Leaked Brussels report says harming the City would backfire on EU

THE HIGHS AND LOWS OF DIDO'S REIGN

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THURSDAY 2 FEBRUARY 2017 ISSUE 2,805 CITYAM.COM FREE

FTSE 100▲ 7,107.65 +8.50 FTSE 250▲ 18,240.20 +92.43 DOW▲ 19,890.94 +26.85 NASDAQ▲ 5,642.65 +27.86 £/$▲ 1.265 +0.006 £/€▲ 1.175 +0.011 €/$▼ 1.076 -0.003

DIDO STEPS AWAY FROM TELECOMSGIANT AFTER SEVEN YEARS AS BOSSOLIVER GILL

@ojngillTALKTALK rang in the changes yesterday,with Dido Harding stepping down as chiefexecutive of the telecoms company afterseven years in charge.

Baroness Harding has been chiefexecutive of TalkTalk since 2010,recently surviving in the role forone-and-a-half years after amassive cyber attack on thecompany in 2015. During theattack, hackers accessed 150,000customers’ personal information,triggering calls for Harding'sresignation at the time.

Yesterday, TalkTalk said majorityshareholder Sir CharlesDunstone wouldassume a more activerole, moving from non-executive to executivechairman.

Tristia Harrison, amanaging director atTalkTalk’s consumerdivision, will formallytake over from Hardingin May. Charles Bligh,currently the managingdirector of TalkTalkBusiness, is promotedto the role of chiefoperating officer.

Shares in the firmjumped over six per cent

on news of the changes at the top, coupledwith a positive trading update. There wasalso some market speculation thatDunstone, who owns 31 per cent of thecompany, could be lining up a takeover ofthe group with private equity.

TalkTalk’s market value is languishing atalmost half of what it was prior to the

hacking scandal.“Dido has been a tireless, energetic

and effective force for good from theday she joined TalkTalk. As a result ofher leadership and totalcommitment to all of us who workhere and our customers, she has

helped transform TalkTalk into amuch stronger business,” said Dunstone

yesterday.“I’m excited at theprospect of spendingmore time on TalkTalk,”he added.

TECHNOLOGY WILL THISBIKE HAVE YOU BUZZING

TO GET TO WORK? P20

Leaked Brussels report says harming the City would backfire on EUHAYLEY KIRTON AND COURTNEY GOLDSMITH

@HayleyLEK @courtneynoelgTOP EU officials are worried that abad Brexit deal will backfire forremaining member states, a leakedreport has revealed.

The document warns against anydeal that harms the City ofLondon’s links with EU companies.

“The exclusion of the mainEuropean financial centre from theinternal market could haveconsequences in terms of jobs andgrowth in the EU,” the report, seenby the Guardian newspaper, said.

“It is in the interest of EU 27 andthe UK to have an open discussionon this point.”

The report was put together bythe European parliament’s

committee on economic andmonetary affairs. It urges EUnegotiators to strive for a“workable” deal with Theresa Mayand her team to protect the City ofLondon, or else the othereconomies in the Union could feelthe fallout.

“If financial services companieschoose to leave the UK as a result ofBrexit, the consequences should be

carefully evaluated,” the documentsaid.

“A badly designed final dealwould damage both the UK and theother 27 EU member states.”

Commenting on the leakedreport, Anthony Belchambers –chairman of the HonoraryAdvisory Council of the FinancialServices Negotiation Forum – toldCity A.M.: “It’s not altogether

surprising... the UK and EU arerealising you can’t draw a sharpline between the two, and that’s awelcome degree of pragmatism.They recognise a drawbridgebetween the EU and the UK wouldhurt both sides.”

Bank of England governor MarkCarney has also said the EU willtake an economic hit if the City iscut off during Brexit talks.

REBECCA SMITH

@BexKSmithTRANSPORT secretary Chris Grayling willtoday set out the government’sproposals for Heathrow expansion witha draft national policy statement.

“By backing the northwest runway atHeathrow airport and publishing ourproposals, we are sending a clear signalthat when we leave the EU, we are openfor business,” Grayling is expected to say.

The publication marks the start of a16-week national public consultation for

the huge infrastructure project, givingpeople across the UK a chance to airtheir views, while kicking off a year-longparliamentary process.

It comes after the High Court delayed alegal challenge to the third runwayearlier this week. It said the challengecould not be heard until after thenational policy statement had beendesignated.

The runway is expected to provide a£61bn boost to the UK economy over 60years and tens of thousands ofadditional local jobs by 2030.

READY FORTAKEOFFGovernmentsays Heathrowexpansion willshow BrexitBritain is openfor business

RIP SIR KEN RETAILSECTOR SAYSGOODBYE TO ALEGEND P5

George Salmon, an analyst at HargreavesLansdown commented: “Sir CharlesDunstone, co-founder of CarphoneWarehouse, will be the man to lead thegroup forwards. His main challenges willbe rebuilding trust in the brand andimproving relationships with customers.After all, the dark days of the cyber attackare still pretty fresh in people’s minds.”

Harding said: “After seven extraordinaryand fulfilling years, during which we havetransformed TalkTalk’s customerexperience and laid the foundations forlong-term growth, I’ve decided it’s time forme to start handing over the reins atTalkTalk and focus more on my activities inpublic service.”

Yesterday’s trading update included thenews that TalkTalk signed up 81,000customers in the first four weeks ofJanuary, 75 per cent of which are lockedinto 24-month contracts.

BUSINESS WITH PERSONALITY

TIME WARNER BUYS STAKE INDIGITAL FOOTBALL GROUPTime Warner’s Turner Internationaldivision has taken a stake in BigballsMedia, adding the digital footballcompany to a portfolio of webinvestments that includes Mashableand Refinery 29. BBM owns Copa90, adigital network that produces football-related content for young fans aroundthe world.

UNICREDIT APPROVES €13BNRIGHTS ISSUEUniCredit last night approved plans tosell €13bn (£11bn) worth of new sharesat a 38 per cent discount, as Italy’slargest bank battles to shore up itscapital position. The rights issue, which

will see shareholders receive 13 newshares for every five they own, has beenfixed at €8.09 a share, a 38 per centdiscount from the theoretical ex-rightsprice (Terp) at yesterday’s close.

HEAVY LOSSES FEARED ATTHE GUARDIANThe Guardian has warned staff toexpect further heavy losses, as thenewspaper said it expects to burnthrough another £90m in cash this year.It has recorded negative cash flow of£60m so far in the current financial yearand is on track for another £30m byApril, executives said.

BAE PARTNER NORTHROPQUITS $16BN CONTRACTFTSE 100 company BAE Systems hasdropped out of one of the biggestmilitary aviation projects of the next fewyears by withdrawing from the runningfor a contract to supply the US Air Forcewith a new jet trainer.

US CAR SALES COOLED OFF INJANUARYA glut of new vehicles are languishing atUS dealerships, as vehicle makersproduce cars at a near-record clip amidsoftening demand. US vehicle salesslipped two per cent in Januarycompared with the same period a yearago, according to Autodata.

GOOGLE WINS ‘RIGHT TO BEFORGOTTEN’ CASEJapan’s Supreme Court said yesterday ithad ruled in favour of Alphabet’s Googlein a case brought by a man found guiltyyears ago of child-pornography charges,who wanted articles about his arrestremoved from Google searches. Theruling was reached on Tuesday.

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNALWHAT THEOTHERPAPERS SAYTHISMORNING

WATCHDOG COULD FORCETESCO TO SELL 635 STORESTesco could be forced to dispose ofmore than 600 stores unless it canconvince regulators that its £3.9bnmerger with Booker will not harmcompetition. Analysis by the data teamat the Times has found there are 635Tesco stores situated less than 500metres from a Booker-network shop.

HOUSING ASSOCIATION’S£520M LAND DEALOne of Britain’s biggest housingassociations, London & Quadrant is tobuy a private land business, GallagherEstates, for £520m as it tries to deliver100,000 new homes over the next tenyears.

CITYAM.COM02 THURSDAY 2 FEBRUARY 2017NEWS

MARK SANDS

@MkSandsJEREMY Corbyn’s Labour frontbenchis in disarray after MPs voted to sup-port an Article 50 Bill in a historicnight in the House of Commons.

MPs overwhelmingly backed theprogress of legislation, granting thegovernment power to begin Brexittalks, by 498 to 114.

The vote means the bill can now face amendments before MPs areballoted again next week.

However, Corbyn saw a rebel-lion among members of hisfrontbench, despite orders toback the legislation.

A total of 47 Labour MPs votedagainst the Bill, including 13shadow ministers, while twoquit the party’s top teamsimmediately ahead of thevote.

Labour front bench teamcrumbles in Brexit vote

Corbyn faced arebellion of 47

Labour MPs

PLEASE MIND THE ART London Underground’s restoration ofits iconic Tottenham Court Road mosaics has been completed

AROUND 95 per cent of the mosaics, completed by leading pop art figure Eduardo Paolozzi in 1986, were kept in the station whilean expansion project to prepare for the introduction of the Elizabeth line took place. Paolozzi’s artwork was considered to be aspectacular example of post-war public art, and his other works can be found next to Pimlico station and in the British Library.

The City’s importanceto Europe helps the PM

LISTEN carefully, and you can hear plenty of sensibleEuropean voices contributing to the great Brexit debate.Germany’s European affairs minister, Michael Roth, saidrecently that “Britain’s size, significance and its long

membership of the EU” means there “will probably be a specialstatus” for the UK post-Brexit. At the time, he was dismissed as a loose cannon by thosedetermined to believe the UK was in line for a punishing deal.In reality, he echoed Markus Kerber, another pragmaticGerman and head of the country’s top business lobby group,who warned before the referendum that “imposing tradebarriers, imposing protectionist measures between our twocountries would be very, very foolish”. He went on to call for anEU negotiation strategy that maintained the current levels oftrade enjoyed between the UK and Germany.The political masters of the EU project (whose influence inupcoming negotiations should not be underestimated) have, bycontrast, preferred to fire warning shots across British bows,claiming that the UK cannot “cherry pick” aspects of EUmembership. To be fair to Theresa May, she isn’t trying to. Inher landmark Brexit speech she recognised that the fourfreedoms of the EU were indivisible and said she would notseek to pull at the threads of them. To paraphrase, her positionwas that “we know we cannot have controls over freedom ofmovement while maintaining full membership of the SingleMarket, so we do not seek it”. It was a pragmatic approach, andone based on the fact that the UK does not enter thenegotiations as a weak, peripheral EU member. We will not beholding out the begging bowl.EU officials are, quietly, starting to recognise this. MichelBarnier, the EU’s chief negotiator, understands – particularly asit relates to the City of London, to which the EU’s financialinterests are so closely linked. Now a leak from the Europeanparliament reveals yet more powerful voices waking up to thisreality. The economic and monetary affairs committee’s paperwarns: “Given the considerable interdependence between theUK and the EU economy and financial systems, it is critical thata workable agreement is achieved.” The leak provides fresh evidence of the importance of the Cityto EU financial stability, and it will strengthen the hands of theUK’s negotiators.

Follow us on Twitter @cityam

THE CITY VIEW

Corbyn yesterday announced thatshadow environment secretaryRachael Maskell and shadow equali-ties minister Dawn Butler had resigned less than an hour before MPswere balloted.

Butler and shadow Welsh secretaryJo Stevens were the most senior rebels,but Corbyn managed to retain thesupport of his ally and shadow business secretary Clive Lewis.

The Labour leader has made clearshadow ministers disobeying his

order could not remain on thefrontbench.

As a result, he now likely facesa total of 17 vacancies on his top

teams, or just under a fifth ofhis total frontbench at

the start of the year.

Europhile MP Ken Clarke was theonly Conservative to vote against theprogress of the Bill.

It came after a full day of debate thatsaw former chancellor George Os-borne argue the government was pri-oritising immigration over theeconomy, and warn that Brexit nego-tiations with the EU should be expected to turn “bitter”.

Separately, former UK ambassadorto the EU Sir Ivan Rogers told MPs thatEuropean leaders did not believeTheresa May’s argument that “no dealis better than a bad deal”.

Rogers said European leaders be-lieved defaulting to World Trade Or-ganisation trading rules was so“unpalatable” that May would notwalk away from trade talks.

He also said there was a “genuine”possibility the UK could be presentedwith an exit bill of up to €60bn(£51bn) upon quitting the EU.

03THURSDAY 2 FEBRUARY 2017 NEWSCITYAM.COM

TRACEY BOLES

HEINEKEN is one step closer to takingover Punch Taverns after a rival suitorsaid yesterday it would not be makingan offer for the pub company.

Emerald Investment Partners, the in-vestment firm of Punch founder AlanMcIntosh, had made a cash proposalfor Punch in December but confirmedyesterday it would not be making afirm offer.

Shares of Punch, the country’s sec-ond-biggest operator with more than3,000 pubs, fell nearly six per cent to176.75p on dashed expectations of ahigher offer than the one on the table.

Dutch brewer Heineken and its in-vestment partner Patron Capitalstruck a deal in December to buyPunch for 180p per share, or £403m.

At the time Emerald said that it hadproposed a 185p-per-share offer forPunch, but the offer was conditionalon financing and due diligence.

Punch’s management, board of di-rectors and top three shareholdershave all endorsed the Heineken bid.

Heineken is inpole position forPunch Taverns

Shareholders will meet on 10 Febru-ary to vote on the deal with Heinekenand Patron. The pub company expectsthe deal to close in the first half ofthis year.

Pub landlords have united to criti-cise Heineken’s planned takeoverplans of Punch Taverns, which theysaid will result in reduced beer andcider options for customers.

Heineken’s own-brand products in-clude Foster’s lager and Strongbowcider. Punch’s tenants are able to de-velop unique offerings based on localdemand and style.

Deutsche Boerse boss probed onshare buy before London mergerWILLIAM TURVILL

@wturvillGERMAN authorities areinvestigating a share purchase byDeutsche Boerse’s chief executiveshortly before the companyannounced its plans to merge withthe London Stock Exchange.

The German exchange said lastnight the public prosecutor’s officeof Frankfurt was investigating theshare purchase by Carsten Kengeter,made on 14 December 2015.

Kengeter bought 60,000 sharesworth around €4.5m (£3.8m) in threetransactions on that day.

A couple of months later, itemerged that Deutsche Boerse wasin talks to merge with the LondonStock Exchange, and the companiesagreed a deal in March.

Deutsche Boerse’s shares are up 11per cent since the Kengeterpurchase. Under the terms of thedeal, if the merger completes,Kengeter will become chief executiveof the joint company.

Profit explodes at Facebook, but avirtual reality suit causes $500m hitCOURTNEY GOLDSMITH

@courtneynoelgFACEBOOK’S profit shot sky high in2016, rising 177 per cent to $10.2bn(£8.1bn) for the year ended 31December, despite a $500m payoutfor its virtual-reality firm Oculus,which came under fire for breaking anon-disclosure agreement.

Revenue for the fourth quarterwas up 51 per cent to $8.8bn,

pushing sales for the year ended 31December to $27.6bn, up a whopping54 per cent from the previous year.

Advertising takings hit $8.6bn overthe three-month period, 84 per centof which was made from mobiledevices, up from around 80 per centin the prior year.

The social media giant had 1.23bndaily active users in December, anincrease of 18 per cent year-on-year,while its figures for mobile daily

active users rose 23 per cent to 1.15bnon average for the same month.

Basic earnings per share were up to$1.31 for the full year, from $1.29.

In November, the company warnedthat advertising growth would likelyslow “meaningfully” as the firm hit alimit on the total number of adsFacebook can show to each user.These strong results, which beatanalysts’ expectations, should calminvestors’ concerns.

1 Feb26 Jan 27 Jan 30 Jan 31 Jan

PUNCH TAVERNS195192.50190187.50185182.50180177.50

1 Feb

176.75

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SCHRODERS, the French retailer’s second-biggest shareholder, reportedly sold itsentire 9.27 per cent stake to an unknown buyer. The Telegraph said the long-termbacker sold its shares as activist investors call for a buyout of the struggling firm.

FLOGGED CONNECTION A major FrenchConnection backer sells its minority stake


MARK SANDS

@MkSandsA PERK for the flatmates of Transportfor London (TfL) employees is costingLondoners more than £33m a year inlost revenue, according to new figures.

An analysis by London Assembly To-ries has called on mayor Sadiq Khan toscrap the “ridiculous” benefit, cur-rently available to anyone sharing aresidence with a TfL worker.

Instead, the capital’s Tories say Khancould offer free travel to firefighters forjust £19.8m over four years, saving£113.4m over the same period.

London Conservatives transportspokesman Keith Prince said: “It seemsludicrous that the taxpayer has to foota bill of over £33m a year just so TfLstaff can hand out free travelcards totheir mates.

“It would be hard enough to justifythis perk under normal circumstances,but at a time when the mayor is seek-ing to save more than £640m from

Khan spending£33m on travelfor TfL flatmates

The US labour market has been strengthening in recent quarters

US Federal Reserve leaves ratesunchanged as economy bolstersCOURTNEY GOLDSMITH

@courtneynoelgUS FEDERAL Reserve chair JanetYellen last night said interest rateswould be maintained at 0.5 to 0.75per cent as the labour marketcontinues to strengthen andeconomic activity expands.

At the Federal Open Market

Committee meeting (FOMC), Yellensaid inflation increased in recentquarters but is still below thecommittee’s two per cent long-runobjective. She said the committeeexpects inflation to rise to two percent over the medium term.

Yellen gave few clues as to whenrates might be hiked next. Analystsexpect another rise in March or June.

within TfL because of his disastrousfares freeze it really takes the biscuit.”

Khan is reviewing free travel for nom-inees of staff earning more than£100,000 a year. City Hall disputes theConservatives’ figures, claiming TfLwould gain revenues of just £5m a yearif such passes were withdrawn.

A spokesman for Khan said: “KeithPrince’s figures simply aren’t correct.He should act more responsibly, ratherthan making misleading promises toLondoners that aren’t deliverable.”

The London Tories calculated thetotal on the basis of offering half ofthose currently using such passes aZone 1 to 3 travelcard, with the re-duced total accounting for the numberthat would not use the services if theywere not free.

•TfL yesterday urged commuters torethink travel plans for next week asthree days of Tube strikes will begin at5pm Sunday. Many Zone 1 stations are expected to close for partsof Monday, Tuesday and Wednesday.

UK producersshrug off bigprice increasesJASPER JOLLY

@jjpjollyUK MANUFACTURERS shrugged offrecord input price increases tostart 2017 in fine form, accordingto a closely-watched indicator.

Growth in the sector’s outputreached its highest point since May2014 as the overall purchasingmanagers’ index (PMI) recorded itssixth straight month of growth inthe UK’s manufacturing sector.

The UK’s manufacturing PMIdipped slightly to 55.9 in January,according to data providers IHSMarkit, only slightly down from a2.5-year high in December. Anymeasure above 50 indicates anexpansion in activity in themanufacturing sector.

Meanwhile, a survey by theConfederation of British Industry(CBI) found new orders for smalland medium-sized enterprises(SMEs) growing at the fastest pacefor two years, despite the largeincrease in input prices.

Domestic demand continues tobe a source of strength for the UKeconomy, with almost a third ofSMEs reporting increased ordersfrom the UK, and a fifth of SMEmanufacturers adding jobs.


