CRUNCH

BUSINESS WITH PERSONALITY
RETURN OF THE XJR
WILL JAGUAR’S NEW V8
MAKE YOU PURR? P28
PREPARE FOR FAILURE
WHY A BREXIT DEAL
MAY NOT HAPPEN
THE FORUM P22
TUESDAY 4 APRIL 2017 ISSUE 2,848 CITYAM.COM FREE
CRUNCH
SECOND TIME UNLUCKY Southern
rail drivers reject another settlement
£ NEARLY HALF A BILLION POUNDS
WIPED OFF UK TECH FIRM’S VALUE
AFTER APPLE PULLS THE PLUG
£ ANALYSTS PREDICT LEGAL
BATTLE OVER IMAGINATION’S
INTELLECTUAL PROPERTY
250
LYNSEY BARBER
AND TRACEY BOLES
BRITISH tech firm Imagination
Technologies saw its share price
plummet more than 60 per cent
yesterday after revealing that
Apple, its biggest customer, had
given notice that the company’s
chip technology would be dropped
from future devices.
Apple warned it will no longer
use Imagination’s intellectual
property in its new products in 15
months to two years’ time.
Imagination would not be eligible
for royalty payments under the
current licence and royalty agreement,
according to Apple.
Shares in Imagination dropped
70 per cent in morning trading
and finished the day 62 per cent
down at 103p, their lowest level
since 2009.
The British chip-maker has supplied
Apple with technology and
intellectual property for years. Its
technology formed the basis of
graphics processor units (GPUs) in
Apple’s phones, tablets, iPods, TVs
and watches, and accounted for
approximately 50 per cent of
Imagination’s revenues.
Apple, Imagination’s largest customer
and an eight per cent shareholder,
has previously come close
to buying it outright.
The share price fall saw Imagination’s
market capitalisation fall
from £754m to £290m and
prompted analysts to speculate
that the company could become a
takeover target again.
“This is what we would describe
as a black swan moment for the
company and investors in Imagination.
There were no signs that
suggested this was coming nor
any supply chain evidence of alternative
design socket changes,” said
Neil Campling at Northern Trust
Capital Markets.
“There may well be speculation
in coming days of Imagination
being a takeover candidate for
other semiconductor IP companies.
We wouldn’t rule out such a
scenario but fundamentals have
literally dramatically changed
overnight. As such, and in conclusion,
we view Imagination as now
uninvestable despite the fact the
stock will look optically cheap.”
It is thought the two tech firms
could end up at legal loggerheads
over intellectual property rights.
Apple has been working on a
separate, independent graphics
design in order to control its products
and there are alternative GPU
platforms on the market.
Imagination said yesterday:
“Apple has not presented any evidence
to substantiate its assertion
that it will no longer require Imagination’s
technology, without
violating Imagination’s patents,
intellectual property and confidential
information. This evidence
has been requested by Imagination
but Apple has declined to
provide it.”
ETX Capital senior market
analyst Neil Wilson said: “Sounds
like Imagination is prepared to
launch legal action if Apple does
walk away.”
200
150
100
REBECCA SMITH
@BexKSmith
ASLEF train drivers have rejected a
deal agreed by their union and
Southern rail’s parent company, in
another blow to long-suffering
commuters on the line.
The offer, proposed by Govia
Thameslink Railway (GTR), had been
put to a referendum last month,
meaning that if drivers gave it the
green light, the dispute over the role
of guards would officially be over. But
members of the union applied the
brakes, with 51.8 per cent rejecting
the deal, from a 75.4 per cent turnout.
“It’s a hugely disappointing
outcome for our passengers,
particularly as the agreement carried
the full support and recommendation
of the Aslef leadership,” said Andy
Bindon, director at GTR.
Aslef boss Mike Whelan said: “We
will now seek new talks with the
company and work to deliver a
resolution to this dispute in line with
the expectations of our members.”
Southern is also locked in a standoff
with the RMT union.
Accused ex-Barclays trader was a ‘rookie’ in world of Libor, court told
HAYLEY KIRTON
@HayleyLEK
A FORMER Barclays trader accused
of playing a role in rigging Libor
was a “rookie” trying to learn in an
environment likened to studying
medicine under Dr Frankenstein,
his lawyer told the court yesterday.
The Serious Fraud Office has
claimed Stylianos Contogoulas and
Ryan Reich played roles in a
conspiracy to fix the benchmark
rate, in particular the US dollar
linked version of the rate, between
1 June 2005 and 1 September 2007.
John Ryder, the lawyer for
Contogoulas, told the court his
client, who has a bachelor’s degree
in computer science, spent a chunk
of his early career at the bank
working on IT projects rather than
trading.
Ryder noted his client was two
and a half years into his Barclays
job before he was given his first
small trading book and as a result
“he missed out on all the
instruction that would have been
expected and would have taken
place” had he been trading from
day one.
“He was a rookie, even though he
had been there all that time,” Ryder
said of his client’s knowledge by
the time he took up his role on the
US dollar desk.
Ryder added that, by the time
Contogoulas joined the dollar
trading desk, the act of requesting
Libor rates was so ingrained that
trying to learn on the job was like
“learning medicine from Dr
Frankenstein”.
The barrister claimed that, if his
client had felt his actions were
dishonest, there was no way he
would have made his requests in
writing.
The case is ongoing.
FTSE 100▼ 7,282.69 -40.23 FTSE 250▼ 18,954.24 -17.59 DOW▼ 20,650.21 -13.01 NASDAQ▼ 5,894.68 -17.06 £/$▼ 1.248 -0.007 £/€▼ 1.169 -0.008 €/$▲ 1.067 +0.002

02 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
COMING INTO BLOOM The New Covent Garden Flower Market
opened doors to its improved home for the first time yesterday
THE CITY VIEW
Ministers need to learn
lessons from Hinkley
AS BRITAIN gears up for a nuclear power renaissance, the
spotlight has moved from the new £18bn reactors at
Hinkley Point C to Moorside in Cumbria. Billed as the
biggest nuclear plant in western Europe, the planned
Cumbrian reactor is an important part of the UK’s plans for a
new generation of reactors to maintain energy security. But its
future has been thrown into doubt by a financial crisis at
Toshiba, the Japanese group leading the consortium to design
and build it.
Toshiba wants to sell out. A Korean state-backed utility called
Kepco is tipped to buy in. UK business secretary Greg Clark
will visit Seoul this week to meet senior South Korean
government officials and industry executives to discuss
potential investment.
Big questions remain over the terms of any Korean
participation, particularly
whether the British
government would be
willing to contribute
towards the estimated £10bn
to £15bn needed to build the
plant, or at least provide
credit guarantees.
Mixed signals have emerged from the Treasury and Clark’s
Department for Business, Energy & Industrial Strategy about
whether the government is willing to commit public money to
the expensive and risky business of building nuclear reactors.
Hinkley Point C gives clear reason for caution. As part of the
35-year deal signed with France’s EDF in 2013 to build the
plant in Somerset, the government agreed to pay £92.50 for
each megawatt hour of electricity. Wholesale energy prices
have fallen since the price was agreed, leaving the government
on the hook for the potential difference when the reactor is up
and running. Future top-up payments could run to billions.
Pricey, but the alternatives to not pushing ahead with nuclear
new builds are stark: higher bills, insecure supplies, continued
carbon emissions and even blackouts.
The lesson from Hinkley as the government mulls how to fire
up Moorside? Avoid locking yourself in for the long term at an
expensive rate for a technology which is still developing and
likely to get better – and cheaper.
Follow us on Twitter @cityam
The alternatives to
not pushing ahead
with nuclear new
builds are stark
THE NEW Covent Garden Flower Market yesterday welcomed its first customers to its new headquarters in Battersea, just down
the road from its previous location. Despite its name the market has been trading on the Nine Elms site since 1974, when it
moved from the city centre. Traders sell flowers six days a week in the air-conditioned hall, with bright and early 4am starts.
Stock exchange hits back
as rival eyes clearing arm
WILLIAM TURVILL
@wturvill
EURONEXT yesterday attempted to
increase its “bargaining power” over
the London Stock Exchange as it remains
keen on acquiring the group’s
French clearing business, known as
LCH SA or Clearnet.
The pan-European exchange group
announced a deal with the Dutch
clearing business of US giant Intercontinental
Exchange
(ICE) to process its derivatives
transactions. The
10-year agreement with
ICE Clear Netherlands,
which will be active
from 2019, would see
Euronext transferring
LCH SA revenues to ICE.
Currently, Euronext
claims to account
for
Stephane Boujnah is chief
executive of Euronext
around half of LCH SA’s turnover.
The London Stock Exchange hit back
after the announcement, saying that
Euronext’s contribution from derivatives
clearing was “immaterial to LCH
SA” and makes up less than one per
cent of the LSE group’s overall adjusted
operating profit.
The UK firm also said LCH SA is in
discussions to clear share trades by
MTF, a pan-European platform that
the group also owns, to enable “significant
cost savings and efficiencies to
investors in French, Dutch, Belgian,
Portuguese and a range of other
European securities”.
The Euronext-ICE deal was announced
less than a week after
its acquisition of LCH SA from
the London Stock Exchange fell
through. The deal was dependent
on the completion of the UK
group’s merger with Deutsche Boerse,
which was blocked by the European
Commission last week. Euronext has
made clear that it remains keen on
LCH SA, which it had agreed to buy for
€510m (£435m). Euronext said in yesterday’s
announcement it has told the
London Stock Exchange and LCH
Group that the LCH SA deal remains a
“strategic priority”.
Euronext chief executive Stephane
Boujnah added: “But in the absence of
obtaining an agreement to complete
this acquisition, Euronext is fully
committed to securing the best longterm
solution for its post-trade activities,
in the interests of clients and
shareholders. I am therefore pleased
to be signing heads of terms with ICE,
who are renowned for their worldclass
clearing services, to deploy joint
clearing services to Euronext markets
from Amsterdam and Paris.”
FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL
MAY PROMISES ‘JAW-JAW’
WITH SPAIN OVER GIBRALTAR
Theresa May has said that Britain will
use “jaw-jaw” to resolve its differences
with Spain over Gibraltar, laughing off
suggestions that a dispute over the
Rock could plunge the two countries
into war. Spain’s foreign minister
Alfonso Dastis has said his government
was “surprised” at the tone of
commentary in the UK over Gibraltar,
after a weekend in which former Tory
leader Michael Howard suggested
Britain could go to war to defend the
territory.
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
KATE SPADE SHARES FALL AS
SALE TIMELINE LENGTHENS
Kate Spade shares lost ground in afterhours
trading last night following a
report that the retailer has extended the
time frame for negotiations over a
potential sale. Shares were down more
than eight per cent after the bell.
TAXPAYERS RIPPED OFF BY
FOREIGN AID PROFITEERS
Unethical behaviour is “absolutely
embedded” in the culture of foreign aid
contractors employed by the
government, according to MPs.
Profiteering, overcharging and duplicity
have been uncovered at businesses that
receive millions of pounds in taxpayers’
money to implement aid projects
overseas, it is claimed in a new report.
ZUMA’S DEPUTY LEADS
CHARGE TO END HIS REIGN
South Africa’s deputy president, Cyril
Ramaphosa, has stepped up pressure
on his boss, Jacob Zuma, to resign,
calling on supporters to back getting rid
of “greedy, corrupt people in our ranks”.
ROYAL MINT UNVEILS
BEATRIX POTTER 50P
Beatrix Potter’s mischievous Peter
Rabbit is to be joined by three other
children’s favourites in a roll-out of new
colour coins. The Royal Mint is
bolstering the coin collection it issued
last year to mark the 150th anniversary
of the author’s birth.
GENUS BULLDOZES SEMEN
MONOPOLY WITH COURT WIN
Animal genetics company Genus has
won a long-awaited intellectual
property court case that will allow it to
break a monopoly on selling bull
semen. The result of the case removed
restrictions on the company over the
processing of sexed bovine semen.
FOX NEWS HIT BY NEW ROGER
AILES HARASSMENT LAWSUIT
Fox News contributor Julie Roginsky
has filed a gender discrimination
lawsuit alleging she was sexually
harassed by the cable network’s former
chairman, Roger Ailes, and that he and
other executives retaliated when she
rejected his unwanted sexual advances.
NORTH KOREA LINKED TO
THEFT AT NEW YORK FED
A newly discovered digital clue links the
hacking group blamed for a
multimillion-dollar cyberattack on
Bangladesh’s central bank to a
computer in North Korea, according to
the Russian cybersecurity company
Kaspersky Lab ZAO.

CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
03
Oh, Canada: WS
Atkins shares fly
on takeover talk
WILLIAM TURVILL
@wturvill
SHARES in British engineering and
consultancy group WS Atkins jumped
nearly 30 per cent yesterday after the
firm revealed it was the subject of
takeover interest from Canada.
Atkins, which is being advised by
Moelis and JP Morgan, is in talks to be
acquired by SNC-Lavalin. The Canadian
company has until 1 May to firm
up its 2,080p-per-share, £2.1bn offer.
Atkins’ shares flew 27 per cent to
1,950p yesterday. The Epsom-based
firm has worked on projects including
an Elan Valley aqueduct, a Wessex
Water optimiser and the Thames
Tideway Tunnel.
SNC-Lavalin is headed up by Scotsman
Neil Bruce, formerly of AMEC. Its
projects include the Trans-Canada
Highway and, in the UK, the reconstruction
of East Grinstead station.
WS ATKINS
2,100
2,000
1,900
1,800
1,700
1,600
1,500
P
1,950
3 Apr
28 Mar 29 Mar 30 Mar 31 Mar
3 Apr
Burberry shares were up as much as 1.7 per cent during intraday trading yesterday
Burberry announces Coty partnership
GEORGINA VARLEY
0.75%
BURBERRY will licence its
beauty business to US
group Coty in a new
strategic partnership that will
bring in around £180m.
Coty will pay £130m for the longterm
licence to the business, plus
about £50m for inventory and other
assets.
Luxury fashion retailer Burberry
will then receive ongoing royalty
payments from October 2017.
Part of the Standard & Poor’s 500,
Coty is one of the largest beauty
companies worldwide with
approximately £7.2m in revenue.
Speaking about Coty, Burberry
chief executive Christopher Bailey
said: “Working with a global
partner of their scale and expertise
will help drive the next phase of
Burberry Beauty’s development and
position this business for future
growth.”
News of the partnership sent its
shares up by 1.7 per cent in
intraday trading, before finishing
the day up 0.75 per cent at 1,737p.
Explosion rocks
St Petersburg
metro killing 11
JASPER JOLLY
@jjpjolly
AN EXPLOSION on the St
Petersburg metro yesterday killed
11 people, with Russian authorities
treating it as a terrorist attack.
As many as 42 people were
treated in hospital, with 13 of them
in a serious condition, according to
Russian news agency Interfax.
Some metro lines in Russia’s
second city had reopened yesterday
evening, despite the National
Antiterrorism Committee saying it
was still searching for perpetrators
in an apparent bomb attack.
No group publicly claimed
responsibility. Russian Prime
Minister Dmitry Medvedev
described the explosion as a
“terrorist attack”, while President
Vladimir Putin said authorities
would investigate possible causes,
including “above all, those of a
terrorist nature”.
BREITLING.COM
Eurozone unemployment improves
in February as manufacturing rises
JASPER JOLLY
@jjpjolly
THE EUROZONE economy has shown
further signs of heating up as
unemployment hit seven-year lows
and activity in the manufacturing
sector expanded to six-year highs.
Unemployment dropped to 9.5 per
cent in February, according to the
European Commission, with a fall
from 9.6 per cent to take it to the
lowest level since May 2009.
Meanwhile the purchasing
managers’ index (PMI) showed further
expansion in the bloc’s
manufacturing sector, with the
reading increasing to 56.2 in March,
according to IHS Markit.
The expansion (denoted by a
reading above 50) was driven by the
fastest growth in manufacturing
production and new orders since the
Eurozone debt crisis in 2011 stymied
activity in the European economy.
Europe’s economy has shown signs
of finally gaining momentum in
recent months, with the region also
boosted by the failure of populist antieuro
election candidates.
Sophie Tahiri, an economist at S&P
Global Ratings, said: “What should
help are better prospects for world
trade after a very weak year in 2016,
which are likely to support Europe’s
external demand.”
British manufacturing growth
slowdown surprises economists
EMMA HASLETT
@emmahaslett
GROWTH in the UK’s manufacturing
sector slowed unexpectedly in March.
IHS Markit’s purchasing managers’
index, which measures growth in output,
fell to 54.2 in March, down from
54.6 in February – and well below the
55.1 expected. Any figure below 50 denotes
a contraction in the sector.
It was the second unexpectedly low
reading in as many months, and the
sector’s weakest expansion in the past
eight months. However, the survey
measure remains above its longerterm
average.
Martin Beck, senior economic advisor
to the EY Item Club, said: “Since
the manufacturing PMI reached a
two-and-a-half-year high last December,
the story has been one of a gentle
decline in the index.”
He added: “Looking forward, the sector’s
prospects will represent the outcome
of a battle between the
activity-depressing effect of higher inflation
versus the positive boost from
the weak pound and a better global
outlook.”

04 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
Liberty Living now second-biggest
student home provider in the UK
SOAP OPERATION Goldman Sachs mulls
£600m bid for The Body Shop from L’Oreal
HAYLEY KIRTON
@HayleyLEK
LIBERTY Living yesterday completed a
deal for another 13 properties,
making it the second largest student
home provider in the UK.
The student accommodation
company purchased the residences
from Blackstone for £460m. The sites
are spread out across the UK,
Germany and Spain and add around
another 6,500 beds to the property
firm’s portfolio.
The purchase has not only
provided Liberty, which itself was
bought by the Canada Pension Plan
Investment Board in March 2015,
with a footprint in continental
Europe, but also brings its total
portfolio up to around 25,000 beds.
In the UK, it now only lags behind
sector giant Unite in size.
“We have ambitious growth plans
to meet the changing demands of
the student community,” said David
Shearer, executive chairman of
Liberty Living. “We are focused on
expanding our branded, servicedriven
business through acquisitions
and developments in key markets.
“Liberty is committed to providing
high quality residences, with first
class services, and I am delighted to
complete this significant milestone
in our development.”
THE MERCHANT banking arm of Goldman Sachs is considering a £600m bid for The
Body Shop, according to Sky News. French cosmetics giant L’Oreal wants to offload
the ethically sourced cosmetics and soaps retailer after poor performance.
New disclaimer
on Sadiq’s site
dilutes pledges
JASPER JOLLY
@jjpjolly
THE MAYOR of London Sadiq Khan
has added a disclaimer to his old
campaign website saying the contents
do not necessarily count as policy
pledges.
The website, first set up before
Khan was selected as Labour’s candidate
for the mayoralty, contains some
policies which are no longer part of
the mayor’s manifesto.
However, the more recently added
disclaimer disavows the contents of
the website, and points users instead
to Khan’s manifesto document,
which drops some of the earlier
pledges. Some of the policies not included
in the final manifesto include
a pledge to plant 2m trees in the capital,
as well as to cut bus fares during
his first year as mayor.
Neither pledge or any equivalent
measure is mentioned in the mayor’s
final manifesto document.
The disclaimer says: “Some of the
information on this page may be out
of date and does not reflect campaign
pledges or mayoral policy. As
such it contains some pages that are
out of date, including some old campaigns,
some early ideas, and some
policies that were later overtaken by
events.”
Khan said he was “not sure” when
the disclaimer was added and who
instructed it to be added when he
was questioned on the disclaimer at
mayor’s question time in the London
Assembly.
Conservative London Assembly
member Andrew Boff said the campaign
website presented a “misleading
picture” of the mayor compared
to his “much smaller manifesto”.
Boff said: “This is a campaign website
littered with promises that any
reader would assume were pledges
Khan would try to deliver if elected.”
He added: “Since I began asking
him some awkward questions about
it, a disclaimer has mysteriously appeared
on the site, effectively conceding
the promises amount to nothing.
You couldn’t make it up.”
Khan told the London Assembly he
was “responsible” for the “defunct”
website, but said events had overtaken
the “early ideas” on the site.
Hermes becomes latest investor
to attack Tesco-Booker merger
EMMA HASLETT
@emmahaslett
ANOTHER major investment group
yesterday came out against the £3.7bn
merger between Tesco and Booker.
The boss of Hermes Fund Managers
warned it could give the pair “too
much power” over smaller stores.
Hermes does not own any shares in
either Tesco or Booker, but it does act
as a consultant for other investment
groups.
Speaking to the Times, Saker
Nusseibeh, chief executive of Hermes,
said the deal could put too much
pressure on the 8,000 corner stores
the pair will have influence over once
the deal goes through (Booker
owns the Londis and Budgens
brands).
“Too much power in the hands of
any one supplier is never a good
thing,” he said. “In the long term
there could be a backlash against
[Tesco].”
Tesco’s shares closed down 0.48 per
cent to 184.7p last night.

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06 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
Mace criticises
HS2 process as
seriously flawed
REBECCA SMITH
@BexKSmith
THE LOSING bidder of a contentious
£170m HS2 contract has criticised the
tendering process as “seriously
flawed”, saying it continues to mull
legal action.
British construction company Mace
queried the £170m contract to design
parts of the high-speed line being
awarded to CH2M, raising concerns
over a potential conflict of interest.
The situation has been under growing
scrutiny, with the Transport Committee
now saying the contract will be
investigated.
Louise Ellman, chair of the committee,
said: “Given the scale of HS2 and
the amounts of money involved, the
Transport Committee is keen to understand
the reasons behind the latest
developments. I will be suggesting to
committee members that we hold a
session as early as possible after
recess.”
Mace met with HS2 for further talks
over the situation on Friday, after
CH2M withdrew its interest from the
contract, citing “protracted delays
and ongoing speculation”.
A Mace spokesperson said: “Disappointingly,
HS2 Ltd seems dead set on
defending what we believe is a seriously
flawed process.”
They added: “In 26 years of working
on some of the most iconic projects
around the UK and the world, we have
never yet taken a case to the High
Court, and would not take any decision
lightly.”
Mace had called for the tendering to
be rerun, but HS2 has held firm on
proceeding with discussions with
the second-placed bidder from the
original process, Bechtel.
“We are confident that our processes
were fair and robust,” an HS2
spokesperson said.
The conflict of interest issue has
been raised because CH2M executives
have taken top jobs at HS2.
Treasury fintech envoy Eileen Burbidge is part of the group visiting India
Hammond and Carney joined by
experts to talk fintech in India
HAYLEY KIRTON
@HayleyLEK
THE CHANCELLOR and the Bank of
England governor are being joined on
their trip to India by a crew of fintech
experts, to discuss how the UK can
strengthen its ties with Indian
businesses in the sector.
Philip Hammond and Mark
Carney have embarked on a two-day
visit to India to help boost trade and
investment ties outside the EU.
Among those joining the pair to
discuss fintech, as well as the wider
financial sector, are Financial
Conduct Authority chief executive
Andrew Bailey, Treasury fintech
envoy Eileen Burbidge and Lloyd’s of
London chairman John Nelson.
Mayor should
lobby for Brexit
guiding rules
GEORGINA VARLEY
LONDON’S position as an economic
powerhouse means mayor Sadiq
Khan should lobby the government
for a set of guiding principles
during Brexit negotiations, the
London Assembly’s economic
committee yesterday said.
The call was made as the
committee published a report the
challenges and opportunities that
lie ahead for London’s companies.
In 2016 the committee found
London’s economy generated
£364bn, almost a quarter of the UK’s
overall economic output that year.
Assembly member and chair of
the committee, Fiona Twycross,
said: “Businesses in London
continue to experience a great deal
of uncertainty since the referendum
result last June and despite the
triggering of Article 50 last week, we
are no closer to knowing what the
future will be for London’s
businesses.
“It is essential for the UK as a
whole that the capital’s economy
continues to thrive and the mayor
must ensure that the voice of
London’s businesses is clearly
heard in developing future trade
agreements and regulation.”

CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
07
Ineos snaps up oil major’s pipeline
CAITLÍN MORRISON
@citycait
OIL GIANT BP yesterday announced it
has agreed to sell its Forties pipeline
system (FPS) to Ineos for a total consideration
of up to $250m (£200m).
The groups were first reported to
be in talks over a potential sale last
month.
The assets being sold include the
main Forties offshore and onshore
pipelines and other associated
pipeline interests and facilities. Ineos
will make a cash payment of $125m
on completion and an earn-out
arrangement over seven years that
totals up to $125m.
John McNally, chief executive at
Ineos olefins and polymers, said the
company was “excited to get stuck
in” at the FPS. McNally told City A.M.
300 employees would be moving to
Ineos as part of the deal, with no job
losses planned.
“Ineos have been saying for quite
some time that we wanted to move
into North Sea oil and gas, this is the
next step. We want to apply our skills
and know-how to improve the
economies of these assets,” he said.
According to McNally, Ineos and
BP had been in talks for some time
about a potential deal, and added:
“We’ve reached a deal both sides are
happy with.”
The Forties pipeline was opened in 1975 to transport oil from the Forties oilfield
Bombardier
and BP set to
curb exec pay
Reckitt mulls
food unit sale
to raise funds
REBECCA SMITH
AND SHRUTI TRIPATHI CHOPRA
@BexKSmith @shrutitripathi6
BP IS set to cut its chief executive Bob
Dudley’s pay for the next three years
amid fears of a shareholder revolt.
The oil giant has decided to reduce
Dudley’s maximum long-term
incentive plan award from seven
times his $1.85m (£1.48m) basic
salary to five times, Sky News
reported last night.
Details of Dudley’s future pay
policy will be disclosed in its annual
report later this week.
Meanwhile, Bombardier is set to
defer paying more than half of last
year’s planned compensation for its
six highest paid executives until 2020
after a public backlash against the
announcement.
The firm said it was “sensitive to
the public reaction to our executive
compensation practices”, and chief
executive Alain Bellemare said the
deferred payment will only be
payable if performance objectives are
achieved; “delivering value to all our
shareholders, including the people of
Quebec and Canada”.
Hundreds of people had gathered
in front of the firm’s Montreal
headquarters on Sunday to protest
against the payouts; Bombardier was
set to give $32.6m (£26m) to
executives, up from $21m in 2015.
The plane and train maker had
increased 2016 compensation nearly
50 per cent, after receiving $1bn in
taxpayer aid and announcing its
intention to cut more than 14,000
jobs worldwide.
Pierre Beaudoin, Bombardier’s
executive chairman, said: “After
listening to the recent public debate
about the compensation of senior
executives at Bombardier, I have
asked the board of directors to reset
my 2016 compensation, reducing it to
the 2015 level.”
COURTNEY GOLDSMITH
@courtneynoelg
RECKITT Benckiser (RB), the maker of
Durex condoms and Dettol cleaners,
yesterday confirmed it is beginning a
strategic review of its food business.
“French’s Food is a truly fantastic
business with great brands, people
and a history of outperformance. It is
nevertheless non core to RB,” the
company said in a statement.
“We have therefore decided to
initiate a strategic review of food
where we will explore all options for
this great business.”
The news follows reports that RB
was planning to sell its £2bn food
division to help fund its takeover of
US baby formula maker Mead
Johnson for $17.9bn (£14.3bn). RB’s
push to become a bigger consumer
health player means its food division
has become a low priority.
Food accounts for just five per cent
of the company’s global sales.
The deal would see RB ditching
brands including French’s mustard
and Frank’s Red Hot sauce in a
transaction that could raise more
than $3bn (£2.3bn).
US giant Kraft Heinz is expected to
show an interest in the auction after
its takeover bid for Unilever in
February fell apart.
Darren Shirley, analyst at Shore
Capital, said RB’s food unit is in good
health, delivering five per cent of
constant currency revenue growth in
2016 with sales of £411m.
“While any disposal of food would
be helpful in the deleverage of the
RB business post the proposed Mead
Johnson infant nutrition acquisition,
we would in no way expect it to lead
us to change our ‘hold’ stance on
RB’s stock,” Shirley said.
Shirley added press speculation
the deal could raise £2.4bn appears
“a little demanding” against a global
peer group valuation range.
Babcock wins £360m Royal Navy deal
Babcock will provide servicing for the Royal Navy’s flagships
COURTNEY GOLDSMITH
@courtneynoelg
ENGINEERING outsourcing firm
Babcock International yesterday
announced it was selected as a
preferred bidder in a deal with the
Ministry of Defence worth around
£360m.
Shares in the FTSE 100 company
lifted more than one per cent before
closing 0.4 per cent higher at 885.5p
when it said it would provide
support for the Royal Navy’s fleet of
warships over seven years.
The news is a boost to the
company which last week said its
nuclear reactor clean-up contract
would be terminated early because
of a “defective” government
procurement process, sending its
shares tumbling.
Babcock will manage the technical
configuration of systems for the
Royal Navy’s new Queen Elizabeth
class aircraft carriers and Type 45
destroyers, supply spares and provide
in-service support.
Chief executive Archie Bethel said
the deal represents “a real vote of
confidence in our capabilities and
performance as the Royal Navy’s key
support partner.”

08 NEWS TUESDAY 4 APRIL 2017
Government
edges closer to
Lloyds Bank exit
REBECCA SMITH
@BexKSmith
THE GOVERNMENT has announced its
remaining stake in Lloyds Banking
Group is now under two per cent.
The taxpayers’ shareholding in the
bank is now at 1.97 per cent. Until recently,
the government had been
Lloyds’ largest shareholder.
It had previously been reported the
state could be rid of its entire holding
by spring this year, after the government
announced its holding was
below the five per cent threshold at
the beginning of 2017.
The government originally took a 43
per cent share when it bailed out the
bank for £20.5bn, in the wake of the
2008 financial crisis.
Now, the government said it
has nearly recovered all of the money
taxpayers injected into the bank
during the financial crisis, once
share sales and dividends received are
accounted for.
The economic secretary to the Treasury,
Simon Kirby, said: “I welcome this
further progress in returning Lloyds
to the private sector.
“We have now recovered over £20bn
for the taxpayer and are very close to
recovering all of the money taxpayers
injected into the bank during the financial
crisis.”
The Lloyds trading plan, selling
shares in the market over time,
initially ran from 17 December 2014 to
30 June 2016. The government then
announced in October last year that
further sales of Lloyds’ shares would
also be made through a trading plan.
In January, the government passed
the significant milestone of
announcing it was no longer Lloyds’
biggest shareholder, making progress
with the aim to return it to the
private sector.
Lloyds announced its first major acquisition
since its bailout in December,
saying it would buy credit card
business MBNA for £1.9bn.
New, exciting products drive growth in the market, said chief exec Phil Popham
Yacht maker Sunseeker sails to
profit after a ‘defining’ year
COURTNEY GOLDSMITH
@courtneynoelg
AFTER swinging back to profit in a
“remarkable turnaround”, luxury
yacht maker Sunseeker has set its
sights on future growth.
Britain’s biggest boat builder
yesterday reported earnings before
interest, tax, depreciation and
amortisation (Ebitda) of £6m for the
year to the end of December,
compared with a loss of £7m in 2015.
Sunseeker said revenue increased
25 per cent to £252.4m due to
“incredible” response to new models.
The group will invest a further £50m
across the business to support a bold
product plan with many more new
introductions over the next few years.
CITYAM.COM
Ex-PM adviser
goes Public
with tech firm
LYNSEY BARBER
@lynseybarber
A FORMER top adviser to David
Cameron has launched a new
venture designed to help startups
work with government to improve
technology in the public sector.
Daniel Korski, who left Number
10 after the Brexit vote, has
backing from high-profile names in
the tech industry for the venture,
called Public, with venture capital
investor and son of the heir to the
Heineken fortune Alexander De
Carvalho.
Investors include venture
capitalists Robin and Saul Klein,
private equity boss Jon Moulton, LV
chairman Mark Austen and Passion
Capital partner Stefan Glaenzer.
Public will combine different
aspects of the venture funding and
tech accelerator model to help
startups navigate wanting to work
with government.
“Why shouldn’t the UK be at the
forefront of delivering those
services? There’s an opportunity
now [with the Brexit vote] rarely
afforded to a fully functioning
Western democracy to rethink the
entire under wiring of the state,”
Korski told City A.M.
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CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
09
Talk of deadline
extension hits
Toshiba’s shares
COURTNEY GOLDSMITH
@courtneynoelg
SHARES in troubled Japanese conglomerate
Toshiba fell more than nine
per cent yesterday during trading,
after sources warned it is expected to
miss a third results deadline.
The firm’s stock closed 5.47 per cent
lower as sources told Reuters Toshiba’s
auditor, PwC, has questions about its
financial results for the business year
through March 2016.
Toshiba was originally meant to file
its quarterly earnings for the period
from October to December in February.
It has twice received approval to
extend the deadline.
In March, the group said it needed
more time to investigate an “alleged
occurrence of inappropriate pressures
by certain senior managers” surrounding
the purchase of CB&I Stone
& Webster, a nuclear construction
company, by its US unit, Westinghouse.
Westinghouse filed for bankruptcy
protection last week after incurring
£5bn in impairment charges at US
nuclear new builds.
The writedowns could push
Toshiba’s net loss for the year to ¥1
trillion (£7.2bn) compared with a previous
estimate of ¥390bn, the company
warned.
A Toshiba spokesman told Reuters
the possible postponement was not
something the company had announced
and that it was preparing to
make the earnings announcement by
11 April.
The group has been threatened with
a delisting from the Tokyo Stock Exchange
if it misses a deadline.
Last week, the firm’s shareholders
approved plans to split off the company’s
prized flash memory chip business
to cover Westinghouse’s losses.
Angry investors lashed out at chief
executive Satoshi Tsunakawa and others,
with one calling Toshiba a “laughing
stock around the world”.
The FTSE 250 security company’s shares jumped last month on strong results
G4S pushes transformation plan
with sale of US prison contract
COURTNEY GOLDSMITH
@courtneynoelg
GLOBAL security firm G4S yesterday
sold its US youth detention centres
for $56.5m (£45.1m) in cash, with
proceeds earmarked for “corporate
purposes”.
The UK-based company sold its
youth services unit, which operates in
Florida, Texas and Tennessee, to
BHSB, a US health care services
company.
Chief executive Ashley Almanza
said the sale is part of a portfolio
management programme started in
2013 to improve the company’s
strategic, commercial and
operational focus.
In the year to the end of December,
G4S’ youth services unit reported pretax
profit of $5.1m.
Apax Partners
bags Israeli
firm for $397m
TOVA COHEN
BRITISH private equity firm Apax
Partners has agreed to buy Israel’s
Syneron Medical, a non-surgical
aesthetic device company, for $11
per share in cash, or a total of
$397m (£317.52m), the companies
said yesterday.
The share price represents a 15
per cent premium to Syneron’s 90-
day average closing price through 31
March, and a 33 per cent premium
to its 90-day average closing price
through 10 February, the last
trading day prior to media
speculation of a transaction.
Syneron says its products have a
range of applications, like body
contouring, hair removal and
wrinkle reduction. The products are
sold under two brands, Syneron and
Candela.
“We have identified the medical
aesthetics market as a highly
attractive investment area given its
long-term growth prospects,” said
Apax’s Steven Dyson.
The agreement includes a “goshop”
period which ends on 9 May,
in which Syneron Candela will
solicit and possibly enter into
negotiations over alternative
proposals from third parties. Reuters
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10 NEWS TUESDAY 4 APRIL 2017
Watchdog mulls
rules to improve
persistent debts
REBECCA SMITH
@BexKSmith
THE FINANCIAL watchdog has called
for lenders to step in earlier when handling
customers unable to make more
than the minimum repayments on
credit card debt – and even suggests
waiving interest proportions and extra
charges of long-held debt.
The Financial Conduct Authority
(FCA) said around 3.3m people were
stuck in “persistent debt”, where they
have shelled out more in interest and
charges than they have repaid of their
borrowing over 18 months.
These customers are profitable for
the firms who do not “routinely intervene”
to help them, said the FCA.
Following a thorough study of the
market, it has set out proposals to
make lenders take steps to help customers
repay their balances more
quickly and offer greater assistance to
those who cannot. It wants firms to
prompt customers to make faster repayments
if they can afford to do so,
when a customer has been in persistent
debt for 18 months. Another measure
outlined by the FCA involved card
firms helping such customers by coming
up with a repayment plan.
At other times, they may have to reduce,
waive or cancel any interest or
charges to help progress the customers
out of debt.
The FCA said the steps will help save
customers between £3bn and £13bn by
2030.
Andrew Bailey, the FCA’s chief executive,
said: “We expect our proposals to
reduce the number of customers in
problem credit card debt, as well as
putting customers in greater control of
their borrowing.
“Persistent debt can be very expensive
– costing customers on average
around £2.50 for every £1 repaid – and
can obscure underlying financial problems.
Because these customers remain
profitable, firms have few incentives to
intervene.”
The Financial Times was sold by FTSE 100 company Pearson to Nikkei in 2015
Financial Times: Most revenue
no longer from print publishing
WILLIAM TURVILL
@wturvill
THE FINANCIAL Times yesterday
reported that print now contributes
less than half of its revenue.
The group, which has a circulation
of 184,000, including 59,000 in the
UK, according to ABC, said it reached
650,000 digital subscribers in 2016.
The FT said the EU referendum and
US election boosted its numbers.
It said: “Driven by growth in
digital subscriptions and a strong
performance from both its
conference business FT Live and its
specialist financial publishing
division, revenues from digital and
services at the FT overtook those
from print, marking another
milestone in the FT’s business
transformation.”
GEORGINA VARLEY
CITYAM.COM
Startup loans
group dishes
out £300m
SINCE its launch in 2012, the Start
Up Loans Company (SULCo) has
provided UK microbusinesses with
over £300m.
More than 11,000 new and earlystage
companies are supported
each year by the governmentbacked
programme. Over 55,000
jobs have been created and more
than 19,000 formerly unemployed
individuals have launched their
own businesses.
Small business minister Margot
James said: “Giving the UK’s small
businesses the jump-start they need
to grow and thrive is a key priority
of our industrial strategy.”
Matt Lovell and Rob Hampton,
co-founders of seafood restaurant
The Oystermen, secured the
46,400th loan that drove the total
aid provided past the £300m mark.
The Oystermen now anticipates a
300 per cent turnover growth in
the next 12 months.
The SULCo has also announced
its planned merger with the British
Business Bank. The move will help
both organisations deliver the
government’s manifesto
commitment to support 75,000
microbusinesses by 2020.
Hedge fund TCI pushes Safran for a
review of Zodiac’s $9bn valuation
Lekoil shares rise on
GE provisional deal
MAIYA KEIDAN
ACTIVIST hedge fund TCI Fund
Management yesterday called on
Safran to set up an ad-hoc
independent directors’ committee to
review the company’s valuation of
Zodiac Aerospace, according to a
letter seen by Reuters.
London-based TCI said in its letter
to the board of Safran, which is
planning a $9bn (£7.2bn) takeover of
Zodiac, that such a committee was
required by French law and under
the recommendations of the local
regulator.
The hedge fund firm said this
committee should appoint a major
international financial institution to
perform an independent fairness
opinion on Zodiac shares.
Investor TCI owns about four per
cent of Safran and is also a
shareholder of Zodiac.
In mid-March, the pressure
intensified for France-based aircraft
parts maker Safran to rethink the
proposed takeover after a Zodiac
Aerospace profit warning sent the
target’s shares tumbling.
At the time, TCI called for Safran’s
chairman to be ousted unless it
abandoned the deal.
The latest profit warning resulted
from problems at its Zodiac Seats UK
division.
Reuters
FRANCESCA WASHTELL
@fwashtell
SHARES in West Africa-focused oil
and gas explorer Lekoil closed up
almost six per cent yesterday after
the firm signed a memorandum of
understanding (MOU) with US
utilities giant General Electric.
Lekoil signed the MOU with GE
Oil & Gas, a General Electric
subsidiary, for the development of
one of its fields in Nigeria. Once
Lekoil has completed an appraisal
programme, GE Oil & Gas intends
to invest funds towards the
project’s development capital.
Lekoil expects the full field oil
development cost to total around
$400m (£319m), while subsequent
upstream gas field development
will cost around $600m.
Its shares closed up 5.95 per cent
to 24.5p last night.

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12 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
Franco Manca pizza chain aims for a
rise in profile with new Italy branch
REBECCA SMITH
@BexKSmith
UK-BASED sourdough pizza chain
Franco Manco has announced plans
to open up a restaurant in Italy.
According to the chain’s Aim-listed
owner Fulham Shore, Franco Manca
is setting up shop on the island of
Salina, north of Sicily.
The new restaurant will be
operated as a franchise and Franco
Manca will invest approximately
£100,000 alongside local and
international investors.
The restaurant started life in the
capital, opening its first store in
Brixton in 2008. It now has 33
restaurants across the UK, with its
latest in Putney opening last week.
Franco Manca was bought by The
Fulham Store, which also owns The
Real Greek, in April 2015.
In a trading update, Fulham Shore
said Franco Manca was “further
strengthening its ties with Italy by
joining its founder, Giuseppe
Mascoli, in opening a seasonal
Franco Manca pizzeria by the sea”.
Mascoli, who is from Naples, sold
his business for £27.3m and took a
five per cent stake in Fulham Shore.
Fulham Shore said it plans to
grow the number of Franco Manca
outlets to 45 by the end of the 2018
financial year.
Franco Manca opened its first restaurant in Brixton back in 2008
FTSE 350 divis to
total record high
© NEX Group plc 2017. NEX and other service e marks and logos are service marks of NEX Group plc and/or one of its group of companies. All rights reserved. Group companies of NEX Group plc are registered as applicable.
WILLIAM TURVILL
@wturvill
SHAREHOLDERS in UK-listed companies
are set for a boost in the coming
months, with dividends paid across
the FTSE 350 expected to reach a
record level.
IHS Markit has forecast sweeteners
across the 350 companies will total
£20.7bn in the second quarter of 2017,
up 25 per cent on the same period last
year.
The figure will be boosted by a
stronger dollar and a special £3bn dividend
being paid out by National Grid
as part of the sale of its gas pipes business,
valued at £14bn. The deal completed
last Friday.
Ordinary dividends are predicted to
reach £17.4bn, up nine per cent on
2016. At a constant currency rate, the
total would be £16.3bn, up 1.7 per
cent.
“Relative weakness of sterling
against the dollar is the key driver of
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higher payouts to UK investors this
quarter (33 per cent of the predicted
payments are determined in dollars,
including key payers like BP, Royal
Dutch Shell and HSBC),” the IHS report
said.
“Excluding that favourable exchange
rate tailwind, ordinary dividends
are predicted to grow by a
modest 1.7 per cent to £16.3bn.”
Royal Dutch Shell, Vodafone, HSBC
and BP had the biggest dividends after
National Grid, with the five paying
out £12.7bn between them.
Utilities, led by the Grid, accounted
for 25 per cent of the total payout,
with oil majors BP and Royal Dutch
Shell making up 22 per cent of the
total alone.
In total, IHS Markit found utilities
will pay out £5.1bn, oil and gas companies
£4.6bn and telecommunications
firms £3.5bn. Elsewhere, banks
are predicted to shell out £1.6bn and
personal and household goods companies
£1.1bn in the second quarter.
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CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
13
THECAPITALIST
25-YEAR SPREAD London betting firm
looks back at some of the highs, and lows,
since it kicked off a quarter of a century ago
Phoney phone for addicts
DOES the idea of being without your
mobile phone bring you out in a cold
sweat? Then this is the phone for you:
More Th>n has launched a new artificial
smartphone to help the 23 per
cent of Britons who believe they are
addicted to their phones, and the 12
per cent who suffer from “phone separation
anxiety”.
The so-called mobile phone surrogate
that has been designed to
replicate the exact weight and dimensions
of a standard iPhone but
it comes without any of the technical
capabilities: no phone, no camera, no
internet. In reality, it’s just a piece of
black plastic.
But why on earth is More Th>n involved
in this prosthetic phone? To encourage
the biggest addicts to put
down their phones when they are
driving. It’s dangerous, dummy.
Got A Story? Email
thecapitalist@cityam.com
QUOTE OF THE DAY
Now I know why you
drink more than the
average doctor
World First, currency experts, take their
hat off to journalists after an afternoon
spent transcribing
SPREAD-BETTING firms may be two-a-penny in the City these days, but that wasn’t
always the case – and certainly not back in 1992 when Sporting Index was founded.
The London-based company celebrates its 25-year anniversary this month, and has
revealed its biggest loss to date: Sporting ended up nearly £1m out of pocket in
December 2012, when Arsenal beat Newcastle in a 10-goal thriller. Ouch.
NEWS
Heathrow racks up
100,000 complaints
REBECCA SMITH
@BexKSmith
HEATHROW Airport received more
than 100,000 noise complaints in
2016, with 25,672 made in the last
three months of the year and half of
those submitted by 10 people.
From October to December, 10
people submitted 13,075 complaints
between them, while five people complained
more than 1,280 times in that
period. Some 759 individuals complained
once to the airport.
According to official data, the airport
received 101,025 complaints in
2016, though that was a decrease on
the 2015 total of 108,225.
The airport, which was given the
green light by government for expansion
in October, reported Richmond
had both the most complaints and the
highest number of complainants out
of any borough, with 7,967 complaints
made by 377 people. There
were 2,222 complaints from Slough,
though these came from 10 people.
Critics of the third runway have expressed
concern that expansion will
cause more complaints, with the
Heathrow Association for the Control
of Aircraft Noise (Hacan) saying the
airport should vary flight paths.
A spokesperson for Heathrow said:
“Heathrow’s plans for expansion will
ensure fewer people impacted by aircraft
noise, offer more predictable
respite than we can now, and a worldclass
noise insulation scheme.
“Heathrow has consistently reduced
the number of people impacted by aircraft
noise, by incentivising airlines to
bring their cleanest, quietest aircraft
to the airport and driving forward
changes in how they operate through
measures like steeper approaches.”
Under-pressure Dulux chief exec
‘vlogs’ to defend deal approach
WILLIAM TURVILL
@wturvill
AKZONOBEL’S under-pressure chief
executive has taken to vlogging
(video blogging) to defend his
decision not to engage with a US
takeover bidder.
Ton Buchner addressed several
issues in the Youtube post yesterday,
including explaining why AkzoNobel
has refused to meet with PPG
Industries, which has made two
unsolicited approaches for the
Dulux-making Dutch firm in recent
weeks. Activist investor Elliott
Advisors has led criticism of
AkzoNobel’s refusal to engage with
PPG, and has been backed by other
shareholders.
Buchner said in the YouTube
video: “We very clearly assessed two
proposals that we’ve received from
PPG. We’ve seen that it clearly
undervalues the company. And then
the second proposal that we
received, it did not address the key
stakeholder issues.”

