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moueller1961

Cityam 2015-10-12

BUSINESS WITH PERSONALITY

MONDAY 12 OCTOBER 2015 ISSUE 2,481 CITYAM.COM

FREE

LET BATTLE

COMMENCE

IN

OUT

The referendum is still a

long way off, but the

campaign teams are

unveiling their big guns

NICK HEWER

ON LABOUR:

“SOMEBODY’S

GOING TO

HAVE TO

MOUNT A

COUP…” P24

LORD STUART ROSE – “I BELIEVE

BRITAIN IS STRONGER IN EUROPE”

FORMER PRIME MINISTER TONY BLAIR

HOPES BRITAIN STAYS IN THE EU CLUB

BARONESS KARREN BRADY – THE TORY

PEER JOINS PRO-EU BUSINESS VOICES

LAUREN FEDOR

HEAVYWEIGHT politicians and business leaders

have nailed their colours to the mast in the

debate over Britain’s EU membership by throwing

their support behind the “in” and “out” campaigns,

as referendum battle lines are drawn.

The campaign for the UK to remain in the EU,

Britain Stronger in Europe, officially launches

today. Led by former Marks & Spencer chief

executive Lord Stuart Rose, the group also counts

former chief secretary to the Treasury Danny

Alexander, Apprentice star Baroness Karren

Brady and RLM Finsbury founder Roland Rudd

among its board members.

The cross-party campaign has the backing of a

swathe of politicians, including Policy Network

chairman Lord Peter Mandelson, former Conservative

minister Damian Green and current Green

MP Caroline Lucas – not to mention former

Prime Ministers Tony Blair, Gordon Brown and

Sir John Major. It is widely expected that Prime

Minister David Cameron will take the helm of the

campaign closer to the In/Out vote. Cameron has

promised a referendum by the end of 2017, following

a period of renegotiation.

Meanwhile, a cross-party campaign for the UK

to leave the EU, Vote Leave, kicked off last week

with the support of the Conservative party’s top

donor Peter Cruddas and leading Labour backer

John Mills. Conservative MP Steve Baker, Labour

MP Kate Hoey and Ukip MP Douglas Carswell

have also said they are joining the campaign, as

are business leaders, including Patisserie Valerie

chairman Luke Johnson and hedge fund manager

Crispin Odey.

The official campaign period may be months

away – Cameron has yet to announce a vote date

– but the PM heads for Brussels on Thursday for

a two-day summit with European heads of state,

where he is expected again to make the case for

a renegotiation of the UK’s relationship with the

EU. Cameron discussed the UK’s reform agenda

over dinner at Chequers with German chancellor

Angela Merkel on Friday. Separately, the Treasury

Select Committee is soliciting evidence for what

chairman Andrew Tyrie called a “wide-ranging”

investigation “into the financial costs and benefits

of the UK’s membership of the EU”.

KATE HOEY MP – LABOUR POLITICIAN

JOINS FORCES WITH TORIES & UKIP

LUKE JOHNSON – ENTREPRENEUR IS

AMONG THE OUT CAMP’S BIG HITTERS

PETER CRUDDAS – TORY PARTY DONOR

THROWS HIS WEIGHT BEHIND BREXIT

FTSE 100 ▲ 6,416.16 +41.34 FTSE 250 ▲ 17,085.60 +82.11 DOW ▲ 17,084.49 +33.74 NASDAQ ▲ 4,830.47 +19.68 £/$ ▼ 1.531 -0.001 £/€ ▼ 1.348 -0.001 €/$ ▲ 1.136 +0.001


02 NEWS MONDAY 12 OCTOBER 2015

CITYAM.COM

ALL IN IT TOGETHER London mayoral candidates from all

parties join protest against proposed expansion of Heathrow

THE CITY VIEW

EU campaign makes

for strange bedfellows

GENERAL Sir Peter Anthony Wall GCB CBE DL is a former

head of the British army and a graduate of Cambridge and

Sandhurst. Megan Dunn is a graduate of Aberdeen

University and current president of the National Union of

Students. It’s hard to imagine the circumstances under which the

two would meet, let alone share a platform. They are, how ever,

just two of the names unveiled by the campaign to keep Britain in

the European Union. Britain Stronger in Europe launches today

and pledges to put forward a “patriotic case” for our continued

membership of the EU. In addition to the former military top

brass and the student campaigner, the In team includes the

backing of senior figures from business and politics. Stuart Rose,

whose previously eurosceptic rhetoric has already come back to

haunt him, joins City PR man Roland Rudd and TV personalities

Karren Brady and Jude Sarpong on the board of the In campaign.

The campaign is to be

commended for pulling

together a broad spread of

interests (Jude Kelly, artistic

director at the Southbank

Centre and Richard Reed,

founder of Innocent drinks

are also involved), but they

face a formidable campaigning machine taking shape around the

Out camp. Vote Leave, which launched at the end of last week, will

be coordinated by Mat thew Elliott who has masterminded a

number of campaigns, including the successful effort to reject the

Alternative Vote system in Britain’s last referendum. For both

camps, big-name backers and the support of the business

community will be seen as priorities. They will also both be

fighting to make the same case: that their position represents the

safer bet for Britain. The “inners” will play on the strength Britain

gains through mem ber ship while the “outers” will suggest that

nothing can be stronger than self-rule. As the two teams take

shape, Number 10 continues its efforts to renegotiate the terms of

our EU membership. Until the details of that proposal are seen by

the British people, the parade of famous faces and media-savvy

campaign launches have yet to be truly tested. Cameron appears

confident that he’ll get a good deal. Others are much more scep -

tical. Either way, check back in with the general and the National

Union of Students when we know what we’ll be voting on.

Follow us on Twitter @cityam

The In campaign is

to be commended

for pulling together

broad interests

IN A RARE show of political unity, candidates for London Mayor joined a protest at Parliament Square against the expansion of

Heathrow airport. Tory Zac Goldsmith (pictured addressing the crowd) said the expansion was “catastrophic”, while Lab our’s

Sadiq Khan called it “madness”. The Green’s Sian Berry, Lib Dem Caroline Pidgeon and Ukip’s Peter Whittle all joined the protest.

Cameron cracks down on

councils over housing

LAUREN FEDOR

PRIME Minister David Cameron is putting

pressure on local councils to

green-light plans to build new houses

today, as the government publishes its

new housing and planning bill.

Cameron will warn local authorities

that they must produce local plans for

new homes in their area within the

next two years – or central government

will step in.

According to government officials,

82 per cent of councils have already

published local plans for

housebuilding, but just 65 per

cent have put those plans in

motion.

Cameron will say today that

the country “need[s] a

national crusade to get

homes built and everyone

must play their

part”, adding: “Councils

have a key role to play in this by drawing

up their own local plans for new

homes by 2017. But if they fail to act,

we’ll work with local people to produce

a plan for them.”

The government is providing scant

details as to how any intervention

would work, but ministers are expected

to “shortly be bringing forward

further details of how best to intervene

when councils have failed”.

Cameron has vowed to deliver one

million new homes by the end of the

decade, including 200,000 so-called

starter homes for first-time homebuyers.

At the Tory conference in

Manchester last week, Cameron

unveiled plans to accelerate the

building of “starter homes”, saying

they would be part of

the wider “affordable

David Cameron wants to

get building

housing” programme.

He is expected to expand on that

announcement today, introducing a

new legal obligation on councils to

guarantee the delivery of starter

homes in local areas. Cameron will

also say that local authorities will be

able to bid for a share of a £10m starter

homes fund to be used for preparing

brownfield sites for redevelopment.

Communities secretary Greg Clark

said: “During the last five years we’ve

brought housebuilding back from the

brink, from its lowest levels since the

1920s, by reforming the planning system

so we now have over 240,000

homes receiving permission.”

A Local Government Authority

spokes man, said: “Councils are making

good progress with getting complex

and detailed local plans in place. The

most important thing will always be

getting them right and ensuring people

have a real say in developments.”

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL

ONLINE SHOPPING BOOM

BOOSTS RECORD VAN SALES

The boom in online shopping and

revived construction activity has led to

record levels of investment in vans and

trucks, as British businesses enlarge

their fleets. Finance for commercial

vehicles on lease and hire-purchase

agreements rose 10 per cent to £6.5bn

in the year ending in August, according

to the Finance and Leasing Association,

a trade body.

GOVERNMENT DIGITAL

AGENCY FEARS BUDGET CUT

The Government Digital Service, which

has saved millions for taxpayers and

been lauded as “an unsung triumph” by

the prime minister, is fighting to protect

WHAT THE

OTHER

PAPERS SAY

THIS

MORNING

its budget in the November spending

review. It is seeking investment for the

next stage of reforms amid fears that its

role may be downgraded, jeopardising

its ability to deliver further savings.

INVESTORS IN SECRET PLOT

TO SHAKE UP HSBC BOARD

HSBC is facing a behind-the-scenes

push for reform from a cadre of

institutional shareholders concerned

about the way the business is being run

and frustrated by the underper -

formance of Britain’s biggest bank. A

group of blue-chip fund managers is

trying to form a group under the

auspices of the Investor Forum.

SANTANDER TO DEFY

RINGFENCING RULES

Santander is planning to defy rules

intended to make banks safer by

insisting that much of the power over its

British business should remain in

Madrid.

WEETABIX SUFFERS SOGGY

SALES AS CEREAL DECLINES

Weetabix has suffered “the most

challenging year faced by the company

in a generation” amid shifting breakfast

and shopping habits. Owned by the

Chinese government company Bright

Food, it said its sales were down partly

because of the growth of discount

supermarkets such as Aldi and Lidl.

BLOW TO UK ENERGY PLANS

AS NEW GAS PLANT IN DOUBT

The Government’s plans to keep the

lights on have suffered a fresh setback

after it emerged that a £800m gas

power station due to be built by Carlton

Energy at Trafford in Greater Manch -

ester in coming years is now in doubt.

CHINA TIGHTENS OVERSIGHT

OF CAR-HAILING SERVICES

China plans to tighten oversight of

online private-car-hailing services, a

market in which Uber and its Chinese

rivals plan to spend billions of dollars to

generate potential growth. If strictly

enforced, the rules could deal a blow to

such companies, crimping their

carpooling services.

CENTRAL BANKERS URGE FED

TO RAISE RATES

Several governors of central banks have

told their American counterparts as

officials gathered in the Peruvian capital

for the International Monetary Fund’s

annual meeting: Please stop dithering

and raise interest rates already.


CITYAM.COM

Rocketing house

prices costing

London £1bn

LAUREN FEDOR

SOARING house prices and rocketing

rents are costing London’s economy

over £1bn each year, according to a

new report out today. The study – published

by a new campaign to increase

London’s housing supply called Fifty

Thousand Homes – says employers

across multiple sectors are facing

more competition and staff retention

problems as a result of the capital’s

housing crisis.

Citing new research conducted by

the Centre for Economics and Business

Research (CEBR), Fifty Thousand

Homes says that businesses are facing

a £5.4bn wage premium this year,

equivalent to £1,720 per person, in

order to compensate for employees’

housing costs.

The CEBR also projected that nearly

11,000 additional jobs could have been

created in the capital in 2015 if the

cost of housing was lower. The

researchers also said that “unnecessarily

high” housing costs are remov-

ing £2.7bn a year in consumer spending

from the capital’s economy, while

driving millions of workers outside of

London because they cannot afford to

live in the capital.

Using average salary data for various

occupations, the CEBR found that

workers such as shop attendants and

restaurant employees would have to

pay their entire pre-tax salary to rent

an average private home in London.

Social workers, librarians and postal

workers would have to pay more than

half of their salaries in order to afford

to live in the capital.

Commenting on the research, Scott

Corfe, an associate director at the

CEBR, warned that the cost of housing

“risks undermining the capital’s position

as a global centre of enterprise,

talent and success”.

Baroness Jo Valentine, chief executive

of the business group London

First, agreed, saying: “If we carry on as

things stand, in 10 years’ time London

will be a no-go zone for employees

across sectors and at almost all levels.”

London’s house prices could be costing the capital revenue, jobs and productivity

MONDAY 12 OCTOBER 2015

IN BRIEF

NEWS

03

ROYAL BANK OF SCOTLAND

SEEKING TO DECAPITALISE

Royal Bank of Scotland is planning a

new logo to symbolise the bailedout

bank’s retrenchment from

globe-straddling institution to a

slimmed-down operation in the

wake of the banking crash. Instead

of RBS, the bank’s logo will be the

more modest rbs, according to The

Guardian. The NatWest name will

also become more prominent in

England and Wales under the

proposals.

KWEKU ADOBOLI FIGHTS

DEPORTATION TO GHANA

Former UBS rogue trader Kweku

Adoboli is fighting against being

deported to Ghana after an

immigration tribunal decided he

should be sent back to his home

country. Adoboli lost $2.3bn (£1.5bn)

in unauthorised trading at UBS and

was released from prison in June

after serving out nearly half of the

seven-year sentence he was given.

OSBORNE RIGHT ON TAX

CREDIT CUTS, SAYS CLARKE

Former chancellor of the exchequer

Ken Clarke has said that current

chancellor George Osborne should

push ahead with reforms. The Tory

grandee, speaking on BBC One’s The

Andrew Marr show, said: “When

you’ve got yourself a mandate to put

things right, get on with it quickly

because you won’t keep popularity

very long. You’ve got to give time for

the effects to show and put up with

the difficulties, because obviously

everyone will protest if you do

anything that isn’t straightforwardly

popular.”


04 NEWS MONDAY 12 OCTOBER 2015

CITYAM.COM

Chestertons: Finance sector fuels

mini property boom in east London

LAUREN FEDOR

ESTATE agents are reporting a small

“property boom” in east London, with

prices rising by nearly 15 per cent in

some areas during the first half of

this year.

In a new report out this week,

Chestertons, an estate agent, points to

the success of London’s technology,

creative and financial sectors to

explain the jump in home values in

Canary Wharf, the Docklands,

Greenwich and Blackheath.

Prices rose in the first half of the

year by 2.6 per cent in Greenwich, 3.4

per cent in Canary Wharf and the

Docklands and 14.4 per cent,

according to Land Registry data cited

by Chestertons.

Bradley Bartlett, Chestertons head

of corporate and relocation services,

said: “This rocketing demand for

residential property is being powered

by London’s reinvigorated financial

sector. Areas such as Greenwich and

Blackheath, with plenty of outdoor

space and good transport links, are

becoming hotspots for workers

looking for a comfortable commute

to the City or Canary Wharf.

“With a significant number of

development sites between

Greenwich and Canary Wharf

currently under construction, we

wait to see what the longer-term

effects are on the rental sector.”

Chestertons says house prices are soaring in and around Canary Wharf

First-time home

buyers priced

out of UK cities

CHRIS PAPADOPOULLOS

RENTERS are looking further afield for

their first property as housing affordability

in cities begins to bite, research

from the UK’s largest estate agency

group reveals this morning.

To get on the first rung of the housing

ladder, 36 per cent of London

renters end up buying outside the

M25, up from 21 per cent in 2008, according

to Countrywide. They paid an

average of £93,000 less for their first

property than the value of the one

they were renting.

For the UK as a whole, more than

half of renters bought their first property

outside the town or city where

they were renting, up from 36 per cent

in 2008.

Countrywide said the price gap

between places where people can

afford to rent and where they can

afford to buy has widened every year

since the 2008 downturn. The trend is

most prominent in the south of England,

with prices across London and

the south east having increased 42 per

cent since 2012 while rents have only

gone up 19 per cent.

“It’s common for first time buyers to

make sacrifices to buy their first home,

so with price rises in recent years outstripping

income growth, more are

choosing to bypass rising prices by

looking further for cheaper areas,”

Johnny Morris, research director at

Countrywide.

“Renters are getting older, too. With

over-30s and families, the fastest growing

types of tenants, renters buying

their first home are getting older and

are more likely to do so at a later stage

in life.”

The news that first-time buyers are

waiting longer before buying and are

buying further from cities comes

despite a raft of policies such as helpto-buy

designed to improve first-time

buyer affordability.

Prime Minister David Cameron last

week unveiled plans to accelerate the

building of affordable homes by changing

requirements to build affordable

rental homes so that developers could

instead build homes that can be sold at

discounted rates. However, housing

charity Shelter estimates that London

“starter homes” would still require an

annual salary of £76,957 to buy them.

Chinese fund pulls plug on its

£1.7bn Royal Albert Docks project

BILLY BAMBROUGH

CHINESE fund China Minsheng

Investment has pulled out of a £1.7bn

redevelopment in east London,

further raising doubt about the

future of Chinese investment in the

capital.

The fund, set up last year with

backing from almost 60 private

companies, teamed up with Chinese

developer, Advanced Business Park

(ABP) in February. However, ABP

chairman Xu Weiping told the South

China Morning Post newspaper:

“China Minsheng has not yet become

our investor after signing the letter

of intent early this year.”

The announcement of a new

strategic investor would take place in

London next week, he said.

China Minsheng had promised

£1bn towards the planned develop -

ment. The ambitious project – whose

first phase was due to be completed

in 2018 – was described as building a

third financial centre for the British

capital on Royal Albert Dock.


CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

05

UK GROWTH COMES OFF THE BOIL

Scotland 49

West Midlands 54

Wales 53

31-MONTH LOW

8-MONTH LOW

North West 50.2

33-MONTH LOW

28-MONTH LOW

East Midlands 55.4

North East 50.2

27-MONTH LOW

4-MONTH LOW

UK 53.3

29-MONTH LOW

Yorkshire 53

31-MONTH LOW

11-MONTH LOW

East 54.1

26-MONTH LOW

56.6

Aim feeling the effects of Chinese

volatility as floats and M&A plunge

MADELINE RATCLIFFE

IPO AND M&A activity on Aim have

plummeted to their lowest levels

since the recession, as jitters over

China deter investors.

In the last quarter there were just

three mergers, down from 13 in the

same period in 2014, and 20 in 2010.

There was a similar drop in IPOs –

just seven companies floated on the

market over the past three months,

compared which 19 the year before.

Money raised by IPOs was down

£1.2bn, or 52 per cent.

One company that choose to take a

chance on the stormy markets over

the summer was model train brand

Hornby, which listed and raised

£15m in August.

Accountants UHY Hacker Young,

which commissioned the data, puts

the trend down to a far higher

exposure to mining companies on

Aim than in the main market, which

makes it far more vulnerable to

volatility as a result of China’s

slowdown and the resulting fall in

commodity prices.

Britain’s junior market has also

suffered from a spate of big

companies withdrawing their

services as mandatory nominated

advisers (nomads) fearing

reputational damage, and has seen

13 companies de-list in the quarter.

SOURCE: LLOYDS

South West 52.2

29-MONTH LOW South East 53.8

29-MONTH LOW

PMI Business Activity Index

53

Economy suffers

loss of growth

CHRIS PAPADOPOULLOS

THE UK saw a nationwide loss of

momentum in its economic growth

in September, according to survey figures

from a major bank released this

morning.

Lloyds Bank’s purchasing managers’

index – a survey of firms – dropped to

a score 53.8 in September from

August’s 55.7. While it is above 50 and

so implies business activity is expanding,

it marks the slowest growth since

April 2013. The survey follows Markit’s

purchasing managers’ index for the

dominant services sector which

scored 53.3 in September – it’s lowest

score for 29 months.

“Growth remains positive but has

continued to slow in September and

rounds off the weakest quarter of expansion

in over two years,” said Tim

Hinton, a managing director at Lloyds

Bank.

However, the slowdown in UK

growth is not expected to last or lead

to any significant worry over the

health of the economy. Separate survey

figures from accountants BDO

show business confidence is above its

long-term average.

The International Monetary Fund

expects the UK to grow 2.5 per cent

next year, according to its latest forecasts,

one of the fastest growth rates

among developed nations.

Over-65s can start to apply for

new top-up pension scheme

JAMES NICKERSON

APPLICATIONS for the new “top-up”

state pension scheme will start today,

which allows pensioners to boost

their retirement income by up to £25

per week for a one-off payment.

Existing pensioners and those who

reach retirement age before 6 April

2015, who are entitled to the state

pension are eligible for the new

scheme.

Pensioners can choose to top up the

state pension by between £1 and £25

a week, with the upfront cost

determined by how much an

individual wants to get each week

and how old that individual is when

they make the contribution.

Men born before 6 April 1951, and

women born before 6 April 1953 will

be eligible. The older the individual

is, the less they will have to pay in

exchange for an income boost.

A calculator has been made

available online, and there is an

18-month window to apply for the

pension top-up.


06 NEWS MONDAY 12 OCTOBER 2015

CITYAM.COM

SABMiller plays

hard to get in AB

InBev deal talks

MADELINE RATCLIFFE

WITH two days to go before Wednesday’s

5pm deadline for AB InBev to

“put up or shut up” in its bid to buy

rival brewer SABMIller, negotiations

between the world’s two largest brewers

have taken an increasingly combative

turn.

