.
Shares of TJX were down 5.8 per cent
at $77.97 and among the biggest drags
on the S&P 500 after the firm forecast
earnings below analysts’ estimates.
CITY MOVES WHO’S SWITCHING JOBS
ALLIANZ GLOBAL
CORPORATE & SPECIALTY
Allianz Global Corporate &
Specialty (AGCS) has
appointed Stewart Eaton as
head of product recall for
regional unit London (RUL). As
an experienced product recall
underwriter, he joins AGCS’
crisis management team to
manage the product recall
book. He will report to Tim
Galloway, AGCS regional head of liability. Eaton joins
from Castel Specialty where he was a class underwriter
writing product recall business. Prior to this he was
head of line and class underwriter for contaminated
products at Sagicor at Lloyd’s. His career started at AIG
in a number of roles including as an underwriter in
AIG’s crisis management team in London focusing on
product recall.
COMTEK
Comtek, a service provider for the telecoms industry,
has appointed Mark Watson as chief development
officer. Mark will be responsible for building the
company’s end-to-end asset recovery business at its
locations in the UK, Netherlands, Germany, Turkey and
the US. In addition to developing new customers, he
will also be tasked with nurturing existing customer
relationships to cross-sell and ensure customers are
benefitting from Comtek’s full service wrap. Mark has
20 years of experience as a board level professional
and qualified accountant. He has also served in a
number of technical roles within the industry,
including; vice president of global technical services at
DHL Supply Chain and vice president of services for
TXO Systems.
COLLIERS INTERNATIONAL
Simone Marshall has been appointed as an associate
director in Colliers International’s healthcare team.
Based in London, Simone brings to the team her
expertise in the primary healthcare real estate market,
where much of her experience has been gained at
Octopus Healthcare, one of the major top three
specialist investors and developers in the market.
Simone has specialised in the primary care market,
working with the MedicX Fund portfolio since 2010.
ROSENBLATT SOLICITORS
Rosenblatt Solicitors has appointed Nicola Foulston as
CEO of the City law firm. Nicola was named Veuve
Cliquot Business Woman of the Year in 1997 when she
was chief executive of Brands Hatch Leisure – she was,
and remains, the award’s youngest ever recipient. She
became chief executive of Brands Hatch in early 1990
when the business was valued at £6m and built it into
the largest organiser and promoter of motor sport in
Europe. In 1999, she sold the business for over $195m
to Interpublic, the US marketing giant.
To appear in CITYMOVES please email your career updates and pictures to [email protected]
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14 MARKETS WEDNESDAY 17 AUGUST 2016
FTSE 100
FTSE 250
6893.92
47.27
17808.50
120.77
Price Chg High Low
FTSE ALL SHARE
BATS UK 100
BATS UK 250
DOW JONES
NASDAQ
S&P 500
/€ 1.1566
0.0051 €/$ 1.1276
0.0092
3748.86
25.07
11709.11
82.79
16231.83
77.08
18552.02
84.03
5227.11
34.90
2178.15
12.00
/$ 1.3043
0.0163 €/£ 0.8644
0.0039
/¥ 130.79
0.3520 €/¥ 113.07
0.0320
Price Chg High Low
CONSTRUCTION & MATERIALS
GILTS
0.07
-0.05
-0.06
-0.11
-0.14
-0.17
0.19
-0.21
-0.24
0.27
-0.34
0.25
0.23
-0.51
-0.44
0.34
-0.49
0.20
-0.61
-0.67
-0.03
-0.23
-0.77
-0.80
-0.23
-0.86
-0.90
-0.95
-1.05
-0.27
-0.45
Tsy 1.250 17 . . . . . . .104.78
Tsy 8.750 17 . . . . . . .108.81
Tsy 5.000 18 . . . . . . .107.57
Tsy 4.500 19 . . . . . . .111.24
Tsy 3.750 19 . . . . . . . .111.14
Tsy 4.750 20 . . . . . .116.50
Tsy 2.500 20 . . . . . .372.15
Tsy 8.000 21 . . . . . . .137.40
Tsy 4.000 22 . . . . . .120.79
Tsy 1.875 22 . . . . . . .128.74
Tsy 2.250 23 . . . . . . .113.04
Tsy 0.125 24 . . . . . . .118.92
Tsy 2.500 24 . . . . . .370.42
Tsy 5.000 25 . . . . . . .137.13
Tsy 4.250 27 . . . . . . .137.27
Tsy 1.250 27 . . . . . . .139.49
Tsy 6.000 28 . . . . . .160.61
Tsy 4.125 30 . . . . . . .373.42
Tsy 4.750 30 . . . . . .150.90
Tsy 4.250 32 . . . . . .146.64
Tsy 1.250 32 . . . . . . . .157.41
Tsy 0.125 36 . . . . . . .144.71
Tsy 4.250 36 . . . . . .153.04
Tsy 4.750 38 . . . . . . .167.97
Tsy 0.625 40 . . . . . .168.26
Tsy 4.500 42 . . . . . . .171.26
Tsy 3.500 45 . . . . . . .151.55
Tsy 4.250 46 . . . . . . .173.51
Tsy 4.025 49 . . . . . . .181.22
Tsy 0.500 50 . . . . . .197.05
Tsy 0.250 52 . . . . . .192.38
106.0
116.5
111.0
112.7
111.7
117.1
372.8
138.2
121.3
129.1
113.8
119.3
371.5
138.1
138.3
140.0
161.8
375.3
153.0
148.9
158.4
145.7
155.7
170.9
169.9
174.5
154.6
177.1
185.4
199.0
194.7
104.1
108.8
107.4
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
AEROSPACE & DEFENCE
BAE Systems . . . . . . . . .521.5
Cobham . . . . . . . . . . . . .160.3
Meggitt . . . . . . . . . . . . .457.9
QinetiQ Group . . . . . . . .225.9
Rolls-Royce Holdi . . . . .788.0
Senior . . . . . . . . . . . . . .228.3
Ultra Electronics . . . . .1720.0
-12.0
-0.5
-0.9
-0.9
-8.0
-4.1
-11.0
545.5
260.4
501.0
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 . . . . . . . . . . . . . . . .308.6 0.4 313.5 248.6
BANKS
Aldermore Group . . . . .139.6 -1.9
Barclays . . . . . . . . . . . . .161.8 -1.8
BGEO Group . . . . . . . .2790.0 -171.0
CYBG . . . . . . . . . . . . . . .263.6 -6.4
HSBC Holdings . . . . . . .542.5 -5.0
Lloyds Banking Gr . . . . .54.0 -0.6
Metro Bank . . . . . . . . .2340.0 16.0
Royal Bank of Sco . . . . .191.6 -1.5
Shawbrook Group . . . . .192.0 -5.8
Standard Chartere . . . . .653.1 -3.8
Virgin Money Hold . . . .286.9 -5.9
303.2
274.1
2961.0
289.5
557.6
80.3
2350.0
340.7
365.0
811.4
440.0
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.) . . . . . . . . . . .515.0 1.5 614.5 455.3
Britvic . . . . . . . . . . . . . .651.0 1.0 738.5 584.0
Coca-Cola HBC AG . . . .1712.0 -11.0 1730.0 1255.0
Diageo . . . . . . . . . . . . .2171.5 -16.0 2214.6 1640.0
SABMiller . . . . . . . . . .4382.0 -4.0 4440.0 2877.5
CHEMICALS
Croda Internation . . . .3391.0
Elementis . . . . . . . . . . .220.8
Johnson Matthey . . . .3349.0
Synthomer . . . . . . . . . .378.8
Victrex plc . . . . . . . . . .1560.0
-21.0
-1.4
-14.0
3.5
20.0
3427.0 2657.7
254.1 180.6
3390.0 2230.0
386.8 275.1
1939.0 1367.0
Balfour Beatty . . . . . . .244.4
CRH . . . . . . . . . . . . . . .2512.0
Galliford Try . . . . . . . . .1021.0
Ibstock . . . . . . . . . . . . . .180.6
Keller Group . . . . . . . . .880.0
Kier Group . . . . . . . . . .1153.0
Marshalls . . . . . . . . . . . .288.3
Polypipe Group . . . . . .280.0
3.4
30.0
1.0
-1.0
-5.5
-9.0
-1.5
-8.9
272.5
2519.0
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 . . . . . . . . . .309.8 -5.1 357.2 207.6
SSE . . . . . . . . . . . . . . . .1526.0 -29.0 1628.0 1321.0
ELECTRONIC & ELECTRICAL EQ.
Halma . . . . . . . . . . . . .1072.0 -22.0
Morgan Advanced M . . .287.2 1.2
Renishaw . . . . . . . . . .2655.0 -38.0
Spectris . . . . . . . . . . . .1926.0 -74.0
1094.0 713.0
347.5 192.3
2700.0 1600.0
2000.0 1442.0
EQUITY INVESTMENT INSTRUM.