OBITUARY

EMMA HASLETT

@emmahaslettSIR KEN Morrison, who made his father’s Morrisons grocery chaininto a supermarket giant, has died.He passed away aged 85 after a shortillness, his family said yesterday.

Morrison took over his father’sBradford egg and butter stall, turn-ing it into one of the UK’s Big Foursupermarkets within 50 years.

Having opened his first supermar-ket in 1961, Morrison floated thecompany in 1968. In 2004, it acquired Safeway.

He was Morrisons chairman until2008. In 1990 Morrison was awardedthe CBE and he was knighted in theMillennium New Year’s Honours listfor his services to food retailing.

The supermarket said yesterday:“Sir Ken was an inspirational re-tailer who led Morrisons for morethan half a century, transformingthe company from a small familybusiness into the UK’s fourth largestfood retailer.

Supermarketicon Sir KenMorrison dies

“Sir Ken will be greatly missed bymany thousands of his current andformer colleagues, a large numberof whom became close personalfriends over the years.”

Andrew Higginson, the currentchairman of Morrisons, said: “Iknow that I speak for the wholecompany when I say how profoundlysad we were to hear of Sir Ken’sdeath. He was an inspirationalleader and the driving force behindMorrisons for over half a century. Al-though he retired several years ago,his legacy is evident every day and inevery aspect of our business.

“Taking Morrisons from a smallBradford-based family business to amajor UK grocery retailing chain isan outstanding achievement in thehistory of UK business.”

Simon Hinchliffe, headmaster ofMorrison’s old school, BradfordGrammar School, said: “Sir Ken was an inspirational figure, a York-shireman of great integrity, human-ity and a model of honest goodsense.”

Key investor slams Sports Direct’spay policy and Ashley’s dominance SHRUTI TRIPATHI CHOPRA

@shrutitripathi6BELEAGUERED retailer Sports Directhas been slammed by a top investorover its remuneration policy andfounder Mike Ashley’s dominance.

Standard Life Investments hascalled for big changes at the retailerin its annual governance report. Theasset manager is the fourth largestshareholder in Sports Direct with a

3.5 per cent stake. As at December, itheld 33.6m shares.

“We have been concerned for sometime about governance arrangementsat Sports Direct,” the investmentcompany said.

“The board lacks independence andthe non-executive directors lack theappropriate skills and experience toenable robust challenge of theexecutive team, particularly thefounder and major shareholder Mike

Ashley. We also have major concernsregarding its remuneration policy. Wehave engaged with senior executivesand non-executives over many yearson these issues, but to little effect.

“We will monitor futuredevelopments and expect to engagefurther over the coming year,” itadded.

Ashley was grilled by MPs last yearover working practices in SportsDirect’s warehouses.

Sir Ken Morrison started out on his father’s egg and butter stall

Southern shoppers like to think they aresophisticated, don't they? But they’re not.

I have something like 1,000 bullocks and,having listened to your presentation, Dalton,you've got a lot more bullshit than me.

I started my career doing [home delivery onmy bicycle] and I don’t intend to do it again.

The time when he’d had enough of former Morrisons chief executive DaltonPhilips.

Embracing a new market – Morrisons expanded in the south of England afteracquiring supermarket chain Safeway in 2004.

And, finally, making clear his views on the burgeoning online retail market.

SIR KEN MORRISON’S BEST QUOTES

REBECCA SMITH

@BexKSmithSOUTHERN rail commuters havelaunched a legal claim in an attemptto force the government to take actionover the service.

An application for a judicial reviewof the Department for Transport’s(DfT) handling of the crisis has beenfiled by lawyers for the Association ofBritish Commuters.

A group spokesperson said: “It isright that our fellow passengers willnow play a part in bringing the gov-ernment to account for the damageSouthern rail has caused to so manythousands of lives.”

The commuters want a ruling onwhether the DfT has failed to holdGTR to account for the breakdown inSouthern performance and whethertransport secretary Chris Grayling hascaused indirect discrimination to dis-abled passengers.

It comes as the Southern rail crisis –and specifically the government’shandling of it – is being investigatedby the National Audit Office (NAO) aspart of its report examining the

Southern railcommuters startlegal challenge

modernisation of Thameslink. BothSouthern and Thameslink are run byGovia Thameslink Railway (GTR).

The NAO update on the Southernscrutiny was added to the Thameslinkinvestigation on its website in Janu-ary.

It read: “Since 2015, train services onthe Thameslink Southern GreatNorthern (TSGN) franchise have beensubject to significant disruption, par-ticularly on the Southern services.

“Alongside our work on the Thames-link programme, we also plan to report on the Department’ manage-ment of the TSGN franchise.”

The results of the findings are ex-pected by July.

The government has faced calls totake further action on Southern –where passengers have faced monthsof disruption and ongoing industrialaction.

Discussion remains ongoing as towhether the operator should bestripped of the franchise entirely.

Rail minister Paul Maynard said in arecent letter to the Transport SelectCommittee chair that termination ofthe franchise “may be an option”.

The train group has been beset by months of industrial action, angering commuters

BT Openreach separation plansnot enough for regulator OfcomOLIVER GILL

@ojngillBT’S PLANS to make Openreach moreindependent by bolstering its boardhave been rebuffed by regulators asfalling short of their requirements.

Openreach held its first board fullmeeting this week and announcedthe appointment of Sir BrendanBarber, the former general secretaryof the Trade Union Congress, andformer National Grid board memberEdward Astle as independent

directors. Regulator Ofcom wantsOpenreach, which owns most of theUK telecoms infrastructure, to belegally separated from the BT groupto deliver more competitive pricingfor customers.

“These changes fall short of ourrequirements for a legally separateOpenreach that delivers for all of itscustomers,” said a spokesperson forOfcom last night, adding it plans toforce through its plans by applying toEuropean authorities if an agreementwith BT cannot be reached.


JP MORGAN TO PAY LEHMAN$797.5M TO END LITIGATIONOVER COLLAPSEJPMorgan Chase & Co will pay $797.5m(£630m) in cash to end all litigationbrought on behalf the former LehmanBrothers Holdings, whose September2008 collapse triggered a global financialcrisis. The settlement made publicyesterday requires approval by USbankruptcy judge Shelley Chapman inManhattan. It follows JP Morgan’sagreement last January to pay $1.42bnin cash to resolve most other claims, inwhat had been an $8.6bn lawsuit againstthe largest US bank to recoup money forLehman creditors. JPMorgan, which hadbeen Lehman’s largest secured creditor,was accused of exploiting its leverage asLehman’s main “clearing” bank tosiphon critical liquidity in the last few

days before Lehman went bankrupt onSeptember 15 2008.

SANTANDER MAN HEADS TOWORLDPAYA top Santander executive is leaving theSpanish bank to head the UK operationsof Worldpay, the FTSE-100 paymentsgroup, Sky News first reported last night.Peter Jackson, a former chief executiveof Travelex, will today be named as thenew boss of Worldpay UK. Jackson, whoalso serves as a non-exec director atBanco Santander, will replace DaveHobday, who resigned from Worldpaybefore Christmas to instead lead theRAC, the breakdown recovery service.

IDENTITY THEFT NAMED MOSTDAMAGING FRAUDIdentity fraud has taken the

questionable crown of the worst type offraud in the UK today. The list, publishedtoday and compiled by the Centre forCounter Fraud Studies at the Universityof Portsmouth and Privilege HomeInsurance, ranks fraud affectingindividuals based on: the percentage ofpeople subject to an attack, the averagevalue of losses, the number of cases, andthe number of times the fraud has beentalked about online. Identity fraud –where personal information is usedfraudulently to, for example, take out aloan in somebody else’s name – took topspot on the list, scoring 49 out of apossible 60 points. Investment fraud,including boiler room scams and ponzischemes, came in second place with a43.5 score. Pension frauds, such asoffering to free up pension funds forthose under 55, came in ninth place.

IN BRIEF

Everything you need to know about the Article 127 case

HAYLEY KIRTON

@HayleyLEKA CASE on Article 127 is due to go for amerit hearing tomorrow afternoon,where judges will decide if there isenough legal meat for a fullhearing. Here’s what you need to know:

What’s this case about?The case, which was initially brought bychair of pressure group British InfluencePeter Wilding and lobbyist AdrianYalland, argues Brexit does notautomatically spell departure from theEuropean Economic Area (EEA).Instead, this case asserts thegovernment must separately triggerArticle 127 of the EEA agreement and,much like the Article 50 case, must alsoget the thumbs up from MPs beforethey can do so.How is this different to the Article 50case? The Article 50 case hinged heavily onthe constitutional process required forthe UK to hand in its notice of

WILLIAM TURVILL

@wturvillTHE FINANCIAL Stability Board(FSB) has set out proposals for newrules around “living wills” forclearing houses to ensure they donot become a new source of “too-big-to-fail risk”.

The blueprint, publishedyesterday, is designed to ensurethat collapsing clearing houses donot cause further damage to thefinancial system and are not thesubject of taxpayer bailouts.

Clearing houses, or CCPs, whichsit between two sides of financialtrades and ensure deals arecompleted if one side defaults, havegrown in recent years, with new

COURTNEY GOLDSMITH

@courtneynoelgWATERSTONES has turned an an-nual profit for the first time since2009 as book sales picked up in 2016.

The bookseller reported a pre-taxprofit before exceptional items of£11.9m, which was up from a loss of£3.4m in the previous year.

Sales rose 4.3 per cent to £409.1mfor the year ended 30 April, up from£392.4m.

Waterstones closed six shops andopened seven, resulting in a total es-tate of 270 shops at the end of April.Now, 46 of the bookseller’s shops arefitted with Waterstones’ Cafe W.

clearing rules introduced since thefinancial crisis.

The FSB, an international bodywhose current chair isMark Carney, yesterdayset out how regulatorsshould be able toclose failing clearinghouses.

“CCPs are anintegral part of thefinancial systemand play animportant role inmitigating risks to thefinancial system. Theyhave grown substantially overthe last years,” said Elke Konig,chair of the FSB resolution steeringgroup and European single

resolution board. “The failure of aCCP would have a significantimpact on financial stability. It is

essential that authoritieshave effective resolution

planning arrangementsin place, includinglegal powers and tools

to take action in acrisis.”The FSB said it will

undertake further work toensure financial resources are

in place for resolution and willdecide next year whether furtherguidance is needed on the issue.

Mark Carney ischairman of the FSB

HAYLEY KIRTON, MARK SANDSAND WILLIAM TURVILL

@HayleyLEK @MkSands @wturvillBREXITEERS have hit back a top taxlawyer bringing an Article 50 case inIreland, who recently claimed hiscase’s importance lay in the fact votershad been misled.

Jolyon Maugham filed a case in Ire-land last week, seeking an answer onwhether the UK can revoke its Article50 process without the approval of theother 27 EU member states. He hopesto take the case to the European Courtof Justice.

“I do think the people were misled,”Maugham said in an interview withReuters earlier this week. “What hap-pens if the promises that Brexiteersmade about sunlit uplands, extramoney for the NHS, no VAT (value-

added sales tax) on domestic fuel, won-derful trade deals with the rest of theworld... come to nought?”

However, a number of Leave backershave taken issue with Maugham’s com-ments, claiming the Remain camp wasjust as guilty of misleading the publicin the run-up to the vote.

“He clearly doesn’t believe in democ-racy at any rate,” remarked serial entre-preneur and investor Luke Johnson.“And talking about misleading people,what about ‘project fear’ and the eco-nomic collapse threatened by the Re-mainers if we voted to leave?”

“Remainers... were bordering on hys-terical in forecasting an economic ar-mageddon,” said David Buik, PanmureGordon’s market commentator. “Bothsides failed to support their argument.”

Maugham did not respond to re-quests for comment last night.

07NEWSCITYAM.COM

NEWS FROM THE CITY OF LONDON

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News, info and offers at www.cityoflondon.gov.uk/eshot

City celebrates 950 years ofarchives

The William Charter (1067), the oldest document

in the City’s archives, is on rare public display at

the City of London Heritage Gallery at Guildhall

Art Gallery, EC2. FREE admission.

During the year, a series of events will be held at

Guildhall and the Clerkenwell-based London

Metropolitan Archives (LMA) to help celebrate

950 years of the City’s archives. The Londoners:

Portraits of a Working City, 1447 to 1980 opens

at LMA on 6 February, featuring a wide range of

drawings, illustrations and photographs of

Londoners at work. FREE admission.

The first 20 visitors to

Guildhall Art Gallery today

to quote ‘City Archives

950’ will receive a free

copy of London: 1,000

Years – Treasures

from the Collections

of the City of London

(worth £20) by David

Pearson.

Financial Stability Boardsets out living will plans

Rising book salespush Waterstonesback into the black

BREXIT

Irish Article 50 lawyerslammed for claimspeople were misled

THURSDAY 2 FEBRUARY 2017

Q&A withdrawal to the EU, as the UK voted todo on the 23 June. This new case,however, is focused on whether the UKcan keep its membership of the EEA.“The EEA agreement, which came intoforce in 1994, had the effect of giving tocertain non-EU countries the same fourfreedoms as those available to EUmembers: the free movement of goods,person, services and capital,” explainedMichael Madden, partner at Winston& Strawn London.But the Prime Minister has already saidwe’re leaving the Single Market. Whatdoes that mean for this case?A political statement is not the same as alegal one. For example, during the Article50 Supreme Court hearing, lawyers forthe government conceded that, althougha recent parliamentary vote to stick to theMarch deadline for triggering Brexit was“significant”, it was not legally “binding”.Surely there are already lawsgoverning this?Not unlike the Article 50 case, the existinglaw is unhelpfully quiet about the issuesin this case. “There is no law on this as nocountry has left the EU since the creationof the EEA and even prior to that theleaving countries were not properlyregarded as fully fledged membersbecause they owed their membership

through another member – the mostrecent example being Greenland whosemembership derived from its associationwith Denmark and which left in 1985,”added Madden.Will Brexit be heading to the SupremeCourt again in a matter of months?It’s not impossible the case could end upin the Supreme Court but it’s unlikely tobe soon. The Article 50 case’s quickscamper up the legal hierarchy was partlythanks to judges deciding the case couldgo straight from the High Court to theSupreme Court.“In the Brexit case it was accepted thiswas a case of sufficient importance toleapfrog the Court of Appeal and for theappeal to go directly from the High Courtto the Supreme Court,” said Madden “It isunlikely that a similar approach will beadopted in this case as there is no currenturgency to trigger Article 127.”Could this case delay Brexit?The chances of the UK having to prolongits EU membership because of this caseare slim.“Brexit is all about leaving the EU andeverything that entails,” Maddensaid. “The EEA is only one aspect, albeit avery important aspect, of theEU. Brexit can go ahead despite the EEAissue being unresolved.”

UNDER ARMOUR, OVERRATED S&Pdowngrades sportswear firm to junk

ONE DAY after sportsbrand Under Armourreleased disappointingresults, ratings agencyStandard & Poor’slabelled its stock asjunk. S&P cited pricingpressure, intensecompetition in the USmarket and a toughretail market asreasons for thedowngrade. UnderArmour sharesslumped after it saidgross margins fell to44.8 per cent in thefestive quarter to 31December, from 48 percent a year earlier.


ASHLEY COATES

THE CONSTRUCTION of new homes isnow a top five priority for voters, withincreasing numbers of people willingto support housing projects in theirlocal area.

A report from think tank the Centrefor Policy Studies suggests attitudes tonew builds have changed dramaticallyover the last ten years.

Citing a British Social Attitudes sur-vey, the study found 21 per cent of re-spondents opposed new housing intheir local area, down from 46 percent in 2010. The same survey indi-cated that in 2014, 56 per cent of respondents would have supportedthe construction of new homes, upfrom 28 per cent in 2010.

“The importance of housing to theelectorate reflects the fact that thereare simply not enough places for peo-ple to live in,” the report said.

“With house prices continuing torise far faster than wages, the need for

‘Nimbyism’ is indecline as houseshortage bites

Some industry experts are predicting annual house price growth to be three per cent

Still going up: UK house pricegrowth eases to 14-month lowHELEN CAHILL

@HelCahillANNUAL UK house price growth fellto 4.3 per cent in January, down froma year-on-year growth of 4.5 per centin December.

Compared with November, houseprice growth edged up 0.2 per cent,according to data from Nationwide.

The prediction is the housing marketwill be cooler in 2017 than in 2016,and some experts have predictedgrowth could slow to three per cent.

“The outlook for the housingmarket remains clouded, reflectingthe uncertainty surroundingeconomic prospects more broadly,”said Nationwide economist RobertGardner.

new housing has never been greater.”The authors said the government

will not meet its target to build 1mnew homes by 2020 unless it takesradical action. Simplifying planningrules, reducing tension between devel-opers and residents through “specialpurpose vehicles” and introducing“pink zones” where planning red tapeis reduced to ease the way for develop-ments were recommended as ways tomeet the 2020 target.

The delayed housing white paper isexpected to be put forward by com-munities secretary Sajid Javid nextweek. On Tuesday a senior MP told CityA.M. Tory infighting was responsiblefor the delays to the paper, which wasinitially due in the autumn.

The authors said the start of 2017 is“the moment of maximum opportu-nity” for UK housing policy and urgedthe government to make next week’swhite paper as bold as the 1979 hous-ing white paper introduced byMichael Heseltine.

Disrupter aimsto shake up thefuneral tradeWILLIAM TURVILL

@wturvillA NEW digital disrupter is aimingto put the ‘fun’ in funeral. DeadRight, a service comparisonstartup, is backed by advertisingexec Sir John Hegarty and hiscompany Garage Soho, and is in theprocess of seeking further funding.

The company, which recentlylaunched a website offering usersthe chance to compare 2,000funeral directors, was founded in2015 with the aim of bringing themarket “into the 21st century”.

“We’ll show people all thebrilliant things you can now do tocelebrate someone’s life: fromVolkswagen hearses, to footballcoffins, putting your ashes into afirework, be turned into a diamondor simply a tree,” said founder andchief executive Felicity Stinton.

“Ultimately Dead Right believepeople should be free to do thingstheir way – make the funeral aspersonal as possible and thus makea sad time a bit more of acelebration.”

The firm has also been backed byTom Teichman, a Lastminute.cominvestor, and Steve Willey, formerlyof Moneysupermarket.com.

COURTNEY GOLDSMITH

@courtneynoelgTHE TIDE is rising on average house-hold water and sewerage bills in the2017-2018 year.

Homes in England and Wales willsee their bills rising £6, or two percent, to an average price of £395.

The increase falls in line with afive-year plan agreed upon by theUK’s water and sewerage compa-nies, UK Water said yesterday.

After consultation with customersand industry regulator Ofwat,water companies made plans to de-liver a five per cent average drop inreal terms in prices between 2015and 2020. Over the period, they willalso invest £44bn in better services,greater resilience and environmen-tal improvements, UK water said.

The industry is working towardsthree goals: saving 370m litres ofwater a day by tackling leakage andpromoting efficiency, reducing theeffect of time interruptions onwater supply by 32 per cent, and re-ducing properties flooded by waste-water from sewers by 33 per cent.

Michael Roberts, Water UK chiefexecutive, said details of this year’s bills in England and Wales are being published alongside

information on how water compa-nies are performing.

