Cityam 2015-05-21

ISSUE 2,380 THURSDAY 21 MAY 2015BANKS CLOBBERED BY$6BN FX RIGGING FINEBY MICHAEL BOWBUSINESS WITH PERSONALITYBLACK IS THE NEW REDMARKS & SPENCER STRUTS ITS STUFF WITH FIRST PROFIT RISE IN FOUR YEARScityam.comSee Page 5Yet financial sector shares rise as penalties are less severe than investors had expectedFREESIX OF the world’s biggest banks werepunished with a mega $5.7bn (£3.7bn)fine by financial watchdogs yesterdayafter foreign currency traders werefound to have rigged prices to rip offcustomers.Barclays, Royal Bank of Scotland,Swiss giant UBS and three US banks –JP Morgan Chase, Citi and Bank ofAmerica – were all penalised after along-running investigation into the$5.3 trillion a day FX market by USand UK regulators.The sanctions mark the latest day ofshame for the banking industry, followingthe multi-million pound settlementsover interest rate fixing in2013 and fines paid over FX fixing in aseparate settlement in November.However, shares in all the banksrose sharply after the settlements asinvestors took heart that many of thefines came in lower than expected.Barclays must pay $2.32bn in total,including a record £284m fine fromthe UK’s Financial Conduct Authority(FCA), making it the most fined bankalongside Citi for the FX scandal.Citi paid $1.27bn fines yesterday, ontop of $1bn paid in the November.Barclays, headed by Antony Jenkins,agreed to cough up the cash to the USFRB (Federal Reserve Board) $342m $342m $342m $274m $342m $205mDOJ (Department of Justice) $650m $925m $550m $395mFCA (Financial Conduct Authority) £284m ($441m) $358m $352m $344m $371mCFTC (Commodity Futures Trading Commission) $400m $310m $310m $290m $290mOCC (Office of the Controller of the Currency)$350m $350m $250mNY DFS (New York Dept of Financial Services) $485m *Department of Justice, the FederalReserve and the Commodity andFutures Trading Commission (CFTC).New York’s Department of FinancialServices, headed by crusading regulatorBenjamin Lawsky, also fined thebank and went further by calling onit to sack a number of FX employees.“Put simply, Barclays employeeshelped rig the foreign exchange market.They engaged in a brazen ‘heads Iwin, tails you lose’ scheme to rip offtheir clients,” said Lawsky, who is leavinghis role after four years.Jenkins, who took over the helm ofthe bank after the offences occurred,said people at the bank deeply regrettedthe misconduct. “I share the frustrationof shareholders andcolleagues that some individuals haveonce more brought our company andindustry into disrepute,” he said.Numbers in red are fines which were handed out in November 2014All of the Barclays employees namedby Lawsky are thought to have beendismissed or are due to be sacked.RBS was fined by the Department ofJustice and Federal Reserve, followingfines in 2014 from the FCA and CFTC.“The serious misconduct that lies atthe heart of today’s announcementshas no place in the bank that I ambuilding,” said boss Ross McEwan.While four of the banks – Citi,Barclays, JP Morgan and RBS –pleaded guilty to criminal charges,UBS was given immunity because itwas the first to confess misconduct tothe DoJ. But it was fined $342m bythe Federal Reserve for breaching anagreement with the DoJ over Liborfixing. Bank of America was fined$205m for unsafe and unsound practices.It was fined $250m by the Officeof the Controller of the Currency.FTSE 100 s 7,007.26 +12.16 FTSE 250 ▼ 18,135.53 -40.60 DOW ▼ 18,285.40 -26.99 NASDAQ s 5,071.74 +1.71 £/$ s 1.553 +0.002 £/€ s 1.401 +0.010 €/$ ▼ 1.109 -0.006

NEWSTHURSDAY 21 MAY 20152 To contact the newsdesk email news@cityam.comTODAY’S COMMENT: Energy subsidies, pensioners in business and will Eurozone QE work? See The Forum pages 18-19Sky loses key anchor for dramafans as Mad Men final show airsAd guru Don Draper finds a form of enlightenment in the final episode of Mad MenBY CHARLOTTE HENRYDON DRAPER will pour his lastscotch tonight, as the seventh andfinal series of Mad Men reaches itsmoody denouement.The drama, which features thetrials and tribulations of aMadison Avenue advertising firm,moved from the BBC to SkyAtlantic in 2012. The sale gave theprogramme’s producers, AMC, anice financial boost – it is thoughtSky paid around £250,000 anepisode back in 2012.The move was also proof that SkyAtlantic is part of Sky’s attempts tobroaden its appeal away from sportand movies. The channel itself wasdesigned to bring the best of USdrama to UK.Programmes such as Mad Men donot have enormous viewing figures.It was thought they halved to only47,000 when it moved from theBBC, although that does notaccount for catch-up viewers. Butthe programmes are important toSky’s business because of theirwider cultural significance.Toby Syfret, of media analystsEnders Analysis, said programminglike Mad Men “really helps to tiedown one group of customers sothey don’t leave Sky”.A Sky spokesman commented:“Mad Men is a great example of thekind of high-quality drama that SkyAtlantic is synonymous with.Exclusive to Sky and Now TVcustomers, the channel is cited bynew customers as one of the mainreasons for joining and by existingcustomers as one of the must-havechannels.”Legal troubles continue tobrew despite FX settlementBY MICHAEL BOWEUROPEAN BANKS embroiled in theFX rigging scandal saw their sharesrise yesterday after regulatory finescame in lower than unexpected,despite further legal woes loomingon the horizon in UK courts.FTSE-listed Barclays rose 3.37 percent and RBS increased 1.78 per cent,while in Zurich UBS ended the day3.23 per cent higher after the fineslevied came in below the amountforecast by management.Barclays, which was fined $1.53bn,had made provisions of $2.05bnwhile RBS made provisons of $1.1bnand fines were at $669m (£430m).However, lawyers in the UK arealready advising potential clients,including pension funds and moneymanagers, over potential civilactions against banks for manipulatingthe $5 trillion FX market, openingthe door for further censure.US legal firm Hausfield, which hasalready settled $410m of civil claimsin the US against Bank of America, JPMorgan and UBS, said it wasadvising UK claimants over theprospects of a claim. They were givenammunition yesterday with the publicationof transcripts showingtraders colluding to fix the price (seeright).“There is no doubt that anyoneWHAT THE OTHER PAPERS SAY THIS MORNINGUS airline stocks groundedFears of more routes and air fares kept airlinestocks firmly grounded yesterday. The S&P 500Airline index, which includes the SouthwestAirlines, Delta Air Lines and American Airlines,tumbled six per cent on a day when the wider USstock market touched a record. Shares ofSouthwest Airlines led the declines, tumblingeight per cent to $37.58, after analysts atBuckingham Research lowered the stock to a“neutral” recommendation from “buy”.May tells police to stop crying wolfTheresa May has told the body representing rankand file police officers to stop “crying wolf” overForeign exchange traders are the latest to bring disrepute to the financial sectorwho traded FX in or through theLondon market – and there is $5.3trillion of business here everyday –will have suffered significant loss asa result of the actions of the banks,”Hausfield managing partner inLondon Anthony Maton said.Elsewhere, Barclays and others facefurther probes into other allegationsof benchmark fixing.US state and federal regulators arestill probing the electronic foreigngovernment spending cuts, warning that shewould continue her reforms to the service andseek further savings despite their“scaremongering”. The home secretary’suncompromising message to the PoliceFederation’s conference, comes a year after shetold the same conference she was removing theFederation’s public subsidy and launched asustained attack on police ethics and culture.Hanergy falls after chair’s no-showAlmost $19bn (£12bn) was wiped off the value ofHanergy Thin Film Power yesterday when theHong Kong-listed solar equipment supplier’sshares plunged 47 per cent, on the same day asits chairman failed to turn up at its annualmeeting.exchange market while a $115m finepaid by Barclays yesterday for allegedlyfixing the ISDAfix benchmark – aglobal derivatives benchmark – is thefirst time a bank has been fined amida long-running probe into the allegedmanipulation.US authorities are understood to beinvestigating around 10 banks overallegations traders rigged preciousmetals markets, while UK authoritiesare probing commodity benchmarks.Goldman’s City grandee bows outOne of the City’s best-connected bankers hasretired as the boss of Goldman Sachs’international business after two decades leadingthe overseas expansion of the Wall Streetinvestment bank. Peter Sutherland, the chairmanof Goldman Sachs International since 1995, hasretired after 25 years.El Nino to play havoc with food pricesThe likely return of El Nino could drive up theprices of coffee, chocolate and other goods grownin its path, experts have warned. There is a 70 percent chance it will churn up the weather patternsaround the south Pacific said the Met Office.“IF YOU AINT CHEATING, YOU AINT TRYING”Documents released by the NY Department ofFinancial Services and Financial ConductAuthority revealed colourful transcripts from thechatrooms used by traders to co-ordinate FXbenchmark fixing. Here is a sample:“we trying to manipulate it a bit more in ny(New York) now...a couple buddies of mine and I”BARCLAYS TRADER ON RATE FIXING“fooooooooooookkkkk”BARCLAYS TRADER AFTERLOSING OUT“we are 3 of thetop 4 eur bookson the planet...ifwe cant help eachother withliquidity...whocan? BARCLAYSTRADER TOFELLOWTRADERS“markup is making sure you make the right decision on price...which is whatsthe worst price I can put on this where the customer decision to trade with me orgive me future business doesn’t change...if you aint cheating, you aint trying”BARCLAYS CO-HEAD OF UK FX HEDGE FUND SALESUK visual effects firm sold for £200mThe Foundry, the British software developerwhose products are used in most Hollywoodfilms, has been bought by London-based privateequity firm HgCapital. Carlyle will reveal thismorning that it has sold the UK technologycompany, whose 20,000 clients include WarnerBros, Sony Pictures and Pixar, for £200m.SNP told to start behaving like adultsSNP MPs have been urged to start behaving like“adults” in the House of Commons as seniorparty figures fear they are developing alightweight reputation.“we delivered...but i dont wannakiss from u...i just take a beer”.BARCLAYS TRADERAFTER FIXING PRICE“primed like a coiled cobra... concentratingso hard...[as if] made of wax...[haven’t] evenblinked”BARCLAYS TRADERREADY TO TRIGGERA STOP LOSSWebsites say Delta shutting them outA group of travel websites claims that Delta AirLines Inc. is cutting them and their users off fromits data, adding to industry tensions over the wayconsumers shop for flights on the Internet.ConAgra Unit to pay record fineA ConAgra Foods unit agreed to pay a record fineof $11.2m (£7.2m) and plead guilty to a federalmisdemeanor charge stemming from a 2006-07salmonella outbreak, a rare criminal case againsta major US food firm that highlights intensifiedenforcement of food safety laws.

cityam.comTHURSDAY 21 MAY 2015NEWSChancellor says Britain wants tobe in Europe, not run by Europe3BY LAUREN FEDORCHANCELLOR George Osborne toldbusiness leaders last night that theyneed to “confront some hard truthsabout Europe”.In a speech at the pro-EuropeanConfederation of British Industry’sannual dinner, Osborne said that thegovernment wants “Britain to be inEurope, not run by Europe.”“The continent is sleepwalkingtowards a future where it has priceditself out of the global economy, withits rules and regulations, financialservices legislation and red tape,” thechancellor said, adding he wanted towork with business leaders to reformBritain’s relationship with the EU.Osborne said he would work tostop “ever-closer integration” of themember states while bolstering thesingle market, promoting more tradeagreements and opposing furtherregulation from Brussels.He added that business leadersshould be wary of forthcoming newsreports about negotiations at the EU.“I’d advise everyone to take all thiscoverage with a large pinch of salt.The real negotiations will be carriedout at the highest level and inprivate,” Osborne added.•Airbus president Paul Kahnbecame the latest business figure towarn Britain against leaving the EU.The firm has 16,000 staff in Englandand Wales, although he did not go sofar as to say these were at risk.George Osborne and Labour MP Yvette Cooper attended last night’s CBI annual dinnerPM: Firms mustcrack down onillegal migrantsBY LAUREN FEDORPRIME Minister David Cameron willtake his hardest line yet on illegalimmigration this morning, when heintroduces sweeping legislation crackingdown not only on foreign workers,but on the landlords, banks andemployers that help them as well.In a speech today in Westminster,Cameron will say that the Queen’sSpeech will include an immigrationbill intended to control and reducethe number of people moving toBritain.“We will put an end to housespacked full of illegal workers; stopillegal migrants stalling deportation;give British people theskills to do the jobs Britainneeds,” Cameron will say,adding, “We are for workingpeople. For them, we willcontrol and reduce immigration.”The immigration bill isexpected to include newpowers for councils topenalise landlords housingillegal migrants, aswell as new requirementsBY JENNY FORSYTHUNION representatives arereturning for a fourth day at thebargaining table today after latenightmediation failed to avert aplanned 24-hour rail strike.Network Rail and the unionsRMT and TSSA are yet to find acompromise to stave off the actionover pay and jobs, set to run from5pm on bank holiday Monday andcreate commuter chaos as workersreturn to their jobs on Tuesday.Yesterday Virgin Trains said itfor banks to check all bank accountsagainst databases of undocumentedforeign workers. The legislation is alsoexpected to make it an offence forbusinesses and recruitment agenciesto recruit abroad without advertisingin the UK, and create a labour marketenforcement agency to address labourmarket exploitation.Perhaps most dramatically, theimmigration bill is understood toredefine “illegal working” to includepenalties for both workers and thepeople who pay them.“We’ll make illegal working acriminal offence in its own right,”the Prime Minister will say.“That means wages paid toillegal migrants will beseized as proceeds of crimeand businesses will be toldwhen their workers’ visasexpire, so if you’re involvedin illegal working –employer or employee –you’re breaking the law,”he will add.Cameron will announcesweeping new immigration rulesUnions begin fourth day of crisistalks as 24-hour rail strike loomshas cancelled its West Coast trainservices next Monday and Tuesdayand plans only a limited East Coasttimetable. It could still restoretrains if an agreement is reached.Other train operators havewarned of severe disruption andNational Express, the UK’s largestcoach operator, said it would beadding 18,000 seats to its networkto meet extra demand.Meanwhile, a legal challenge byNetwork Rail against the TSSAballot is listed for this afternoon inthe High Court.

THURSDAY 21 MAY 20154 NEWScityam.comFlash trader is denied bail afterHigh Court deems him flight riskTHE ICING ON THE CAKE FOR PATISSERIE BACKERSBY ADAM HIGNETTTHE UK trader accused ofcontributing to the 2010 US “flashcrash” lost a High Court bid tomodify his £5m bail yesterday,despite revealing his assets hadbeen frozen before bail conditionswere set.Navinder Sarao, 36, of Hounslow,has been in custody since 21 Aprilbecause he has been unable tomeet the bail conditions initiallyset at Westminster MagistratesCourt. Last week he was grantedlegal aid on the grounds he wasunable to fully finance hisdefence.James Lewis, one of Sarao’ssolicitors, told the High Court thatthe £5m his client had to find was“impossible, and thereforeunlawful.” The defence said thebail conditions were set withoutfull knowledge of Sarao’s financialsituation, as these had been frozenby US authorities on the 17 Aprilwithout his knowledge. Lewisclaimed the £50,000 provided bySarao’s parents was enough,adding it was “inconceivable” hisclient would let his family down byfailing to appear.Judge Cranston ruled Sarao stillrepresented “a clear flight risk”,arguing that the £50,000 –compared with the $40m that USauthorities claim he has – is “noassurance at all.”Cakemaker Patisserie Valerie served up a sweet treat for the City when pre-tax profitsjumped 45 per cent to £7m, on rising group revenues to £43.7m. The group opened 10new stores in the six months to 31 March bringing the total to 156. Shares of the Aim-listedfirm rose 8.9 per cent to 305p and the baking giant is due to pay its first dividend.Thomas Cookadverts pulledfrom MumsnetBY MICHAEL BOWTHOMAS Cook was dealt another blowlast night as a leading parents’ websitesaid it would no longer accept advertsfrom the under-fire travel operator.The firm is embroiled in a scandalafter it claimed a payout froma hotel in Corfu where twochildren died in 2006.“Mumsnet users –understandably – feltthat we should stoppromotional activity forThomas Cook on thesite, given the detailsthat emerged during theinquest, so we took thedecision to pull thecampaign,” said the website’s chiefexecutive Justine Roberts.Mumsnet said Thomas Cook was alsokeen for the adverts to be taken down,as they were inspiring negativecomments on the popular forum.Earlier in the day the boss of ThomasCook apologised for its response to theIN BRIEFFed minutes show more patiencen Federal Reserve officials do not want to hikeinterest rates in June, even as most felt the USeconomy will rebound from a dismal start tothe year, according to minutes from their Aprilpolicy meeting released yesterday. The centralbank debated whether some bad data signalleda temporary slump or something stronger. Mostparticipants agreed growth would climb at ahealthier pace, leading to more jobs. The USeconomy grew 0.1 per cent in the first quarter.The minutes from the April policy-settingmeeting also highlighted the quandary the Fedfaces in trying to avoid the market volatilitytied to a rate hike, while sticking to its guidanceon when a move will come.incident in which Christi and BobbyShepherd died from carbon monoxidepoisoning at the Louis Corcyra BeachHotel nine years ago.The group received £3m compensationwhile the parents of the childrenreceived £350,000. The firm has sincedonated the £1.5m compensationto Unicef while insurersreceived the other £1.5m.Peter Fankhauser admits hisfirm made a series of mistakesPeter Fankhauser, who tookover the group in 2009, yesterdaysaid he was sorry for thedeaths and expressed remorse at howthe group handled the incident.“I am deeply sorry over this tragedy,”Fankhauser told City A.M.“This whole process over the lastnine years has been a series ofmistakes and we failed to showenough compassion.”Deutsche shareholder to rebeln One of Deutsche Bank’s biggestshareholders is set to rebel against the firm’smanagement today at its shareholder meeting.Hermes EOS has vowed to vote against the socalleddischarge of the members of DeutscheBank’s management board, and has raised aseries of concerns about how the bank is run.Hermes EOS said that its customers in the UKand US were concerned about findings in therate-fixing scandal that seemed to revealmisconduct from bank staff. The investmentcompany, is pushing for a wider cultural shiftin the bank. It said the share price and the totalshareholder return since Juergen Fitschen andAnshu Jain took over “reflect strategic failure”.