Shots were fired last week when

Anheuser-Busch InBev made its offers

public, and criticised the SABMiller

board for “refusing to meaningfully

engage with us.”

“How long will it be before shareholders

see a value of over £42 in the absence

of an offer from AB InBev?” said

chief executive Carlos Brito.

SABMiller chairman Jan du Plessis

volleyed, with a statement saying AB

InBev’s offer “very substantially undervalues”

the company, which he

described as “the crown jewel of the

global brewing industry,” and were

“deliberately designed to be unattractive

to many of our shareholders.”

The London-listed brewer, which

makes Peroni, hammered home its

point about generating long-term revenue

growth on Friday by announcing

it was extending its cost-cutting target

from $500m (£326m) by 2018 to more

than $1bn in 2020.

It was reported over the weekend

that AB InBev was considering increasing

its offer to £43-£44 a share, but City

A.M. understands that it won’t go

higher than that.

Sources close to the deal argue that

SABMiller investors will get a far better

deal with cash from AB InBev now,

rather than waiting for the fruits of

cost-cutting down the line.

They also say given AB InBev and 3G’s

impressive track record of takeovers

(3G is the Brazilian buy-out giant that

owns 22.7 per cent of AB InBev and earlier

this year oversaw the merger of

Kraft and Heinz), they are unlikely to

overreach with their offer.

Some media reported AB InBev is

ready to walk away, but most analysts

agree it will happen, the question is:

who will blink first?

Tesco was rocked last year by a £263m black hole in its profits – the clean-up is now on

Tesco being sued by group of US

firms over accounting scandal

CAITLÍN MORRISON

TESCO is being sued by a group of US

funds over the 2014 accounting

scandal which caused the super -

market’s share price to collapse.

In September last year, the

company revealed that its profits

had been overstated by £263m and

the aftermath saw shares drop to a

10-year low.

The Western and Southern Life

Insurance Company, Western &

Southern Financial Group, Integrity

Life Insurance and Touchstone

Strategic Trust filed a complaint in

an Ohio court last week. The

companies have accused Tesco of

“recklessly” disregarding facts and

“dramatically” overstating profits.

Tesco declined to comment

yesterday.

M&S to close 12

stores across

eastern Europe

CAITLÍN MORRISON

MARKS & Spencer is pulling out of

five countries in eastern Europe,

driven in part by tensions between

the west and Russia.

The company is leaving Croatia,

Bulgaria, Montenegro, Serbia and

Slovenia, with store closures set to

begin in January. The group plans to

close 12 stores in total by May 2016.

Chief executive Marc Bolland said

in 2014 that the aim was to open 250

stores overseas within three years.

However, last month, Patrick

Bousquet-Chavanne, M&S marketing

and international director, said this

time-frame was now unrealistic.

“The world has shifted,” he said.

“The Syrian situation was very

different from what it is today.

Putin had not invaded Ukraine and

China was growing at close to nine

per cent.”

An M&S spokesperson said last

night: “We continue to closely

manage our international business

and take decisive actions as

necessary to ensure our store

portfolio is fit for the future of

M&S. On this occasion this means

closing a handful of small stores in

the Balkans to enable us to firmly

focus on our other successful

businesses in eastern Europe.”


CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

07

UK private sector pay soars

CHRIS PAPADOPOULLOS

SALARIES in the private sector

are likely to be growing at their

fastest pace in 15 years, a think

tank says today.

The Resolution Foundation

believes private sector workers’

pay packets – once inflation has

been taken into account – will

have grown between 3.4 and 3.6

per cent in the three months to

August when official figures

are published this week.

This is likely to be faster than

in July 2002, when real pay rose

3.45 per cent and possibly even

May 2001 when it grew 3.54 per

cent.

While low inflation, driven

this year by a collapse in the

price of oil and commodities,

has boosted the figure, the Resolution

Foundation also says

that the increase in pay is due

to job creation shifting toward

higher payed roles. Managerial

roles have made up a growing

share of the workforce over the

last year, it said.

The government talked up the

figures.

“Today’s report by the Resolution

Foundation is further evidence

that our economic plan

is working.

“We have one of the fastest

growing advanced econ omies,

there are more people in work

than ever before and pay

cheques are rising strongly,” a

Treasury spokesperson said.

However, some were more cau-

London professional jobs market has slow start in autumn

CHRIS PAPADOPOULLOS

LONDON’S professional jobs

market came off the boil last

month, but there are signs

activity is picking up and pay

growth remains robust.

The number of jobs available

fell 14 per cent in September,

compared with August, a set of

data from recruiter Morgan

McKinley reveals today.

However, the number of jobs

4%

3%

2%

1%

0%

-1%

-2%

-3%

-4%

Mar ‘01

Private sector pay is predicted to have

climbed 3.6 per cent year-on-year in the

three months to August – the fastest

since March 2001.

Mar ‘02 Mar ‘03 Mar ‘04 Mar ‘05 Mar ‘06 Mar ‘07 Mar ‘08 Mar ‘09 Mar ‘10 Mar ‘11 Mar ‘12 Mar ‘13 Mar ‘14 Mar ‘15

tious about the forecast.

“While the immediate outlook

for pay is healthy, it will

be far harder to maintain this

‘catch-up’ growth once inflation

starts to return, especially

with the labour market still

under-performing in many key

areas,” said Laura Gardiner, a

policy analyst at the Resolution

Foundation.

“The relatively subdued level

of moving between jobs among

available is up 12 per cent on

the same period in 2014.

“August was a surprisingly

quiet month, which trickled

through to September,” said

Hakan Enver, operations

director at Morgan McKinley.

“After the holiday season,

things were unusually slow to

get going. We only started

seeing a pickup in activity

during the second half of last

month. This explains the

young people is a particular

cause for concern, as it can

harm career prospects and

their long-term earnings potential.”

The foundation also said

there would need to be a substantial

lift in pay growth once

inflation begins to rise in order

to keep up the pace. Inflation

was zero per cent in August

and the Bank of England is predicting

it will hit one per cent

monthly decrease in jobs.”

Worker confidence also

appeared to moderate. The

number of workers seeking

greener pastures dropped to

12 per cent to 13,440, yet

remains well above the 8,837

in September last year.

Pay growth was strong, with

those workers who switched

employers receiving an average

pay boost of 19 per cent. The

same figure was 20 per cent

sometime next spring.

“After a long wait, it’s good

news that many workers are

finally seeing real pay improvements,”

said Frances O’Grady,

general secretary of the Trades

Union Congress.

“However, earnings remain

some way off their pre-crash

position, too many selfemployed

workers are stuck at

the bottom, and there is no

public sector pay recovery.”

for workers in financial

services.

“Overall, it’s been a very

strong year for jobs growth,”

said Enver.

“On the back of such a

strong year, I expect growth to

flatten out towards the end of

this year.”

Enver said jobs growth may

also slow due to strong

volatility in financial markets

over summer.

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CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

09

VW’s Paul Willis set to be grilled by

MPs on impact of emissions scandal

MADELINE RATCLIFFE

VOLKSWAGEN UK’s managing

director Paul Willis is to face MPs in

the Transport Select Committee today

to answer questions on how the

company’s external investigation is

going and how it intends to rectify

the damage the emissions scandal

has caused.

The Society of Motor Manufact -

urers & Traders’ chief executive Mike

Hawes will also be questioned on the

wider effects for the UK’s car

industry. Volkswagen has said 1.2m

VW Group models in the UK have the

“defeat device”, including 400,000

Audi vehicles, 132,000 Skodas and

77,000 Seats.

BMW has also been dragged into

the scandal after reports its dieselengined

BMW X3 exceeds emissions

limits, which the company denies.

Last week, VW’s US chief Michael

Horn admitted that he had been

made aware of possible “emissions

non-compliance” a year ago and said

it would take at least two years to fix

the cars affected in the US and three

people have been suspended.

VW’s new chief executive Matthias

Mueller has said he expects to start a

recall of affected cars in January.

Willis will also face the Environ -

mental Select Committee on

Thursday.

Manufacturers want Local Enterprise Partnerships to have an enhanced role

Manufacturers

want more say

over devolution

LAUREN FEDOR

A LEADING industry group is calling

on the government to give businesses

more influence over the devolution of

powers to local authorities.

In a new paper out today, the EEF, the

manufacturers’ organisation, argues

that firms “must be given a greater

role in plans for devolution in England

if the process is to result in genuine localism

and a boost to private sector

growth, investment and job creation”.

Calling the current relationship

between businesses and local authorities

“weak”, the EEF wants the government

to give Local Enterprise

Partner ships (LEPs) an “enhanced role”

in the transfer of powers from the

national government to local authorities.

The group has also asked for an

amendment to the government’s cities

and local government bill, in order to

require an independent, business-led

inquiry into devolution plans.

EEF chief executive Terry Scuoler said

devolution “must not be seen as an end

in itself but a process aimed at tailoring

local business environments to

make them better places for business

growth”.

“Ultimately, local decision makers

and businesses will need a sustained

dialogue on how they can make their

local areas places in which businesses

can prosper,” Scuoler added.

Scuoler is not the first business

leader to demand that the government

include firms in devolution plans.

When chancellor George Osborne

announced last week that he would

give “power to the people” by handing

local authorities control over £26bn in

revenues from business rates, British

Chambers of Commerce (BCC) directorgeneral

John Longworth said it “[felt]

like a set of impositions rather than a

grand partnership”.

“It is highly questionable for the

chancellor to announce major changes

to business rates without consulting

broadly with the business communities

that pay them,” Longworth added.

Only £4,327 for HMRC despite

Facebook UK’s £105m revenues

LYNSEY BARBER

AND MADELINE RATCLIFFE

FACEBOOK paid just £4,327 in corpor -

ation tax last year – less than the

annual cost of travel for some people

commuting to London from Brighton

each day.

The social media giant rewarded its

UK staff with an average of £210,000

in pay and bonuses, and spent £35.4m

on shares for 362 London employees,

bringing the division’s losses to

£28.5m, significantly reducing its tax

bill, according to its latest reports.

UK revenues hit £105m in 2014,

more than double the previous year.

Most of the company’s finances go

through its European headquarters in

Ireland where it is able to minimise

taxes through the “Double Irish”

loophole, whereby income reported in

foreign subsidiaries of Irishheadquartered

firms is not taxed by

the Irish government.

George Osborne is expected to crack

down on such tax avoidance practices

in his Autumn Statement.

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10 NEWS MONDAY 12 OCTOBER 2015

CITYAM.COM

SMEs could contribute £2.9bn to

economy with access to funding

MADELINE RATCLIFFE

THE UK’S small businesses are

being stymied by a lack of funding.

Reduced lending since the

recession from high street banks

has slowed small business growth

and could have cost the UK

economy as much as £2.9bn of

potential turnover in the past five

years from SMEs, according to new

data from Funding Options, an

alternative finance supermarket.

Overdraft facilities for SMEs

have been withdrawn at a rate of

£5m per day since 2011, hindering

cash flow and business growth.

According to its research,

regulations requiring banks to

maintain higher capital reserves as

security when lending have

discouraged banks from lending to

small business, and challenger

banks are not yet established

enough to make up the deficit.

The figures show companies

with high levels of borrowing are

able to grow and increase their

revenues faster than those that do

not borrow as much.

Businesses where net debt is

more than 50 per cent of its assets,

grew 15.7 per cent over the past

five years, compared with those

companies with less than 10 per

cent debt, which grew 14 per cent.

Whistleblowing

rises over small

firms pension law

BILLY BAMBROUGH

THE NUMBER of whistleblowing reports

made to the pensions regulator has

jumped by 33 per cent over the past year

to 2,000, up from 1,497 the year before,

according to research from law firm

Clyde & Co.

The sharp increase has raised fears that

many small- and medium-sized enterprises

(SMEs) could face action by the pensions

regulator over upcoming autoenrolment

deadlines, which are staggered

depending on company size.

The vast majority – 97 per cent – of UK

employers have yet to reach their compliance

dates. Mark Howard, head of pensions

at Clyde & Co, says: “The regulator’s

most frequently used power is to issue a

compliance notice – an order to take steps

to comply with the legislation.

“However, that should not be seen as a

soft touch as failing to comply can lead to

a daily fine.”

He added: “Given that the pensions regulator

appears to be ramping up its efforts

to crack down on non-compliance,

SMEs need to make sure they plan well in

advance to avoid any enforcement action.”

The number of actions used against employers

rose nearly 50-fold to 247 in the

first quarter of last year, from just five the

year before. Since 2012, businesses have

had to prepare to enrol all eligible employees

into a pension scheme. The deadline

for firms with fewer than 30 workers

falls in the next 16 months.


Journey time shown represents a typical Monday to Friday journey.

Rugby fans help

push spending

growth upwards

CAITLÍN MORRISON

SPENDING growth picked back up in

September as pubs, off licences,

sports shops and supermarkets took

in more cash from fans gearing up for

the Rugby World Cup.

Spending on the clothing, entertainment

and grocery sectors all performed

strongly and lifted overall

spending growth by 0.7 percentage

points compared with the previous

month, according to new data from

Barclaycard.

The research shows that spending

on clothing was up by 8.1 per cent

year-on-year, up sharply on the 1.1 per

cent growth in August, as well as by

9.9 per cent in sports shops, up from

three per cent.

Entertainment spending grew by

12.8 per cent year-on-year, as pub

spending increased 11.6 per cent and

restaurants 12.6 per cent.

Overall spending for the third quarter

of this year was 3.8 per cent, down

from 4.5 per cent in the second quarter

– its highest in two years. Falling

levels of growth in most categories

over the penultimate quarter of this

year suggest that households have

reined back on some of this extra

spending in advance of Christmas.

September’s spend may also have

been impacted by factors such as the

later launch of this year’s iPhone

model, the 6s, which caused spending

in electronics stores to fall 4.6 per

cent on the back of a 2.4 per cent

decrease in the number of transactions.

“While the Rugby World Cup helped

spend growth recover in Sep t ember,

it remained below both the level of

increase we saw last year and the average

level we’ve seen this year,” said

Chris Wood, chief operating officer at

Barclaycard.

“After a record-breaking second

quarter, which saw the highest level

of growth in two years, consumers

seem to be pausing for breath before

the run-up to Christmas begins.”

He added: “Looking ahead to the

last quarter, a majority of consumers

say they feel positive about their

finances and plan to spend more on

non-essentials, meaning it could be a

good end to the year for many retailers.”

Paris

Berlin

Barcelona

Amsterdam

Milan

London

Sydney

Melbourne

Sao Paulo

LA

New York City

San Francisco

Milan

Barcelona

Amsterdam

LA

Melbourne

Sydney

Sao Paulo

Paris

Berlin

San Francisco

London

New York City

Runner’s Daily Commute in 12 Major Cities

average miles

5.3 miles

5.3

4.9

4.9

4.9

4.5

4.5

4.5

4.5

4.5

4.4

4.3

19.8 miles

17

16.5

12.2

11

11

10.8

10.5

10.3

9.8

8.8 9.3

Cyclist’s Daily Commute in 12 Major Cities

average miles

Tuesday’s the best for a fitness

commute but London lags Paris

LYNSEY BARBER

TUESDAY is the most popular day for

Londoners to cycle or run to work acc -

ording to new data, and it is also the

most popular day for runners in 12

other major cities, except for Sao

Paulo.

Fitness fans who avoid public

transport by cycling to work have an

average commute of 9.3 miles, while

those who run to the office cover 4.5

miles each day, according to data

from fitness tracking app Strava.

Cyclists and runners in London are

by no means slogging the furthest

compared to other major cities. Paris

takes the top spot when it comes to

the furthest running commute,

covering 5.3 miles on average each

day. Meanwhile, cyclists in Milan are

covering 19.8 miles by bike on their

commute – more than any other city

in the world

IN BRIEF

THIAM AIMS FOR BILLIONS

OF CREDIT SUISSE CUTS

Swiss bank Credit Suisse could cut up

to Sfr2bn (£1.36bn) in costs as part of

a revamp that new chief executive

Tidjane Thiam will announce this

month, the Schweiz am Sonntag

paper reported yesterday. Without

naming its sources, the newspaper

said heads of big departments had

been told to slash spending by seven

to 10 per cent, which extrapolated to

the group would mean savings of

Sfr1.5bn-Sfr2bn. “This is the order of

magnitude that you have to be

prepared for,” the source said.

JAPANESE RETAILERS

DISPUTE SPENDING RISE

Japanese retailers are disputing

claims that there was a 2.9 per cent

gain in household spending in

August – the first year-on-year rise in

three months. “Consumer spending

has ground to a halt,” said Noritoshi

Murata, the president of retailer Seven

& i Holdings. “There are a lot of

concerns about the global econ omy

and not many positives for cons -

ump tion. Weak spending could

continue into the second half of the

fiscal year.”

LUFTHANSA TO LAUNCH

NEW CLASS FOR MID-EAST

Lufthansa will launch its premium

economy service into the Middle East

by November, it said yesterday,

aiming to go head-to-head with Gulfbased

rivals. The German carrier has

often been at the fore front of a spat

between older airlines and their Gulf

rivals such as Emir ates, Etihad and

Qatar Airways. It has already rolledout

the service, part of a €3bn global

investment, to American and Asian

routes and aims to have it on all

intercontinental destinations by 2016.


CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

13

UK household

spending has a

soft September

CHRIS PAPADOPOULLOS

UK SHOPPERS tapered their spending

last month, according to new figures

published today by a credit card

giant.

Visa’s consumer spending index –

which looks at total spending, not

just that from credit cards – showed

spending lifted 1.8 per cent in September

compared with the same

month last year.

Despite the gain, the pace of the

spending climb was less than the

average growth of 2.4 per cent seen

throughout the year so far.

The lull in spending growth coincides

with some softer economic

data from the UK, such as Markit’s

business surveys, but shoppers are

not expected to stay timid for long.

“Record low interest rates and stagnant

price trends continue to boost

spending power and consumer confidence,

and are expected to support

a further rise in expenditure as we

head into the final quarter of 2015,”

said economist Annabel Fiddes from

Markit, which compiles the data.

Spending growth was led by recreation

and culture which was up 7.8

per cent year-on-year and clothing

and footwear, which was up 6.2 per

cent. Cash spent on hotels, restaurants

and bars jumped 6.6 per cent.

Online spending outpaced face-toface

spending, which declined.

“Consumers maximised the last of

the summer and the camaraderie of

the major sporting events in September,

with spend at pubs and on entertainment

roaring ahead. September

was in fact the best month for the

entertainment sector in terms of

sales growth since last August,” said

Kevin Jenkins, UK and Ireland managing

director Visa Europe.

“Clothing retailers were also winners

in September. Poor weather in

the second half of the month

encouraged consumers to ready

themselves for the beginning of autumn

while also buying last-minute

school uniforms for the new term.”

BIG IN JAPAN Boris Johnson is leading a

trade trip to Japan to promote fintech

MAYOR Boris Johnson is heading east to promote investment in the capital’s fintech

and life sciences sectors on a new trade trip to Japan. He is seeking to tie up new

deals in a bid to increase the £950m pumped into the capital last year by Japan.

Anti-smoking

MPs in call for

more fag taxes

LYNSEY BARBER

A GROUP of MPs wants the tax rate on

cigarettes and other tobacco products

to be increased to reduce the number

of people smoking and raise £100m

for the Treasury to spend on antismoking

projects.

The All Party Parliamentary Group

(APPG) on smoking and health has

suggested tobacco tax be raised to

five per cent from the current rate of

two per cent above inflation.

Chairman of the cross-party group

and Tory MP for Harrow East Bob

Blackman told the BBC: “Smokers

don’t just die early, they suffer many

years of disease and disability before

they do, putting pressure not just on

the NHS, but additional disability and

social care costs and reduced income

tax. Every pound invested over the

next five years could deliver £11 to

the public purse.”

But the Tobacco Manufacturers’

Association criticised the proposals

for being “economically illiterate”

and “counterproductive”.

“That’s because tax on tobacco has

increased by over 40 per cent over the

last five years, making UK tobacco the

most expensive in Europe,” said the

association’s director general Giles

Roca.


14 NEWS MONDAY 12 OCTOBER 2015

CITYAM.COM

THECAPITALIST

EDITED BY EDITH HANCOCK

Companies can buy

letters to protest TfL’s

Uber crackdowns

ARE YOU team TfL or team Uber? Things

have been hotting up between the two

transport forces this month. After TfL

proposed restrictions on the rival car

hire service such as a minimum waiting

period, Uber have hit back with their

own petition.

Now, Propeller PR chief Martin Loat is

giving Londoners the chance to have

their own say on the scheme with an

app that allows you to type and send letters

without ever using a postbox. PRs at

Propeller will use new mailing app and

website mrpostmanapp.com to help

Londoners enter the debate on taxis

with a two-way petition launching later

this week.

Loat told The Capitalist

that the site

will allow anyone

to send a

letter (to TfL’s

chief operating

officer)

that looks

like it took ages, but the process takes

seconds. “Our platform allows Londoners

to send traditional signed

paper letters via the Royal Mail,

straight from their smartphones and

while they’re on a train to TfL.”