Aberforth Smaller . . . .1010.0 -5.0 1216.0 849.0
Alliance Trust . . . . . . . .582.5 -6.5 589.0 440.1
Bankers Inv Trust . . . . .655.0 -6.0 664.0 522.0
BH Macro Ltd. GBP . . . .1923.0 4.0 2103.0 1912.0
British Empire Tr . . . . . .556.0 0.0 558.5 412.0
Caledonia Investm . . .2360.0 -35.0 2511.0 2112.0
City of London In . . . . .406.5 -2.7 410.6 341.5
Edinburgh Inv Tru . . . . .728.5 -2.5 735.0 620.0
Electra Private E . . . . .3770.0 -15.0 4019.0 3175.0
Fidelity China Sp . . . . . .173.0 -0.7 175.0 110.5
Fidelity European . . . . .179.0 -0.5 179.5 151.2
Finsbury Growth & . . . .663.5 -6.0 669.6 532.5
Foreign and Colon . . . .504.5 -2.5 508.2 391.2
GCP Infrastructur . . . . . .128.0 0.0 131.5 114.8
Genesis Emerging . . . .596.5 -11.0 610.1 400.5
HarbourVest Globa . . .920.0 -3.5 1372.5 825.0
HICL Infrastructu . . . . . .177.0 -2.5 185.1 150.2
International Pub . . . . .159.8 -1.0 162.6 130.3
John Laing Infras . . . . .136.0 -0.9 140.4 114.0
JPMorgan American . . .337.0 -4.1 342.0 243.0
JPMorgan Emerging . . .717.5 -15.0 736.5 483.0
Mercantile Invest . . . . .1675.0 -7.0 1838.0 1375.0
Monks Inv Trust . . . . . .503.0 -0.5 504.5 361.1
Murray Internatio . . . .1087.0 -2.0 1096.0 742.5
NB Global Floatin . . . . . .92.3 -0.6 96.3 84.6
P2P Global Invest . . . . .824.0 8.0 1090.0 804.0
Perpetual Income . . . . .385.1 -4.8 423.5 332.0
Personal Assets T . . .40210.0-100.040500.033130.0
Polar Capital Tec . . . . . .759.5 -15.0 779.0 503.5
RIT Capital Partn . . . . .1774.0 -35.0 1814.0 1436.0
Riverstone Energy . . . .975.0 14.5 1060.0 720.0
Scottish Inv Trus . . . . . .708.5 -4.5 713.0 544.5
Scottish Mortgage . . . . .310.8 -4.0 314.8 220.6
Temple Bar Inv Tr . . . . .1110.0 -4.0 1154.0 940.0
Templeton Emergin . . .581.5 -5.0 589.3 371.5
The Renewables In . . . .107.0 -0.4 107.8 90.3
TR Property Inv T . . . . .305.2 -4.0 314.9 241.7
Witan Inv Trust . . . . . . .841.0 -3.0 849.2 683.0
Woodford Patient . . . . .91.5 -0.2 117.1 81.0
Worldwide Healthc . . .2139.0 -23.0 2179.0 1596.0
FINANCIAL SERVICES
3i Group . . . . . . . . . . . .625.0
3i Infrastructure . . . . . . .193.8
Aberdeen Asset Ma . . .330.2
Allied Minds . . . . . . . . . .367.3
Arrow Global Grou . . . . .231.3
Ashmore Group . . . . . . .367.5
Brewin Dolphin Ho . . . .259.2
Charles Taylor . . . . . . . .272.0
City of London In . . . . .360.0
CITYAM.COM
-8.5
-0.7
-0.6
-5.1
0.0
9.5
-1.8
0.0
12.5
640.0
200.0
364.5
535.0
288.0
370.5
319.3
289.0
365.2
389.8
163.6
209.3
267.0
178.3
196.4
210.2
221.0
285.0
Price
Close Brothers Gr . . . .1356.0
CMC Markets . . . . . . . . .270.0
Hargreaves Lansdo . . .1338.0
Henderson Group . . . . .247.4
ICAP . . . . . . . . . . . . . . .460.5
IG Group Holdings . . . . .931.0
Intermediate Capi . . . .596.5
International Per . . . . .267.0
Investec . . . . . . . . . . . .498.8
IP Group . . . . . . . . . . . .180.4
John Laing Group . . . . .232.9
Jupiter Fund Mana . . . .425.7
Liontrust Asset M . . . . .323.5
LMS Capital . . . . . . . . . . .57.3
London Finance & . . . . .38.5
London Stock Exch . . .2881.0
Man Group . . . . . . . . . . .115.0
OneSavings Bank . . . . .223.7
Paragon Group Of . . . .292.4
Provident Financi . . . .2835.0
PureTech Health . . . . . .155.3
Rathbone Brothers . . .1824.0
Real Estate Credi . . . . . .163.8
Record . . . . . . . . . . . . . . .25.3
S&U . . . . . . . . . . . . . . .2377.0
Sanne Group . . . . . . . .398.0
Schroders . . . . . . . . . .2785.0
SVG Capital . . . . . . . . . .553.0
Tullett Prebon . . . . . . . .364.8
VPC Specialty Len . . . . . .82.0
Walker Crips Grou . . . . .45.0
Chg High Low
19.0 1547.0 989.5
2.5 290.8 219.0
-8.0 1525.0 1054.0
-5.3 312.0 195.0
-4.7 515.5 381.8
9.0 932.0 690.0
3.5 671.9 454.2
-0.5 426.0 219.0
1.5 570.5 402.7
-3.5 259.1 120.4
-5.6 240.4 187.0
-2.3 472.5 328.9
5.5 340.0 235.0
-0.3 80.0 54.8
0.0 40.5 34.0
10.0 2906.0 2123.0
-1.8 175.7 107.3
-8.5 405.6 176.2
-4.0 444.8 227.4
1.0 3634.0 2164.0
5.0 170.5 120.0
-11.0 2359.0 1590.0
0.8 183.0 143.0
0.0 38.8 22.1
2.0 2610.0 1992.5
4.3 449.0 264.0
-19.0 3023.0 2049.0
-7.5 564.0 436.0
0.0 401.0 275.0
-0.3 103.3 77.0
0.0 52.5 41.3
AIR LIQUIDE .....................................................99.26
AIRBUS GROUP .................................................51.49
ALLIANZ N.......................................................132.80
ANHEUS.-BUSCH INBEV....................................111.45
ASML HLDG........................................................97.91
AXA....................................................................18.21
BANCO SANTANDER ............................................3.81
BASF N..............................................................72.85
BAYER N............................................................97.92
BBVA ..................................................................5.27
BMW ................................................................79.49
BNP PARIBAS-A-..............................................44.02
CARREFOUR......................................................22.35
DAIMLER N .......................................................62.52
DANONE...........................................................69.25
DEUTSCHE BANK N............................................12.67
DEUTSCHE POST N .............................................28.12
DEUTSCHE TELEKOM N.......................................15.49
E.ON N.................................................................8.51
ENEL ...................................................................4.01
ENGIE ...............................................................14.68
ENI.....................................................................13.74
ESSILOR INTL....................................................114.35
FRESENIUS........................................................67.75
GENERALI...........................................................11.75
IBERDROLA.........................................................5.97
INDITEX ............................................................31.20
ING GROUP.......................................................10.48
INTESA SANPAOLO..............................................1.94
L'OREAL...........................................................174.55
LVMH ................................................................157.15
MUENCH RUECKVERS N...................................160.75
NOKIA................................................................5.09
ORANGE ............................................................13.79
ROY.PHILIPS.......................................................25.17
SAFRAN.............................................................61.39
SAINT GOBAIN..................................................39.04
SANOFI .............................................................70.87
SAP...................................................................77.99
SCHNEIDER ELECTRIC .......................................60.29
SIEMENS N ......................................................105.85
SOCIETE GENERALE...........................................31.40
TELEFONICA........................................................8.97
TOTAL ................................................................43.51
UNIBAIL-RODAMCO.........................................245.45
UNICREDIT ...........................................................2.11
UNILEVER CERT.................................................41.25
VINCI ...............................................................67.60
VIVENDI.............................................................17.85
VOLKSWAGEN VZ .............................................124.15
Chg
High
Low
2.28
-0.79
-2.00
-1.50
-1.44
-0.28
-0.03
-0.22
-0.72
-0.02
-1.01
-0.60
-0.25
-0.78
-0.50
-0.09
-0.26
-0.11
-0.21
-0.10
-0.16
0.04
-1.40
-1.12
-0.35
-0.11
-0.76
-0.11
-0.04
-1.15
-1.55
0.70
-0.04
-0.19
-0.09
-1.16
-0.31
-0.92
-0.78
-0.80
-1.25
-0.43
-0.10
0.10
-2.50
-0.01
-0.49
-1.10
-0.17
-2.20
123.65
68.50
170.00
124.20
100.50
26.02
5.98
79.20
131.20
8.84
104.85
60.00
29.90
85.50
70.45
29.47
28.65
16.98
11.75
4.29
17.40
15.85
124.55
70.00
18.09
6.46
35.38
14.63
3.47
177.90
174.30
193.65
7.11
16.98
25.40
72.45
43.16
95.87
79.34
61.90
107.95
47.75
13.30
44.65
257.85
6.08
42.84
69.80
23.57
181.70
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
AA . . . . . . . . . . . . . . . . .270.7 -3.4
AO World . . . . . . . . . . . .156.2 -0.7
Auto Trader Group . . . .386.9 -2.2
B&M European Valu . . . .273.1 -5.5
Brown (N.) Group . . . . .185.0 -2.0
Card Factory . . . . . . . . .298.9 -2.9
Darty . . . . . . . . . . . . . . . .171.3 0.0
Debenhams . . . . . . . . . .59.7 -0.2
DFS Furniture . . . . . . . . .251.6 -8.5
Dignity . . . . . . . . . . . .2689.0 -25.0
Dixons Carphone . . . . .363.0 -4.7
Dunelm Group . . . . . . .879.0 -17.5
Halfords Group . . . . . . .359.1 -4.9
Home Retail Group . . . .157.5 0.0
Inchcape . . . . . . . . . . . .713.5 -3.5
JD Sports Fashion . . . .1275.0 -46.0
Just Eat . . . . . . . . . . . . .587.5 -4.0
Kingfisher . . . . . . . . . . .359.7 -3.7
Marks & Spencer G . . . .337.5 -11.3
Next . . . . . . . . . . . . . . .5385.0-100.0
Pendragon . . . . . . . . . . . .32.1 -0.2
Pets at Home Grou . . . .253.8 -5.7
Saga . . . . . . . . . . . . . . . .216.4 -1.8
Sports Direct Int . . . . . .295.7 -1.6
Ted Baker . . . . . . . . . .2500.0 -21.0
WH Smith . . . . . . . . . .1567.0 -33.0
BT Group . . . . . . . . . . . .392.6 -4.2 499.8 375.9
TalkTalk Telecom . . . . .225.7 -4.8 323.0 189.5
Telecom Plus . . . . . . . .1041.0 -17.0 1171.0 815.5
FOOD & DRUG RETAILERS
Booker Group . . . . . . . .176.3
Greggs . . . . . . . . . . . . .1044.0
Morrison (Wm) Sup . . .189.6
Ocado Group . . . . . . . .280.4
Sainsbury (J) . . . . . . . .235.0
SSP Group . . . . . . . . . . .328.5
Tesco . . . . . . . . . . . . . . . .157.7
UDG Healthcare Pu . . . .617.5
-1.6
-8.0
-1.3
-8.1
0.0
-3.1
-0.1
2.0
190.0
1314.0
209.4
407.1
292.5
334.0
204.8
625.0
149.4
884.0
139.0
208.1
214.6
264.0
139.2
460.3
361.8 209.9
189.3 120.5
449.6 313.8
350.0 233.1
389.1 160.4
399.0 290.8
174.0 68.0
89.6 52.9
349.0 181.0
2834.0 2205.0
500.0 281.6
1018.0 741.0
530.5 305.6
181.5 89.7
810.0 581.0
1332.0 805.5
603.9 329.1
379.7 306.7
542.5 285.2
8015.0 4384.0
49.0 26.7
311.2 222.2
220.0 173.9
809.0 252.2
3555.0 2124.0
1878.0 1455.0
Price Chg High Low
Weir Group . . . . . . . . .1582.0 -8.0 1606.0 787.5
INDUSTRIAL METALS & MINING
Evraz . . . . . . . . . . . . . . .174.6 0.8
Risers
%
8.7
6.7
4.6
3.3
2.9
2.7
2.6
2.5
2.4
2.3
Antofagasta . . . . . . . . . . . . . . . .558.5
Hochschild Mining . . . . . . . . . . . .313.7
Cairn Energy . . . . . . . . . . . . . . .204.0
NMC Health . . . . . . . . . . . . . . . .1330.0
Vedanta Resources . . . . . . . . . .546.5
Ashmore Group . . . . . . . . . . . . .367.5
Amec Foster Wheele . . . . . . . . .531.0
Tullow Oil . . . . . . . . . . . . . . . . . .234.2
Countrywide . . . . . . . . . . . . . . .244.5
Euromoney Institut . . . . . . . . . .1109.0
FOOD PRODUCERS
BBA Aviation . . . . . . . . .258.1 -1.9 262.2 150.2
Clarkson . . . . . . . . . . .2146.0 6.0 2555.0 1691.0
Royal Mail . . . . . . . . . . .512.0 -4.0 541.0 413.3
NON LIFE INSURANCE
Admiral Group . . . . . .2254.0
Beazley . . . . . . . . . . . . .395.6
Direct Line Insur . . . . . .374.3
esure Group . . . . . . . . .256.0
Hastings Group Ho . . . .213.4
Hiscox Limited (D . . . .1077.0
Jardine Lloyd Tho . . . . .979.0
Lancashire Holdin . . . . .611.0
RSA Insurance Gro . . . . .511.0
3599.0 2350.0
2538.0 1536.0
697.0 504.5
392.4 273.2
738.5 502.0
3678.5 2524.0
FORESTRY & PAPER
Mondi . . . . . . . . . . . . . .1611.0 -9.0 1639.0 1124.0
GAS, WATER & MULTIUTILITIES
Centrica . . . . . . . . . . . . .233.6 -2.1
National Grid . . . . . . . .1081.0 -21.0
Pennon Group . . . . . . .890.5 -11.5
Severn Trent . . . . . . . .2429.0 -28.0
United Utilities . . . . . . .991.5 -11.5
268.9 183.6
1130.5 818.7
945.5 713.0
2478.0 2024.0
1039.0 828.0
GENERAL INDUSTRIALS
RPC Group . . . . . . . . . . .876.5
Smith (DS) . . . . . . . . . . .411.2
Smiths Group . . . . . . .1350.0
Smurfit Kappa Gro . . .1834.0
Vesuvius . . . . . . . . . . . . .371.1
-12.5
-5.9
-10.0
-19.0
-2.6
889.0
418.2
1360.0
2783.0
399.1
575.6
331.2
863.5
1584.0
270.6
-6.0
-4.6
-4.8
-4.7
1.1
-13.0
-8.0
-5.0
-5.5
2288.0
404.2
414.3
288.1
220.0
1091.0
1054.0
759.0
517.6
1455.0
318.4
333.3
223.7
149.8
867.0
778.0
518.5
373.2
LIFE INSURANCE
Aviva . . . . . . . . . . . . . . .417.0
JRP Group . . . . . . . . . . . .92.0
Legal & General G . . . . .211.7
Old Mutual . . . . . . . . . . .213.5
Phoenix Group Hol . . . .843.5
Prudential . . . . . . . . . .1415.5
-3.0
-2.0
-3.9
-3.5
-11.5
-27.0
521.0
191.2
274.9
225.5
943.5
1568.0
346.2
91.5
165.0
149.4
719.0
1087.0
HEALTH CARE EQUIPMETN & S.
