RATE CUT TO CHOKE OFF BANK PROFITS

BUSINESS WITH PERSONALITY
THERIO50
PULL-OUT SECTION INSIDE AND ONLINE
THE MOST MARKETABLE ATHLETES AT THE
2016 OLYMPIC AND PARALYMPIC GAMES
SWEET AS!
WHY YOUR
BOSS SHOULD
GIVE YOU MORE
TIME OFF P19
THURSDAY 4 AUGUST 2016 ISSUE 2,683 CITYAM.COM
FREE
RATE CUT TO CHOKE
OFF BANK PROFITS
JAKE CORDELL
@JakeCordell
PROFITS will be decimated at the UK’s
top banks if, as widely expected, the
Bank of England cuts interest rates to a
historic low of 0.25 per cent today.
New analysis by the banking practice of
consultants Simon-Kucher and Partners
predicts that lower rates would wipe
£1.4bn off the operating profits at the
UK’s top 21 retail bank lenders and
building societies, equivalent to around
10 per cent of last year’s earnings.
“We would expect a squeeze on banks’
profits from a much larger drop in rates
on lending amid limited scope for
reducing rates on savings,” the report
said.
The “huge hit” could well force the
banks to lower dividends, it added.
City analysts also warn that lower rates
would heap pressure on a banking sector
already experiencing a downturn in
profitability and licking its wounds from
years of fines, litigation fees and tough
capital requirements.
“For almost all banks, a base rate cut
together with an expectation of lower for
much longer rates is singularly bad
news,” said Ian Gordon, banking analyst
at Investec.
He added that banks might be able to
contain the fallout from rates decreasing
to 0.25 per cent, but any cut further
would place significant pressure on the
UK’s biggest lenders.
“With the prospect of even lower
interest rates, it will only increase the
pressure on banks to embrace new
operating models,” said PwC head of UK
banking Isabelle Jenkins.
HSBC said yesterday it was scrapping
its short-term plan to deliver a 10 per
cent return on equity for shareholders as
a result of its “projections for an
extended period of low interest rates”.
Barclays boss Jes Staley said last week
a cut to 0.25 per cent wouldn’t “have
much of an impact us [but] going down
to zero would”. The Royal Bank of
Scotland (RBS) has told 1.3m of its
business customers that it may have to
charge them to hold deposits if rates go
into negative territory.
Governor Mark Carney has previously
signalled he is aware of the pressure that
low rates places on bank profitability and
signalled he would be watching it closely
given his dual remit of securing financial
stability and achieving the medium-term
inflation target. Market speculation after
the referendum result suggested any
lower interest rates could be
accompanied by a new funding for
lending scheme to offer banks cheap
loans to ensure lending does not dry up.
Non-traditional lenders welcomed the
prospect of a rate cut yesterday.
“I’m excited by a drop in rates,” said
Graham Wellesley founder of peer-topeer
lender Wellesley and Co. “You have
this dichotomy between commercial
lending institutions and the alternative
finance market. A drop in interest rates
makes our products more attractive.”
TECHNOLOGY
Twitter flies
high on talk
of a buyout
BILLY BAMBROUGH
@BillyBambrough
SHARES in micro-blogging site
Twitter jumped yesterday on
rumours former Microsoft
boss Steve Ballmer and Saudi
investor Prince Al-Waleed Bin-
Talal could make a buyout
offer for the company.
Shares closed up more than
seven per cent higher in New
York last night, at $17.61. The
stock had dropped as low as
$15.77 last month.
Rumours of a takeover have
followed Twitter for months,
with the likes of News Corp
and Google often cited as
potential buyers.
Co-founder Jack Dorsey
returned to the helm of the
company last year but has
been unable to revive the
site’s fortunes, despite
expanding Twitter’s user
features and its growing use
by officials, organisations, and
celebrities to make
announcements.
TWITTER
18.0
17.5
17.0
16.5
16.0
$
17.61
3 August
15.5
28 July 29 July 1 Aug 2 Aug
3 Aug
FTSE 100 ▼6,634.40 -11.00 FTSE 250 ▼16,997.13 -65.88 DOW▲18,355.00 +41.23 NASDAQ ▲ 5,159.74 +22.01 £/$ ▼1.331 -0.003 £/€ ▲1.194 +0.005 €/$▼ 1.114 -0.007

02 NEWS THURSDAY 4 AUGUST 2016
CITYAM.COM
CALL OF DUTY Metropolitan Police officers take to the Thames
as part of exercise as 600 more armed police set to man London
THE CITY VIEW
Time to halt the living
wage political auction
LAST summer, then-chancellor George Osborne unveiled his
first post-coalition, true-blue Budget – and with it, a big jump
in the minimum wage. This somewhat confusing re-brand
saw the minimum wage become the “National Living Wage”
(NLW), which Osborne decided would jump from £6.50 an hour to
£7.20, and keep rising to £9 in time for the next general election.
The policy was of course popular in some areas but has hardly been
an unqualified success, even during its foetal period. A recent
survey suggested that prices have been hiked in response to the
move, while many businesses have been forced to cut overtime,
bonuses and other staff perks. Some recruitment firms have
noticed a dip in advertised vacancies in the retail sector. Meanwhile
the Social Market Foundation has said that a “lack of clarity on the
NLW rate to 2020 will only make it harder for employers to plan
ahead and make the vital investment needed [for] a high
productivity, high wage
economy”.
None of this comes as a huge
surprise, given that pricefixing
always comes with the
threat of unintended
consequences. In order to
mitigate side-effects (such as reduced job-creation) the level of the
UK’s minimum wage was supposed to be set by independent
experts at the Low Pay Commission (LPC), who were tasked with
studying the evidence as time progressed. When Osborne
undermined the commission’s role, this newspaper warned that
the minimum wage would become a political football – and we are
now seeing the consequences.
Yesterday, Labour leadership candidate Owen Smith said he wants a
minimum wage of £8.25 an hour for all workers (not just those
aged over 25) – “a wage that quickly rises well above £10 an hour”.
Smith also wants to scrap the LPC and replace it with a “Living
Wage Delivery Unit”, an enforcement body that will somehow try
to stop employers from reducing staff perks in response to a soaring
minimum wage.
However unlikely it may be that his wishes come to pass, it is
worrying to see the minimum wage used as a political tool in an
increasingly-barmy leadership race. If the NLW becomes a
permanent item in Westminster’s auction house, the whole
economy – workers and consumers alike – will end up losing out.
Follow us on Twitter @cityam
Owen Smith wants
to scrap the Low
Pay Commission
THE NUMBER of armed officers protecting the capital will go up by 600 to 2,800, London mayor Sadiq Khan and Metropolitan
Police commissioner Sir Bernard Hogan-Howe announced yesterday. The duo said a further 900 armed officers will be put on
patrolling duties in the rest of England and Wales. The move comes in the wake of a series of terrorist attacks in Europe.
UK on brink of recession
as service sector shrinks
JAKE CORDELL
@JakeCordell
THE UK could already be in the midst
of a recession, according to fresh economic
released yesterday.
The latest purchasing managers’
index (PMI) data revealed the dominant
services sector shrunk in the first
full month after the EU referendum
as the shock of the UK’s vote to leave
appears to have taken an immediate
toll on businesses.
Activity in the industry, which
makes up around four-fifths of the UK
economy, came in at 47.4 on the
closely-watched PMI where scores
below 50 signify contraction. The
score was bang in line with a previous
flash estimate and experts said it
pointed to a wider economic contraction
of around 0.4 per cent on a quarterly
basis.
It is only the second time the serv-
ices industry monthly reading has
fallen below 50 in more than five
years and the decline marks the
fastest rate of contraction since early
2009. It comes after manufacturing
and construction PMI scores earlier
this week also came in below 50 and
as the Bank of England’s Monetary
Policy Committee (MPC) meets to decide
whether to cut interest rates.
Businesses in the sector also brought
to an end the three-and-a-half year run
of month-on-month employment
growth, with businesses holding staff
numbers flat in the wake of the referendum
result.
Although companies said they still
expect business to increase over the
next 12 months, “the strength of sentiment
deteriorated to an unprecedented
degree,” Markit, which
compiled the survey, said.
All of the current PMI scores, the
most reliable, up-to-date and forwardlooking
indicators of the state of the
UK economy, are “consistent with
GDP contraction,” according to the
Economist Intelligence Unit’s Danielle
Haralambous.
Markit’s chief economist Chris
Williamson said: “The PMI data is collectively
signalling a 0.4 per cent quarterly
rate of decline of GDP.
“The unprecedented month-onmonth
drop in the all-sector index has
undoubtedly increased the chances of
the UK sliding into at least a mild recession,”
he added.
The disappointing score all but confirms
the Bank of England will slash
interest rates when it meets to take
the most important monetary policy
decision since the recession today.
Markets have fully priced rates hitting
a new all-time of 0.25 per cent
with many economists also predicting
an extension of the Bank’s quantitative
easing programme.
FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL
INTEL RECALLS SMART
WATCH OVER SAFETY FEARS
Intel has suffered a setback in its efforts
to become a leader in the emerging
market for wearable devices, after being
forced to recall a smartwatch for safety
reasons. The world’s biggest chipmaker
said it had taken the drastic step of
telling all customers to return the
watch, called the Basis Peak, after
finding it “can overheat, which could
result in burns or blisters on the skin
surface”. It had already warned users to
stop wearing the device in June after
first hearing complaints.
GOLDMAN SLAPPED WITH
$36M FINE IN US
The Federal Reserve has slapped a
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
$36m fine on Goldman Sachs and
ordered it to smarten up its internal
procedures, putting the seal on a case
revolving around the theft of secret
supervisory information.
TORIES UNDER MAY EXTEND
HUGE POLL LEAD
The Conservatives have secured their
biggest poll lead since winning power,
with Theresa May still enjoying a
honeymoon period as Prime Minister.
She and her party are 14 points ahead
of Labour, according to a YouGov poll
for the Times. It is the biggest Tory lead
since November 2009.
BREXIT AND TERROR HIT
PROFITS AT M&C HOTELS
Millennium & Copthorne Hotels said it
was reviewing its final dividend after a
slump in first-half profits on the back of
poor trading in New York, London and
Singapore.The group reported a 9.7 per
cent fall in pre-tax profits to £56m.
GOOGLE SET TO CONDUCT
DRONE DELIVERY TESTS
Google has won the go-ahead to begin
testing delivery drones in the US, as it
looks to match Amazon in a market that
has huge potential. America’s Federal
Aviation Administration gave Alphabet,
owner of Google, permission for its “X”
research division to test drones
weighing less than 25kg in designated
areas as part of the firm’s Project Wing.
BRITS TAKE MORE HOLS AS
JOB FEARS DECLINE
Fewer worries about the prospect of
losing their jobs means that the amount
of holiday British workers are taking has
returned to pre-recession levels,
according to ONS data.
WAL-MART IS IN TALKS TO
BUY STARTUP JET.COM
Wal-Mart is in talks to buy online
discount retailer Jet.com, in what would
mark a disappointing end for an
ambitious challenger to Amazon. A deal
would give Wal-Mart’s e-commerce
efforts a jolt as it seeks to grow beyond
its brick-and-mortar storefronts with
speedy home delivery from a network
of massive suburban warehouses.
GRAB, AN UBER RIVAL, IS SET
TO RAISE $1BN
Valued at $1.6bn in its previous funding
round, Uber rival Grab is planning to
raise about $1bn (£0.75bn) in fresh
capital from investors including Didi and
Japan’s Softbank.

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
03
IN BRIEF
NORTH SEA STRIKE SET TO GO
AHEAD TODAY
The Rail, Maritime and Transport (RMT)
union said last night that industrial
action over proposed cuts and changes
to working conditions for maintenance
workers on Shell’s North Sea oil and gas
platforms will go ahead today.
“Following a continuing failure by the
Wood Group to come up with any
solutions in talks...the next phase of
industrial action scheduled to start in the
morning goes ahead,” the union said.
The news comes after around 400 Wood
Group oil and gas maintenance workers
protested against pay cuts and tougher
working conditions last month. RMT
boss Mick Cash added that “despite
strenuous efforts by our negotiators” the
union has been “unable to make
sufficient progress”.
SQUARE REPORTS JUMP IN
QUARTERLY REVENUE
The mobile payment company founded
by Twitter boss Jack Dorsey has seen its
quarterly revenue soar 41.5 per cent after
transactions passing through Square
increased. The company’s net revenue
rose to $438.5m in the second quarter
ended 30 June, from $310m a year
earlier. The net loss narrowed to $27.3m
from $29.6m. Square went public in
November last year pricing its IPO at $9 a
share. Shares in Square have fallen more
than 20 per cent this year after it posted
a more-than-expected loss in the first
quarter. In May, the payment processing
firm reported adjusted quarterly loss of
14 cents a share on $379m in revenue.
Analysts had expected Square to post a
loss of nine cents a share on $344m in
revenue.
NIKE TO EXIT GOLF
EQUIPMENT BUSINESS
Nike, the world’s biggest sportswear
maker, said it would stop selling golf
equipment, including clubs, golf balls
and bags. The company, which built its
golf business on the success of golfer
Tiger Woods, said it would instead
accelerate innovation in its golf footwear
and apparel business and on partnering
with more golfers. Nike did not give a
timeline for the planned exit. The
company is the second major sporting
goods maker reviewing its golf business.
Adidas said in May it would sell the bulk
of its loss-making golf business, hurt by
waning interest in the sport, especially in
the United States. The number of people
playing golf in the US has fallen sharply
after peaking in 2000, when Tiger Woods
was in his prime.
Philip Green said “real progress” has been made to sort out BHS’ pension problems
Green handed
ballooning BHS
bill due to Brexit
HELEN CAHILL
@HelCahill
SIR PHILIP Green recently described
negotiations with The Pensions Regulator
(TPR) over plugging BHS’ pension
deficit as “cumbersome and slow”
after the Brexit vote. The agreement
will also be more expensive for the retail
czar.
After the vote, falling yields have led
to the aggregate deficit of pensions
schemes in the Pension Protection
Fund (PPF) rising by more than 18 per
cent since the BHS scheme entered
the PPF.
This means the estimated sum required
to pull the BHS pensions
scheme out of the PPF has ballooned
from £275m – the original liability estimated
by the PPF – to over £326m.
Deloitte and Linklaters are acting as
advisers to Green over how he should
help the BHS pension scheme – but
negotiations with TPR are expected to
be lengthy.
Last month, the billionaire hit back
at Frank Field MP, chair of the Work
and Pensions Committee, who has
called for the retail tycoon to simply
write a cheque. In a letter to Field sent
last weekend, Green said: “Your repeated
attempts to lead the public
into thinking that it is simply a matter
of me writing a cheque are utterly
disingenuous.
“The Pensions Regulator has its own
processes that we are obliged to follow...It
is no secret that I have found
these processes cumbersome and
slow, but they are the processes which
Parliament requires the Pensions Regulator
to follow and the pace is determined
by the Pensions Regulator, not
by us.”
He added that “real progress” has
been made towards a solution, but
that Field’s inflammatory language
“puts a solution at risk”.
Green has described the MPs’ Select
Committee inquiry into BHS as “little
more than a kangaroo court” due to
Field’s “press campaign barracking
and insulting me and my family”.
He has also threatened to sue Field
for calling him a thief, prompting
Field’s lawyers to apologise.
City A.M. understands Green is still
considering his position over the question
of legal action.
Almost four in five want plans
of a surplus by 2020 to be axed
MARK SANDS
@MkSands
A SURVEY of more than 1,000
Institute of Directors (IoD) members
has shown a dramatic swing towards
support for government spending.
Seventy eight per cent of IoD
members said they back the axing of
plans for a surplus by 2020.
It’s a huge reversal of a similar poll
in May last year, which saw 80 per
cent back plans to eliminate the
deficit by the end of this parliament.
The survey also shows support for
business tax cuts, with roughly twothirds
backing former chancellor
George Osborne’s suggestion of a 15
per cent rate of corporation tax, first
revealed after June’s Brexit vote.
IoD director general Simon Walker
called for a “bumper feel-good
Autumn Statement”.
“Increasing tax breaks for
investment and cutting corporation
tax would be a very good start, as
would delaying the poorly designed
Apprenticeship Levy,” he said.

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
05
HSBC profits slide 29pc
in first-half of the year
amid Brexit uncertainty
HAYLEY KIRTON
@HayleyLEK
HSBC yesterday revealed its pre-tax
profits have fallen 29 per cent during
its first half of 2016, while suggesting
it will be taking a cautious but calm
approach to the Brexit vote.
The bank reported profits before tax
for the first six months of the year of
$9.7bn (£7.3bn), down 28.7 per cent
from $13.6bn, calling it a “reasonable
performance in the face of considerable
uncertainty”.
HSBC also reported profit before tax
for the second quarter to June of
$3.6bn, down 45.1 per cent from
$6.6bn for the same quarter the year
before and faring worse than many
analysts expected.
The bank also announced a share
buy-back programme of up to $2.5bn
for the second half of 2016, spurred on
by the disposal of HSBC Brazil last
month. Meanwhile, revenue for the
first half of the year fell to $29.5bn,
down from $32.9bn the year before.
Stuart Gulliver, group chief executive,
said: “I am particularly pleased
with our progress in reducing costs
and... risk-weighted assets.”
HSBC
510
505
500
495
490
485
P
504.40
3 August
28 July 29 July 1 Aug 2 Aug
3 Aug
The bank reported pre-tax underlying profits of $994m (£745m)
Profits plunge 46pc at Standard
Chartered but share price jumps
JAKE CORDELL
@JakeCordell
STANDARD Chartered’s share price
was up almost four per cent yesterday
even as it reported a 46 per cent fall
in profits and said it was not ready to
reinstate an interim dividend.
The bank, which focuses on
emerging markets, reported pre-tax
underlying profits of $994m (£745m)
in the first six months of the year,
down from $1.8bn in the comparable
period of 2015, but up from a hefty
$990m loss in the second half of last
year. Underlying operating income
was down by 19.8 per cent to $6.8bn.
Bill Winters, group CEO, said: “We
have made good progress in the year
since I joined, strengthening our
bank, becoming more efficient and
investing in our future.”
SMEs seek to
retain access to
key markets
TRACEY BOLES
THE UK’S small businesses are calling
on Prime Minister Theresa May to
keep access to European markets as
part of the Brexit process ahead of a
key meeting with her today. May is
meeting SMEs and their trade
associations as she plots a path to
Brexit, and formulates her new
economic and industrial strategy.
Mike Cherry, national chairman,
Federation of Small Businesses, said:
“Our members want access to
European markets, the ability to hire
the right people, reassurance on key
EU-funded schemes and a new
approach to both regulation and deregulation.”
May said: “From dynamic startups
to established family firms, our
small and medium-sized businesses
are the backbone of our country.
They are a fundamental part of my
vision of building a country that
works for everyone, not just the
privileged few.”
PM must put an end to
tax secrecy says Hodge
MARK SANDS
@MkSands
INTERNATIONAL efforts to tackle
tax evasion amount to little more
than a sticking plaster, according to
MPs, with the UK taking the blame.
A new report from an all-party
group chaired by Labour’s Margaret
Hodge has slammed OECD efforts
to tackle corporate tax planning.
In particular, the group looked at
tactics to shift profits to domiciles
where little or no tax will be paid.
A 2015 G20 agreement proposed
15 key areas for reform, and sought
to increase transparency, while also
improving international coherence.
However, while MPs backed the
progress, they said it will fall short
of creating a fair and transparent
international tax system.
And in particular, Hodge
slammed the role of the UK
in hitting tax evaders,
describing the
government as “a
difficult friend”.
“[It’s]
unwillingness to get
tough on our
Overseas Territories
and Crown
Dependencies, home
to a number of tax
havens, by forcing them to
introduce public registers of
beneficial ownership is
frustrating,” Hodge said.
“The new Prime Minister must
put an end to tax secrecy. The UK
government should take a leading
role and introduce public countryby-country
reporting.”
As a result, their report
calls for reforms
including new rules to
Hodge: Make tax plans
more transparent
mandate country-bycountry
reporting for UK
publicly quoted companies.
In addition, the UK should
also force overseas territories and
crown dependences to adopt public
registers of ownership.
Ukip bars favourite Steven
Woolfe from leadership bid
Italy’s banks are not
in crisis and pose no
threat says minister
MARK SANDS
@MkSands
THE FAVOURITE to succeed Nigel
Farage at the top of Ukip is to be
excluded from the party’s
leadership contest.
Ukip migration spokesman
Steven Woolfe submitted
documentation in support of his
campaign 20 minutes after a
Sunday midday deadline, with
officials on his campaign blaming
technical difficulties.
Candidates were required to
submit their application
alongside 50 nominations and a
cheque for £5,000 to the party.
And following a meeting of the
party’s vetting committee, Ukip
officials have confirmed that
Woolfe will not be allowed to run.
The north west England MEP
was the runaway favourite to win
the competition, with
bookmakers offering odds as
short as 1/4 on his leadership bid
before news of the missed
deadline broke.
The decision saw three
members of the Ukip ruling
committee resign in protest,
while donor Arron Banks has
blasted the verdict, claiming it
raised fundamental questions
about the party’s future.
ISLA BINNIE
ITALIAN Economy Minister Pier
Carlo Padoan said yesterday the
country’s banks are not in systemic
crisis and pose no threat to other
banking systems.
Padoan was addressing parliament
in Rome the week after two of its
largest banks, Monte dei Paschi di
Siena and UniCredit fared badly in
regulatory stress tests. The sector in
Italy has faced scrutiny due to the
proportion of non-performing loans.
“The Italian banking system is not
in systemic crisis nor is it a source of
vulnerability for other banking systems,”
Padoan said.
Reuters

06 NEWS THURSDAY 4 AUGUST 2016
CITYAM.COM
Tesla loss widens
as deliveries fail
to shift up a gear
FRANCESCA WASHTELL
@fwashtell
ELON Musk’s electric car giant Tesla
reported lower-than-expected second
quarter results, driven by a dip in the
number of cars delivered.
Tesla’s total revenue rose 33 per cent
year-on-year to $1.27bn (£959m) in the
quarter ended 30 June.
The company delivered 14,402 vehicles
in the second quarter, missing its
goal of 17,000. Its rise in sales of its
Model S and Model X electric cars
failed to make up for the costs of ramping
up production. However, Tesla said
it is on track to deliver around 50,000
new Model S and Model X cars in the
second half of 2016.
Excluding items, Tesla lost $1.06 per
share, compared with 48 cents in the
same period of last year. Analysts had
expected a loss of 52 cents per share,
according to a Thomson Reuters poll.
The company’s net loss widened to
$293m, or $2.09 per share, in the sec-
ond quarter, from $184.2m, or $1.45
per share, in 2015. It was the 13th consecutive
quarterly loss. The company’s
share price was down 0.62 per cent in
after-hours trading, to $225.79.
“Despite the disciplined pace of capital
spending in the first half of this
year, we still expect to invest about
$2.25bn in capital expenditures in
2016, in support of our accelerated
production plan for Model 3,” founder
Elon Musk said.
“As we move ever closer to the
launch of Model 3, we remain as excited
as ever for the future of Tesla.”
Musk recently unveiled his “Master
Plan, Part Deux”, 10 years after the
company’s original plan launched.
He revealed the company is working
on technologies including solar
power, electric vehicles of all shapes
and sizes (including SUVs and pickup
trucks) and fully self-driving vehicles.
This week, green energy firm SolarCity
accepted a $2.6bn all-stock
takeover deal from Tesla.
The Simpsons is a long-standing gem in Fox’s television crown
Revenues up at 21st Century Fox
on higher advertising spending
FRANCESCA WASHTELL
@fwashtell
MEDIA conglomerate 21st Century
Fox reported revenues up seven per
cent year-on-year to $6.65bn (£5bn) in
the fourth quarter ended 30 June.
However, this fell below projected
estimates of $6.68bn. Annual
revenues grew one per cent to
$27.33bn. Earnings per share (EPS)
reached $0.45, surpassing Wall Street
estimates of $0.37 EPS. The rise was
driven by increased advertising and
affiliate revenues, in its network
programming and TV segment and
higher content revenues in its filmed
entertainment arm.
Fox shares were down 4.25 per cent
in after-hours trading to $25.89.
TripAdvisor
shares dip on
lower revenues
FRANCESCA WASHTELL
@fwashtell
LOWER hotel revenues and costly
expansion investments hit travel
site TripAdvisor’s revenues
yesterday.
Shares were down 7.6 per cent in
after hours trading to $64.24, after
the company posted a three per
cent fall in revenue to $391m
(£293m) and a 41 per cent drop in
net income to $34m.
Hotel revenue, which makes up
around 80 per cent of its sales, fell
eight per cent to $316m. Average
monthly unique visitors to the site
reached 350m, while marketing
costs rose 5.2 per cent year-on-year.
“We took important steps along
our key initiatives during the
second quarter,” chief executive
Steve Kaufer said.
“We also continued to build a
more end-to-end travel experience
through our attractions,
restaurants and vacation rental
businesses as we grew bookable
supply and improved our consumer
offering on all devices, especially on
mobile. We continue to play the
long game as we navigate our
business to deliver the best
experience in travel.”