“We hope this will both inform theongoing conversations about priori-ties between companies and theircustomers, and provide a signpost tothe help available from each watercompany for those households whogenuinely struggle to pay,” he said.

Low-income households are beingadvised by the Consumer Councilfor Water (CCWater) to take advan-

tage of schemes offered by watercompanies to help struggling customers pay their bills.

Tony Smith, chief executive of thewatchdog CCWater, said water com-panies have a growing number ofschemes available to help customersreduce bills by more than 80 percent in some cases.

In September, Ofwat called formore competition between waterproviders to help lower prices.


Water bills in Englandand Wales are set to rise

HOLD The Bank of England (BoE) is at the limits of tolerating above-target inflation, but there is a case to be madefor maintaining the neutral policy bias. The Brexit forecast error may be about to resolve itself as evidence of the realincome shock and business relocations begin to appear. The cost of a policy mistake may be asymmetric too. Withthe latest quantitative easing tranche wrapping up this month, the BoE has all the more reason to proceed slowly.

CITY A.M.’S SHADOW MONETARY POLICY COMMITTEEOUR MPC VOTES 7-2 TO HOLD POLICY

OUR PANEL’S GUEST CHAIR FOR THIS MONTH: MARK WALL DEUTSCHE BANK

JAMES SPROULE INSTITUTE OF DIRECTORSHIKE Reverse post-Brexit reduction and plot apath to normalisation. This will help interest ratespreads to widen and reflect actual risk.

SIMON WARD HENDERSONHIKE The August stimulus was unnecessary.With GDP, inflation and wage data surprising tothe upside, now is the time to start reversing it.

JASPER JOLLY

@jjpjollyTHE BANK of England (BoE) isexpected to leave interest ratesand its quantitative easing policyunchanged at the latest meeting ofthe rate-setting Monetary PolicyCommittee (MPC) today.

City A.M.’s Shadow MPC hasvoted in favour of holding rates

again, although with a slight shiftin bias towards tighter policy.

However, most economistsexpect serious talk of a rate rise tobe reserved until the latter half ofthe year at least, despite risinginflation – and the Bank’s“neutral bias” still allows for afurther cut to the bank rate if theeconomy slows.

The last change in monetary

policy came in August in responseto the Brexit vote, with a cut inthe bank rate from 0.5 per cent to0.25 per cent and an extension ofquantitative easing bond buying.

The Bank may come underincreasing pressure to raiseinterest rates as the devaluation ofsterling raises prices. The Bankforecasts inflation to break 2.7 percent next year.

SIMON FRENCHPANMURE GORDONHOLD Signs of moderation in the unsustainablepace of consumer borrowing. Bank policy canhold until more detail is available on Article 50.

VICKY PRYCE CEBRHOLD Despite rising inflation, growth remainsunbalanced and the risks of a hard Brexit add tothe short- and medium-term uncertainty.

RUTH GREGORY CAPITAL ECONOMICSHOLD Next move in rates will probably be up.But uncertainty and little sign of domesticinflation pressures suggest this is some way off.

DAVID STUBBS JP MORGAN ASSET MANAGEMENTHOLD There are early signs of weakness in UKconsumer data, which make up 60 per cent ofUK GDP. Retail sales in December fell sharply.

KALLUM PICKERING BERENBERG BANKHOLD But send a strong signal that monetarypolicy will tighten in the coming months amidstrong growth and rising household debt.

ROSS WALKER NATWEST MARKETSHOLD Higher than expected growth justifiesunchanged policy settings, but the medium-term risks mean an easing bias is necessary.

Bank of England expected to hold rates aheadof Brexit and will look through inflation rise

On the rise: UK Water confirmed the average water bill will go up this year

LOVELY VIEW The National Trust haspicked its top outdoor spots for Valentine’sTHE GROUP has picked out its most romantic destinations for 14 February including:Prior Park in Bath (above); Claremont Landscape Garden, Surrey; Hughenden and Stowe,both in Buckinghamshire; Oxburgh Hall, Norfolk and Stourhead, Wiltshire.

No school dinners atHard Knocks auction

From far left: M Restaurant guests ready to bidbig, SOHK staffer Liam Mackay (left) and Englandcricketer Kevin Pietersen, Lawson Muncaster(below left) and SOHK trustee James Cameron.

Clockwise fromleft: Retiredchampionjockey WillieCarson OBE,SOHK boss KenCowenaddressingdiners; formerEngland rugbyplayer JasonLeonard wasamong guestshelping to raisemoney for socialinclusionprojects aroundthe capital.

Got A Story? Email [email protected]


THECAPITALIST

The world’s largest hedgefund warns on US leaderASHLEY COATES

THE FOUNDER of BridgewaterAssociates, Ray Dalio has toldinvestors he is increasinglyconcerned that Trump’s“populist” programme willbe harmful to the worldeconomy in the long-term.

Dalio (right) had beenoptimistic about the so-called Trump bump backin November last year butsaid in a note to investors:“We are now in a period of timewhen how this balance tilts will bemore important to the economy,markets and our well-beings thannormally dominant drivers such ascentral bank policies.”

Bridgewater’s co-investment chiefofficer Bob Prince joined Ray Dalio towarn that Trump’s populist policies

could offset the pro-businesses policies that

have buoyed Americanstock markets in the

weeks followingDonald Trump’s election

in November.“While there is a lot of

potential to improve fiscal policiesand make beneficial structuralreforms, there is also a significantrisk that his populist policies couldhurt the world economy (and worse).”

Japan PM hitsback on Trump’syen accusationsASHLEY COATES

JAPANESE Prime Minister, ShinzoAbe has refuted suggestions thathis government is manipulating theyen, which has fallen by 15 per centagainst the US dollar since Trump’selection in November.

“We entrust monetary policy tothe Bank of Japan to meet the twoper cent inflation target asappropriate,” Abe told politiciansin Japan’s parliament yesterday.

Trump told a group ofpharmaceutical executives onTuesday: “You look at what China’sdoing, you look at what Japan hasdone over the years. They play themoney market, they play thedevaluation market and we sitthere like a bunch of dummies.”

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NEWS

PHO

TOGR

APH

S BY

JO

DI H

INDS

SPORTING greats are no strangers to the SquareMile, but they were in even more plentifulsupply yesterday for a star-studded event in aid

of the admirable charity School Of Hard Knocks(SOHK).

England cricket hero Kevin Pietersen, Red Roserugby greats Jason Leonard, Simon Shaw, BrianMoore and Andy Gomarsall joined the likes of formerchampion jockey Willie Carson, footballer-turned-broadcaster Alan Brazil and City A.M. founder LawsonMuncaster at M restaurant on Threadneedle Street fora lunch, auction and raffle in aid of School Of HardKnocks’ thoroughly deserving social inclusion projects.

The auction – which included lots such as tickets forall of England’s autumn internationals, a luxury skitrip for 10 people, and a group wine tasting sessionwith Jason Leonard and Simon Shaw at M’s enviable wine store – raised well in excess of £60,000,beating the target by a handsome distance.

That owed much to the charm, coercion and – whenthat failed – haranguing of the auctioneer, broad-caster Jonny Gould. And of course the generosity andcourage of the attendant City crowd, notable amongwhom were the bid-happy Investec tables. Cheers!


REBECCA SMITH

@BexKSmithVOLKSWAGEN has agreed to pay atleast $1.2bn (£950m) in buybacks andcompensation to owners of largerdiesel engines affected by the firm’semissions scandal in the US.

According to court documents filedlate on Tuesday, VW has agreed to paythe total to fix or buy back nearly80,000 polluting 3.0 litre diesel-enginevehicles, to settle claims it had the fit-ted the cars with illegal emissions-cheating software.

The settlement needs to be approved by a US judge.

In a statement, Hinrich Woebcken,chief executive of Volkswagen Groupof America, said: “We will continue towork to earn back the trust of all ourstakeholders and thank our cus-tomers and dealers for their contin-ued patience as this process movesforward.”

German supplier Robert Bosch has also agreed to pay $327.5m to USdiesel VW owners.

Owners had sued Bosch in 2015, say-ing the firm helped design “defeat de-vice” software which enabled VW toevade emissions rules.

Volkswagen topay $1.2bn onUS diesel claims

Siemens chiefurged to pushon with changeGEORGINA PRODHAN

SIEMENS shareholders yesterdayurged chief executive Joe Kaeser topress ahead with transforming theengineering group which made itsbest annual operating profit todate last year and raised itsearnings forecasts.

As unknown risks loom from theprotectionist policies of new USPresident Donald Trump, Kaesercautioned that the Germancompany could not afford to becomplacent, while basking in arare glow of shareholder approvalat the group’s annual meeting asthe company’s shares jumped to a17-year high.

“I admit we don’t always succeedin everything. And risks lurkeverywhere. But we havenoticeably improved,” Kaeser said.

Siemens raised its earningsforecasts on Tuesday after itsindustrial business profit jumpedin its fiscal first quarter, lifted byits factory automation unit.

Asked about the risks andopportunities arising fromTrump’s election, Kaeser soundedclearly more concerned than threemonths ago when he had urgedpeople to “give Trump a chance”.

“The new American presidenthas a style that’s different fromwhat we’re accustomed to,” hetold a news conference ahead ofthe AGM.

“It worries us, what we see.”

The airline said pricing pressures were taking their toll despite good results

Arqiva is the only national provider of radio broadcasting and terrestrial TV

REBECCA SMITH

@BexKSmithWIZZ AIR yesterday cut its profitforecast for the full year due to fallingprices and the impact of severeweather, causing shares to close down9.26 per cent to 1,616p.

The largest budget airline inCentral and Eastern Europe carried20.1 per cent more passengers thanlast year – pushing the total for thethird quarter up to 5.7m.

Total revenue rose 9.9 per cent to€341.1m (£290.8m), while net profit

for the third quarter more thandoubled to €32.5m.

But it lowered its underlying netprofit guidance to a range of between€225m to €235m for the full year,from a forecast of €245m to €255m.

Wizz Air’s chief executive JozsefVaradi said: “Although the currentfinancial year is looking like a verygood year for Wizz Air and we remainexcited about our prospects for thenext financial year, lower fuel pricescontinue to feed through to lower airfares and this downward trend lookslikely to continue well into 2017.”

VW has faced a raft of lawsuits in relation to its scandal that unfoldedin September 2015, after the companyadmitted to building “defeat devices”to circumvent emissions tests inaround 11m cars worldwide.

It set aside more than £15bn to coverthe cost of vehicle refits on smaller 2.0litre diesel engines, and a settlementwith the US authorities.

VW ultimately secured a £3.5bndraft settlement with US regulators.

This development would mark a significant step to moving on fromthe trouble, though there are some remaining lawsuits from both USstates and investors.

VW also had positive news to reportelsewhere this week, after it overtookToyota as the biggest car maker in theworld, after its reputation, and shareprice, took a hit following the emis-sions scandal in 2015.

Toyota made 10.175m cars last year,compared to Volkswagen’s 10.31m;the first time Toyota has trailed itsGerman rival in four years.

Toyota said exports to North America, the Middle East and Africahad dropped. VW, which makes theAudi, Porsche and Skoda brands, wasboosted by solid sales in China.

AGNIESZKA FLAK

FRENCH luxury goods group LVMHwill set up a design andmanufacturing joint venture withspectacles maker Marcolin, and take a10 per cent stake in the Italiancompany, to give it more control overits prestigious eyewear brands.

LVMH is following rival Kering’slead in moving away from thetraditional licensing model, whichboosts eyewear manufacturers’ saleswhile brand owners earn royalties.

Marcolin said in a statement itwould make eyewear for LVMH’sCeline and Louis Vuitton brandsfrom 2018, aiming to graduallybecome the French group’s preferredpartner in the eyeglasses business.

The move will be a blow to Italy’sSafilo Group, the world’s second-biggest eyewear maker, whichcurrently holds LVMH licenses worth€340m (£292m), more than a quarterof its annual sales.

LVMH will own 51 per cent of thejoint venture and Marcolin the rest.

As part of the deal, LVMH willsubscribe to a reserved €22m capitalincrease at Marcolin, taking a stakeof around 10 per cent.

Rival Kering, which owns brandsincluding Gucci and Yves SaintLaurent, announced in 2014 it wouldbring its eyewear business in-houseto support profit margins with adirect presence in a steadilyexpanding €95bn market.

LVMH’s move is expected to havelittle impact on market leaderLuxottica.

Louis Vuitton owner likes the lookof eyewear so gets stake in Marcolin

WILLIAM TURVILL

@wturvillTELEPHONE mast giant Arqiva couldstill be set for a stock marketflotation, according to sources withknowledge of its situation.

It emerged yesterday that Arqiva’sowners, a consortium includingAustralian investment bankMacquarie, the Canadian PensionPlan Investment Board and IFM

Investors, could be seeking to sell thecompany.

The Telegraph reported that thegroup of owners is seekingexpressions of interest this month,with Rothschild handling theauction.

Arqiva is valued at between £5bnand £6bn.

But sources with knowledge of thesituation played down the deadlineand said all options remain open,

meaning the firm could still launchan initial public offering (IPO) on theLondon Stock Exchange.

Arqiva has around 8,000 activesites and is the only nationalprovider of radio broadcasting andterrestrial TV.

It works with a range ofcompanies, including the BBC, ITVand Sky, as well as mobile networkoperators like Vodafone, O2 andThree.

Telephone mast firm owners said tokeep options open after sale report

Wizz Air cuts profit forecast onbad weather and falling prices

LVMH owns brands including Louis Vuitton, Dior, Givenchy, Fendi and Bulgari

Reuters

Reuters

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ABURST of enthusiasm onLondon’s main index gaveway to hesitation ahead ofthe Federal Reserve’s interestrate decision, as an 80-point

gain in morning trading slipped toleave the FTSE 100 at 7,107.65 points, ameagre 0.12 per cent rise.

Hikma led the FTSE with a 3.07per cent gain. Pharma leaderspreviously met Donald Trump, whopledged to deregulate – although hehas also promised to use his talentsto renegotiate drug prices. Shirejoined in the rally, with a 1.99 percent share price increase, whileAstraZeneca was up 1.26 per cent.

Value hunters seem to believePearson was hard done by inJanuary as it fell as low as 552p (fromabove 800p) after underperforming.A 2.99 per cent gain yesterday has

Pharma swallowsa better pill fromTrump on FTSE 100

1 Feb26 Jan 27 Jan 30 Jan 31 Jan

FTSE

7,150

7,100

7,050

7,200

1 Feb7107.65

S&P ends flatbut Nasdaq upWALL Street stocks turned

positive last night after theFed’s decision on interest

rates, but gains were limited in theS&P, which snapped a four-day fall.

The Nasdaq, which is moretechnology-heavy, was lifted by a 6.1per cent rise in Apple after thecompany’s strong earnings andiPhone sales.

Data earlier in the day showed USfactory activity accelerated to a morethan two-year high in January andprivate employers boosted hiring lastmonth. However, stocks struggled togain momentum and the S&P 500avoided its fifth session of consecutivedeclines by the slightest margin.

The Dow Jones Industrial Averagerose 26.85 points, or 0.14 per cent, to19,890.94, the S&P 500 gained 0.68points, or 0.03 per cent, to 2,279.55and the Nasdaq Composite added27.87 points, or 0.5 per cent, to5,642.65.

Dow component Exxon Mobilslipped 1.1 per cent after a string ofprice target cuts from brokerages. Theoil major reported results on Tuesday.

RSA announced yesterday that it will publish full year results on 23 February, andanalysts at Canaccord Genuity responded with a dramatic hike in the insurer’s targetprice, which climbs from 475p to 600p. RSA retains a “hold” rating, with the firmexpected to be bolstered by substantial FX tailwinds. The non-life insurer also sawdividend forecasts for 2017 and 2018 increased. No pressure for those results, then.

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1 Feb

572

As sure as eggs is eggs, real estate firm Assura has seen its rating increased from“hold” to “buy” by analysts at Liberum. After the firm released a trading updateyesterday, Liberum said the firm, which retains a target price of 62p, could expect tosee continued improvement in rental growth. The analysts further said that recentshare price weakness was “unwarranted” given the predictability of the business.

To appear in Best of the Brokers, email your research to [email protected]

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ASSURA

31 Jan 1 Feb27 Jan 30 Jan

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helped it backed to 637.50p.Meanwhile, Dixons Carphone lost

1.08 per cent as Charles Dunstonemoved back to TalkTalk, thebroadband operator he founded.Their loss was TalkTalk’s gain, as theannouncement of Dido Harding’sdeparture boosted shares on theFTSE 250 by over seven per cent.

In association with

CLYDE & CODavid Hansom has beenappointed as a partner inglobal law firm Clyde & Co’sinfrastructure group, where hewill lead the firm’s publicprocurement offering. David isa leading procurement lawyerwith over 15 years’ experience.He specialises in publicprocurement law with sectorexpertise across transport,energy, education, health, technology and waste. Hejoins from Veale Wasbrough Vizards, where he waspartner and national head of its public sector team.

He was previously at Eversheds. He has significantexpertise in procurement structuring of real estatedevelopment projects as well as advising on publicsector funding, trading and state aid issues in thecontext of procurement projects. David also hasprocurement litigation experience.

CARTER JONASSteven Drennan has been appointed as partner innational property Carter Jonas’s infrastructure team.Steven will be based out of Carter Jonas’s head officein Chapel Place, London, and will work closely withthe team, which is 39 people-strong, across the UKincluding in its newly opened office in Birminghamcity centre. He joins from Bruton Knowles and has

more than 16 years of experience advising on largeutilities schemes. Having started his career atHumberts Leisure, he spent five years as an estatessurveyor at Southern Water. Steven has since gained awealth of experience advising on issues of companypolicy, land assembly and guidelines relating to landand property in the water sector. He has worked withboth public and private sector clients includingThames Water, Southern Water, Sutton & East SurreyWater, Kent County Council and the EnvironmentAgency.

UTILITYWISELeading independent utility cost managementconsultancy Utilitywise has appointed Kathie Child-

Villiers as a non-executive director. Kathie, who willserve as chair of the audit committee, has had anextensive career as a corporate finance adviser to theenergy sector in the UK, Europe and the US. Kathiebrings a wealth of experience to the new position. Keyroles include eight years as managing director,resources and energy group at HSBC’s global bankingarm, where she led the advisory work on a range ofmajor European utility consolidation transactionswhich transformed and shaped the sector; andmanaging director, energy and power group at MerrillLynch & Co, where she advised on numeroustransactions within the utility industry. Kathie iscurrently a non-executive director of Bank of MontrealCapital Markets and Constantine Group.

CITY MOVES WHO’S SWITCHING JOBS

To appear in CITYMOVES please email your career updates and pictures to [email protected]

A REPORT by two parliamen-tary committees has calledfor a review of equality legis-lation, after a receptionistengaged by outsourcing

firm Portico was sent home withoutpay when she refused to wear highheels while temping at PwC.

From what I could tell, the temp’scase consisted of three claims. Thefirst was that wearing high heels wasbad for her health. The second wasthat the rule was discriminatory, asher male colleagues were notrequired to wear high heel shoes. Thethird was that heels objectifiedwomen.

