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TUESDAY 10 JANUARY 2017 ISSUE 2,788 CITYAM.COM 

FREE 

PREMIER FOODS 

TO HIKE PRICES 

EXCLUSIVE 

Premier Foods, which has revenues of 

HELEN CAHILL 

more than £750m, hopes to reach a 

COMPANY BEHIND THESE TOP 

conclusion to the crunch talks by the end 

@HelCahill 

HOUSEHOLD PRODUCTS REACTS of this month. The wholesaler said it was 

PREMIER Foods, the supplier of iconic 

doing all it could to limit any price 

brands such as Mr Kipling cakes and 

TO RISING COSTS 

increases and was only taking such steps 

Bisto gravy, is in talks with its major 

as a “last resort”. 

retail customers about lifting 

“We take a blended 

prices due to a double 

approach to managing cost 

whammy of weaker 

increases driven by currency 

sterling and higher 

and commodity factors,” the 

commodity costs. 

spokesman said. 

City A.M. can reveal that 

Aside from potential price 

the listed food 

hikes, the company also 

manufacturer last month 

hopes to adjust its promotions 

opened discussions with 

and will be making other 

the likes of Tesco, 

efficiencies within the business. 

Sainsbury’s and Asda due 

The exact nature of the deals 

to growing cost pressures 

emerging from the “robust” 

from the weaker pound in the 

discussions will depend on 

wake of the EU referendum. 

the mix of products being 

A spokesperson for Premier 

sold to each retailer. Price 

Foods said: “The situation on 

increases on cakes and 

pricing differs between our 

cooking sauces, for 

different categories and brands 

example, will differ. 

and is currently under discussion 

Premier’s products 

with our individual retail 

include Ambrosia Milk, 

customers. However, on average 

Cadbury cakes, Oxo cubes, Angel 

we are considering rises around 

Delight and Homepride flour. 

the mid single digit mark.” 

However, with German 

The effects of the fall in the 

discounters offering cut-price 

value of the pound for 

groceries, the cost of a typical shop 

supermarkets and suppliers first 

might remain low. Independent retail 

reared its head last year as Unilever 

analyst Richard Hyman explained: 

demanded higher prices for its 

“Aldi will not be beaten, so anyone 

products, including Marmite and PG 

increasing prices risks widening the gap 

Tips. Tesco, the UK’s biggest 

between itself and Aldi, and losing further 

supermarket, initially refused to pay the 

market share.” Shore Capital’s Clive Black 

higher price, resulting in a brief stand-off 

agreed, saying any supermarket price hikes 

between the two companies. 

will be put through a “fine mesh”. 

Yahoo boss 

to quit after 

Verizon sale 

SHRUTI TRIPATHI CHOPRA 

@shrutitripathi6 

YAHOO chief executive Marissa 

Mayer will step down from the 

board after the tech giant 

completes its $4.8bn (£3.9bn) 

deal with Verizon. 

The holding company of 

Yahoo’s core assets will be 

called Altaba, it was revealed in 

a filing with the US Securities 

and Exchange Commission (SEC) 

late last night. 

Other senior executives set to 

resign from the board include 

David Filo, Eddy Hartenstein, 

Richard Hill, Jane Shaw, and 

Maynard Webb. 

The filing confirmed the size 

of the board will be reduced to 

Mayer became Yahoo CEO in 2012 

five directors. Tor Braham, Eric 

Brandt, Catherine Friedman, 

Thomas McInerney and Jeffrey 

Smith will continue to serve as 

directors of the company, and 

Brandt will serve as chairman 

of the board. 

All six executives including 

Mayer said their “intention to 

resign is not due to any 

disagreement with the 

company on any matter relating 

to the company’s operations, 

policies or practices”. 

FTSE 100 ▲ 7,237.77 +27.72 FTSE 250 ▲ 18,379.63 +38.44 DOW ▼ 19,887.38 -76.42 NASDAQ▲ 5,531.82 +10.76 £/$ ▼1.216 -0.008 £/€▼ 1.149 -0.013 €/$▲ 1.056 +0.004 

IGNORE BLOCKCHAIN AT YOUR OWN RISK IN 2017 

Remember the person who wanted a faster horse in the dawn of the automobile era? That could be you 

 

 

 

7 DAYS | 7 EVENTS | 80 SPEAKERS | 1000 PARTICIPANTS 

January 20th-26th 2017 www.blockchainweek.com

02 NEWS TUESDAY 10 JANUARY 2017 

CITYAM.COM 

THE CITY VIEW 

US fine will let RBS turn 

page on horror decade 

DURING the 2008-2009 banking crisis the UK government 

had to fork out a total of £115bn to rescue Lloyds Banking 

Group and RBS from imminent collapse, making the 

taxpayer a shareholder in both. Now a new milestone has 

been reached: the government is no longer the biggest 

stakeholder in Lloyds Banking Group, after it cut its stake to less 

than six per cent yesterday. 

A savings and lending bank, Lloyds Banking Group was always 

going to be an easier project to fix than RBS, a badly-led 

conglomerate with global reach that was embroiled in many 

aspects of the financial crisis. Subsequently, it has been forced to 

pay out billions in fines and compensation including those 

payments related to Libor and forex rate manipulation. 

However, the biggest reckoning is yet to come: a bill from US 

authorities for its role in the subprime mis-selling scandal that 

lit the fuse of the financial 

crisis. This could end up 

being in the double digit 

billions. Yesterday, it was 

suggested that negotiations 

on the megafine could come 

to a head as early as this 

week, although that remains 

unconfirmed. Resolution of the matter would remove a major 

hurdle to returning RBS, still 72 per cent owned by the taxpayer, 

to the private sector by the state selling its shares. With Lloyds, 

the government has prudently been selling into a recovery in 

bank shares since the election of Donald Trump. Yesterday’s 

stake sale simultaneously highlights the relatively weak position 

of RBS and puts it next in line for shares to be sold. Ministers 

shelved plans to sell more RBS shares in the summer when the 

share price fell too much in the wake of the referendum to make 

it worthwhile. That is no longer the case: since July the bank’s 

share price has risen 50 per cent to 227p. Once the monster fine 

is out of the way, UK Financial Investments, which manages the 

government’s stake, should refocus on shedding its RBS shares. 

The future cannot be foretold and there may never be a better 

time to sell. It would be a mistake to try and fix the errors of the 

past by trying to play the market. The fact that the taxpayer will 

never fully recoup funds poured into RBS must be accepted so 

the bank, and the government, can move on. 

Follow us on Twitter @cityam 

The biggest 

reckoning is still 

yet to come: A bill 

from US authorities 

DOWN THE TUBE Commuting in the 

capital tests Londoners’ patience 

One-day Tube strike set to cost 

REBECCA SMITH AND MARK SANDS 

@BexKSmith @MkSands 

THE COST of yesterday’s 24-hour Tube 

strike to the capital will run into tens 

of millions. 

Industrial action, organised by the 

Rail, Maritime and Transport (RMT) 

union and The Transport Salaried 

Staffs’ Association (TSSA) over staffing 

levels at stations, resulted in a 

plethora of station closures and 

disruption across London. 

And Simon French, chief economist 

at Panmure Gordon, said the cost of 

the industrial action to the capital 

will be around £90m. 

“The UK is a services-dominated 

economy that relies daily on the mobility 

of its workforce,” he said. “Disrupting 

crucial transport arteries is 

damaging for economic activity that 

at best takes longer or at worst cannot 

be completed at all.” 

The Federation of Small Businesses 

(FSB) said its businesses were “losing 

revenue that can never be replaced”. 

Sue Terpilowski, FSB London 

policy chair, said previous strike data 

from the group “showed that 

Optimism soars in UK tech sector 

LYNSEY BARBER 

capital, with 35 per cent now expecting 

tus, including Softbank’s multi-billion-pound 

@lynseybarber 

things to improve compared to 

deal for UK chipmaker 

just six per cent in June, though the Arm and travel startup Skyscanner 

IT SEEMS as if the UK’s tech entrepreneurs 

bounce back was less being snapped for £1.4bn. 

have recovered from the shock 

result of the referendum in which 

they overwhelmingly voted to remain 

in the European Union. 

Tech City UK surveyed more than 

2,000 people working in the sector, 

including founders and chief execs – 

just under half (49 per cent) said they 

are positive about business for the 

year ahead, compared to just eight per 

cent polled in June after the vote. 

Positivity for 2017 improved in the 

that 

nationwide. 

“The year just past was one of shocks 

and surprises but the economy overall 

has held up remarkably well. For the 

tech sector, however, the power to 

transform lives has not disappeared 

because the country voted to leave 

Europe,” said BGF Ventures partner 

Simon Calver. The tech sector has had 

a strong run since the Brexit vote with 

multiple mega-deals securing its sta- 

pronounced than experienced 

that 

2016 was a record year for tech deals 

in the UK with more than 4,000 M&A 

deals and private placements signalling 

a rise of more than 40 per cent 

on the previous year. 

The data from GP Bullhound also 

indicated a decline in deal numbers 

in the second half of the year after a 

stellar start to 2016. 

The figures were still up year-onyear, 

however. 

It comes as new data reveals 

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL 

JAPAN’S TAKEDA SNAPS UP 

ARIAD OF THE US FOR $5BN 

Takeda has agreed to acquire US 

oncology group Ariad Pharmaceuticals 

for $5.2bn, in what is likely to be the first 

in a series of deals for Japan’s largest 

pharmaceutical group as its chief 

executive eyes more targets. Christophe 

Weber, chief executive of Takeda, told 

the Financial Times that it was part of 

the company’s business strategy to 

expand through acquisitions, with a 

particular focus on the US, as well as 

emerging markets and Europe. 

BOA SUED BY REGULATOR 

OVER ‘UNPAID PREMIUMS’ 

Bank of America owes at least half a 

billion dollars in unpaid premiums to 

WHAT THE 

OTHER 

PAPERS SAY 

THIS 

MORNING 

the Federal Deposit Insurance 

Corporation, the US regulator claimed 

in a lawsuit filed yesterday, dealing a 

blow to the bank’s attempts to put its 

legal snarl-ups behind it. 

ONE IN FOUR A&E WARDS IS 

UNSAFE, SAY DOCTORS 

More than a quarter of accident and 

emergency units are dangerously 

overcrowded after the busiest day on 

record for the NHS, senior doctors have 

warned. Taj Hassan, president of the 

Royal College of Emergency Medicine, 

said that 25 to 30 per cent of A&E 

departments were dealing with fewer 

than 75 per cent of patients within four 

hours — the “magic mark” for safety. 

LONDON LEADS REVIVAL IN 

THE JOBS MARKET 

Companies continued to create jobs 

and increase salaries last month as the 

labour market defied fears of a postreferendum 

slowdown. 

TULLOW OIL SELLS UGANDA 

STAKE TO TOTAL FOR $900M 

Tullow Oil had sold two-thirds of its 

stake in Uganda's first ever oil 

development to its partner, French 

major Total, for $900m. The giant 

project on the shores of Lake Albert, 

where Tullow first discovered oil in 2006, 

is estimated to contain 1.7bn barrels of 

oil and forecast to eventually produce 

230,000 barrels per day. 

MATALAN SOOTHES JITTERS 

OVER PROSPECTS 

Matalan has attempted to soothe 

growing fears about its financial health 

by posting an improvement in its cash 

position and talking up its growth 

prospects for the year. 

TRUMP’S SON-IN-LAW TO BE 

SENIOR ADVISER 

US President-elect Donald Trump is 

hiring son-in-law Jared Kushner as a 

senior adviser with a wide-ranging 

portfolio, a person familiar with the 

matter said, bringing to the White 

House one of the most influential 

figures in the Trump camp. Kushner has 

played a large role in Trump’s transition. 

CONCERNS RAISED OVER 

HANJIN TERMINAL DEAL 

Hanjin Shipping’s US creditors are 

fighting the company’s plans to sell its 

stake in one of the South Korean 

carrier’s key remaining assets: the port 

operator that runs the biggest container 

terminal in Long Beach.

CITYAM.COM 

TUESDAY 10 JANUARY 2017 

NEWS 

03 

LONDON’S Tube network may 

have ground to a halt during 

yesterday’s strike, but the 

capital’s commuters showed their 

stoical side, with millions heading 

to work despite the disruption (not 

to mention the rain). Transport for 

London (TfL) insisted 70 per cent of 

stations were open – but that didn’t 

stop commuters stuck in queues for 

hours venting their frustration on 

Twitter. Normal service has resumed. 

COMMENT Sadiq Khan needs to 

get tough with the striking unions 

Millions of commuters faced 

chaos, crowding and congestion 

after barely a few thousand Tube 

workers decided to cripple the 

capital in defence of a few hundred 

ticket offices. Much of the action has 

been organised by the RMT, whose 

president, Sean Hoyle, has vowed to “bring 

down this bloody working-class-hating 

Tory government”. Such fired-up rhetoric 

suggests there’s more to the strikes than 

some HR issues. 

Meanwhile, London mayor Sadiq Khan 

has been keen to stress that the dispute 

goes back to the time of his predecessor, 

Boris - but in reality it was Red Ken who 

first approved the closure of obsolete ticket 

offices. As ever, unions blame the action on 

fears over safety, but in reality it comes 

down to the age-old battle between the 

old way of doing things and the 

possibilities (or necessities) presented by 

technological change. 

We’ve seen the same old rows erupt over 

the introduction of the Night Tube, with 

strikes called despite generous bonus 

payments offered on top of already 

generous pay and perks. While it’s right 

that changes must be managed and 

introduced with the support of staff (where 

possible) the unions cannot hold 

Londoners to ransom. It’s time for Sadiq 

Khan to take a firmer line with the unions 

to prevent any further walkouts. 

the capital millions 

58 per cent of our 7,000 members 

were negatively affected by 

shutdowns”, pointing to cancelled 

meetings and staff absences. 

The London Chamber of Commerce 

and Industry’s (LCCI) boss Colin Stanbridge 

said an extra unknown is “the 

reputational cost of the centre of London 

being perceived as closed for business 

at the very time when we want 

London to be attractive for business”. 

•The UK could be facing industrial 

disputes at nuclear power plants after 

unions agreed to ballot decommissioning 

workers over a potential strike. 

Workers at plants including 

Sellafield could launch industrial 

action after the Nuclear 

Decommissioning Authority kicked 

off a statutory consultation over 

changes to final salary schemes for 

staff at 19 sites across the UK. 

Owner of Daily Star and Sunday 

Express mulling a sale to Trinity 

FRANCESCA WASHTELL 

@fwashtell 

MEDIA mogul Richard Desmond is 

in talks to sell his four UK tabloids 

and other key publications to rival 

group Trinity Mirror. 

Desmond’s Northern and Shell 

Media Group is in discussions to 

sell the Daily Express, Sunday 

Express, Daily Star and Daily Star 

Sunday to the rival media firm, 

Bloomberg first reported. However, 

the sale could take the form of 

Trinity Mirror buying a minority 

stake rather than outright control 

of the national newspapers. 

In addition, the talks also include 

the purchase of OK! and other 

magazines owned by Northern and 

Shell, Sky reported. 

Trinity Mirror is expected to 

update the London Stock Exchange 

on the talks this morning. Trinity 

declined to comment. Northern and 

Shell could not be reached. 

Theresa May blames the media 

for sterling’s rough ride recently 

JULIAN HARRIS 

@haribonomics 

THERESA May has blamed the fall in 

sterling on press reports that she is 

planning a so-called hard Brexit. 

The pound fell to its lowest level 

against the dollar since October 

yesterday, after the Prime Minister 

heavily implied the UK will not stay 

in the Single Market after Brexit. 

Sterling dropped from $1.229 at 

the end of last week to $1.212 

yesterday afternoon. It was around 

$1.216 in the early hours of this 

morning. On the night of the EU 

vote, one pound was worth $1.488. 

“I’m tempted to say that the 

people who are getting it wrong are 

those who print things saying I’m 

talking about a hard Brexit, [and 

that] it is absolutely inevitable 

there’s a hard Brexit. I don’t accept 

the terms hard and soft Brexit,” she 

said during an event.. 

On Sunday May appeared to hit 

back at those wanting the UK to keep 

hold of “bits” of EU membership. Her 

comments rocked the pound as soon 

as Asian markets opened.


CITYAM.COM 

IN BRIEF 

HAMMOND HITS DUBLIN FOR 

BREXIT TALKS 

UK chancellor Philip Hammond has 

travelled to Dublin this week for a “warm 

and constructive” meeting with his Irish 

opposite number. Hammond met with 

Irish finance minister Michael Noonan 

before talks with a handful of financial 

services companies based in Ireland. 

Although a Treasury spokeswoman 

declined to comment on the UK 

chancellor’s meetings with firms, 

Hammond revealed he visited Ireland to 

discuss how to maintain the “closest 

possible” economic ties between the 

two nations. “Trade between our two 

countries benefits each nation 

enormously and supports hundreds of 

thousands of jobs, so it is in everyone’s 

interest to build upon our strong ties,” 

the chancellor said. 

FOX CALLS FOR A YEAR OF 

EXPORTING 

International trade secretary Liam Fox 

has identified 50 countries for growing 

trade as he called on businesses to make 

2017 “the year of exporting”. Department 

of International Trade experts identified 

projects including renewable energy in 

Kenya and advanced manufacturing in 

Brazil as potential avenues for British 

investment. And Fox argued that all 50 

markets cited by the trade department 

would be boosted by the arrival of British 

expertise. He claimed that the 

Department of International Trade’s 

collaboration with trade ambassadors 

had helped secure business for the UK 

including a £100m deal to export solar 

farm technology to Africa and a £50m 

deal to build an amusement park in 

China. 

ABBOTT BACKS TORY MP’S 

COMMONWEALTH PLAN 

A new paper backed by former 

Australian Prime Minister Tony Abbott is 

calling on the UK to quit the EU’s 

customs union and focus on 

Commonwealth trade after Brexit. The 

report, authored by Tory MP James 

Cleverly, suggests a five-step approach to 

Britain’s trade priorities, beginning with 

the Commonwealth’s open economies. 

After setting up “easy win” deals with 

Australia, Canada, Singapore and New 

Zealand for Brexit in 2019, the UK should 

pivot to negotiations with India, before 

deals with the Commonwealth nations 

of Africa, the Caribbean and the Pacific. 

Finally, Cleverly said the UK should join 

the Trade in Service Agreement, a 

US-EU-Australian deal which is geared 

towards services. 

BOJO SHOWS OFF TRADE MOJO Foreign 

secretary meets US speaker Paul Ryan 

FOREIGN secretary Boris Johnson met the speaker of the House of Representatives 

Paul Ryan last night and declared that Britain is “first in line” for a trade deal with 

the US. “It’s going to be a very exciting year for both our countries,” Johnson said. 

Corbyn calls for 

a return to state 

aid programmes 

MARK SANDS 

@MkSands 

LABOUR leader Jeremy Corbyn wants 

a return to state aid programmes in 

the aftermath of Brexit, and 

has insisted his party is not 

“wedded” to European 

freedom of movement. 

Making a landmark 

speech today, Corbyn 

will lay out Labour’s 

vision for Britain once 

the country has left the 

EU. 

“Britain can be better off 

after Brexit,” Corbyn will say, 

arguing for an old-style industrial 

strategy. 

“We will push to maintain full access 

to the European Single Market to 

protect living standards and jobs. 

“But we will also press to repatriate 

powers from Brussels for the British 

government to develop a genuine in- 

Jeremy Corbyn will lay out 

Labour’s economic plan 

dustrial strategy essential for the 

economy of the future,” Corbyn will 

say. 

“Tory governments have hidden behind 

EU state aid rules because they 

don’t want to intervene. But EU 

rules can also be a block on 

the action that’s needed to 

support our economy, decent 

jobs and living standards. 

“Labour will use state aid powers 

in a drive to build a new economy, 

based on new technology and the 

green industries of the future.” 

Corbyn will also say Labour is not 

“wedded” to freedom of movement, 

instead backing a programme of 

“managed migration” from the EU. 

The battle to maintain the UK’s 

access to Single Market heats up 

MARK SANDS AND HAYLEY KIRTON 

@MkSands @HayleyLEK 

ACCESS to the Single Market must be 

maintained for the sake of the 

financial sector, argued a new report 

out yesterday. 

In particular, the draft of the report 

from financial industry body International 

Regulatory Strategy Group 

(IRSG), which has been produced by 

law firm Hogan Lovells and lobbying 

group TheCityUK, warns loss of passporting 

rights could wobble London’s 

standing as a financial capital. 

The contents of the report, first reported 

on by Sky News, were revealed 

just a day after PM Theresa May 

dropped some strong hints that the 

UK would not hold onto its Single 

Market membership post-Brexit. 

Last month, Brexit secretary David 

Davis and chancellor Philip Hammond 

met with City bosses for a 

roundtable. A Square Mile source said 

the meeting showed signs of improved 

coordination and increased 

willingness to listen to the industry.

CITYAM.COM 

BMW commits to 

Mexico plant as 

Chrysler wavers 


@fwashtell 

BMW HAS committed to plans to 

build a new $1bn (£814m) plant in 

Mexico, despite recent comments 

from President-elect Donald Trump 

that have spooked other car firms. 

The German car giant’s sales and 

marketing director, Ian Robertson, 

said the firm was “absolutely” committed 

to its plant in San Luis Potosi, 

where it will make its 3 Series Sedan 

cars from 2019 onwards. “I don’t 

think there’s any discussion that 

BMW is not at home in the US,” 

Robertson told the BBC. 

However, BMW’s Mexican plant will 

produce cars for the global market, 

not just the US. 

“San Luis Potosi will build the BMW 

3 Series Sedan from 2019 onwards,” 

BMW said in a statement. “The production 

is planned for the world market. 