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
07
Wells Fargo shrugs off Brexit blues
with ‘no material impact’ from vote
FRANCESCA WASHTELL
@fwashtell
US BANKING giant Wells Fargo & Co
said yesterday that it did not
experience any material impact on its
UK or other foreign businesses as a
result of the pro-Brexit vote in June.
Wells Fargo said the higher end of
its potential litigation losses in
excess of its liability for probable
losses was about $1bn (£754m) as of
30 June. At that time, the lender’s
total net exposure to the UK was
equivalent to $27.06bn.
In mid-July, the bank invested
heavily in the UK market when it
signed a reported £300m deal for a
brand new London headquarters.
The 227,000 square foot building will
be located on King William Street in
the heart of the City.
Wells Fargo’s sentiments echo
those of Citigroup, which said on
Monday it had “not experienced any
significant negative impact to its
results of operations or client or
counterparty activity or exposures as
a result of the UK referendum”.
Citigroup said it would continue
to keep an eye on issues arising from
the vote.
It added that pre-vote uncertainty
had helped to boost capital market
activity in the run-up to and shortly
after 23 June.
Some analysts are sick of retailer Next blaming its bad times on the bad weather
Next’s share
price rises on
trading update
HELEN CAHILL
@HelCahill
THE MARKETS responded positively to
Next’s second quarter update yesterday,
after the company announced
sales were up 1.8 per cent so far this
year – but analysts’ reactions were
mixed.
Augustin Eden, a research analyst at
Accendo Markets said investors
“shrugged off a disappointing trading
update” as Next’s share price rose
after the announcement – at the
close, Next’s share price had risen 4.1
per cent to 5,340p.
Investec analyst Alistair Davies said
the update “provides some short-term
reassurance given an improvement in
the performance of clothing”.
Davies added: “We retain a cautious
stance on the stock given ongoing
pressures within the credit book and
risk that poses of offsetting growth
elsewhere.”
Investec has a sell rating for Next
with a target price of 4,900p.
James McGregor, a partner at retail
consultants Retail Remedy, said Next
“can’t do anything” about the
weather or Brexit, which are affecting
all businesses, and needs to focus on
strategy in its trading updates instead
of external factors.
McGregor said: “The constant references
to the weather and its impact
on sale in Next’s trading updates
should be a signal that something different
needs to happen internally to
mitigate what happens externally.”
George Salmon, equity analyst at
Hargreaves Lansdown, said: “So far
Next has hardly seen any adverse impact
from the referendum, but like
many retailers it faces higher costs for
the goods it sources from abroad,
thanks to the devaluation of sterling.”
NEXT
5,500
5,400
5,300
5,200
5,100
5,000
P
5,340
3 August
28 July 29 July 1 Aug 2 Aug
3 Aug
Steady second six months can’t
reclaim Game’s lost ground
OLIVER GILL
@ojngill
RETAILER Game Digital was unable to
claw back the ground lost in the first
half of the year according to a preclose
annual trading announcement
released yesterday.
The update revealed that revenues
are expected to be £815m for the 12
months to 31 July, down from
around £867m in the previous year.
And while Gross Transactional
Values (the industry proxy for sales)
were down in the UK – by 10.8 per
cent – the decrease was less than the
overall market, which was down
nearly 13 per cent.
Game also has a considerable
presence in Spain with 267 stores. Its
currency adjusted growth was 12.4
per cent, ahead of the national
average of 7.4 per cent.
The Basingstoke-based company
was comfortable that earnings would
come in between £26m and £32m
and its share price ended the day four
per cent down.

08 NEWS THURSDAY 4 AUGUST 2016
House sellers cut
asking prices as
Brexit jitters bite
HELEN CAHILL
@HelCahill
PRIME central London house prices
have fallen by 1.5 per cent year-on-year
in July, according to estate agent
Knight Frank.
A report on home sales
from the company
showed Brexit has triggered
sellers to make
“overdue reductions”
to the asking price of
their properties.
Knight Frank said: “It
is too soon to say what
impact Brexit will have
on pricing but, in many
cases, reductions reflect
what would have been an appropriate
price before the referendum.”
The number of rental transactions
in prime central London increased
since the Brexit vote – but values have
fallen.
Knight Frank said the number of
tenancies agreed in the three months
to June rose three per cent compared
with the same period last year, and
viewings were up 15.8 per cent.
However, annual rental prices contracted
3.6 per cent in the year to July,
due to higher levels of stock in the
capital.
This reflected trends Knight
Frank has observed in
prime rents in the Home
Counties.
The number of tenancies
agreed grew in the three
months to June
Tim Hyatt, head of lettings
at Knight Frank, said:
"The current lettings market in
prime central London is encouragingly
stable.
“We saw a spike in new instructions
in the aftermath of the referendum
vote, although the number of new applicants
registering is slightly down,
creating an imbalance of supply and
demand.”
SOUTHERN FAIL (AGAIN) Union set to
ballot members over staff cutbacks
THE TRANSPORT Salaried Staffs’ Association will poll 150 members over Southern
Rail’s plans to close ticket offices and cut staffing numbers. Any strike action agreed
will only take place next month, following a two-week ballot beginning on 10 August.
CITYAM.COM
Ofgem vows to
energise sector
for customers
CAITLÍN MORRISON
@citycait
OFGEM, the gas and electricity
markets regulator, has set out its
plans to improve competition in the
sector, which includes creating a
database of customer details to
ensure consumers are being offered
the best energy deals – and putting a
price cap on the amount paid by
households using a prepaid meter.
The Competition and Markets
Authority (CMA) published its
findings on the state of the energy
market in June, when it
recommended a database of
customer details and the
prepayment price cap.
The watchdog also said it planned
to increase Ofgem’s powers, allowing
it to make changes to the market
more effectively.
The CMA said a database of
“disengaged customers”, consumers
who have been on a supplier’s
default tariff for three or more years,
would help promote competition
between rival energy companies, and
would also be a useful tool for Ofgem
to use in trying to engage with
customers. Meanwhile, Ofgem also
said it agreed the CMA’s conclusions
on prepayment meters.
MoneySupermarket chief executive
checks out on a high as profits soar
Fitness group’s stock
pops on cycling deal
JAKE CORDELL
@JakeCordell
PROFITS leapt at price comparison
website MoneySupermarket.com in
the first half of the year. The news
came as chief executive Peter Plumb
has announced his intention to step
down from the company.
Profits before tax came in at
£47.1m in the first six months of the
year for the website, up one quarter
from last year. Total sales rose from
£143.8m to £157.6m across the
company’s main brands – that’s
MoneySupermarket.com,
TravelSupermarket.com and
MoneySavingExpert.com.
On an adjusted basis, profits were
up six per cent to £53.8m.
Plumb will stay fully engaged in
the business until May next year and
help oversee the recruitment of his
successor.
MONEYSUPERMARKET
305.00
302.50
300.00
297.50
295.00
292.50
290.00
287.50
P
3 August
299.10
28 July 29 July 1 Aug 2 Aug
3 Aug
FRANCESCA WASHTELL
@fwashtell
AIM-LISTED Science in Sport’s
share price popped 24 per cent
yesterday on the news it has
become the official fitness
nutrition supplier to USA Cycling.
The cycling organisation, which
is the governing body for all
disciplines of competitive cycling in
the US, has signed a supply
agreement for tablets, Go Gels and
other items running until the end
of next year.
Science in Sport recently
expanded into the US market as
part of its strategy to become a
global seller in the endurance
sports nutrition market.
The company’s share price
jumped 24 per cent to a day-high of
68p. Its stock closed at 67.5p
yesterday.
City watchdog to consult on payout
system for mis-sold pension transfers
D3 1000 IU (25μg)
The sunshine vitamin in a small tablet
D3 is the preferred form of vit.D
found naturally in the body
Vitamin D helps maintain normal:
bones and teeth
muscle function
immune system function
Britain’s No.1 Vitamin Company*
Nielsen GB ScanTrack Total Coverage Value Sales 52 w/e 18th June 2016.
*
From Boots, supermarkets,
pharmacies, health stores &
www.vitabiotics.com
MARK SANDS
@MkSands
CITY watchdog the Financial Conduct
Authority will consult on how redress is
calculated for unsuitable pensions transfer
advice.
The FCA revealed yesterday that it would
consult in the autumn on changes to
current methodology.
Savers could opt out of the guaranteed
payments of a defined benefit (DB) scheme
in order to access more of their retirement
savings more quickly, for example to put
towards property or a holiday.
However, where advice provided to savers
is unsuitable, the current regime depends
on rules set up by the Pensions Review in
the 1990s designed to put consumers back
in the position they would have been in had
they stayed in their DB scheme.
However, the regulator said it is
concerned the way redress is calculated no
longer achieves this.
Following consultation, the FCA hopes to
reach conclusions on any reforms by next
spring.
In the meantime, the FCA will ask firms
to consider options to deal with the
complaints on an interim basis before the
outcome of the consultation is known.
For example, firms handling pension
transfer advice complaints may seek to
make a provisional offer of compensation,
with a view to further responses next year.
Firms will additionally be expected to
write to complainants to explain why any
response remains temporary.
In particular, the FCA said that where
firm are currently handling complaints, or
receive complaints before the consultation
is closed, the regulator expects cases to be
dealt with under current rules.
These mandate a competent and
impartial investigation of complaints,
which are then expected to be assessed
promptly.
However, the FCA nonetheless
acknowledged that the consultation may
cause a delay in redress for some
consumers.
It comes just a week after former
pensions minister Steve Webb argued the
pension contributions of working people
remain too low.
Approximately 66 per cent of the UK’s
working population has signed up to
workplace pensions following the launch of
auto-enrolment.
However, Webb warned that many are
still making only the minimum
contribution of just one per cent of salary.

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
09
Boxer David Haye packs a punch for
London-based recruitment startup
LYNSEY BARBER
@lynseybarber
FORMER world boxing champion
David Haye is the latest famous face
to get into the venture business,
investing in recruitment startup Syft.
Heavyweight Haye has joined VC
firm Profounders Capital, Lord
Young – David Cameron’s former
enterprise adviser – and other
entrepreneurs, to invest seed stage
cash of £2.65m in the startup.
Syft is aimed at making it easier to
recruit temporary staff for events
and hospitality and claims to save its
clients 55 per cent on the traditional
temp fees.
“Supporting British entrepreneurs
is really important to me, especially
those who are the driving force
behind tech and growth-focused
businesses,” said Haye.
“I not only invested in Syft’s
vision, but I also recognised the
company’s work ethic and
dedication to success.”
Syft founder Novo Abakare said:
“Venture capital money from
Profounders along with founders
from Bebo, Gamesys, Velocity,
CloudVolumes and David Cameron’s
ex advisor for small business in Lord
Young we feel very fortunate at such
an early stage to have an amazing
group.”
Ex-world champ David Haye is hoping temp hiring platform Syft will be a knockout
Bitcoin plunges
after hackers
target exchange
Recommended all-share merger between
Deutsche Börse AG and
London Stock Exchange Group plc
www.deutsche-boerse.com
Deutsche Börse shareholders:
additional acceptance period expires on
12 August 2016, 24.00 hours (CEST)
EMMA HASLETT
@emmahaslett
THE VALUE of bitcoin fell sharply late
on Tuesday night after a major exchange
halted trading, saying it had
uncovered a security breach.
Bitcoin fell as low as $483.10, after
Hong Kong-based Bitfinex said some
of its users had their bitcoins stolen.
In a statement it said the theft had
been reported to the police.
“As we account for individualised
customer losses, we may need to settle
open margin positions, associated financing,
and/or collateral affected by
the breach,” it added.
“While we are halting all operations
at this time, we can confirm that the
breach was limited to bitcoin wallets;
the other digital tokens traded on
Bitfinex are unaffected.”
The cryptocurrency had recovered
some of its losses by late yesterday,
trading at $552.60, about 0.06 per cent
down.
The price of bitcoin jumped in the
run-up to the EU referendum, at one
point rising close to $770.
But it has dipped over the last few
days, dropping below $600 for the
first time since the beginning of June
on Monday.
However, prices have remained reasonably
steady, despite the so-called
halvening.
Last month, Trendon Shavers, a 33-
year-old Texan, was sentenced to 18
months in prison in the first federal
securities fraud case involving a bitcoin
Ponzi scheme.
He repotedly raised more than
764,000 bitcoins through his Bitcoin
Savings and Trust investment fund
from 2011 to 2012, which he operated
from home. At the time, these were
worth $4.5m (£3.4m).
Shavers fraudulently obtained
around 146,000 bitcoins (around
seven per cent of the total) through
the scheme, according to New York
prosecutors, which were worth more
than $807,000 at the time, Reuters reported.
Out of 100 investors, prosecutors
said at least 48 suffered losses, totalling
$1.23m. As part of his sentence,
Shavers was also ordered to forfeit
$1.23m and pay restitution for the
same amount.
City advisers set to land windfall
from Softbank’s Arm takeover
LYNSEY BARBER
@lynseybarber
A HANDFUL of top City firms will
land a windfall share of the multimillion
pound pot of cash being
splashed on advisers to one of the
biggest tech deals of the year.
More than £100m is being spent
on advisers to Softbank’s acquisition
of Arm in a £24.3bn mega-deal
agreed in July.
Big name banks such as Goldman
Sachs and Lazard are set to prosper
from the lucrative acquisition along
with smaller firms such as boutique
outfit Robey Warshaw and financial
public relations firms.
Arm’s financial advisers, Goldman
Sachs, Lazard, UBS and Barclays, will
share a pot of £51.15m paid in fees.
Meanwhile, legal advisers Slaughter
and May, Davis Polk & Wardwell will
bag £9m.
Financial advisers to Softbank –
The Raine Group, Robey Warshaw,
Mizuho Securities – will split fees of
more than £45.2m.
Deutsche Börse AG (Deutsche Börse) and
London Stock Exchange Group plc (LSEG)
on 16 March 2016 announced the terms of
a recommended all-share merger.
The joint holding company (preliminarily called
HLDCO123 PLC, HoldCo) made a voluntary
public takeover offer (Exchange Offer) to all
shareholders of Deutsche Börse on 1 June 2016,
offering one HoldCo share in exchange for one
Deutsche Börse share.
At the end of the acceptance period on
26 July 2016, 63.65 per cent of the Deutsche
Börse shares (less treasury shares) have been
tendered into the Exchange Offer. Hence, the
minimum acceptance threshold of 60 per cent
has been exceeded fulfilling a completion condition
for the merger.
Pursuant to Section 16(2) of the Wertpapiererwerbs-
und Übernahmegesetz (WpÜG,
German Securities Acquisition and Takeover
Act), shareholders of Deutsche Börse who
have not yet accepted the Exchange Offer,
may now tender their shares within an additional
acceptance period of two weeks.
Deutsche Börse shareholders are reminded
that this additional period to accept the
Ex change Offer will expire on 12 August 2016,
24.00 hours (CEST).
Under the circumstances, when deciding
whether to accept the Exchange Offer, shareholders
of Deutsche Börse should, in particular,
consider the intentions of HoldCo, as described
in Section 10 of the offer document for the
Exchange Offer, as concerns the future business
activity of HoldCo, Deutsche Börse and LSEG,
and should also take into account the consequences
of a successful Exchange Offer, including
potential reductions to the free float and
liquidity of Deutsche Börse shares, possible
segment changes, a delisting or downlisting of
the Deutsche Börse shares and a potential
squeeze-out, all as described in Section 18
of the offer document.
Acceptance of the Exchange Offer will be
processed via the relevant custodian banks.
Questions can be directed to the Information
Agent for the Offer:
D.F. King Ltd.
Phone +44-(0) 20-79 20 97 00
E-mail db1@dfkingltd.com
Notice This advertisement is not directed, directly or indirectly, in or into the United States of America (including its territories and
possessions, any state of the United States and the District of Columbia) or any jurisdiction where to do so would constitute a violation
of the relevant laws of such jurisdiction. It is neither an offer to exchange, purchase or sell nor a solicitation of an offer to exchange,
purchase or sell shares of Deutsche Börse AG. None of the information contained in this advertisement is an offer of securities in the
United States or in or into any jurisdictions where to do so would constitute a violation pursuant to the laws of such jurisdiction.
The HLDCO123 PLC shares, to be issued in connection with the Exchange Offer, have not been, and will not be, registered under the
U.S. Securities Act of 1933, as amended (the Securities Act), or under the securities law of any state, district or other jurisdiction of
the United States. Accordingly, the HLDCO123 PLC shares may not be offered or sold in the United States absent registration under
the Securities Act or an exemption therefrom. There will be no public offering of the HLDCO123 PLC shares in the United States.
Any such US shareholder that validly accepts the Exchange Offer but does not satisfy HLDCO123 PLC that such offer and delivery of
HLDCO123 PLC shares meets the requirements of an appropriate exemption from the registration requirements of the Securities Act
will receive, in lieu of HLDCO123 PLC shares to which it would otherwise be entitled, the net cash proceeds of the sale of such
HLDCO123 PLC shares in euros.

10 NEWS THURSDAY 4 AUGUST 2016
CITYAM.COM
CITY A.M.’S SHADOW MONETARY POLICY COMMITTEE
OUR MPC VOTES 5-4 TO CUT POLICY
OUR PANEL’S GUEST CHAIR FOR THIS MONTH: VINCE CABLE, FORMER BUSINESS SECRETARY
HOLD The fashionable advocacy of negative interest rates worries me. There is little evidence, notably from Japan,
that it works. I am generally sceptical of indefinite loose monetary policy. The problem is radical uncertainty for investors.
I would use fiscal policy instead: public investment via the Regional Growth Fund and Green Investment
Bank to leverage in risk-averse private investment; free up borrowing to invest by Network Rail and local authorities;
give tax incentives via investment allowances and rate relief.
TAKEOVER TARGET? ITV, broadcaster of
Downton Abbey, could attract US interest
THE COMPANY, which currently has a market capitalisation of £7.8bn, has been linked
by analysts with moves from the US and Europe after the UK’s Brexit vote and the
subsequent weakening of sterling against the dollar.
economy.
JAMES SPROULE
INSTITUTE OF DIRECTORS
HOLD Confidence post Brexit, not capital cost, is
key. Businesses remain optimistic about their
own prospects, but cautious about the wider
GEORGE BUCKLEY
DEUTSCHE BANK
HOLD With monetary policy already very
accommodative, this should help support the
economy through Brexit.
BRIAN HILLIARD
SOCIETE GENERALE
CUT Make it clear that any further cut would be
counter-productive because of its adverse effect
on bank profitability and thus lending capacity. I
would hold quantitative easing in reserve, to be used as
necessary, once the impact of Brexit has become clearer.
KALLUM PICKERING
BERENBERG BANK
CUT The current and expected economic
weakness following the Brexit vote warrants a
monetary expansion to support confidence and
domestic demand.
trends.
improved.
SIMON WARD
HENDERSON
HOLD Policy must try to balance growth
and inflation risks. Wait for more evidence,
particularly on post-referendum monetary
VICKY PRYCE
BIS AND CEBR ADVISER
CUT Signs of collapsing confidence and
cutbacks in output and orders have multiplied
and urgent action is needed to limit the
slowdown in activity.
ADAM CHESTER
LLOYDS BANKING GROUP
CUT The case for further easing is not clear cut.
Although recent surveys point to an economic
slowdown, financial market sentiment has
ROSS WALKER
RBS
CUT Monetary policy options are constrained,
but there is some scope to cut rates and revamp
term funding programmes. A resumption of
quantitative easing could well be warranted at a later stage.
City economists urge Carney to cut interest
rates for the first time in over seven years
JAKE CORDELL
@JakeCordell
CITY economists have called on
Bank of England governor Mark
Carney to pull the trigger and cut
interest rates for the first time in
seven-and-a-half years today.
City A.M.’s Shadow Monetary
Policy Committee voted five to
four in favour of slashing rates to
a new all-time low of 0.25 per
cent. Futures markets indicate a
cut is a dead-certainty, but
Threadneedle Street shocked
markets last month when it failed
to budge.
Interest rates are currently at
their lowest ever level in the
Bank’s 322-year history of 0.5 per
cent and have not budged since
March 2009.
Carney, who has been governor
since the summer of 2013, has
never once advocated a shift in
monetary policy.
The panel recommended
holding back on unleashing a new
round of bond-buying, however, as
City A.M.’s would-be rate-setters
favoured waiting for more hard
data before emptying the Bank of
England’s arsenal.
Spread civil service over
the UK, says think tank
MARK SANDS
@MkSands
ONE in three London-based civil
servants should be relocated
outside London to boost
productivity in public services,
according to a new report from
think tank Policy Exchange, which
comes as HMRC signs a lease for
new offices in Croydon.
According to Policy Exchange,
roughly 25,000 civil servants could
leave the capital in a bid to deliver
more localised thinking on service
delivery.
In its latest report, the think
tank said the devolution of powers
to local authorities has not gone
far enough, and could be “turbocharged”
by the redistribution of
civil servants across the country.
Report author Damian Hind
said: “If we truly want to create
public services that help people to
live independent and fulfilling
lives then we need to think
differently about how we design
and deliver services.
“More decent, human and caring
services will only be achieved
by changing the mind-set
of policymakers in
Westminster,
breaking down the
outdated Sir
Humphrey model
of government and
putting local
places firmly in
control.”
There are an
estimated 80,000 civil
servants in London,
representing more than 70 per cent
of the nation’s total.
Among other ways to improve
local services, it also calls for public
sector organisations such as
schools and prisons to set their
own budgets and own delivery
models, while local authorities
should also be given full autonomy
over public sector pay so they can
alter national terms and
conditions.
It comes as HMRC signs a
25-year lease for new
offices in East Croydon.
There are an estimated
80,000 civil servants in
the capital
The tax office is
relocating 2,500 staff from
across the South East to the
new site.
It will be the first HMRC’s new 13
regional offices when it launches
in summer 2017.