Let’s examine the health claim.After the temp spoke out, the internetwas flooded with testimonials fromwomen who stated that high heelswere like “torture” and left them in“agony”. We are talking about two-inch heels, by the way, not Louboutinstilettos. I’ve seen orthopedic shoeswith heels higher than that. I alsochecked the NHS guidelines, whichstate: “Ideally, you should wear shoes

I N 2008, monetary authoritiesaround the world embarked onan unprecedented series of exper-iments. As economies tanked andgovernments throttled back on

fiscal measures in the face of hugedebts and deficits, people looked tocentral bankers to use monetary policyto stimulate economic growth. Sincethen we have seen a range of once out-landish tools deployed, from historical-ly low policy rates to quantitativeeasing.

Is this era now coming to a close? Atthe Conservative Party conference inOctober, Prime Minister Theresa Mayattacked the distributional conse-quences of QE and floated a moreactive fiscal policy. The OECD’s 2016November Economic Outlook con-tained a chapter on “Using the fiscallevers to escape the low-growth trap”.Steven Mnuchin, President Trump’spick for Treasury secretary, told FoxBusiness recently that “the problemfor the last eight years, there’s been noeconomic growth” and promised ashift to fiscal policy with the “largesttax cut since Reagan”.

Mnuchin is right to say that econom-ic growth has been poor in recentyears when compared to previousrecoveries. But it is unfair to blamemonetary policy-makers entirely forthis. With the tools at their disposalthey are simply unable to generatehigh levels of real GDP growth.

A central bank has three tools. First,control of the size of the supply of basemoney; second, control of the price atwhich this base money is borrowed(the base rate); third, setting limits onthe amount of broad money whichcan be pyramided out from this basemoney (reserve ratios).

Each of these has been a primary pol-icy tool at some time in the past. Noneof them, however, is “economicgrowth”. When monetary policy-mak-

ers have been tasked with boostingsuch growth, they have had to do sousing instruments which affect it onlyindirectly.

Under QE, central banks printed upnew base money and handed it over tofinancial institutions in exchange forassets. It was thought that these finan-cial institutions would take this newcash and use it to make loans to sup-port investment spending, generatinggrowth. Also, by buying up longerterm dated assets, monetary authori-ties could push their price up, theiryield/interest rate down, and stimulateinvestment by making it more prof-itable.

But whether QE does boost growth islargely out of the monetaryauthority’s hands. Financial institu-tions – especially under regulatorypressure such as Basel III – may justtake that cash and use it to shore uptheir balance sheets. Even if they try tolend, they might be unable to findwilling borrowers. Richard Koo arguedthat this was the reason for QE’sfailure to boost GDP growth in Japan.Likewise, even if QE forces down long-term interest rates, investors could beso pessimistic about potential returnsthat it still doesn’t pay for them toinvest.

That has been the case since 2008. Asa result, QE has generated little if anyeconomic growth and has simplyrecapitalised battered banks. Indeed,for all the talk about stimulatinggrowth, this might have been the pur-pose all along.

Much the same goes for low baserates. If the central bank reduces theprice of liquidity by lowering rates, itshould incentivise financial institu-tions to expand their balance sheets bylending.

But again, if financial institutionsare primarily concerned with fixingtheir balance sheets, the effort to get

be the case now with the rate down to4.8 per cent.

There could be more scope for suc-cess in the US, whose unemploymentfigures are notoriously optimistic, andthe Eurozone, where many countriesstill have double digit rates. But thereis more to consider than just the rawrates. If the cost of hiring unemployedworkers is too high, they won’t behired. These supply-sideconsiderations loom larger now in theUS, thanks to the regulatory thicket ofObamacare, and the Eurozone, wherelabour regulations make it difficult tohire even where unemployment isover 20 per cent. Slack will stay slack ifregulations block you from taking itup.

So what can monetary authoritiesdo? Ordinarily, they can facilitate eco-nomic calculation by adhering to apredictable rules-based policy. Inextremis, they can throw a mattress ofliquidity under a collapsing financialsystem. Indeed, their failure to do so iswhat Milton Friedman and Anna JSchwartz argued exacerbated theGreat Depression. When Ben Bernankesaid to Friedman and Schwartz in2002, “Regarding the GreatDepression. You’re right, we did it.We’re very sorry. But thanks to you, wewon’t do it again”, that is what hemeant.

But the goal of growing GDP isbeyond them. In 2008 monetary poli-cy-makers took up a task which theywere unequipped to accomplish. Ifpoliticians and pundits had been morewilling to ask what monetary policy-makers could do rather than focusingon what they should do, the age ofactivist monetary policy might nothave been quite so disappointing.

£ John Phelan is chief economist atAgrimoney and fellow of the CobdenCentre.

with a low to moderate heel that sup-ports and cushions your arches andheels. Avoid wearing shoes with noheels.” Personally, I prefer bare feet,but well-fitting high heel shoes are nomore uncomfortable than any otherpiece of clothing.

The second claim also lacks credibil-ity. Apparently, the temp had suggest-ed that, for the sake of equality, hermale colleagues at PwC should wearheels too. This is just daft. When shereported to the PwC office on her firstday, she was asked to change into adress. She neither found that requestdemeaning, nor suggested that hermale colleagues change into a dress aswell. So why object to shoes?

If the male receptionists at PwCwere allowed to wear t-shirts and base-ball hats, that would have been dis-criminatory. Instead, they had toadhere to the same strict dress code:they wore a suit and tie and classicshoes. I don’t know a single man wholikes to wear a tie, but I’ve yet to seeone pressing discrimination chargeson that basis.

And finally there is the third claimabout sexualisation. When I wasdoing my first internship at the BBCbureau in New York in 1989, Americawas in the midst of a hard-core femi-nist wave, when women wore paddedsuits and buttoned blouses, becausegod forbid we would be regarded assex objects. But nevertheless we allwore heels. Not because we secretlyhoped to be objectified, but becauseheels gave us authority. They addedgrace to our posture and confidenceto our step. They made us look elegantand business-like at the same time.

So please, can we get over this?Being asked to wear two-inch heels isnot the same as being asked to wear a

revealing dress. Heels are not oppres-sive, objectifying or hazardous to ourhealth. They are not a symbol of maletyranny. They are not a violation ofhuman rights. They are a dress code –and if you don’t like heels, there areplenty of jobs where they are notrequired.

Since the PwC incident, the temphas been called brave and courageous,a tireless campaigner for women’srights. With the very real danger ofideological slogans being howled atme, can I say that all that the case didwas make feminists look petty.

At the age of 15, Golda Meir ranaway from home because her parentsdid not let her finish school and shewanted to study. It was 1913. Meirwent on to become the first femalePrime Minister of Israel. This is whatcourage looks like. Our tempingreceptionist, on the other hand,refused to wear shoes to work. Let’snot make her into a feminist icon.

£Elena Shalneva is a communicationsconsultant and non-executive director.

Let’s not make feminist idols of womenwho refuse to wear high heels at work

QE has generatedlittle if any economicgrowth and hassimply recapitalisedbattered banks

Stop expecting central bankers togrow the economy: They can’t

16 THURSDAY 2 FEBRUARY 2017OPINION CITYAM.COM

them to expand those balance sheetswill be in vain. Likewise, if potentialborrowers are looking to deleverage,then the attempt to get them to takeon more debt will flounder. As JKGalbraith put it, monetary policy islike a string. You can pull it but youcan’t push it; sufficiently high policyrates will drain credit from a financialsystem, but low rates are not guaran-teed to flood it with credit.

Even if there had been willing inter-mediaries in the financial sector andeager borrowers in the private sector, itis still not clear that expansive mone-tary policy could have driven higherreal GDP growth. A monetary expan-sion will simply produce inflationunless there is spare capacity or “slack”in the economy. While that mighthave been the case in Britain between2008 and 2013, when unemploymentwas around 8 per cent, it is unlikely to

Dylan Kissane

DEBATE

YES

Denis MacShane

NOThe revelations that Francois Fillon hasbeen using parliamentary funds to payhis wife and family are now getting sostrong and so reeking that it is hard tosee how he can continue. Fillonportrayed himself as MonsieurIrréprochable, France’s Mr Clean, andnow he has been infected by the EnglishMPs’ disease of putting wives, sons anddaughters on the parliamentary payroll.But Marine Le Pen has similar problems.Yesterday, the European Parliamentdemanded she pay back €300,000 shetook in parliamentary expenses andused to pay two associates who didparty political work. She is up to her earsin dodgy loans from Kremlin controlledbanks and any spotlight on exoticpolitical money changing hands catchesher in its beam. The main beneficiary isEmmanuel Macron, the new boy on theFrench block offering a pro-reform, pro-EU, pro-market new beginning. He is arich banker so doesn’t need to helphimself from parliamentary funds.

£Denis MacShane is the UK’s formerEurope minister who regularly writes andcomments on French media.

Q: As scandal hitsthe frontrunner forthe FrenchpresidencyFrancois Fillon, isthis good news forMarine Le Pen?

John Phelan

After five years of mismanagement byFrancois Hollande’s Socialist left, theelectorate in France is primed for change.Until recently, Francois Fillon seemed tobe the natural choice: a known quantityon the centre-right, a devout Catholic,and the man endorsed by LesRépublicains as the best bet to set Franceon a desperately needed new course. Butwith the scandal over payments made tohis wife sowing seeds of doubt, thepresumption that he would defeat front-runner Marine Le Pen in the secondround of presidential voting is lookingshaky. If Fillon falls to the wayside andthe far-left socialist challenger BenoitHamon proves equally unelectable, whois left to challenge the leader of FrontNational? With Emmanuel Macron theonly other serious contender for thesecond round, Le Pen will be feelingconfident this week that her chances ofwinning the country’s top job have onlybeen improved by Fillon’s poorly timedproblems.

£Dylan Kissane is a France-based writerand director at The CoSMo Company.

Elena Shalneva

EDITED BY TOM WELSH

FORUM

I N SOME ways, the Brexit referen-dum settled a long-running ques-tion. However, it has also raisedmore profound issues that thisgovernment now needs to address.

These include the question ofwhether we should adopt a policy ofopenness, free trade and liberalisationof regulation at home. And then,should we take the lead in promotingsuch a policy internationally,especially given the current circum-stances in the US?

Britain is well placed to take thatlead, but it will require intellectualcourage, desire and imagination to doso. If we grasp the nettle, we couldmake an enormous difference, notjust to the lives of British citizens, butto the lives of many of the poorest peo-ple in the world. In the last fewdecades, huge numbers of people havebeen pulled out of poverty becausetheir governments have liberalisedtrade and adopted institutionalreforms domestically. But, perhaps,the trade agreement model that isoften adopted needs rebooting.

A document published this week byCafod, an aid charity, raises some ofthese issues. In the past, I have had anumber of disagreements with Cafod.Indeed, debating with them has beenimportant in shaping many of myintellectual interests.

At just the right time – and whenorganisations such as Oxfam seembent on presenting a ratherdestructive narrative – Cafod hasreleased a paper which is animportant contribution to the debate

on trade. On some issues I stilldisagree with them. However, onmany others I find myself agreeingwith Cafod, though perhaps for differ-ent reasons. But change often comeswhen people come to the same conclu-sions about policy from different per-spectives.

By way of example, let’s take twoissues.

Cafod argues that we should removeour trade barriers without expectinganything in return from other coun-tries. There is much to be said for this.Our trade barriers hurt British con-sumers and poor-country exportersand, ultimately, harm UK industrieswith an export focus. For example, westill have very high tariff barriers of upto 30 per cent on processed foods suchas coffee and chocolate. We shouldjust remove them.

Cafod might believe that allowingpoor countries to keep their trade bar-riers is good for those countries. Itisn’t. But we should not wait for othersto do the right thing by their citizensbefore we do the right thing by ours.

Cafod also objects to the way inwhich trade negotiations take place insecret. The charity perhaps over-eggs

this, but there is an important under-lying issue.

Trade deals have become extraordi-narily complex because most tradebarriers relate to regulation. When itcomes to agriculture, for example, reg-ulation of GM foods is used to keepimports out. In financial services, wemake enormous efforts to makealready complex national regulatorysystems internationally compatible.This all requires a great deal of com-mercial expertise. The result can be amarathon process and trade deals thatcreate regulatory regimes that benefitincumbents and large firms.

Outside the EU, the UK governmentcan be more relaxed about not usingtrade deals to harmonise regulationexcept, perhaps, in extreme cases ofhealth and safety. Products and servic-es that abide by UK regulations can beclearly labelled as such andconsumers can then make their ownchoices.

We cannot go on negotiating tradedeals that resemble the EncyclopaediaBritannica. Such deals should go thesame way as the hard copy of thatgreat set of books. We should give anintellectual and political lead so thatcountries such as India and mostAfrican nations might follow. Such apolicy would enrich consumers anddisempower elites.

£ Philip Booth is professor of finance,public policy and ethics at St Mary’sUniversity, Twickenham, and senioracademic fellow at the Institute ofEconomic Affairs.

WE WANT TO HEAR YOUR VIEWS › E:[email protected] COMMENT AT:cityam.com/forum

17THURSDAY 2 FEBRUARY 2017 OPINIONCITYAM.COM

On the day the Conservative Brexitgovernment kick-started the Article 50process to take Britain out of the world’slargest single market, Liberal Democratsheld a “Business and Brexit” event. Wewere determined to listen to wealthcreators after the head of the CBI statedthat business is “reeling” from the PrimeMinister’s hard Brexit speech.While the government has stoppedlistening to business, and Labour fightsamong itself, Liberal Democrats spent theday talking to businesses and tradebodies, including the CBI, BritishHospitality Association, the FSB, Lloyd’s ofLondon, Boeing, the British Association ofPharmaceutical Industries and AT&T.These are people who create jobs anddrive our economy – they must beproperly represented in the Brexitnegotiations.At Davos, Goldman Sachs were reportedto have expressed deep concern thatTheresa May is apparently indifferent tothe need to secure passporting rights forfinancial services. Is it a coincidence that50 banks – including Goldmans andMorgan Stanley – have met with financeregulators in Frankfurt to talk abouttransferring operations there from theCity?If the Conservatives do drag us out of theSingle Market, it would be the singlebiggest economic blunder since we failedto the join the fledgling Common Market.In fighting for British firms in Europe, theLiberal Democrats are now the real partyof business.Don Foster, Liberal Democrat businessspokesperson

LETTERSTO THE EDITOR

UK is less than 2:1 againstTrump’s ban. It’s notpopular but it’s not nearlyas universally hated asyou might expect.@andrew_lilico

Depressing to see theLabour leader imply (“Ihave in my hand a pieceof paper”) that the Naziregime was no worse thanAmerica in 2017.@MrTCHarris

A third of Lib Dem MPs donot support Farron’spledge to block Article 50.@rolandmcs

Very sad Sir Ken Morrisondied aged 85! Brilliantretailer. Regulator nearlyruined his business. Took10 months to approvepurchase of Safeway.@truemagic68

During the GreatRecession, all SouthernEuropeans becamefinancial analysts. AllAmericans are about tobecome constitutionallawyers.@PCMagalhaes

BEST OFTWITTER

Lib Dems: Party ofbusiness

Britain can be a world leader infree trade –if it consigns enormous trade deals to history

Philip Booth

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Gold ............................................................1212.80 20.00Silver...............................................................17.29 0.19Brent Crude ...................................................55.70 0.47Krugerrand ................................................1209.80 12.80Palladium....................................................750.00 22.00Platinum......................................................987.00 9.00Tin Cash Official.......................................20075.00 375.00Lead Cash Official ......................................2355.00 -10.00Zinc Cash Official .......................................2847.50 80.50

Copper Cash Official..................................5920.50 30.50

Aluminium Cash Official ...........................1820.00 13.00

Nickel Cash Official ...................................9880.00 505.00Aluminium Alloy Cash Official...................1535.00 0.00

Cocoa Futures ............................................2109.00 6.00

Coffee 'C' Futures ..........................................150.12 0.57

Feed Wheat Futures ....................................148.00 0.95

Soybeans Futures Continuation Contract ..1037.20 12.60

AB INBEV .........................................................96.65 0.50 119.60 92.13ADIDAS N ........................................................147.30 1.65 160.30 84.77AIR LIQUIDE....................................................100.30 0.30 106.55 85.96AIRBUS GROUP .................................................63.10 0.34 66.32 48.07ALLIANZ...........................................................157.90 1.10 163.85 118.35ASML HLDG ......................................................112.85 0.45 117.80 70.54AXA P ................................................................23.16 0.44 25.05 16.11BANCO SANTANDER ............................................5.21 0.06 5.49 3.15BASF N .............................................................89.77 0.65 91.55 56.01BAYER N..........................................................102.65 0.35 112.00 83.45BBVA...................................................................6.19 -0.09 6.70 4.43BMW I ..............................................................84.62 0.45 91.76 63.38BNP PARIBAS-A-..............................................60.63 1.45 63.35 35.27CIE DE SAINT-GOBAIN......................................46.20 0.70 48.12 31.47CRH PLC .............................................................15.16 -0.23 16.93 12.81DAIMLER N .......................................................70.02 0.67 73.23 50.83DANONE ...........................................................58.46 0.47 70.53 57.59DEUTSCHE BANK N ............................................19.18 0.79 19.97 9.90DEUTSCHE POST N .............................................31.29 0.34 32.18 19.55DEUTSCHE TELEKOM N ......................................16.03 -0.14 16.64 13.54E.ON N ................................................................7.05 -0.05 8.84 5.99ENEL N................................................................3.87 0.00 4.24 3.33ENGIE ...............................................................10.89 -0.18 15.21 11.02ENI N..................................................................14.13 -0.08 15.92 10.93ESSILOR INTL P ...............................................106.40 -2.00 124.55 93.41FRESENIUS I......................................................73.59 0.66 75.07 52.39IBERDROLA.........................................................5.79 -0.05 6.26 4.60INDITEX ............................................................30.53 -0.01 33.47 26.60ING GROUP........................................................13.49 0.24 14.05 8.30INTESA SANPAOLO .............................................2.20 0.03 2.79 1.52KON AH DEL ......................................................19.76 0.07 23.03 17.89L'OREAL P .......................................................168.90 0.55 177.90 146.20LVMH ..............................................................188.00 1.40 193.35 130.55MUENCHENER RUECKV N.................................174.65 0.85 187.35 140.90NOKIA .................................................................4.21 0.06 5.88 3.66ORANGE ............................................................14.27 -0.06 16.67 12.38ROY.PHILIPS.......................................................27.19 0.06 29.45 20.05SAFRAN............................................................62.73 0.03 69.89 48.87SANOFI .............................................................75.78 1.29 79.07 62.50SAP ...................................................................84.10 -0.53 85.52 64.62SCHNEIDER ELECTRIC........................................68.38 2.16 68.95 45.32SIEMENS N ......................................................122.80 6.55 120.50 79.23SOCIETE GENERALE ..........................................46.03 0.77 49.38 25.00TELEFONICA........................................................8.89 -0.03 9.92 7.15TOTAL ...............................................................46.72 0.06 49.50 33.28UNIBAIL-RODAMCO.........................................214.00 1.05 252.95 203.10UNILEVER CERT.................................................37.49 0.09 43.11 36.22VINCI ...............................................................65.28 0.38 69.80 49.93VIVENDI..............................................................17.10 0.16 20.09 14.87VOLKSWAGEN VZ I ..........................................145.70 1.80 156.55 92.70