Users of the app will have the

option of sending a ready-drafted letter

to TfL whatever their view during

the 12-month consultation period.

While the first 100 letters sent from

the app are free, Loat said that some

companies could use the app for their

own interests and “sponsor” a few

thousand letters in favour of lifting

Uber’s restrictions.

He said: “The letters will start from

around 78p each. Multiply that by

100 and that’s still a decent saving

for a company that uses Uber’s

car hireservice.” Sneaky!

Are you team TfL

or team Uber?

Broker Wilkinson even

produced some high-quality

photos for the upcoming race

Broker gets on his bike with a

little help from BBC’s Ben Fogle

THE AVERAGE charity challenge or

fun run usually follows the same

routine: a JustGiving page is set up,

maybe a website, a few tweets and

maybe an inspirational blog to

conclude.

However, one City broker has raised

the bar after getting an end orsement

from BBC presenter Ben Fogle, wellknown

for his adventures from

trekking the Sahara desert to

running marathons in the Dolomites,

for his own charitable excursion; a

1200km cycle from Brisbane to

Sydney over five gruelling days.

Wilkinson, who was in the middle

of a 60km cycle when The Capitalist

caught up with him, said that he met

Fogle last week, who was “in cred ibly

supportive” of his efforts to raise

money for Macmillan next month,

and agreed to an interview in a

documentary Wilkinson is recording

all about the challenge. Swish.

Got A Story? Email

thecapitalist@cityam.com

SHAKEN, STIRRED – OR

POWDERED BRAINS?

IF YOU’RE looking for an eccentric,

halloween-themed way to splash out on

booze this month, Borough Market is the

place to be. Architectural foodsmiths at

Bompas & Parr have come up with an

event that honours the (apparently) ageold

tradition of drinking from a human

skull. The Skull Punch, launching on 19

October, is drunk from a real human skull

obtained through a “reputable” antiques

dealer. Inside is a haunting concoction of

Trap pist ale, rare monastic gentian

liqueur and Buckfast combined with skull

lychen; a kind of moss that historically

grew on skulls and was powdered and

snorted to treat ailments such as

nosebleeds. Not exactly the most

appetising-sounding drink on the

market…


CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

15

Oil firm Ineos goes on a

shopping spree for

DEA’s North Sea assets

BILLY BAMBROUGH

INEOS has agreed to purchase all of

the UK North Sea gas fields owned by

Russian billionaire Mikhail Fridman’s

DEA Group.

The deal comes only weeks ahead of

a deadline set by the government in

April for DEA owner investment firm

LetterOne to dispose of the oil and

gas fields it bought from German

utility RWE.

The terms of the sale have not been

disclosed.

In a statement, Ineos chair -

man Jim Ratcliffe said: “INEOS

has been very open about its

intention to make strategic investments

in the North Sea and

this acquisition is our first

step in fulfilling

this goal.”

The deal comes amid a protracted

slump in global oil prices that has

lead to cutbacks in the North Sea and

cast a shadow over the fate of commodities

groups.

The sell-off of the gas fields was

ordered by Ed Davey, the then-Energy

Secretary, in the wake of sanctions

against Russia due to the crisis in

Ukraine.

There was concern further sanctions

against the country could jeopardise

the continued operation of the

assets.

Ineos also owns a number of

shale gas licences in England

and Scotland and is investing

over £500m bringing US shale

gas to the UK and to Norway.

Ineos chair Jim Ratcliffe

backed the DEA deal

Ageing North Sea drilling equipment is increasingly expensive to maintain for firms

Private equity

firms eye £1bn

Travelodge deal

CAITLÍN MORRISON

HOTEL chain Travelodge has report -

edly caught the eye of several private

equity firms and could be sold for

£1bn instead of floating on the stock

market.

Advent International is interested

in buying the group, as well as a

number of other firms, according to

the Sunday Times.

Deutsche Bank was appointed in

July to advise Travelodge’s owners,

investment bank Goldman Sachs and

hedge funds Avenue Capital and

GoldenTree Asset Management, on a

potential sale or flotation.

Chief executive Peter Gowers said

in April: “There’s probably never

been a better time to run a value

hotel business than now, because the

value hotel sector is huge. Britain is

becoming a nation of value

shoppers.”

Travelodge declined to comment

last night.

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The goal is

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SINGLE-MINDED AS

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THIRD WORLD

CHAMPIONSHIP IN

FORMULA ONE

PAGE 31

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16 NEWS MONDAY 12 OCTOBER 2015

UK tops G20 in

greenhouse gas

reduction target

BILLY BAMBROUGH

BRITAIN has come out on top among

the G20 group of countries for reducing

greenhouse gas emissions over

the past year, analysis by PwC has

found.

Clocking up a record-breaking 10.9

per cent fall, the reduction is better

than any reported by PwC in the past

seven years.

The news follows cuts to green

energy government subsidies over the

past few months that have caused

fears about the stability of regulation

and incentives to drive a transition to

a low carbon economy.

The report found that since 2000,

the overall rate of carbon emissions in

the UK per $1m of GDP reduced by 3.3

per cent a year on average since 2000,

higher than Germany, France, the US,

China and the EU average.

Jonathan Grant, sustainability and

climate change director at PwC, said:

“While the annual record for the UK

is headline grabbing, it’s the UK’s con-

sistent performance since 2000, reducing

carbon intensity by 3.3 per cent on

average a year that is notable. It’s critical

to, at a minimum, maintain it,

and ideally increase it.”

According to PwC, the biggest driver

of the fall in emissions was a reduction

in coal consumption of just over

20 per cent, taking total coal consumption

to less than half of its 1990

level.

Governments around the world are

increasingly warning that the effects

of climate change could impact on the

global economy.

Governor of the Bank of England

Mark Carney has cautioned that climate

change will lead to financial

crises and falling living standards

unless more is done to cut emissions.

“Challenges currently posed by climate

change pale in significance compared

with what might come,” Carney

told business leaders. He pointed to

the fact that since the 1980s, the number

of registered weather-related loss

events had tripled.

Despite protests, the UK alone could stand to benefit from TTIP by £10bn per year.

Protestors lash out at world’s

largest trade plan in Berlin

BILLY BAMBROUGH

A QUARTER of a million people took

to the streets of Berlin on Saturday to

protest against a planned free trade

deal between Europe and North

America.

The rally, organised by various

environmental groups, charities and

opposition parties, said 250,000

people took part in the march.

However, police estimates of the

numbers were around 100,000.

If a deal is reached, the Trans atlan -

tic Trade and Investment Partnership

(TTIP) would create the world’s largest

free-trade zone by harmonising

regulation between the EU and North

America. Critics though say it will

lower food safety, labour and

environmental standards, and is

biased towards large corporates.

CITYAM.COM

Report: Carbon

dioxide boosts

crop production

RAVENDER SEMBHY

CARBON dioxide is “hugely

beneficial” for humankind,

boosting global crop production to

the tune of $140bn (£91.4bn) per

year, according to a radical new

report out today.

The Global Warming Policy

Foundation, which analyses the

financial implications of responses

to climate change, is calling for a

reasses sment of carbon dioxide,

which he believes has been given

too much bad press – its new

report says.

Its author Indur Goklany said:

“Carbon dioxide fertilises plants,

and emissions from fossil fuels

have already had a hugely benef -

icial effect on crops, increasing

yields by at least 10-15 per cent.

This has not only been good for

humankind but for the natural

world too, because an acre of land

that is not used for crops is an acre

of land that is left for nature.”

Dr Goklany added: “Unlike the

claims of future global warming

disasters these benefits are firmly

established and are being felt now.

Yet despite this the media overlook

means that the good news and the

public remain in the dark”.

GOOGLE PLAY?

CHAIN REACTION CYCLES?

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CITYAM.COM

MONDAY 12 OCTOBER 2015

NEWS

17

Drumm arrested in Boston

JON HERSKOVITZ

FORMER Anglo Irish Bank chief

executive David Drumm, who was

seen as a culprit in Ireland’s banking

crisis, was arrested on Saturday in

Massachusetts by US marshals on an

extradition warrant, according to the

US Attorney’s office in the state.

Drumm will remain in custody

until his hearing in federal court in

Boston tomorrow, said a US

Attorney’s office spokeswoman.

Irish national broadcaster RTE

reported in January that Ireland had

sent an extradition file to the US

government.

The DPP, which has brought other

Anglo Irish executives to trial,

requested in July that a

parliamentary inquiry into Ireland’s

banking crisis not publish a

statement Drumm had issued to it.

Drumm stepped down from the

one-time stock market titan in

December 2008, a month before it

was nationalised.

He filed for bankruptcy in his new

home of Boston two years later, owing

his former employer more than $11m

(£7.18m) from loans he had been

given. A Boston court dismissed his

application as not remotely credible

earlier this year, saying he had lied

and acted in a fraudulent manner in

his bid to be declared bankrupt in the

US.

Bailing out the failed bank

Drumm ran from 2005 to 2008 cost

Irish taxpayers around €30bn

(£22.25bn), close to one-fifth of

annual output.

Reuters

David Drumm had an application for bankruptcy turned down earlier this year

TURKISH GRIEF The blame game begins

after more than 125 people die in bombing

TURKEY says it believes Islamic State was behind Saturday’s suicide bombing in

Ankara that killed up to 128 people. However, President Tayyip Erdogan’s opponents

blamed him for the attack. Thousands of people gathered yesterday near the scene

of the attack at Ankara's main railway station, chanting: “Murderer Erdogan”.

Sports Direct chief executive

charged over USC redundancies

PAUL SANDLE

DAVID Forsey, chief executive of

British retailer Sports Direct, has been

charged in criminal proceed ings

related to the sacking of workers at a

warehouse belonging to the group’s

USC fashion chain.

Britain’s Insolvency Service confir -

med on Friday that criminal

proceedings have commenced against

Forsey, who was the sole director of

West Coast Capital, a Sports Directcontrolled

company that owned the

warehouse in Scotland, as well 28

stores of its USC fashion chain.

West Coast Capital collapsed in

January and about 50 staff at the

warehouse in Ayrshire, Scotland were

dismissed with only 15 minutes’

notice.

The Insolvency Service said: “We

can confirm that criminal proceed -

ings have been commenced against

David Michael Forsey.

“He is charged with an offence

contrary to section 194 of the Trade

Union and Labour Relations

[Consolidation] Act 1992. We will not

be commenting until the criminal

proceedings have been concluded.”

Under British employment law, the

dismissal of between 20 and 99

people requires a consultation of at

least 30 days. Chesterfield Magis -

trates’ Court is due to hear the case

on Wednesday. The maximum pen -

alty for the offence is £5,000. Reuters

www.theirishpostawards.com

w


18 FEATURE MONDAY 12 OCTOBER 2015

CITYAM.COM

MONEY TRANSFER

If you use your

high street bank

to make

payments

overseas, then

you may be

paying more than

you bargained for

THERE are a number of

reasons people need to send

money overseas. Common

examples include buying

and selling international

property, or sending money home if

you are working overseas. An

increasingly connected world means

that more and more businesses are

conducting cross-border transactions

too.

Whatever the reason though, many

of us are unaware that using our

bank could be costing us more than

we expected. This is because of the

typically unfavourable exchange rates

that many banks offer.

On the other hand, using a foreign

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transfers could save you a

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the reason that City A.M. is partnering

with foreign exchange experts,

moneycorp, to bring our readers City

A.M. International Payments. This

service provides you with access to

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what you can get from many banks

by around 3-4%. If you consider a

transfer of £100k, that could equate

to a saving of up to £4,000.

Even for the most financially savvy,

the ups and downs of currency

markets are tough to preempt and

movements can catch us off guard.

Imagine you were buying a property

in Europe around the time of the UK

elections. On 27th April, £1 bought

you around €1.40. At that rate, a

€250,000 property would’ve been

priced around £178,500 in sterling

terms.

But just one (often unexpected)

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leading up to the election the pound

Save money on your overseas

transfers and payments

weakened due to increased fears of

another hung parliament, and on 6th

May, £1 would have bought you just

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With the right guidance though,

there are things that can be done to

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This is attractive to many of

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exports for their revenue.

In April, British American Tobacco

announced that a drop in sales was

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You will receive access to

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Last year moneycorp conducted 9.2

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City A.M. International Payments

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“I have recently switched to using moneycorp”

CITY A.M. has teamed up

with foreign exchange

experts moneycorp to

launch City A.M.

International Payments.

Since its inception, many City A.M.

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Mr. Martin decided to change his

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International Payments. He runs

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‘I had been using my primary

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but grew frustrated at the poor

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I called moneycorp after reading

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euros.’

Most people use high street

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waived online for City A.M. readers

I found moneycorp

easy to deal with -

their team was

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and rise to a maximum of £15 for

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Mr. Martin added: ‘I was pleased

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£ For competitive rates and the

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transfers, call free on 0808 115 3718


CITYAM.COM

MONDAY 12 OCTOBER 2015

MARKETS

19

CITYDASHBOARD

YOUR ONE-STOP SHOP BROKER

VIEWS AND MARKET REPORTS

In association with

LONDON REPORT BEST OF THEBROKERS NEW YORK

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

Inflation likely

to show minute

rise above zero

INFLATION data will be in the Tristel, YouGov and LVMH.

spotlight this coming week. The Tomorrow: Bellway, Michael Page,

consumer price index in the UK, DotDigital Group, Nanoco Group

released tomorrow, is expected to and Proactis Holdings.

pick up in September to 0.1 per Wednesday: Brown (N.) Group,

cent year-on-year, following a drop to

zero per cent in August.

The Bank of England, which is

Con nect Group and Domino’s Pizza.

Thursday: Booker Group, Pure

Wafer and WH Smith.

targeting two per cent inflation, said

the outlook for CPI in coming

months looked weaker than it

FTSE

previously thought, according to the

6,400

meeting minutes of its 8 September

policy meeting.

6,350

The central bank, which is taking 6,300

inflation into close consideration in 6,250

determining the timing of an interest

6,200

rate hike, said CPI was unlikely to

6,374.82

reach one per cent until next spring. 6,150

8 Oct

There is also a slew of companies

reporting this week, among them

Today: Tissue Regenix Group,

6,100

2 Oct 5 Oct 6 Oct 7 Oct 8 Oct

GREENE KING

815

810

805

800

795

5 Oct

Greene King, the 200-year-old Suffolk brewery, needs to cut its combined brand

portfolio of 16-17 to six or seven to ensure medium-term success, analysts at

Canaccord Genuity said. They reiterated their “buy” recommendation, but lifted

their target price of 850p to 1,050p. Following a recent takeover of Spirit PubCo,

benefits from the acquisition could rise to £40m, they said.

HAYS

160

155

150

145

140

135

5 Oct

P

P

9 Oct

793.50

6 Oct 7 Oct 8 Oct 9 Oct

6 Oct 7 Oct 8 Oct 9 Oct

9 Oct

135.90

The outlook for Hays, a big UK recruiter, has become more uncertain, said analysts

at Barclays, due to a marked slowdown in the UK. They lowered their target price to

170p from 185p, but kept their “overweight” stock rating for the company. This was

due to the fact the analysts believe the economies of Europe and the UK will

continue to deliver growth – which is good news for the jobs market and recruiters.

Data will show

Fed’s appetite

FIGURES out this week will give

another indication regarding the

appetite of the Federal Reserve to

raise rates from historic lows before

the end of the year.

Producer prices for last month,

published on Wednesday, are

expected to remain negative, down 0.8

per cent year on year.

September inflation data, to be

released on Thursday, are expected to

show US consumer prices falling back

into deflationary territory.

Retail sales figures for September are

also out on Wednesday, and industrial

production data are released on

Friday. While annual growth at the

start of the year was close to four per

cent, Aug ust showed growth of just

over one per cent.

Financial firms JP Morgan Chase,

Bank of America, Well Fargo,

Citigroup and Goldman Sachs Group

are all releasing earnings figures this

week.

Unusually, Goldman Sachs plans to

publish its quarterly earnings

statement through its website and its

Twitter feed.

CITY MOVES WHO’S SWITCHING JOBS Edited by Tom Welsh

CARTER JONAS

The property consultancy has

appointed Darren Yates as

head of research. He was

formerly a partner at Knight

Frank, where he worked as

head of global capital markets

research. Yates has over 20

years’ experience, and has also

worked at Cushman and

Wakefield, and Management

Horizons Europe.

MAREX SPECTRON

Andrew Strickland has been appointed co-head of coal

at the commodities broker. He joins from Griffin

Markets, where he was a founder partner and

managing director of options. Strickland has also held

roles at Icap, where he managed teams broking UK

power, carbon emissions and financial coal swaps.

KAMES CAPITAL

The investment management firm has announced two

appointments to its fixed income team. Juan

Valenzuela joins as a fixed income manager from

Alliance Trust, where he was an investment manager

on the Alliance Trust Dynamic Bond fund. Valenzuela

has also held roles at Scottish Widows Investment

Partnership. Timothée Pubellier joins as a trainee fixed

income manager from UBP, where he was a portfolio

manager with responsibility for risk, portfolio

monitoring and FX hedging.

HOLMAN FENWICK WILLAN

Stephen Marais has been appointed to the asset

finance practice of the law firm. He joins from Ince &

Co. Marais specialises in banking and asset finance,

and has particular experience in ship finance,

commodity and trade finance, and aviation finance

transactions.

INTERACTIVE INVESTOR

The investment firm has announced two

appointments to its executive committee. Alex Kovach

joins as chief commercial officer from Camelot, where

SIGN UP TO RECEIVE THE DAILY CITY MOVES

EMAIL SERVICE AT CITYAM.COM/CITY-MOVES

he has been managing director of Camelot Global

Services since 2010. Kovach has also held senior roles

at Ladbrokes. Gary Shaw joins as director of operations

from RBS, where he was most recently head of

operations for its mortgage business.

FIELDFISHER

The law firm has announced the appointment of

Matthew Hinxman as partner in its finance practice. He

joins from Baker Botts, where he has been special

counsel since December 2012. Hinxman is a project

finance specialist, with a particular focus on energy

and natural resources-related work in Eastern Europe

and Africa. He has also worked at Norton Rose

Fulbright.

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

TIGHT FIXED FTSE

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20 OPINION MONDAY 12 OCTOBER 2015

FORUM

Obama’s free trade triumph

could prove all too fleeting

WELL, he did it. Barack

Obama’s presidency is

ending with a bang

and not a whimper. The

just concluded Trans-

Pacific Partnership (TPP) deal between

12 countries ringing the Pacific

Ocean amounts to the most significant

free trade accord in memory.

First, there is the economic heft of

the signatories to consider: they

account for fully 40 per cent of today’s

global economic output. Given that

global free trade deals through the

World Trade Organization (WTO)

have ground to a halt, TPP is by a long

way the most important realisable

trade deal on offer.

Second, there are real world economic

benefits for all. It is estimated

that the deal will add 0.5 per cent to

US economic growth over the next

few years, which given our straitened

times is nothing to sneeze at. In all,

TPP ought to add $285bn to global

GDP by 2025.

By tying the world’s largest

economy (the US) and the planet’s

third largest economy (Japan) more

closely together, TPP is a real shot in

the arm for Abenomics, Prime

Minister Shinzo Abe’s ambitious

effort to re-launch Japan’s long-moribund

economy, using a weaker yen to

foster real growth for Japanese

exporters. For smaller states, TPP

serves the cause of structural economic

reform, in that it mandates the

breaking up of domestic protectionist

cartels in places such as Vietnam and

Malaysia.

All these benefits are real and laudable,

some of the few recent

glimmers of hope for a world economy

desperately searching for future

GEORGE Osborne’s appointment

of Andrew Adonis, a

former Labour transport secretary,

to head up a new

National Infrastructure

Commission last week was highlighted

by many as a political masterstroke. To

some commentators, this is a reinforcement

of the idea that it is the

Conservatives who are on the vaguelydefined

centre ground. But the economic

argument behind this decision

is far more significant.

Barely can a week go by without us

seeing pictures of the chancellor in his

unofficial uniform of hard hat and fluorescent

jacket, usually followed by the

declaration that the UK must become

a “nation of builders” if we are to succeed

in the “global race”.

Infrastructure, specifically greater

investment, is clearly at the forefront

of his, and the government’s, thinking.

The City’s view is that infrastructure

development is absolutely integral to

our future success, our sustainability,

engines of growth. But TPP is not at

base about its economic specifics.

Instead, it is the primary geopolitical

expression of the White House’s Pivot

to Asia, the practical embodiment of

Obama’s signature foreign policy initiative.

The theory behind the Asia Pivot

has undeniable intellectual merit.

Under President George W Bush –

with his endless and wasteful adventure

in Iraq – America had spread

itself far too thin in the world, not prioritising

what mattered in terms of

US interests. And what matters –

beyond all else – is Asia.