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
11
THECAPITALIST
EDITED BY FRANCESCA WASHTELL
We can all be athletes
with Olympics bingo
WILL the phrase “on your marks” be replaced
with “eyes down” at the Tokyo
2020 Olympics? It will be if Mecca Bingo
has its way and gets the gambling game
declared an Olympic sport in its continued
campaign to join Team GB.
In April, the group launched its official
bid, writing letters to the International
Olympic Committee to
seek accreditation. And now, in a
poll of 1,000 people, 95 per
cent of voters said they supported
the evening pastime
competing on the sporting
world’s biggest stage.
Mecca insists bingo fulfils
“many” of the criteria set out by the
IOC, including popularity in a large
number of regions in the world, affordability
and a set of easy-to-understand
rules.
“Successful bingo playing requires a
steady hand, intense concentration
and mental agility; three attributes
that most athletes are keen to possess”
– and bingo players have in
droves, Mecca Bingo argues.
With just one day left until
the Olympics kicks off, The Capitalist
is reassured to know that
sporting greatness has not yet
passed any of us by. The numerically-inclined
among us could
positively excel, finding a new
medium for the City’s mathletes
to thrive. We bet this has
all the ingredients to become
the next campaign sensation.
Is this someone’s
grandmother? Or an
Olympic athlete?
OFFICE NO-MANCE Almost all of us are
too scared to pursue a work colleague
MORE than nine in 10 of us have had a soft spot for a colleague, according to
figures from law firm Protecting.co.uk. However, we appear to be a timid
bunch. Only 15 per cent of us have acted on it. Most were, perhaps sensibly,
worried they would fall foul of harassment policies. Bit of buzzkill, we admit.
Got A Story? Email
thecapitalist@cityam.com
POKEMON BILL A NO-GO
OLYMPIC gold-winning medallist Kohei
Uchimura got caught out after playing
a different sport yesterday.
The Japanese gymnast racked up a
£3,700 roaming charge for playing
Pokemon Go in Brazil after arriving for
pre-games training. Maybe it’s time to
turn back to the real sports?
QUOTE OF THE DAY
A caged tiger will
now be unleashed
Anand Mahindra,
chairman of car and
tractor maker
Mahindra &
Mahindra, on the
approval yesterday
of Indian PM
Narendra Modi’s
national sales tax.
Ad boss departs firm
after gender fiasco
LYNSEY BARBER
@lynseybarber
ONE OF advertising’s top bosses has resigned after
a storm surrounding comments he made about
women working in the industry.
Saatchi and Saatchi chairman Kevin Roberts,
who had been put on a leave of absence by the
agency’s owner Publicis Groupe, has said he will
leave the company at the start of September. He
had planned to retire in May next year.
Roberts, also head coach for the French
advertising group, claimed the issue of gender was
over at the creative agency and that it doesn't
spend “any time” on the matter, among other
comments. They were met with concern from
many leaders in the advertising industry – both
men and women.
The firm said over the weekend that it does not
“tolerate anyone speaking for our organisation
who does not value the importance of inclusion”.
IoD’s Walker takes up
global role as he exits
TRACEY BOLES
SIMON Walker, who stands down as director
general of the Institute of Directors (IoD) at the
end of the year, has been appointed chairman of
the Global Network of Director Institutes, which
represents more than 100,000 directors globally.
The GNDI has 19 member organisations from
Brazil to Canada, the US and Australia, and
includes recent additions from Germany, Russia,
Pakistan and Philippines.
Simon Walker will chair the next meetings in
London and Johannesburg. Walker said: “When I
joined the IoD five years ago, corporate governance
was not a phrase that got many people excited. But
the heated public debate on executive pay and
high-profile corporate failures, such as BHS, have
rocketed governance up to the top of the political
agenda in the UK.
“Following the Brexit vote, it is now more
important than ever that Britain maintains a
global perspective on business.”

12 NEWS THURSDAY 4 AUGUST 2016
CITYAM.COM
Time Warner jumps on streaming
bandwagon with 10pc stake in Hulu
FRANCESCA WASHTELL
@fwashtell
HBO OWNER Time Warner has
bought a 10 per cent stake in the TV
streaming service Hulu and lifted its
profit forecast after reporting higherthan-expected
quarterly earnings
yesterday.
Its Turner division has also signed
a separate affiliate agreement for its
full suite of networks to be carried
on Hulu’s live-streaming service,
which is set to be launched next year.
Time Warner did not disclose how
much it paid for the Hulu stake,
though Reuters reported it had paid
around $580m (£437m) in cash.
Revenues at the Games of Thrones
maker were down five per cent to
$7bn in the second quarter ended 30
June, driven down by a 19 per cent
revenue drop at Warner Bros.
Operating income fell one per cent
to $1.8bn due to decreases at Warner
Bros and HBO. Earnings per share
(EPS) reached $1.20, while adjusted
EPS was $1.29 for the quarter, up
from $1.25 in the same period of last
year.
The company said it expects
adjusted profit for the year of $5.35
to $5.45 per share, up from its
previous forecast of $5.30 to $5.40.
Time Warner CEO Jeff Bewkes said:
“We had a strong first half of 2016,
which puts us ahead of our original
goals for the year. Our performance
reflects the creative excellence
resulting from investments we’ve
been making in the very best
content.”
Time Warner paid around $583m for a Hulu stake valuing the tech firm at $5.8bn
US rival pulled
exchange bid on
Brexit caution
WILLIAM TURVILL
@wturvill
THE OWNER of the New York Stock
Exchange pulled out of a bid for the
London Stock Exchange because it was
anticipating a Brexit vote, the US company
revealed yesterday.
The Intercontinental Exchange (ICE)
announced it would not be making a
bid for the LSE, which is currently in
the process of merging with German
exchange Deutsche Boerse, in May.
But ICE said at the time it “reserves
the right to make or participate in an
offer” for the LSE “within the next six
months”.
Reporting its second quarter results
yesterday, ICE executives were asked by
analysts about how the UK’s Brexit
vote will affect the LSE-Deutsche
Boerse merger.
Jeff Sprecher, chairman and chief
executive, said: “When we looked at
that transaction and decided that we
were not going to go forward, we were
very open to say that we had some concerns
that we didn’t have enough
information to put a credible bid on
the table.
“What I didn’t say at the time, that I
can say now, is that at the time we did
not want to talk about Brexit, and we
had been urged by others not to talk
about Brexit. But the way that deal
was lining up it was orchestrated so
that we were going to, if we entered
the deal, have to put a number on the
table right ahead of the Brexit vote.”
He explained that three UK directors
on the ICE board had cautioned management
that the vote would be close.
Sprecher added: “So we went out and
started talking to our UK colleagues to
try to gauge where we thought the
vote was going to come up. And honestly
we came to the opinion that the
UK was probably going to leave.
“And so we decided, given that we
didn’t have good information and
given that we thought the landscape
was going to change, that it was not
an appropriate time for us to do that
transaction.”
ICE yesterday reported better-thanexpected
rises in profit and revenue in
the three months to 30 June. The company
reported net income attributable
to ICE of $357m (£268m) on consolidated
revenues of $1.1bn.
LSE and Deutsche Boerse are seeking
regulatory approval for their merger
after both firms’ shareholders
approved the £21bn tie-up.
Moon Express plans to land a robotic spacecraft on the moon’s surface in 2017
Silicon Valley star gets green
light for moon landing mission
BILLY BAMBROUGH
@BillyBambrough
THE US government has given a
Silicon Valley-based company
permission to send a robotic lander
to the moon next year for a two-week
mission.
This is the first time a private
space mission has been cleared to fly
beyond Earth’s orbit, almost half a
century since Neil Armstrong walked
on the Moon’s surface.
Moon Express is competing in the
Google Lunar Xprize competition,
which has a prize of $30m. It is up
against US rival Astrobotic and
India’s Team Indus.
“We are now free to set sail as
explorers to Earth’s eighth
continent, the Moon, seeking new
knowledge and resources to expand
Earth’s economic sphere for the
benefit of all humanity,” said Bob
Richards, co-founder and chief
executive of Moon Express.
The go-ahead for Moon Express
sets a legal and regulatory
framework for other companies to
plan similar missions.
Crocs’ revenue
fall leads to
share sell-off
BILLY BAMBROUGH
@BillyBambrough
CROCS – the US maker of
lightweight clogs – left investors
wrong-footed yesterday as a slide in
sales led to the firm’s share price
falling 23 per cent.
Revenue fell six per cent to
$324m (£243m) from $345m a year
ago, below the consensus estimate
of $348m. Net income came in at
$15.5m, or 13 cents a share, slightly
higher than $13.4m a year earlier.
The company lowered its revenue
forecasts to between $245m and
$255m range, compared with
$274.1m in the third quarter of
2015. For the full year, the company
expects revenue to be down by low
single digits, blamed on an
increasingly “cautious retail
environment” and slower turn
around in China.
“Despite a decline in our revenue,
I am encouraged by our strategic
progress, which has enabled us to
help mitigate the top-line pressure
on profitability by delivering
better-than-expected gross margins
and managing expenses while
reducing inventories,” said Crocs
chief executive Gregg Ribatt.
“The global retail environment
became more challenging as the
second quarter progressed.”
Headwinds were somewhat offset
by a 2.9 per cent increase in the
brand’s global direct-to-consumer
comparable-store sales.
Office Depot to close stores and cut
costs after its Staples tie-up failure
Office Depot hasn’t said whether planned costs cuts will mean jobs will be axed
BILLY BAMBROUGH
@BillyBambrough
US STATIONERY supplier Office Depot
is planning to close a further 300
stores over the next three years to
help cut costs by $250m (£187m).
The announcement came as the
company posted profit of $210m, or
38 cents a share, for its second
quarter, reversing a loss of $58m in
the same period a year ago.
Revenue slipped to $3.2bn from
$3.4bn, but came in right on what
many analysts had pencilled in.
The retailer has already shuttered
400 of its US stores by the end of the
second quarter, leaving it with 1,513
in North America.
Investors were cheered by news
that it would raise its stock buyback
programme to $250m from $100m
and the introduction of a quarterly
dividend.
Last year rival Staples agreed to
buy Office Depot for about $6.3bn
but in May this year the US Federal
Trade Commission stepped on the
deal, arguing it would mean higher
prices and fewer options for bulk
buyers.
Office Depot picked up $250m
from Staples as a result of the deal’s
collapse. In May it was announced
Office Depot was looking to offload
its struggling European business.

CITYAM.COM/RIO-50
THERIO50
THE MOST MARKETABLE ATHLETES
AT THE 2016 OLYMPIC AND PARALYMPIC GAMES
#CityAMRio50
Do you thrill to the Mobot? Or tingle when Jess Ennis-Hill ducks for
the line? Perhaps it’s Usain Bolt’s signature To Di World celebration,
an Andy Murray fist pump, or gymnastics doyenne Simone Biles
cheekily winking during a floor routine that brings out the goosepimples.
Everyone has their favourites: those sportsmen and women who we
marvel at, will pay the big bucks to watch, perhaps even secretly
want to be. That, of course, is why the biggest international brands
fall over themselves to associate with these super-athletes.
But of all the competitors readying themselves for the Rio 2016
Olympic and Paralympic Games, who are the gold medal winners
in marketing terms? That is the question we asked an array of the
leading thinkers in the sports business industry.
Our experts considered factors such as their popularity, age,
performance credentials, chances of success in Rio and value for
money to come up with the City A.M. Rio 50. I hope you’ll enjoy
poring over their wisdom – read on to see if you agree.
FRANK DALLERES, SPORTS EDITOR, CITY A.M.

02 SPECIAL REPORT THURSDAY 4 AUGUST 2016
CITYAM.COM/RIO-50
THERIO50
50.
JAHEEL HYDE
JAMAICA | ATHLETICS
The latest track prospect to emerge from Jamaica's
enviable production line, 19-year-old Hyde warmed up
for Rio by defending his 400m hurdles title at the World
Under-20 Championships in July.
49.
WAYDE VAN NIEKERK
SOUTH AFRICA | ATHLETICS
Van Niekerk is the only man to have run under 10
seconds in 100m, sub-20 in 200m and under 44 in
400m. He won World Championship gold in the longest
distance last year and sponsors include Adidas and
Richard Mille.
48.
KATARINA JOHNSON-
THOMPSON
GREAT BRITAIN | ATHLETICS
44 42
28
48
KJT may be in the shadow of defending champion and
fellow Brit Ennis-Hill – in competitive terms at least –
for now, but is tipped to follow in her footsteps and
already boasts a high profile, with Nike marketing her
internationally.
47.
TRAYVON BROMELL
USA | ATHLETICS
Rising star Bromell, 21, was the first junior to run a sub-
10 second 100m and took bronze in the World
Championships last year. He is set for his first Olympics
and already has a deal with New Balance.
46.
DINA ASHER-SMITH
GREAT BRITAIN | ATHLETICS
Asher-Smith is a European champion and Britain's
fastest woman ever over 60m, 100m and 200m – and
she’s still only 20. The south Londoner also juggles
track stardom with studying for a history degree at
King's College.
45.
SUN YANG
CHINA | SWIMMING
34
Sun is the first Chinese man to win Olympic swimming
gold and holds the 400m and 1,500m freestyle crowns.
The 6ft 6in star also has seven world titles plus a string
of controversies, including a previous doping ban.
44.
JONNIE PEACOCK
GREAT BRITAIN | PARA-ATHLETICS
Cambridge sprinter Peacock, 23, is the T44 100m
defending champion who won gold at London 2012
just four months after his
international debut. He has
since added two European
titles and a World
Championship.
43. CARLIN
ISLES
USA | RUGBY SEVENS
With a blistering turn of pace that has
seen him dubbed the fastest man in
rugby, former sprinter Isles, 26,
could be one of the stars of
the inaugural Olympic
Sevens competition.
42.
ZHANG JIKE
CHINA |
TABLE TENNIS
Jike became the fastest man to
complete the sport’s grand slam
when he won gold in London,
although the 28-year-old with a
taste for flamboyant celebrations has
won just two individual titles since
2012.
41. MARIANNE
VOS
NETHERLANDS | CYCLING
Road racer Vos, who has deals with Volvo
and Oakley, repeated her track gold at
Beijing in 2008 on the tarmac of London
and is also a three-time world champion in
the event, although Brit Lizzie Armitstead
now holds that title.
31
ALAN OLIVEIRA
40. BRAZIL | PARA-ATHLETICS
Oliveira, 23, rose to prominence by beating Oscar
Pistorius at London 2012. He is set to defend his T44
200m Paralympic title on home soil, while trying to
dethrone Team GB’s Jonnie Peacock in the 100m.
39.
LIN DAN
CHINA | BADMINTON
Lin is badminton’s all-time greatest: a five-time world
champion, the only man to win the nine-leg Super
Grand Slam, and now seeking an unprecedented third
Olympic gold in a row in Rio.
38.
SIMONE BILES
USA | GYMNASTICS
She may only be 19, but Biles has more world titles
than any woman in history. Praised for flair as much as
precision, the so-called Michael Jordan of gymnastics
could bag five golds on her Olympic debut.
37.
DAVID RUDISHA
KENYA | ATHLETICS
Rudisha, 27, isn’t just the reigning Olympic 800m
champion; he is also a two-time world champion, the
world record holder, the only person to break 1:41, and
owner of the three best times in history.
36.
DAFNE SCHIPPERS
NETHERLANDS | ATHLETICS
The golden girl of Dutch track and field is the reigning
200m world champion and also has four European titles.
Schippers, 24, won world and European heptathlon gold
as a junior but has narrowed her focus to sprinting.
35.
SYDNEY MCLAUGHLIN
USA | ATHLETICS
McLaughlin, 16, is US athletics’ newest phenomenon.
The New Jersey schoolgirl, who came third in the
400m hurdles at the national trials, is the youngest
American track athlete at an Olympics since 1972.
34.
QIU BO
CHINA | DIVING
Bo is the man Tom Daley will likely have to beat to win
gold in the 10m platform. Both were pipped at London
2012, but the Chinese took Daley’s world title in 2011
and has retained that crown twice since.
33.
KIRANI JAMES
GRENADA | ATHLETICS
James is set to defend the 400m title he won at a
canter four years ago when still a teenager, and so
good is his form this year that observers have tipped
him to threaten Michael Johnson’s world record.
32.
EUGENIE BOUCHARD
CANADA | TENNIS
The 2014 Wimbledon finalist is still to fully realise her
promise on the court yet the 22-year-old has remained
popular with sponsors and boasts an array of contracts
with the likes of Coca-Cola, Aviva, Colgate and Nike.
31.
LYDIA KO
NEW ZEALAND | GOLF
Ko won her first LPGA title at 15, shot to world No1 two
years later and already has two majors to her name,
prompting comparisons between the trajectories of
the Korea-born 19-year-old and Tiger Woods.

THURSDAY 4 AUGUST 2016
SPECIAL REPORT
03
11
#CityAMRio50
30.
KOHEI UCHIMURA
JAPAN | GYMNASTICS
24
The all-around champion's sustained excellence – he
has won six world titles in a row and helped Japan win
a first team gold for 37 years last year – is why he is
regarded as the best gymnast of all time.
29.
SHELLY-ANN FRASER-PRYCE
JAMAICA | ATHLETICS
Fraser-Pryce, 29, could pip her more celebrated
countryman Bolt to a hat-trick of Olympic 100m titles –
albeit only by 24 hours – although the Nike athlete's
form has suffered following a toe injury.
28.
LAURA TROTT
GREAT BRITAIN | CYCLING
Since winning two golds at London 2012, Trott, who
counts Prudential and Adidas as sponsors, has taken
her world title tally to seven. She is set to race in the
scratch, omnium and team pursuit in Rio.
27.
KLAY THOMPSON
USA | BASKETBALL
The Golden State Warriors shooting guard and twotime
NBA All Star, 26, helped USA win basketball’s 2014
World Cup. This year he left Nike’s stable to launch his
own shoe range with Chinese brand Anta.
26.
LEXI THOMPSON
USA | GOLF
The world No4 made history by qualifiying for the US
Women’s Open aged 12. Now a major winner, the
Puma, EA Sports, Rolex and Red Bull athlete is among
the favourites for gold in Brazil.
25.
GABRIEL BARBOSA
BRAZIL | FOOTBALL
Dubbed Gabigol for his scoring exploits and tipped to
follow in the footsteps of Neymar, the 19-year-old is
likely to be one of the stars if the hosts can deliver
Olympic gold to an expectant nation.
24.
ASHTON EATON
USA | ATHLETICS
There are few hotter favourites for gold this summer
than decathlete Eaton, who followed London 2012
success with World Championship titles in 2013 and
2015 and also boasts the world record.
23.
MARTA VIEIRA DA SILVA
BRAZIL | FOOTBALL
She is known by her first name but has also been
dubbed The Female Pele, such is her standing in
women’s football. Home hopes of gold rest on the
prolific forward, a face of Coca-Cola and Puma.
22.
TOM DALEY
GREAT BRITAIN | DIVING
Daley’s appeal goes far beyond his nine gold medals
from major championships. The 22-year-old is a flagbearer
for diversity and has a loyal fanbase on social
media that includes 2.5m Twitter followers.
21.
SONNY BILL WILLIAMS
NEW ZEALAND | RUGBY SEVENS
A unique sporting icon, Williams has played rugby
league for New Zealand, won rugby union’s World Cup
with the All Blacks and in between went unbeaten in
four years as a heavyweight boxer.
20.
GARBINE MUGURUZA
SPAIN | TENNIS
HOW WE
COMPILED
THE LIST
To generate the Rio 50
we mined the expertise
of some of the leading
names from the world
of sports marketing,
sponsorship, branding,
management and
academia. First, our
eight contributors were
invited to nominate
sportsmen and women,
before whittling down
the longlist to just 50,
and then ultimately
generating the final
ranking. The criteria
they judged athletes by
were: recognition;
popularity;
performance
credentials; potential at
Rio; age; value for
money; prominence in
home market; reach;
room in portfolio for
more sponsors; and
unique backstory.
OUR CONTRIBUTORS
CHARLES
JEFFERSON
Senior Vice
President, Olympic
Marketing at
industry giant IMG
JONATHAN
IZZARD
Insights Director,
on behalf of
Synergy, the
sports marketing
specialists
PITCH MARKETING
GROUP
Award-winning
sports sponsorship
and public relations
agency
ROBERTO
COLADANGELO
Director of
international sports
marketing agency
SportQuake
SIMON CHADWICK
Professor of Sports
Enterprise at Salford
University and highly
regarded industry
commentator
ANDY SUTHERDEN
And the Sports Team
at global
communications
agency H+K
Strategies
RICHARD HAIGH
Managing Director of
Brand Finance,
independent brand
valuation
consultancy
GREG KIRKPATRICK
Head of Athlete
Management at
sports and
entertainment
agency M&C Saatchi
18.
KYRIE IRVING
USA | BASKETBALL
Team USA point guard Irving helped Cleveland
Cavaliers win the NBA title this year and is a three-time
All Star. The 24-year-old has a signature shoe line with
Nike plus endorsements with Pepsi, Activision and
Foot Locker.
17.
RYAN LOCHTE
USA | SWIMMING
Five-time Olympic champion Lochte has a point to
prove after failing to qualify to defend all his titles. The
uber-bro, who has deals with Ralph Lauren and
Marriott and dons mouth jewellery on the podium,
insists that, at 32, he has grown up.
16.
CHRIS FROOME
GREAT BRITAIN | CYCLING
Fresh from a third dominant Tour de France victory in
four years, Team Sky spearhead Froome is gunning for
an improvement on his London 2012 bronze in the
time trial and will also go in the road race.
15.
DANNY WILLETT
GREAT BRITAIN | GOLF
Willett hit the big time by winning the Masters, his first
major tournament, in April and the Yorkshireman, who
has tie-ups with Audemars Piguet and Callaway, is
among the favourites for gold as golf returns to the
Olympics.
14.
KEI NISHIKORI
JAPAN | TENNIS
The first Asian man to reach a Grand Slam final – losing
to Marin Cilic in the 2014 US Open – is a world top 10
player and boasts deals with Jaguar, Tag Heuer, Adidas
and Uniqlo as well as his own app.
13.
RICKIE FOWLER
USA | GOLF
One of the highest-ranked golfers heading to Rio,
Fowler’s youth, success, good looks and all-American
image have made the 27-year-old hot property for
sponsors, who include Rolex, Mercedes, Zurich
Insurance and Puma.
12.
YOHAN BLAKE
JAMAICA | ATHLETICS
Muguruza, 22, won her first Grand Slam at the French
Open this year, is tipped to be the next big thing in the
women’s game and already has deals with Adidas by
Stella McCartney and bank BBVA.
19.
KATIE LEDECKY
USA | SWIMMING
38 21
Blake, who revels in his “Beast” nickname, might be an
even bigger star but for training partner Bolt, who beat
him into second in both 100m and 200m four years ago
and is the only man ever to have run faster.
11.
MO FARAH
GREAT BRITAIN | ATHLETICS
The world’s top female swimmer won gold at London
2012 aged 15 and has bagged nine world titles and
three world records since. Teenager Ledecky was
named in this year’s Time 100 and is fancied for four
more golds in Rio.
Britain’s most decorated athlete has made the 5,000m
and 10,000m his own, winning both at London 2012
and the last two World Championships. Farah has
deals with Virgin Media and Nike – and his unique
Mobot celebration.