Price Chg High Low

EU SHARES

3M....................................................................175.17 0.35 182.27 146.05ABBVIE ............................................................60.89 -0.22 68.12 51.60ALPHABET-A ...................................................815.24 -4.95 867.00 672.66ALPHABET-C...................................................795.70 -1.10 841.95 663.06ALTRIA GROUP..................................................71.39 0.21 72.00 58.84AMAZON.COM.................................................832.35 8.87 847.21 474.00AMERICAN EXPRESS.........................................76.76 0.38 78.02 50.27AMGEN............................................................159.67 2.99 176.85 133.64APPLE .............................................................128.75 7.40 130.49 89.47AT&T ................................................................42.06 -0.10 43.89 35.79BANK OF AMERICA...........................................22.89 0.25 23.55 10.99BERKSHIRE HATHAWY-B.................................163.61 -0.53 167.25 123.55BOEING CO ......................................................163.97 0.55 170.00 102.10CATERPILLAR .....................................................95.11 -0.55 99.46 59.80CHEVRON.........................................................111.00 -0.35 119.00 79.85CISCO SYSTEMS ................................................30.50 -0.22 31.95 22.46CITIGROUP .......................................................56.05 0.22 61.63 34.52COCA-COLA CO..................................................41.26 -0.31 47.13 39.88COMCAST-A.......................................................75.61 0.19 76.87 54.38DU PONT NEMOURS& .......................................76.34 0.84 78.36 53.48EXXON MOBIL...................................................82.94 -0.95 95.55 73.55FACEBOOK-A ...................................................133.23 2.91 133.50 96.82GENERAL ELECTRIC ..........................................29.69 -0.01 33.00 27.10GOLDMAN SACHS GR......................................230.67 1.35 247.77 138.20HOME DEPOT...................................................137.44 -0.14 139.37 109.62IBM..................................................................174.29 -0.23 179.25 116.90INTEL ................................................................36.52 -0.30 38.45 27.68JOHNSON & JOHNSO........................................113.23 -0.02 126.07 99.78JPMORGAN CHASE...........................................84.95 0.32 88.17 52.50MASTERCARD-A.............................................105.00 -1.33 111.07 78.52MCDONALD'S...................................................122.42 -0.15 131.96 110.33MEDTRONIC......................................................76.00 -0.02 89.27 69.35MERCK..............................................................62.10 0.11 65.46 47.97MICROSOFT ......................................................63.58 -1.07 65.91 48.04NIKE -B-...........................................................53.02 0.12 65.44 49.01ORACLE ............................................................39.84 -0.27 42.00 34.47PEPSICO...........................................................103.01 -0.77 110.94 96.09PFIZER ..............................................................31.67 -0.06 37.39 28.25PHILIP MRRS INT..............................................95.95 -0.18 104.20 86.78PROCTER&GAMBLE ...........................................87.33 -0.27 90.33 79.10SCHLUMBERGER................................................83.17 -0.54 87.84 66.10THE KRAFT HEINZ .............................................88.41 -0.88 90.54 70.01TRAVLR COMP..................................................116.54 -1.24 123.09 103.07TWITTER............................................................17.24 -0.38 25.25 13.73UNITEDHEALTH GRO ........................................162.71 0.61 164.00 108.83UTD TECHNOLOGIES.........................................108.18 -1.49 112.83 83.85VERIZON COMM................................................48.39 -0.62 56.95 46.01VISA-A .............................................................82.44 -0.27 84.27 66.12WAL-MART STORES..........................................66.23 -0.51 75.19 62.35WALT DISNEY ...................................................111.30 0.65 111.99 86.25WELLS FARGO...................................................55.91 -0.42 58.02 43.55

COMMODITIES CREDIT & RATESBoE IR Overnight.........................................0.250 0.00BoE IR 7 days..............................................0.250 0.00BoE IR 1 month ...........................................0.250 0.00BoE IR 3 months.........................................0.250 0.00BoE IR 6 months.........................................0.250 0.00LIBOR Euro - overnight ...............................-0.411 0.00LIBOR Euro - 12 months ..............................-0.101 -0.01LIBOR USD - overnight................................0.690 0.00LIBOR USD - 12 months .................................1.713 -0.01Halifax mortgage rate ................................3.990 0.00

Euro Base Rate ...........................................0.000 0.00Finance house base rate .............................1.000 0.00US Fed funds .................................................0.67 0.00US long bond yield........................................3.08 0.03Euro Euribor ...............................................-0.379 0.00The vix index.................................................11.81 -0.18The baltic dry index..................................800.00 -16.00Markit iBoxx EUR ......................................223.88 -0.59Markit iBoxx GBP........................................310.63 -1.42Markit iTraxx ................................................72.95 0.73

Price Chg High Low

US SHARES

€/$ 1.0766 0.0028

€/£ 0.8507 0.0075

€/¥ 121.95 0.3020

/€ 1.1755 0.0108

/$ 1.2656 0.0078

/¥ 143.33 1.6020

BAE Systems . . . . . . . . .582.5 0.5 617.5 459.7Cobham . . . . . . . . . . . . .135.1 -0.5 221.4 127.5Meggitt . . . . . . . . . . . . .413.5 -4.4 482.0 349.0QinetiQ Group . . . . . . . .269.3 5.6 272.2 212.0Rolls-Royce Holdi . . . . .668.0 0.5 831.0 512.5Senior . . . . . . . . . . . . . . .197.7 -0.2 242.0 171.6Ultra Electronics . . . . .1840.0 -7.0 2030.0 1595.0

GKN . . . . . . . . . . . . . . . .346.6 3.2 351.3 248.6

Aldermore Group . . . . .220.3 1.3 238.5 104.8Barclays . . . . . . . . . . . . .222.1 2.7 239.0 127.2BGEO Group . . . . . . . .3042.0 82.0 3379.0 1570.0CYBG . . . . . . . . . . . . . . .274.4 4.7 302.2 182.8HSBC Holdings . . . . . . .676.8 0.4 687.6 416.2Lloyds Banking Gr . . . . .65.4 0.5 73.7 47.6Metro Bank . . . . . . . . .3425.0 96.0 3425.0 1623.0Royal Bank of Sco . . . . .224.2 2.4 257.3 148.9Shawbrook Group . . . . .251.0 1.0 311.7 132.0Standard Chartere . . . .780.2 6.1 789.2 386.7Virgin Money Hold . . . . .317.1 5.6 381.5 205.0

Barr (A.G.) . . . . . . . . . . .510.0 8.0 614.5 455.3Britvic . . . . . . . . . . . . . .632.0 6.5 732.5 523.5Coca-Cola HBC AG . . .1800.0 -12.0 1840.0 1265.0Diageo . . . . . . . . . . . . .2188.0 -15.5 2268.0 1745.0

Croda Internation . . . .3348.0 0.0 3669.0 2663.7Elementis . . . . . . . . . . . .271.7 3.8 279.4 180.6Johnson Matthey . . . .3282.0 31.0 3540.0 2230.0Synthomer . . . . . . . . . .455.0 4.2 459.8 275.1Victrex plc . . . . . . . . . .1900.0 0.0 1982.0 1367.0

AO World . . . . . . . . . . . .161.3 1.4 189.3 120.5Auto Trader Group . . . .398.0 -2.0 424.1 313.8B&M European Valu . . .304.8 4.5 311.0 232.5Brown (N.) Group . . . . .227.7 9.1 362.1 160.4Card Factory . . . . . . . . .250.1 0.4 381.0 236.5Convatec Group . . . . . .246.3 0.4 255.5 225.0Debenhams . . . . . . . . . .54.4 1.9 81.6 51.4Dignity . . . . . . . . . . . . .2415.0 -30.0 2871.0 2273.0Dixons Carphone . . . . . .312.5 -3.4 464.6 281.6Dunelm Group . . . . . . .681.5 1.5 1018.0 663.0Halfords Group . . . . . . .360.7 -1.3 449.1 305.6Inchcape . . . . . . . . . . . .721.0 3.5 754.0 581.0JD Sports Fashion . . . . .350.5 3.2 355.0 206.2Just Eat . . . . . . . . . . . . .548.5 9.0 599.5 329.1Kingfisher . . . . . . . . . . .334.4 -1.8 386.2 306.7Marks & Spencer G . . . .339.4 3.9 446.1 285.2Next . . . . . . . . . . . . . . .3873.0 43.0 7020.0 3826.0Pets at Home Grou . . . .198.6 -1.4 285.0 195.6Saga . . . . . . . . . . . . . . . .183.8 -1.0 225.9 173.9Sports Direct Int . . . . . .298.4 14.4 425.1 252.2Ted Baker . . . . . . . . . .2842.0 0.0 3092.0 2124.0WH Smith . . . . . . . . . .1637.0 7.0 1878.0 1447.0

Balfour Beatty . . . . . . .260.8 2.3 295.1 190.8CRH . . . . . . . . . . . . . . .2794.0 24.0 2895.0 1637.0Galliford Try . . . . . . . . .1372.0 23.0 1474.0 785.0Ibstock . . . . . . . . . . . . . .188.0 1.2 223.7 114.7Keller Group . . . . . . . . .839.5 26.5 1024.0 644.5Kier Group . . . . . . . . . .1404.0 24.0 1422.0 932.0Marshalls . . . . . . . . . . .299.2 10.2 357.3 206.5Polypipe Group . . . . . . .347.2 9.2 350.5 221.5

Drax Group . . . . . . . . . .370.7 0.3 384.6 217.2SSE . . . . . . . . . . . . . . . .1475.0 -14.0 1628.0 1321.0

Halma . . . . . . . . . . . . . .913.5 -11.5 1126.0 773.5Morgan Advanced M . .309.3 8.1 311.6 192.3Renishaw . . . . . . . . . .2856.0 6.0 2930.0 1625.0Spectris . . . . . . . . . . . .2414.0 -3.0 2488.0 1442.0

Aberforth Smaller . . . .1142.0 -1.0 1159.0 849.0Alliance Trust . . . . . . . .646.5 -3.0 663.5 450.8Bankers Inv Trust . . . . .707.5 6.5 723.0 522.0BH Macro Ltd. GBP . . .2085.0 -6.0 2134.0 1875.0British Empire Tr . . . . . .648.5 -0.5 664.0 412.0Caledonia Investm . . .2750.0 -10.0 2765.0 2112.0City of London In . . . . .393.4 -1.2 415.0 341.5Edinburgh Inv Tru . . . .694.0 -1.0 739.5 620.0Electra Private E . . . . .4645.0 -8.0 4852.0 3300.0Fidelity China Sp . . . . . .176.8 -1.9 198.2 110.5Fidelity European . . . . .185.0 -1.8 191.1 151.2Finsbury Growth & . . . .649.5 0.5 676.0 532.5Foreign and Colon . . . .545.0 -1.5 556.0 391.2GCP Infrastructur . . . . . .124.6 0.8 134.8 115.2Genesis Emerging . . . .606.5 -3.0 644.0 412.5Greencoat UK Wind . . . .121.7 0.2 122.1 101.1HarbourVest Globa . . .1190.0 -5.0 1215.0 875.0HICL Infrastructu . . . . . .160.5 -0.5 185.1 151.6International Pub . . . . . .154.1 0.4 162.6 139.1John Laing Infras . . . . . .131.5 0.0 140.4 114.2JPMorgan American . . .359.6 -1.3 376.0 245.9JPMorgan Emerging . .695.0 -6.5 765.0 483.0JPMorgan Indian I . . . .628.0 -2.0 690.0 434.8Mercantile Invest . . . . .1755.0 0.0 1760.0 1375.0Monks Inv Trust . . . . . .596.0 3.5 609.0 361.1Murray Internatio . . . . .1135.0 -7.0 1188.0 763.0NB Global Floatin . . . . . .97.3 -0.3 98.1 84.6P2P Global Invest . . . . .782.0 0.0 949.0 730.0Perpetual Income . . . .356.6 0.6 391.9 332.0Personal Assets T . . .39270.0 -20.040500.034920.0Polar Capital Tec . . . . . .871.0 -3.5 889.0 503.5RIT Capital Partn . . . . .1851.0 -5.0 1885.0 1512.0Riverstone Energy . . .1289.0 19.0 1355.0 725.0Scottish Inv Trus . . . . . .766.0 3.0 804.0 544.5Scottish Mortgage . . . .339.2 -0.7 344.4 220.6Temple Bar Inv Tr . . . .1214.0 -6.0 1262.0 940.0Templeton Emergin . . .610.0 -4.5 624.5 373.0The Renewables In . . . .110.0 -0.6 111.3 90.3TR Property Inv T . . . . .287.8 1.3 321.0 241.7Witan Inv Trust . . . . . . .910.0 0.0 925.0 683.0Woodford Patient . . . . .92.2 0.2 100.8 81.0Worldwide Healthc . . .2129.0 -6.0 2281.0 1596.0

3i Group . . . . . . . . . . . .708.0 8.0 725.5 389.83i Infrastructure . . . . . . .191.0 0.2 200.0 166.5Aberdeen Asset Ma . . . .258.1 -4.0 348.6 209.3Allied Minds . . . . . . . . .390.0 -8.1 479.4 285.0Arrow Global Grou . . . .310.0 0.0 315.0 178.3Ashmore Group . . . . . . .314.6 4.6 375.5 201.8Brewin Dolphin Ho . . . .312.5 -0.6 314.0 210.2

Charles Taylor . . . . . . . .211.0 -1.0 327.5 201.0City of London In . . . . .359.5 2.0 400.1 285.0Close Brothers Gr . . . .1448.0 -2.0 1477.0 989.5CMC Markets . . . . . . . . . .109.1 -1.8 290.8 94.6Hargreaves Lansdo . . .1357.0 4.0 1389.0 1056.0Henderson Group . . . . .212.1 -5.9 270.7 195.0IG Group Holdings . . . . .527.5 -5.5 959.5 450.7Intermediate Capi . . . .684.0 -8.5 719.5 454.2International Per . . . . . .177.1 2.6 341.2 160.6Investec . . . . . . . . . . . .560.5 -1.0 577.5 402.7IP Group . . . . . . . . . . . .190.3 -1.6 200.0 120.4John Laing Group . . . . .265.6 1.3 281.5 200.0Jupiter Fund Mana . . . .415.2 13.7 453.9 328.9Liontrust Asset M . . . . .393.6 -2.4 403.0 235.0LMS Capital . . . . . . . . . . .46.0 -1.9 72.0 45.8London Finance & . . . . .42.5 0.0 46.0 34.0London Stock Exch . . .3197.0 26.0 3204.0 2123.0Man Group . . . . . . . . . . .137.0 4.0 162.4 107.3OneSavings Bank . . . . .349.1 10.4 358.7 176.2Paragon Group Of . . . .407.5 3.7 417.0 227.4Provident Financi . . . .2642.0 -83.0 3328.0 2164.0Rathbone Brothers . . .2073.0 -6.0 2307.0 1590.0Real Estate Credi . . . . . .163.0 -0.3 174.0 143.0Record . . . . . . . . . . . . . . .38.0 -0.8 40.0 24.0S&U . . . . . . . . . . . . . . .2060.0 -20.5 2610.0 1992.5Sanne Group . . . . . . . . .653.0 31.0 653.0 320.0Schroders . . . . . . . . . .2942.0 8.0 3047.0 2049.0SVG Capital . . . . . . . . . .712.0 1.5 720.0 477.4TP ICAP . . . . . . . . . . . . .470.2 5.5 471.4 275.0VPC Specialty Len . . . . . .77.8 0.0 96.1 70.5Walker Crips Grou . . . . .40.0 0.0 49.5 39.0

BT Group . . . . . . . . . . . .305.6 1.8 496.0 302.1TalkTalk Telecom . . . . .168.4 11.9 272.8 152.5Telecom Plus . . . . . . . .1230.0 14.0 1255.0 815.5

Booker Group . . . . . . . .203.4 -0.4 212.3 155.8Greggs . . . . . . . . . . . . .989.5 17.5 1196.0 884.0Morrison (Wm) Sup . . .239.6 3.5 246.0 169.8Ocado Group . . . . . . . . .242.6 -6.8 349.0 208.1Sainsbury (J) . . . . . . . . .258.3 0.4 292.5 214.6SSP Group . . . . . . . . . . .397.4 6.5 409.5 264.0Tesco . . . . . . . . . . . . . . .195.3 0.7 218.7 147.4UDG Healthcare Pu . . .648.0 7.0 689.5 500.5

Associated Britis . . . . .2361.0 -25.0 3458.0 2350.0Cranswick . . . . . . . . . .2303.0 -13.0 2538.0 1902.0Dairy Crest Group . . . . .588.5 -7.0 690.0 504.5Greencore Group . . . . . .241.5 5.5 322.7 218.3Tate & Lyle . . . . . . . . . . .672.5 2.0 807.0 535.5Unilever . . . . . . . . . . . .3203.5 -24.0 3763.5 2905.0

Mondi . . . . . . . . . . . . . .1753.0 2.0 1802.0 1128.0

Centrica . . . . . . . . . . . . .223.7 -0.6 242.0 183.6National Grid . . . . . . . . .913.7 -14.0 1130.5 891.5Pennon Group . . . . . . .789.0 -4.0 945.5 768.0Severn Trent . . . . . . . .2233.0 -37.0 2509.0 2024.0United Utilities . . . . . .903.0 -14.0 1039.0 854.5

RPC Group . . . . . . . . . .1070.0 -1.0 1090.0 653.0Smith (DS) . . . . . . . . . .442.8 -0.2 445.8 331.2Smiths Group . . . . . . . .1515.0 14.0 1539.0 880.0Smurfit Kappa Gro . . .2068.0 -13.0 2265.0 1584.0Vesuvius . . . . . . . . . . . .469.9 -2.3 476.1 270.6

Price Chg High Low

Assura . . . . . . . . . . . . . . .54.0 2.0 60.3 49.4Mediclinic Intern . . . . . .761.5 -23.5 1168.0 685.0NMC Health . . . . . . . . .1667.0 36.0 1667.0 794.0Smith & Nephew . . . . .1188.0 5.0 1310.0 1051.0Spire Healthcare . . . . . .313.4 0.8 400.0 305.0

Barratt Developme . . .490.0 12.3 610.0 332.6Bellway . . . . . . . . . . . .2490.0 6.0 2810.0 1689.0Berkeley Group Ho . . .2847.0 47.0 3568.0 2270.0Bovis Homes Group . . .848.5 23.0 1024.0 627.0Countryside Prope . . . . .233.1 -0.4 278.5 173.2Crest Nicholson H . . . . .520.5 14.5 604.0 335.0McCarthy & Stone . . . . .163.8 0.1 276.0 140.3Persimmon . . . . . . . . .1951.0 22.0 2219.0 1289.0Reckitt Benckiser . . . .6830.0 26.0 7692.0 5847.0Redrow . . . . . . . . . . . . .450.4 5.9 453.1 275.6Taylor Wimpey . . . . . . .169.7 2.6 210.3 115.8

Bodycote . . . . . . . . . . . .672.5 6.5 680.5 502.5Hill & Smith Hold . . . .1200.0 -6.0 1253.0 737.5IMI . . . . . . . . . . . . . . . . .1181.0 15.0 1185.0 742.0Rotork . . . . . . . . . . . . . . .257.1 1.7 267.4 152.7