It is where much of the world’s

future economic growth will come

from. But due to the rise of a China

that wants to (perhaps understandably)

dominate its immediate neighbourhood,

supplanting the US as the

primary power in East Asia, it is also

the scene of much of the world’s

future geopolitical risk. As such,

America must do much more in the

region, while eschewing an ungrateful

and thankless Middle East, and

leaving Europe to actually do something

in its own backyard, rather

than perpetually relying on the US to

deal with either the Balkans, North

Africa, or Vladimir Putin.

As ever with President Obama, his

elegant thinking has proven difficult

to translate into real world initiatives;

follow-through has always been this

White House’s cardinal sin. And for

years the Asia Pivot has been the

poster child of this seminal, crippling

problem. Beyond kind words, a few

marines transferring to the north

coast of Australia, and benefitting

from China’s counterproductive bullying

in the East China and South

and the continued creation of jobs and

growth. Roads, railways, power plants,

airports, and broadband and telecoms

connectivity are the beating heart of

the economy and, if it stutters, productivity

is hit. Quite simply, there is no

way the City could have become a successful

global financial centre without

investment in these essential foundations

of a modern economy.

We could of course take the cynical

view that the Commission and the

appointment of Adonis is an excuse to

kick the problem – usually the

political will to get projects off the

ground – into the proverbial long

grass.

However, my view is that it is actually

validation to do something quite radical

in firing up long-term investment

opportunities. Clearly, the blueprint

that we have seen with the Airports

Commission has set a precedent here,

taking the intricacies and long-term

thinking needed for infrastructure

projects out of the hands of politicians

John

Hulsman

Hillary Clinton has

rather treacherously

come out against the

deal to shield herself

from attacks from

the left of her party

China Seas, the Asia Pivot amounted

to almost nothing tangible.

The signing of TPP – with a stroke of

a pen – alters this long-standing problem.

By concluding TPP without

Beijing’s participation, it is the US

and not China that has managed to

set the trading rules in the most vital

region in the world in our new multipolar

era. TPP has graphically demon-

alone. And Adonis is a “doer” not an

armchair commentator.

Key to this is that infrastructure

plans should never be seen simply

through the prism of London. Yes,

projects like Crossrail will bring a distinct

advantage to the City in helping

boost transport links, but it will also

increase wider GDP by £42bn. And the

proposed expansion of Heathrow will

aid connectivity with key

international markets – both developed

and emerging – helping firms

not just in London, but across the UK.

That is why it is positive to see

around £130bn allocated to the

strated that Washington will not easily

relinquish its dominant position in

East Asia, and that the US is engaged

in the region with its allies for the

long haul.

But if follow-through has been one

besetting sin of this administration,

the other – a dislike for and inability

to game out domestic American politics

– may ruin what ought to be a

moment of great triumph for the

White House. Because it is a clear bet

that – other than Vice President Joe

Biden – anyone else winning the presidency

is likely to abandon the Asia

Pivot. Even his former secretary of

state and now frontrunner for the

Democratic presidential nomination

Hillary Clinton has (rather treacherously)

come out against the deal, as a

way to shield herself from attacks

from the left of her party.

Almost all Republican candidates

for the presidency are neo-conservatives

of one form or another, a group

characterised by its inability to

discern primary US interests; in

trying to do everything, the neo-cons

end up prioritising nothing. Due to

his inability to groom a true political

heir, Obama’s TPP foreign policy triumph

may well prove to be all too

fleeting.

£ Dr John C Hulsman is senior columnist

at City A.M. He is a life member of the

Council on Foreign Relations, and author

most recently of Lawrence of Arabia, To

Begin the World Over Again. He is

president and co-founder of John C

Hulsman Enterprises (www.johnhulsman.com),

a global political risk

consultancy, and available for corporate

speaking and private briefings at

www.chartwellspeakers.com

Why Andrew Adonis’s new Infrastructure

Commission is an economic masterstroke

Mark

Boleat

English regions, and more than £30bn

allocated to Scotland, Wales and

Northern Ireland combined, under

the government’s Infrastructure

Pipeline. What the National

Infrastructure Commission’s priority

should be is to work hard and transform

these from figures on pieces of

paper into literal spades in the ground.

Adonis will bring a wealth of expertise

and experience to the position, and

I am sure he is the right man for the

job. But he has a challenge on his

hands. He won’t be making the decisions,

but instead advising the government

and holding it to account. He

knows that, if we delay on these big

decisions, our international competitors

will be the ultimate winners. The

losers will be the people of Britain as

we become less attractive as an investment

and commercial opportunity

across the globe.

£ Mark Boleat is policy chairman at the

City of London Corporation.

DEBATE

Brian

Monteith

YES

Lucy

Thomas

NO

CITYAM.COM

Q: As the refugee

crisis continues,

and Cameron’s

renegotiation

rumbles on, is the

balance tipping

towards Brexit?

The Prime Minister’s commitment to an

EU referendum started as a tactical ploy

to kill off Ukip and keep his party united. It

has failed. He had already broken his

promise to have a referendum on the

Lisbon Treaty and badly needed to

recover credibility with members who

were leaving his party in droves over other

issues. Having set out his stall with his

Bloomberg speech, he has since drifted

and is no longer precise about what he

wants, or can say how or why he should

get enough to satisfy the most basic

demands. The Eurozone Greek debt crisis

and the migrant crisis show how events

he cannot control will always expose the

EU’s fault lines. The polls are narrowing,

and now players like President Hollande

are saying that the choice is between

closer union and Brexit. Talk of an early

poll is fast evaporating, as David Cameron

faces defeat from a public growing in

scepticism that any deal will be good

enough.

£ Brian Monteith is communications

director of Global Britain.

Commentators may churn out column

inches on the impact of external events on

the EU referendum. But this misses the

point – Britons know the EU is vital for our

national prosperity, and that leaving

would put it at risk. Europe allows us to

sell to the world’s largest market. The EU’s

power in trade talks creates opportunities

for our businesses. Being in makes the

average household £3,000 a year better

off. The renegotiation may take time. But

the smoke signals suggest David Cameron

will exempt Britain from “ever closer

union”, make the EU more businessfriendly

and protect us from Eurozone

caucusing. While the EU is not perfect, it is

improving. And cutting ourselves off

would do nothing to deal with problems

like the refugee crisis. And anti-Europeans

cannot even decide who will lead their

campaign, let alone what Britain would

do outside Europe. The balance is not

tipping towards Brexit. The British people

understand that our country is stronger,

safer and better off in Europe.

£ Lucy Thomas is campaign director of

Business for New Europe.


CITYAM.COM

MONDAY 12 OCTOBER 2015

OPINION

21

WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum

:@cityam

LETTERS

TO THE EDITOR

Germany’s export

stumble

[Re: Is the Eurozone’s largest economy

heading for the rocks?, Friday]

The picture in German exports is remarkably

similar to the recent weakness in Japanese

machine tool orders. Much like Japan, the

German economy is biased towards

producing machine tools for industry. The

recent slowdown in China’s heavy industrial

sector is therefore having a significant

negative impact on exports from both

Germany and Japan. This would be bad

enough in normal circumstances, but we

should now overlay this industrial weakness

with the other mainstay of the German

economy, automobiles. If you add the more

recent debacle of Volkswagen’s diesel cheatsystem,

and the potential for that to affect the

whole German car industry, then the

immediate outlook for the German economy

looks bleak.

Rebecca O’Keeffe, head of investment,

Interactive Investor

Tax competition

[Re: Why business rate reform is a big boon

for London, Friday]

It’s rather a shame that tax competition will

not be allowed to proceed apace due to

restrictions on local authority deficits.

Businesses have long grumbled about the

burden of rates, and it would be better if

councils took the opportunity presented by

these new powers to lower that burden rather

than gouge companies in order to fund their

pet projects.

Name withheld

BEST OF

TWITTER

Tough quarter for UK

construction down to a

slump in public and private

housebuilding.

Infrastructure building up.

@RBS_Economics

I welcome the Vote Leave

campaign. Making the

business argument for

leaving the EU is important if

we are to win the

referendum.

@Nigel_Farage

UK exports to the EU are on

course to decline 7.4 per

cent in 2015 while exports to

non EU countries are set to

increase 4.4 per cent.

@minefornothing

Online ICM Referendum poll

for Vote Leave has REMAIN

with 6 per cent lead. Up 4

per cent since last week.

@MSmithsonPB

New ZDF poll confirms shift

in German public sentiment

on refugees. 51 per cent now

say Germany can’t cope

with influx.

@LondonerVince

The single greatest driver of

income inequality growth in

Britain is government

monetary policy.

@DouglasCarswell

Employee exodus: The housing

crisis is now a dire threat to the

future of London’s businesses

TOMORROW will see a key

intervention in the

housing debate. Business

leaders from across the

capital will launch a major

campaign called Fifty Thousand

Homes. That’s the number of houses

we need to build a year to keep up

with London’s growing population.

Housing costs are becoming a problem

for employers as much as for

workers. The scarcity of talent, inflating

wage costs, and the drag on the

whole London economy are beginning

to bite hard. Our aim is to put

the housing crisis at the very top of

the new mayor’s priority list, whoever

wins.

Exclusive research for the

campaign by economists at the

Centre for Economics and Business

Research has examined what percentage

of salary those working in

different sectors would have to spend

to afford an average home rental in

the capital. The results are startling.

In food and drink, which includes

the people who sell you your morning

coffee, the cost is 112 per cent of

salary. Then there’s the care workers

at 99 per cent. Those in education,

giving the city’s workers the vital

skills needed for the future: 58 per

cent. Creative industries, 57 per cent,

and science, 48 per cent – both key

growth sectors for London. Even

lawyers and accountants are at 40

per cent. For many people, renting a

home with a single income is impossible

– unthinkable just a few

Jo

Valentine

We need to double

housebuilding in the

capital, up to 50,000

homes a year – there

is no other practical

way to fix the

shortage

decades ago.

It’s generally accepted that, in a

functioning housing market, the

cost of renting or servicing a mortgage

ought to be no more than a

third of a person’s income. Well,

that construct has been well and

truly broken in London. The capital

is already one of the most expensive

cities in the world to live – with

rents three times as expensive as in

Berlin and close to double those in

Dubai. House prices have doubled in

the past decade – and the typical

cost of a home is now an eye-watering

£525,000.

This is all causing a staff retention

problem for companies based in the

capital, because we’re seeing employees

just get fed up of the costs, and

the lack of pounds in their pockets,

and move out of town.

Yet the worrying thing is that,

while plenty of people understand

that over-heating housing costs are a

problem, we haven’t yet got to a

point where the necessary solution

is applied. Quite simply, we need to

double housebuilding in the capital,

up to 50,000 homes a year – there is

no other practical way to fix the

shortage.

There are a lot of political hurdles

to overcome. But the next mayor’s

role is central to draw together everyone

in London that can make a difference,

and to make progress the

pass or fail test of their mayoralty.

We cannot duck the issue any

longer. Otherwise, we’ll squeeze out

the entrepreneurial activity that a

vibrant city relies upon, effectively

booting out tech startups – one of

our city’s great success stories in

recent years – and swathes of our creative

industries.

Last year alone, 273,000 Londoners

ditched the capital and moved to the

rest of the country. That’s a worrying

hint at what could become a bigger

trend if we don’t take action now.

£ Baroness Valentine is chief executive

of London First, a founding partner of

the Fifty Thousand Homes campaign.

Fountain House,

3rd Floor, 130 Fenchurch Street,

London, EC3M 5DJ

Tel: 020 3201 8900

Fax: 020 7248 2711 Email: news@cityam.com

Certified Distribution

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27/09/15 is 103,558

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Sports Editor Frank Dalleres | Creative Director David Rile y

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Gold..............................................................1151.55 11.55