cityam.comTHURSDAY 21 MAY 2015Marks & Spencer smartens upNEWS5Marc Bolland saysturnaround plan isfinally working asprofit rises, writesKasmira JeffordMARKS & Spencer chiefexecutive Marc Bolland wascautiously optimisticyesterday that the high streetstalwart had turned a corner towardsrecovery, as the retailer posted its firstprofit rise in four years.The retailer, which has been battlingto revive its clothing arm, reported a6.1 per cent rise in pre-tax profits to£661.2m in the year to 28 March.This beat analyst expectations of£642m of profits – but was still shortof the £1bn profit it made in 2008.It also raised its dividend 5.9 per centto 18p and announced a £150m sharebuyback for investors who have hadto wait patiently since the last buybackin 2007.Speaking at the London Stock Exchangeyesterday, Bolland said: “Weknew where we were going and thisis clearly a step by step approach andwe have clearly made a step forwardand clearly in the right direction.”Revenue was flat at £10.3bn with a0.6 per cent rise in like-for-like salesacross its food division offset by a 3.1per cent decline in underlying salesin general merchandise, which spansMarc Bolland withBritish model RosieHuntington-Whiteley5505004504003506.1%PROFIT UPMay 2010Bolland joinsM&S500Suede skirts (picturedright) sold in first 24hours18%DRESS ANDSKIRT SALESUPPNovember 2011M&S returns toFrance after a10-year absenceMay 2013M&S unveils worstprofit in four years.Launches “make orbreak” schemeSeptember 2013Leading ladiescampaign launcheswith celebs includingHelen MirrenFebruary 2014Launches new £150mwebsite platform, twoyears in the making£150mSHAREBUYBACK5.9%DIVIDENDHIKEJanuary 2015Warehouse woes andwarm weather hit sales0.6%FOOD LIKE-FOR-LIKE UP583.5020 MayApril 2015M&S halts slump inclothing sales andshares reach sevenyearhighMay 2010 2011 20122013 2014 May 2015clothing, footwear and homeware.However, fourth-quarter sales of generalmerchandise rose 0.7 per cent atstores open more than a year, representingthe division’s first positive performancein 15 quarters.The results are likely to come as arelief for the 56-year-old Dutchman,who has been under intense pressureto show that his overhaul of the retailer’sclothing business and its productrange is bearing fruit.When he took over as chief executivein 2010, Bolland set out ambitious targetsto add more than £2.5bn of newsales. However, less that two years laterthat was scaled back to between£1.1bn and £1.7bn and then eventhose targets were missed, as Marks &Spencer reported its first annual profitfall in three years.Bolland’s efforts to revive sales at itsstruggling clothing arm have comeagainst a backdrop of billions ofpounds of investment into revampingits website, shrinking its distributionnetwork of 100 UK warehouses and‘We have clearlymade a step forwardand clearly in the rightdirectionoverhauling its outdated IT systems.Bolland said yesterday that it couldhave increased profits three years agobut the company had decided to investover £1bn into its outdated legacy systems.“If I had kicked that in the long grassand said: ‘You know what. Think aboutthat in five years time,’ all that wewould have made would be £100m extraprofits,” he said.The upturn in profits and recent improvementin the share price hassparked some people to questionwhether Bolland might take this opportunityto leave on a high note.However, Bolland said he had noplans to leave any time soon, insistinghe want to see his plans through and“absolutely” expected to be present atthe results next year.“I have enjoyed my time at this companyand I am now enjoying the executionphase of the strategy,” he said.15% OFFBritish Summerhawesandcurtis.co.ukEXCLUSIVELYFOR CITY AM READERST&Cs: Offer valid from May 28th to June 8th 2015. This offer canbe redeemed in-store and online using code CITY15 at checkout.This offer can be used on our multi-buy offers but not inconjunction with other promotions, vouchers or discounts.We reserve the right to amend the offer at any time.

cityam.comEconomists sayrate hike willwait until 2016BY CHRIS PAPADOPOULLOSPOLICYMAKERS are widely expected tokeep interest rates at record lows until2016, as details of the last meeting ofrate-setters revealed they voted unanimouslyagainst a rate hike.The Bank of England’s nine-strongmonetary policy committee made thedecision to keep rates at 0.5 per cent atthe beginning of the month, but thevote breakdown was only revealed bythe Bank yesterday. For two voters thedecision between hiking and holdingwas described as “finely balanced”.“We wouldn’t be surprised if thosetwo, presumably IanMcCafferty and MartinWeale, start voting for arate rise before the endof the year,” said VickyRedwood from CapitalEconomic yesterday.Nonetheless,Bank of Englandchief Mark CarneyRedwood believes they will be on theirown for the rest of the year, anticipatingthe first hike to come in mid-2016.“Even though the decision‘remained finely balanced’ for twomembers, this would not change ourview that the bank rate is unlikely tosee a rise until the first three monthsof 2016 at the earliest,” said MartinBeck, senior economic advisor to theEY Item Club.“We have put back our expectationof the Bank of England lifting interestrates from 0.50 per cent to 0.75 percent from February to May 2016,” saideconomist Howard Archer from analystsIHS.•Carney said yesterday he was “verypleased” at news of Ian McCafferty’sreappointment to the Bank’s monetarypolicy committee. He offered his“sincerest thanks” to DavidMiles, who is leaving it,saying “his knowledgeand experience haveplayed no small part insupporting the recoverywe see today”.THURSDAY 21 MAY 2015Campaigns using Jourdan Dunn and Naomi Campbell were not enough to boost BurberryBurberry shares slump as luxurygroup cuts full-year forecastsBY KASMIRA JEFFORDSHARES in Burberry slumped fiveper cent yesterday after the luxurygoods giant cuts its full-year profitforecast, hit by foreign exchangemovements and a slowdown inHong Kong.The FTSE 100 company said retailand wholesale profit would be£40m lower than expected in thecurrent financial year.The warning came as Burberryreported a one per cent decline inprofit before tax for the year to 31March, after a £38m hit fromcurrency headwinds. Excluding theimpact of currency movements,adjusted profits rose by seven percent to £456m.“At this early stage of the year, weare seeing increased uncertainty insome markets,” said chief executiveChristopher Bailey. “Revenue rose by 11 per cent to£2.5bn, as strong demand forheritage trench coats andinvestment into its digital offerhelped to offset a slowdown in ,Hong Kong, which has been hit bythe crackdown on gifting andprotests last year.NEWSGreece will notpay IMF in Junewithout a dealBY CHRIS PAPADOPOULLOSA GREEK official has warned thecountry will go bankrupt on 5 June,when a €300m (£214m) payment tothe International Monetary Fund isdue, if a deal on extra bailout cash isnot wrapped up by then.“Now is the moment thatnegotiations are coming to a head.Now is the moment of truth, on 5June,” government spokespersonNikos Filis told Greek TV.“If there is no deal by then that willaddress the current funding problem,they won’t get any money.”EU Economic Affairs commissionerPierre Moscovici yesterday said thatsuch a deal was “doable”.Prime Minister Alexis Tsipras willbe in Riga, Latvia, today for an EUsummit designed to boost ties witheastern Europe. He is expected to tryand use the sidelines of the event todrum up political support for a lessstringent agreement.Greece is yet to reach a deal withtechnical teams in Brussels, despiteofficials insisting earlier this weekthat such a deal would be struckwithin days. Once technical teamsagree on the set of reforms, there willbe a meeting of Eurozone deputyfinance ministers followed by ameeting of finance ministers – aEurogroup meeting.7

THURSDAY 21 MAY 20158 NEWScityam.comRecord numberof tourists flockto the capitalLONDON’S TOP 3 ATTRACTIONS IN 20146.4mVISITORSNATIONAL PORTRAIT GALLERY6.3mVISITORSSOUTHBANK CENTRETHE BRITISH MUSEUM6.7mVISITORSBY CHRIS PAPADOPOULLOSLONDON attracted a record number oftourists from abroad in 2014, with17.4m people coming to enjoy its history,culture, food and shopping.The figure marks a 3.5 per cent climbin visitor numbers on 2013, the Officefor National Statistics said yesterday. Atotal of £11.8bn was spent in Londonby tourists last year – enough to take375m trips round the London Eye.Compared with 2013, spending was upthree per cent.“These terrific new figures confirmthat record numbers of tourists arespending record amounts of dosh inour amazing city,” said Mayor ofLondon, Boris Johnson. “Our status asthe number one destination in theworld is surely beyond any doubt, andwith incredible attractions like theRugby World Cup heading our way welook forward to welcoming manythousands more visitors to London.”The capital’s museums and galleriessaw jumps of 11.75 per cent in visitornumbers, according to London &Partners, the official promotionalcompany for London.“London’s leading visitor attractionsform the bedrock of the city’s status asone of the most culturally rich and historiccapitals in the world. Last yearLondon welcomed record numbers ofinternational tourists – with four outof five citing the city’s historic and culturalassets as the main reason theycome,” said London & Partners chiefexecutive Gordon Innes.Is London set tobecome a 24-hour City?Transport for London isconsidering plans to improvenight bus services, adding toplans to introduce 24-hour tubeservices from September. Itcould see London earn areputation as a “city that neversleeps”. The plans could helpbolster London’s smallcollection of 24-hourrestaurants, lead to more latenight showings at cinemas andallow bars and clubs to stayopen later.MILLIONS OF PEOPLELONDON’S TOURIST NUMBERSON THE CLIMB1817161514132004 20062008 2010 2012 2014WHO VISITS LONDON AND HOWMUCH THEY SPEND3,0002,2501,500750USAp SPEND (£m)GERMANYFRANCEAUSTRALIASPAINITALYVISITORS (000s)IRISH REPUBLICNETHERLANDS5,0003,7502,5001,250

cityam.comSensible saversshun the fun forpension fundsBY MICHAEL BOWHARGREAVES Lansdown yesterdaygave the first hint of how pensionershave reacted to newfound pensionfreedoms introduced last month – bybeing sensible and investing the cash.The investment company, led by bossIan Gorham, revealed record resultsfor the first four months of the year,driven by new pensions business.Gorham said early indications suggestedpensioners were using theirmoney wisely and buying investmentfunds with more yield and income.“People are being very sensible butfor us that’s not a surprise,” he toldCity A.M. “If people have been sensibleto build up a pot of money throughouttheir lives and have thatcommonsense it would be strange forthem to spend it all at once.”Former pensions minister SteveWebb previously suggested pensionerscould use their savings to buy aLamborghini.New rules were introduced by chancellorGeorge Osborne to scrap rulesforcing people to by an annuity withtheir pension savings. The changecame into force on 5 April.Hargreaves, listed on the FTSE 100,saw off the wider drop in retail fundsales this year to report record resultsfor the four months ending April.Assets under administration were torecord £55.3bn, up from £49.1bn atthe end of December.Revenue for the 10 months endingApril also rose to £241m, up from£239.3m during the same period lastyear.HARGREAVES LANSDOWNp1,2801,2601,2401,22020 May1,256.0014 May 15 May 18 May 19 May 20 MayTHURSDAY 21 MAY 2015The Co-op has been making changes since failing a central bank stress test at the end of 2014Co-op Bank says it is on track tomeet Bank of England targetsBY LAUREN FEDORThe Co-operative Bank said in a firstquartertrading statement yesterdaythat its turnaround plan is on track.The bank is undergoing changesto de-risk its balance sheet and meetrevised deleveraging targets as setby regulators after the Bank ofEngland stress tests last year.The bank completed a £1.5bnresidential mortgage securitisationearlier this month as part of theplan.“There is considerable work aheadto address legacy issues across allareas of the business,” chiefexecutive Niall Booker said.“Furthermore, the Bank remainsexposed to external macroeconomicconditions, including the timing offuture interest rate rises and marketconditions to support successfulasset disposals, but we are pleasedwith the progress management hasmade in the areas we control and inwhat remains the early stage of ourrecovery,” he added.The bank said it will continue tocut costs in the coming months byoutsourcing certain office roles andscaling back its ATM network.IN BRIEFNEWSPensions expert given peeragen Pensions expert Ros Altmann has beensworn into the House of Lords, taking on thetitle of Baroness Altmann. The Tory peer -who told reporters last week that she hadpreviously been a member of both theLabour party and the Liberal Democrats -will be steering the government’sretirement policies as pensions minister.The department for work and pensions hasnot yet confirmed who will speak onpensions in the House of Commons.Hodge will not be watchdog chairnLabour MP Margaret Hodge has said shewill not stand again to chair Parliament’sPublic Accounts Committee. The Barking MPhas chaired the powerful committee for fiveyears, and led it through variousinvestigations. These included questioningsenior figures at HSBC about allegations oftax avoidance and money laundering at ahigh profile hearing in March. The positiontraditionally goes to a longstanding MP inthe main opposition party.BT to challenge Ofcom in courtn BT has placed an appeal with theCompetition Appeals Tribunal againstbroadcast regulator Ofcom’s “marginsqueeze” test. The test is meant to ensurethat rival providers, such as TalkTalk andSky, who have to use the BT network toserve their customers, are still able to makea profit. BT believes the test will hinder itsability to challenge Sky in the pay TVmarket. The appeal is the first challenge fornew Ofcom boss Sharon White.9

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cityam.comIs Lammy’s misspelledname hint at his future?THURSDAY 21 MAY 2015THECAPITALIST cityam.com/the-capitalistMPs find there’sa lot in a nameMAKING sure the political back-andforthis properly noted inParliament’s official record –Hansard, is a difficult job.You might think though that justlisting the names of the MPs, inthe order in which that are swornin, is one of the easier tasks thatthe minuters have to do.Apparently not. A quick look inthe recording of Tuesday’s officialswearing in revealssome awkward casesof misspelled names.David Lammy hopes to be the Capital’snext Mayor, but the Capitalist isfairly certain that “London” is not hismiddle name, as was written down.While the new culture secretary,John Whittingdale, might be acontroversial figure with the BBC,“flashy”, as is recorded as hismiddle name, is not a word frequentlyassociated with him.If you were wondering, thenames should have actually readDavid “Lindon” Lammy,and John “Flasby” Whittingdale.Perhaps theHansard writers weredoing the pair a favourafter all...Credit Suisse investment banker Sebastian Grigg is notknown as one to hide his light under a bushel. So itwas with characteristic ebullience that he let it be knownhe had been ranked 42nd in the latest list of influentiallay Catholics in Britain, compiled by the religiousweekly, The Tablet. Grigg once rubbed shoulders withPrime Minister David Cameron and London Mayor BorisJohnson as a member of the exclusive Bullingdon Club.He is the eldest son of Anthony Ulick David Dundas Grigg,the third Baron Altrincham, educated at Eton and OrielCollege, Oxford, and is a former partner and a managing directorat Goldman Sachs. But it was not his position in the Catholic league that so pleasedhim (although it did) but this fact: I came in above Chelsea manager Jose Mourinho(joint-48th), he beamed to my Blues-supporting colleague. Well done Sebastian.13Got A Story? Emailthecapitalist@cityam.comJust as commuters prepare tobattle it out with the first UKwidetrain strike in 20 years, Transportfor London today launches a majorpush to boost car clubbing to 1m usersby 2025. As London’s population isforecast to grow to 10m by 2031, TfLsays rapid and concerted action acrossthe 33 London boroughs is needed toget private cars off the road. RACresearch shows the average cityownedcar is used for only 4.6 hours aweek and congestion costs the capitalapproximately £4bn a year in delays.