Assura . . . . . . . . . . . . . . .57.7 -0.3
Mediclinic Intern . . . . . .1110.0 -9.0
NMC Health . . . . . . . . .1330.0 42.0
Smith & Nephew . . . .1280.0 -20.0
Spire Healthcare . . . . .344.2 -5.0
61.8
1191.0
1335.0
1310.0
401.6
49.2
814.0
700.0
1051.0
279.9
HHOLD GDS & HOME CONSTR.
Barratt Developme . . . .441.7 4.9
Bellway . . . . . . . . . . . .2156.0 19.0
Berkeley Group Ho . . .2497.0 4.0
Bovis Homes Group . . .821.0 8.0
Crest Nicholson H . . . . .432.4 -4.7
McCarthy & Stone . . . . .173.5 0.0
Persimmon . . . . . . . . .1736.0 3.0
Reckitt Benckiser . . . . .7521.0 -62.0
Redrow . . . . . . . . . . . . .338.7 3.4
Taylor Wimpey . . . . . . .153.8 0.7
662.5 332.6
2848.0 1689.0
3757.0 2270.0
1163.0 627.0
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 . . . . . . . . . . .594.0
Hill & Smith Hold . . . . .1192.0
IMI . . . . . . . . . . . . . . . .1064.0
Rotork . . . . . . . . . . . . . .200.5
Spirax-Sarco Engi . . .4409.0
-6.0
11.0
-11.0
-4.6
-33.0
668.5
1221.0
1088.1
222.0
4486.0
494.0
643.5
742.0
152.7
2725.0
Price Chg High Low
Wireless Group . . . . . . .320.0 1.5 320.0 150.3
WPP . . . . . . . . . . . . . . .1764.0 -20.0 1784.0 1304.0
Zoopla Property G . . . . .301.4 -3.0 337.8 199.3
MINING
Acacia Mining . . . . . . . .581.5
Anglo American . . . . . .890.0
Antofagasta . . . . . . . . .558.5
BHP Billiton . . . . . . . . .1049.5
Centamin (DI) . . . . . . . .177.0
Fresnillo . . . . . . . . . . . .1982.0
Glencore . . . . . . . . . . . .196.9
Hochschild Mining . . . . .313.7
Kaz Minerals . . . . . . . . .167.6
Polymetal Interna . . . .1190.0
Randgold Resource . .8585.0
Rio Tinto . . . . . . . . . . .2486.5
Vedanta Resources . . .546.5
-3.5
17.3
44.5
7.0
-0.3
-1.0
3.9
19.6
1.8
6.0
25.0
51.0
15.5
Fallers
%
-5.8
-3.9
-3.7
-3.7
-3.5
-3.3
-3.2
-3.2
-3.1
-3.0
SUPPORT SERVICES
OIL & GAS PRODUCERS
BP . . . . . . . . . . . . . . . . .436.3
Cairn Energy . . . . . . . . .204.0
Royal Dutch Shell . . . .1930.0
Royal Dutch Shell . . . .2015.5
Tullow Oil . . . . . . . . . . .234.2
-0.6
9.0
-2.5
-1.5
5.6
461.8
231.5
2107.5
2148.0
281.4
310.3
127.2
1266.0
1277.5
118.2
Amec Foster Wheel . . . .531.0 13.5 829.0 327.6
Petrofac Ltd. . . . . . . . . .850.5 10.0 982.0 663.0
Wood Group (John) . . .730.5 1.0 754.5 534.5
PERSONAL GOODS
Burberry Group . . . . . .1366.0 2.0 1504.0 1041.0
PZ Cussons . . . . . . . . . .348.2 -2.0 354.2 249.3
Supergroup . . . . . . . . .1575.0 -2.0 1714.0 1184.0
PHARMACEUTICALS & BIOTECH
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
Capital & Countie . . . . .289.2 4.1
CLS Holdings . . . . . . . .1355.0 -45.0
Countryside Prope . . . .232.0 -2.3
Countrywide . . . . . . . . .244.5 5.8
Daejan Holdings . . . . .5455.0-120.0
F&C Commercial Pr . . . . .121.1 -1.9
Grainger . . . . . . . . . . . .222.0 -1.5
Kennedy Wilson Eu . . .980.0 -6.5
Safestore Holding . . . . .354.6 -3.1
Savills . . . . . . . . . . . . . .699.0 -15.0
St. Modwen Proper . . . .271.0 -3.5
UK Commercial Pro . . . . .78.1 0.2
Unite Group . . . . . . . . . .611.5 -0.5
5220.0 3774.0
728.0 520.5
353.5 82.3
1385.0 912.0
1968.0 1281.0
1714.9 1237.5
2676.0 1704.0
305.9 130.8
5245.0 3480.0
188.5 144.2
473.4
1970.0
278.5
522.5
6595.0
148.5
254.0
1220.0
400.5
964.5
493.6
88.1
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 . . . . .718.0
British Land Comp . . . .656.0
Derwent London . . . .2746.0
Great Portland Es . . . . .658.5
Hammerson . . . . . . . . .563.5
Hansteen Holdings . . . .112.5
Intu Properties . . . . . . .309.8
-10.0
-9.0
-21.0
-7.0
-7.0
-0.4
-1.5
TOBACCO
TRAVEL & LEISURE
Carnival . . . . . . . . . . . .3623.0 -28.0
Cineworld Group . . . . .586.0 -8.0
Compass Group . . . . . .1497.0 -18.0
Domino's Pizza Gr . . . . .372.9 -4.1
easyJet . . . . . . . . . . . .1060.0 -27.0
FirstGroup . . . . . . . . . . .102.1 -0.5
Go-Ahead Group . . . . .1848.0 -34.0
Greene King . . . . . . . . .800.5 -7.5
InterContinental . . . . .3313.0 -33.0
International Con . . . . .394.3 -8.5
Ladbrokes . . . . . . . . . . .155.3 -0.1
Marston's . . . . . . . . . . . .144.5 -1.2
Merlin Entertainm . . . . .478.1 -2.4
Millennium & Copt . . . .422.5 -16.9
Mitchells & Butle . . . . . .253.1 -1.6
51.75
31.50
-77.50
0.00
11.00
0.45
0.90
-3.20
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.............................-0.072
LIBOR USD - overnight.................................0.419
LIBOR USD - 12 months................................1.506
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..................................................0.41
US long bond yield........................................2.29
Euro Euribor...............................................-0.379
The vix index................................................12.64
The baltic dry index...................................681.00
Markit iBoxx EUR ......................................233.08
Markit iBoxx GBP.......................................332.98
Markit iTraxx................................................65.49
0.00
0.00
-0.01
0.02
0.00
0.83
10.00
-0.55
-1.75
-0.77
WORLD INDICES
Price
Chg %chg
FTSE 100. . . . . . . . . . . . . . . . . . . . . 6893.92 -47.27 -0.68
FTSE 250. . . . . . . . . . . . . . . . . . . . 17808.50 -120.77 -0.67
FTSE All-Share . . . . . . . . . . . . . . . . 3748.86 -25.07 -0.66
FTSE AIM All-Share . . . . . . . . . . . . . 783.50
-1.16 -0.15
Price
S&P 500 . . . . . . . . . . . . . . . . . . . . . . 2178.15
Dow Jones I.A. . . . . . . . . . . . . . . . 18552.02
Nasdaq Composite . . . . . . . . . . . . . 5227.11
Xetra DAX . . . . . . . . . . . . . . . . . . . 10676.65
Chg
-12.00
-84.03
-34.90
-62.56
%chg
-0.55
-0.45
-0.66
-0.58
3907.0
602.0
1515.0
396.9
1808.0
116.4
2713.0
977.5
3346.0
614.5
157.5
176.0
481.9
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 Chg High Low
National Express . . . . .347.2 -0.8 351.0 272.4
Paddy Power Betfa . .9655.0-145.0 14275.0 7560.0
Rank Group . . . . . . . . . .216.7 1.6 295.5 199.7
Restaurant Group . . . . .410.0 -4.1 723.5 256.9
Stagecoach Group . . . . .219.1 1.0 401.5 196.0
Thomas Cook Group . . . .61.6 -0.2 126.0 54.7
TUI AG Reg Shs (D . . . .1031.0 -5.0 1271.0 844.5
Wetherspoon (J.D. . . . .875.5 -14.0 892.0 609.0
Whitbread . . . . . . . . .4001.0 -56.0 5145.0 3391.0
William Hill . . . . . . . . . .303.6 -8.9 410.4 246.9
Wizz Air Holdings . . . .1590.0 -5.0 2047.0 1415.0
AIM 50
4D Pharma . . . . . . . . . .712.5 0.0
Abcam . . . . . . . . . . . . . .745.0 -12.0
Advanced Medical . . . .215.0 -1.5
Amerisur Resource . . . .28.0 0.8
Arbuthnot Banking . .1629.0 14.0
ASOS . . . . . . . . . . . . . .4795.0 -37.0
Brooks Macdonald . .2000.0 0.0
Camellia . . . . . . . . . . .8750.0 0.0
Clinigen Group . . . . . . .633.0 -7.0
Conviviality . . . . . . . . . .226.5 -5.0
CVS Group . . . . . . . . . . .912.0 -9.0
Dart Group . . . . . . . . . .485.8 -18.3
EMIS Group . . . . . . . . .1042.0 -8.0
Fevertree Drinks . . . . .990.0 5.0
First Derivatives . . . . .1940.0 10.0
Gamma Communicati .459.0 3.0
GB Group . . . . . . . . . . .305.0 -4.0
Gemfields . . . . . . . . . . . .38.1 0.6
Gooch & Housego . . . .1016.0 -8.0
GW Pharmaceutical . . .534.5 -17.0
Iomart Group . . . . . . . .297.0 -1.5
James Halstead . . . . . .435.3 -13.3
Johnson Service G . . . . .98.5 -0.5
M&C Saatchi . . . . . . . . .346.0 4.5
M. P. Evans Group . . . . .435.3 4.8
Majestic Wine . . . . . . . .421.5 -4.0
Mulberry Group . . . . . .1102.5 0.0
Nichols . . . . . . . . . . . . .1411.0 -20.0
Numis Corporation . . . .198.0 0.5
Pan African Resou . . . . .23.0 -0.5
Pantheon Resource . . . .156.5 5.3
Patisserie Holdin . . . . . .317.5 -6.0
Pinewood Group . . . . .560.0 0.0
Polar Capital Hol . . . . . .301.5 4.3
Purplebricks Grou . . . . .135.0 -1.3
Redcentric . . . . . . . . . . .185.0 2.8
Redde . . . . . . . . . . . . . .190.0 -5.3
Renew Holdings . . . . . .350.0 -1.5
RWS Holdings . . . . . . . .249.8 2.3
Scapa Group . . . . . . . . .266.3 -1.0
Secure Trust Bank . . .2200.0 48.0
Sirius Minerals . . . . . . . .36.0 -0.5
Smart Metering Sy . . . .473.0 -4.0
Staffline Group . . . . . .1052.0 -11.0
Telford Homes . . . . . . .294.0 4.8
Telit Communicati . . . .265.3 -4.8
Thorpe (F.W.) . . . . . . . . .251.0 -1.5
Vertu Motors . . . . . . . . . .49.3 -0.3
Watkin Jones . . . . . . . . .112.3 -1.5
Young & Co's Brew . . . .1192.0 -10.5
Young & Co's Brew . . . .987.8 12.5
1012.5 660.0
775.5 551.5
218.0 143.5
33.0 17.3
1685.0 1265.0
4846.0 2473.0
2040.0 1400.0
9750.0 7510.0
753.0 492.8
238.0 155.0
928.0 609.0
676.5 429.0
1155.0 841.5
1010.0 416.8
2113.0 1312.5
463.0 268.5
321.0 213.0
65.1 31.5
1060.0 816.5
623.0 211.5
312.5 214.0
520.0 379.0
100.0 84.0
370.0 282.8
450.3 345.5
477.8 296.0
1103.0 883.8
1492.0 1119.0
271.0 180.5
24.3 6.8
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
36.8 10.8
485.9 305.5
1623.0 748.5
433.0 262.0
356.0 178.3
259.6 177.0
78.5 37.8
116.0 100.3
1255.0 1075.0
995.1 792.5
http://corporate.webfg.com
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[email protected]
US SHARES
CREDIT & RATES
Copper Cash Official ..................................4797.50
Aluminium Cash Official ............................1675.75
Nickel Cash Official ..................................10325.00
Aluminium Alloy Cash Official...................1555.00
Cocoa Futures............................................3041.00
Coffee 'C' Futures ..........................................137.22
Feed Wheat Futures.....................................131.80
Soybeans Futures Continuation Contract .1020.40
1286.0 770.0
1257.0 769.0
1656.0 1158.0
1084.0 854.0
1355.0 969.0
2436.0 1671.0
1300.0 848.5
353.9 221.4
7040.0 4620.0
870.5 608.0
312.5 172.5
891.0 467.7
1541.0 1022.0
259.4 164.0
752.0 440.0
168.6 94.0
587.0 363.2
531.0 341.1
3680.0 2328.0
335.6 230.0
545.5 264.9
1091.0 720.0
432.4 253.3
354.6 249.1
221.0 141.0
132.3 76.8
192.8 99.8
2119.0 1313.0
4336.0 3230.0
316.8 255.9
British American . . . .4968.0 -13.0 5035.0 3355.5
Imperial Brands . . . . .4139.0 23.0 4147.5 2991.0
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4.60
0.14
0.82
6.90
-4.00
-18.00
285.00
36.00
44.50
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
2627.0
2047.0
344.8
921.5
743.7
383.0
289.7
ARM Holdings . . . . . . .1687.0 0.0 1689.5 848.5
Laird . . . . . . . . . . . . . . . .331.0 -6.1 403.9 287.8
Rise | Shine
Gold ...........................................................1344.00
Silver .............................................................20.03
Brent Crude...................................................48.94
Krugerrand.................................................1341.40