Silver ..............................................................15.99 0.38

Brent Crude ....................................................53.13 1.05

Krugerrand .................................................1152.70 11.90

Palladium ....................................................723.00 29.00

Platinum .....................................................978.00 44.00

Tin Cash Official ........................................16312.50 337.50

Lead Cash Official ........................................1771.25 104.00

Zinc Cash Official ........................................1824.25 162.00

Copper Cash Official...................................5318.50 161.00

Aluminium Cash Official ...........................1606.50 54.75

Nickel Cash Official ...................................10707.50 640.00

Aluminium Alloy Cash Official ...................1687.50 12.50

Cocoa Futures ...........................................3049.00 -11.00

Coffee 'C' Futures ..........................................131.25 2.77

Feed Wheat Futures .....................................117.00 1.20

Soybeans Futures Continuation Contract...885.40 -0.20

AIR LIQUIDE .....................................................110.45 1.05 123.95 87.17

AIRBUS GROUP..................................................57.61 0.52 67.88 39.64

ALLIANZ N ......................................................146.30 1.10 170.15 115.05

ANHEUS.-BUSCH INBEV ...................................98.30 0.80 119.65 78.75

ASML HLDG.......................................................79.95 -0.50 104.85 68.29

AXA ..................................................................22.67 -0.06 25.24 16.43

BANCO SANTANDER............................................5.37 0.16 7.09 4.55

BASF N .............................................................73.04 1.27 97.22 63.00

BAYER N ...........................................................111.35 -0.65 146.45 96.83

BBVA..................................................................8.09 0.20 9.67 7.03

BMW.................................................................87.80 1.60 123.75 72.05

BNP PARIBAS-A-...............................................53.81 0.36 61.00 43.14

CARREFOUR .....................................................28.44 0.06 32.49 20.93

DAIMLER N ........................................................72.21 1.66 96.07 55.10

DANONE............................................................57.95 0.13 66.15 48.67

DEUTSCHE BANK N...........................................25.90 0.87 33.42 22.66

DEUTSCHE POST N............................................26.39 0.31 31.19 21.55

DEUTSCHE TELEKOM N .......................................15.21 -0.06 17.30 9.77

E.ON N .................................................................9.11 0.25 15.06 7.08

ENEL...................................................................4.05 0.04 4.50 3.36

ENGIE ................................................................15.18 0.12 20.57 13.80

ENI.....................................................................15.51 0.04 17.66 12.98

ESSILOR INTL ...................................................107.40 -0.40 121.10 76.65

FRESENIUS ........................................................57.67 -0.47 66.56 36.00

GENERALI..........................................................16.69 0.11 19.21 14.40

IBERDROLA .........................................................6.18 0.01 6.49 4.91

INDITEX .............................................................31.13 -0.05 32.54 19.29

ING GROUP........................................................12.73 -0.14 16.00 9.68

INTESA SANPAOLO ..............................................3.19 0.00 3.65 2.00

L'OREAL ..........................................................164.00 1.95 181.30 117.05

LVMH...............................................................165.75 3.40 176.60 109.41

MUENCH RUECKVERS N...................................168.85 -0.10 206.50 141.10

NOKIA .................................................................6.14 -0.06 7.87 4.91

ORANGE............................................................14.05 0.41 16.45 10.20

ROY.PHILIPS......................................................22.57 0.38 28.00 20.48

SAFRAN ............................................................71.00 0.00 72.45 43.66

SAINT GOBAIN..................................................39.64 -0.67 44.84 29.07

SANOFI.............................................................86.03 -0.07 101.10 69.58

SAP ..................................................................60.42 0.95 70.81 50.08

SCHNEIDER ELECTRIC ........................................53.25 1.62 75.29 48.57

SIEMENS N........................................................85.99 1.00 106.35 77.91

SOCIETE GENERALE...........................................41.90 0.57 48.77 31.85

TELEFONICA .......................................................11.56 0.22 14.31 10.35

TOTAL................................................................45.25 -0.09 48.88 36.36

UNIBAIL-RODAMCO.........................................233.35 -1.55 262.00 180.70

UNICREDIT..........................................................5.87 0.05 6.61 4.82

UNILEVER CERT.................................................37.26 0.27 42.75 28.75

VINCI ...............................................................56.94 -0.98 60.35 39.65

VIVENDI ............................................................21.79 0.15 24.83 17.32

VOLKSWAGEN VZ............................................106.60 3.10 262.45 86.36

Price Chg High Low

EU SHARES

3M ..................................................................149.90 0.42 170.50 130.60

ALLERGAN......................................................274.84 -1.32 340.34 208.64

ALPHABET-A...................................................671.24 4.24 713.33 490.91

ALPHABET-C ...................................................643.61 4.45 678.64 486.23

ALTRIA GROUP..................................................56.81 0.44 57.50 44.59

AMAZON.COM ................................................539.80 6.64 580.57 284.00

AMERICAN EXPRESS .........................................77.33 0.15 94.89 71.71

AMGEN ...........................................................149.59 -0.31 181.81 127.67

APPLE...............................................................112.12 2.62 134.54 92.00

AT&T..................................................................33.14 -0.26 36.45 30.97

BANK OF AMERICA............................................15.58 -0.17 18.48 14.60

BERKSHIRE HATHAWY-B.................................133.03 -0.72 152.94 125.50

BOEING CO ......................................................139.70 0.66 158.83 115.14

CATERPILLAR ....................................................71.30 -0.54 107.12 62.99

CHEVRON .........................................................89.57 -0.34 120.17 69.58

CISCO SYSTEMS..................................................27.91 0.00 30.31 22.49

CITIGROUP .......................................................51.38 -0.27 60.95 46.60

COCA-COLA CO .................................................42.02 0.04 45.00 36.56

COMCAST-A......................................................60.49 -0.49 64.99 49.33

CVS HEALTH....................................................102.00 -0.17 113.65 77.40

DU PONT NEMOURS&CO ...................................56.18 0.05 76.49 47.11

EXXON MOBIL...................................................79.26 -0.77 97.20 66.55

FACEBOOK-A ....................................................93.24 0.77 99.24 70.32

GENERAL ELECTRIC...........................................28.07 0.04 28.68 19.37

GILEAD SCIENCES ...........................................100.65 -0.16 123.37 85.95

GOLDMAN SACHS GROUP ................................179.19 -1.88 218.77 167.49

HOME DEPOT ...................................................121.33 0.27 123.80 86.35

IBM .................................................................152.39 0.11 187.74 140.56

INTEL.................................................................32.14 -0.38 37.90 24.87

JOHNSON & JOHNSON......................................95.37 0.29 109.49 81.79

JPMORGAN CHASE............................................61.93 -0.20 70.61 50.07

MASTERCARD-A...............................................95.82 -0.05 99.18 69.64

MCDONALD'S ..................................................102.76 -0.19 103.47 87.50

MERCK .............................................................50.95 -0.07 63.62 45.69

MICROSOFT ........................................................47.11 -0.34 50.05 39.72

NIKE -B- .........................................................124.94 0.03 126.49 83.85

ORACLE .............................................................38.10 0.21 46.71 35.14

PEPSICO ...........................................................99.47 0.50 100.76 76.48

PFIZER..............................................................33.24 0.15 36.46 27.51

PHILIP MRRS INT..............................................84.07 -0.08 90.25 75.27

PROCTER&GAMBLE...........................................74.48 0.08 93.89 65.02

SCHLUMBERGER...............................................76.36 -0.28 100.54 66.57

TRAVLR COMP.................................................102.94 -0.15 110.49 90.83

TWITTER...........................................................30.85 0.53 55.66 21.01

UNITEDHEALTH GROUP ...................................119.27 3.19 126.21 80.72

UTD TECHNOLOGIES..........................................95.37 1.04 124.45 85.50

VERIZON COMM ...............................................44.16 -0.07 51.73 38.06

VISA-A .............................................................73.98 0.08 76.92 48.80

WAL-MART STORES .........................................66.69 -0.19 90.97 61.50

WALT DISNEY-DISNEY ....................................105.56 0.95 122.08 78.54

WELLS FARGO ...................................................52.14 -0.40 58.77 46.44

COMMODITIES

CREDIT & RATES

BoE IR Overnight.........................................0.500 0.00

BoE IR 7 days..............................................0.500 0.00

BoE IR 1 month...........................................0.500 0.00

BoE IR 3 months.........................................0.500 0.00

BoE IR 6 months ........................................0.500 0.00

LIBOR Euro - overnight ..............................-0.180 0.00

LIBOR Euro - 12 months ...............................0.126 0.00

LIBOR USD - overnight .................................0.132 0.00

LIBOR USD - 12 months ...............................0.844 0.01

Halifax mortgage rate ................................3.990 0.00

Euro Base Rate............................................0.050 0.00

Finance house base rate .............................1.000 0.00

US Fed funds ..................................................0.13 0.02

US long bond yield........................................2.94 -0.02

Euro Euribor ...............................................-0.149 -0.01

The vix index................................................17.08 -0.34

The baltic dry index..................................809.00 -8.00

Markit iBoxx EUR........................................219.83 -0.16

Markit iBoxx GBP.......................................286.85 -0.93

Markit iTraxx................................................80.36 -3.53

Price Chg High Low

US SHARES

€/$ 1.1363 0.0004

€/£ 0.7418 0.0004

€/¥ 136.54 0.0075

/€ 1.3481 0.0008

/$ 1.5317 0.0009

/¥ 184.06 0.2573

FTSE 100

6416.16

41.34

FTSE 250

17085.92

82.11

FTSE ALL SHARE

3508.60

21.44

DOW JONES

17084.49

33.74

NASDAQ

4830.47

19.68

S&P 500

2014.89

1.46

CONSTRUCTION & MATERIALS

BAE Systems . . . . . . . . .469.0 1.7 547.0 425.5

Cobham . . . . . . . . . . . .306.4 0.9 345.1 251.1

Meggitt . . . . . . . . . . . . .492.5 -0.8 587.5 423.9

QinetiQ Group . . . . . . . .230.9 1.5 240.1 181.9

Rolls-Royce Holdi . . . . .755.5 10.0 1054.0 650.5

Senior . . . . . . . . . . . . . .269.1 0.2 358.5 245.1

Ultra Electronics . . . . .1796.0 14.0 1882.0 1635.0

GKN . . . . . . . . . . . . . . . .294.5 3.4 386.0 254.6

Aldermore Group . . . . .259.3 2.3 316.0 231.0

Bank of Georgia H . . .1896.0 52.0 2590.0 1616.0

Barclays . . . . . . . . . . . . .257.0 2.3 289.0 207.9

HSBC Holdings . . . . . . .532.2 2.7 649.3 485.6

Lloyds Banking Gr . . . . . .77.2 0.9 89.0 72.3

Royal Bank of Sco . . . . .334.3 3.5 403.9 308.1

Shawbrook Group . . . . .317.7 3.7 382.0 301.0

Standard Chartere . . . .786.7 38.0 1141.0 624.1

Virgin Money Hold . . . .388.5 3.2 464.0 279.5

Barr (A.G.) . . . . . . . . . . .522.5 1.5 684.0 520.0

Britvic . . . . . . . . . . . . . .693.0 -1.5 776.5 610.0

Coca-Cola HBC AG . . . .1473.0 18.0 1482.0 1057.0

Diageo . . . . . . . . . . . . .1831.0 4.5 2022.5 1640.0

SABMiller . . . . . . . . . .3668.5 27.5 3768.0 2877.5

Alent . . . . . . . . . . . . . . .494.0 0.3 498.8 301.3

Croda Internation . . . .2814.0 39.0 3137.0 1998.0

Elementis . . . . . . . . . . .249.3 4.6 320.5 208.2

Johnson Matthey . . . .2645.0 45.0 3571.0 2318.0

Synthomer . . . . . . . . . .336.5 -4.1 361.3 189.5

Victrex plc . . . . . . . . . .1894.0 26.0 2187.0 1569.0

Balfour Beatty . . . . . . .259.5 -1.5 272.5 148.7

CRH . . . . . . . . . . . . . . .1763.0 -2.0 1969.0 1266.0

Dunelm Group . . . . . . .948.0 33.0 965.5 791.5

Halfords Group . . . . . . .445.7 0.3 561.0 423.3

Home Retail Group . . . .147.9 3.3 218.1 131.3

Inchcape . . . . . . . . . . . .740.5 -7.5 894.0 610.0

JD Sports Fashion . . . . .936.5 -26.5 984.5 416.5

Just Eat . . . . . . . . . . . . .404.8 -4.4 494.3 254.2

Kingfisher . . . . . . . . . . .351.0 -2.7 383.0 285.0

Lookers . . . . . . . . . . . . . .171.0 2.8 183.2 117.8

Marks & Spencer G . . . .492.3 0.4 596.5 383.9

Next . . . . . . . . . . . . . . .7615.0 -75.0 8015.0 6325.0

Pets at Home Grou . . . .286.3 0.8 305.8 167.0

Poundland Group . . . . .292.0 6.2 418.9 268.0

Saga . . . . . . . . . . . . . . .200.8 1.6 221.5 147.1

Sports Direct Int . . . . . .690.0 -49.0 817.5 574.0

Ted Baker . . . . . . . . . .3067.0 -58.0 3390.0 1835.0

WH Smith . . . . . . . . . .1533.0 -25.0 1621.0 995.5

AL Noor Hospitals . . . .985.0 5.0 1080.0 814.0

NMC Health . . . . . . . . . .806.5 -24.5 889.5 445.5

Smith & Nephew . . . . .1126.0 -2.0 1203.0 906.0

Spire Healthcare . . . . . .357.8 6.3 401.6 269.2

Synergy Health . . . . . .2310.0 10.0 2416.0 1400.0

Barratt Developme . . . .632.5 -11.0 662.5 370.4

Galliford Try . . . . . . . . .1583.0 -20.0 1813.0 1119.0

Keller Group . . . . . . . . .906.0 23.0 1099.0 750.0

Kier Group . . . . . . . . . .1394.0 3.0 1513.0 1113.1

Marshalls . . . . . . . . . . . .352.0 7.6 370.8 187.3

Drax Group . . . . . . . . . .285.2 14.4 611.0 234.4

SSE . . . . . . . . . . . . . . . .1557.0 -2.0 1696.0 1400.0

Halma . . . . . . . . . . . . . .734.0 5.0 784.0 568.5

Hellermanntyton G . . .466.2 -0.3 475.0 276.5

Morgan Advanced M . .308.9 7.6 356.8 264.9

Renishaw . . . . . . . . . .2001.0 51.0 2648.0 1548.0

Spectris . . . . . . . . . . . .1816.0 39.0 2394.0 1643.0

Aberforth Smaller . . . .1139.0 -2.0 1234.0 980.0

Alliance Trust . . . . . . . .488.0 3.5 528.5 426.0

Bankers Inv Trust . . . . .616.5 4.0 668.0 519.0

BH Macro Ltd. GBP . . .2049.0 -4.0 2190.0 1972.0

BlueCrest AllBlue . . . . . .189.9 0.5 191.8 184.1

British Empire Se . . . . .472.0 6.0 555.0 446.0

Caledonia Investm . . .2400.0 39.0 2515.0 2115.0

City of London In . . . . .390.3 2.1 415.9 352.0

Edinburgh Inv Tru . . . . .705.5 3.5 712.0 579.0

Electra Private E . . . . .3400.0 75.0 3400.0 2350.0

Fidelity China Sp . . . . . .126.7 1.7 177.3 112.0

Fidelity European . . . . .169.1 1.9 186.7 140.0

Finsbury Growth & . . . .568.0 1.0 609.0 470.3

Foreign and Colon . . . .433.2 7.9 465.0 372.2

GCP Infrastructur . . . . . .121.5 0.2 122.5 112.3

Genesis Emerging . . . .470.3 6.3 572.0 400.5

HICL Infrastructu . . . . . .153.4 0.4 160.5 145.0

International Pub . . . . . .131.2 0.6 140.0 130.3

John Laing Infras . . . . . .118.4 0.7 128.1 114.0

JPMorgan American . . .263.9 2.3 295.8 242.9

JPMorgan Emerging . . .571.0 17.0 671.0 494.0

Mercantile Invest . . . .1683.0 10.0 1752.0 1341.0

Monks Inv Trust . . . . . . .395.1 2.1 456.9 354.0

Murray Internatio . . . . .873.5 9.0 1093.0 791.0

NB Global Floatin . . . . . .94.7 0.2 99.8 94.2

P2P Global Invest . . . .1034.0 4.0 1184.0 1020.0

P2P Global Invest . . . .1000.0 0.0 1033.0 985.0

Perpetual Income . . . . .411.0 3.0 428.5 356.7

Polar Capital Tec . . . . . .550.0 8.0 612.0 467.0

RIT Capital Partn . . . . .1536.0 21.0 1612.0 1285.0

Riverstone Energy . . . .884.0 14.0 1105.0 830.0

Scottish Inv Trus . . . . . .609.5 6.5 668.0 547.5

Scottish Mortgage . . . . .247.2 4.9 281.8 209.8

Temple Bar Inv Tr . . . .1096.0 10.0 1230.0 1023.0

Templeton Emergin . . .446.7 12.8 604.5 379.1

TR Property Inv T . . . . .299.5 1.0 324.0 238.3

Witan Inv Trust . . . . . . .764.5 11.5 847.0 655.0

Woodford Patient . . . .104.4 0.4 119.3 102.3

Worldwide Healthc . . .1687.0 4.0 2097.0 1373.0

3i Group . . . . . . . . . . . .479.8 -2.7 569.5 352.1

3i Infrastructure . . . . . .169.8 0.1 174.2 142.8

Aberdeen Asset Ma . . .349.0 6.0 507.5 293.0

Allied Minds . . . . . . . . .398.0 23.0 725.0 260.0

Arrow Global Grou . . . .274.5 0.5 288.0 218.0

Ashmore Group . . . . . .292.5 10.5 333.9 240.7

Brewin Dolphin Ho . . . .265.3 -1.4 359.6 246.4

Charles Taylor . . . . . . . .251.0 -13.3 295.0 205.0

City of London Gr . . . . . .27.8 0.0 28.0 18.8

City of London In . . . . .320.5 -5.0 367.5 272.0

Close Brothers Gr . . . .1493.0 -42.0 1664.0 1333.0

Hargreaves Lansdo . . .1284.0 -1.0 1296.0 851.5

Henderson Group . . . . .268.4 -0.8 301.6 184.6

ICAP . . . . . . . . . . . . . . . .467.1 -0.6 566.5 370.8

IG Group Holdings . . . .742.0 -10.5 807.0 592.0

Intermediate Capi . . . .525.0 -3.0 602.1 366.9

International Per . . . . .426.0 1.3 504.5 352.6

Investec . . . . . . . . . . . . .545.5 7.0 647.0 495.2

IP Group . . . . . . . . . . . .234.8 14.5 264.7 185.5

John Laing Group . . . . .189.3 2.3 233.8 185.6

Jupiter Fund Mana . . . .426.9 -1.3 475.1 318.0

Liontrust Asset M . . . . .282.0 3.8 374.8 212.0

LMS Capital . . . . . . . . . . .73.9 -0.3 85.0 68.1

London Finance & . . . . .36.5 0.0 37.0 31.0

London Stock Exch . . .2423.0 -28.0 2699.0 1794.0

Man Group . . . . . . . . . . .150.5 -6.5 217.6 108.3

OneSavings Bank . . . . .373.0 7.1 401.0 190.0

Paragon Group Of . . . .439.2 -0.7 455.5 317.9

Provident Financi . . . .3077.0 -50.0 3200.0 1988.0

PureTech Health . . . . . .133.8 4.8 150.3 123.0

Rathbone Brothers . .2050.0 10.0 2313.0 1830.0

Real Estate Credi . . . . . .170.0 0.9 183.0 159.0

Record . . . . . . . . . . . . . . .33.8 -0.3 39.8 30.5

S&U . . . . . . . . . . . . . . .2492.5 2.5 2536.9 1890.0

Sanne Group . . . . . . . .284.6 -0.4 300.0 251.0

Schroders . . . . . . . . . .2861.0 -7.0 3423.0 2146.0

SVG Capital . . . . . . . . . .477.3 4.2 522.0 382.2

Tullett Prebon . . . . . . . .358.5 -10.9 414.8 243.0

VPC Specialty Len . . . . .101.5 -0.8 104.0 100.0

Walker Crips Grou . . . . . .41.8 0.0 53.8 38.3

BT Group . . . . . . . . . . . .434.0 1.7 479.2 360.1

Cable & Wireless . . . . . .59.0 0.1 70.3 43.4

TalkTalk Telecom . . . . . .317.1 4.4 408.8 264.7

Telecom Plus . . . . . . . .1139.0 39.0 1438.0 752.5

Booker Group . . . . . . . .184.2 0.7 186.7 117.4

Greggs . . . . . . . . . . . . .1102.0 -17.0 1355.0 565.5

Morrison (Wm) Sup . . .180.9 3.2 208.2 149.9

Ocado Group . . . . . . . . .354.3 1.1 470.8 220.6

Sainsbury (J) . . . . . . . . .275.7 2.9 284.7 223.7

SSP Group . . . . . . . . . . .299.1 -1.5 315.6 229.5

Tesco . . . . . . . . . . . . . . .204.8 3.1 251.0 164.8

UDG Healthcare Pu . . . .499.9 -7.1 549.5 316.5

Associated Britis . . . . .3343.0 -41.0 3430.0 2466.0

Cranswick . . . . . . . . . . .1731.0 1.0 1750.0 1244.0

Dairy Crest Group . . . . .608.0 5.5 626.5 380.3

Greencore Group . . . . .296.3 0.1 358.0 230.1

Tate & Lyle . . . . . . . . . . .578.0 9.0 679.0 502.0

Unilever . . . . . . . . . . .2786.0 15.0 3015.0 2406.0

Mondi . . . . . . . . . . . . .1484.0 28.0 1611.0 943.5

Centrica . . . . . . . . . . . . .243.1 1.8 303.4 220.2

National Grid . . . . . . . . .913.5 -21.2 960.5 817.2

Pennon Group . . . . . . . .813.0 -0.5 919.5 713.0

Severn Trent . . . . . . . .2228.0 -20.0 2261.0 1858.0

United Utilities . . . . . .965.0 -11.0 1042.0 791.5

Rexam . . . . . . . . . . . . .540.0 6.0 590.0 425.0

RPC Group . . . . . . . . . .645.0 8.0 691.5 445.7

Smith (DS) . . . . . . . . . . .374.2 3.2 421.0 238.1

Smiths Group . . . . . . .1025.0 24.0 1238.0 975.0

Vesuvius . . . . . . . . . . . .364.3 11.8 520.0 340.0

AA . . . . . . . . . . . . . . . . .276.7 1.4 431.8 274.5

AO World . . . . . . . . . . . .161.7 -1.0 330.0 119.7

Auto Trader Group . . . .325.5 -15.4 359.8 262.0

B&M European Valu . . .328.6 -0.1 358.5 234.3

Brown (N.) Group . . . . .318.0 0.8 451.3 286.6

Card Factory . . . . . . . . .378.5 8.5 399.0 217.5

Debenhams . . . . . . . . . .80.3 -0.4 96.0 57.8

Dignity . . . . . . . . . . . .2242.0 19.0 2621.0 1486.1

Dixons Carphone . . . . .432.8 -6.4 484.7 353.1

Price Chg High Low

Bellway . . . . . . . . . . . .2389.0 -45.0 2591.0 1480.0

Berkeley Group Ho . . .3256.0 -63.0 3540.0 2061.0

Bovis Homes Group . . .1012.0 -19.0 1201.0 741.0

Crest Nicholson H . . . . .536.0 -15.5 591.0 298.9

Persimmon . . . . . . . . .1947.0 -57.0 2135.0 1276.0

Reckitt Benckiser . . . .6042.0 14.0 6271.0 4978.0

Redrow . . . . . . . . . . . . .450.0 0.0 499.2 255.2

Taylor Wimpey . . . . . . .192.5 -3.5 205.0 108.0

Bodycote . . . . . . . . . . . .579.0 29.0 786.0 534.5

IMI . . . . . . . . . . . . . . . .1076.0 19.0 1445.0 937.5

Melrose Industrie . . . . .275.0 -4.6 307.3 240.3