14 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
Housebuilders call on government
for firm commitment to Crossrail 2
REBECCA SMITH
@BexKSmith
HOUSEBUILDERS have added to calls
for the government to firmly commit
to Crossrail 2, saying the project will
be crucial in helping address the
capital’s housing crisis.
Some 66 homebuilding and
property figures, including
representatives from Taylor Wimpey,
Berkeley, British Land and Derwent
have written to the government and
said the infrastructure project will
help unlock new homes.
In the letter, the homebuilding
and property representatives, say the
new railway will transform transport
capacity, as well as connectivity, for
underdeveloped areas of the capital
like the Upper Lea Valley. They said it
will give them the certainty to
accelerate the development of up to
200,000 new homes.
Tony Pidgley, chairman at
Berkeley, said: “Crossrail 2 is the only
scheme that can make a significant
difference to the south east’s
housing stock and the government
must not delay.”
Crossrail 2 will connect National
Rail networks in Surrey and
Hertfordshire with an underground
tunnel beneath central London
between Wimbledon and Tottenham
Hale and New Southgate.
Crossrail 2 would serve stations through the south east of England
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adviser. Tax treatment depends on your individual circumstances and
rules may change.
AJ Bell includes AJ Bell Holdings Limited and its wholly owned subsidiaries. AJ Bell Management Limited
and AJ Bell Securities Limited are authorised and regulated by the Financial Conduct Authority. All
companies are registered in England and Wales at Trafford House, Chester Road, Manchester M32 0RS
EMMA HASLETT
@emmahaslett
THE CAPITAL has fallen to 55th
place in a ranking of the 150 global
cities with the fastest house price
growth.
Knight Frank’s Global Residential
Cities index, out yesterday, ranked
London below three regional UK
cities in the final quarter of last
year.
Bristol, which came 38th in the
world, with year-on-year house price
growth of 10.1 per cent; Manchester,
at number 51, with growth of 7.9 per
cent, and Birmingham, at number
53, with growth of 7.7 per cent.
But with house price growth of 7.5
per cent, London only managed 55th
position.
It is a major fall for London, which
was ranked 36th in the third quarter
of 2016, with 9.2 per cent growth (although
admittedly that was still
below Bristol, which came in at
number 20, with 15.8 per cent
growth).
In the first three months of
2016, the capital had the 14th fastest
house price growth in the
world, at 15.2 per cent.
Meanwhile, Chinese cities took up
nine of the top 10 places in the final
three months of the year, with
Wellington, in New Zealand, taking
10th place.
It wasn’t all good news for homeowners
in UK cities: both Edinburgh
and Aberdeen were listed as having
falling house prices, with prices
dropping 0.6 per cent and 9.8 per
cent respectively.
Last week figures suggested falling
prices in the capital had caused
housebuilding to grind to a halt,
with construction falling 75 per
cent in the final quarter of 2016.
In the fourth quarter of 2016, construction
started on 1,270 housing
units in the centre of the city, a drop
of 75 per cent as compared to the
same quarter the year before, according
to a report from JLL.
Research published recently
showed UK house price growth had
nearly halved in a year, with prices
in the UK rising 5.1 per cent in the
three months to February, the lowest
annual rate since July 2013.
London second best city in
Europe for hotel investment
GEORGINA VARLEY
LONDON comes second in Europe
according to an analysis of the hotel
investment climate of 20 European
cities by Colliers International.
Pipped to the post by Paris’ lower
development costs, London’s ranking
in the Hotel Investment
Attractiveness Index is due to its
high demand growth, strong hotel
performance, high investment
returns and market depth from 2012
to 2016.
London witnessed more than 80
per cent occupancy rate in this
period.
Dirk Bakker, head of EMEA Hotels,
Colliers International said:
“According to our latest data, London
scored highly in terms of valuation
exit yields and hotel investment
volume between 2007 and 2016.
London also saw over 15m
international tourists visit the city in
2015 and witnessed average hotel
occupancy levels of over 77 per cent
from 2012 to 2016.”

CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
15
Vitol’s profit up
25pc on trading
volume increase
JULIA PAYNE
THE WORLD’S largest independent
energy trader Vitol’s profit rose 25
percent last year, the Financial Times
reported yesterday, citing people
familiar with the matter.
The Swiss-based company had a net
income of $2bn (£1.6bn) in 2016, up
from just over $1.6bn in 2015.
The 2016 net income included
$500m of gains from asset sales and a
$100m tax bill, the newspaper
reported.
The results are unaudited and subject
to revision, according to the Financial
Times.
Vitol said last month that annual
traded volumes rose 16 per cent in
2016 to a new record. Crude represented
48 percent of its traded portfolio
and it sold more gasoline and
diesel in markets such as the US, Australia
and expanded further its
presence in key African markets.
The biggest jump in percentage
terms came from gasoline, up 44 per
cent and gasoil, up 26 per cent.
Vitol’s turnover, however, fell to
$152bn in 2016 from $168bn in 2015
as a result of lower energy prices.
On Friday the company said:
“(Global) demand growth of 1.4m barrels
a day exceeded our expectations
slightly, but the continued efficiency
gains within the exploration and extraction
sector ensured the market
was well supplied and the impact on
price constrained.”
The firm also said oil prices in 2016
were no longer in the steep contango
market structure that boosted results
in 2015.
Contango is a market structure in
which the price for delivery of a product
in the future is higher than the
immediate price.
Vitol said growth in the supply of liquefied
petroleum gas (LPG) from US
shale was creating new opportunities.
“Our 2016 volumes increased by 131
per cent and, longer term, we anticipate
that the ample supply of LPG will
facilitate the switch away from solid
fuels for cooking in economies across
Africa and Asia,” it said.
“In addition, we are working with
power plants and light industry in
Africa to help them move from burning
fuel oil and diesel to LPG”. Reuters
Back-billing rules set to protect
energy customers from late charges
COURTNEY GOLDSMITH
@courtneynoelg
NEW PROTECTIONS outlined by
Ofgem will block suppliers from backbilling
customers on energy used
more than 12 months ago.
The industry regulator said backbills,
which typically occur when
suppliers estimate bills before taking
a meter reading, can result in large
Brexit
stage left
“catch-up” bills for customers.
Suppliers signed a voluntary
commitment in 2007 not to back-bill
British customers for energy used
more than a year ago, but case
studies from Citizens Advice
suggested the rule was not being
applied consistently.
“Shock gas and electricity bills can
throw people’s finances into
disarray,” said Gillian Guy, chief
executive of Citizens Advice. “We’ve
long been calling on the regulator to
introduce a mandatory time limit
for back-bills instead of relying on
voluntary action – which suppliers
have refused to apply in some cases.”
Ofgem expects the new rule to go
into effect this winter, and it is also
considering whether to introduce a
shorter time limit once smart meters
are rolled out.
AFRICAN THRONE Last minute touches
at Buckingham Palace for gifts exhibition
A BEADED Yoruba throne from Nigeria, presented to the Queen in 1956, was one of
the items put on display yesterday for a preview of the Royal Gifts Exhibition. Visitors
will see over 250 official presents given to the monarch during her 65-year reign.
Qatar lifts ban on mega gas field
development after 12-year freeze
TOM FINN
QATAR has lifted a self-imposed ban
on development of the world's biggest
natural gas field, the chief executive
of Qatar Petroleum said yesterday, as
the world’s top LNG exporter looks to
see off an expected rise in
competition.
Qatar made a moratorium in 2005
on the development of the North
Field, which it shares with Iran, to
give it time to study the impact on
the reservoir from a rise in output.
The vast offshore gas field, which
Doha calls the North Field and Iran
calls South Pars, accounts for nearly
all of Qatar’s gas production and
around 60 percent of its export
revenue.
“We have completed most of our
projects and now is a good time to lift
the moratorium,” QP boss Saad al-
Kaabi said yesterday.
“For oil there are people who see
peak demand in 2030, others in 2042,
but for gas demand is always
growing.”
Reuters
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16 NEWS TUESDAY 4 APRIL 2017
INTERVIEW
FOUR years ago niche cycling
sportswear firm Rapha beat
German behemoth Adidas to
supply the kit to the world’s
best known cycling club,
Team Sky. At the time, Simon Mottram,
its chief executive and cofounder,
felt this was the just the
platform the retailer needed to take
things up a gear.
“We sold a lot of stuff, which made
Team Sky some royalties and it was
good for us,” Mottram tells City A.M.
However, last year Rapha parted
company with the four times Tour de
France champions.
Mottram says: “The connection with
cyclists and engagement and getting
fans more connected with the sport
never worked quite as well as we
wanted.
“That was, not a black mark, but disappointing.”
These days Mottram sees his company
doing well in what is often seen
as a broken sport.
Rapha’s story dates back to 2004.
Mottram, who originally trained at
PwC before a 15-year career in marketing,
went at full pelt to get Rapha off
the ground and attract investment.
And with capital secured, the brand
was launched.
In its first year Rapha generated
£300,000 of sales and quickly established
a loyal and growing customer
base.
The firm now turns over £63m.
PEDDLING MULTIPLE BRANDS
After initially peddling its wares
online, Rapha has expanded into a
multi-channel organisation.
Aside from clothing, the firm
creates other lifestyle brands, travel
holidays and boasts a 10,000 membership
of its £135-a-year subscription
model.
And the cycling company has gone
beyond e-commerce.
Mottram says: “I hesitate to say it but
we’ve gone from clicks to bricks,
which is a horrible expression.”
With 15 stores open already, rising
to 20 by the end of 2017, the firm is
growing in a different way to traditional
retailers.
He says: “It’s much easier to
start from the internet side
because you don’t have
hundreds of legacy leases
that you have to get rid of
or make them work.”
This week, Mottram
will preach his cycling
company’s philosophy to
over 1,400 of the great
and the good from the
global retail industry at
New success cycle? Why
Rapha split from Team Sky
Pro-cycling may be ‘broken’. But cycling firm Rapha’s boss
Simon Mottram tells Oliver Gill why it’s not all that bad
Simon
Mottram,
Rapha’s CEO
and co-founder
the World Retail Congress in Dubai.
BEING ‘CHEAP’ VERSUS ‘GOOD’
Rapha’s slightly queasy mantra is
about “putting the customer at the
centre of everything we do”.
Mottram explains how this works
for him: “For us it’s about building relationships
over time.
“Encouraging that person to come
back. Helping them to fall in love with
the product through contact, before
they place the transaction,” he adds.
“A jersey isn’t just a piece of cloth, a
piece of fabric sewn together with
some zips; it represents a massive day
on the bike.”
Rapha’s high-end products come at
a price though.
Its lower end shorts and jerseys
start at £75, with its
more professional
shorts setting you
back £265.
Mottram says:
“Somebody said to me
the other day: ‘You’ve either
got to be very cheap
or very good’. And we’re
not going to be very
cheap.”
Cycling and the sport’s
history are front and
centre as we take a tour
round Rapha’s warehouse
headquarters.
For example, the entire
downstairs is home to a
mammoth bike park with
a full-time mechanic on
CITYAM.COM
hand. Staff training programmes have
racing references; the firm’s emerging
leader initiative is called the
White Jersey programme, after the
Tour de France jersey for the fastest
young rider.
“It’s like drip, drip indoctrination.
Everybody has a race number as their
employee number,” says Mottram.
“I’m number one. And when somebody
leaves their number goes with
them.
“Staff have to come to be prepared to
get involved. To get seduced. To fall in
love with it. Otherwise, why be here?
If you’re never going to be a cyclist I
honestly don’t want you to work for
me.”
WHY CYCLING GETS BAD PRESS
From allegations of doping to
concerns over athlete welfare, cycling
has been plagued by a stream of negative
headlines ever since Rapha
launched.
“It’s been crisis after crisis after crisis.
And yet we’ve seen our sales grow
dramatically. And through recessions
as well. We’re doing incredibly well
with a broken sport. Sort out the sport
and we can do even better.”
If you’re never
going to be a cyclist
I don’t want you to
work for me
Among experienced cycling aficionados
some scoff at those new to
the sport who deck themselves out in
full pro team outfits; the kind of kit
Rapha was making until last year for
Team Sky.
Mottram is not a scoffer though and
counters: “The proportion of team kit
wearers is less and less.”
Perhaps this explains why Rapha
decided to end its relationship with
Team Sky: the pro-riders on the stylish
flatscreens around Rapha’s office are
no longer who its customers want to
admire.
“It’s another sign that pro
racing is a little bit broken,”
he says. “We
don’t even
want to
wear the
team kit.
That’s not
good is it?”
Chris Froome of
Team Sky

CITYAM.COM
TUESDAY 4 APRIL 2017
NEWS
17
Experian flogs
most of its email
marketing arm
RAHUL B
0.49%
CREDIT data company
Experian said it would sell
a 75 per cent stake in its
email marketing business to private
equity firm Vector Capital, to focus
on its core businesses.
The company said the enterprise
value of the email/cross-channel marketing
business (CCM) business is
$400m (£319.13m) on a cash and
debt-free basis.
Experian would retain the remaining
25 per cent stake in the business,
the company said.
The deal is expected to complete
during the first half of the financial
year ending 31 March 2018, the FTSE
100-listed information services company
said.
Experian had started the process of
divesting the email/cross-channel
marketing business, the largest business
line within its Marketing Services
division, last November.
The group’s share price closed
down 0.49 per cent yesterday to
1,620p.
In March, the credit bureau announced
it had teamed up with technology
firm Finicity to launch a new
product aimed at speeding up the
consumer lending process in the US
making it more digital.
By using Finicity’s technology,
which aggregates data on accounts
from thousands of banks and financial
institutions, Experian’s new service
will give lenders real-time access
to information on a customer’s assets,
income and ability to pay, the
companies said.
This means consumers will be able
to apply for mortgages without having
to provide reams of paper-based
verification documents during the
underwriting process, the companies
said. Instead they will only need to
authorize lenders to view their account
data, the companies said.
They said the new service could reduce
the underwriting process from
as many as 70 days to up to 10 days.
The launch reflects the growing
pressure faced by banks and other
brick-and-mortar lenders to offer better
digital services to their customers.
Banks have been facing more competition
from a new cohort of online
lenders which are able to offer loans
online in days or minutes by automating
much of the process.
Some banks have responded by either
partnering with digital lenders
or launching their own online lending
services.
Experian and Finicity said their
product will also help consumers
with little or no credit history by enabling
lenders to access alternative
data which can be used to demonstrate
whether they would be able to
repay a loan.
Reuters
Bitcoin adoption has been hampered by fraud and money-laundering fears
Bitcoin price jumps as Japanese
open way to currency adoption
JASPER JOLLY
@jjpjolly
BITCOIN prices have surged following
Japan’s decision to allow the
cryptocurrency as a legal method of
payment, marking a major step in its
adoption.
The price of a bitcoin rose above
$1,140 (£909) yesterday according to
Coindesk’s price index. On 24 March
one bitcoin was trading below $1,000.
Japan’s new law will mean bitcoin
exchanges have to comply with antimoney-laundering
regulations. The
cryptocurrency was drawn to
Japanese regulators’ attention by the
spectacular collapse of the Tokyobased
Mt Gox exchange in early 2014.
The push to institutionalise bitcoin
had been dealt a blow in March by
the failure of a new exchange-traded
fund (ETF) tracking the currency to
gain regulatory approval from the US
Securities and Exchange Commission
(SEC).
The SEC had concerns over the lack
of regulatory oversight and fraud.
Yet the move by Japan recognises
bitcoin as a valid part of global
financial infrastructure, setting an
example which other governments
will watch closely.
Pavel Matveev, co-founder at bitcoin
platform Wirex, said: “Japan has fired
a starting pistol in terms of
cryptocurrency adoption.”
Former Npower
boss joins UK
blockchain firm
LYNSEY BARBER
@lynseybarber
A BLOCKCHAIN startup hoping to
bring greater efficiency and
transparency to the energy sector
has hired a former top energy boss.
Ex-Npower chief executive Paul
Massara will join the startup as a
director and has also ploughed an
undisclosed amount into the yearold
firm. It is developing blockchain
technology to make the systems
underpinning energy more resilient,
efficient and flexible.
“It is clear that blockchain will
disrupt many markets including the
energy market and having scanned
the market, it was clear that
Electron will be a major player,” said
Massara, who is chief exec of North
Star Solar, a solar storage firm.
“He will bring invaluable industry
and business experience to the
company,” said Electron chief
executive Paul Ellis. “This is also a
testament to the growing
recognition within the energy
industry of the opportunity
afforded by blockchain to speed
innovation and cut costs.”
Massara is just the latest top boss
to take their skills to a startup.
Former Barclays boss Anthony
Jenkins joined bitcoin wallet startup
Blockchain and also set up his own
fintech startup, 10x Future
Technologies.
And blockchain startup Setl
boasts former Barclays chair Sir
David Walker, former deputy
governor of the Bank of England
Rachel Lomax and former Ofcom
boss Ed Richards among its
number.
MAKINGMAGGIE’S
IN PARTNERSHIP WITH
Making the boat go
faster for Maggie’s
Olympic rower and coach donate book
profits to help people living with cancer
In 1998, consistently failing to medal or
even make the final of major regattas, the
GB Men’s Rowing Eight decided to
fundamentally change the way they
worked. Their focus became purely about
performance, the results they hoped would
follow. At the Sydney Olympics in 2000 they
achieved their dream and won gold.
The book ‘Will It Make the Boat Go Faster?
Olympic-Winning Strategies for Everyday
Success’ tells the remarkable story of their
success, sharing practical tips for using the
self-same strategies to reach goals in both
your business and personal life. When
Executive Coach Harriet Beveridge and crew
member Ben Hunt-Davis wrote the book,
they committed to donating 10% of profits
to Maggie’s Cancer Centres.
“Maggie’s is an astounding charity” says
Harriet. “A very close friend of mine has
been living with cancer for over ten years,
and Maggie’s has been there for her and her
family every step of the way. When you are
constantly having to visit hospital to
undergo procedures and having to deal with
fear and uncertainty which goes with that -
Maggie’s provides a welcoming haven of
peace, understanding and warmth.”
Living with cancer is something very close
to both authors. Ben’s Olympic rowing
Coach, Harry Mahon, was diagnosed with
cancer at the same time as he coached the
crew towards victory.
Maggie’s has been
there for her and
her family every
step of the way
Ben Hunt-Davies
and Harriet
Beveridge visit
the West London
Maggie’s Centre
“Harry was an inspiration” says Ben.
“Through all the trials and tribulations we
went through as a crew, Harry was a
steadying hand, reassuring and guiding us
through difficult times. It was really
important that in telling our story, we
recognised the role he played and helped
others who are living with cancer to get the
reassurance and support which they need.”
Will It Make The Boat Go Faster? are a
performance consultancy that work with
leaders, teams and individuals to create
their own crazy goals and then achieve
them. Based in Hammersmith, almost next
door to the Maggie’s West London Centre,
they work with organisations across the
world to inspire and drive an improvement
in performance and team collaboration.
Ali Orr, Partnerships Manager at Maggie’s,
said “We are really excited to be working
with Will It Make The Boat Go Faster? – the
book is truly inspiring and motivational, and
Ben and Harriet are great ambassadors for
the charity. Their support is not only helping
to raise money to support people through
our evidence-based programme who have
been living with cancer across London, it is
also helping to raise awareness for the work
we do throughout the UK and the world.”
To find out more about the book, visit:
www.willitmaketheboatgofaster.com
JOIN THE CAMPAIGN TODAY
GO TO
MAGGIESCENTRES.ORG/CITYAM

18 NEWS TUESDAY 4 APRIL 2017
CITYAM.COM
Cut red tape and invest in research
to boost growth says, IMF’s Lagarde
CHANNEL HOPPERS City workers at AIG
row to France for charity in a Cornish gig
JASPER JOLLY
@jjpjolly
THE INFLUENTIAL head of the
International Monetary Fund (IMF)
has called for governments to slash
red tape in a bid to unleash
entrepreneurs and stave off the
threat of populism.
Christine Lagarde, the IMF’s
managing director, said: “All
governments should do more to
unleash entrepreneurial energy.”
She added: “They can achieve this
by removing unnecessary barriers to
competition, cutting red tape,
investing more in education, and
providing tax incentives for research
and development.”
Weak productivity growth in the
next decade could “undermine the
rise in global living standards” and
lead to populist disruptions, Lagarde
said in the speech delivered at the
American Enterprise Institute, a
conservative Washington-based think
tank.
GDP in advanced economies would
be five per cent higher if total factor
productivity had followed its prefinancial
crisis trend, she said.
Meanwhile, a 40 per cent increase
in private research and development
spending would increase GDP by five
per cent over the long term,
according to an IMF analysis.
EMPLOYEES from insurance giant AIG have rowed their way their across the Channel
in a wooden gig to raise money for charity Row2Recovery. The crews were trained by
the new London Cornish Pilot Gig Club, which is bringing traditional Cornish rowing
to the capital for the first time, with bases in the Docks and Richmond.
Architect of VW
cuts his ties with
major share sale
ANDREAS CREMER
FORMER Volkswagen chairman Ferdinand
Piech has agreed to sell a major
part of his stake in the firm that controls
Europe’s biggest car maker, reducing
his links with Volkswagen after
more than two decades of undisputed
rule.
Volkswagen’s (VW) ruling Porsche
and Piech families have agreed to buy
a large part of the 14.7 per cent stake
Piech holds in Porsche Automobil
Holding which in turn owns 52.2 per
cent of voting shares in VW, exercising
their right of first refusal on the
shares, Porsche SE said yesterday.
It did not say exactly how much of
the stake the families would buy and
gave no details on the price. Piech’s
total stake in Porsche SE is worth about
€1.1bn (£933m) at current market
prices.
The withdrawal from Porsche SE of
Piech, who turns 80 on April 17, had
been expected after the company said
last month he was in talks about selling
his holding.
It marks an end to the influence of
one of the last towering figures in the
auto industry, who has had a rocky relationship
with VW since he was
ousted as chairman in 2015, months
before the company was engulfed in an
emissions test cheating scandal.
An industrial scion and engineer,
Piech transformed VW from a regional
car maker into a global powerhouse
which during his reign bought the luxury
Bugatti, Bentley and Lamborghini
brands and integrated the mass-market
Skoda and Seat businesses.
The grandson of Ferdinand Porsche,
founder of the sports car maker that
developed the classic VW Beetle under
a 1934 contract with the Nazis, Piech
led VW as chief executive from 1993,
and later as chairman.
But since quitting as chairman in
April 2015 he has become a recluse
and unwilling to defend the empire
he helped build.
Reuters
British satellite firm brings fast
broadband to rural Norway
TRACEY BOLES
SATELLITE Solutions Worldwide
(SSW), the Aim-listed
communications company
specialising in rural and “last-mile”
broadband, has won a £500,000
Norwegian government contract to
build a new fixed wireless network in
the county of Sor-Trondelag.
The network, to be built over the
next 15 months, will deliver
broadband up to 75mb and will be
exclusively operated and maintained
by SSW for the 10-year contract
period.
Andrew Walwyn, CEO at SSW said:
“We are delighted to have won this
contract to use our state-of-the-art
fixed wireless network technology to
deliver broadband speeds of up to
75mb to homes around the city of
Trondheim. Our solution will
connect these households to uberfast
broadband speeds for the first
time, despite their distance from a
major telephone exchange and the
challenging topography of the area.”