Old Mutual . . . . . . . . . . .207.5 -0.2 225.5 151.4Phoenix Group Hol . . . .748.5 -4.0 802.4 611.5Prudential . . . . . . . . . .1557.5 25.5 1649.0 1087.0St James's Place . . . . .1078.0 7.0 1093.0 716.0Standard Life . . . . . . . .349.7 4.0 378.8 262.1

4Imprint Group . . . . . .1650.0 -18.0 1879.0 1140.0Ascential . . . . . . . . . . . .288.5 2.4 297.9 200.0Bloomsbury Publis . . . .170.3 1.0 178.5 145.5Centaur Media . . . . . . . .49.8 -1.3 66.0 33.8Entertainment One . . . .235.2 4.5 255.0 130.0Euromoney Institu . . .1109.0 -10.0 1207.0 852.5Future . . . . . . . . . . . . . . .12.0 -0.4 14.4 7.9Haynes Publishing . . . .153.5 0.0 155.5 99.0Informa . . . . . . . . . . . . .652.0 0.0 697.5 538.6ITE Group . . . . . . . . . . . .157.8 1.8 176.0 128.8ITV . . . . . . . . . . . . . . . . .202.3 -0.9 268.1 154.0Johnston Press . . . . . . . .15.8 -0.3 47.0 8.0Moneysupermarket. . . .330.7 1.2 346.2 233.5Pearson . . . . . . . . . . . . .637.5 18.5 975.0 573.0Relx plc . . . . . . . . . . . . .1415.0 -8.0 1502.0 1126.0Rightmove . . . . . . . . .4039.0 19.0 4302.0 3173.0Sky . . . . . . . . . . . . . . .1004.0 3.0 1077.0 750.5STV Group . . . . . . . . . . . .367.1 5.9 468.0 304.0Tarsus Group . . . . . . . . .264.3 1.0 288.8 222.0

Spirax-Sarco Engi . . . .4338.0 33.0 4669.0 2725.0Weir Group . . . . . . . . .2015.0 10.0 2050.0 787.5

Evraz . . . . . . . . . . . . . . .235.2 12.2 273.0 56.2Ferrexpo . . . . . . . . . . . . .160.1 8.1 162.8 19.0

BBA Aviation . . . . . . . . .280.1 0.6 286.2 155.9Clarkson . . . . . . . . . . .2340.0 0.0 2499.0 1691.0Fisher (James) & . . . . .1517.0 -3.0 1679.0 942.0Royal Mail . . . . . . . . . . .409.7 -1.9 541.0 404.9

Admiral Group . . . . . . .1776.0 0.0 2260.0 1665.0Beazley . . . . . . . . . . . . .408.1 2.5 408.5 320.0Direct Line Insur . . . . . .353.9 -1.1 409.6 333.3esure Group . . . . . . . . .202.5 1.3 304.6 188.9Hastings Group Ho . . . .220.4 -4.2 247.4 149.8Hiscox Limited (D . . . .1014.0 -12.0 1097.0 900.5Jardine Lloyd Tho . . . .1034.0 4.0 1048.0 778.0Lancashire Holdin . . . . .674.0 -3.0 758.0 518.5RSA Insurance Gro . . . .572.0 -1.5 586.0 373.2

Aviva . . . . . . . . . . . . . . .484.2 7.3 495.4 346.2JRP Group . . . . . . . . . . .146.6 0.7 157.9 86.0Legal & General G . . . . .235.6 0.7 252.2 165.0

Trinity Mirror . . . . . . . . .103.8 -0.8 157.3 73.5UBM . . . . . . . . . . . . . . .700.0 -4.5 746.5 491.0WPP . . . . . . . . . . . . . . .1836.0 -8.0 1892.0 1338.0Zoopla Property G . . . .376.0 9.8 383.8 200.0

Acacia Mining . . . . . . . .420.3 -10.2 599.0 209.5Anglo American . . . . . .1371.5 13.5 1390.5 252.2Antofagasta . . . . . . . . .835.5 0.5 857.5 365.5BHP Billiton . . . . . . . . .1442.5 5.0 1480.5 632.4Centamin (DI) . . . . . . . .160.3 3.5 180.0 67.3Fresnillo . . . . . . . . . . . .1466.0 13.0 2008.0 722.0Glencore . . . . . . . . . . . .326.7 0.2 332.8 83.2Hochschild Mining . . . .241.0 -5.5 313.7 50.0Kaz Minerals . . . . . . . . .488.0 17.7 490.0 102.5Petra Diamonds Lt . . . .152.8 1.6 171.6 78.8Polymetal Interna . . . .934.5 12.0 1190.0 593.0Randgold Resource . .6615.0-140.0 9715.0 5060.0Rio Tinto . . . . . . . . . . . .3519.5 28.5 3615.0 1617.5Vedanta Resources . . .1074.0 28.0 1075.0 208.9

Inmarsat . . . . . . . . . . . .603.0 -5.0 1089.0 597.7Vodafone Group . . . . . .193.0 -1.4 239.7 190.5

BP . . . . . . . . . . . . . . . . .472.9 0.1 519.3 310.3Cairn Energy . . . . . . . . .228.4 1.6 243.0 135.6Nostrum Oil & Gas . . . .475.9 4.4 501.5 203.0Royal Dutch Shell . . . . .2137.0 -10.5 2282.5 1433.5Royal Dutch Shell . . . .2223.0 -13.5 2377.5 1435.5Tullow Oil . . . . . . . . . . .299.4 5.1 333.6 147.4

Amec Foster Wheel . . .447.4 5.5 619.5 327.6Hunting . . . . . . . . . . . . .572.5 17.0 640.0 267.5Petrofac Ltd. . . . . . . . . .917.0 0.0 982.0 674.0Wood Group (John) . . .838.0 0.0 894.5 548.5

Burberry Group . . . . . .1639.0 -1.0 1666.0 1041.0PZ Cussons . . . . . . . . . .305.7 1.2 372.6 250.0Supergroup . . . . . . . . .1515.0 17.0 1718.0 1184.0

AstraZeneca . . . . . . . .4247.0 53.0 5220.0 3774.0BTG . . . . . . . . . . . . . . . .536.5 2.0 728.0 534.5Dechra Pharmaceut . .1478.0 22.0 1478.0 975.0Genus . . . . . . . . . . . . .1760.0 43.0 2042.0 1319.0GlaxoSmithKline . . . . .1535.0 7.0 1722.5 1345.5Hikma Pharmaceuti . .1880.0 56.0 2676.0 1624.0Indivior . . . . . . . . . . . . .303.4 7.9 369.0 130.8Shire Plc . . . . . . . . . . .4466.5 87.0 5323.0 3480.0Vectura Group . . . . . . . .134.5 4.2 180.0 126.8

Capital & Countie . . . . . .271.5 -0.5 366.7 263.1CLS Holdings . . . . . . . .1580.0 -17.0 1700.0 1163.0Daejan Holdings . . . .6380.0 50.0 6415.0 4411.0F&C Commercial Pr . . . .136.0 0.0 138.4 102.1Grainger . . . . . . . . . . . .237.9 -0.5 248.5 193.1Kennedy Wilson Eu . . .956.0 8.0 1202.0 888.5NewRiver REIT . . . . . . . .314.0 0.0 345.3 269.0Safestore Holding . . . . .371.0 0.9 400.5 311.9Savills . . . . . . . . . . . . . .783.5 8.0 796.5 548.5St. Modwen Proper . . .320.0 1.3 386.7 222.2UK Commercial Pro . . . .83.8 -0.3 87.2 65.0Unite Group . . . . . . . . .590.5 4.0 663.5 543.5

Big Yellow Group . . . . .681.0 -7.0 886.5 635.0British Land Comp . . . .585.0 2.0 762.5 544.5Derwent London . . . .2476.0 9.0 3430.0 2257.0Great Portland Es . . . . .620.5 1.0 798.0 536.0Hammerson . . . . . . . . .546.0 -0.5 602.5 468.6

Hansteen Holdings . . . .110.3 0.3 119.8 95.4Intu Properties . . . . . . .268.9 -1.4 319.4 255.7Land Securities G . . . .1002.0 8.0 1202.0 910.0LondonMetric Prop . . . .147.8 0.2 166.8 134.9Redefine Internat . . . . . .39.0 -0.0 47.5 36.3SEGRO . . . . . . . . . . . . . .468.3 6.8 473.2 370.5Shaftesbury . . . . . . . . .885.0 8.5 994.5 813.0Tritax Big Box Re . . . . . .139.6 1.2 147.1 113.9Workspace Group . . . .750.0 -5.0 874.0 577.0

Aveva Group . . . . . . . .1933.0 26.0 2051.0 1237.0Computacenter . . . . . .785.0 -8.0 860.0 678.0Fidessa Group . . . . . .2300.0 0.0 2596.0 1771.0Micro Focus Inter . . . . .2196.0 51.0 2267.0 1308.0Playtech . . . . . . . . . . . .850.0 21.0 946.5 710.5Sage Group . . . . . . . . . .612.5 -0.5 756.0 556.5Softcat . . . . . . . . . . . . .309.8 -0.8 383.0 280.0Sophos Group . . . . . . . .272.0 -2.2 281.4 175.0

AA . . . . . . . . . . . . . . . . .248.7 4.8 307.3 209.9Aggreko . . . . . . . . . . .1003.0 -4.0 1286.0 765.0Ashtead Group . . . . . .1628.0 22.0 1657.0 769.0Atkins (WS) . . . . . . . . .1454.0 -7.0 1713.0 1158.0Babcock Internati . . . . .890.0 -3.0 1105.0 854.0Berendsen . . . . . . . . . . .841.0 8.5 1355.0 774.5Bunzl . . . . . . . . . . . . . .2078.0 -11.0 2436.0 1763.0Capita . . . . . . . . . . . . . .499.0 -1.5 1135.0 452.4Carillion . . . . . . . . . . . . .220.7 5.2 305.4 214.8DCC . . . . . . . . . . . . . . .6300.0 -95.0 7220.0 4779.0Diploma . . . . . . . . . . . .1021.0 6.0 1054.0 630.0Electrocomponents . . . .491.2 6.4 495.9 204.0Essentra . . . . . . . . . . . . .419.8 10.4 891.0 382.9Experian . . . . . . . . . . .1532.0 3.0 1612.0 1073.0G4S . . . . . . . . . . . . . . . .254.0 -1.2 257.9 164.0Grafton Group Uni . . . .587.0 3.0 752.0 440.0Hays . . . . . . . . . . . . . . . .154.8 2.4 158.8 94.0Homeserve . . . . . . . . . .598.5 1.0 629.5 363.2Howden Joinery Gr . . .380.0 2.6 510.5 341.1Intertek Group . . . . . .3419.0 27.0 3727.0 2628.0Mitie Group . . . . . . . . . .200.5 -0.2 294.1 180.4Pagegroup . . . . . . . . . .432.4 1.0 439.7 264.9PayPoint . . . . . . . . . . . .977.5 16.0 1168.0 720.0Paysafe Group . . . . . . .393.0 11.1 469.2 305.7Rentokil Initial . . . . . . .229.2 0.7 235.5 150.9Serco Group . . . . . . . . . .142.5 -1.5 150.0 76.8SIG . . . . . . . . . . . . . . . . .103.4 0.6 149.0 87.2Travis Perkins . . . . . . .1476.0 23.0 1964.0 1313.0Wolseley . . . . . . . . . . .4957.0 50.0 5025.0 3230.0Worldpay Group . . . . . .287.7 1.8 311.5 255.9

British American . . . .4865.5 -34.0 5042.0 3681.0Imperial Brands . . . . .3663.0 -10.5 4139.0 3345.0

Carnival . . . . . . . . . . . .4243.0 5.0 4340.0 2957.0Cineworld Group . . . . .620.5 7.0 622.5 457.0Compass Group . . . . . .1397.0 -15.0 1548.0 1173.0Domino's Pizza Gr . . . . .361.9 -0.4 396.9 285.3easyJet . . . . . . . . . . . . .942.5 -7.5 1587.0 873.5FirstGroup . . . . . . . . . . .104.5 0.6 114.5 80.8Go-Ahead Group . . . .2285.0 42.0 2673.0 1790.0Greene King . . . . . . . . .680.5 -0.5 906.0 663.5GVC Holdings . . . . . . . . .616.0 10.0 769.0 444.0InterContinental . . . . .3681.0 1.0 3785.0 2192.8International Con . . . . .486.6 9.9 565.0 343.9Ladbrokes Coral G . . . . .123.4 4.0 162.0 106.1Marston's . . . . . . . . . . . .133.0 1.3 162.4 129.7Merlin Entertainm . . . .474.6 -2.5 490.2 379.8Millennium & Copt . . . .427.5 -4.0 483.1 366.4Mitchells & Butle . . . . . .271.4 4.8 299.4 217.5National Express . . . . .339.6 1.3 376.5 275.6

Paddy Power Betfa . .8330.0 -15.0 10800.0 7895.0Rank Group . . . . . . . . . .201.7 3.0 280.0 186.8Restaurant Group . . . . .291.4 -1.6 562.5 256.9Stagecoach Group . . . . .212.0 2.8 277.3 196.0Thomas Cook Group . . . .88.5 1.4 108.4 54.7TUI AG Reg Shs (D . . . .1153.0 -9.0 1191.0 844.5Wetherspoon (J.D. . . . .943.5 6.5 952.0 663.0Whitbread . . . . . . . . .3929.0 4.0 4356.0 3391.0William Hill . . . . . . . . . .263.5 4.6 410.4 246.9Wizz Air Holdings . . . .1616.0-165.0 1995.0 1415.0

4D Pharma . . . . . . . . . .688.0 -24.5 1012.5 635.0Abcam . . . . . . . . . . . . .834.0 15.5 901.0 580.0Advanced Medical . . . .200.8 0.8 235.0 154.3Amerisur Resource . . . . .25.8 0.0 33.0 20.8Arbuthnot Banking . . .1537.0 -5.0 1717.0 1265.0ASOS . . . . . . . . . . . . . .5267.0 1.0 5473.0 2595.0BNN Technology . . . . . .124.3 1.8 168.0 35.5Brooks Macdonald . .2030.0 6.0 2074.0 1400.0Camellia . . . . . . . . . .10853.0-248.0 11159.5 7510.0Clinigen Group . . . . . . .800.0 12.0 819.5 492.8Conviviality . . . . . . . . . .261.8 9.3 263.5 168.0CVS Group . . . . . . . . . .1046.0 7.0 1103.0 646.0Dart Group . . . . . . . . . .516.0 6.0 676.5 358.5EMIS Group . . . . . . . . . .871.0 -11.5 1080.0 807.0Faroe Petroleum . . . . . .102.5 2.0 106.5 53.5Fevertree Drinks . . . . .1283.0 20.0 1289.0 527.0First Derivatives . . . . .2280.0 9.0 2281.0 1462.0Gamma Communicati .488.3 -1.8 528.0 365.3GB Group . . . . . . . . . . .294.5 2.5 349.0 215.0Gemfields . . . . . . . . . . . .50.5 -0.8 56.0 31.5Gooch & Housego . . . .1094.0 -14.0 1115.0 834.0Hotel Chocolat Gr . . . . .247.5 -9.5 302.5 169.5Hurricane Energy . . . . . .47.3 -0.3 52.8 9.5Iomart Group . . . . . . . .305.3 -9.8 320.0 243.3James Halstead . . . . . . .510.5 5.5 515.0 379.0Johnson Service G . . . . .116.5 2.3 117.7 85.0Keywords Studios . . . .546.0 6.0 552.0 211.5M&C Saatchi . . . . . . . . .335.0 22.0 380.0 282.8M. P. Evans Group . . . . .716.0 -9.0 730.3 371.8Mulberry Group . . . . . .1079.5 -17.0 1150.0 948.0Nichols . . . . . . . . . . . . .1595.0 -5.0 1665.0 1200.0Numis Corporation . . . .267.5 7.5 270.0 180.5Pan African Resou . . . . . .15.3 -0.3 24.3 10.4Patisserie Holdin . . . . . .321.5 4.5 395.0 257.3Polar Capital Hol . . . . . .373.5 -1.8 408.3 270.0Purplebricks Grou . . . . .195.0 4.0 197.0 95.0Redde . . . . . . . . . . . . . . .171.3 5.8 206.5 138.5Renew Holdings . . . . .440.0 0.0 457.3 295.3RWS Holdings . . . . . . . .351.3 5.8 360.5 188.5Scapa Group . . . . . . . . .331.0 4.8 343.0 179.3Sirius Minerals . . . . . . . . .18.0 -0.3 45.5 10.8Smart Metering Sy . . . .566.0 3.5 609.0 340.0Solgold . . . . . . . . . . . . . .29.1 -0.6 31.0 1.8Sound Energy . . . . . . . .80.0 8.3 97.0 15.4Staffline Group . . . . . .1122.0 49.0 1398.0 748.5Telford Homes . . . . . . . .337.0 6.3 371.3 262.0Telit Communicati . . . .290.8 4.5 297.0 178.3Thorpe (F.W.) . . . . . . . .307.5 0.0 325.0 210.0Watkin Jones . . . . . . . . .136.5 0.8 139.3 100.3Young & Co's Brew . . .1309.0 -5.0 1350.5 1125.0Young & Co's Brew . . . .995.0 5.0 1065.0 820.0

TalkTalk Telecom G . . . . . . . . . . .168.4 7.6Evraz . . . . . . . . . . . . . . . . . . . . . .235.2 5.5Ferrexpo . . . . . . . . . . . . . . . . . . .160.1 5.3Sports Direct Inte . . . . . . . . . . . .298.4 5.1Brown (N.) Group . . . . . . . . . . . .227.7 4.2Kaz Minerals . . . . . . . . . . . . . . . .488.0 3.8Assura . . . . . . . . . . . . . . . . . . . . .54.0 3.8Marshalls . . . . . . . . . . . . . . . . . .299.2 3.5Debenhams . . . . . . . . . . . . . . . . .54.4 3.5Jupiter Fund Manag . . . . . . . . . .415.2 3.4

Wizz Air Holdings . . . . . . . . . . .1616.0 -9.3Provident Financia . . . . . . . . . .2642.0 -3.1Mediclinic Interna . . . . . . . . . . . .761.5 -3.0Ocado Group . . . . . . . . . . . . . . .242.6 -2.7Henderson Group . . . . . . . . . . . .212.1 -2.7Acacia Mining . . . . . . . . . . . . . . .420.3 -2.4Hochschild Mining . . . . . . . . . . .241.0 -2.2Randgold Resources . . . . . . . .6615.0 -2.1Allied Minds . . . . . . . . . . . . . . . .390.0 -2.0Hastings Group Hol . . . . . . . . . .220.4 -1.9

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.commailto:

[email protected]

% %

AUTOMOBILES & PARTS

AEROSPACE & DEFENCE

BANKS

BEVERAGES

CHEMICALS

ELECTRICITY

ELECTRONIC & ELECTRICAL EQ.

EQUITY INVESTMENT INSTRUM.

FINANCIAL SERVICES

FIXED LINE TELECOMS

FOOD & DRUG RETAILERS

FOOD PRODUCERS

FORESTRY & PAPER

GAS, WATER & MULTIUTILITIES

GENERAL INDUSTRIALS

HEALTH CARE EQUIPMETN & S.