Rotork . . . . . . . . . . . . . .193.8 3.8 265.1 164.8

Spirax-Sarco Engi . . .3008.0 64.0 3569.4 2644.2

Weir Group . . . . . . . . .1397.0 30.0 2300.0 1114.0

Evraz . . . . . . . . . . . . . . . .96.6 3.3 207.4 63.0

BBA Aviation . . . . . . . . .277.9 2.6 360.0 262.9

Clarkson . . . . . . . . . . .2210.0 45.0 2797.0 1835.0

Royal Mail . . . . . . . . . . .469.5 8.0 527.0 389.9

Creston . . . . . . . . . . . . .154.5 -3.0 162.0 108.3

Entertainment One . . .222.9 -3.1 326.3 217.5

Euromoney Institu . . . .994.5 22.5 1261.0 940.5

Future . . . . . . . . . . . . . . .10.4 0.1 11.5 6.6

Haynes Publishing . . . .110.0 1.5 191.5 106.5

Huntsworth . . . . . . . . . .36.5 -1.0 52.5 35.0

Informa . . . . . . . . . . . . .583.0 2.0 600.5 445.9

ITE Group . . . . . . . . . . . .151.0 0.0 196.8 128.0

ITV . . . . . . . . . . . . . . . . .246.5 -3.0 280.7 193.9

Johnston Press . . . . . . . .75.0 -1.8 195.5 74.0

Moneysupermarket. . .309.4 -8.3 338.0 180.8

Pearson . . . . . . . . . . . .1224.0 11.0 1508.0 1074.0

Relx plc . . . . . . . . . . . . .1134.0 -8.0 1188.0 938.5

Rightmove . . . . . . . . .3506.0 -19.0 3826.0 1981.0

Sky . . . . . . . . . . . . . . .1080.0 -3.0 1141.0 847.5

STV Group . . . . . . . . . . .425.0 5.0 485.0 322.0

Trinity Mirror . . . . . . . . .150.5 1.5 206.0 128.0

UBM . . . . . . . . . . . . . . . .519.0 6.5 576.0 393.6

UTV Media . . . . . . . . . . .163.3 -1.8 210.0 139.0

WPP . . . . . . . . . . . . . . .1428.0 16.0 1611.0 1117.0

Zoopla Property G . . . .225.0 6.0 278.0 150.8

Acacia Mining . . . . . . . . .213.1 5.0 313.5 195.0

Anglo American . . . . . .726.5 49.0 1423.0 543.1

Antofagasta . . . . . . . . .596.0 18.0 807.5 481.0

Admiral Group . . . . . .1565.0 35.0 1629.0 1195.0

Amlin . . . . . . . . . . . . . .660.0 0.0 662.5 425.2

Beazley . . . . . . . . . . . . .345.0 -3.9 361.3 252.5

Direct Line Insur . . . . . .375.4 -1.4 387.8 264.6

esure Group . . . . . . . . .240.0 0.0 271.3 193.5

Hiscox Limited (D . . . . .913.5 -8.0 957.0 662.4

Jardine Lloyd Tho . . . .1018.0 11.0 1093.0 840.5

Lancashire Holdin . . . .689.5 6.0 709.5 506.0

RSA Insurance Gro . . . . .415.1 -2.9 526.5 391.7

Aviva . . . . . . . . . . . . . . .476.2 0.6 571.5 428.4

Just Retirement G . . . . .165.5 -2.0 199.5 119.1

Legal & General G . . . . .250.7 -1.2 294.4 213.9

Old Mutual . . . . . . . . . . .211.0 3.6 240.3 169.5

Phoenix Group Hol . . . .827.0 2.5 896.5 708.5

Prudential . . . . . . . . . .1514.5 -4.0 1752.0 1321.5

St James's Place . . . . . .878.0 -17.0 994.5 648.0

Standard Life . . . . . . . .424.6 3.3 499.9 375.5

4Imprint Group . . . . . .1266.0 14.0 1349.0 655.0

Bloomsbury Publis . . . .167.5 -2.0 184.5 145.3

Centaur Media . . . . . . . . .77.5 -1.0 85.5 56.3

BHP Billiton . . . . . . . . .1194.5 49.5 1689.5 964.1

Centamin (DI) . . . . . . . . .65.8 0.8 72.1 45.3

Fresnillo . . . . . . . . . . . . .734.5 30.0 924.5 588.0

Glencore . . . . . . . . . . . . .129.1 8.5 336.3 68.6

Kaz Minerals . . . . . . . . .147.0 13.2 269.9 72.7

Petra Diamonds Lt . . . . .98.6 0.1 208.8 81.8

Polymetal Interna . . . .589.0 -0.5 614.0 427.1

Randgold Resource . .4422.0 87.0 5685.0 3625.0

Rio Tinto . . . . . . . . . . .2599.5 79.5 3237.5 2111.0

Vedanta Resources . . .594.5 64.5 923.5 371.0

Inmarsat . . . . . . . . . . . .937.5 -2.0 1048.0 674.0

Vodafone Group . . . . . .212.0 2.0 255.4 184.5

BG Group . . . . . . . . . . .1093.0 10.0 1199.5 794.7

BP . . . . . . . . . . . . . . . . .391.6 2.7 484.2 322.9

Cairn Energy . . . . . . . . .162.6 4.2 208.3 137.1

Nostrum Oil & Gas . . . . .511.5 -13.0 731.0 374.9

Ophir Energy . . . . . . . . .106.2 1.2 211.3 79.3

Premier Oil . . . . . . . . . . .92.3 3.7 286.7 63.1

Royal Dutch Shell . . . . .1811.0 5.0 2283.5 1508.5

Royal Dutch Shell . . . .1833.0 1.5 2391.0 1514.5

Tullow Oil . . . . . . . . . . .255.7 9.9 571.0 157.6

Amec Foster Wheel . . .829.0 22.5 1105.0 696.5

Hunting . . . . . . . . . . . . .453.8 8.3 803.5 384.2

Petrofac Ltd. . . . . . . . . .941.5 83.5 1193.0 596.5

Wood Group (John) . . .698.0 4.5 733.5 527.0

Burberry Group . . . . .1504.0 12.0 1921.0 1316.0

Jimmy Choo . . . . . . . . . .135.1 -3.4 181.4 135.1

PZ Cussons . . . . . . . . . .303.6 3.8 373.4 287.1

Supergroup . . . . . . . . .1374.0 2.0 1558.0 769.0

AstraZeneca . . . . . . . .4209.5 49.0 4863.0 3903.5

BTG . . . . . . . . . . . . . . . .550.5 14.0 830.0 536.5

Circassia Pharmac . . . . .286.1 -1.5 353.5 246.0

Dechra Pharmaceut . . .950.0 10.0 1060.0 707.0

Genus . . . . . . . . . . . . .1426.0 61.0 1512.0 1073.0

GlaxoSmithKline . . . . .1310.0 18.5 1642.0 1237.5

Hikma Pharmaceuti . .2113.0 -27.0 2574.0 1754.0

Indivior . . . . . . . . . . . . .216.6 -4.9 266.4 141.1

Shire Plc . . . . . . . . . . .4408.0 36.0 5730.0 3718.0

Vectura Group . . . . . . . .167.0 0.8 184.3 115.0

Capital & Countie . . . . .423.0 -4.0 473.4 315.4

CLS Holdings . . . . . . . . .1817.0 17.0 2010.0 1276.0

Countrywide . . . . . . . . .497.9 -2.1 599.0 414.0

Daejan Holdings . . . .6090.0 55.0 6575.0 4789.0

F&C Commercial Pr . . . .141.8 0.2 148.7 124.4

Foxtons Group . . . . . . . .231.9 5.6 285.0 147.7

Grainger . . . . . . . . . . . .238.3 0.4 254.0 171.6

Kennedy Wilson Eu . . .1121.0 -1.0 1220.0 1023.0

Savills . . . . . . . . . . . . . .876.0 -41.0 986.5 580.5

St. Modwen Proper . . . .421.2 3.0 493.6 338.7

UK Commercial Pro . . . .85.9 -0.3 93.5 81.9

Unite Group . . . . . . . . .622.0 0.5 702.5 404.8

Big Yellow Group . . . . .697.5 -2.0 725.0 488.0

British Land Comp . . . .845.0 3.0 886.0 662.5

Derwent London . . . .3643.0 -17.0 3798.0 2645.0

Great Portland Es . . . . .844.0 -7.5 876.5 614.5

Hammerson . . . . . . . . .617.0 -6.5 705.5 543.5

Hansteen Holdings . . . .122.0 -2.1 128.2 100.5

Intu Properties . . . . . . .337.0 1.4 376.4 307.6

Land Securities G . . . .1282.0 -1.0 1363.0 1007.0

LondonMetric Prop . . . .164.1 0.1 171.5 135.5

Redefine Internat . . . . . .53.3 -0.6 59.7 49.2

SEGRO . . . . . . . . . . . . . .429.6 -1.9 463.8 339.4

Shaftesbury . . . . . . . . .898.0 -14.5 971.0 656.5

Tritax Big Box Re . . . . . .122.7 -0.3 128.2 105.8

Workspace Group . . . . .910.0 -5.0 980.0 600.0

Aveva Group . . . . . . . .2054.0 -11.0 2300.0 1255.0

Computacenter . . . . . . .751.0 2.5 781.5 590.8

Fidessa Group . . . . . . .1805.0 6.0 2508.0 1758.0

Micro Focus Inter . . . . .1254.0 1.0 1437.0 992.0

Playtech . . . . . . . . . . . .800.0 16.5 924.0 607.0

Sage Group . . . . . . . . . .520.0 2.0 577.5 350.1

Sophos Group . . . . . . . .232.0 5.8 282.8 225.3

Telecity Group . . . . . . .1101.0 15.0 1130.0 666.5

Aggreko . . . . . . . . . . . .1076.0 16.0 1719.0 876.0

Ashtead Group . . . . . .1045.0 44.0 1217.0 883.0

Atkins (WS) . . . . . . . . .1392.0 12.0 1579.0 1238.0

Babcock Internati . . . . .983.0 31.0 1195.0 878.0

Berendsen . . . . . . . . . .1019.0 13.0 1157.0 919.5

Bunzl . . . . . . . . . . . . . .1856.0 -5.0 1950.0 1519.0

Capita . . . . . . . . . . . . . .1251.0 6.0 1326.0 1002.0

Carillion . . . . . . . . . . . . .301.7 -5.8 370.4 296.2

DCC . . . . . . . . . . . . . . . .4931.0 -47.0 5305.0 3105.0

Diploma . . . . . . . . . . . .700.5 18.0 865.5 621.0

Electrocomponents . . . .214.9 25.4 251.9 172.5

Essentra . . . . . . . . . . . .868.0 17.0 1064.0 647.0

Experian . . . . . . . . . . .1106.0 12.0 1255.0 916.0

G4S . . . . . . . . . . . . . . . .259.4 7.8 308.8 227.4

Grafton Group Uni . . . .683.0 3.0 858.5 586.5

Hays . . . . . . . . . . . . . . . .135.9 -0.8 172.8 110.7

Homeserve . . . . . . . . . .417.3 8.9 444.6 315.7

Howden Joinery Gr . . . .471.8 -7.6 530.0 315.6

Interserve . . . . . . . . . . .606.5 2.0 663.0 495.9

Intertek Group . . . . . .2575.0 26.0 2757.0 2149.0

Michael Page Inte . . . .468.0 2.5 560.5 371.9

Mitie Group . . . . . . . . . .315.7 2.9 327.7 265.3

Northgate . . . . . . . . . . .433.9 -5.6 656.0 431.6

PayPoint . . . . . . . . . . .1009.0 14.5 1091.0 799.5

Regus . . . . . . . . . . . . . .307.6 -0.5 314.3 165.5

Rentokil Initial . . . . . . . .145.4 -0.2 154.0 112.5

Serco Group . . . . . . . . .108.9 3.5 258.7 98.2

SIG . . . . . . . . . . . . . . . . .172.0 0.7 211.2 144.8

Travis Perkins . . . . . . .1985.0 3.0 2260.0 1582.0

Wolseley . . . . . . . . . . .3690.0 -5.0 4384.0 3066.0

ARM Holdings . . . . . . .960.0 6.0 1205.0 806.0

Laird . . . . . . . . . . . . . . . .372.5 -6.9 409.5 283.2

Pace . . . . . . . . . . . . . . . .376.9 18.3 447.0 292.5

British American . . . .3770.0 31.5 3892.5 3335.5

Imperial Tobacco . . . .3455.0 -12.0 3514.0 2502.0

Betfair Group . . . . . . . .3130.0 -83.0 3367.0 1106.8

Bwin.party Digita . . . . .110.9 -1.9 119.1 78.4

Carnival . . . . . . . . . . .3306.0 -29.0 3552.0 2155.0

Cineworld Group . . . . .584.5 11.0 590.5 303.0

Compass Group . . . . . .1074.0 5.0 1219.0 938.0

Domino's Pizza Gr . . . .869.5 -10.0 934.0 570.0

easyJet . . . . . . . . . . . .1695.0 -9.0 1915.0 1340.0

Enterprise Inns . . . . . . .109.2 1.5 136.0 98.0

FirstGroup . . . . . . . . . . .101.6 -0.9 127.7 91.0

Go-Ahead Group . . . .2455.0 4.0 2706.0 2304.0

Greene King . . . . . . . . .793.5 -2.0 887.5 716.0

InterContinental . . . .2426.0 1.0 2880.0 2120.0

International Con . . . . .562.5 3.5 617.0 324.1

Ladbrokes . . . . . . . . . . .107.0 -0.6 140.0 93.4

Marston's . . . . . . . . . . . .156.3 2.0 173.5 136.6

Merlin Entertainm . . . .385.0 0.8 470.7 332.7

Millennium & Copt . . . .505.0 -0.5 600.5 482.7

Mitchells & Butle . . . . . .332.0 7.9 475.3 310.9

National Express . . . . .277.9 -1.5 318.7 220.0

Rank Group . . . . . . . . . .267.5 5.2 271.3 151.9

Restaurant Group . . . . .697.0 5.5 738.5 615.5

Stagecoach Group . . . . .350.1 10.6 419.6 327.1

Thomas Cook Group . . .121.9 0.4 161.3 100.9

TUI AG Reg Shs (D . . . .1212.0 -29.0 1271.0 1007.0

Wetherspoon (J.D. . . . .745.5 17.5 842.5 692.0

Whitbread . . . . . . . . . .4721.0 -47.0 5440.0 3958.0

William Hill . . . . . . . . . .348.8 -1.2 425.3 335.0

Wizz Air Holdings . . . .1886.0 4.0 2047.0 1340.0

Abcam . . . . . . . . . . . . . .571.0 -7.0 616.0 365.8

Advanced Medical . . . .153.0 0.3 159.8 111.0

Alternative Netwo . . . .505.0 -14.0 541.0 419.9

Amerisur Resource . . . . .31.0 3.8 54.8 20.5

Arbuthnot Banking . . .1475.0 0.0 1625.0 1010.0

ASOS . . . . . . . . . . . . . .2893.0 8.0 4194.0 1785.0

Avanti Communicat . . .218.0 -0.5 320.8 173.0

Blinkx . . . . . . . . . . . . . . .28.3 0.3 40.0 19.3

Brooks Macdonald . . . .1711.5 -3.5 1933.5 1320.0

Camellia . . . . . . . . . . .9622.5 72.5 9880.0 8501.0

Clinigen Group . . . . . . .630.5 12.5 761.0 440.3

CVS Group . . . . . . . . . . .662.5 0.5 705.0 369.6

Dart Group . . . . . . . . . .446.3 -16.0 501.5 208.0

DX (Group) . . . . . . . . . . .89.8 0.0 104.0 76.5

EMIS Group . . . . . . . . . .1017.0 -37.0 1083.0 713.5

Faroe Petroleum . . . . . . .76.5 -1.5 98.0 59.0

First Derivatives . . . . .1470.0 -10.0 1525.0 950.0

Gemfields . . . . . . . . . . . .52.0 -0.5 68.3 45.0

GW Pharmaceutical . . .472.0 4.5 696.0 320.3

Hargreaves Servic . . . . .321.0 -1.5 704.5 287.8

IGas Energy . . . . . . . . . . .21.8 1.3 88.0 18.8

Iomart Group . . . . . . . .283.0 3.1 284.8 160.0

James Halstead . . . . . .423.3 -0.8 439.5 273.3

M. P. Evans Group . . . . .369.3 -4.3 459.3 345.5

Majestic Wine . . . . . . . .359.0 -3.0 471.3 299.8

Monitise . . . . . . . . . . . . . .2.8 -0.1 34.8 2.6

Mulberry Group . . . . . .909.0 5.3 934.5 661.5

Nichols . . . . . . . . . . . . .1407.0 5.0 1492.0 838.5

Numis Corporation . . . .239.5 3.0 276.3 202.0

Pan African Resou . . . . . .9.0 0.8 13.3 6.3

Plexus Holdings . . . . . .176.0 -1.0 251.5 155.0

Polar Capital Hol . . . . . .372.0 6.0 499.5 358.0

Quadrise Fuels In . . . . . .16.5 1.5 35.0 9.2

Quindell . . . . . . . . . . . . .99.5 -0.3 162.5 32.5

Redde . . . . . . . . . . . . . .159.0 0.5 163.5 68.5

Rockhopper Explor . . . .42.5 1.0 85.0 38.3

RWS Holdings . . . . . . . .139.0 -3.5 181.8 119.5

Secure Trust Bank . . . .2842.5 -2.5 3005.0 2325.0

Sirius Minerals . . . . . . . . .18.3 0.0 24.0 7.0

Smart Metering Sy . . . .330.4 -0.6 400.1 315.5

Staffline Group . . . . . .1500.0 44.0 1589.0 730.0

Telford Homes . . . . . . . .412.0 -1.8 492.0 333.3

Telit Communicati . . . .329.0 -4.8 356.0 195.0

Tungsten Corporat . . . . .53.5 -2.8 326.3 53.2

Utilitywise . . . . . . . . . . .198.5 12.3 304.8 148.3

Velocys . . . . . . . . . . . . . .84.8 9.5 198.8 62.5

Vernalis . . . . . . . . . . . . . .73.0 -2.5 86.5 44.9

Vertu Motors . . . . . . . . .68.0 0.0 71.5 54.0

Young & Co's Brew . . .1225.5 -7.5 1310.0 960.0

Electrocomponents . . . . . . . . . .214.9 13.4

Vedanta Resources . . . . . . . . . .594.5 12.2

Kaz Minerals . . . . . . . . . . . . . . . .147.0 9.9

Petrofac Ltd. . . . . . . . . . . . . . . . .941.5 9.7

Anglo American . . . . . . . . . . . . .726.5 7.2

Glencore . . . . . . . . . . . . . . . . . . . .129.1 7.0

IP Group . . . . . . . . . . . . . . . . . . .234.8 6.6

Allied Minds . . . . . . . . . . . . . . . .398.0 6.1

Drax Group . . . . . . . . . . . . . . . . .285.2 5.3

Bodycote . . . . . . . . . . . . . . . . . .579.0 5.3

Sports Direct Inte . . . . . . . . . . . .690.0 -6.6

Auto Trader Group . . . . . . . . . . .325.5 -4.5

Savills . . . . . . . . . . . . . . . . . . . . .876.0 -4.5

Man Group . . . . . . . . . . . . . . . . .150.5 -4.1

Tullett Prebon . . . . . . . . . . . . . . .358.5 -3.0

NMC Health . . . . . . . . . . . . . . . .806.5 -3.0

Persimmon . . . . . . . . . . . . . . . .1947.0 -2.8

Crest Nicholson Ho . . . . . . . . . . .536.0 -2.8

JD Sports Fashion . . . . . . . . . . . .936.5 -2.8

Close Brothers Gro . . . . . . . . . .1493.0 -2.7

Risers

Fallers

MAIN CHANGES UK 350

Price 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 Low

Price Chg High Low Price Chg High Low

GILTS

http://corporate.webfg.com

mailto:

globaltechsales@webfg.com

%

%

AUTOMOBILES & PARTS

AEROSPACE & DEFENCE

BANKS

BEVERAGES

CHEMICALS

CONSTRUCTION & MATERIALS

ELECTRICITY

ELECTRONIC & ELECTRICAL EQ.

EQUITY INVESTMENT INSTRUM.

FINANCIAL SERVICES

FIXED LINE TELECOMS

FOOD & DRUG RETAILERS

FOOD PRODUCERS

FORESTRY & PAPER

GAS, WATER & MULTIUTILITIES

GENERAL INDUSTRIALS

HEALTH CARE EQUIPMETN & S.

HHOLD GDS & HOME CONSTR.

INDUSTRIAL TRANSPORTATION

MEDIA

MINING

OIL & GAS PRODUCERS

OIL EQUIPMENT & SERVICES

PERSONAL GOODS

PHARMACEUTICALS & BIOTECH

REAL ESTATE INVEST. & SERV.

REAL ESTATE INVEST. TRUSTS

SUPPORT SERVICES

TECHNOLOGY HARDW. & EQUIP.

TOBACCO

TRAVEL & LEISURE

AIM 50

Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5

Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6

Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7

Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3

Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3

Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1

Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7

Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0

Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2

Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5

Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4

Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7

Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4

Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1

Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5

Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4

Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1

Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0

Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9

Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3

Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4

Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7

Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7

Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6

Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4

Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2

Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1

Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6

Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3

Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4

Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9

INDUSTRIAL METALS & MINING

GENERAL RETAILERS

WORLD INDICES

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 6416.16 41.34 0.65

FTSE 250 . . . . . . . . . . . . . . . . . . . . 17085.92 82.11 0.48

FTSE All-Share. . . . . . . . . . . . . . . . 3508.60 21.44 0.62

FTSE AIM All-Share. . . . . . . . . . . . . . 736.10 3.21 0.44

S&P 500 . . . . . . . . . . . . . . . . . . . . . 2014.89 1.46 0.07

Dow Jones I.A. . . . . . . . . . . . . . . . 17084.49 33.74 0.20

Nasdaq Composite . . . . . . . . . . . . 4830.47 19.68 0.41

Xetra DAX. . . . . . . . . . . . . . . . . . . 10096.60 103.53 1.04

CAC 40. . . . . . . . . . . . . . . . . . . . . . . 4701.39 25.48 0.54

Swiss Market Index . . . . . . . . . . . . 8680.21 6.04 0.07

ISEQ Overall Index . . . . . . . . . . . . . 6136.49 -38.30 -0.62

FTSEurofirst 300 . . . . . . . . . . . . . . . 1432.67 4.85 0.34

Hang Seng. . . . . . . . . . . . . . . . . . 22458.80 103.89 0.46

Shanghai Composite. . . . . . . . . . . . 3183.15 39.79 1.27

Straits Times . . . . . . . . . . . . . . . . . 2998.50 51.47 1.75

Sao Paulo Bovespa . . . . . . . . . . . 49338.41 231.85 0.47

Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg

LIFE INSURANCE

MOBILE TELECOMS

INDUSTRIAL ENGINEERING

SOFTWARE & COMPUTER SERV.

NON LIFE INSURANCE

Rise | Shine

CITY A.M. MORNING UPDATE

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CITYAM.COM

22 MARKETS MONDAY 12 OCTOBER 2015


CITYAM.COM

MONDAY 12 OCTOBER 2015

FEATURE

23

MARKETING

OPTIMAL

CLIMATE

FOR

SUCCESS

William Railton talks Australian luddism

and CRO with House of Kaizen’s David Shiell

OVER the last few years, conversion

rate optimisation (CRO)

has been seen as a silver bullet

for a company wanting to

leverage existing web traffic

and increase revenues, at a relatively

low price. CRO is about maximising an

audience’s engagement with an advert,

but the process itself is exceedingly

complex, as David Shiell, chief executive

of digital performance marketing company

House of Kaizen (HOK), knows all

too well. “We had been talking to

Google, which recognised that CRO was

the only way to encourage clients to

increase their incremental spend. And

naively, we threw ourselves into it.”

Having started his advertising career

working with TV and print, leaving his

native Australia and traditional media

to immerse himself in online as it was

coming to the fore in 2000. Settling in

the UK, it wasn’t until seven years ago

that the opportunities of CRO presented

themselves to him. Shiell tells City A.M.

why it is the future of digital marketing.

Why did you move from Australia to forge

a career in online advertising?

Around the millennium, there was a

reluctance among Australians to

embrace the internet. The US was

pumping money into Silicon Valley, but

it wasn’t until the mid-noughties that

Australians got the confidence to even

book their own flight or bank online.

Back in 1999, I was working for

Mindshare, developing a strategy for

Kodak, which was launching a CD-Rom

for storing photos. The strategy I

pitched was 99 per cent TV and press,

with a small amount dedicated to the

online space, which had a small following.

Kodak’s board told my boss that we

had no business coming to them with

this and it needed to be completely

redone. I resigned and moved to the UK,

to work entirely in the online space.

And we all know what happened to

Kodak.

Why do you think CRO is so important?

It is tempting for marketers to go for the

low-hanging fruit – to spend more on

marketing and media, driving traffic

with an expensive initial advert and

pushing it through paid media channels.

However, after you’ve clicked on an

advert and you’re sent to “the landing

page”, the consumer doesn’t get exactly

what they expect – perhaps the headline

is different or the value proposition

is not there. Audiences are easily put

off. Indeed, 80 per cent of audiences

who visit a website leave within three

seconds, so you need to hedge your

investment by optimisation.

We look at the key killers of cognitive

drivers, to understand why a website

visitor clicks away. CRO can help marketers

understand what the expectations

of a visitor to their website are,

how the visitor interacts with the various

elements on the page, by using website

analytics, interaction monitoring

and mindset analysis. We can then narrow

the gap between what a visitor

anticipates and what they get.

We can narrow the

gap between what a

visitor anticipates

and what they get

Why is it so difficult to master?

CRO is about crafting a consistent storyline

– from the first advert to the landing

page, through the sales funnel to

reach the final conversion. But there

are so many interdependent optimisation

stages occurring simultaneously,

with different disciplines required to

understand them, from research analysis,

to design and coding. At the beginning,

we thought it was about

technology, but it’s all about methodology,

your strategy for understanding

the consumer. In many ways, we’ve

moved from being a digital marketing

agency to a behavioural sciences company.

Most of the tech we use is available

in the marketplace. It’s just our processes

which are carefully honed.

Why is it cost effective for a client?

On its own, media won’t give you incremental

revenue increases in the long

term. And CRO is quite cheap compared

with a marketer’s overall spend.

Apportioning just 10 per cent of your

budget can noticeablely boost your bottom

line. HOK regularly achieve 100 per

cent plus conversion rate increases, so

marketers should think of CRO as derisking

their ad spend.

