BRITAIN

IT’S HAPPENED
AGAIN
ENGLAND’S
FLOPS
CRASH OUT
OF EUROPE
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EEK
W2016
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TUESDAY 28 JUNE 2016 ISSUE 2,656 CITYAM.COM
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BREXIT BRITAIN
IN WESTMINSTER Cameron
moves to steady the ship as
potential successors circle
£ Tory leadership race is
brought forward – with Boris
as favourite £ New Brexit
unit set up in Whitehall
£ Corbyn clings on as over
40 top MPs abandon him
IN THE CITY Sterling crashes to
31-year low £ UK loses its AAA
credit rating £ Shares suspended
across the FTSE as prices tumble
£ Mid-cap stocks down 13% since
Brexit vote £ Osborne insists UK is
strong enough to cope
ELSEWHERE IN EUROPE – German chancellor Angela
Merkel insists that no talks will commence until the UK
triggers Article 50, while French President Francois
Hollande calls for a quick resolution to end uncertainty.
And EU President Jean-Claude Juncker comes
under pressure from Eastern European ministers.
FULL
COVERAGE
OF THE BREXIT
FALL-OUT
PAGES 2-9
AND ONLINE
CITYAM.COM
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02 NEWS TUESDAY 28 JUNE 2016
CITYAM.COM
THE CITY VIEW
Do not ignore activists
during difficult times
AS PROFITS warnings fly and share prices tank in the postreferendum
world, business leaders will need to work out
how to steer their companies through some choppy
waters ahead.
Boards will have to step up their game in terms of governance
and strategy. And help may be at hand from what at first sight
seems like an unlikely source: activist investors.
To a board, such investors may seem like a thorn in their side.
On occasions, one can see why – a common activist ploy is to
vote against an M&A deal, equivalent in the corporate world to a
gun to the head.
In addition, high-profile activist US hedge funds run by the likes
of Carl Icahn and Bill Ackman make them come across as noisy
troublemakers, and some board members regard them as a
distraction from getting on with the jobs they’ve been
appointed to do.
But as recent events at Rolls-
Royce and Alliance Trust
show, shareholder activists
can be the catalyst for muchneeded
change at
underperforming companies.
At Rolls-Royce, shareholder
Often boards are
unwilling to take
what is essentially
free advice
ValueAct pushed for a seat on the board in exchange for not
calling for a break up of the aerospace giant, which has suffered
a string of profit warnings. It adopted a behind-the-scenes
approach in its stalking of the boardroom, with success.
Following the credit crunch, there was an increase in company
engagement with activist investors because there was less
money around. This is now likely to happen again as the UK
heads for a period of economic uncertainty during what will
presumably be the run up to Brexit.
Often boards are reluctant to take what is effectively free advice
from activists, but what is at stake is a company’s value.
Many boards have been too sleepy and insular for too long,
lunching amongst themselves. The wake up call for nonexecutives
is when remuneration is set to be hit – i.e. when it is
too late.
So if an activist rings, board members should consider picking
up the phone. It may help build trust, and even boost
performance during an especially tough period.
How securing passporting can help
stem a flight from the Square Mile
One of the biggest sources of panic
post-Brexit is passporting, something
previously little-heard of by those
outside the financial services
industry. New London mayor Sadiq
Khan told City A.M. over the weekend
that a loss of the provisions would be
“a disaster”, while Londonheadquartered
HSBC warned all the
way back in February that it would
consider moving as many as 1,000
staff to Paris if favourable
passporting rights could not be
secured in the event the UK left the
EU.
WHAT IS PASSPORTING?
In a nutshell, passporting currently
allows financial services firms which are
authorised in the UK to operate
throughout the European Economic
Area.
A LOT OF BANKING
REGULATION IN THE UK
STEMS FROM THE EUROPEAN
UNION – IS THIS THE END OF
FINANCIAL SERVICES RED
TAPE AS WE KNOW IT?
It’s unlikely that the rules the finance
sector abides by will be torn down any
time soon, if at all. Firms are only
granted passporting rights because
they comply by single market rules, so a
total scrapping is unlikely to get the best
results for the sector in the UK’s
negotiations to leave the EU.
A statement from the Financial
Conduct Authority released on Friday
pointed out that all the regulation
would remain in place for the time
being, regardless of where it originated
from.
The British Bankers’ Association in its
statement pointed out that the rules
relating to passporting in particular
“could take some time to resolve and
any changes to banking would take place
over a long period of time”.
Barney Reynolds, partner and head of
financial institutions advisory and financial
regulation at Shearman & Sterling, feels it’s
unlikely that financial services laws will be
“washed away”, although there may be
some “minor adjustments where the UK
hasn’t agreed with things that have been
done at a European level”, such as the
bankers’ bonus cap.
HOW IMPORTANT IS
PASSPORTING?
The rights are important enough to have
many big firms already considering their
options should the UK fail to secure them.
Vishal Vedi, banking partner at Deloitte,
told City A.M. that the rights were “of
fundamental importance” adding that the
passporting possibility the UK currently
offers acts as a key factor for many
overseas banks to establish branches in the
country.
However, others, while not denying that
the rights are important, do not see the
potential loss of passporting rights as the
death knell for the City. Reynolds remarked
that the rights were “not as important as
most of the media coverage so far has
suggested”, pointing out that a lot of
activity in London’s banking arena was not
cross-border at all.
In addition, Arun Srivastava, Baker &
McKenzie’s London head of financial
services, has previously told City A.M. that
“[maintaining a passporting regime] is
extremely important but it’s not exactly the
end of the world”.
IS BANKING THE ONLY
INDUSTRY AFFECTED?
No, other industries are affected by
passporting rules too. Clifford Chance has
pointed out that those working in
insurance and asset management will also
face growing concerns about what access
to the single market they will be able to
obtain in the negotiations.
WHAT HAPPENS IF GREAT
BRITAIN CAN’T GET A GREAT
DEAL ON PASSPORTING
REGULATIONS?
Although many agree that it’s far too
early to even guess what the final deal
will look like, if the worst did happen
and the UK financial services industry
lost access to the single market, banks
would have to head to the drawing
board.
Vedi explained: “The banks that are
based here will then need to think very
carefully around how they structure
themselves to continue to do business
with the EU and in many cases that will
then mean having to establish, or think
about establishing separate subsidiaries
or branches in the EU.”
Simon Gleeson, regulatory partner at
Clifford Chance, warned: “There is no
prospect of UK banks maintaining a
passport unless the UK agrees to,
among other things, freedom of
movement and full adoption of all
present and forthcoming EU laws – this
is exactly the discussion which has been
being playing out in Switzerland. Thus
things will have to change but it is too
early to say how, or how significant the
impact will be.”
However, Thomas Donegan, partner at
Shearman & Sterling, told City A.M.:
“What we’re seeing at the moment is a
lot of contingency planning. It makes
sense as a bank to look at where you’d
stand in the worst case scenario and
then work out what you’d do to plan
around that, but it’s not the time to start
shifting half of your business to France.”
HAYLEY KIRTON
Follow us on Twitter @cityam
FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL
GOOGLE TO BE HIT BY NEW
COMPLAINT FROM BRUSSELS
Brussels is to step up the antitrust
pressure against Google next month
with a fresh official complaint and a
sharpening of its first case against the
company from last year.
Margrethe Vestager, the EU’s
competition commissioner, is planning
to issue two separate “statements of
objections” against the company for
allegedly abusing its market power in
online advertising and shopping, said
people familiar with the case.
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
OAKTREE EXEC ARRESTED ON
UAE THEFT CHARGES
A London-based executive of Oaktree
Capital, one of the biggest distresseddebt
firms in the world, has been
arrested in the UK at the request of
authorities in the UAE after being
accused of stealing $264m and now
risks extradition.
MORRISONS TREATS
SUPPLIERS THE WORST
Supermarket giant Morrisons has the
worst record among major grocers for
mistreating suppliers, according to a
report by Christine Tacon who heads
the industry watchdog Groceries Code
Adjudicator (GCA). A fifth of respondents
to a survey of more than 1,000 suppliers
and trade associations said that
Morrisons “rarely” or “never” complied
with industry rules governing supply
chain relations. Morrisons, Iceland and
Asda were thought to be most likely to
be in breach of the legally binding code
of practice, while Aldi, Sainsbury’s and
Lidl were most likely to comply
“consistently well” with the rules. Tacon
has launched a formal consultation.
MICROSOFT CUSTOMER GETS
$10,000 PAY-OUT
Microsoft has paid a customer
thousands of dollars in compensation
after its new software Windows 10
automatically tried and failed to
download on to a computer. The
company paid Teri Goldstein $10,000
(£7,600) after the failed update left her
computer unusable for days on end.
GEORGE SOROS: I DID NOT
BET AGAINST THE POUND
George Soros, the billionaire who bet
against the pound on Black Wednesday
in 1992, did not repeat the trick during
the Brexit turmoil that has so far wiped
11 per cent off the value of sterling
against the dollar.
PRIVATE EQUITY FIRM TAKES
STAKE IN SKULLCANDY
Skullcandy said yesterday a privateequity
firm had taken a nearly 10 per
cent stake in the company and made an
unsolicited buy-out offer, potentially
disrupting the headphones maker’s
deal to be acquired by consumertechnology
provider Incipio.
GE STRIKES DEALS TO SELL
RESTAURANT ASSETS
General Electric has struck three
different deals to sell the bulk of its US
restaurant finance assets, the latest deal
in its broader strategic move to focus on
its industrial businesses. The sale would
represent an ending net investment of
about $1.4bn on 31 March, GE said.

CITYAM.COM
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Corbyn fights on
as party revolt
hits second day
MARK SANDS
@mksands
LABOUR leader Jeremy Corbyn vowed
to fight to retain control of his party
last night after almost all his front
bench withdrew their support for
him.
Of the party’s 31 shadow cabinet
members, 20 have now departed since
early Sunday morning, when shadow
foreign secretary Hilary Benn was
sacked.
Labour deputy leader Tom Watson
reportedly told Corbyn that he held
“no authority” among MPs.
Angela Eagle, who resigned as
shadow business secretary, was almost
in tears when on BBC Radio 4’s World
at One yesterday. She earlier wrote:
“Too many of our supporters were
taken in by right-wing arguments and
I believe this happened, in part, because
under your leadership the case
to remain in the EU was made with
half-hearted ambivalence rather than
full-throated clarity.”
Despite a stormy meeting with MPs,
Corbyn vowed to fight on. Speaking to
left-wing supporters outside parliament,
he said:“Don’t let the media divide
us, don’t let those people who
wish us ill divide us. Stay together,
strong and united, for the kind of
world we want to live in.”
Shadow chancellor John McDonnell
accused a “handful of MPs” of trying
to “subvert” the party.
Jeremy Corbyn meets supporters of the Momentum left-wing lobby group
TUESDAY 28 JUNE 2016
BREXIT
NEWS
03
Osborne puts
emergency
budget on hold
EMMA HASLETT
@emmahaslett
GEORGE Osborne sought to calm
markets yesterday, saying there will
be no emergency Budget at least
until a new Prime Minister is in
place.
In his first public appearance
since the EU referendum result,
Osborne said Britain will “confront
what the future holds for us from a
position of strength”.
“Growth has been robust,
employment is at a record high…
and the Budget deficit has been
brought down.
“That is not the outcome I
wanted… [but] now the people have
spoken, we in this democracy must
accept the result… I will do
everything I can to make it work
for Britain.”
He added: “It is inevitable that
Britain’s economy will have to
adjust.”
WELCOME TO OUR WORLD
Government launches civil service
Brexit unit to develop leaving plans
MARK SANDS
@mksands
THE GOVERNMENT has set up a
“Brexit unit” to develop plans for the
UK’s departure from the EU ahead of
the selection of a new Prime
Minister.
The team will be made up of civil
servants from across Whitehall and
will present options to the Cabinet
about how the government can
respond to last week’s historic vote.
Chancellor of the Duchy of
Lancaster Oliver Letwin will play a
“facilitative role” for the project,
which will see civil servants liaise
with devolved authorities, including
the London Assembly.
Downing Street is yet to set out the
numbers of staff involved, but David
Cameron said the team would
include the civil service’s “best and
brightest”.
It will consist of officials from the
Treasury, Foreign Office and other
departments.
The unit will take no decisions on
the UK’s negotiating stance, instead
reporting to the core cabinet, which
includes Brexit campaigner and
justice secretary Michael Gove.
However, this also means that
Boris Johnson, the favourite to
succeed Cameron, is currently
excluded from exit plan research.
Sajid Javid to meet business
groups to discuss EU concerns
MARK SANDS
@mksands
SAJID Javid will today meet business
leaders to discuss the challenges of the
UK’s Brexit vote.
The business secretary – thought to
be courting support for a joint Tory
leadership bid with work and pensions
secretary Stephen Crabb – will meet
groups, including the Confederation of
British Industry and the Institute of Directors.
He will argue Brexit will generate
risks, but add there will also be opportunities,
and he will ask them to share
their concerns.
Ahead of the event, Javid said: “My objective
now is to ensure that the
negotiation of our future relationship
with the EU is carried out in the interest
of UK companies, investors, potential
investors and workers.”
An IoD spokesperson said: “George
Osborne has been trying to calm the
markets, but it’s thin on the detail.
“We want to know about business
support like lending. We know they
have been planning, so we want to see
how far they have got.”

04 NEWS TUESDAY 28 JUNE 2016
BREXIT
Britain is well
placed to handle
Brexit says PM
MARK SANDS
@mksands
PRIME MINISTER David Cameron has
sought to issue reassurances on the
UK’s strength, after markets continued
to struggle on the second day of trading
since the vote to leave the EU.
Speaking in the House of Commons,
yesterday, Cameron said that Britain is
in “a position of strength” as it seeks to
confront the fall-out from the Brexit
vote.
“We have today one of the strongest
major advanced economies in the
world and we are well-placed to face
the challenges ahead,” he said, citing
the UK’s continued low inflation,
which sits below the target of two per
cent, high employment and strong capital
requirements on banks.
“In the coming days, the Treasury,
the Bank of England and the Financial
Conduct Authority will continue to be
in very close contact. They have contingency
plans in place to maintain finan-
cial stability – and they will not hesitate
to take further measures if
required,” Cameron added, noting that
the Bank of England has already
pledged to make £250bn of funding
available to support banks and markets.
“It is going to be difficult. We have
already seen that there are going to be
adjustments within our economy,
complex constitutional issues, and a
challenging new negotiation to undertake
with Europe,” he said.
Labour leader Jeremy Corbyn
responded by asking Cameron to drop
fiscal rules which require a surplus by
the end of the parliament, for the debtto-GDP
ratio to fall in every year of the
parliament and for welfare spending to
be capped.
“What the economy needs now is a
clear plan for investment, particularly
in those communities that have been
so damaged by this government and
that have sent such a very strong message
to all of us last week,” Corbyn said.
Former mayor of London Boris Johnson remains the man to beat to Downing Street
Tories accelerate plans to pick
the UK’s next Prime Minister
MARK SANDS
@mksands
THE CONSERVATIVES have agreed a
timetable for their leadership battle,
which will crown the UK’s new Prime
Minister.
When David Cameron resigned, he
proposed having a successor in time
for the party’s conference in October.
However, the party has now
accelerated the process, pledging to
find a new leader by 2 September.
Nominations will open tomorrow
evening and will close at midday on
Thursday.
Boris Johnson is considered to be
the favourite, with bookmakers
offering the former London mayor at
evens this weekend.
CITYAM.COM
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King hits out at
Treasury over
EU referendum
JOSEPH MILLIS
@joemillis59
THE FORMER governor of the Bank
of England yesterday slammed
George Osborne and his Treasury
team over their Brexit campaign.
And Lord Mervyn King said they
would now need to row back from
exaggerated claims that left him
“baffled”.
“The Treasury is in a difficult
position now because it did make
forecasts that were exaggerated in
terms of at least the certainty and
now will have to row back,” he said.
In a BBC interview, he also
accused the Remain campaign of
treating people considering voting
Leave like “idiots”, noting that
voters had not been impressed by
“scaremongering tactics”.
Calling for “a bit of calm now”,
King, who was governor between
2003 and 2013, said: “I don’t think
people should be particularly
worried, markets move up, markets
move down. We don’t yet know
where they will find their level and
the whole aspect of volatility is that
there is a trial and error process
going on before markets discover
what the right level of stock mark -
ets and exchange rates actually are.”

CITYAM.COM
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S&P and Fitch downgrade Britain
WILLIAM TURVILL
@wturvill
STANDARD and Poor’s and Fitch
downgraded the UK’s credit rating
last night after last week’s Brexit vote.
S&P took the UK’s rating down two
notches, from AAA to AA, with a negative
outlook, describing the Brexit
vote as “a seminal event”.
Fitch downgraded the UK from AA+
to AA, with a negative outlook.
Markets predict
BoE rates could
fall below zero
JAKE CORDELL
@JakeCordell
MARKETS are pricing in a 15 per cent
chance of the Bank of England
slashing interest rates below zero as
financial markets continue to wobble
after the UK’s historic vote to leave
the EU last week.
As trading was suspended on
banking shares after another day of
double-digit falls, the market
outlook on the future path of
interest rates headed south.
Markets are now fully pricing in at
least one cut to interest rates – which
have been at their lowest level in the
Bank’s 300-year history of 0.5 per
cent since March 2009 – before the
end of the year.
That is despite all three major
ratings agencies cutting their
outlook on the UK’s gold standard
credit rating.
Analysis by traders Hargreaves
Lansdown showed markets are also
putting the chances of Bank
governor Mark Carney cutting
interest rates into negative territory
at one in six. Carney has previously
been dismissive of the idea of
negative rates, but did warn a sharp
depreciation in the value of sterling
following a vote to leave would
create a difficult decision for the
bank.
A weaker pound could see
inflation jump above the Bank’s two
per cent target fairly quickly, while
financial instability may result in
higher unemployment and weaker
growth.
“The Brexit vote has substantially
moved the dial on interest rate
expectations, with markets now
pricing in a significant chance of
rates going negative in the UK,” said
Laith Khalaf, senior analyst at
Hargreaves Lansdown.
“The Bank may find itself between
a rock and a hard place,” he added.
Meanwhile, Sky News reported that
Moody’s has signalled to a number of
the UK’s largest banks that it plans to
revise down the outlook for their
credit ratings to negative from positive
or stable.
“The UK vote to leave the European
Union in the referendum on 23 June
will have a negative impact on the UK
economy, public finances and political
continuity,” Fitch said.
S&P said: “In our opinion, this outcome
is a seminal event, and will lead
to a less predictable, stable, and effective
policy framework in the UK.
“We have reassessed our view of the
UK’s institutional assessment and
now no longer consider it a strength
in our assessment of the rating.”
S&P also noted that a Remain vote in
the EU referendum in Scotland and
Northern Ireland “creates wider constitutional
issues for the country as a
whole”.
TUESDAY 28 JUNE 2016
BREXIT
NEWS
GOLD STANDARD Precious metals soar
Bond yields hit
record lows as
Brexit bites
05
RETAIL gold
investors are
booking profit
on metal
bought to
hedge against
the Brexit vote
on Thursday.
As investors
raced to safe
havens, the
yellow metal
hit $1,324.55
an ounce, up
0.7 per cent.
JAKE CORDELL
@JakeCordell
BORROWING costs for the UK
government have dropped to their
lowest on record as investors flock
to the safe haven of government
debt amid Brexit uncertainty.
Yields on the benchmark 10-year
Treasury bonds plunged to 0.94 per
cent, down an unprecedented 0.14
percentage points – or 14 basis
points.
It is the first time the amount
payable in interest on 10-year UK
debt has fallen below one per cent,
having already been at their lowest
ever level in the run-up to the
referendum vote.
This means investors will receive
just 94p in interest on every £100 of
long-term government debt they
own.
Lower yields typically indicate
investors have more faith in the
ability of the issuer of that debt to
pay it back. By comparison, yields
on 10-year debt issued by the Greek
government are currently 8.7 per
cent.
For Germany, they are minus 0.11
per cent, meaning investors pay the
government to keep their money
safe.
The fall in yields comes as all
three major credit ratings agencies
cut the outlook on the UK’s credit
rating to negative and the
probability of the UK government
defaulting on its debt jumped to its
highest level in three years.
Neil Williams, chief economist at
Hermes Investment Management,
told City A.M.: “In the rating
agencies’ eyes, Brexit is putting the
UK’s credit worthiness under the
spotlight. But the referendum
outcome is only the latest chapter
in what will prove to be a
protracted story of lower-for-longer
bond yields.”
BHP Bilton closed
down at 1.68 per
cent to 841.90p
Mixed fortunes for London miners
JESSICA MORRIS
@jssmorris
THE FALL-OUT from the UK’s Brexit
vote was a boon for precious metal
miners yesterday, but this wasn’t the
case for the whole sector.
Shares in Mexican precious metals
miner Fresnillo swelled seven per
cent to 1,483p per share, while
Randgold Resources added 9.02 per
cent to 8,035p and gold miner
Centamin finished the day 8.15 per
cent higher at 130.10p.
“In light of the UK voting for a
Brexit, we expect gold to provide a
haven for investors. Coupled with
sterling weakness we see upgrades for
all gold producers in the near term,”
Kieron Hodgson, a commodity and
mining analyst at Panmure Gordon,
said.
But BHP Billiton closed down 1.68
per cent to 841.90p, while Anglo
American ended 4.42 per cent lower
at 629.90p.
Glencore finished down 2.8 per
cent at 135.55p and Lonmin slumped
5.69 per cent to 161.50p per share.
Copper prices rose yesterday as
funds and traders reversed short-term
bets of low prices on expectations of
economic stimulus, Reuters reported.

