Cityam 2016 01 27 PDF

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WEDNESDAY 27 JANUARY 2016
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Tech giant reveals the biggest quarterly profits in US

corporate history, but warns that we may have reached...
PEAKAPPLE
CAITLN MORRISON
THE WORLDS biggest company, Apple,

set a new record for US corporate profits last night yet warned that sales are
on the verge of tumbling for the first
time in over a decade.
The tech giant expects revenue of
$50bn (35bn) to $53bn
in the opening three
months of this year,
down from $58bn
in the same quarter of 2015.
Apple
chief
exec Tim Cook
warned that iPhone unit sales will

decline in the current quarter, amid
global economic troubles.
Were seeing extreme conditions
just about everywhere we look, unlike
anything we have ever experienced
before, he said.
Major markets have been impacted
by slowing economic growth and
falling commodity prices. In the last
quarter alone, the currency impact has
been very large. We are in an environment that is macroeconomically
incredibly different from last year.
Finance chief Luca Maestri said the
group had widened its range for predicted revenue in the current quarter
because of the volatility we are seeing
in the economy and in currencies.
The worlds largest firm by market
capitalisation, Apple has bolstered that
position with year-after-year of growth
in sales of its top product, the iPhone,
which launched in 2007.
However, fears that the market has
seen peak Apple were stoked by the
companys revelation last night that
iPhone sales growth has slumped to
its slowest rate ever.
The group shifted 74.78m
iPhones in the first
quarter, up
just
0.4
per cent
com-
pared with the same quarter of last

year, and missing analysts projections
of 75m.
Investors had feared that revenues
would be down due to poor sales following the launch of the iPhone 6 and
the iPhone 6s and the Apple Watch,
and last nights report was foreshadowed by weak sales figures from a
number of Apple suppliers.
These concerns were borne out, with
revenue of $75.9bn missing analysts
expectations of $76.6bn.
Apple has endured a rocky start to
the year. Reports of a cut in Apple production earlier this month sent shares
tumbling under $100 for the first time
since 2014. Investors did not take
kindly to reports that the Silicon Valley
firm was expected to cut production of
both of the latest iPhone models, the
6s and the 6s Plus, by 30 per cent in the
first quarter.
Sales in other areas of the company
also failed to live up to projections.
Around 16.1m iPads were sold, against
an expected 17.3m. Meanwhile, numbers for the Apple Watch, which
launched in April last year, are still
being wrapped into the other products category, which reported a 62 per
cent increase in revenue year-on-year.
Shares in Apple, which closed up 0.55
per cent at $99.99, crumbled by two
per cent in after hours
trading.
FTSE 100 5,911.46 +34.46 FTSE 250 16,179.02 +32.04 DOW 16,167.23 +282.01 NASDAQ 4,567.67 +49.18 /$ 1.434 +0.010 / 1.320 +0.007 /$ 1.082 -0.002
02
NEWS
CITYAM.COM
THE CITY VIEW
Tesco angers investors

as storm clouds gather
UST two weeks ago, Tesco chief executive Dave Lewis was
hailing a strong Christmas as evidence of the retail giant
making progress. UK like-for-like sales had risen 1.3 per cent
in the six weeks ending 9 January, and Lewis was particularly
pleased with international growth. When good news is hard to
come by, every little helps. Relatively positive figures at the start of
this year were taken as a sign that the boss dubbed drastic Dave
was making an impact and fighting back against the discounters.
However, the retailer is far from out of the woods. The Grocery
Code Adjudicator, Christine Tacon, reported yesterday on the
findings of an investigation which was itself triggered by the
infamous accountancy scandal that is still the subject of an
ongoing Serious Fraud Office probe. According to Tacon, the
supermarket knowingly delayed paying money to suppliers in
order to improve its own
financial position in gross
violation of the industry code
of conduct. The revelation
comes as no surprise for
suppliers as it served simply as
confirmation of what many
had known for a long time.
For the UKs biggest retailer to
have treated its supply chain with such contempt is frankly
reprehensible. Payments due to suppliers were delayed in order to
avoid missing targets that had been promised to investors. Peter
was robbed to pay Paul. Lewis is adamant that Tesco has moved a
long way from the culture that dominated it during the period
covered by Tacons report. But then, thats what he said when the
accountancy scandal was uncovered, too. The deterioration in the
fortunes of this once unassailable retailer are made easier to
understand when one reads Tacons findings. Incompetence (in the
form of data input errors) combined with malignance (help lines
were routed through Hindustan to handlers with no authority to
resolve issues) to make life punishingly hard for suppliers. If
shareholders thought that their difficulties dissolved with the
departure of Philip Clarke, they were mistaken. Indeed, up to 100
institutional investors have come together to launch legal action
over the billions of pounds in value wiped off the company
following the revelations of its 265m black hole. Tesco faces a
tough future, with pressure mounting from all directions.
When good news is

hard to come by,
Lewis found that
every little helps
Follow us on Twitter @cityam

FINANCIAL TIMES
FACEBOOK RESISTS UK BID

TO CLAIM BACK TAX
Facebook is resisting attempts by UK

tax authorities to reclaim back-taxes, a
stance likely to heighten public anger over
aggressive avoidance by US technology
giants. Although it is not known how
much Facebook has set aside, the worlds
leading social media site is being audited
by HM Revenue & Customs over taxes that
may have fallen due between 2010 and
2014.
AIG TO RETURN $25BN AFTER

ACTIVIST SIEGE
American International Groups chief

executive has pledged to return $25bn to
shareholders as he defies demands from
activist investors Carl Icahn and John
WHAT THE
OTHER
PAPERS SAY
THIS
MORNING
Paulson to break up AIG. Peter Hancock

unveiled a streamlining plan including a
listing of AIGs mortgage insurance arm,
and accelerated cost cutting and a
separation of legacy assets.
NEW SHERIFF
IN TOWN
City firms welcome watchdog boss but MPs

want a greater say in future appointments
LAUREN FEDOR
AN INFLUENTIAL group of MPs is calling
for a veto on high-profile hires to the
Citys watchdog, following Andrew
Bailey being named the regulators next
chief executive.
Andrew Tyrie, the Tory MP who chairs
the Treasury Select Committee, asked
chancellor George Osborne yesterday to
give the committee the power to reject
both appointments and dismissals of
Financial Conduct Authority (FCA) leadership, in an effort to ensure the independence of the regulator.
Allegations have been made that the
FCA has been vulnerable to political
pressure, influencing the way that it
approaches the fulfilment of its statutory obligations, Tyrie wrote. Whatever the substance of these allegations,
and there may be none, the perception
of them may remain.
It is partly the need to address these
concerns, and to entrench the FCAs
independence, that has led the committee to conclude that it requires a veto.
A Treasury spokesperson confirmed
Osborne would reply in due course.
The FCA has come under fire in recent
weeks over its decision to drop a review
into Britains banking culture. The revelation that the review had been
scrapped led many to question whether
the Treasury had stepped in.
The watchdogs chairman John Griffith-Jones and acting chief executive
Tracey McDermott told MPs on the
Treasury Select Committee this month
they were not pressured from ministers
to soften the their approach to regulating banks.
Even so, MPs and legal experts told City
A.M. more can be done to restore public
trust in the FCA.
There is a perception problem, Mark
Garnier, a Conservative MP who sits on
the Treasury Select Committee, said: If
you say that the Treasury Committee
has a power of veto, then actually that
dynamic changes. The perception of influence can be balanced between the
Treasury and parliament.
Rob Moulton, a regulatory partner at
City law firm Ashurst said he welcomed
Tyries intervention because the FCA an
entirely politicised organisation with
THE TIMES
QATAR READY TO BACK NEW

SAINSBURYS BID FOR ARGOS
INCOMING FCA BOSS ANDREW BAILEY IN HIS OWN WORDS

January 2011 Market discipline
should be the first line of defence not
regulators like me coming along and
beating people over the head.
November 2011 There was
arguably a suicidal competition in the
run-up to the crisis of a sort we do not
want to see repeated.
July 2012 There was a culture of
gaming [at Barclays]. It had to
change We drew the conclusion
that there was a problem with this
institution.
December 2012 I dont, by the
way, tend to ring people up and say
get your bonuses down. Im not sure
Ive ever made that call, contrary to
public wisdom.
March 2013 We are not
operating a system where no bank can
fail some banks will fail, its good for
the industries quite frankly that firms
do leave when their business models
are failing.
November 2015 Hbos was at
root a simple bank that nonetheless
managed to create a big problem.
hire-able and fire-able chief executives.