The planned capacity will be a 

maximum of 150,000 units.” 

Trump has floated the idea of imposing 

a border tax on companies, such 

as Toyota, that make cars in Mexico 

for the US market. 

Ford abruptly scrapped plans to 

build a $1.6bn plant in central Mexico 

last week in favour of a $700m investment 

in Michigan. The company said 

the move was unrelated to Trump, but 

the President-elect has tweeted criticism 

of both Ford and General Motors 

over their production in Mexico. 

Yesterday, Fiat Chrysler’s chief executive 

Sergio Marchionne indicated the 

car firm may close its Mexican plants. 

“We are waiting for the new rules and 

will adapt to them,” Marchionne said 

to reporters at the Detroit Motor 

Show. 

“It’s possible, if the economic terms 

imposed by the US administration on 

anything that comes into the United 

States that, if they’re sufficiently large 

that it would make the production of 

anything in Mexico uneconomical... 

We would have to withdraw.” 

William Hill is one of the UK’s biggest bookmakers and sponsors many horse events 

Poor horse racing results hurt 

William Hill’s December trading 

CAITLÍN MORRISON 

@citycait 

WILLIAM Hill yesterday said trading 

was hit in the final month of last year 

due to unfavourable football and 

horseracing results, meaning the 

group’s profit for 2016 was around 

£20m lower than expectations. 

The bookmaker reported an 

operating profit of £260m, against 

expectations of profit between 

£260m to £280m. 

The company said that since its 

last trading update in November, 

wagering trends had continued on a 

similar path, but gross win margins 

were below expectations. “Customerfriendly” 

results at the end of the 

year also hit profits. 

Shares in the firm closed down 

two per cent, to 291.6p. 


IN BRIEF 

NEWS 

05 

IG SEES THE POSITIVE IN 

FRENCH PUSH BACK 

IG Group yesterday offered its 

support to the French watchdog’s 

latest efforts to clamp down on the 

spreadbetting market. It said the 

latest raft of rules from the Autorite 

des Marches Financiers (AMF) “will 

provide substantial protection for 

consumers and greatly improve 

standards in the sector”. Watchdogs 

across Europe are currently 

clamping down on the 

spreadbetting market. 

SNOOPERS’ CHARTER 

GETS LEGAL CHALLENGE 

Privacy group Liberty is seeking to 

challenge the government’s socalled 

snooper’s charter that allows 

it to collect wide-ranging email and 

internet history data from citizens. 

The group is launching a 

crowdfunding campaign to raise 

funds for a legal challenge against 

the Investigatory Powers Act, which 

it called “an unprecedented, 

unjustified assault on our freedom” 

in the High Court. 

FERREXPO SHARES SHINE 

AS 2016 SALES SOAR 

Shares in Ferrexpo closed up two 

per cent to 132p yesterday after the 

FTSE 250-listed miner reported 

record sales and a bolstered balance 

sheet in a trading update. Ferrexpo, 

which makes iron ore pellets used in 

steelmaking, sold a record 11.7m 

tonnes of pellets last year and its 

cash balance now stands at around 

$145m (£118m), up $110m from 

$35m a year ago. also managed to 

retire $196m of debt last year. 

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CITYAM.COM 


NEWS 

07 

Tesco to offload 1,000 distribution 

jobs in warehousing restructure 


@fwashtell 

TESCO is set to lay off 1,000 members 

of staff from its distribution network 

as part of a wider streamlining 

programme. 

The proposed changes will reduce 

the number of its distribution 

centres in the UK from 25 to 23 and 

will result in 1,000 redundancies. 

However, the move will also create 

500 new jobs, leaving a net total of 

500 jobs lost at the Big Four 

supermarket group. 

Tesco will close its Welham Green 

distribution centre, moving its 

grocery operations from the site to 

the Reading distribution centre, and 

will withdraw from the Daventry 

clothing distribution hub. 

It will also bring all warehouse 

operations currently carried out by 

DHL and Wincanton in-house and 

will “simplify the management 

structure” across all distribution 

centres. 

“As the needs of our customers 

change, it’s vital we transform our 

business for the future,” said Matt 

Davies, chief executive of Tesco UK 

and Ireland. 

“These changes will help to 

simplify our distribution operations 

so we can continue to serve our 

customers better.” 

Discount supermarket Aldi opened 70 new stores throughout 2016 

Aldi gets festive 

lift from record 

Christmas sales 

HELEN CAHILL 

@HelCahill 

ALDI boosted its Christmas sales in 

2016 after a bumper year of store 

openings. 

The discount supermarket opened 

70 new stores throughout the year, 

leading it to 15 per cent year-on-year 

sales growth in December – its highest 

growth since landing in the UK in 

1990. 

Aldi did not disclose its like-for-like 

sales growth for the final month of 

2016, but said the figure was 

“positive”. 

The German discounter now has 692 

stores in the UK and has plans to open 

70 more this year, as part of Aldi’s 

push to gain a 10 per cent share of the 

UK grocery market. Aldi’s 700th store 

will open in February. 

Retail analyst Richard Hyman said: 

“I think 15 per cent is an excellent 

number and suggests very good 

like-for-like growth. 

“There is an attempt to move the 

competitive narrative to focus on a 

slowdown in the discounters’ market 

share growth, but this was bound to 

happen. 

“The key point is that they are still 

growing, and by doing so taking share 

from the majors.” 

“As Britain’s fastest-growing supermarket 

we remain committed to 

meeting the strong demand across 

the country for new Aldi stores,” said 

Matthew Barnes, chief executive of 

Aldi UK. 

The grocer offers some of the 

cheapest groceries in the country, but 

has announced that its staff would 

not be paying the price. 

Following Lidl’s commitment to pay 

employees the living wage rate of pay, 

Aldi said it will be paying its staff the 

highest hourly rate for supermarkets 

from 1 February. 

Aldi plans to pay its staff a minimum 

of £8.53 an hour nationally, and 

£9.75 an hour in London. 

Consumer spending slowdown 

set to sting retailers this year 

HELEN CAHILL 

@HelCahill 

RETAILERS are bracing themselves for 

a possible slowdown in consumer 

spending this year, but the sector 

ended 2016 in (relatively) good health, 

thanks to a strong performance on 

Christmas week. 

Like-for-like retail sales increased 

one per cent year-on-year in 

December 2016, according to figures 

from the British Retail Consortium 

and KPMG, improving from a growth 

of just 0.1 per cent in 2015. 

Meanwhile, a separate study by 

Barclaycard found that consumer 

spending cooled towards the end of 

2016, pointing to a slowdown in 

Britain’s spending spree following 

the Brexit vote. 

In October and November, 

consumer spending growth hit 5.5 

per cent and 5.1 per cent 

respectively, according to 

Barclaycard’s research. 

But this figure fell to four per cent 

growth year-on-year in December.


CITYAM.COM 

Ministry of Defence strikes £271m 

helicopter deal saving 500 jobs 

REBECCA SMITH 

@BexKSmith 

THE MINISTRY of Defence (MoD) has 

announced a £271m deal with 

Leonardo Helicopters to safeguard 

around 500 jobs, the majority of 

which will be in Yeovil. 

The five-year deal will deliver a 

range of support and training 

services for the UK’s fleet of 62 

AW159 Wildcat helicopters, used 

by the Royal Navy and Army 

Air Corps. 

The MoD said “the overwhelming 

majority” – over 80 per cent – of the 

500 jobs sustained, will be at 

Leonardo’s facilities in Yeovil and 

Royal Naval Air Station Yeovilton, 

which is the home of Wildcat 

training and maintenance in the UK. 

Another 100 jobs will be 

maintained in Leonardo’s 

supply chain. 

Minister for defence procurement, 

Harriett Baldwin, said: “This Wildcat 

deal delivers a key capability for the 

Royal Navy and Army, and supports 

vital high-skilled jobs in Somerset, 

where there’s a proud tradition of 

supporting UK helicopter operations.” 

The new Wildcat support and 

training contract will also support 

jobs in Edinburgh and Luton, where 

Leonardo manufactures defensive 

aids systems, as well as Crawley. 

The majority of the 500 jobs sustained will be at Leonardo’s facilities in Yeovil 

British player 

still hopeful on 

green bank bid 

WILLIAM TURVILL 

@wturvill 

THE BRITISH bidder for the government’s 

Green Investment Bank (GIB) 

has retained hope of landing the asset 

as the preferred buyer’s offer comes 

under scrutiny. 

Australian investment bank Macquarie 

has been the government’s preferred 

bidder for the privatisation 

since the autumn. But, after it was reported 

over the weekend that Macquarie 

plans to strip the bank of its 

prized assets, the deal has come under 

scrutiny, with former Tory minister 

for energy and climate change Gregory 

Barker calling for the sale to be 

halted. 

Sustainable Development Capital 

(SDC), which led a rival consortium 

bid for GIB, indicated yesterday that it 

remains in the race and believes it can 

“deliver the best outcome for the privatisation 

process”. 

SDC chief executive Jonathan 

Maxwell told City A.M.: “We remain 

eager and able to make the acquisition 

and a sale to us would better further 

the green agenda of the GIB, 

which the UK government pledged to 

uphold, while meeting the objectives 

of the privatisation, being value for 

money for the UK taxpayer, transaction 

certainty and continuity.” 

A spokesperson for the BEIS said: 

“Any government decisions on the 

sale of the GIB will be driven by what 

best achieves our objectives, including 

continued investment in the green 

economy and a sale which is in the 

best interests of the taxpayer.” 

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NEWS 

09 

CAMPING BUZZ VW unveils ID Buzz, a new 

electric version of its iconic road-trip van 

Eurozone youth unemployment 

rises sharply despite wider EU falls 

JASPER JOLLY 

@jjpjolly 

UNEMPLOYMENT in the European 

Union has fallen to its lowest point 

since February 2009 but youth 

unemployment rose sharply, adding 

further weight to concerns about the 

uneven nature of Europe’s recovery. 

The unemployment rate in the EU 

fell to 8.3 per cent in November, down 

0.1 percentage points from the 

month before, according to the 

European Commission. However, 

seasonally adjusted youth 

unemployment rose by 0.3 percentage 

points in the Eurozone to 21.2 per 

cent. 

The Eurozone measure of 

unemployment, which the European 

Central Bank (ECB) watches closely, 

remained flat at 9.8 per cent after 

falling below 10 per cent in 

September for the first time since 

2011. Eurozone unemployment has 

steadily fallen from its 2013 highs, 

but youth unemployment – referring 

to the proportion of 18- to 25-year-olds 

out of work – remains at a very high 

proportion. Spain’s rate of youth 

unemployment climbed to 44.4 per 

cent in November. 

ECB president Mario Draghi has 

asserted that accommodative 

monetary policy has been a key driver 

of the fragile European recovery. 

VOLKSWAGEN has given its classic camper van a futuristic, driverless revamp with 

the ID Buzz concept. The camper is not a vehicle for speed freaks: it does 0-60mph in 

five seconds, while the top speed is 99mph. The vehicle could hit the roads in 2020 

VW owners take 

emissions claims 

to the High Court 

EMMA HASLETT 

@emmahaslett 

A LAW firm has applied for a group 

litigation order against Volkswagen 

on behalf of thousands of owners of 

cars manufactured by the company. 

Harcus Sinclair said it was planning 

to bring claims in the High Court on 

behalf of owners of VW, Seat, Audi 

and Skoda vehicles. 

While the company has been hit 

with lawsuits in the US, with a judge 

signing off a $15bn (£12.3bn) settlement 

in October, this is the first such 

claim in the UK. It’s also been sued by 

investors, who want €8.2bn (£7.1bn) in 

damages. It follows the discovery in 

2015 that cars manufactured by the 

group with certain diesel engines 

were fitted with a so-called defeat device, 

which cheated emissions tests in 

laboratory settings. In October it admitted 

it has set aside €1bn to deal 

with the scandal. 

Harcus Sinclair, which has teamed 

up with Slater and Gordon for the 

suit, said it was alleging cars whose 

engines were fitted with the device 

should never have been certified. 

“We have paved the way for consumers 

who trusted but were let 

down by VW, Audi, Seat and Skoda to 

seek redress through our courts,” said 

Damon Parker, head of litigation at 

Harcus Sinclair. 

“It is only right that UK car owners 

affected by the scandal have the opportunity 

to seek compensation. We 

have secured funding so that those affected 

can bring this claim against 

VW at no cost to themselves. 

“The group action aims to ensure 

that, if VW is found to have misled 

consumers about the environmental 

damage caused by their cars, they are 

penalised accordingly so as to discourage 

this sort of behaviour from happening 

again.” 

VW intends to defend the claims “robustly”. 

“Technical measures have already 

been developed by the Volkswagen 

Group for vehicles affected by the NOx 

emissions issue and approved in principle 

by the relevant certifying authorities. 

Final approvals have also 

been provided by the authorities in respect 

of the vast majority of the affected 

models.” 

Deliveroo riders head for legal 

action to gain workers’ rights 

Dedicated support 

to help you navigate 

the markets 

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with a range of resources to 

suit all levels of experience 

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whenever the markets are open. 


@fwashtell 

LEGAL eagles at the same law firm that 

last year won a landmark tribunal 

against Uber have said they are advising 

Deliveroo riders on potential legal 

action over workers’ rights. 

Law firm Leigh Day is counselling 

delivery staff at the company, which 

claims its riders are self-employed 

contractors and therefore not entitled 

to rights such as holiday pay and the 

national minimum wage. 

Leigh Day’s employment team is 

gearing up to argue that as Deliveroo 

drivers are recruited by the company, 

are required to wear Deliveroobranded 

uniform, have to use a 

specific branded box, and are subject 

to performance reviews, this means 

they are not self-employed and are 

being unlawfully denied employment 

rights and protections. 

In October, Leigh Day represented 

Uber workers in a tribunal that found 

drivers are not self-employed and are 

entitled to basic workers’ rights. 

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deposits. All trading involves risk.


CITYAM.COM 

Brexit vote puts 

UK house price 

growth in doubt 

HELEN CAHILL 

@HelCahill 

UK HOUSE prices grew 6.5 per cent 

year-on-year in December, Halifax said 

yesterday, as it warned that housing 

demand is expected to drop in 2017. 

Annual house price growth had 

dropped down from a peak of 10 per 

cent in March 2016. 

The UK average house price reached 

£222,484 in the final month of last 

year, up 1.7 per cent on November’s average 

— the biggest month-on-month 

growth since March 2016, when prices 

increased 2.2 per cent. 

House prices were up 2.5 per cent 

quarter-on-quarter. 

Luton scored the highest increases 

in house prices over the year, up by a 

hefty 19.4 per cent, followed by Barking 

and Dagenham, where average 

house prices jumped 18.6 per cent. 

Martin Ellis, Halifax’s housing economist, 

said: “Slower economic growth, 

pressure on employment and a 

squeeze on spending power, together 

with affordability constraints, are expected 

to reduce housing demand 

during 2017. 

“UK house prices should, however, 

continue to be supported by an ongoing 

shortage of property for sale, low 

levels of housebuilding, and exceptionally 

low interest rates.” 

Ellis said that house price growth 

could drop to between one to four per 

cent by the end of the year, but that it 

was difficult to make exact predictions 

due to the uncertainty surrounding 

the UK economy. 

The number of home sales stayed 

steady in 2016 at 1.2m, with sales between 

September and November 

falling by nine per cent on the same 

period in 2015. 

Howard Archer, chief UK economist 

for IHS Markit, said: “Despite the robust 

Halifax December data, we suspect 

that housing market activity and 

prices will come under increasing 

pressure as 2017 progresses.” 

The housing market has surged in recent years as demand outweighs supply 

Housebuilder Bovis Homes’ boss 

to step down amid flat profits 

EMMA HASLETT 

@emmahaslett 

HOUSEBUILDER Bovis Homes said 

yesterday that its chief executive, 

David Ritchie, will step down with 

immediate effect. 

Shares rose 0.8 per cent by the 

market close yesterday, to 818p. 

Ritchie joined the firm 18 years ago, 

and has been boss for eight years. 

At the end of last month shares in 

the company fell as it admitted 

profits for 2016 were likely to be flat. 

In a trading update between 

Christmas and the new year, the 

company said it expected volume 

delivery for 2016 to be lower than 

previously forecast, with 180 

completions deferred into early 2017. 

That was likely to put profits 

before tax in a range of £160-170m. 

HMRC office 

closure savings 

shrink £300m 

MARK SANDS 

@MkSands 

THE TAXMAN'S plans to shutter 

large numbers of local office will 

now save less than half the amount 

originally forecast by 2025. 

HM Revenue and Customs is 

closing all of its 170 offices in a 

migration to 17 sites, as well as a 

London headquarters. 

The plan had been expected to 

generate savings of £499m by 

2025/26, but a report from the 

National Audit Office has revealed 

that forecast has now been slashed. 

It is now expected to save HMRC 

£212m over the same period. 

Estimates for estate costs over 

the next 10 years have also risen by 

nearly 22 per cent, or £600m. 

The figures are blamed on delays 

in the process, although HMRC 

remains confident that by 2025 

total running costs will be £83m, or 

31 per cent, lower than at present. 

Amyas Morse, head of the 

National Audit Office, said: 

“[HMRC] should step back and 

consider whether this strategy still 

best supports its wider business 

transformation and will deliver the 

sustainable cost savings it set out to 

achieve in the long run.” 

London renters still struggling 

despite prices edging downwards 

Liverpool lures talent 

with top job role title 

HELEN CAHILL 

@HelCahill 

AVERAGE rents in London edged 

down slightly at the end of 2016, but 

remained more than twice as 

expensive as rents across the country. 

In December, London rents fell by 

0.13 per cent, with the average rent 

coming in at £1,882 per month. 

The high rents in London are 

eating into the disposable incomes 

of the capital’s workers, with many 

spending more than half their cash 

on rental accommodation. Renters in 

a one-bed flat paid £1,455 on average 

in December, which represents 

nearly three-quarters of the average 

disposable income of a Londoner. 

Outside London, however, new 

tenants paid £750 per month on 

average, according to data from 

Landbay. 

John Goodall, chief executive of 

Landbay, said: “Outside the capital, 

rents continued to grow across the 

country in 2016, a trend we expect to 

continue into the coming year. 

“Demand for rented 

accommodation will remain robust, 

as the myriad threats of rising house 

prices, falling real incomes and 

rising inflation affect the ability of 

aspiring homeowners to get their 

foot on the housing ladder and save 

for a deposit.” 

CAITLÍN MORRISON 

@citycait 

DATA from job website CV-Library 

has revealed that those seeking to 

shake up their careers in 2017 

should be focusing on Liverpool for 

the best chance of scoring a new 

role, with the northern city taking 

the top spot for vacancies for the 

second year in a row. 

The average number of jobs in 

the city went up 23 per cent last 

year, followed by Edinburgh, where 

job numbers went up 20 per cent 

and then London, where there was 

a 19 per cent increase in job ads. 

CV-Library also warned that 

competition in these locations is 

fierce – with applications for jobs 

in Liverpool rising by 24 per cent in 

2016, and up by 10 per cent and 

nine per cent in the Scottish and 

English capitals, respectively.

CITYAM.COM 


NEWS 

11 

City Airport flies 

to record year 

for passengers 

REBECCA SMITH 

@BexKSmith 

LONDON City Airport has soared to 

a record 2016. 

The Royal Docks-based airport 

announced five per cent year-on-year 

growth, recording 4,526,059 passengers 

for the year. 

That is the most in its 30-year history, 

and City said this was driven by 

expanding routes and investment in 

facilities. 

Chief executive Declan Collier said: 

“With 52 per cent of all passengers 

travelling for business, the five per 

cent year-on-year growth demonstrates 

that the appetite for business 

travel to and from London remains 

strong despite the unpredictable political 

climate, as we prepare to expand 

the airport in 2017 to meet increasing 

demand.” 

Six new routes were added last 

year including Alicante, Berlin, 

Bremen and Cardiff. 

The busiest month on record for 

the airport was July last year, 

during which 421,518 passengers departed 

or arrived at London 

City Airport. 

Last summer, the government also 

approved planning permission for the 

£344m City Airport Development Programme 

(CADP), with construction 

beginning this year. 

The development should bolster 

numbers further, enabling 6.5m passengers 

to travel through the airport 

by 2025 and add a further 29,000 

flights per year. 

Gatwick Airport meanwhile, has revealed 

a report by Oxford Economics, 

showing the airport contributed 

£5.3bn or 0.3 per cent of the UK’s GDP 

in 2016. 

If passenger numbers grow by 

around 20 per cent from 43m a year 

today (broadly similar to the growth 

rate achieved over the past five years), 

its contribution could rise to £6.5bn, 

and support 13,000 new jobs by 2025. 

The airline chose Amy Johnson as its second British face after author Roald Dahl 

Norwegian picks pioneering 

pilot as new British tail fin hero 

REBECCA SMITH 

@BexKSmith 

AVIATION pioneer Amy Johnson has 

been named as Norwegian’s second 

British “tail fin hero”, after author 

Roald Dahl was revealed as the first 

last September. 

The pilot’s portrait will appear on 

two Norwegian aircraft later this year. 

The airline has a raft of well-known 

figures on its aircraft, with more 

than 80 different tail fin heroes. It 

began a series of British ones last year 

to mark its development in the UK. 

Norwegian’s chief commercial 

officer Thomas Ramdahl said: “Amy 

Johnson is a giant in the history of 

aviation and a truly inspirational 

British figure so it is a huge honour 

to have her adorn our aircraft and 

help her take to the skies once more.” 

BA owner picks 

startups for its 

first accelerator 

REBECCA SMITH 

@BexKSmith 

FROM hundreds of applicants, 

International Airlines Group (IAG) 

has whittled down the numbers to 

select four finalists for its first ever 

accelerator programme. 