06 NEWS TUESDAY 28 JUNE 2016
BREXIT
Red flags fly for
European banks
post-Brexit vote
HAYLEY KIRTON
@HayleyLEK
LONDON is not the only city feeling
the burn in the banking industry, as
many other European cities are experiencing
some fall-out from the referendum
result.
Shares in Deutsche Bank and Credit
Suisse slid to their lowest level ever
yesterday, before closing down 6.2 per
cent and 9.2 per cent respectively.
Meanwhile, Societe Generale closed
down 8.4 per cent.
Italian banks have fared particularly
poorly, with Unicredit closing down
8.1 per cent and Banca Monte dei
Paschi down 13.3 per cent.
According to a note from Michael
Hewson, chief market analyst at CMC
Markets UK, the Italian banks are not
only battling through Brexit uncertainty,
but also have a vast amount of
non-performing loans raising questions
about their solvency.
Hewson highlighted that Spanish
banks were also juggling two sets of
uncertainty at once, after acting
Prime Minister and Spain's conservative
leader Mariano Rajoy failed to secure
an overall majority in the
elections over the weekend.
Referring the banking sector at large
rather than any specific company,
Vishal Vedi, banking partner at Deloitte,
told City A.M.: “More broadly,
the European banks are having to deal
with the same challenges and issues
that the UK banks are going to.
“There’s a currency volatility [and]
they will need to take a view – investors
and the banks themselves – as
to what the implications are going to
be for the long-term economic outlooks,
both of the EU countries and
the UK.”
Vedi added: “Continental Europe,
that has been through certain economic
difficulties, seems to be recovering,
and this again just creates
uncertainty as to whether that can be
sustained.”
Virgin Money’s share
price was down 25 per
cent to 205p
Challenger banks’ share prices
struggle as Britain ditches EU
WILLIAM TURVILL
@wturvill
CHALLENGER banks are already
finding Brexit life challenging, their
share prices suggest.
While the likes of Barclays and
Royal Bank of Scotland (RBS)
experienced double-digit falls
yesterday, some challenger banks
have fared even worse.
To begin the week, Shawbrook’s
shares were down 30 per cent to
163p. And this came after its price
fell 21 per cent after the result of the
EU vote, from 295p on Thursday to
233p. Elsewhere, Virgin Money’s
share price was down 25 per cent to
205p after falling from 366.4p to
275.3p between Thursday and Friday.
CITYAM.COM
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Fund managers
hard hit by the
EU referendum
WILLIAM TURVILL
@wturvill
LONDON-listed asset managers
have been among the companies
worst hit by Brexit on the stock
market.
Schroders’ share price was down
by around nine per cent to 2,164p
yesterday.
This followed a 12 per cent fall
from 2,711p on Friday after it
emerged that the UK had voted to
leave the European Union in the 23
June referendum.
Elsewhere, Legal and General
Group’s price was down 11 per cent
at the start of the week to 167p
after a 20 per cent fall on Friday.
After a 16 per cent fall to 775p at
the end of last week, St James’s
Place also experienced a slow start
to the week, with shares down
eight per cent at 712p.
Aberdeen Asset Management
started yesterday as it ended last
week, with shares down 11 per cent
to 246p after an 11 per cent dip on
Friday.
Hargreaves Lansdown performed
better yesterday, down nine per
cent to 1,069p, than on Friday,
when its shares fell 13 per cent to
1,211p.

CITYAM.COM
FOR MORE ON THE BREXIT FALL-OUT GO TO CITYAM.COM
DON’T LOSE TRACTION The boss of
McLaren urges swift Brexit manoeuvring
TUESDAY 28 JUNE 2016
BREXIT
EasyJet shares nosedive after it
warns of post-Brexit turbulence
NEWS
07
EMMA HASLETT
@emmahaslett
SHARES in budget airline EasyJet fell
yesterday, after it warned the
outcome of the EU referendum is
likely to hit it where it hurts – on top
of French air traffic control strikes
and the EgyptAir tragedy.
The airline’s share crashed 22.32
per cent to close at 1,020p, after it
said in a statement that it was
expecting economic and consumer
uncertainty thanks to the UK’s
decision to ditch the EU.
The airline said it expected revenue
per seat to be down by “at least a midsingle-digit
percentage” compared
with the second half of last year, amid
Brexit turmoil hitting markets.
Air traffic control strikes in France
led to more than 700 cancellations in
June, over 300 of which took place in
the past seven days.
EASYJET
1,600
1,500
1,400
1,300
1,200
1,100
1,000
P
27 June
1,020.00
21 June 22 June 23 June 24 June 27 June
MCLAREN chief executive Mike Flewitt has urged the government to create stability
quickly following the Brexit vote. Flewitt said the impact of the vote will be
cushioned if the government can find a way to restore calm in the markets.
Housebuilders
are hit by Brexit
vote demolition
EMMA HASLETT
@emmahaslett
SHARES in all the FTSE 100-listed
housebuilders were suspended from
trading for five minutes yesterday
morning as housebuilders fell for the
second consecutive trading day.
Taylor Wimpey was the first to trigger
the London Stock Exchange’s
so-called circuit breaker by falling
more than eight per cent on its opening
price, causing it to be suspended
for five minutes, as investors showed
their nerves over the outcome of last
week’s EU referendum.
At the close it was 14.92 per cent
down at 115.80p.
That was followed by Berkeley
Group, the London-focused builder,
which was down 13.2 per cent at
2,251p in lunchtime trading. It pared
its losses to close down 9.72 per cent.
Barratt fell 19.42 per cent to 354.40p,
and Persimmon dropped 13.82 per
cent to 1,310p.
The falls came after estate agent Foxtons
became one of the first to issue a
profit warning on the back of the
vote, saying it expects “significantly
lower” earnings this year.
However, analysts suggested the falls
were temporary, rather than part of a
longer trend.
“Time is relative. A week is a longer
time in politics than it is housebuilding,”
said Jefferies analysts.
“We may start the week with many
political uncertainties, but we remain
certain that there is a fundamental
shortage of housing.
“However, the strength and length
of the autumn and the following
spring selling seasons will, in our
view, provide a better indicator of the
health of the new build housing market.
We will get colour on the cancellation
rates during the July/August
results season but will have to wait for
the autumn trading updates for news
on the autumn selling season.
“One theme raised in the post Brexit
debate is that many voters were disillusioned
with the growing inequality
of wealth across the UK, asking ‘What
has Europe done for me?’. For the vast
majority of households, their home is
their largest store of wealth and all political
parties are very aware that
homeownership is falling.”
Foxtons issues a profit warning
after EU referendum shock
OUT OF EUROPE,
BUT NOT OUT OF POCKET.
CurrencyFair.com
EMMA HASLETT
@emmahaslett
SHARES in struggling estate agent
Foxtons plummeted yesterday after it
became one of the first property
giants to issue a profit warning off
the back of the UK’s Brexit vote.
Shares closed down 22.59 per cent
to 104.50p after the company put out
a statement saying challenging
conditions it had previously referred
to “are now likely to continue for at
least the remainder of the year”.
“We therefore expect full-year 2016
group revenues and adjusted
earnings before interest, taxation,
depreciation and amortisation to be
significantly lower than [the] prior
year.”
The company has had a difficult
few months, as fears over the
outcome of the EU referendum
combined with attempts by George
Osborne to slow house price growth
pushed down sales at Foxtons, which
focuses on the top end of London’s
property market.
Authorised by the Central Bank of Ireland to provide Payment Services within the 28 member states of the European Union pursuant to

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CITYAM.COM
TUESDAY 28 JUNE 2016
NEWS
09
Angela Merkel rules out
informal talks before
Article 50 is triggered
WILLIAM TURVILL
@wturvill
GERMANY, France and Italy have said
the EU will not hold talks with the UK
on Brexit until Article 50 has been
triggered.
Speaking alongside French President
Francois Hollande and Italian
Prime Minister Matteo Renzi in
Berlin, German chancellor Angela
Merkel described the UK’s vote for a
Brexit as a “very painful and regrettable
decision”.
She said: “We are in agreement that
article 50 of the European treaties is
very clear – a member state that
wishes to leave the European Union
has to notify the European Council…
“There can’t be any further steps
until that has happened. Only then
will the European Council issue
guidelines under which an exit will
be negotiated.
“That means that, and we agree on
this point, there will be neither informal
nor formal talks on a British exit
until the European Council has
received the… request for an exit from
the European Union.”
Hollande spoke of the importance of
negotiating the UK’s exit as quickly as
possible. “There is nothing worse than
uncertainty,” he said. “Our responsibility
is not to lose time in dealing
with the question of the UK’s exit and
the new questions for the 27.”
Merkel has also said “it shouldn’t
take forever” for the UK to trigger
Article 50. The German leader said
over the weekend: “[There is] no need
to be particularly nasty in any way in
the negotiations; they must be conducted
properly.”
French, German and Italian leaders said Article 50 must be triggered before any talks
Branson backs
calls for a new
EU referendum
MARK SANDS
@mksands
VIRGIN founder Sir Richard
Branson is urging voters to sign a
petition calling for a second EU
referendum, although Downing
Street maintains a second vote “is
not on the cards”.
Branson, who campaigned for
Remain, said many voters had been
misled by the Leave campaign.
He accused campaigners of
backtracking on key pledges and
bemoaned the impact of the vote on
the economy. “Two years before
Brexit will even become reality,
according to EU rules, it is already
having massive consequences on the
UK economy, and on society. Brexit
has fractured the country more
than any other event in recent
memory,” he said.
The petition, signed by more than
3.6m people, calls on the govern -
ment to hold a second referendum
based on turnout and majority.
New indy vote last thing
Scotland needs: No 10
MARK SANDS
@mksands
DOWNING Street officials have
rejected calls for a second Scottish
independence referendum.
Scottish First Minister Nicola
Sturgeon said last week that,
following the UK’s vote to leave the
EU, a second vote on Scotland’s
independence was “highly likely”
due to the support for membership
north of the border.
However, David Cameron’s staff
have noted that no formal
proposals have yet been made for a
second vote, adding that any plans
to would be viewed dimly.
“There was a legal and fairly
decisive referendum nearly two
years go. The reason for Scotland to
be in the UK are just as strong
now,” the Prime Minister’s
spokesperson said yesterday.
“We need to focus on
getting the best deal for
Scotland and the UK and
the last thing that
Scotland needs now is
another divisive
referendum.”
Even before last week’s
Brexit decision result, the
SNP has maintained that
Brexit would lead it to call for
a new independence vote.
In October 2015, Sturgeon was
already describing a second vote as
“inevitable”.
And speaking in the House of
Commons yesterday, SNP
Westminster leader Angus
Robertson again restated the
nationalists’ argument.
“We have no intention
whatsoever of seeing
Scotland taken out of
Nicola Sturgeon says
Scotland voted for the EU
Europe,” he said.
“We are a European
country and we will stay a
European country.
“If that means we have to have an
independence referendum then so
be it,” Robertson said.
Britain can afford no more delays on airport
expansion Gatwick chief executive to warn
MARK SANDS
@mksands
THE BOSS of Gatwick Airport is to
renew calls for a new runway,
arguing it is the only option
suitable for expansion.
Speaking at the National
Infrastructure Forum, Gatwick
chief executive Stewart Wingate
will today say that Britain can no
longer afford delays to airport
expansion.
Wingate will also argue that
only Gatwick can balance the
need for economic growth with
environmental concerns.
“In these uncertain times that
means Gatwick can give the
country certainty of delivery. And
Britain cannot afford yet more
delay,” he will say.
“We have pledged we can
deliver by 2025, at a cost that
everyone can afford, without
public subsidy and at a fraction of
the environmental impact of
Heathrow. None of that has
changed.”
It comes almost exactly a year
after the Airports Commission
recommended a new runway at
Heathrow.
Last July, Sir Howard Davies
said that proposals for a new
runway at Heathrow Airport, if
combined with measures to
address environmental and
community impacts, offered the
greatest benefits.
Yesterday, 50 business leaders
joined with the Let Britain Fly
campaign to warn that the UK’s
vote to leave the EU made the
need for a decision more urgent
and called for an improvement on
“glacial” progress.
Last year, the government
delayed a decision until this
summer to explore
environmental issues.
A Downing Street spokesperson
yesterday said: “The timetable for
that hasn’t changed.”

10 NEWS TUESDAY 28 JUNE 2016
UK audit bosses:
HS2 timetable
will face delays
WILLIAM TURVILL
@wturvill
THE DEPARTMENT for Transport set
an “unrealistic timetable” for the
completion of High Speed 2 (HS2), the
National Audit Office (NAO) has said.
A report out today says the 2026 target
for the opening of phase one of
HS2 is “at risk despite good progress
with some major procurements”.
Amyas Morse, head of the NAO, said:
“HS2 is a large, complex and ambitious
programme which is facing cost
and time pressures.
“The unrealistic timetable set for HS2
Ltd by the department means they are
not as ready to deliver as they hoped to
be at this point. The department now
needs to get the project working to a
timescale that is achievable.”
Last month, an academic study told
how HS2 could be up to five times
more expensive than its French equivalent.
The academics, led by Professor
Tony May from Leeds University and
transport consultant Jonathan Tyler,
said that France’s TGV line from Tours
to Bordeaux was costing £20m per
km, compared with a projected cost of
around £105m per km for HS2.
Transport minister Robert Goodwill
said: “HS2 is on track and the NAO
agrees. We have strong cross party support
and are on schedule to gain the
powers needed to start building HS2,
which the NAO acknowledges is a significant
achievement.”
Dave Whelan could stretch to forking out £70m for the Fitness First gym chain
JJB boss flexes muscles to snap
up Fitness First’s UK operations
JOSH MARTIN
@JoshMartinNZ
JJB SPORTS founder Dave Whelan is
in talks to buy the British operations
of gym chain Fitness First.
The multi-millionaire business
tycoon’s DW Sports is set to fork out
£70m for a takeover of the business,
Sky News reported yesterday.
Whelan, who also owns Wigan
Athletic Football Club, has been in
talks with Fitness First for over a
month. He reportedly wants to
combine the gym chain’s outlets
with the 70-strong chain of DW
health clubs.
A stock market float for the
combined group could also be on the
cards for 2018.
CITYAM.COM
Accounting
probe for HBOS
audit practices
HAYLEY KIRTON
@HayleyLEK
THE ACCOUNTING watchdog said
yesterday that it has started a probe
into KPMG over the HBOS audit.
More specifically, the Financial
Reporting Council (FRC) is looking
into the conduct of KPMG Audit
relating to its audit of HBOS for the
year ended December 2007.
In 2008, HBOS collapsed and
needed to be bailed out by Lloyds,
shortly after the big four firm had
given the health of the business a
thumbs up.
A KPMG spokesperson said that
the firm had cooperated with all the
inquiries and investigations relating
to the matter to date and would
continue to do so, but “trust and ask
that the investigation be completed
as quickly as possible”.
The FRC had originally decided to
not to open a full investigation into
the auditor.
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Ryanair demands EU flies
in to prevent French strikes
JESSICA MORRIS
@jssmorris
BUDGET airline Ryanair is urging
the EU to take action after the
latest airline strike orchestrated
by French air traffic control
unions.
It comes as the low-cost carrier
was forced to cancel 166 flights
to, from and over France today. It
said that 30,000 Ryanair
customers will have had their
flights cancelled, while more
than 100,000 others will suffer
severe delays.
It wants the European
Commission to require French
ATC unions to engage in binding
arbitration rather than strikes,
while allowing Europe’s other
ATCs to operate overflights over
France and protect flights over
France amid the strikes.
Kenny Jacobs, chief marketing
officer at Ryanair, said: “It is
time for action by the European
Commission following this latest
French ATC strike aimed at
disrupting as many travel plans
as possible.”
He continued: “The frequency
of these strikes, right in the
middle of holiday season only
serves to underline how urgent
action is required to help reduce
the impact of these strikes.
“After last week’s Brexit vote in
the UK, the EU Commission must
begin to deliver real benefits for
consumers, and urgent action to
ameliorate the effects of these
repeated French ATC strikes and
prevent them disrupting the
travel plans of millions of
citizens.”
Eurotunnel boss warns over
migrant pressures post-Brexit
PIERRE SAVARY
THE HEAD of Eurotunnel yesterday
warned that Britain’s decision to
leave the European Union could
lead to an increase in the number
of migrants trying to enter Britain
via Calais on the French coast.
“There could be increased
migrant pressure during the
summer and because of Brexit as
migrants will try to cross at any
cost before it [Brexit] is
implemented,” Jacques Gounon
said.
Gounon was speaking at a news
conference in Calais, the main
entry and exit point between
Britain and France via road, sea
and the Eurotunnel rail link.
A migrant camp that became
known as the jungle grew up there
last year, becoming home to
thousands hoping to head for
Britain and causing transport
disruption until tighter security
made leaping on lorries and
walking through the tunnel more
difficult.
Gounon was presenting extra
security arrangements which
include the deployment of two
drones equipped with cameras to
fly around its Coquelles terminal
in northern France.
Shares in Eurotunnel have fallen
27 per cent since last Thursday’s
referendum.
The drop has come despite
Gounon’s reassurances that the
business would not suffer as a
result.
Reuters
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12 NEWS TUESDAY 28 JUNE 2016
THECAPITALIST
EDITED BY EDITH HANCOCK
CITYAM.COM
Got A Story? Email
thecapitalist@cityam.com
No love lost between
Brexiting campaigns
IF THE EU referendum taught us anything,
it’s that the Brexiters don’t
mince their words, even if they’re on
the same side.
“Leave.EU has upset quite a few people,”
said a statement from the anti-
EU group yesterday. “So far, we have
managed to clock eight
impending cases.”
Following complaints
about Leave.EU taking
comments out of context
to boost the Brexit
movement from former
Spice Girl Victoria Beckham
(pictured), ex-England
footballer Gary
Lineker and Nasa, the
group’s co-chair and Ukip
donor Arron Banks issued a
“heartfelt apology” to those affected.
“Bring it on, luvvies,” said Banks
after Remainers Lineker and Beckham
complained that their negative comments
on the euro were turned into
promotional posters for Leave.EU.
The 50-year-old millionaire also had
words for the Electoral Commission
after it investigated the anti-EU group
for its involvement in and funding of
failed Brexit concert Bpoplive. Earlier
this month, Leave.EU accused the EC
of trying to “shut down” the concert
in Birmingham. Several acts had
already cancelled after finding out
who was bankrolling the event.
Keeping things short and
sweet, Banks told the Commission
to “bite me.”
Ukip donor Arron Banks
told the Electoral
Commission to “bite me”
Even Brexit-backing
Superdrug founder Peter
Goldstein had grievances after
the firm’s logo was used by
Leave.EU without permission and was
brought into association with the
campaign. “Sorry about that,” said
Ukipper Banks.
Vote Leave responded to Banks in
kind, telling The Capitalist: “An apology
is a fitting way for him to end his time
in politics.” Meow.
REMAINERS SET THEIR TARGET
Good news for Inners who are
heartbroken after last week’s Brexit; two
“ordinary voters” are crowdfunding to set
up a dating app for europhiles. Early
signups to “Remainder” will be in line for
invitations to exclusive events in In-voting
cities like London, Brighton, Liverpool,
Manchester, Glasgow and Edinburgh. The
pair say their signup target is 16,141,241.
QUOTE OF THE DAY
Scratching my head
for an appropriate
quote on the long run
Economics reporter
Soumaya Keynes takes
inspriation from her
ancestor John
Maynard Keynes’
saying “in the long
run we are all
dead” as ex-BoE
chief Lord King
says the UK
economy won’t
face long-term
damage.
SAFE CHIEF
TAKES RISK
Randgold’s
boss lives on
the wild side
AS THE pound is still
struggling after Thursday,
investors have been
looking to buy into gold as
a safe bet. Meanwhile,
mining firm Randgold’s
boss Mark Bristow prefers
to take risks. The boss is
currently on a charity
motorbiking tour of Africa.
He started in Mombasa in
May, and will reach the
mouth of the Congo soon.
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CITYAM.COM
TUESDAY 28 JUNE 2016
NEWS
13
GW pharma shares flying high as
cannabis-based drug hits target
VIDYA L NATHAN
BRITISH drug developer GW
Pharmaceuticals yesterday said its
experimental cannabis-derived
epilepsy drug met the main goal to
reduce frequency of seizures in a latestage
study.
The company said the drug,
Epidiolex, significantly reduced the
monthly frequency of short-term
seizures in people suffering from a
rare form of epilepsy called Lennox-
Gastaut syndrome (LGS).
Lennox-Gastaut syndrome is a
rare kind of epilepsy that shows
onset between three and five years
of age.
GW Pharma estimates there are
about 14,000-18,500 patients with
LGS in the US, and 23,000-31,000 in
Europe.
GW Pharma is testing Epidiolex in
four different indications, three of
which are forms of epilepsy and all
three have been granted orphan
drug designation from the US Food
and Drug Administration.
Orphan status is granted to
drugs aimed at treating rare
diseases, giving the developer
incentives such as a seven-year
marketing exclusivity for use in
the US.
Shares in GW Pharma surged
11.96 per cent to close at 566.50p. Reuters
PwC said it would cooperate with the Financial Reporting Council’s BHS investigation
PwC in the eye
of watchdog as
BHS net widens
HAYLEY KIRTON
@HayleyLEK
THE ACCOUNTANCY industry watchdog
yesterday announced it will
launch a probe into PwC over BHS.
The Financial Reporting Council
(FRC) said it will take a closer look at
the professional services firm’s audit
of the retailer for the year ended 30 August
2014.
A PwC spokesperson said: “We will
cooperate fully with the FRC in its
enquiries.”
The FRC has previously been urged to
carry out an investigation into the advisers
involved in the £1 sale of BHS to
Retail Acquisitions in 2015.
Bedford and Kempston MP Richard
Fuller wrote to the watchdog in April,
not long after the troubled retailer was
put into administration, while Simon
Walker, director general of the Institute
of Directors (IoD), approached the
FRC with a similar query earlier this
month.
Commenting on the announcement,
Fuller told City A.M. he
acknowledged the FRC’s decision as
“good news”. He explained that he
wrote his original letter because companies
involved in deals “rely on auditor’s
statements” and he wanted to
know if all “the rules were followed” by
the advisers.
Meanwhile, Oliver Parry, head of corporate
governance at the IoD, told City
A.M. that the business lobby group not
only welcomed the investigation, but
also that it had been picked up less
than a month after Walker’s letter.
Although the watchdog wrote back
to both to say it was looking into what
it could do, it did stress its powers to investigate
were limited to accountants,
auditors and actuaries who were members
of the corresponding representative
body. This essentially means it
cannot investigate parties such as company
directors if they are not part of
the accountancy industry.
Fuller is a member of the Business,
Innovation and Skills committee, one
of the bodies to launch an inquiry into
the events surrounding the collapse of
BHS. The committee inquiry is focused
on the £1 sale, while the Work and Pensions
committee is examining what
the retailer’s demise means for pensions
regulation.
Select committees continue to
quiz Caring on BHS connections
FRANCESCA WASHTELL
@fwashtell
THE TWO parliamentary select
committees investigating BHS have
deepened their inquiries into
clothing tycoon and restaurateur
Richard Caring.
The Work and Pensions committee
and Business, Innovation and Skills
(BIS) Select committee have written
to Caring for a second time, asking
20 further questions related to his
business dealings with Sir Philip
Green, Lady Green and BHS.
“Why, in your expert assessment,
did BHS fail?” and “What would you
describe as Sir Philip’s strengths and
weaknesses in running BHS?” are
among the new questions posed.
The committees previously wrote
to Caring on 17 June as he will be
unable to attend a meeting on 29
June. Caring, who was a minority
shareholder between 2001 and 2006,
provided unpaid “general assistance”
to the company but was never a
director.