THURSDAY 21 MAY 201514 NEWScityam.comMore packages but less profit at UK MailBY ADAM HIGNETTSHARES in UK Mail Group slipped yesterdayafter the package delivery firm’spre-tax profits fell despite a rise in overallvolumes.While delivery numbers for bothmail and parcels rose 4.7 and 7.4 percent respectively, the firm’s operatingprofits for both sectors declined as marginswere squeezed.UK Mail particularly benefited fromthe collapse of City link, which led toa significant rise in parcel volumes inthe fourth quarter.The increase in delivery volumes ispart of an ongoing trend which has ledto strong growth in the past five years,with the volume of parcels handledand business doubling.However, the increasing volumeshave led to severe capacityconstraints, which thecompany has sought to rectifythrough increased expenditurein IT and automation.Since 2010, the firm hassought to move towards a fullyautomated system and thenumber of parcels sortedautomatically has risen from 20 to 80per cent over the last five years.The most disappointing sector for thecompany was in its pallets business,which has suffered from increasedcompetition in recent years. Ongoingproblems led to a decision in Januaryto wind down this part of the firm,which ceased to operate in Marchafter recording anannual pre-taxParcel Pete is UKMail’s mascotloss of £10.8m compared to a £0.7mprofit last year. The closure of its palletsbusiness comes as a blow to the firm,which had spent £9.4m acquiring UKpallets in 2003.Excluding exceptional items, thecompany recorded a 0.8 per cent increasein revenues to £485m, for theyear ending 31 March. However, pretaxprofits saw a decline 4.2 per centduring the period to £21m.Chief executive Guy Buswell warnedthe coming year would be challengingfor the firm, with the roll-out of thenew automation resulting in performancefor the year being more weightedto the second half than usual.UK MAIL GROUPp800600400200201120 May505.002013 2015SAP SAYS SALESFORCE VALUE TOO HIGH TO SCALENO UPFRONT COST£19.50PER MONTH 1WITH 1GB OF 4G DATA 2online | in store |callfreefromamobile687001Subjecttocreditcheckandmin.12monthscontractoniD.Allinformationisaccurateattimeofgoingtoprint.NetworksmayincreasemonthlypriceinlinewithRetailPriceIndex(RPI).2DataallowanceonlyappliestouseintheUK.Software firm SAP’s boss Bill McDermott again ruled out a bid for Salesforce.com, and saidits rival is unlikely to lure any other industry player to bid too. Salesforce, which has namingrights to the Heron Tower brushed off the SAP snub with some expectation-beating resultsFull year revenue rose 23 per cent to $1.51bn (£0.97bn) from $1.23bn. Net profit was $4.1m.Gulfsands Petroleum looking forfunding after posting $16m lossBY CAITLÍN MORRISONTROUBLED oil firm GulfsandsPetroleum needs to secure at least$20m (£13m) in extra funding torepay loans and carry on operatingin Morocco, according to analysts.The company said yesterday thatit was seeking short-term fundingfrom shareholders, after posting aloss of $16.1m in 2014, compared toa $26.8m loss in 2013.The group is currently in talksaround repaying a $10m loan toArawak Energy. And the firm is alsoexploring opportunities in Morocco,however Cantor Fitzgerald’s SamWahab said: “To capitalise on theseopportunities Gulfsands will needto secure significant additionalfunding.”He estimated the group wouldneed around $20m, whileHydrocarbon Capital’s MalcolmGraham-Wood put the figurehigher, at closer to $25m.

cityam.comSPOTIFY PUTS THE SPOTLIGHT ON VIDEO CONTENTTHURSDAY 21 MAY 2015NEWSBritvic increases profit despitechallenging trading conditions15BY NEIL MAIDMENTDRINKS maker Britvic posted an11.4 per cent rise in first-half profit,underpinned by cost savings, andstuck to its full-year guidance,despite expectations for continuedtough trading in its second half.The firm, which makes Tangoand Robinsons squash, reportedpre-tax profit of £51m in the 28weeks to 12 April, compared to£45.3m in the same period of 2014.Hindered by a price war amongUK supermarkets and deflation inthe sector, first-half revenue fell 0.7per cent to £650.3m, with volumesand average prices both down.To help boost sales Britvic hasstepped up marketing andintroduced new products andranges to its key brands such asRobinsons and is also expandingoverseas.The firm operates mainly inBritain, Ireland and France but hasstarted to expand into the US, Spainand India with its children’s FruitShoot brand. Having rolled outsingle serve Fruit Shoot packages itsaid its move into the bigger UStake-home market would come in2016 rather than 2015.Britvic said it expects challengingtrading conditions to continue inthe short-term, but remains ontrack to post a 2015 operating profitof between £164m and £173m, upfrom £158m in 2014.ReutersMusic streaming service Spotify yesterday announced that it has made its first move into videoand signed some major media partners. The firm said it has partnered with the BBC, MTV, ESPN,Comedy Central and Jimmy Kimmel Live (above), as well as some major podcasting networks.Profits up at SSEas it winds downcoal generationBY CAITLÍN MORRISONENERGY company SSE yesterday reporteda 24.1 per cent jump in pre-tax profit inthe 12 months to 31 March, and alsoannounced that its loss-making coalfiredoperations at Ferrybridge will closenext year.The group posted pre-tax profit of£735.2m, up from £592.5m, while operatingprofit stayed flat at £1.88bn. Thedividend was increased by two per centto 88.4 pence per share.According to SSE, slightly higher thanaverage temperatures in the UK duringthe 2015 financial year contributed tolower household consumption of gas.And while rainfall in Scotland was 13per cent above average during the 12months, which contributed to ahighlevel of output from hydro electricschemes, wind speeds in Scotland andNorthern Ireland were slightly lowerthan in the previous year, leading tolower electricity output from windfarms.Meanwhile, the company completed areview of its coal-fire generation assetsand concluded that it should close all ofIN BRIEFTata Steel hit by weak steel pricesn India’s Tata Steel said it expected a rebound insteel demand in its home market and modestgrowth in Europe this year, after reporting a$889m (£572m) quarterly loss inflated by a heftyimpairment on its UK business. The consolidatedfourth quarter loss from Europe’s second-largeststeelmaker compares with a net profit of $162m(£105m) a year earlier. Net sales dropped morethan a fifth, hit by weak steel prices. Thecombination of a slowdown in China and adevaluation of the Russian rouble have led to asurge in cheaper steel products on internationalmarkets over the past two quarters, pressuringsteel prices and squeezing Tata’s margins.the remaining capacity at Ferrybridge inWest Yorkshire, by the end of March nextyear.SSE said that, at almost 50 years old,the plant required “increasing levels” ofcapital expenditure to remain safe andcompetitive, and EU emissions requirementshas also increased running costs.Paul Smith, head of generation at SSE,said the decision to end coal-fired generationat Ferrybridge had not been takenlightly, but added: “While this was a difficultdecision to take, it was the rightone.”Shares in SSE were down by 0.88 percent yesterday.SSE1,6901,6701,650p20 May1,681.0014 May 15 May 18 May 19 May 20 MayBHP pays $25m fine over bribery casen BHP Billiton will pay $25m (£16m) to settlecharges that it violated a US anti-bribery law byfailing to properly monitor a programme underwhich it paid for dozens of foreign governmentofficials to attend the 2008 Olympics in Beijing.The payment resolves US Securities and ExchangeCommission charges that BHP, one of the world’slargest mining companies, violated the ForeignCorrupt Practices Act when it sponsored theattendance of officials who were “directlyinvolved with, or in a position to influence” itsbusiness and regulatory affairs. BHP neitheradmitted nor denied wrongdoing in agreeing tosettle the civil case.

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cityam.comTHURSDAY 21 MAY 2015CITYDASHBOARDLONDON REPORTBESTof the BROKERSBid talk for Vodafoneand forex bank finesprompt a FTSE rallyCITY MOVES WHO’S SWITCHING JOBS Edited by Harriet GreenLDCThe private equity investor hasappointed Simon Adcock as aportfolio director. Adcock, aqualified accountant withnearly 20 years of big fouradvisory experience, joins fromDeloitte, where he was regionalhead of its corporate advisorybusiness. He began his careerat KPMG.Duff & PhelpsThe valuation and corporate finance adviser hasSPECULATION of a takeover bidfor telecommunications giantVodafone sent its share upyesterday – and the FTSE 100along with it. Britain’s top shareindex climbed back towards earlierrecord highs also buoyed by gains inmajor bank stocks.The blue-chip FTSE 100 index endedup 0.2 per cent at 7,007.26 points,close to a record high of 7,122.74points set in April. The index is uparound seven per cent since the startof 2015.Barclays and Royal Bank ofScotland were among several majorbanks to plead guilty yesterday to tryingto manipulate foreign exchangerates. Six banks were fined a total ofnearly $6bn (£3.86bn) in a settlementthat substantially ends a global probeinto misconduct in the $5-trillion-adaymarket. Barclays and RBS’ sharesboth rose as traders expressed reliefthat the fine was now out of the wayand lower than expected.Vodafone’s rise offset the negativeimpact on the FTSE from a five percent decline at Burberry, after thehigh-end clothing retailer cut its 2016profit guidance.FTSE7,0006,9806,9606,9406,9206,9006,995.1020 May14 May 15 May 18 May 19 May 20 Mayappointed Dominic Wreford as managing director andleader of its disputes and investigations practice inEurope. Wreford has more than two decades ofaccounting experience, with over 17 specialising inforensic accounting, commercial litigation and fraud. Hehas acted as expert in several high-profile cases.AIGThe insurance company has appointed Stuart Sutherlandas head of casualty for the UK. Based in London, Stuartreports to Jacqueline McNamee, managing director, UKand Nicolas Berg, EMEA head casualty. Sutherlandjoined AIG after nine years with XL, most recently asregional casualty manager for the UK, Australia andTo appear in Best of the Brokers, email your research to notes@cityam.com506 P502498494Scandinavia. He has nearly 30 years’ experience in bothunderwriting and broking, including in the Lloydsmarket.Walker CripsThe investment and wealth management group hasappointed Christine Little as operations manager. Littlejoins with over 15 years’ experience. She was previouslyat Ashcourt Rowan, where she was head of businessquality. Prior to that, she was a analyst and consultant atPension & Benefit Services.Montfort CommunicationsDuncan Learmouth and James Olley have joined the505.0020 May14 May 15 May 18 May 19 May 20 MayCINEWORLDNumis reiterated its “add” rating on the cinema group, ahead of its AGM statement, due to bepublished next week. The broker expects Cineworld to underperform the market in 2015.905895885875P903.3020 May14 May 15 May 18 May 19 May 20 MayNATIONAL GRIDWhitman Howard reiterated its “sell” rating on the utility company ahead of its full year results, outtoday. The broker said it remains wary of the longer term story at the firm, especially in the US.To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.comNEW YORKREPORTSIGN UP TO RECEIVE THE NEW CITY MOVESMORNING UPDATE AT CITYAM.COM/CITY-MOVESstrategic and financial communications agency.Learmouth joins from GlaxoSmithKline, where heworked for 23 years in senior positions, including globalhead of communications and investor relations and as asenior vice president. Olley joins after 11 years atBrunswick, where he lead on several blue chip accounts.Axa Investment ManagersFlorence Dard has been appointed head of France at theinvestment management firm. She joins from Edmondde Rothschild Asset Management, where she held anumber of senior positions since 2010, including head ofEuropean institutional sales and sovereign wealth funds.Prior to that, she spent 16 years with the Axa family.17YOUR ONE-STOP SHOPBROKER VIEWS ANDMARKET REPORTSUS stocks fallon Fed inactionUS STOCKS ended a touchlower yesterday after WallStreet saw little in theminutes from last month’sFederal Reserve meeting to alterexpectations of when the centralbank will raise interest rates.Following the minutes’ release,the Dow and S&P 500 pushed intorecord territory before giving uptheir gains.Officials at the Fed’s Aprilpolicy meeting believed it wouldbe premature to raise interestrates in June and that a bump ininflation was being offset by aweaker labour market and softerdata, according to the minutes.The Dow Jones industrialaverage fell 26.99 points, or 0.15per cent, to end at 18,285.4. TheS&P 500 lost 1.98 points, or 0.09per cent, to 2,125.85 and theNasdaq Composite added 1.71points, or 0.03 per cent, to end at5,071.74. The Dow had closed atrecord highs in the previous twosessions.Spread Betting I CFDs I Forex*Tax laws are subject to change and depend on individual circumstances.Tax law may differ in a jurisdiction other than the UK.Open an account at spreadco.comLeveraged products are high risk,losses may exceed deposits

18THEFORUMTHURSDAY 21 MAY 2015cityam.com/forumHow energy subsidies are teaching theEU an invaluable lesson in competitionOF ALL the functionsperformed by the EU,competition policy isarguably the mostimportant – and where itcould stand to do the most good.Unfortunately, many of theCommission’s attempts at trustbustinghave been misguided. Lastmonth, for instance, its authoritiesissued formal charges against Google.And last week, we found out that itmay be significantly widening itsunnecessary and potentiallydamaging probe into the digitaleconomy.For energy markets, there is no letup from state intervention. A 2014report for the European Commissionestimated that the total cost of interventionsat national and EU level at€120bn – and that excludes transportsubsidies.But on 29 April, the Commission setits sights on a truly harmful and anticompetitiveenergy practice. The headof the EU’s competition watchdoglaunched an inquiry into public subsi-nDIEGO ZULUAGAdies for energy utilities. This will lookat governments’ use of capacity mechanisms,which aim to ensureadequate supply of electricity at peaktimes. In operation or under considerationin many EU countries already,including the UK, these can rangefrom subsidising new power plants topaying to maintain idle capacitywhen demand outstrips regular supply.And on the demand side, suchmechanisms might offer financialincentives to consumers, encouragingthem to use less energy at peak times.At first sight, the need for such stateintervention looks necessary: it isclaimed that market forces cannotbring about sufficient supply to customersat all times and in all circumstances,so governments must step in.Yet it quickly becomes apparent thatthe heavy hand of the state actuallylies at the heart of the problem.Hefty renewables subsidies (as inSpain and Italy) have encouraged thegrowth of intermittent energy sourceslike wind and solar energy. Strictemissions targets and air quality regulationshave made some (especiallycoal-fired) thermal plants unviable.And in Germany, the phasing out ofnuclear plants poses a considerablechallenge to its electricity production.In countless ways, government policyhas distorted European energy marketsand raised the cost of providingelectricity in exceptional circumstances.That’s why the need for capacitymechanisms arises. Stateintervention begets yet more stateintervention.Fortunately, EU state aid rules dolimit these measures to the purposeof emergency supply. And they mustmeet strict conditions: they cannotunduly distort energy markets, andthey must tackle the problem in themost economically efficient way. Andmechanisms that would constitute abarrier to cross-border energy trade,or undermine competition in the sector,are discouraged.These kinds of considerations arecritical, because member states mayuse capacity mechanisms to favourcertain providers at the expense ofothers, and even to shield domesticenergy producers from competition.Capacity schemes might also hindercompetition by artificially sustainingless efficient providers. And crucially,they could form a barrier to marketintegration in the energy sector, hamperingefficiency and increasing costsfor consumers.The inquiry is an opportunity totackle energy protectionism in memberstates – and remove barriers topan-EU trade that make electricitymore expensive and endanger thesecurity of supply. State aid considerationsare just one among many factorsdriving EU energy policy (environmentaltargets being another notableone), so it’s likely that members willbe given more leeway than the rulesimply. But the Commission’s impulseto question the reasoning behindstate intervention into national energymarkets should be welcomed.As Carlo Stagnaro convincinglyargues in a recent EpiCenter briefing,capacity problems are best tackled byletting prices fluctuate and makingenergy providers responsible for intermittentsupply. To the extent that supportschemes are used, they should betechnology neutral, and driven bymarket forces to ensure efficiency.Finally, efforts to boost security of supplyand reduce emissions must beaccompanied by greaterliberalisation, which is painfully lackingin many energy markets acrossthe EU.Open markets and free trade mustbe at the heart of any attempt to integrateEuropean energy markets. Thatis the kind of competition policy theEU needs.Diego Zuluaga works for the Institute ofEconomic Affairs and European think tankEpiCenter.Agree? Disagree? Got a sharp comment?The Forum wants you to join the debate.AS UK inflation turnednegative in April, some tookthe news as yet moreevidence that the spectre ofdeflation haunts the worldeconomy.Deflation is all too often seen as a darkcloud hovering over the horizon, aboutto unleash its destructive force. Butdeflation and depression are not synonymous.The Great Depression in the1930s, with simultaneous deflation(falling prices) and depression (fallingoutput), was more the exception thanthe rule. During the nineteenthcentury, deflation and GDP growthwent hand in hand – as friends, not enemies.Much of it was an era of gooddeflation: gently falling prices amid productivitygains and flourishing worldtrade. Britain was in deflation for 51Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.comyears in the nineteenth century.When it comes to deflation, what mattersis what causes it. Periods ofdeflation can be malign or benign,depending on whether they are drivenby a positive shock to aggregate supply,or a negative shock to aggregatedemand. Many goods and services displayfast-growing output with sharplyfalling prices – TVs, IT, and communications,for example. Benign deflation issimply an aggregation of greater supplyacross the whole economy.And according to economic theory,deflation is not necessarily a bad placeto be either. Under the Friedman Rule,deflation with zero interest rates are theoptimal economic policy. Moreover,prior to the Keynesian revolution –which began in the 1930s – attitudestowards deflation were very different,with simultaneous deflation and economicgrowth seen as part of thenatural economic order. A seculardecline in prices was acceptable becauseimproved productivity meant the cost ofmaking each item was lower. In otherwords, prices fall at the rate of productivitygrowth.Over the past 20 years, around 2bnworkers have been added to the globalworkforce, owing to the collapse of communismand economic reform in Indiaand China – the fall of the iron and bamboocurtains. Since then, there has beena surge in the supply of cheap labourand money. Deflationary pressures arenot surprising given these fundamentalgeopolitical shifts.None of this ignores the potential riskfrom malign deflation. Worrying deflationcomes about through postponedexpenditure, rising real interest rates,falls in asset prices, liquidity traps,deleveraging and declining net worth.Things can go wrong – but we’re notthere yet.On Tuesday, the chancellor stated thatdeflation was good news when setagainst improving wage growth – andhe was right. Deflation in the UK ismore technical and transient than systemicand enduring.Top responses will be reprinted in The Forum.The global economy is vulnerable – but we must stop panicking about deflationnGRAEME LEACHAcross the globe, the deflationaryimpulse is relatively benign at present –with the exception of the Eurozone.Two factors risk shifting the globaldeflationary threat to malign. First, thenegative effects of any eventual normalisationof monetary policy. Second, anynegative shock to asset prices. Deflationreduces the threat from normalisationby limiting upward pressure on interestrates. Unfortunately, the knock-oneffects of QE, and the associated surge inliquidity, have pushed many asset pricesto dizzy heights, leaving the world economyvulnerable to a negative asset priceshock. A market correction, rather thana crash, will help to keep deflationbenign and avoid its malign cousin.Graeme Leach is director of economics &prosperity studies at the Legatum Institute inLondon.