The four startups chosen from 

450 applications include Esplorio, 

an app for people to record and 

share their travel experiences and 

Resolver, an online service for 

consumers to flag issues and help 

businesses solve them more 

effectively. 

VChain Tech, which uses 

blockchain technology to help 

airlines share data safely and 

securely when passengers take 

connecting flights, and Warwick 

Analytics, a team of data scientists 

who produce automated predictive 

analytics software fill the other 

two places. 

The parent firm of British 

Airways, Iberia and Aer Lingus, 

invited businesses to pitch for a 

chance at joining the accelerator to 

work with IAG on creating “next 

generation travel experiences” 

through innovative ideas, tech and 

services. The startups will spend 10 

weeks on the programme.


THECAPITALIST 

Brits hit hard by credit cards 

CREDIT card bills can be vicious – 

they name and shame every drunken 

purchase you made during the festive 

season and your lack of money hits 

you like a ton of bricks. 

That’s why it comes as no surprise 

that Brits routinely chicken out from 

taking stock of their finances, figures 

out today show. 

Slightly less than two-thirds 

(64 per cent) of those surveyed by 

Moneysupermarket check their credit 

card statement just once a month. 

The research also revealed that more 

than one in 10 (13 per cent) Brits are 

clueless as to how much 

interest they are paying on their 

cards. 

Meanwhile, 66 per cent have not 

checked their credit score within the 

last year. The truth catches up with us 

eventually... 

QUOTE OF THE DAY 

Remain had the support of 

almost every entity with 

power in Britain, 

Europe, and 

the world 

Vote Leave campaign 

director Dominic 

Cummings on what 

they were up against 

CITYAM.COM 

Got A Story? Email 

thecapitalist@cityam.com 

FOR SALE: ONE ROYAL VIEW Bids for a 

box in the Royal Albert Hall start at £2.5m 

IT’S THE ultimate gift for the culture vulture who has everything: a Grand Tier box at 

the Royal Albert Hall. For the first time in a decade a box on the grand tier, the same 

level as the royal box, has come up for sale. The catch? Offers start at £2.5m. 

NEWS 

Mars in $9bn pet 

hospital buyout 


@wturvill 

CHOCOLATE bar firm Mars has 

agreed a $9.1bn (£7.5bn) takeover deal 

for the largest operator of pet hospitals 

in the US. 

While Mars is best known for its 

bars, the company also owns Whiskas 

and Pedigree and claims to be the 

world’s biggest pet food manufacturer. 

The firm has announced it has made 

a $93-per-share offer for VCA, at a total 

value of $9.1bn, including $1.4bn in 

outstanding debt. 

VCA, which has the ticker symbol 

“WOOF”, saw its share price leap 28 

per cent to $90.79 on the Nasdaq 

by the close in New York last night. 

Mars, which has been in the pet care 

industry for more than 80 years, said 

the offer represented a 41 per cent 

premium on VCA’s 30-day average on 

6 January. 

VCA was founded in 1986 in Los 

Angeles and now has nearly 800 animal 

hospitals with 60 diagnostic laboratories 

across the US and Canada. 

Family-owned Mars already has a 

network of more than 900 clinics. 

“VCA is a leader across pet health 

care and the opportunity we see together 

– for pets, pet owners, veterinarians 

and other pet care providers – 

is tremendous,” said Mars chief executive 

Grant Reid. 

“We have great respect for VCA, with 

whom we share many common values 

and a strong commitment to pet care. 

Together, we will be able to provide 

even greater value, better service and 

higher quality care to pets and pet 

owners.” 

AB InBev and Keurig to build an 

in-home alcohol drink machine 

COURTNEY GOLDSMITH 

@courtneynoelg 

COUNTERTOP coffee pod machines 

like the George Clooney-backed 

Nespresso have grown in popularity 

over recent years, changing the way 

people can get their caffeine fix. 

Now, coffee maker Keurig Green 

Mountain and brewer Anheuser- 

Busch InBev (AB InBev) are teaming 

up to create an in-home alcohol 

drink system in the same vein. 

The two announced this week they 

would enter a joint venture to focus 

on the research and development of 

a product that can produce beer, 

spirits, cocktails and mixers at the 

touch of a button. 

Keurig will use the technology of 

its now-defunct at-home soda 

machine, Keurig Kold, which it cut 

just nine months after it launched 

on the market. AB InBev will bring 

its brewing and packaging 

technology to the table. 

For now, the partnership will focus 

on the North American market.

CITYAM.COM 


NEWS 

13 

Marks and Spencer chairman rejects 

MP demand to reverse benefit cuts 

HELEN CAHILL 

@HelCahill 

THE CHAIRMAN of high street 

stalwart Marks and Spencer has 

defended the company’s decision to 

cut some of the benefits it offers to its 

employees. 

Last year M&S staff were asked to 

sign new contracts that ended 

benefits such as double-pay for 

employees working on Sundays. 

In a letter sent to chairman Robert 

Swannell before Christmas, Labour 

MP Siobhain McDonagh asked the 

M&S board to discuss pay changes at 

a board meeting this month, and 

revoke the new contracts. 

But Swannell replied on 4 January 

saying the business listened to staff 

in a consultation and would not be 

reversing its decision. 

“We do not accept your assertion 

that we have pushed through ‘pay 

cuts’ that are detrimental to 

thousands of our staff, nor the 

suggestion that staff who have 

signed the contract amendment 

have had no choice but to do so,” he 

said. 

The news comes after it emerged 

that the John Lewis Partnership 

chairman refused to meet 

McDonagh after he saw a song on 

YouTube made by her and other MPs. 

The song was part of the MPs’ 

campaign against retailers’ response 

to the national living wage. 

An M&S spokesperson said the 

changes to pay “will reward our 

people in a fair and consistent way” 

and “modernise our business”. 

M&S, chaired by Robert Swannell (insert), will post a trading update on Thursday 

McDonald’s sells 

most of its China 

stores for $2.1bn 



MCDONALD’S is set to sell 80 per cent 

of its China and Hong Kong businesses 

for up to $2.1bn (£1.7bn) in an 

effort to franchise more of its global 

restaurants. 

The deal with Chinese conglomerate 

Citic and US private equity firm Carlyle 

will help McDonald’s cut operating 

costs in its Asian businesses. 

Originally, the fast-food giant 

planned to raise up to $3bn from the 

sale, but it decided to keep a minority 

stake to benefit from future growth in 

China, Reuters reported. 

Hong Kong-listed Citic and its affiliate 

company Citic Capital will hold a 

stake of 52 per cent, while Carlyle will 

hold 28 per cent. McDonald’s will 

hold on to 20 per cent. 

The US-based chain operates and 

owns most of its 2,400 restaurants in 

mainland China and more than 240 

in Hong Kong. It plans to add a further 

1,500 in the areas over the next five 

years. 

With China’s consumer sector on 

the rise and smaller cities starting to 

benefit from urbanisation and increased 

disposable household income, 

fast food restaurants are expected to 

continue their rapid growth, the company 

said. 

McDonald’s announced in May last 

year it would commit to refranchising 

4,000 restaurants by the end of 2018 

with the long-term goal of becoming 

95 per cent franchised. 

In March, the iconic chain said it 

planned to reorganise operations in 

the area and was on the lookout for 

strategic partners in China, Hong 

Kong and South Korea. 

McDonald’s chief executive Steve 

Easterbrook said the region presents a 

huge opportunity for growth. 

“This new partnership will combine 

one of the world’s most powerful 

brands and our unparalleled quality 

standards with partners who have an 

unmatched understanding of the 

local markets and bring enhanced capabilities 

and new partnerships, all 

with a proven record of success,” Easterbrook 

said. 

The 20-year master franchise deal 

has been in negotiations for months. 

McDonald’s received final offers in 

September, which included one from 

TPG Capital and local firm Wemart 

Stores and from House of Fraser 

owner Sanpower Group. 

Future has acquired Classic Rock, Metal Hammer, Prog, Blues and Golden Gods 

Very rock ‘n’ roll: Music mags get 

an encore as ex-owner swoops 


@wturvill 

MEDIA company Future has agreed a 

deal to buy, and rescue, a group of 

rock magazines. 

Future’s share price dropped by 

two per cent yesterday after it 

announced the deal for Classic Rock, 

Metal Hammer, Prog, Blues and 

Golden Gods. 

The publisher sold the titles for 

£10.2m in 2013 to Team Rock, which 

went into administration shortly 

before Christmas. And it will now 

buy them for £800,000 from FRP 

Advisory, the administrators of Team 

Rock. 

The company, which already 

publishes Guitarist, Music Radar and 

Rhythm, said the deal “marks a 

further step in our buy and build 

strategy”. 

Future chief executive Zillah Byng- 

Thorne said: “It further reinforces 

our creation of a leading global 

specialist media platform with data 

at its heart, which we are monetising 

through diversified revenue 

streams.” 

Turkey firm in 

pension probe 

after carve-up 


@wturvill 

THE PENSIONS lifeboat is looking 

into the retirement plans of a 

turkey company that went into 

administration last year. 

Bernard Matthews was acquired 

from private equity firm Rutland 

Partners by 2 Sisters in September. 

2 Sisters, whose chief executive 

Ranjit Boparan is known as the 

“chicken king”, agreed the deal 

under a pre-pack administration, 

meaning it bought the assets of the 

company but not the liabilities, 

including pensions. The scheme is 

set to be absorbed by The Pension 

Protection Fund (PPF) and many of 

its 700 members face cuts to their 

retirement income. 

Malcolm Weir, head of 

restructuring and insolvency at the 

PPF, said the Bernard Matthews 

pension scheme was being assessed. 

“We will therefore work with the 

insolvency practitioner, the 

Pensions Regulator and the trustees 

of the scheme to maximise the 

recovery to the scheme,” he said. 

“While the PPF does not have 

investigatory or regulatory powers 

other parties do.” 

Trustees of the scheme are also 

investigating the funding of the 

scheme. The FT reported that both 

groups were investigating whether 

the retirement plan was deprived of 

cash before Bernard Matthews went 

into administration. 

Voyageurs du Monde eyes English 

travellers with Original purchase 

In 2015, travel giant Voyageurs du Monde reported revenue of €362m (£313m) 



LEADING French travel firm 

Voyageurs du Monde yesterday said it 

would acquire 60 per cent of UK-based 

Original Travel in an effort to further 

expand into English-speaking 

markets. 

The Euronext Paris-listed company 

has a 40 per cent share of the French 

market, but it’s now eyeing up 

expansion in the UK, US, Canada, 

Singapore, Hong Kong, Dubai and 

Australia. 

The acquisition follows a 12-month 

review of the UK market, during 

which time Voyageurs said it was 

impressed by Original Travel’s 

growth. 

The British travel firm, which is 

one of the UK’s fastest growing 

bespoke travel companies, has grown 

steadily since it was established in 

2003, and in 2016, revenue grew by 

more than 20 per cent to £15m. In 

contrast, the bespoke travel sector 

has only recently returned to levels 

seen before the recession, the French 

company said. 

Original Travel will retain 40 per 

cent of the business and will operate 

as Voyageur’s partner. The British 

company will be its platform for 

organic and acquisitive growth in 

the English-speaking world.

14 MARKETS TUESDAY 10 JANUARY 2017 

CITYAM.COM 

CITYDASHBOARD 

YOUR ONE-STOP SHOP BROKER 

VIEWS AND MARKET REPORTS 

In association with 

LONDON REPORT BEST OF THE BROKERS NEW YORK 

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

Pound weakness 

leads to strong 

gains for FTSE 100 

THE FTSE 100 broke fresh 

records last night, pushed 

up by rallying resource 

stocks and a weak sterling. 

The blue-chip index touched 

a new record high of 7,243.76 points, 

then settled at 7,237.77 points, up 0.4 

per cent, for the close. It chalked up 

its tenth straight daily session of 

gains. 

The index tends to gain as sterling 

drops, due to a large number of 

dollar-earning constituents. 

Strong performance in basic 

resources and consumer stocks also 

underpinned the index. Glencore, 

Randgold Resources and BHP Billiton 

were among the top gainers as gold 

and silver prices rebounded. 

Glencore led the FTSE, closing up 

3.6 per cent, supported by a note by 

Barclays reiterating its “overweight” 

rating and increasing its target price 

on the stock. 

Cigarette sellers British American 

Tobacco and Imperial Brands were 

third and fourth top gainers, leading 

the consumer goods sector higher. 

Outsourcing company Capita was 

the top faller, followed by Land 

Securities Group and RBS. 

FTSE 

7,240 

7,220 

7,200 

7,180 

7,160 

7,140 

7,237.77 

9 Jan 

3 Jan 4 Jan 5 Jan 6 Jan 

9 Jan 

CITY MOVES WHO’S SWITCHING JOBS 

CENTAMIN 

145 

142.50 

140 

137.50 

P 

3 Jan 

4 Jan 5 Jan 

6 Jan 9 Jan 

Centamin’s fourth quarter production results have led Panmure Gordon to issue an 

unchanged rating of “hold” with a target price of 167p. But the mining company 

could be on track to strike gold after full-year guidance exceeded expectations. 

Panmure Gordon said “the strong financial position and strong cash generation” at 

Centamin’s Sukari mine will see a bumper dividend payment at the full-year results. 

SAFESTORE 

380 

375 

370 

365 

360 

355 

350 

P 

3 Jan 

140.70 

9 Jan 

9 Jan 

348.10 

4 Jan 5 Jan 

6 Jan 9 Jan 

The search for storage is still going strong – at least if Safestore’s results are anything 

to go by. It announced a 24 per cent rise in underlying profits and Liberum thinks 

there’s still space for improvement for the provider of self-storage. It said “further 

self-help potential within the acquired Space Maker portfolio” means there’s still 

significant “upside potential”. It reiterated a “buy” rating and target price of 475p. 

Oil drop drags 

down Dow 

DECLINES in energy and financial 

stocks weighed on the S&P 500 

yesterday and helped stall the 

Dow’s pursuit of the 20,000 milestone 

ahead of earnings season and 

expected US policy changes under the 

Donald Trump presidency. 

The Nasdaq notched a record high 

close, extending its bullish run with 

help from healthcare stocks. 

The S&P’s energy sector dropped 1.5 

per cent as oil prices slid on concerns 

that rising Iraqi exports and US output 

could dampen the impact of a deal 

among producers to limit output. 

The Dow Jones Industrial Average 

was down 76.42 points, or 0.38 per 

cent, to 19,887.38, the S&P 500 had 

lost 8.08 points, or 0.35 per cent, to 

2,268.9 and the Nasdaq Composite 

had added 10.76 points, or 0.19 per 

cent, to 5,531.82. Nasdaq’s biggest 

drivers in the healthcare sector were 

Ariad Pharmaceuticals, which closed 

up 72.9 per cent on a $5.2bn buyout 

deal with Japan’s Takeda with a 9.4 

per cent jump after it announced 

advancements in its cancer drug 

program with Merck. 

SAFFERY CHAMPNESS 

Top 20 accountancy firm 

Saffery Champness has 

elected James Sykes to a fouryear 

term as the firm’s new 

chairman. James takes over 

from incumbent chairman 

David Macey, who has served 

in the role since 2013. James is 

a specialist in advising private 

clients, including families with 

landed estates and growing 

commercial enterprises. He trained with Saffery 

Champness, having joined as a graduate in 1987, and 

became a partner in 1997. James has previously sat on 

the firm’s management board, headed its private 

wealth practice group, and been deputy chairman. 

Based in the firm’s London office, James will continue 

to advise clients across the UK alongside his duties as 

chairman. This will include continuing to serve on the 

partnership committee as well as overseeing the 

management of the firm in close collaboration with 

managing partner Rob Elliott and executive partner 

Ben Bennett. 

WINCKWORTH SHERWOOD 

Law firm Winckworth Sherwood has added to its social 

housing finance team with the appointment of a new 

partner, Ruby Giblin. Ruby joined the firm yesterday 

from Clifford Chance, where she was a senior associate 

in its real estate finance team. She has a strong and 

respected track record of over 25 years in acting for 

lenders and facilitators to social housing providers and 

their related entities. 

CLAYTON, DUBILIER & RICE 

Clayton, Dubilier & Rice has taken on Liam FitzGerald, 

former chief executive officer of UDG Healthcare, as an 

operating adviser to CD&R funds. Liam will work out of 

CD&R’s London office. As CEO of UDG Healthcare from 

2000 until 2016, Liam expanded the business from a 

mainly Irish-based distribution services business into a 

multi-faceted and multi-national healthcare services 

group, operating across 20 countries. During that 

period, the company’s market capitalisation increased 

by more than 500 per cent and earnings grew at a 

compound annual rate of more than 20 per cent. Liam 

is credited with leading and seamlessly integrating 

more than 30 acquisitions into the parent company. 

UDG Healthcare is a FTSE 250-listed company with a 

market capitalisation of €1.7bn (£1.48bn) and 

approximately 8,000 employees. 

WISDOMTREE 

WisdomTree, the exchange-traded fund and exchangetraded 

product sponsor, has appointed Altaf Cassam in 

a newly-created head of compliance role at 

WisdomTree in Europe. Altaf joins WisdomTree from 

Aberdeen Asset Management and brings almost 15 

years’ experience in the financial services industry. 

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

2 % The new 

interest rate 

 

 

 

Find out more at om 

on account balances of £10,000 to £50,000 * 

*Visit www.spreadco.com/2pcinterest for T&Cs. Spread Co Ltd is authorised and regulated by the FCA. 

Register No. 446677. Retail client deposits are held in a segregated account & protected by the FSCS. 