04 SPECIAL REPORT THURSDAY 4 AUGUST 2016
THERIO50
10.
MISSY FRANKLIN
USA |
SWIMMING
Franklin won hearts as well as plaudits when scooping
four golds at London 2012, aged just 17. The
intervening years have seen her struggle to sustain top
form amid injury problems, while Katie Ledecky has
replaced her as the darling of American swimming,
meaning the face of Visa, United Airlines and Speedo
heads to the Games seeking redemption of sorts.
09.
BRADLEY WIGGINS
GREAT BRITAIN |
CYCLING
Wiggins achieved iconic status four years ago by
winning time trial gold just weeks after becoming the
first Briton in history to triumph at the Tour de France.
Now 36, cycling’s charismatic modfather, whose
sponsors include Samsung and Hyundai, hopes to
become the country’s most decorated Olympian of all
time by adding to his seven medals in a return to the
velodrome track in Rio.
08. ATHLETICS
JESSICA ENNIS-HILL
GREAT BRITAIN |
Ennis-Hill’s heptathlon gold made her one of the faces
of London 2012 and since then she has only enhanced
her standing by returning from an extended break for
the birth of her first child and reclaiming her world title
in Beijing last year. The supermum, 30, has a flawless
public image that has earned endorsements with
Omega, BP, Santander, Adidas and Vitality and she will
be the woman to beat in Rio.
04
CITYAM.COM/RIO-50
#CityAMRio50
01.
USAIN BOLT
JAMAICA | ATHLETICS
Well, it had to be him, didn't it? The fastest man of
all time, who is hunting a third triple of 100m, 200m
and 4x100m gold in his final Games, carries off his
superhuman feats with an insouciance, laid-back
charm and penchant for showmanship that has
only endeared the 29-year-old further still to
audiences and sponsors such as Puma, Virgin
Media, Hublot and Nissan.
07.
KEVIN DURANT
USA |
BASKETBALL
The 2016 edition of Team USA might not match the
1992 Dream Team for pedigree, nor even the London
2012 gold-winning side that featured LeBron James
and Kobe Bryant, but in Durant it still boasts one of
basketball’s superstars. The small forward has an
aggregate social media following of more than 30m
and his commercial contracts include a reported
$300m tie-in with Nike.
06.
ANDY MURRAY
GREAT BRITAIN |
TENNIS
Britain’s most successful tennis player since Fred Perry
heads to Rio following a stellar few months in which he
won the country’s first Davis Cup for 79 years, became
a father and then claimed a second Wimbledon title.
The 29-year-old, who has deals with Under Armour,
Head, Jaguar and Standard Life, is set to defend his
men’s singles crown and could also line up in the men’s
and mixed doubles.
05. SWIMMING
MICHAEL PHELPS
USA |
Phelps, the most decorated Olympian of all time and
the most successful competitor at each of the last three
Games, is bigger than his sport. His comeback from
retirement and a drink-driving controversy means the
31-year-old, who has his own swimwear line and a deal
with Under Armour, goes to Rio seeking not just to add
to his 18 golds but also to answer his critics.
05 02
08
04. TENNIS
SERENA WILLIAMS
USA |
Williams embarks on her final Olympics with her case
for being the greatest female tennis player of all time
strengthened by equalling the Open Era record of 22
Grand Slam singles titles at Wimbledon last month.
The defending women’s singles and doubles
champion, with sister Venus, is also a commercial
giant, with a reported $29m annual income from
sponsors such as Nike, Gatorade and Wilson.
03.
NOVAK DJOKOVIC
SERBIA |
TENNIS
Mischievous and mercurial world No1 Djokovic took
his game to new heights in an almost invincible last
year and a half, winning 17 titles and completing the
career Grand Slam, before a shock third-round defeat
at Wimbledon. Olympic gold is the only major honour
still to elude the face of Uniqlo, Peugeot, Seiko and
ANZ, who has a solitary bronze, from Beijing in 2008, to
show for two trips to the Games.
02. NEYMAR
BRAZIL |
FOOTBALL
Neymar is the most likely rival to Bolt as the face of the
Games, if the silky-skilled star of the selecao can succeed
in firing the hosts to the Olympic title they crave. The 24-
year-old is already a marketers’ dream, with more than
135m fans on Instagram, Facebook and Twitter and a
dizzying array of sponsors including Nike, Gillette,
Volkswagen, Red Bull, Panasonic, Replay and Police.

CITYAM.COM
THURSDAY 4 AUGUST 2016
NEWS
13
Fitch warns hard-hit oil
majors unlikely to
break even this year
JESSICA MORRIS
@jssmorris
FITCH warned yesterday that the cashstrapped
European oil majors are unlikely
to break even until next year.
It comes after Royal Dutch Shell, BP,
Total and Eni revealed a disappointing
set of first-half results. They didn’t
benefit as expected from oil prices
swelling about a third during this period.
The credit ratings agency said the results
suggest big oil firms are “likely
to generate large negative free cash
flows for the full year as average oil
prices remain lower than in 2015”.
“This will push up leverage in the
near term but we expect cash deficits
to fall in 2017 as oil prices start to
gradually recover and the majors
progress with their cost-cutting initiatives,”
it continued.
“They’re likely to struggle until
crude hits more than $50 per barrel,
which Fitch has pencilled in for 2017-
18, at which point oil majors’ cash
flows should improve significantly.”
The oil industry has taken on more
debt as a result of crude prices crashing
from the middle of 2014. They’ve
made deep cost cuts and streamlined
operations, but many have borrowed
to fund investments and pay dividends.
Fitch said that while oil majors’ capital
spending fell in the first six
months of 2016, this wasn’t enough to
offset less cash coming in.
It also cautioned that assets sales,
part of their efforts to weather low
prices, could also fetch less than what
was initially hoped for.
“Our assumptions on disposals are
more conservative than the companies’
guidance as low oil prices and
high supply of assets for sale have resulted
in a buyers’ market. This means
some disposal programmes may not
be realised in full,” Fitch said.
Shell’s profit tumbled 72 per cent in
the second quarter, driven by weak oil
prices and its £41bn acquisition of
smaller rival BG.
But its rivals BP and Total also suffered
— with their profits also dropping
by 44.6 per cent and 30 per cent
respectively.
Low-cost carrier Ryanair filled 96 of every 100 seats on flights during July
Ryanair unveils Olympic return
with its July passenger numbers
OLIVER GILL
@ojngill
NOT TO be overshadowed by the feats
of sporting prowess at the
forthcoming Rio Olympics, Ryanair
said it had broken the world record
for the most passengers carried by an
airline during one month.
“July was a record month for
Ryanair as our traffic grew by 12 per
cent to 11.3m customers and we
became the first airline in the world
to carry over 11m international
passengers in one month, with a
load factor of 96 per cent,” said
Ryanair’s Kenny Jacobs.
Load factors were 96 per cent, but
Liberum said it may be a high-water
mark. “Load factors are reaching their
upper limit, [and are] likely to
stabilise in the coming months.”
Brent clears
$42 but glut
fears weigh
JESSICA MORRIS
@jssmorris
GLOBAL oil climbed above $42 per
barrel yesterday, but concern on the
pace of the market recovery remains.
Brent crude, the global
benchmark, rose 1.60 per cent to
$42.47 per barrel in evening trading.
West Texas intermediate, the US
benchmark, rose 1.82 per cent to
$40.23.
Sentiment turned negative amid a
glut of oil products which will clip
refinery demand, expectations for
Libya to restart exports, higher
output from the Organisation of the
Petroleum Exporting Countries
(Opec) and more US oil rigs.
US government data released
yesterday showed oil stocks rose by
1.4m barrels last week, however
gasoline stores fell.
“The US shale gas industry has
dealt with low oil prices extremely
well and adapted far quicker than
Opec anticipated when it decided to
let the market drive out higher cost
producers,” Craig Erlam, senior
market analyst at Oanda, said.
“We’re now back looking at a
situation in which supply could pick
up considerably again.”
Rio Tinto will dig itself
out as profits cut by half
Recently joined City Giving Day
JESSICA MORRIS
@jssmorris
SHARES in Rio Tinto closed down
0.76 per cent to 2,423p per share
yesterday, after the miner’s first-half
profit fell to its weakest in 12 years.
The firm is struggling amid the
commodities rout, which has
weighed heavy on copper, iron ore
and coal prices.
Underlying earnings tumbled 47
per cent year-on-year in the first
half to $1.56bn (£1.17bn), from
OLIVER GILL
@ojngill
SHARES in temporary power
provider Aggreko dived by 15 per
cent in early trading yesterday
after it announced profits for the
first six months of 2016 were
down nearly a third on the
previous year.
“The trading environment in
this first six months has been
difficult, with the lower oil price
continuing to impact a number of
our markets,” said chief executive
Chris Weston.
Revenues were down 12 per
cent at £685m and one of
$2.92bn. But this beat analysts’
forecasts of around $1.46bn.
Net debt also beat expectations,
falling six per cent to $12.9bn.
Its dividend plunged 58 per cent
to 45 cents per share.
New chief executive, Jean-
Sebastien Jacques, said he was
focused on shoring up the firm by
cost cutting and did not deliver am
optimistic outlook for the metals
markets.
“We expect market conditions to
remain challenging and volatile,”
Aggreko’s two main division –
power solutions – was a key
detractor, down 17 per cent.
The other division – rental
solutions – fared comparatively
better, just five per cent down.
Despite the gloomy headlines
Weston remained confident that
the Glasgow-based company could
achieve full-year profits just
below the £252m attained in 2015.
“We are holding our guidance
for the full year while recognising
the importance of securing key
contract extensions and the
seasonal weighting of our North
American business to the second
half [of the year],” he said.
he told Reuters yesterday..
Jacques, who took over from Sam
Walsh who retired on 1 July, is
widely expected to deliver a plan to
grow in the future. This puts him
at odds with rivals, such as BHP
Billiton and Anglo American, who
are narrowing their focus.
“The global economy seems stuck
in a subdued low-productivity
growth pattern which would
indicate that continued caution is
required for the second half,” Rio
said.
Aggreko reports difficult first six months as
sales slide makes its share price short-circuit
Cash flow performance was
undermined by a $17m (£12.7m)
provision against debts from
utilty customers. Working capital
movements absorbed £99m of
cash in total meaning that halfyear
operational cash flow
decreased from £255m in 2015 to
£100m in 2016.
Aggreko’s share price ended
the day nearly 13 per cent down.
indicating the market was
struggling with Weston’s
optimism of a “strong level of
order intake in power solutions”
and that the FTSE 250 company
was making “good progress”
against its business priorities.
Why are you supporting City Giving
Day?
City Giving Day is a fantastic
opportunity to remind our staff of the
CSR opportunities available to them
and to encourage everyone to get
involved in volunteering and
supporting our local communities.
Which charities do you support?
We have a long-standing commitment
to support the residents of East
London. We provide free legal advice
at our weekly Poplaw Free Legal
Advice Clinic 50 weeks a year, we cook
breakfast for the homeless every other
Tuesday at the Whitechapel Mission,
CHARITY IN ACTION
Through our
partnership with
City Gateway,
Edward Corbett
completed a one
year
apprenticeship at
Dentons which led
to a full-time job
with Dentons in
Marketing.
we support young people at City
Gateway by hosting Employability
Sessions and providing
apprenticeship places, and we help
vulnerable, unemployed men into
employment by providing interview
clothing and volunteers at Suited &
Booted.
How will you celebrate CGD?
Through a social media campaign, we
will remind staff of the charities we
support, how they can volunteer and
advertise our up-coming annual CSR
Fair when staff can meet the charities
and some of the people they support,
as well as sign up to volunteer.
City Gateway gave
me the skills needed
for the workplace
and supported me
throughout my
apprenticeship. As a
result, I am now
more confident and
well-rounded.
Edward Corbett
REGISTER NOW AT
WWW.THELORDMAYORSAPPEAL.ORG/CGD

14 MARKETS THURSDAY 4 AUGUST 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
Banks HSBC and
StanChart can’t
offset FTSE miners
WEAKER commodities
and property-related
stocks yesterday offset a
HSBC-led banking stock
rally, forcing the FTSE
to a three-week low. The blue-chip
FTSE 100 index was down 0.2 per
cent at 6634.40 points at its close.
Banks were the top performers,
with HSBC shares up 4.5 per cent as
investors cheered the bank’s plans to
buy back up to $2.5bn (£1.8bn) of its
shares, despite reporting a 29 per
cent slump in its first-half profits.
Other banks also gained, with
both Royal Bank of Scotland rising
2.6 per cent and Standard
Chartered climbing 4.2 per cent
after it reported a return to profit.
However, commodities-related
stocks lost ground again. Shares in
Rio Tinto were down 0.8 per cent,
after the global miner reported a 47
per cent slump in first-half profits to
its weakest in 12 years. However,
losses were limited as it surprised
the market with a higher-thanexpected
dividend.
Among other movers, fashion
retailer Next rose 4.1 per cent after
reporting a pick up in sales.
FTSE
6,800 3 August
6,750
6,700
6,650
6,600
28 July 29 July 1 Aug 2 Aug
6,634.40
3 Aug
CITY MOVES WHO’S SWITCHING JOBS
INTERCONTINENTAL HOTELS
3,125
3,100
3,075
3,050
3,025
3,000
P
28 July
3 August
3,087
29 July 1 Aug
2 Aug 3 Aug
Standard & Poor’s has lowered its rating on Intercontinental Hotels from “buy” to
“hold” after a recent share price rally. Analysts said the group’s earnings from the
first half of 2016 – reported on Tuesday – were in line with expectations. They said:
“After the payout of $1.5bn via special dividend in May 2016, we see limited catalyst
in [the company] and believe the current share price has fairly reflected its positives.”
NATIONAL EXPRESS
345.00
342.50
340.00
337.50
335.00
332.50
330.00
P
28 July
29 July 1 Aug
3 August
335
2 Aug 3 Aug
Liberum has a “hold” rating on National Express with a target price of 340p. Analysts
raised their forecasts for the company on positive currency translation following the
UK’s vote to quit the European Union. Liberum noted that National Express has a
“wide range of operations across the UK, Europe and North America” and that there
has been a “positive translation impact on the group’s non-UK earnings”.
Wall St slick as
oil prices rise
WALL Street advanced
modestly yesterday after a
sharp rise in oil prices boosted
energy shares, while better-thananticipated
data on the labour market
helped financial stocks.
US oil prices jumped more than
three per cent to settle at $40.83 a
barrel after a larger-than-expected
gasoline draw offset a surprise build in
US crude stockpiles. The S&P energy
index was up 1.8 per cent as the best
performing of the 10 major S&P
groups.
Data showed the US private sector
added 179,000 jobs in July, beating
estimates of 170,000. The report
comes ahead of the more
comprehensive national payrolls
report on Friday.
The Dow Jones industrial average
rose 41.23 points, or 0.23 per cent, to
18,355, the S&P 500 gained 6.75
points, or 0.31 per cent, to 2,163.78
and the Nasdaq Composite added
22.01 points, or 0.43 per cent, to
5,159.74. Healthcare shares were
lower, weighed down by a 2.7 percent
drop in Biogen.
COLLIERS INTERNATIONAL
Colliers International has
appointed Patricia Walsh as its
new head of property
management accounts
following the retirement of
Steve Tutton after 12 years of
service. Patricia joins Colliers
from Lee Baron where for the
last seven years she has held
the position of director of
finance. Prior to that she held
positions at Cushman and Wakefield and Conrad
Ritblat, now Colliers International. Based in London,
Patricia will be responsible for the account
management for over 150 clients and properties
across the UK.
CLYDE & CO
Global law firm Clyde & Co has appointed Robert
Parson as partner in its global trade finance group.
With over 25 years’ experience Robert has a strong
knowledge of trade and commodities and the financial
structures which support the industry. He joins from
Reed Smith where he was a partner in the energy and
natural resources group. Prior to joining Reed Smith
Robert spent six years at Clyde & Co. He specialises in
commodity and trade finance law; structuring deals
and complex cross border financing arrangements for
major banks and traders .
APRIROSE
Aprirose, a real estate investment company, has
appointed Richard Hughes as head of asset
management and Philip Ross as asset manager, as the
company continues to expand and diversify its
property portfolio. Richard previously worked at
Blackstone, Edinburgh House Estates and McArthur
Glen, where he was responsible for over £100m of
investment deals and £300m of development
schemes. He has over 20 years of experience in
property development. Philip joins the real estate
investment firm from JLL, where he was senior
surveyor – property and asset management. Prior to
that, Philip worked at David Brown, Churchgate
Premier Homes, and GVA.
MUZINICH
Corporate credit specialist Muzinich has appointed
Grant Davidson director of its UK private debt team. He
joins the firm from Investec where he was senior
origination director for growth and acquisition finance,
responsible for the sourcing and execution of deals for
UK mid-market businesses with EBITDAs of up to
£15m. Grant has also spent time in the industry as a
divisional chief financial officer for a private equity
backed company and worked for eight years at
Lyceum Capital leading equity investments in the UK
lower mid-market. Grant brings Muzinich’s private
debt team in the UK to seven strong. The firm has
seven offices in Europe, including two in the UK,
London and Manchester.
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
Open an account at spreadco.com
Leveraged products are high risk,
losses may exceed deposits

CITYAM.COM
THURSDAY 4 AUGUST 2016 FEATURE
15
CROWDFUNDING
How the chancellor can
turbocharge SME investment
Robert Walsh says now is the time to address
illiquidity and make tax relief more generous
PHILIP Hammond was quick to
rule out a post-Brexit Budget
after being installed as the
new chancellor. Number 11’s
latest resident, who will wait
instead until the Autumn Statement,
has also stated that he will support
the City, and wider business, as the
UK exits the EU. The challenge,
Hammond has observed, is to send
“signals of reassurance” and kickstart
investment and spending
decisions.
While the integrity of the Square
Mile and big business will be among
the first on his hit list, he must also
step up to the plate to encourage
greater investment in early-stage companies
and UK entrepreneurialism. He
must put into action practical measures
that boost investment in these
areas. And regardless of what else is in
his in-tray, now is the perfect time to
do it.
The referendum has caused worrying
illiquidity and unease in the market.
Moreover, the expectation of an
interest rate cut to 0.25 per cent this
afternoon – a record low – makes
moves towards sensible investing even
more important.
To be clear: investing in new companies
is not a liquid move, but at least
the illiquidity of the investment is up
front and transparent. There are no
illusions. It also represents returns
which are potentially more
rewarding, on various levels. The right
investment means putting money
into an enterprise which will grow,
employ more staff, disrupt markets
and, in many cases, export abroad. For
those who have their own entrepreneurial
background, it allows the
path into angel investing, something
which Britain’s young businesses
need more of.
The Treasury could help by increas-
ing the tax break ceilings of both the
Enterprise Investment Scheme (EIS),
and the Seed Enterprise Investment
Scheme (SEIS). Since EIS was launched
in 1993-94, over 24,500 individual
companies have received investment
through the scheme, and over £14bn
of funds have been raised. In 2014-15,
figures show that 2,185 companies
received investment through the
SEIS and £168m of funds were
raised.
In a similar vein, Hammond should
consider extending SEIS from its
current ceiling of £100,000 per
tax year to £300,000. This would
benefit smaller companies that
are in their first two years of existence,
and could positively bolster
the growth of the Northern
Powerhouse. It’s worth remembering
that, if it were a national economy,
the north of England would represent
the tenth largest in the EU.
As things currently stand, an
investor can put up to £1m to work
through EIS, and receive respective
tax breaks – 30 per cent on investments
up to £1m. Raising that by 25
per cent to £1.25m would be a smart,
proactive move from Number 11. It
would declare a firmer commitment
to growing new businesses in the UK
at a time when building from within
is much needed. It could also be
argued it will attract bigger players,
The Treasury
could help by
increasing the tax
break ceilings of
EIS and SEIS
and
send a signal to a
wider range of
investors that UK
early-stage, nonlisted
companies
are a huge part of
this country’s
future.
While most
people will
choose to capitalise
on these
tax reliefs via a
fund manager, an
increasingly popular
way to access EIS
and SEIS-compliant
companies is via equity
crowdfunding.
According to research
from Growthdeck, 66
per cent of all investment
opportunities listed on crowdfunding
platforms are EIS eligible, while 39
per cent offer investors SEIS – and
some are eligible for both. Although
some eligible firms are listed on Aim
or ISDX,
others are
harder to
access – and
crowdfunding
provides a way in.
And the sector is
evolving, offering
investors an increasingly
straightforward
route to a diversified
portfolio. There are growing
numbers of platforms
that insist on a round having a
lead investor, Syndicate Room
has raised the first equity
crowdfunding fund, and apps
like OFF3R enable investors to browse
deals across platforms, making it easier
to spread risk.
£ Robert Walsh is managing partner of
QVentures and a former investment
banker.
Finding income in a low-rate wasteland
WITH the Bank of England
widely expected to cut
interest rates this
afternoon, savers are
bracing themselves for a
further drop in the already pitiful
returns they are earning on deposit
accounts. According to data from
comparison site Moneyfacts, the
average five-year fixed rate bond
offered an interest rate of just 2 per
cent in June. The average rate on a
one-year cash Isa is a dire 1.14 per
cent – the lowest level recorded since
the introduction of the tax-free
wrapper in 1999. For many, equity
remains the only source of income.
Pensioners have also being
suffering. Driven by increasing life
expectancy and record-low bond
rates, levels of income provided by
annuities have plunged over the past
25 years. Back in the early 1990s, a
65 year old man with a pension fund
of £100,000 could quite easily secure
an income of around £15,000 a year
until death by purchasing a life
annuity. However, in 2016, an equally
large pension pot is unlikely to pay a
retiree more than £5,000 per
annum.
The situation has become worse
since Brexit, with many providers,
such as Aviva, Legal & General and
Standard Life, having cut their
annuity rates between 2 and 4 per
cent in the days following the
referendum results. With such low
rates of return on offer, those
approaching retirement and looking
for income might want to look at a
wider range of investment
instruments, which, while being
riskier, offer significantly higher
returns for investors.
Crowdfunded debt securities work
in a similar way to other
crowdfunding products, with a large
number of investors coming
together and collectively raising
money for companies looking for
loans.
They are similar to products
offered by the larger P2P-based
business lending market, but are
instead run by crowdfunding
platforms. The loans are issued for a
fixed period of time, provide a
consistent stream of earnings and
also carry a fixed rate of interest
which is paid by the borrower to the
lenders.
Here’s the exciting part. The rates
of interest offered on crowdfunded
debt securities typically range from 6
per cent to 12 per cent, depending
on the risk associated with the
business.
So at the top end, savers could be
getting returns which are 48 times
higher than the 0.25 per cent rate
widely expected to be set by the
Bank of England today. There could
also be tax benefits in the coming
months, with the UK government
expected to allow crowdfunded debt
securities to be included in the
recently-launched Innovative
Finance Isa.
As with any investment, the
returns on crowdfunded debt
securities are higher because the
risks are higher. Given the early
stage nature of the businesses
looking for money, some or all of the
invested capital could be lost if the
company defaults on the loan. And
any losses from crowdfunded debt
securities are not covered by the
Financial Services Compensation
Scheme (FSCS). But offering some
protection, the debt is often secured
against assets, which decreases the
risk for lenders as the asset can be
seized in case of a default on the
loan.
This is the worst time in history
for both savers and annuity buyers.
Investors who are inactive in
managing their money will get
safety from the banks, but will earn
next to nothing in return.
Crowdfunded debt products might
be riskier, but their higher rates of
return make them worth a look.
£ Tony De Nazareth is founder and
director of Crowd for Angels, which is
currently carrying out its own fundraising
round on its platform.