Osborne failed to re-appoint former
FCA chief executive Martin Wheatley to
the regulators top job last summer a
sacking Griffith-Jones told MPs had been
a surprise and hurt morale.
City figures welcomed, Bailey, currently chief executive of the prudential
regulation authority (PRA). He will take
the reins of the FCA when a successor is
named for his PRA role. Both the British
Bankers Association (BBA) and
TheCityUK cheered the appointment,
saying Bailey had shown exceptional
leadership at the PRA and was the
right person for the job.
Institute of Chartered Accountants in
England and Wales (ICAEW) chief executive Michael Izza said he had every
confidence that Bailey would give the
FCA stability and strong leadership.
Senior investment bankers also told
City A.M. they found Bailey to be tough
THE DAILY TELEGRAPH
HINKLEY POINT GO-AHEAD

HIT BY EDF FUNDING DOUBTS
Sainsbury is close to securing the

support of its largest investor for a
renewed bid for Home Retail Group as
pressure mounts ahead of a looming
takeover deadline. The Qatar Investment Authority has indicated that it
could support the grocer if it makes a
renewed offer of more than 1bn for the
owner of Argos.
EDF has delayed its final investment

decision on the Hinkley Point new
nuclear plant yet again, amid claims it is
still struggling to finalise funding for the
18bn project. The French energy giant
had been scheduled to take the longawaited decision today, but is now
thought unlikely to do so until its annual
results on 16 February at the earliest.
CENTRICA MOVES TO CUT

COSTS AT BRITISH GAS
TRANSPORT SECRETARY
DEFENDS HEATHROW DELAY
Iain Conn, the new chief exec of Centrica, sought to stamp his mark on the
energy company by announcing a wideranging management shake-up at
British Gas.
Opponents of airport expansion could

not have been more wrong if they saw
the latest delays to a new runway in the
south east as a victory, transport secretary Patrick McLoughlin will say tonight.
but pragmatic. Simon Morris, a financial services partner at CMS, echoed

their comments, saying: Nobody has a
bad word to say about him. But he is a
tough regulator, he is no fool.
I think he will bring a very considered
tone, and I think the industry will welcome that, not in the sense that it is a
soft touch, but it is more predictable,
Morris told City A.M. before adding: He
will not have a minutes patience for
misconduct or lack of ethics.
He will put the FCAs objectives
absolutely at the top of his priorities,
and I think hell be able to deliver them
by carrying industry with him rather
than shouting shrill slogans.
Baileys appointment came as a surprise to many in the City, who had expected him to serve out his full term as
deputy governor for prudential regulation at the Bank of England. He has been
chief executive of the PRA since 2013.
THE WALL STREET JOURNAL
LUFTHANSA ENTERS DEAL TO

DEVELOP DRONE TECH
Deutsche Lufthansa has entered a

cooperation deal with Chinas SZ DJI
Technology to develop unmanned
aircraft technology for commercial use,
the German airline said.
US LOOSENS RULES ON CUBA

TRADE FINANCING
The US has loosened rules for financing

certain exports to Cuba, part of the
Obama administrations step-by-step
measures to build ties with Havana after
decades of sanctions. The relaxed
financing rules are accompanied by
other provisions aimed at facilitating
trade, travel and cultural exchanges
with Cuba.
CITYAM.COM
Metro all set to

go for February
1.9bn flotation
CAITLN MORRISON
CHALLENGER Metro Bank is set to

unveil plans for a massive 1.9bn
float, and could be listed by the end of
February, according to reports.
The bank is also aiming to raise
500m by selling new shares to its
existing investors, which will bring
the total amount raised since the
bank launched in 2010 to 1.1bn.
The private placement shares are to
be priced at 24 each, which is almost
twice the price of the last issue of 13
a share in December 2013.
Sources told Sky News yesterday that
directors of Metro Bank had pencilled
in 24 February as the date on which
the companys shares will begin conditional trading, with full admission
taking place five days later.
The challenger banks board met yesterday to discuss detailed plans for an
initial public offering (IPO), and has
told investors that its shares will be
admitted to the stock market near the
end of next month.

According to a copy of the shareholder communication, part of which
was reported on Sky News, Metro
Bank which has 35 branches, the
majority of which are in London and
the south east reduced losses for the
last three months of 2015 to 10.1m,
down from 10.7m in the third quarter.
The board meeting comes ahead of
results due out this morning for the
fourth quarter of 2015, which will reveal a 78 per cent increase in deposits, up to 5.1bn.
The market float for the loss making
company follows Clydesdale and Yorkshire bank owner CYBGs intention to
list in London and Australia, following
a demerger from National Australia
Bank.
Bank of America Merrill Lynch, Goldman Sachs and Royal Bank of Canada
are working on the Metro IPO.
Metro Bank declined to comment
last night.
NEWS
03
AT&T revenue
below forecast
MALATHI NAYAK
AT&T, THE second-largest US

wireless carrier, said yesterday
fourth-quarter revenue grew less
than expected as it added fewer
mainstream wireless customers
than a year ago due to stiffer
competition from rivals.
AT&T had 526,000 net new
postpaid customers, down 38.4
percent from 854,000 a year earlier.
Total operating revenue rose 22.3
per cent to $42.12bn, slightly
missing analysts estimates. Reuters
Generali boss
World Bank slashes its oil price heads to Zurich
forecast to $37 a barrel from $51
Commodity prices might rise slightly over the next two years, said the World Bank
CAITLN MORRISON
JESSICA MORRIS
THE WORLD Bank yesterday drastically slashed its 2016 oil price forecast
to $37 per barrel, down from $51.
The Washington-based organisation cited Irans return to the
market, alongside the increased
resilience of the US shale gas
industry.
It said oil prices declined around 47
per cent in 2015, and they are now

expected to fall by another 27 per
cent this year.
Low prices for oil and commodities are likely to be with us for some
time, John Baffes, the World Banks
senior economist said.
While we see some prospect for
commodity prices to rise slightly over
the next two years, significant
downside risks remain.
MARIO Greco, chief executive of

Italian insurer Generali, is to step
down at the end of his current
contract, in order to take up the
helm at Zurich Insurance.
He will replace Tom de Swaan,
who has been leading Zurich since
Martin Senn quit as boss on 1
December, after the companys
attempted takeover of UK insurer
RSA failed.
04
NEWS
CITYAM.COM
Fed mulls next

rate rise amid
market swings
BILLY BAMBROUGH
THE US Federal Reserve is set to decide

whether to change its benchmark rate
of interest today, following the latest
US services purchasing managers
index (PMI) coming in below expectations.
Markits flash services PMI for
January came in at 53.7. Economists
polled by Bloomberg had expected an
index reading of 54.
Consumer confidence, however, rose
to a three-month high in January, at
98.1 from 96.3 in December.
The Fed is widely expected to leave
rates unchanged when it releases a
statement tonight.
The Federal Open Market Committee
(FOMC) voted unanimously to raise
interest rates for the first time since
2006 at its last meeting, taking the
range of rates banks offer to lend to
each other overnight, known as the
Federal Funds rate, to between 0.25 per
cent and 0.5 per cent.
It had previously been held at 0.25

per cent since 2008.
An ugly start for the year in US and
global markets is thought not to have
increased FOMC appetite for another
rise in rates.
Since the Fed announced in
December last year that it would push
up the benchmark rate of interest, the
S&P 500 stock index has fallen 9.5 per
cent, while the Dow Jones Industrial
index is down 10 per cent. Oil prices
have collapsed by 16 per cent since
then and have been widely blamed for
the equity sell off.
Consensus among economists is that
the Fed will likely raise interest rates
again in March, though much of that
decision will depend on most recent
economic numbers. The outlook of
inflation could be adjusted downward
as the falling oil price weighs. Inflation
in the US has been under the two per
cent target since 2012, climbing to a
rate of 0.7 per cent in December from
0.5 per cent the month before.
Twitter swoops
on Amex for its
new ad chief
LYNSEY BARBER
The Bank of England governor told MPs that the time isnt right for an interest rate hike
Carney weighs an eight-year stay

EMMA HASLETT
BANK OF EnglandgovernorMark
Carneywill wait until the end of the
year to decide whether or not he
wants to extend his term at the
central bank beyond the five years he
has already agreed.
Appearing yesterday before MPs on
the Treasury Select Committee,
Carney said he will need to make a
determination by the end of the year
if he wants to stay on.Carney also
reassured MPs that he will not follow

Andrew Bailey to the Financial
Conduct Authority (FCA).However,
TSC chair Andrew Tyrie later called
for Carney to provide greater clarity
over his term as governor.
Carney also took the opportunity to
point out that now is not the time for
a rate hike. The UK is seeing a shift
to a more normal risk environment
[but] [we] need domestic cost
growth, he said. Conditions for a
rate rise are not yet in place.
LESLIE Berland was yesterday

named the new marketing boss of
Twitter following an executive
shake up.
She joins from American Express
where she headed up global
advertising, marketing and digital
partnerships.
Chief executive Jack Dorsey
announced the news on Twitter:
Welcoming @leslieberland to
Twitter! She will join as our CMO to
help tell the stories of our iconic
product!
Berland had been identified as
the frontrunner for the job by
Re/Code which found that she had
followed a number of Twitters
most prominent executives in
recent days, and even Dorseys
mum. She has been at Amex since
2005 and before that worked at PR
agencies.
Dorsey on Monday confirmed the
departure of five senior executives
at a time of ongoing troubles for
Twitter.
Shares in the social network fell
to an all-time low last week,
dipping under $16 for the first
time. Shares in Twitter yesterday
closed down 0.06 per cent at $17.01.
CITYAM.COM
NEWS
05
Shell picks up the support of Allianz

Global Investors over BG takeover
JESSICA MORRIS
MAJOR SHELL shareholder Allianz

Global Investors has thrown its
weight behind the companys take
over of smaller rival BG Group.
Chris Wheaton, an oil analyst at
Allianz Global Investors, said it
would be supporting the deal, with
shareholders set to vote today and
tomorrow.
Oil prices have nearly halved since
In one case, the retailer took more than two years to pay a multi million sum owed
Tesco is shamed
by watchdog for
supplier tactics
KASMIRA JEFFORD
AND LYNSEY BARBER
BRITAINS biggest supermarket Tesco

deliberately encouraged staff to delay
payments to suppliers to hit profit targets and in one case took more than
two years to pay a multi-million pound
sum owed, the industry watchdog has
ruled.
In a scathing report published yesterday, the Groceries Code Adjudicator
(GCA) Christine Tacon said Tesco had
seriously breached a legally-binding
code to protect groceries suppliers,
prioritising its own finances over
treating suppliers fairly.
It was clear to me the pressure on
the [Tesco] buyers and the finance
teams to meet their margin targets
was an overriding pressure within the
business and it was widespread it
was everywhere, Tacon said.
She began her investigation into
Tescos supplier practices last
February, five months after the company admitted to overstating its
profits by 263m.
The GCA was handed powers to fine
supermarkets up to one per cent of
annual turnover if they were found to
have breached the code. However,
those powers could not be applied to