OIL & GAS PRODUCERS

OIL EQUIPMENT & SERVICES

PERSONAL GOODS

PHARMACEUTICALS & BIOTECH

REAL ESTATE INVEST. & SERV.

REAL ESTATE INVEST. TRUSTS

SUPPORT SERVICES

TOBACCO

TRAVEL & LEISURE

AIM 50

Tsy 1.250 17 . . . . . . .103.90 0.00 105.4 103.6Tsy 8.750 17 . . . . . . .104.94 -0.03 113.3 104.8Tsy 5.000 18 . . . . . . .105.31 -0.02 110.0 105.2Tsy 4.500 19 . . . . . . .109.01 -0.04 112.7 108.8Tsy 3.750 19 . . . . . . .109.10 -0.02 111.7 108.9Tsy 4.750 20 . . . . . . .113.54 -0.05 117.1 113.1Tsy 2.500 20 . . . . . .372.01 0.01 374.3 359.1Tsy 8.000 21 . . . . . . .131.96 -0.08 138.2 131.8Tsy 4.000 22 . . . . . .116.47 -0.09 121.3 116.4Tsy 1.875 22 . . . . . . .127.25 0.04 129.8 120.6Tsy 2.250 23 . . . . . .108.03 -0.18 113.6 105.9Tsy 0.125 24 . . . . . . . .117.47 -0.03 120.3 108.6Tsy 2.500 24 . . . . . .367.60 -0.01 374.5 338.6Tsy 5.000 25 . . . . . .129.24 -0.22 138.1 128.5Tsy 4.250 27 . . . . . .126.88 -0.31 138.3 125.3Tsy 1.250 27 . . . . . . . .137.11 0.01 142.5 125.1Tsy 6.000 28 . . . . . .147.63 -0.32 161.8 146.8Tsy 4.125 30 . . . . . .369.09 -0.05 382.1 328.9Tsy 4.750 30 . . . . . .136.99 -0.36 153.0 133.8Tsy 4.250 32 . . . . . . .132.38 -0.41 148.9 128.2Tsy 1.250 32 . . . . . . .154.62 -0.06 162.2 135.8Tsy 0.125 36 . . . . . . .141.85 -0.13 150.0 119.5Tsy 4.250 36 . . . . . .136.09 -0.51 155.7 130.1Tsy 4.750 38 . . . . . .148.24 -0.54 170.9 141.1Tsy 0.625 40 . . . . . .164.09 -0.24 175.2 136.4Tsy 4.500 42 . . . . . .149.07 -0.63 174.5 140.4Tsy 3.500 45 . . . . . .129.99 -0.70 154.6 121.2Tsy 4.250 46 . . . . . .148.82 -0.70 177.1 139.1Tsy 4.025 49 . . . . . . .154.12 -0.75 185.4 143.2Tsy 0.500 50 . . . . . .190.09 -0.52 208.3 149.4Tsy 0.250 52 . . . . . .186.07 -0.47 205.0 142.9

WORLD INDICES

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 7107.65 8.50 0.12FTSE 250 . . . . . . . . . . . . . . . . . . . . 18240.20 92.43 0.51FTSE All-Share . . . . . . . . . . . . . . . . 3865.66 7.40 0.19FTSE AIM All-Share . . . . . . . . . . . . . 886.65 3.07 0.35

S&P 500 . . . . . . . . . . . . . . . . . . . . . 2279.55 0.68 0.03Dow Jones I.A.. . . . . . . . . . . . . . . 19890.94 26.85 0.14Nasdaq Composite . . . . . . . . . . . . 5642.65 27.86 0.50Xetra DAX . . . . . . . . . . . . . . . . . . . 11659.50 124.19 1.08

CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4794.58 45.68 0.96Swiss Market Index . . . . . . . . . . . . 8329.17 37.48 0.45ISEQ Overall Index. . . . . . . . . . . . . 6455.96 63.57 0.99FTSEurofirst 300 . . . . . . . . . . . . . . . 1433.14 8.98 0.63

Hang Seng . . . . . . . . . . . . . . . . . . 23318.39 -42.39 -0.18Shanghai Composite. . . . . . . . . . . . 3159.17 9.61 0.31Straits Times . . . . . . . . . . . . . . . . . 3067.49 20.69 0.68ASX All Ordinaries . . . . . . . . . . . . . 5704.00 29.00 0.51

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

7107.658.50

FTSE 250

18240.2092.43

FTSE ALL SHARE

3865.667.40

DOW JONES

19890.9426.85

NASDAQ

5642.6527.86

S&P 500

2279.550.68

BATS UK 100

12011.8712.02

BATS UK 250

16573.5681.29

CONSTRUCTION & MATERIALS GENERAL RETAILERS

INDUSTRIAL METALS & MINING

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CHALLENGEREGISTER

TODAY

CITYAM.COM18 MARKETS THURSDAY 2 FEBRUARY 2017

BUSINESS FEATURE19THURSDAY 2 FEBRUARY 2017 FEATURECITYAM.COM

WHEN purchasing con-sumer goods, we’reattracted to brands weknow and love. We buyCoca Cola, rather than

an own brand product. We preferRay Ban sunglasses, Colgate tooth-paste, Apple’s iPhone. And we’rewilling to pay a premium for theprivilege.

Consumers have an affinity withthe real thing, not just throughovert awareness – but ongoing trust.

“Name, identity, character and pur-pose drive a brand’s growth,” saysChris Halton, global strategydirector at Jones Knowles Richie. “Astrong brand name retains valueeven when its product may have lostits relevance.”

Through tried and tested experi-ence, we expect these brands todeliver consistently well. But can thesame be said for the market per-formance of the parent companies?

PERFORMANCEAdrian Lowcock, investmentdirector at Architas, says yes, butcautiously: “a strong brand means acompany has some pricing power,can charge a premium and raiseprices to keep a company’s profitsahead of inflation. A good brand isalso less vulnerable to a downturnas consumers are slower to give uptheir chosen brands.”

But what is a brand really worth?John Stuart, one of the twentiethcentury’s great American businessleaders, once said that “if this busi-ness were split up, I would give youthe land and bricks and mortar, andI would take the brands and trade-marks – and I would fare better thanyou!” Brand value is about morethan simply volume or marketshare. Valuable brands are the onesthat bring customers to thecompany even if the competition isoffering comparable products atsimilar, or even lower, prices.

There are multiple consultanciesthat claim they can put a precisemonetary figure on the value of abrand. One, Brand Finance, uses theso-called royalty-relief approach,which involves determining thevalue a company would be willing topay to use its brand as if it did not

DO STRONG BRANDSMAKE FOR STRONG

RETURNS?

own it. The method estimates futurerevenue attributable to a brand andcalculates the royalty rate thatwould be charged for its use.

This week it released its annualGlobal 500 list of the top 500 brandsin the world and their parent com-panies.

Google (with a brand value of$109bn) and Apple ($107bn) flip

places for the top spot, putting theAlphabet-owned search giant infirst.

Interestingly only 66 of the top 500are tech brands, but they constitutehalf of the top ten, possibly due tothe varying longevity of technology,and our preference for a handful ofhousehold brands.

UK brands haven’t performed as

H OW IS it possible that on thevery day Apple announcedrecord fourth quarter rev-enues of $78bn, BrandFinance announced that the

firm’s brand value has dropped by 27per cent to $106bn, and is no longer theworld’s most valuable?

The answer is simple. Fourth quarterresults are a backward-lookingmeasure of financial performance overa very short-run period, while brandvaluation is a measure of long-termfuture expectations. Brand valuationsare based on a five year explicit futureforecast and a much longer-term perpe-tuity value. Brand valuations representthe net present value of expected brandearnings now and into the future.

Consensus equity analyst forecastsand other data sources suggest a weak-ening of future performance at Apple.There is no doubt it remains a hugelyvaluable business. It would be wrong towrite it off just because it is now thenumber two brand after Google. But itsglory days seem to be coming to anend.

The big problem with Apple is itsreliance on smartphone sales, where it

is losing its edge to Android and Asiancompetitors including Huawei andSamsung. Apple has historically com-manded a volume share of about 30 percent in the mobile phone handset mar-ket but a 70 per cent value share. Thismakes it a juicy target.

In the past Apple was noted for itsground-breaking innovations. Yet therecent results indicate an 8 per centdrop in sales of iPods, iPads and Beatsheadphones. The much vaunted newinnovations in TVs or elsewhere are notapparent. Unfortunately brands don’texist in a vacuum. They add most valueto businesses which are just as strongin other types of intellectual property.Companies that are rich in patents,know how, copyrights, human capital,and customer and contractual rights

Apple shows the value of real brand valuationDavid Haigh

use brands as a means of increasingsales and profits. Apple has alwaysdone this but the innovation engineappears to have stalled.

The great thing about brands is thateven when other IP is in the doldrumsthe brand keeps sales flowing untilnew innovations come along, eitherorganically or by acquisition. There areparallels with pharmaceuticals.Blockbuster drugs create excess profitsuntil the patents run out. Apple’sblockbuster drug is the iPhone but it’srapidly running out of efficacy. As aconsequence equity analyst forecasts,on which we base our valuations, havegone flat or negative for Apple, and ourreduced brand valuation reflects that.

The debate over Apple illustrates whyevery company needs a brandvaluation every year. We work withmany firms, valuing their brandedbusinesses, the strength of their brandsand their contribution to the financialsuccess of the business, as part of anecosystem of other tangible and intan-gible assets.

This analysis is used for makingstrategic decisions such as determininginvestment priorities, corporate struc-

ture, expansion opportunities, licens-ing and joint ventures, tax planningand financial reporting to investors.

Last month we hosted Sir DavidTweedie, chairman of theInternational Valuation StandardsCouncil, who was previously chief exec-utive of the International AccountingStandards Board, to speak about thefuture of brand valuation standards.

He explained that before the IASBrole he was the technical director ofKPMG, where he was responsible forthe very first brand value on a balancesheet back in the 80s. Diageo acquiredSmirnoff Vodka, which under the oldconventions would have been bookedas “goodwill” in the balance sheet andprogressively written off. He endorsedits inclusion in the Diageo accounts asa separate brand asset with an indefi-nite useful life. He said that he pio-neered the use of Discounted CashFlow valuation techniques to valuebrands under UK Accounting andInternational accounting standards,and has strongly advocated the revalu-ation of all intangible assets each yearand their disclosure by public compa-nies to aid investor decision making.

He could have knocked me downwith a feather, because I thought hecame from the old school of account-ants who disbelieve in intangible assetsand brands. His comment was that theprinciple of recognition is right but itdepends on having reliable valuationmethods and a well regulatedvaluation profession. He is now work-ing on it.

The first area which has nailed theserequirements is brand valuation. Thereis now a recognised ISO valuation stan-dard and recently launched profession-al qualifications. Our published valuesfollow these standards. We believe theyare of significance to many users but inparticular to investors. This is reflectedin the launch of a structured invest-ment index product by BNP Paribas inJune 2016 based on our brandvaluation data. We expect to see a lotmore of this type of investment and, asa result, an upsurge in interest fromboards, investor relations, investors andlenders.

Apple illustrates why this is necessary.

£David Haigh is founder and chiefexecutive of Brand Finance.

well as we might hope: out of a totalof 30 UK brands that made the list,Vodafone is the highest ranked, infiftieth place – down from thirtiethlast year. There are 58 totally newadditions to the list, some of whichwill be more familiar to internation-al investors. Mostly though, the listconsists of companies that are bothwell-known, trusted and consistent.

RETURNSBrand consultancies say such infor-mation is useful for marketers,brands and companies when deter-mining their corporate strategy. Buta study released in 2015 by BrandFinance suggests it can also beuseful for investors.

According to its calculations, com-panies it has judged to have a highBrand Value (BV) relative to theirmarket capitalisation, or “EnterpriseValue” (EV), outperformed theS&P500 by a significant amountbetween 2007 and 2015. Specifically,the S&P500 rose by a healthy 49 percent, but had you invested exclusive-ly in firms with a BV/EV ratio above30 per cent, you would have seen 94per cent returns over the same peri-od. The figures have not yet beenupdated for 2016.

CAUTIONThere is, however, good reason to becautious before investing exclusivelyin strong brands. “A strong brandmeans different things,” saysLowcock. “For example Apple prod-ucts need constantly improving andreinventing and consumers do notbuy the products frequently. A goodexample of strong brands not alwayslasting is to consider that Nokia andMotorola once dominated themobile phone industry, which isnow dominated by Apple andSamsung.”

Nevertheless,“the market has beenfavouring the sorts of businesseswhich own good brands,particularly consumer staples suchas toothpaste, coffee or washingpowder,” says Lowcock. “Unileverand RELX have been popular busi-nesses in this space as they are wellmanaged and have a suite of strongbrands which they have invested into ensure they continue to grow.”

Elliott Haworthexamines the casefor investing in“branded”companies

There are probably far worseproblems, but riding around onelectric bikes has thoroughlyruined regular pushbikes for me.It now seems an insurmountable

hardship to have to use my own musclesand gears to propel a bike forwards, likesome sort ofcaveman.

Not feeling the familiar ghostly push of anelectric motor as I zoom away from trafficlights is like losing a superpower. It must behow astronauts feel when they come backdown to earth and can’t lift their arms. Orhow Superman feels when somebodychases him around with a bit of kryptonite.Spoilt as I am by the machines, ebikes arethe only sensible way tocommute.

So naturally I’ve had amarvellous time blasting

20 THURSDAY 2 FEBRUARY 2017LIFE&STYLE CITYAM.COM

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ENHANCE YOUR RIDE WITH THESE ESSENTIAL CYCLE ACCESSORIES

Signalling while cycling in London can be risky, reducing your controlover the bike at a time when you’re at your most vulnerable. EnterWingLights, an invention by a pair of Italian cyclists whose success onDragon’s Den saw them secure a £45,000 investment. They flash oneither side like indicators and attach to the ends of the handlebars.

HORNIT DB140£30, THE HORNIT.COMIn the ongoing war between every kind of road user, it pays to be reallynoisy. The Hornit dB140 claims to be the loudest bike horn in the world,and emits one of two horrible sounds: a soul-scouring blarrgghhandan ear-piercing tweeple-derp. Both of them are guaranteed to get younoticed (and scowled at) by feckless pedestrians and drivers alike.

GOPRO HERO5 BLACK£350, SHOP.GOPRO.COMThe leading action camera on the market, the GoPro Hero5 Black canrecord your daily commute in crystal clear 4K resolution. You can usevoice commands for hands-free control, or use the 2” touch display toplay back and even edit footage. The thing is virtually indestructabletoo, so feel free to do stunts and jump over buses along the way.

around London on the Volt Infinity, anebike powered by the latest Shimano Stepsgroupset technology. The space-agelooking battery sits where the water bottlewould go and provides enough juice toassist you for around 70 miles. The nearinvisible hub motor provides a spookypush up to the legally mandated speed

limit of 15mph, its assistance felt most atlower speeds and when pulling away froma standing start.

Gear shifting is controlled with buttonsmounted on the handlebar, and when thebike comes to a complete stop it willautomatically shift back down to a lowgear to help you push off again. Disc brakes

provide smooth application of stoppingpower too, which is useful considering justhow heavy a bike this is and how fast youcan push it.

The result is a near effortless cyclingexperience, akin to being conveyed intowork on a bike-shaped angel or friendlymetal horse. It’s on steep inclines that themotor really starts to chip in too, whenhills that would once leave you a sweatymess become leisurely ascents. Theelectric motor is giddying at first, and thennothing short of essential once you’vebecome accustomed to it.

You can dial down the assistance if youwant to burn some calories, but if you’drather just get to your destination notlooking like you’ve been draggedbackwards through a bush, crank it up andlet your old pal electricity do the heavylifting.

There are certainly far cheaper electricbikes, but none so well made, and fewwith such high specifications. Try it outand you’ll struggle to ever go back to rawpedal power.

Is it time to electrify your commute?The UK-madeVolt Infinity bikematches worldclass cyclinghardware withelectric motortechnology

OFFICE POLITICS

SILICON Valley has carved anentirely new definition ofthe word “aspirational”.Notwithstanding that thecompanies it built are drip-

feeding curated images ofperfection into our lives, it has alsocreated a paradoxical workingculture: a curtain of free artisanlunches and unlimited holidayoften drawn across a dark room oftiring and intense R&D.

As a potential employee, the imagepresented is enticing. In the bigbunfight that has become recruit-ing tech talent, people are present-ed with a manicured dream. Theybelieve they have found a placewhere ideas take priority, givingthem enough freedom to knock outa few lines of visionary code, beforebeing able to focus on winter sports.

However, before you sign on thedotted line and buy yoursnowboard boots, do your researchinto your new employer’s fundingstatus. This could have an impacton your day job.

WHY? You may be familiar with the ideaof trickle-down economics; this istrickle-down corporatepressure. The simple theory is that

Dan Tara says there are caveats that comewith working for a firm with keen investors

The case against VC-backed employers

The heavy-handof VC investorsmight squeezethe fun out ofworking for ayoung firm

MEET BY THEMINUTE

MinuteFree

If you’re failing toextricate yourselffrom pointlessmeetings, atleast give Minutea go. It helps youmake the mostof those you dohave to attendby puttingagendas, notesandpresentationstogether prior tokick off. The freeversion of theapp will organisefive meetings amonth, thenyou’ll have topay.

the more influence VC fundinghas, the more the screw may beturned on the workforce. Investorscome with a need to make areturn, and can applyundue pressure on seniormanagement, who in turn lean onstaff. A company’s goals canquickly switch from altruism tomeeting a pre-defined multiple.Whereas once products andservices were dictated by marketneed, decisions become imbuedwith the need to make money.

THIS MEANS WHAT? An additional stress on thebusiness. A cultural change. Foryour day job this will mean morepressure, more deadlines and,arguably, less purity of vision anddesire to focus on R&D. Not everyexternal investment has this effect,but it is something that should beconsidered.

Prudent advice is to do yourhomework on who funds thecompany looking to employ you,see what the individual VCsinvesting in the company are like,and expect this to play a part inthe culture of the place you’rejoining and the job you will bedoing day to day. There are

multiple factors which can beresearched externally – forexample, the type of VC(big/small/specialist) and whatculture and reputation they haveas an investor is important.

Also important are factors suchas how long it has been vested,what stage the company it isinvesting in is at, and obviously the

stake it has put up. A lot of thisinformation is available online. Itis simply a case of joining the dots.

Alternatively, if you’re thinkingof moving jobs, seek a self-fundedcompany which is in control of itsown destiny. This is not a panacea,and in itself has some pitfalls. Forexample, working at abootstrapped startup with nomoney in the war chest is unlikelyto offer a calm workingenvironment.

Similarly, cash-strappedfounders could be forced to makeknee-jerk decisionsand tangential pivots whichcan change or make your roleredundant. By contrast, a companythat is profitable with cash in thebank is less likely to be backed intoa corner and to apply a more puristapproach, and less impinged byfinancial goals.

All businesses need to make afinancial return, but it’s importantto consider the motivations of thepeople involved. Those that wantorganic growth are arguably morelikely to be considerate to the long-term health of the company, andby relation its working culture. Soif you’re thinking of a newchallenge, spare a thought forwho’s going to be pulling yourstrings.

£ Dan Tara is executive vice-presidentof Positive Technologies.