16 OPINION THURSDAY 4 AUGUST 2016
CITYAM.COM
FORUM
EDITED BY TOM WELSH
Want to know how AI might change
the world? Read science fiction
ARECENT book on the
future of warfare warned
that Britain’s pristine new
aircraft carriers will be vulnerable
to swarms of small,
semi-autonomous drones that could
not be stopped by conventional protective
weaponry. Another looked at
whether mass online gaming might
be used to recruit networks to attack
military or commercial targets. A
third raised the prospect of VIPs
being endlessly stalked by insectsized
camera drones.
In different ways, each could be catastrophic
for our security. But if you
are wondering how you missed
them, it might be because you were
looking in the wrong section at your
bookshop. For these warnings, in
truth not about Britain specifically,
were not contained in books on politics
or international relations.
Rather, they came in recent works by
science fiction novelists – in these
cases, Daniel Suarez and William
Gibson.
As the recent Chilcot Report into
the lessons we must learn from the
conflict in Iraq suggested, governments
spend a lot of time thinking
about the battles that have just been
fought and how to rectify the mistakes
previously made. What is true
in government is true in business
too: we tend to look backward, not
forward. Thinking about entirely
new threats that might arise in the
future is difficult and therefore rare.
This is why, in many ways, works of
science fiction are so useful for those
engaged in horizon scanning exercises
to think about future challenges
in the fields of foreign and security
policy, economics and business. The
THE OLYMPICS can teach you
as much about economics
as sport. So before they get
lost amid the excitement
and hurly burly of the
Games, here are 10 fundamental economic
lessons to take home from Rio:
1. Olympians have fought gladiatorial
battles to reach Brazil and the
competition is about to get even
more intense. In economics, as in
sport, competition is critical. The
most successful Olympians and the
most successful economies see competition
as their friend, not their
enemy. Whether it’s Usain Bolt, Mo
Farah or Andy Murray, these guys
thrive on competition, because they
know it makes the best even better.
2. The positive spur from competition
needs to be learned at a tender
age. Children compete with each
other at school but the education system
as a whole frowns on competition,
which is why most of it remains
in the hands of a public sector
monopoly. A monopoly state at the
school gate teaches the wrong lesson
in life to our children. Culture matters.
We need a culture of freedom
best and most sophisticated writers
of science fiction spend their lives
talking to scientists and technologists,
looking for the idea that might,
just might, plausibly change the
world as we know it. Equally importantly,
these writers’ ability to turn
often highly complex material into
stories that can be understood and
enjoyed by masses of people helps us
to confront the plausible impact on
people’s lives and livelihoods.
When Gibson came up with the
concept of “cyberspace” in his masterpiece
Neuromancer, he forced us
to consider a place where vast numbers
of computers across the world
were linked up in a network, offering
opportunities for criminals and
chancers that wished to exploit it.
When Suarez described the mass use
of semi-autonomous drones, he
made us think about a world in
which drones do more than just take
photographs or deliver packages to
our houses.
But while serious science fiction
has its uses, nothing irritates those
of us that work in the field of technology
more than bad science fiction
and its prophecies of an end to the
world as we know it or ultimate,
appalling doom. Watch any 1960s
film that depicts what life will be like
“in the year 2000” and you will see
the dangers of paying too much heed
to such visions of the future.
In my organisation’s area of expertise
– data science and Artificial
Intelligence (AI) – people jump all too
quickly to the most outlandish sci-fi
apocalyptic scenarios. This is unhelpful,
and a bad guide to decision-making
or policy development. Unlike
the sort of serious science fiction I
and competition, not all must have
prizes, to drive forward success.
3. While we don’t want a win-at-allcosts
mentality driven by bad sportsmanship
– there needs to be respect
and admiration for competitors – we
do want one that says second place
isn’t acceptable. All too often our
political leaders are happy with second,
third, fourth or fifth place.
That’s not the attitude of an
Olympian. Being happy in the middle
is the surest way to fail to reach Rio in
the first place. Where’s the vitality
that led to an economic empire spanning
the globe?
4. Free trade works. Trading (and
competing) at the global level has
expanded the world market and driven
up standards. The benchmark
isn’t local, regional or national, it’s
global.
5. If you’re going to compete with
the rest of the world, you need to be
able to get there. The lesson for
Heathrow expansion from sport is
simple. You’ll base your training
camp where the facilities are best and
the transport logistics most efficient.
Get the message, Boris?
Marc
Warner
The best and most
sophisticated writers
of science fiction
spend their lives
talking to scientists,
looking for the idea
that might, just
might, plausibly
change the world as
we know it
refer to above, there is a tendency to
“over-anthropomorphise” the threat
– always thinking of robots in
human form. This completely clouds
our ability to think realistically
about the nature of the
opportunities and challenges that
arise from AI.
AI is a powerful tool, and will
6. Government needs to get out the
way. Yes, it may have a key role in providing
core infrastructure (Olympic
stadiums), but that’s it. If you don’t
think the government has any role
managing Olympic teams, you also
have to ask whether it has the
required knowledge to manage or
intervene in any other sector of the
economy.
7. State corruption and collusion
(e.g. in avoiding doping checks) can
undermine a market so much that
the benefits of competition are completely
lost. The rule of law is essential
to an effective market and a
successful Olympics.
8. If voluntary exchange determines
pay levels in sport, that’s seen as fair.
Nobody seems to complain when
become ever more so. And, like any
tool, it can be used for positive or
negative means. Take autonomous
vehicles as an example; developments
could lead to both
autonomous cars and autonomous
weaponised drones. The incredible
upside – a dramatic reduction in
transport accidents, the third largest
cause of death for people under the
age of 35 – must be considered alongside
the harm that could be caused
by these weapons.
But this isn’t the first time that
humanity has faced this
conundrum. Over the course of our
history, we have made a great many
discoveries that have led to both
harm and good (think about even a
trivially simple technology likes
knives) and we have a reasonably well
developed strategy to manage them.
Through a series of technological,
cultural and political interventions,
we try to benefit from the upsides
while mitigating the downsides.
The modern complication is that
the rate of development of technology
is getting ever faster. Are our
politicians and institutions sufficiently
responsive to be able to build
policy that lets us capture only the
best parts of the inevitable revolutions
of the future? The truth is, I
don’t know, but the more familiar
our politicians and business leaders
are with the potential scenarios,
inspired by sci-fi and understood
through rational analysis, the more
we’ll be able to have reasoned debate.
£ Marc Warner is the co-founder and
chief executive of ASI, a London-based
data science and artificial intelligence
business (www.theasi.co).
Britain can make an Olympian out of its
economy with these 10 lessons from Rio
Graeme
Leach
Olympic superstars have pay packages
running into the millions. The
Olympic lesson goes further,
however. Olympians who don’t deliver
feel the consequences in lost sponsorship
income. Maybe we need
more of the Olympian spirit in the
boardroom as well.
9. Sport is emotional and this is one
of its great benefits. Billions will
scream and shout over the coming
weeks, not because they hate competition,
but because they’re inspired
by it. How can we capture the
Olympic spirit at work? Employers,
employees and customers can be persuaded
with facts, but they’ll be
inspired with emotion.
10. There can be an enabling role
for government in sport (e.g. lottery
funding) and the economy (where
there is market failure), but taken
too far (e.g. subsidies), diminishing
returns set in and performance gets
worse, not better.
£ Graeme Leach is chief executive and
chief economist of macronomics, a
macroeconomic, geopolitical and future
megatrends research consultancy.
DEBATE
Q: As a bitcoin
exchange loses
$65m in a hack,
will the cryptocurrency
ever be
more than an
alternative asset?
Ed
MacNair
YES
While this security breach is a set back, the
incident does not necessarily sound the
death knell for bitcoin that some are
predicting. Any form of currency which
exists in digital form – and for that we
should read all currency – has a significant
exposure to this type of threat.
Cybercriminals do not discriminate
between bitcoin, personal data, core
banking systems or business data: it is all
fair game nowadays as any digital asset
with value is now a target. The drop in
bitcoin’s value is more reflective of the
reputational whacking that an
organisation now takes when it suffers a
very public breach like this, as opposed to
being indicative of its long-term future as a
currency. As today’s threat landscape
becomes more advanced, securing any
company’s points of access to the internet
should be an absolute number one
priority. Bitcoin will recover, but exchanges
and the community more widely should
look to ensure it is proactively monitored,
and address vulnerabilities such as this in
a more effective way.
£ Ed MacNair is chief executive and
founder of CensorNet.
Nicolas
Debock
NO
Bitcoin was created to be an alternative
asset, so it should become nothing else. It
was designed to have the same attributes
as gold: there is a unique global quantity
(much like gold, there is finite number of
bitcoin), and it is non-replicable (using
whatever alchemy you can, you can’t
create fake bitcoin). Blockchain, the
underlying technology on which bitcoin is
built and used, is not an alternative asset
class but a technology that enables
decentralised, non-contestable, trustless
transactions. So bitcoin has “created”
something that can be more than an
asset class, but that is not equivocal to
saying it is one. Bitcoin tumbled because
a large exchange, Bitfinex, was hacked of
120,000 bitcoin. This represents roughly
0.75 per cent of bitcoin currently in
circulation. This encapsulates the current
risk of bitcoin as an asset class: the high
concentration of miners and exchanges. It
creates a problem similar to putting a
large amount of gold in one vault: it
would attract thieves.
£ Nicolas Debock is principal investor at
Balderton Capital.

CITYAM.COM
THURSDAY 4 AUGUST 2016
OPINION
17
WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum
LETTERS
TO THE EDITOR
Brexit and house
prices
[Re: Ignore the Brexit doom-mongers:
London house prices won’t crash,
yesterday]
Guy Gittins is right about the short term, but
who knows about the long term. It’s a myth
that foreign investors who never live in their
properties are responsible for the big
increases in prices in recent years. Equally, the
fall in sterling has made London housing
more attractive. But the top of the market has
been supported by non-UK nationals who
have come to work in London. If, for whatever
reason, they choose or are forced to leave the
UK, they will sell their properties, mimicking
the worrying moves we’ve seen in the
commercial property market recently.
M Knight
“The doom-mongers’ ulterior motives
demand scrutiny”. I suppose they would say
the same about the motives of the senior
sales director at Chestertons.
Name withheld
Rio controversy
[Re: Should the Olympics have been given
to an emerging market? yesterday
There’s no reason emerging markets
(especially the big ones) shouldn’t get the
Olympics, but a country in a deep recession
with an enormous corruption crisis should
have passed on the opportunity. A better
question is whether authoritarian states
should be allowed to host major sporting
events. China’s vast Olympic spending, Qatar’s
ridiculous World Cup in 40 degrees heat, and
Russia’s controversial Sochi spring to mind.
Chris Scott
BEST OF
TWITTER
UK services, manufacturing
and construction PMIs all in
negative territory as a result
of the Brexit vote as
economists warned.
@D_Blanchflower
“Political elites” is the label
populists attach to people
who inform them of realities
they’d rather not deal with.
@prochovanec
US personal income growth
continues to slow – hard to
square with a need to raise
rates at any point soon at all.
@MarcusEconomics
Between Q1 2015 and Q1
2016, real household
disposable income per head
grew by 4.6 per cent.
@ONS
If BoE wants to do
something in August, it
should authorise (but not
yet enact) further QE. Rate
cuts’ll be counterproductive.
@andrew_lilico
Extremist parties always
split eventually because
they are, by definition, run
by people who don’t
understand nuance and
compromise. #Ukip
@Samfr
A Bank of England interest rate
cut is almost inevitable: It’s a
shame it’ll prove ineffective
IN ALL likelihood, today will see
the most predictable yet most
ineffective policy move from the
Bank of England in its 19 years
of monetary policy independence.
We should be concerned, especially
on the second point, because
at a time when the economy is slowing,
the limited ability of the Bank to
lend a helping hand should worry us
all, borrowers and savers alike.
I say predicable because Mark
Carney and the Monetary Policy
Committee themselves have pretty
much told us the outcome. At the
end of June, Carney described a
change in monetary policy over the
summer as “likely being required”,
while the minutes to the July MPC
meeting stated that “most officials
expect a loosening [of monetary policy]
in August”.
Carney was one of the primary
exponents of forward guidance in
the early part of the global financial
crisis. In other words, issuing a forecast
on the likely path of interest
rates, to provide assurance for the
economy as a whole. His dalliances
with forward guidance at the Bank
have been less successful, often misleading
markets (e.g. in mid-2014,
when he talked about the market’s
“underestimation” of the risks of a
hike). For this reason, the Bank has
little choice but to follow through on
recent hints, otherwise its credibility
will be severely dented.
In terms of impact, you only have
to look around the world at central
banks grappling to find ways to spur
Simon
Smith
The Bank has little
choice but to follow
through on its recent
hints about rates,
otherwise its
credibility will be
severely dented
:@cityam
economies and increase bank lending,
notwithstanding that it was illplaced
and priced lending that
contributed to the current global
financial crisis and many financial
crises before that.
The Bank of Japan is essentially out
of ideas and options after two
decades of stagnant growth and
deflation. Every change in policy this
year, most notably in January with
its move to negative rates, has been
met with a shrug of indifference
and, to cap it all, the yen rises regardless.
Governor Kuroda is not having a
good year; we can be sure of that.
In the Eurozone, the ECB arrived
late to the quantitative easing party
but is already struggling, with
around one-third of Eurozone debt
ineligible to be purchased by the
central bank because yields are
lower than its deposit rate. Instead,
the ECB has had to venture ever
deeper into ways of encouraging
lending, effectively paying banks to
lend money to businesses.
So what options does the Bank of
England have? A cut in Bank Rate to
0.25 per cent, from the current 0.50
per cent, is a given. But that alone
would probably disappoint. There is
already talk of banks possibly charging
depositors because they are having
such a tough time making
money.
So it seems likely that the Bank
will add some additional measures,
such as an expansion of the Funding
for Lending scheme started in 2012,
take-up of which has been flagging
of late. We could also see more conditional
forward guidance, pinning
the rate path more tightly to underlying
economic conditions.
In sum, though, once the dust settles,
the impact of today’s measures
could well add to the growing pile of
ineffective policy action of 2016.
£ Simon Smith is chief economist at
FxPro. He was previously chief
economist at Weavering Capital and
has also held positions with 4Cast and
Standard & Poor’s.
Fountain House,
3rd Floor, 130 Fenchurch Street,
London, EC3M 5DJ
Tel: 020 3201 8900
Fax: 020 7248 2711 Email: news@cityam.com
Certified Distribution
from 30/05/2016 till
3/06/2016 is 97,658
Editorial Editor Christian May | Deputy Editor Julian Harris
Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen
Sports Editor Frank Dalleres | Creative Director David Riley
Commercial Sales Director Jeremy Slattery |
Head of Distribution Gianni Cavalli
Distribution helpline
If you have any comments about
the distribution of City A.M.
please ring 0203 201 8955, or email
distribution@cityam.com
Our terms and conditions for external
contributors can be viewed at
cityam.com/terms-conditions
Printed by Trinity Mirror Printing,
St Albans Road, Watford Herts, WD24 7RG
JOIN OUR PRESTIGIOUS LIST OF WINNERS
Hosted by Julia Hartley-Brewer
THURSDAY 10 NOVEMBER, GRANGE ST PAUL’S HOTEL
Nominations for 12 categories are now open.
Visit CityAM.com/awards-nominate before 12 August 2016
to submit your nominations.
THE CATEGORIES
PERSONALITY OF THE YEAR £ BUSINESS OF THE YEAR £ BANK OF THE YEAR £ INSURANCE COMPANY OF THE YEAR £
LAW FIRM OF THE YEAR £ ACCOUNTANCY FIRM OF THE YEAR £ FINTECH COMPANY OF THE YEAR £ INNOVATIVE COMPANY OF
THE YEAR £ DEALMAKER OF THE YEAR £ INVESTOR OF THE YEAR £ ANALYST OF THE YEAR £ ENTREPRENEUR OF THE YEAR