Find out more at spreadco.com 

Leveraged products are high risk, 

losses may exceed deposits

Gold.............................................................1178.50 2.65 

Silver ..............................................................16.52 0.07 

Brent Crude ...................................................55.38 -1.81 

Krugerrand .................................................1183.30 9.90 

Palladium....................................................744.00 14.00 

Platinum .....................................................968.00 16.00 

Tin Cash Official .......................................21200.00 20.00 

Lead Cash Official ......................................2041.00 -15.00 

Zinc Cash Official .......................................2579.50 -29.50 

Copper Cash Official ...................................5611.00 0.00 

Aluminium Cash Official ...........................1700.00 0.00 

Nickel Cash Official ..................................10225.00 0.00 

Aluminium Alloy Cash Official...................1535.00 0.00 

Cocoa Futures ............................................2184.00 23.00 

Coffee 'C' Futures..........................................144.57 1.89 

Feed Wheat Futures ....................................145.50 2.85 

Soybeans Futures Continuation Contract ..996.40 10.40 

AB INBEV........................................................100.05 -0.45 119.60 92.13 

ADIDAS N........................................................144.50 -0.30 160.30 82.09 

AIR LIQUIDE ....................................................104.70 -1.35 106.55 85.96 

AIRBUS GROUP ................................................65.28 0.14 65.39 48.07 

ALLIANZ RG ....................................................160.30 -0.80 162.00 118.35 

ASML HLDG .....................................................106.35 0.95 107.65 70.54 

AXA ..................................................................24.62 -0.39 25.00 16.11 

BANCO SANTANDER ............................................5.12 -0.06 5.19 3.15 

BASF N..............................................................87.66 0.14 88.88 56.01 

BAYER N ..........................................................101.70 -0.70 112.00 83.45 

BBVA..................................................................6.54 -0.03 6.70 4.43 

BMW ................................................................89.83 -0.68 91.76 63.38 

BNP PARIBAS-A- ...............................................61.19 -1.30 63.06 35.27 

CRH PLC .............................................................15.16 -0.23 16.93 12.81 

DAIMLER N........................................................71.98 -0.06 72.64 50.83 

DANONE............................................................61.49 0.43 70.53 57.49 

DEUTSCHE BANK N ............................................18.10 -0.22 21.58 9.90 

DEUTSCHE POST N.............................................31.62 -0.26 31.95 19.55 

DEUTSCHE TELEKOM N ......................................16.39 -0.16 16.64 13.54 

E.ON N ...............................................................6.64 -0.01 8.97 5.99 

ENEL....................................................................4.15 -0.01 4.24 3.33 

ENGIE ...............................................................12.05 -0.11 15.55 11.22 

ENI ....................................................................15.39 -0.33 15.92 10.93 

ESSILOR INTL...................................................105.25 -0.55 124.55 93.41 

FRESENIUS........................................................72.43 -2.45 74.99 52.39 

IBERDROLA ........................................................6.03 0.02 6.32 4.60 

INDITEX ............................................................31.87 0.19 33.47 26.60 

ING GROUP ........................................................13.71 -0.20 14.05 8.30 

INTESA SANPAOLO..............................................2.48 -0.07 3.02 1.52 

KON AHOLD.......................................................19.73 0.11 23.03 17.89 

L'OREAL............................................................171.35 1.10 177.90 142.65 

LVMH ..............................................................180.95 1.70 182.70 130.55 

MUENCH RUECKVERS N ...................................177.40 -0.95 187.35 140.90 

NOKIA ................................................................4.58 0.00 6.99 3.66 

ORANGE ............................................................14.78 -0.01 16.67 12.38 

ROY.PHILIPS .....................................................28.69 0.23 29.45 20.05 

SAFRAN.............................................................67.61 -0.09 69.89 48.87 

SAINT GOBAIN..................................................44.88 0.04 45.05 31.47 

SANOFI..............................................................77.52 0.83 79.07 62.50 

SAP ..................................................................84.34 0.68 83.74 64.62 

SCHNEIDER ELECTRIC .......................................66.44 0.00 66.69 45.32 

SIEMENS N.......................................................116.05 0.10 118.45 79.23 

SOCIETE GENERALE ...........................................46.21 -1.14 49.38 25.00 

TELEFONICA.........................................................9.18 -0.02 9.92 7.15 

TOTAL...............................................................48.09 -0.69 49.50 33.28 

UNIBAIL-RODAMCO.........................................223.95 -1.85 252.95 203.10 

UNILEVER CERT ................................................39.06 0.13 43.11 36.22 

VINCI ...............................................................66.00 0.27 69.80 49.93 

VIVENDI ............................................................18.28 -0.06 20.32 14.87 

VOLKSWAGEN VZ ............................................145.85 6.85 143.10 92.70 

Price Chg High Low 

EU SHARES 

3M ...................................................................177.27 -0.96 182.27 134.64 

ABBVIE .............................................................64.21 0.42 68.12 50.71 

ALPHABET-A....................................................827.18 1.97 839.00 672.66 

ALPHABET-C ..................................................806.65 0.50 816.68 663.06 

ALTRIA GROUP .................................................67.95 -0.28 70.15 56.15 

AMAZON.COM.................................................796.92 0.93 847.21 474.00 

AMERICAN EXPRESS.........................................75.86 0.39 76.55 50.27 

AMGEN ...........................................................158.84 2.06 176.85 133.64 

APPLE..............................................................118.99 1.08 118.69 89.47 

AT&T ................................................................40.80 -0.52 43.89 33.43 

BANK OF AMERICA ...........................................22.55 -0.13 23.39 10.99 

BERKSHIRE HATHAWY-B ................................162.02 -1.39 167.25 123.55 

BOEING CO ......................................................158.32 -0.78 160.07 102.10 

CATERPILLAR....................................................92.37 -0.67 97.40 56.36 

CHEVRON ........................................................115.84 -1.00 119.00 75.33 

CISCO SYSTEMS .................................................30.18 -0.05 31.95 22.46 

CITIGROUP ......................................................60.22 -0.33 61.63 34.52 

COCA-COLA CO ..................................................41.32 -0.42 47.13 39.88 

COMCAST-A ......................................................70.83 0.56 71.32 52.34 

DU PONT NEMOURS&CO ...................................73.72 0.34 75.86 50.71 

EXXON MOBIL...................................................87.04 -1.46 95.55 71.55 

FACEBOOK-A...................................................124.90 1.49 133.50 89.37 

GENERAL ELECTRIC ...........................................31.46 -0.15 33.00 27.10 

GOLDMAN SACHS GROUP...............................242.89 -2.01 246.20 138.20 

HOME DEPOT ...................................................134.31 0.78 139.00 109.62 

IBM..................................................................167.65 -1.88 169.95 116.90 

INTEL ................................................................36.61 0.13 38.36 27.68 

JOHNSON & JOHNSON.....................................116.28 -0.02 126.07 94.28 

JPMORGAN CHASE............................................86.18 0.06 87.76 52.50 

MASTERCARD-A ..............................................107.55 -0.21 108.93 78.52 

MCDONALD'S ..................................................120.43 -0.33 131.96 110.33 

MEDTRONIC ......................................................73.82 0.95 89.27 69.35 

MERCK...............................................................61.10 0.83 65.46 47.97 

MICROSOFT......................................................62.64 -0.20 64.10 48.04 

NIKE -B-...........................................................53.38 -0.53 65.44 49.01 

ORACLE ............................................................39.03 0.58 42.00 33.13 

PEPSICO..........................................................103.46 -1.10 110.94 93.25 

PFIZER..............................................................33.47 -0.01 37.39 28.25 

PHILIP MRRS INT ...............................................91.31 -0.53 104.20 84.46 

PROCTER&GAMBLE ..........................................84.40 -0.63 90.33 74.46 

SCHLUMBERGER...............................................85.77 -0.71 87.00 59.60 

THE KRAFT HEINZ.............................................86.07 -0.24 90.54 68.18 

TRAVLR COMP ..................................................117.32 -0.95 123.09 101.23 

TWITTER............................................................17.50 0.33 25.25 13.73 

UNITEDHEALTH GROUP ...................................161.95 -0.46 164.00 107.51 

UTD TECHNOLOGIES .........................................111.50 -1.05 112.83 83.39 

VERIZON COMM ...............................................52.68 -0.58 56.95 43.79 

VISA-A ..............................................................81.75 -0.46 83.96 66.12 

WAL-MART STORES...........................................68.71 0.45 75.19 60.20 

WALT DISNEY-DISNEY ....................................108.36 -0.62 109.35 86.25 

WELLS FARGO ..................................................54.24 -0.80 58.02 43.55 

COMMODITIES 

CREDIT & RATES 

BoE IR Overnight.........................................0.250 0.00 

BoE IR 7 days..............................................0.250 0.00 

BoE IR 1 month ...........................................0.250 0.00 

BoE IR 3 months.........................................0.250 0.00 

BoE IR 6 months.........................................0.250 0.00 

LIBOR Euro - overnight ...............................-0.411 0.00 

LIBOR Euro - 12 months .............................-0.091 0.00 

LIBOR USD - overnight.................................0.691 0.00 

LIBOR USD - 12 months ................................1.685 0.00 

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

Euro Base Rate ...........................................0.000 0.00 

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

US Fed funds.................................................0.66 0.00 

US long bond yield........................................2.97 -0.03 

Euro Euribor ...............................................-0.379 0.00 

The vix index ................................................11.56 0.24 

The baltic dry index..................................949.00 -14.00 

Markit iBoxx EUR ......................................226.49 0.18 

Markit iBoxx GBP.........................................313.31 0.67 

Markit iTraxx ................................................69.10 0.03 


US SHARES 

€/$ 1.0584 0.0052 

€/£ 0.8695 0.0126 

€/¥ 122.61 0.5460 

/€ 1.1498 0.0166 

/$ 1.2170 0.0112 

/¥ 141.00 2.6990 

BAE Systems . . . . . . . . .597.5 -7.5 612.0 459.7 

Cobham . . . . . . . . . . . . .164.6 -0.4 237.2 127.5 

Meggitt . . . . . . . . . . . . .448.0 -1.4 482.0 346.5 

QinetiQ Group . . . . . . . .265.1 4.1 267.7 212.0 

Rolls-Royce Holdi . . . . .661.0 10.5 831.0 512.5 

Senior . . . . . . . . . . . . . . .197.5 0.3 242.0 171.6 

Ultra Electronics . . . . .1934.0 1.0 2030.0 1595.0 

GKN . . . . . . . . . . . . . . . .330.5 -0.9 336.2 248.6 

Aldermore Group . . . . .232.4 -3.0 239.5 104.8 

Barclays . . . . . . . . . . . . .234.1 -1.2 240.0 127.2 

BGEO Group . . . . . . . .2840.0 -32.0 3379.0 1570.0 

CYBG . . . . . . . . . . . . . . .289.4 1.5 302.2 182.8 

HSBC Holdings . . . . . . .668.9 -0.1 679.6 416.2 

Lloyds Banking Gr . . . . .65.2 -0.7 73.7 47.6 

Metro Bank . . . . . . . . .3085.0 -54.0 3356.0 1623.0 

Royal Bank of Sco . . . . .227.4 -5.0 283.5 148.9 

Shawbrook Group . . . .265.6 -5.4 342.0 132.0 

Standard Chartere . . . . .697.1 1.4 711.9 386.7 

Virgin Money Hold . . . .323.0 -7.5 381.5 205.0 

Barr (A.G.) . . . . . . . . . .505.0 3.0 614.5 455.3 

Britvic . . . . . . . . . . . . . .587.0 -1.0 732.5 523.5 

Coca-Cola HBC AG . . . .1810.0 21.0 1840.0 1265.0 

Diageo . . . . . . . . . . . . .2169.5 26.0 2268.0 1745.0 

Croda Internation . . . .3275.0 27.0 3669.0 2663.7 

Elementis . . . . . . . . . . .269.6 2.6 279.4 180.6 

Johnson Matthey . . . .3188.0 28.0 3540.0 2230.0 

Synthomer . . . . . . . . . .378.7 1.7 388.4 275.1 

Victrex plc . . . . . . . . . .1943.0 2.0 1957.0 1367.0 

AO World . . . . . . . . . . . .181.5 1.5 189.3 120.5 

Auto Trader Group . . . .408.3 -2.3 442.0 313.8 

B&M European Valu . . .305.0 3.2 311.0 232.5 

Brown (N.) Group . . . . .209.5 2.5 362.1 160.4 

Card Factory . . . . . . . . .250.9 3.7 381.0 242.5 

Convatec Group . . . . . .239.3 -3.4 255.5 225.0 

Debenhams . . . . . . . . . .52.7 0.3 81.6 51.4 

Dignity . . . . . . . . . . . . .2511.0 34.0 2871.0 2227.0 

Dixons Carphone . . . . .340.6 2.8 476.5 281.6 

Dunelm Group . . . . . . .802.5 1.5 1018.0 733.0 

Halfords Group . . . . . . .346.7 1.7 449.1 305.6 

Inchcape . . . . . . . . . . . .719.0 4.5 754.0 581.0 

JD Sports Fashion . . . . .328.7 13.2 337.5 202.6 

Just Eat . . . . . . . . . . . . .583.0 -1.0 599.5 329.1 

Kingfisher . . . . . . . . . . .347.4 2.8 386.2 306.7 

Marks & Spencer G . . . .337.7 4.0 446.1 285.2 

Next . . . . . . . . . . . . . . .4037.0 -62.0 7020.0 4014.0 

Pets at Home Grou . . . .238.1 4.3 285.0 211.5 

Saga . . . . . . . . . . . . . . .199.0 1.2 225.9 173.9 

Sports Direct Int . . . . . .282.5 3.0 433.3 252.2 

Ted Baker . . . . . . . . . .2649.0 0.0 3092.0 2124.0 

WH Smith . . . . . . . . . .1596.0 12.0 1878.0 1447.0 

Balfour Beatty . . . . . . .266.7 -2.0 295.1 190.8 

CRH . . . . . . . . . . . . . . .2782.0 15.0 2830.0 1637.0 

Galliford Try . . . . . . . . .1347.0 8.0 1547.0 785.0 

Ibstock . . . . . . . . . . . . . .185.0 -0.2 223.7 114.7 

Keller Group . . . . . . . . .837.5 -15.5 1024.0 644.5 

Kier Group . . . . . . . . . .1393.0 15.0 1422.0 932.0 

Marshalls . . . . . . . . . . .290.0 -2.4 357.3 206.5 

Polypipe Group . . . . . . .334.5 2.5 355.0 221.5 

Drax Group . . . . . . . . . .382.5 -1.1 390.4 207.6 

SSE . . . . . . . . . . . . . . . .1538.0 -2.0 1628.0 1321.0 

Halma . . . . . . . . . . . . . .925.0 15.5 1126.0 773.5 

Morgan Advanced M . .290.4 2.4 305.5 192.3 

Renishaw . . . . . . . . . .2677.0 18.0 2930.0 1600.0 

Spectris . . . . . . . . . . . .2352.0 21.0 2356.0 1442.0 

Aberforth Smaller . . . .1107.0 -3.0 1156.0 849.0 

Alliance Trust . . . . . . . . .657.5 8.5 658.8 450.8 

Bankers Inv Trust . . . . .709.0 4.5 717.0 522.0 

BH Macro Ltd. GBP . . . .2111.0 -1.0 2134.0 1875.0 

British Empire Tr . . . . . .652.0 6.0 653.0 412.0 

Caledonia Investm . . .2641.0 21.0 2672.6 2112.0 

City of London In . . . . . .411.2 1.7 415.0 341.5 

Edinburgh Inv Tru . . . . .721.5 1.5 739.5 620.0 

Electra Private E . . . . .4808.0 0.0 4852.0 3300.0 

Fidelity China Sp . . . . . .178.7 0.7 198.2 110.5 

Fidelity European . . . . .187.7 1.9 188.5 151.2 

Finsbury Growth & . . . .660.0 7.0 676.0 532.5 

Foreign and Colon . . . .553.0 7.0 555.5 391.2 

GCP Infrastructur . . . . . .124.0 0.6 134.8 114.8 

Genesis Emerging . . . .613.5 7.5 644.0 408.5 

Greencoat UK Wind . . . .119.5 0.4 119.9 101.1 

HarbourVest Globa . . .1175.0 0.0 1185.0 853.0 

HICL Infrastructu . . . . . .163.2 -0.1 185.1 150.4 

International Pub . . . . . .153.1 -0.4 162.6 138.4 

John Laing Infras . . . . . .132.4 1.0 140.4 114.2 

JPMorgan American . . .374.2 4.2 376.0 245.9 

JPMorgan Emerging . . .701.0 7.0 765.0 483.0 

JPMorgan Indian I . . . . .610.0 4.5 690.0 434.8 

Mercantile Invest . . . . .1724.0 1.0 1775.0 1375.0 

Monks Inv Trust . . . . . .578.0 4.0 579.9 361.1 

Murray Internatio . . . . .1176.0 6.0 1188.0 742.5 

NB Global Floatin . . . . . .97.5 -0.2 97.6 84.6 

P2P Global Invest . . . . .799.5 1.0 1005.0 730.0 

Perpetual Income . . . . .371.2 0.7 407.0 332.0 

Personal Assets T . . .39360.0 70.040500.034170.0 

Polar Capital Tec . . . . . .867.0 24.0 867.0 503.5 

RIT Capital Partn . . . . .1869.0 8.0 1885.0 1512.0 

Riverstone Energy . . .1340.0 5.0 1347.0 720.0 

Scottish Inv Trus . . . . . .803.0 10.0 809.5 544.5 

Scottish Mortgage . . . .334.5 6.2 341.5 220.6 

Temple Bar Inv Tr . . . .1256.0 11.0 1264.0 940.0 

Templeton Emergin . . . .611.5 6.0 624.5 371.5 

The Renewables In . . . .109.5 0.4 110.2 90.3 

TR Property Inv T . . . . .297.9 0.2 321.0 241.7 

Witan Inv Trust . . . . . . .911.5 10.5 914.2 683.0 

Woodford Patient . . . . .92.3 1.5 100.8 81.0 

Worldwide Healthc . .2235.0 46.0 2254.0 1596.0 

3i Group . . . . . . . . . . . . .725.5 2.0 729.5 389.8 

3i Infrastructure . . . . . .186.5 -0.2 200.0 166.5 

Aberdeen Asset Ma . . .269.0 -1.7 348.6 209.3 

Allied Minds . . . . . . . . .459.9 -2.8 479.4 267.0 

Arrow Global Grou . . . .305.0 1.3 309.8 178.3 

Ashmore Group . . . . . .285.5 -13.8 375.5 196.4 

Brewin Dolphin Ho . . . .308.7 3.1 309.7 210.2 

Charles Taylor . . . . . . . .235.0 -8.3 327.5 221.0 

City of London In . . . . .345.0 -3.8 400.1 285.0 

Close Brothers Gr . . . .1458.0 -5.0 1477.0 989.5 

CMC Markets . . . . . . . . .123.4 2.6 290.8 94.6 

Hargreaves Lansdo . . .1290.0 1.0 1389.0 1056.0 

Henderson Group . . . . .244.6 3.2 286.1 195.0 

IG Group Holdings . . . .530.0 -1.0 959.5 450.7 

Intermediate Capi . . . . .714.5 2.0 726.0 454.2 

International Per . . . . . .164.3 1.4 341.2 158.6 

Investec . . . . . . . . . . . . .542.5 3.0 549.0 402.7 

IP Group . . . . . . . . . . . . .184.1 0.9 200.0 120.4 

John Laing Group . . . . .269.3 -0.1 281.5 200.0 

Jupiter Fund Mana . . . .452.2 6.4 453.9 328.9 

Liontrust Asset M . . . . .380.0 -1.0 402.0 235.0 

LMS Capital . . . . . . . . . . .54.3 -0.1 72.0 53.8 

London Finance & . . . . .42.8 0.0 46.0 34.0 

London Stock Exch . . .2926.0 2.0 2938.0 2123.0 

Man Group . . . . . . . . . . .122.6 -1.6 163.1 107.3 

OneSavings Bank . . . . .335.7 -8.8 358.7 176.2 

Paragon Group Of . . . .403.3 0.4 417.0 227.4 

Provident Financi . . . .2893.0 19.0 3328.0 2164.0 

Rathbone Brothers . . .2011.0 6.0 2359.0 1590.0 

Real Estate Credi . . . . . .163.0 1.1 174.0 143.0 

Record . . . . . . . . . . . . . . .36.9 -0.5 38.2 22.1 

S&U . . . . . . . . . . . . . . .2225.0 -50.0 2610.0 1992.5 

Sanne Group . . . . . . . .609.5 4.0 637.0 320.0 

Schroders . . . . . . . . . .3032.0 13.0 3041.0 2049.0 

SVG Capital . . . . . . . . . .710.0 -0.5 720.0 446.3 

TP ICAP . . . . . . . . . . . . .466.2 -1.2 482.5 275.0 

VPC Specialty Len . . . . . .79.0 0.3 96.1 70.5 

Walker Crips Grou . . . . .40.3 0.0 50.0 39.0 