THURSDAY 21 MAY 201519WE WANT TO HEAR YOUR VIEWSE: theforum@cityam.com | Comment: cityam.com/forum | @cityamforumTory voters[Re: Why David Cameron’s legacy hangs ontackling four huge economic challenges, Tuesday]While I agree that the Prime Minister has a“significant opportunity to really enhanceeconomic freedom and prosperity”, the task facingthe Conservative party will demand even morethan that. It needs to seriously consider some ofthe broad trends transforming the country. Arecent Policy Network paper said an ethnicminority boom, the rise of cities and the rapidincrease in the university-educated mean we’vegot a more diverse and plural society than everbefore. So while a renewed Tory “obsession witheconomics” will most likely play an important roleLETTERS to the editorin shaping Cameron’s legacy, the party should notbe complacent or myopic over the changingcomposition of the electorate. Cameron has takensolid steps to broaden the party’s appeal, but thereis still much to do.Name withheld[Re: Wider appeal isn’t what a dying Labour shouldworry about – it’s core voters, yesterday]If Labour wants to win in 2020, it needs to come upwith a strategy which will actually get its ownsupporters out to vote. More sleepy Labouritesthan shy Tories.David SwannAs Japanese growth picks up pace, can weexpect QE in the Eurozone to be as successful?YESChristian SchulzSince early 2013, when Japan’s QE became imminent, its average quarterlyannualised GDP growth rate has risen to 1 per cent, from 0.2 per cent in2011/12. In the Eurozone, with the European Central Bank (ECB) launching QE,GDP expanded by 1.6 per cent in the first quarter – the best since 2011. A goodstart, although cheap oil played a much bigger role than QE. In Europe andJapan, aggressive central bank easing has lowered exchange rates andborrowing costs. The impact could even be greater in Europe – borrowingcosts were higher to start with and the economy more open, and thussusceptible, to increased cost competitiveness. Crucially, the Eurozone hadpeak austerity and painful structural reforms in 2012 – three years before QE.Japan is still waiting for them, and even postponed further fiscal adjustmentafter last year’s first sign of pain. Without reforms, Japan’s QE risks being aflash in the pan, while ECB QE falls on the fertile soil of reformed economies.Christian Schulz is senior economist at Berenberg.BEST OF TWITTERMPC members should get out more around thecountry. They’d find businesses increasinglyconcerned about skill shortages & wage pressures.@asentanceGlobal demand dearth costs $1.2 trillion in lost wages;$3.7 trillion in GDP.@zerohedgeBritons spent 27pc less abroad in 2014 than in 2007.@RBS_EconomicsGreek industrial production fell 2.9 per cent y/y inMarch. Domestic -6.3 per cent; foreign +1.3 per cent.@minefornothingNOAlastair McCaigUsing Japanese economics as a template for anything other than Japan is adangerous game. And assuming that Europe’s QE actions will replicate therecent improvement in Japanese GDP figures might well be stretching beliefbeyond breaking point. The start of the European Central Bank’s QEprogramme has initially helped improve sentiment, and this is arguably thefirst step towards improving the speed of the Eurozone’s recovery. That said, anumber of countries have failed to reduce their dependence to over unionisedworkforces and improve their global competitiveness, despite the relativecalm we’ve seen in the last couple of years. As such, taking the next step ofimproving economic data releases coming out of the member states mightnot materialise as swiftly as hoped. It took the Fed three bites at the cherry toget QE working, and it may be a little on the optimistic side to envisage theECB doing it in just one.Alastair McCaig is market analyst at IG.Silver entrepreneurs:Why UK pensioners aresetting up businessesAS FILMING for TheApprentice 2015 getsunderway in the City,we’ll soon be introducedto the latest hopefuls, allkeen to be Lord Sugar’s businesspartner, and bag the £250,000investment for their business idea.While the previous participantshave tended to be in their early20s to mid-30s, I can’t help butwonder if the show might be readyfor a slight format tweak bybringing in some more maturecandidates. Might some olderapprentices, who have a few years’experience under their belt, bringa new dynamic to the show andeven help change our societalattitudes of “entrepreneurialspirit” for the better?Some of our recent researchuncovered an interesting point.Thanks to the new pensionsfreedoms, quite a lot of over 55sare considering using some oftheir pension pot to start theirown business.This highlights that anentrepreneurial mindset is notonly for young whippersnappers,but also those whom you mighttraditionally think would opt foran easier, slower way of life.So it looks as though we’reseeing a revolution – at least ofsorts – when it comes toretirement spending. Thewidespread concern thatpensioners will blow their wholepension feels exaggerated. Thereality is that few prudent people,who have been investing all theirworking lives, are going tosuddenly change behaviour bybeing reckless with their nest egg.Some people, though, will seethe new pension freedoms as anopportunity to try something new.nMIKE KELLARDIn fact, our research suggests somemay draw down some of their potto invest in a new venture – agroup we are calling the “later-lifeentrepreneurs”. And why not? Ithas happened many times before.Take Harland David Sanders,otherwise known as “TheColonel”. He started the KFC chainafter he retired, and used his firstmonthly pension to set it up. Sowhile it’s not a suitable option foreveryone, there can be significantsuccesses.The average value of a pensionpot of those we asked was found tobe £550,000, and of thoseconsidering withdrawing moneyto invest in a new business, almosthalf (47 per cent) intend to usetheir 25 per cent tax-free lumpsum to fund their startup.Fostering the spirit ofentrepreneurship and innovationis key for businesses that arecommitted to listening, learningand fostering new talent –whether that’s through theprovision of a venture capital fundto help startup companies withfunding expertise and marketaccess, or detecting emergingtrends.So it looks like becoming anentrepreneur may be on the rise,and there’ll be plenty ofcandidates for Lord Sugar – youngand old.Mike Kellard is chief executive of AxaWealth.Fountain House,3rd Floor, 130 Fenchurch Street,London, EC3M 5DJTel: 020 3201 8900Fax: 020 7248 2711 Email: news@cityam.comEditorial Editor David Hellier | Executive Editor Marc SidwellNews Editor Julian Harris | Business Features Editor Tom WelshLifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres | Creative Director David RileyCommercial Sales Director Jeremy Slattery | Head of Distribution Nick OwenDistribution helplineIf you have any comments about thedistribution of City A.M.please ring 0203 201 8955, or emaildistribution@cityam.comCertified Distributionfrom 30/03/15 to 26/04/15 is 108,694Printed by Trinity Mirror Printing, St Albans Road, Watford Herts, WD24 7RGOur terms and conditions for external contributors can be viewed at cityam.com/terms-conditions

MAY 2015 CYBERSECURITYINFO.CO.UKAN INDEPENDENT SUPPLEMENT BY MEDIAPLANETWATCH Fintech Financeinterview Frank AbignaleINSIDE The threat ofcybercrime on financial services P5ONLINE Expert panel: Theexperts provide their adviceCyber SecurityPHOTO: NEYDTSTOCK / SHUTTERSTOCK.COMAre you prepared?How to avoid becomingthe victim of cyber crimeMove beyondbusiness protectionwww.kpmg.com/uk/cyber

4 CYBERSECURITYINFO.CO.UKAN INDEPENDENT SUPPLEMENT BY MEDIAPLANETNEWSCyber security when everything isconnected: We ask the experts whatthe future holds for enterprisecyber securityThe complexity of existingsoftware means that updates areoften adopted sluggishly. Whatcan be practically done toremedy this?The first step is to have a clear understandingof your software ecosystemwhich enables you to focus onspecific updates. The adoption of enterpriserather than solution architectureroadmaps will formalise within an organisationan understanding of whatsoftware exists and what business processesit supports. Understanding thisenterprise architecture and solution roadmapwill ease the adoption of a riskbased approach which can significantlyspeed up the process by reducing theneed to implement unnecessary updatesand the associated effort.With this approach updates can berisk assessed by the organisation itselfusing industry ratings while taking intoaccount the other defences that arein place. Updates can then be appropriatelyprioritised according to the riskto the organisation and implementedin suitable time.Business strategyIn the longer term an upgrade cycleshould be established which targets upgradingsystems prior to their end-of-life. An enterprise architecture approachallows for appropriate budgetaryplanning and upgrades to be put inplace ahead of time. This avoids runningexposed systems or paying for expensiveextended support whilst rushinga complex upgrade as was evidentwhen organisations rushed to changefrom Windows XP in April 2014.Julie EvansExecutive director cybersecurity & resilience, EYThe internet of things has a widerange of applications across aseries of different industries, butis the security infrastructure ofmajor organisations sufficient tojustify its widespread adoption?I believe that the widespread adoptionof the internet of things is inevitableas connectivity becomes ubiquitousand therefore I would turn the questionaround - is the security infrastructureof your organisation ready for thewidespread adoption of the internet ofthings? There are many opportunitiesfor the public as well as private sector,new innovations are being introduceddaily but along with these, threats arebeing created which will challenge yourorganisation. Information sharing andease of accessibility particularly to operationaltechnology via the the internet ofthings makes businesses vulnerable totargeted cyber-attacks, however the potentialbenefits are high.If organisations fully understandtheir existing eco-system and deployappropriate controls, the risks can beminimised. The potential risks and impactof system compromise and dataleaks must be identified and assessedfor each internet of things opportunityfor the organisation and its partners.The “defence-in-depth” approachshould be implemented as for any endpoint attached to your network. Exploittolerant networks, systems andrapid detection and response are centralto the successful and secure adoptionof the internet of things, but rely oninvestment being made to examine the“Recently thereappears tobe a growingappetite forusing a singleconsolidatedprovider thatcan offer all thecyber securityservices anorganisationmay require”Read more atcybersecurityinfo.co.uksecurity as well as the enabling capabilitiesof internet of things devices.Do you see enterpriseapproaches to security becomingmore individual and diverse, orconsolidated amongst a series ofglobal providers?Historically organisations havebeen using multiple providersleading to unique security approachesand given the unique nature of the infrastructureof large organisations. Recently,there appears to be a growing appetitefor using a single consolidated providerthat can offer all the cyber securityservices an organisation may require. However,whether an organisation usesmultiple providers or a consolidated provider,it is vital that the services procuredmatch the risk profile of the individualorganisation. The organisation must alsorisk assess the providers they use as theprovider represents another attack vectorfor an attacker and could negate the valuethey add. The differing attitudes to supplierconsolidation can often match corporaterisk appetites, as risk-averse organisationswill seek to spread their riskacross multiple suppliers to lessen theimpact of a critical failure whilst risk tolerantorganisations may consider the costsavings often achieved.

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET MEDIAPLANET 5How is cybercrime and frauda threat to banking andfinancial services?By Ali Paterson, Fintech FinanceAs part of a recently releasedvideo for Fintech Finance, I hadthe pleasure of speaking withFrank Abagnale JR,famed for Leonardo DiCaprio’sportrayal of him in ‘Catch me ifyou Can’.However one of the most interestingthings about Frank is not his past endeavorsbut his current work, contributingto the future of preventing cybercrimeand fraud. “The two biggestthings right now are, firstly a lot of accounttakeover where a CFO sends anemail to wire ‘X’ amount of money toa certain client or customer and someonedoes that exact email over andover again. Secondly, and this is veryscary, the amount of breaches; we’rehaving almost one everyday – not justbanks, any company that keeps dataso doctors, law firms, anyone thathas data with information that peoplewant. They’re deadly in the factthat even if you don’t lose any money,the reputation and the fact informationhas been stolen about yourclients is devastating to ones stock.What’s scary is a lot of the time theydon’t tell their customers to changetheir passwords even though a breachhas happened.”Frank’s warnings are reinforcedwhen later I spoke with Amit Shah,head of multi-channel analytics atNICE systems. “It’s all about educationfor the public” states Amit, “banksneed to make customer aware of fraudthreats. It’s about awareness, notjust making sure relevant solutionsFrank Abagnale JR (on left)Subject of the movie ’Catch me if you can’PHOTO: FINTECH FINANCEare in place, but to actually protectcustomers and make them aware ofwhat’s happening.”In an era of constant financial regulation,there is very little when it comesto security regulation; “There areno compliance stipulations at an industrylevel” says James Cronk fromCisco, “unless a bank is recognised as acritical infrastructure, there is nothingthat is actually regulated for them, soit’s best practice, guidance and howthey view things themselves.”Informing the industry on bestpractices is one of Frank’s passions.He recently delivered a seminar to alarge UK bank emphasising the importanceof educating its staff on security.He purposely planted a numberof USB drives marked ‘Confidential’ inthe car park and nearby vicinity, to findan hour later, almost all of the USB driveshad been connected to the banksnetwork. The implications being thatany form of virus,’ Trojans or smartwearcould have been on those USB’sposing any number of catastrophicthreats to the bank’s systems by it’sown employees.So what can be done about it? Frankfocuses on data analysis; working withthe FBI, developing systems that notonly monitor the pin number you enterat an ATM, but the speed and pressurethat it is entered; which combinedwith your phone GPS location andyour past ATM history, have the potentialto detect when something is awry.NICE focus on the progression oftechnology. It becomes increasinglyapparent that passwords alone havebecome somewhat archaic and insufficientin protecting users. They proposea future where voice and palmbiometrics become the norm, “takingaway the burden of being asked millionsof questions ’ and we, as the generalpublic would be safer for it. Thesemeasures are organic; as advancedas they are, they will never be ‘theanswer’, as cybercrime continues toevolve so must the security measuresremain dynamic in order to stay onestep ahead.In conclusion to these interviews itseems that the most progressive thinga bank can do right now is admit thatthere is a problem. Frank acknowledgesthat “these things are becomingmore and more common and theydon’t get made public because banksdon’t want to admit they lost the money.”Whilst technology continues toadvance in a cybercrime vs. cyber securitybattle, education of banks andtheir customers is key.Gareth NiblettChairs the Information securityspecialist group of BCS, The Chartered Institute for IT;provides security, privacy and compliance advice throughBlackarts Limited; and tweets as @garethniblettSecurity AnalyticsThe growth in big data solutions is allowing the emergenceof big analytics. This involves taking the data collectedand exploiting it to get useful answers. One keyarea benefiting from this is security analytics. Historically,security tools were limited to performing transactional queries,looking for simple pattern matches, to identify possibleattacks. Now we can run more complex, wider-ranging queriesto identify trends and patterns we might not otherwisehave detected.We can now pour in high volumes of various data formats atvelocity, without the stumbling blocks of a data warehouseproject, around export, transform and load. Data scientistscan now dive into a data lake, where there is flexibility in thedatabase and data, to pull out previously impossible (or a leastchallenging) results. They can form a hypothesis and test itagainst a large dataset, rather than trying to target and gatherspecific data to answer a known problem.New rules can be developed, to allow for the automation ofsecurity analytics, helping with areas of security operations,including protective monitoring, privileged user monitoring,web fraud detection / transaction monitoring, threat intelligenceand the wider situational awareness piece. Beyond relyingon smart data manipulators, machine learning willemerge to help crunch through ever-growing data, to help informhuman operators, or even automate responses.Wherever the coming years take us, the world of securityanalytics is going to progress at pace and bring in a new generationof data analysts, tools and data.RTigerscheme is a commercial certification schemefor technical security specialists, backed byUniversity standards and covering a wide rangeof expertise.Contact us for more information:Call: 01443 654689Email: info@tigerscheme.orgVisit: www.tigerscheme.orgCommercial Services LtdCompany Number: 2683025For more information visit www.tigerscheme.orgProviding excellence in penetration testing©2014 USW Commercial Services Ltd. This information may not be reproduced without permission