14 NEWS TUESDAY 28 JUNE 2016
Vaping legislations
shrouded in smoke in
wake of Brexit vote
FRANCESCA WASHTELL
@fwashtell
AN E-CIGARETTE industry body will
seek talks with the government to discuss
whether EU vaping legislation
can be renegotiated in the wake of
last week’s Brexit vote.
The Independent British Vape Trade
Association (IBVTA) told City A.M. that
although the European Union’s Tobacco
Products Directive (TPD) was
transposed into UK law in May, the organisation
will still “seek clarity” for
its members on whether there could
be any future changes to the law.
The law was widely blasted by the vaping
industry for stipulating strict
clampdowns on e-cigarette advertising,
banning it in print, on television
and radio.
It also put restrictions on the
strength and flavours of nicotine that
can be used.
Under the legislation, manufacturers
are also required to notify government
bodies about new products six
months before they are launched.
Some argued this would stifle innovation
in an industry driven by emerging
product design.
Nigel Quine, deputy chairman of the
IBVTA, said: “As a trade association
IBVTA will be meeting with government
officials as a matter of priority
to discuss the full implications of the
referendum result and will continue
to make the case for sector specific
and proportionate regulations for the
independent vape industry.
“What happens next will depend on
the wider negotiations on the exact
nature of the UK’s future relationship
with the EU,” Quine added.
EU referendum vote causes storm in a prosecco glass
Italian prosecco producers in a
fizz over Britain leaving the EU
FRANCESCA WASHTELL
@fwashtell
ITALIAN prosecco producers have
been spooked by the UK’s vote to leave
the EU last week, worrying that the
hit to the pound could “upset” trade
and send sales flat.
Coldiretti, the association of Italian
food producers, warned in a
statement that the devaluation in
sterling could disrupt Britain’s place
as the number one export market for
the posh tipple.
Exports of prosecco to Britain grew
at a rate of 38 per cent in the first
quarter of 2016, according to
Coldiretti.
For more than a year Britons have
spent more on the Italian fizz than its
traditionally more popular, French
cousin, champagne.
CITYAM.COM
Independent
newspapers
make £7m loss
WILLIAM TURVILL
@wturvill
THE INDEPENDENT newspapers lost
£6.97m in their last full year, new
accounts from the company showed
yesterday.
The pre-tax loss, for the year to 27
September 2015, was an
improvement on an £8.54m loss the
year before.
The Independent and Independent
on Sunday were closed by owner
Evgeny Lebedev in March while cutprice
sister title the i was sold to
Johnston Press. The Russian
billionaire bought the titles in 2010.
Independent Digital News and
Media, a separate company for the
Independent’s website, which is still
going, reported a net profit before
tax of £1.27m for the year.
Meanwhile, in the same period,
the Evening Standard newspaper
reported a pre-tax profit of £3.38m,
up from £1.1m in 2014.
Diageo toasts share price rise
amid stock market upheaval
FRANCESCA WASHTELL
@fwashtell
DIAGEO investors celebrated their
stocks yesterday as the alcoholic
beverages company was one of the
strongest FTSE 100 risers.
Diageo’s shares gained 1.92 per
cent to reach 1,914p, on a day when
banking giants Barclays and Royal
Bank of Scotland fell more than 10
per cent by mid-morning but
commodities traders stayed
resilient.
Housebuilder shares were also
hammered yesterday, as the stocks
in all the FTSE 100-listed developers
were suspended from trading for
five minutes in the morning.
“I think there were a number of
factors supporting the Diageo share
price,” Phil Carroll, beverages and
agriculture analyst at Shore Capital
told City A.M.
“As a global business seen as a
cash compounder, it is perceived as
a safe haven.
“Furthermore, following the
weakness in sterling after the
Brexit vote there are some
perceived translational and
potential transactional foreign
exchange gains driving upgrades to
earning expectations in the
market, given it has a material level
of profits generated in USD.”
Diageo’s drink offerings include
Smirnoff vodka, whisky Johnnie
Walker, Guinness and Baileys,
while the company has more than
4,700 employees based in the UK.
Imperial Brands and British
American Tobacco were also high
risers yesterday. They were two of
the only companies trading up on
Friday when the announcement of
the UK’s vote to leave the EU sent
markets into turmoil.
Nespresso raises a
cuppa with City cafe
FRANCESCA WASHTELL
@fwashtell
COFFEE connoisseurs craving a caffeine boost need
look no further than the new Cafe Nespresso, which
opened its doors yesterday on Cheapside in the
Sqaure Mile.
At the first UK cafe pilot, following a successful
trial last year in Vienna, fans will be
treated to non-alcoholic coffee
mocktails including rose cappuccino,
a macaroon latte, an iced macchiato
or a mojito coffee, as well as an array
of gourmet coffee recipes.
“London has a thriving coffee
culture but Cafe Nespresso is a unique
premium cafe experience,” Francisco
Nogueira, managing director of
Nespresso UK, said.
Hollywood A-lister George Clooney
is the face of Nespresso
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CITYAM.COM
TUESDAY 28 JUNE 2016
NEWS
15
Medical device maker Medtronic is
set to buy HeartWare in $1.1bn deal
AMRUTHA PENUMUDI
MEDTRONIC yesterday announced it
would buy HeartWare International
for about $1.1bn (£832m), bulking up
its portfolio of devices for treating
heart diseases and pushing deeper
into the market for less-invasive
surgical products.
HeartWare shares rose by more
than 92 per cent to $57.72 in trading
yesterday, just a touch below the offer
price of $58 per share in cash.
Medtronic shares fell about two per
cent.
HeartWare’s flagship product, the
HVAD System, is placed in the body
through a less-invasive surgery and
assists with blood flow when the
heart is unable to pump blood
efficiently.
The company, which had a market
value of $525.87m as of Friday, is also
developing MVAD System – a nextgeneration
heart pump that is 40 per
cent smaller than the HVAD System.
However, MVAD has been facing
issues such as clotting-related side
effects in trials, pulling down
HeartWare’s stock by 61 per cent in
the year to Friday’s close.
“Medtronic is catching HeartWare
at a near bottom which makes the
acquisition premium more
palatable,” Cowen and Co analysts
wrote in a note.
Reuters
Sales of the DB11 were ahead of expectations with orders of 2,000 for the car
Bond car maker
leaves spectre of
Brexit for dust
EMMA HASLETT
@emmahaslett
THE SKY may be falling for many, but
luxury sports car maker Aston Martin
is doing just fine, it said today: in
fact, revenues rose almost nine per
cent in 2015.
The company, which last year produced
a special limited-edition
supercar just for James Bond’s latest
outing, Spectre, said full-year revenues
rose to £510.2m in 2015.
Meanwhile, adjusted earnings
before interest, taxation, depreciation
and amortisation rose 7.6 per
cent to £71.4m..
But it also racked up an operating
loss of £58.3m, which it said was
down to investment and non-recurring
charges of £30.2m, plus a
£10.1m expenditure on finance,
“linked to the issuance of new preference
shares”.
The firm said that it had sold 3,615
cars last year, down from the 3,661
luxury models in 2014. Chief executive
Andy Palmer told Reuters in
October that he expected volumes
would be “slightly above” 2014 lev-
els. It also said spending on new
product development had risen 40
per cent, to £161m.
Sales of the DB11 – the post-Bond
mean machine it launched at this
year’s Geneva Motor Show – were
ahead of expectations, it added.
So far, it has had orders for 2,000
of the cars, which won Production
Car of the Year at the Car Design
Awards.
And it reiterated that it will press
ahead with its plans to create a new
manufacturing plant in St Athan in
Wales, allowing it to build its firstever
crossover vehicle, which will
launch in 2019. The new plant will
create 750 jobs.
“We managed our balance sheet
prudently at a time of major investments,”
said Mark Wilson, the company’s
chief financial officer.
“While the investment spend and
costs of reorganisation led to an
operating loss in 2015, Aston Martin
is performing ahead of budget.”
He added that despite the Brexit
vote, the company had “reviewed
the decision” before the referendum
and opted to push ahead with it.
Manufacturers urge government
to prevent EU economic limbo
JESSICA MORRIS
@jssmorris
MANUFACTURERS yesterday urged
the government to avoid economic
purgatory and act quickly to secure
Britain’s industrial future.
It comes ahead of a crunch meeting
today between business groups and
business secretary Sajid Javid, who
has said that the main message will
be “there’s no need to panic”.
EEF, the manufacturers’
organisation, will call on the
government to press ahead with
important investment decisions, such
as airport expansion, despite the UK’s
decision to leave the EU last week.
It also intends to lobby for early
assurances about Whitehall’s
commitment to securing access to the
European single market, as well as
protecting the UK’s trading
relationships.
Terry Scuoler, chief executive of
EEF, warned against the government
triggering Article 50, paving the way
for it to exit the EU, too quickly.

16 NEWS TUESDAY 28 JUNE 2016
CITYAM.COM
TWO AGAINST TRUMP?
Clinton hints at Warren as Veep
IN THE strongest hint yet that Hillary Clinton is eyeing up
senator Elizabeth Warren as a running mate for the US
presidential election, they shared a stage. The East Coast
senator lashed out at Donald Trump, calling him an
“insecure money grubber” who is driven by greed and hate.
Northern Ireland
and Republic see
rush for passports
PADRAIC HALPIN
Every iPhone features an iconic design, gorgeous retina display, incredible performance,
ultra-fast wireless, touch iD, advanced cameras, long battery life,
iOS9andtheAppStore.That’swhythere’snothingquitelikeiPhone.
SE
£59.99 UPFRONT COST
£20.99
PER MONTH 3
6S/6S PLUS
FROM
£129.99 UPFRONT COST
2
£23.49
PER MONTH 3
online | in store | callfreefromamobile68700
1If you find an upgrade or pay monthly deal for less at 02, EE or Vodafone, we’ll match it and pay the equivalent of your first month’s standard line rental via cheque. Applies to published prices only
where the handset is in stock and available for immediate purchase or dispatch. Proof of competitor price required. Applies to deals on a like for like basis, offered in the same sales channel and may be
claimed at the time of purchase or up to 14 days after. Cannot be used in conjunction with other deals, including cash back, personalised variations offered directly to individual customers, offers via third
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carphonewarehouse.com/pricepromise or ask staff for details. Orange and T-Mobile contracts are no longer available when purchasing a new phone. If you’re a current Orange or T-Mobile customer, you
can upgrade your phone to a contract on EE. 2Published price refers to the iPhone 6S. 3Subject to credit check and min. 24 months contract on EE. All information is accurate at time of going to print.
NetworksmayincreasemonthlypriceinlinewithRetailPrice.
BRITONS trying to hang on to EU citizenship have inundated
Ireland’s embassy on Grosvenor Place and post
offices in Northern Ireland with passport enquiries and
requests for application forms, the Irish foreign office
said yesterday.
Post offices ran out of forms and the embassy fielded
more than 4,000 passport enquiries compared with the
200 a day it usually gets.
Anybody born in the Republic or Northern Ireland, or
with an Irish parent or grandparent, is entitled to an Irish
passport – about six million people living in Britain.
“Following the UK referendum, there has been a spike in
interest in Irish passports in Northern Ireland, Great
Britain and elsewhere,” Irish foreign minister Charlie
Flanagan said.
“The increased interest clearly points to a sense of concern
among some UK passport holders that the rights
they enjoy as EU citizens are about to abruptly end.”
Flanagan warned that a surge in applications would
place significant pressure on turnaround times at passport
offices and could affect those with imminent travel
plans.
Reuters
IN BRIEF
APAX IN FUNDING
APEX
Private equity firm Apax
has secured $7.9bn (£6bn)
for its latest pool of capital,
according to a source
familiar with the matter.
Reuters had reported last
year that Apax, whose
investments have included
King, maker of Candy
Crush, and AutoTrader,
would begin raising capital
for its ninth fund at the end
of 2015. Bloomberg had
earlier reported yesterday
that Apax had raised the
money for its fund Apax IX,
citing people familiar with
the matter. Apax Partner
declined to comment
yesterday.
UBER SERENADES
PANDORA
Ride-hailing giant Uber is
integrating online radio
station Pandora into its
app for drivers for easy
listening on trips, the
companies said yesterday.
The deal gives Uber a new
perk to dangle to drivers
and strengthens Pandora’s
presence in the key market.
The programme kicked off
in the US, Australia and
New Zealand, the countries
in which Pandora operates,
and will be offered without
ads for the first six months.
The new deal puts Pandora
front and centre for Uber’s
450,000 active drivers in
the US.

CITYAM.COM
TUESDAY 28 JUNE 2016
NEWS
17
Texas frack master accused of $80m
fraud by US exchange watchdog
JESSICA MORRIS
@jssmorris
AN ALLEGED shale gas expert who
called himself the “frack master” has
been accused of orchestrating an
$80m (£60.5m) fraud to fund his
opulent lifestyle.
Chris Faulkner, chief executive of
Breitling Energy Corporation (BECC),
is said to have used at least $30m of
investor funds for personal expenses,
including gentlemen’s clubs and
personal escorts, according to the
Securities and Exchange Commission
(SEC).
Faulkner is also accused of
misrepresenting his education,
experience and background, which
he used to secure appearances on the
BBC and Sky News, as well as give
evidence during a select committee
hearing into shale gas.
“[He] allegedly orchestrated a
sophisticated and multi-layered
scheme using BECC and its affiliated
entities as a conduit to access
millions of investor dollars,” Shamoil
Shipchandler, regional director of the
SEC’s Fort Worth regional office, said.
Faulkner’s lawyer said: “Nobody
can spend $30m on steak and travel.”
“But this is a competitive business
and you spend money to make
money. There’s entertainment,
there’s international travel.”
The fall came despite assurances from Goldman that Brexit’s effect would be small
Crude prices fall
as Brexit vote
roils the market
JESSICA MORRIS
@jssmorris
OIL PRICES gave up earlier gains yesterday
as traders digested the fall-out
from last week’s Brexit vote.
Brent crude, the global benchmark,
fell 2.33 per cent to $47.28 a barrel,
while West Texas Intermediate crude,
the US benchmark, slumped 2.54 per
cent to $46.43.
Both benchmarks had finished Friday
around five per cent lower amid
a wave of global financial market
volatility sparked by Britain’s decision
to leave the European Union.
Markets were taken by surprise
after the referendum result defined
bookmakers’ odds, as well as many
late polls.
Nevertheless Goldman Sachs, the
most influential bank in commodity
markets, believes the Brexit vote will
have a minimal impact on UK oil
demand.
“If we assume a two per cent drop
in UK gross domestic product in
response to the exit vote, which is on
the high end of our economists’ estimates,
then UK oil demand would
likely be reduced by one per cent or
16,000 barrels per day, which is a
0.016 per cent hit to global demand.
This is extremely small on any measure,”
it said.
“We feel that a market shock such
as Brexit can often induce enough
chart damage to force a major long
liquidation phase,” said Jim Ritterbusch
of Chicago-based oil market
consultancy Ritterbusch & Associates.
“But we don’t currently see such a
development on the horizon given
the crude market’s ability to maintain
value above this month’s lows
even through the Friday price
plunge,” he added.
Chancellor George Osborne said
yesterday that the result will
amplify volatility in financial markets,
while trading was temporarily
suspended in London-listed banking
giants Barclays and RBS after they
tanked by more than 10 per cent.
However, goldbugs benefited from
the fall-out for a second day in a row
as nervous investors sought shelter
from a storm rippling through financial
markets.
BHP Billiton swims against the
tide with a boost in spending
JESSICA MORRIS
@jssmorris
THE BATTERED mining sector could
be on the tip of a pick-up after BHP
Billiton yesterday unveiled plans to
boost how much it spends on
finding oil and copper.
Speaking during a presentation to
Citigroup investors, BHP said it will
raise exploration spending by nearly
30 per cent over this financial year,
from $700m (£530m) to $900m.
The miner added that its bigger
exploration budget will primarily be
directed at oil and copper.
“BHP is making it clear that oil
and copper top the list for growth
potential,” Peter O’Connor, mining
analyst at Shaw and Partners, said.
Rio Tinto, which doesn’t have an
oil business, is also focusing its
exploration efforts on unearthing
more copper.
Shares in BHP closed down 1.68
per cent at 841.90p, while Rio
Tinto’s closed up 0.39 per cent at
2,085.50p.

18 NEWS TUESDAY 28 JUNE 2016
CITYAM.COM
UK firms lagging
other countries
in use of big data
BILLY BAMBROUGH
@BillyBambrough
BUSINESSES are failing to make the
most of big data despite technological
advances, according to accountancy
giant PwC.
Research has shown the UK to be lagging
behind other major economies in
using data as part of daily business operations.
Less than a third of UK organisations
(30 per cent) claim to be highly
data-driven, compared with 45 per cent
of those in the US and 53 per cent in
China. More than half of UK respondents
(59 per cent) said they use data analytics
mostly as a backwards looking tool to
analyse previous performance, while
only a quarter (24 per cent) use analytics
to predict what would or could happen.
Only 13 per cent of respondents used big
data to determine what should happen
and why.
“It’s clear that organisations know
data is important, but are not yet properly
leveraging it to supplement human
judgment,” said Yann Bonduelle, consulting
data analytics partner at PwC.
“The great majority of organisations
are using data to look backwards and
are missing out on the great advantages
that tools such as predictive analytics
can bring to a company’s success.”
UK respondents reported data and analytics
to be the second most important
factor (33 per cent) in decision making,
almost on par with experience and intuition
(34 per cent), while also relying
heavily on external advice (25 per cent).
The survey revealed the importance of
data and analytics in decision making is
still rising however, with just 23 per cent
claiming to be highly data-driven in
2014.
Last month, IBM’s global head of consulting
and managing partner warned
of a looming skills gap in the future
because not enough people are being
trained to meet the rise in companies’
demand for big data and analytics.
“Getting the skills required to analyse
and manage all of this data is going to be
difficult,” Sanjay Brahmawar told the
World Manufacturing Forum.
Recently joined City Giving Day
Why are you supporting
City Giving Day?
At Smart Currency Business our
passion for caring and development
extends beyond our clients and to our
local community. We are supporting
City Giving Day as it will not only
provide us with the opportunity to
highlight our company’s social
responsibility but it will also allow us
to raise awareness of the charity we
support.
Which charities do you support?
Smart Currency Business is
CHARITY IN ACTION
In addition to
fundraising,
staff organise a
day trip for the
children once a
month. Previous
excursions
include
trampolining,
ice skating and
visiting Kew
Gardens.
committed to improving the lives of
disadvantaged inner-city children and
overcoming social and economic
barriers. We are partnered with local
charity Solidarity Sports and support
The Prince’s Trust.
How will you celebrate the day?
We will use City Giving Day as a way to
raise awareness of our charity,
encourage more people to volunteer
and hold a company-wide fundraising
day full of fun activities including a
treasure hunt, quizzes, a raffle and, of
course, a cake sale!
Our aim is to increase
the confidence of
every child we work
with. We are
delighted to partner
with Smart Currency
Business.
Sean Mendez, founder,
Solidarity Sports
REGISTER NOW AT
WWW.THELORDMAYORSAPPEAL.ORG/CGD
ROAD TO RIO Jane Tomlinson’s husband and daughter join
massive memorial bike trek from London to Brazil Olympics
FIVE UK cyclists will
pedal almost 3,000 miles
from the London’s
Olympic Stadium to the
Maracana Stadium in Rio
de Janeiro over six
weeks to mark the 10th
anniversary of Jane
Tomlinson’s Ride Across
America, her final
charity challenge before
her untimely death from
cancer aged 43.
French prosecutor is seeking to put Swiss
bank UBS on trial over alleged client tax fraud
CHINE LABBE
A FRENCH financial prosecutor
yesterday requested Swiss bank UBS
go on trial for covering up clients’
tax fraud as well as illegal
prospecting, a judicial source told
Reuters.
The source said the prosecutor
had also requested UBS France, the
bank’s French arm, go on trial for
complicity. A spokeswoman for UBS
had no immediate comment.
French investigating magistrates
now have a month to decide
whether or not UBS should face
judges.
UBS was placed under formal
examination in 2014. At the time,
investigating judges ordered the
company to pay a €1.1bn (£918m)
bail.
Reuters
Sharing economy on target to
deliver £140bn to Great Britain
EDITH HANCOCK
@Edith_L_Hancock
THE UK’s sharing economy could
boom 20-fold in a decade,
according to PwC.
The sector, which includes peerto-peer
lending platforms and
crowdfunding sites like Kickstarter,
car sharing apps such as Uber, car
rental firms and music streaming
services like Spotify, is currently
worth around £7bn, but the audit
firm says this could balloon to
£140bn in just under 10 years.
HAYLEY KIRTON
@HayleyLEK
PARLIAMENTS across Europe are
today urging their governments to
do more to make tax transparent.
The Public Accounts Committee
(PAC) has unveiled an open letter,
signed by parliamentary finance
committees chairs of Germany,
Hungary, Finland, Norway and
Slovakia, along with senior MPs
from the Netherlands, Czech
Republic and Bulgaria.
The letter calls on governments
to implement measures that would
require companies to declare their
revenue, profit before income tax,
Across Europe, sharing economy
transactions could rise to €570bn
(£476bn) by 2025, up from its
current value of €28bn.
Economists at the audit firm say
that, despite the UK’s Brexit vote,
the sector’s predicted rapid expan -
sion should still be on track. Rob
Vaughan, economist at PwC, said:
“While our analysis was carried out
ahead of the UK’s vote to leave the
EU, at present we do not expect the
decision to alter our long-term
trajectory for the sharing economy’s
substantial growth.”
income paid and accrued, total
employment, capital, retained
earnings and tangible assets for
each jurisdiction they operate in.
The letter reads: “We want to see
this information published so that
our citizens can see for themselves
what tax multinationals pay so
that not only will our national tax
authorities see the full picture but
so will our citizens.”
The issue of transparency came
to the attention of the public at
large earlier this year when it was
revealed that HM Revenue &
Customs (HMRC) had struck a deal
with Google for £130m in unpaid
corporation tax.
Analysts at the firm suggest that
firms like Uber and Airbnb will
grow at a rate of over 30 per cent per
year, with transactions increasing
evenly across all sectors.
“Economic and political uncert -
ainty will act as a headwind to
growth across every sector in the
short-term”, said Vaughan, “but the
fundamental drivers of the sharing
economy – technological advance -
ments, demographic change and
urbanisation – will continue to
drive adoption in this space over the
long term.”
Parliaments across Europe intensify calls for
measures that would boost tax transparency
Shortly after the deal came to
light, the PAC hosted a somewhat
heated hearing to take evidence
from key staff from the technology
giant and HMRC.
“Our committee believes
strongly that the tax affairs of
multinational companies should
be open to public scrutiny,” said
PAC chair Meg Hillier today.
In addition to the open letter, a
number of MPs in the UK are also
backing an amendment to the
Finance Bill, which is currently at
committee stage, that would oblige
large multinationals to make
public country-by-country details
of their corporation tax position.