Tesco as they came into effect after the
breaches were committed.
Tesco remains under investigation
by the Serious Fraud Office (SFO),
which is also expected to report on its
findings as soon as this week.
Meanwhile, a group of 50 to 100
shareholders is poised to launch legal
action against Tesco over the billions
of pounds wiped off the retailers market value following the scandal.
Law firm Stewarts Law said it will
shortly be writing to the company on
behalf of shareholders as the prelude
to formal legal action, which will seek
to prove that misleading statements
were made to the market and that
such statements were relied upon to
make investment decisions.
The law suit could see them claim
for hundreds of millions of pounds
worth of damages.
Chief executive Dave Lewis, who took
over the helm after the accounting
scandal revelations, said: I would like
to apologise again. We are sorry.
He said the company had drawn a
line under its past and insisted that it
had made radical changes to its culture and the way it dealt with suppliers over the past 15 months.
HOW TESCO MISTREATED SUPPLIERS

Deferring payments Christine Tacon, the
Groceries Code Adjudicator, said internal
emails showed Tesco had also deliberately
encouraged staff to defer payments to
suppliers in order to maintain its margin,
especially at key financial reporting
periods.
Aspirational margin targets The
supermarket watchdog found that
suppliers were often forced to pay to make
up for aspirational margin targets set by
Tescos commercial team, regardless of
whether sales growth had been achieved or
whether Tesco had delivered on its own
commitments.
Data input errors Incorrect data

submitted by Tesco into its systems often
resulted in suppliers being overcharged or
underpaid. The retailer would also often
take months to correct it. In one instance,
Tesco took more than two years to pay
back a multi-million pound sum owed to a
supplier that had been incorrectly charged.
Duplicating invoices The GCAs review
found that there were instances where
Tesco billed suppliers twice then failed to
correct its errors and pay suppliers back
within a reasonable time. In one case,
nearly 2m was owed to suppliers, which
Tesco then took over a year to repay.
Shell made the 47bn for BG in

April, subjecting the deal to
increased scrutiny.
One shareholder, David Cumming,
head of UK equity at Standard Life,
subsequently warned the deal no
longer made sense with the oil price
so low.
Wheaton said: The deal puts
more of shareholders capital to
work in liquified natural gas and
Deepwater, the two businesses
within Shell where return on capital

and free cash generation are highest;
they are where Shell has its biggest
and most sustainable competitive
advantages.
AllianzGI joins many of the two
companies big shareholders which
have said that they back the megadeal.
Shell shareholders will cast their
votes today, followed by BG investors
voting tomorrow.
06
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NEWS
CITYAM.COM
Deutsche Bank: Brexit

would devastate EU
LAUREN FEDOR
DEUTSCHE BANK has warned that

Britain leaving the European Union
would be devastating for the EU.
David Folkerts-Landau, the banks
chief economist, said yesterday that
the EU would see its global influence
wane after a so-called Brexit.
The implications of the UK not
being in the EU will be truly devastating for Europe, Folkerts-Landau
told journalists. If Brexit were to
occur, continental Europe will be relegated to second-rank status.
Folkerts-Landaus comments came
after Morgan Stanley economists
cautioned that holding the EU referendum at the start of the summer
would accelerate uncertainty and
spark a slowdown in UK growth.
In a note yesterday, Morgan Stanley
said it now expects Prime Minister
David Cameron will secure a reform
deal at next months European
Council meeting, paving the way for
a June In/Out vote. The economists
also warned that the Brexit would
trigger a major and sustained rise
in political and economic uncertainty, and if public polling in the
run-up to the vote points to Brexit,
there will be a greater economic
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to our previous September/October
base case], in combination with ongoing fiscal tightening, GDP growth
in the second quarter is likely to be
lower than we had expected.
The economists also said they expect the Bank of England Monetary
Policy Committee (MPC) to delay rais-
ing interest rates until after the referendum. When asked about the
economic impact of Brexit yesterday,
Bank of England governor Mark Carney told MPs on the Treasury Select
Committee that material decisions
in the referendum can have an impact on financial stability.
Meanwhile, a new report out from
Grant Thornton UK today suggests
that Britains mid-sized businesses
overwhelmingly want to see reform
of Britains relationship with the EU.
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Slackers on hackers: Report finds companies

have head in the sand on cyber attack risks
HAYLEY KIRTON
DESPITE business leaders concerns
about cyber security, companies are
still failing to protect themselves
against risks, believing the worst
will not happen to them.
Research released today by Aviva
has found that more than two in
five (44 per cent) small- and
medium-sized businesses in the UK
believe they are unlikely to be the
target of a cyber attack.
Meanwhile, PwC yesterday

warned that businesses were
failing to protect themselves
against cyber crime, even though a
report the firm had released the
week before at the World
Economic Forum found that 74 per
cent of UK chief executives rank
cyber security as a major risk.
There appears to be a
disconnect between concerns at
the top of business and the speed
and consistency with which these
security measures can be

implemented within
organisations, remarked Richard
Horne, cyber security partner at
PwC. This vulnerability to attacks
becomes more stark when we take
into account the speed of
technological change and how
organisations new digital
initiatives present greater
potential for attackers, arming
them with both new tools and a
wider range of targets.
CITYAM.COM
NEWS
07
Cruddas CMC to Purplebricks building on a more

than
800pc
increase
in
gross
profit
float at between
235p-275pa share
MADELINE RATCLIFFE
MADELINE RATCLIFFE
SPREAD-betting company CMC Markets
yesterday announced it is looking at a
price range of between 235p and 275p
when it floats on the London Stock
Exchange next month.
At the midpoint of the range, this
would give CMC a market capitalisation of 736m. It is offering 90.4m ordinary shares,
representing 31 per cent of the
companys total stock, with
the float expected to raise more
than 240m.
Former Conservative
party treasurer Peter
Cruddas founded the
company with 10,000 in 1989 and now

owns just under 89 per cent of it with his
wife Fiona. Cruddas, now chief executive,
will sell between 25 and 30 per cent of the
business, leaving him with a minimum
60 per cent stake.
Cruddas said: The IPO is an important
step for the business CMC is in a strong
position and is enjoying another good
financial year. Our performance has
been positive, and especially so since
the start of the calendar year 2016 and
through the recent market volatility.
We start our roadshow with the business in excellent shape.
Cruddas will sell 25-30 per
cent of the business
PURPLEBRICKS, the hybrid online

estate agent which floated on Aim
in December, yesterday announced
interim results for the six months
ending October.
Gross profits at the Neil
Woodford-backed firm rocketed up
814 per cent, to 4.1m from
400,000 the year before. Revenues
were up to 7.2m, from 800,000
this time the year before, a 777 per

cent increase.
Despite this, the firm, founded in
April 2014, made a larger loss this
year, 6.4m, widening from 2.5m
in the first half of the 2015 financial
year. Marketing spend increased
from 1.1m to 6.6m. Its profit
margins rose to 56.4 per cent from
54.1 per cent.
Trading in the second half of its
financial year has started well: in
January, there was a 275 per cent

year-on-year increase in the number
of customers using its services.
It has increased its online market
share from 43 per cent in April 2015
to 60 per cent as of 31 October.
Purplebricks said: The strength
of trading has resulted in the
decision to accelerate the
recruitment of local property
experts, with a view to doubling
their number by April 2017.
08
NEWS
CITYAM.COM
EasyJet shares take a dive as terror

attacks in Sinai and Paris hit demand
CATHERINE NEILAN
EASYJETS share price fell over three

per cent yesterday after revealing its
revenues have been dampened by
reduced demand for flights in the
wake of the terrorist attacks in Sharm
el-Sheikh and Paris last autumn.
Total revenues fell 0.1 per cent to
930m in the three months to 31
December, with currency headwinds
also eating into growth.
EasyJet recorded negative foreign

exchange movements of 32m for the
period.
The number of passengers carried
increased by 8.1 per cent to 16.1m, as
capacity grew by 7.3 per cent to 17.8m
seats and the load factor increased by
0.6 percentage points to 90.3 per cent.
In October, the group delivered
strong revenue per seat, but this was
dampened, first by the attack in
which a passenger jet was brought
down mid-air en route from Sharm elSheikh, Egypt, to St Petersburg,

killing all 224 people on board, and
subsequently the attacks in Paris in
which 130 people were killed.
That resulted in lower demand
and yield in November and
December, easyJet said, meaning
revenue per seat was down 3.7 per
cent at a constant currency basis.
EasyJet shares closed down 3.19 per
cent at 1,579p.
Jeff Goldblums Christmas ad for Currys PC World led to bumper sales for the retailer
DixonsCarphone
to close more
than 130 stores
CATHERINE NEILAN
MORE than 130 standalone Carphone
Warehouse stores are to be closed, as
parent firm Dixons Carphone continues to merge its retail arms.
Dixons Carphone said it had decided
to roll its three-in-one store format,
which includes PC World and Currys
alongside the mobile phone specialist,
out across the whole of UK and Ireland market.
This is because it said it had received
a big thumbs up from customers from
its trial phase. That will result in 134
stores being closed.
The move, which comes as Dixons
Carphone revealed better-thanexpected results for the Christmas
period, is not expected to result in
any job losses.
While this will reduce our store
numbers by 134, we have been doing
this on a smaller scale for some
years and are very confident that the
impact on sales and colleague numbers will be neutral or better, the
firm said.
In addition, our experience shows
that colleagues prefer working in
and customers prefer shopping in

our new three-in-one format stores.
Dixons Carphone will invest around
50m in the portfolio rejig, with a
further 70m for property exit costs
and other fees.
Given that the programme will be
implemented
during
full-year
2016/17, we anticipate that the benefit to financial year 2016/17 earnings
will be modest, but thereafter this activity will contribute approximately
20m of incremental annual earnings from recurring costs savings,
the company added.
Shares closed down 2.27 per cent at
456.50p.
DIXONS CARPHONE
480
470
460
450
440
26 Jan
456.50
430
20 Jan 21 Jan 22 Jan 25 Jan 26 Jan
Crest Nicholson shares rally as

full-year profits jump by a third
KASMIRA JEFFORD
CREST Nicholson has posted bumper
full-year profits as the housebuilder
stormed ahead with plans to build
4,000 homes by 2019.
Home completions rose by eight
per cent to 2,725 homes in the year to
31 October, with sales revenues up by
26 per cent to 804.8m. The strong
performance helped drive a 32 per
cent jump in pre-tax profits to 154m,
which topped analyst expectations.
Shares rose by 5.56 per cent
yesterday to close at 541p.