6 CYBERSECURITYINFO.CO.UKAN INDEPENDENT SUPPLEMENT BY MEDIAPLANETINSPIRATIONTacklingthe cybersecurityskills gapLieutenant GeneralSir Edmund Burton KBEChairman of the Information AssuranceAdvisory Council (IAAC)PHOTO: THINKSTOCKHands on learning. Awareness training is becoming essential for organisationsCompanies are falling shorton awareness trainingClicking on a web link in an email is a common and often harmlesstask that we all do every day both at home and work.Yet, as we have been told, andhave seen, it can actuallybe very dangerous and canlead to massive problemsfor individuals and companies.Cybersecurity professionals callthese sorts of attacks, for that is whatthey are, phishing attacks. These attacksrefer to a multitude of clever scams thataim to lure people into launching malwareor offering information that an attackercan use to compromise systems,steal data, or mimic identities. They canrange from fraudulent phone calls frompeople pretending to be from your bank,utility, or helpful service desk, to emailsthat invite you to hold money for peopletrapped in warzones or confirm yourbank details. And they can be very clever.People who have long understoodthe concept of a phishing attack are atrisk of being duped as these attacks becomemore targeted, even personalisedwithin email invitations, in texts and onsocial media sites.These cyber security scams have becomeheadline news and many companiesrecognise the need to invest in programmesto help their employees be moreaware of the risks. It comes as a worryingsurprise therefore when phishingscams top our list of tactics that securityprofessionals are facing today.Our 2015 Global Information SecurityWorkforce Study conducted by industryanalysts Frost & Sullivan surveyed nearly14,000 information security professionalsaround the world to reveal, predictably,that the threat techniques employedby attackers and hackers todayare diverse. Phishing attacks featuredAdrian Davis, CISSPManaging Director EMEA, (ISC)2prominently as a top concern identifiedby 54 per cent of respondents, wayahead of other concerns such as networkmalware (36 per cent). Accordingto the study report “the realism and targetedapproach of today’s phishing campaignsappear to rival the informationsecurity professional’s efforts to elevateemployees’ ability to recognise, report,and leave untouched suspected phishingmessages.” This is worrying givenhow just one mistake can lead to a virulentpropagation of malware across theorganisation’s network and systems.A rising threatData Breach Research from Verizon confirmsa rising trend, with phishing beingin the top 20 varieties of threat actions ineach of the past five years, rising to tenthplace in 2013 and then third last year. Therise of such threat actions is also drivenby the sophistication of attacks, with theinformation gained in phishing scamsoften used to compromise systems utilisingother techniques, in what are known“These cybersecurityscams havebecomeheadlinenews andmanycompaniesrecognisethe needto invest inprogrammesto help theiremployeesbe moreaware of therisks”Learn more atcybersecurityinfo.co.ukas Advanced Persistent Threats (APTs).What are companies doing to copewith this risk? Investments are beingmade in tools and technology. However,creeping levels of complacency aroundawareness training may well be a contributingfactor in making phishingattacks effective. Our survey, whichhas been conducted for over ten years,shows a declining trend in respondentsindicating demand for end-user educationand training over the past threesurveys (2011 - 39 per cent, 2013 – 38 percent, and 2015 – 32 per cent). Further,there is notable downward movementin the levels of concern associated withmobile devices and internal employees.It’s not that the concern isn’t there, butother concerns are rising up the prioritylist.With regard to awareness, I worrythat companies and organisations maybelieve that they are doing enough, orworse, believe they have already takencare of the need with online training resourcesor the programme deliveredlast year. The hackers’ success shouldpuncture this complacency. The realityis that delivering awareness trainingisn’t enough. Appropriate security instincts,which starts with a recognitionof accountability, must be embeddedacross the organisation. Common awarenesstechniques only go so far. Thereis considerable work ahead for organisationswho must assure an understandingof how this can be accomplished intheir organisation; assuring their effortsare highly contextual and relevantto their risks. The first step will be recognisingthe priority.“The Government has avision for a vibrant, resilientand secure cyberspace,contributing to economicprosperity, nationalsecurity and a strongsociety. The vision can onlybecome a reality if wehave a strong cybersecurity skills base in theUK, both within Governmentand in the private sector.”[Minister forUniversities and Science- March 2014]This vision calls for urgent actionby executive boards acrosspublic and private enterprises,in partnership with schools, collegesand universities. The initiativepresents national and internationalbusiness opportunitiesfor enterprises large andsmall. Previous national initiativeshave failed because of a failureof executive boards to engageand to provide the necessaryleadership and resources.The national need can be met byfocussing national efforts aroundthe Government Cyber SecuritySkills initiative. Such a programmealready provides a clear statementof the objective that has instigateda range of concurrent activities.These have included therecent changes in primary and secondaryschools’ curricula and theestablishment of cyber securitycentres of excellence in researchand education.While the UK addresses the mediumand long term need for skillsand education, there are majoropportunities for the providersof managed security services tomeet the current, urgent and importantneeds of enterprises. Thiswill achieve the cost effective managementof persistent threats tobusinesses and should result inthe development of a discerningand intelligent customer community.Thesuccess of this historicopportunity will depend on the effectivenessof leadership, by example,throughout public, privateand third sector enterprises.Learn more oncybersecurityinfo.co.uk

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET MEDIAPLANET 7COMMERCIAL FEATUREMind the gap - thecyber security conundrumImagine that you’ve just investedin a brilliant newsecurity tool – there it sits,full of promise – but unlessyour staff know whatit should be protecting and how touse it, it’s little more than a giantpaper-weight. That’s how manycompanies are traditionally tacklingthe cyber security threat – byusing technology to fix a problem.When combating the ever growingcyber threat, it’s commonlyaccepted there is a requirement forpeople, process and technology, butall too frequently companies putmost emphasis on the latter. Whilstthis is proving a successful way toincrease budgets as leadership caneasily conceptualise the need fora solution they can touch and feel,the skills gap that subsequently occurstends to be overlooked.In KPMG Cyber Academy’s survey1 of 300 senior IT and HR professionalsin the UK 74 per cent admittedtheir new security challengesrequire skills they didn’t currentlyhave, whilst 64 per cent believedthe cyber skills needed are significantlydifferent to those used intraditional approaches. These figuresdo beg the question as to whythere is now a skills gap when thefield of information security hasbeen around for many years. Hasthe landscape changed that muchor is our dependency on technologyforcing a reliance on specificallyskilled professionals?Whilst the debate to find theanswer will, no doubt, continue forsome time, the problem remainsunresolved. So how can we beginto fill the inevitable skills gap? Threecommon areas of considerationare hiring, upskilling and outsourcing,but, as is so often the case, theanswer depends on the appetite ofthe company in question.Matt WhiteHead, KPMG access manager,matt.white@kpmg.co.ukTwitter: @cybermattwhiteSome have turned to hiring exhackersto bridge the gap and whilsta seemingly simple solution, this hasits own inherent risks with the simileof ‘poacher turned gamekeeper’springing to mind. Further complicationsarise with 57 per cent of thosesurveyed saying it had becomemore difficult to retain specialised ITstaff in recent times. So is there a betterchoice?To the cynical, upskilling is oftenseen as simply providing moretraining for IT staff so that,amongst other things, they can increasethe number of letters aftertheir name. However, if taken aspart of a structured firm wide cyberawareness initiative involving everyonefrom the C-suite to graduates,the results can be profound.Last but not least is outsourcing,an option that for years has beenimmersed in a culture of cost cuttingand efficiency benefits. However,when faced with a lack oftechnical security skillset the applicationof managed services canprovide significant returns. For example,an identity and access managementprogramme is a potentiallylabour intensive and specialistfield, but by removing the need forcontinued development or recruitmentof information security personnel,a trusted outsourced providercan deliver a level of comfortand assurance.Further benefit can be takenfrom outsourcing as it potentiallyreduces the likelihood of someoneexploiting their access rights,something 60 per cent of UK CIOssurveyed in KPMG’s ‘Trust Paradox’2 believe will come from withintheir organisation.1 KPMG in the UK’s Cyber Academy’s ‘Cyber SkillsGap Survey’ October 2014 http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/NewsReleases/Pages/Hire-a-hacker-to-solve-cyberskills-crisis-say-UK-companies.aspx2 ‘The Trust Paradox: Access Management in an insecureage’ February 2015, CIO UK in association withKPMG in the UK and RSA. http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PDF/topics/the-trust-paradox.pdfCOMMERCIAL FEATUREThe Human Factor - Lessons learnedfrom staff training and policymanagement projectsAccording to the findingsin PWC’s “GlobalState of InformationSecurity Survey 2015,”the annual average financialloss attributed to cyber securityincidents was estimated at $2.5million, a jump of 34 per cent over2013. No one doubts that the digitalsecurity posture of an organisationis now a board level issue, and that’sa big change from five years ago. However,executive anxieties need tobe matched with a long-term structuredstrategy that everyone in thecompany ecosystem is willing to investin so that the highest standardsof information security are maintained.Inevitably, this will require achange in company culture as moststaff members view this issue as belongingto the IT department. Theyoften forget that the consumptionof IT Services is often the point ofmaximum vulnerability for thecompany. It is here that the usercan compromise the security of thecompany by becoming a victim tophishing tactics or acting in an inappropriateor negligent manner,regrettable situations that exposethe organisation to cyber risk.So what are the lessons wecan learn from implementingan appropriate strategy tochanging human behaviorin this area?Well the first is to recognise thatchanging culture in informationsecurity practices is no differentthan any other change managementprocess within a company.It is as difficult as any other changemanagement process requiringsignificant effort and resources tomake an impact.Another lesson is that qualitymatters. Too often staff securitytraining is a ticking the box exercise,with very little energy beingexpended on planning or on con-Robert O’BrienCEO, MetaCompliancewww.metacompliance.comtent. The latter is one of the most importantconsiderations in determiningthe success of a culture changeinitiative. Take eLearning contentfor example. The industry is awashwith boring, bland, and often dumbeddown IT Security training courses.It is no wonder that there are casesof low staff participation that necessitatesignificant managementintervention. ELearning coursesshould reflect the digital threat thatwe all need to combat.Another key lesson is ensuringthe correct targeting of high-riskgroups. Rather than “blanket bombing”all staff with general cybersecurity communications and policies,organisations should identifyhigh-risk staff groupings andprovide tailored messaging andsurveying. Examples of these staffgroups would be privileged users,such as administrators and informationasset owners. Clearly, thecommunications sent to these highlevel positions would be more detailedthan what would go to theoverall user population. In manycases companies are struggling toget messaging out to everyone. So ashift in priorities is required.Be prepared for the long haul. Thechanging of IT Security culture is amulti-year project. It’s not possibleto deliver all the policies and educationthat are required in a shortperiod, as the user base will becomefatigued. The best approach isto build up your communicationsover time. Obtaining outside expertiseto assist in the crafting of a fitfor-purposecommunications initiativeis one way of jump startinga moribund security staff trainingprogramme.So let’s accept that email,Share Point and corporate intranetsare not suitable for obtaining activestaff participation in proper staffawareness activities. They requiresignificant management interventionto ensure that staff membersundertake their commitments tomandatory policies and eLearning.A more appropriate approachwould be to adopt best in breed automationthat actively engages theuser and provides the necessary reportingneeded for certification andregulatory review.

40,000 BUYERS AND BUSINESS PARTNERS @IFSEC #IFSEC2015Access to leading global technology,solutions and knowledge toenable security excellence16-18 June 2015, ExCeL LondonPhoto courtesy of: Crossrail3 Hear from industry leaders on how we are securing our cities at theSafe Cities Theatre3 Meet international thought leaders at the Euralarm conference3 Pre-book meetings with your preferred suppliers through theGlobal Meetings Programme3 Get all your security solutions, education and training in one placeREGISTER FOR YOUR 2015 BADGE TODAYat www.ifsec.co.uk/cityAMThe global stagefor securityinnovation andexpertise atExCeL London,16-18 June 2015Supported byOrganised bySSAIB