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INTERIORS MAGAZINE
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30 JUNE
A MAGAZINE BY CITY A.M.
LIVING
ISSUE 08 | JUNE 2016
INSIDE: THE BEST NEW HOTELS
HOW TO TURN A CRUMBLING
MANSION INTO A CASH COW
WHY BRITISH CONSUMERS
AREN’T SOLD ON SMART HOMES
THE SERPENTINE SUMMER
HOUSES AND PAVILION
ISSUE XX | MONTH 2016
IN THIS MONTH’S
ISSUE OF LIVING:
architecture
When old
meets new
This extension to a three storey period terrace shows the
potential in splicing tradition and modernity
Words: Steve Dinneen
This geometric extension to a terraced modern kitchen with an island workspace and sink is
house in North London is a great example
of how modern design can mesh white tiles, creating a relaxed atmosphere.
black with warm low-watt light fixtures and gleaming
with a period property to create fascinating
new architectural spaces. The reau de Change says: “With the pleated roof we wanted
Katerina Dionysopoulou, co-founder of architects Bu-
“pleated” roof on the rear-of-house to not only bring a graphic feel to the modern extension,
building is designed to look like a flat but also to create a feeling of motion, which would emphasise
the meeting of old and new.”
surface that’s been concertinaed against the existing
structure. The design also allows the sloping windows Bureau de Change is an award winning architecture
to flood the interior with natural light.
practice whose signature style is clean and modern, with
Contrasting colours and materials are used to create playful architectural flourishes often involving geometric
shapes and unusual angles. The firm has worked on
visual markers for transitions between different spaces,
with the extension hosting a kitchen/dining area and projects such as the made.com showroom on Charing
hidden office. The entrance area with a view into the Cross Road and a section of the V&A.
neighbouring parkland (above) is largely white, while the
For more information log on to b-de-c.com
36
37
feature
SUMMER
LIVIN’
Melissa York on the architectural concepts behind the
Serpentine Pavilion and Summer Houses
The annual unveiling of the pavilion in BJARKE INGELS
front of the Serpentine Gallery has become
a prestigious event in the British The Serpentine Pavilion 2016 was designed by Dane
Described by some as the most spectacular structure yet,
architectural calendar. It all started in Bjarke Ingels using one of the most basic elements of architecture
as its inspiration – the brick wall. Only in In-
the year 2000, when Zaha Hadid designed
a space for a fundraising event gels’ version, it’s being unzipped from the bottom up so
in Hyde Park. The result was so popular it opens into a public space. Boxes of pultruded fibreglass
frames are individually made off site, then stacked
the gallery has invited an architect to reimagine the
space every year since, always with the same brief: it on top of each other to create “a structure that is free
must be 300sqm, no taller than the 18m gallery and able form yet rigorous; modular yet sculptural; both transparent
and opaque; both solid box and blob,” says Ingels.
to host a cafe and evening entertainment.
“This is a space for experimentation,” says exhibitions Wooden flooring and seating can be found inside, alongside
yet more fibreglass boxes, which the architect en-
curator Amira Gad. “It’s about getting people to experience
architecture and materials, instead of models and courages visitors to move around to make their own
sketches.” The four Summer Houses that accompany the furniture. At night, the space is lit up and its dimensions
pavilion must use the nearby Queen Caroline’s temple completely transformed with the help of lighting designers
and LED specialists as their inspiration. Here’s the class of 2016.
Zumtobel.
Headline cover
line Geometric in designs here
to improve any room
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20 MARKETS TUESDAY 28 JUNE 2016
CITYAM.COM
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
Miners lend FTSE
100 support amid
Brexit turmoil
THE TOP share index
extended the previous
session’s steep losses
yesterday as the UK’s vote to
leave the European Union
hurled the country into political and
economic uncertainty. The FTSE 100
ended 2.6 per cent lower, and below
the 6,000 mark, to 5,982.20 points.
Shares in EasyJet recorded their
biggest one-day percentage drop in
12 years, falling 22.3 per cent, while
banks and housebuilders also took a
heavy beating.
Investors took refuge in firms
producing gold, seen as a safe-haven
asset, with Fresnillo closing up
seven per cent after hitting a threeyear
high and Randgold Resources
gaining nine per cent. Gold dipped
as low as $1,255 in the lead-up to the
EU referendum, when a Remain win
was widely predicted though in the
aftermath of a vote to leave it rose to
highs of $1,331.70 yesterday.
Pharmaceuticals, seen as defensive
stocks in times of turmoil, also did
well. Shares in AstraZeneca were up
2.3 per cent, while GlaxoSmithKline
added 0.4 per cent to take its gains
since Friday to five per cent.
FTSE
6,400
6,300
6,200
6,100
6,000
5,900
27 June
5,982.20
21 June 22 June 23 June 24 June 27 June
BT
440
420
400
380
360
P
21 June
22June
23June
24June
27June
375.85
27June
BT Group’s share price fell yesterday after Credit Suisse downgraded the stock to
“neutral”, from “outperform” previously, and cut its target share price to 400p from
500p. Shares in the company closed yesterday at 375p. The UK vote to quit the
European Union was largely blamed for the downgrade, following BT lobbying hard
for a vote to remain and making it clear a vote to leave would be bad for business.
BRITVIC
660
640
620
600
580
P
21 June
27June
586.50
22June
23June
24June
27June
Societe Generale has downgraded Britvic to “hold”, from “buy” previously, and cut
its share price target to 700p, down from 870p. Shares in the company closed at
586p yesterday. According to SocGen, the currency swings since the UK’s vote to quit
the European Union add downside for Britvic. Shares in the company were down
about nine per cent on Thursday’s close ahead of the referendum result.
US stunned by
UK’s EU vote
THE SELL-OFF in equities,
sparked by Brexit, has set the
Dow and S&P 500 on course
for their biggest two-day percentage
drop in 10 months.
The Dow fell 260.51 points, or 1.5
percent, to 17,140.24, the S&P 500
lost 36.87 points, or 1.81 per cent,
to 2,000.54 and the Nasdaq
dropped 113.54 points, or 2.41 per
cent, to 4,594.44.
Meanwhile, the Nasdaq
Composite was down 94.33 points,
or two per cent, at 4,613.65.
Banks continued to be among
the worst hit yesterday.
JP Morgan, down 3.2 per cent,
and Bank of America, down 5.4
per cent, were among the biggest
drags on the S&P 500.
Eight of the 10 major S&P sectors
were lower. Utilities and telecom
services were the only ones to
buck the trend.
The dollar was set for its best
two-day percentage gain since
2008, dealing a blow to US companies
that have a large proportion
of foreign customers.
CITY MOVES WHO’S SWITCHING JOBS
SIGN UP TO RECEIVE THE DAILY CITY MOVES
EMAIL SERVICE AT CITYAM.COM/CITY-MOVES
GORDON DADDS
Legal and professional
services firm Gordon Dadds
has appointed senior
politician Lord Peter Hain as its
global and government
adviser. Hain will be helping
Gordon Dadds and its clients
expand their international
connections, with particular
focus on Africa and the Middle
East. He will also advise the
firm on governmental matters. Prior to joining the
House of Lords in 2015, Hain spent 24 years as a
member of parliament including 12 years as a
government and senior cabinet minister, where he
obtained a breadth of domestic policy experience in
roles including secretary of state for work and
pensions, energy minister and leader of the Commons.
PEEL HUNT
Peel Hunt, an independent corporate broking and
advisory house, has appointed John Welch to the role
of large cap sales. John joins from Deutsche Bank
where he worked for eight years, initially in pan-
European cash equity sales and then as co-head of
EMEA coverage and european head of relationship
management within their transaction banking
division. John started his career at City-based
stockbrokers Cazenove & Co where he spent five years
in cash equity sales, both in London and New York and
subsequently worked at Goldman Sachs, Bank of
America and Dresdner Kleinwort.
WHITE & CASE
Global law firm White & Case has expanded its EMEA
equity capital markets capabilities with the addition of
Jonathan Parry as a new partner in London. Jonathan,
who joins the firm’s global capital markets practice,
will advise both corporate clients and investment
banks on a full range of international corporate finance
transactions, with a particular focus on UK equity
capital markets. The law firm hopes Jonathan will help
grow its UK IPO practice and, with the majority of
equity capital market deals in the region governed by
English law, further support the development of its
English law markets practice. He joins White & Case
from Ashurst, where he was a partner, and brings
nearly 16 years of experience.
WESTROCK
Westrock, a developer and operator of private rented
homes, has appointed Candy & Candy’s former
property director Stewart Knight as its new
acquisitions chief. Stewart has moved to Westrock,
where he will spearhead the acquisition programme
for Platform, the firm’s build-to-rent vehicle. Stewart
has worked on projects in the UK and abroad,
including the Candy brothers’ prime central London
landmark One Hyde Park.
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
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losses may exceed deposits

CITYAM.COM
TUESDAY 28 JUNE 2016
FEATURE
21
MONEY TRANSFER
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Save money on international transfers
You could cut the
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transfers by using
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bank
According to the latest World
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of money: in 2015, personal
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This number is based on
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Whether for personal reasons such
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SAVE MONEY
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Most people use high street
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22 OPINION TUESDAY 28 JUNE 2016
CITYAM.COM
FORUM
EDITED BY TOM WELSH
Of course politicians lack a Brexit plan
– but business can now take charge
CITY firms and the wider business
community should be
throwing themselves into policy
and campaign design in
order to persuade open-minded
Tory party leadership candidates of
the sort of tax and regulatory framework
they need to thrive outside the
EU. Many businesses will be unhappy
with last week’s result, but they now
have the opportunity to influence government
policy to ensure it is the best
it can be. This opportunity will not
come around again and businesses
must grasp it.
There is no doubt that businesses
face a prolonged period of uncertainty.
We will probably not know who our
next Prime Minister will be until the
Autumn and we will not know who
will be leading negotiations with the
EU. More importantly, we do not know
the worldview of the likely Tory leadership
candidates and therefore the sort
of relationship with the rest of the
world that may emerge.
Dominated as it was by immigration
and pocketbook economics, the referendum
campaign barely scratched the
surface of these crucial geopolitical
issues. That is the nature of campaign
life: debates around high policy simply
do not happen in combative elections
and referendums. Those that expect
them to are living on another planet.
The truth is that few senior politicians
have clearly defined views on
what our relationship with the EU and
the rest of the world should be. With
British membership of the EU apparently
settled for at least the medium
term until David Cameron called a referendum
before the last election, hardly
anyone in politics has devoted
significant time to thinking about big
global issues from a British
perspective, or even about some of the
NINE months after being
elected leader with the
biggest mandate in the history
of the Labour Party,
Jeremy Corbyn stands on
the precipice of being ousted from
the post.
Within hours of the Brexit result on
Friday morning, rumours of impending
shadow ministerial resignations
began to circulate. Extraordinarily,
more than two-thirds of the shadow
cabinet have since gone, with more
junior ministers having departed on
top of that.
Already no friends of the left-wing
leader, the final straw for Labour MPs
came with the referendum result and
the mounting evidence of how
Corbyn and his team actively worked
to scupper the Remain campaign. EU
membership is an article of faith for
most Labour members, and we now
learn that the party leader repeatedly
failed to attend Remain campaign
meetings, and even refused to share
party membership data with Remain.
“Our data is our data,” his office told
them. Most remarkably of all, he has
refused to confirm that he actually
most fundamental domestic political
issues.
Businesses will look in vain for indications
about what Boris Johnson or
Theresa May think about the prospects
of, for example, a Global Free Trade
Area along the lines suggested by City
A.M. columnist John Hulsman (the best
option for Britain’s future I have seen
articulated). They will not find past
speeches on options for British trade
policy, or the best way of reforming
procurement policies, or how the global
regulatory framework for financial
services should be changed. Senior
politicians have not done the intellectual
heavy lifting because they never
had to.
Some businesses might find this
unsettling or alarming. But they can
view this either as a huge threat to be
managed or as a huge opportunity to
be exploited. They can spend their
time writing 1,000 page risk registers,
or they can create campaigns that persuade
the incoming Prime Minister
and his or her government that there
is an approach that ought to be taken
to maximise opportunities for British
businesses.
British businesses have often been
guilty of over-stating the certainty
with which governments operate or
their unwillingness to listen to the
views of outsiders. In my experience,
Number 10 and government departments
are desperate for positive ideas
from expert outsiders. Ministers and
special advisers cannot rely on civil servants
to come up with radical new policy
suggestions – they simply do not
have the mentality or the skills to create
them. Furthermore, even where
governments appear to have set their
heart on a particular course, competent
campaigns, particularly those
that seem to have public support,
voted to stay in the EU once in the privacy
of the polling booth.
The second cause of this week’s
rebellion lies in the chance that the
next General Election might be less
than 12 months away. It was one
thing biding time to remove Corbyn
before a 2020 poll, but most expect
the new Prime Minister to seek a new
mandate quickly. Based on the evidence
of the collapse in Labour’s
heartland support last week, MPs fear
the party could face electoral annihilation
under Corbyn’s leadership.
Any other politician in this scenario
would be toast. But Corbyn does not
play by the usual rules. He does not
depend on the parliamentary party
for legitimacy and he is perfectly prepared
to bear the hostility of his MPs,
the media and the wider population
alike. Having spent a lifetime on the
political margins, the opprobrium of
others puts Corbyn back in his comfort
zone. And if a Labour leader stubbornly
sticks their heels in, the
election rules ushered in by Ed
Miliband make forcing them out
incredibly hard.
The key comes down to the views of
James
Frayne
Companies can view
this either as a huge
threat to be managed
or a huge
opportunity to be
exploited
often change their mind and governments
rarely hold grudges.
Businesses in the City and across
Britain can be absolutely sure that
Tory leadership candidates and their
eventual new government will be desperate
for ideas and plans. How should
a new immigration policy work to
attract the world’s best workers? What
should they not forget as they construct
a new trade policy? How did procurement
laws help and hinder
businesses, and how should they be
changed? Is there any role for state aid
in the regions? Did any EU financial
the party members. Until now,
Corbyn has been protected by their
support – indeed many of them
joined the party because of him.
Does the membership still stand by
him? The truth is nobody knows.
Usually, you only launch a coup
d’état if you are confident of success.
But there is no such certainty among
Labour MPs. Instead, there is simply
desperation and a hope that his position
can be made untenable so that
he voluntarily walks away. And there
is a hope – but it is no more than that
– that pro-European Labour members
have been shaken from their stupor
by the events of the last week.
Recent polling shows that nearly
one-third of those who voted Labour
in 2015 – a disastrous election year
regulation work?
In constructing their public case,
businesses need to take a fundamentally
different approach to the one
they might previously have relied on.
Like the result or not, this referendum
saw the public, and provincial England
above all, give our governing elites a
real kicking. They not only rejected
membership of the EU, they rejected
explicit warnings from the Prime
Minister, the chancellor, leading business-people
and, whether you consider
them veiled or not, from the governor
of the Bank of England.
In the London bubble, we only hear
the angry voices of those that wanted
to stay in. Outside London, you can
only hear the angry voices of working
class and lower middle class people
annoyed about the policies that successive
governments have taken over the
last two decades. The next Prime
Minister and his or her government
will know that they have effectively
been swept into power on the back of a
massive provincial revolt.
With that in mind, businesses are
going to have to ensure that the policies
they come up with have popular
support. They need to take a campaign
mentality – testing ideas out with the
public and then showing politicians
that they have secured public support.
This will make it far, far more likely
that the new government will take
them up.
Now is not the time for elite to elite
conversations – this referendum result
has turned everything on its head.
£ James Frayne is director of public
opinion specialists Public First
(www.publicfirst.co.uk) and author of
Meet the People, the go-to guide to
consumer and citizen mobilisation,
published by Harriman House.
It’s the beginning of the end – either of
Jeremy Corbyn or the Labour Party itself
Chris
Rumfitt
for the party – will not do so again.
From the view of the Labour moderates,
the alternative to the demise of
Corbyn is the demise of the party as a
whole. He does not even have enough
supporters to fill a full shadow ministerial
team, and if he survives this
coup attempt then even more
extreme options are being considered.
If a majority of the 229 Labour MPs
break away, that new rump would be
recognised by Parliament as the
Official Opposition and receive the
public funding that comes with it.
The Labour Party has split before,
and the tensions today are probably
even greater than those of the early
80s. In this scenario, Corbyn would
remain leader, but of what?
To steal the words of a man we
should have listened more to over the
last week, this may not be the end of
this. But it is the beginning of the
end. Whether that’s the end for
Corbyn, or the end for the Labour
Party, only time will tell.
£ Chris Rumfitt is founder and chief
executive of Field Consulting.
DEBATE
Q: As the pound
plunges to a 31-
year low against
the dollar, should
the UK fear the
dramatic fall in
sterling?
Joe
Rundle
YES
Britain is a net importer with a large
current account deficit that needs to be
sustained. That’s going to get even more
expensive with a weak pound and possible
rating downgrade combining to weigh
heavily on our nation’s finances.
Consumer prices will rise sharply as
imports get more expensive. The impact of
higher oil prices should be felt at petrol
pumps within 10 days or so. There may be
a short-term improvement to exports but
only because existing deals are still in
place. Any improvement from a weaker
currency will be more than offset by
Europe imposing tariffs on British imports
once we leave the EU. Unlike when we fell
out of the Exchange Rate Mechanism,
there will be no export-led bounce as other
countries won’t let us gain any advantage
from a weak pound. Moreover, our biggest
export is services, which are highly mobile
and could easily relocate to other
countries. We’re already seeing signs that
financial services could be hit as banks are
preparing to move their operations
overseas.
£Joe Rundle is head of trading at ETX
Capital.
Jason
Hollands
NO
A sharp fall in sterling had been widely
expected after a Leave vote, and this has
been exacerbated by political upheavals in
the two main parties. We are clearly at a
point of maximum uncertainty. There is
little line of sight on the UK’s future
relationship with the Single Market, or
who will lead negotiations. As these
become clearer, currency market volatility
should settle down from extreme levels.
Sterling’s depreciation has both benefits
and pitfalls. A weaker pound will hike
overseas travel costs and lead to higher
prices on imports, but inflation has been
far too low and global overcapacity has
put downward pressure on prices. Weaker
sterling should act as a stimulus to UK
exports and ultimately make UK assets
look more appealing for non-sterling
buyers. Over 70 per cent of FTSE 100
companies’ earnings are generated
outside the UK. These firms typically earn
revenues in dollars, and translating them
back into sterling-reported profits and
dividends should help underpin returns.
£Jason Hollands is managing director at
Tilney Bestinvest.