BT Group . . . . . . . . . . . .386.0 1.4 496.0 346.7 

TalkTalk Telecom . . . . . .172.7 -0.1 272.8 152.5 

Telecom Plus . . . . . . . .1206.0 -8.0 1251.0 815.5 

Booker Group . . . . . . . .180.0 2.2 186.4 149.4 

Greggs . . . . . . . . . . . . .985.0 5.0 1246.0 884.0 

Morrison (Wm) Sup . . .237.4 1.1 238.3 151.2 

Ocado Group . . . . . . . . .261.5 3.0 349.0 208.1 

Sainsbury (J) . . . . . . . .254.8 2.8 292.5 214.6 

SSP Group . . . . . . . . . . .385.0 0.6 392.8 264.0 

Tesco . . . . . . . . . . . . . . .201.0 1.5 218.7 145.5 

UDG Healthcare Pu . . . .659.0 -7.5 689.5 500.5 

Associated Britis . . . .2668.0 13.0 3458.0 2350.0 

Cranswick . . . . . . . . . .2355.0 -13.0 2538.0 1890.0 

Dairy Crest Group . . . . .625.5 2.5 690.0 504.5 

Greencore Group . . . . .240.3 -3.0 322.7 218.9 

Tate & Lyle . . . . . . . . . .700.5 2.5 807.0 535.5 

Unilever . . . . . . . . . . . .3344.5 50.5 3763.5 2763.0 

Mondi . . . . . . . . . . . . .1648.0 1.0 1692.0 1124.0 

Centrica . . . . . . . . . . . . .230.4 -3.1 242.0 183.6 

National Grid . . . . . . . .950.7 6.3 1130.5 891.5 

Pennon Group . . . . . . . .821.0 -1.5 945.5 768.0 

Severn Trent . . . . . . . .2214.0 -1.0 2509.0 2024.0 

United Utilities . . . . . .898.0 1.0 1039.0 854.5 

RPC Group . . . . . . . . . .1071.0 7.0 1079.0 653.0 

Smith (DS) . . . . . . . . . . .417.6 0.6 427.7 331.2 

Smiths Group . . . . . . .1450.0 6.0 1528.0 863.5 

Smurfit Kappa Gro . . .2025.0 35.0 2379.0 1584.0 

Vesuvius . . . . . . . . . . . .400.0 -1.8 404.7 270.6 


Assura . . . . . . . . . . . . . . .56.7 -0.3 60.3 49.4 

Mediclinic Intern . . . . . .781.5 -5.0 1168.0 685.0 

NMC Health . . . . . . . . .1648.0 -7.0 1689.6 750.0 

Smith & Nephew . . . .1220.0 8.0 1310.0 1051.0 

Spire Healthcare . . . . .345.0 -3.8 400.0 300.1 

Barratt Developme . . .495.5 1.6 613.0 332.6 

Bellway . . . . . . . . . . . .2559.0 -10.0 2810.0 1689.0 

Berkeley Group Ho . . .2870.0 -21.0 3700.0 2270.0 

Bovis Homes Group . . .818.0 7.0 1024.0 627.0 

Countryside Prope . . . .240.0 -3.7 278.5 173.2 

Crest Nicholson H . . . . .503.5 4.5 604.0 335.0 

McCarthy & Stone . . . . .168.0 -3.7 287.0 140.3 

Persimmon . . . . . . . . .1939.0 5.0 2219.0 1289.0 

Reckitt Benckiser . . . .6803.0 116.0 7692.0 5847.0 

Redrow . . . . . . . . . . . . .447.8 6.6 462.0 275.6 

Taylor Wimpey . . . . . . .169.5 1.0 210.3 115.8 

Bodycote . . . . . . . . . . .645.0 1.0 653.5 499.0 

Hill & Smith Hold . . . . .1181.0 2.0 1253.0 734.0 

IMI . . . . . . . . . . . . . . . .1065.0 -5.0 1129.0 742.0 

Rotork . . . . . . . . . . . . . .261.3 1.5 264.6 152.7 

Old Mutual . . . . . . . . . .208.2 0.1 225.5 149.4 

Phoenix Group Hol . . . .753.0 4.5 802.4 611.5 

Prudential . . . . . . . . . .1600.0 -12.5 1649.0 1087.0 

St James's Place . . . . .1057.0 -3.0 1068.0 716.0 

Standard Life . . . . . . . .360.5 -3.5 378.8 262.1 

4Imprint Group . . . . . .1848.0 23.0 1860.0 1140.0 

Ascential . . . . . . . . . . . .283.0 4.1 297.9 200.0 

Bloomsbury Publis . . . .170.5 -1.0 178.5 144.3 

Centaur Media . . . . . . . .44.5 0.0 67.8 33.8 

Entertainment One . . .239.2 1.0 255.0 130.0 

Euromoney Institu . . .1108.0 -19.0 1207.0 852.5 

Future . . . . . . . . . . . . . . .13.5 -0.3 14.4 7.9 

Haynes Publishing . . . . .121.5 0.0 128.5 99.0 

Informa . . . . . . . . . . . . .696.5 10.5 699.5 538.6 

ITE Group . . . . . . . . . . . .157.8 0.3 176.0 128.8 

ITV . . . . . . . . . . . . . . . . .207.5 2.0 270.5 154.0 

Johnston Press . . . . . . . .13.8 -0.4 47.0 8.0 

Moneysupermarket. . .298.4 0.8 377.1 233.5 

Pearson . . . . . . . . . . . . .818.5 5.0 975.0 657.5 

Relx plc . . . . . . . . . . . .1455.0 16.0 1502.0 1126.0 

Rightmove . . . . . . . . .4077.0 37.0 4302.0 3173.0 

Sky . . . . . . . . . . . . . . . .988.0 -3.0 1103.0 750.5 

STV Group . . . . . . . . . . .355.0 -7.0 505.0 304.0 

Tarsus Group . . . . . . . . .288.3 0.0 288.8 217.3 

Spirax-Sarco Engi . . . .4247.0 3.0 4669.0 2725.0 

Weir Group . . . . . . . . .1969.0 3.0 1980.0 787.5 

Evraz . . . . . . . . . . . . . . .206.8 -7.9 273.0 56.2 

Ferrexpo . . . . . . . . . . . .132.0 2.5 151.0 15.8 

BBA Aviation . . . . . . . . .285.8 -0.2 287.0 150.2 

Clarkson . . . . . . . . . . . .2178.0 32.0 2499.0 1691.0 

Fisher (James) & . . . . .1611.0 21.0 1679.0 942.0 

Royal Mail . . . . . . . . . . .454.3 -4.5 541.0 413.3 

Admiral Group . . . . . .1828.0 -2.0 2260.0 1611.0 

Beazley . . . . . . . . . . . . .391.5 4.3 405.1 320.0 

Direct Line Insur . . . . . .368.0 3.3 409.6 333.3 

esure Group . . . . . . . . . .197.0 -0.4 304.6 188.9 

Hastings Group Ho . . . .233.9 -6.1 247.4 149.8 

Hiscox Limited (D . . . .1028.0 0.0 1097.0 900.5 

Jardine Lloyd Tho . . . .1010.0 -2.0 1048.0 778.0 

Lancashire Holdin . . . .695.0 -5.0 758.0 518.5 

RSA Insurance Gro . . . .574.5 -2.0 586.0 373.2 

Aviva . . . . . . . . . . . . . . .486.5 -2.9 495.4 346.2 

JRP Group . . . . . . . . . . .146.5 0.6 160.5 86.0 

Legal & General G . . . . .248.8 -0.8 252.2 165.0 

Trinity Mirror . . . . . . . . . .97.5 -1.3 170.0 73.5 

UBM . . . . . . . . . . . . . . . .746.0 2.0 750.3 491.0 

WPP . . . . . . . . . . . . . . .1865.0 25.0 1872.0 1338.0 

Zoopla Property G . . . .333.0 6.2 338.9 199.3 

Acacia Mining . . . . . . . .401.7 0.6 599.0 161.2 

Anglo American . . . . . .1154.5 19.5 1254.0 221.1 

Antofagasta . . . . . . . . .704.0 10.0 774.5 346.1 

BHP Billiton . . . . . . . . .1340.5 23.5 1400.5 580.9 

Centamin (DI) . . . . . . . .140.7 2.5 180.0 61.8 

Fresnillo . . . . . . . . . . . .1370.0 21.0 2008.0 640.5 

Glencore . . . . . . . . . . . .298.7 10.3 302.7 71.2 

Hochschild Mining . . . .235.0 1.6 313.7 39.5 

Kaz Minerals . . . . . . . . .386.6 11.9 420.0 87.8 

Petra Diamonds Lt . . . .159.5 -0.6 171.6 69.0 

Polymetal Interna . . . . .917.5 29.5 1190.0 523.5 

Randgold Resource . .6660.0 145.0 9715.0 4188.0 

Rio Tinto . . . . . . . . . . . .3133.0 38.0 3294.0 1577.5 

Vedanta Resources . . . .931.0 12.5 963.0 205.8 

Inmarsat . . . . . . . . . . . .792.5 17.5 1116.0 680.0 

Vodafone Group . . . . . .208.0 -3.4 239.7 190.5 

BP . . . . . . . . . . . . . . . . . .513.5 -1.0 519.3 310.3 

Cairn Energy . . . . . . . . .241.0 3.0 250.6 127.2 

Nostrum Oil & Gas . . . . .441.5 -1.0 467.0 203.0 

Royal Dutch Shell . . . .2255.0 -12.5 2280.0 1266.0 

Royal Dutch Shell . . . .2344.0 -15.5 2375.0 1277.5 

Tullow Oil . . . . . . . . . . .333.6 8.9 352.1 118.2 

Amec Foster Wheel . . .487.5 -3.0 619.5 327.6 

Hunting . . . . . . . . . . . .640.0 1.5 644.5 239.8 

Petrofac Ltd. . . . . . . . . .927.5 28.5 982.0 663.0 

Wood Group (John) . . .894.5 5.0 909.0 541.5 

Burberry Group . . . . . .1501.0 28.0 1530.0 1041.0 

PZ Cussons . . . . . . . . . .343.0 6.0 372.6 249.3 

Supergroup . . . . . . . . .1700.0 -6.0 1742.6 1184.0 

AstraZeneca . . . . . . . .4607.5 57.0 5220.0 3774.0 

BTG . . . . . . . . . . . . . . . . .614.5 11.5 728.0 557.0 

Dechra Pharmaceut . .1370.0 14.0 1418.0 975.0 

Genus . . . . . . . . . . . . . .1813.0 28.0 2042.0 1282.0 

GlaxoSmithKline . . . . .1596.0 12.5 1722.5 1345.5 

Hikma Pharmaceuti . .1924.0 8.0 2676.0 1624.0 

Indivior . . . . . . . . . . . . .304.6 6.8 369.0 130.8 

Shire Plc . . . . . . . . . . . .4887.5 31.0 5323.0 3480.0 

Vectura Group . . . . . . . .141.0 1.7 188.5 126.8 

Capital & Countie . . . . .287.7 -8.7 400.7 263.1 

CLS Holdings . . . . . . . .1533.0 -31.0 1786.0 1163.0 

Daejan Holdings . . . . .6235.0-100.0 6420.0 4411.0 

F&C Commercial Pr . . . .136.3 -0.1 138.4 102.1 

Grainger . . . . . . . . . . . .240.3 -2.0 248.5 193.1 

Kennedy Wilson Eu . . .958.5 -5.5 1202.0 888.5 

NewRiver REIT . . . . . . .344.9 2.9 346.3 269.0 

Safestore Holding . . . . .348.1 -14.9 400.5 311.9 

Savills . . . . . . . . . . . . . .690.5 3.5 873.0 548.5 

St. Modwen Proper . . . . .311.1 -3.3 402.8 222.2 

UK Commercial Pro . . . .84.9 -0.2 87.2 65.0 

Unite Group . . . . . . . . .604.0 -6.0 663.5 543.5 

Big Yellow Group . . . . .709.0 -5.0 886.5 635.0 

British Land Comp . . . .626.0 -10.5 762.5 544.5 

Derwent London . . . .2690.0 -70.0 3486.0 2257.0 

Great Portland Es . . . . .657.0 -13.0 802.0 536.0 

Hammerson . . . . . . . . .566.5 -4.5 602.5 468.6 

Hansteen Holdings . . . .112.2 -0.3 119.8 95.4 

Intu Properties . . . . . . .277.2 -4.4 319.4 255.7 

Land Securities G . . . .1034.0 -23.0 1202.0 910.0 

LondonMetric Prop . . . .154.7 -1.6 166.8 134.9 

Redefine Internat . . . . . .39.8 0.1 48.3 36.3 

SEGRO . . . . . . . . . . . . . .469.6 -3.6 476.3 370.5 

Shaftesbury . . . . . . . . .915.0 -7.0 994.5 813.0 

Tritax Big Box Re . . . . . .140.1 -0.3 147.1 113.9 

Workspace Group . . . . .776.0 -22.0 913.5 577.0 

Aveva Group . . . . . . . .1929.0 5.0 2051.0 1237.0 

Computacenter . . . . . .802.5 2.5 879.0 678.0 

Fidessa Group . . . . . . .2252.0 51.0 2596.0 1771.0 

Micro Focus Inter . . . . .2134.0 21.0 2267.0 1308.0 

Playtech . . . . . . . . . . . .828.5 4.5 946.5 710.5 

Sage Group . . . . . . . . . .671.0 13.5 756.0 544.5 

Softcat . . . . . . . . . . . . .294.0 -0.7 383.0 280.0 

Sophos Group . . . . . . . .269.1 5.0 278.3 175.0 

AA . . . . . . . . . . . . . . . . .277.5 -0.9 307.3 209.9 

Aggreko . . . . . . . . . . . .976.5 0.5 1286.0 765.0 

Ashtead Group . . . . . .1583.0 -9.0 1644.0 769.0 

Atkins (WS) . . . . . . . . .1450.0 -23.0 1713.0 1158.0 

Babcock Internati . . . . .926.5 -13.0 1105.0 854.0 

Berendsen . . . . . . . . . .875.0 -8.0 1355.0 774.5 

Bunzl . . . . . . . . . . . . . . .2111.0 30.0 2436.0 1735.0 

Capita . . . . . . . . . . . . . .500.5 -15.0 1191.0 452.4 

Carillion . . . . . . . . . . . . .237.2 0.2 305.4 221.4 

DCC . . . . . . . . . . . . . . .6205.0 -5.0 7220.0 4779.0 

Diploma . . . . . . . . . . .1026.0 -6.0 1054.0 630.0 

Electrocomponents . . .485.7 10.6 490.7 204.0 

Essentra . . . . . . . . . . . .456.4 -2.5 891.0 382.9 

Experian . . . . . . . . . . .1579.0 10.0 1594.0 1073.0 

G4S . . . . . . . . . . . . . . . .240.7 -0.2 251.0 164.0 

Grafton Group Uni . . . .544.0 -17.0 752.0 440.0 

Hays . . . . . . . . . . . . . . . .153.1 -1.7 154.8 94.0 

Homeserve . . . . . . . . . .615.0 0.0 629.5 363.2 

Howden Joinery Gr . . . .393.4 1.4 510.5 341.1 

Intertek Group . . . . . .3479.0 -1.0 3727.0 2628.0 

Mitie Group . . . . . . . . . .214.5 -4.0 301.0 180.4 

Pagegroup . . . . . . . . . . .393.1 -4.8 452.4 264.9 

PayPoint . . . . . . . . . . . .964.0 -5.0 1168.0 720.0 

Paysafe Group . . . . . . . .381.6 2.7 469.2 305.7 

Rentokil Initial . . . . . . .223.5 1.4 235.5 150.0 

Serco Group . . . . . . . . . .147.4 -0.6 149.9 76.8 

SIG . . . . . . . . . . . . . . . . .100.5 -0.2 149.0 87.2 

Travis Perkins . . . . . . .1474.0 -21.0 1964.0 1313.0 

Wolseley . . . . . . . . . .4996.0 11.0 5005.0 3230.0 

Worldpay Group . . . . . .285.9 4.8 316.8 255.9 

British American . . . .4675.0 101.0 5042.0 3565.0 

Imperial Brands . . . . .3616.5 78.0 4139.0 3345.0 

Carnival . . . . . . . . . . . .4243.0 54.0 4275.0 2957.0 

Cineworld Group . . . . .594.5 8.0 602.0 457.0 

Compass Group . . . . .1456.0 -2.0 1548.0 1088.0 

Domino's Pizza Gr . . . . .378.9 6.5 396.9 285.3 

easyJet . . . . . . . . . . . .1052.0 -7.0 1720.0 873.5 

FirstGroup . . . . . . . . . . .104.5 -0.4 114.5 80.8 

Go-Ahead Group . . . .2238.0 2.0 2673.0 1790.0 

Greene King . . . . . . . . .719.0 -0.5 913.0 663.5 

GVC Holdings . . . . . . . .636.0 -10.5 769.0 421.5 

InterContinental . . . . .3701.0 35.0 3716.0 2192.8 

International Con . . . . .467.2 0.6 598.5 343.9 

Ladbrokes Coral G . . . . .120.5 -1.6 162.0 106.1 

Marston's . . . . . . . . . . . .135.9 1.1 164.5 129.7 

Merlin Entertainm . . . .459.0 4.2 490.2 379.8 

Millennium & Copt . . . .462.5 4.5 483.1 366.4 

Mitchells & Butle . . . . . .258.2 0.3 312.5 217.5 

National Express . . . . .344.0 -5.5 376.5 275.6 

Paddy Power Betfa . .8865.0 50.0 14275.0 7895.0 

Rank Group . . . . . . . . . .195.0 0.2 295.5 186.8 

Restaurant Group . . . . .336.7 -3.8 655.0 256.9 

Stagecoach Group . . . .220.7 1.2 284.0 196.0 

Thomas Cook Group . . . .88.9 0.5 121.7 54.7 

TUI AG Reg Shs (D . . . .1177.0 12.0 1269.0 844.5 

Wetherspoon (J.D. . . . .891.0 0.5 952.0 609.0 

Whitbread . . . . . . . . .3865.0 -76.0 4356.0 3391.0 

William Hill . . . . . . . . . .291.6 -6.1 410.4 246.9 

Wizz Air Holdings . . . .1843.0 -11.0 1995.0 1415.0 

4D Pharma . . . . . . . . . .722.5 20.3 1012.5 635.0 

Abcam . . . . . . . . . . . . . .772.5 6.0 901.0 580.0 

Advanced Medical . . . .215.0 -0.5 235.0 154.3 

Amerisur Resource . . . . .28.5 -0.5 33.0 17.3 

Arbuthnot Banking . .1445.0 -5.0 1717.0 1265.0 

ASOS . . . . . . . . . . . . . .5315.0 59.0 5397.0 2595.0 

BNN Technology . . . . . .126.3 -5.8 168.0 35.5 

Brooks Macdonald . . .2021.0 21.5 2030.0 1400.0 

Camellia . . . . . . . . . .10300.0-125.0 10800.5 7510.0 

Clinigen Group . . . . . . .793.5 3.5 804.5 492.8 

Conviviality . . . . . . . . . .222.3 -0.3 238.0 168.0 

CVS Group . . . . . . . . . .1072.0 -8.0 1103.0 646.0 

Dart Group . . . . . . . . . . .491.5 -11.0 676.5 358.5 

EMIS Group . . . . . . . . . .956.5 -3.0 1155.0 807.0 

Faroe Petroleum . . . . . .103.5 1.0 105.0 43.5 

Fevertree Drinks . . . . . .1110.0 7.0 1139.0 527.0 

First Derivatives . . . . .2175.0 17.0 2200.0 1462.0 

Gamma Communicati .466.8 -2.3 528.0 365.3 

GB Group . . . . . . . . . . .294.0 4.0 349.0 215.0 

Gemfields . . . . . . . . . . . .49.5 -0.5 56.0 31.5 

Gooch & Housego . . . .1104.0 -11.0 1130.0 834.0 

Hotel Chocolat Gr . . . . .296.3 -3.8 305.0 169.5 

Hurricane Energy . . . . . .52.5 -0.3 53.8 9.4 

Iomart Group . . . . . . . .308.8 1.8 313.5 214.0 

James Halstead . . . . . .494.8 4.3 505.0 379.0 

Johnson Service G . . . . .107.0 -2.0 114.8 85.0 

Keywords Studios . . . . .516.5 4.5 532.5 197.0 

M&C Saatchi . . . . . . . . .370.3 -8.8 380.0 282.8 

M. P. Evans Group . . . . .635.0 -4.5 700.0 371.8 

Mulberry Group . . . . .1095.0 0.0 1150.0 948.0 

Nichols . . . . . . . . . . . . .1592.0 -38.0 1665.0 1119.0 

Numis Corporation . . . .245.5 6.3 248.0 180.5 

Pan African Resou . . . . . .15.5 0.3 24.3 8.3 

Patisserie Holdin . . . . . .319.3 2.8 419.3 257.3 

Polar Capital Hol . . . . . .317.0 6.5 430.4 270.0 

Purplebricks Grou . . . . .152.0 -0.8 175.0 73.0 

Redde . . . . . . . . . . . . . .159.8 -2.0 206.5 138.5 

Renew Holdings . . . . .440.0 -2.0 457.3 295.3 

RWS Holdings . . . . . . . .348.5 -9.3 357.8 188.0 

Scapa Group . . . . . . . . .329.5 -0.5 338.5 179.3 

Sirius Minerals . . . . . . . . .18.8 0.0 45.5 10.8 

Smart Metering Sy . . . .579.5 23.5 609.0 317.5 

Solgold . . . . . . . . . . . . . .26.0 0.5 29.4 1.6 

Sound Energy . . . . . . . . .75.8 -3.0 97.0 15.4 

Staffline Group . . . . . .860.0 -3.5 1398.0 748.5 

Telford Homes . . . . . . .329.3 0.5 391.5 262.0 

Telit Communicati . . . .275.0 -1.3 281.3 178.3 

Thorpe (F.W.) . . . . . . . .305.0 18.0 325.0 200.0 

Watkin Jones . . . . . . . . .116.5 -0.5 124.0 100.3 

Young & Co's Brew . . .1339.5 14.5 1350.5 1075.0 

Young & Co's Brew . . . .987.5 -2.5 1065.0 792.5 

JD Sports Fashion . . . . . . . . . . . .328.7 4.2 

Glencore . . . . . . . . . . . . . . . . . . .298.7 3.6 

Polymetal Internat . . . . . . . . . . .917.5 3.3 

Kaz Minerals . . . . . . . . . . . . . . . .386.6 3.2 

Petrofac Ltd. . . . . . . . . . . . . . . . .927.5 3.2 

Polar Capital Tech . . . . . . . . . . . .867.0 2.9 

Tullow Oil . . . . . . . . . . . . . . . . . .333.6 2.7 

Fidessa Group . . . . . . . . . . . . .2252.0 2.3 

Indivior . . . . . . . . . . . . . . . . . . . .304.6 2.3 

Inmarsat . . . . . . . . . . . . . . . . . . .792.5 2.3 

Ashmore Group . . . . . . . . . . . . .285.5 -4.6 

Safestore Holdings . . . . . . . . . . .348.1 -4.1 

Evraz . . . . . . . . . . . . . . . . . . . . . .206.8 -3.7 

Grafton Group Unit . . . . . . . . . .544.0 -3.0 

Capital & Counties . . . . . . . . . . .287.7 -2.9 

Capita . . . . . . . . . . . . . . . . . . . . .500.5 -2.9 

Workspace Group . . . . . . . . . . .776.0 -2.8 

OneSavings Bank . . . . . . . . . . . .335.7 -2.6 

Derwent London . . . . . . . . . . .2690.0 -2.5 

Hastings Group Hol . . . . . . . . . .233.9 -2.5 

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 

TOBACCO 

TRAVEL & LEISURE 

AIM 50 

Tsy 1.250 17 . . . . . . .103.87 0.01 105.4 103.2 

Tsy 8.750 17 . . . . . . .105.46 -0.02 113.7 105.3 

Tsy 5.000 18 . . . . . . .105.57 0.01 110.0 105.4 

Tsy 4.500 19 . . . . . .109.40 0.03 112.7 109.3 

Tsy 3.750 19 . . . . . .109.40 0.06 111.7 109.3 

Tsy 4.750 20 . . . . . . .113.96 0.06 117.1 113.9 

Tsy 2.500 20 . . . . . .371.70 0.06 374.3 357.5 

Tsy 8.000 21 . . . . . . .132.73 0.11 138.2 132.5 

Tsy 4.000 22 . . . . . .116.97 0.13 121.3 116.0 

Tsy 1.875 22 . . . . . . . .127.71 0.18 129.8 119.8 

Tsy 2.250 23 . . . . . .108.68 0.20 113.6 104.9 

Tsy 0.125 24 . . . . . . . .117.81 0.24 120.3 107.7 

Tsy 2.500 24 . . . . . .367.77 0.20 374.5 337.4 

Tsy 5.000 25 . . . . . .130.24 0.27 138.1 128.4 

Tsy 4.250 27 . . . . . .128.40 0.29 138.3 124.8 

Tsy 1.250 27 . . . . . . .137.41 0.17 142.5 124.6 

Tsy 6.000 28 . . . . . .149.55 0.29 161.8 146.5 

Tsy 4.125 30 . . . . . . .368.37 0.16 382.1 328.9 

Tsy 4.750 30 . . . . . .138.75 0.34 153.0 133.3 

Tsy 4.250 32 . . . . . .134.06 0.40 148.9 127.5 

Tsy 1.250 32 . . . . . . .154.20 0.19 162.2 135.8 

Tsy 0.125 36 . . . . . . .141.24 0.15 150.0 119.5 

Tsy 4.250 36 . . . . . .138.09 0.45 155.7 129.0 

Tsy 4.750 38 . . . . . .150.53 0.47 170.9 139.5 

Tsy 0.625 40 . . . . . . .163.15 0.15 175.2 135.8 

Tsy 4.500 42 . . . . . . .151.73 0.55 174.5 138.5 

Tsy 3.500 45 . . . . . .132.43 0.62 154.6 119.3 

Tsy 4.250 46 . . . . . . .151.44 0.56 177.1 137.3 

Tsy 4.025 49 . . . . . .156.93 0.53 185.4 140.8 

Tsy 0.500 50 . . . . . .189.21 0.15 208.3 149.4 

Tsy 0.250 52 . . . . . .184.49 0.01 205.0 142.9 

WORLD INDICES 

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7237.77 27.72 0.38 

FTSE 250 . . . . . . . . . . . . . . . . . . . . 18379.63 38.44 0.21 

FTSE All-Share . . . . . . . . . . . . . . . . 3927.78 14.23 0.36 

FTSE AIM All-Share . . . . . . . . . . . . . . 867.18 4.12 0.48 

S&P 500. . . . . . . . . . . . . . . . . . . . . 2268.90 -8.08 -0.35 

Dow Jones I.A. . . . . . . . . . . . . . . . 19887.38 -76.42 -0.38 

Nasdaq Composite. . . . . . . . . . . . . 5531.82 10.76 0.19 

Xetra DAX . . . . . . . . . . . . . . . . . . . 11563.99 -35.02 -0.30 

CAC 40. . . . . . . . . . . . . . . . . . . . . . . 4887.57 -22.27 -0.45 

Swiss Market Index . . . . . . . . . . . . 8424.86 7.40 0.09 

ISEQ Overall Index . . . . . . . . . . . . . 6574.49 -19.83 -0.30 

FTSEurofirst 300 . . . . . . . . . . . . . . . 1437.72 -6.38 -0.44 

Hang Seng. . . . . . . . . . . . . . . . . . 22558.69 55.68 0.25 

Shanghai Composite . . . . . . . . . . . 3171.24 16.92 0.54 

Straits Times . . . . . . . . . . . . . . . . . 2981.54 18.91 0.64 

ASX All Ordinaries . . . . . . . . . . . . . 5857.70 48.70 0.84 

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 

7237.77 

27.72 

FTSE 250 

18379.63 

38.44 

FTSE ALL SHARE 

3927.78 

14.23 

DOW JONES 

19887.38 

76.42 

NASDAQ 

5531.82 

10.76 

S&P 500 

2268.90 

8.08 

BATS UK 100 

12234.15 

67.37 

BATS UK 250 

16722.47 

42.44 

CONSTRUCTION & MATERIALS 

GENERAL RETAILERS 

INDUSTRIAL METALS & MINING 

Rise | Shine 

CITY A.M. MORNING UPDATE 

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15 


NEWS 

CITYAM.COM

16 OPINION TUESDAY 10 JANUARY 2017 

CITYAM.COM 

FORUM 

EDITED BY HARRIET GREEN 

Trump’s America First policy won’t 

threaten the Special Relationship 

DONALD Trump’s bellicose 

stance on trade during his 

presidential campaign 

focused on putting 

America first at all costs. 