Gold ............................................................1210.50 -3.80Silver...............................................................17.07 -0.33Brent Crude...................................................64.93 0.04Krugerrand................................................1209.20 -3.00Palladium ....................................................781.00 -3.00Platinum .....................................................1153.00 -2.00Tin Cash Official ........................................15937.50 140.00Lead Cash Official .......................................1918.50 -17.25Zinc Cash Official .......................................2202.75 -51.75Copper Cash Official ..................................6207.50 -62.25Aluminium Cash Official.............................1748.75 -1.00Nickel Cash Official...................................12825.00 -560.00Aluminium Alloy Cash Official...................1730.00 -15.00Cocoa Futures.............................................3125.00 -20.00Coffee 'C' Futures .........................................136.08 -3.45Feed Wheat Futures.....................................112.00 1.95Soybeans Futures Continuation Contract...939.20 -7.00AIR LIQUIDE .....................................................118.45 -0.10 123.95 87.17AIRBUS GROUP ................................................63.34 0.53 66.10 39.64ALLIANZ N........................................................151.65 -0.35 170.15 115.05ANHEUS.-BUSCH INBEV ...................................111.50 0.30 118.80 78.75ASML HLDG .....................................................100.75 0.85 103.45 59.20AXA ..................................................................23.85 0.19 24.64 16.43BANCO SANTANDER ...........................................6.76 0.04 7.44 5.52BASF N..............................................................87.95 -0.43 97.22 64.27BAYER N...........................................................137.25 -0.25 146.45 94.22BBVA...................................................................9.31 0.09 9.77 7.11BMW...............................................................106.45 -0.70 123.75 74.74BNP PARIBAS-A-..............................................56.85 0.94 59.69 43.14CARREFOUR .......................................................31.81 0.55 33.25 21.42DAIMLER N ........................................................89.71 0.34 96.07 55.10DANONE...........................................................63.60 0.02 66.15 48.67DEUTSCHE BANK N...........................................29.65 0.07 33.42 22.66DEUTSCHE POST N............................................28.79 0.10 31.19 21.55DEUTSCHE TELEKOM N ......................................16.96 0.03 17.63 10.07E.ON N ...............................................................14.21 0.20 15.06 11.92ENEL...................................................................4.40 0.06 4.49 3.36ENI ....................................................................16.79 0.05 20.46 12.98ESSILOR INTL.....................................................111.35 0.50 115.80 71.16GDF SUEZ..........................................................18.64 0.37 21.19 16.17GENERALI..........................................................18.05 0.05 19.21 14.40IBERDROLA ........................................................6.44 0.11 6.33 4.93INDITEX ...........................................................30.22 0.52 31.05 19.29ING GROUP .......................................................15.00 0.14 14.88 9.38INTESA SANPAOLO..............................................3.35 0.01 3.37 2.00L'OREAL...........................................................175.00 0.20 181.30 117.05LVMH ..............................................................166.00 0.05 175.40 109.41MUENCH RUECKVERS N...................................175.00 -0.30 206.50 141.10NOKIA ................................................................6.45 0.13 7.87 5.29ORANGE............................................................14.84 -0.03 16.45 10.20REPSOL ..............................................................18.12 0.14 19.95 14.26ROY.PHILIPS ......................................................25.18 0.26 28.00 20.69RWE ................................................................22.30 0.19 32.98 21.46SAINT GOBAIN ..................................................42.53 0.51 44.40 29.51SANOFI..............................................................91.57 0.22 99.23 69.58SAP ...................................................................69.19 0.13 70.81 50.08SCHNEIDER ELECTRIC........................................70.02 0.14 75.29 52.59SIEMENS N .......................................................98.02 0.03 106.35 80.17SOCIETE GENERALE...........................................45.03 0.38 46.95 31.85TELEFONICA.......................................................13.30 0.09 13.96 10.35TOTAL................................................................47.40 0.10 54.71 38.25UNIBAIL-RODAMCO ........................................243.05 -4.85 262.00 180.70UNICREDIT..........................................................6.50 0.02 6.89 4.82UNILEVER CERT ................................................39.44 0.15 42.75 28.75VINCI ...............................................................55.29 0.25 57.66 39.65VIVENDI............................................................22.97 0.46 24.42 17.26VOLKSWAGEN VZ............................................232.60 -0.60 262.45 147.40Price Chg High LowEU SHARES3M ...................................................................161.90 -1.22 170.50 130.60AMAZON.COM ................................................423.86 2.15 452.65 284.00AMERICAN EXPRESS ........................................80.96 -0.40 96.24 76.53AMGEN ...........................................................163.98 0.42 173.60 111.89APPLE.............................................................130.06 -0.01 134.54 85.82AT&T.................................................................34.62 0.25 37.48 32.07BANK OF AMERICA............................................16.74 -0.03 18.21 14.50BERKSHIRE HATHAWY-B ................................145.94 -0.60 152.94 122.72BOEING CO......................................................146.42 -0.63 158.83 116.32BRISTOL-MYERSSQUIBB...................................69.08 0.81 69.86 46.30CATERPILLAR ....................................................87.93 0.69 111.46 78.19CHEVRON........................................................105.25 0.23 135.10 98.88CISCO SYSTEMS.................................................29.62 -0.12 30.31 22.49CITIGROUP ......................................................54.89 -0.44 56.95 46.55COCA-COLA CO ..................................................41.35 0.04 45.00 39.06COMCAST-A .......................................................57.57 0.34 60.85 49.33CVS HEALTH.....................................................101.27 -1.05 105.46 74.64DU PONT NEMOURS&CO ..................................70.66 -0.59 80.65 63.70EXXON MOBIL ....................................................87.13 0.14 104.76 82.68FACEBOOK-A....................................................80.55 -0.08 86.07 58.18GENERAL ELECTRIC...........................................27.64 0.29 28.68 23.41GILEAD SCIENCES..............................................110.17 -0.39 116.83 78.50GOLDMAN SACHS GROUP ..............................205.08 -0.32 206.20 157.13GOOGLE-A.......................................................552.51 3.23 608.91 490.91GOOGLE-C.......................................................539.27 1.91 598.01 486.23HOME DEPOT....................................................112.10 -0.24 117.99 77.75IBM..................................................................173.76 0.28 196.40 149.52INTEL ................................................................33.37 0.22 37.90 25.88JOHNSON & JOHNSON....................................103.60 -0.36 109.49 95.10JPMORGAN CHASE...........................................66.48 -0.53 67.19 53.98MCDONALD'S....................................................100.11 -0.57 102.98 87.62MEDTRONIC ......................................................78.79 0.35 0.00 0.00MERCK.............................................................60.46 -0.06 63.62 52.49MICROSOFT.......................................................47.58 0.00 50.05 39.46NIKE -B-..........................................................104.61 -0.03 105.50 73.14ORACLE............................................................44.29 -0.03 46.71 35.82PEPSICO............................................................97.69 -0.26 100.76 85.36PFIZER .............................................................34.30 0.09 35.53 27.51PHILIP MRRS INT...............................................85.41 -0.25 91.63 75.27PROCTER&GAMBLE ..........................................80.48 -0.35 93.89 77.29QUALCOMM......................................................69.28 -0.34 81.97 62.26SCHLUMBERGER...............................................90.75 0.19 118.76 75.60TRAVLR COMP .................................................103.70 0.04 110.49 88.81TWITTER...........................................................36.78 -0.72 55.99 30.38UNITEDHEALTH GROUP ...................................121.24 0.69 123.76 76.63UTD TECHNOLOGIES .........................................118.87 -0.20 124.45 97.30VERIZON COMM ...............................................49.69 0.14 53.66 45.09VISA-A .............................................................69.78 -0.38 70.69 48.80WAL-MART STORES..........................................75.90 -0.53 90.97 72.61WALT DISNEY-DISNEY .....................................110.20 -0.36 113.30 78.54WELLS FARGO..................................................56.08 -0.32 56.70 46.44COMMODITIESCREDIT & RATESBoE IR Overnight.........................................0.500 0.00BoE IR 7 days..............................................0.500 0.00BoE IR 1 month...........................................0.500 0.00BoE IR 3 months.........................................0.500 0.00BoE IR 6 months ........................................0.500 0.00LIBOR Euro - overnight...............................-0.178 0.00LIBOR Euro - 12 months................................0.172 0.00LIBOR USD - overnight .................................0.124 0.00LIBOR USD - 12 months................................0.727 0.00Halifax mortgage rate ................................3.990 0.00Euro Base Rate............................................0.050 0.00Finance house base rate .............................1.000 0.00US Fed funds...................................................0.11 -0.02US long bond yield .......................................3.06 0.01Euro Euribor ................................................-0.119 -0.01The vix index................................................12.88 0.03The baltic dry index..................................606.00 -14.00Markit iBoxx EUR........................................219.83 -0.13Markit iBoxx GBP ........................................283.71 -0.51Markit iTraxx ...............................................60.04 0.56Price Chg High LowUS SHARES€/$ 1.1094 0.0052€/£ 0.7143 0.0043€/¥ 134.57 0.1164/€ 1.4005 0.0087/$ 1.5531 0.0019/¥ 188.38 1.2665FTSE 1007007.2612.16FTSE 25018135.5340.60FTSE ALL SHARE3805.774.27DOW JONES18285.4026.99NASDAQ5071.741.71S&P 5002125.851.98CONSTRUCTION & MATERIALSBAE Systems . . . . . . . .509.0 0.0 547.0 408.5Cobham . . . . . . . . . . . . .294.1 -2.4 345.1 263.7Meggitt . . . . . . . . . . . . .510.0 -4.5 587.5 423.9QinetiQ Group . . . . . . . .215.2 -0.1 229.4 181.9Rolls-Royce Holdi . . . .1004.0 -5.0 1092.0 779.5Senior . . . . . . . . . . . . . .322.0 -3.9 358.5 254.6Ultra Electronics . . . . . .1819.0 16.0 1893.0 1667.0GKN . . . . . . . . . . . . . . . . .367.1 0.8 395.0 286.5Bank of Georgia H . . .1808.0 110.0 2590.0 1684.0Barclays . . . . . . . . . . . . .271.6 8.9 272.2 207.9HSBC Holdings . . . . . . .622.9 6.2 663.6 559.9Lloyds Banking Gr . . . . . .87.7 -0.3 89.0 71.9Royal Bank of Sco . . . . .354.7 6.2 403.9 314.1Standard Chartere . . . .1055.5 -0.5 1348.0 881.0TSB Banking Group . . .339.0 0.3 339.0 247.5Virgin Money Hold . . . .419.0 5.7 422.0 279.5Barr (A.G.) . . . . . . . . . . .633.5 3.5 684.0 565.0Britvic . . . . . . . . . . . . . . .747.5 -18.5 776.5 610.0Coca-Cola HBC AG . . . .1471.0 -9.0 1491.0 1057.0Diageo . . . . . . . . . . . . .1799.0 -16.0 2022.5 1709.5SABMiller . . . . . . . . . . .3637.0 -14.5 3768.0 3132.0Alent . . . . . . . . . . . . . . .371.4 -1.9 403.7 301.3Croda Internation . . . .2831.0 8.0 3007.0 1990.0Elementis . . . . . . . . . . .304.5 -9.3 320.5 227.6Johnson Matthey . . . .3433.0 18.0 3569.0 2743.0Synthomer . . . . . . . . . .343.0 5.7 345.8 189.5Victrex plc . . . . . . . . . .2027.0 -23.0 2187.0 1553.0Balfour Beatty . . . . . . .254.7 0.2 256.8 148.7CRH . . . . . . . . . . . . . . . .1851.0 0.0 1908.0 1266.0Galliford Try . . . . . . . . .1591.0 5.0 1594.0 1062.0Kingfisher . . . . . . . . . . .361.4 -1.8 417.5 285.0Marks & Spencer G . . . .583.5 -2.0 597.0 383.9Next . . . . . . . . . . . . . . .7420.0 -5.0 7620.0 6250.0Pets at Home Grou . . . .273.9 0.6 275.0 167.0Poundland Group . . . . .325.1 4.0 418.9 287.0Saga . . . . . . . . . . . . . . . .215.0 4.0 216.0 147.1Sports Direct Int . . . . . .651.0 -7.5 825.0 574.0Ted Baker . . . . . . . . . .2880.0 0.0 2962.0 1660.0WH Smith . . . . . . . . . .1490.0 1.0 1503.0 995.5AL Noor Hospitals . . . .929.0 16.0 1168.0 819.0NMC Health . . . . . . . . . .838.0 -9.0 875.0 441.0Smith & Nephew . . . . .1134.0 -4.0 1200.0 906.0Spire Healthcare . . . . .358.8 3.6 390.0 210.0Synergy Health . . . . . .2279.0 4.0 2416.0 1226.0Barratt Developme . . .598.5 10.5 599.5 334.1Bellway . . . . . . . . . . . .2300.0 11.0 2302.0 1377.0Berkeley Group Ho . . .2996.0 25.0 3000.0 2061.0Bovis Homes Group . .1082.0 4.0 1084.6 732.5Crest Nicholson H . . . . .541.5 18.0 542.3 298.9Persimmon . . . . . . . . .1924.0 24.0 1929.0 1187.0Reckitt Benckiser . . . .5835.0 -13.0 6116.0 4964.0Redrow . . . . . . . . . . . . .431.0 4.2 432.5 228.7Taylor Wimpey . . . . . . .191.8 0.8 192.9 103.0Keller Group . . . . . . . .1004.0 -31.0 1053.0 750.0Kier Group . . . . . . . . . .1320.0 -29.0 1478.3 1113.1Drax Group . . . . . . . . . . .401.1 0.5 710.0 353.7Infinis Energy . . . . . . . .179.6 -3.4 240.3 178.7SSE . . . . . . . . . . . . . . . .1681.0 -15.0 1696.0 1438.0Domino Printing S . . . .914.0 0.5 954.0 554.5Halma . . . . . . . . . . . . . .763.0 8.0 765.5 558.5Hellermanntyton G . . .360.0 0.0 363.1 276.5Morgan Advanced M . .342.3 7.7 355.1 264.9Renishaw . . . . . . . . . . .2521.0 56.0 2648.0 1470.0Spectris . . . . . . . . . . . .2310.0 6.0 2393.0 1643.0Aberforth Smaller . . . .1184.0 -6.0 1193.0 980.0Alliance Trust . . . . . . . . .510.0 -1.5 528.5 426.0Bankers Inv Trust . . . . .660.5 0.5 664.0 519.0BH Macro Ltd. GBP . . .2074.0 2.0 2190.0 1920.0BlackRock World M . . . .314.4 -1.3 507.0 289.5BlueCrest AllBlue . . . . . .188.1 -0.4 191.8 178.0British Empire Se . . . . .539.0 -1.0 555.0 482.4Caledonia Investm . . .2391.0 5.0 2465.0 2108.0City of London In . . . . . .412.0 1.1 412.4 352.0Edinburgh Inv Tru . . . .689.0 -1.0 696.5 579.0Electra Private E . . . . . .3112.0 -23.0 3249.0 2350.0Fidelity China Sp . . . . . .169.7 0.7 172.0 98.0Fidelity European . . . . .185.0 -0.8 186.0 140.0Finsbury Growth & . . . .602.0 -0.5 609.0 470.3Foreign and Colon . . . .453.6 -0.8 465.0 369.8Genesis Emerging . . . .546.5 -1.0 583.0 502.0HICL Infrastructu . . . . . .155.5 0.0 160.5 136.7International Pub . . . . .138.0 -0.1 140.0 128.8John Laing Infras . . . . . .122.6 -0.4 128.1 114.6JPMorgan American . . .284.3 -1.8 295.8 232.8JPMorgan Emerging . . .616.0 2.0 671.0 550.0Law Debenture Cor . . . .521.5 -10.0 545.0 475.0Mercantile Invest . . . . .1676.0 1.0 1680.0 1341.0Monks Inv Trust . . . . . .436.5 0.9 456.9 354.0Murray Internatio . . . .1057.0 0.0 1123.0 981.0NB Global Floatin . . . . . .96.9 0.0 100.0 94.2Perpetual Income . . . .421.0 -0.4 421.5 356.7Personal Assets T . . .35570.0 120.036290.033150.0Polar Capital Tec . . . . . .586.0 0.0 601.5 445.0RIT Capital Partn . . . . .1599.0 8.0 1612.0 1275.0Riverstone Energy . . .1058.0 0.0 1105.0 830.0Scottish Inv Trus . . . . . .660.0 1.0 668.0 547.5Scottish Mortgage . . . . .267.8 -0.3 281.8 190.4Temple Bar Inv Tr . . . .1219.0 4.0 1268.0 1127.0Templeton Emergin . . .556.5 -6.5 623.5 517.5TR Property Inv T . . . . .316.0 -1.9 324.0 238.3Witan Inv Trust . . . . . . .831.0 1.0 847.0 655.0Worldwide Healthc . .1908.0 1.0 1988.0 1249.03i Group . . . . . . . . . . . . .555.5 7.5 555.5 352.13i Infrastructure . . . . . . .167.4 1.4 167.4 133.2Aberdeen Asset Ma . . .438.9 0.0 507.5 383.4Allied Minds . . . . . . . . .595.0 -55.0 725.0 185.8Arrow Global Grou . . . .258.0 3.0 268.3 215.0Ashmore Group . . . . . . .327.2 -3.0 377.0 252.7Brewin Dolphin Ho . . . .355.7 -3.9 361.0 246.4Charles Taylor . . . . . . . .225.0 -5.0 295.0 205.0City of London Gr . . . . . .25.8 -0.3 27.0 17.3City of London In . . . . .355.5 -1.0 360.0 256.5Close Brothers Gr . . . . .1575.0 -9.0 1664.0 1223.0Hargreaves Lansdo . . .1256.0 -24.0 1299.0 851.5Henderson Group . . . . .281.4 0.2 301.6 184.6ICAP . . . . . . . . . . . . . . .564.0 8.0 567.0 342.8IG Group Holdings . . . . .777.0 3.0 782.0 563.5Intermediate Capi . . . .560.0 1.5 598.0 366.0International Per . . . . .487.9 -4.0 631.5 417.7Investec . . . . . . . . . . . .629.5 4.5 630.5 491.6IP Group . . . . . . . . . . . . .215.0 4.9 264.7 164.9Jupiter Fund Mana . . . .462.2 -2.5 466.4 318.0Liontrust Asset M . . . . .280.8 0.8 300.0 211.5LMS Capital . . . . . . . . . . .76.9 0.0 87.3 75.0London Finance & . . . . .35.5 0.0 37.0 31.0London Stock Exch . . .2469.0 -6.0 2595.0 1647.0Man Group . . . . . . . . . . .178.4 1.3 217.6 90.7OneSavings Bank . . . . .308.0 2.0 311.0 159.8Paragon Group Of . . . . .432.1 -12.9 455.5 317.9Provident Financi . . . . .3115.0 -36.0 3160.0 1988.0Rathbone Brothers . . .2313.0 38.0 2313.0 1830.0Real Estate Credi . . . . . .166.3 0.8 179.8 156.3Record . . . . . . . . . . . . . . .35.8 -0.1 36.8 29.5S&U . . . . . . . . . . . . . . .2092.5 6.5 2250.0 1700.0Schroders . . . . . . . . . .3415.0 9.0 3419.0 2146.0SVG Capital . . . . . . . . . .522.0 4.5 524.5 382.2Tullett Prebon . . . . . . . .379.0 4.4 385.3 239.0Walker Crips Grou . . . . .46.0 0.0 50.0 38.3BT Group . . . . . . . . . . . .462.2 -4.3 470.6 360.1Cable & Wireless . . . . . .68.3 0.0 70.3 43.4COLT Group SA . . . . . . . .150.4 4.1 158.1 118.2TalkTalk Telecom . . . . .400.0 8.0 407.8 264.7Telecom Plus . . . . . . . .860.0 25.0 1540.0 752.5Booker Group . . . . . . . .152.0 -1.9 164.0 116.3Greggs . . . . . . . . . . . . .1168.0 4.0 1189.0 500.0Morrison (Wm) Sup . . .179.6 -1.4 209.5 151.7Ocado Group . . . . . . . . .374.8 -5.5 440.0 220.6Sainsbury (J) . . . . . . . .262.0 -2.6 346.1 224.8SSP Group . . . . . . . . . . .312.2 -2.1 315.6 215.8Tesco . . . . . . . . . . . . . . .220.5 -0.7 306.1 164.8UDG Healthcare Pu . . . .542.0 -5.0 550.5 316.5Associated Britis . . . . .2938.0 -21.0 3284.0 2466.0Cranswick . . . . . . . . . .1582.0 15.0 1588.0 1180.0Dairy Crest Group . . . . .518.0 4.0 520.0 369.0Greencore Group . . . . . .351.8 -6.2 359.4 229.6Tate & Lyle . . . . . . . . . .598.0 -15.5 743.5 558.0Unilever . . . . . . . . . . .2895.0 -5.0 3015.0 2406.0Mondi . . . . . . . . . . . . . .1521.0 36.0 1523.0 943.5Centrica . . . . . . . . . . . . .281.5 -1.0 336.8 235.5National Grid . . . . . . . .903.3 3.0 960.5 830.5Pennon Group . . . . . . .879.0 -0.5 919.5 758.0Severn Trent . . . . . . . .2179.0 -6.0 2199.0 1814.0United Utilities . . . . . .1009.0 5.0 1042.0 784.5Rexam . . . . . . . . . . . . . .570.0 -1.0 590.0 425.0RPC Group . . . . . . . . . . .618.0 0.5 621.0 445.7Smith (DS) . . . . . . . . . .375.0 -0.4 380.1 238.1Smiths Group . . . . . . . .1172.0 10.0 1360.0 1013.0Vesuvius . . . . . . . . . . . .459.1 1.3 520.0 400.0AA . . . . . . . . . . . . . . . . . .410.1 0.1 431.8 227.9AO World . . . . . . . . . . . .176.8 -0.5 330.0 154.0Brown (N.) Group . . . . .338.6 -5.5 472.0 286.6Card Factory . . . . . . . . .340.0 0.0 343.9 197.5Debenhams . . . . . . . . . .94.3 -1.0 95.3 57.8Dignity . . . . . . . . . . . . .2175.0 13.0 2185.7 1309.8Dixons Carphone . . . . .459.5 -8.3 472.8 292.4Dunelm Group . . . . . . .952.0 -11.0 963.0 763.5Halfords Group . . . . . . .474.2 -0.7 511.5 423.3Home Retail Group . . . .169.4 -2.1 218.1 159.5Inchcape . . . . . . . . . . . .894.0 1.0 898.0 600.5JD Sports Fashion . . . . .626.5 -12.0 638.5 371.9Just Eat . . . . . . . . . . . . .447.0 -1.0 496.1 199.8Price Chg High LowBodycote . . . . . . . . . . . .734.5 2.5 786.0 557.5IMI . . . . . . . . . . . . . . . .1209.0 -3.0 1608.0 1135.0Melrose Industrie . . . . .266.0 0.5 307.3 237.9Rotork . . . . . . . . . . . . . .258.4 -3.3 284.6 216.0Spirax-Sarco Engi . . . .3475.0 19.0 3565.0 2561.0Weir Group . . . . . . . . .1888.0 -26.0 2761.0 1608.0Evraz . . . . . . . . . . . . . . . .181.8 -4.3 207.4 88.5BBA Aviation . . . . . . . . .341.0 -1.4 360.0 300.2Clarkson . . . . . . . . . . . .2515.0 -7.0 2688.0 1835.0Fisher (James) & . . . . .1323.0 -14.0 1436.0 1007.0Royal Mail . . . . . . . . . . .499.9 0.7 575.0 389.9Admiral Group . . . . . .1485.0 -10.0 1629.0 1195.0Amlin . . . . . . . . . . . . . .476.7 -3.8 530.0 425.2Beazley . . . . . . . . . . . . .287.4 -3.5 317.5 236.0Brit . . . . . . . . . . . . . . . .280.2 2.1 305.8 227.0Direct Line Insur . . . . . .326.9 0.4 341.7 242.3esure Group . . . . . . . . .245.8 -0.2 279.0 193.5Hiscox Limited (C . . . . .832.5 -4.5 893.7 659.8Jardine Lloyd Tho . . . .1040.0 -10.0 1093.0 840.5Moneysupermarket. . .295.6 1.5 303.9 170.0Pearson . . . . . . . . . . . .1347.0 7.0 1508.0 1087.0Reed Elsevier . . . . . . . .1118.0 -6.0 1188.0 914.0Rightmove . . . . . . . . .3273.0 42.0 3275.0 1981.0Sky . . . . . . . . . . . . . . . .1083.0 -7.0 1105.0 843.5STV Group . . . . . . . . . . .379.9 9.9 385.0 322.0Tarsus Group . . . . . . . . .219.0 -3.5 233.5 188.8Trinity Mirror . . . . . . . . .182.5 0.5 214.0 137.0UBM . . . . . . . . . . . . . . . .553.0 -2.0 576.0 393.6UTV Media . . . . . . . . . . .159.0 6.5 235.0 152.5WPP . . . . . . . . . . . . . . .1578.0 -3.0 1611.0 1117.0Zoopla Property G . . . .223.4 -6.6 269.0 150.8Acacia Mining . . . . . . . .299.8 5.5 313.5 195.0Anglo American . . . . .1064.5 3.5 1648.0 997.0Antofagasta . . . . . . . . .779.0 4.0 855.0 650.0BHP Billiton . . . . . . . . .1395.5 -10.0 2096.0 1276.0Centamin (DI) . . . . . . . . .69.2 0.7 75.0 45.3Fresnillo . . . . . . . . . . . .759.0 -5.5 1031.0 644.0Glencore . . . . . . . . . . . .292.5 2.9 377.5 240.6Kaz Minerals . . . . . . . . .242.8 -7.6 354.0 170.4Lonmin . . . . . . . . . . . . .140.0 1.7 262.8 110.7Petra Diamonds Lt . . . .173.4 2.7 216.6 151.5Polymetal Interna . . . . .561.0 12.5 614.0 463.2Lancashire Holdin . . . .640.0 -4.0 689.0 506.0RSA Insurance Gro . . . .438.7 -3.0 497.8 409.2Aviva . . . . . . . . . . . . . . .543.5 3.5 571.5 463.3Just Retirement G . . . . .174.0 0.0 177.8 119.8Legal & General G . . . . .268.8 -1.2 294.4 213.9Old Mutual . . . . . . . . . .233.4 -2.7 240.3 169.5Phoenix Group Hol . . . .863.5 -2.0 888.0 625.0Prudential . . . . . . . . . .1643.0 -26.0 1752.0 1318.5St James's Place . . . . . .938.0 -10.0 994.5 648.0Standard Life . . . . . . . .493.4 2.0 493.7 367.74Imprint Group . . . . . .1138.0 29.0 1150.0 618.5Bloomsbury Publis . . . .175.5 -3.4 188.5 145.3Centaur Media . . . . . . . .80.5 0.0 82.0 56.3Chime Communicati . . .285.3 -4.5 365.0 242.3Creston . . . . . . . . . . . . . .121.0 0.0 130.5 103.5Entertainment One . . .329.0 3.3 360.0 268.4Euromoney Institu . . .1199.0 0.0 1261.0 960.0Future . . . . . . . . . . . . . . .10.5 -0.1 11.5 6.6Haynes Publishing . . . .130.0 -0.5 196.0 112.5Huntsworth . . . . . . . . . . .39.5 0.9 57.5 37.3Informa . . . . . . . . . . . . .569.5 -7.0 600.5 445.9ITE Group . . . . . . . . . . . .185.8 -0.5 244.8 128.0ITV . . . . . . . . . . . . . . . . .269.1 -1.2 278.0 169.5Johnston Press . . . . . . .155.3 3.0 255.8 142.0Randgold Resource . .4799.0 -3.0 5685.0 3678.0Rio Tinto . . . . . . . . . . .2867.0 20.0 3515.0 2616.5Vedanta Resources . . .644.0 -6.0 1191.0 371.0Inmarsat . . . . . . . . . . . .978.5 -1.0 1022.0 674.0Vodafone Group . . . . . .238.9 12.3 239.9 184.5BG Group . . . . . . . . . . .1160.5 6.5 1276.0 794.7BP . . . . . . . . . . . . . . . . . .452.1 -0.3 523.9 373.3Cairn Energy . . . . . . . . .174.2 0.4 208.3 143.2Nostrum Oil & Gas . . . .564.0 5.0 1289.0 374.9Ophir Energy . . . . . . . . .134.8 -2.4 268.3 114.3Premier Oil . . . . . . . . . .164.7 -1.2 355.4 120.2Royal Dutch Shell . . . .1970.0 -1.0 2453.0 1921.5Royal Dutch Shell . . . .2002.5 2.5 2567.0 1980.0Soco Internationa . . . . .184.9 2.3 445.7 140.0Tullow Oil . . . . . . . . . . .405.0 -1.2 875.0 281.2Amec Foster Wheel . . .915.0 4.0 1262.0 777.0Hunting . . . . . . . . . . . .580.0 -8.5 910.0 394.3Petrofac Ltd. . . . . . . . . .871.0 -7.0 1268.0 596.5Wood Group (John) . . .714.0 1.0 818.0 527.0Burberry Group . . . . . .1717.0 -91.0 1921.0 1410.0Jimmy Choo . . . . . . . . .170.0 1.0 180.0 140.0PZ Cussons . . . . . . . . . . .369.1 -0.9 392.1 292.5Supergroup . . . . . . . . .1105.0 -5.0 1230.0 769.0AstraZeneca . . . . . . . .4393.0 -10.5 4863.0 4092.5BTG . . . . . . . . . . . . . . . .722.0 13.5 830.0 521.0Dechra Pharmaceut . .1058.0 -2.0 1064.0 681.0Genus . . . . . . . . . . . . .1488.0 -8.0 1510.0 1017.0GlaxoSmithKline . . . . .1447.5 5.0 1642.0 1324.0Hikma Pharmaceuti . .2126.0 -2.0 2574.0 1590.0Indivior . . . . . . . . . . . . .230.4 -4.1 239.8 141.1Shire Plc . . . . . . . . . . .5475.0 -10.0 5685.0 3329.0Capital & Countie . . . . .432.4 -0.6 434.8 315.4CLS Holdings . . . . . . . .1980.0 0.0 1980.0 1276.0Countrywide . . . . . . . .594.0 3.5 597.0 414.0Daejan Holdings . . . . .5720.0 105.0 5995.0 4667.0F&C Commercial Pr . . . .139.0 -0.7 147.9 118.4Grainger . . . . . . . . . . . .220.2 -1.3 224.0 171.6Kennedy Wilson Eu . . .1207.0 7.0 1207.0 990.0Redefine Internat . . . . . .57.9 -0.6 59.7 49.5Savills . . . . . . . . . . . . . .947.0 6.5 952.0 571.5St. Modwen Proper . . .466.0 -3.9 490.0 334.0UK Commercial Pro . . . .88.9 0.1 93.5 80.7Unite Group . . . . . . . . .620.0 -5.0 625.0 392.7Big Yellow Group . . . . .681.5 -21.5 706.0 460.6British Land Comp . . . .876.0 -10.0 887.5 662.5Derwent London . . . .3636.0 -66.0 3710.0 2539.0Great Portland Es . . . . .829.0 -46.5 875.5 612.5Hammerson . . . . . . . . .690.0 -13.5 705.5 543.5Hansteen Holdings . . . .118.7 -0.3 128.2 99.3Intu Properties . . . . . . .346.8 -7.3 376.4 304.1Land Securities G . . . . .1338.0 -25.0 1363.0 1004.0LondonMetric Prop . . . .168.8 -0.5 170.0 133.5SEGRO . . . . . . . . . . . . . .426.8 -0.6 443.4 339.4Shaftesbury . . . . . . . . .879.5 -23.5 907.0 636.0Workspace Group . . . . .891.5 -3.5 916.0 555.0Aveva Group . . . . . . . .2027.0 102.0 2350.0 1255.0Computacenter . . . . . . .748.0 -3.5 760.0 590.8Fidessa Group . . . . . . .2280.0 -20.0 2508.0 2024.0Micro Focus Inter . . . . .1289.0 -18.0 1310.0 825.3Playtech . . . . . . . . . . . .846.5 6.0 860.0 584.5Sage Group . . . . . . . . . .575.5 5.0 576.5 350.1Telecity Group . . . . . . .1099.0 17.0 1115.0 666.5Aggreko . . . . . . . . . . . .1607.0 -24.0 1774.0 1405.0Ashtead Group . . . . . . .1193.0 -4.0 1205.2 827.0Atkins (WS) . . . . . . . . .1419.0 7.0 1423.0 1238.0Babcock Internati . . . .1103.0 -2.0 1250.0 933.5Berendsen . . . . . . . . .1048.0 5.0 1157.0 919.5Bunzl . . . . . . . . . . . . . .1899.0 -15.0 1950.0 1519.0Capita . . . . . . . . . . . . .1269.0 -1.0 1284.0 1002.0Carillion . . . . . . . . . . . . .326.1 -5.4 370.4 302.2DCC . . . . . . . . . . . . . . .4920.0 -34.0 4970.0 3105.0De La Rue . . . . . . . . . . .565.0 5.0 874.0 472.9Diploma . . . . . . . . . . . .788.5 -1.5 865.5 612.5Electrocomponents . . .249.4 1.4 289.0 200.6Essentra . . . . . . . . . . . .970.5 -11.5 1064.0 647.0Experian . . . . . . . . . . .1248.0 -2.0 1255.0 916.0G4S . . . . . . . . . . . . . . . . .295.1 1.2 308.8 245.0Grafton Group Uni . . . .800.0 -15.0 858.5 538.0Hays . . . . . . . . . . . . . . .164.0 -0.6 165.5 110.7Homeserve . . . . . . . . . .422.5 4.4 433.4 299.5Howden Joinery Gr . . .505.5 -1.5 509.2 288.3Interserve . . . . . . . . . . .609.5 1.0 678.0 495.9Intertek Group . . . . . .2633.0 -35.0 2926.0 2149.0Michael Page Inte . . . . .556.5 -2.0 561.5 371.9Mitie Group . . . . . . . . . .301.3 -0.2 335.3 265.3Northgate . . . . . . . . . . .645.0 -7.5 656.0 450.0PayPoint . . . . . . . . . . . .905.5 -10.5 1166.0 799.5Premier Farnell . . . . . . .198.4 -0.9 217.5 158.1Regus . . . . . . . . . . . . . . .257.3 0.7 264.8 165.5Rentokil Initial . . . . . . . .145.0 -1.7 147.8 111.0RPS Group . . . . . . . . . . .228.5 -4.6 297.7 182.4Serco Group . . . . . . . . . .137.3 -0.4 306.6 123.7SIG . . . . . . . . . . . . . . . . .200.4 -2.6 211.2 144.8Travis Perkins . . . . . . .2165.0 -8.0 2181.0 1574.0Wolseley . . . . . . . . . . .4027.0 -2.0 4215.0 3020.0ARM Holdings . . . . . . .1120.0 -6.0 1205.0 806.0CSR . . . . . . . . . . . . . . . .886.5 0.5 886.5 512.5Imagination Techn . . . .202.9 -7.1 265.0 172.0Laird . . . . . . . . . . . . . . .378.8 -1.2 389.9 262.5Pace . . . . . . . . . . . . . . . .418.5 0.8 447.0 292.1British American . . . .3644.0 4.5 3892.5 3335.5Imperial Tobacco . . . .3285.0 18.0 3321.0 2483.0Betfair Group . . . . . . .2595.0 -5.0 2614.0 944.8Bwin.party Digita . . . . .103.4 -4.1 121.3 78.4Carnival . . . . . . . . . . . .3201.0 -13.0 3370.0 2090.0Cineworld Group . . . . .505.0 1.5 507.0 303.0Compass Group . . . . . .1155.0 -11.0 1219.0 938.0Domino's Pizza Gr . . . . .807.0 -3.5 830.0 504.0easyJet . . . . . . . . . . . .1649.0 -25.0 1915.0 1228.0Enterprise Inns . . . . . . .130.3 -2.3 141.1 98.0FirstGroup . . . . . . . . . . . .112.3 -0.3 140.2 91.0Go-Ahead Group . . . . .2641.0 -12.0 2666.0 1865.0Greene King . . . . . . . . .835.0 -4.0 887.5 716.0InterContinental . . . .2782.0 -3.0 2880.0 2120.0International Con . . . . .567.0 -0.5 617.0 316.2Ladbrokes . . . . . . . . . . . .119.3 0.8 154.5 101.9Marston's . . . . . . . . . . . .170.4 0.5 170.4 136.6Merlin Entertainm . . . .468.9 -1.8 473.3 328.7Millennium & Copt . . . .593.0 -1.0 602.5 543.0Mitchells & Butle . . . . .449.2 -3.6 469.1 325.7National Express . . . . .307.0 -2.1 309.1 220.0Rank Group . . . . . . . . . .201.2 2.4 204.0 151.9Restaurant Group . . . . .705.0 -6.5 738.5 555.0Spirit Pub Compan . . . .116.5 -0.2 120.5 70.3Stagecoach Group . . . .399.6 -4.7 411.4 336.0Thomas Cook Group . . . .152.1 -4.9 164.8 102.5TUI AG Reg Shs (D . . . .1220.0 0.0 1270.0 1070.0Wetherspoon (J.D. . . . .800.0 -5.5 842.5 700.0Whitbread . . . . . . . . . .5310.0 0.0 5440.0 3958.0William Hill . . . . . . . . . .412.4 6.5 415.6 325.0Abcam . . . . . . . . . . . . . .537.0 1.0 539.5 358.5Advanced Medical . . . .157.5 0.0 158.0 108.8Alternative Netwo . . . .505.0 -9.0 538.0 419.9Amerisur Resource . . . . .34.3 0.8 66.3 20.5Arbuthnot Banking . . .1538.5 0.0 1577.5 1010.0ASOS . . . . . . . . . . . . . .3793.0 -27.0 4584.0 1785.0Avanti Communicat . . .224.0 1.0 320.8 170.3Blinkx . . . . . . . . . . . . . . .36.8 0.3 79.8 23.5Brooks Macdonald . . .1647.5 27.5 1685.0 1320.0Camellia . . . . . . . . . . .9700.0 200.0 11220.0 8501.0Clinigen Group . . . . . . .639.0 -2.5 670.0 359.3CVS Group . . . . . . . . . . .628.0 3.5 651.5 288.3Dart Group . . . . . . . . . .402.0 -4.5 410.0 190.0DX (Group) . . . . . . . . . . .85.0 -0.3 143.0 76.5EMIS Group . . . . . . . . . .950.0 0.0 950.0 654.5Faroe Petroleum . . . . . . .79.5 -2.0 139.3 59.0First Derivatives . . . . . .1182.5 -18.0 1325.0 860.0Gemfields . . . . . . . . . . . .60.1 -0.1 68.0 40.4GW Pharmaceutical . . .606.5 0.5 668.0 316.5Hargreaves Servic . . . . .418.3 -9.3 829.0 414.8IGas Energy . . . . . . . . . . .34.5 0.0 146.5 19.5Iomart Group . . . . . . . .233.0 -1.0 284.6 160.0James Halstead . . . . . . .357.0 4.5 362.3 260.3M. P. Evans Group . . . . .423.0 -11.5 492.3 364.3Majestic Wine . . . . . . . .440.5 -9.5 468.3 299.8Monitise . . . . . . . . . . . . . .9.8 -1.2 69.3 9.5Mulberry Group . . . . . . .918.5 18.5 934.5 661.5Nichols . . . . . . . . . . . . .1163.0 1.0 1210.0 838.5Numis Corporation . . . .267.5 1.0 290.5 202.0Pan African Resou . . . . .12.0 0.0 15.5 10.8Plexus Holdings . . . . . .223.8 -3.0 321.0 165.5Polar Capital Hol . . . . .400.0 -6.0 525.0 358.0Quadrise Fuels In . . . . . .12.0 0.0 42.5 11.5Quindell . . . . . . . . . . . . .128.5 0.8 311.3 32.5Redde . . . . . . . . . . . . . .124.3 3.3 125.0 53.3Rockhopper Explor . . . .63.0 0.0 99.5 51.8RWS Holdings . . . . . . . .138.3 0.5 181.8 132.3Secure Trust Bank . . . .2847.5 -25.5 3005.0 2245.0Sirius Minerals . . . . . . . . .19.3 0.0 19.9 7.0Smart Metering Sy . . . .335.0 -5.3 414.8 315.5Staffline Group . . . . . .1202.0 -17.0 1224.0 730.0Telford Homes . . . . . . .489.0 0.3 491.0 267.3Telit Communicati . . . .259.0 5.8 277.3 177.0Tungsten Corporat . . . . .98.5 -11.0 399.0 98.0Utilitywise . . . . . . . . . . .253.8 6.8 316.0 197.3Velocys . . . . . . . . . . . . .150.0 4.0 236.9 115.0Vernalis . . . . . . . . . . . . . .66.8 -1.3 69.5 30.3Vertu Motors . . . . . . . . .60.0 -0.3 61.5 51.5Young & Co's Brew . . .1085.0 23.5 1097.5 955.0Bank of Georgia Ho . . . . . . . . .1808.0 6.5Vodafone Group . . . . . . . . . . . . .238.9 5.4Aveva Group . . . . . . . . . . . . . . .2027.0 5.3Crest Nicholson Ho . . . . . . . . . . .541.5 3.4Barclays . . . . . . . . . . . . . . . . . . . .271.6 3.4Telecom Plus . . . . . . . . . . . . . . .860.0 3.0COLT Group SA . . . . . . . . . . . . . . .150.4 2.8Mondi . . . . . . . . . . . . . . . . . . . . .1521.0 2.4IP Group . . . . . . . . . . . . . . . . . . .215.0 2.3Morgan Advanced Ma . . . . . . . .342.3 2.3Allied Minds . . . . . . . . . . . . . . . .595.0 -8.5Great Portland Est . . . . . . . . . . .829.0 -5.3Burberry Group . . . . . . . . . . . . .1717.0 -5.0Bwin.party Digital . . . . . . . . . . .103.4 -3.8Imagination Techno . . . . . . . . .202.9 -3.4Thomas Cook Group . . . . . . . . . .152.1 -3.1Big Yellow Group . . . . . . . . . . . .681.5 -3.1Kaz Minerals . . . . . . . . . . . . . . . .242.8 -3.0Keller Group . . . . . . . . . . . . . . .1004.0 -3.0Elementis . . . . . . . . . . . . . . . . . .304.5 -3.0RisersFallersMAIN CHANGES UK 350Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High LowPrice Chg High Low Price Chg High LowGILTShttp://corporate.webfg.commailto:globaltechsales@webfg.com%%AUTOMOBILES & PARTSAEROSPACE & DEFENCEBANKSBEVERAGESCHEMICALSCONSTRUCTION & MATERIALSELECTRICITYELECTRONIC & ELECTRICAL EQ.EQUITY INVESTMENT INSTRUM.FINANCIAL SERVICESFIXED LINE TELECOMSFOOD & DRUG RETAILERSFOOD PRODUCERSFORESTRY & PAPERGAS, WATER & MULTIUTILITIESGENERAL INDUSTRIALSHEALTH CARE EQUIPMETN & S.HHOLD GDS & HOME CONSTR.INDUSTRIAL ENGINEERINGINDUSTRIAL TRANSPORTATIONNON LIFE INSURANCEMEDIAMININGMOBILE TELECOMSOIL & GAS PRODUCERSOIL EQUIPMENT & SERVICESPERSONAL GOODSPHARMACEUTICALS & BIOTECHREAL ESTATE INVEST. & SERV.REAL ESTATE INVEST. TRUSTSSUPPORT SERVICESTECHNOLOGY HARDW. & EQUIP.TOBACCOTRAVEL & LEISUREAIM 50Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9INDUSTRIAL METALS & MININGGENERAL RETAILERSWORLD INDICESFTSE 100 . . . . . . . . . . . . . . . . . . . . . 7007.26 12.16 0.17FTSE 250. . . . . . . . . . . . . . . . . . . . . 18135.53 -40.60 -0.22FTSE All-Share . . . . . . . . . . . . . . . . 3805.77 4.27 0.11FTSE AIM All-Share . . . . . . . . . . . . . 762.63 0.20 0.03S&P 500 . . . . . . . . . . . . . . . . . . . . . 2125.85 -1.98 -0.09Dow Jones I.A. . . . . . . . . . . . . . . . 18285.40 -26.99 -0.15Nasdaq Composite. . . . . . . . . . . . . 5071.74 1.71 0.03Xetra DAX . . . . . . . . . . . . . . . . . . . 11848.47 -4.86 -0.04CAC 40. . . . . . . . . . . . . . . . . . . . . . . 5133.30 16.00 0.31Swiss Market Index . . . . . . . . . . . . 9319.90 24.28 0.26ISEQ Overall Index . . . . . . . . . . . . . 6295.18 35.63 0.57FTSEurofirst 300 . . . . . . . . . . . . . . . 1613.60 6.84 0.43Hang Seng. . . . . . . . . . . . . . . . . . 27585.05 -108.49 -0.39Shanghai Composite . . . . . . . . . . 4446.29 28.74 0.65Straits Times . . . . . . . . . . . . . . . . . 3439.68 -14.36 -0.42Sao Paulo Bovespa . . . . . . . . . . . 55498.82 -705.41 -1.26Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chgLIFE INSURANCESOFTWARE & COMPUTER SERV.THURSDAY 21 MAY 201529MARKETScityam.comRise | ShineCITY A.M. 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32THURSDAY 21 MAY 2015cityam.comOFFICEPOLITICSIs storytellingan overlookedbusiness skill?The most successful leaders use narrationto inspire their teams, says Luis BarruetoCOMPANIES are no strangers to thevalue of storytelling. Marketershave long known the value of asimple story in persuadingpeople to buy their products or services.A recent study by Johns HopkinsUniversity, for example, analysed thecontent of more than a hundred SuperBowl commercials. They found that themore complete a story marketers tell intheir ads, the higher it performs in therating polls. People like commercialsthat feature the traditional dramaticstructure – exposition, rising action,falling action, and denouement – itsresearchers said.Stories evoke a strong neurologicalresponse. Neuroscientist Paul Zak hasfound that, during the tense momentsin a story, our brains produce cortisol,the so-called stress hormone. In contrast,the emotional elements promptthe release of oxytocin, a hormone thatpromotes empathy and connectionwith others. But advertising is just oneof the ways firms can tap into the powerof storytelling. Increasingly, leaders arecommunicating their vision and gainingsupport for their strategies bybecoming raconteurs.COMMUNICATING THE BUSINESS JOURNEYWhile the hard facts or a well-thoughtout strategy can persuade people, aTo navigate hardtimes, acompelling storymay be just whatyou needAutomationmade simpleWorkflow£2.49Workflow enablesiOS users toautomate andperform repetitivetasks with simpledrag-and-drop tools.This can come inhandy for routinetasks that requireseveral steps, and itcan help you savetime. For example,you can create asingle instruction touse the last threescreenshots in yourcamera roll to createa Gif, and then sendit to your contacts. Oryou can build a ruleto get the RSS feedsfrom a webpage, andwhich then addsthem to yourpreferred reader, likeFeedly or Overcast.story is more effective in inspiring themto act. Companies can do this bycreating a vision of where the business isheading, the challenges it will face andwhat it can do to overcome them – thentell that via a narrative, MartinClarkson, co-founder of consultancyfirm The Storytellers, told City A.M.Take the example of casino developerSteve Wynn. He had already establisheda standard in style and ambience withlandmarks like the Bellagio or TreasureIsland. But when he opened the Wynn,his flagship resort to date, his goal wasto take service to the next level. He wantedto “get everyone on the hotel tofeel accountable for every customers’satisfaction, and to make every memberof staff to feel like they contributedto the client experience,”says Clarkson.To do this, they created a corporatestory to inspire all employees to putthe customer first and ensure guestswould “never want to leave”. To bringthis main narrative into life, it wasimportant to tap into smaller anecdotesthat each employee could relateto. This resulted in the heartwarmingstory of a porter who wentthe extra mile to help a guest whohad left important medication athome, by getting a friend to personallycourier it to the hotel.SPARKING CONVERSATIONSFirms can also use stories to gathersupport during times of change, likea merger or even a financial crisis.City National Bank’s chief executives,for example, started exploring narrativetechniques just before the start ofthe great recession. “They had a sensethat the crisis was coming, and theywanted to have a story that wouldprovide structure and context to thetough decisions they saw ahead,” saysClarkson.While they’re not a silver bullet, storiesspark conversation about howstaff can make a difference and contributeto the success of the company.Clarkson adds: “leaders who canarticulate a clear, compellingbusiness journey and gain momentumfor that vision are the ones whowill achieve extraordinary success inthe years ahead”.