CITYAM.COM
TUESDAY 28 JUNE 2016
OPINION
23
WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum
:@cityam
LETTERS
TO THE EDITOR
Taxi for Nigel
Farage
[Re: Nigel Farage questions whether Mark
Carney should remain in his job as
governor of the Bank of England,
yesterday]
Nigel Farage has just disqualified himself from
any involvement in deciding how we should
exit the EU. Mark Carney was not political – he
did his job by pointing out the economic risks
to leaving the EU. He wasn’t wrong to do so
because he had a duty to make clear to
everyone in Britain the full context of the
decision they were making, and I hope that
Leave voters opted for Brexit in full knowledge
of the consequences because of him. Farage
has had his say. Now it’s time for the grownups
to take charge and make the best from
Brexit.
James Green
Compromises
[Re: Britain must now find a global role,
yesterday]
I appreciate John Hulsman’s attempt to
portray the sunny uplands of post-Brexit life,
but what are his views on how Britain can best
get through this coming divorce? Should we
ignore the concerns of voters and enter a
Norway-style relationship, which will preserve
freedom of movement but also ensure banks
are still easily able to passport their services
across the EU Single Market? Or should we
take a chance and try to negotiate a bespoke
deal, somehow getting everything we want
maybe by agreeing to keep paying into the EU
Budget? Or do we accept that many of the
claims made by Vote Leave are pie in the sky
thinking and just reconsider the whole thing?
Name withheld
BEST OF
TWITTER
Threat of an Emergency
Punishment Budget
revealed to be a fiction by
Osborne this morning – no
surprise.
@econhedge
Thought chancellor
Osborne’s statement was
clear, succinct and
reassuring in difficult
circumstances. Qualities of
statesman! Excellent.
@truemagic68
EU Commissioner says she’s
worried that a British exit
from the EU will mean the
EU budget will drop 15 per
cent post-2020.
@minefornothing
Pierre Moscovici, EU
Commissioner for Economic
Affairs, tells Bloomberg TV
he doesn’t rule out UK’s
continued access to single
market.
@EuroGuido
Scottish on new
referendum. 45 per cent
don’t want one. 42 per cent
do (Survation).
@ianbremmer
Actually this is a lot like the
Titanic. Captain goes down
with the ship, first officer
organises the rescue of the
first class passengers...
@Frances_Coppola
Financial services are now more
important than ever to the UK
THE British public has chosen
to leave the EU. As a result, we
are now more rather than less
reliant on the major players in
the UK economy, in particular
financial services.
The industry has been bracing itself
for short-term economic and market
volatility in reaction to this outcome. It’s
going to be testing, but the UK financial
sector is well-capitalised, our systems are
resilient, and our regulatory structure is
well-tested and held in high regard
across the globe. Thanks to all the work
the industry and regulators have done
post-financial crisis, we are in as good a
position as any to weather that storm.
Looking beyond the current volatility,
the role the industry plays in advising
politicians and policy-makers in negotiating
our exit is going to be critical. For
financial services, this is going to be a
series of major operations and it is in all
of our interests that such an important
sector of the UK economy does not get
permanently injured in the process.
In theory, there is no reason why the
financial services industry in the UK
shouldn’t continue to prosper outside of
the EU. Our financial infrastructure,
connectivity to international markets,
skilled workforce, optimal time zone,
and trusted legal system and regulatory
environment will all continue to work
in our favour.
Many of the most senior regulatory
and policy roles at a global level have
been held by Brits and, as a result, we
have great understanding and
influence in global markets. And we are
leading the world in financial innovation
and fintech, with some of the most
progressive policy and regulation and a
strong spread of promising new businesses.
Omar
Ali
But all of that said, with open access to
EU markets no longer guaranteed, we
are going to face significant headwinds.
We will face difficult questions about
financial institutions’ continued ability
to use the UK as a gateway to Europe,
and the equivalence of the UK regime to
a more and more integrated Eurozone.
We run an annual survey of inward
investors to the UK, and it’s clear from
their answers from earlier this year that
certain issues are going to be central to
the ongoing success of the UK on the
world stage:
£ Access to the Single Market – Almost
three quarters (72 per cent) of financial
services companies said that access to
the Single Market was important for
them, and 44 per cent agreed it was
“very important”.
£ Perception of foreign investors – 43
per cent of financial services companies
said that, if the UK were to leave the EU
but retain access to the Single Market on
slightly less favourable terms, it would
make the country less attractive as a destination
for investment.
£ Regulatory uncertainty – During the
negotiation period there will, of course,
be uncertainty for financial services
around the extent of regulatory change
we will actually see. The UK’s leading
role in shaping the regulatory agenda
for financial services means there is a
commonly-held belief that very little
will change, but the sooner we have certainty
on that, the better.
£ Innovation and disruption – 73 per
cent of investors identified fintech as a
primary area for investment. In the UK,
financial services has a long history of
adaptability and innovation, and this
has been central to our economy’s success.
We had the first exchanges, central
bank, and coffee houses that gave merchants
access to finance. We printed the
first double-sided bank note, launched
the first mass market current account,
overdraft and credit vouchers, opened
the first ATM, telephone banking, and
the first internet banking service. We
know from our own research for the
Treasury that the UK is leading the way
in fintech, but that could change. Our
market-leading position needs to be
safe-guarded.
I urge UK policy-makers to do all they
can in the short term to help the industry.
This should include measures to
keep lending flowing, reassessing the
applicability and perhaps pausing some
of the post-crisis reforms and taxes.
Irrespective of their own personal politics,
leaders across the UK’s major
industries will be assessing their businesses’
and industries’ competitive positioning
in this new landscape. In
financial services, there’s lots worth
fighting for.
If we can maintain our confidence as
an industry, remember all that we have
learned through the financial crisis,
speak with one strong voice in the market
and at the negotiating table, then
the world will see why financial institutions
and investors can’t afford not to be
here.
£ Omar Ali is managing partner for UK
financial services at EY.
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24 FEATURE TUESDAY 28 JUNE 2016
CITYAM.COM
TRADING
WHAT’S BEHIND THE RISE
OF ALTERNATIVE POLITICS?
tenuous that it benefits the real
economy.”
So stock markets have soared to
record highs and property bubbles
have appeared, while at the same
time the government has
implemented austerity measures.
It’s a disconnect which has fuelled
anti-establishment movements, says
Schiff.
Indeed, there’s a growing
consensus that QE does little more
than raise asset prices. While it’s
still under way in Europe and
Japan, they’re trying new variations
of it, and central banks around the
world are looking to increasingly
unusual and untested methods to
fire up their economies.
WAGES
Low wages are also having an effect.
In the US, wages are at a record low
in relation to the country’s GDP.
“Since the S&P 500 started up...
the ratio has never been so high,”
says James Hanbury of Odey Asset
Management.
This also accounts for corporate
profits being so high. “There’s no
question that corporate profits
relative to returns to labour are at a
multi-year high,” says Tom Slater,
manager of the Baillie Gifford
American fund.
Hanbury says it’s a worrying sign
as it forebodes social unrest – and
may explain the surge of support
for populist candidates including
Sanders and Trump.
“You need to be wary... You end
up with social unrest and you can
see it in the political movements at
the moment that are trying to
change society,” he added.
Brexit is the
biggest electoral
riposte to our age
of inequality
Annabelle
Williams
Antiestablishment
sentiment is rising
across Europe
and the US – is
inequality and
monetary policy
to blame?
ANTI-ESTABLISHMENT sentiment
is growing, with
political leaders seen as
“alternative” drawing support
across the Western
world – from the rise of Bernie
Sanders and Donald Trump in the
US, to France’s National Front,
Germany’s AfD, Italy’s Lega Nord
and Syriza in Greece.
The surprise triumph of the
Brexit movement falls into this
camp too. And a number of
commentators have suggested
inequality is the root cause of the
trend.
“Brexit is thus far the biggest
electoral riposte yet to our age of
inequality,” writes Michael Hartnett
of Bank of America Merrill Lynch in
a note. It’s because the economic
recovery of the last eight years
since the financial crisis has been
unbalanced, he adds.
Western economies are supposed
to be on the mend, but not
everyone feels that way.
“The man on the street perceives
a very different reality. They know
that their living standards have
fallen, their cost of living has risen,
and that their job prospects have
deteriorated. They see a loss in
confidence and economic
stagnation when they are being
assured the opposite,” says Peter
Schiff of stockbroker Euro Pacific
Capital. There are “underlying
frustrations” which are fuelling the
growth of anti-establishment
parties, says Jason Hollands of
investment firm Tilney Bestinvest.
“It’s happening because the little
guy has seen very little growth in
his meagre savings… People don’t
understand what has happened but
they know it isn’t right.”
These frustrations are creeping
into policy, whether or not
champions of alternative politics
become mainstream. “These leaders
don’t have to get elected. They pull
the debate in a certain direction,”
Hollands adds.
CENTRAL BANK POLICY
There are a number of issues which
have fuelled anti-establishment
movements, most of which are a
result of globalisation. People are
angry at the outsourcing of jobs
overseas, technology replacing
workers, and perceive that
immigration is negative.
But some experts point the finger
at the monetary policy underway
since the financial crisis –
including QE and record low
interest rates – as the real driver of
financial inequality.
“The vote in the UK illustrates the
fundamental inefficacy of the
monetary and financial policies
that have been implemented by the
world’s dominant central banks,”
says Schiff.
QE meant the printing of trillions
of fresh cash by central banks in
the US, UK, Europe and Japan. The
idea was for the central bank to use
those extra trillions to buy up debt
from regular banks. High street
banks can then make funds
available for people and businesses
to borrow, and they also invest the
cash – all of which should boost the
economy.
But those steps haven’t quite
panned out – the action hasn’t
followed the theory.
“QE has supported people who
own assets, by creating asset price
inflation. The top 1 per cent have
become increasingly wealthy
because they own shares, bonds
and property, but ordinary people
have struggled to make any
headway,” says Hollands. “QE has
become discredited. It is very, very
Hanbury says the situation is
untenable and he is holding off
from investing in US companies.
With wages so low, consumers
have less to spend which may lead
to a collapse in corporate profits,
and social pressure should lead to
companies paying higher wages.
CORPORATE TAX AVOIDANCE
Controversial tax arrangements of
global businesses have never been
far from the headlines. Despite the
legality of the arrangements, the
seemingly small amounts of tax
paid by some businesses has drawn
the wrath of ordinary people and
has likely contributed to anticorporatist
feeling.
Although larger tax bills would
mean corporate profitability takes a
knock in the short term, not all
investors are solely focused on
quarterly results. Baillie Gifford’s
Slater says paying an equitable rate
of tax would be paid back in spades
in the long term, from better
relations between brands and
consumers.
“I think it would be good for
these companies to put more tax
back into the jurisdictions in which
they operate. These companies are
increasingly reliant on the goodwill
of consumers and I think not
paying taxes damages the brand,”
says Slater. “I would rather they had
lower profits in the short-term.”
£ Annabelle Williams is deputy money
editor at City A.M.

CITYAM.COM
TUESDAY 28 JUNE 2016
FEATURE
25
Careful what you wish for: Seven Brexit takeaways
THE result of the UK’s EU referendum
came as a massive
shock to the markets and was
no fun for a large number of
people.
Unlike those in the Remain camp, who
pointed to the market turmoil yelling “I
told you so”, it gives me no sense of
schadenfreude thinking of people
seeing their pension savings dropping
like rocks, and I pity the bankers, who
keep an important part of London running,
being slapped around with 10-15
per cent drops in the space of minutes.
Now we’ve had a weekend of resignations,
coups and plotting, let’s take a few
minutes to reflect on some of the main
points of this whole sorry saga:
First, it is so much easier to tear things
apart than it is to build something,
whether that be a relationship, a garden
shed, a house of cards, or the EU. When I
buy my Ikea flat-pack bookshelf, I curse,
spend days building it, and then I enjoy
it. If it wobbles in the years to come, I stabilise
it. But I love having my books on
bookshelves.
Second, the EU managed to get
through the worst financial crisis ever,
but it couldn’t withstand pictures of desperate
people escaping war. The immigration
crisis was one of the most
muddled – and poisonous – parts of the
Brexit debate. Here’s something to think
about: hundreds of thousands of people,
CNBC
COMMENT
Louisa
Bojesen
like you and I, don’t want to leave their
homes and flee by foot, to a place where
they aren’t wanted, where they have no
friends, no job, and live in tiny rooms
because they think the UK benefit system
is so amazing. If bombs destroyed
everything you have here, would you
want to move, by foot, to Finland? The
fact remains that the UK has taken in a
small amount of refugees compared to
other countries. In a post-Brexit UK,
businesses will have to outsource more
jobs to, for example, Turkey than the
amount of jobs taken by immigrants
moving to the UK from Turkey.
Third, I’ll give you a (devalued) pound
if you guess who said the following:
“People want to see borders, they don’t
necessarily want people pouring into
their country where they don’t know
who they are and where they come
from.” No, it wasn’t the Leave campaign,
it was Donald Trump arriving in
Scotland last Friday for the reopening of
his refurbished golf resort. (As one tweet
The toxic debate on immigration will have ramifications
Never in my
wildest dreams did
I think I would see
a Brexit before a
Grexit
read, “Bloody immigrants. Coming over
here, building golf courses”.)
Fourth, never in my wildest dreams
did I think I would see a Brexit before a
Grexit. The difference being that this
“crisis” is entirely self-inflicted. Did people
forget all the volatility and uncertainty
felt over the last 10 years? This
vote will come back to hit people for
years to come: in the size of your pension,
where you can retire to, your
access to public services, funding for
university research, even those ridiculously
high roaming charges when travelling.
Fifth, those of you who know me know
I am a big fan of putting myself in other
people’s shoes. I am also a big fan of simple
questions. Here’s one. If I am in
China, who is the most appealing to
trade with: the EU (with half a billion
people) or the UK (60m people)?
Sixth, I have trawled through hundreds
of small-type, often quite boring,
reports over the last year on all kinds of
things related to the vote. And I have
learned a tonne of stuff, from both sides.
Would I have spoken to hundreds of people
about their expert opinions on the
economic impact of a Brexit had I not
been in this job? No. Have the majority
of people who voted genuinely understood
what it was they were voting for?
The issue becomes how you get your
information. That includes the tone of
what you’re reading as well as the detail.
Finally, just to put things in perspective:
in Friday’s reaction trade, UK markets
lost $350bn over eight hours. This,
according to EU politician Guy
Verhofstadt, is more than what the UK
contributed to the EU budget over the
last 15 years – and that includes the
rebate.
£ Louisa Bojesen is presenter of CNBC’s
European Street Signs. @louisabojesen