CITYAM.COM
CITY TALK PARTNER CONTENT
Saving for a £1m
Isa: How the sums
have changed
TUESDAY 4 APRIL 2017
NEWS
Firms hit by rise in staff turnover as
workers get bored with their jobs
SHRUTI TRIPATHI CHOPRA
@shrutitripathi6
MORE than a third (36 per cent) of HR
directors have seen an increase in
staff turnover in the last three years, a
study by Robert Half UK found.
Boredom and frustrations with
their current role or company (35 per
cent), poor work-life balance (31 per
cent) and stagnant career prospects
(30 per cent) were the key reasons
why employees chose to move on.
Firms are trying different methods
to reduce employee turnover
including flexible working options
(63 per cent) and competitive salary
packages (45 per cent).
Phil Sheridan, senior managing
director at Robert Half UK, said: “UK
businesses are beginning to realise
that they need to prioritise the
implementation of effective retention
strategies as their current efforts have
19
been unsuccessful in addressing the
underlying causes of voluntary staff
turnover. At a time when the labour
market is very competitive and
highly-skilled employees are in short
supply, organisations need to ensure
they look after their staff.
“With the productivity agenda a
high priority for business leaders,
considering employee happiness and
well-being will promote loyalty,”
Sheridan added.
In theory, your Isas could grow
to £1m four years quicker with
the new higher allowance
SCHRODERS TALK
(Source: Getty)
Investment writer Ben Arnold highlights
the speed at which investment Isas
can grow - even with modest contributions
o
NEW ISA ALLOWANCE BOOSTS INVESTMENT SIZE
3m
2.5m
2m
£20,000 ISA ALLOWANCE
£15,240 ISA ALLOWANCE
Source: Schroders and Datastream. For illustrative purposes only
£2.6m IN 35 YEARS
£1.98m IN 35 YEARS
1.5m
1m
0.5m
British savers have grown used to
getting an annual increase in the
amount they can tuck away in a taxefficient
Isa. But the increase this year is far
bigger than usual. In the new tax year,
which starts on Thursday, the allowance
will increase from £15,240 to £20,000.
This changes the sums for those in a
position to use the maximum allowance
each year.
If you made full use of the new £20,000
allowance each year and your investments
enjoyed the same returns of recent
decades, your Isa pot could reach £1m in 23
years, four years quicker than with the old
allowance.
Past performance does not offer a guide
to future returns, but these calculations
offer food for thought.
The chart above shows how using the
additional £4,760 ramps up the size of your
investment considerably quicker.
To make the calculation, we applied an
annual return of 8.7 per cent, because this
has been the average “total return” for the
FTSE All Share index since 1983. Inflation of
2 per cent was included, which is the Bank
of England’s target rate.
Total return includes both the movement
in share prices and income paid in
dividends, which is reinvested. The reason
equity investments grow faster than you
might expect is because of the power of
compounding. This is the effect of earning
“interest on interest”.
WHAT IF I INVESTED SMALLER
AMOUNTS?
Investing the full Isa allowance each year
will be out of reach for many. But smaller
monthly contributions can still build up
remarkably fast for those who can invest
over the very long term.
Monthly investments of £250 started by
an investor at age 25 and maintained until
to retirement at 65 could create a pot of
£1m WITHIN 23 YEARS
0
0 yrs 5 10 15 20 25 30 35 yrs
Your Isa pot could
reach £1m in 23 years,
four years quicker than
with the old allowance
£571,346, when only £120,000 was invested,
based on the same assumptions as above.
But start at 55 and the £36,000 saved over a
decade would grow to £42,110.
James Rainbow, co-head of UK
intermediary business at Schroders, said:
“When Isas were launched in 1999 with a
£7,000 limit, it was unclear whether they
would be accepted. Eighteen years on, their
success has beaten all expectations. In the
last tax year alone, nearly 13m people
subscribed to an Isa.
“The appeal is understandable, given the
impressive returns stock market investing
has offered. Nothing’s guaranteed with
investing but our calculations show how
quickly your money could grow. It makes
sense to protect those gains from the
taxman.”
£ Please remember, past performance is
not a guide to future performance and may
not be repeated. The value of investments
and the income from them may go down as
well as up and you may not get back the
amounts originally invested.
READ MORE ONLINE
For this article and others from
Schroders go to:
cityam.com/schroders
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INSIDE THE WORLD’S
MOST BEAUTIFUL BOOKS
THE BEST NEW WATCHES
FROM BASELWORLD 2017
RETRACING FRIDA KAHLO’S
ARTISTIC STEPS IN MEXICO
THE MCLAREN 570GT
ISSUE 42 | APRIL 2017
Rob Byrdon interview: The star of
The Trip talks about the thinking
man’s favourite comedy.
Baselworld 2017 special: All you need to
know about the world’s biggest watch fair.
arts
iCloud and Sunny Side Up,
both by Valentina Loffredo
Making
the real
absurd
Photographer Valentina
Loffredo’s surreal
graphical images make
us question what’s “real”
Words: Steve Dinneen
Platforms such as Instagram, once derided
as places for tweens and millenials
to post selfies, or hipsters to
show off whatever they had for lunch,
are now an established part of the art
world. The Saatchi Gallery’s current exhibition,
Selfie to Self-Expression, explores
the importance of self-representation throughout
art history, from Rembrandt through to Benedict Cumberbatch.
The exhibition, of course, came with a hashtag
encouraging artists both professional and amateur to
post their own selfies on social media.
This may, at first glance, seem like slightly gimmicky
promotion – and, you know, it is – but it plays into a
wider trend: using social media to scout for new talent.
It’s on Instagram that Italian-born, Hong Kong-based
photographer Valentina Loffredo was spotted by an art
dealer. Her minimalist, highly graphical photographs
show snippets of real life against a backdrop of clean
lines and block colours. Intriguing details often add an
element of the uncanny or surreal into her work, taking
real life and flattening it, making it absurd, asking us to
question how we define “real” in the first place.
“My work is a celebration of possibilities,” says Loffredo.
“I believe in looking at life from different and
ever-changing perspectives. I am intrigued by reality taking
different shapes and by the opportunity to see and
stage new ones. We have the opportunity, through photography,
to use reality to question reality itself. I am inspired
by details out of place, by improbable interactions
and surreal allusions that turn a familiar scene into a
new, uplifting one.”
Loffredo, a former jewellery designer, showed her
work in the UK for the first time at last week’s The Other
Art Fair, and she will be involved in the upcoming Venice
Art Biennale before staging her first solo show in Milan
in the autumn.
Go to thatsval.com to see more of her work
06
07
feature
feature
As told to Melissa York.
Photos: Greg Sigston for City A.M.
Pictured: Bar manager Peter
Merheb making The Palatial
at Coq d’Argent
HOW TO MIX:
THE
PALATIAL
Coq d’Argent’s recipe for
something sweet this spring
Take a Trip with
Rob Brydon
The Welsh star on embracing middle-age
Highly anticipating the start of
spring, many of London’s rooftop
bars will finally be throwing their
doors open over the next few
weeks. Chief among them is the
rooftop terrace at Coq d’Argent,
the first and most famous sky-high
drinking hotspot in the City of London.
Attached to the classic French restaurant of the same
name, the terrace has hardly changed in the two decades
since it made its debut on the Square Mile scene, and it’s
still a firm favourite among fans of the long, boozy
lunch. Being French, the wine list is as extensive as it is
expensive and, with over 70 whiskies on offer, it was recently
voted one of the top ten whisky bars in London.
Less well-known is its array of in-house cocktails, including
The Palatial. With its zesty citrus overtones and floral
garnish, it’s the perfect aperitif to sip on the balcony
on a fresh spring evening.
Bar manager Peter Merheb says the team were casting
around for a name that was an accurate description of
the interiors at Coq d’Argent before alighting on the
name. The key ingredient is Sauvelle vodka, which is
“the best vodka on the market now,” according to Merheb.
Produced in Cognac, it’s kept unfiltered and put
through an oak smoothing process. Merheb says it’s “a
raw spirit with a rich, incredibly smooth character.”
Getting the infusion right is the key to perfecting this
sweet crowd-pleaser at home. The Coq d’Argent team
adds 300g of cut, dried apricot with two teaspoons of
Earl Grey tea into a bottle, then leave it to infuse for 48
hours before double straining it. It’s a delicate balancing
act, but when the sun’s shining, there’s nothing quite
so grand.
The Palatial is £11, available from the
bar at Coq d’Argent, 1 Poultry, EC2R 8EJ
Serves 1
Ingredients:
• 50ml Sauvelle vodka infused
with apricot & Earl Grey tea
• 25ml peach purée
• 20ml lemon juice
• 15ml sugar syrup
• 20ml egg white
Glassware: Coupette
Method: Add all ingredients, shake
well and double strain in a coupette.
Garnish with vanilla powder, Earl
Grey tea and two edible flowers
42
43
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ISSUE 11 | MARCH 2017
LIVING
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ISSUE 11 | FEBRUARY 2017
INSIDE: THE WALLPAPER
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BUYING PROPERTY
IN NEW YORK CITY
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CITYAM.COM
TUESDAY 4 APRIL 2017
MARKETS
21
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
April showers the
FTSE 100 with red
as Next rally stops
APRIL started as the cruellest
month for the FTSE 100 as it
weakened further despite a
steep fall in the value of the
pound. Sterling lost more
than half of one per cent against the
US dollar during the trading day.
This usually boosts FTSE-listed
multinationals with big dollar
earnings, but there was no such luck
for London’s main market yesterday,
which slumped to a 0.55 per cent loss,
closing at 7,282.69 points.
Despite the widespread selling
mode, drama was fairly limited on
the FTSE 100 (mundanity
Imagination Technologies on the allshare
index must be envying). Next
was the biggest faller, with the
retailer’s shares losing 3.56 per cent
thanks to a broker downgrade from
Exane BNP Paribas.
Meanwhile, ITV gave up a large
part of gains from the tail end of last
week. An unusual regulatory filing
late on Friday from Goldman Sachs
had investors excited the US bank was
working on a takeover for media
giant Liberty Global. With no
announcement forthcoming shares
dipped back down by 2.56 per cent.
FTSE
7,380
7,360
7,340
7,320
7,300
7,280
3 Apr
7,282.69
28 Mar 29 Mar 30 Mar 31 Mar
3 Apr
CITY MOVES WHO’S SWITCHING JOBS
WATKIN JONES
156
154
152
150
148
146
144
142
P
28 Mar
154
3 Apr
29 Mar 30 Mar
31 Mar 3 Apr
Peel Hunt certainly digs student accommodation. Analysts have a “buy” rating on
student property developer Watkin Jones, which yesterday reported a “strong halfyear
update”, confirming all 2017 projects have been sold. More than half of 2018
beds have also been forward sold, with the remainder under offer or in negotiation.
The analysts increased the company’s target price from 150p to 185p.
WPP
1,780
1,760
1,740
1,720
1,700
P
28 Mar
3 Apr
1,732
29 Mar 30 Mar
31 Mar 3 Apr
Advertising giant WPP has a “buy” rating from analysts at Liberum, who were
encouraged by a recent roadshow hosted by executives in the US. They believe fears
over structural threats to agencies have been overdone and played down the recent
account losses of VW and AT&T. They said that WPP can make up for 2017 account
losses in 2018 and that its “operational capabilities remain solid”.
Brakes applied
for car makers
DISAPPOINTING March car sales
figures pushed Wall Street slightly
lower yesterday as investors
questioned whether the Trump
administration would deliver on its
pro-business economic stimulus.
General Motors (GM) was one of the
biggest drags on the S&P 500 after car
sales figures for last month came in
below market expectations, an early
signal America’s long car sales boom
may finally be losing steam.
Shares in GM finished down 3.4 per
cent while O’Reilly Automotive, a car
parts retailer, fell four per cent. Fiat
Chrysler sank 4.8 per cent and Ford
fell 1.7 per cent.
The major indexes pared losses.
They fell sharply in morning trade after
some US states accused President
Donald Trump’s administration of
illegally suspending energy efficiency
standards.
The Dow Jones Industrial Average
fell 11.38 points, or 0.06 per cent, to
20,651.84. The S&P 500 lost 0.16 per
cent, to 2,358.92, while the more
technology-focused Nasdaq
Composite dropped 0.29 per cent.
CBRE
CBRE has appointed
international office market
expert Gavin Morgan to lead
and enhance the provision of
investor leasing services in
CBRE’s Europe, Middle East
and Africa (EMEA) operations.
Gavin will be based in London
with responsibility for leading
pan-EMEA office investor
leasing. He will work with
CBRE experts across EMEA and other global regions, to
leverage the company’s extensive network and market
knowledge to create opportunities and enhance
service delivery for clients across the region. Gavin
joins CBRE after 16 years with JLL where he spent the
majority of his career in Asia Pacific before relocating to
JLL’s capital markets team in New York in 2015. As COO
and head of leasing: Hong Kong, Macau and Taiwan,
he was one the region’s most highly regarded leasing
experts and advised many leading local Asia Pacific
developers and prestigious international occupiers.
INVESTEC
Investec Specialist Bank has appointed Conor
McMahon to its corporate and acquisition finance
team, led by Callum Bell, head of corporate and
acquisition finance at Investec. Based in the team’s
London office, Conor will play a key role in the
origination and execution of leveraged finance and
private debt solutions for clients across Europe. In his
previous role as vice-president in the Bank of Ireland’s
global acquisition finance team, Conor worked on a
range of debt financing deals ranging from £7m to
£200m Ebitda across leverage buy out transactions,
acquisitions, refinancings, dividend recapitalisations
and public-to-privates.
LAVANDA
Rightmove founder and ex-Countrywide chief
executive Harry Hill has joined property tech
residential lettings startup Lavanda as chairman. Harry
will join the team to help shape the company’s future
strategy and rapid growth.
Harry is an industry pioneer who shares the belief in
Lavanda’s disruptive potential, which uses the home
sharing economy to monetise otherwise void periods
in a property’s life-cycle.
CUNDALL
Multidisciplinary engineering consultancy Cundall has
appointed Darren Wood as principal security
consultant to lead its new security specialism. With
over 15 years’ experience in both contracting and
consulting businesses within the security industry,
Darren has worked on prestigious schemes such as 22
Bishopsgate in London, and across the UK. He will
bring Cundall valuable knowledge and expertise in
developing its new security specialism.
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
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22 OPINION TUESDAY 4 APRIL 2017
CITYAM.COM
FORUM
EDITED BY TOM WELSH
Britain should be preparing for
Article 50 talks to end in failure
THE STARTING gun has
been fired and the two
year Article 50 process for
exiting the European
Union has begun. Last
week, both Theresa May and EU leaders
were remarkably clear about
their ambitions, at the same time as
indicating their priorities for the
talks. For the EU, the primary concerns
are its own finances and the
political sustainability of “the project”.
For the UK, it’s securing a bilateral
trade deal.
These are both understandable. In
2015, Britain was the third largest
gross contributor to the EU budget,
accounting for over 15 per cent of its
funds. As a major net contributor,
Britain’s exit will leave a significant
hole in the EU’s finances – one that
will have to be made up for by larger
contributions from elsewhere or substantial
cuts to EU programmes.
Other countries such as Denmark
and Sweden have already expressed
their unwillingness to increase
demands on their taxpayers.
This, combined with the fact that
the EU does not want to make leaving
seem an attractive proposition,
explains why its leaders are seeking
to divide the so-called “divorce settlement”
from talks about any future
trading relationship.
For EU leaders, the importance of
this separation is that it changes the
power dynamic: it wants to pressure
Britain into agreeing to make substantial
payments for covering longterm
liabilities and the short-term
budget shortfall. Knowing that
Britain prioritises a trade deal, and
that the two-year window presents a
tight constraint on there being such
WITH Article 50 signed,
sealed and delivered,
we are heading into a
new chapter of uncertainty.
And this is the
reason why, after 20 years building
my career as an entrepreneur and
investor in Hong Kong and Asia, I am
uprooting and returning to London.
I have seen first-hand how Hong
Kong has evolved since sovereignty
was handed back to China from the
UK in 1997. The UK is on a similar
path today.
London and Hong Kong are
comparable in many ways, not least
because both are international
financial services hubs, attractive
markets for entrepreneurs and big
brands, and desirable places for
great talent to live.
What I witnessed two decades ago
was fear of change. Hong Kong was
so entrenched in the UK ecosystem,
the handover threw the region into
uncertainty. Many scaled back
investment, property prices came
under pressure, and many more
emigrated believing it was the
beginning of the end of Hong Kong.
Inbound migration also came under
a smooth transition, the hope is that
Britain will quickly cede to EU
demands on the budget to get onto
those issues perceived to matter
more.
Counter logic explains why the UK
wants parallel talks about exit and
the future relationship. For the
British government, avoiding any
short-to-medium-term economic disruption
is paramount. Britain wants
to use the implicit threat of a cliffedge
on budget payments and
removal of security cooperation as a
reason to bring the EU to the subject
of a trade deal quickly. Recognising
that, for many EU leaders, holding
together the remainder of the EU
appears more important than the
continuation of a liberal trading
relationship, Britain wants to make
clear that there will be costs should a
deal not be agreed.
If both parties only considered the
interests of their citizens, the mutually-beneficial
nature of trade and
security cooperation should mean
that both were willing to continue
liberal arrangements as far as possible.
But the EU has always been more
about politics than economics, and
the balance of competing national
interests at that, reasons why Britain
was right to vote to leave in the first
place.
That’s why I’ve always thought it
best to assume that Britain should
plan for no exit deal, and hence that
British exporters will face tariffs selling
into the EU post-Brexit. In such a
scenario, Britain could maximise its
dynamism by unilaterally removing
its own tariff and non-tariff barriers
and reviewing repatriated regulations.
Such a framework would no
pressure as China wanted fewer
westerners living there.
Despite all this, the region
thrived. So, what can we learn from
Hong Kong’s journey?
While I’m not suggesting this will
all happen to the UK, like Hong
Kong, we are likely to see gaps
emerge in the private sector. One
example is the creative sector, which
took a nose dive when companies
and talent left the region in 1997.
Enterprising entrepreneurs took the
opportunity to establish, fill the gap
and flourish.
For the Hong Kong government, it
was important to identify, protect
and improve key aspects that
enabled economic prosperity. It
fought hard to ensure that strong
intellectual property protection
laws, financial regulation and tax
systems did not change under
Chinese rule. We must follow Hong
Kong’s footsteps to quickly identify
initiatives to maintain London’s
leading status.
Hong Kong’s government was also
quick to realise that, at a time of
change, it could not afford for
uncertainty to overshadow the need
Ryan
Bourne
The EU’s own
treaties allow for a
member state to
leave the union, and
therefore Britain has
no obligation
whatsoever to pay a
membership fee to a
club it has left under
the club’s own rules
doubt cause short-term disruption as
the economy shifted production patterns,
but in the longer term productivity
gains would come from
trading globally at world prices.
Expressing this clearly to the EU
would have been a more credible
for growth. Consequently,
significant investment was made to
ensure Hong Kong remained a
desirable place to live. Strong
infrastructure programmes like
expanding the metro made the
region more efficient, safe, and
exciting.
What the government did fail to
do, in my view, was incentivise a
balanced political system, and I fear
this could happen in the UK too. You
need strong opposition to maintain
the balance. If one party becomes
too strong, it can lead to movements
that aim to force change, divide the
people and alienate some such as
the Umbrella movement in Hong
Kong, which upset China’s political
elite by demanding a leader of their
choosing and even suggested a split
threat than suggesting that security
cooperation would suffer if no deal is
reached, because the economic case
for doing so would be coherent
(whereas the security case is not).
Instead the May government has
taken a more risky path. Whether it
works or not is another matter. What
her government should be
absolutely clear on, though, is that
Britain will not be willing to countenance
any payments into the EU
budget (outside of those
programmes which we wish to
remain in) after leaving, unless talks
on the future economic partnership
proceed immediately.
The EU’s own treaties allow for a
member state to leave the union,
and therefore Britain has no obligation
whatsoever to pay a membership
fee to a club that it has left
under the club’s own rules. Any willingness
to do so would be a display of
goodwill, for which Britain should
obtain goodwill in return.
Just as with David Cameron’s renegotiation,
it’s tempting to presume
mutual rationality will prevail and
that both parties can form and maintain
beneficial relations. This is clearly
more a hope than expectation.
Previous attempts to negotiate suggest
behind the scenes Britain
should be preparing for these talks
to fail, remembering that economically
its long-term fortunes will primarily
be tied to decisions it makes
domestically on tax, trade and regulation.
£ Ryan Bourne occupies the R Evan
Scharf Chair in the Public
Understanding of Economics at the
Cato Institute in Washington DC.
London must take a leaf from Hong Kong’s
book to prosper amid Brexit uncertainty
Simon
Squibb
from the mainland.
Periods of uncertainty should
always be a time for reflection.
Brexit should be a time for us all to
look further afield and reassess
where new prosperity can be found.
Having just come from Asia, I
believe there’s a significant
opportunity for us to build stronger
trade relationships in the region
with markets like Hong Kong. It’s a
much larger opportunity than trade
with the EU in the long term.
Businesses can thrive and
economies grow by capitalising on
uncertainty. The UK has more than
a fighting chance of staying a
financial hub and becoming a
world-leading startup and
innovation destination. But
businesses and government must
take a leaf from Hong Kong’s book
and take the right steps in
protecting what’s worked, as well as
to build new trade routes to huge
markets like Asia.
Welcome to a new chapter of
irresistible uncertainty.
£ Simon Squibb is an entrepreneur and
angel investor.
DEBATE
Q: After a
stellar first
quarter for
equity investors,
will the
second be as
good?
Caroline
Simmons
YES
Equity markets have performed well lately,
spurred on by rising corporate earnings,
strengthening consumer demand,
increased company capital expenditure
and higher commodity prices. Given the
backdrop of improving global growth and a
pick-up in inflation, we think that the
positive drivers for global stock markets are
here to stay for the coming months.
Looking ahead, we therefore maintain an
overweight stance on global equities in our
asset allocation. We don’t believe the path
of gently rising interest rates from the US
Federal Reserve will have a destabilising
effect. In fact, historically, equities have
outperformed in periods following rate
hikes. Equities certainly aren’t cheap, but
valuation is not prohibitive. We shouldn’t
overlook the fact that the valuation of
global equities is in line with its long run
average. So long as earnings growth is
delivered, equity markets have the scope to
move higher. From a sector perspective, we
particularly prefer energy, financials,
healthcare and technology.
£ Caroline Simmons is deputy head of the
UK investment office at UBS Wealth
Management.
Tim
Price
NO
No. Or more realistically, probably not,
given that forecasting the markets –
especially over the shorter term – is
effectively impossible. Two things have
changed the outlook for equity markets.
First, the Trump administration has failed to
repeal Obamacare. Given widespread
expectations of a raft of new US legislation
on the themes of deregulation, lower taxes
and infrastructure spending, the market’s
animal spirits now probably need to be
managed lower. And US valuations remain
sky high – Robert Shiller’s cyclically
adjusted price/earnings ratio for the S&P
500 remains at 29 times, its second highest
level on record. Second, Article 50 has
finally been triggered. Although it’s still early
days, signs are that the UK’s withdrawal
from the EU will be just as protracted and
divisive as the sceptics feared. So the
political outlook in Europe – ahead of key
elections – looks set to be fraught. Investors
would be advised to concentrate on more
defensive parts of the market.
£ Tim Price is manager of the VT Price Value
Portfolio and author of Investing Through
The Looking Glass.