Chief executive Stephen Stone said
the housing market is now more
sustainable thanks to strong demand,
a benign land market and
government policies to improve
access to home ownership.
We remain confident that this
environment provides Crest
Nicholson with the opportunity to
grow housing volumes and deliver
strong cash returns to shareholders
over the medium- to long-term, he
said.
CITYAM.COM
THECAPITALIST
NEWS
09
Got A Story? Email

thecapitalist@cityam.com
EDITED BY EDITH HANCOCK
Sick of people droning

on about deflation?
WHILE Mark Carney has been leading the
Bank of England on a dovish fight against
deflation, one former monetary policy
committee member may have been
taking lessons from erstwhile Fed chair
Ben Bernanke on his infamous helicopter printing press.
Danny Blanchflower, MPC
member-turned US Ivy
League professor, has
purchased a drone.
So whats it for?
Does he intend to
fly it to the UK for a
helicopter drop, the
figurative notion of
handing out cash to the
public, and the notion that
earned Bernanke the unfortunate nickname Helicopter Ben?
Even todays drones might struggle to
TAX CUTS? THATS THE SPIRIT!

THE SCOTCH Whisky Associations
campaign to have taxes cut on
spirits is something The Capitalist
will raise a glass to. Led by former
director at the department for
business, innovation and skills
David Frost, campaigners want to
bring down the 76 per cent tax rate
on a bottle of scotch. Frost
launches the campaign at the
Scotch Malt Whisky Society at
9am this morning. Well, its gone
5 oclock somewhere
carry a payload to match the Bank of

Englands total crisis stimulus package
of 375bn, though the professors is so
big its considered a threat to US security. Blanchflower had to register the
vehicle with the Federal Aviation
Association and cant fly it
within 15 miles of the
White House.
Will he be flying the
drone to London and
dropping 50 notes on
Oxford Street?
So far, hes just using it
to take pictures around
his New Hampshire home,
but doesnt hate the idea of drones
stimulating the economy, telling The
Capitalist: Well, if youre going to have
a helicopter drop, you have to start
somewhere. Watch this space.
Over 100
locations
across
London
QUOTE OF THE DAY

Rounding off a session in front of senior
MPs yesterday, Bank of England governor
Mark Carney was asked if hes seen The Big
Short, a new film about the US sub-prime
crash (Carney was governor of the
Bank of Canada at the time).
The central banker quipped:
I feel like I
lived it.
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CITYAM.COM
NEWS
11
Brexit debate shows diversity of business opinion
HE VOICE of the business

community will be crucial in
the EU referendum but
how can we know what that
voice really is?
To get a better idea, YouGov looked
at three distinct groups, interviewing 15 leaders of FTSE 100 and FTSE
250 companies, and surveyed 42 digital entrepreneurs (in partnership
with Founders Forum), and 500
small businesses.
Unsurprisingly, the business community is not a monolith but the
division is clear; large companies
and digital entrepreneurs strongly
Stephan
Shakespeare
favour remaining in the EU, but

small business are more divided.
Exploring the topic further I
hosted an event with Founders
Forum. Big names such as Chris
Grigg, the chief executive of British
Land, Telefonica UK boss Ronan

Dunne and Richard Johnston, CEO
Endemol Shine UK favoured staying
in the EU, although some expressed
grumpiness that the unnecessary
referendum is happening in the first
place basically asking why risk
something that isnt working that
badly?
Hotelier Rocco Forte, on the other
hand, spoke for the eurosceptics,
arguing that if Iceland can negotiate a good deal outside the EU, then
so can the much more powerful
Britain.
Since the banking crisis, business
leaders have largely shied away from

the limelight but business will be a
crucial battleground in the referendum.
Although few corporates jumped
into last years Scottish referendum,
when they did they made an impact.
A large proportion of the public understood that when it came to jobs
and the general economy, what was
bad for business was also bad for
them.
My research among business leaders found that many companies regard it a duty, to be involved in this
referendum. This time its about
the head not the heart, one said,

and we have a positive role to play.
During the campaign well hear
from big corporations, but maybe
not as loudly from small companies
that account for around 60 per cent
of British employees.
Understanding what the different
parts of the business community
think will be a major part of the referendum and is something Ill explore in greater depth in the coming
months.
Stephan Shakespeare is the chief
executive of YouGov
BUSINESS AND THE EU - Percentage of business leaders in SMEs, small digital firms and
FTSE 100, FTSE 250 and large private companies who favour remaining in or leaving the EU
Remain
93
88
Leave
41
42
General public
47
42
SMEs
13
Digital Entrepreneurs
Big Business
BUSINESS LEADERS
How else do
you measure
excellence?
On the stage, professionalism is under the

spotlight every night.
In managing and transferring risk, we need
partners whose dedication to quality is
equally visible.
Chartered status is a very public statement
of an insurance professionals belief in
standards and a commitment to continuous
improvement.
You know youre working with a business
whose ethics match your own people
who can help you achieve spectacular things
every night, every day.
I choose Chartered.
The planned tower, dubbed the Shard of west London, attracted strong opposition
Jonathon Poyner
Director Business Operations
Wales Millennium Centre
Station upgrades worth

50m to be funded by
Paddington Pole maker
MADELINE RATCLIFFE
GREAT Western Developments, the
developer working on the revamp of
Paddington station and the so-called
Shard of west London, has told City
A.M. it will be providing the 47m
needed to upgrade the Tube station.
Great
Western
Developments
(GWD), owned by Singapores Hotel
Properties, is working with the team
behind the Shard and the London
Bridge redevelopment, Sellar Property
Group, to extend the ticket hall at
Paddington and give it a new entrance
under the Paddington Place development next door coined the skinny
shard or the Paddington Pole.
GWD will be funding the upgrades
to the Bakerloo line station, including
broadening the concourse and
increasing the number of exits.
As well as the 47m for the Tube station, more than 13m from GWD will
go towards affordable housing offsite
in St Johns Wood, where 42 new flats

will be built.
John Davies, of Sellar Property
Group, said the project was about
more than the tower.
We knew from the beginning we
had to give something back to public
rail and public infrastructure.
National Rail are a crucial stakeholder
in the project, he said. We hope to
benefit the whole local community, as
we have done at London Bridge.
The team behind the redevelopment
of London Bridge station has been reassembled, including the architect
Renzo Piano who designed the Shard.
The 1bn development on the site of
the old Royal Mail sorting office has
attracted a storm of criticism recently
from architect Sir Terry Farrell, local
residents and Labour councillors in
Westminster who said the planning
process had been rushed through and
there werent enough affordable
homes.
Chartered is the gold standard

for the insurance profession.
Choose it for your business.
choosechartered.co.uk
CHOOSE
CHARTERED
12
NEWS
CITYAM.COM
Lower for longer

rates of interest
strain pensions
HAYLEY KIRTON
POSTPONED interest rate rises will be

the real cause of problems for those
providing defined benefit (DB) pensions, not people living longer.
According to results released yesterday from a stress test on occupational
pensions by the European Insurance
and Occupational Pensions Authority
(EIOPA), DB schemes showed greater
sensitivity to sudden falls in interest
rates and rises in inflation than they
did to a falling mortality rate.
Gabriel Bernardino, chairman of the
EIOPA, remarked: While pension
plan liabilities have a very long-term
nature, it is important that supervisory regimes are prepared to deal
with these stresses in a transparent
way, be it through appropriate recovery periods, the role of pension protection schemes, increased sponsors
contributions and/or benefit adjustment mechanisms.
Meanwhile, the EIOPAs study, which
was the first of its kind to take place

at an EU level, also determined that
the impact of market conditions on
defined contribution (DC) pensions
varied depending on how close plan
holders were to retirement. For example, the younger the scheme member,
the more likely they were to feel the
effect of a low rate of return on assets.
However, the Pensions Regulator
pointed out that pension schemes in
the UK were generally more flexible
than their continental counterparts
and, as a result, the link between
financial stability and scheme performance is less pronounced.
In our view, the results of the EIOPA
pensions stress test illustrate the flexibilities under which UK pension
schemes can operate, commented
Andrew Warwick-Thompson, executive director, regulatory policy at the
Pensions Regulator. This means that
they can respond to adverse market
conditions in a variety of ways that
suit their individual circumstances.
FERGUSON TO
TAKE THE REINS
AT SAVILLS Savills
has named Sky boss
Nick Ferguson its
future chairman,
after Peter Smith
steps down from the
role in May. Ferguson joins the board
as a non-executive
director yesterday
and will take up the
reins when Smith
retires after the
property groups
AGM.
Sky boss Nick
Ferguson
RUSH HOUR RIOT French anti-Uber

protests turn violent and lead to closures
FRENCH riot police and firefighters were called to Paris ring road, the peripherique,
yesterday after an anti-Uber protest turned violent. Taxi drivers who oppose the carhire app threw tyres into the road and lit them. At least 20 people were arrested.
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CITYAM.COM
Consumer giant
beats forecasts
after tax bill cut
RANSDELL PIERSON
JOHNSON & Johnson yesterday

reported higher-than-expected quarterly earnings, helped by lower taxes
and cost cuts, and gave a 2016 profit
outlook slightly above Wall Streets.
Shares of the diversified healthcare
company rose 2.9 per cent to $99.20 in
morning trading as investors
shrugged off fourth-quarter sales and
a 2016 revenue outlook that were
both below analysts estimates.
The strong US dollar and disappointing demand for consumer products
weighed on results, and analysts said
J&J would probably rely on more cost
cuts in 2016 to meet its earnings forecast.
In a conference call with analysts,
chief executive Alex Gorsky said the
company was interested in deal making within its main consumer, medical device and pharmaceuticals
segments, although it believes valuations of potential acquisition targets
were inflated in 2015.