Gold ............................................................1324.55 9.05
Silver...............................................................17.70 -0.34
Brent Crude....................................................47.05 -1.46
Krugerrand ................................................1320.80 5.90
Palladium....................................................548.00 -9.00
Platinum .....................................................976.00 1.00
Tin Cash Official .......................................17002.50 -55.00
Lead Cash Official .......................................1697.75 4.50
Zinc Cash Official ......................................2000.50 3.00
Copper Cash Official ..................................4691.50 29.00
Aluminium Cash Official .............................1591.75 -8.50
Nickel Cash Official....................................8955.00 60.00
Aluminium Alloy Cash Official ..................1530.00 0.00
Cocoa Futures............................................3034.00 -36.00
Coffee 'C' Futures .........................................136.02 -0.96
Feed Wheat Futures....................................109.00 -1.00
Soybeans Futures Continuation Contract ..1136.40 33.40
AIR LIQUIDE ......................................................88.71 -2.16 123.65 89.15
AIRBUS GROUP ................................................49.92 -2.19 68.50 49.96
ALLIANZ N........................................................120.15 -6.65 170.00 121.40
ANHEUS.-BUSCH INBEV..................................109.50 -0.85 124.20 87.73
ASML HLDG.......................................................83.49 -1.99 99.46 70.25
AXA....................................................................16.41 -1.78 26.02 16.99
BANCO SANTANDER ...........................................3.30 -0.08 0.00 0.00
BASF N..............................................................65.19 -1.88 85.87 56.01
BAYER N...........................................................86.98 -0.66 138.00 83.45
BBVA ..................................................................4.76 -0.08 0.00 0.00
BMW ................................................................65.67 -2.99 104.85 66.00
BNP PARIBAS-A-...............................................36.91 -2.49 61.00 37.00
CARREFOUR ......................................................21.45 -0.71 31.41 20.90
DAIMLER N........................................................53.37 -1.69 87.32 52.00
DANONE...........................................................60.46 -0.37 66.50 51.73
DEUTSCHE BANK N............................................12.54 -0.83 32.31 12.69
DEUTSCHE POST N ............................................23.67 -0.89 29.10 19.55
DEUTSCHE TELEKOM N.......................................13.98 -0.08 16.98 12.94
E.ON N................................................................8.23 -0.24 12.69 7.08
ENEL ...................................................................3.59 -0.01 4.45 3.33
ENGIE ................................................................13.18 -0.30 18.12 12.34
ENI.....................................................................13.23 -0.01 16.92 10.93
ESSILOR INTL.....................................................113.10 -1.90 123.92 94.08
FRESENIUS........................................................61.94 -1.70 70.00 52.39
GENERALI .........................................................10.00 -0.93 18.27 9.93
IBERDROLA.........................................................5.54 0.15 0.00 0.00
INDITEX ...........................................................28.42 -0.49 0.00 0.00
ING GROUP .........................................................8.61 -0.73 16.00 8.30
INTESA SANPAOLO ..............................................1.55 -0.19 3.65 1.52
L'OREAL ..........................................................162.80 -1.50 178.95 140.40
LVMH ...............................................................131.40 -3.75 176.60 130.75
MUENCH RUECKVERS N...................................143.75 -5.60 193.65 146.65
NOKIA ................................................................4.56 -0.48 7.11 4.48
ORANGE ............................................................13.59 -0.08 16.98 12.21
ROY.PHILIPS.......................................................21.01 -1.09 26.10 20.48
SAFRAN............................................................56.02 -2.26 72.45 48.87
SAINT GOBAIN...................................................32.51 -3.07 44.84 31.47
SANOFI .............................................................70.42 1.05 101.10 62.50
SAP ..................................................................65.20 -1.91 75.75 53.91
SCHNEIDER ELECTRIC........................................49.73 -2.40 66.15 45.32
SIEMENS N ........................................................87.39 -3.13 100.90 77.91
SOCIETE GENERALE...........................................26.39 -2.42 48.77 25.00
TELEFONICA ........................................................7.66 -0.07 0.00 0.00
TOTAL ...............................................................40.33 -0.30 44.64 34.21
UNIBAIL-RODAMCO ........................................225.70 -4.65 257.85 212.05
UNICREDIT ...........................................................1.91 -0.17 6.27 1.88
UNILEVER CERT..................................................39.15 -0.25 42.84 32.86
VINCI ................................................................58.57 -1.42 68.29 51.10
VIVENDI ............................................................15.28 -0.32 24.83 14.87
VOLKSWAGEN VZ.............................................106.10 -8.15 221.55 86.36
Price Chg High Low
EU SHARES
3M....................................................................167.19 -1.93 174.15 134.00
ALPHABET-A ...................................................681.14 -4.06 810.35 539.54
ALPHABET-C ..................................................668.26 -6.96 789.87 515.18
ALTRIA GROUP..................................................67.93 0.91 68.00 47.41
AMAZON.COM .................................................691.36 -7.60 731.50 425.57
AMERICAN EXPRESS .........................................57.67 -2.39 81.66 50.27
AMGEN ...........................................................144.58 -1.87 181.81 130.09
APPLE ..............................................................92.04 -1.36 132.97 89.47
AT&T.................................................................42.03 0.51 42.23 30.97
BANK OF AMERICA ............................................12.18 -0.82 18.48 10.99
BERKSHIRE HATHAWY-B ................................138.50 -1.21 148.03 123.55
BOEING CO ......................................................122.70 -3.82 150.59 102.10
BRISTOL-MYERSSQUIBB ...................................70.32 -0.29 75.12 51.82
CATERPILLAR ....................................................71.38 -1.65 86.74 56.36
CHEVRON .......................................................100.36 -1.54 104.45 69.58
CISCO SYSTEMS ..................................................27.31 -0.44 29.49 22.46
CITIGROUP .......................................................38.48 -1.82 60.95 34.52
COCA-COLA CO..................................................43.78 -0.15 47.13 36.56
COMCAST-A......................................................62.46 0.81 64.99 50.01
DU PONT NEMOURS&CO ..................................64.08 -1.92 75.72 47.11
EXXON MOBIL...................................................88.86 -0.53 92.07 66.55
FACEBOOK-A...................................................108.97 -3.11 121.08 72.00
GENERAL ELECTRIC...........................................29.32 -0.50 32.05 19.37
GILEAD SCIENCES .............................................78.25 -2.22 120.37 78.70
GOLDMAN SACHS GROUP ................................139.51 -2.35 214.61 139.05
HOME DEPOT...................................................124.67 -1.73 137.82 92.17
IBM .................................................................143.50 -3.09 173.78 116.90
INTEL ................................................................30.72 -0.83 35.59 24.87
JOHNSON & JOHNSON.....................................116.55 0.92 117.74 81.79
JPMORGAN CHASE ............................................57.61 -1.99 70.61 50.07
MCDONALD'S...................................................116.30 -3.14 131.96 87.50
MEDTRONIC ......................................................82.38 -0.88 86.31 55.54
MERCK ..............................................................55.31 -0.57 60.07 45.69
MICROSOFT ......................................................48.43 -1.40 56.85 39.72
NIKE -B- ...........................................................51.89 -0.70 68.20 47.25
ORACLE ............................................................38.48 -0.75 42.00 33.13
PEPSICO...........................................................102.13 0.15 106.94 76.48
PFIZER..............................................................33.80 -0.17 36.46 28.25
PHILIP MRRS INT..............................................98.20 0.49 102.55 76.54
PROCTER&GAMBLE ...........................................81.23 -1.03 84.21 65.02
SCHLUMBERGER...............................................75.07 -1.59 86.69 59.60
TRAVLR COMP..................................................110.35 -0.67 118.28 95.21
TWITTER ...........................................................15.84 -0.60 38.82 13.73
UNITEDHEALTH GROUP ....................................137.11 -0.18 140.89 95.00
UTD TECHNOLOGIES...........................................97.21 -1.68 113.03 83.39
VERIZON COMM ...............................................54.74 0.31 55.22 38.06
VISA-A .............................................................73.34 -1.71 81.73 60.00
WAL-MART STORES ..........................................71.50 -0.46 74.14 56.30
WALT DISNEY-DISNEY......................................94.38 -1.34 122.08 86.25
WELLS FARGO...................................................45.01 -0.70 58.77 44.50
WILLIS TOWERS...............................................113.40 -3.61 130.97 104.11
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 ..............................-0.397 0.00
LIBOR Euro - 12 months .............................-0.057 0.00
LIBOR USD - overnight ................................0.393 0.00
LIBOR USD - 12 months ................................1.205 0.00
Halifax mortgage rate ................................3.990 0.00
Euro Base Rate ...........................................0.000 0.00
Finance house base rate .............................1.000 0.00
US Fed funds .................................................0.42 0.00
US long bond yield........................................2.28 -0.14
Euro Euribor ...............................................-0.373 0.00
The vix index ...............................................23.85 -1.91
The baltic dry index..................................609.00 13.00
Markit iBoxx EUR .......................................230.14 0.98
Markit iBoxx GBP........................................314.58 3.90
Markit iTraxx................................................95.29 1.38
Price Chg High Low
US SHARES
€/$ 1.1026 0.0017
€/£ 0.8333 0.0105
€/¥ 112.40 0.0067
/€ 1.1999 0.0155
/$ 1.3231 0.0191
/¥ 134.89 1.7175
BAE Systems . . . . . . . . .468.9 -11.9 526.5 425.5
Cobham . . . . . . . . . . . . .142.4 -8.6 260.4 127.5
Meggitt . . . . . . . . . . . . .364.0 -15.7 509.5 346.5
QinetiQ Group . . . . . . . .218.6 -7.7 274.4 212.0
Rolls-Royce Holdi . . . . .652.0 3.0 898.0 512.5
Senior . . . . . . . . . . . . . .186.0 -10.1 302.5 181.8
Ultra Electronics . . . . .1595.0 -98.0 2026.0 1573.0
GKN . . . . . . . . . . . . . . . .253.4 -24.6 347.2 248.6
Aldermore Group . . . . .114.0 -25.8 316.0 111.0
Barclays . . . . . . . . . . . . .127.2 -26.7 289.0 121.1
BGEO Group . . . . . . . . .2307.0 -143.0 2630.0 1570.0
CYBG . . . . . . . . . . . . . . . .211.9 -38.1 289.5 182.8
HSBC Holdings . . . . . . .438.0 -10.0 594.6 416.2
Lloyds Banking Gr . . . . . .51.2 -5.9 87.7 51.0
Metro Bank . . . . . . . . .1634.0-281.0 2250.0 1617.0
Royal Bank of Sco . . . . .174.3 -31.0 367.2 151.5
Shawbrook Group . . . . .163.1 -69.9 378.2 160.0
Standard Chartere . . . .528.0 -35.3 1004.2 386.7
Virgin Money Hold . . . .205.2 -70.1 450.8 196.1
Barr (A.G.) . . . . . . . . . . .455.3 -42.0 633.0 455.3
Britvic . . . . . . . . . . . . . .586.5 -44.0 742.5 586.5
Coca-Cola HBC AG . . . .1370.0 4.0 1629.0 1255.0
Diageo . . . . . . . . . . . . .1914.0 36.0 1951.5 1640.0
SABMiller . . . . . . . . . . .4278.0 -1.5 4320.0 2877.5
Croda Internation . . . .2819.0 -58.0 3139.1 2657.7
Elementis . . . . . . . . . . .180.6 -17.3 261.3 179.6
Johnson Matthey . . . .2779.0 -135.0 3117.6 2230.0
Synthomer . . . . . . . . . .309.3 0.4 368.1 275.1
Victrex plc . . . . . . . . . .1400.0 -50.0 2020.0 1367.0
AA . . . . . . . . . . . . . . . . .209.9 -25.9 382.2 209.5
AO World . . . . . . . . . . . .120.5 -25.9 189.3 119.6
Auto Trader Group . . . .328.0 -51.1 449.6 298.4
B&M European Valu . . . .233.1 -23.5 358.5 232.8
Brown (N.) Group . . . . .182.3 -21.6 389.1 182.2
Card Factory . . . . . . . . .310.0 -24.9 399.0 298.3
Darty . . . . . . . . . . . . . . .168.4 -0.2 171.8 68.0
Debenhams . . . . . . . . . .53.3 -5.4 90.7 52.6
DFS Furniture . . . . . . . .205.5 -45.4 349.0 202.0
Dignity . . . . . . . . . . . .2276.0 -96.0 2621.0 2142.0
Dixons Carphone . . . . .330.0 -41.0 500.0 324.5
Dunelm Group . . . . . . .779.5 -80.5 1018.0 777.5
Halfords Group . . . . . . .313.0 -28.7 561.0 304.5
Home Retail Group . . . .148.2 -3.8 181.5 89.7
Inchcape . . . . . . . . . . . .581.0 -47.0 836.5 574.0
JD Sports Fashion . . . .1037.0 -79.0 1332.0 705.5
Just Eat . . . . . . . . . . . . .405.0 -17.5 494.9 329.1
Kingfisher . . . . . . . . . . .314.7 -26.7 379.7 313.4
Marks & Spencer G . . . .285.2 -41.2 560.5 275.8
Next . . . . . . . . . . . . . .4384.0-464.0 8015.0 4323.0
Pendragon . . . . . . . . . . .26.7 -5.2 49.0 25.5
Pets at Home Grou . . . .223.8 -22.3 311.2 215.7
Saga . . . . . . . . . . . . . . .180.6 -19.3 221.4 173.9
Sports Direct Int . . . . . .295.3 -26.0 817.5 274.4
Ted Baker . . . . . . . . . . .2124.0-476.0 3555.0 2069.0
WH Smith . . . . . . . . . .1455.0 -63.0 1878.0 1454.0
Balfour Beatty . . . . . . . .190.8 -41.9 272.5 184.9
CRH . . . . . . . . . . . . . . .1950.0-126.0 2147.0 1637.0
Galliford Try . . . . . . . . .858.5 -181.5 1813.0 834.0
Ibstock . . . . . . . . . . . . . .127.7 -28.7 225.0 127.2
Keller Group . . . . . . . . .883.0 -47.0 1085.0 728.5
Kier Group . . . . . . . . . .995.0-142.0 1513.0 991.0
Marshalls . . . . . . . . . . . .213.0 -40.2 370.8 200.2
Polypipe Group . . . . . . .252.2 -31.7 362.0 251.2
Drax Group . . . . . . . . . .289.9 -6.2 366.0 207.6
SSE . . . . . . . . . . . . . . . .1369.0 -51.0 1626.0 1321.0
Halma . . . . . . . . . . . . . .928.0 -28.0 971.5 713.0
Morgan Advanced M . . .210.1 -43.6 356.8 192.3
Renishaw . . . . . . . . . .1986.0 -117.0 2330.0 1600.0
Spectris . . . . . . . . . . . .1655.0-108.0 2157.0 1442.0
Aberforth Smaller . . . .849.0 -136.5 1234.0 849.0
Alliance Trust . . . . . . . .498.0 -2.0 521.0 440.1
Bankers Inv Trust . . . . .551.0 -39.0 657.0 522.0
BH Macro Ltd. GBP . . .1943.0 -5.0 2103.0 1920.2
British Empire Tr . . . . . .471.0 -4.9 511.0 412.0
Caledonia Investm . . .2152.0 -123.0 2511.0 2112.0
City of London In . . . . .356.0 -21.0 408.3 341.5
Edinburgh Inv Tru . . . .620.0 -52.0 728.0 618.0
Electra Private E . . . . .3310.0-447.0 4019.0 3140.0
Fidelity China Sp . . . . . .140.0 -0.7 152.5 110.5
Fidelity European . . . . . .151.2 -6.8 183.0 151.2
Finsbury Growth & . . . .562.5 -24.0 610.5 532.5
Foreign and Colon . . . .426.2 -7.8 456.4 391.2
GCP Infrastructur . . . . . .118.2 -3.8 123.9 114.5
Genesis Emerging . . . .516.0 9.5 522.0 400.5
HarbourVest Globa . . . .875.0 -35.0 1377.5 825.0
HICL Infrastructu . . . . . .165.3 -2.2 168.0 150.2
International Pub . . . . .149.0 0.4 149.6 130.3
John Laing Infras . . . . . .125.0 0.2 126.2 114.0
JPMorgan American . . .289.1 -11.9 306.0 243.0
JPMorgan Emerging . .596.5 3.5 605.0 483.0
Mercantile Invest . . . . .1375.0-231.0 1838.0 1375.0
Monks Inv Trust . . . . . . .416.0 -16.0 432.0 361.1
Murray Internatio . . . . .904.5 -59.5 990.0 742.5
NB Global Floatin . . . . . .88.6 -2.6 98.4 84.6
P2P Global Invest . . . . .805.0 -36.0 1090.0 799.9
Perpetual Income . . . .332.0 -32.0 428.5 330.0
Personal Assets T . . .37710.0 410.038000.033130.0
Polar Capital Tec . . . . . .590.0 -7.5 641.0 503.5
RIT Capital Partn . . . . .1560.0 -38.0 1690.0 1436.0
Riverstone Energy . . . .855.0 -7.0 1035.0 720.0
Scottish Inv Trus . . . . . .582.0 -34.5 646.0 544.5
Scottish Mortgage . . . .256.0 -5.1 280.8 220.6
Temple Bar Inv Tr . . . . .970.0 -82.0 1180.0 940.0
Templeton Emergin . . .475.0 2.0 520.0 371.5
The Renewables In . . . .90.3 -5.0 106.3 88.8
TR Property Inv T . . . . . .241.7 -34.6 314.9 241.7
Witan Inv Trust . . . . . . .712.0 -25.5 814.5 683.0
Woodford Patient . . . . .83.5 -5.6 119.3 83.0
Worldwide Healthc . . .1740.0 -90.0 2097.0 1596.0
3i Group . . . . . . . . . . . .469.6 -42.9 573.0 389.8
3i Infrastructure . . . . . . .173.2 -4.7 180.5 163.6
Aberdeen Asset Ma . . .245.8 -31.9 417.8 209.3
Allied Minds . . . . . . . . .325.0 -36.7 563.0 267.0
Arrow Global Grou . . . .202.0 -35.3 288.0 202.0
Ashmore Group . . . . . . .260.1 -18.7 310.7 196.4
Brewin Dolphin Ho . . . .210.2 -17.8 324.7 207.6
Charles Taylor . . . . . . . .247.0 -21.0 289.0 220.0
City of London In . . . . .300.0 -4.8 367.5 285.0
Close Brothers Gr . . . . .1041.0 -174.0 1610.0 1038.0
CMC Markets . . . . . . . . .244.0 -23.0 283.3 219.0
Hargreaves Lansdo . . .1056.0 -119.0 1525.0 1054.0
Henderson Group . . . . .195.0 -23.0 312.0 192.6
ICAP . . . . . . . . . . . . . . . .392.3 -28.3 535.0 381.8
IG Group Holdings . . . .759.5 -45.5 840.0 690.0
Intermediate Capi . . . .459.6 -71.9 671.0 448.4
International Per . . . . .234.5 -26.0 472.5 219.0
Investec . . . . . . . . . . . . .419.4 -33.7 621.0 402.7
IP Group . . . . . . . . . . . .120.4 -23.2 259.1 117.7
John Laing Group . . . . .216.7 -4.3 230.2 187.0
Jupiter Fund Mana . . . .336.9 -46.1 475.1 336.1
Liontrust Asset M . . . . .235.0 -20.0 374.8 235.0
LMS Capital . . . . . . . . . . .55.0 -2.0 80.0 55.0
London Finance & . . . . .37.5 -1.0 40.5 34.0
London Stock Exch . . .2289.0 -211.0 2906.0 2123.0
Man Group . . . . . . . . . .109.9 -5.0 175.7 108.9
OneSavings Bank . . . . .176.2 -87.2 405.6 176.2
Paragon Group Of . . . .241.0 -20.8 444.8 239.8
Provident Financi . . . .2164.0-287.0 3634.0 2125.0
PureTech Health . . . . . .144.8 3.3 170.5 120.0
Rathbone Brothers . . .1671.0-146.0 2359.0 1667.0
Real Estate Credi . . . . . .146.0 -11.0 183.0 146.0
Record . . . . . . . . . . . . . . .25.3 -0.9 39.0 22.1
S&U . . . . . . . . . . . . . . .2230.0-145.0 2610.0 1992.5
Sanne Group . . . . . . . . .385.0 -15.0 449.0 251.0
Schroders . . . . . . . . . .2049.0-333.0 3308.0 1995.0
SVG Capital . . . . . . . . . .480.1 -41.9 550.0 436.0
Tullett Prebon . . . . . . . .275.0 -23.3 414.8 270.8
VPC Specialty Len . . . . . .82.0 -1.0 104.0 80.9
Walker Crips Grou . . . . .44.5 -0.5 53.8 41.3
BT Group . . . . . . . . . . . .375.9 -8.0 499.8 359.6
TalkTalk Telecom . . . . .200.2 -5.4 391.0 189.5
Telecom Plus . . . . . . . . .974.5 -37.5 1214.0 815.5
Booker Group . . . . . . . .162.4 -9.0 190.0 149.4
Greggs . . . . . . . . . . . . .884.0 -46.5 1355.0 869.0
Morrison (Wm) Sup . . .174.6 -8.3 209.4 139.0
Ocado Group . . . . . . . . .208.1 -34.4 470.8 204.3
Sainsbury (J) . . . . . . . . .217.8 -9.4 292.5 214.8
SSP Group . . . . . . . . . . .282.3 -17.1 325.0 264.0
Tesco . . . . . . . . . . . . . . .153.7 -8.7 223.7 139.2
UDG Healthcare Pu . . . .542.5 -4.5 625.0 460.3
Associated Britis . . . . .2350.0-425.0 3599.0 2339.0
Cranswick . . . . . . . . . .1975.0-109.0 2538.0 1536.0
Dairy Crest Group . . . . .504.5 -25.5 697.0 503.0
Greencore Group . . . . . .287.3 -11.9 392.4 273.2
Tate & Lyle . . . . . . . . . .626.5 -1.5 637.5 502.0
Unilever . . . . . . . . . . . .3310.5 45.0 3358.5 2524.0
Mondi . . . . . . . . . . . . .1259.0 -72.0 1611.0 1124.0
Centrica . . . . . . . . . . . . .199.0 -6.5 283.0 183.6
National Grid . . . . . . . .996.9 12.5 1010.0 817.2
Pennon Group . . . . . . .846.0 -6.0 896.5 713.0
Severn Trent . . . . . . . .2229.0 8.0 2295.0 2024.0
United Utilities . . . . . . .938.5 10.5 998.5 828.0
Rexam . . . . . . . . . . . . .640.0 -1.0 647.5 517.0
RPC Group . . . . . . . . . . .707.5 -56.5 843.0 575.6
Smith (DS) . . . . . . . . . .355.6 -19.4 421.0 331.2
Smiths Group . . . . . . .1060.0 -26.0 1206.0 863.5
Smurfit Kappa Gro . . .1584.0 -81.0 2824.0 1543.4
Vesuvius . . . . . . . . . . . .283.6 -46.4 437.0 270.6
Price Chg High Low
Assura . . . . . . . . . . . . . . .49.4 -3.2 61.8 48.1
Mediclinic Intern . . . . . .982.5 -3.5 1191.0 814.0
NMC Health . . . . . . . . .1175.0 -98.0 1273.0 700.0
Smith & Nephew . . . . .1171.0 -11.0 1212.0 1051.0
Spire Healthcare . . . . .307.8 -26.8 401.6 279.9
Barratt Developme . . . .354.4 -85.4 662.5 343.5
Bellway . . . . . . . . . . . .1734.0 -331.0 2848.0 1622.0
Berkeley Group Ho . . .2341.0-252.0 3757.0 2180.0
Bovis Homes Group . . .642.5 -133.0 1201.0 623.5
Crest Nicholson H . . . . .345.0 -85.0 604.0 339.5
McCarthy & Stone . . . . .152.7 -38.3 287.0 152.1
Persimmon . . . . . . . . .1310.0-210.0 2219.0 1170.0
Reckitt Benckiser . . . .6991.0 98.0 7078.0 5488.0
Redrow . . . . . . . . . . . . .294.5 -50.5 499.2 267.7
Taylor Wimpey . . . . . . .115.8 -20.3 210.3 110.2
Bodycote . . . . . . . . . . . .502.5 -81.0 717.0 494.0
Hill & Smith Hold . . . . .786.0 -49.0 1000.0 643.5
IMI . . . . . . . . . . . . . . . . .913.5 -51.0 1174.0 742.0
Rotork . . . . . . . . . . . . . .191.8 -5.6 236.3 152.7
Spirax-Sarco Engi . . . .3433.0 -27.0 3651.0 2725.0
St James's Place . . . . . .716.0 -58.5 1023.0 684.5
Standard Life . . . . . . . .265.8 -18.1 476.2 258.8
4Imprint Group . . . . . .1210.0 -55.0 1377.0 1072.0
Ascential . . . . . . . . . . . .231.8 -11.3 268.0 200.0
Bloomsbury Publis . . . .157.0 -0.5 174.0 144.3
Centaur Media . . . . . . . .40.0 -2.0 85.5 40.0
Creston . . . . . . . . . . . . . .91.6 -1.4 162.0 89.0
Entertainment One . . . .157.5 1.0 326.3 130.0
Euromoney Institu . . . .859.5 -90.5 1230.0 855.0
Future . . . . . . . . . . . . . . . .8.9 -0.3 11.5 7.9
Haynes Publishing . . . .103.5 -2.5 130.0 99.0
Informa . . . . . . . . . . . . .643.0 -6.0 712.0 534.0
ITE Group . . . . . . . . . . . .134.0 -0.8 184.8 128.8
ITV . . . . . . . . . . . . . . . . .154.0 -20.4 280.7 152.8
Johnston Press . . . . . . . .21.0 -0.5 155.0 21.0
Moneysupermarket. . . .247.2 -24.1 377.1 247.2
Pearson . . . . . . . . . . . . .897.5 -16.5 1275.0 657.5
Relx plc . . . . . . . . . . . .1290.0 7.0 1319.0 1011.0
Rightmove . . . . . . . . .3364.0-266.0 4250.0 3154.0
Sky . . . . . . . . . . . . . . . . .797.0 -37.5 1141.0 788.0
STV Group . . . . . . . . . . .308.0 3.8 515.0 300.0
Tarsus Group . . . . . . . . .248.0 -1.3 267.5 202.0
Trinity Mirror . . . . . . . . . .97.8 -12.3 182.8 96.8
UBM . . . . . . . . . . . . . . . .580.5 -6.2 605.5 469.6
Weir Group . . . . . . . . .1249.0 -107.0 1748.0 787.5
Evraz . . . . . . . . . . . . . . . .117.0 -6.6 147.6 56.2
BBA Aviation . . . . . . . . .198.0 -18.3 224.1 150.2
Clarkson . . . . . . . . . . .1995.0-250.0 2797.0 1722.0
Royal Mail . . . . . . . . . . .469.9 -38.1 541.0 413.3
Admiral Group . . . . . . .1827.0-123.0 2011.0 1385.0
Beazley . . . . . . . . . . . . .331.4 -32.6 398.9 295.6
Direct Line Insur . . . . . .333.3 -17.9 414.3 332.3
esure Group . . . . . . . . .249.0 -12.7 287.5 223.7
Hastings Group Ho . . . .165.9 -12.6 187.9 149.8
Hiscox Limited (D . . . . .915.5 -77.5 1061.0 832.0
Jardine Lloyd Tho . . . . .840.5 -63.5 1063.0 778.0
Lancashire Holdin . . . . .533.5 -21.5 759.0 518.5
RSA Insurance Gro . . . .446.0 -14.8 526.5 373.2
Aviva . . . . . . . . . . . . . . .346.2 -28.6 535.5 344.8
JRP Group . . . . . . . . . . . .96.0 -21.4 199.5 92.0
Legal & General G . . . . .165.0 -23.5 276.3 160.5
Old Mutual . . . . . . . . . . .178.1 -8.6 229.1 149.4
Phoenix Group Hol . . . .719.0 -73.5 943.5 717.5
Prudential . . . . . . . . . .1105.0-130.0 1634.0 1087.0
Wireless Group . . . . . . .185.0 -5.0 199.0 135.4
WPP . . . . . . . . . . . . . . .1476.0 -49.0 1678.0 1304.0
Zoopla Property G . . . .244.0 -39.6 337.8 199.3
Acacia Mining . . . . . . . .440.0 40.0 445.3 156.6
Anglo American . . . . . .629.9 -29.1 959.6 221.1
Antofagasta . . . . . . . . . .423.1 -7.2 712.5 346.1
BHP Billiton . . . . . . . . . .841.9 -14.4 1301.5 580.9
Centamin (DI) . . . . . . . .130.1 9.8 134.2 53.6
Fresnillo . . . . . . . . . . . .1483.0 97.0 1521.0 588.0
Glencore . . . . . . . . . . . .135.6 -3.9 266.6 68.6
Kaz Minerals . . . . . . . . . .116.2 -15.7 215.3 72.7
Polymetal Interna . . . .968.0 47.0 976.0 427.1
Randgold Resource . .8035.0 665.0 8250.0 3625.0
Rio Tinto . . . . . . . . . . .2085.5 8.0 2708.5 1577.5
Vedanta Resources . . . .393.0 -25.1 603.5 205.8
Inmarsat . . . . . . . . . . . .703.0 -50.5 1148.0 689.5
Vodafone Group . . . . . .209.3 -10.0 246.1 200.2
BP . . . . . . . . . . . . . . . . .395.0 1.3 437.6 310.3
Cairn Energy . . . . . . . . .187.7 -6.3 231.5 127.2
Royal Dutch Shell . . . .1907.0 35.0 1929.0 1266.0
Royal Dutch Shell . . . .1922.5 39.0 1947.8 1277.5
Tullow Oil . . . . . . . . . . .230.5 -14.7 350.0 118.2
Amec Foster Wheel . . . .412.7 -43.3 842.0 327.6
Petrofac Ltd. . . . . . . . . .685.5 -55.0 982.0 663.0
Wood Group (John) . . .631.5 -21.5 698.0 534.5
Burberry Group . . . . . .1061.0 -65.0 1629.0 1041.0
PZ Cussons . . . . . . . . . . .318.4 -4.7 369.2 249.3
Supergroup . . . . . . . . .1184.0-300.0 1714.0 1180.0
AstraZeneca . . . . . . . .4126.0 94.5 4627.5 3774.0
BTG . . . . . . . . . . . . . . . .645.0 -6.0 694.5 520.5
Circassia Pharmac . . . . .82.3 -12.3 353.5 81.1
Dechra Pharmaceut . .1053.0 -23.0 1228.0 912.0
Genus . . . . . . . . . . . . . .1417.0 -39.0 1620.0 1281.0
GlaxoSmithKline . . . . .1488.0 6.0 1510.0 1237.5
Hikma Pharmaceuti . .2243.0 -28.0 2490.0 1704.0
Indivior . . . . . . . . . . . . .220.9 -0.5 266.4 130.8
Shire Plc . . . . . . . . . . .4150.0 44.0 5730.0 3480.0
Vectura Group . . . . . . . .147.7 -8.3 188.5 146.6
Capital & Countie . . . . .264.4 -35.1 473.4 264.4
CLS Holdings . . . . . . . .1303.0 -132.0 1970.0 1260.0
Countryside Prope . . . .173.2 -48.1 278.5 170.6
Countrywide . . . . . . . . .250.0 -33.0 570.0 226.0
Daejan Holdings . . . . .4411.0-809.0 6595.0 4401.0
F&C Commercial Pr . . . .102.1 -12.4 148.7 102.1
Grainger . . . . . . . . . . . . .193.1 -16.9 254.0 193.0
Kennedy Wilson Eu . . .901.5 -96.5 1220.0 899.0
Safestore Holding . . . . .311.9 -30.1 400.5 280.8
Savills . . . . . . . . . . . . . .582.0 -38.0 986.5 565.5
St. Modwen Proper . . .240.9 -29.3 493.6 240.9
UK Commercial Pro . . . .65.0 -8.9 91.1 65.0
Unite Group . . . . . . . . .560.0 -46.0 702.5 550.5
Big Yellow Group . . . . .724.0 -45.5 886.5 620.0
British Land Comp . . . . .551.5 -62.0 877.0 541.5
Derwent London . . . . .2257.0-330.0 3880.0 2230.0
Great Portland Es . . . . .536.0 -63.5 889.5 534.5
Hammerson . . . . . . . . .468.6 -44.4 685.5 466.4
Hansteen Holdings . . . . .95.8 -6.8 124.1 95.0
Intu Properties . . . . . . .255.7 -21.5 353.2 254.7
Land Securities G . . . . .910.0 -95.0 1352.0 899.5
LondonMetric Prop . . . .134.9 -15.3 171.5 133.9
Redefine Internat . . . . . .40.5 -3.6 57.5 40.3
SEGRO . . . . . . . . . . . . . .370.5 -26.1 463.8 362.5
Shaftesbury . . . . . . . . .825.0 -66.5 971.0 813.0
Tritax Big Box Re . . . . . .114.7 -11.0 138.9 112.2
Workspace Group . . . . .624.5-109.0 987.0 621.0
Aveva Group . . . . . . . .1596.0 -96.0 2319.0 1237.0
Computacenter . . . . . .694.0 -61.5 879.0 668.1
Fidessa Group . . . . . . .1891.0 -213.0 2522.0 1758.0
Micro Focus Inter . . . . .1416.0 -114.0 1639.0 1175.0
NCC Group . . . . . . . . . . .226.8 -39.2 324.1 215.8
Playtech . . . . . . . . . . . .775.0 -23.0 924.0 710.5
Sage Group . . . . . . . . . .573.0 -30.5 636.5 489.7
Softcat . . . . . . . . . . . . .300.5 -42.3 383.0 280.0
Sophos Group . . . . . . . .178.4 -3.6 289.7 175.0
Aggreko . . . . . . . . . . .1092.0 -80.0 1488.0 770.0
Ashtead Group . . . . . . .975.0 -58.0 1132.0 769.0
Atkins (WS) . . . . . . . . .1232.0 -87.0 1656.0 1158.0
Babcock Internati . . . . .869.5 -64.0 1111.0 854.0
Berendsen . . . . . . . . . .1145.0 -29.0 1230.0 969.0
Bunzl . . . . . . . . . . . . .2040.0 -24.0 2094.0 1671.0
Capita . . . . . . . . . . . . . .848.5 -141.0 1326.0 839.0
Carillion . . . . . . . . . . . . .235.9 -24.6 362.4 235.9
DCC . . . . . . . . . . . . . . .6025.0 -155.0 6695.0 4620.0
Diploma . . . . . . . . . . . .790.0 -35.0 853.0 608.0
Electrocomponents . . .250.2 -16.0 290.4 172.5
Essentra . . . . . . . . . . . . .467.7 -39.3 1029.0 467.5
Experian . . . . . . . . . . .1303.0 -32.0 1335.0 1022.0
G4S . . . . . . . . . . . . . . . .164.0 -9.5 278.8 163.1
Grafton Group Uni . . . .440.0-103.0 787.5 435.0
Hays . . . . . . . . . . . . . . . .95.0 -17.0 172.8 94.1
Homeserve . . . . . . . . . .458.8 -15.6 505.0 363.2
Howden Joinery Gr . . . .341.1 -75.9 531.0 339.7
Intertek Group . . . . . .3105.0 -90.0 3349.0 2323.0
Mitie Group . . . . . . . . . .234.3 -22.0 335.6 234.3
Pagegroup . . . . . . . . . .264.9 -46.4 559.0 255.2
PayPoint . . . . . . . . . . . .925.0 -30.0 1091.0 720.0
Paysafe Group . . . . . . . .337.9 -29.2 432.4 219.0
Regus . . . . . . . . . . . . . . .251.1 -30.9 354.6 249.1
Rentokil Initial . . . . . . . .179.3 -6.2 186.8 141.0
Serco Group . . . . . . . . . .98.3 -10.1 133.4 76.8
SIG . . . . . . . . . . . . . . . . .105.3 -15.3 209.5 103.8
Travis Perkins . . . . . . .1348.0-272.0 2260.0 1271.1
Wolseley . . . . . . . . . . .3554.0-188.0 4384.0 3230.0
Worldpay Group (W . . .257.5 -22.8 316.8 255.9
ARM Holdings . . . . . . .1028.0 -52.0 1135.0 848.5
Laird . . . . . . . . . . . . . . . .301.0 -17.0 404.9 297.9
British American . . . .4455.0 70.0 4487.0 3355.5
Imperial Brands . . . . .3722.0 28.5 3863.0 2991.0
Carnival . . . . . . . . . . . .3264.0-201.0 3907.0 2957.0
Cineworld Group . . . . . .497.2 -44.8 597.0 457.0
Compass Group . . . . . .1345.0 -5.0 1368.0 991.0
Domino's Pizza Gr . . . . .307.0 -29.7 1099.0 307.0
easyJet . . . . . . . . . . . .1020.0-293.0 1808.0 990.0
FirstGroup . . . . . . . . . . . .88.7 -7.4 123.5 80.8
Go-Ahead Group . . . . .1790.0 -153.0 2713.0 1790.0
Greene King . . . . . . . . .749.0 -38.0 977.5 731.0
InterContinental . . . .2599.0 -158.0 2939.8 2192.8
International Con . . . . .343.9 -65.1 614.5 336.1
Ladbrokes . . . . . . . . . . .106.1 -16.0 137.3 93.4
Marston's . . . . . . . . . . . .130.0 -11.5 176.0 129.6
Merlin Entertainm . . . .409.9 -20.9 466.8 365.9
Millennium & Copt . . . .366.4 -68.1 581.5 363.8
Mitchells & Butle . . . . . .224.6 -20.2 464.0 215.0
National Express . . . . .275.6 -16.1 349.3 272.4
Paddy Power Betfa . .8060.0-665.0 14275.0 7560.0
Rank Group . . . . . . . . . .199.7 -17.2 295.5 199.7
Restaurant Group . . . . .269.9 -41.1 723.5 265.2
Stagecoach Group . . . . .197.5 -37.4 416.4 194.8
Thomas Cook Group . . . .58.1 -3.7 144.2 56.2
TUI AG Reg Shs (D . . . . .855.5 -98.5 1271.0 832.4
Wetherspoon (J.D. . . . .670.0 -52.0 800.0 609.0
Whitbread . . . . . . . . . .3414.0-416.0 5275.0 3386.0
William Hill . . . . . . . . . .253.0 -23.3 410.9 252.2
Wizz Air Holdings . . . .1415.0-152.0 2047.0 1401.0
4D Pharma . . . . . . . . . .660.0 -80.0 1012.5 610.0
Abcam . . . . . . . . . . . . .663.5 4.0 682.5 499.0
Advanced Medical . . . .183.3 -5.8 200.8 139.8
Amerisur Resource . . . . .24.3 -3.0 38.8 17.3
Arbuthnot Banking . . .1377.5 -143.5 1630.0 1265.0
ASOS . . . . . . . . . . . . . .3484.0-316.0 3895.0 2473.0
Brooks Macdonald . . .1428.0 -78.0 2040.0 1428.0
Camellia . . . . . . . . . . .7510.0-490.0 9800.0 7510.0
Clinigen Group . . . . . . .500.0 -45.5 761.0 492.8
Conviviality . . . . . . . . . .183.3 -18.3 238.0 150.0
CVS Group . . . . . . . . . . .690.5 -29.5 840.0 599.5
Dart Group . . . . . . . . . .510.0 -55.5 676.5 395.0
EMIS Group . . . . . . . . . .841.5 -59.5 1155.0 814.5
Fevertree Drinks . . . . . .630.5 -41.0 730.0 280.0
First Derivatives . . . . .1770.0 -20.0 2113.0 1312.5
Gamma Communicati .365.3 -44.0 463.0 268.5
GB Group . . . . . . . . . . . .275.0 -30.0 321.0 207.8
Gemfields . . . . . . . . . . . .36.0 -0.4 67.3 35.5
Gooch & Housego . . . .834.0 -23.0 929.0 816.5
GW Pharmaceutical . . .566.5 60.5 693.0 211.5
Iomart Group . . . . . . . .243.3 -6.8 307.5 214.0
James Halstead . . . . . .401.0 -10.0 520.0 385.5
Johnson Service G . . . . .88.5 -4.8 99.5 84.0
M&C Saatchi . . . . . . . . .283.8 -44.0 370.0 282.8
M. P. Evans Group . . . . .400.0 -5.0 445.9 345.5
Majestic Wine . . . . . . . .350.5 -42.5 477.8 296.0
Mulberry Group . . . . . .1025.0 47.0 1045.0 883.8
Nichols . . . . . . . . . . . . .1426.0 -6.0 1492.0 1119.0
Numis Corporation . . . .189.8 -11.0 273.5 175.0
Pan African Resou . . . . . .17.5 -1.0 19.5 6.3
Pantheon Resource . . .136.0 -8.8 184.8 17.6
Patisserie Holdin . . . . .284.0 -16.5 450.0 282.6
Pinewood Group . . . . . .516.0 -14.5 580.0 419.9
Polar Capital Hol . . . . . .276.0 -23.5 470.0 262.0
Purplebricks Grou . . . . .128.5 -13.5 175.0 73.0
Redcentric . . . . . . . . . . .158.0 -8.8 203.3 155.3
Redde . . . . . . . . . . . . . .138.5 -11.8 210.3 128.8
Renew Holdings . . . . . .295.3 -28.8 410.0 290.2
RWS Holdings . . . . . . . .213.0 -24.8 245.0 119.5
Scapa Group . . . . . . . . .231.5 -8.5 284.5 179.3
Secure Trust Bank . . .2264.0 -88.0 3385.0 2219.0
Sirius Minerals . . . . . . . . .18.5 -0.5 23.0 10.8
Smart Metering Sy . . . .415.0 -29.3 449.0 305.5
Staffline Group . . . . . . .788.0-274.0 1623.0 788.0
Telford Homes . . . . . . .262.0 -41.5 446.5 260.3
Telit Communicati . . . .209.3 -11.5 356.0 178.3
Thorpe (F.W.) . . . . . . . .220.0 -12.5 244.5 173.5
Vertu Motors . . . . . . . . . .41.0 -5.8 78.5 41.0
Watkin Jones . . . . . . . .102.0 -5.8 115.0 95.3
Young & Co's Brew . . . .1187.5 -32.5 1260.0 1075.0
Young & Co's Brew . . . .875.0 10.0 950.0 792.5
Acacia Mining . . . . . . . . . . . . . .440.0 10.0
Randgold Resources . . . . . . . .8035.0 9.0
Centamin (DI) . . . . . . . . . . . . . . .130.1 8.2
Fresnillo . . . . . . . . . . . . . . . . . .1483.0 7.0
Polymetal Internat . . . . . . . . . .968.0 5.1
AstraZeneca . . . . . . . . . . . . . . .4126.0 2.3
Royal Dutch Shell . . . . . . . . . . .1922.5 2.1
Diageo . . . . . . . . . . . . . . . . . . . .1914.0 1.9
Genesis Emerging M . . . . . . . . .516.0 1.9
Royal Dutch Shell . . . . . . . . . . .1907.0 1.9
OneSavings Bank . . . . . . . . . . . .176.2 -33.1
Shawbrook Group . . . . . . . . . . . .163.1 -30.0
Virgin Money Holdi . . . . . . . . . .205.2 -25.5
easyJet . . . . . . . . . . . . . . . . . . .1020.0 -22.3
Countryside Proper . . . . . . . . . . .173.2 -21.7
Supergroup . . . . . . . . . . . . . . . .1184.0 -20.2
McCarthy & Stone . . . . . . . . . . . .152.7 -20.1
Crest Nicholson Ho . . . . . . . . . . .345.0 -19.8
Barratt Developmen . . . . . . . . .354.4 -19.4
Grafton Group Unit . . . . . . . . . .440.0 -19.0
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
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.
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
WORLD INDICES
FTSE 100. . . . . . . . . . . . . . . . . . . . . 5982.20 -156.49 -2.55
FTSE 250 . . . . . . . . . . . . . . . . . . . . 14967.86 -1120.19 -6.96
FTSE All-Share . . . . . . . . . . . . . . . . 3237.54 -111.04 -3.32
FTSE AIM All-Share . . . . . . . . . . . . . 676.96 -26.85 -3.81
S&P 500. . . . . . . . . . . . . . . . . . . . . 2000.54 -36.87 -1.81
Dow Jones I.A. . . . . . . . . . . . . . . . 17140.24 -260.51 -1.50
Nasdaq Composite . . . . . . . . . . . . 4594.44 -113.54 -2.41
Xetra DAX. . . . . . . . . . . . . . . . . . . . 9268.66 -288.50 -3.02
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3984.72 -122.01 -2.97
Swiss Market Index . . . . . . . . . . . . 7594.49 -152.69 -1.97
ISEQ Overall Index . . . . . . . . . . . . . 5296.74 -581.49 -9.89
FTSEurofirst 300 . . . . . . . . . . . . . . . 1223.15 -50.25 -3.95
Hang Seng . . . . . . . . . . . . . . . . . . 20227.30 -31.83 -0.16
Shanghai Composite. . . . . . . . . . . 2895.70 41.42 1.45
Straits Times . . . . . . . . . . . . . . . . . 2729.85 -5.54 -0.20
ASX All Ordinaries . . . . . . . . . . . . . 5216.20 23.40 0.45
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
LIFE INSURANCE
MOBILE TELECOMS
INDUSTRIAL ENGINEERING
MEDIA
MINING
SOFTWARE & COMPUTER SERV.
HHOLD GDS & HOME CONSTR.
NON LIFE INSURANCE
INDUSTRIAL TRANSPORTATION
FTSE 100
5982.20
156.49
FTSE 250
14967.86
1120.19
FTSE ALL SHARE
3237.54
111.04
DOW JONES
17140.24
260.51
NASDAQ
4594.44
113.54
S&P 500
2000.54
36.87
BATS UK 100
10132.58
313.20
BATS UK 250
13557.60
1109.88
CONSTRUCTION & MATERIALS
GENERAL RETAILERS
INDUSTRIAL METALS & MINING
Rise | Shine
CITY A.M. MORNING UPDATE
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CITYAM.COM
26 MARKETS TUESDAY 28 JUNE 2016