CITYAM.COM
TUESDAY 4 APRIL 2017
OPINION
23
WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum
:@cityam
LETTERS
TO THE EDITOR
The Greens’ pitch
to City workers
[Re: It won’t be the Green Party that helps
us work less, yesterday]
The announcement of the Green Party’s
intention to explore the possibility of a three
day weekend has been met with a variety of
responses. With YouGov finding more than
half of people want to work less, and two
thirds thinking a three day weekend would
make the country happier, we already know
it’s what the public want. But if one thing has
become clear since our speech to Spring
Conference, it is that there will always be
people who fear progress.
I wonder what Julian Harris would have said
when the two day weekend was introduced?
Or holiday and sick pay? Maternity leave,
perhaps? These systems are now considered
so important they are enshrined in law as
basic workers’ rights – but it is easy to forget
that was not always the case, and that we only
have them thanks to progressives of the past.
From the Faculty of Public Health to the
Lancet medical journal, the warnings that long
working hours increase stress and place
workers at a higher risk of stroke and heart
disease are already out there. Evidence that
longer working hours reduce productivity,
meanwhile, should have big implications for
businesses. If we want to be a country that
values the happiness, health and family life of
its citizens, we must recognise that the need
for progress will never end.
I am sure many City A.M. readers know what it
is like to take work home with them in their
pockets, to work from home when unwell, and
to put in more hours than those in their
timesheets and contracts. They deserve bold,
new policies which reflect the reality of
twenty-first century working practices.
Jonathan Bartley, co-leader, Green Party
BEST OF
TWITTER
France: Left wing
candidate Melenchon with
all-time record high 20
days ahead of election: 20
per cent.
@EuropeElects
Spain always tries to claim
Gibraltar – EU member or
not. It’s as baseless now as
ever. Only change is some
Brits now indulge the
pretence.
@wallaceme
Putting Lord Howard’s
comments through the
negative test. Should a UK
politician say UK would
NOT fight to protect
Gibraltar’s sovereignty?
@CJCHowarth
The euro area
unemployment rate is
back to its long-term
average (9.5 per cent),
lowest since May 2009 and
0.5pp from NAWRU.
@fwred
Projections from Lord
Robert Hayward of
changes in May local
elections in England,
Wales, Scotland: LAB -125,
LDs +100, Ukip -100, CON
+100.
@MSmithsonPB
Politics and social media are
creating a new M&A paradigm
THERE has been a flurry of
M&A activity in the UK in the
first few months of the year,
including a number of “mega
deals”. Combined with a
healthy finish to 2016 that saw
$245.8bn worth of deals, this has confounded
concerns that uncertainty
over Brexit would stall activity in the
market.
These developments should not come
as a surprise. After all, a period of slow
economic growth limits opportunities
for organic growth, while low interest
rates make deals cheaper and UK companies
more attractive.
Sterling’s exchange rate against the
US dollar is another element to this
equation and could make a number of
UK businesses, including British icons
previously seen as untouchable,
become attractive targets. Surely most
of us wouldn’t buy anything we do not
want just because the price has
dropped due to currency, but if it is
something we have had our eyes on for
a while we might. The same principle
applies to investors.
It is worth noting that UK companies
with high levels of overseas sales have
seen their share prices rise. Ultimately,
targets will be determined by relative
valuations, but also performance
against their peers, resilience against
the likely impact of Brexit, and the
composition of their boards and shareholder
base.
In this new geopolitical environment,
however, moulded by arguments about
employment, technology and globalisation,
it seems that for any deal to go
ahead, it will face greater challenge
and scrutiny. Ultimately, politics and a
deal’s impact on society could determine
its future, not pure economics.
Michel
Driessen
This new paradigm presents challenges
to both the government’s and businesses’
approach to future deals.
The UK government has hinted at
adopting a more protectionist
approach to foreign takeovers. This
poses the question whether there are
sectors of the UK economy that constitute
national champions in the eyes of
the government and what the rules
surrounding the assessment of foreign
investment in those sectors will be.
That represents a challenge to structuring
acquisitions in the future. If the
government’s intention is to adopt a
more French-style approach, so far it
lacks the clarity of its Gallic
neighbours. France has identified its
national champions, but in the UK it’s
still unclear what constitutes the “critical
national infrastructure”, for example,
that the government has promised
to protect from foreign takeovers. In
addition, mergers and acquisitions
aren’t even mentioned in its Green
Paper on building an industrial
strategy published in January.
The failure of Kraft Heinz’s bid for
Unilever means that the first major test
of the Prime Minister’s industrial policy
has been avoided. The vision “to deliver
an economy that works for all”, however,
points to a future less welcoming of
M&A deals focused purely on creating
efficiencies.
A proposal for new rules on assessing
foreign investments is reported to be
imminent. This will hopefully tell us
what sectors will receive greater scrutiny.
But as the market moves at an
unpredictable pace, the government
should aim to remain one step ahead
rather than have decisions forced upon
it.
This new approach to foreign
takeovers by governments is not the
only trend that deal-makers must contend
with. The pervasive use of social
media is a related trend and in many
cases an increasing obstacle.
While the UK’s approach towards
M&A will become clear over time, public
opposition, informed and given
voice largely by social media, will
remain more difficult to predict. In
cases where deals are suspected to
result in substantial job losses or do
not demonstrate added value for society,
public pressure will be an increasingly
core feature.
In future, all of us involved in potentially
sensitive deals will have to think
very carefully and be prepared to
answer questions on whether potential
cost savings and shareholder value are
achievable in practice – politically and
socially – and, if not, how deals may be
structured differently. There will be
consequences for valuations, and for
finance.
There are no easy answers, but the
challenge needs to be addressed rather
than ignored. Those involved in M&A
are going to need to be creative,
because one thing is clear: future activity
is going to depend on a lot more
than just the numbers.
£ Michel Driessen is transaction advisory
services markets leader at EY.
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24 FEATURE TUESDAY 4 APRIL 2017
CITYAM.COM
TRADING AND INVESTMENT
WHERE NEXT
FOR EMERGING
MARKET DEBT?
EMERGING market debt (EMD)
has matured as an asset
class, with a growing
number of investors
attracted to the increasingly
positive economic fundamentals and
higher yields.
EMD also offers an expanding
opportunity set with plenty of diversification
opportunities. That said,
the asset class comes with distinct
risks that makes achieving relatively
stable returns in the shorter term no
easy task. The answer, we believe,
involves a different approach to asset
allocation and selection, and access
to the right technology to undertake
risk management in real time.
MOVING BEYOND THE
TRADITIONAL
Traditional fundamental top-down
and bottom-up active management
approaches can be inadequate during
regime changes or when unexpected
events roil markets. It is therefore not
enough to implement a static asset
allocation between local, hard and
corporate debt based on historical
data and to then try to achieve optimum
timing.
To take fuller advantage of the asset
class, a more forward-looking investment
approach that takes into
account EMD’s distinct
characteristics is required, even more
so now. Performance drivers have
become more numerous and complex,
just as the investment environment
in fixed income is increasingly
challenging following a 35-year bull
market. Central bank support is now
BlackRock’s
Sergio Trigo Paz
examines the
opportunity
presented by this
maturing asset
class
Emerging market
debt has had a
strong start so far
this year. Hard
currency
sovereign debt
returned 3.38 per
cent and local debt
is up 4.62 per cent
in US dollar terms
waning and investors may be left
over-exposed to monetary policy
risks.
This suggests that further diversification
away from core developed
market fixed income is set to be crucial.
In this context, EMD stands out
as one of the few remaining places
where investors can find investmentgrade
yield that offers some protection
against the impact of rising
interest rates. So despite perceived
headwinds following Donald
Trump’s victory in November 2016,
EMD has had a strong start so far this
year. Hard currency sovereign debt
returned 3.38 per cent and local debt
is up 4.62 per cent in US-dollar terms
as of 24 February, according to
Bloomberg data.
Equally, though, this year’s buoyant
performance also means that valuations
are now more stretched.
Therefore the ability to actively pick
between the winners and losers will
likely become a more important
returns driver. Meanwhile, the transitions
already underway could again
disrupt global markets, including
EMD, in 2017: an interest rate regime
shift led by the Fed; a move from fiscal
restraint to fiscal stimulus; or a
move from globalisation to protectionism,
to name a few.
The implications on EMD will differ
from developed market fixed
income, and accommodating for
these differences is an important
step to optimise opportunities.
First, EMD is heavily influenced by
global external forces that are in constant
motion, making investment
cycles more uncertain. Some examples
include the normalisation of
monetary policy in the US, China’s
pace of economic growth, the direction
of oil prices and the US dollar.
All of them can impact significantly
the performance and risk profile of
EMD assets.
Second, the diversity of the asset
class should mean more attendant
alpha opportunities for investors, but
the changing nature of the performance
drivers make alpha generation
less straightforward than it seems.
Finally, the asset class is
particularly vulnerable to short-term
surprises, as evidenced last year by
November’s US elections.
RE-ENGINEERING THE
ESSENTIAL COMPONENTS
These differences can have an important
impact on the three essential
components of active management –
asset allocation, selection and risk
management – and not surprisingly,
stretch many investors’ ability to
extract more consistent returns from
the asset class.
Consider groups of countries that
may share commonalities impacting
bond and currency performance
when market conditions change.
Central banks that are hiking rates,
for example, can be separated from
others that are more dovish, or highly-indebted
economies versus lowleveraged
ones. With this simple
comparison, we can gain some information
on how these groups would
perform differently if, for example,
inflows into EMD accelerate.
Obviously, the actual implementation
of such a view is far more complicated
because the return drivers
that affect the subsets of countries
tend to vary in magnitude, frequency
and length of time.
Identifying and understanding how
potential changes in global and local
drivers may impact each country or
groups of countries in multiple ways
has become essential. It is no longer
adequate to invest in a particular
debt issue based on forecasts or valuation
models generated from historical
data.
Managers also need clarity on how
certain securities may perform
under multiple conditions. What
happens if the Fed raises interest
rates faster than expected, or if the
latest polls are wrong about the
French presidential election? Then
perhaps even more importantly, they
need to have the technology and
tools to interpret, quantify and efficiently
manage the risks.
An investment process that is fit for
purpose in today’s unpredictable
environment needs to address EMD’s
specific characteristics: next-generation
active management if you will.
In practice, it means adopting a
dynamic asset allocation framework
with risk parameters that can be
adjusted swiftly for expected market
shifts; selecting countries and securities
through a forward-thinking lens
and skilful use of scenario-based risk
management.
£ Sergio Trigo Paz is head of emerging
market debt at BlackRock.

CITYAM.COM
TUESDAY 4 APRIL 2017
FEATURE
25
Get ready
for the new
tech wave
Thomas Fitzgerald looks at the firms
likely to fuel the next technology revolution
WE ARE now entering
“Tomorrow’s World”. As
visions of the future
become reality, the rise
of tech is touching every
part of the fabric of global politics,
society and the economy. It is an
enabler of growth and change for
every business sector.
Industry 4.0, the rise of smart factories,
and cyber-physical systems, for
example, offer the potential for a
step-change in reliability, safety and
productivity. Similarly, smart-cities
will see greater optimisation of physical
infrastructure via predictive
modelling and real-time data collection.
Technological advancements in
fields such as artificial intelligence
and virtual reality provide new business
opportunities in new markets,
and they raise the competitive barriers
to entry for technology
companies with strong credentials in
these fields.
TRUMP TAX OFFERS TAILWIND
FOR DEVELOPMENT
The new US administration’s tax
plans include provisions for low-tax
rates on foreign earnings repatriated
to the US in order to incentivise companies
to bring their cash onshore.
This could be a major acceleration of
advancement and a boon for shareholders.
For many of the major US technology
firms holding substantial cash balances
overseas, this incentive (if
enacted) could lead to a significant
amount of cash repatriated to the US
for share buybacks, shareholder dividends,
as well as US-based M&A, R&D
and capital expenditure, all of which
have the potential to enhance the
fundamentals of the industry.
This change could have a tailwind
effect on the four major themes driving
the new wave of tech, which are
destined to revolutionise our lives
while offering investors plenty of
opportunity.
RISE OF ARTIFICIAL
INTELLIGENCE AND MACHINE
LEARNING
Major advancements in many of the
underlying technologies such as deep
learning, neural networks and natural-language
processing have led to
the creation of computing systems
that understand, learn, predict and
operate without human intervention.
These developments have catalysed
the rapid growth of embedded intelligence
within products and services,
such as voice-enabled virtual assistants,
autonomous vehicles and
smart homes. In the future, we
expect to see further progress in the
capability of these technologies and
an expansion in their commercial
application across a number of industries,
including health care, transportation
and consumer services.
Key players within this area include
those companies with strengths within
the core buildings blocks of these
technologies:
£ Big data (Alphabet, Facebook and
IBM)
£ Semiconductor producers which
enhance the processing power required
to manage and interpret much vaster
pools of data (Intel, AMD and NVIDIA)
£ Hardware manufacturers in areas
such as sensors, microphones and
cameras required for data collection
and interpretation (Sunny Optical,
Mobileye and Infineon Technologies)
£ Cloud computing services, as we
believe that ultimately these functions
will be offered to enterprises and endusers
as a part of their overall cloud
computing service (Amazon and
Microsoft)
VIRTUAL REALITY TO BECOME
A REALITY
Computer processing capability has
only recently become fast enough to
power comfortable and convincing
virtual and augmented reality experiences.
Companies such as Facebook,
Google, Apple, and Sony are deploying
vast amounts of capital in order
to make these experiences more
immersive, comfortable, and affordable.
Over the next few years, we believe
virtual and augmented reality capabilities
will further improve and
these technologies will be more widely
integrated across PC, mobile and
wearable devices. This will serve
users in enterprise, education, and
health care, as well as the more obvious
applications in consumer and
gaming industries.
CYBER-CRIME IS ON THE RISE
Cyber-crime is estimated to cost the
global economy more than $400bn
every year. With cyber adversaries
growing increasingly competent and
well-resourced, while entities and
individuals continue to process and
store a larger amount of their assets
and information digitally, we believe
that the frequency and impact of
cyber-crime will continue to grow.
In the past, security has primarily
been the responsibility of software
and network providers. However,
with the mass adoption of smart
home devices and increasing connectivity
in life critical situations, such
as automobiles and medical devices,
we believe that security will become
a greater focus for hardware manufacturers
(NXP Semiconductors and
Cisco Systems).
REACHING A NEW LEVEL OF
SCALE
With approximately 2.5bn people
using a smartphone device worldwide,
technology has reached a new
level of scale through a new form of
computing (with cameras, sensors
and sound). This, in our view will
continue to provide a platform to
change the lives of users and significantly
alter the course of numerous
industries.
£ Thomas Fitzgerald is associate
portfolio manager at EdenTree
Investment Management.
AI will push music streaming into the stratosphere
THE LATE, great David Bowie
got it spot on back in 2002.
Telling the New York Times
that music is going to
become like “running water
or electricity,” the Starman singer predicted
the meteoric rise of the streaming
subscription that last week
confirmed its place in the upper echelons
of the industry.
The fragile US music industry saw
retail revenues from recorded music
grow 11.4 per cent in 2016 to $7.7bn,
according to the Recording Industry
Association of America (RIAA). This
was thanks, in no small part, to a
doubling of paid streaming music
subscriptions which helped the
American music business experience
its biggest gain since 1998.
“For the first time ever, streaming
music platforms generated the
CNBC
COMMENT
Matt
Clinch
majority of the US music industry’s
revenues... Streaming grew from just
9 per cent of the market in 2011 to 51
per cent of total industry revenues in
2016,” the RIAA confirmed,
namechecking such services as
Spotify, TIDAL and Apple Music.
It’s an impressive rise but the new
technology has yet to truly capture
any of my cash. I’ve dabbled in the
“freemium” models for some
services and I’ve purchased a few
weeks worth of access to one
particular streaming subscription.
But that’s it. I’ve so far resisted,
clinging on desperately to my vinyl
collection and any CDs I still have
from the 1990s that aren’t scratched
beyond playability. That is, until
now.
Streaming grew
from 9 per cent of
the music industry
in 2011 to 51 per
cent of total
revenues in 2016
With the upcoming launch of
Google Home in the UK and the
advertising onslaught that Amazon
is currently undertaking for its own
smart assistant Alexa, it won’t be
long before there’s a talking robot
nestled between the books on my
dining room shelf.
And there lies the major selling
point for me. Call me lazy, but who
wouldn’t want to shout “play Roy
Orbison’s Crying” at a voicecontrolled
speaker when you’re
about to embark on the chopping of
an onion?
The British Phonographic Industry
is already notably excited at the
prospect, highlighting in a report
that these assistants “are likely to
evolve into our de facto musical
concierges around the home and in
the car.”
And it’s the list of smart
commands that’s a real deal breaker.
Amazon’s official list of voice
commands for Alexa include some
very vague human interactions that
are likely to get some very
interesting results. Think of how
much fun you could have after
demanding it to “play the top rock
songs from 1988?”. Or maybe even:
“Play that song with the lyrics ‘De do
do do de da da da, is all I want to say
to you’.”
It’ll be a party gimmick, the
excitement will wear off after a few
weeks – but ultimately it’s an
enabler and will help me listen to
even more music. Bowie would have
approved.
£ Matt Clinch is deputy digital news
editor at CNBC.com.