We will continue to be very active
in the mergers and acquisitions area,
he said, noting that J&J in recent years
had derived about half its revenue
from acquired products.
J&J will also consider buying businesses outside its current three main
product areas, Gorsky added.
The consumer healthcare giant,
which owns brands such as Listerine
and Neutrogena, said fourth-quarter
sales fell 2.4 per cent to $17.81bn
(12.42bn), below the analysts average estimate of $17.88bn.
The company forecast 2016 sales at
$70.8bn-$71.5bn. Analysts on average
were expecting $71.88bn.
Jefferies analyst Jeffrey Holford said
J&Js profit outlook included about
$200m of additional cost savings providing a lift of six cents per share.
Fourth-quarter net income rose
about 28 per cent to $3.22bn, from a
year earlier, when it took special
Reuters
charges of about $1.4bn.
NEWS
13
COSTLY CUBICLES The most expensive office rents by Tube stop

Highest
Paddington 1,000
South Kensington 1,000
Green Park 1,000
St Jamess Park 1,000
Sloane Square 900
Tottenham Court Road 850
Piccadilly Circus 850
Bond St 850
DESKS close to the

Jubilee line are
among the priciest,
according to new
data on the cost of
renting office space
across Zone One.
The average on that
line is 793 per
office desk each
month. Next was
the Piccadilly line,
with an average of
788, and Green
Park, where the
two lines converge,
is one of the priciest
stops at 1,000. The
best deskspace
deals can be found
at Tower Hill and
Elephant and
Castle (averaging
400 each).
Lowest
Elephant & Castle 400

Tower Hill 400
Edgware Rd 400
Pimlico 450
Queensway 450
Lancaster Gate 450
Notting Hill Gate 500
Old Street 500
London has room for 130,000 new homes

JESSICA MORRIS
LONDON has room for at least
130,000 new homes on surplus land
owned by the public sector, according to a report released yesterday.
The London Land Commission,
which is co-chaired by the mayor
and housing minister, has
published an interactive map
showing which parts of London are

owned by public organisations such
as boroughs, the police and
transport agencies.
It comes as Londons housing
crisis becomes increasingly acute,
with demand raging ahead of
supply.
The [land] register reveals that
25 per cent of London is owned by
the public sector, comprising

40,000 sites.
There could be 130,000 homes
built for Londoners on public sites
already identified as potentially
surplus, a volume of homes which
will continue to grow, Richard
Blakeway, deputy mayor for
housing, land and property, wrote
in City A.M. yesterday.
Ready meal maker Greencore cooks Want that job? Talk

up 7.2 pc jump in first-quarter sales about the weather
KASMIRA JEFFORD
FOOD supplier Greencore yesterday

recorded a 7.2 per cent jump in first
quarter sales, boosted by new product
launches and strong growth in its
convenience food business.
The company, which supplies
supermarkets with products ranging
from sandwiches to cakes and
Yorkshire puddings, reported sales of
356m in the 13 weeks to 25
December 2015. Its convenience food

business, which makes up the
majority of the business, saw sales
increase by 7.7 per cent to 345.1m.
UK revenues rose by 7.9 per cent
year-on-year thanks to its core chilled
categories such as ready meals and
soups, which performed well.
Greencore is building a new
factory in Northampton to help serve
the food-to-go market, which will be
completed within months.
In the US, where it supplies coffee

chains, including Starbucks, with
sandwiches, sales growth slowed to
6.5 per cent in the period, in line
with expectations, after closing its
factory in Brockton in November.
The company will expand to the
West Coast for the first time this year
after winning a contract in Washington state, with a new facility set to
open near Seattle in the second half
of the year.
EMMA HASLETT
THE FIRST 12 words a person utters in

a job interview will determine the
overall impression a person makes
and it turns out small talk is crucial,
new research suggests.
The research, by Resurgo Trust,
found people without privileged
backgrounds can struggle with small
talk which puts them at a
disadvantage.
Most people want to ease their

way into a business meeting and I
think it is a perfectly natural way of
starting a meeting or interview and
not everyone knows how to do it,
said Scott Hutchinson from Interim
Partners, a management and
recruitment consultancy. Weather is
a great ice breaker but there are other
ice breakers the first 12 words
should be small talk, but perhaps
about the company you are visiting.
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NEWS
CITYAM.COM
Fiat Chrysler is fighting to keep its Firms feel cost of low

turnaround plan from skidding workplace wellbeing
AGNIESZKA FLAK
FIAT Chrysler Automobiles (FCA) will

have its work cut out today to convince investors it can deliver its
turnaround plan after model delays,
deferred investments and slowing
demand in key markets Asia and
Latin America.
Chief executive Sergio Marchionne
said earlier this month the worlds
seventh-biggest car maker could still
grow profits fivefold between 2013
and 2018, eliminate net debt and turn

its Jeep, Alfa Romeo and Maserati
brands into global forces.
But nearly halfway into the fiveyear plan, many analysts are sceptical
he will succeed to erase 7.85bn
(6bn) of debt and grow net profit to
around 5bn. Ambitious is not
really an adequate word to describe it,
fantasy land might be more
appropriate, said Bernsteins Max
Warburton, who has an
underperform rating on FCA stock.
Marchionne said this month that

FCAs performance last year came in
at the top end of its own forecasts,
which included an adjusted net profit
of 1.2bn a long way from the 2018
target.
Alongside annual results today,
FCA is expected to announce a more
prominent role for the fast-growing
Jeep brand in its 48bn investment
plan, while some models for Alfa
Romeo and Maserati will likely be
delayed.
Reuters
HAYLEY KIRTON
STAFF absences cost businesses more

than 500 per worker, but employers
are still not doing enough to protect
their employees wellbeing.
According to research out today
from the Chartered Institute of
Personnel and Development (CIPD),
although employee absences now
cost businesses an average of 554
per employee per year, 61 per cent of
employers approach wellbeing
Scotland lobbies
Osborne on tax
cuts for oil firms
KAROLIN SCHAPS
THE SCOTTISH government is seeking
an urgent meeting with chancellor of
the exchequer George Osborne to
urge him to lower taxes on energy
companies after Scotland suffered
heavy job losses due to persistently
low oil prices.
The British government made a
series of tax cuts and offered other
incentives to the North Sea oil and
gas industry last March, helping an industry dealing
with
tumbling
oil
prices.
Since then, crude
prices have continued to slide and
Scotland has lost
around
10,000
jobs as oil companies cut costs and
scrap projects to
respond to weaker
revenues.
The Scottish government is taking action to support the
industry at this difficult
time, but this needs to be matched
by a commitment from the UK government to address the fiscal regime
in which the industry operates,
Scotlands First Minister Nicola Sturgeon in a statement yesterday fol-
lowing a cabinet meeting on the oil

and gas sector.
Scottish deputy first minister and
finance secretary John Swinney will
seek an urgent meeting with Osborne who will present his Budget
on 16 March, Sturgeon added.
Scotland decided at the cabinet
meeting to focus on ensuring the
sector retains high-level skills, that
energy companies continue exploring for oil and gas in the North Sea
and that new technologies are
applied to improve services.
Scottish
business
lobby Scottish Enterprise said yesterday
Scottish First
Minister Nicola
Sturgeon
a total of 9,799 job
reductions
and
consultations had
been announced by
energy companies in
Scotland since July.
Trade association UK Oil &
Gas put employment across the UK
industry at 375,000 in its Economic
Report 2015.
It estimates that approximately 4050 per cent of UK employment is
Reuters
within Scotland.
Santander appears to like Rosas spicy seafood hotplate with sizzling stir fried squid
Santander invests in London

restaurant chain Rosas Thai cafe
MADELINE RATCLIFFE
SANTANDER yesterday invested

1.8m into London restaurant chain
Rosas Thai cafe, to help it expand
in the capital.
The investment, including an
800,000 growth capital loan, will
fund the opening of three new
restaurants in 2016, first in
Victoria, and then Brixton and
Shoreditch.
The company hopes the new
restaurants will create 100 jobs over
the next two years.
Lee Alderson, director of growth
capital at Santander corporate &
commercial, said: The aspiration
of the management team is to

accelerate the rollout of this
authentic Thai food concept. The
committed funding provided by
Santander under its Breakthrough
programme facilitates this. We look
forward to working with the
management team in this next
exciting phase.
Santanders growth loans are
available to businesses with
turnovers of up to 50m a year.
Alex Moore, owner and managing
director of Rosas Thai Cafe, said:
The success of Rosas remains
Saiphins traditional cooking: we
still offer many of her original
dishes.
CITY MOVES WHOS SWITCHING JOBS Edited by Joseph Millis

INDIGO
Indigo Planning has appointed

Julie White as associate. Julie
joins Indigo Planning with
more than 15 years national
and regional industry
experience. Much of Julies
work has focused on delivering
residential and mixed-use
proposals for private
developers, as well as major
retail projects for a national
supermarket operator. She also has experience
carrying out policy work and driving regeneration
projects in urban and rural areas. Julie has worked
alongside a range of public sector clients, including the

West Yorkshire Fire and Rescue Authority and in the
education sector on the Building Schools for the Future
Programme and Priority School Building Programme.
AVACTA
Philippe Cotrel has joined the developer of Affimer

biotherapeutics and research re-agents Avacta as chief
commercial officer. Philippe joins Avacta from Abcam,
where he held the role of commercial operations
director. He will lead the groups commercial strategy
and business development activities, and will drive the
commercialisation of the Affimer technology as both
research reagents and biotherapeutics. Philippe has
over 20 years commercial experience in sales,
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
marketing and customer support in the life sciences

sector having held senior positions in Amersham
Pharmacia Biotech, Oxford Glycosciences and
Affymetrix.
SAVILLS INVESTMENT MANAGEMENT
Savills Investment Management, the international

property investment manager, has appointed Tasnia
Aurongonzeb as compliance manager and Lucy
Matthams as head of HR. Both will report to chief
operating officer James Bury. Prior to joining Savills IM,
Tasnia was compliance manager and money laundering
reporting officer at Curzon Advisers and previously was a
project team data remediation analyst at Barclays
Wealth Management. Lucy joins from Land Securities,
reactively rather than proactively.