CITYAM.COM
TUESDAY 28 JUNE 2016
LIFE&STYLE
27
MOTORING
BY MOTORINGRESEARCH.COM FOR CITY A.M.
: @city_am
: @cityamlife
Has Godzilla met its match?
Tim Pitt takes on
one of the world’s
toughest race
tracks in the 2017
Nissan GT-R
Nearly 50 drivers and motorcyclists
have died at Spa-
Francorchamps since the
first race there in 1922. Nestled
in the lush green hills
of the Belgian Ardennes, this tortuously
twisty circuit is second only to
the Nurburgring for morbid notoriety.
So it’s with some trepidation that –
having signed a lengthy disclaimer –
I don my crash helmet and edge into
the pitlane. I’m driving the new Nissan
GT-R, the 2017 version of the car
the Japanese call ‘Godzilla’. Boasting
a supercar-slaying 570hp and a 0-
62mph time of less than three seconds,
it may not be the ideal choice
for a first-timer at Spa. Gulp.
Still, as Colin McRae used to say: “If
in doubt, flat-out.” So I blast onto the
track at the La Source hairpin, then
dive downwards and straight into
Spa’s most famous corner: Eau
Rouge. This tight S-bend turns into a
small pond when it rains, but thankfully
today the track is dry. I feel the
tyres squirm as I bump over the rumble
strips, then the front end of the
car goes light as I crest the hill and
surge forward into the Kemmel
Straight.
My eyes are locked on the horizon
as I click the paddle-shifter into sixth
gear and the twin-turbo V6 GT-R accelerates
to 150mph. Hard on the
brakes, the powerful Brembos scrub
off speed as I approach the Les
Combes bends, but I overcook it and
the car understeers (runs wide). The
Nissan is no Lotus Elise, and you can
certainly feel its considerable 1,752kg
heft here.
As Spa’s rollercoaster ribbon of asphalt
plunges downhill again, I marvel
at how varied – and exciting – this
famous circuit is. No wonder it’s an
F1 fan-favourite. In the more open
corners at Pouhon and Blanchimont,
the GT-R’s balance starts to shift towards
tail-twitching oversteer, particularly
as I gain confidence and my
speed increases. But I don’t want to
get cocky – perhaps it’s time for a
break.
I’m still flushed with adrenalin as
the car growls back into the pits, its
four huge exhausts ticking as they
cool. Spa is just as challenging and
thrilling as I dared hope. It inspires
awe and demands respect – just like
the GT-R, in fact. But there’s no time
for reflection; I have a flight from
NISSAN GT R (MY17)
PRICE: £79,995
0-62MPH:
2.7 SECS (EST.)
TOP SPEED:
196MPH
CO2 G/KM:
275G/KM
MPG COMBINED:
23.9MPG
Dusseldorf in a few hours. Time to hit
the road.
My journey begins on rural roads
that once formed part of the Spa circuit.
One can only imagine how terrifying
it would have been to race here,
with thick clusters of trees lining
every bend. On pockmarked tarmac,
the revised GT-R rides surprisingly
well. An upright driving position and
comfortable seats (optional Recaros
on our test car) mean it’s more relaxing
to drive than similarly-powerful
supercars, too.
Crossing into Germany, I’m greeted
with the near-mythical sight of a derestricted
Autobahn. But traffic is
quite heavy – and besides, I’ve already
had my speed-fix today – so I opt for
a steady 100mph cruise. The big Nissan
barely breaks sweat. It’s a crushingly
competent grand tourer, with
acceleration, braking and cornering
abilities so far beyond what you can
safely – or legally – achieve on the
road that you never want for more.
The GT-R isn’t the bargain it once
was, though. When first launched
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
THE VERDICT
hhhii
hhhhh
hhhhi
hhhhi
way back in 2007, it was hardly more
expensive than a BMW M3. But prices
have crept up, with the cheapest version
now starting at £79,995. Even
with the power boost, plusher interior
and touchscreen media system
introduced for 2017, that puts Nissan
in fairly exalted company. A Jaguar F-
Type R will turn more heads and keep
the badge snobs at bay.
That said, there is nothing quite like
the GT-R. Nissan’s fast and furious
flagship has a depth of ability that
never fails to impress, both on the
road and racetrack. Even after a
decade on sale, Godzilla still has
teeth.
Tim Pitt works for motoringresearch.com
NOT CONVINCED? CHECK OUT THESE ALTERNATIVES...
BMW M6 JAGUAR F TYPE V8 R COUPE PORSCHE 911 TURBO
PRICE: £93,265
0-62MPH:
4.2 SECS
TOP SPEED: 155MPH
CO2 G/KM: 231G/KM
MPG COMBINED: 28.5MPG
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhhi
PRACTICALITY hhhhi
VALUE
hhhii
PRICE: £91,680
0-62MPH:
3.9 SECS
TOP SPEED: 186MPH
CO2 G/KM: 269G/KM
MPG COMBINED: 25.0MPG
THE VERDICT:
DESIGN hhhhh
PERFORMANCE hhhhi
PRACTICALITY hhiii
VALUE
hhhii
PRICE: £127,630
0-62MPH:
3.0 SECS
TOP SPEED: 198MPH
CO2 G/KM: 212G/KM
MPG COMBINED: 31.0MPG
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhhh
PRACTICALITY hhhii
VALUE
hhiii

28 FEATURE TUESDAY 28 JUNE 2016
CITYAM.COM
OFFICE POLITICS
Bouncebackability:
How to
build resilience
amid change
It’s not about pretending everything’s fine
when it’s not, argues Dr Mark Winwood
WITH millions of working days
lost every year due to illness
and injury, it pays as a
manager to do what you can to ensure
that you and your people are mentally
and physically well. It’s the right foundation
for making sure that you and
your team are well-placed to deal with
the set-backs that are part and parcel of
working life.
But resilience isn’t about being seen to
act tough or pretending everything’s
fine when it’s not. It’s about having the
resolve and inner strength to size up a
difficult situation, decide what’s needed
and take decisive action to deal with it.
You can increase your own resilience
by introducing some subtle changes to
the way you think, feel and behave.
And encouraging and supporting your
team to do likewise can go a long way
to building a stronger business.
BUILD AND ENGAGE WITH YOUR
NETWORK
Asking for help is not a sign of weakness.
So don’t be afraid to accept help and
support from those who know and care
about you. Think about connecting with
like-minded others through trade and
professional associations and social
media groups. And try to ensure that
the people you manage have access to
support they can draw on.
EMBRACE CHANGE
People who embrace change don’t waste
energy trying to maintain the status quo
when change is inevitable. Change is a
constant companion, so embrace it and
try to be positive about looking beyond
today to what could be a better future.
People who
embrace change
don’t waste
energy trying to
maintain the
status quo
SET ACHIEVABLE GOALS
Break tasks down into smaller, manageable
chunks and then take action
to tackle them. Completion can bring
its own reward in the sense of satisfaction
that comes from being in control
and having accomplished the task.
Lead by example and encourage those
whom you manage to do likewise in
the way that they work.
GROW
Dealing with challenges and adversity
can be a spur to acquiring and using
new skills. Make the most of them. In
addition, knowing that you’ve performed
well under pressure can boost
morale and build confidence – and
leave you better placed to deal with
future challenges.
FINDING THE RIGHT BLEND
Achieving an acceptable blend or balance
between the competing demands
POSITIVE
THINKING
MindPT
Free
In turbulent
times, it’s easy to
lose a sense of
perspective.
MindPT,
designed for the
busy and ondemand,
aims to
channel the
latest research in
neuroscience
and positive
psychology to
leave you better
able to deal with
the challenges of
the day. For the
more cynical,
some of the
language it uses
will not convince
(“prime for
happiness, peak
performance,
and success!”),
but it’s received
good reviews on
the App Store.
of home and work – and supporting
your team to do the same – isn’t easy.
Work-life blend means different
things to different people at different
times and in different situations.
And, because everyone’s different, an
important first step to building a better
blend of work and home commitments
is taking stock of and
identifying your personal needs and
priorities. You can’t do it all so try to
concentrate on ensuring you prioritise
the things that matter most in your
home and working life.
NOT SO COMMON SENSE
Here are some dos and don’ts you can
use to help to build a better work-life
blend: focus on critical tasks; make a
plan and stick to it; don’t over-commit
– learn to say “no”; don’t be a perfectionist;
when you identify problems,
remember it’s okay to ask for help; delegate
where possible; don’t fear failure
– it’s an opportunity to learn, grow
and inspire others; don’t take work
home unless you really need to; live
active; take and enjoy your time off –
you’ve earned it.
IT’S YOUR PARTY
Bringing a better focus to your priorities
and the way that you live your
life can go a long way to enabling
you – and those whom you manage –
to acquire an inner strength and
conviction that will both enable
you to flourish and, in the face of
adversity, rise to the occasion to
overcome it.
£ Dr Mark Winwood is director of
psychological services for AXA PPP
Healthcare.