When appropriate we take full

control of a client’s media, bearing all

the cost of our services, and taking a cut

of revenue instead of fees. We do this

with Intel Security, and have a hybrid

fee model set up with Avis Budget

Group, consisting of a retainer and

commission, which we can reinvest in

to the model to deliver larger

audiences. We’re no longer beholden to

a marketer’s budget, which may be cut,

and the client can focus on diverting

marketing expenditure elsewhere such

as longer term capital hungry projects,

without worrying about paying our fee.

In-app ad-blockers establish worrying precedent

APPLE caused a storm a month

ago when it released its iOS 9

software update, and not just

because it caused many users’

mobiles to crash. The new

operating system permits ad blocking

technology, allowing users to screen

adverts out of content, and a number of

apps which block adverts in Safari have

rocketed up the App Store’s download

charts. But ad-blockers have been available

for years, so why do ad-blocking

apps pose such a problem?

Research by JP Morgan in the US found

that ad-blocking was mostly confined to

desktops, and most of iOS 9’s adblockers

only affect Apple’s Safari

browser. But a handful of apps, including

Been Choice, which is only available

in the US, can strip adverts from thirdparty

apps. Given that 90 per cent of

mobile internet use is through apps,

according to Flurry, publishers and

developers could stand to lose valuable

sources of revenue.

To block adverts inside third-party

apps, the developer of the ad-blocker has

to install a root certificate on the consumer’s

mobile, and set up a virtual private

network (VPN) to funnel all the

device’s web traffic through their own

servers to remove the unwanted adverts.

The potential for abusing the process

led Apple to remove a number of similar

apps from its App Store last week, citing

the developer’s potential ability to “compromise”

the encrypted link between a

server and a client, known as SSL, and

TLS, another cryptographic protocol.

It may be only a matter of time before

in-app ad-blockers are up and running

once more. In its announcement, Apple

said that it is “working closely with

these developers to quickly get their

apps back on the App Store, while ensuring

customer privacy and security is not

a risk.” And given the UK’s intolerance

for adverts, the impact could be significant.

A study by Teads found that 21 per

cent of UK internet users employ adblocking

technology, 82 per cent more

than last year.

“The problem is that ad blockers don’t

distinguish between adverts,” says Justin

Taylor, UK managing director at Teads.

“And some ad-blockers actually block a

publisher’s own content, not just

adverts from other parties.” Some adblocker

developers have started to

charge companies themselves to allow

their adverts to circumvent their adblockers,

provided their adverts are not

disruptive or intrusive. “That’s racketeering,”

says Taylor. “But we do need to

create a change in the industry,

whereby we stop annoying the end-user

with unrelated pop-ups. Adverts should

be strong and relevant to the experience

they’re embedded in.”

£William Railton is business features writer

at City A.M.

THE WEEK IN BRIEF

AOL DEAL TO PROVIDE

NEWS FOR TALKTALK

AOL UK has struck a syndication

deal with TalkTalk to provide all

the content for its consumer

portal. AOL will draw from its

news, lifestyle and travel sections,

and from the Huffington Post,

which it owns. TalkTalk has a

history of

doing business

with AOL,

having bought

its internet

service for

£370m in 2006.

UK’S DIGITAL AD SPEND

CONTINUES TO GROW

The UK’s digital advertising spend

rose substantially in the first half

of 2015, according to research

published by Internet Advertising

Bureau UK. The figures, which

include advertising for online,

mobile and tablet, increased to

£3.975bn, up 13.4 per cent on the

first half of 2014 (£3.507bn).

Mobile ad spend increased by 51

per cent to £1.08bn, while display

advertising revenues grew at

more than double the rate for

digital overall.

AGENCIES CONTACTED

FOR ARMY BRIEF

Capita, which led the consortium

which won the Ministry of

Defence’s Recruiting Partnership

brief in 2012, has approached

creative agencies to handle the

Army’s recruitment campaign, due

to run on television after Christmas.

Previous campaigns have been

coordinated by J Walter

Thompson, which

will continue to

handle the digital,

SEO and CRM work

for the project, and

pitch for the TV spot.

LISA THOMAS DEPARTS

M&C SAATCHI

Lisa Thomas, former group chief

executive at M&C Saatchi has left to

become managing director and

global head of brand at Virgin

Enterprises. In her tenure, Thomas

founded lida, where she was chief

executive until 2010. She will now

be responsible for the Virgin brand

globally and will be tasked with

managing Virgin Group’s

relationship with firms carrying the

Virgin brand. Tim Duffy, chairman

at M&C Saatchi UK, will be more

involved following her departure.

AD OF THE WEEK

When Gulf-based airlines team up

with A-list actresses, it’s a recipe for

disaster. First, UN womens

ambassador Nicole Kidman faced

criticism over Etihad’s treatment of

its female employees. Now Jennifer

Aniston has caused a stir for

mocking economy class travel in

this $20m placement for Emirates.


24 FEATURE MONDAY 12 OCTOBER 2015

CITYAM.COM

ENTREPRENEURS

A GOLDEN

LIFETIME

Harriet Green talks Uber, Jack Whitehall, true entrepreneurship

and the dream of a Labour Party coup with Nick Hewer

I’M VERY wobbly. I feel homeless – it’s a huge hole,” says

Nick Hewer who, after nine years and 10 series as Alan

Sugar’s right-hand man, has left The Apprentice. But

the 71 year-old businessman isn’t talking about

leaving the show; he’s describing what it feels like to

have voted Labour since 1964 and now be faced with a

catastrophic lurch to the left. “Blair. We all thought we

had John Kennedy. And he was JFK for a while, and then

he walked us into an illegal war. Then we had no-hoper

[Brown], who should’ve been taken out and just quietly

put to sleep. But nobody had the bottle to do it.” What

followed, says Hewer, was the “bland brigade, and

somebody thought we ought to jazz things up – let’s get

Jeremy in. And guess what? He got swept in.”

The trouble is, he adds, is that he really likes Corbyn – as

a man. “He’s like Tony Benn. If you sat with him for half an

hour, you’d go and fight for him. The problem is that the

policies just are not of this time. I’ve bet somebody 2-1 that

he’ll be out by Christmas. I’ll lose the money, but I don’t

care.” Hewer met Ed Miliband once. He knew “in a fraction

of a second” that he wasn’t cut out to lead – “wet fish

handshake, sitting there all aloof – he didn’t care what the

City had to say. That was a mistake.” The day after the

event, Hewer went to William Hill.

“If the Labour party wants to see power again in my lifetime,

somebody is going to have to mount a coup. They’ve

got to get over this inability to pull the trigger. In business,

if your chief executive is driving you into a ditch, you ask

him to move aside, and bring somebody in who is going to

actually save the company. And this is saving the Labour

Party. It’s saving the movement. That’s it.”

And Hewer isn’t keen on the potential contenders, either.

“Chuka Umunna? Well why did he back off? We still don’t

really know. He’s terribly charming, but is he just too slick?

I can’t in my heart go to the Tories, but I’m looking for a

home. Perhaps the answer is the Liberals... I really don’t

know.”

ONCE IN A LIFETIME

Hewer was born into a reasonably comfortable family in

Swindon. I ask him how his childhood influenced a successful

life in business and he answers immediately: “debt

was absolutely forbidden”. He remembers getting into a

sticky situation over stamp collecting, and receiving “nasty,

threatening letters” from the stamp company, aged seven.

“My parents didn’t say a word. They wanted to drum into

me that you’ve got to be responsible for your own money. It

was a huge lesson for me. In fact, maybe it dampened my

entrepreneurial spirit.” Unlike Sugar, Hewer isn’t known

for starting things. But he’s a consummate executer and

finisher. Aged 22, he joined a London PR firm. Six years

later, he was on the board, and he then went on to buy out

the owner. He first met Sugar when his firm was taken on

to represent Amstrad, Sugar’s company, in 1983.

I don’t ask him about Sugar directly, but he’s quick to

mention him. “Some people are masters of timing; he’s

one of them. He always got it right, just because he has a

feeling.” He recalled Sugar walking into Dancall, a Danish

mobile-phone company for which Amstrad paid £6.4m in

1993, and then sold for £92m in 1997. “He just smelt the

air. Sniffed it, and knew it could work. That’s an innate

quality. That is entrepreneurial.”

Having left The Apprentice, Hewer is now focusing on

new things. Last year, the Countdown presenter started

working with Bark, an online marketplace which enables

consumers after a certain service to connect with sole

traders and small businesses who offer it. “I’ve got involved

because it’s about small business, and it’s about giving

people choice,” he tells me, before adding: “You don’t look

like you need a personal trainer, but if you did, you could

go on there and find one. Or a dog walker, or someone

In business, if your chief

executive is driving you

into a ditch, you ask him

to move aside

Hewer and Michael Whitehall are making a TV

programme together

who could make a stained glass window.” The platform

provides protection for customers and a saving grace for

small firms that have a “funny looking little website, no

marketing budget, and no idea how to spread the word”.

Widening access and opportunity means a lot to Hewer.

A bright student, he got a place at Trinity College Dublin

to study Law. “University education isn’t just about getting

a job. I missed out because family circumstances

prevented it. It was a sadness, really. Friends went, and

so I was suddenly alone.”

He’s also extremely keen on the reputation

dynamic of Bark – the fact that, like the review website

that preceeded it, and now the rest of the

sharing economy, trust and reputation play a big

part. “It’s a pity there isn’t more trust in the world,

actually. A great shame. But things like Ebay, Uber, –

they’re becoming a part of life. That’s fantastic.”

On the subject of Uber, Hewer, unsurprisingly, has

a view. “This is the issue Britain has, and one

America wouldn’t. We say, ‘we love black cabs, cabbies

are great. We don’t like minicabs; we

don’t trust minicab drivers. We must protect

the cabbies’. In America, they’d say, ‘don’t be

stupid! Uber is half the price!’ So why are we

being protectionist of something that’s proving

quite expensive for us? Is that the British

sense of fair play? Modern Britain should be

driving for a cheaper price. It’s madness.”

In and among time spent on Bark and

several charities – on the 22nd, for

instance, he’s flying out to Sierra Leone to

work with Street Child – Hewer is also

cooking up a new TV programme. Having

made several TV appearances with comedian

Jack Whitehall, Hewer met his parents.

“They’re a laugh. Michael [Jack’s dad] and I have

got a proposal being looked at by various people. It

hasn’t got a title or anything.” The basic premise, he

explains, is “two blokes, one more adventurous than the

other, observing what’s going on in various situations and

reacting”. Who’s the adventurous one, I ask. “Put it this

way: Michael doesn’t like leaving London, but I can never

wait to get out. He has to be persuaded, but I’ve always

been a bit of a traveller.”

CV

NICK HEWER

Age: 71

Born: Swindon, Wiltshire

Lives: Northamptonshire

Studied: Clongowes Wood College,

Ireland

Drinking: A reasonable Claret

Eating: Anything really. I’m not a foodie,

so simple is best. I’ll eat anything

Currently reading: Burmese Days, by

George Orwell; Goodbye To All That, by

Robert Graves; and a guide to Japan

(where I’m hoping to visit)

Favourite Business Book: Don’t have one

and I don’t want one either

Talents: None

Heroes: People of my age don’t have

heroes. When I was younger, JFK was a

hero – and Primo Levi

First ambition: I was remarkably

unambitious as a child. To be in the

school First XV. A better one, actually, is to

be unsackable by 30 by owning a

company.

Motto: “You don’t have to be a genius to

succeed, you just have to work harder.”


CITYAM.COM

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We’re entrepreneurial

MONDAY 12 OCTOBER 2015

FEATURE

25

Don’t overlook the blossoming UK mid-market

GERMANY’S Mittelstand is a point

of national pride, but Britain’s

mid-market companies are often

unfairly overlooked. While the largest

firms gain attention by virtue of their

size, and smaller businesses are

regularly prioritised by government,

mid-sized companies – broadly, those

with an annual turnover of between

£10m and £200m – don’t get the attention

they deserve. And this is despite the

fact they employ about 6.4m people

(which equates to more than 20 per cent

of British jobs) and make a significant

contribution to the UK economy.

Indeed, the sector is blossoming. In

June, we released the latest edition of

the Investec Mid-Market Index, which

measures the size, health and performance

of 25,000 UK companies that make

up the private mid-market sector. It

found that the average operating profit

was up 18.6 per cent in the year to

August 2014, return on capital was at an

all-time high, and revenue growth for

the period was a healthy 3.2 per cent.

And the Investec Mid-Market 100, a separate

biannual list which highlights the

top 100 UK mid-market firms in terms of

growth, showed particular strength in

the retail sector and in the North West:

mid-market companies are not only

thriving in difficult sectors, but have a

wide geographical spread.

It’s not all plain-sailing, however. The

INVESTEC

COMMENT

Edward

Cottrell

UK mid-market faces some serious challenges.

The four most critical issues we

hear from our clients are: red tape, internationalisation,

access to finance, and

the skills gap.

Regulation is of course necessary, and

mid-market companies are often better

placed to deal with red tape than their

smaller peers. However, regulation

needs to work with business not against

it, and all too often mid-market firms

find their growth stymied because of

bureaucratic rules that do not appreciate

the challenges they work under.

Excessive health and safety regulation,

for instance, can impose outsized costs

on mid-sized businesses, while labour

market rules can be inflexible. Mid-market

firms do not want red tape to disappear,

but it should be tailored to their

specific circumstances.

Internationalisation becomes critical

when a company has matured in the UK

market. If you have ambitions to

become a £1bn turnover business, very

few sectors of the British economy will

German Mittelstand firms like Staedtler are a point of national pride

The mid-market

faces challenges:

internationalisation

red tape, access to

finance, and the

skills gap

be sufficiently large to allow for that.

Often, however, mid-market firms do

not have the resources or depth of experience

to enter new markets, so government

help is vital. Opening up and

retaining access to other economies is

part of it (for this reason some mid-market

companies are concerned about the

coming EU referendum), but it’s also

about providing contacts and assistance

on the ground to help companies break

out of reliance on the UK.

Access to finance is a challenge the

mid-market shares with smaller companies,

and it is now admittedly less acute

a problem than it was post crisis. As

these firms are private they do not have

access to capital markets and therefore

need a specialised type of finance,

involving a combination of debt and

equity, to be successful. Schemes like the

Enterprise Investment Scheme are

sometimes not appropriate for the midmarket,

so the challenge for

government is to ensure that Britain has

a vibrant financial services sector that is

able to innovate, and therefore structure

a number of different types of financing

for these companies.

Finally, while the skills gap is an

increasing problem for all companies, it

is particularly acute in the mid-market.

These businesses are hugely reliant on

the quality of their staff, and they are

struggling to find the right people to fill

existing positions to meet their growth

ambitions. While the long-term solution

is ensuring the education system matches

the skills requirements of business, in

the short term, government policy

needs to be sensitive to allowing skilled

migrants into the country.

£ Edward Cottrell is head of growth and

acquisition finance at Investec. This article

is provided for information purposes only

and should not be construed as advice of

any nature. The views and opinions

expressed are subject to change without

notice.


26 LIFE&STYLE MONDAY 12 OCTOBER 2015

TRAVEL

HOURS IN...

WILTSHIRE

CITYAM.COM

CULTURES COLLIDE

ON THIS AMAZING

CHANNEL ISLAND

Melissa York flies to Jersey, the sunniest place in the

British Isles, to find out why it’s such a getaway staple

WHERE TO STAY

The Lamb, a rustic rural bolthole

comprising a country pub and 18 cosy

bedrooms, all set in the cute and idyllic

village of Hindon, nestled in the West

Wiltshire Downs.

lambhindon.co.uk

WHERE TO GO

The Lamb is a short commute into the

cathedral city of Salisbury and

surrounded by Longleat Safari Park,

while Stone Henge is within easy

travelling distance.

longleat.co.uk

WHERE TO DRINK

If you want an extensive selection of

local brews and a globe-trotting wine

list, wander into The Beckford Arms,

which has a huge open fire and very

well-made cocktails.

beckfordarms.com

WHERE TO EAT

Book yourself a table at the awardwinning,

family-run restaurant The

Riverbarn, one of Wiltshire’s hidden

gems, run by head chef Jonathan

Sutcliffe.

theriverbarn.org.uk

Igot into a taxi in Jersey and asked the

driver to take me to The Horizon hotel.

“You what?” he said. The Horizon

hotel? “Don’t you mean l’oreezon,

love?” he replied, breaking into a

French patois, mid-sentence. It was then I

realised I wasn’t in Blighty anymore.

Things are different here; you can’t just

go around Anglicising nouns.

Luckily, the Word Police let me off and

L’Horizon materialised ten minutes later,

all in white with baskets of flowers spilling

from its balconies. Atop a cliff overlooking

a popular cove, it’s one of the oldest hotels

in St Brelade’s Bay. It was built in 1850 as

Aliwal, a private seaside villa occupied by

George Hicks, a colonel in the Bengal Army

and grandfather of actor-writer Sir Samuel

Hicks, who went on to re-build the Globe

Theatre on the South Bank.

One of France’s most famous authors, Victor

Hugo, lived less than a hundred yards

from the hotel before he ran off to

Guernsey to write Les Miserables. Then

there’s a darker moment in the hotel’s history:

during the Channel Islands’ occupation

by the Nazis, the German High Command

were so taken with the building they

made it their military headquarters. “The

Nazis liked it” isn’t the most persuasive recommendation

I’ve ever given, but the

building does possess an inherent

grandeur. A decade later, it was bought by

its first hotel group and started a new life

as L’Horizon, the four star institution it is

today.

A pianist tinkled away while I checked in,

then someone showed me to my room. Tea

and biscuits arrived before I did. It was like

the hotel was trying to be as English as possible

despite its sexy French name.

I stayed in a deluxe room (the middle tier)

with a view of the ocean. An enormous

wedding party below were trying to organise

themselves into a heart shape on the

sand. Weddings are big business for L’Horizon,

as it’s the only hotel among the many

crowded around the bay that has an uninterrupted

view over the water – the Instagram

ideal.

Drizzle put paid to my beach plans, however,

so I went to the spa. The heavy furnish-

JERSEY JAM

Jersey has the

highest per capita

ratio of car owners

in the world, with

166,000 vehicle

journeys being

made every day.

The tea and biscuits

arrived before I did. It

was like the hotel was

being as English

despite its sexy

French name


CITYAM.COM

MONDAY 12 OCTOBER 2015

LIFE&STYLE

27

: @cityamlife

NEED TO

KNOW

1

Main and above: St Brelade’s

Bay. Below: a deluxe room at

L’Horizon and the vineyards at

La Mare wine estate

Hand Picked

Hotels is offering

two night breaks

from £340 per

room at

L’Horizon Beach

Hotel & Spa. The

price includes

two nights’

accommodation

in a Classic

double room, a

three-course

dinner on the

night of arrival

and a full

traditional

breakfast each

morning based

on two sharing.

Visit

handpickedhot

els.co.uk or call

0845 458 0901

3

1. Paris House restaurant

2. High tea at the Woburn Hotel

3. Woburn Estate

4. The Paris House cooking masterclass

2

4

LONG

WEEKEND

PARIS HOUSE

WOBURN, BEDFORDSHIRE

Steve Dinneen on the perfect foodie

break less than an hour from London

THE WEEKEND: A molecular gastronomy

masterclass by a Michelin-starred chef

surrounded by some of the most beautiful

countryside in the UK. You will rustle up a

feast before enjoying a tasting menu at the

chef’s table, followed by a night in a nearby

hotel including a three-course meal.

pearls and mini doughnuts), you’ll take a

seat at the chef’s table and watch as the

kitchen prepares you a five-course meal

made using ingredients from the

neighbouring garden. Highlights included

moroccan lamb and a dessert based

around cep mushrooms.

ings are what you’d expect to find in a cosy

hotel in the Lake District, rather than a

beachside resort. The spa was renovated

last year and has with a dedicated nap

room and massage chairs with cushioned

arm pads, so they don’t flop off the side of

the bed.

If you ask anyone in Jersey what to do

when it’s raining, they’ll direct you to the

War Tunnels, a museum about island life

under occupation, or they’ll tell you to go

and eat something.

For such a small place – it’s only 120sqkm,

which is 20 fewer than Britain’s largest lake

– it has a disproportionate amount of

Michelin-starred restaurants; four at the

last count. It could be something to do with

the warmer climes producing better produce,

or maybe they’ve just caught a whiff

of what they’re cooking over in France. Either

way, I headed to The Grand Hotel – a

more corporate, town hotel – over in St Helier

to try out Tassili. If features ten tables

in a space comparable to a living room and

you can choose from three seven-course

tasting menus: From the Land, From the

Sea, and From the Land and Sea. Then

you’re left to salivate while watching a live

-feed of the kitchen on a TV screen. It’s certainly

a novel distraction from the view,

which is a. The dishes are immaculately

presented, all sprinkled with sea foam or

aromatic sprays.