He hinted at the unilateral 

imposition of tariffs on goods, 

imposing a border tax on imports 

and even leaving the World Trade 

Organisation (WTO). 

Whether he will actually do any of 

these things following his inauguration 

later this month is uncertain – 

there is a long tradition of US 

Presidents-elect making ominous 

statements before taking office only 

to relent later. Still, the appointment 

of the protectionist-leaning 

Robert Lighthizer as his chief trade 

negotiator along with Peter 

Navarro, an outspoken critic of 

China, to lead the new National 

Trade Council, suggests that Trump 

intends to take his “America First” 

trade policy seriously. This is not 

necessarily a bad thing, nor are 

these policies which should worry 

the UK. 

It must be remembered that the 

focus of much of Trump’s invective 

has been on China. In many respects 

fighting back against China, the 

country with which the US has its 

largest trade deficit (almost $400bn 

in 2016) more so even than the misdeeds 

of Hillary Clinton, was the 

centrepiece of his election platform. 

According to Trump (and many 

would agree), China is a currency 

manipulator, illegally subsidises its 

exports and harms the US economy 

through dumped goods. 

IREAD Theresa May’s article about 

the “shared society” – assuming it 

was she who wrote it, and not her 

shadowy acolytes – with interest. 

It is always good to know what 

underlies our politicians’ thinking. 

But it is a disappointing read, a 

virtue-signalling undergraduate 

essay. It begins with the assertion, 

shared with most commentators, 

that the Brexit vote was about something 

deeper than the simple question 

asked about leaving the 

European Union. Possibly – but it’s 

debatable, when you look at who 

voted, and where they voted, that this 

was a revolt by “those who feel the 

system has been stacked against 

them for too long”. Still less that it 

was a protest against “burning injustices” 

such as the treatment of black 

people in the criminal justice system, 

about poor people dying younger 

than they should, and bad schools. 

Yet at the same time it’s apparently 

about people who don’t necessarily 

suffer from these things, but are “just 

getting by”. 

Our society, like every society that 

has ever been or ever will be, is imper- 

But there is every indication that 

the US is going to use the WTO’s dispute 

settlement system aggressively 

to address these issues rather than 

doing so unilaterally, notwithstanding 

Lighthizer’s well-documented 

criticism of the WTO courts. 

If Trump is right about China’s 

illegal trade practices, then Chinese 

goods deserve higher tariffs. If he is 

wrong, then we must hope that the 

US will adhere to WTO rules and let 

the chips fall where they may. 

Economists tell us that breaking 

WTO rules is self-defeating and 

Trump’s team will learn this quickly 

if they put up trade barriers which 

are undeserved. China is well 

equipped to retaliate if the US takes 

action against it illegally. While an 

era of US led trade wars seems 

imminent, we should have faith 

that, under the WTO system, unfair 

trade will be punished and the good 

guys will win. 

A US departure from the WTO is 

much less likely. Pulling out of the 

Trans Pacific Partnership is feasible 

because the agreement has not 

been ratified, but the US has been 

one of the WTO’s main supporters 

since the 1940s. WTO rules are 

enacted into US domestic laws and 

this cannot be unravelled overnight. 

It would be years before the US 

could effectively disentangle itself 

from its WTO obligations. 

With China (and to a lesser extent 

Mexico) as the main targets of the 

new US administration’s trade policy, 

the UK has little to fear and every 

reason to be cautiously optimistic. 

fect. There are remediable wrongs, 

but some things that will always present 

problems. David Cameron also 

wanted to row back from Margaret 

Thatcher’s quoted-out-of-context 

remark that there is no such thing as 

society. In the event, he did little 

about it, but at least his “Big Society” 

vision invoked Burkean ideas of the 

“little platoons” of civil society. He 

accepted that the state shouldn’t, and 

couldn’t, do everything. May, though, 

says it is the job of government “to 

correct the injustice and unfairness 

that divides us wherever it is found”. 

Fine words. But there is no understanding 

in May’s piece that injustice 

and unfairness are inevitably contested 

notions: “the privileged few” are 

easy to denounce, more difficult to 

define. Government assistance to one 

group is often at the expense of 

another. Interventions to “cure” one 

set of problems produce unintended 

consequences, and fresh problems 

elsewhere. Government spending on 

fine abstractions, such as foreign aid, 

end up as money in dictators’ Swiss 

bank accounts or financing 

Ethiopian girl bands. 

David 

Collins 

We should have faith 

that, under the WTO 

system, unfair trade 

will be punished 

The UK is not a currency manipulator, 

nor have there been any allegations 

that it engages in unfair trade 

practices like dumping or subsidisation. 

As a WTO member in its own 

right (once free from the EU), the UK 

will have access to the concessions 

the US has made to the rest of the 

world, as well as the protection of 

the WTO’s dispute settlement system 

in the event that Trump’s trade 

team gets trigger happy. 

Encouragingly, Trump has indicated 

that the UK will be among his top 

priorities when signing new trade 

agreements and we know that 

Prime Minister Theresa May has 

been invited to meet with him in 

Washington “very soon”. 

As its seventh largest trading partner, 

the US exports more than 

$50bn worth of goods to the UK per 

year and Trump is not likely to jeopardise 

this relationship any time 

soon, particularly now that the 

need for anti-globalisation 

posturing has abated following his 

election victory. 

It is not 2016 anymore. While 

Trump has shown himself to be a 

master of anti-trade rhetoric on the 

campaign trail, at heart he is a pragmatic 

deal-maker. We can expect 

that he will pursue trade negotiations 

which are of mutual benefit to 

the US and the UK when it departs 

from the EU in the second half of 

his first term. 

£ David Collins is professor of 

International Economic Law in the City 

Law School. @davidcollinslaw 

Theresa May’s “shared society” slogan: 

Another excuse for more state, less Brexit 

Len 

Shackleton 

The first fruit of May’s new 

approach – her call for a “revolution 

in child mental health care” – is yet 

another top-down initiative, with 

extra spending on “crisis cafes”, “digital 

therapy” and other expensive geegaws 

plus yet tighter 

anti-discrimination laws and that allpurpose 

fall-back, more “training” for 

anyone who goes near children. Is 

there any evidence that this stuff will 

have any real impact on what is in 

any case a very ill-defined issue? 

I have no idea of the real scale or 

nature of the problem of child mental 

health, and I’m fairly sure I’m not 

alone in this. Did people who voted 

for Brexit have this concern in mind? 

I do know that there are worthy mental 

health charities with a singleminded, 

spend-more agenda, and 

clever civil servants and paid wonks 

who can rustle up an action plan at a 

few weeks’ notice. May has willed it, 

and it must happen. In what sense, 

though, is this really “the right 

response to those who voted for 

change back in June”? 

It looks more like displacement 

activity, however worthy the cause. 

Like the renewed emphasis on industrial 

strategy, the shared society idea 

may help brand the May prime ministership. 

It might make sense in the 

run-up to a general election. 

But for now, our accidental Prime 

Minister has a more important task, 

which is to devote her energies to 

organising a rapid and sensible exit 

from the European Union. Brexit 

means Brexit, not a demand to 

expand yet further the role of the 

state. 

£ Len Shackleton is professor of 

economics at the University of 

Buckingham and editorial and research 

fellow at the Institute of Economic 

Affairs. 

DEBATE 

Q: With China 

warning Donald 

Trump of 

revenge over 

Taiwan, should 

we rule out a US- 

China trade war? 

Andy 

Rothman 

YES 

Donald Trump is very unlikely to 

implement the 45 per cent across-theboard 

tariff on imports from China that he 

proposed in an interview last year. US law 

permits the President to make only an 

emergency declaration of 15 per cent tariffs 

for up to five months, and I imagine that 

many chief executives have been calling 

Trump to advise him of the negative 

consequences of such a move for their 

firms. More than 900,000 American jobs are 

supported by US exports of goods and 

services to China, with 40 per cent of those 

jobs created between 2009 and 2015. I also 

imagine Trump will be advised that a tariff 

hike would have a significant impact on 

consumer prices in the US, pushing up 

prices for goods sold at places such as 

Walmart. That would hurt the spending 

power of his working-class political base. 

These factors are likely to lead the 

President-elect to take a more targeted 

approach, raising import tariffs on a limited 

number of goods, probably those which 

are not destined directly for American 

consumers, such as steel. 

£ Andy Rothman is investment strategist at 

Matthews Asia. 

Marianne 

Petsinger 

NO 

On the campaign trail, Donald Trump 

blamed China for stealing US 

manufacturing jobs and lowering wages. To 

remedy this, he vowed to impose tariffs on 

Chinese imports, to bring trade cases for 

“unfair subsidy behaviour” and to label the 

country a currency manipulator. Given how 

central the anti-trade rhetoric was to 

Trump’s platform, he will likely try to deliver 

on his promise. While it is improbable that 

Trump will follow through on his proposal 

to impose 45 per cent tariffs on Chinese 

goods, he might impose tariffs between 5- 

15 per cent – which would be enough to 

spark a trade spat. The US President has 

the power to impose tariffs under certain 

circumstances without congressional 

approval. In addition, Trump’s recent 

nominations for United States trade 

representative, treasury secretary and head 

of the newly-created National Trade 

Council, are long-time critics of China’s 

trade practices. While this does not make a 

US-China trade war inevitable, the 

potential risk is non-negligible. 

£ Marianne Petsinger is geoeconomics 

fellow of the US and the Americas 

Programme at Chatham House.

CITYAM.COM 


OPINION 

17 

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

:@cityam 

LETTERS 

TO THE EDITOR 

Train 

wreck 

[Re: As Tube strike causes chaos for the 

capital’s commuters, more travel 

headaches are on the cards, yesterday] 

Well, that was a vile experience for all of us! 

Perhaps the unions’ time would be better 

spent preparing for driverless trains? 

Name withheld 

[Re: Unleash competition to improve UK 

rail, yesterday] 

This article inaccurately estimates that 

around 60 per cent of delays on Southern Rail 

in 2015 were due to problems with the railway 

infrastructure such as track and signalling. 

The actual percentage was 17 per cent. 

Network Rail’s infrastructure is the most 

reliable it has ever been and has been steadily 

improving for many years as a result of 

investment and new technology monitoring 

its condition in real-time. 

Network Rail and GTR (Southern Railway) 

are working more closely together than ever 

before in an effort to run a better, more 

reliable train service but this is a daily 

challenge when managing the impact of 

industrial action and ever growing 

congestion. 

Continued investment is key and a £300m 

boost was earmarked yesterday to tackle 

some key trouble spots and bottlenecks over 

the next two years. 

Mark Carne, chief executive, Network Rail 

[Re: The great Civil Service myth, and why 

it’s time to shake things up] 

Surely the great Civil Service myth Christian 

May alludes to ceased to be believed when we 

started watching Yes Minister. 

Mark Taha 

BEST OF 

TWITTER 

Rail unions claim concern for 

passenger safety, then push 

them onto motorcycles, 

bikes and other dangerous 

modes by striking. 

#TubeStrike 

@RichardWellings 

Yesterday was the 

anniversary of the 

introduction of Income Tax 

(1799) by William Pitt the 

Younger. A “temporary” tax 

that is still here today. 

@the_tpa 

1st million industrial robots: 

50 years to install 

2nd million: 8 years 

And far more capable than 

the 1st... 

@ianbremmer 

Italy: Europe’s sick man! 

Italian unemployment 

unexpectedly rose to 11.9 

per cent in November, the 

highest level since June 

2015! 

@jsblokland 

It’s finally happening - Fiat 

Chrysler just announced 

plans to invest $1BILLION in 

Michigan and Ohio plants, 

adding 2000 jobs. 

@realDonaldTrump 

Why solving the country’s 

housing crisis means backing – 

not battering – landlords 

POLITICS is a strange world, and 

the year’s events (Trump, 

Brexit and elsewhere in 

Europe) are topsy-turvy. But I 

still find it strange that 

Britain’s best and most effective form 

of housing provision, the private 

rented sector, is coming under such 

consistent attack. 

Policies such as changes to the way 

landlords are taxed, the stamp duty 

levy on the purchase of homes to rent, 

the decision to end letting agent fees 

paid by tenants and criminal sanctions 

around the right to rent checks have 

created an atmosphere of uncertainty 

for the sector. 

As we look ahead to 2017 we need to 

re-focus on the core objective of boosting 

the supply of homes to rent alongside 

all other tenures which ministers 

have rightly called for and which 

should be reflected in the 

government’s forthcoming housing 

White Paper. The Royal Institution for 

Chartered Surveyors predicts that 1.8m 

new homes to rent will be needed by 

2025. 

As a start, policy needs to recognise 

that corporate investment in the rental 

market will only go so far. Large blocks 

of flats require a significant amount of 

time to get off the ground and tend to 

be only in cities. As the House of Lords 

Economic Affairs Committee so vividly 

put it last year: “efforts to bring large 

institutional investors into the sector 

have so far achieved little”. 

Any route towards boosting the 

supply of homes to rent cannot therefore 

be viable without supporting the 

vast majority of landlords who are individuals. 

The majority of these enjoy 

Alan 

Ward 

good relationships with their tenants 

and provide good and decent accommodation. 

What’s more, the Council of 

Mortgage Lenders has noted that over 

half of landlords have loan-to-value 

ratios on buy-to-let mortgages of below 

60 per cent, far more conservative than 

lending for owner occupied properties. 

While the RLA will continue to call for 

the changes to mortgage interest relief 

to apply only to new borrowing, it will 

seek for some of the extra tax raised 

from this and the 3 per cent stamp duty 

levy on the purchase of additional 

homes, to be used to encourage the 

kind of behaviour the government is 

looking for. These measures are expected 

to net the Treasury £3.1bn by 2021. 

First, it could help finance a policy of 

not applying the levy where a landlord 

is prepared to invest in a home to rent 

which adds to the net supply of 

dwellings. This could be a new build 

property, converting commercial units 

into housing or bringing one of the 

over 600,000 empty homes back into 

use. 

Second, to develop the new homes we 

need for rent, more work is needed to 

free up small plots of unused land 

which can often become magnets for 

anti-social behaviour. These are of no 

interest to big developers but individual 

landlords could swiftly develop a few 

properties on them. The Local 

Government Information Unit and the 

Federation of Master Builders reported 

recently: “we will not build the homes 

we need in the UK on large sites alone”. 

Local authorities and public bodies 

such as the Ministry of Defence and the 

NHS should be encouraged to identify 

small plots (suitable for up to five new 

homes) of unused public sector land for 

development by the private rented sector, 

and there could be various models 

for land transfer that would benefit 

councils, tenants and landlords. 

Third, in the 2016 Budget the government 

announced that capital gains tax 

would be cut from 28 per cent to 20 per 

cent from April 2016. It noted at the 

time that it would not apply to residential 

property in order to incentivise 

investment in companies over property. 

Given the extent of the housing crisis 

we need to incentivise investment in 

property just as much as companies. 

That is why, with protections in place 

to prevent abuse, we believe that the 

lower rate of capital gains tax should 

apply where a landlord is prepared to 

sell a property to a sitting tenant. 

As landlords look ahead to 2017, they 

will do so with a sense of weariness and 

concern having felt bruised during 

2016. Ministers are right to talk about 

needing more homes of every tenure. 

The year ahead will provide an opportunity 

to make good on this promise 

and support the country’s landlords to 

develop the homes we need to rent. 

£ Alan Ward is chairman of the 

Residential Landlords Association. 

@RLA_News 

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18 FEATURE TUESDAY 10 JANUARY 2017 

CITYAM.COM 

TRADING 

COMING IN FROM THE COLD 

Between a higher 

oil price, a 

prudent central 

bank and warmer 

relations with 

Trump, there are 

reasons to like 

Russia this year, 

says Will Railton 

SINCE Donald Trump’s election, 

investors have embraced 

his tax-cutting, regulation-ripping 

agenda, and have been 

resolute in backing perceived 

winners and dumping losers. 

Developed markets are in; emerging 

ones are out – the obstinate tycoon 

must be pleased. 

Since 9 November, the promise of 

higher fiscal spending in the US has 

raised bond yields, and caused the dollar 

to appreciate in expectation of higher 

interest rates this year. Almost 

$70bn (£58bn) has poured into US equities 

since the presidential election, 

Bank of America Merrill Lynch (BAML) 

reported and relative currency weakness 

is expected to benefit stock markets 

in Japan and Europe this year as 

well. 

Emerging markets (EMs) have drawn 

the short straw in this zero-sum trade. 

Last week, Turkey’s lira and 

Argentina’s peso plumbed new depths, 

and BAML reported that $10bn has 

fled emerging market bonds and equities 

since the election. As the greenback 

rises, the dollar debts of EM 

corporates and governments become 

more expensive to pay down. 

Russia’s currency, the rouble, is one 

EM currency which has not only resisted 

this trend but has actually appreciated 

against the dollar since 

September. Enticed by higher local-currency 

returns, foreign investors have 

bought Russian stocks and bonds, leading 

the Micex index to rise 32 per cent 

in the last 12 months and making borrowing 

cheaper for Russian companies 

and its government. 

THE OIL PRICE 

Much of these gains are owing to the 

price of oil. Last year, the black stuff 

made its largest annual gain since 

2009 as the Organisation of Petroleum 

Exporting Countries (Opec) and 11 

other oil-producing nations – including 

Russia – finally agreed to curb production 

and end the global glut in 

supply. 

Russia is expected to emerge from 

recession later this year, and with the 

roubles in its citizens’ pockets worth 

relatively more, analysts and fund 

managers say that domestically- 

focused stocks could keep rising, even 

if export-dependent ones don’t. 

“The market was up quite a lot last 

year, but that doesn’t mean it won’t go 

up more in 2017,” says Colin Croft, 

manager of the Jupiter Emerging 

European Opportunities fund. “There 

are many areas of the market which 

haven’t seen earnings upgrades yet, 

such as consumer-focused companies 

and telecoms.” 

If the signatories of last year’s agreement 

can stick to the bargain (and 

many suspect they will not), the price 

of oil could hover between $50 and $60 

per barrel. This would be good for 

Russia, which recently passed a Budget 

for 2017-19 based on the oil price staying 

between $40-45 per barrel, and for 

the Saudi-led Opec, which wants to 

keep the oil price low enough that its 

shale-producing competitors in the US 

cannot bring too many of their rigs 

back online. 

CENTRAL BANK STABILITY 

But the rouble’s strength is down to 

more than just dearer oil, namely a 

credible central bank which has kept 

monetary policy tight, halving the rate 

of inflation in 2016 and ensuring that 

Russia is one of a handful of countries 

where interest rates may fall this year. 

In December, the Central Bank of 

Russia (CBR) voted to keep interest rates 

on hold at 10 per cent, and is targeting 

inflation of 4-5 per cent this year. “This 

would provide a very attractive yield on 

local currency bonds,” says Croft. It also 

provides an eye-catching “carry trade” 

opportunity, thinks UBS Group, which 

could yield a 26 per cent return in 12 

months. A carry trade involves borrowing 

in a currency with a low interest 

rate and buying one with a high interest 

rate – the rouble, in this case. 

“A lot of things are clicking for Russia 

right now,” says Matthias Siller, manager 

of Baring Emerging Europe fund. 