Gold.............................................................1247.25 2.40
Silver ...............................................................18.16 0.10
Brent Crude....................................................53.53 0.60
Krugerrand.................................................1249.10 4.90
Palladium ....................................................797.00 9.00
Platinum .....................................................945.00 -11.00
Tin Cash Official ......................................20050.00 25.00
Lead Cash Official......................................2308.00 -31.00
Zinc Cash Official .......................................2782.00 -51.00
Copper Cash Official..................................5849.00 -9.00
Aluminium Cash Official............................1955.00 0.00
Nickel Cash Official....................................9935.00 -85.00
Aluminium Alloy Cash Official...................1535.00 0.00
Cocoa Futures.............................................2107.00 12.00
Coffee 'C' Futures ..........................................137.62 -1.15
Feed Wheat Futures .....................................147.25 0.25
Soybeans Futures Continuation Contract...939.40 -6.40
AB INBEV.........................................................103.35 0.45 119.60 92.13
ADIDAS N ........................................................175.85 -2.45 185.05 100.45
AIR LIQUIDE ....................................................106.95 -0.15 107.15 85.96
AIRBUS..............................................................71.36 0.03 72.12 48.07
ALLIANZ..........................................................172.00 -1.65 173.65 118.35
ASML HLDG .....................................................123.65 -0.75 124.40 79.38
AXA ..................................................................23.93 -0.33 25.05 16.11
BANCO SANTANDER ...........................................5.65 -0.10 5.80 3.15
BASF N .............................................................93.05 0.13 93.26 61.58
BAYER N..........................................................107.80 -0.25 112.00 83.45
BBVA..................................................................6.95 -0.19 7.32 4.43
BMW I ..............................................................84.87 -0.64 91.76 63.38
BNP PARIBAS-A-...............................................61.22 -1.21 63.35 35.27
DAIMLER N .......................................................68.45 -0.75 73.23 50.83
DANONE ..........................................................63.50 -0.26 70.53 57.66
DEUTSCHE BANK N............................................15.70 -0.45 17.82 8.83
DEUTSCHE POST N .............................................31.77 -0.34 32.95 23.36
DEUTSCHE TELEKOM N......................................16.40 -0.03 16.67 13.54
E.ON N................................................................7.40 -0.05 8.84 5.99
ENEL N ................................................................4.41 0.04 4.43 3.54
ENGIE ................................................................13.17 -0.11 15.21 10.77
ENI N..................................................................15.12 -0.20 15.92 12.18
ESSILOR INTL....................................................112.80 -1.10 124.55 93.41
FRESENIUS I......................................................74.84 -0.49 77.45 60.00
IBERDROLA ........................................................6.64 -0.06 6.72 4.60
INDITEX ............................................................32.74 -0.31 33.47 27.18
ING GROUP .......................................................13.99 -0.19 14.75 8.30
INTESA SANPAOLO N...........................................2.51 -0.02 2.59 1.52
KON AH DEL......................................................19.94 -0.12 23.03 17.89
L'OREAL...........................................................179.50 -0.65 180.15 151.30
LVMH..............................................................204.05 -1.80 205.85 130.55
MUENCHENER RUECKV N.................................182.75 -0.65 185.00 140.90
NOKIA ................................................................4.95 -0.08 5.58 3.66
ORANGE ............................................................14.55 -0.02 15.66 12.38
ROY.PHILIPS ......................................................30.01 -0.12 30.13 20.90
SAFRAN P.........................................................70.69 0.66 70.30 53.00
SAINT-GOBAIN..................................................47.68 -0.46 48.14 32.15
SANOFI.............................................................84.48 -0.14 84.93 62.50
SAP I..................................................................91.91 -0.07 92.00 64.94
SCHNEIDER ELECTRIC........................................68.32 -0.31 69.53 49.50
SIEMENS N.......................................................127.60 -0.80 128.40 86.82
SOCIETE GENERALE...........................................46.32 -1.24 49.38 25.00
TELEFONICA ......................................................10.39 -0.10 10.63 7.15
TOTAL ...............................................................46.97 -0.45 48.86 36.03
UNIBAIL-RODAMCO..........................................217.85 -1.25 250.55 203.10
UNILEVER CERT................................................46.46 -0.11 46.91 36.22
VINCI ................................................................74.46 0.16 75.03 49.93
VIVENDI.............................................................17.94 -0.29 20.09 14.87
VOLKSWAGEN VZ I...........................................135.70 -0.90 156.55 101.25
Price Chg High Low
EU SHARES
3M...................................................................190.72 -0.61 193.50 163.17
ABBVIE.............................................................65.03 -0.13 68.12 55.06
ALPHABET-A ..................................................856.75 8.95 874.42 672.66
ALPHABET-C...................................................838.55 8.99 853.50 663.28
ALTRIA GROUP..................................................71.62 0.20 76.55 59.48
AMAZON.COM..................................................891.51 4.97 890.35 585.25
AMERICAN EXPRESS.........................................78.59 -0.52 82.00 57.15
AMGEN ...........................................................163.89 -0.18 184.21 133.64
APPLE .............................................................143.70 0.04 144.50 89.47
AT&T..................................................................41.57 0.02 43.89 36.10
BANK OF AMERICA...........................................23.59 0.00 25.80 12.05
BERKSHIRE HATHAWY-B ................................166.87 0.19 177.86 136.65
BOEING CO ......................................................176.65 -0.21 185.71 122.35
CATERPILLAR....................................................92.27 -0.49 99.46 69.04
CHEVRON........................................................107.80 0.43 119.00 92.43
CISCO SYSTEMS .................................................33.58 -0.22 34.53 25.81
CITIGROUP .......................................................59.68 -0.14 62.53 38.31
COCA-COLA CO..................................................42.41 -0.03 47.13 39.88
COMCAST-A.......................................................37.56 -0.03 38.44 29.81
DU PONT NEMOURS& .......................................79.67 -0.66 82.37 61.12
EXXON MOBIL...................................................82.07 0.06 95.55 80.31
FACEBOOK-A...................................................142.28 0.23 142.95 106.31
GENERAL ELECTRIC...........................................29.88 0.08 33.00 28.19
GOLDMAN SACHS GR .....................................228.96 -0.76 255.15 138.20
HOME DEPOT..................................................146.62 -0.21 150.15 119.20
IBM .................................................................174.50 0.36 182.79 142.50
INTEL.................................................................36.16 0.09 38.45 29.50
JOHNSON & JOHNSO ......................................124.69 0.14 129.00 107.88
JPMORGAN CHASE............................................87.52 -0.32 93.98 57.05
MASTERCARD-A ..............................................112.24 -0.23 113.50 86.65
MCDONALD'S...................................................129.61 0.00 131.96 110.33
MEDTRONIC.......................................................81.03 0.47 89.27 69.35
MERCK..............................................................63.47 -0.07 66.80 53.06
MICROSOFT.......................................................65.55 -0.31 66.19 48.04
NIKE -B-...........................................................55.56 -0.17 61.85 49.01
ORACLE.............................................................44.61 0.00 46.99 37.62
PEPSICO ...........................................................111.86 0.00 112.76 98.50
PFIZER..............................................................34.24 0.03 37.39 29.83
PHILIP MRRS INT..............................................112.91 0.01 114.65 86.78
PROCTER&GAMBLE ..........................................89.68 -0.17 92.00 79.10
SCHLUMBERGER ...............................................77.70 -0.40 87.84 71.69
THE KRAFT HEINZ.............................................91.06 0.25 97.77 76.64
TRAVLR COMP .................................................120.38 -0.16 125.49 103.45
TWITTER...........................................................14.84 -0.11 25.25 13.73
UNITEDHEALTH GRO .......................................165.59 1.58 172.14 125.26
UTD TECHNOLOGIES..........................................111.93 -0.28 114.44 96.89
VERIZON COMM.................................................49.18 0.43 56.95 46.01
VISA-A .............................................................89.36 0.49 92.05 73.25
WAL-MART STORES...........................................71.83 -0.25 75.19 62.72
WALT DISNEY ..................................................113.20 -0.19 113.71 90.32
WELLS FARGO ..................................................55.49 -0.17 59.99 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..............................-0.424 0.00
LIBOR Euro - 12 months ..............................-0.122 0.00
LIBOR USD - overnight.................................0.921 -0.01
LIBOR USD - 12 months ................................1.802 0.01
Halifax mortgage rate ................................3.990 0.00
Euro Base Rate ...........................................0.000 0.00
Finance house base rate .............................1.000 0.00
US Fed funds.................................................0.90 0.00
US long bond yield........................................3.02 -0.01
Euro Euribor ...............................................-0.379 0.00
The vix index................................................12.38 0.01
The baltic dry index .................................1297.00 -27.00
Markit iBoxx EUR ......................................226.08 0.58
Markit iBoxx GBP........................................324.37 3.01
Markit iTraxx................................................70.26 0.07
Price Chg High Low
US SHARES
€/$ 1.0670 0.0003
€/£ 0.8553 0.0048
€/¥ 118.34 0.4693
/€ 1.1693 0.0065
/$ 1.2477 0.0068
/¥ 138.42 1.3058
BAE Systems . . . . . . . . .635.0 -7.5 655.0 468.9
Cobham . . . . . . . . . . . . .132.8 -0.2 183.4 110.7
Meggitt . . . . . . . . . . . . .439.5 -5.8 482.0 364.0
QinetiQ Group . . . . . . .280.0 1.0 285.0 217.5
Rolls-Royce Holdi . . . . .750.5 -3.5 831.0 599.5
Senior . . . . . . . . . . . . . .207.4 1.3 242.0 171.6
Ultra Electronics . . . . .2061.0 -11.0 2204.0 1595.0
GKN . . . . . . . . . . . . . . . .363.0 -0.3 376.5 253.4
Aldermore Group . . . . .227.3 4.4 240.0 104.8
Barclays . . . . . . . . . . . . .221.5 -3.7 239.3 127.2
BGEO Group . . . . . . . . .3233.0 11.0 3379.0 1950.0
CYBG . . . . . . . . . . . . . . .280.8 3.2 302.2 207.3
HSBC Holdings . . . . . . .646.6 -4.3 712.3 416.2
Lloyds Banking Gr . . . . .66.0 -0.3 73.7 47.6
Metro Bank . . . . . . . . .3384.0 130.0 3669.0 1623.0
Royal Bank of Sco . . . . .239.9 -2.2 258.9 148.9
Shawbrook Group . . . .339.5 0.2 342.7 132.0
Standard Chartere . . . .748.3 -14.7 817.9 432.7
Virgin Money Hold . . . .320.2 -0.4 378.0 205.0
Barr (A.G.) . . . . . . . . . .586.0 7.0 614.5 455.3
Britvic . . . . . . . . . . . . . .644.5 -3.0 732.5 523.5
Coca-Cola HBC AG . . .2052.0 -9.0 2073.0 1286.0
Diageo . . . . . . . . . . . .2279.0 -4.5 2328.0 1748.0
Croda Internation . . . .3584.0 20.0 3669.0 2819.0
Elementis . . . . . . . . . . .288.6 -0.6 309.8 180.6
Johnson Matthey . . . .3050.0 -30.0 3540.0 2659.0
Synthomer . . . . . . . . . .478.3 2.6 479.7 308.9
Victrex plc . . . . . . . . . . .1911.0 11.0 1982.0 1392.0
AO World . . . . . . . . . . . .135.8 0.8 188.0 120.5
Auto Trader Group . . . .389.7 -2.6 424.1 313.8
B&M European Valu . . .302.1 2.7 311.3 232.5
Card Factory . . . . . . . . .288.5 3.5 381.0 236.5
Debenhams . . . . . . . . . .54.2 -0.3 81.6 51.4
Dignity . . . . . . . . . . . .2409.0 30.0 2871.0 2273.0
Dixons Carphone . . . . .308.2 -9.4 448.1 281.6
Dunelm Group . . . . . . .636.5 -1.0 972.0 617.5
Halfords Group . . . . . . .354.0 -0.7 449.1 305.6
Inchcape . . . . . . . . . . . .836.0 -5.5 844.5 581.0
JD Sports Fashion . . . . .387.0 1.7 388.6 207.4
Just Eat . . . . . . . . . . . . .560.0 -6.0 599.5 363.3
Kingfisher . . . . . . . . . . .322.0 -4.1 386.2 306.7
Marks & Spencer G . . . .336.7 -0.3 446.1 285.2
Next . . . . . . . . . . . . . . .4166.0-154.0 5680.0 3791.0
Pets at Home Grou . . . .182.0 -0.6 268.8 178.4
Saga . . . . . . . . . . . . . . .200.5 -2.7 225.9 180.6
Sports Direct Int . . . . . .304.9 -3.3 412.0 252.2
Ted Baker . . . . . . . . . .2762.0 2.0 3050.0 2124.0
WH Smith . . . . . . . . . .1776.0 3.0 1878.0 1447.0
Assura . . . . . . . . . . . . . . .58.4 0.6 60.6 49.4
Convatec Group . . . . . .278.0 -1.0 282.0 225.0
Mediclinic Intern . . . . . .710.5 -1.5 1119.0 685.0
Balfour Beatty . . . . . . .268.0 -1.4 295.1 190.8
CRH . . . . . . . . . . . . . . .2779.0 -31.0 2898.0 1940.0
Galliford Try . . . . . . . . .1473.0 1.0 1583.0 785.0
Ibstock . . . . . . . . . . . . .208.5 0.9 223.7 114.7
Keller Group . . . . . . . . .910.0 3.0 1024.0 644.5
Kier Group . . . . . . . . . .1373.0 5.0 1503.0 932.0
Marshalls . . . . . . . . . . . .358.0 5.2 368.4 206.5
Polypipe Group . . . . . . .376.3 -4.7 384.1 221.5
Drax Group . . . . . . . . . .314.2 -11.2 384.6 271.4
SSE . . . . . . . . . . . . . . . .1478.0 2.0 1628.0 1369.0
Halma . . . . . . . . . . . . .1018.0 -6.0 1126.0 886.5
Morgan Advanced M . . .312.9 2.9 325.2 210.1
Renishaw . . . . . . . . . . .3124.0 11.0 3242.0 1836.0
Spectris . . . . . . . . . . . .2496.0 -2.0 2550.0 1620.0
Aberforth Smaller . . . .1188.0 1.0 1209.0 849.0
Alliance Trust . . . . . . . .683.0 -2.0 701.5 485.4
Bankers Inv Trust . . . . . .741.5 8.0 776.5 550.0
BH Macro Ltd. GBP . . . .2129.0 9.0 2160.0 1875.0
British Empire Tr . . . . . .663.0 1.0 686.5 459.0
Caledonia Investm . . .2750.0 0.0 2875.0 2152.0
City of London In . . . . . .413.9 -2.2 420.0 356.0
Edinburgh Inv Tru . . . . .713.0 -0.5 739.5 620.0
Electra Private E . . . . .4951.0 0.0 5100.0 3310.0
Fidelity China Sp . . . . . .196.7 1.0 200.0 132.2
Fidelity European . . . . .191.8 0.5 195.7 151.2
Finsbury Growth & . . . .692.0 -0.5 701.5 562.5
Foreign and Colon . . . .563.5 -0.5 585.0 420.5
GCP Infrastructur . . . . . .129.9 1.1 134.8 117.0
Genesis Emerging . . . .644.0 2.5 649.5 482.0
Greencoat UK Wind . . . .118.6 0.3 121.9 101.3
HarbourVest Globa . . .1221.0 1.0 1274.0 875.0
HICL Infrastructu . . . . . .169.7 0.7 184.7 159.2
International Pub . . . . .157.2 1.2 162.6 140.4
John Laing Infras . . . . . .134.4 0.5 140.4 121.1
JPMorgan American . . .377.4 1.6 392.1 283.1
JPMorgan Emerging . . .766.5 8.0 767.0 553.0
JPMorgan Indian I . . . . .701.0 3.5 704.5 495.1
Mercantile Invest . . . . .1817.0 -5.0 1838.0 1375.0
Monks Inv Trust . . . . . .639.5 4.0 648.0 410.2
Murray Internatio . . . .1204.0 -8.0 1221.0 878.0
NB Global Floatin . . . . . .97.5 0.0 100.2 88.6
P2P Global Invest . . . . .774.0 4.0 944.0 730.0
Perpetual Income . . . .376.0 0.2 391.9 332.0
Personal Assets T . . .40810.0 160.0 40910.036500.0
Polar Capital Tec . . . . . .927.0 -5.0 954.5 566.0
RIT Capital Partn . . . . .1859.0 -12.0 1930.0 1531.0
Riverstone Energy . . .1236.0 -3.0 1355.0 797.0
Scottish Inv Trus . . . . . .795.5 -2.5 806.5 582.0
Scottish Mortgage . . . .368.0 1.9 368.7 246.9
Syncona Limited N . . . .146.2 1.2 152.0 124.5
Temple Bar Inv Tr . . . .1232.0 2.0 1293.0 963.0
Templeton Emergin . . .665.0 3.5 674.0 435.0
The Renewables In . . . .108.4 0.9 111.3 90.3
TR Property Inv T . . . . . .313.6 -0.9 321.0 241.7
Witan Inv Trust . . . . . . .956.5 1.5 970.0 712.0
Woodford Patient . . . . .91.6 0.5 100.8 81.0
Worldwide Healthc . .2325.0 21.0 2447.0 1723.0
3i Group . . . . . . . . . . . .736.5 -13.0 754.5 443.3
3i Infrastructure . . . . . .189.4 0.4 200.0 166.5
Aberdeen Asset Ma . . .263.0 -1.7 348.6 245.8
Allied Minds . . . . . . . . .270.4 -34.3 470.0 270.0
Arrow Global Grou . . . .357.0 -1.8 361.8 178.3
Ashmore Group . . . . . .353.2 -0.3 375.5 260.1
Brewin Dolphin Ho . . . .314.9 2.5 317.1 210.2
Charles Taylor . . . . . . . .235.0 0.0 327.5 205.4
City of London In . . . . .382.5 1.0 400.1 285.0
Close Brothers Gr . . . . .1533.0 -5.0 1582.0 989.5
CMC Markets . . . . . . . . .120.0 -1.0 290.8 94.6
Hargreaves Lansdo . . .1304.0 3.0 1394.0 1056.0
Henderson Group . . . . .236.0 2.9 270.7 195.0
IG Group Holdings . . . .500.0 2.7 959.5 450.7
Intermediate Capi . . . .703.5 -4.5 726.5 454.2
International Per . . . . . .167.0 3.3 341.2 160.6
Investec . . . . . . . . . . . . .543.5 -0.5 619.0 419.4
IP Group . . . . . . . . . . . . .152.2 -4.5 200.0 120.4
John Laing Group . . . . .273.6 1.1 281.5 209.4
Jupiter Fund Mana . . . .426.3 0.3 453.9 328.9
Liontrust Asset M . . . . .395.0 5.0 404.5 235.0
LMS Capital . . . . . . . . . . .41.9 -0.1 67.3 40.8
London Finance & . . . . .45.0 0.0 46.0 35.0
London Stock Exch . . .3191.0 20.0 3220.0 2289.0
Man Group . . . . . . . . . . .145.3 -2.0 162.4 107.3
OneSavings Bank . . . . .409.9 5.7 423.1 176.2
Paragon Group Of . . . .421.3 3.5 440.8 227.4
Provident Financi . . . .3044.0 47.0 3320.0 2164.0
Rathbone Brothers . . .2365.0 -30.0 2407.0 1590.0
Real Estate Credi . . . . . .162.5 0.0 174.0 143.0
Record . . . . . . . . . . . . . . .47.3 0.8 47.6 24.0
S&U . . . . . . . . . . . . . . . .2157.0 18.0 2610.0 1997.0
Sanne Group . . . . . . . . .692.5 2.0 705.0 365.3
Schroders . . . . . . . . . .3037.0 7.0 3156.0 2049.0
SVG Capital . . . . . . . . . . .721.5 1.0 724.5 480.1
TP ICAP . . . . . . . . . . . . .454.4 -10.1 493.3 275.0
VPC Specialty Len . . . . . .75.0 -0.3 92.5 70.5
Walker Crips Grou . . . . . .38.5 0.0 49.5 37.1
BT Group . . . . . . . . . . . .316.0 -2.2 454.9 302.1
TalkTalk Telecom . . . . .195.4 5.9 272.8 152.5
Telecom Plus . . . . . . . .1207.0 10.0 1255.0 819.0
Booker Group . . . . . . . .193.0 -2.4 212.3 162.0
Greggs . . . . . . . . . . . .1040.0 -3.0 1139.0 884.0
Morrison (Wm) Sup . . .237.7 -2.3 249.3 172.4
Ocado Group . . . . . . . .240.8 -0.2 349.0 208.1
Sainsbury (J) . . . . . . . . .263.2 -1.1 292.5 214.6
SSP Group . . . . . . . . . . .418.5 1.8 420.0 272.3
Tesco . . . . . . . . . . . . . . .184.7 -0.9 218.7 147.4
UDG Healthcare Pu . . . .704.5 2.5 736.5 542.5
Associated Britis . . . . .2601.0 -5.0 3415.0 2350.0
Cranswick . . . . . . . . . .2565.0 6.0 2580.0 1975.0
Dairy Crest Group . . . . .552.0 -1.5 690.0 504.5
Greencore Group . . . . .243.9 -1.9 322.7 218.3
Tate & Lyle . . . . . . . . . .770.0 5.5 807.0 574.5
Unilever . . . . . . . . . . .3922.0 -17.5 4067.5 3041.5
Mondi . . . . . . . . . . . . .1955.0 28.0 1977.0 1259.0
Centrica . . . . . . . . . . . . .214.8 -2.2 242.0 195.2
National Grid . . . . . . .1009.0 -4.5 1130.5 891.5
Pennon Group . . . . . . .878.0 -4.0 945.5 768.0
Severn Trent . . . . . . . .2381.0 -1.0 2509.0 2073.0
United Utilities . . . . . . .993.5 0.0 1039.0 854.5
RPC Group . . . . . . . . . . .796.5 15.0 1007.0 660.3
Smith (DS) . . . . . . . . . .434.3 0.2 455.7 355.6
Smiths Group . . . . . . . .1615.0 -4.0 1631.0 1051.0
Smurfit Kappa Gro . . .2105.0 -16.0 2246.0 1584.0
Vesuvius . . . . . . . . . . . .518.5 -2.0 550.0 282.5
Price Chg High Low
NMC Health . . . . . . . . .1744.0 -25.0 1866.0 1021.0
Smith & Nephew . . . . .1216.0 0.0 1310.0 1067.0
Spire Healthcare . . . . .324.7 0.7 400.0 305.0
Barratt Developme . . .548.0 1.5 599.5 332.6
Bellway . . . . . . . . . . .2690.0 -13.0 2837.0 1689.0
Berkeley Group Ho . . .3199.0 -8.0 3375.0 2270.0
Bovis Homes Group . . .840.0 -6.0 1024.0 627.0
Countryside Prope . . . .241.0 -1.0 278.5 173.2
Crest Nicholson H . . . . .541.5 -1.5 604.0 335.0
McCarthy & Stone . . . . .187.7 -1.3 276.0 140.3
Persimmon . . . . . . . . .2087.0 -7.0 2150.0 1289.0
Reckitt Benckiser . . . .7256.0 -30.0 7692.0 6514.0
Redrow . . . . . . . . . . . . .507.0 -3.0 516.0 275.6
Taylor Wimpey . . . . . . .193.0 -0.1 210.3 115.8
Bodycote . . . . . . . . . . . .798.5 2.0 835.5 502.5
Hill & Smith Hold . . . . .1278.0 6.0 1352.0 786.0
IMI . . . . . . . . . . . . . . . .1198.0 5.0 1297.0 910.5
Rotork . . . . . . . . . . . . . .246.2 2.9 267.4 160.4
Spirax-Sarco Engi . . . .4893.0 124.0 4906.0 3289.0
Phoenix Group Hol . . . .744.0 -3.0 798.6 611.5
Prudential . . . . . . . . . .1653.0 -33.0 1768.5 1105.0
St James's Place . . . . .1055.0 -7.0 1106.0 716.0
Standard Life . . . . . . . . .351.1 -3.6 400.0 262.1
4Imprint Group . . . . . .1755.0 -31.0 1879.0 1200.0
Ascential . . . . . . . . . . . .320.0 -0.5 322.9 225.0
Bloomsbury Publis . . . .175.0 -4.0 179.0 146.5
Centaur Media . . . . . . . . .41.6 0.0 57.5 33.8
Entertainment One . . .240.3 -4.3 255.0 143.0
Euromoney Institu . . .1048.0 -15.0 1207.0 852.5
Gocompare.com Gro . . .90.0 0.0 99.0 58.5
Haynes Publishing . . . . .161.5 0.0 164.9 99.0
Informa . . . . . . . . . . . . .647.5 -4.5 697.5 586.5
ITE Group . . . . . . . . . . . .162.3 1.3 176.0 133.0
ITV . . . . . . . . . . . . . . . . .213.3 -5.6 243.7 154.0
Johnston Press . . . . . . . .20.3 -0.1 43.5 8.0
Moneysupermarket. . . .329.1 -1.1 351.0 233.5
Pearson . . . . . . . . . . . . .676.5 -6.0 975.0 573.0
Relx plc . . . . . . . . . . . . .1561.0 -3.0 1581.0 1192.0
Rightmove . . . . . . . . .3973.0 -15.0 4302.0 3173.0
Sky . . . . . . . . . . . . . . . . .972.5 -3.5 1028.0 750.5
STV Group . . . . . . . . . . .381.8 6.8 427.0 304.0
Tarsus Group . . . . . . . . .284.8 0.0 288.8 241.5
Weir Group . . . . . . . . .1909.0 -8.0 2050.0 992.0
Evraz . . . . . . . . . . . . . . .224.2 7.9 273.0 86.8
Ferrexpo . . . . . . . . . . . .168.6 0.2 175.6 25.5
BBA Aviation . . . . . . . . .303.5 -1.0 314.0 188.9
Clarkson . . . . . . . . . . . .2615.0 15.0 3010.0 1691.0
Fisher (James) & . . . . .1617.0 20.0 1679.0 1295.0
Royal Mail . . . . . . . . . . .421.2 -3.8 541.0 400.7
Admiral Group . . . . . . .1997.0 8.0 2260.0 1732.0
Beazley . . . . . . . . . . . . .425.4 -2.6 443.6 320.0
Direct Line Insur . . . . . .347.2 -0.2 399.9 333.3
esure Group . . . . . . . . .236.4 1.8 304.6 188.9
Hastings Group Ho . . . .271.3 0.4 278.0 165.0
Hiscox Limited (D . . . .1102.0 8.0 1106.0 900.5
Jardine Lloyd Tho . . . .1140.0 8.0 1154.0 840.5
Lancashire Holdin . . . . .663.5 -9.0 758.0 518.5
RSA Insurance Gro . . . .585.0 -1.5 605.0 446.0
Aviva . . . . . . . . . . . . . . .528.5 -3.5 544.0 346.2
JRP Group . . . . . . . . . . .129.0 -2.5 156.0 86.0
Legal & General G . . . . .245.0 -2.3 255.2 165.0
Old Mutual . . . . . . . . . . .198.5 -2.1 229.1 164.2
Trinity Mirror . . . . . . . . .118.0 2.5 129.3 73.5
UBM . . . . . . . . . . . . . . . .753.5 -11.0 766.5 560.7
WPP . . . . . . . . . . . . . . .1732.0 -20.0 1921.0 1476.0
ZPG Plc . . . . . . . . . . . . .366.6 3.6 394.0 240.0
Acacia Mining . . . . . . . .448.2 -1.3 599.0 262.3
Anglo American . . . . .1209.0 -10.5 1409.5 506.1
Antofagasta . . . . . . . . .826.0 -8.5 883.5 394.5
BHP Billiton . . . . . . . . .1228.0 -6.0 1480.5 727.5
Centamin (DI) . . . . . . . . .174.1 1.4 180.1 89.3
Fresnillo . . . . . . . . . . . .1552.0 -4.0 2008.0 907.0
Glencore . . . . . . . . . . . .313.6 0.5 344.7 128.1
Hochschild Mining . . . .279.7 1.8 313.7 90.5
Kaz Minerals . . . . . . . . .454.1 -0.7 592.0 116.2
Petra Diamonds Lt . . . .130.2 -3.1 171.6 100.0
Polymetal Interna . . .1005.0 13.5 1190.0 670.0
Randgold Resource . .7035.0 70.0 9715.0 5470.0
Rio Tinto . . . . . . . . . . .3186.5 -23.0 3679.5 1865.5
Vedanta Resources . . . .801.0 -9.0 1102.0 331.2
Inmarsat . . . . . . . . . . . .842.0 -8.5 1014.0 603.0
Vodafone Group . . . . . .206.7 -1.5 239.7 190.5
BP . . . . . . . . . . . . . . . . . .456.1 -1.5 519.3 337.5
Cairn Energy . . . . . . . . .203.4 -1.1 243.0 171.7
Nostrum Oil & Gas . . . .478.3 -6.7 518.0 203.0
Royal Dutch Shell . . . .2076.0 -20.0 2282.5 1644.0
Royal Dutch Shell . . . .2170.0 -14.5 2377.5 1655.0
Tullow Oil . . . . . . . . . . .228.0 -6.0 333.6 183.9
Amec Foster Wheel . . .532.5 1.0 619.5 406.7
Hunting . . . . . . . . . . . . .557.5 -7.5 640.0 267.5
Petrofac Ltd. . . . . . . . . .917.5 -1.5 952.5 685.5
Wood Group (John) . . .760.0 -0.5 894.5 589.5
Burberry Group . . . . . .1737.0 13.0 1817.0 1041.0
PZ Cussons . . . . . . . . . . .319.6 -1.5 372.6 294.2
Supergroup . . . . . . . . .1484.0 -2.0 1718.0 1184.0
AstraZeneca . . . . . . . .4910.0 -2.5 5220.0 3774.0
BTG . . . . . . . . . . . . . . . .582.5 -4.0 728.0 534.5
Dechra Pharmaceut . .1673.0 -1.0 1708.0 1021.0
Genus . . . . . . . . . . . . . .1752.0 27.0 2042.0 1417.0
GlaxoSmithKline . . . . .1657.0 -2.5 1722.5 1387.5
Hikma Pharmaceuti . .1944.0 -37.0 2676.0 1624.0
Indivior . . . . . . . . . . . . .322.1 0.0 369.6 147.3
Shire Plc . . . . . . . . . . .4638.0 -23.0 5323.0 3956.0
Vectura Group . . . . . . . .151.4 -1.3 177.3 126.8
Capital & Countie . . . . .287.7 -2.9 362.5 263.1
CLS Holdings . . . . . . . .1730.0 -40.0 1776.0 1163.0
Daejan Holdings . . . .6445.0 10.0 6790.0 4411.0
F&C Commercial Pr . . . .145.0 0.3 145.0 102.1
Grainger . . . . . . . . . . . .244.8 -1.3 256.1 193.1
Kennedy Wilson Eu . . .946.5 2.0 1164.0 888.5
NewRiver REIT . . . . . . .339.9 2.1 345.3 269.0
Safestore Holding . . . . .375.4 -3.6 400.5 311.9
Savills . . . . . . . . . . . . . .908.0 -13.0 931.5 548.5
St. Modwen Proper . . . .321.7 -3.3 349.4 222.2
UK Commercial Pro . . . .86.7 0.7 87.2 65.0
Unite Group . . . . . . . . .630.5 -6.0 663.5 543.5
Big Yellow Group . . . . .729.5 -1.0 886.5 635.0
British Land Comp . . . .604.5 -5.5 762.5 544.5
Derwent London . . . .2798.0 -14.0 3430.0 2257.0
Great Portland Es . . . . .643.0 -8.5 798.0 536.0
Hammerson . . . . . . . . .567.5 -3.5 602.5 468.6
Hansteen Holdings . . . .119.7 0.2 123.0 95.4
Intu Properties . . . . . . .277.5 -1.7 318.0 255.7
Land Securities G . . . .1044.0 -15.0 1202.0 910.0
LondonMetric Prop . . . .157.6 -2.2 166.8 134.9
Redefine Internat . . . . . .37.2 0.4 47.5 35.8
SEGRO . . . . . . . . . . . . . .452.5 -3.7 476.6 354.2
Shaftesbury . . . . . . . . .903.0 -12.0 994.5 825.0
Tritax Big Box Re . . . . . .143.5 -1.1 148.0 113.9
Workspace Group . . . . .773.5 -11.5 874.0 577.0
Aveva Group . . . . . . . .1951.0 1.0 2051.0 1522.0
Computacenter . . . . . .750.0 4.5 858.0 678.0
Fidessa Group . . . . . . .2528.0 36.0 2600.0 1891.0
Micro Focus Inter . . . .2305.0 27.0 2356.0 1416.0
Playtech . . . . . . . . . . . .928.0 -3.0 946.5 766.0
Sage Group . . . . . . . . . .628.0 -2.5 756.0 573.0
Softcat . . . . . . . . . . . . .399.0 5.0 399.0 280.0
Sophos Group . . . . . . . .272.1 0.5 290.0 175.0
AA . . . . . . . . . . . . . . . . .264.2 -1.4 307.3 209.9
Aggreko . . . . . . . . . . . . .881.5 -2.0 1286.0 765.0
Ashtead Group . . . . . .1642.0 -11.0 1751.0 814.5
Atkins (WS) . . . . . . . . .1950.0 410.0 2004.0 1200.0
Babcock Internati . . . . .885.5 3.5 1105.0 869.5
Berendsen . . . . . . . . . . .741.0 8.0 1355.0 724.6
Bunzl . . . . . . . . . . . . . .2301.0 -19.0 2436.0 1951.0
Capita . . . . . . . . . . . . . .558.5 -6.0 1098.0 452.4
Carillion . . . . . . . . . . . . .224.7 1.7 299.3 206.6
DCC . . . . . . . . . . . . . . .6940.0 -85.0 7220.0 5860.0
Diploma . . . . . . . . . . .1065.0 6.0 1083.0 731.0
Electrocomponents . . . .471.8 -1.6 504.0 242.6
Essentra . . . . . . . . . . . . .521.0 -4.0 891.0 382.9
Experian . . . . . . . . . . .1620.0 -8.0 1655.0 1232.0
G4S . . . . . . . . . . . . . . . .305.6 1.3 306.8 164.0
Grafton Group Uni . . . . .717.5 2.5 752.0 440.0
Hays . . . . . . . . . . . . . . . .155.9 -1.1 163.6 94.0
Homeserve . . . . . . . . . .563.5 -1.5 629.5 413.3
Howden Joinery Gr . . .429.2 -4.5 510.5 341.1
Intertek Group . . . . . . .3931.0 -3.0 3961.0 3038.0
Mitie Group . . . . . . . . . .223.0 1.1 290.0 180.4
Northgate . . . . . . . . . . .545.0 -5.0 565.0 306.5
Pagegroup . . . . . . . . . .427.7 -0.2 439.7 264.9
PayPoint . . . . . . . . . . .1048.0 23.0 1168.0 749.5
Paysafe Group . . . . . . . .461.1 -6.5 470.0 305.7
Rentokil Initial . . . . . . .246.3 -0.4 247.9 175.2
Serco Group . . . . . . . . . .114.3 -1.2 150.0 90.9
SIG . . . . . . . . . . . . . . . . . .112.1 0.8 143.4 87.2
Travis Perkins . . . . . . .1500.0 -14.0 1964.0 1313.0
Wolseley . . . . . . . . . . .4945.0 -75.0 5145.0 3524.0
Worldpay Group . . . . . .294.9 -0.5 311.5 255.9
British American . . . .5290.0 -10.0 5318.0 4072.0
Imperial Brands . . . . .3866.5 -0.5 4139.0 3345.0
Carnival . . . . . . . . . . . .4562.0 -16.0 4613.0 3259.0
Cineworld Group . . . . . .657.0 -5.5 664.5 497.2
Compass Group . . . . .1508.0 2.0 1548.0 1216.0
Domino's Pizza Gr . . . . .307.7 -1.1 396.9 305.6
easyJet . . . . . . . . . . . . .1017.0 -9.0 1556.0 873.5
FirstGroup . . . . . . . . . . .129.8 -2.2 133.0 88.7
Go-Ahead Group . . . . .1711.0 -16.0 2662.0 1706.0
Greene King . . . . . . . . .700.0 -1.5 903.5 653.0
GVC Holdings . . . . . . . .720.0 -13.5 769.0 512.0
InterContinental . . . .3888.0 -20.0 3937.0 2525.0
International Con . . . . .527.0 -2.0 571.0 343.9
Ladbrokes Coral G . . . . .129.5 0.3 162.0 106.1
Marston's . . . . . . . . . . . .133.9 -0.3 157.2 129.7
Merlin Entertainm . . . .476.2 -3.4 504.5 405.0
Millennium & Copt . . . .450.3 9.3 483.1 366.4
Mitchells & Butle . . . . . .243.9 -0.6 299.4 217.5
National Express . . . . . .357.1 -2.9 376.5 275.6
Paddy Power Betfa . .8475.0-125.0 9950.0 7895.0
Rank Group . . . . . . . . . .209.1 0.4 255.1 186.8
Restaurant Group . . . . .332.0 -1.5 427.4 256.9
Stagecoach Group . . . .207.0 -2.4 268.0 196.0
Thomas Cook Group . . . .84.3 -1.2 95.2 54.7
TUI AG Reg Shs (D . . . .1092.0 -14.0 1218.0 844.5
Wetherspoon (J.D. . . . .940.0 -5.0 989.5 663.0
Whitbread . . . . . . . . .3920.0 -38.0 4356.0 3391.0
William Hill . . . . . . . . . .285.6 -5.2 336.3 246.9
Wizz Air Holdings . . . .1645.0 4.0 1995.0 1415.0
4D Pharma . . . . . . . . . .452.9 12.9 1005.0 406.8
Abcam . . . . . . . . . . . . .826.0 0.5 927.0 590.5
Advanced Medical . . . .243.3 1.3 253.0 177.8
Amerisur Resource . . . . .21.0 0.0 32.0 20.0
ASOS . . . . . . . . . . . . . .5977.0 -68.0 6147.0 3298.0
BNN Technology . . . . . . .99.0 -3.0 168.0 51.5
Brooks Macdonald . . .1984.5 1.5 2041.0 1400.0
Camellia . . . . . . . . . .10799.0 294.0 11324.0 7510.0
Clinigen Group . . . . . . .791.0 -4.0 853.5 492.8
Conviviality . . . . . . . . . .267.3 -5.3 281.3 168.0
CVS Group . . . . . . . . . .1162.0 20.0 1196.0 646.0
Dart Group . . . . . . . . . . .531.0 15.0 676.5 358.5
EMIS Group . . . . . . . . . .901.5 14.0 1062.0 807.0
Faroe Petroleum . . . . . .102.0 2.0 111.8 61.5
Fevertree Drinks . . . . .1490.0 -15.0 1524.0 593.5
First Derivatives . . . . . .2711.0 -16.5 2749.0 1462.0
Gamma Communicati .491.0 0.0 528.0 365.3
GB Group . . . . . . . . . . .288.0 -5.0 349.0 215.0
Gooch & Housego . . . .1273.0 19.5 1311.0 834.0
Hotel Chocolat Gr . . . . .300.0 0.0 309.0 169.5
Hurricane Energy . . . . . .56.5 -0.3 59.0 9.8
Iomart Group . . . . . . . .295.0 -1.5 319.5 243.3
IQE . . . . . . . . . . . . . . . . .60.8 -0.3 61.3 16.3
James Halstead . . . . . .504.0 -6.0 514.5 379.0
Johnson Service G . . . . .117.0 -1.3 119.3 85.0
Keywords Studios . . . .683.0 36.0 687.5 213.5
M&C Saatchi . . . . . . . . .352.6 0.1 380.0 283.0
M. P. Evans Group . . . . .743.3 -10.8 780.0 393.0
Mulberry Group . . . . .1095.0 -7.5 1150.0 975.0
Next Fifteen Comm . . .400.0 16.0 417.5 233.5
Nichols . . . . . . . . . . . . .1880.0 13.0 1890.0 1225.0
Numis Corporation . . . .245.8 -0.8 286.3 180.5
Pan African Resou . . . . . .15.5 0.0 24.3 12.8
Patisserie Holdin . . . . . .310.3 -2.0 370.0 257.3
Polar Capital Hol . . . . . .359.8 10.5 390.0 270.0
Purplebricks Grou . . . .304.0 20.0 355.0 104.0
Redde . . . . . . . . . . . . . .152.8 1.5 206.5 138.5
Renew Holdings . . . . . .433.8 -1.3 485.0 295.3
RWS Holdings . . . . . . . .310.0 -4.3 360.5 203.5
Scapa Group . . . . . . . . .351.0 -2.8 377.0 209.8
Sirius Minerals . . . . . . . . .21.0 -1.0 45.5 14.5
Smart Metering Sy . . . .583.0 1.5 615.0 395.0
Solgold . . . . . . . . . . . . . .44.0 0.5 44.0 2.9
Sound Energy . . . . . . . . .76.3 -2.3 97.0 15.4
Staffline Group . . . . . . .1187.0 36.0 1297.0 748.5
Telford Homes . . . . . . . .367.0 3.0 371.3 262.0
Telit Communicati . . . .348.8 -2.0 351.0 192.8
Thorpe (F.W.) . . . . . . . . .325.1 -2.9 348.1 210.0
Watkin Jones . . . . . . . .154.0 4.0 160.0 100.3
Young & Co's Brew . . .1362.0 2.0 1364.4 1155.0
Young & Co's Brew . . . .995.0 0.0 1065.0 825.0
Atkins (WS) . . . . . . . . . . . . . . .1950.0 26.6
Metro Bank . . . . . . . . . . . . . . . .3384.0 4.0
Evraz . . . . . . . . . . . . . . . . . . . . . .224.2 3.7
TalkTalk Telecom G . . . . . . . . . . .195.4 3.1
Spirax-Sarco Engin . . . . . . . . .4893.0 2.6
PayPoint . . . . . . . . . . . . . . . . . .1048.0 2.2
Millennium & Copth . . . . . . . . . .450.3 2.1
Aldermore Group . . . . . . . . . . . .227.3 2.0
RPC Group . . . . . . . . . . . . . . . . .796.5 1.9
Genus . . . . . . . . . . . . . . . . . . . .1752.0 1.6
Allied Minds . . . . . . . . . . . . . . . .270.4 -11.3
Next . . . . . . . . . . . . . . . . . . . . .4166.0 -3.6
Drax Group . . . . . . . . . . . . . . . . .314.2 -3.4
Dixons Carphone . . . . . . . . . . . .308.2 -3.0
IP Group . . . . . . . . . . . . . . . . . . .152.2 -2.9
ITV . . . . . . . . . . . . . . . . . . . . . . . .213.3 -2.6
Tullow Oil . . . . . . . . . . . . . . . . . .228.0 -2.6
Petra Diamonds Ltd . . . . . . . . . .130.2 -2.3
CLS Holdings . . . . . . . . . . . . . . .1730.0 -2.3
TP ICAP . . . . . . . . . . . . . . . . . . . .454.4 -2.2
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 . . . . . . .104.07 -0.04 105.4 103.3
Tsy 8.750 17 . . . . . . .103.49 -0.01 111.8 103.4
Tsy 5.000 18 . . . . . .104.54 0.01 109.1 104.5
Tsy 4.500 19 . . . . . .108.53 0.02 112.2 108.4
Tsy 3.750 19 . . . . . . .108.86 0.02 111.6 108.7
Tsy 4.750 20 . . . . . . .113.54 0.04 117.0 113.3
Tsy 2.500 20 . . . . . .372.89 0.09 374.3 359.3
Tsy 8.000 21 . . . . . . .132.37 0.11 138.1 131.9
Tsy 4.000 22 . . . . . . .117.83 0.17 121.3 116.4
Tsy 1.875 22 . . . . . . .128.10 0.35 129.8 120.8
Tsy 2.250 23 . . . . . . .110.43 0.29 113.6 105.9
Tsy 0.125 24 . . . . . . .119.08 0.45 120.3 108.9
Tsy 2.500 24 . . . . . .371.07 0.44 374.5 338.6
Tsy 5.000 25 . . . . . .132.48 0.35 138.1 128.5
Tsy 4.250 27 . . . . . .132.06 0.53 138.3 125.3
Tsy 1.250 27 . . . . . . .139.51 0.71 142.5 125.1
Tsy 6.000 28 . . . . . .153.28 0.53 161.8 146.8
Tsy 4.125 30 . . . . . . .374.57 0.77 382.1 328.9
Tsy 4.750 30 . . . . . .143.20 0.60 153.0 133.8
Tsy 4.250 32 . . . . . . .138.52 0.68 148.9 128.2
Tsy 1.250 32 . . . . . . .157.78 1.05 162.2 135.8
Tsy 0.125 36 . . . . . . .146.12 1.34 150.0 119.5
Tsy 4.250 36 . . . . . .143.50 0.79 155.7 130.1
Tsy 4.750 38 . . . . . .156.72 0.86 170.9 141.1
Tsy 0.625 40 . . . . . .169.81 1.54 175.2 136.4
Tsy 4.500 42 . . . . . .158.62 1.01 174.5 140.4
Tsy 3.500 45 . . . . . .139.66 1.14 154.6 121.2
Tsy 4.250 46 . . . . . .160.00 1.16 177.1 139.1
Tsy 4.025 49 . . . . . .166.33 1.18 185.4 143.2
Tsy 0.500 50 . . . . . .200.12 2.28 208.3 149.4
Tsy 0.250 52 . . . . . .196.40 2.39 205.0 142.9
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7282.69 -40.23 -0.55
FTSE 250 . . . . . . . . . . . . . . . . . . . . 18954.24 -17.59 -0.09
FTSE All-Share . . . . . . . . . . . . . . . . 3970.98 -19.02 -0.48
FTSE AIM All-Share . . . . . . . . . . . . . 929.04 -0.38 -0.04
S&P 500 . . . . . . . . . . . . . . . . . . . . . 2358.84 -3.88 -0.16
Dow Jones I.A. . . . . . . . . . . . . . . . 20650.21 -13.01 -0.06
Nasdaq Composite . . . . . . . . . . . . 5894.68 -17.06 -0.29
Xetra DAX . . . . . . . . . . . . . . . . . . . 12257.20 -55.67 -0.45
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 5085.91 -36.60 -0.71
Swiss Market Index . . . . . . . . . . . . 8633.86 -25.03 -0.29
ISEQ Overall Index. . . . . . . . . . . . . . 6611.27 -47.31 -0.71
FTSEurofirst 300. . . . . . . . . . . . . . . 1494.48 -9.28 -0.62
Hang Seng . . . . . . . . . . . . . . . . . . 24261.48 149.89 0.62
Shanghai Composite . . . . . . . . . . . 3222.51 12.28 0.38
Straits Times . . . . . . . . . . . . . . . . . . 3187.51 12.40 0.39
ASX All Ordinaries . . . . . . . . . . . . . 5909.70 5.90 0.10
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
7282.69
40.23
FTSE 250
18954.24
17.59
FTSE ALL SHARE
3970.98
19.02
DOW JONES
20650.21
13.01
NASDAQ
5894.68
17.06
S&P 500
2358.84
3.88
BATS UK 100
12356.92
83.33
BATS UK 250
17216.12
59.25
CONSTRUCTION & MATERIALS
GENERAL RETAILERS
INDUSTRIAL METALS & MINING
CITYAM.COM
26 MARKETS TUESDAY 4 APRIL 2017