Palladium ...................................................688.00
Platinum.....................................................1123.00
Tin Cash Official........................................18242.50
Lead Cash Official.......................................1863.75
Zinc Cash Official........................................2263.75
-4.0
-10.5
-31.0
-3.0
-4.4
-7.0
-7.0
-3.6
-7.5
Aggreko . . . . . . . . . . .1068.0 -14.0
Ashtead Group . . . . . .1232.0 -13.0
Atkins (WS) . . . . . . . . .1498.0 -20.0
Babcock Internati . . . .1014.0 -7.0
Berendsen . . . . . . . . . .1251.0 -12.0
Bunzl . . . . . . . . . . . . . .2411.0 -25.0
Capita . . . . . . . . . . . . . .1010.0 -4.0
Carillion . . . . . . . . . . . . .285.8 -2.3
DCC . . . . . . . . . . . . . . .6990.0 -30.0
Diploma . . . . . . . . . . . .829.5 -12.0
Electrocomponents . . . .306.1 -2.9
Essentra . . . . . . . . . . . .500.0 -2.0
Experian . . . . . . . . . . . .1518.0 -23.0
G4S . . . . . . . . . . . . . . . .224.5 -2.8
Grafton Group Uni . . . .523.5 -8.0
Hays . . . . . . . . . . . . . . . .123.2 -1.6
Homeserve . . . . . . . . . .571.5 -5.5
Howden Joinery Gr . . .439.0 -3.5
Intertek Group . . . . . . .3617.0 -43.0
Mitie Group . . . . . . . . . .258.7 -0.1
Pagegroup . . . . . . . . . .355.7 -2.7
PayPoint . . . . . . . . . . . .964.0 -20.5
Paysafe Group . . . . . . . .414.8 -1.7
Regus . . . . . . . . . . . . . .307.5 -2.5
Rentokil Initial . . . . . . . .217.8 -1.6
Serco Group . . . . . . . . . .129.8 -1.2
SIG . . . . . . . . . . . . . . . . .110.8 0.3
Travis Perkins . . . . . . .1534.0 -6.0
Wolseley . . . . . . . . . . .4259.0 -77.0
Worldpay Group (W . . .307.5 -1.5
MEDIA
1650.0
272.4
178.5
85.5
162.0
288.1
1150.0
11.5
125.0
755.5
178.3
278.0
108.0
377.1
1224.0
1471.0
4250.0
1127.0
515.0
276.0
182.8
686.0
SOFTWARE & COMPUTER SERV.
Aveva Group . . . . . . . .1950.0
Computacenter . . . . . .808.0
Fidessa Group . . . . . . .2565.0
Micro Focus Inter . . . .2040.0
NCC Group . . . . . . . . . . .336.1
Playtech . . . . . . . . . . . .884.5
Sage Group . . . . . . . . . .733.5
Softcat . . . . . . . . . . . . . .333.5
Sophos Group . . . . . . . .240.3
MOBILE TELECOMS
St James's Place . . . . . .959.0 -20.5 1023.0 716.0
Standard Life . . . . . . . . .355.3 -1.3 442.2 262.1
Price Chg High Low
Price Chg High Low
Land Securities G . . . .1083.0 -22.0 1352.0 910.0
LondonMetric Prop . . . .161.7 -2.0 171.5 134.9
Redefine Internat . . . . . .43.8 -0.3 57.5 40.5
SEGRO . . . . . . . . . . . . . .447.7 -2.9 463.8 370.5
Shaftesbury . . . . . . . . . .941.5 1.0 969.5 813.0
Tritax Big Box Re . . . . . .142.0 -0.5 143.0 114.7
Workspace Group . . . . .659.5 -15.5 987.0 577.0
Inmarsat . . . . . . . . . . . .842.5 -11.5 1148.0 689.5
Vodafone Group . . . . . .236.5 -3.3 239.7 200.2
AstraZeneca . . . . . . . .5097.0 -47.0
BTG . . . . . . . . . . . . . . . .639.0 -1.0
Circassia Pharmac . . . . .95.2 -1.3
Dechra Pharmaceut . .1345.0 -19.0
Genus . . . . . . . . . . . . .1800.0 -20.0
GlaxoSmithKline . . . . .1689.5 -22.5
Hikma Pharmaceuti . .2312.0 -12.0
Indivior . . . . . . . . . . . . .301.0 1.9
Shire Plc . . . . . . . . . . .5065.0 -90.0
Vectura Group . . . . . . . .145.7 -1.1
4Imprint Group . . . . . .1620.0 0.0
Ascential . . . . . . . . . . . .245.0 -0.3
Bloomsbury Publis . . . .174.8 0.0
Centaur Media . . . . . . . .40.3 0.8
Creston . . . . . . . . . . . . . .93.5 0.0
Entertainment One . . .254.4 -0.6
Euromoney Institu . . .1109.0 25.0
Future . . . . . . . . . . . . . . . .8.8 0.1
Haynes Publishing . . . .110.0 0.0
Informa . . . . . . . . . . . . .707.0 -7.0
ITE Group . . . . . . . . . . . .172.8 -2.0
ITV . . . . . . . . . . . . . . . . .195.9 -3.3
Johnston Press . . . . . . . .10.5 0.1
Moneysupermarket. . . .311.0 -2.7
Pearson . . . . . . . . . . . . .888.5 -8.0
Relx plc . . . . . . . . . . . . .1451.0 -20.0
Rightmove . . . . . . . . . .4137.0 -29.0
Sky . . . . . . . . . . . . . . . .860.0 -13.0
STV Group . . . . . . . . . . .362.5 35.0
Tarsus Group . . . . . . . . .271.5 -2.0
Trinity Mirror . . . . . . . . .100.0 -2.5
UBM . . . . . . . . . . . . . . . .678.5 -2.0
600.0 156.6
910.0 221.1
615.0 346.1
1194.5 580.9
180.1 57.0
2035.2 588.0
200.0 68.6
327.6 39.5
190.0 72.7
1209.0 447.3
9715.0 3625.0
2599.5 1577.5
603.5 205.8
OIL EQUIPMENT & SERVICES
BGEO Group . . . . . . . . . . . . . . .2790.0
Millennium & Copth . . . . . . . . . .422.5
Spectris . . . . . . . . . . . . . . . . . . .1926.0
OneSavings Bank . . . . . . . . . . . .223.7
JD Sports Fashion . . . . . . . . . . .1275.0
DFS Furniture . . . . . . . . . . . . . . .251.6
Marks & Spencer Gr . . . . . . . . . .337.5
CLS Holdings . . . . . . . . . . . . . . .1355.0
Polypipe Group . . . . . . . . . . . . .280.0
Sophos Group . . . . . . . . . . . . . .240.3
Price Chg High Low
Associated Britis . . . . .2982.0 -15.0
Cranswick . . . . . . . . . .2320.0 -26.0
Dairy Crest Group . . . . .648.5 -6.5
Greencore Group . . . . .345.2 0.0
Tate & Lyle . . . . . . . . . . .732.5 -1.0
Unilever . . . . . . . . . . . .3610.5 -31.0
177.3 56.2
INDUSTRIAL TRANSPORTATION
MAIN CHANGES UK 350
FIXED LINE TELECOMS
EU SHARES
Price
Price Chg High Low
GENERAL RETAILERS
Price
Chg %chg
CAC 40. . . . . . . . . . . . . . . . . . . . . . 4460.44 -37.42 -0.83
Swiss Market Index . . . . . . . . . . . . 8215.45 -89.83 -1.08
ISEQ Overall Index. . . . . . . . . . . . . 6035.05 -10.78 -0.18
FTSEurofirst 300 . . . . . . . . . . . . . . . 1352.75 -11.48 -0.84
Price
Chg %chg
Hang Seng . . . . . . . . . . . . . . . . . . 22910.84 -21.67 -0.09
Shanghai Composite . . . . . . . . . . . 3110.04 -15.16 -0.49
Straits Times . . . . . . . . . . . . . . . . . 2858.80 -8.41 -0.29
ASX All Ordinaries . . . . . . . . . . . . . 5625.70 -8.10 -0.14
Price
Chg
High
Low
3M...................................................................179.25
ABBVIE.............................................................66.74
ALPHABET-A ...................................................801.19
ALPHABET-C....................................................777.14
ALTRIA GROUP.................................................66.26
AMAZON.COM ................................................764.04
AMERICAN EXPRESS ........................................65.30
AMGEN ............................................................172.16
APPLE.............................................................109.38
AT&T .................................................................41.96
BANK OF AMERICA.............................................15.17
BERKSHIRE HATHAWY-B.................................147.24
BOEING CO......................................................135.00
CATERPILLAR ...................................................84.29
CHEVRON........................................................102.62
CISCO SYSTEMS ..................................................31.12
CITIGROUP ......................................................46.62
COCA-COLA CO..................................................43.83
COMCAST-A .......................................................67.31
DU PONT NEMOURS&CO ..................................68.03
EXXON MOBIL ...................................................87.92
FACEBOOK-A...................................................123.30
GENERAL ELECTRIC ............................................31.19
GOLDMAN SACHS GROUP ...............................165.65
HOME DEPOT...................................................136.23
IBM.................................................................160.70
INTEL.................................................................35.21
JOHNSON & JOHNSON....................................120.33
JPMORGAN CHASE............................................65.71
MCDONALD'S ...................................................117.94
MEDTRONIC.......................................................87.27
MERCK.............................................................63.04
MICROSOFT.......................................................57.44
NIKE -B- ..........................................................56.88
ORACLE.............................................................41.32
PEPSICO .........................................................108.00
PFIZER..............................................................34.79
PHILIP MRRS INT..............................................99.47
PROCTER&GAMBLE..........................................86.58
SCHLUMBERGER................................................81.92
THE KRAFT HEINZ ............................................88.96
TRAVLR COMP..................................................116.98
TWITTER ..........................................................20.40
UNITEDHEALTH GROUP ..................................141.08
UTD TECHNOLOGIES.........................................109.16
VERIZON COMM ...............................................52.76
VISA-A..............................................................80.81
WAL-MART STORES..........................................72.89
WALT DISNEY-DISNEY......................................96.88
WELLS FARGO..................................................48.44
WILLIS TOWERS...............................................121.48
-1.31
-0.65
-4.77
-5.30
0.00
-4.45
-0.33
-2.42
-0.10
-1.06
0.15
-0.54
0.34
0.14
-0.15
-0.07
0.23
-0.41
-0.21
-0.61
0.11
-0.60
-0.05
0.10
-0.83
-1.18
0.30
-1.98
-0.01
-0.58
-0.64
-0.28
-0.68
0.11
-0.07
-0.72
-0.32
0.86
-0.44
-0.12
-0.12
-1.37
-0.46
-0.54
-0.53
-0.85
-0.10
-0.43
-0.22
0.17
-0.05
182.27
69.82
813.88
789.87
70.15
773.75
81.66
176.50
123.82
43.89
18.09
148.03
150.59
84.36
107.58
31.25
57.92
47.13
68.36
75.72
95.55
128.33
33.00
203.10
139.00
164.95
35.93
126.07
69.03
131.96
89.27
64.00
58.50
68.20
42.00
110.94
37.39
104.20
87.57
83.85
90.49
119.30
31.87
144.48
109.83
56.95
81.73
74.80
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
CITYAM.COM
FEATURE 15
PERSONAL FINANCE
Annabelle
Williams
highlights the
highest interestpaying current
accounts on the
market right now
S
AVERS have been dealt a double whammy of blows this
month. The Bank of England
cut interest rates from their
already-record low of 0.5 per
cent down to a paltry 0.25 per cent,
which is likely to have an impact on
the already poor levels of interest paid
on savings accounts. The 0.5 level was
considered an emergency measure
when it came into effect in 2009, and
this latest cut is supposed to help ward
off a Brexit induced recession, but it’s
savers that are paying the price
through low returns on their cash
piles.