The study also discovered that
wellbeing was taken into account to
a moderate or great extent in just 43
per cent of business decisions.
With the UK at the bottom of the
G7 and near the bottom of the G20
countries on productivity per capita,
the way we manage people and
create cultures that enhance
wellbeing are now bottom-line
issues, said Professor Cary Cooper,
CIPD president and wellbeing expert.
GURASSA FLIES
TO CHANNEL 4
Charles Gurassa,
the deputy chairman of easyJet has
been named the
new chairman of
Channel 4, in place
of Lord Burns who
steps down today.
The appointment of
a fresh face comes
at a time when a
question mark
hangs over Channel
4s future as a public
service, with speculation that it might
be privatised.
Charles Gurassa will
have to deal with a
government review
into Channel 4s
future as a public
broadcaster
SIGN UP TO RECEIVE THE DAILY CITY MOVES

EMAIL SERVICE AT CITYAM.COM/CITY-MOVES
where she was an HR Business partner for its London
portfolio and corporate services. Prior to this, she was
HR manager at Kings College Hospital, NHS Trust,
where she was main HR business partner for three
service lines.
INVESTEC
Colin Short has been appointed to the Investec Aviation

Team as head of technical services. Prior to this, Colin
was the chief technical officer of KV Aviation, where he
was responsible for the technical asset management of
the KV portfolio, coordinating and managing all
aircraft pre-purchase and mid-lease inspections,
aircraft deliveries & re-deliveries, as well as drafting
and negotiating technical lease documentation.
WEDNESDAY 27 JANUARY 2016 MARKETS 15
CITYAM.COM
CITYDASHBOARD
In association with
YOUR ONE-STOP SHOP BROKER

VIEWS AND MARKET REPORTS
LONDON REPORT
BEST OF THEBROKERS
FTSE dug out of

a hole by surge
in miner stocks
To appear in Best of the Brokers, email your research to notes@cityam.com
HE FTSE 100 index closed up

yesterday evening as the
price of oil rebounded and
mining stocks began to
rally. The UKs blue-chip
index rose 0.59 per cent to 5,911.46
points, led by Anglo American and
Glencore as the price of oil staggered
back over $30 a barrel.
A short-squeeze in crude oil has
dragged markets out of the
doldrums. Oil prices continue to be
the dominating driver of stock
market direction. The price of oil
reversed an early decline during
Asian trading hours before gaining
as much as three per cent as US
markets came online, said Jasper
Lawler, analyst at CMC Markets.
Anglo American was at the fore of
the rebound, rocketing 11.80 per
cent to 253.35p per share. Glencore
and Fresnillo rose 7.73 per cent to
87.10p per share and 5.55 per cent to
694.50p per share respectively.
Rio Tinto jumped 4.94 per cent to
1,688.50p per share while Antofagasta rose 4.07 per cent to 378p per
share and BHP Billitons share price
closed at 665.50p, a 4.02 per cent
increase. Randgold Resources was
another riser on the FTSE, up 4.87
per cent at 4,820, as gold is
considered a safe haven for investors.
Brent oil initially fell to a low of
$29.25 a barrel just after the stock
market open, but went on to make
solid progress throughout the rest of
the days trading.
Chris Beauchamp, market analyst
at IG, said the price of oil was helped
by rumours of production cuts.
At this point, a decision between

the Organisation of the Petroleum
Exporting Countries and non-Opec
members to cut production is not
the important element; the key
point is such talk allows the price to
move upwards to a position where
bears can hit the sell button once
again, Beauchamp said.
EasyJets share price fell 3.19 per
cent to 1,579p after the company
reported revenues fell 0.1 per cent in
the three months to 31 December.
Lawler added: A slide in BT and
EasyJet shares meant consumer
services and telecoms were at the
bottom of the UK benchmark.
Bank of England governor Mark
Carney faced questioning from the
Treasury Select Committee about his
position on the UK economy and the
timing of when interest rates might
rise, said Michael Hewson, chief
markets analyst at CMC Markets.
As recently as August last year, he
was hinting that interest rates could
be set to rise in the coming months
only to revise that position at the
beginning of this year.
FTSE
5,950
5,900
5,850
5,750
5,700
5,650
ROYAL BANK OF SCOTLAND

P
270
260.90
265
5,911.46
26 Jan
20 Jan 21 Jan 22 Jan 25 Jan 26 Jan
Oil surge helps

Wall St shrug
off China woes
26 Jan
260
255
250
21 Jan
20 Jan
22 Jan
25 Jan
26 Jan
UBS believes now is the right time to buy shares in RBS. The recent sell-off, driven by
investors avoiding the stock due to its legacy issues, has left it much too cheap,
making it a more attractive return prospect than the market appreciates, UBS said.
The broker has therefore upgraded its rating from neutral to buy, but lowered its
12-month target price to 350p from 363p, which factors in a 36 per cent upside.
PEARSON
800
780
760
740
720
700
680
660
769.50
26 Jan
20 Jan
21 Jan
22 Jan
25 Jan
26 Jan
Shore Capital has cut its 2016 earnings per share and dividend per share forecasts by
15 per cent and two per cent respectively to reflect the tough trading environment,
restructuring plans and revised guidance flagged in last weeks interim management
statement. The broker sees little scope for improved share price performance and
has therefore cut its rating from hold to sell with a 760p target price.
KINGFISHER
350
345
340
335
330
325
320
315
20 Jan
5,800
NEW YORK
REPORT
26 Jan
317.40
21 Jan
22 Jan
25 Jan
26 Jan
Jefferies believes investors should buy into Kingfishers stock and has
reiterated its 420p target price following an investor day on Monday when it
outlined a new five-year strategy. The broker said its view remains that the
French housing market is starting to turn and that Screwfix UK can continue to
grow strongly. Meanwhile, the ONE Kingfisher plan also appears to have been
mapped out with suitable caution.
TIGHT FIXED CRUDE
SURGE in oil prices and strong

quarterly results from 3M,
Johnson & Johnson and
Procter & Gamble yesterday helped
Wall Street to rebound more than one
per cent.
The Dow Jones industrial average
ended 1.78 per cent higher at
16,167.23 points and the S&P 500
gained 1.41 per cent to 1,903.63. The
Nasdaq Composite added 1.09 per
cent to 4,567.67.
With oil at 12-year lows and
threatening to put higher-cost
producers out of business, investors
have been reeling from a turbulent
start to the year that has left the S&P
down seven per cent from the end of
2015.
This is a schizophrenic market. Big
up days, big down days. No real
direction, said Tim Ghriskey, chief
investment officer of Solaris Group in
Bedford Hills, New York.
We need some stability in oil prices
for the markets to calm down from
here and become less volatile, he
added.
Laser-focused on yesterdays
rebound in crude prices, Wall Street
shrugged off a six per cent slump
overnight in Chinese shares, sparked
by jitters over Beijings ability to calm
domestic markets.
That left the gap between US and
Chinese stock indexes at its widest
since at least August.
Johnson & Johnson was the biggest
influence on the S&P, up 4.96 per cent,
while Procter & Gamble rose 2.55 per
cent.
Both companies reported profits
that beat estimates.
Exxon climbed 3.68 per cent, while
Chevron rose 3.99 per cent.
3M jumped 5.24 per cent, giving the
biggest boost to the Dow, after betterthan-expected quarterly profit.
Spread Betting | CFDs | Forex
START SPREAD BETTING OIL WITH A

4 POINT SPREAD A 40 DEPOSIT*
Open an account at spreadco.com
*4 point spreads available on US CRUDE OIL FUTURES up to at least 50 a point,
excluding public holidays
Leveraged products are high risk,

losses may exceed deposits
16
OPINION
CITYAM.COM
FORUM
I will give Londons businesses

the freedom they need to thrive
ROM tech startups to street

markets, black cabs to global
banks, Londons businesses
are what make our city great.
As mayor, Ill make it my business to deliver for them.
Last week I launched my Action
Plan for Greater London: more
homes, better transport, cleaner air
and safer streets. These are issues
that matter to business. Unreliable
trains hit our competitiveness. When
our up and coming programmers are
priced out by the cost of housing, we
lose their skills.
In the next few weeks Ill be setting
out the detailed policy to deliver that
plan. But more important than any
one policy is the strong economy to
pay for it all. Thats why today Im
launching my blueprint for London
Business.
My first commitment to the capitals job-creators is that Ill work to
secure you the best possible deal
from government. At the local level,
Ill work with councils to create more
affordable office space, to slash the
red tape holding back broadband,
and to ensure they do all they can to
boost our struggling high streets.
From City Hall, I will make sure our
underground stations and big new
developments on mayoral land provide low cost spaces for startup businesses. I will deliver the Night Tube,
which will provide an immediate
boost to our booming night time
economy. And I will use TfLs 560km
network of tunnels and railway
verges to help deliver Broadband for
London a superfast broadband network for Londoners.
Nationally, Ill work with central
government to get the funding for
major transport infrastructure proj-
ects like Crossrail 2.