Gold............................................................1358.90 -4.85
Silver .............................................................20.59 -0.12
Brent Crude ...................................................42.99 1.29
Krugerrand.................................................1352.30 -7.80
Palladium ....................................................714.00 1.00
Platinum.....................................................1165.00 15.00
Tin Cash Official .......................................18035.00 60.00
Lead Cash Official ......................................1802.50 -15.25
Zinc Cash Official .......................................2265.50 -15.00
Copper Cash Official..................................4844.25 -41.00
Aluminium Cash Official ............................1619.00 -16.25
Nickel Cash Official ..................................10645.00 -147.50
Aluminium Alloy Cash Official ..................1545.00 -25.00
Cocoa Futures............................................2993.00 97.00
Coffee 'C' Futures .........................................140.38 -0.97
Feed Wheat Futures.....................................127.50 0.25
Soybeans Futures Continuation Contract ..990.40 5.15
AIR LIQUIDE......................................................92.07 0.31 123.65 88.25
AIRBUS GROUP ................................................50.46 -0.80 68.50 48.07
ALLIANZ N........................................................127.35 0.65 170.00 118.35
ANHEUS.-BUSCH INBEV ..................................110.90 -0.20 124.20 87.73
ASML HLDG .......................................................97.27 -0.10 100.50 70.25
AXA ...................................................................17.05 -0.35 26.02 16.11
BANCO SANTANDER ...........................................3.50 -0.01 6.27 3.15
BASF N.............................................................69.00 0.03 82.51 56.01
BAYER N ...........................................................94.37 0.17 137.80 83.45
BBVA..................................................................4.84 0.05 9.08 4.50
BMW .................................................................75.81 0.40 104.85 63.38
BNP PARIBAS-A-..............................................42.04 0.23 61.00 35.27
CARREFOUR ......................................................21.69 0.10 31.41 20.90
DAIMLER N........................................................59.35 0.44 85.50 50.83
DANONE ............................................................67.81 0.02 69.50 51.73
DEUTSCHE BANK N ............................................11.20 -0.04 31.97 11.20
DEUTSCHE POST N.............................................27.32 0.85 28.28 19.55
DEUTSCHE TELEKOM N ......................................15.20 0.03 16.98 12.94
E.ON N ................................................................9.21 -0.03 12.36 7.08
ENEL ...................................................................4.03 -0.02 4.41 3.33
ENGIE ...............................................................14.30 0.05 18.12 12.34
ENI ....................................................................13.22 0.09 16.34 10.93
ESSILOR INTL ...................................................112.60 -0.70 124.55 94.08
FRESENIUS .......................................................65.95 -0.34 70.00 52.39
GENERALI...........................................................11.24 -0.03 18.14 9.76
IBERDROLA ........................................................5.96 -0.04 6.46 4.70
INDITEX ............................................................30.57 -0.04 35.38 26.00
ING GROUP ........................................................10.18 0.77 15.77 8.30
INTESA SANPAOLO ..............................................1.82 -0.01 3.52 1.52
L'OREAL...........................................................169.35 -0.90 178.95 140.40
LVMH...............................................................149.85 0.35 176.60 130.55
MUENCH RUECKVERS N ..................................148.40 0.70 193.65 140.90
NOKIA ................................................................4.96 -0.02 7.11 4.48
ORANGE ............................................................13.59 0.09 16.98 12.21
ROY.PHILIPS......................................................23.53 0.02 25.19 19.76
SAFRAN............................................................60.75 -0.47 72.45 48.87
SAINT GOBAIN...................................................37.23 0.05 44.84 31.47
SANOFI .............................................................73.42 -0.49 101.10 62.50
SAP ....................................................................77.14 0.09 79.15 53.91
SCHNEIDER ELECTRIC ........................................57.60 -0.37 65.26 45.32
SIEMENS N.......................................................96.80 0.67 100.90 77.91
SOCIETE GENERALE...........................................29.42 0.90 48.77 25.00
TELEFONICA........................................................8.48 0.03 13.91 7.45
TOTAL................................................................41.60 0.14 44.65 34.21
UNIBAIL-RODAMCO.........................................241.50 -1.55 257.85 212.05
UNICREDIT ..........................................................1.80 -0.04 6.22 1.70
UNILEVER CERT ................................................40.58 -0.56 42.84 32.86
VINCI ...............................................................67.09 -0.28 68.30 51.11
VIVENDI.............................................................17.40 -0.07 24.54 14.87
VOLKSWAGEN VZ .............................................117.80 -1.05 192.60 86.36
Price Chg High Low
EU SHARES
3M...................................................................178.38 0.02 182.27 134.00
ABBVIE.............................................................66.57 -0.21 70.78 45.45
ALPHABET-A ..................................................798.92 -1.20 810.35 593.09
ALPHABET-C....................................................773.18 2.11 789.87 565.05
ALTRIA GROUP .................................................66.37 -0.97 70.15 47.41
AMAZON.COM ................................................754.64 -5.94 770.50 451.00
AMERICAN EXPRESS.........................................63.83 0.36 81.66 50.27
AMGEN............................................................173.43 -0.72 177.52 130.09
APPLE .............................................................105.79 1.31 123.82 89.47
AT&T..................................................................43.14 -0.02 43.89 30.97
BANK OF AMERICA ...........................................14.48 0.35 18.09 10.99
BERKSHIRE HATHAWY-B.................................143.63 0.32 148.03 123.55
BOEING CO.......................................................131.87 0.27 150.59 102.10
BRISTOL-MYERSSQUIBB ...................................74.80 -0.25 77.12 51.82
CATERPILLAR....................................................82.03 0.79 84.29 56.36
CHEVRON........................................................100.61 1.02 107.58 69.58
CISCO SYSTEMS.................................................30.72 0.10 31.15 22.46
CITIGROUP ......................................................43.89 0.90 59.25 34.52
COCA-COLA CO .................................................43.64 0.11 47.13 36.56
COMCAST-A......................................................66.84 -0.06 68.36 50.01
DU PONT NEMOURS&CO ...................................68.91 0.18 75.72 47.11
EXXON MOBIL ...................................................87.49 0.45 95.55 66.55
FACEBOOK-A....................................................122.51 -0.58 128.33 72.00
GENERAL ELECTRIC.............................................31.13 0.08 33.00 19.37
GOLDMAN SACHS GROUP ...............................158.34 2.28 207.78 138.20
HOME DEPOT...................................................137.06 -0.16 139.00 92.17
IBM.................................................................160.67 0.09 163.60 116.90
INTEL ................................................................34.25 -0.31 35.93 24.87
JOHNSON & JOHNSON....................................123.90 -0.95 126.07 81.79
JPMORGAN CHASE...........................................64.66 1.01 69.42 50.07
MCDONALD'S....................................................117.52 -0.18 131.96 87.50
MEDTRONIC......................................................86.67 -0.97 89.27 55.54
MERCK..............................................................57.65 -0.68 60.07 45.69
MICROSOFT ......................................................56.97 0.39 57.29 39.72
NIKE -B-...........................................................54.75 -0.17 68.20 47.25
ORACLE.............................................................40.71 0.00 42.00 33.13
PEPSICO .........................................................108.04 -0.68 110.94 76.48
PFIZER..............................................................35.29 -1.10 37.39 28.25
PHILIP MRRS INT..............................................99.03 -0.94 104.20 76.54
PROCTER&GAMBLE...........................................85.97 -0.79 87.15 65.02
SCHLUMBERGER...............................................79.62 0.73 85.12 59.60
TRAVLR COMP ..................................................117.98 0.95 119.30 95.21
TWITTER.............................................................17.61 1.19 31.87 13.73
UNITEDHEALTH GROUP ..................................142.88 -0.29 144.48 95.00
UTD TECHNOLOGIES........................................106.29 0.02 108.49 83.39
VERIZON COMM ...............................................53.90 -0.10 56.95 38.06
VISA-A ..............................................................78.71 0.43 81.73 60.00
WAL-MART STORES..........................................72.94 -0.19 74.35 56.30
WALT DISNEY-DISNEY .....................................96.09 1.08 120.65 86.25
WELLS FARGO...................................................47.57 -0.13 58.02 44.50
WILLIS TOWERS ..............................................123.82 0.65 130.97 104.11
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 .............................-0.400 0.00
LIBOR Euro - 12 months.............................-0.065 0.00
LIBOR USD - overnight.................................0.418 0.00
LIBOR USD - 12 months ................................1.442 0.01
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..................................................0.41 0.01
US long bond yield........................................2.29 0.00
Euro Euribor ...............................................-0.375 0.00
The vix index................................................12.86 -0.51
The baltic dry index...................................641.00 -4.00
Markit iBoxx EUR ......................................232.69 -0.02
Markit iBoxx GBP........................................323.01 0.48
Markit iTraxx ..................................................71.11 1.41
Price Chg High Low
US SHARES
€/$ 1.1149 0.0047
€/£ 0.8369 0.0021
€/¥ 112.89 0.0033
/€ 1.1946 0.0052
/$ 1.3319 0.0029
/¥ 134.90 0.0130
BAE Systems . . . . . . . . .523.0 -3.5 545.5 425.5
Cobham . . . . . . . . . . . . .168.0 0.8 260.4 127.5
Meggitt . . . . . . . . . . . . .406.7 -15.5 509.5 346.5
QinetiQ Group . . . . . . . .223.0 -1.7 274.4 212.0
Rolls-Royce Holdi . . . . .751.0 -9.5 831.0 512.5
Senior . . . . . . . . . . . . . .214.4 -4.7 302.5 186.0
Ultra Electronics . . . . .1700.0 2.0 2026.0 1595.0
GKN . . . . . . . . . . . . . . . .295.6 9.2 321.7 248.6
Aldermore Group . . . . .134.5 -3.1 303.2 104.8
Barclays . . . . . . . . . . . . .148.3 2.3 282.6 127.2
BGEO Group . . . . . . . . .2687.0 7.0 2800.0 1570.0
CYBG . . . . . . . . . . . . . . .260.1 -1.4 289.5 182.8
HSBC Holdings . . . . . . .504.4 21.6 594.6 416.2
Lloyds Banking Gr . . . . .53.0 0.3 83.3 47.6
Metro Bank . . . . . . . . .2062.0 30.0 2250.0 1623.0
Royal Bank of Sco . . . . .190.6 4.8 348.9 148.9
Shawbrook Group . . . . .183.7 1.3 365.0 132.0
Standard Chartere . . . . .614.3 24.7 908.7 386.7
Virgin Money Hold . . . .266.9 7.7 450.8 205.0
Barr (A.G.) . . . . . . . . . . .521.0 8.5 614.5 455.3
Britvic . . . . . . . . . . . . . . .615.5 -5.0 738.5 584.0
Coca-Cola HBC AG . . . .1519.0 -15.0 1629.0 1255.0
Diageo . . . . . . . . . . . . .2128.0 -17.5 2192.0 1640.0
SABMiller . . . . . . . . . .4405.5 -11.5 4440.0 2877.5
Croda Internation . . . .3299.0 4.0 3362.0 2657.7
Elementis . . . . . . . . . . .207.0 -1.9 261.3 180.6
Johnson Matthey . . . .3144.0 -21.0 3276.0 2230.0
Synthomer . . . . . . . . . .375.0 6.4 375.6 275.1
Victrex plc . . . . . . . . . .1435.0 -14.0 1939.0 1367.0
AA . . . . . . . . . . . . . . . . .242.0 2.9 370.8 209.9
AO World . . . . . . . . . . . .145.0 1.0 189.3 120.5
Auto Trader Group . . . .374.3 0.9 449.6 313.8
B&M European Valu . . .254.7 -0.1 358.2 233.1
Brown (N.) Group . . . . .173.3 4.1 389.1 160.4
Card Factory . . . . . . . . .305.9 -3.6 399.0 299.6
Darty . . . . . . . . . . . . . . .170.5 0.5 174.0 68.0
Debenhams . . . . . . . . . . .55.1 0.1 90.2 52.9
DFS Furniture . . . . . . . . .211.5 -0.9 349.0 181.0
Dignity . . . . . . . . . . . .2640.0 -20.0 2834.0 2205.0
Dixons Carphone . . . . . .338.1 -3.4 500.0 281.6
Dunelm Group . . . . . . .850.0 -2.0 1018.0 741.0
Halfords Group . . . . . . .353.0 2.5 561.0 305.6
Home Retail Group . . . .154.6 0.6 181.5 89.7
Inchcape . . . . . . . . . . . .675.0 -2.0 836.5 581.0
JD Sports Fashion . . . .1276.0 12.0 1332.0 805.5
Just Eat . . . . . . . . . . . . .541.5 4.5 544.0 329.1
Kingfisher . . . . . . . . . . .337.9 2.6 379.7 306.7
Marks & Spencer G . . . .318.9 -1.8 550.5 285.2
Next . . . . . . . . . . . . . .5340.0 210.0 8015.0 4384.0
Pendragon . . . . . . . . . . .32.9 2.0 49.0 26.7
Pets at Home Grou . . . .238.9 -1.2 311.2 222.2
Saga . . . . . . . . . . . . . . .204.9 -0.8 217.8 173.9
Sports Direct Int . . . . . .283.8 1.5 817.5 252.2
Ted Baker . . . . . . . . . .2296.0 -11.0 3555.0 2124.0
WH Smith . . . . . . . . . .1540.0 0.0 1878.0 1455.0
Balfour Beatty . . . . . . . .223.3 2.8 272.5 190.8
CRH . . . . . . . . . . . . . . .2230.0 -14.0 2302.0 1637.0
Galliford Try . . . . . . . . .960.5 8.5 1813.0 785.0
Ibstock . . . . . . . . . . . . . .142.1 -0.4 225.0 114.7
Keller Group . . . . . . . . .821.5 -9.5 1065.0 728.5
Kier Group . . . . . . . . . .1052.0 5.0 1513.0 932.0
Marshalls . . . . . . . . . . .264.9 1.6 370.8 206.5
Polypipe Group . . . . . .238.0 0.6 362.0 221.5
Drax Group . . . . . . . . . .316.0 -12.6 357.2 207.6
SSE . . . . . . . . . . . . . . . .1509.0 6.0 1628.0 1321.0
Halma . . . . . . . . . . . . .1032.0 -3.0 1053.0 713.0
Morgan Advanced M . . .267.1 1.1 356.8 192.3
Renishaw . . . . . . . . . . .2537.0 37.0 2601.0 1600.0
Spectris . . . . . . . . . . . .1847.0 -26.0 1970.0 1442.0
Aberforth Smaller . . . .968.0 6.0 1216.0 849.0
Alliance Trust . . . . . . . .553.0 -0.5 568.0 440.1
Bankers Inv Trust . . . . .625.5 -1.0 653.0 522.0
BH Macro Ltd. GBP . . . .1925.0 -15.0 2103.0 1920.0
British Empire Tr . . . . . .538.0 0.0 548.5 412.0
Caledonia Investm . . .2343.0 -29.0 2511.0 2112.0
City of London In . . . . .392.0 -0.8 404.7 341.5
Edinburgh Inv Tru . . . .698.5 0.5 728.0 620.0
Electra Private E . . . . .3759.0 -15.0 4019.0 3175.0
Fidelity China Sp . . . . . .154.7 -2.8 160.7 110.5
Fidelity European . . . . .172.9 0.4 181.8 151.2
Finsbury Growth & . . . .640.0 -3.5 651.5 532.5
Foreign and Colon . . . .477.9 -2.1 484.0 391.2
GCP Infrastructur . . . . . .126.5 0.1 127.4 114.8
Genesis Emerging . . . .566.0 -8.0 584.0 400.5
HarbourVest Globa . . .920.0 0.0 1377.5 825.0
HICL Infrastructu . . . . . .176.6 0.0 177.4 150.2
International Pub . . . . .158.2 -0.1 159.8 130.3
John Laing Infras . . . . . .136.4 0.1 136.7 114.0
JPMorgan American . . .323.5 -1.5 333.5 243.0
JPMorgan Emerging . .680.0 3.0 689.5 483.0
Mercantile Invest . . . .1606.0 -6.0 1838.0 1375.0
Monks Inv Trust . . . . . .470.3 -0.8 482.5 361.1
Murray Internatio . . . .1039.0 2.0 1082.0 742.5
NB Global Floatin . . . . . .92.5 -0.4 98.0 84.6
P2P Global Invest . . . . .819.0 -6.5 1090.0 804.0
Perpetual Income . . . .379.3 -1.2 424.4 332.0
Personal Assets T . . .39600.0 -50.040080.033130.0
Polar Capital Tec . . . . . .724.0 -2.0 733.0 503.5
RIT Capital Partn . . . . .1716.0 9.0 1774.0 1436.0
Riverstone Energy . . . .961.5 8.5 977.0 720.0
Scottish Inv Trus . . . . . .668.0 -4.0 680.0 544.5
Scottish Mortgage . . . .293.0 0.2 298.0 220.6
Temple Bar Inv Tr . . . .1082.0 6.0 1169.0 940.0
Templeton Emergin . . .550.0 -3.0 559.0 371.5
The Renewables In . . . .105.4 -0.6 106.5 90.3
TR Property Inv T . . . . .289.8 -1.6 314.9 241.7
Witan Inv Trust . . . . . . .796.0 -1.0 808.5 683.0
Woodford Patient . . . . .89.8 1.5 119.3 81.0
Worldwide Healthc . .2076.0 -8.0 2110.0 1596.0
3i Group . . . . . . . . . . . . .615.5 -2.5 622.0 389.8
3i Infrastructure . . . . . . .191.0 0.3 191.6 163.6
Aberdeen Asset Ma . . . .311.3 3.4 364.5 209.3
Allied Minds . . . . . . . . .358.8 -4.4 535.0 267.0
Arrow Global Grou . . . . .211.8 0.3 288.0 178.3
Ashmore Group . . . . . .329.2 2.3 354.2 196.4
Brewin Dolphin Ho . . . .244.7 1.4 319.3 210.2
Charles Taylor . . . . . . . .270.0 -1.0 289.0 221.0
City of London In . . . . .340.0 5.0 367.5 285.0
Close Brothers Gr . . . .1245.0 3.0 1547.0 989.5
CMC Markets . . . . . . . . .278.0 1.0 290.8 219.0
Hargreaves Lansdo . . .1280.0 -12.0 1525.0 1054.0
Henderson Group . . . . .230.0 -2.6 312.0 195.0
ICAP . . . . . . . . . . . . . . . .438.3 1.2 525.0 381.8
IG Group Holdings . . . .879.5 -2.0 886.0 690.0
Intermediate Capi . . . .578.0 1.0 671.9 454.2
International Per . . . . . .257.6 0.3 426.0 219.0
Investec . . . . . . . . . . . .444.6 0.4 592.5 402.7
IP Group . . . . . . . . . . . . .150.1 0.1 259.1 120.4
John Laing Group . . . . .223.0 -1.0 230.2 187.0
Jupiter Fund Mana . . . .410.3 -2.4 475.1 328.9
Liontrust Asset M . . . . .294.5 -1.5 372.5 235.0
LMS Capital . . . . . . . . . . .57.5 -1.5 80.0 54.8
London Finance & . . . . .38.5 0.0 40.5 34.0
London Stock Exch . . .2724.0 -22.0 2906.0 2123.0
Man Group . . . . . . . . . . .113.5 0.3 175.7 107.3
OneSavings Bank . . . . .206.6 3.4 405.6 176.2
Paragon Group Of . . . .263.2 -2.8 444.8 227.4
Provident Financi . . . .2662.0 -38.0 3634.0 2164.0
PureTech Health . . . . . .156.0 6.0 170.5 120.0
Rathbone Brothers . . .1788.0 -1.0 2359.0 1590.0
Real Estate Credi . . . . . .158.0 0.5 183.0 143.0
Record . . . . . . . . . . . . . . .25.3 0.0 38.8 22.1
S&U . . . . . . . . . . . . . . .2350.0 20.0 2610.0 1992.5
Sanne Group . . . . . . . .380.0 0.5 449.0 263.1
Schroders . . . . . . . . . .2580.0 -4.0 3209.0 2049.0
SVG Capital . . . . . . . . . .544.5 0.5 564.0 436.0
Tullett Prebon . . . . . . . .342.5 9.7 414.8 275.0
VPC Specialty Len . . . . . .80.0 0.0 104.0 77.0
Walker Crips Grou . . . . .44.8 0.0 52.5 41.3
BT Group . . . . . . . . . . . .408.6 5.0 499.8 375.9
TalkTalk Telecom . . . . .218.2 -4.1 323.0 189.5
Telecom Plus . . . . . . . .1034.0 -6.0 1206.0 815.5
Booker Group . . . . . . . .173.0 -1.1 190.0 149.4
Greggs . . . . . . . . . . . . .1034.0 -15.0 1320.0 884.0
Morrison (Wm) Sup . . . .180.1 1.0 209.4 139.0
Ocado Group . . . . . . . . .255.4 -2.6 407.1 208.1
Sainsbury (J) . . . . . . . . .222.5 0.2 292.5 214.6
SSP Group . . . . . . . . . . .322.6 1.2 325.0 264.0
Tesco . . . . . . . . . . . . . . .154.0 -0.7 218.9 139.2
UDG Healthcare Pu . . . .594.0 -1.0 625.0 460.3
Associated Britis . . . . .2830.0 112.0 3599.0 2350.0
Cranswick . . . . . . . . . .2337.0 -9.0 2538.0 1536.0
Dairy Crest Group . . . . .623.5 5.5 697.0 504.5
Greencore Group . . . . . .325.1 2.4 392.4 273.2
Tate & Lyle . . . . . . . . . .720.0 -1.0 723.5 502.0
Unilever . . . . . . . . . . .3478.0 -54.0 3678.5 2524.0
Mondi . . . . . . . . . . . . . .1534.0 4.0 1611.0 1124.0
Centrica . . . . . . . . . . . . .230.5 -3.4 272.3 183.6
National Grid . . . . . . . .1061.5 -13.5 1130.5 818.7
Pennon Group . . . . . . .880.0 -6.5 945.5 713.0
Severn Trent . . . . . . . .2395.0 -30.0 2478.0 2024.0
United Utilities . . . . . . .981.0 -24.0 1039.0 828.0
RPC Group . . . . . . . . . . .839.0 -14.0 863.0 575.6
Smith (DS) . . . . . . . . . . .387.6 -3.6 421.0 331.2
Smiths Group . . . . . . .1242.0 -9.0 1266.0 863.5
Smurfit Kappa Gro . . .1683.0 -43.0 2783.0 1584.0
Vesuvius . . . . . . . . . . . . .357.1 -2.4 416.7 270.6
Price Chg High Low
Assura . . . . . . . . . . . . . . .58.9 -0.3 61.8 49.2
Mediclinic Intern . . . . .1059.0 14.0 1191.0 814.0
NMC Health . . . . . . . . . .1127.0 8.0 1302.0 700.0
Smith & Nephew . . . . .1233.0 -8.0 1310.0 1051.0
Spire Healthcare . . . . .325.9 -5.6 401.6 279.9
Barratt Developme . . .422.0 -6.5 662.5 332.6
Bellway . . . . . . . . . . . .2016.0 -22.0 2848.0 1689.0
Berkeley Group Ho . . .2538.0 -61.0 3757.0 2270.0
Bovis Homes Group . . .782.0 -13.0 1201.0 627.0
Crest Nicholson H . . . . .403.2 -12.1 604.0 335.0
McCarthy & Stone . . . . .168.0 0.7 287.0 140.3
Persimmon . . . . . . . . .1636.0 -46.0 2219.0 1289.0
Reckitt Benckiser . . . .7327.0 -72.0 7692.0 5510.0
Redrow . . . . . . . . . . . . .322.9 -8.4 499.2 275.6
Taylor Wimpey . . . . . . .148.7 -2.9 210.3 115.8
Bodycote . . . . . . . . . . . .579.5 2.5 687.5 494.0
Hill & Smith Hold . . . . .1075.0 16.0 1075.0 643.5
IMI . . . . . . . . . . . . . . . .1014.0 -9.0 1081.0 742.0
Rotork . . . . . . . . . . . . . .198.5 2.0 222.0 152.7
Spirax-Sarco Engi . . . .3970.0 21.0 4012.0 2725.0
St James's Place . . . . . .907.5 -7.5 1023.0 716.0
Standard Life . . . . . . . .300.2 2.3 444.3 262.1
4Imprint Group . . . . . .1542.0 32.0 1542.0 1100.0
Ascential . . . . . . . . . . . .242.3 -7.7 272.4 200.0
Bloomsbury Publis . . . .168.3 -0.3 174.0 144.3
Centaur Media . . . . . . . .35.0 0.3 85.5 33.5
Creston . . . . . . . . . . . . . .95.5 0.5 162.0 84.0
Entertainment One . . . .194.0 -1.5 293.4 130.0
Euromoney Institu . . .1020.0 -5.0 1083.0 852.5
Future . . . . . . . . . . . . . . . .8.9 -0.0 11.5 7.9
Haynes Publishing . . . .110.0 0.0 126.5 99.0
Informa . . . . . . . . . . . . .705.5 -3.5 755.5 543.0
ITE Group . . . . . . . . . . . .165.8 -2.5 184.5 128.8
ITV . . . . . . . . . . . . . . . . .195.0 0.1 278.7 154.0
Johnston Press . . . . . . . .13.8 0.0 116.3 13.3
Moneysupermarket. . . .299.1 -2.9 377.1 233.5
Pearson . . . . . . . . . . . . .883.0 -1.5 1224.0 657.5
Relx plc . . . . . . . . . . . .1406.0 -28.0 1456.0 1011.0
Rightmove . . . . . . . . .4070.0 9.0 4250.0 3173.0
Sky . . . . . . . . . . . . . . . .895.0 -1.0 1140.0 797.0
STV Group . . . . . . . . . . .335.0 20.0 515.0 304.0
Tarsus Group . . . . . . . . .271.3 -1.5 275.0 204.0
Trinity Mirror . . . . . . . . . .79.3 0.3 182.8 73.5
UBM . . . . . . . . . . . . . . . .661.0 -5.0 673.5 477.9
Weir Group . . . . . . . . .1429.0 21.0 1565.0 787.5
Evraz . . . . . . . . . . . . . . .162.0 -0.5 171.2 56.2
BBA Aviation . . . . . . . .256.4 0.3 258.5 150.2
Clarkson . . . . . . . . . . .1898.0 18.0 2797.0 1691.0
Royal Mail . . . . . . . . . . .502.0 -0.5 541.0 413.3
Admiral Group . . . . . . .2174.0 -37.0 2219.0 1433.0
Beazley . . . . . . . . . . . . .388.3 -12.6 403.1 318.4
Direct Line Insur . . . . . .391.0 -8.9 414.3 333.3
esure Group . . . . . . . . .270.0 -0.9 288.1 223.7
Hastings Group Ho . . . .194.7 3.6 195.2 149.8
Hiscox Limited (D . . . .1054.0 -32.0 1099.0 867.0
Jardine Lloyd Tho . . . . .959.5 -1.5 1063.0 778.0
Lancashire Holdin . . . .594.0 -11.0 759.0 518.5
RSA Insurance Gro . . . .498.2 1.5 526.5 373.2
Aviva . . . . . . . . . . . . . . .385.0 -2.6 532.0 346.2
JRP Group . . . . . . . . . . .100.5 -2.1 199.5 96.0
Legal & General G . . . . .205.4 0.1 276.3 165.0
Old Mutual . . . . . . . . . .208.0 -0.8 229.1 149.4
Phoenix Group Hol . . . .796.5 -5.0 943.5 719.0
Prudential . . . . . . . . . .1309.0 -3.0 1577.0 1087.0
Wireless Group . . . . . . .306.0 -1.0 312.0 146.1
WPP . . . . . . . . . . . . . . .1677.0 -10.0 1698.0 1304.0
Zoopla Property G . . . .290.0 1.8 337.8 199.3
Acacia Mining . . . . . . . .582.5 -7.5 595.9 156.6
Anglo American . . . . . .835.4 0.4 848.8 221.1
Antofagasta . . . . . . . . .492.4 -4.1 615.0 346.1
BHP Billiton . . . . . . . . .948.6 11.2 1209.0 580.9
Centamin (DI) . . . . . . . .168.9 0.5 170.0 53.8
Fresnillo . . . . . . . . . . . .1941.0 -14.0 2010.0 588.0
Glencore . . . . . . . . . . . .184.4 -1.4 206.0 68.6
Hochschild Mining . . . . .291.5 3.3 302.4 39.5
Kaz Minerals . . . . . . . . .159.9 -2.0 190.0 72.7
Polymetal Interna . . . . .1117.0 -2.0 1136.0 427.1
Randgold Resource . .8980.0 -45.0 9715.0 3625.0
Rio Tinto . . . . . . . . . . .2423.0 -18.5 2635.0 1577.5
Vedanta Resources . . . .535.0 -8.0 603.5 205.8
Inmarsat . . . . . . . . . . . .780.5 -7.5 1148.0 689.5
Vodafone Group . . . . . .230.3 3.3 246.1 200.2
BP . . . . . . . . . . . . . . . . .415.0 1.1 461.8 310.3
Cairn Energy . . . . . . . . . .176.1 4.4 231.5 127.2
Royal Dutch Shell . . . .1836.5 -12.5 2107.5 1266.0
Royal Dutch Shell . . . .1905.0 -10.5 2148.0 1277.5
Tullow Oil . . . . . . . . . . . .185.5 1.6 281.4 118.2
Amec Foster Wheel . . . .436.1 13.5 839.5 327.6
Petrofac Ltd. . . . . . . . . .746.5 9.0 982.0 663.0
Wood Group (John) . . .660.5 9.5 699.5 534.5
Burberry Group . . . . . .1293.0 5.0 1613.0 1041.0
PZ Cussons . . . . . . . . . . .342.1 10.1 350.2 249.3
Supergroup . . . . . . . . .1570.0 -18.0 1714.0 1184.0
AstraZeneca . . . . . . . .5016.0 14.0 5066.0 3774.0
BTG . . . . . . . . . . . . . . . .640.0 -7.5 728.0 520.5
Circassia Pharmac . . . . .95.0 1.0 353.5 82.3
Dechra Pharmaceut . .1323.0 4.0 1331.0 912.0
Genus . . . . . . . . . . . . .1868.0 27.0 1892.0 1281.0
GlaxoSmithKline . . . . .1672.5 -17.5 1700.5 1237.5
Hikma Pharmaceuti . .2668.0 -4.0 2684.0 1704.0
Indivior . . . . . . . . . . . . .295.3 3.5 297.0 130.8
Shire Plc . . . . . . . . . . . .5015.0 -30.0 5470.0 3480.0
Vectura Group . . . . . . . .145.5 -2.0 188.5 144.7
Capital & Countie . . . . .276.8 -4.1 473.4 263.7
CLS Holdings . . . . . . . .1350.0 2.0 1970.0 1163.0
Countryside Prope . . . .222.5 -7.1 278.5 173.2
Countrywide . . . . . . . . .230.3 0.3 522.5 225.6
Daejan Holdings . . . . .5350.0 -50.0 6595.0 4411.0
F&C Commercial Pr . . . . .121.1 -2.2 148.7 102.1
Grainger . . . . . . . . . . . . .217.6 -1.7 254.0 193.1
Kennedy Wilson Eu . . .975.0 -10.0 1220.0 888.5
Safestore Holding . . . . .362.1 -7.9 400.5 283.0
Savills . . . . . . . . . . . . . .682.0 -11.5 986.5 548.5
St. Modwen Proper . . . .272.1 -3.6 493.6 222.2
UK Commercial Pro . . . .79.0 0.0 88.5 65.0
Unite Group . . . . . . . . . .613.0 -11.5 702.5 560.0
Big Yellow Group . . . . . .715.0 -13.5 886.5 654.5
British Land Comp . . . .650.5 -9.0 877.0 544.5
Derwent London . . . . .2778.0 -27.0 3880.0 2257.0
Great Portland Es . . . . .656.0 -11.5 889.5 536.0
Hammerson . . . . . . . . .545.0 -6.5 685.5 468.6
Hansteen Holdings . . . .104.9 -1.6 124.1 95.4
Intu Properties . . . . . . .295.0 -5.4 353.2 255.7
Land Securities G . . . . .1074.0 -8.0 1352.0 910.0
LondonMetric Prop . . . .160.8 -1.3 171.5 134.9
Redefine Internat . . . . . .42.4 -0.9 57.5 40.5
SEGRO . . . . . . . . . . . . . .434.4 -4.4 463.8 370.5
Shaftesbury . . . . . . . . .908.0 -13.0 971.0 813.0
Tritax Big Box Re . . . . . .134.4 -1.0 138.9 114.7
Workspace Group . . . . .672.0 -19.5 987.0 577.0
Aveva Group . . . . . . . .1840.0 -4.0 2319.0 1237.0
Computacenter . . . . . .804.0 3.0 879.0 694.0
Fidessa Group . . . . . . .2521.0 -1.0 2588.0 1758.0
Micro Focus Inter . . . . .1892.0 -6.0 1950.0 1175.0
NCC Group . . . . . . . . . . .327.5 -2.5 333.0 225.8
Playtech . . . . . . . . . . . .842.0 -4.0 921.5 710.5
Sage Group . . . . . . . . . .700.5 -8.0 714.0 489.7
Softcat . . . . . . . . . . . . . .343.4 1.4 383.0 280.0
Sophos Group . . . . . . . .228.0 -2.3 289.7 175.0
Aggreko . . . . . . . . . . . .1071.0-160.0 1286.0 770.0
Ashtead Group . . . . . . .1152.0 -16.0 1209.0 769.0
Atkins (WS) . . . . . . . . .1417.0 -7.0 1656.0 1158.0
Babcock Internati . . . . .948.5 -20.0 1084.0 854.0
Berendsen . . . . . . . . . .1259.0 -8.0 1355.0 969.0
Bunzl . . . . . . . . . . . . . .2316.0 -27.0 2377.0 1671.0
Capita . . . . . . . . . . . . . .940.0 -3.0 1317.0 848.5
Carillion . . . . . . . . . . . . .262.0 -0.8 354.3 221.4
DCC . . . . . . . . . . . . . . .6730.0 -65.0 6835.0 4620.0
Diploma . . . . . . . . . . . .822.0 4.0 870.5 608.0
Electrocomponents . . .288.2 -2.0 293.2 172.5
Essentra . . . . . . . . . . . .472.9 -2.4 940.0 465.1
Experian . . . . . . . . . . .1434.0 -19.0 1485.0 1022.0
G4S . . . . . . . . . . . . . . . . .179.8 -4.5 277.1 164.0
Grafton Group Uni . . . .532.0 -4.0 752.0 440.0
Hays . . . . . . . . . . . . . . . .118.2 2.6 170.5 94.0
Homeserve . . . . . . . . . .543.0 -2.0 560.0 363.2
Howden Joinery Gr . . . .419.8 -5.3 531.0 341.1
Intertek Group . . . . . .3447.0 -28.0 3680.0 2328.0
Mitie Group . . . . . . . . . .243.3 -0.5 335.6 230.0
Pagegroup . . . . . . . . . .339.2 2.1 559.0 264.9
PayPoint . . . . . . . . . . . .985.0 5.5 1091.0 720.0
Paysafe Group . . . . . . .360.7 -3.7 432.4 253.3
Regus . . . . . . . . . . . . . .303.6 -1.4 354.6 249.1
Rentokil Initial . . . . . . . .216.1 -1.2 218.0 141.0
Serco Group . . . . . . . . . .118.7 0.9 127.2 76.8
SIG . . . . . . . . . . . . . . . . .100.6 -1.6 206.2 99.8
Travis Perkins . . . . . . . .1521.0 -12.0 2217.0 1313.0
Wolseley . . . . . . . . . . .4144.0 -11.0 4332.0 3230.0
Worldpay Group (W . . .293.8 -2.1 316.8 255.9
ARM Holdings . . . . . . .1687.0 15.0 1688.1 848.5
Laird . . . . . . . . . . . . . . . .317.4 22.2 404.9 287.8
British American . . . .4703.0 -117.5 5035.0 3355.5
Imperial Brands . . . . .3954.5 -93.5 4087.5 2991.0
Carnival . . . . . . . . . . . .3539.0 -16.0 3907.0 2957.0
Cineworld Group . . . . .588.5 1.5 597.0 457.0
Compass Group . . . . . .1425.0 -11.0 1476.0 991.0
Domino's Pizza Gr . . . .386.3 -1.7 396.9 279.0
easyJet . . . . . . . . . . . . .999.0 -15.0 1808.0 989.5
FirstGroup . . . . . . . . . . . .96.8 0.1 117.4 80.8
Go-Ahead Group . . . . .1797.0 -3.0 2713.0 1790.0
Greene King . . . . . . . . .789.5 -1.0 977.5 728.0
InterContinental . . . .3087.0 -17.0 3104.0 2192.8
International Con . . . . .388.2 -4.0 614.5 343.9
Ladbrokes . . . . . . . . . . .138.4 1.3 138.9 93.4
Marston's . . . . . . . . . . . .138.6 0.1 176.0 129.7
Merlin Entertainm . . . .465.8 -0.5 477.5 365.9
Millennium & Copt . . . .410.0 -11.3 570.0 366.4
Mitchells & Butle . . . . . .244.1 6.2 378.2 217.5
National Express . . . . .335.0 -0.9 349.3 272.4
Paddy Power Betfa . . .8515.0 -40.0 14275.0 7560.0
Rank Group . . . . . . . . . .218.8 0.7 295.5 199.7
Restaurant Group . . . . .341.0 4.3 723.5 256.9
Stagecoach Group . . . .198.9 -1.1 401.5 196.0
Thomas Cook Group . . . .59.7 -0.2 126.0 54.7
TUI AG Reg Shs (D . . . .966.0 -2.5 1271.0 844.5
Wetherspoon (J.D. . . . .844.5 11.5 852.0 609.0
Whitbread . . . . . . . . .3803.0 -16.0 5230.0 3391.0
William Hill . . . . . . . . . .313.9 12.0 410.9 246.9
Wizz Air Holdings . . . .1525.0 -35.0 2047.0 1415.0
4D Pharma . . . . . . . . . .705.0 -14.5 1012.5 660.0
Abcam . . . . . . . . . . . . . .767.5 -7.5 778.5 551.5
Advanced Medical . . . .212.8 -1.5 216.0 143.5
Amerisur Resource . . . .26.0 -0.3 33.0 17.3
Arbuthnot Banking . . .1538.0 8.0 1630.0 1265.0
ASOS . . . . . . . . . . . . . .4499.0 -4.0 4566.0 2473.0
Brooks Macdonald . . .1828.0 5.0 2040.0 1400.0
Camellia . . . . . . . . . . .8950.0 0.0 9786.0 7510.0
Clinigen Group . . . . . . .664.0 -10.5 761.0 492.8
Conviviality . . . . . . . . . .216.5 -1.3 238.0 155.0
CVS Group . . . . . . . . . . .816.5 -5.5 840.0 609.0
Dart Group . . . . . . . . . .486.0 -2.8 676.5 429.0
EMIS Group . . . . . . . . . .995.5 -11.5 1155.0 841.5
Fevertree Drinks . . . . . .916.0 -1.0 927.5 416.8
First Derivatives . . . . .1870.0 -11.0 2113.0 1312.5
Gamma Communicati .405.6 1.1 463.0 268.5
GB Group . . . . . . . . . . . .295.5 0.8 321.0 213.0
Gemfields . . . . . . . . . . . .39.0 -1.3 67.0 31.5
Gooch & Housego . . . .1035.0 -13.0 1049.0 816.5
GW Pharmaceutical . . .591.5 4.0 623.0 211.5
Iomart Group . . . . . . . .302.3 1.8 312.5 214.0
James Halstead . . . . . .424.0 0.3 520.0 379.0
Johnson Service G . . . . .92.5 0.0 99.5 84.0
M&C Saatchi . . . . . . . . . .316.8 11.8 370.0 282.8
M. P. Evans Group . . . . .439.8 2.3 449.5 345.5
Majestic Wine . . . . . . . .387.8 5.3 477.8 296.0
Mulberry Group . . . . . .1055.0 -22.5 1088.8 883.8
Nichols . . . . . . . . . . . . .1425.0 33.0 1492.0 1119.0
Numis Corporation . . . .180.5 -1.5 273.5 180.0
Pan African Resou . . . . .22.5 0.8 23.8 6.3
Pantheon Resource . . . .179.5 3.5 184.8 17.6
Patisserie Holdin . . . . .286.0 2.3 450.0 257.3
Pinewood Group . . . . . .552.5 0.0 580.0 419.9
Polar Capital Hol . . . . .304.8 1.0 435.0 270.0
Purplebricks Grou . . . . .140.0 -2.8 175.0 73.0
Redcentric . . . . . . . . . . .177.0 -0.8 203.3 154.0
Redde . . . . . . . . . . . . . .184.0 -1.3 210.3 138.5
Renew Holdings . . . . . .336.9 -3.9 410.0 295.3
RWS Holdings . . . . . . . .252.0 2.5 264.8 124.8
Scapa Group . . . . . . . . .253.8 -0.5 284.5 179.3
Secure Trust Bank . . . .2110.0 -20.0 3385.0 1600.0
Sirius Minerals . . . . . . . .28.5 1.5 28.8 10.8
Smart Metering Sy . . . .439.5 -6.0 454.9 305.5
Staffline Group . . . . . .1015.0 34.5 1623.0 748.5
Telford Homes . . . . . . .283.3 -3.3 433.8 262.0
Telit Communicati . . . .268.3 1.5 356.0 178.3
Thorpe (F.W.) . . . . . . . . .227.5 0.0 244.5 177.0
Vertu Motors . . . . . . . . . .47.0 -0.8 78.5 37.8
Watkin Jones . . . . . . . . .112.8 0.8 116.3 100.3
Young & Co's Brew . . .1220.0 0.0 1255.0 1075.0
Young & Co's Brew . . . .940.0 15.0 950.0 792.5
Laird . . . . . . . . . . . . . . . . . . . . . . .317.4 7.5
Pendragon . . . . . . . . . . . . . . . . . .32.9 6.3
HSBC Holdings . . . . . . . . . . . . . .504.4 4.5
Standard Chartered . . . . . . . . . .614.3 4.2
Associated British . . . . . . . . . .2830.0 4.1
Next . . . . . . . . . . . . . . . . . . . . .5340.0 4.1
William Hill . . . . . . . . . . . . . . . . .313.9 4.0
GKN . . . . . . . . . . . . . . . . . . . . . . .295.6 3.2
Amec Foster Wheele . . . . . . . . .436.1 3.2
PZ Cussons . . . . . . . . . . . . . . . . .342.1 3.0
Aggreko . . . . . . . . . . . . . . . . . . .1071.0 -13.0
Drax Group . . . . . . . . . . . . . . . . .316.0 -3.8
Meggitt . . . . . . . . . . . . . . . . . . . .406.7 -3.7
Beazley . . . . . . . . . . . . . . . . . . . .388.3 -3.1
Countryside Proper . . . . . . . . . .222.5 -3.1
Ascential . . . . . . . . . . . . . . . . . . .242.3 -3.1
Hiscox Limited (DI . . . . . . . . . .1054.0 -3.0
Crest Nicholson Ho . . . . . . . . . . .403.2 -2.9
Workspace Group . . . . . . . . . . .672.0 -2.8
Persimmon . . . . . . . . . . . . . . . .1636.0 -2.7
Risers
Fallers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
%
%
AUTOMOBILES & PARTS
AEROSPACE & DEFENCE
BANKS
BEVERAGES
CHEMICALS
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 1.250 17 . . . . . . .104.72 -0.01 106.0 104.1
Tsy 8.750 17 . . . . . . .109.14 -0.02 116.7 108.8
Tsy 5.000 18 . . . . . . .107.74 -0.02 111.0 107.6
Tsy 4.500 19 . . . . . . .111.40 0.02 112.7 110.8
Tsy 3.750 19 . . . . . . . .111.13 0.01 111.7 109.4
Tsy 4.750 20 . . . . . . .116.29 0.01 117.1 114.4
Tsy 2.500 20 . . . . . .368.84 -0.04 369.9 354.6
Tsy 8.000 21 . . . . . . .136.93 0.03 138.2 134.3
Tsy 4.000 22 . . . . . .120.04 0.05 120.6 114.5
Tsy 1.875 22 . . . . . . .126.25 0.09 127.1 118.3
Tsy 2.250 23 . . . . . . .111.60 0.06 112.4 102.7
Tsy 0.125 24 . . . . . . .115.35 0.02 116.4 105.7
Tsy 2.500 24 . . . . . .359.67 0.02 361.7 331.5
Tsy 5.000 25 . . . . . .135.63 0.05 136.7 126.0
Tsy 4.250 27 . . . . . . .135.14 0.07 136.6 121.9
Tsy 1.250 27 . . . . . . .134.46 0.13 135.8 122.1
Tsy 6.000 28 . . . . . .157.76 0.05 159.7 143.3
Tsy 4.125 30 . . . . . . .358.39 0.13 361.0 324.1
Tsy 4.750 30 . . . . . .146.94 0.08 148.6 130.0
Tsy 4.250 32 . . . . . .142.07 0.13 143.7 124.0
Tsy 1.250 32 . . . . . . .150.13 0.18 151.9 132.7
Tsy 0.125 36 . . . . . . .135.68 0.23 138.4 119.5
Tsy 4.250 36 . . . . . .147.08 0.16 149.0 125.2
Tsy 4.750 38 . . . . . .160.45 0.23 162.3 135.6
Tsy 0.625 40 . . . . . .156.29 0.50 159.3 132.5
Tsy 4.500 42 . . . . . .162.45 0.30 164.5 134.3
Tsy 3.500 45 . . . . . . .142.81 0.37 144.7 115.3
Tsy 4.250 46 . . . . . .163.46 0.34 165.7 132.5
Tsy 4.025 49 . . . . . .170.22 0.35 172.8 135.6
Tsy 0.500 50 . . . . . .177.30 0.68 183.5 144.9
Tsy 0.250 52 . . . . . . .171.73 0.55 178.5 138.1
WORLD INDICES
FTSE 100. . . . . . . . . . . . . . . . . . . . . 6634.40 -11.00 -0.17
FTSE 250. . . . . . . . . . . . . . . . . . . . . 16997.13 -65.88 -0.39
FTSE All-Share . . . . . . . . . . . . . . . . 3603.96 -6.97 -0.19
FTSE AIM All-Share . . . . . . . . . . . . . . 757.33 -0.70 -0.09
S&P 500 . . . . . . . . . . . . . . . . . . . . . 2163.79 6.76 0.31
Dow Jones I.A. . . . . . . . . . . . . . . . 18355.00 41.23 0.23
Nasdaq Composite . . . . . . . . . . . . . 5159.74 22.01 0.43
Xetra DAX. . . . . . . . . . . . . . . . . . . . 10170.21 25.87 0.26
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4321.08 -6.91 -0.16
Swiss Market Index . . . . . . . . . . . . 8010.10 -1.14 -0.01
ISEQ Overall Index . . . . . . . . . . . . . 5714.39 -8.29 -0.14
FTSEurofirst 300 . . . . . . . . . . . . . . . 1322.21 0.35 0.03
Hang Seng. . . . . . . . . . . . . . . . . . . 21739.12 -390.02 -1.76
Shanghai Composite. . . . . . . . . . . 2978.46 7.18 0.24
Straits Times . . . . . . . . . . . . . . . . . 2827.58 -29.09 -1.02
ASX All Ordinaries . . . . . . . . . . . . . 5551.40 -70.70 -1.26
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
6634.40
11.00
FTSE 250
16997.13
65.88
FTSE ALL SHARE
3603.96
6.97
DOW JONES
18355.00
41.23
NASDAQ
5159.74
22.01
S&P 500
2163.79
6.76
BATS UK 100
11271.64
12.59
BATS UK 250
15454.76
73.03
CONSTRUCTION & MATERIALS
GENERAL RETAILERS
INDUSTRIAL METALS & MINING
Rise | Shine
CITY A.M. MORNING UPDATE
Get our free email updates in your inbox
Sign up at cityam.com/newsletter
CITYAM.COM
18 MARKETS THURSDAY 4 AUGUST 2016