Inflation has also started to creep up.
The sharp weakening of the pound
this year is raising the cost of everyday
items and the Bank of England expects
inflation to reach 2 per cent, and probably surpass it too. It makes saving
money in inflation-beating accounts
even more important.
“July’s rise in inflation to 0.6 per cent
is likely to herald further rises in the
cost of living, as the price of imports
increases following the fall in the
pound post Brexit. Clearly this is not
good news for the pound in peoples’
pockets and makes life even more difficult for those looking to save for
their financial future,” says Calum
Bennie, savings expert at Scottish
Friendly.
SANTANDER
More bad news came in the form of
the decision by Santander to halve the
interest available on its hugely
popular 123 account. Since March
2012 it had been paying out an attractive 3 per cent on balances up to
£20,000 – which meant £600 a year
interest for people holding the maximum. That attracted nearly 500,000
customers. But clearly both the high
demand for the account and the Bank
of England’s rate cut have made the
payout unsustainable.
From November the account will pay
just 1.5 per cent. It’s disappointing,
and the question for many will be
whether they should switch.
The account has a £5 a month fee,
which was raised from the previous £2
a month charge in January. Account
holders will have to balance how
much they have saved, and the likely
interest they’ll receive, against the £60
annual fee. There are savings interest
calculators available online.
Someone saving the full £20,000 in
the account will only earn £240 a year
after the annual fee is taken out.
Judging the rewards from the account
are slightly complicated, because it
pays a tiered rate of “cashback” of 1-3
per cent on household bills paid. That
too adjusts how much someone can
earn.
“Santander 123 has been a beacon,
shining out for those with a decent
chunk of cash,” says Martin Lewis,
founder of MoneySavingExpert.com.
The bank has offered a light to customers with smaller savings, though.
Accounts with up to £1,000 in deposits
will now qualify for interest payments,
whereas previously they would not.
“On the upside, those with smaller
MAKE MORE FROM
THE POUNDS IN
YOUR POCKET
deposits will actually be getting a better deal. A person with between £100
and £500 in their bank will be getting
between £5 and £7.50 more after 1
November,” says Jody Baker, head of
money at Comparethemarket.com.
£10,000-£20,000 SAVED
For people with savings of between
£10,000 and £20,000, Santander 123 is
still attractive. It is among the highest
paying online accounts with easy
access.
“The reality is, the 123 account
remains one of the most competitive
on the market. The likes of
Nationwide and TSB offer better rates,
but on a much lower amount of
£2,500 [or £2,000 at TSB]. So in the
meantime, Santander will still remain
competitive,” says Kevin Mountford,
banking
expert
at
Nationwide and
TSB offer great
rates, but on lower
savings of £2,500
MoneySuperMarket.
Judgment can be passed on
Santander this winter, when we know
which other banks have decided to cut
their
savings
interest
too.
“Unfortunately, it is likely Santander
is just at the vanguard of rate cuts. Its
main competition, the other banks
with high interest accounts, may well
cut those too,” says Lewis.
CURRENT ACCOUNTS
Confusingly, the highest interest available to savers looking for easy-access (as
opposed to locking it away for a fixed
term) is from current accounts, rather
than straight-up savings accounts.
This means the accounts come with
other terms attached, as typically a
normal savings account with unlimited access would have few conditions,
apart from maybe a monthly savings
requirement.
It’s a sign of the odd times we live in,
but also means people have to study
the small print to get their savings to
work for them.
It can be helpful to spread savings
around different accounts. TSB’s is one
of the most generous on the market
when all perks are taken into account,
and could be used alongside another
current account for maximum interest.
ANNUAL CREDIT INTEREST ON SANTANDER123 CURRENT ACCOUNT
Balance
Santander 123 current
account interest now
Santander 123 current
account interest from
1 Nov 2016
Difference
£0
£10
£40
£90
£150
£300
£600
£7.50
£15
£30
£45
£75
£150
£300
+£7.50
+£5.00
-£10.00
-£45.00
-£75.00
-£150.00
-£300.00
£500
£1,000
£2,000
£3,000
£5,000
£10,000
£20,000
Source: Moneycomms.co.uk
£3,000 TO £5,000 SAVED
Bank of Scotland is paying 5 per cent
interest on balances of between
£3,000 and £5,000 held in its Classic
Account. Unlike Santander, there’s no
monthly fee. To qualify for the high
interest rate, savers have to deposit
£1,000 in the account each month and
not go overdrawn. Two monthly direct
debits must also be set up, and the
interest works out as a maximum
£148 per year.
Tesco Bank’s current account pays 3
per cent interest on balances of up to
£3,000. That’s a maximum £89 a year.
The debit card that comes with this
account also doubles up as a Tesco
Clubcard, and the perk is holders get
extra points just for using their debit
card in the normal way. Points convert
into vouchers, which is useful for people who shop regularly at Tesco.
UP TO £2,000 SAVED
TSB is offering a massive 5 per cent
interest on up to £2,000 held in its
Classic Plus account. That translates as
up to £97 interest. It has a minimum
monthly pay-in of £500, which could
be paid via direct debit from another
account. The other perk is that for the
first £100 spent each month on a contactless card, account holders will get
an extra 5 per cent cashback, or £5.
16
OPINION
CITYAM.COM
FORUM
EDITED BY TOM WELSH
In praise of hedge funds: Short-term
activists create long-term value
A
CTIVIST hedge funds are
often seen as the epitome of
all that’s wrong with capitalism. They cut investment,
fire employees, and break
contracts to boost the short-term stock
price, and cash out before the longterm value destruction comes to light.
It’s certainly possible to find examples of this. And such stories make for
good journalism so will be reported
most prominently. Cases in which an
activist quietly created long-term
value don’t make for exciting reading,
just as “London Bridge failed to collapse today” won’t make a great headline.
The repeated tales of asset-stripping
lead many commentators to suggest
that these activists must be stopped.
Hillary Clinton advocates a sharply
higher capital gains tax on shares held
for fewer than two years. The “Loi
Florange” in France gives extra voting
rights to investors that hold stock for
more than two years, to hinder
allegedly “short-term” activists from
wrenching control.
But we can’t base policy on a couple
of high-profile anecdotes. To truly
understand the effects of activist
hedge funds, it’s necessary to look at
all the evidence – to study hundreds of
cases, in different industries, across
different time periods. This is the role
of academic research. While academics are often viewed as disconnected
from reality – and are indeed less
informed about one particular company than (say) a board member – this
“disconnect” allows them to undertake large-scale research, unbiased by
ties to one particular firm.
And a decade of research by professors Alon Brav (Duke) and Wei Jiang
(Columbia), and their coauthors,
shows that activist hedge funds create
value in both the short run and the
long run. Their seminal study found
that activism leads to firm value
increasing by 7 per cent, with no longterm
reversal.
Operating
performance, payout to investors, and
chief executive turnover all rise.
Higher payout is often viewed as
“smoking gun” evidence of short-termism. However, this payout may be of
cash that would otherwise have been
wasted on chief executives’ pet projects or salaries. Indeed, the higher payout and chief executive turnover may
explain why executives sometimes
lampoon activists – not out of concern
for long-term value, but instead to
entrench themselves and enjoy the
quiet life.
The increase in operating performance runs counter to the common
belief that hedge funds only create
value by piling on debt. Even so, it
might result from over-working
employees, compromising product
quality, or breaching long-term contracts. So a second paper investigated
its source. It finds operational performance rises because of an increase
in plant-level productivity, which in
turn stems from higher labour productivity. But, interestingly, the rise in
labour productivity is despite working
hours not rising and wages not falling.
Moreover, productivity also improves
in plants sold by hedge funds – thus,
such disposals are not asset stripping,
but reallocating assets to buyers who
can make better use of them. Brav and Jiang’s newest paper
studies innovation. This is the smoking
gun that hedge funds will fire if they
are short-termist – R&D hits the bottom line today, and its benefits don’t
arise until many years in the future.
And they do cut R&D. But despite the
reduction in innovation input, inno-
Alex
Edmans
The repeated tales of
asset stripping lead
many commentators
to suggest that these
activists must be
stopped. But we can’t
base policy on a
couple of high-profile
anecdotes
vation output actually improves, in
terms of both the number and quality
of future patents.
Investment is absolutely critical for
the twenty-first century firm. Equally
critical, however, is for the debate to
focus on investment output rather
than input. Commentators often compare the level of investment across
countries, or between private and pub-
lic firms, assuming that high investment is necessarily a good thing. But
it takes no skill to simply spend
money.
Responsible companies don’t invest
willy-nilly; they do so judiciously.
Leicester City has invested far less
money than Manchester City, but has
certainly invested better. Just as spendthrift behaviour is not clearly optimal
in sports, cutting investment and
using the money saved for dividends
and repurchases – which can be reallocated to other companies with better
growth opportunities – can sometimes be good for both firms and society, in both the short term and long
term.
How can this be, since activist funds
typically have short holding periods,
of about 20 months? Because short
holding periods don’t imply short
horizons. Even in 20 months (far from
a flash of time), hedge funds can make
improvements with long-lasting
impact, similar to a consultant or
turnaround specialist hired for a few
months. Their short holding periods
give them a sense of urgency, and the
option to exit gives them teeth that
can overcome managerial entrenchment.
The key characteristic of an investor
isn’t so much its holding period as its
stake. Only investors with large stakes
will have sufficient “skin-in-the-game”
to truly engage with a firm, and
undertake
restructurings
that
increase productivity and investment
efficiency for the benefit of the firm
and society as a whole.
£ Alex Edmans is professor of finance at
London Business School, an associate at
Oxera, and member of the Purposeful
Company Project Steering Group. Twitter:
@aedmans
Blame Jeremy Corbyn for the increasing
number of public sector strikes in Britain
T
HE TOTAL number of working days lost through labour
disputes last year was, at just
170,000, the second lowest
annual total since records
began in 1891.
What a difference a year can make.
Southern Rail commuters have
endured months of misery due to the
prolonged series of strikes called by
the RMT. Union members on Eurostar
walked out in the past week and have
threatened to do so once again over
the Bank Holiday weekend. Before it
was suspended yesterday, Virgin East
Coast staff were planning industrial
action.
We are also experiencing the longrunning dispute between the government and junior doctors, who in April
carried out their first full walkout in
the history of the NHS. They are now
threatening the “trade union dispute
of the century”, with rolling strikes
from September onwards.
Traditionally, strike activity rose as
the economy picked up. And labour
market statistics for 2016 do show that
the UK economy is very close to full
employment. Pockets of unemployment may be scattered in some of the
regions, but the latest economy-wide
figures show a rate of just 4.9 per cent,
the lowest for 11 years. There are a
record 31.7m people in employment,
and the proportion of people aged
between 16 and 64 who are in work is
also at a peace time high of 74.4 per
cent.
Despite the buoyancy of the labour
market, however, disputes remain very
rare in most sectors of the economy.
The current spate of strikes is essentially confined to the public sector, broadly defined. Private companies operate
the rail franchises, but Network Rail is
responsible for the maintenance of the
network as a whole.
The connection between the
strength of the economy and the number of strikes still holds in transport
and health. The innovative polices of
the rail operating companies mean
that passenger numbers have boomed,
doubling over the past decade. And the
demand for health services continues
Paul
Ormerod
to grow rapidly.
The unions shed crocodile tears and
claim the disputes arise out of concerns for the safety of the public. In
one sense, the strikes are nothing
more than good, old fashioned examples of the workers putting their
hands in taxpayers’ and consumers’
pockets when the opportunity arises.