cityam.com/sportTHURSDAY 21 MAY 2015England want to land a big fishCRICKETCOMMENTCHRIS TREMLETTCARETAKER boss Paul Farbracethis week threw his hat into thering to become England’s headcoach on a full-time basis. I thinkhe has a chance but my gut feeling isthat England are after a bigger fish.Having said that, he has the opportunityto impress over the next few weeksduring the two-Test series with NewZealand, which starts today at Lord’s,and if England blow the Black Capsaway his stock will rise and his credentialsto land the job full-time will beenhanced.Good luck to him but, like I say, Ithink England’s director of cricketAndrew Strauss will be looking forsomeone with more experience incoaching or a greater CV in terms ofplaying international cricket.Yorkshire coach Jason Gillespie hasbeen the hot favourite since PeterMoores was sacked and last night theEngland and Wales Cricket Board (ECB)looked to be firming up their interestby approaching his current employersfor permission to speak to him.One question which only Gillespiecan answer is whether he would behappy to go along with the ECB’sJason Gillespie is set to discuss the England head coach’s positon with Andrew Straussstance on Kevin Pietersen. Any newcoach will presumably want to controlas much as they can and select the bestplayers. KP falls into that bracket.SPLENDIDEngland may not have a permanentcoach in place going into the first dayof the international summer, but oncethe Test match starts those sort ofthings will be forgotten. SkipperAlastair Cook is more in charge thanthe coach out on the pitch anyway.Nevertheless, New Zealand, who aretwo places ahead of England in the Testrankings, will prove tough opponentsand it is important that Cook’s side gointo the Ashes later this summer withsome momentum and confidence.For the batsmen, that means time inthe middle. They will not have playedmuch since the West Indies tour andwill be coming up against a splendidbowling attack in Tim Southee andTrent Boult. Those two are likely to getthe ball swinging around at Lord’s.In terms of the bowlers, seamerStuart Broad has struggled of late andneeds to find some rhythm. He tends tobowl better in English conditions buthe has to step his game up because hehas been below par for the last yearwith both bat and ball. I imagine ChrisJordan will be the third seamer and heis someone else who needs to come upwith some more consistent form. Hehas shown himself to be a brilliant slipfielder but has to contribute more.SPOTLIGHTToday is the first day of a big summerfor Cook too. Strauss has confirmedthat he will be Test captain for theAshes so he can relax on that score butthe spotlight is still going to be on him.Some pressure will have been relievedwith his century in Barbados earlierthis month and criticism of his captaincyhas not been as loud of late. Butif he gets another run of low scores orthe team starts losing heading into theAshes, questions will be asked again.And no matter what anybody says,the KP stuff will still hang over his headand be at the back of his mind. Thatissue will keep coming up all summerand it will be a test for Cook andEngland to forget that distraction.If England bat first today, hopefullyCook the batsman can come out andset the tone and continue the positiveform he showed in the Caribbean.Finally, Adam Lyth is set to make hisTest debut for England. Having playedagainst him in county cricket he looksa very good player and I expect him todo well in international cricket.The Investec Ashes Match at the Kia Ovalhas now sold out, but you can still experiencethe drama through our first class hospitalitypackages kiaoval.comResultsSPORT33