“But the CBR has dealt with challenges 

such as energy prices and political 

issues has convinced market participants 

that its approach is very orthodox 

and there is no shying away from 

short-term pain.” Russia allowed its 

currency to float freely in 2014, 

making it the only former dollarpegged 

oil exporter which has allowed 

its currency to bear the brunt of the oil 

price collapse from $115 per barrel in 

2014 to $28 in February last year. The 

2017-19 Budget contains big cuts to 

defence and healthcare spending and 

tax rises, with the government 

It is one of a 

handful of 

countries where 

interest rates may 

fall in 2017 

showing little appetite for fiscal imprudence, 

says Siller. “Even before the 

Saudi experiment, the Russian stock 

market was up, proving to a lot of sceptics 

that it can cope with lower oil 

prices.” 

BUSTING SANCTIONS? 

With Trump set to enter the White 

House next week, there is speculation 

that economic sanctions imposed by 

the US and the EU on Russia over the 

Ukraine crisis and its annexation of 

Crimea could ease. The US Presidentelect 

has refused to acknowledge 

Russia’s sponsorship of hacking during 

the election, and makes no secret of his 

admiration for Russia’s strong-man 

leader. 

Such thinking may, however, be premature, 

not least because the EU views 

Putin more dimly than ever. “Sanctions 

will be difficult to lift unless Russia 

radically changes its Ukraine strategy,” 

says Peter Kisler at North Asset 

Management. “Although anything is 

possible,” he adds. 

Sanctions themselves have not hampered 

the performance of Russia’s 

economy, thinks Croft, but their 

removal could provide a further boon 

to investor sentiment. Siller agrees, but 

thinks that the reaction might be overly 

bullish. “I wouldn’t be surprised if it 

increased demand for Russian stocks. 

But quantifying its impact in performance 

terms is more complicated. I’d be 

surprised if that, in itself, justified 

higher prices.”

CITYAM.COM 


FEATURE 

19 

Populism should take centre stage at Davos 

RESPONSIVE and Responsible 

Leadership: that’s the theme of 

this year’s World Economic 

Forum meeting in Davos next 

week. Amid all the political 

carnage of 2016, this actually seems to 

be quite a timely headline. Especially 

when compared with some of the 

spectacularly missed opportunities to 

put the biggest global issues at the heart 

of the Alpine confab over the past few 

years. 

Now, as important as tackling the 

Fourth Industrial Revolution was last 

January, in hindsight it was nowhere 

near a big enough problem for the 

world’s most influential policymakers, 

businessmen and academics to have as 

the theme. As it turned out, last year 

was all about the voice of the people, or 

vox populi, and the smashing of the 

complacency surrounding political bubbles 

from the Westminster village to 

Capitol Hill. Elsewhere, Italy’s Matteo 

Renzi also felt the full force of an angry 

mood among voters. Across the globe, 

people have decided they just want to 

“stick it to the man”. No matter what or 

who was up for election, the populace 

wanted to upset the apple cart and cast 

CNBC 

COMMENT 

Steve 

Sedgwick 

off its feeling of impotency. 

This year promises more of the same, 

with huge political battles to be waged 

in France, Germany, Italy and Greece, to 

name but a few. Of them, the French 

political battle looks the scariest for the 

European establishment, with Marine 

Le Pen looming large in the presidential 

election. The experts and pollsters say 

the Front National candidate just can’t 

win, but didn’t they say that about 

Trump and Brexit as well? Although, as 

a sidenote, Le Parisien has taken the 

eminently sensible approach of banning 

polls from its pages, due, no doubt, to 

the fact that the opinion survey companies 

were appallingly bad at their job 

last year. How many Michael Fish 

moments, as Andrew Haldane of the 

Bank of England put it, will that indus- 

The Davos bubble is looking less and less idyllic 

The root causes of 

the status quo 

being rejected need 

to be addressed 

try take in 2017? 

Once again, amid all this political 

uproar, the Davos headline theme has 

never been more needed. Bearing in 

mind the Davos get-together coincides 

with the presidential inauguration in 

Washington, there is no doubt that 

President Donald Trump’s impact will 

be top of agenda, no matter what the 

World Economic Forum organisers 

want to talk about. 

For instance, I am involved in several 

energy-related panels and debates, in 

addition to anchoring SquawkBox 

Europe in the mornings, and it seems 

clear that Trump’s impact on energy 

policy will be the most important X factor 

for 2017. Its impact could have more 

long-term ramifications for energy 

mixes than the shorter-term oscillations 

created by Opec and its producer 

cohorts. 

Everywhere you look, Trump’s leadership 

credentials and eventual policies, 

once they are fleshed out beyond 140 

characters, will be under scrutiny. But 

rather than the elite of Davos sneering 

at his populism and hoping it will be 

business as usual, surely this time 

around the root causes of the status quo 

being rejected by angry electorates need 

to be addressed? 

Those looking in at the Davos bubble 

will need more than just lip service and 

a bland “corporate and social responsibility” 

whitewash. Let’s face it, if the cosy 

world of politics can be uprooted so 

unceremoniously and brutally, who is to 

say that the c-suite won’t be next? 

£ Steve Sedgwick is a Squawkbox Europe 

anchor and and Davos delegate. 

& PICKS 

TIPS && PICKS 

Remember principles through the noise 

Hello there. Welcome back to the Tube. 

It’s been an excellent year so far for 

traders in the financial markets and 

clients of eToro. Economic data coming 

in from the UK and around the world 

has been incredibly positive, which has 

led to stocks rising around the globe. 

Traders on Wall Street are currently 

planning a giant party for when the 

Dow Jones Index crosses 20,000 points 

for the first time in history. 

The biggest moves so far this year, 

however, have been coming from the 

currency markets. We’re seeing wild 

fluctuations in the US dollar, the euro, 

and especially in sterling. Article 50 is 

the number one event that economists 

are anticipating this year and every 

Mati 

Greenspan 

article on it makes waves in the 

international markets. 

Theresa May’s hardline comments 

about Brexit have had a very negative 

impact on the pound. Since her Sky 

News interview on Sunday the 

currency has fallen to new lows not 

seen since the flash crash on 7 

October. 

Also driving sterling down is the 

massive Underground strike that 

we’re experiencing. Investors are 

currently trying to calculate how 

many thousands of work hours have 

been wasted by commuters who would 

rather ride an excuse than fight their 

way through traffic to get to work. In 

addition, speculation is rising that 

London’s position as the financial hub 

of the region is undergoing the biggest 

test in recent history. 

If you ask me, though the shortterm 

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counter-cyclical view of the markets 

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ETORO POPULAR INVESTOR 

MATI GREENSPAN, ETORO SENIOR 

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20 LIFE&STYLE TUESDAY 10 JANUARY 2017 

CITYAM.COM 

MOTORING 

BY MOTORINGRESEARCH.COM FOR CITY A.M. 

: @city_am 

: @cityamlife 

Shifting into Top Gear 

On the road in the McLaren 

675LT – the fastest car around 

the Top Gear test track, by Tim Pitt 

Hard to believe it’s just seven 

months since Chris Evans 

burst onto our screens as the 

new host of Top Gear. Yet five 

tumultuous weeks later, he’d 

quit, ego and reputation irrevocably 

dented. 

Evans did gain something positive 

from his double-act with Matt LeBlanc, 

though: a McLaren 675LT. Driven by 

the Stig, the fluoro-green supercar set 

the fastest lap time of the TG Track 

ever, its time of one minute 13.7 seconds 

beating the Pagani Huayra. Evans 

was so impressed he jumped the queue 

and bought one. 

The car I’m driving today is a 675LT 

Spider, the open-top version of TG’s 

record-breaker. But don’t imagine that 

makes this 675hp powerhouse of 

British engineering any slower. It blasts 

past the benchmark 62mph in 2.9 seconds, 

while top speed is 203mph – just 

2mph shy of the coupe. 

If the 675LT looks familiar, that’s because 

it’s essentially a harder, faster 

take on McLaren’s 650S. The most obvious 

difference is longer rear bodywork 

(the long tail, or ‘LT’ of the car’s 

name), which harks back to racing versions 

of the McLaren F1. It also boasts 

lower suspension, a wider track, 40 per 

cent more downforce and 100kg 

shaved off the kerb weight. 

Driving back-to-back with a 650S, the 

differences are obvious. The 675 feels 

keener and more connected; its supersharp 

steering uses a quicker rack than 

MCLAREN 675LT SPIDER 

PRICE: £285,450 

0-62MPH: 

2.9 SECS 

TOP SPEED: 

203MPH 

CO2 G/KM: 

275G/KM 

MPG COMBINED: 

24.1MPG 

McLaren’s P1 hypercar, while the suspension 

has the taut, tightly-damped 

feel of a racer. 

With Normal driving mode selected, 

the 675LT will potter around town 

with surprising docility. But switch to 

Sport, click the carbon fibre paddles 

down a couple of ratios and – wham – 

the McLaren hurls you towards the 

horizon with a zeal that punches you 

in the guts and scrambles your 

synapses. God knows what the 917hp 

P1 must feel like. 

On the roads of Surrey and Sussex, 

opportunities for full-throttle acceleration 

are rare. But while the 675LT’s 

performance might intimidate, its 

chassis does not. Approach the limits 

of grip (not hard on damp tarmac with 

semi-slick Pirelli P-Zero Trofeo R tyres) 

and the P1 feels neutral, predictable – 

even playful. Doubtless it would be sensational 

on a circuit. 

One advantage I have over Chris 

Evans – for today, at least – is that I can 

retract the Spider’s electrically-folding 

hard-top. This allows the full twinturbo 

V8 soundtrack in, amplified by 

the 675LT’s longer titanium exhaust. 

The noise is bassier and more brutish 

than a Ferrari or Lamborghini, but 

somehow more authentic as a result. 

And there are wonderful pops from 

the tailpipes when you shift up in 

Sport mode. 

Above all, the McLaren makes every 

drive feel like an event. Duck under its 

dihedral doors and you’re ensconced 

in a cabin that, with its wide sills, low 

scuttle and wrap around windscreen, 

DESIGN 

PERFORMANCE 

PRACTICALITY 

VALUE 

THE VERDICT 

hhhhi 

hhhhh 

hiiii 

hhhii 

is pure Le Mans racer. It may be rather 

firm and ferocious for everyday use, 

but that scarcely matters; owners will 

probably have a 650S for more prosaic 

journeys. 

The 675LT Spider is an experience to 

be savoured: a shot of 98 RON adrenalin 

for weekend blasts and perhaps the 

occasional track day. Dramatic to behold 

and intoxicating to drive, it’s a superb 

modern supercar: the equal of 

anything with a prancing horse on its 

bonnet. 

There is one problem, though: 

McLaren only built 500 coupes and 500 

Spiders, and all have been snapped up. 

If you want one, expect to pay around 

£100,000 more than the original asking 

price – anything up to £400,000, in 

fact. Still, few would bet against this 

big Mac increasing still further in 

value over time. Investments don’t 

come more exciting than this. 

Tim Pitt works for motoringresearch.com 

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FERRARI F12 LAMBORGHINI AVENTADOR SV ROADSTER PORSCHE 911 TURBO S CABRIOLET 

PRICE: £241,073 

0-62MPH: 

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TOP SPEED: 211MPH 

CO2 G/KM: 350G/KM 

MPG COMBINED: 18.8MPG 

THE VERDICT: 

DESIGN hhhhh 

PERFORMANCE hhhhh 

PRACTICALITY hhiii 

VALUE 

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PRICE: £288,840 

0-62MPH: 

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THE VERDICT: 

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CITYAM.COM 


FEATURE 

21 

OFFICE POLITICS 

Calming the storm in turbulent times 

Mandy Flint and Elisabet Vinberg Hearn 

offer tips on keeping your team watertight 

SMOOTH sailing is rare – we are 

always surrounded by some 

degree of change. But at times 

it’s more choppy than usual; 

more uncertain than the norm. 

Leading your team well in those circumstances 

is more important than 

ever. Team members may feel worried, 

angry or frustrated and not perform to 

their best. So what can you do when 

you find yourself in turbulent times? 

Here are some practical solutions: 

MEET REGULARLY 

Have regular quick check-ins – face-toface, 

on video call or phone. Make people 

feel that they are not alone, that 

you support each other. Have fun 

together and make time for laughter 

and casual conversations. 

FIND ANSWERS TO QUESTIONS 

Uncertainty and turbulence create 

questions. What will this mean for us? 

How will we resolve this? How will I be 

affected? Make sure you create 

frequent opportunities to talk as a 

team, so you understand concerns and 

hopes – and where possible, provide 

answers. Follow these four principles of 

dealing with questions transparently: 

1) Try to answer the question. 

2) If you don’t know an answer, say so. 

3) If you cannot answer the question 

now, make a commitment for when 

you will and honour it. 

4) If you know the answer but cannot 

say currently, say so and make a commitment 

to share information when 

you can. 

FOCUS ON STRENGTHS 

Everyone in a team contributes in their 

unique way. Give each other feedback 

based on individual strengths and 

attributes. When people are able to use 

their strengths, they are energised, 

which is a vital resource when faced 

with uncertainty, as it can give a real 

boost of innovation and determination. 

FOCUS ON YOUR PURPOSE 

Remind the team of their purpose and 

how important their role is within the 

organisation. Stay focused on that purpose 

and get on with the task at hand. 

It’s easy to slow down when faced with 

uncertainty. Keep the team moving forward. 

Adjust goals, plans and tasks if 

needed, making sure the team keeps 

progressing. 

Don’t waste time in the “uncertainty 

void.” Show that it’s okay to make mistakes. 

Sometimes you win, sometimes 

you learn (from what went wrong). Use 

the disruption as a way for the team 

and its members to develop. 

It’s easy to slow 

down or change 

tact when faced 

with uncertainty 

WHAT COULD GO RIGHT? 

There is never just one way of looking 

at a situation. You probably know people 

who have expressed that some of 

the best things that have happened to 

them have come as a result of (unwanted) 

change. 

Help your team to reframe a situation 

by exploring what it could bring from 

an optimistic standpoint. Ask team 

members to share the moments when 

they’ve experienced a good result during 

a time of uncertainty. Use a crisis to 

TAKE A BREAK 

BreakFree 

Free 

Here’s a 

paradoxical app: 

BreakFree is 

designed to 

make you spend 

less time on your 

phone. If you 

think your usage 

is unhealthy, or 

bordering 

addiction, the 

app will study 

your activity in 

the background 

and warn you 

with real time 

notifications 

whenever you go 

overboard. It’s 

both intriguing 

and harrowing to 

see the 16 hours 

a week on 

Twitter. 

pull the team together. 

BALANCE BAD WITH GOOD 

NEWS 

When things are turbulent, the news 

we encounter is typically not very positive, 

and endless exposure to bad news 

has an effect on people. It’s hard to stay 

optimistic when all you read and hear 

is on the negative side. There is always 

more good news than is immediately 

noticeable. Make a point of finding the 

good news and sharing it with your 

team – and encourage them to do the 

same. 

A company that banned bad news 

from the workplace during the recession 

found that it increased performance. 

People were of course allowed to 

read what they wanted to outside of 

work, but they decided that it wasn’t 

the focus they wanted people to have 

while at work. The results? Higher productivity, 

employee engagement and 

sales. 

CELEBRATE SUCCESS 

To celebrate successes is always important, 

but particularly so when facing 

turbulence. That’s when the pat on the 

back and sense of achievement can 

really make a difference. Celebrate the 

milestones and encourage continued 

effort. Be proud of your team – and 

show it. 

£Mandy Flint and Elisabet Vinberg Hearn 

are the authors of Leading Teams – 10 

Challenges: 10 Solutions (FT Publishing).

22 SPORT TUESDAY 10 JANUARY 2017 

CITYAM.COM 

CRICKET 

Morgan: Criticism of me deeply offended my family 

ROSS MCLEAN 

@rossmcleanRMAC 

LIMITED-OVERS skipper Eoin 

Morgan has revealed that the 

criticism he received following 

his controversial decision to skip 

England’s tour of Bangladesh 

caused deep offence to his 

family. 

Morgan, together with 

opener Alex Hales, 

declined to travel to 

Bangladesh in 

October amid 

security concerns, a 

stance which 

FOOTBALL 

Hull warn West 

Ham to forget 

Snodgrass deal 

ROSS MCLEAN 


NEWLY-APPOINTED Hull boss Marco 

Silva has vowed to hold on to the 

club’s top-scorer Robert Snodgrass 

amid interest from fellow Premier 

League strugglers West Ham. 

Hull turned down an offer, believed 

to be in the region of £3m, for Scotland 

winger Snodgrass, who has 

spearheaded his side’s bid for topflight 

survival by netting nine goals 

this term. 

Silva, appointed last week following 

the sacking of Mike Phelan, insists he 

has no intention of selling one of his 

prize assets and has called on the Hull 

board to invest in reinforcements during 

the January transfer window. 

“In this moment, all I want is to improve 

my team,” said former Olympiacos 

manager Silva. “I don’t want to 

lose players, important players of 

course. I hope Snodgrass will continue 

with us, he’s an important player.” 

Hull travel to Old Trafford tonight 

where they will face Manchester 

United in the first leg of their EFL Cup 

semi-final, which will see Silva lock 

horns with fellow Portuguese tacti- 

England director of cricket Andrew 

Strauss said was “disappointing”. 

A number of the England team 

spoke out in support of 

Morgan, although 

reactions were stronger 

elsewhere, in particular 

those of former captains 

Michael Vaughan and 

Nasser Hussain, who 

both claimed the 30- 

year-old had shown a 

lack of leadership. 

When asked 

Eoin Morgan has 

played 170 ODIs 

cian Jose Mourinho. 

Former Chelsea manager Mourinho, 

who is potentially three games from 

his maiden United trophy, has ranked 

tonight’s clash as greater in prominence 

than Sunday’s showdown 

against bitter rivals Liverpool. 

“Hull may look at the semi-final as a 

big occasion,” said Mourinho, a threetime 

League Cup winner while in 

charge at Stamford Bridge. “Maybe for 

them, they have a more important 

game [against Bournemouth] three 

days later in the Premier League. 

“Liverpool is a big match for us but 

we want to be in the final. We will 

face Hull with all the power we have. 

The second leg is away so if we can do 

something in the first leg to give us an 

advantage, we will try that. 

“I think for big clubs a competition 

is a competition. I was never good at 

choosing competitions. At some of my 

clubs you arrive at April and you have 

a busy fixture list but you are in competitions 

to try to win.” 

The likes of Zlatan Ibrahimovic, Paul 

Pogba and Ander Herrera are expected 

to be restored to the United starting XI 

after being rested for Saturday’s FA 

Cup tie against Reading. 

about the coverage of him pulling 

out of the Bangladesh series, Morgan 

said: “To be honest, I didn’t see 

much of it. When things are 

announced like that, you can plan 

how to deal with it, and my way of 

dealing with it was to get away from 

things, which I did. 

“So I didn’t see a great deal of it. I 

think my family saw a lot of it and 

were very offended, but that’s part 

and parcel of being in the limelight 

sometimes. Certainly standing here I 

don’t regret the decision. 

“When I made the decision, I 

considered all the consequences and 

I felt very comfortable with the 

FOOTBALL 

decision.” 

Left-hander Morgan is back at the 

helm as England prepare for three 

one-day internationals against India, 

the first of which starts on Sunday 

in Pune, as well as three Twenty20 

internationals. 

Lancashire’s Jos Buttler received 

praise for the way he stepped into 

the breach and led England during 

their 2-1 one-day success in 

Bangladesh, and Morgan is not 

prepared to take his long-term place 

in the team for granted. 

“Nothing is a certain, absolutely 

nothing,” added the Dubliner, who 

has played 170 one-day 

CAMBRIDGE BLUES Leeds fight back to 

avoid Cup shock and reach fourth round 

LEEDS produced a second-half fightback to avoid an FA Cup upset and advance to 

round four after a 2-1 victory at League Two Cambridge United last night. Stuart 

Dallas and Alex Mowatt (pictured) scored the goals to cancel out Uche Ikpeazu’s early 

opener. Leeds will travel to the winners of the Sutton United and AFC Wimbledon tie. 

internationals. “I like to think things 

have gone pretty well for us over a 

small period of time and we’ve had a 

little bit of success. 

“You’re always out to prove how 

good you are and what you can do. 

I’m always looking to win games of 

cricket and score runs.” 

Batsman Joe Root, meanwhile, has 

provided England with a boost and 

will join his team-mates in Mumbai 

on Thursday after the birth of his 

first child on Saturday. Morgan said: 

“He [Root’s son] and his wife are 

healthy which is great news and Joe 

should be ready for selection for the 

first one-day international.” 

FOOTBALL 

Ake determined 

to work his way 

into Conte plan 

ROSS MCLEAN 


CHELSEA youngster Nathan Ake has 

vowed to force his way into manager 

Antonio Conte’s plans after 

returning to Stamford Bridge having 

had his loan spell at Bournemouth 

cut short. 

The 21-year-old former Feyenoord 

player made 12 appearances for the 

Cherries, scoring three goals 

including a last-gasp winner against 

Liverpool last month, after moving 

to the south coast on a temporary 

basis in the summer. 

But Ake has been recalled by 

parent club and league leaders 

Chelsea, where he is expected to 

provide both defensive and midfield 

cover, and he is determined to make 

his presence felt in the capital. 

“The ambition now is to continue 

to improve and break into the team 

at Chelsea,” said Ake. “It’s a great 

team and the manager there has 

given me a lot of confidence, so it’s 

something I’m looking forward to.” 

Ake, who made his Premier League 

debut for Chelsea against Norwich 

on Boxing Day 2012, is adamant that 

he returns to Chelsea a much better 

player following his loan stint. 