And if you’re impressed with the gastronomy,

then you should check out the winery

on La Mare estate. Established in 1972, it’s

now one of the island’s biggest tourist attractions,

running regular tastings. It’s expanding

rapidly, too; into cider, brandies,

gin and vodka made from Jersey royal potatoes.

A particular speciality is its black

butter, a sort of spread that tastes like

mince pies (“Buerre” is closer to “spread” in

Jersey patois, but “black spread” sounds

like a medieval infection so they wisely

stuck with the more appetising “butter” for

the branding).

It’s a good analogy for what makes Jersey

an enduring weekend getaway staple; it

takes British comforts – same language,

comfy chairs and decent tea – and adds just

the right amount of French flair.

WHERE? The restaurant is called Paris

House in Woburn, Bedfordshire, a short

taxi-ride from Milton Keynes (25 mins from

Euston station). The Woburn Hotel is a

brisk stroll through a deer-filled estate

away – perfect for burning off post-lunch

calories.

THE MASTERCLASS: Phil Fanning, Paris

House’s executive chef who won the

restaurant its Michelin star, will teach you a

host of kitchen skills. Classes include

butchery, pasta, chocolate, and the one I

attended, modernist cooking. In my class I

learned how to freeze things with liquid

nitrogen and use the latest high-tech

methods to thicken, aerate and reduce

ingredients to create the kind of dishes that

will make dinner party guests think you’re

a first-class culinary mage. The masterclass

starts at 9.30am and lasts for 2.5 hours, in

which time you’ll watch Fanning at work

and put the skills you have learned to use

making your own dish.

And remember: you’ll be getting lots

of face-time with one of the top young

chefs in the country, so put it to good use

and ask him lots of questions.

THE LUNCH: After you’ve

worked up an appetite

creating your dish (mine was a mojitoinspired

dessert featuring mint and lime

puree, coriander chlorophyl crisps, mango

TOP TIP

Phil Fanning,

executive chef at

Paris House, is a

huge mycophile –

ask him about

mushrooms

ASK ABOUT: Fanning is a mushroom

enthusiast, often foraging his own fungus

(for personal use; safety concerns means

he can’t serve them in the restaurant itself).

Ask him about the best local spots to go in

search of mushrooms.

AND AFTER THAT: The Woburn estate,

home to Woburn Abbey, is a gigantic tract

of manicured countryside. It is home to

seven varieties of deer, a maze, an

ornamental garden and a safari park. You

could easily while away a day here, and if

you get bored of all the open space, there

are loads of decent pubs in the nearby

town.

SLEEPING: The Woburn Hotel is within

easy walking distance of Paris House. It

includes a number of two-storey

“cottages” with original features

like exposed wooden beams. The

hotel restaurant is a good bet for

your evening meal.

NEED TO KNOW: The cookery

masterclass, including a glass of

champagne, a hands-on

demonstration and a five course meal at

the chef’s table is £149 per person. To book

go to parishouse.co.uk or call 01525 290

692. The Woburn Hotel cottages cost from

£105 a night – visit thewoburnhotel.co.uk

or call 01525 290441.


28 FEATURE MONDAY 12 OCTOBER 2015

CITYAM.COM

OFFICE POLITICS

Why merit is

key to more

diversity in the

workplace

Inclusive leadership is not a Stalinist labour

market intervention, says Stephen Frost

LET’S start with a point that

nearly everyone can agree on:

organisations in competitive

markets need the very best

talent. And we should

recruit, promote and retain that

talent on the basis of merit, and

merit alone. We can generally agree

that, if someone is selected or

promoted on the basis of their

identity, rather than their merit,

that is a process best avoided. No-one

wants a token, or to be one.

Diversity is no bed of roses. It

means more, not less, competition.

But it can create more resilient

organisations, more productive workforces

(when led well), and less risky

decision-making. Above all, diversity

can be the enemy of mediocrity.

Labour markets are actually deeply

Average

performers need

to understand

that a diverse

workplace will

mean they face

more competition

inefficient. One of the reasons for

this inefficiency is the prevalence of

bias. We prefer sameness to difference.

Using data and black and white

numbers to point out the case for

promotions or recruitment is essential

in refuting allegations of positive

discrimination – a term that is the

weapon of choice to discredit any

action that might be completely justified

in combating an inefficient

labour market, or an unjust hiring

decision.

For example, there were 28 per cent

women at one level in a company, yet

at the next level up there were only 7

per cent women. Assuming talent

and IQ were evenly distributed

among the sexes (and we have no evidence

to suggest otherwise), then

more or less 28 per cent of promotions

should be female. The fact that

the promotion rate has historically

been significantly less than this suggests

an inefficiency (as well as an

injustice).

We subject ourselves to danger

when we reject diversity.

Surrounding ourselves with people

who are like us, which is entirely natural

and understandable, is a surefire

way to develop groupthink, and

to avoid the necessary rigour and

healthy conflict that are essential to

good decision-making.

The elephant in the room is that

the majority (or the minority in

power) has to change their behaviour.

In some cases they have to bear loss

(real or perceived) – merit must

trump loyalty and comfort when it

comes to talent management.

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Inclusion is the name of the game,

and it’s not just about gender and

race – important though they are.

The real business value of gender

and race is that they are proxies for

cognitive diversity. And it is different

brains, led inclusively, that are the

real prize.

KPMG is on the conscious diversity

journey, like many other organisations.

But there are three distinct elements

to its inclusive leadership

strategy that are worthy of particular

focus.

1. Include everyone. This is not so

much about “them” as about “us”.

It’s not about fixing the women or

ethnic minority folks so much as

addressing the majority’s resistance

to change.

2. Be honest about loss. Average performers

will now face increased competition

from hitherto comparatively

ignored groups. They may well not

get promoted as they assumed.

3. Have clear targets. What gets

measured gets acted on and, if we are

serious that inclusion is a business

issue, then it should be treated as

such and be a core part of management

information and reporting.

Inclusive leadership may still be

viewed by some as a Stalinist intervention

in an otherwise perfectly

functioning labour market. The facts,

however, suggest that intelligent,

data-informed interventions are an

important step in correcting market

failure, and making organisations

more meritocratic.

£ Stephen Frost is strategy lead for

diversity and inclusion at KPMG.

@frostincluded


CITYAM.COM MONDAY 12 OCTOBER 2015 SPORT 29

FOOTBALL

RESULTS

Hodgson: Vilnius turf no grounds for concern

FRANK DALLERES

ENGLAND manager Roy Hodgson has

played down concerns over

Lithuania’s artificial pitch as his team

attempt to complete a perfect

qualifying campaign for the 2016

European Championship tonight.

Hodgson’s men are the only team

to have won all their group matches

so far and, despite pledging to field

an experimental side, he insists he is

eager to make it a perfect 10.

The England boss admits the hosts

will be better attuned to the

synthetic playing surface but, having

won 3-0 there with Fulham in a 2009

Europa League fixture, insists it will

be no excuse for failure.

FOOTBALL

Ireland fail to

seal automatic

Euro pathway

ROSS MCLEAN

REPUBLIC of Ireland must win a twolegged

play-off to reach Euro 2016

after slipping to a 2-1 defeat in Poland

last night and failing to secure

automatic qualification for next

summer’s finals in France.

A 2-2 draw would have been

enough to see Ireland through but

that clinching goal proved elusive as

hot shot Robert Lewandowski netted

a second-half winner after a Jonathan

Walters penalty cancelled out

Grzegorz Krychowiak’s opener.

Skipper John O’Shea saw red with

minutes remaining.

Finland’s late equaliser failed to

dampen Northern Ireland’s party,

meanwhile, as a 1-1 draw was enough

to secure top spot in a qualifying

group for the first time in their

history. It is also the first time a team

seeded fifth has won a European

Championship qualifying group.

Watford defender Craig Cathcart

glanced home to give Michael

O’Neill’s side a first-half lead only for

centre-half Paulus Arajuuri to head

Finland level with three minutes left.

Romania and Albania also booked

their places at Euro 2016, while

Scotland beat Gibraltar 6-0.

RUGBY UNION

“The surroundings are of no

interest whatsoever. I have actually

been to the stadium myself because I

played a game against a team called

Vetra with Fulham there over six

years ago,” said Hodgson.

“I know the surroundings, I know

the stadium; I thought it was a very

nice stadium. Obviously we don’t

play on artificial surfaces all the

time, but most of our players have

some experience.

“I am not overly concerned about

that. The ball will run true and we

need to make sure we play the sort of

football that will be necessary to win

the game.”

England are expected to be much

changed from the team that beat

Hourcade warns rivals that a

dynamic Argentina lies in wait

ROSS MCLEAN

COACH Daniel Hourcade has

promised World Cup quarter-final

opponents Ireland that a “dynamic”

Argentina lies in wait after

rounding off their Pool C campaign

with a 64-19 demolition of whipping

boys Namibia yesterday.

The Pumas had secured a bonus

point by half time as fly-half Juan

Martin Hernandez, wing duo

Mathias Moroni and Horacio Agulla

as well as No8 Facundo Isa all

crossed the line in the opening

period. A youthful and free-flowing

Argentina notched another five

tries in the second period through

forwards Lucas Nogueira, Matias

Alemanno, Leonardo Senatore and

Estonia 2-0 at Wembley on Friday,

thanks to goals from Theo Walcott

and Raheem Sterling, with Stoke

goalkeeper Jack Butland set to start

in place of rested No1 Joe Hart.

Everton centre-back Phil Jagielka is

to be captain, in the absence of

fellow defender Gary Cahill –

another player spared the trip – and

injured striker Wayne Rooney, while

Hodgson has strongly hinted that

Swansea midfielder Jonjo Shelvey

and Leicester forward Jamie Vardy,

who came off the bench to tee up

Sterling three days ago may start.

“We have a very interesting team

for Phil to lead out,” Hodgson added.

“We are ready for the task and will

do our level best to win. We respect

Lewandowski scored the winner as Poland beat Republic of Ireland and ended their hopes of automatic Euro 2016 qualification

Julian Montoya, together with

scrum-half Tomas Cubelli.

“We’re able to play an open or

closed game, but it will always be a

dynamic one,” said Hourcade. “We

have the weapons we need to go past

our rivals, which is something we

will do.

“The team has the weapons

needed for each situation.

Sometimes you need an open game,

sometimes you need a more closed

type of game. Our tools or weapons

can go both ways.”

Argentina finished four points

behind Pool C winners New Zealand,

while Namibia bowed out of their

fifth World Cup without a win,

despite tries from Johan Trump, JC

Greyling and Eugene Jantjies.

GOLF

Maiden pro title

for Fitzpatrick

FRANK DALLERES

SHEFFIELD’S Matt Fitzpatrick

conjured a brilliant back nine to

claim his first professional title with a

wire-to-wire victory at the British

Masters yesterday.

The 21-year-old, who in 2013 made

headlines by becoming the first

Englishman to win the US Amateur

for more than a century, sank four

birdies in seven holes on the way in

to win by two shots.

Dane Soren Kjeldsen and

Paraguay’s Fabrizio Zanotti overtook

Fitzpatrick on the front nine but had

to settle for a tie for second at

Woburn with Irishman Shane Lowry.

England’s Luke Donald was two

shots further back while host Ian

Poulter finished on four under.

Lithuania. They did very well to get a

draw against Slovenia. We will face a

very well-organised team.”

A LOOK AT LITHUANIA

England have never lost to Lithuania at

any level of international football, nor has

an English club been defeated by a

Lithuanian side in Uefa competition. Their

home record in Euro 2016 qualification

reads two wins and two defeats, while

their failure to reach the finals was

confirmed by Friday’s 1-1 draw in Slovenia.

Keeper Giedrius Arlauskis and midfielder

Deimentas Petravicius are on the books of

Watford and Nottingham Forest.

IN BRIEF

ANDERSON DISPUTES

PAKISTAN ‘WEAKER’ JIBE

£ CRICKET: Seamer James Anderson

has dismissed suggestions from

Pakistan skipper Misbah-ul-Haq that

England are a weaker side now than

the last time the two sides met in the

United Arab Emirates in 2012. England,

whose side included Andrew Strauss,

Kevin Pietersen, Matt Prior and Graeme

Swann, were thrashed 3-0 three years

ago. Anderson said: “I wouldn’t say

weaker. I’d say less experienced. The

quality and talent that we’ve got in the

side is easily a match for the side that

came out here in 2012.” The first Test in

Abu Dhabi gets underway tomorrow.

DJOKOVIC TROUNCES NADAL

TO WIN SIXTH TITLE IN CHINA

£ TENNIS: World No1 Novak Djokovic

thrashed Spain’s Rafael Nadal 6-2, 6-2

to claim the sixth ATP China Open title

of his career in Beijing yesterday.

Wimbledon runner-up Garbine

Muguruza, meanwhile, is set to climb to

fourth in the world rankings after

defeating Switzerland’s Timea























































































Bacsinszky 7-5, 6-4 in the WTA final.

Britain’s Johanna Konta will face world

No101 Klara Koukalova for a place in the

main draw of the WTA event in Linz after

beating France’s Julie Coin 6-4, 6-2 to

reach the final round of qualifying

yesterday.

PIRELLI BEAT MICHELIN TO

REMAIN F1 TYRE SUPPLIER

£ FORMULA ONE: Pirelli are set to

remain as the official Formula One tyre

supplier until 2019, according to the

sport’s supremo Bernie Ecclestone. The

84-year-old made the announcement

ahead of yesterday’s Russian Grand Prix,

shaking hands, although the deal still

has to be confirmed by the FIA.

JAPAN EXIT WORLD CUP

DESPITE THIRD VICTORY

£ RUGBY UNION: Japan became the

first nation to exit the World Cup having

recorded three victories after beating

the United States 28-18 in their final

Pool B match at Kingsholm last night.

The Brave Blossoms finished third in

their pool, two points behind Scotland.


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is issued in the U.K. by the London Branch of Societe Generale, authorized by the ECB, the ACPR and Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority.

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CITYAM.COM MONDAY 12 OCTOBER 2015 SPORT 31

SPORT

RUGBY UNION

Lancaster not

expecting a

squad mutiny

ROSS MCLEAN

UNDER-FIRE head coach Stuart Lancaster

is not expecting his players to

twist the knife when rugby bosses

kickstart their review into England’s

dismal World Cup showing today.

A 60-3 thrashing of minnows

Uruguay on Saturday evening did little

to lighten the mood surrounding a

harrowing World Cup exit which saw

England become the first host nation

in the tournament’s history to suffer

group-stage elimination.

The inquest into England’s

demise will allow

squad members the

chance to evaluate the

performance of Lancaster

and his lieutenants

Andy Farrell,

Graham Rowntree and

Mike Catt as the Rugby

Football Union considers

its long-term options.

“It will be interesting to see

what the players do say and that’s why

I think the review is important,” said

Lancaster. “What they say to me individually

is positive. I’ve got a good relationship

with them and we’ve all

worked hard on that.

“I want them to give their view and

that’s why I encourage the review to

take place because it is an important

part of the process.”

Former Saxons coach Lancaster intends

to bunker down in the Lake District

and pay little attention to the

remainder of the tournament, instead

using the immediate future as period

of calm introspection.

“I need to find out the details and

plans for when I am needed to discuss

things,” added Lancaster, who has a

contract to coach England until 2020.

“I will be watching the games again

and reviewing all the things we did in

the lead up to the World Cup and during

the World Cup and asking myself

the question about performance and

could we have done this better.”

Flanker Tom Wood, meanwhile, has

urged Lancaster and his coaching staff

to adopt a robust stance when the RFU

begins its inquest and picks over the

bones of England’s campaign.

“Absolutely, we’re behind Stuart,”

he said. “Personally, and I

think I can speak for most

of the lads, I want Stuart

and the coaches to come

Lancaster is planning a

period of post-World Cup

introspection

out fighting.

“They’ve done themselves

proud in terms of the

preparation and their work-rate.

Stuart’s work-rate in particular is unbelievable.

To a man, we’ve given our

all.

“The coaches will have learned an

awful not during this campaign and

over the past three and a half years.

“At the top they are going to come

under an awful lot of pressure to ring

the chances, but I can’t speak highly

enough of Stuart as a bloke and as a

coach. I back him.”

Ex-New Zealand and Wales coach

Graham Henry has also nailed his

colours to the mast and declared himself

in Lancaster’s corner, claiming it

would be a mistake to dispense of his

services.

Henry said: “He has got the ability,

it’s a no-brainer to me.”

RUGBY UNION

Ireland’s victory was tainted by injuries to key players, including Johnny Sexton

Pitch perfect Artificial surface

holds no fears for England boss

Roy Hodgson PAGE 29

Ireland victory

sullied as injury

count mounts

ROSS MCLEAN

IRELAND coach Joe Schmidt admitted

that skipper Paul O’Connell’s World

Cup is in the balance after the

influential lock was one of several

injuries to mar yesterday’s seismic

victory over France which sees his

side avoid holders New Zealand in the

quarter-final.

Leading 9-6 at half-time, secondhalf

tries from full-back Rob Kearney

and scrum-half Conor Murray secured

Ireland’s biggest victory margin over

France for 30 years, while the win also

means the Irish top Pool D.

Fly-half Johnny Sexton and flanker

Peter O’Mahony are also doubtful for

Sunday’s last-eight clash against

Argentina after suffering injuries,

although Schmidt’s immediate

concern was for Toulon-bound

O’Connell, who is set to retire from

Test rugby after the tournament.

“It [hamstring injury] doesn’t look

great to be honest. That would be a

big blow for us,” said Schmidt. “We’re

going to have to wait and see. We

won’t be able to get him scanned

until tomorrow [Monday] and we’ll

know more by Tuesday.”

Italy, meanwhile, signed off their

campaign with a 32-22 bonus-point

success over Romania which confirms

automatic qualification for the

Azzurri at the 2019 World Cup.

POOL D

TEAM PLD W D L F A PTS

Ireland 4 4 0 0 134 35 18

france 4 3 0 1 120 63 14

Italy 4 2 0 2 74 88 10

Romania 4 1 0 3 60 1294

Canada 4 0 0 4 58 1312

QUARTER-FINAL DRAW

South Africa v Wales

Saturday, Twickenham

New Zealand v France

Saturday, Millennium Stadium

Ireland v Argentina

Sunday, Millennium Stadium

Australia v Scotland

Sunday, Twickenham

FORMULA ONE

Single-minded Hamilton closes on world championship

FRANK DALLERES

BRITAIN’S Lewis Hamilton insists all

other targets are on hold until he

clinches his third world

championship, after he took a giant

step towards the title at the Russian

Grand Prix yesterday.

Hamilton recorded his ninth win

of the season in Sochi as Nico

Rosberg suffered a pedal problem

that ended his race – and with it any

realistic chance of the German

dethroning his Mercedes team-mate.

Reigning champion Hamilton will

secure the title with three races to

spare in the United States later this

month if he claims two more points

than Rosberg and nine more than

Ferrari’s Sebastian Vettel.

The Stevenage racer, 30, has now

won 43 grands prix, behind only

multiple champions Alain Prost and

Michael Schumacher, although

his only focus is on becoming

the 10th man to land a

third drivers’ crown.

“The goal is to win a

third title. Until I achieve

that there is no other

goal,” said Hamilton. “I’ve

never felt it’s ever been

done and dusted.

There are still a lot

of points available.

I’m going to take

my time and, at the

next race, work as

hard as ever. I love

going to Austin and

the track has been amazing for me

since the first race. I am looking

forward to it. It’s a track you can race

on and get close to people.”

Vettel took second ahead of Force

India’s Sergio Perez, who benefited

from a last-lap collision between

Ferrari’s Kimi Raikkonen and

fellow Finn Valtteri Bottas of

Williams.

Hamilton may have to wait until

the US Grand Prix in Texas

on 25 October to

add to his 2014

and 2008 titles,

but results

yesterday confirmed

Hamilton can tie up his

title defence this month

Mercedes as consecutive

constructors’ champions.

They too looked short of their

target but a 30-second post-race

penalty for running into Bottas saw

Raikkonen demoted from fifth to

eighth place and ended Ferrari hopes

of topping the table.

Rosberg started on pole and kept

Hamilton at bay for six laps, until his

accelerator jammed and he quickly

lost places to the Englishman, Bottas,

Vettel and Raikkonen.

Hamilton admitted that a rear

wing issue that left him unable to use

DRS in the closing stages, allied to

Rosberg’s enforced retirement, left

him anxious about the remaining

four races.

“Reliability is something we have

focused on a huge amount and for

whatever reason, we are having a few

problems with it,” he added. “We’ll be

working as hard as we can to rectify

it, but of course it is a concern for us.”

Rosberg refused to give up on his

title chances but struck a demoralised

tone after slipping behind Vettel in

the standings.

“It’s unbelievable something like

this had to happen,” he said. “But I

STANDINGS

DRIVERS

CONSTRUCTORS

HAMILTON 302 Mercedes 531

VETTEL 236 Ferrari 359

ROSBERG 229 Williams 220

RAIKKONEN 123 Red Bull 149

BOTTAS 111 Force India 92

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