CITYAM.COM
TUESDAY 4 APRIL 2017
FEATURE
27
OFFICE POLITICS
Is your
workplace AI
ethical, or
even useful?
Kriti Sharma says it’s no good having a
bot that only recognises male voices
THE ARTIFICIAL intelligence –
or AI – revolution is already
well underway. While it feels
like almost every week
another report comes out
speculating about an imagined,
doomed future of robots stealing our
jobs, artificial intelligence and chatbot
technology is already seamlessly
integrated into our daily lives without
us even noticing.
Every time you ask Siri where the
nearest post office is or ask Alexa to play
Ed Sheeran’s Divide on loop, every time
your iPhone suggests your next word to
text and Google predicts your search,
this tech is motoring away in the background,
making hundreds of processes
around you quicker and easier.
So what does AI mean for the future
of our workplaces? Everything – if we
use it right.
Given that the AI market is forecast to
grow from $643.7m in 2016 to $36.8bn
by 2025, companies are desperate to
make the most of the technology. It is
already unlocking the newly productive,
efficient and hassle-free
workplaces of the future, and has the
potential to do so much more, if we harness
it in the right way. Here are three
fundamental questions we should ask
about any AI before we create or deploy
it.
1. Is it actually useful?
With companies like Spotify, Facebook
and Google investing huge amounts in
bot development and even appointing
senior AI executives, it’s fair to say that
bots and AI have firmly entered the
mainstream, and it seems like every
AI can do admin
tasks for us. But
have we thought
enough about the
legal and ethical
impacts of it?
brand is trying to get in on the action.
This is all well and good, but we must
make sure we are channelling this technology
to solve actual problems. AI
could transform offices by handling our
mundane admin tasks so we can focus
our energy on more rewarding work. A
Harvard Business Review survey from
late last year found that managers
across all levels spend more than half
their time on administrative tasks,
from juggling illness and flexible working
requests, to making sure data entry
and reports are consistent in standard –
all things machines could take over.
2. Where is the data behind it coming
from?
AI is only as good as the data that we
feed it. We all saw what happened to
Microsoft’s Twitter chatbot Tay – the
RUN LIKE THE
WIND
Zombies, Run!
Free
Stick your
headphones in,
start running
and this app will
transport you to
some
alternative
horror where
you’re being
chased by
zombies. Each
“immersive
audio drama”
puts you “at the
centre of your
own zombie
adventure
story”. The
realism of the
terror will get
you fighting fit.
It sounds bizarre
but it works –
several
members of the
City A.M. team
have been
transformed.
classic artificial intelligence horror
story of the robot who, fuelled by the
online trolls whose language it fed on,
turned into a racist bigot.
We have the opportunity to create this
new world without any of the biases –
racial, gender, or otherwise – that exist
in the real world. It’s our responsibility
to invest time and capital in careful consideration
of the ethical, legal and societal
impacts of this new technology.
Leading thinkers and AI developers are
urging the government to ensure ethical
codes are adhered to, to avoid reinforcing
existing societal bias.
3. Was it built by a diverse team?
The best way to avoid bias, of course, is
to ensure that a diverse team is building
this technology in the first place – not
always an easy thing to do in the
famously male-dominated tech industry,
but one that we must be constantly
committed to.
Technology falls short when it is not
built inclusively – the first voice-activated
software didn’t recognise female
voices because it was only tested on its
all-male programming team, and early
cameras favoured picking up white skin
tones over non-white ones.
The fourth industrial revolution is
already here, and its potential to transform
our workplaces – and our world –
is limitless. But we owe it to the future
generations who will be using this tech
to do it right.
£ Kriti Sharma is vice president of bots and
AI at Sage, inventor of Pegg, the world’s
first accounting chatbot, and was recently
named in Forbes’ 30 Under 30. You can
hear her discuss the future of AI at Sage
Summit UK on 5-6 April.

28 LIFE&STYLE TUESDAY 4 APRIL 2017
CITYAM.COM
MOTORING
BY MOTORINGRESEARCH.COM FOR CITY A.M.
: @city_am
: @cityamlife
The beast is back
Tim Pitt drives Jaguar’s flagship
V8 super saloon: the 550hp XJR
The Jaguar XJR was a staple
super saloon in the 1990s,
but its star gradually faded,
eclipsed by ever-faster rivals
from Germany. Now this Brit
bruiser is back, armed with a thunderous
5.0-litre V8 from the F-Type R.
Time to get reacquainted.
With subtle spoilers, quad tailpipes
and 20-inch forged alloy wheels, the
XJR is certainly menacing in the
metal (lightweight aluminium, in
case you’re asking). However, its
styling remains divisive: the front
end is generic modern Jag, while its
elegant, coupe-like roofline is countered
by an awkward-looking rear
overhang.
There’s little to complain about
once cocooned in leather-lined luxury,
though. Forget games of ‘spot
the Ford switchgear’, the latest XJR
has Jaguar’s new InControl Touch Pro
media system, plus configurable TFT
dials with the option of a widescreen
map – just like Audi’s Virtual Cockpit.
The burr walnut of yesteryear is
banished, too, replaced by gloss-black
veneers and understated ambient
lighting.
Fortunately, there’s nothing understated
about the XJR’s performance.
With 550 supercharged horses just
an ankle-flex away, 0-62mph is dispatched
in 4.6 seconds. Or at least, it
is on dry tarmac. On rain-soaked
March roads, the Jaguar spins its rear
wheels with hilarious ease. Find an
Autobahn, though, and you can leave
those 155mph-limited Germans for
dust, blasting all the way to 174mph.
There’s no escaping the Jaguar’s
JAGUAR XJR
PRICE: £91,775
0-62MPH:
4.6 SECS
TOP SPEED:
174MPH
CO2 G/KM:
264G/KM
MPG COMBINED:
25.4MPG
sheer size (at 5,127mm, it’s longer
than a Range Rover), but it changes
direction like a hot hatch. The steering
– 10 per cent quicker than standard
– is nicely weighted, while
adaptive suspension adjusts the
damper settings up to 100 times per
second, keeping it flat and composed
– even when you unleash your inner
hooligan.
The downside to such agility is a
rather brittle ride; the XJR thumps
over speed humps and jitters on uneven
surfaces. Frankly, I was having
too much fun to care, but passengers
would doubtless be happier in a
lesser XJ. The fact you can’t opt for a
limo-spec, long-wheelbase XJR only
reinforces the impression that this
car puts its driver first.
It’s also a car defined by its engine.
The supercharged V8 doesn’t deliver
the aural fireworks of the F-Type R,
but those attention-seeking snaps,
crackles and pops would seem unbecoming
in a luxury saloon. Instead,
the XJR is mostly quite muted, certainly
around town. Only when you
put the hammer down does reserved
rumble turn to red-blooded roar.
Opportunities for full-bore acceleration
are rare, particularly in the
south-east of England on a damp day,
but the almighty torque of that V8
makes for effortless progress. The XJR
would make light work of a schlep to
the south of France – provided you
could stomach the fuel bills.
Ah yes, there had to be a catch. Any
petrol-powered super saloon has a
healthy appetite for V-Power, and
while Jaguar quotes 25.4mpg, I managed
mid-teens on a drive through
London’s suburbs and beyond into
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
THE VERDICT
hhhhi
hhhhi
hhhii
hhhhi
Surrey. Then again, at £91,775, the
XJR looks relatively good value
against rivals from BMW and Mercedes-AMG
– both of which cost well
into six figures.
Ultimately, the ageing XJ is outgunned
by its German adversaries –
particularly the new 7 Series and S-
Class – yet that scarcely seems to matter.
The line between flaws and
character-defining quirks is a fine
one in cars of this quality and many,
myself included, will simply prefer
the raffish charms of the Jag to its
more austere (and more obvious) rivals.
Jaguar’s own 340hp XJ R-Sport remains
a better all-rounder. It’s £30k
cheaper, rides more comfortably and
is only 1.3 seconds slower to 62mph.
But the XJR defies such rational logic.
This Jekyll-and-Hyde machine seduces
with luxury then startles with
its performance. I’ll take mine in red
with a company fuel card, please.
Tim Pitt works for motoringresearch.com
NOT CONVINCED? CHECK OUT THESE ALTERNATIVES...
AUDI S8 BMW M760LI XDRIVE V12 MERCEDES-AMG S 63 L
PRICE: £82,040
0-62MPH:
4.1 SECS
TOP SPEED: 155MPH
CO2 G/KM: 216G/KM
MPG COMBINED: 30.1MPG
THE VERDICT:
DESIGN hhhii
PERFORMANCE hhhhi
PRACTICALITY hhhii
VALUE
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PRICE: £132,560
0-62MPH:
3.7 SECS
TOP SPEED: 155MPH
CO2 G/KM: 294G/KM
MPG COMBINED: 22.1MPG
THE VERDICT:
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PERFORMANCE hhhii
PRACTICALITY hhhii
VALUE
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PRICE: £124,095
0-62MPH:
4.4 SECS
TOP SPEED: 155MPH
CO2 G/KM: 237G/KM
MPG COMBINED: 28.0MPG
THE VERDICT:
DESIGN hhhhh
PERFORMANCE hhhhi
PRACTICALITY hhhii
VALUE
hhhii