And, to guide my approach on the
most important issues, Ill set up a
Business Advisory Group, with members nominated by the business community itself.
Second, Ill make it easier to start
and grow a business. David
Camerons government has been
unambiguously pro-business, cutting
corporation tax to the lowest level in
the G20. Ill take the same approach
in City Hall. The historic devolution
of business rates offers a huge opportunity for boroughs. As mayor, Ill
make sure these powers are used to
attract new startups, then support
them to scale up.
Third, Ill make sure London businesses have the skills they need to
grow. Ill work with boroughs to find
new sites for schools and ensure that
developers build them. Ill press for
more government provision on childcare, so talented women dont fall
out of the workforce. And Ill use the
new devolved adult skills budget to
close skills gaps in Londons cutting
edge industries, backing emerging
business clusters like MedCity
around Euston and the creative
industries around Kings Cross.
Fourth,
because
I
know
government doesnt have all the
answers, Ill work hand-in-glove with
business to solve the big challenges
facing London. Ill build on two of
Boriss most important legacies: his
campaign to drive take-up of the
London Living Wage, and his sterling
efforts in crossing the globe banging
the drum for London firms. Ill
launch a London Faster Payment
campaign, where large companies
will be encouraged to pledge to pay
their smaller suppliers within nine
Zac
Goldsmith
This week Ken

Livingstone was
clear that a vote for
Sadiq Khan is a vote
for Corbynism
days. And I will travel the world with
British business including scale-up
firms.
As mayor, a key priority for me will
be harnessing the ingenuity of our
tech sector. To make this happen, Ill
follow New York and appoint a chief
digital officer (CDO) and put them
in charge of a Mayors Office of Data
Analytics. The London CDO will be
responsible for turning London into a
Smart City, where we use data-driven
analysis to run our city, guiding better policy on everything from manag-
ing traffic flows to deciding on

health priorities.
This strategy will include an annual
1m Mayors Tech Challenge. Each
year I will set out some of the biggest
challenges facing London, the data
we have available on those challenges and will invite businesses to
come forward with innovative solutions. The next stage of the digital
revolution is to disrupt the public
sector.
My blueprint for business will
ensure Londons firms have the support but also the freedom they need
to innovate and thrive.
And theres a real choice in this
election.
Flying pickets, dividend bans, punitive taxes for the City, even talk of
abolishing the City of London
Corporation thats the agenda that
Sadiq Khans radical supporters have
signed up to. If Jeremy Corbyn and
Khan take City Hall, theyll get a four
year trial run to test their ideas out.
You dont have to believe me. This
week Ken Livingstone was clear that a
vote for Khan is a vote for Corbynism.
Its why a Labour victory would be a
disaster for London business. It would
mean four years of chaos and infighting instead of the urgent action on
tax, red tape and infrastructure that
London business needs.
London is booming. But with a
volatile global economy, we cant
take that success for granted. Only a
Conservative mayor, working in partnership with a Conservative government, can guarantee the growth and
stability that underpin our great
world city.
Zac Goldsmith is Conservative
candidate for mayor of London.
Why markets arent necessarily telling

the truth about the state of the economy
HE opening month of 2016

has been marked by sharp
falls in asset prices, not just
in financial markets but in
commodities such as oil
too. The conventional wisdom is that
the markets form a rational assessment of future prospects for the economy, and set prices accordingly. So if
prices
fall,
we
should
be
downgrading our forecasts for economic growth.
The underlying theory is that
shares in any particular company
only have value because of the future
stream of dividends which the owner
of the share will receive. If the
outlook for the economy becomes
gloomier, the expectation becomes
that firms will not make as much
profit and dividend payments will be
reduced. So share prices fall.
It sounds plausible. But in recent
years, developments within economics have cast serious doubt on
whether financial markets are rational in this way. A key player has been
Robert Shiller, professor at Yale and

winner of the Nobel Prize in 2013.
The title of his first paper on the
topic, published as long ago as 1981,
gives an indication of his argument:
Do stock prices move too much to be
justified by subsequent changes in
dividends?
Shiller looked at data from the
1920s onwards, and showed that
stock prices moved up and down to a
much greater extent than dividends
did. This excess volatility, as he called
it, was confirmed when evidence
going back into the nineteenth century was examined. If dividends are
meant to determine prices, yet shares
fluctuate much more, there is clearly
something wrong with the theory.
Although his article was published in
the top ranked American Economic
Review, it was originally widely
regarded as a bit weird. Gradually,
however, as events unfolded like the
20 per cent crash in share prices in a
single day in 1987, his arguments
became more persuasive.
Paul
Ormerod
Recent years have seen developments which reinforce Shillers

point. In February 2015, for example,
Brad Jones published an IMF Working
Paper on asset bubbles. He pointed
out that the value of globally-traded
financial assets increased from some
$7 trillion in 1980 to around $200 trillion now. Even more importantly,
banks no longer dominate the market. The value of assets under management of investment firms is now
nearly as large as that held by the
large global banks. People have
become richer, are saving more, and
look for companies to manage their
money.
Jones argued that the incentives

facing asset managers lend themselves to herding behaviour and
excess volatility in the markets. The
tyranny of the quarterly report drives
decisions. A fund simply cannot risk
taking a view which is too contrary to
that of the consensus. A manager
may eventually be proved correct,
but if in the short term loses money,
investors will simply pile out of his or
her fund.
Ironically, of course, large falls in
markets still have the capacity to be
self-fulfilling. By destroying the value
of wealth, they reduce future spending. Still, it was another Nobel
Laureate, Paul Samuelson, who
famously remarked that the stock
market has forecast nine of the last
five recessions.
Paul Ormerod is an economist at
Volterra Partners, a visiting professor at
University College, London, and author
of Positive Linking: How Networks can
Revolutionise the World.
DEBATE
Q: After a Brexit
war game found
prospects for the
UK outside the EU
are bleak, should
we take the result
seriously?
Rajesh
Agrawal
YES
The EU gives us access without barriers to
500m customers, 24bn of foreign
investment and the clout of negotiating as
part of the worlds largest trade bloc.
Britain could of course go it alone, do
things our way, tell the Eurocrats where to
go. But rather than regaining sovereignty,
the truth is wed end up with less ability to
pursue our interests. For example, for the
sake of half our exports, we would surely
want to negotiate retaining access to the
Single Market. In return, wed have to
agree to stick to the rules, even the ones
we dont like. But by leaving the EU, we
would have given up our seat at the table
where these rules are set and where our
economic interests, including those of the
City, can be defended. The bleak reality of
Brexit might not hit us straight away, but
over time this loss of influence would have
serious consequences for business, for
trade and for jobs. Britain is better served
by remaining in the driving seat, not
relegating ourselves to the sidecar.
Rajesh Agrawal is founder and chief
executive of RationalFX and Xendpay and
business adviser to Labours London
mayoral candidate Sadiq Khan.
Richard
Tice
NO
Reports of Euro-pocalypse after Brexit have
been greatly exaggerated.Hardly a week
goes by without another
hugenamecoming out to dispel the myth
of a latter-day corporate exodus. Unilever
was the most recent, right behind Toyota,
whichwas itselffollowing Bentley, RollsRoyce and other carmakers.Even Airbus
has said its going nowhere. And why should
they?Plenty of countries trade freely with
the Single Market from outside the EU, and
successfuldemocracies fromCanada
toNew Zealandmanage perfectly well as
free-standing nations. Brexit will empower
the UK to make bilateral deals around the
world and play its full part in global trade
bodies. The Remain campaignshould think
of all the opportunities this will allow us to
create, andhave a bit more confidence in
the UK. Jim Ratcliffe, the head of Britains
biggest private company, summed it up
when he said that we can govern ourselves
withoutlayers and layers ofburdensome
EU regulations on top of national
legislation.
Richard Tice is co-founder of Leave.EU and
former chief executive of a FTSE 250 company.
CITYAM.COM
WE WANT TO HEAR YOUR VIEWS
LETTERS
TO THE EDITOR
BEST OF
TWITTER
Tax complexity
Chinese capital flight. Over

$1 trillion in capital flowed
out of China in 2015.
$158.7bn last month alone.
@DrPippaM
[Re: Tories demand simpler tax system]

Andrew Tyrie is right to say that tax policy
must be made simpler and more practical,
and the system more coherent. Our members
frequently tell us that onerous tax
administration is adding to the cost of doing
business and makes a mockery of the
governments drive to cut red tape. HMRC
should use its limited resources to support
businesses to help them get it right. Any focus
on enforcement should be about wilful
evasion and big numbers, not punishing
those who make unintentional mistakes
when faced with a sprawling tax code.
Adam Marshall, executive director of policy
and external affairs, British Chambers of
Commerce
Tech skills shortage