CITYAM.COM TUESDAY 28 JUNE 2016 SPORT 29
TENNIS
Wildcard Willis
sets up dream
Federer tussle
ROSS MCLEAN
AT WIMBLEDON
@rossmcleanRMAC
WIDE-EYED British qualifier Marcus
Willis was left pinching himself
after the world No772 stunned
Lithuania’s Ricardas Berankis
on his Wimbledon
debut to set up a fairytale
second-round clash with
seven-time champion
Roger Federer.
Willis took time out
from his coaching job at
Warwick Boat Club to
enter pre-qualifying and
after navigating six rounds his
remarkable story continued with
a 6-3, 6-3, 6-4 victory over world No54
Berankis yesterday.
Victory guarantees Willis £50,000 in
prize money, having previously won
just £220 in 2016, while the 25-yearold
will now go head-to-head with Federer,
who beat Argentina’s Guido Pella
in straight sets, in match likely to be
played on Centre Court.
“It’s an amazing dream come true,”
said Willis. “I get to play on a stadium
court. This is what I dreamed of when
I was younger. I’m going to go
out there and try to win the
tennis match. I probably
won’t, but I’m going to
give everything.”
Willis is ranked No772 in
the world rankings
On a day when eight
Britons were in action,
only Dan Evans joined
Willis in the second round
after the 26-year-old beat Germany’s
Jan-Lennard Struff 6-3, 6-7 (6-
8), 7-6 (9-7), 7-5. World No1 Novak
Djokovic, meanwhile, began his quest
for a third consecutive Wimbledon
crown with a straight sets, 6-0, 7-6 (7-
3), 6-4, victory over British wildcard
James Ward on Centre Court.
TENNIS
EARLY EXIT Briton Laura Robson falls to
first-round defeat as form slump goes on
FORMER British No1 Laura Robson crashed out of Wimbledon after suffering a
straight-sets, 6-2, 6-2, defeat to reigning Australian Open champion Angelique Kerber
yesterday. Robson, who has not gone beyond the first round of a grand slam since
the 2013 US Open, was not the only Briton to flounder on the opening day of the
championships as Kyle Edmund, Alex Ward, Brydan Klein and Naomi Broady all lost.
RESULTS
FOOTBALL
EUROPEAN CHAMPIONSHIPS ROUND OF 16
Italy ........................(1) 2 Spain ..........................(0) 0
Chiellini 33
Pelle 90
England ..................(1) 1 Iceland.......................(2) 2
Rooney 4 (pen) R Sigurdsson 6
Sigthorsson 18
CRICKET
THIRD WOMEN’S ONE DAY INTERNATIONAL—England
v Pakistan (Taunton): England 366-4 (50 overs; T T
Beaumont 168no, G A Elwiss 77). Pakistan 164 (44.5
overs; K H Brunt 5-30). England beat Pakistan by 202 runs.
SPECSAVERS COUNTY CHAMPIONSHIP - DIVISION
ONE—Hampshire v Somerset (The Ageas Bowl):
Hampshire 219 (J H K Adams 61; J Overton 5-42) and 18-1
Somerset 474-8dec. (J C Hildreth 152, J G Myburgh 110).
Lancashire v Middlesex (Lord’s): Lancashire 513 (A N
Petersen 191, Haseeb Hameed 89, O P Rayner 4-120, T S
Roland-Jones 4-122). Middlesex 146-1 (N R T Gubbins 71no).
Nottinghamshire v Warwickshire (Edgbaston):
Nottinghamshire 152 (J D Libby 59). Warwickshire
283-8 (R Clarke 74, T R Ambrose 72, J T Ball 4-76).
DIVISION TWO—Leicestershire v Gloucestershire
(Grace Road): Leicestershire 252-7 (N J Dexter 107no).
Kent v Derbyshire (Canterbury): Kent 379 (S A Northeast
191). Derbyshire 291-3 (C F Hughes 83, W L Madsen 73no).
TENNIS
WIMBLEDON (London)—Men’s Singles 1st rnd: (3) R
Federer (Swi) bt G Pella (Arg) 7-6 (7-5) 7-6 (7-3) 6-3, J
Chardy (Fra) bt (17) G Monfils (Fra) 6-7 (4-7) 6-0 4-6 6-1
6-2, (1) N Djokovic (Ser) bt J Ward (Gbr) 6-0 7-6 (7-3) 6-4,
A Mannarino (Fra) bt K Edmund (Gbr) 6-2 7-5 6-4, (28) S
Querrey (USA) bt L Rosol (Cze) 6-7 (6-8) 6-7 (5-7) 6-4 6-2
12-10, P Herbert (Fra) bt (21) P Kohlschreiber (Ger) 7-5 6-3
3-6 6-3, (13) D Ferrer (Spa) bt D Sela (Isr) 6-2 6-1 6-1, (11)
D Goffin (Bel) bt A Ward (Gbr) 6-2 6-3 6-2, D Istomin (Uzb)
bt (20) K Anderson (Rsa) 4-6 6-7 (13-15) 6-4 7-6 (7-2) 6-3,
(6) M Raonic (Can) bt P Carreno-Busta (Spa) 7-6 (7-4) 6-2
6-4, M Willis (Gbr) bt R Berankis (Lit) 6-3 6-3 6-4, D Evans
(Gbr) bt J Struff (Ger) 6-3 6-7 (6-8) 7-6 (9-7) 7-5, (16) G
Simon (Fra) bt J Tipsarevic (Ser) 4-6 6-4 7-5 6-3, (9) M
Cilic (Cro) bt B Baker (USA) 6-3 7-5 6-3, (23) I Karlovic
(Cro) bt B Coric (Cro) 7-6 (10-8) 7-6 (9-7) 6-4, (5) K
Nishikori (Jpn) bt S Groth (Aus) 6-4 6-3 7-5.
Women’s Singles 1st rnd: (15) K Pliskova (Cze) bt Y
Wickmayer (Bel) 6-2 0-6 8-6, (5) S Halep (Rom) bt A
Karolina Schmiedlova (Svk) 6-4 6-1, (9) M Keys (USA) bt L
Siegemund (Ger) 6-3 6-1, E Alexandrova (Rus) bt (23) A
Ivanovic (Ser) 6-2 7-5, C Witthoeft (Ger) bt (25) I Begu
(Rom) 6-1 6-4, (4) A Kerber (Ger) bt L Robson (Gbr) 6-2
6-2, (8) V Williams (USA) bt D Vekic (Cro) 7-6 (7-3) 6-4,
(29) D Kasatkina (Rus) bt V Duval (USA) 6-0 7-5, (12) C
Suarez Navarro (Spa) bt S Zhang (Chn) 6-3 4-6 6-4, (14) S
Stosur (Aus) bt M Linette (Pol) 7-5 6-3, (2) G Muguruza
(Spa) bt C Giorgi (Ita) 6-2 5-7 6-4.
CITY CHAMPIONSHIPS
Chukkas to champagne: get ready for City Polo Championships
INTERVIEW
THIJS POVEL, FOUNDER OF THE
ALUMNI POLO CLUB, INVESTMENT
MANAGER AT HOLTZBRINCK
DIGITAL
In 2012, Thijs Povel founded the Alumni
Polo Club, to bridge the gap between
university and patron polo by organizing
weekly group training sessions and trips.
The club now boasts well over 300
international young professionals who
mainly live and work in London, forming a
natural partnership with City
Championships. This summer launches
The City Polo Champions at Alumni Polo’s
‘The Inner Circle Summer Polo Cup’, on 13
August at HPC, The London Polo Club.
“With four teams playing, we can do the
play-offs and final all on the same day,” he
says. “There will be roughly 500 guests
watching the polo. Last year the musical
talents of Chris Sharp and DJ Per Pedersen
ensured a fantastic transition from polo
games to a party which was helped by the
sponsorship of Rothschild Champagne!”
Tickets at £35 each can be purchased
through The Inner Circle – theinnercircle.co
– an app that connects young
professionals in London and across the
world. Teams and players can get in touch
with Povel through the City
Championships website.
For those who know how to ride a horse
well but haven’t played much polo, there is
still time to get involved and, if they train
well, participate in next year’s tournament
– something the APC can help with. “The
great thing about polo is that it is a team
sport and you can balance a team. If you
have a pro with three amateurs, you can
still participate in this 2-goal tournament,”
says Povel. And for those who need a little
more help: “We know a lot of pros who
would love to play in this tournament.”
When not running APC and playing polo,
Povel oversees fast-growing start-ups at
Thijs Povel, left, hopes to defends the title
the venture capital firm Holtzbrinck Digital.
He hopes to see his team defend their title
this year but most of all he wants to find a
way to improve the sport and let those
who love it find a way to play it.
£ citychampionships.com
IN PARTNERSHIP WITH CITY A.M.
FOUR TEAMS PLAYING, WITH PLAY-OFFS AND FINAL ALL ON
THE SAME DAY, AND A PARTY IN THE EVENING.
THE CITY
POLO CHAMPIONSHIPS
SATURDAY 13th AUGUST 2016
THE LONDON POLO CLUB
TICKETS FOR SPECTATORS ARE £35 EACH
AVAILABLE FROM THEINNERCIRCLE.CO
Ham Polo Club, Petersham Road, Richmond,
Surrey, TW10 7AH
The Nearest Tube and Train Station to the Polo Club
is Richmond.

30 SPORT TUESDAY 28 JUNE 2016
SPORT
FOOTBALL
ENGLAND RATINGS
JOE HART: 3
Yet another costly error for second goal.
Not redeemed by stopping Sigurdsson
overhead kick
KYLE WALKER: 5
Lost Sigurdsson for Iceland’s equaliser.
Always willing but link-up with Sturridge
rarely worked
GARY CAHILL: 4
Failed to get tackle in to block
Sigthorsson goal. Part of England
defence that always looked uneasy
CHRIS SMALLING: 4
Failed to get tackle in to block
Sigthorsson goal. Wasted headed
chance to equalise from set piece
DANNY ROSE: 5
Got forward well but suffered some
erratic touches and faded badly in
second half
ERIC DIER: 5
Anonymous and hooked at half time.
Least influential display of an otherwise
good Euros
DELE ALLI: 4
An early vicious strike was reminder of
what he did not deliver at this
tournament
WAYNE ROONEY: 5
Cool penalty but beaten to flick-on for
equaliser. Wanted ball but radar was off
RAHEEM STERLING: 4
Got in good positions from the off and
won penalty well but nervy and made
poor decisions
DANIEL STURRIDGE: 3
Patchy: some good touches but
dispossessed too often and lucky to stay
on
HARRY KANE: 3
One shot that flew over and a decent
volley were sum total of his efforts while
woeful set-pieces returned
SUBSTITUTES
WILSHERE (DIER 45):
Game but attempts to free Alli and Vardy
floundered
VARDY (STERLING 60)
Burst onto Kane’s pass but poor touch
cost shooting chance
RASHFORD (ROONEY 86)
Frightened Iceland down left, could
have been brought one earlier
FRANK DALLERES
ROB OF THE GREEN Briton Laura
Robson bows out of Wimbledon
following first-round defeat PAGE 29
Iceland leave Hodgson
out in the cold
Boss quits as woeful England limp out
of Euro 2016 after defeat to minnows
EURO 2016
ENGLAND 1
ICELAND 2
ROSS MCLEAN
@rossmcleanRMAC
APOLOGETIC England manager Roy Hodgson
last night fell on his sword after the
Three Lions suffered a humiliating exit
from Euro 2016 following a wretched showing
against minnows Iceland in Nice.
Hodgson wasted little time in ending his
four-year reign and confirming his departure,
as well as that of assistants Ray Lewington
and Gary Neville, although his side’s
embarrassing performance left him with
little option. England Under-21 boss Gareth
Southgate is the early favourite to succeed
him.
The Three Lions were simply pitiful
against a side ranked No34 in the world
and had little reply once Iceland had overturned
skipper Wayne Rooney’s early
penalty courtesy of strikes from Ragnar
Sigurdsson and Kolbeinn Sigthorsson – the
latter a consequence of another blunder
from goalkeeper Joe Hart.
There was no mystery to Iceland’s tactics
yet England, who boast the world’s wealthiest
domestic league, were out-fought and
out-witted by a nation which has a population
of just 300,000 and no professional
football clubs.
“I’m sorry it’s had to end this way with
another exit from a tournament, but these
things happen,” said Hodgson. “I hope that
you will still be able to see an England team
in the final of a major tournament very
soon. We’ve been unable to deliver it.
“Now is the time for someone else to
oversee the progress of this young, hungry
and extremely talented group of players.
They have been fantastic and done everything
asked of them.
“It’s been a fantastic journey in these four
years and one I will look back on and remember
with pride.”
There was little hint of the avalanche of
despair that was to engulf England when
Rooney confidently lashed home a fourthminute
penalty after recalled winger Raheem
Sterling was felled by Iceland
goalkeeper Hannes Thor Halldorsson.
But England’s buoyancy lasted only a
matter of moments as Aron Gunnarsson’s
hurled long throw was flicked on by former
Rotherham centre-half Kari Arnason and
volleyed past Hart by Sigurdsson, who was
allowed to advance by a dallying Kyle
Walker.
The extraordinary start to the game continued
as Iceland took a shock 18th minute
lead as a neat exchange preceded frontman
Sigthorsson’s shot squirming through
the limp grasp of Hart and trickling over
the goal-line.
A chorus of boos greeted the Three Lions
at the half-time whistle but it was Iceland
who posed the greater threatened after the
restart as goalscorer Sigurdsson’s overhead
kick was instinctively repelled by
Hart.
Gunnarsson drew another save from Hart
as England wilted and limped out of the
tournament with barely a whimper. A tame
header from Harry Kane, easily plucked by
Halldorsson, was all they could muster.
SPREAD BET & EARN
AN IPAD OR WATCH*
FOOTBALL
Conte switches focus to world champions
Germany after outclassing holders Spain
Join and hit stake
levels in certain
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markets to qualify
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EURO 2016
ITALY 2
SPAIN 0
ROSS MCLEAN
@rossmcleanRMAC
ITALY boss Antonio Conte basked in the
glory of ending holders Spain’s eight-year
grip on the European Championship but
insisted the Azzurri will have to be “superextraordinary”
to beat world champions
Germany in Saturday’s quarter-final.
Conte’s charges proved tactically
superior to their rivals and ended a run of
five winless matches against Spain as
veteran defender Giorgio Chiellini’s goal
shortly after the half hour mark was added
to by striker Graziano Pelle in injury time.
Victory was Italy’s first competitive win
over La Roja since the 1994 World Cup and
avenged their 4-0 thrashing in the final of
Euro 2012, setting up a tantalising clash
with Germany in Bordeaux for a place in
the tournament’s last four.
“I knew it, I knew my guys have
something great inside them,
something extraordinary. Today we
showed everyone that Italy are not
just ‘Catenaccio’ [a tactical system
based heavily on defence],” said
Conte. “It’s not the best era for
Italian football so we can’t rely
on great players. I’ve had to
battle to make people realise
this. Spanish football is in
rude health so we should be
extra proud of beating them.
“We now face the best side
at the European
Championship. For me, Germany are on a
higher level to everybody. We’re going
to need something superextraordinary
for that game, not
just extraordinary.”
Had it not been for Manchester
United goalkeeper David de Gea,
Spain would have lost by a far
greater margin, although the 25-
year-old was beaten on 33
minutes as Chiellini bundled
home after Eder’s free-kick had
been parried. Pelle sealed Italy’s
win in stoppage time as he
superbly volleyed beyond De Gea
after a cross from full-back Matteo
Darmian deflected invitingly into
his path.
Southampton’s Graziano Pelle scored
his second goal of the tournament

CITYAM.COM TUESDAY 28 JUNE 2016 SPORT 31
WILL POWER British wildcard and world
No772 Marcus Willis stuns rival to set up
clash with Roger Federer PAGE 29
England’s players
were left bereft by
defeat, while
Hodgson (below)
contemplated his
future
Fitting climax
to failed reign
FOOTBALL
COMMENT
Frank
Dalleres
FOOTBALL
Puel in and £34m Mane out at Southampton
FRANK DALLERES
@frankdalleres
SOUTHAMPTON hope to bring a
measure of stability to another
tumultuous close season by finalising
the appointment of French coach
Claude Puel and the £34m sale of
Sadio Mane to Liverpool.
Puel is poised to succeed Ronald
Koeman at St Mary’s this week after
spending four years at Nice, who he
guided to fourth place in Ligue 1 last
season.
The 54-year-old won the French
top-flight title in his first full season
of management at Monaco, where he
spent 24 years as a player – under
Arsenal boss Arsene Wenger – and a
coach. He went on to enjoy six years
at Lille before taking charge of Lyon,
leading them to the Champions
League semi-finals in 2010.
Mane, meanwhile, was due on
Merseyside yesterday to become
Liverpool’s second-most expensive
player, after £35m Andy Carroll.
The Senegal forward is the
summer’s third major departure
from Southampton, following
midfielder Victor Wanyama’s £11m
move to Tottenham and Koeman’s
switch to Everton.
ELIMINATION from Euro 2016 by
Iceland seems a pathetic yet
suitable end to an underwhelming
four years of Roy
Hodgson characterised by
meaningless wins and repeated failures
when it really mattered.
History may not be kind to
Hodgson, whose appointment was
greeted with a combination of
surprise and unkind mockery which
gave way to a consensus that he was a
decent but limited coach.
So difficult is it to recall highlights
from his spell in charge that it is
tempting to ask: was any of it
enjoyable? Certainly his final match
and tournament had little to savour.
Qualifying campaigns are joyless
exercises that for the bigger teams
contain only pitfalls. The 2014 World
Cup was, by any objective measure, a
gross failure, with fleeting moments
of promise, in the cold light of day, no
more than that.
Hodgson’s England have led for a
total of 85 minutes of his 11 games at
major tournaments. The unavoidable
conclusion is that they have never
remotely convinced. Even when they
have controlled possession, as they
now seem able to do, they have lacked
cutting edge.
Indeed just as he and they have
adopted a more continental style,
that approach has lost traction to the
kind of defence-first tactics on which
he built a career and that propelled
Leicester - and Iceland - to glory.
Hodgson – seemingly a good man
but, with his verbose deliveries, noted
fondness for literature and awkward
touchline manner, a man seemingly
out of time – may one day reflect on
that irony.
ANNIVERSARY GAMES
USAIN BOLT
FRIDAY NIGHT LIGHTNING
IN BRIEF
RACEHORSE OWNERS’ BODY
LAUNCHES SYNDICATE PUSH
£ HORSE RACING: British horse racing
chiefs will on Tuesday launch a drive to
reinvigorate the industry by
encouraging more people to sign up for
syndicates and group ownership. Royal
Ascot winner Quiet Reflection and
Cheltenham hero Sire de Grugy are
both group-owned, and the Racehorse
Owners Association (ROA) hopes to halt
a decline in active owners by
simplifying the administrative process.
President Nicholas Cooper will tell the
ROA’s AGM today: “This campaign will
involve the development of an online
central ownership hub that illustrates
the adventure that surrounds owning a
racehorse and how to get involved.”
MESSI QUITS ARGENTINA
DUTY AFTER COPA AGONY
£ FOOTBALL: Five-time Ballon d’Or
winner Lionel Messi has vowed to retire
from international football after
Argentina lost the Copa America final to
Chile. Messi missed a penalty in the
shootout as he lost a fourth major final
with his country. “For me, the national
team is over,” the Barcelona star said.
“It’s very hard, but the decision is taken.
Now I will not try more and there will be
no going back.”
TOUR CHIEFS CRACK DOWN
ON MECHANICAL DOPING
£ CYCLING: Tour de France organisers
plan to use thermal imaging cameras to
crack down on mechanical doping at
this year’s race. The practice, in which
riders use a concealed motor in their
bike to gain an advantage, came to light
earlier this year when Belgian rider
Femke van den Driessche was banned
for six years for the offence. Britain’s
Chris Froome begins his Tour defence
on Saturday.
COLEMAN HAS NO INJURY
CONCERNS OVER WILLIAMS
£ FOOTBALL: Wales boss Chris
Coleman has dismissed suggestions
that skipper Ashely Williams dislocated
his shoulder during his side’s Euro 2016
last-16 win over Northern Ireland and
insists he will be fit for Friday’s quarterfinal
with Belgium. He said: “Ashley will
be fine. It sounds better actually, that
he would play with a dislocated
shoulder – and we would let him.”
THE STADIUM,
QUEEN ELIZABETH OLYMPIC PARK
FRIDAY 22 JULY 2016
TICKETS ON SALE NOW!
VISIT BRITISHATHLETICS.ORG.UK
THLETICS.ORG.UK
© IAAF 2009

“
The
sky’s the
limit.
”
THE METRO
The Hudson Collection – Now Released
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