“Over the six months I feel I have 

developed as a player, both on and 

off the pitch,” added Ake. 

Chelsea, meanwhile, have lodged 

an appeal against the red card 

shown to John Terry during Sunday’s 

FA Cup clash with Peterborough. 

FOOTBALL 

Klopp confirms top brass set to 

face Saints as Coutinho returns 

ROSS MCLEAN 


LIVERPOOL manager Jurgen Klopp 

insists he will field the strongest lineup 

at his disposal during his side’s 

EFL Cup semi-final first leg at 

Southampton tomorrow. 

Klopp has also confirmed that 

Philippe Coutinho is primed for a 

return to action after being sidelined 

for more than six weeks with an 

ankle ligament injury. 

The German was forced to defend 

picking the youngest starting XI in 

the club’s history after the Reds’ 

goalless FA Cup draw with Plymouth 

on Sunday, but is adamant he will 

not be taking any further chances 

with Wembley beckoning. 

“Wednesday, the best team we can 

play, that’s how it is,” said Klopp, 

who guided Liverpool to the League 

Cup final last year during his first 

season in charge at Anfield. 

“I think Phil is fit enough to be a 

big part of the squad. It means there 

could be minutes. It depends on the 

game. It’s been six or seven weeks. 

It’s long.” 

Southampton counterpart Claude 

Puel, meanwhile, has conceded that 

the speculation surrounding skipper 

Jose Fonte’s future has tainted 

preparations for the tie. 

Fonte has been excluded from the 

matchday squad after handing in a 

transfer request, having turned 

down the club’s offer of a contract 

extension. Puel said: “It is perhaps a 

little difficult because of the 

situation with Jose.” 

FOOTBALL 

CONTINUED FROM PAGE 24 

There will be a tussle of recent 

competition victors at Old Trafford 

as holders Manchester United take 

on Championship strugglers Wigan 

Athletic, who were the shock 

conquerors of Manchester City in 

the 2013 final. 

Tottenham have been handed a 

home tie against League Two playoff 

contenders Wycombe 

Wanderers, while there will an east 

Midlands showdown between 

Derby County and defending 

Premier League champions 

Leicester. 

Arsenal are on the road against 

either Southampton or Norwich, 

who will replay after a 2-2 draw at 

the weekend, and should Liverpool 

overcome Plymouth they will face 

Wolves at Anfield. 

Fulham, meanwhile, who are 

10th in the Championship, have 

been drawn at home to Premier 

League strugglers Hull City. 

FOURTH ROUND DRAW 

Tottenham Hotspur v Wycombe 

Derby County v Leicester City 

Oxford v Newcastle/Birmingham 

AFC Wimbledon/Sutton v Leeds 

Plymouth/Liverpool v Wolves 

Southampton/Norwich v Arsenal 

Lincoln/Ipswich v Brighton 

Chelsea v Brentford 

Manchester United v Wigan Athletic 

Millwall v Watford 

Rochdale v Huddersfield Town 

Burnley/S’land v Fleetwood/Bristol City 

Blackburn v Barnsley/Blackpool 

Fulham v Hull City 

Middlesbrough v Accrington Stanley 

Crystal Palace/Bolton v Manchester City 

Ties to be played 27-30 January

CITYAM.COM TUESDAY 10 JANUARY 2017 SPORT 23 

GOLF 

GOLF 

COMMENT 

Sam 

Torrance 

HE WON well in the end but 

it took an extraordinary 

finish before Justin 

Thomas clinched his second 

PGA Tour title already 

this season at the Tournament of 

Champions in Hawaii on Sunday. 

Thomas led by two overnight and 

stretched his advantage over the redhot 

Hideki Matsuyama to five shots, 

only to see that gap slashed to just 

one shot in the space of two holes on 

the back nine. 

First Matsuyama, who has not finished 

outside the top two in six 

events, holed an eagle at the 14th. 

Then Thomas compounded that by 

making a double bogey at 15. 

But he recovered to make a fantastic 

birdie at 17 before Matsuyama inexplicably 

three-putted, restoring 

Thomas’s two-shot lead. 

Victory in Hawaii added to the 

American’s success at the CIMB Classic 

in Kuala Lumpur in October, 

right at the start of the 2017 PGA 

Tour season, so he is off to a flyer. 

Thomas is a player who has been 

talked about for some time already, 

and I thought the way he drove the 

ball at the weekend was phenomenal. 

He’s not the biggest man but he 

hits it a prodigious distance. It all 

bodes well for the 23-year-old. 

Matsuyama was brilliant again. He 

must have had a good Christmas because 

he has picked up where he left 

off last year. 

Two-time Major winner Jordan Spieth, 

meanwhile, enjoyed a great 

final round which featured eight 

birdies and earned him a share of 

third. It’s a good start to the year 

for a player needing to improve 

on his 2016. 

RORY RETURNS FAVOUR 

Both Spieth and Matsuyama 

are staying in Hawaii for this 

week’s Sony Open, where I’ll be 

keen to see how Justin Rose 

gets on in his first outing 

of the year. 

Rose struggled with a 

back injury after winning 

gold at the 

Olympics and it was a 

worrying sign when he 

pulled out of the Hero 

World Challenge last 

month. At this stage 

my main hope is that 

Rose is 100 per cent recovered 

following a 

long break. 

RESULTS 

THE EMIRATES FA CUP THIRD ROUND 

Cambridge Utd ......(1) 1 Leeds........................(0) 2 

Ikpeazu 25 Dallas 56 

Att: 7,973 Mowatt 63 

DARTS 

BDO WORLD CHAMPIONSHIP (The Lakeside Complex, 

Frimley Green, Surrey)—Men’s 1st rd: P Blackwell (Eng) 

bt D Reynolds (Wal) 3-2; J Hughes (Gbr) bt M Atkins (Eng) 

3-1; P Hogan bt M Phillips (Eng) 3-2. Women’s 1st rd: L 

Winstanley (Eng) bt A Zijlstra (Ned) 2-0. 

GOLF 

SBS TOURNAMENT OF CHAMPIONS (Kapalua, Maui, 

Hawaii)—Final rnd: USA—270 J Thomas 67 67 67 69, 

273 H Matsuyama (Jpn) 69 68 66 70, 276 P Perez 69 71 

69 67, R Moore 67 67 71 71, J Spieth 72 69 70 65, 277 B 

Steele 72 67 67 71, D Johnson 69 70 69 69, P Reed 70 

65 72 70, 278 T Finau 70 68 70 70, J Walker 65 70 70 

73, W McGirt 70 69 66 73, 279 J Day (Aus) 70 69 70 70, 

J Herman 67 71 72 69, 280 D Berger 68 70 70 72, C 

Gribble 69 72 69 70, B Snedeker 70 70 69 71, 281 C 

Hoffman 71 70 71 69, R Pampling (Aus) 69 71 72 69, R 

Knox (Sco) 71 69 68 73, 282 F Gomez (Arg) 70 68 71 73, 

283 A Baddeley (Aus) 70 70 74 69, J Dufner 68 68 72 75, 

284 B Stuard 72 71 70 71, J Hahn 74 70 68 72, 285 V 

Taylor 72 71 69 73, 286 B Watson 72 72 71 71, M Hughes 

(Can) 73 72 73 68, 287 G Chalmers (Aus) 71 72 70 74, 291 

B Hurley III 74 73 72 72, 292 J Vegas (Ven) 72 76 70 74, 

S Woo Kim (Kor) 75 70 69 78, 293 B Grace (Rsa) 73 74 71 

75. 

Justin Thomas 

held off in-form 

Hideki Matsuyama 

to win in Hawaii 

Encouraging starts 

for Thomas, Spieth 

and Matsuyama 

While Tiger Woods’s start 

to the year looms later this 

month, we get to see Rory 

McIlroy this week when he 

takes the unusual step of starting 

his year off in South Africa. 

McIlroy, who usually begins 

in the Gulf, is returning 

a favour to 

host Ernie Els, who 

took part in Rory’s 

Irish Open in 

2015, and that’s 

nice to see. 

It is a strange 

one in a way 

because South 

African greens 

McIlroy begins his 

2017 in South Africa 

TENNIS 

ATP & WTA APIA INTERNATIONAL SYDNEY—Men’s 

1st rnd: G Elias (Por) bt C O’Connell (Aus) 6-7 (3-7) 6-4 6-1, 

D Evans (Gbr) bt T Moura Monteiro (Bra) 6-3 4-6 6-3, (5) P 

Kohlschreiber (Ger) bt F Fognini (Ita) 6-4 6-4, P Lorenzi 

(Ita) bt F Mayer (Ger) 7-6 (7-4) 4-6 7-6 (7-5), M Barton 

(Aus) bt K Edmund (Gbr) 7-6 (7-3) 7-6 (7-5). Women’s 1st 

rnd: D Gavrilova (Aus) bt D Vekic (Cro) 6-3 7-6 (7-1), (6) J 

Konta (Gbr) bt A Rodionova (Aus) 6-3 6-4, (3) D Cibulkova 

(Svk) bt L Siegemund (Ger) 6-2 6-0, A Pavlyuchenkova 

(Rus) bt S Stosur (Aus) 6-3 6-1, (10) C Wozniacki (Den) bt 

M Puig (Pur) 6-3 2-6 6-4, B Zahlavova Strycova (Cze) bt E 

Makarova (Rus) 6-3 7-5, (9) R Vinci (Ita) bt M Sakkari 

(Gre) 6-4 6-0, C Vandeweghe (USA) bt (8) E Vesnina (Rus) 

6-2 4-0 ret, Y Duan (Chn) bt I Falconi (USA) 7-5 3-6 6-0, C 

McHale (USA) bt K Bondarenko (Ukr) 4-6 7-5 6-2. 

WTA HOBART INTERNATIONAL (Australia)—1st rnd: (1) 

K Bertens (Ned) bt A Beck (Ger) 6-1 6-2, S Vickery (USA) 

bt T Pereira (Bra) 6-3 7-6 (7-5), E Mertens (Bel) bt (7) K 

Mladenovic (Fra) 6-1 6-2, J Fett (Cro) bt F Schiavone (Ita) 

6-3 6-2, V Cepede Royg (Par) bt C Burger (Ned) 6-0 3-6 

6-3, A Petkovic (Ger) bt N Gibbs (USA) 6-6 6-0, R Ozaki 

(Jpn) bt K Nara (Jpn) 0-6 7-5 6-3, L Safarova (Cze) bt V 

Golubic (Swi) 6-2 6-4, K Flipkens (Bel) bt J Fourlis (Aus) 

7-6 (12-10) 6-4, (11) J Larsson (Swe) bt K Pliskova (Cze) 

6-7 (5-7) 6-3 6-1, L Tsurenko (Ukr) bt J Larsson (Swe) 6-2 

6-3, L Arruabarrena (Spa) bt M Minella (Lux) 4-6 6-2 6-3. 

ATP ASB CLASSIC (Auckland, New Zealand)—Singles 

1st rnd: J Vesely (Cze) bt H Zeballos (Arg) 6-4 6-3, D 

are notoriously severe, but it’ll be 

fascinating to see how McIlroy fares, 

now that he is not tied down to one 

club brand and has had the winter 

to practise with his favourites. England’s 

Andy Sullivan, winner there 

in 2015, is also in action. 

And finally, it looks as though Jim 

Furyk is soon to be confirmed as 

captain for the United States’ Ryder 

Cup defence at Le Golf National in 

France next year. 

I hope that he does get the job. 

He’s a dear friend, someone I have 

known for so many years and played 

alongside countless times, and will 

be a fantastic, fiery competitor for 

Europe and Thomas Bjorn. 

Sam Torrance OBE is a multiple Ryder 

Cup-winning golfer and media commentator. 

Follow him on Twitter @torrancesam 

Brown (Ger) bt M Mmoh (USA) 7-6 (7-4) 3-6 6-4, R Haase 

(Ned) bt F Tearney (Nzl) 6-4 7-5, (6) F Lopez (Spa) bt M 

Venus (Nzl) 3-6 6-4 6-3, (7) S Johnson (USA) bt S Robert 

(Fra) 6-4 6-3, M Jaziri (Tun) bt D Sebastian Schwartzman 

(Arg) 7-6 (7-1) 6-3. 

TODAY’S DIARY 

(7.45pm unless stated) 

EFL Cup Semi-final First Leg 

Man Utd v Hull (8pm) .................................................................................... 

Checkatrade Trophy Northern Section Second Round 

Cheltenham v Leicester U21 ....................................................................... 

Checkatrade Trophy Third Round 

Blackpool v Wycombe (7pm) ...................................................................... 

Coventry v Brighton U21 .............................................................................. 

Luton v Chesterfield ....................................................................................... 

Mansfield v Oldham ........................................................................................ 

Oxford Utd v Scunthorpe ............................................................................. 

Swansea U21 v Wolverhampton U21 (7pm) ........................................ 

Yeovil v Reading U21 (7pm) ........................................................................ 

Vanarama National League 

Barrow v Southport ....................................................................................... 

Braintree Tn v Sutton Utd ........................................................................... 

Eastleigh v Forest Green............................................................................... 

Macclesfield v Dover ...................................................................................... 

CRICKET 

Tour Match: India A v England (Mumbai, 8am). 

IN BRIEF 

SARACENS PAIR BARRITT 

AND BARRINGTON CITED 

£ RUGBY UNION: Saracens duo 

Richard Barrington and Brad Barritt 

will face a Rugby Football Union 

disciplinary hearing today for the 

double tackle that left Exeter lock 

Geoff Parling concussed during 

Saturday’s Premiership clash. Prop 

Barrington was sent off for his part 

in the incident, while Barritt, who 

avoided punishment on the day, 

has since been cited for dangerous 

tackling. The match ended in a 13- 

13 draw. Wales back Liam Williams, 

meanwhile, who can play full-back 

or wing, has agreed a three-year 

deal with Saracens and will join the 

club for the 2017-18 season. 

CONEYGREE TO MISS 

CHELTENHAM GOLD CUP 

£ HORSE RACING: Former 

champion Coneygree has been 

ruled out of this year’s Cheltenham 

Gold Cup in March in order to 

recover from an ongoing injury. 

Coneygree has been restricted to 

just one outing this campaign and 

was sidelined for the King George VI 

Chase at Kempton on Boxing Day. 

Assistant trainer Sara Bradstock 

said: “I’m afraid it’s not going to 

happen, which is a real shame. 

When you have a horse like this you 

must not take any risks and there is 

no point going there half-baked.” 

Annual packages for the 16/17 season 

sold out in record time so join the 

17/18 waitlist now to avoid disappointment. 

01151

24 SPORT TUESDAY 10 JANUARY 2017 

SPORT 

FOOTBALL 

World Cup to 

be expanded 

to 48 teams 

CHANGE SET TO EARN FIFA AN EXTRA $1BN 

FRANK DALLERES 

@frankdalleres 

CONTROVERSIAL but highly lucrative 

proposals to expand the World Cup from 

32 teams to 48 from 2026 are expected to 

be rubber-stamped by governing body 

Fifa today. 

Critics say the plans, advanced by Fifa 

president Gianni Infantino, will dilute the 

overall standard, produce less exciting 

matches and could increase the 

likelihood of teams colluding. 

Germany is the only major nation to 

oppose the reforms, however, which 

would generate an additional $1bn 

(£822m) in revenue compared to the 

current format, according to Fifa 

estimates. 

Expansion also promises to provoke a 

fresh round of wrangling over how the 16 

extra places are allocated, with European 

countries’ current dominant position 

almost certain to be weakened. 

Fifa’s council must choose from five 

possible formats for future World Cups, 

but the only one considered likely to 

succeed is Infantino’s proposal for a 

tournament comprised of 16 groups of 

three teams. 

Group winners and runners-up would 

progress to the last 32, from where the 

competition would continue in a knockout 

format. The total number of matches 

would increase from 64 to 80 but, as with 

the existing format, could be completed 

in 32 days and would involve no more 

than seven games for the winners. 

Fifa projections forecast that the 48- 

team, 16x3 format would generate 

revenue of $6.5bn (£5.3bn) – an increase 

of around $1bn on the $5.5bn (£4.5bn) 

income expected at next year’s 

tournament in Russia. 

Internal consultation documents also 

acknowledge that expanding the World 

Cup would “present some issues which 

would need to be address regarding 

balance”. They add that the favoured 

16x3 format “would face issues relating to 

an odd number of teams in group stage”, 

such as “simultaneous kick-offs”, which 

threaten the integrity of the competition. 

One solution suggested by Fifa is to take 

the unprecedented measure of deciding 

drawn group stage games by a penalty 

shoot-out. 

Germany’s top football official Reinhard 

Grindel says the plans “have considerable 

weaknesses”. Football Association chief 

executive Martin Glenn has said England 

would prefer to “keep the tournament 

smaller” but could not prevent the 

reforms being passed. Scotland, Wales 

and Northern Ireland are thought likely to 

support the expansion, which Infantino 

has touted as good for smaller nations. 

Today’s vote follows last night’s Fifa 

Football Awards, in which Real Madrid’s 

Cristiano Ronaldo was crowned Best Male 

Player and Leicester’s Claudio Ranieri 

won Best Men’s Coach. 

BACK IN THE SWING Sam Torrance 

on Thomas, Matsuyama, McIlroy and 

Furyk as golf resumes for 2017 PAGE 23 

Q&A 

CITYAM.COM 

How Fifa Council 

vote works 

WHAT IS BEING PROPOSED? 

The first expansion of the World 

Cup since 1998, from 32 teams to 

48. The new format would take 

effect in 2026 and see teams 

divided into 16 groups of three 

instead of eight groups of four. 

WILL IT HAPPEN? 

Fifa president Gianni Infantino is 

confident his plans have 

overwhelming support and 

England’s Football Association 

has indicated it is resigned to the 

changes being approved. 

WHAT HAPPENS TODAY? 

The 37 members of the Fifa 

Council vote on five possible 

formats for future World Cups, 

but after months of consulting 

and lobbying there is only one 

that is thought likely to be 

passed. 

ARE THERE ANY 

ALTERNATIVE PROPOSALS? 

Keep the existing format; expand 

to 40 teams in eight groups of 

five; expand to 40 teams in 10 

groups of four; and expand to 48 

teams with an initial knockout 

round to trim 16 teams. But they 

are all very long shots. 

WHAT’S THIS ABOUT 

GROUP STAGE PENALTIES? 

One solution to possible 

problems thrown up by threeteam 

groups is to ensure each 

fixture has a winner. Whether 

that is adopted or not won’t be 

decided at Tuesday’s vote. 

WHO GETS EXTRA PLACES? 

That won’t be decided on 

Tuesday either, but Africa, Asia 

and the Americas all want 

healthy increases on their 

allocations, while Europe is set 

for only a modest rise on its 

current 13 places. 

RUGBY UNION 

Robshaw ruled out of the Six Nations as 

injuries mount for England coach Jones 

FRANK DALLERES 

@frankdalleres 

ENGLAND head coach Eddie Jones 

has suffered another major injury 

blow less than two weeks before he 

names the squad tasked with 

retaining the Six Nations after 

Chris Robshaw was ruled out of the 

tournament. 

Harlequins flanker Robshaw, 30, 

was due to have surgery on a 

shoulder problem yesterday and is 

expected to be absent for around 

three months. 

It is the latest setback to dent 

Jones’s Six Nations plans, with 

centre Manu Tuilagi sidelined until 

next season and No8 Billy Vunipola 

likely to miss the start of the 

tournament. 

The Australian also has concerns 

over captain Dylan Hartley, flanker 

James Haskell and props Joe Marler 

and Mako Vunipola. England host 

France at Twickenham in their 

opening match on 4 February. 

Robshaw, who suffered the injury 

against Worcester on 1 January, 

recovered from leading England’s 

dismal 2015 World Cup campaign 

to become a driving force in the 

team’s renaissance under Jones. He 

played in all but one of the team’s 

13 successive victories last year. 

Hartley faces a battle to prove he 

is match-fit as his six-week ban 

runs until 23 January, while Haskell 

lasted less than a minute of Wasps’ 

defeat to Leicester on Sunday and 

must undergo concussion checks 

before he can play again. 

Marler has a calf problem, 

although Quins say he will be fit 

for the Six Nations, while Mako 

Vunipola is a doubt for the opening 

rounds with a knee injury. 

Locks George Kruis and Joe 

Launchbury hope to recover from a 

broken cheekbone and calf injury 

respectively. Maro Itoje, named 

World Rugby breakthrough player 

of the year in November, could 

replace Robshaw at blindside. 

FOOTBALL 

Millwall handed reward as 

Chelsea face London derby 

ROSS MCLEAN 


LEAGUE One Millwall were last night 

rewarded for dumping Bournemouth 

out of the FA Cup with another home 

clash against top-flight Watford in 

the fourth round. 

Millwall, who are currently 10th in 

the third tier, thrashed an understrength 

Cherries 3-0 at the New Den 

on Saturday and will now face 

Walter Mazzarri’s Hornets in the last 

32, which will take place from 27-30 

January. 

Premier League leaders Chelsea 

face a west London derby against 

Brentford, who took the Blues to a 

fourth round replay in 2013 

following a 2-2 draw at Griffin Park. 

Should Crystal Palace negotiate 

their replay against Bolton, Sam 

Allardyce will be afforded the 

opportunity to pit his wits against 

former Barcelona boss Pep Guardiola 

after Manchester City were handed 

their second away tie of this year’s 

competition. 

The winners of the replay between 

National League Sutton United, the 

lowest-ranked side left in the 

competition, and AFC Wimbledon 

will face Championship outfit and 

1972 tournament winners Leeds. 

CONTINUED ON PAGE 22

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