CITYAM.COM
THURSDAY 4 AUGUST 2016
FEATURE
19
OFFICE POLITICS
Unlimited time
off is the cure
for “always on”
staff burnout
Employers can learn from Cadbury in the
nineteenth century, writes Chris Baker
THE MODERN workforce has
become accustomed to putting
in long hours. Created
by years of employment
uncertainty, born out of the
2008 financial crisis, and fuelled recently
by the great unknown of a looming
Brexit, “presenteeism” has become a
mainstay of the British employee.
Research last week by Concur shows
that, thanks to the rise of the internet
and mobile connectivity, Britain has
shifted towards being an “on-the-go
economy”, a phenomenon which
encompasses the social and economic
change that has been created by constant
waves of technological advances.
Look around the pub on a Thursday
night and you’ll see scores of people still
working from their mobiles. It’s a characteristic
of the time we live in. One
where the blurring of personal and professional
spheres means people are
always on, multitasking to make the
most of their time.
Tech has, and always will be the heartbeat
of industry, but in today’s world,
the ongoing reliance on it for workplace
communications means many people
feel they need to be available 24/7.
This has the potential to create a timepressured
environment where busyness
is worn as a badge of honour and
employee burnout becomes commonplace.
A MODERN-DAY BOURNVILLE?
While employees work harder and
longer than ever, the businesses they
work for find themselves at a precarious
junction. Yes, a hard-grafting workforce
is beneficial, but a tired, potentially
Cadbury
embraced the
change that
industrialisation
brought and
offered up free
housing and
education
resentful one is not. Employers must
lead from the front and enable their
staff to find the right balance.
Lessons could be learnt from another
time when social and professional lines
became blurred – the nineteenth century
and Bournville in particular.
Cadbury embraced the change that
industrialisation brought with it and
offered up free education and housing.
Modern companies should find inspiration
in this and embrace the new way
that employees want – and increasingly
expect – to work.
Giving time back, without question,
to those who constantly work late is
critical. Allowing them to go to the gym
or spend time with their families
during regular hours not only empowers
staff, but also makes them more productive
in their roles. It’s the modern
ATHLETE
AGGREGATOR
Rio 2016
Social Hub
Free
Follow all your
favourite
Olympians’
reactions to the
Rio 2016 drama
with this hub
app, which
connects you to
the social media
accounts of
thousands of
athletes. An
official app of
the Games, it
allows you to
search by
athlete, team
and sport to give
you an
aggregated feed
of Twitter,
Instagram and
Facebook
updates to see
what’s going on
in and outside
the venues.
equivalent of the stable, secure family
life provided by Cadbury’s over a hundred
years ago and should be adopted
by all businesses, not just trendy Silicon
Valley startups.
TECHNOLOGY FOR THE GOOD
While tech has played a role in creating
the always-on worker, it can go a distance
to make them more efficient as
well. We use it every day to enhance our
personal lives without question, and
the same attitude should be adopted by
businesses.
In the on-the-go economy, time has
real value, both economically and physically.
Employees, especially the younger
generations, expect the work environment
they enter to provide them with
the very latest apps that will enhance
the high value activities they carry out.
As such, it’s vital that employers provide
the tools that enable workers to help
them minimise the more mundane
tasks and focus on the creative and
valuable ones.
The retail and financial services sectors
have been fantastic in providing
this at a consumer level and, with similar
enterprise grade software increasingly
mirroring apps such as Deliveroo
or Uber, there’s no shortage of offerings
to choose from.
The on-the-go economy is here to stay.
Businesses at every level must keep up
and ensure they are powered by services
and technologies that provide the workforce
with what they need before they
know they need it. Add a dose of
unquestioned flexibility and a productive
and happy workforce will flourish.
£Chris Baker is the managing director of
Concur.