CITYAM.COM TUESDAY 4 APRIL 2017 SPORT 29
FOOTBALL
Conte’s mistake has given Spurs
fresh hope of catching Chelsea
FOOTBALL
COMMENT
Trevor
Steven
ANTONIO Conte has made
few mistakes in his first
year at Chelsea, but something
he said in the aftermath
of last month’s win
at Stoke may have sown the seeds of
Saturday’s home defeat by Crystal
Palace.
Ten points clear with 10 games to
play and seemingly bound for the Premier
League title, Conte spoke for the
first time about the number of points
his team needed to clinch the trophy.
I think the Italian was wrong to do
that. The target should only ever be
the next match, and it hinted at a
lapse in focus that came home to
roost when the Eagles visited Stamford
Bridge at the weekend.
Now we have a title race again.
When you can see the finishing line,
sometimes it can work against you. It
can breed a little bit of complacency
in teams, even if only on a subconscious
level.
I see a lot of parallels with the 1985-
86 season, when our Everton side led
Liverpool by eight points in early
March but wobbled slightly. In the
end a Kenny Dalglish goal at
Chelsea on the final Saturday
of the season swung it Liverpool’s
way.
Chelsea’s lead is now
down to seven points
and it feels like a
self-inflicted
wound. The
Palace game
was one they
should have
won, but when
they were asked
the question they
faltered.
MOMENTUM
Tottenham, mean-
RUGBY UNION
Wasps prove Aviva’s status as English bogey ground
The Dublin Grand
Slam graveyard
was the ace up
Leinster’s sleeve,
writes Bob Baker
THE FIRST half of Saturday’s
European Champions Cup
quarter-final at Dublin’s Aviva
Stadium saw Wasps caught like
rabbits in the headlights of Leinster’s
express locomotive, before being
struck 32-17.
It is relatively inexplicable how a
location can do so much to favour or
work against a team, but credence
must be given to the role that
Ireland’s home ground played only a
while, aren’t faltering at all, and momentum
is everything at this time of
the season.
Spurs look like they they’ll win
every time they take to the field at
the moment. They’re the only
team in the chasing pack with the
necessary grit to catch Chelsea –
and who seem to believe it
can be done.
They have kept their
winning run going despite
the injury to
Harry Kane, which
has proven to them
that their form
and conviction is
not dependent on
Conte (left) saw his
Chelsea side lose at
home to Palace (above)
fortnight after England’s Grand Slam
aspirations were extinguished on the
same pitch.
Leinster’s Ireland contingent
would have drawn confidence
from their recent experience
while the likes of Joe
Launchbury, Elliot Daly,
James Haskell and
Nathan Hughes
returned to the scene of
severe disappointment.
With Wasps finding
themselves on the
receiving end of an
unrelenting opening
barrage, the men from
Leinster ensured that any hopes
of an English club creating a
memory worthy of scrap-book
inclusion were snuffed out.
There was a sense that it was not
going to be Wasps’ day, a sense that
one player, even if he is their top
scorer.
Tottenham look better equipped to
go the distance this season, having ultimately
failed to sustain their pursuit
of Leicester in the final weeks of last
term.
They have more experience as a result
of that campaign, and they also
have more depth to their squad, with
fringe players such as Heung-Min Son
showing they have the right mentality
to come in and do a job.
PIVOTAL
Chelsea now face a pivotal spell, starting
with the visit of Manchester City
on Wednesday, and I fully expect
them to drop more points during the
next three games.
While they also have to go to Manchester
United later this month, Spurs
Danny Cipriani was one
of the Wasps stars to
struggle in Dublin
the men in black and gold
unfortunately seemed to have
bought into relatively early in
proceedings.
A number of champagne
players including Danny
Cipriani resembled a
sickly prosecco,
justifying their noninclusion
in the
national squad and
similarly their likely
omission from a tour with the
British and Irish Lions this summer.
Wasps’ best performers were those
with no meaningful negative
associations between place and past
performance.
have a trio of winnable games ahead
against Swansea, Watford and
Bournemouth.
City remain a work in progress and
defensively suspect but they have
enough threat to pose problems for
Conte’s men and they’ll be desperate
for all three points, having only drawn
at Arsenal on Sunday.
Chelsea really need to win to steady
the ship; if they were to lose two fixtures
at Stamford Bridge in the space
of five days they could be completely
punctured. How they respond will tell
us an awful lot about them. But if I
was betting man, with the odds as
they are, I’d be more inclined to take
a punt on Tottenham.
Trevor Steven is a former England footballer
who has played at two World Cups
and two European Championships.
@TrevorSteven63
Kurtley Beale was phenomenal,
and for all of the Wallabies’ trips to
Ireland, Australian Beale has only
been involved once, and in only a
bench-warming capacity at that.
Hooker Tommy Taylor, who
travelled as a reserve with England,
tackled admirably and toiled with
vigour while Jimmy Gopperth, who
himself used to wear the colours of
Leinster, executed a fine individual
try, reaching behind his head to dot
down from the unorthodox inverted
turtle position.
The arena will face a stern test
later this month when Saracens take
on Munster in the Champions Cup
semi-final. For now, Dublin’s Aviva
continues to commendably serve its
purpose for both province and
country in being the bogiest of
grounds for its Anglo-Saxon visitors.
@bobbaker1989
RESULTS
FOOTBALL
VANARAMA NATIONAL LEAGUE
Lincoln City ...........(0) 2 Dag & Red ..................(0) 0
Whitehouse 47
Rhead 68 Att: 7,173
P W D L F A GD Pts
Lincoln City ...................39 25 7 7 74 36 38 82
Tranmere ........................39 24 7 8 58 32 26 79
Forest Green ................40 22 9 9 80 50 30 75
Dag & Red .....................41 23 4 14 68 48 20 73
Aldershot .......................41 20 11 10 57 34 23 71
Dover ................................40 21 6 13 74 60 14 69
Barrow ............................41 18 14 9 62 43 19 68
Gateshead .....................41 18 13 10 66 42 24 67
Macclesfld .....................38 18 6 14 54 44 10 60
Wrexham .......................41 14 12 15 39 51 -12 54
Eastleigh ........................41 13 14 14 52 56 -4 53
Boreham Wood ..........41 13 13 15 42 38 4 52
Chester FC ....................40 14 10 16 59 56 3 52
Sutton Utd ....................40 13 10 17 47 54 -7 49
Guiseley ..........................41 13 10 18 47 60 -13 49
Bromley ..........................40 14 7 19 45 61 -16 49
Solihull Moors .............41 13 9 19 55 62 -7 48
Maidstone Utd ............39 13 8 18 51 67 -16 47
Braintree Town ...........41 12 9 20 47 67 -20 45
Woking ............................41 12 8 21 58 74 -16 44
Torquay ...........................41 11 10 20 45 56 -11 43
York...................................40 9 15 16 47 61 -14 42
N Ferriby Utd ...............41 11 3 27 27 69 -42 36
Southport ......................40 9 7 24 45 85 -40 34
CRICKET
MCC UNIVERSITY MATCHES—Lancashire v
Cambridge MCCU (Fenner’s): Lancashire 338-6dec. (88.0
overs; A L Davies 80, S J Croft 78, J Clark 64, D J Vilas 58)
and 120-7dec. (32.0 overs; A L Davies 50no; A P Barton
5-31). Cambridge MCCU 62 (43.0 overs; J M Anderson
5-10) and 56 (37.4 overs). .
MCC UNIVERSITY MATCHES—Essex v Durham MCCU
(Chelmsford): Essex 333 (85.4 overs; A J Wheater 102, N L
J Browne 66, A P Beard 58no). and 203-2 (42.0 overs; N L
J Browne 113no) Durham MCCU 187 (76.1 overs; J A
Porter 4-35).
MCC UNIVERSITY MATCHES—Hampshire v Cardiff
MCCU (The Ageas Bowl): Hampshire 289 (63.3 overs; M
A Carberry 100, S M Ervine 58). and 271-6 (66.0 overs; J
M Vince 90, T P Alsop 62) Cardiff MCCU 98 (36.3 overs).
MCC UNIVERSITY MATCHES—Northamptonshire v
Loughborough MCCU (Northampton): Northamptonshire
435-6dec. (83.0 overs; R I Newton 166, A M Rossington
117, J J Cobb 63no). Loughborough MCCU 468-7 (116.0
overs; N R Kumar 141, C O Thurston 126, S T Evans 69no, R
G White 69, Saif Zaib 4-110).
MCC UNIVERSITY MATCHES—Warwickshire v Oxford
MCCU (The Parks): Warwickshire 285-4dec. (86.0 overs;
I J L Trott 130, W T S Porterfield 89). and 109-1 (37.0
overs) Oxford MCCU 215 (67.4 overs).
MCC UNIVERSITY MATCHES—Leeds/Bradford MCCU
v Yorkshire (Headingley Carnegie): Leeds/Bradford
MCCU 137 (64.1 overs). and 40-0 (11.0 overs) Yorkshire
543-5dec. (120.0 overs; A Lyth 194, A Z Lees 100, G S
Ballance 72, J A Leaning 64no).
NETBALL
VITALITY SUPERLGE: Celtic Dragons 45 Loughborough
Lightning 65, Manchester Thunder 59 Hertfordshire 50.
SPEEDWAY
SGB Premiership: Wolverhampton 45 Leicester 44
TENNIS
WTA TOUR FAMILY CIRCLE CUP (Charleston, South
Carolina, USA)—Women’s Singles 1st rnd: N Osaka (Jpn)
bt J Larsson (Swe) 6-7 (4-7) 6-4 6-2, K Bondarenko (Ukr)
bt E Rodina (Rus) 6-4 7-5, J Ostapenko (Lat) bt A Bogdan
(Rom) 6-4 6-2, A Petkovic (Ger) bt L Arruabarrena (Spa)
7-5 6-2, O Jabeur (Tun) bt M Erakovic (Nzl) 6-4 6-1,M Puig
(Pur) bt (16) K Siniakova (Cze) 4-6 6-2 4-1 ret, A Riske
(USA) bt K Day (USA) 7-5 4-6 6-0.
WTA ABIERTO GNP SEGUROS (Monterrey, Mexico)—
Women’s Singles 1st rnd: D Vekic (Cro) leads P Maria Tig
(Rom) 6-4 5-1, J Boserup (USA) bt N Hibino (Jpn) 6-0 6-2,
R Zarazua (Mex) leads (3) C Garcia (Fra) 6-4 1-2, N Broady
(Gbr) bt C Cartan Bellis (USA) 7-6 (9-7) 6-4.
TODAY’S DIARY
(7.45pm unless stated)
Premier League
Burnley v Stoke ..................................................................................................
Leicester v Sunderland....................................................................................
Man Utd v Everton (8pm) ..............................................................................
Watford v West Brom .....................................................................................
Sky Bet Championship
Aston Villa v QPR ..............................................................................................
Barnsley v Cardiff .............................................................................................
Brentford v Leeds ..............................................................................................
Brighton v Birmingham ...................................................................................
Derby v Fulham ...................................................................................................
Ipswich v Wigan ................................................................................................
Preston North End v Bristol City ................................................................
Reading v Blackburn (8pm) ..........................................................................
Rotherham v Sheffield Wednesday ...........................................................
Wolverhampton v Nottingham Forest ......................................................
Sky Bet League One
Charlton v Milton Keynes Dons ...................................................................
Rochdale v Port Vale ........................................................................................
Shrewsbury v Millwall .....................................................................................
Southend v Bolton ............................................................................................
Ladbrokes Scottish Premiership
Aberdeen v Inverness CT ...............................................................................
Ross County v Dundee .....................................................................................
Ladbrokes Scottish League One
Albion v Queen’s Park ......................................................................................
Vanarama National League: Southport v Macclesfield,
Tranmere v Sutton Utd, York v Bromley.
Vanarama National League North: Alfreton Tn v
Stalybridge, Brackley v FC Halifax, Nuneaton v Gloucester.
Vanarama National League South: Poole Tn v
Hungerford Tn.
CRICKET
First Twenty20 International: Sri Lanka v Bangladesh
(Colombo, 2.30).
TENNIS
WTA Abierto GNP Seguros (Monterrey, Mexico).
WTA Tour Family Circle Cup (Charleston, South Carolina,
United States of America).

30 SPORT TUESDAY 4 APRIL 2017
SPORT
GOLF
Thompson TV
heartache fuels
row over rules
FRANK DALLERES
@frankdalleres
GOLF chiefs are facing renewed
scrutiny of the game’s rules on the
eve of the Masters following the
bizarre chain of events that deprived
American Lexi Thompson of her
second Major title.
Thompson, 22, was reduced to
tears at the ANA Inspiration on
Sunday when she was informed,
while leading by two shots with six
holes to play, that she had been
penalised four strokes.
The sanction related to an incident
almost 24 hours earlier, in which she
incorrectly replaced a marked ball,
that was missed by course officials
but investigated following an email
from a television viewer.
World No4 Thompson composed
herself enough to tie with Ryu So-
Yeon and force a play-off, only to lose
to the South Korean at the first extra
hole at Mission Hills in California.
Tiger Woods echoed widespread
disbelief that an armchair pundit
Thompson was penalised after a viewer
saw her infringement and emailed in
had been able to wield such
influence over the outcome of one of
the most prestigious and lucrative
events on the women’s LPGA tour.
“Viewers at home should not be
officials wearing stripes,” the former
men’s No1 wrote on social media.
Justin Thomas, a three-time
winner on the PGA Tour this season,
added: “Whatever number this is
that people can call in [sic], it needs
to go away.”
Thompson’s initial reaction to
being told of her four-stroke penalty
– two shots for the offence and two
more for signing an incorrect
scorecard – was to respond: “Is this a
joke?”
She added after the tournament: “I
did not intentionally do that, so to
the officials or whoever called in,
that was not my purpose. I didn’t
even realise I did that.”
Ryu admitted to mixed emotions
at winning the tournament, saying:
“I cannot believe the situation. It
hurts me as well, it is a weird feeling
but at the same time I am proud of
myself.”
LPGA rules official Sue Witters
said she felt the tour had little choice
but to punish Thompson once they
became aware of the infringement.
“I can’t go to bed knowing that I
let a rule slide,” she added. “It’s a
hard thing to do, and it made me
sick to be honest.”
FOOTBALL
FA set to quiz
Moyes over
slap remark
ROSS MCLEAN
@rossmcleanRMAC
SUNDERLAND boss David Moyes could
still face punishment from the Football
Association (FA) despite issuing a public
apology for suggesting he might slap a
female reporter at the end of an
interview.
The FA have written to the former
Manchester United, Real Sociedad and
Everton manager and asked him to
explain his behaviour during the
exchange, which occurred after his side’s
goalless draw with Burnley on 18 March.
In the incident, Moyes was asked
whether the presence at games of Black
Cats owner Ellis Short exerted any
additional pressure on him. He
dismissed the notion and, after the
interview finished, said: “It was getting a
wee bit naughty at the end there, you
just watch yourself.
“You still might get a slap even though
you’re a woman. Careful the next time
you come in.”
The exchange was captured on film
and emerged yesterday. The BBC
journalist in question, Vicki Sparks, is
said to have accepted his apology, but
Moyes, whose relegation-threatened
side play defending Premier League
champions Leicester tonight, may still
face FA action. He could even receive a
ban given the nature of the threatening
language used.
“There will be anger about this and I
deeply regret what I’ve done,” Moyes,
who insists he has not considered
resigning, said yesterday. “It was the
heat of the moment. The business we’re
GOLF
TROUBLIN’ IN DUBLIN Wasps’ woes
underline Aviva Stadium’s status as
bogey ground for English teams PAGE 29
in, sometimes you only have seconds to
think and answer. It was the wrong thing
to do.
“I have said that I regret it. I have
spoken to the girl, who I apologised to
and she accepted it. I rang her on
the Monday morning, she was fine and
accepted it.
“I spoke to [chief executive] Martin
[Bain] immediately after it happened. I
spoke to Ellis about it on the Monday
morning as well. They were aware of it
two weeks ago, but for some reason it
has come out now.”
It is believed that Moyes is unlikely to
lose his job over the matter, although his
actions have courted considerable
outrage, including criticism from
domestic violence charities, women’s
groups and Parliament.
Shadow sports minister Dr Rosena
Allin-Khan MP said: “If you look at the
fact that he wouldn’t have said that to a
male reporter, and I truly believe that, I
think the comments, his behaviour and
attitude were sexist.
“With the FA, part of what they have
been criticised for in the past is not
tackling sexism and other forms of
discrimination, which needs to be
stamped out across sport.
“Fundamentally it’s a male-dominated
environment that women find incredibly
difficult to break into and comments like
this do nothing to encourage women.”
Bottom of the table Sunderland have
endured a miserable season and have
won just one of their last 14 matches
across all competitions. The Wearsiders
sit eight points adrift of safety with just
nine matches of the campaign to go.
Day ready for Masters battle
after traumatic start to 2017
ROSS MCLEAN
@rossmcleanRMAC
FORMER world No1 Jason Day
insists he is ready to move on from
a traumatic start to the season and
rediscover his Major-winning form
at this week’s Masters in Augusta,
which starts on Thursday.
An emotional Day withdrew
from last month’s WGC-Dell
Technologies Match Play after just
six holes of his opening match in
order to return to his mother’s
side as she underwent surgery for
lung cancer.
“Golf was the last thing that I
was ever thinking about when this
first came about,” said the
Australian. “I’m in a much better
place now. I feel happier to be on
the golf course and I’m enjoying
myself out here a lot more than I
was the last month or two.
“My mind was so far away from
golf that I was hitting shots out
there on the golf course and I’m
like, ‘what am I doing?’. It would
be a wedge from 140 yards but I’d
be 20 yards out. I’m coming into
this week focused a lot better.”
Day, whose sole Major victory
was the PGA Championship in
2015, has recorded just one top-10
finish in five PGA Tour starts so far
this year.
ATHLETICS
Coe’s apology after Fancy Bears
hack into athletes’ medical files
FRANK DALLERES
@frankdalleres
ATHLETICS chiefs the IAAF are braced
for a leak of confidential medical
data after revealing that they have
fallen victim to a cyber attack from
hackers Fancy Bears.
The hackers made headlines last
year when they published a list of
therapeutic use exemptions (TUEs)
relating to some of sport’s biggest
names, including Sir Mo Farah and
Sir Bradley Wiggins, obtained by
illegally accessing the database of
the World Anti-Doping Agency.
IAAF president Lord Coe said TUE
files had again been compromised,
CITYAM.COM
despite the organisation’s efforts to
strengthen their cyber security, and
issued an apology to athletes.
“Our first priority is to the athletes
who have provided the IAAF with
information that they believed
would be secure and confidential,”
said Coe. “They have our sincerest
apologies and our total commitment
to continue to do everything in our
power to remedy the situation and
work with the world’s best
organisations to create as safe an
environment as we can.”
Fancy Bears is thought to be a
Russian group whose stated
motivation is to expose what it says
is hypocrisy within sport.

CITYAM.COM TUESDAY 4 APRIL 2017 SPORT 31
IT’S BACK ON And it’s because
Antonio Conte got ahead of himself,
writes Trevor Steven PAGE 29
FOOTBALL
Pochettino preaches belief in bid to catch Chelsea
ROSS MCLEAN
@rossmcleanRMAC
TOTTENHAM boss Mauricio
Pochettino has implored his side to
believe that they can reel in runaway
Premier League leaders Chelsea and
secure their first top-flight title since
1961.
Spurs trimmed Chelsea’s
advantage at the summit to seven
points on Saturday as they beat
Burnley at Turf Moor and the Blues
stumbled at home, slipping to a
surprise loss against Crystal Palace.
The north Londoners play Swansea
at the Liberty Stadium tomorrow as
Chelsea host Manchester City, while
they could be just a point behind
their rivals after Watford visit White
Hart Lane on Saturday lunchtime.
“It’s crazy but that is football and
all can happen,” said Pochettino.
“That’s a good lesson for all. Belief is
the most important thing in football.
Not quality, running or being strong
but belief, faith and fight.
“Nothing is impossible in football
and that is our idea, our philosophy.
We need to keep going in that
direction and it is true the Premier
League is tough to play in, and to
win every game and compete. It’s so
competitive.
“But can it happen? Yes, of course.
It can happen and in our mind we
must be positive to try to imagine
and dream and believe and give our
best.
“If we are focused only on the next
game and nothing around and
nothing after, and if we are positive,
I think we can get the three points,
but first of all we need to be better
than Swansea and we will need to
fight a lot against them.”
Irrespective of how the next few
games pan out, Pochettino insists
his team will not commit the same
mistakes as last season when their
campaign imploded after hopes of
catching eventual title winners
Leicester evaporated.
“We talked a lot about last
season,” added Pochettino.
“In football, it’s important to
learn from all the good and bad
experiences. For me it’s easy to
explain: it’s about mentality – never
giving up, concentrating until the
end.
“Last season we switched off in
our mind after Chelsea [2-2 at
Stamford Bridge in May] and we
conceded second place to Arsenal.”
Pochettino has confirmed that
midfielder Harry Winks is unlikely
to play again this season after
sustaining an ankle injury against
Burnley at the weekend.
“It will be difficult for him to
play again this season,” added
Pochettino. “He has done scans
and after that we will see what the
real problem is.”
Pochettino’s Tottenham are currently
seven points adrift of leaders Chelsea
FOOTBALL
FA’s council unanimously
backs governance reform
ROSS MCLEAN
@rossmcleanRMAC
A SERIES of reforms proposed
by chairman Greg Clarke and
designed to modernise the
Football Association (FA) have
been unanimously approved by
the governing body’s council.
The suggested reforms now
progress to the FA’s annual
general meeting on 18 May,
where they will need a 75 per
cent majority to be endorsed
and adopted.
Included in the package of
changes is a reduction in the
size of the FA’s board from 12 to
FOOTBALL
Koeman returns fire on
Lukaku and Barkley critics
ROSS MCLEAN
@rossmcleanRMAC
EVERTON manager Ronald
Koeman has slammed critics of
striker Romelu Lukaku and
midfielder Ross Barkley
following their limp
performances during Saturday’s
Merseyside derby.
The duo have been castigated
for their anonymous showings
against Liverpool as the Reds
ran out 3-1 winners to boost
their hopes of sealing a place in
next season’s Champions
League.
Defeat rocked Everton’s own
chances, which in turn
heightened the importance of
tonight’s Premier League clash
with fifth-placed Manchester
United at Old Trafford. Victory
would move the Toffees, who
are currently seventh, above
10 with three positions reserved
for women and a limit of three
three-year terms.
There is also the desire to add
11 new members to the FA
Council which “better reflect
the inclusive and diverse nature
of English football”.
In December, five former FA
bosses asked the government to
intervene and update the
organisation, while in February
the House of Commons passed a
motion of no confidence. Sports
minister Tracey Crouch,
meanwhile, gave the FA an
ultimatum to modernise or risk
losing public funding.
Jose Mourinho’s outfit.
“Ross played in a different
position than he has played in
the last few weeks,” said
Koeman. “Of course, he lost
several balls in the midfield
instead of playing a little faster,
but he needs to improve that.
“But taking out one or two
players and saying that was the
problem last Saturday, that’s not
fair. [Lukaku] is the top scorer of
the league. Why now after the
Liverpool game do we have to
criticise Rom?
“He’s a great striker. He’s
working hard. He’s a human
boy. It’s not always a 10 out of
10 performance. If you don’t
play football, maybe you don’t
understand.”
United striker Zlatan
Ibrahimovic is available for
United after serving a threematch
domestic suspension.
IN BRIEF
TOP WEIGHT WITHDRAWN
FROM GRAND NATIONAL
£ HORSE RACING: Two-time Irish
Gold Cup winner Carlingford Lough
and Foxrock have been withdrawn
from Saturday’s Grand National at
Aintree. Following John Kielytrained
Carlingford Lough, a 33-1
chance, being ruled out, last year’s
runner-up The Last Samuri now has
a top weight of 11st 10lb. Ted Walshtrained
Foxrock was rated as a 20-1
shot for the race.
BILBAO TO HOST 2018
EUROPEAN RUGBY FINALS
£ RUGBY UNION: Spanish city
Bilbao has been selected as the host
for next season’s European
Champions and Challenge Cup
finals. The matches will be played at
the San Mames Stadium, the home
of La Liga side Athletic Bilbao. It is
the first time such a game will have
been staged outside a traditional
rugby union nation.
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