But we might reasonably ask why
the same things are not happening
elsewhere in the economy. There does
in fact appear to be a more sinister
aspect to these disputes. Many of the
strike activists are supporters of
Jeremy Corbyn. The Labour leader and
his acolytes scorn the possibility of
reform through representative parlia-
mentary democracy. Building a socalled social movement is far more
important to these true believers than
is winning elections.
The Black Lives Matter campaign,
another social movement, earlier this
month closed access to Heathrow
from the M4 and disrupted transport
across the UK. Just as with the junior
doctors and the rail workers, the same
sanctimonious regret was expressed
at any inconvenience caused to the
public.
Unfortunately, Corbyn’s position as
Labour leader and his advocacy of
“social movements” gives comfort to
the growing number of strikes, sit
downs and general disruptions which
we are currently witnessing. And if he
wins the party’s leadership contest, we
can expect them to continue.
£ Paul Ormerod is an economist at
Volterra Partners, a visiting professor at
the UCL Centre for Decision Making
Uncertainty, and author of Positive
Linking: How Networks can Revolutionise
the World.
DEBATE
Q: With inflation
expected to hit 3
per cent in 2017, is
the Bank of
England right to
prioritise growth
over price stability?
Martin
Beck
YES
In light of the sharp post-referendum
drop in the value of the pound, prices of
imported goods are set to increase. As a
result, inflation will rise over the next
year. As our forecast suggests, CPI
inflation is expected to peak at around 3
per cent next year, before then dropping
back to the Bank of England’s 2 per cent
target after that. Historically, this will be
below the 3.3 per cent average seen in
the 1990s and barely a third of the rate
seen in the 1970s and 1980s. All in all, it
looks like a return to the inflationary bad
old days is not on the cards.
Quite rightly, the Bank of England’s
Monetary Policy Committee has chosen
to look through what will be a short-lived
increase in inflation and aim its policy at
supporting the economy. In a globalised
world, where both companies and
workers face intense competition, the
odds of a transitory and exchange-rate
driven increase in inflation becoming
embedded in the behaviour of those
setting prices and wages are remote.
£ Martin Beck is senior economic adviser
to the EY Item Club.
Andrew
Sentance
NO
It is a fallacy that lower interest rates and
looser monetary policy can boost
economic growth except perhaps in the
very short term. It was entirely right for
the Monetary Policy Committee to cut
interest rates in the depths of the
financial crisis. But we have now had
record-low rates for over seven years.
Monetary policy can offset short-term
shocks to economic growth – but price
stability should be the key longer-term
objective. The 2 per cent CPI inflation
target is not the Holy Grail of monetary
policy. We need price stability more
broadly, including house prices. Very low
interest rates and QE have pumped up
values in the UK housing market and for
other financial assets in the interests of
supporting economic growth. This is a
flawed policy and the MPC’s latest
monetary boost is likely to add more fuel
to asset price inflation. The Bank may
think it can boost growth with more
monetary stimulus, but it ran out of
ammunition a long time ago.
£ Andrew Sentance is senior economic
adviser to PwC and a former member of
the Bank’s Monetary Policy Committee.
CITYAM.COM
WE WANT TO HEAR YOUR VIEWS
LETTERS
TO THE EDITOR
BEST OF
TWITTER
Heathrow can’t
ever be silent
Uk house prices were fairly
flying in the run-up to the
referendum. East, London
and South East all above 10
per cent year on year.
@Rupert_Seggins
[Re: I quit government over Heathrow
expansion: This is why I changed my mind,
yesterday]
Perhaps Heathrow’s latest plans are better
than its previous ones, but nothing can get
around the fact that the airport is in the wrong
place. However quiet its planes might
become, they will never be silent. And
however efficient public transport links might
be, there will always be considerable
congestion around the airport. Heathrow
obviously has economic benefits and closing
it entirely would be detrimental. But there is
no sense in expanding it further, thereby
making the lives of West London residents
even worse. For that reason, I’m backing
Gatwick.
Name withheld
Gas no energy
panacea
[Re: Nuclear and renewables may keep the
lights on –but nothing beats Britain’s
home-grown gas, Monday]
Natural gas is an essential part of the energy
mix, but by no means the solution. The article
explores the benefits through the guise of
“onshore gas”, without once referring to
fracking. The short-term benefits overlook the
potential long-term ecological impacts. Such
short-termism is being driven by uncertainty
from the current post-Brexit state of affairs. If
only we had a department devoid of political
cycles with a long-term view, we could call it
the Department of Energy and Climate
Change, oh wait a minute…
Arash Mojabi
Fountain House,
3rd Floor, 130 Fenchurch Street,
London, EC3M 5DJ
Tel: 020 3201 8900
Email: [email protected]
Pick up in CPI inflation in
July entirely due to falling
pound boosting fuel, food
and drink prices. Still
heading for 3 per cent in ‘17.
@samueltombs
The end of UK food price
deflation? Food import
prices rising sharply –
supermarkets absorbing...
so far.
@MarcusEconomics
Whatever outcome, Jeremy
Corbyn will always be a
leader rejected by 80 per
cent of his MPs undermining
all notions that he’s a
credible alternative PM.
@MSmithsonPB
You know who needs
“extreme vetting”?
Presidential candidates.
@ianbremmer
Germany in May: “Out
means out!”. Germany now:
“Given Britain’s size,
significance, and long
membership of the EU,
there’ll be a special status”.
@DanielJHannan
Certified Distribution
from 30/05/2016 till
3/06/2016 is 97,658
› E:[email protected] COMMENT AT:cityam.com/forum
OPINION
17
:@cityam
Everyone will benefit from the
coming driverless car revolution
D
RIVERLESS cars are making
headlines, with the future of
travel revealing itself to be
grounded very much in the
present. It’s a thrilling time
to be in the motor business as trials of
new vehicles are gaining momentum.
And while it will take time for the technology to be fully rolled out on our
roads, completely autonomous (or
“brain free”) cars could be a reality as
soon as 2025.
But as recent accidents involving “driverless” vehicles show, there’s still a
way to go. And for now at least, the
relationship between car and driver
remains a traditional one.
So what does it mean for a car to be
truly driverless? Current technology
enabling adaptive cruise control and
parking assistance is only the start of
the revolution as both need the driver
to monitor the environment around
them. The next big change will come in
2018, when “hands free” driver assistance vehicles will begin to appear on
UK roads. But these vehicles will initially be restricted to “motorway assist”
driving and remote parking. The driver
must maintain concentration and
responsibility at all times.
“Hands free” will eventually give way
to “eyes free”, which is perhaps best
described as the bridge stage of the
journey. These will be semiautonomous and will assume control
and responsibility during motorway
driving. This will be passed back to the
driver when leaving the motorway.
To be truly driverless, the concept of
even needing a person in charge disappears. These “brain free” cars will start
appearing from 2025 but will take a
long time to become the new norm as
older cars will still be ruling the roads.
The government is adopting a step by
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
Sarah
Mallaby
step approach and has launched a consultation period offering the public the
chance to have a say before the Modern
Transport Bill is passed. Insurers and
trade bodies have already been
working closely with the Department
for Transport to explore insurance
solutions for this new world, and the
Automated Driving Insurance Group
has made great progress in examining
liability issues, cyber safety and roadway legality.
The implications are many but the
creation of these vehicles will be of
huge benefit to everyone. A recent
report
commissioned
by
the
Association of British Insurers found
that 94 per cent of fatal injury accidents involve human error, and connected vehicles which can “talk” to
A recent report from
the Association of
British Insurers
found that 94 per
cent of fatal
accidents involve
human error
each other and minimise the risk will
dramatically reduce these accident
rates.
Removing the potential for human
error could lead to a significant reduction in the number of serious injuries
on Britain’s roads. As a result, this
could ease strain on the NHS and welfare spending, while creating associated environmental benefits. With fewer
accidents and cars communicating
effectively, there will be less congestion
on motorways and better space allocation on other roads. The more efficient
the journey, the lower the emissions.
With sharing economy businesses
becoming increasingly common, it is
also easy to see how consumer budgets
will benefit from automated technology. Manufacturers and insurance policies will work flexibly, taking into
account actual vehicle use, and maintenance will be handled in a completely different way. There may even come
a time when you don’t need to own a
vehicle – it’ll be a case of summoning
one, enjoying the journey and then letting it depart to its next destination.
Eventually, long, boring journeys will
also be a thing of the past as time once
spent concentrating on the road could
be put to more productive purposes or
simply used for relaxing. Transport
will become less stressful and as a
result bring greater freedoms. This
technology could even help those with
mobility issues, removing the obstacles
that currently restrict the driving experience.
The opportunities are almost endless
and step by step we are moving
towards this exciting, but most importantly life-saving, tomorrow.
£ Sarah Mallaby is head of technical
claims at Allianz Insurance.
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18
LIFE&STYLE
CITYAM.COM
FOOD&DRINK
NEW
OPENINGS
Andrew Baggs
@ARBaggs
A
nyone who has been to Levi
Roots’ Caribbean Smokehouse will know that success on Dragons’ Den does
not a restaurateur make. So
it was with some trepidation that I approached Texas Joe’s, opened off the
back of an appearance on Dragons’
Den (and, more recently, a number of
London pop-ups) from jerky peddling
Texan Joe Walters.
On-screen investment partner Peter
Jones is no longer on the scene and
Walters is now in partnership with
local businessman Simon Lyon.
They’ve chosen a canny spot, an old
Chinese take away site on the route
between Bermondsey Street and London Bridge.
Texas Joe’s has gone all out in bringing the Lone Star state to London. The
front of the shop is clad with dark
clapperboard and the interior filled
with hand-painted signs. The
newsagent next door looks in dire
need of a lick of paint next to the film
set facade.
The eponymous Walters is a wonderful front man. Squeezed into a dusty
blue suit, stetson on his head, mouth
firmly stuck in a frown, like a child’s
drawing of a bloodhound. He has the
look of a man who has spent hours
looking into a burning pit, willing
everything to turn out right. Standing
arms folded outside his new restaurant, he gives the impression this
might be the most serious job in the
world.
The seriousness continues inside.
There’s real attention to detail here.
The menu is delivered in a newspaper
that features articles specially written
for Texas Joe’s by some of the world’s
foremost BBQ experts. No fluff or
hoopla, just the good honest history
of meat and fire.
Outside are trestle tables and
benches, while inside is divided into
two handfuls of tables, some in the
main room and a few more in the
next-door bar. On the night I visited
they were fully booked and people
were regularly turned away.
Yes, it is all on the edge of OTT, in
danger of falling off a cliff into a
clichéd cavern of kitsch, but it holds
on, never quite feeling forced. The
staff play a big part, a rag-tag bunch
of wonky smiles and bright eyes who
seem genuinely eager to please.
At dinner we order a number of
dishes to share. Starting with the sides
menu we hoover through brisket
topped nachos, neatly arranged on a
tray like canapés at a Texan wedding.
Bacon wrapped stuffed jalapeños
make a plate of padron peppers between layers of salt and pork into a
must-order dish; they’d be worth a
second round if they weren’t £7.
There’s more beef brisket, this time
in thick dark crusted slices that break
apart with the press of a fork. Chicken
breast is majestic in a way that a
chicken breast never is – deep and
moist and moreish. The first bite of a
mutton rib is equally good. Hot, crisp
and musky. But as the tray cools the
fat starts to flab and some went uneaten. If you order these, eat them
hot.
Texas Joe’s brings the Lone
Star to London Bridge
Everything from the pit is served with pickles and slaw
The real selling point here is tradition
and respect for the craft. This is
Texas BBQ with ‘Texas’ underlined
Mac and cheese is as gooey and yellow as you could hope but I get significant food envy watching lengths of
bubbling bone marrow being carried
to the table next door. Next time.
Everything from the pit is served
with pickles and slaw and slices of
white bread to mop up the juice. If
there’s a better use for a piece of
cheap sliced white, let me know.
They’ve got lunch sorted too: I went
back for that bone marrow and a pork
taco that’s so far removed from the
ubiquitous slop often served at pubs
that I wonder if it is from a different
beast altogether.
Drinks are dispensed from the
honky-tonk bar next door. There’s
beer – from Texas, of course, as well as
some South London breweries – and a
selection of bourbon and tequila. The
bar works in its own right too: a beatup juke box is full of country classics
Owner Joe Walters wears a
dusty blue suit and a stetson
and it has a converted-garage feel that
will make a wait for a table fairly painless, even when the weather turns.