20 LIFE&STYLE THURSDAY 4 AUGUST 2016
TECHNOLOGY
EDITED BY STEVE HOGARTY (@misterbrilliant)
The new Galaxy Note 7 is
Samsung’s iPhone killer
: @city_am
CITYAM.COM
:@cityamlife
GAMES OUT
THIS WEEK
PHONE
SAMSUNG GALAXY NOTE 7
£749, SAMSUNG.COM
Announced earlier this week,
Samsung’s Galaxy Note 7 is
a big old betsy of a phablet,
a 5.7-inch monsterphone
that brings the super-powered
performance of its existing S7
Edge device to its Note range. The
Android powerhouse that giant-handed
fans have been waiting all year for
– and the biggest rival to Apple’s
iPhone – it’s slick, premium as all hell
and launches September 2. Here’s
everything you need to know about
the Galaxy Note 7.
YOU UNLOCK IT JUST BY LOOKING AT IT
The Note 7 is one of the first phones
to include an infrared iris scanner as
a means of unlocking the device
(some Windows 10 phones have been
eyeball-unlockable for a while)
meaning you can glance at the
screen with either one of your
peepers and have it ping to life in
seconds. It’s ideal for those times
when your fingers are covered in
grease or you’ve been buried up to
your neck in sand.
THE STYLUS CAN DO LOTS MORE
The S Pen is twice as sensitive as the
stylus that came with the Note 5
(incidentally, if you’re wondering
where the Note 6 went, Samsung
skipped it to keep the numbering
neat). It can jot notes on the screen
even when the phone is locked, create
gif animations of anything that’s on
screen and instantly translate any
text it touches.
YOU CAN SPLASH IT AND DUNK IT
The phone is waterproof to depths of
five feet for up to half an hour, so if
you drop the Note 7 in the bathtub
you’ve got time to go make a cup of
tea and read a chapter of a book
before retrieving it. The stylus is
equally waterproofed and works on
the screen even when both are
soaking wet, an engineering feat
that took Samsung three years (and
presumably a small pile of damp and
broken pens) to develop.
ITS INSIDES ARE ONLY SLIGHTLY MORE
POWERFUL THAN THE S7 EDGE
For a long time Samsung’s Note
series has way outperformed its
smaller and more mainstream
phones, but as the S7 was such an
unexpectedly beefy little handset to
begin with, the Note 7 simply copies
much of that phone’s existing
specifications while adding a few
small improvements. The 12
megapixel camera with f/1.7 lens is
the same found in the S7. It’s got the
same Qualcomm Snapdragon 820
processor and 4GB of RAM. With
64GB of memory, the Note 7 has
twice the internal storage however,
and a larger battery that’s used to
power the bigger screen. This can be
expanded with a MicroSD card, a
feature missing from the Note 5. This
is also the first Samsung phone to
make the leap to USB Type-C, the
kind with a convenient charging
cable that fits either way around.
IT FITS INTO A NEW VR HEADSET
The Gear VR has been updated to
work with the Note 7 and now
features a USB Type-C port and a
wider field of view.
THE SCREEN IS CURVED AND THE BACK
IS MADE OF TREACHEROUS GLASS
Another similarity to the S7 can be
seen in the screen’s curved edges, a
design that’s mirrored on the rear
panel of the phone too to create a
pleasing front-and-back symmetry.
The Note 7 has Gorilla Glass 5 on
both sides, so just like the S7 it will
glide frictionlessly across even the
most slightly inclined of surfaces,
stealthily inching its way towards
table edges unnoticed until you
hear the clatter of your phone
hitting the floor.
ABZU
PLATFORM: PS4, PC
From the art director behind Flower (a
game about being a petal on a breeze) and
Journey (a game about wearing a lovely
big dress in the desert) comes Abzu (a
game about swimming around
underwater). An experiential subaquatic
explore-em-up, it presents you with a
stunningly colourful and animated world
beneath the waves that’s both tantalisingly
mysterious and visually spectacular, as you
investigate shimmering shoals and
unparalleled coral beauty.
BATMAN: THE TELLTALE SERIES
PLATFORM: XBO, PS4, PC, IOS, ANDROID
From Jurassic Park and Game of Thrones
to the Walking Dead, developer Telltale has
turned a number of popular shows and
films into thoughtful and slow-paced
adventure games in which dialogue
choices and puzzle solving are key. Here
they turn their attention to Batman in an
episodic series that focuses not on the
superhero alter-ego, but on Bruce Wayne
and his tattered psyche. Half conversationsimulator
and half punch-the-bad-guy
brawler, it casts a welcome light on the
under-represented Gotham magnate.
LAPTOP
LENOVO THINKPAD X1 YOGA
£1,320, LENOVO.COM
hhhhi | BY STEVE HOGARTY
If you discovered a small wormhole that led
directly to a boardroom in the year 2001,
reached in and grabbed the nearest object
you could feel, what you pulled out would
probably resemble the ThinkPad X1 Yoga.
While the design might be business-retro,
the guts of this 2-in-1 laptop are anything
but old fashioned. It’s a high-performer in
every regard, the thinnest and lightest in its
class with a screen that folds all the way
around to turn into a touchscreen tablet.
The keys even retract slightly as you make
the transformation. It’s also one of the few
remaining laptops to feature a red mouse
“nipple” alongside the standard trackpad.
Nipples or not, the price is a little high for
the specs and the Yoga’s fans are on the
noisy side. That aside, it’s a beefy and
incredibly well built business machine.
PHONE
HUAWEI P9 LITE
£199, HUAWEI.COM
hhhii | BY STEVE HOGARTY
Huawei’s P9 and P9 Plus are the shimmering
beacons of the Chinese manufacturer’s
smartphone range, with their svelte
aluminium unibodies and super highdefinition
OLED screens bright enough to
shame our own idiot sun.
The P9 Lite is the pared down version of the
smaller of those two phones, stripping away
the least vital of its features and cutting
corners to essentially halve the price of the
regular P9. You’d hardly notice the change: no
more metal unibody but plastic instead, no
more Gorilla Glass or OLED display, and lower
quality speakers.
But what’s been left behind is astonishingly
good value for money. The P9 Lite is a
powerful and cheap little device, with a
display that still impresses and a build quality
that you rarely see in a sub-£200 phone.

22 SPORT THURSDAY 4 AUGUST 2016
CITYAM.COM
FOOTBALL
Championship
offers colourful
yet volatile mix
JOE HALL
@joehallwords
TOMORROW a football competition
starts in London featuring billionaire
owners from across the globe, a cosmopolitan
array of managers — including
two Champions League winners — and
some of the most exciting young players
in England. But this is not the Premier
League.
It is, of course, the Championship.
English football’s second tier shootout
for the top flight’s millions kicks
off on Friday evening when recently
relegated Newcastle visit Fulham.
The fixture is a good example of the
modern Championship landscape:
two accomplished foreign managers,
including Rafael Benitez whose last
job was at Real Madrid; two teams featuring
full internationals and young
English prospects; and two owners
successful in business but struggling
to achieve the same results in sport.
Mike Ashley’s Newcastle have spent
£39m on new players this summer —
more than 40 per cent of the division’s
total — in a bold bid to earn an
immediate return to the top tier. With
Benitez steering the ship it is expected
to pay off, yet Fulham’s Shahid Khan
learned the hard way that big spending
is no guarantee of success in the
Championship after staking a record
£11m on Ross McCormack following
relegation in 2014 to little return.
Whereas Championship dugouts
were once more characterised by wizened
former pros calling the shots,
nine teams are now managed by foreign
bosses such as Reading, who have
given former Manchester United defender
Jaap Stam his first managerial
role, Huddersfield Town, managed by
former Jurgen Klopp assistant David
Wagner and Nottingham Forest, who
appointed former Real Sociedad boss
Philippe Montanier in June.
Nine managers in the division have
Premier League experience including
the once-highly-rated Garry Monk at
Leeds, Owen Coyle at Blackburn and
Roberto Di Matteo at Aston Villa.
The increasingly diverse nature of
the league’s coaching staff may be a
natural extension of the influx of foreign
owners, some of whom have unorthodox
approaches to reaching the
Premier League’s £8bn treasure chest.
Newcastle and Rafa Benitez have spent heavily in the hope of immediate promotion
Massimo Cellino, the eccentric Leeds
owner, can be relied on for a series of
eye-popping decisions ever season, as
can Cardiff’s Vincent Tan, while Nottingham
Forest’s Kuwaiti benefactor
Fawaz Al-Hasawi is said to be on the
verge of selling the former European
champions to shipping magnate Evangelos
Marinakis, a man accused of
match-fixing and directing a criminal
organisation in his native Greece.
Elsewhere the Midlands has received
an influx of investment from China
this summer, with businessman Tony
Xia taking over Aston Villa for £76m
and investment company Fosun International,
who have links to superagent
Jorge Mendes, buying Wolves
for £45m.
Sheffield Wednesday, Queens Park
Rangers, Reading, Birmingham and
Blackburn have also become the vehicles
of foreign investment, to varying
degrees of success.
The attraction is obvious: a top six
finish and subsequent Premier League
promotion tends to be worth at least
£170m. Yet with such a variety of central
characters engaged in such
heated competition, predicting the
outcome of this Championship season
looks far less clear.
FIVE PLAYERS TO WATCH IN
ENGLAND’S SECOND TIER
JACK GREALISH
New surroundings in
the Championship
and a new manager
in Roberto Di Matteo
offer Aston Villa’s
Jack Grealish the
chance to
reinvigorate his
career following a
troubled campaign last season notable
for nightclub escapades.
KORTNEY HAUSE
Wolves’s highly-rated young centre-back
added to his admirers as a key member
of the England Under-21 squad that won
the prestigious Toulon Tournament
earlier this summer.
WILL GRIGG
The star of terrace favourite “Will Grigg’s
on Fire” may not have appeared for
Northern Ireland at Euro 2016, but the
striker, who scored 28 goals last season,
will be indispensable for Wigan on their
return to the Championship.
AYOZE PEREZ
One of the Premier League stars
Newcastle have held onto following
relegation, Ayoze Perez has the ability to
terrorise Championship defences in a bid
for an immediate return to the top flight.
KASEY PALMER
Another member of
the triumphant
England team in
Toulon, 19-year-old
Chelsea hotshot
Kasey Palmer will be
given his first taste of
first team football at
Huddersfield.
FOOTBALL
Bilic confident of Olympic Stadium debut victory
ROSS MCLEAN
@rossmcleanRMAC
WEST Ham boss Slaven Bilic is
convinced his side will mark their
Olympic Stadium debut by
overturning a Europa League third
qualifying round deficit against
minnows NK Domzale tonight.
The Hammers succumbed 2-1 in
last week’s first leg in Slovenia
although a successfully converted
penalty from skipper Mark Noble
means West Ham’s task is less
arduous than it might have been.
Although the stadium’s official
opening as West Ham’s home is not
until Sunday’s friendly against Serie
A champions Juventus, 54,000 fans
are set to witness the start of a new
chapter in the club’s history.
“I am confident we are going to
play better than what we did in
Slovenia and that we will beat them
with the result that will see us
qualify for the play-off stages,” said
Bilic. “We have to adjust to the new
stadium and there is no better way
to adjust than to win a game.”
Euro 2016 participants Dimitri
Payet, James Collins and Angelo
Ogbonna will not be considered for
selection, while Bilic has confirmed
that Manuel Lanzini’s knee injury is
set to sideline the midfielder for up
to five weeks.
IN BRIEF
GLASGOW TO HOST GREAT
BRITAIN’S DAVIS CUP SEMI
£ TENNIS: Great Britain’s Davis Cup
World Group semi-final clash against
Argentina in September will be staged
at the Emirates Arena in Glasgow. The
last-four tussle will take place on a
hardcourt surface from 16-18
September. The venue was the setting
for two Great Britain victories on their
way to winning the tournament for the
first time in 79 years during 2015. Great
Britain captain Leon Smith said: “We
have amazing memories of our times
there in 2015.”
CITY COMPLETE £27M DEAL
FOR BRAZIL STARLET JESUS
£ FOOTBALL: Manchester City director
of football Txiki Begiristain insists the
two-time Premier League champions
have signed one of the world’s principal
talents after concluding the £27m
capture of teenage forward Gabriel
Jesus yesterday. The 19-year-old will
move to City in January on a contract
which runs until the end of the 2020-21
campaign. Begiristain said: “Gabriel is
one of the most exciting young
prospects in world football and plays
the game in a spectacular way”.
BRENTFORD FC
BEE THERE!
Get yourself down to Griffin Park for our first home fixture of
the 2016/17 Sky Bet Championship season against ainst
Ipswich Town.
.
Saturday 13 August
kick-off 3pm
Adults from £23, Juniors just £6
Buy online n
now at brentfordfc.co.uk
Subject to availability. Terms and conditions of issue apply.

CITYAM.COM THURSDAY 4 AUGUST 2016 SPORT 23
CRICKET
Pakistan have the edge but should be very
wary of gritty England and their new ball
CRICKET
COMMENT
Chris
Tremlett
THE pendulum is swinging
Pakistan’s way. The tourists
have the edge after day one
of the third Investec Test at
Edgbaston but the clash is
well set. If England bowl well with the
new ball this morning it will be very
hard work for the tourists.
There is no doubt, however, that
Pakistan will be the happier of the
two sides having bowled out England
for under 300 after winning the toss
and opting to field.
The pitch isn’t a green seamer or a
minefield so there aren’t too many
demons there. It looked an evenpaced
deck, although the conditions
offered some assistance to the
bowlers and Pakistan made the most
of those.
Misbah-ul-Haq’s Pakistan will not
overly concern themselves with runrate
this morning. It will simply be a
case of trying to see off that new ball
before attempting to make hay when
Ballance top scored for England yesterday with 70 and it was vital that somebody
ground out some ugly runs. It was his first half-century since being recalled
the ball gets a bit older, which in
turn makes it harder work for the
bowler.
REAL PRESSURE SITUATION
England will not be too downbeat.
Getting to around the 300 mark after
being 158-5 is always a decent
turnaround. England’s depth in
batting, with Moeen Ali and Chris
Woakes at No7 and No8 respectively,
is a real strength of the side.
Moeen’s knock of 63 is a case in
point and one of the major reasons
why England pick the Worcestershire
all-rounder.
The likes of Yorkshire’s Gary
Ballance and Hampshire captain
James Vince had to fight yesterday. It
was a real pressure situation for
them both as their places in team
are under threat. Vince had only
scored 130 runs in seven Test innings
prior to yesterday, and while he got a
start with 39 he didn’t go on and
chalk up a big score, so speculation
about his long-term international
future will continue.
Ballance, meanwhile, hadn’t yet
passed 50 since returning to the side
at the start of the Pakistan series,
having been dropped during last
summer’s Ashes series, although
yesterday was only his fourth
innings.
UGLY RUNS
He showed some grit and took a step
towards cementing his place in the
team for a bit longer. It was good to
see a grafting knock from him.
Sometimes a team needs ugly runs
and somebody has to stand up and
take the responsibility to score them.
It should be good viewing today.
Pakistan struggled against the new
ball during their 330-run thrashing
at Old Trafford last month so it will
prove an intriguing tussle this
morning when England open up
with James Anderson.
Pakistan will look to skipper
Misbah and Younis Khan, their
senior players, for a steadying
influence, while opener Mohammad
Hafeez, who is one of their best
players, needs to show his quality.
RESULTS
FOOTBALL
UEFA CHAMPIONS LEAGUE THIRD
QUALIFYING ROUND SECOND LEG
Celtic ......................(1) 2 Astana .......................(0) 1
Griffiths 45 (pen) Ibraimi 62
Dembele 90 (pen) Agg: 3-2.
FRIENDLY MATCHES
Barcelona ................... 4 Leicester ........................ 2
Hull .............................. 3 Caykur Rizespor ............ 1
Man Utd ...................... 0 Everton ........................... 0
CRICKET
THIRD INVESTEC TEST MATCH
England v Pakistan
(Day 1 of 5)
EDGBASTON: England have scored 297 for all wickets
against Pakistan
ENGLAND: First Inns
A Cook lbw Rahat Ali...............................................................................45
A Hales c Ahmed b Sohail Khan ...........................................................17
J Root c Hafeez b Sohail Khan ................................................................3
J Vince c Younus Khan b Sohail Khan...............................................39
G Ballance c Ahmed b Shah ..................................................................70
J Bairstow c Ahmed b Sohail Khan ....................................................12
M Ali c Ahmed b Amir .............................................................................63
C Woakes c Ahmed b Rahat Ali .............................................................9
S Broad c Azhar Ali b Amir ....................................................................13
S Finn not out ...............................................................................................15
J Anderson lbw Sohail Khan ...................................................................5
Lb1 w1 nb4 ...........................................................................................6
Total (86 overs) ........................................................................... 297
Fall: 36, 48, 75, 144, 158, 224, 244, 276, 278.
Bowling: Amir 16-3-53-2, Khan 23-3-96-5, Ali 20-4-83-2,
Shah 27-3-64-1.
Umpires: B Oxenford & J Wilson.
SPECSAVERS COUNTY CHAMPIONSHIP - DIVISION
TWO—Northamptonshire v Glamorgan (Swansea):
Northamptonshire . 108-4 (34.0 overs) Glamorgan.
Worcestershire v Kent (Canterbury): Worcestershire
211 (73.1 overs; J M Clarke 69; M E Claydon 5-42). Kent
55-0 (20.0 overs).
SECOND UNDER 19 TEST MATCH—England Under 19 v
Sri Lanka Under 19 (Northampton): England Under 19
108 (82.2 overs; C B R L S Kumara 7-82). Sri Lanka Under
19 48-1 (11.0 overs).
TODAY’S DIARY
(7.45pm unless stated)
UEFA Europa League 3rd Qualifying Round 2nd Leg
Cork City (0) v Genk (1) ..................................................................................
Maribor (1) v Aberdeen (1) (7.15) ...............................................................
West Ham (1) v Domzale (2).........................................................................

24 SPORT THURSDAY 4 AUGUST 2016
SPORT
CRICKET
No panic for
England after
batting woes
ROSS MCLEAN
@rossmcleanRMAC
DEFIANT top-scorer Gary Ballance refused to
be downbeat despite England being
dismissed for 297 on the opening day of the
third Investec Test against Pakistan at
Edgbaston yesterday.
Ballance chalked up a resolute 70 while
sharing half-century stands with Moeen Ali,
who notched 63, and James Vince after
England were invited to bat in seamerfriendly
conditions.
Recalled quick Sohail Khan marked his first
Test match for five years by taking 5-96,
including three of England’s top four and the
prize wicket of vice-captain Joe Root, as he
justified Pakistan skipper Misbah-ul-Haq’s
decision to bowl first.
“We’ve had an okay day,” said Yorkshire
batsman Ballance.
“We spoke at tea and said let’s get to 300
and we’ll be happy with that. We’ve got near
enough 300 and I think overall we’re relatively
happy. If someone had gone on to get a big
hundred, 350 would have been better but
we’re in the game now.
“It’s one of those wickets where you never
feel in. You always felt there was that ball
which had your name on it. It kept you honest
all day. Guys got starts but weren’t able to
kick on but overall we’re pretty happy with it.”
Ballance’s tally was his first score of 50 since
he was recalled to the side at the beginning of
the Pakistan series, which is currently locked
at 1-1, having not played for England for more
SPECIAL REPORT
Bolt pips Neymar to first place in
most marketable stars of Rio 2016
FRANK DALLERES
@frankdalleres
HE IS used to sweeping all before him
on the track, and now Usain Bolt has
another title under his belt – No1 on
City A.M.’s Rio 50: the most
marketable athletes at the 2016
Olympic and Paralympic Games.
Bolt, who is aiming to
complete a unique triple hattrick
of sprint gold medals in
Brazil this month, was voted
top of the pile by a panel of
leading sports industry
thinkers.
Neymar, the Barcelona
superstar and poster boy
of the host nation’s fancied
football team, is second, with
than a year after being axed during last
summer’s Ashes.
“When I was first left out my mind was all
over the place. It was a tough few months but
you have to find ways of dealing with it,”
added Ballance.
“You can feel that everyone is on your case
but that’s the way it goes, you have to be
tough enough to deal with it and move on.
Hopefully, I’ve done that now. I feel like I’m
playing well again.”
England’s innings was littered with batsmen
making starts but failing to capitalise. Skipper
Alastair Cook racked up eight fours in a knock
of 45 before joining fellow opener Alex Hales
and Root in the pavilion with England 75-3.
That became 158-5 after Vince departed for
39 and Jonny Bairstow for 12. Ballance and
Moeen progressed the score to 224 before the
former was caught behind by wicketkeeper
Sarfraz Ahmed off Yasir Shah – the legspinner’s
sole victim of the day.
Ballance had been short of runs in the
series, his previous best was the 43 he scored
in a losing cause during England’s second
innings at Lord’s, but dug in and faced 150
deliveries for his 70
Seamers Mohammad Amir and Rahat Ali
picked up two wickets apiece, although the
day belonged to Sohail. The snaring of tailender
Jimmy Anderson LBW handed the
32-year-old his fifth scalp after finishing with
combined figures of 1-245 from his two
previous Tests in 2009 and 2011.
£ CHRIS TREMLETT COLUMN: PAGE 23
men’s tennis world No1 Novak
Djokovic in third place.
Wimbledon champion Andy
Murray is one of three Britons in the
top 10, along with London 2012
golden girl Jessica Ennis-Hill and
cyclist Bradley Wiggins, bidding to
become the country’s most
decorated Olympian.
Athletics, which features
perhaps the most iconic
moments from the Games,
has the most
representatives, with
15, followed by tennis,
on six. The 15
American sportsmen
and women is the
most entries of any
nation, followed by
Great Britain’s 11.
Other Team GB stars to make the
list include double gold winner Mo
Farah, Masters champion Danny
Willett, three-time Tour de France
king Chris Froome and track cyclist
Laura Trott.
The Rio 50 was chosen and ranked
by experts from the sports
marketing, sponsorship,
communications and management
industries based on the following
criteria: recognition, popularity,
performance credentials, potential
at Rio, age, value for money,
prominence in home market, reach,
room in portfolio for more sponsors,
and unique backstory.
TURN TO CENTRE FOR FULL REPORT
BOXING
ROSS MCLEAN
@rossmcleanRMAC
WORLD heavyweight champion Tyson
Fury will face an independent
hearing over a UK Anti-Doping charge
alleging the presence of a banned
substance within a urine sample.
UK Anti-Doping confirmed
yesterday that Fury had been
provisionally banned in June,
although the suspension was to be
lifted pending a hearing in front of
the National Anti-Doping panel.
The 27-year-old’s legal team, and
that of cousin and fellow
professional boxer Hughie Fury who
has also been charged, announced
on Tuesday that they intend to sue
the organisation over claims the pair
used performance-enhancing drugs.
“In response to public comments
made by Tyson and Hughie Fury’s
CITYAM.COM
GREAL DEAL Five players to
keep your eye on in the
Championship this season PAGE 22
OLYMPIC GAMES
Murray pride at
selection for GB
flagbearer role
FRANK DALLERES
@frankdalleres
WIMBLEDON champion Andy Murray
has revealed his pride at being
selected to be Team GB’s flagbearer
for tomorrow’s opening ceremony at
the Rio 2016 Olympics.
Murray, who won gold in the
men’s singles at London 2012, is the
first tennis player to enjoy the
honour and was picked ahead of
veteran long-distance runner Jo
Pavey and boxer Nicola Adams.
“I am very proud. To represent
your country at the Games is an
unbelievable experience, but to lead
out Team GB will be an incredible
honour, the biggest in sport,” he said.
“This is my third Olympic Games
and it is a very special competition
for me. I have great memories of
London and I am 100 per cent
focused on winning here in Rio. The
privilege of being the flagbearer is a
moment I will remember for the rest
of my life and will certainly be one of
the highlights of my career.”
Sir Bradley Wiggins, who could
become Britain’s most decorated
Olympian in Brazil this month, had
been touted for the role but ruled
himself out because he wanted
British Cycling to nominate a female
rider instead.
Women’s road race world
champion Lizzie Armitstead,
meanwhile, has blamed “an
emergency family situation” for the
missed test that triggered a UK Anti-
Doping charge. Armitstead will
compete in Rio after overturning the
charge at the Court of Arbitration for
Sport this week, arguing that the
first of three failures to be available
for a drug test was not her fault.
The 27-year-old added on Thursday
that the third alleged infringement
had mitigating circumstances – “a
traumatic time” that involved
psychiatric assessment – and that
she had passed 16 tests this year.
UK Anti-Doping lift Fury ban
after confirming doping charge
representatives, UK Anti-Doping can
can confirm that both boxers were
charged on 24 June 2016 with
presence of a prohibited substance,”
read a UK Anti-Doping statement.
“Mandatory Provisional
Suspensions were imposed pursuant
to Article 7.9.1 of the UK Anti-Doping
Rules.
“The UK Anti-Doping Rules allow
athletes to challenge the imposition
of a Provisional Suspension and the
NADP today lifted the athletes’
suspensions, pending full
determination of the charges. These
charges will be heard at a hearing
before the NADP in due course.”
Fury is due back in action in
October when he faces Wladimir
Klitschko in a re-match after the 27-
year-old self-proclaimed Gypsy King
outpointed the Ukrainian to win the
WBA and WBO titles in November.