21THURSDAY 2 FEBRUARY 2017 FEATURECITYAM.COM

LOSING eight wickets for asmany runs in just 19 deliveriesis crazy when you look at it onpaper and there is no disguis-ing the fact that England took

a hiding in the decisive Twenty20clash against India in Bangalore yesterday.

But rather than look too deeply intoit, I would put it down to a bad at theoffice. It really doesn’t matter if youlose 8-8 or 80-8; in reality, if you losethe game, you lose the game.

Collapses happen, especially in aplace like India with relatively inexpe-rienced players, the crowd and thepressure of chasing 11 runs per over.England’s batsmen had to try andkeep their foot down and, unfortu-nately, they slumped into a downwardspiral.

On the whole it was a pretty evenly-matched three-game T20 battle andhad it not been for a couple of con-tentious umpiring decisions in thesecond clash in Nagpur on Sundaythen the series could well have beendone and dusted prior to yesterday.

There are three major positives tocome from the one-day tour, which in-cluded England’s 2-1 defeat in thethree-match 50-over series last month.

Firstly, opener Jason Roy, my formerSurrey team-mate, has been very con-sistent and has gone up a level.

He was the second-highest run-scorer in the 50-over matches and hasproven he can bat in different condi-tions and cope with pressure. I fullyexpect him to get a contract with anIndian Premier League franchise andthat can only enrich his game.

ONE MAN AND HIS DOGSurrey have already given their bless-ing to Roy to play in the IPL, despitethat meaning he will miss the start ofthe English domestic season. It’s onlyright that England’s top players aregetting exposed to big pressurematches and the world’s best players.

It will only benefit England in thelong run when big competitions, like

this summer’s Champions Trophy,come around. He won’t be exposed totoo much pressure playing CountyChampionship cricket in front of oneman and his dog on a rainy day inMay.

It was also good to see skipper EoinMorgan back in the runs. In fact, helooks to be batting as well as ever, hit-ting the ball over the ropes, so he’scertainly answered questions abouthis form.

Sussex seamer Tymal Mills was an-other standout performer. I feel a bitsorry for him as he has been forcedout of red-ball cricket due to a chronicback injury.

He bowls 90mph and probably hasthe best slower ball in the Englandseam attack. I reckon he’ll be anotherone to secure an IPL deal.

JOE HALLAT THE LONDON STADIUM

@joehallwordsMANCHESTER City boss Pep Guardioladismissed his side’s chances of reining inrunaway Premier League leaders Chelseadespite a comprehensive battering ofWest Ham last night.

City were the only club in the top six topick up maximum points in the midweekfixtures after first-half goals from Kevin deBruyne, David Silva and Gabriel Jesuswere added to in the second period by aYaya Toure penalty.

Victory moved fifth-placed City level onpoints with Liverpool, who occupy thefinal Champions League place, althoughthey remain 10 points adrift of Chelsea.Guardiola insists a Chelsea capitulation istheir only routle into the title race.

“Only Chelsea can lose the PremierLeague,” said Gaurdiola. “Look at howmany games they’ve lost in the last 15, 16games. You can’t expect them to lose fouror five games in the fixtures they have left.

“We are not in a position to think aboutthe big, big goals. At 10 points [behindChelsea] the gap is too much.”

West Ham manager Slaven Bilic,meanwhile, accepted that his team’smistakes were ruthlessly punished byCity’s young front three of RaheemSterling, Leroy Sane and Jesus, who wasmaking his full top-flight debut.

“Instead of trying to get in behind weplayed those square balls and gave itaway,” he said.

22 THURSDAY 2 FEBRUARY 2017SPORT CITYAM.COM

City still notin title frame,insists Pep

FOOTBALL

JOE HALL

@joehallwordsPREMIER League clubs recorded aprofit for the first time in lastmonth’s transfer window, despitespending more money than in anyprevious January.

A record £36.7m was spent by top-flight teams this year, according tothe Premier League, yet teams stillenjoyed a collective £4m profit aftera series of big-money sales.

West Ham sold Dimitri Payet tonewly-monied Marseille for £25mwhile Watford cashed in on OdionIghalo on deadline day by offloadingthe Nigeria striker to China for£20m. Chelsea also benefited fromthe cash-rich Chinese Super Leaguein the sale of Oscar to Shanghai SIPGfor £60m.

Yet the window is not likely torepresent a new era of profitabilityin the transfer market for PremierLeague clubs, according to DanJones, partner in the Sports BusinessGroup at Deloitte. The uniquemarket conditions that allowed clubsto find suitors for their players maynot continue; China’s government,for example, has already intervenedto address what it perceives as“irrational” investments by its clubs.

“It’s an anomaly – I think it’s aone-off. In China they’ve tried to cooldown the market a bit,” Jones toldCity A.M. of the Premier League'stransfer profit.

“The record gross spending, whenyou add up the summer and January,is what we would have expected. Andthe fact that the lower-ranking teamsspend big in January and the higher-ranking teams spent big in thesummer seems to be a fairly resilientpattern.”

Across both the summer andwinter windows this season, PremierLeague clubs – empowered by a newTV deal that guarantees them aminimum £99m income – spent arecord £1.4bn, a 32 per cent increaseon last year. That spending powerwas underlined in January by thefact that a £215m outlay wasachieved without any of the top sixclubs making a notable signing.

Only the 2011 January window,when Chelsea and Liverpool bothmade headlines on deadline daywith the respective signings ofFernando Torres and Andy Carroll,saw more money spent by PremierLeague teams.

“It was still the second biggestJanuary window ever, even withoutthe drama of some January windowsgone by,” said Jones. “The big clubswere particularly quiet this year.Gabriel Jesus’s deal with ManchesterCity was done before the windowand, that aside, the only spending bya big six team was Arsenal buyingsomeone from Hednesford Town.”

“Sometimes you get away with itagainst teams with less quality butagainst those players with pace like Jesus,Sane and Sterling, they’ll just punish youand that’s exactly what happened.”

Jesus, who started ahead of thebenched Sergio Aguero, was deployed asthe focal point of a multi-pronged Cityattack that overwhelmed the hosts withits speed and fluidity. De Bruynecapitalised from the teenager’smovement to put City ahead after 17minutes.

After Hammers captain Mark Noble lostthe ball in midfield, De Bruyne foundJesus in the box and then met his pull-back with a side-footed finish beyondHammers goalkeeper Darren Randolph.

Before West Ham had created a chanceof their own, City doubled their lead whenwinger Sane wriggled past two defendersand slotted across the face of goal forSilva to convert.

Six minutes later, City pulled out ofreach when Sane pounced upon a loosepass and in a flash set up Sterling in thebox to roll the ball past Randolph toprovide Jesus with an easy finish – his firstgoal in City colours.

Sterling again was at the centre of City’sfourth goal on 65 minutes. The Englandwinger was tripped in the box byHammers debutant Jose Fonte and Toureswept his penalty into the bottom corner.

Premier Leaguetransfer profitis an anomaly

JANUARY WINDOW KEY FACTS

Gross Premier League spend: £215mNet Premier League spend: -£40mDeadline day spend: £60mCombined summer and winter PremierLeague spend: £1.4bnTop six Premier League spend: £27mBottom six Premier League spend: £110m

FOOTBALL

CRICKET

Collapse was crazy but there were positive signs in IndiaCRICKET COMMENT

Chris Tremlett

PREMIER LEAGUEWEST HAM UNITED 0MANCHESTER CITY 4

TOP SIXTEAM PLD W D L F A PTSChelsea 23 18 2 3 48 16 56Tottenham 23 13 8 2 45 16 47Arsenal 23 14 5 4 51 25 47Liverpool 23 13 7 3 52 28 46Man City 23 14 4 5 47 28 46Man Utd 23 11 9 3 33 21 42

SPORTBYE GEORGE England lock Kruis

ruled out of Six Nations openeragainst France

CITYAM.COM 23THURSDAY 2 FEBRUARY 2017 SPORT

INTERVIEW

Lions tours are pinnacle but this year’s coulddeny England a grand slam, says hero Shaw

ENGLAND’S chances of securingsuccessive Six Nations grandslam titles will be impaired bythe summer’s British and IrishLions tour to New Zealand, in-

sists former international powerhouseSimon Shaw.

An unblemished championshipwould also see England, who remainunbeaten during the 13-match reignof head coach Eddie Jones, surpass theAll Blacks’ record of 18 consecutivetop-tier Test victories.

No side has sealed back-to-backgrand slams since the inception of theSix Nations in 2000, while Jean-ClaudeSkrela’s France were the last Five Na-tions team to achieve the feat in 1998.

Standing in England’s way are theirfive northern hemisphere rivals and,according to Shaw, a veteran of threeLions series, so too is the lure of aplace in Warren Gatland’s squad forthe end of season dust-up with theworld champions.

“England are capable of winning thegrand slam again but I think the extradynamic and the extra element ofcompetition that the Lions tour bringsmeans that some players will put theirnames forward and produce some up-sets within games,” Shaw tells City A.M.

“Players will say they’re not concen-trating on the Lions, that they’resolely concentrating on the game inhand or the Six Nations, but there willalways be something in the back oftheir heads which is wanting to get on

that plane.“That can do funny things. It will ei-

ther raise a player to a whole new levelor sometimes the pressure can be-come too much. That can happen pre-tour or it can happen during the tour.

“So it will be a very interestingSix Nations just because ofthat dynamic. It’s sad buttrue, the more oftenthese games comearound they become,not monotonous, butpart and parcel of everyseason.

“A different dynamiccreates a different out-come and I think a Lionstour, rather like a WorldCup, creates a different dynamicin the Six Nations. I think Englandwill win the Six Nations. I’m not 100per cent sure they’ll win it with agrand slam.”

Shaw, who has 71 England caps, be-lieves that inclusion in a Lions squad

is the greatest accolade the game of-fers, eclipsing even the lifting of aWorld Cup. It is the uniqueness of theexperience which elevates it above allelse for the former Wasps and Toulonlock, whose maiden Lions series was

in South Africa in 1997, the first ofthe professional era. He also

toured in 2005 and 2009.“Having beaten the crapout of these guys during

a Five or Six Nations overhow many years, then to

meet up with all the differ-ent nationalities to be team-

mates, to trust each other implicitlyand to sing off the same hymn sheetis a fantastic experience,” adds Shaw.

“People cannot get to grips with whyparticipants go to the Big Brotherhouse or go on I’m a Celebrity, Get Me

Out of Here or Strictly Come Dancing.“But these amazing bonds are

formed with fellow contestants onthose shows because it’s this unique,pressurised environment and thatforces a much bigger bond betweenyou than other environments.

“Lions tours only last a couple ofmonths but the bonds and the mem-ories last a lifetime. I have mates fromLions tours who I may only havetoured with once, but I have a strongerbond with them than guys I played in-ternational rugby with for 15 seasons.”

Concerns over packed fixture sched-ules and player welfare have calledinto question the viability of the Lionsin the present day, something Shawdismisses out of hand.

“I’m not sure why people talk in thatway. Perhaps they have ulterior mo-tives. I find it very strange,” he says.

“To not have a place for the Lions inthe rugby schedule would be crazy.People use their life savings and gen-erations of families go on thesethings. You don’t get 16,000 peopletravelling to the other end of the earthto watch the Lions for nothing.”

Members of the travelling hordeswill next month have an opportunityto relive the Lions’ iconic, ground-breaking and victorious tour to SouthAfrica in 1997. Shaw will join Lionsteam-mates Jason Leonard, Paul Wal-lace, John Bentley and Doddie Weirand supporters at a celebratory lunchin the City on 9 March to mark thetour’s 20-year anniversary.

“It is getting more and more limitednow in terms of fans’ access to playersand that’s one area of the game that Iget a bee in my bonnet about,” he says.

“The lunch is all about bringingsome of the guys from 1997 back to-gether and getting the fans of that pe-riod in the room with some of thegreat characters from that trip. It’snon-corporate and it’s going to bebased around a fun afternoon andreminiscing.”

Places for the lunch at M Restaurant,Threadneedle Street on 9 March are avail-able at £125 per person plus VAT. For fur-ther information or to book e-mail:[email protected] or [email protected]

England hope to repeat their grand slam at the Six Nations, which starts on Saturday

CRICKET

TIGER EYES FEDERER FORCOMEBACK INSPIRATION £GOLF: Former world No1 TigerWoods admits he has been inspiredby tennis great Roger Federer’ssuccessful comeback as he plots hisown renaissance. Woods, who ishunting a first win since 2013 whenthe Dubai Desert Classic beginstoday, said: “As you get older, youchange your game and you dothings slightly differently, and he didthat. Am I going to do that? Yeah.”

FANCIED NATIVE RIVEROUT OF GRAND NATIONAL £HORSE RACING: Grand Nationaljoint favourite Native River was asurprise omission from the list of110 entries yesterday. ColinTizzard’s seven-year-old, who wonthe Welsh Grand National, had beenthe priced at 16-1 with somebookmakers. “He was never goingto be entered,” said Tizzard. “Hisowners have categorically said ‘No’.”

IN BRIEF RESULTS

FOOTBALLPREMIER LEAGUE

Man Utd ................. (0) 0 Hull .............................(0) 0Stoke ......................(1) 1 Everton .......................(1) 1Crouch 7 Shawcross 39 (og) Att: 27,612West Ham .............. (0) 0 Man City .................... (3) 4 De Bruyne 17 Silva 21 Gabriel Jesus 39Att: 56,980 Toure 67 (pen) P W D L F A GD PtsChelsea............................23 18 2 3 48 16 32 56Tottenham .....................23 13 8 2 45 16 29 47Arsenal............................23 14 5 4 51 25 26 47Liverpool ........................23 13 7 3 52 28 24 46Man City .........................23 14 4 5 47 28 19 46Man Utd .........................23 11 9 3 33 21 12 42Everton ...........................23 10 7 6 34 24 10 37West Brom....................23 9 6 8 31 29 2 33Stoke ................................23 7 8 8 29 35 -6 29Burnley ............................23 9 2 12 25 33 -8 29West Ham .....................23 8 4 11 29 40 -11 28Southamptn .................23 7 6 10 23 28 -5 27Watford ..........................23 7 6 10 27 39 -12 27Bournemouth ..............23 7 5 11 32 41 -9 26Middlesbro’ ...................23 4 9 10 19 26 -7 21Leicester .........................23 5 6 12 24 38 -14 21Swansea .........................23 6 3 14 28 52 -24 21Crystal Pal .....................23 5 4 14 32 41 -9 19Hull ....................................23 4 5 14 20 47 -27 17Sunderland ...................23 4 4 15 20 42 -22 16

SKY BET CHAMPIONSHIPBlackburn .............. (0) 1 Leeds..........................(0) 2Burton Albion ....... (0) 0 Fulham .......................(0) 2Newcastle ..............(1) 2 QPR .............................(1) 2TOP 4 P W D L F A GD PtsBrighton .........................27 18 6 3 43 18 25 60Newcastle ......................28 19 2 7 56 23 33 59Reading ...........................29 17 4 8 42 37 5 55Leeds ................................29 17 3 9 41 28 13 54

SKY BET LEAGUE ONEMillwall ................. (0) 0 Walsall .......................(0) 0

LADBROKES SCOTTISH PREMIERSHIPCeltic ..................... (0) 1 Aberdeen ..................(0) 0Hearts .....................(1) 4 Rangers ......................(1) 1Partick ................... (0) 0 St Johnstne ................(1) 1

AFRICA CUP OF NATIONS SEMI-FINALBurkina Faso ......... (0) 1 Egypt .........................(0) 1AET: Score after 90 mins 1-1. Egypt won 4-3 on penalties.

CRICKETTHIRD TWENTY20 INTERNATIONAL—India v England (Bangalore): India 202-6 (20.0 overs; S K Raina 63, M S Dhoni 56). England 127 (16.3 overs; Y S Chahal 6-25). India beat England by 75 runs.

TODAY’S DIARYSky Bet ChampionshipHuddersfield v Brighton (7.45) .....................................................................Africa Cup Of Nations Semi-FinalCameroon v Ghana (7pm) ..............................................................................

Shaw was a part of threeLions tours, including the

1997 trip to South Africa

England, Waspsand Toulon greatreminisces withRoss McLean

To not have a placefor the Lions in therugby schedulewould be crazy

ROSS MCLEAN

@rossmcleanRMACENGLAND skipper Eoin Morganlambasted the worst battingperformance in years after his sidelost eight wickets for just eight runsin their forlorn Twenty20 deciderwith India in Bangalore yesterday.

The tourists were progressing withintent on 117-2 in pursuit of a 203victory target before Morgan and JoeRoot fell in successive deliveries toleg-spinner Yuzvendra Chahal, whoclaimed 6-25. Those dismissalstriggered a collapse of seismicproportions and it took India just 17further balls to claim the remainder

of England’s batting line-up – thesecond-worst eight-wicket collapse inthe history of international cricket.

“I can’t explain it and it hurts,”said Morgan. “I can’t put my fingeron it. We haven’t produced a battingperformance as bad as that in twoand a half years.

“We were competitive for around60 per cent of the game but thencommitted the cardinal sin of losingplayers in one over.”

India’s innings was underpinnedby half-centuries from Suresh Raina(63) and MS Dhoni (56), while onlythree England players – Jason Roy,Root and Morgan – reached doublefigures.

Morgan: That was some of theworst batting for a long time

Jose complainsofficials treathim differentlyROSS MCLEAN

@rossmcleanRMACMANCHESTER United boss Jose Mourinhoraged that other Premier Leaguemanagers receive preferential treatmentfrom officials after his side played out agoalless draw with Hull and failed to closethe gap on teams currently occupying aChampions League place.

United followed the trend of the weekwhich saw the top six, fifth-placedManchester City aside, falter after failing tofind a way past Tigers goalkeeper EldinJakupovic at Old Trafford.

A third consecutive draw kept Unitedsixth, four points adrift of Liverpool infourth place, while the 20-time top-flightchampions trail runaway leaders Chelseaby 14. The point moved Hull aboveSunderland to 19th.

Mourinho, who served a one-matchtouchline ban earlier this season, chose tofocus on Liverpool manager Jurgen Klopp,who raged at fourth official Neil Swarbrickduring his side’s draw with Chelsea onTuesday.

“Yesterday, one manager was told by thefourth official ‘I love your emotion andbecause I love your emotion, no problem’,”added Mourinho. “I was told today to sitdown or I have to go to the stands.

“You simply have to tell the truth. Youwill be doing a public service I think. Tellthe truth. If that means you sayManchester United didn’t play well in thefirst half, so be it. You know clearly that Iam different. The rules for me aredifferent. I am different in everything.”

Stoke boss Mark Hughes, meanwhile,heaped praise on striker Peter Crouch afterthe former Queens Park Rangers,Southampton and Liverpool hitmannetted his 100th Premier goal during hisside’s 1-1 draw with Everton.

Crouch gave the Potters, who movedabove Burnley into ninth place, a seventhminute lead, only for Everton to levelbefore half time courtesy of a RyanShawcross own goal.

“Everybody talks about his personalityand his character but above all he’s anexceptional football player,” said ex-Everton striker Hughes. “It’s credit to him.Since he’s come back into the side he’sbeen excellent.”

BRAN AND GONE Chelsea stalwartIvanovic completes Zenit St

Petersburg transfer

Documents

Leaked Brussels report says harming the City would backfire on EU