The food at Texas Joe’s doesn’t push
the envelope in the way somewhere
like Pitt Cue does. The real selling
point here is tradition and respect for
the craft. This is Texas BBQ with
‘Texas’ underlined, and it deserves to
be taken seriously.
TEXAS JOE’S
8-9 Snowsfields, SE1 3SU
Tel: 020 3759 7355
FOOD
VALUE
ATMOSPHERE
hhhhi
hhhhi
hhhhi
£ Cost for two with booze: £60
WEDNESDAY 17 AUGUST 2016 LIFE&STYLE 19
CITYAM.COM
: @city_am
: @cityamlife
SWINGERS
8 BROWN’S BUILDINGS, EC3A
WHAT? Swingers combines two of the
City’s favourite past-times – lunch and
golf – into one saucily-titled venue. Punters
can putt for £13 per head on one of two
nine-hole courses, The Lighthouse and The
Windmill. Or pay twice and do a full course,
with a break for food in the middle.
WHERE? At the foot of The Gherkin in the
heart of the City. Based on a 1920s golf club
set in the English countryside, it doesn’t
look like much from the outside, but this
underground venue packs in 16,000sqft of
rolling hills, grassy knolls and fuzzy foliage.
WHO? A mysterious-sounding collective
called The Institute of Competitive
Socialising, which set up this permanent
venue off the back of a sell-out pop-up run
in Shoreditch in 2014.
ORDER THIS... The Clubhouse, a twostorey dining section in the centre of the
venue, serves up gourmet fast food from
three London street food vendors, Pizza
Pilgrims, Patty & Bun and Le Bab. The
latter’s fries are floundering in fromage and
come highly recommended. Wash those
down with an arm-aching tankard of
draught beer from the bar, or work your
way through the Americana-themed
cocktail list until you’re drunk enough to
order one of five brands of champagne on
offer, including vintage varieties.
BUSINESS OR PLEASURE? Friends,
colleagues, hell, even a German hen party
lined up to tackle the courses on our visit.
There’s more than one way to secure a
deal, after all – and letting your client win
at crazy golf might be one of them.
NEED TO BOOK? It gets busier towards the
end of the week, so visit swingersldn.com,
email [email protected] or call 020
3846 3222. Book a table on the Gin Terrace,
in the Clubhouse or the private President’s
Committee Room. Bigger parties can book
the entire venue.
WORKING
LUNCH
THE VERDICT... A welcome change from
the local, wood-panelled boozer, this is a
novel way to spend time with colleagues
and clients alike, in a well thought-out
space that manages to be both impressive
and pleasingly kitsch.
ONE MORE THING... Who needs tiny
pencils and flimsy scorecards when you
can download the Swingers Crazy Golf
app? Available on GooglePlay and the
iTunes store, you can upload your score to
the leaderboard and order food, while
nightly DJs soundtrack your gradual
transformation into Team GB’s Justin
Rose.
Melissa York on the
best places to eat
during office hours
in the City and
Canary Wharf
Mark Hix remembers the tomatoes from his youth
O
ne of my fondest food
memories as a kid was my
grandfather’s tomatoes. At
a certain time of year, he
grew chrysanthemums in
one greenhouse and tomatoes in
the other. I would often help him
gardening and at night we would
go to the greenhouse armed with
tweezers and a torch to remove
earwigs from his prize-winning
flowers. We would also
meticulously remove new shoots
from between the main tomato
stems so the fruits got maximum
nutrients.
His tomatoes were a simple vari-
MY FOOD
DIARY
Mark Hix
ety called moneymaker, nothing
fancy, and I remember the smell of
them when we went into the greenhouse to harvest them.
He would sell a few to his friends
or exchange them for crabs and
lobsters, or occasionally you’d see a
hare or rabbits hanging from the
porch door.
Tea time was often a simple plate
of sliced tomatoes with warm buttered bread and a splash of Sarson’s
vinegar. Food like this influenced
how I cook today, using a few simple ingredients, and I still serve our
tomato salads with Sarson’s.
If he were still alive today, I may
well have encouraged him to grow
other varieties, but now I’ll always
remember him for his moneymakers.
TOMATO AND SHALLOT SALAD
SERVES 4-6
You can use a single variety or a mixture for
this but the key is that they must have a
great flavour, as some of the fancy heritage
varieties on sale just aren't ripe.
INGREDIENTS AND METHOD
£ 300-400g tomatoes, cut into wedges,
chunks or slices (or a mixture)
£ 2-3 medium shallots, peeled, halved
and thinly sliced
£ 1 tbs or more of Sarson’s vinegar
£ 2tbs rapeseed or olive oil
£ Sea salt and freshly ground black pepper
£ Arrange the tomatoes on individual or
one large serving dish and scatter over the
shallots then season and spoon over the oil
and vinegar.
20
FEATURE
CITYAM.COM
OFFICE POLITICS
Setting the bar
high: A recipe
for success or
demotivation?
growing business, but they are not perhaps a useful end goal. “Outlandish
financial goals are usually in tension
with genuine excellence,” management
author Steve Denning told Forbes.
COPING WITH FAILURE
GET
LOST
Walter
Free
If succeeding is central to your identity,
failure won’t be a setback, says Will Railton
T
ESLA chief executive Elon
Musk outlined last month an
update to the “master plan”
he published a decade ago.
He was vague on detail, but
the car manufacturer is to develop electric cars, trucks, buses, and an app
through which customers will be able
to lease their vehicle.
Next to his other venture, Space X,
Musk’s ambitions for Tesla look conservative. But the firm’s path to profitability is unclear, and yesterday it emerged
that Musk has missed 20 targets, including financial and output goals over the
last five years. Still, the share price has
risen a whopping 760 per cent in the
same period; investors have clearly
bought into Musk’s grandiose vision. So
are apparently unreachable goals a
good way to motivate us to achieve
more, or just a prelude to disappointment?
STRETCH GOALS
The context of our failure is important.
High expectations are seen as a source
of inspiration by some, and demotivation by others.
In The Folly of Stretch Goals, Daniel
Markovitz argues that such targets can
lead to excessive risk taking and
unethical behaviour by employees who
are eager to please, and that the
inevitable failure has a demotivating
effect. Instead, he says managers would
be better off breaking up complex tasks
into smaller steps for their staff, as
suggested by psychologist Karl Weick in
“Small Wins”. Workers can then
measure their progress and feel more
satisfied in completing their work.
Head in the
clouds: Are
“stretch goals”
ambitious or
demotivating?
That said, nobody is likely to achieve a
ambitious feat without trying.
“Performance is a function of expectations, since we rarely exceed our expectations or outperform our ambition,”
Dartmouth’s Vijay Govindarajan told
the Harvard Business Review.
Of course, it is entirely possible that
we may stumble across big opportunities in the pursuit of other ones. Slack’s
founders
developed
an
office
messaging system based on a programme they were using to communicate while they developed another
product. The product – a game – failed
but Slack’s messaging system has
earned it unicorn status, with a valuation of more than $1bn.
The focus of our goals is also important. Huge profits, for example, may be
a welcome symptom of a successful and
A guidebook is
seldom the best
way to explore a
new city, and
definitely not the
best way to lose
yourself in one.
Walter acts like a
compass,
directing you to
particular
landmarks
without showing
you the roads
and streets that
lead there. It
works without
an internet
connection,
includes
interesting sites,
bars and
restaurants and
tells you
whether they are
five, 10 or 20
minutes walk
away.
Moreover, the psychological impact of
failure may not be damaging if we
think we have failed for certain reasons.
A study of students in 1999 by Melissa
Cardon and Rita McGrath found that,
provided people attribute their failure
to a lack of effort, not ability, many
would not be deterred from trying
again.
Equally, if we want something badly
enough, failing is unlikely to stop us.
Research by Joachim Brunstein and
Peter Gollwitzer in 1996 found that failure in a domain relevant to an individual’s self-definition may heighten their
motivation to make up for it by succeeding in challenges that would help them
satisfy that definition. In other words, if
Musk sees production of affordable electric vehicles as an integral part of his
identity, setbacks are unlikely to deter
him.
The emotional impact of failure in
one area of our careers may be less
acute if we have other projects on the
go. According to research by Warwick
Business School’s Deniz Ucbasaran,
entrepreneurs who own a number of
businesses simultaneously may be in a
better position to cope when one goes
under than serial or sequential entrepreneurs who only focus on one
venture at a time.
Of course, this raises the question of
whether we can really hope to achieve a
lofty ambition if it’s not our only focus.
Well, Musk is certainly trying it.
WEDNESDAY 17 AUGUST 2016 SPORT 21
CITYAM.COM
THE PUNTER
RACING TRADER
@BillEsdaile
Cristophe
Soumillon will be
on board Dariyan
in the Juddmonte
International
Bill Esdaile previews the opening
day of York’s Ebor Festival
Dariyan to strike a
blow for France in
the Juddmonte
R
ACING
returns
to
the
Knavesmire today as York plays
host to the popular Ebor Festival – and it’s the return of Postponed in the Juddmonte
International (3.40pm) that will have
fans most excited.
Roger Varian’s charge has already rattled off a hat-trick of wins this season
and was expected to make it a fourth
at Ascot last month.
However, an infection meant the son
of Dubawi was unable to defend his
King George VI and Queen Elizabeth
Stakes crown at the Berkshire track.
He was odds-on to land the prize before being scratched and will go off
favourite today, but the yard has been
struggling for form of late and he’s too
short for my liking at 11/8 with Betway.
Instead, I’m putting my trust in
French raider DARIYAN who is another
genuine Group One horse, as proved by
his Prix Ganay win at Saint-Cloud in
May.
The four-year-old was then second to
runaway winner A Shin Hikari in the
Prix d’Ispahan at Chantilly a few weeks
later.
He also has impressive form outside
France, including a second behind
Postponed at Meydan and a third to
Highland Reel and Flintshire in last
year’s Hong Kong Vase.
Alain de Royer-Dupre’s entry has to
put a poor run at Maisons-Laffitte behind him, but that was over a mile on
soft ground.
The better surface and step up to 10
furlongs will be a big help for this son
of Sharmadal.
It’s a very hot contest but he looks
the value at a general 16/1 for his inform trainer who should always be
feared when sending one across the
Channel.
Wings of Desire won over course and
distance in the Dante Stakes here back
in May and will be bidding for victory
again for trainer John Gosden.
Mutakayyef and Almodovar also
enter calculations having run crackers
last time out in the Summer Mile and
Hardwicke Stakes respectively.
However, it could be Godolphin’s
Hawkbill who gives both Postponed
and my selection most to think about
this afternoon, as he bids for a seventh
successive win.
Charlie Appleby’s entry won the
Group One Coral Eclipse at Sandown at
the beginning of July, beating The
Gurkha, but this looks a tougher race.
Local trainer Mick Easterby is no
stranger to having big-race successes,
with veteran sprinter Hoof It claiming
the Stewards’ Sprint Handicap at Glorious Goodwood just a few weeks ago.
He loves nothing more than a winner
at his local track and I’m hoping he
lands the opening Symphony Group
Stakes (1.55pm) with BOWSON FRED.
Like Hoof It, Bowson Fred ran well on
the Sussex Downs during the Goodwood festival, finishing a good third
behind Boom The Groom and Thesme.
Frankie Dettori, who celebrated his
3,000th winner last week, takes over
from Nathan Evans in the saddle and
that looks a shrewd booking.
This son of Monsieur Bond is still improving and Dettori will be able to go
either side from his draw in stall 11.
He’s a 10/1 shot with Betway and I’ll
be snapping up those odds each-way,
especially as the firm are offering
money back on the race if your selection finishes second.
POINTERS
Fred Bowson e/w
Dariyan e/w
1.55pm York
3.40pm York
O’Brien can bridge Great Voltigeur gap with Idaho
S
INCE Powerscourt’s victory in
2003, Aidan O’Brien has tried to
land this afternoon’s Betway
Great Voltigeur (3.05pm) with 19
horses.
He’s responsible for three of the
six runners in the £160,000 Group
Two contest today and I think his
persistence will be rewarded.
Bahrain Trophy winner
Housesofparliament and Gordon
Stakes runner-up The Major General
look to be O’Brien’s tactical
insertions in a race that will be set
up for Investec Derby third and Irish
Derby runner-up IDAHO.
If the son of Galileo can reproduce
that Classic form, then he should
have too much for his rivals. Take
the 10/11 with sponsors Betway.
Across The Stars looks the biggest
danger on paper, but he’s lumbered
with a 3lb penalty for his win in the
King Edward VII Stakes.