Bath fly-half George Fordnamed Premiership Playerof the YearPREMIER LEAGUEARSENAL ...................................0SUNDERLAND............................0FRANK DALLERESAT EMIRATES STADIUMARSENAL manager ArseneWenger admits he is worried athis team’s toothless and sluggishfinish to the season afterSunderland kept them at bay toclinch Premier League survivallast night.Wenger conceded his teamnever looked like scoring despitemustering 28 attempts on goal,which were either volleyed over,thwarted by goalkeeper CostelPantilimon or scrambled clear bySebastian Coates.The Gunners have won just oneof their last five games and failedto score in three at home – formthat concerns Wenger before theFA Cup final on 30 May, even ifthird place is practically assuredbefore West Brom visit on Sunday.“We didn’t look like scoring,honestly, even if we had 28 shots.There was something missing,” hesaid. “We played our 56th game ofthe season tonight and someplayers have given a lot. We stillhave time to recover for Sundayand prepare well for the FA CupTHURSDAY 21 MAY 2015Arsenal mustered 28 attempts at goal but failed to beat Sunderland keeper PantilimonWenger concern at limp end tocampaign ahead of FA Cup finalfinal. But it’s important now thatwe win on Sunday.”Sunderland boss Dick Advocaat,handed the improbable task ofaverting relegation with ninegames left, wept at full-time butreiterated that he would notdecide whether to stay at the clubuntil after the season’s finalfixture at Chelsea.It said much about Arsenal’sfussy build-up and tired finishingthat their three notable first-halfefforts were all spectacularvolleys – from Jack Wilshere,Mesut Ozil and Olivier Giroud –and lacked the exacting precisionrequired.Substitute Theo Walcott’s rightwingraids caused Sunderlandgreater discomfort after thebreak, but Pantilimon saved fromthe winger and FrenchmanGiroud, and when Walcott didbeat him Coates made one ofseveral goalmouth clearances.British No3 James Wardcrashed out of French Openqualifying in second roundLancaster: I hadno choice overEngland exilesBY ROSS MCLEANENGLAND head coach StuartLancaster has defended theexclusion of overseas-based playersfrom his World Cup training squadafter resisting pressure to relax theRugby Football Union’s stance.The policy meant there was noplace for Toulon flanker SteffonArmitage or Clermont Auvergnefull-back Nick Abendanon inLancaster’s 50-strong squad for thesummer’s training camps, which heannounced yesterday.“When the policy came out therewas a commitment from a group ofplayers to the England team,” hesaid. “There were those players whowere in England at the time andthere were some who made thedecision to return to England. Forthe last three years they havededicated themselves to the shirt.”Saracens wingers Chris Ashtonand David Strettle both earnedrecalls, while code-switcher SamBurgess was among seven uncappedplayers selected by Lancaster.cityam.com35IN BRIEFQPR appoint new chief executiven FOOTBALL: Queens Park Rangershave appointed Lee Hoos as their newchief executive. Hoos, who has beenemployed in a similar position atBurnley since 2011, will join the LoftusRoad club ahead of next season’scampaign in the Championship. The53-year-old American worked forSouthampton, Leicester and Fulhamprior to his appointment at Turf Moor.Southgate call for Chelsea starletn FOOTBALL: Uncapped Chelseamidfielder Ruben Loftus-Cheek hasbeen included in Gareth Southgate’sprovisional England Under-21 squadahead of this summer’s EuropeanUnder-21 Championship. Tottenhamstriker Harry Kane, who earned his firstsenior cap in March as a substituteagainst Lithuania, is also included.Worcester edge race for top flightn RUGBY UNION: Replacement NiallAnnett scored a last-gasp try asWorcester claimed a narrow 29-28victory at Bristol in the first leg of theChampionship final last night. Bristolcentre Gavin Henson is a doubt for thesecond leg next Wednesday aftersuffering an ankle injury.

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