This race typically sets up a crack
at the St Leger and, having shown
plenty of stamina over 1m4f, Idaho
could be one to tackle the extra two
furlongs at Doncaster.
Betway offer 11/2 on him following
up a win today in the final British
Classic of the season.
If there’s another bet to be had on
the opening day of the Ebor Festival,
it has to be SWEET SELECTION in the
two-mile handicap (4.20pm).
Hughie Morrison’s filly is going for
a four-timer and, although she
continues to rise in the weights, I
think there’s further improvement
to come.
Sea Of Heaven chased her home at
Newbury last time out and he’s since
come out to win and finish second in
Money Back
as a Free Bet
if your horse ̰QLVKHVQG*
1.55 York: Symphony Group Stakes
4.55 York: Betway Stakes
*Refund credited in the form of a Free Bet. Minimum stake: £5. Maximum refund: £25. Applies to Single, pre-race bets only. The win part of an Each-Way bet must be greater than £2.50
WRTXDOLI\IRUUHIXQG5HDOPRQH\EHWVRQO\2QH)UHH%HWSHUFXVWRPHU+LJKHVWEHWPDWFKHG2QO\EHWVSODFHGDɓHUDUHYDOLG)XOOWHUPVDSSO\
a pair of decent races at Ascot.
I expect her to trouble the judge
again today before being prepared
for the Cesarewitch in October.
POINTERS
Idaho
Sweet Selection e/w
3.05pm Ascot
4.20pm Ascot
22
SPORT
SPORT
OLYMPIC GAMES
What to watch
in Rio: guide to
today’s action
CITYAM.COM
OUT OF THE BLOCKS Adam
Gemili followed Usain Bolt into
the 200m semi-finals in Rio
GB’S GOLDEN COUPLE
OLYMPIC GAMES
JOE HALL
@joehallwords
ONE OF the few track and field stars
yet to make his bow in Rio, Ashton
Eaton, will begin the defence of his
decathlon title in one of Wednesday’s
highlights at the Olympic Games.
The American goes in favoured
events the 100m (1:30pm) and long
jump (2:35pm) as well as shot put
(4:15pm) and high jump (9:45pm).
British track and field interest will
likely focus on 20-year-old European
champion Dina Asher-Smith in the
women’s 200m final (2:30am
Thursday). Your best hope of staying
awake until then is to follow the
women’s long jump final (1:15am)
which could include British world
silver medallist Shara Proctor.
Earlier in the day Britain will bid
for another equestrian gold in the
final show jumping round (2pm).
Decorated veteran rider Nick
Skelton is aiming to go out on a high
at his seventh and final Olympics.
Britain’s women’s (5:05pm) and
men’s (6:05pm) sailors will aim to
repeat or even better the silver
medals won four years ago in the 470
Britain’s Dina Asher-Smith starts her
Olympic 200m campaign today in Rio
dinghy medal races.
Team GB’s women’s hockey side
are one win from a medal having
reached the semi-finals where they
will play New Zealand (9pm). Britain
are the only team in the competition
to have won all their games so far.
Football fans will also get the rare
chance to see the Brazil men’s team
play at an accessible time, in their
semi-final against Honduras (5pm).
Arsenal and Chelsea fans will have
an interest in the other semi-final
(8pm), when Blues midfielder John
Obi-Mikel takes on Gunners
youngster Serge Gnabry. Both have
impressed for Nigeria and Germany
respectively.
British badminton No1 Rajiv
Ouseph meets European champion
Viktor Axelsen in the men's
badminton singles quarter-final
(2.30pm). Ouseph has only beaten
the Dane once in their five previous
meetings.
Middleweight boxer Savannah
Marshall has picked up a World
Championship bronze medal since
exiting at in the last eight in London.
Four years later, she has the chance
to go a step further in her women’s
boxing quarter-final (7.15pm).
Jason Kenny and Laura
Trott both won gold
yesterday, as did Giles
Scott, below
ROSS MCLEAN
@rossmcleanRMAC
CYCLING’S golden couple Jason
Kenny and Laura Trott both
secured their place in history last
night after hitting the top of the
podium following another medalstrewn day for Great Britain at
the Olympic Games in Rio.
Trott became the first British
woman to win four Olympic gold
medals with victory in the omnium, while her fiance Kenny followed that with a stunning
success in the keirin with a perfectly-timed finish.
A hat-trick of Rio golds saw
Bolton rider Kenny, who also won
the team and individual sprints,
draw level with Sir Chris Hoy as a
six-time Olympic champion,
equalling a British record.
“It is pretty mental [matching
Hoy],” said Kenny, who survived a
possible disqualification as his
final was re-started twice due to
infringements. “As the years have
gone by I appreciated how amazing he was then and to do the
same is amazing.”
Trott added: “The thought
of doing it again freaks me
out a bit but the idea of
winning six gold medals
is something that I
would like to take on.
For now, I’m just
going to enjoy the
moment.”
It proved a
glory-filled few
hours for Team
GB as sailor Giles
Scott secured Finn class gold,
Becky James and Katy Marchant
claimed silver and bronze respectively in the women’s track cycling sprint and Jack Laugher
won diving silver. Gymnasts
Amy Tinkler and Nile Wilson
both snared bronze, as did
boxer Joshua Buatsi. Yesterday’s haul saw Great Britain
surpass their 48-medal target
for these Games.
Scott
was
officially
crowned an Olympic champion after completing his
final event and sealed Team
GB’s fifth successive gold in
the Finn class. Scott succeeds
Sir Ben Ainslie, who claimed
the previous three titles.
“Towards the latter stages of
that final race I found myself
welling up,” said Scott. “I would
not put myself down as the emotional sort but I had a little cry.”
James won her second silver of
the Games, having finished in second place in the keirin on Sunday,
after losing the first two races in
a best-of-three final against Germany’s Kristina Vogel. Marchant
beat Elis Ligtlee of Holland to take
bronze. Laugher, meanwhile, took
second place in the men’s individual 3m springboard final, five
days after winning synchronised
gold.
Teenager Amy Tinkler claimed
bronze in the floor exercise, while
Leeds-born Nile Wilson assumed
the status of the first Briton to
win an Olympic medal in the horizontal bar. Buatsi collected
Britain’s first boxing medal in Rio
with bronze at light-heavyweight.
FOOTBALL
Liverpool stole the show but frailties remain
S
OME managers insist you
shouldn’t read anything into
results until 8-10 games into
the season, but while you
can’t draw sweeping
conclusions from the Premier
League’s first weekend, there are
signs of what could be to come – and
it’s distinctly more promising for
some than others.
Liverpool produced the most
impressive display in their 4-3 win at
Arsenal. The 19-pass move that
preceded Philippe Coutinho’s second
goal summed up what they’re about;
pace, movement, trickery and quick,
penetrative passing are part of the
club’s traditions. They have huge
talent – Coutinho is a star, Roberto
Firmino looks more mature and
Sadio Mane is so dynamic – yet they
still have defensive weaknesses that
Arsenal exposed so it’s too soon to
reassess whether they are capable of
mounting a title challenge.
Chelsea were the other team to
FOOTBALL
COMMENT
Trevor
Steven
catch my eye, and they too moved the
ball quickly to great effect in a 2-1
win over West Ham. They played with
confidence and the intensity you’d
expect from new manager Antonio
Conte, with players clearly eager to
impress – I don’t recall Diego Costa
doing anything like that much
running last season. The Hammers
didn’t look their best but that was
more down to Chelsea playing well.
Manchester United started with a
cohesive 3-1 win at Bournemouth and
the best player on the pitch by a mile
was Eric Bailly. The classy centre-back
showed great distribution and
strength and didn’t put a foot wrong.
With him, David de Gea, Paul Pogba,
Wayne Rooney and Zlatan
Ibrahimovic, that United spine is
starting to look formidable.
The best thing you can say about
Manchester City starting the Pep
Guardiola era with a 2-1 home win
over Sunderland was that they got
three points. I was at the Etihad
Stadium: five minutes in and 1-0 up,
the atmosphere was flat. That wasn’t
down to the fans but a team lacking
intensity who were deployed in a
bizarre set-up. In truth, it was
boring and it raised more
questions than answers. The
Pep effect was not in
evidence yet, though that
may be because his ideas
are different to most
coaches and may take
longer to implement.
It was hard to know
what to make of
Arsenal without so
many key players. Arsene Wenger’s
reasoning that they weren’t
physically ready was odd, since no
other manager was saying that. But
they lost their first match last season
and finished second, so I expect
things will look a little different in a
few games’ time.
Champions Leicester,
their opponents on
Saturday, were brought
back down to earth by
defeat at Hull, and they
will really be feeling the
pressure now. Should they
lose to Arsenal it could turn
into a disaster, and I worry
for Claudio Ranieri.
Trevor Steven is a former
England footballer who has
played at two World Cups and
two European Championships.
Coutinho’s second goal was
in the Reds’ best tradition
CITYAM.COM
SPORT
23
PAIN AT THE LANE Spurs
keeper Hugo Lloris ruled out
for four weeks through injury
IN BRIEF
FOOTBALL
City receive Guardiola
plaudits as Aguero
nets hat-trick in romp
CHAMPIONS LEAGUE
STEAUA BUCHAREST
MANCHESTER CITY
0
5
ROSS MCLEAN
@rossmcleanRMAC
MANCHESTER City boss Pep
Guardiola declared it mission
accomplished after his side
hammered Romanian outfit Steaua
Bucharest to all but seal their passage
to the Champions League group
stages last night.
Prolific striker Sergio Aguero
netted his eighth hat-trick for last
season’s semi-finalists, although not
before he had missed two penalties,
while playmaker David Silva and
Nolito also scored.
“We are almost in the Champions
League, that was our target from the
beginning,” said Guardiola.
“It was a great performance. We
played really good. The result is
amazing but the way we played, I am
so satisfied, and big compliments to
these fantastic players. We are there.”
City wasted a glorious chance to
take an eighth-minute lead as
Aguero’s spot-kick was repelled by
Steaua goalkeeper Florin Nita, while
Nolito’s stabbed follow-up struck the
top of the crossbar.
That setback failed to derail City as
Silva lashed home five minutes later,
yet Aguero astonishingly missed a
second penalty when he blazed high
over Nita’s goal.
He made amends shortly before
half time as he fired home first time
from Sterling’s lay-off, and Nolito
extended City’s lead seconds after
the restart having rounded Nita.
Argentine Aguero netted City’s
fourth, firing low across Steaua’s
stopper, and completed his hat-trick
by sweeping home late on.
STOKES AND WOOD IN BUT
VINCE OUT OF ODI SERIES
£ CRICKET: England have recalled
all-rounder Ben Stokes and bowler
Mark Wood for the one-day
international series against
Pakistan, which starts next week.
Stokes is back after a calf injury and
Wood has recovered from ankle
problems, while captain Eoin
Morgan and wicketkeeper-batsman
Jos Buttler also return from lay-offs.
James Vince has been dropped for
the five-match series but his
uncapped Hampshire colleague
Liam Dawson is in the 15-man party.
PALACE FAIL WITH FRESH
£30M BID FOR BENTEKE
£ FOOTBALL: Crystal Palace have
failed with their latest bid for
Liverpool forward Christian
Benteke, which is believed to be
worth up to £30m. Palace are in the
market for a striker and had a £25m
offer for the Belgium international,
who is thought keen to leave the
Reds, rejected earlier this summer.
FORMER FIFA PRESIDENT
HAVELANGE DIES AT 100
Sergio Aguero netted his eighth hat-trick for City, but also missed two penalties
£ FOOTBALL: Joao Havelange, the
former president of world governing
body Fifa and International Olympic
Committee member, has died, aged
100. The Brazilian is credited with
turning the World Cup into a
lucrative commercial event and
resigned from Fifa in 2013 amid
corruption allegations.
Money
Back
as a Free Bet
if your horse
̰QLVKHVQG*
1.55 York: Symphony Group Stakes
4.55 York: Betway Stakes
*Refund credited in the form of a Free Bet. Minimum stake: £5. Maximum refund: £25. Applies to Single, pre-race bets only. The win part of an
Each-Way bet must be greater than £2.50 to qualify for refund. Real money bets only. One Free Bet per customer. Highest bet matched. Only
EHWVSODFHGDɓHUDUHYDOLG)XOOWHUPVDSSO\

Rail commuters set for steeper fare hike after inflation jumps

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