[Re: How the next mayor can turn London
into a truly digital city, yesterday]
Russ Shaw is right to make the case for the
new mayor to champion the cause of the tech
sector in London. But if the chancellors aim of
rebalancing the economy so that were not
overly reliant on financial services or the South
East for UK growth is to be met, we need to
boost the tech sector across the UK. In
particular we need to harness the
entrepreneurial spirit of the UKs mid-market
tech sector. These mid-sized firms are well
spread geographically, have typically had
strong levels of growth and also have
international ambition. But they need help to
get to the next level. Like many in the industry,
the biggest headache facing mid-market tech
firms is the shortage of skills. One step the
government can take is to reinstate the two
year post-study work visa for post-graduates in
Stem subjects to ensure our businesses have
the right people with the right skills to grow.
Julian Frost, partner and head of
technology sector, BDO
Fountain House,
3rd Floor, 130 Fenchurch Street,
London, EC3M 5DJ
Tel: 020 3201 8900
Fax: 020 7248 2711 Email: news@cityam.com
17
:@cityam
Ignore Googles corporation tax

bill and scrap the tax altogether
Mark Carney getting a

rought ride at the Treasury
Select Committee. So the
honeymoon is over as he
waffles away!
@notayesmansecon
Interesting that one of the
more recent goals of new
FCA chief executive Andrew
Bailey was to help increase
competitiveness of smaller
challenger banks.
@Josh_RaymondUK
BBA stat of the day: one out
of every seven customers
now use contactless cards
for payment according to
Visa Europe.
@bbavoice
Looks like Chinas coal use
fell in 2015 as it did in 2014
after rising for decades.
Profound implications for
energy and climate change.
@IEABirol
The French public sector
and state-protected
monopolies are on strike
against fiscal reality and the
laws of economics.
@A_Liberty_Rebel
Certified Distribution
from 30/11/15 till
03/01/16 is 98,736.
E:theforum@cityam.com COMMENT AT:cityam.com/forum
OPINION
T WOULD be easy to believe, from

the coverage of Googles 130m tax
deal with the Exchequer, that corporations are a big pot of money from
which we can take as much as we
like, limited only by their cunning wiles,
our bumbling and/or complicit tax men,
and our foolishly malleable tax rules.
But this couldnt be further from the
truth. Corporations are legal constructs
and the taxes they pay ultimately come
out of the pockets of their stakeholders.
Whats more, not all taxes are equal,
and if we scrapped corporation tax we
could recover the 43bn it raised in
2014-15 more efficiently through other
levies.
It seems ridiculous to many that
Google could pay the Exchequer only
30m in a year, when it earns over
4.5bn around 10 per cent of its revenues in the UK. But sales are not profits. Though Googles global profit
margin is 25 per cent, implying profits
of around 1.1bn from its UK activities
and a corporation tax bill of around
200m, it does very little of its engineering and design here. Blogger Maya
Forstater has plausibly argued that, scaling those profits not to its UK revenues
but to its UK activities (mostly sales),
30m the annual sum agreed was in
the ballpark of what Google should pay.
But a more interesting question is
whether firms should pay corporation
tax at all. What people forget when they
see big global firms handing over cash
to governments is that this money has
to come from somewhere. When firms
face a higher tax regime, do they
increase prices (so consumers pay the
tax), do they pay lower wages (so their
employees ultimately bear the burden),
or does it come out of shareholder
returns?
Academics have been working on the
Ben
Southwood
question for decades, producing dozens

of theoretical and empirical papers. I did
a review of all the empirical work that
existed in 2014 and the average paper,
excluding outliers, found that around
three fifths of the burden was borne in
the form of lower wages, and the
remaining two fifths was borne by
shareholders. Not only is this a 60 per
cent stealth tax on workers, but taxing
investment returns also distorts investment and induces inefficient firm structures.
Investment into tools, infrastructure,
skills, and better organisation is what
makes us more productive. Higher productivity means more goods to go
around and higher living standards.
Most economists, across the ideological
spectrum, agree that capital should ideally not be taxed at all; in fact the result
most convincingly showing this is the
Atkinson-Stiglitz theorem, after
famously progressive Anthony Atkinson
A 2013 paper found

that distortions
caused by corporation
tax cost the economy
25p for every 1 raised
Editorial Editor Christian May | Deputy Editor Julian Harris

Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen
Sports Editor Frank Dalleres | Creative Director David Riley
Commercial Sales Director Jeremy Slattery |
Head of Distribution Gianni Cavalli
and Joseph Stiglitz. Corporation tax flies

in the face of this, reducing returns and
hence disincentivising investment.
Even more important is the distortionary effect of corporation tax on firm
structure deterring entrepreneurs
from going corporate and stunting the
growth of their firms. Michael
Devereux, Li Liu and Simon Loretz,
economists at the Oxford University
Centre for Business Taxation, found in a
2013 paper that these distortions cost
the economy around 25p for every 1
raised from corporation tax. Boston
Universitys Laurence Kotlikoff has collaborated on a number of papers on the
US corporate income tax, including a
simulation that found rapid and dramatic increases in investment, output
and real wages from eliminating it.
There is one big problem with cutting
or abolishing corporation tax. If you cut
it far enough, it becomes tempting for
people to individually incorporate,
define their income as profit, and avoid
tax. Some of this can be avoided with
sensible rules, but the problem can only
be fully tackled with more extensive tax
reform. For example, raising a greater
proportion of state revenue from consumption taxes (like VAT) means that
people are taxed regardless of how
money gets into their pockets.
Corporations are not pots of money.
They are legal constructs that help us to
create the wealth we enjoy so much of
in the developed world. Taxing corporations discourages the investment that
makes us more productive and it discourages the corporate form that has
underwritten the success of modern
capitalism. Lets ignore Googles tax bill
and scrap corporation tax altogether.
Ben Southwood is head of research at
the Adam Smith Institute.
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18 MARKETS WEDNESDAY 27 JANUARY 2016
FTSE 100
FTSE 250
5911.46
34.46
FTSE ALL SHARE
16179.02
32.04

GILTS
-0.07
-0.04
-0.03
-0.01
0.03
0.05
0.10
0.20
0.16
0.23
0.08
0.32
0.45
0.18
0.27
0.68
0.84
0.42
0.85
0.89
0.33
0.98
0.53
1.13
1.21
0.66
1.33
1.50
1.50
1.64
0.00
Tsy 8.000 15 . . . . . . .106.51

Tsy 4.750 15 . . . . . . .102.64
Tsy 4.000 16 . . . . . .105.79
Tsy 2.500 16 . . . . . . .327.52
Tsy 1.250 17 . . . . . . . .107.61
Tsy 8.750 17 . . . . . . . .121.21
Tsy 5.000 18 . . . . . . .113.51
Tsy 3.750 19 . . . . . . .113.00
Tsy 4.500 19 . . . . . . .115.07
Tsy 4.750 20 . . . . . .119.04
Tsy 2.500 20 . . . . . .366.72
Tsy 8.000 21 . . . . . .142.92
Tsy 4.000 22 . . . . . .119.85
Tsy 1.875 22 . . . . . . .124.78
Tsy 2.500 24 . . . . . .350.74
Tsy 5.000 25 . . . . . .134.70
Tsy 4.250 27 . . . . . . .131.90
Tsy 1.250 27 . . . . . . .130.83
Tsy 6.000 28 . . . . . .155.76
Tsy 4.750 30 . . . . . . .142.51
Tsy 4.125 30 . . . . . . .347.31
Tsy 4.250 32 . . . . . .136.85
Tsy 1.250 32 . . . . . . .143.94
Tsy 4.250 36 . . . . . .140.37
Tsy 4.750 38 . . . . . .153.30
Tsy 0.625 40 . . . . . .144.56
Tsy 4.500 42 . . . . . . .153.16
Tsy 3.500 45 . . . . . . .132.31
Tsy 4.250 46 . . . . . .152.26
Tsy 4.025 49 . . . . . . .156.13
Tsy 4.000 99 . . . . .100.00
113.8
106.8
108.3
339.1
110.9
126.3
114.4
113.0
115.1
119.0
370.4
143.0
119.8
125.8
353.6
134.8
132.0
131.4
155.7
142.5
350.7
136.9
144.8
140.4
153.2
146.5
153.1
132.2
152.3
156.4
101.8
106.5
102.6
105.7
327.3
107.3
121.1
111.7
108.0
111.2
113.5
359.4
135.7
110.4
119.1
322.5
119.4
112.1
116.0
132.9
118.3
304.4
111.7
120.7
111.6
120.4
112.2
117.1
100.6
113.3
114.4
94.9
AEROSPACE & DEFENCE

BAE Systems . . . . . . . . .502.5
Cobham . . . . . . . . . . . .246.4
Meggitt . . . . . . . . . . . . .359.8
QinetiQ Group . . . . . . . .232.0
Rolls-Royce Holdi . . . . .543.5
Senior . . . . . . . . . . . . . .210.9
Ultra Electronics . . . . .1906.0
6.7
1.5
-2.3
-3.3
-0.5
-0.5
9.0
547.0
345.1
587.5
274.4
1054.0
358.5
2026.0
425.5
241.4
346.5
187.1
513.5
203.1
1635.0
AUTOMOBILES & PARTS

GKN . . . . . . . . . . . . . . . .281.6 -3.4 386.0 254.6
BANKS
Aldermore Group . . . . .207.0
Barclays . . . . . . . . . . . . .183.0
BGEO Group . . . . . . . . .1776.0
HSBC Holdings . . . . . . .474.5
Lloyds Banking Gr . . . . .64.7
Royal Bank of Sco . . . .260.9
Shawbrook Group . . . .300.0
Standard Chartere . . . . .477.3
Virgin Money Hold . . . . .314.1
-2.4
1.2
29.0
1.1
1.6
9.6
-5.7
-0.9
2.3
316.0
289.0
2257.0
649.3
89.0
403.9
382.0
1086.0
464.0
181.0
175.2
1616.0
462.5
61.9
248.8
300.0
459.6
275.1
11.5
-3.5
8.0
30.5
2.5
684.0 508.7
776.5 642.0
1629.0 1071.0
2022.5 1640.0
4202.5 2877.5
BEVERAGES
Barr (A.G.) . . . . . . . . . . .523.5
Britvic . . . . . . . . . . . . . .678.0
Coca-Cola HBC AG . . . .1387.0
Diageo . . . . . . . . . . . . .1872.0
SABMiller . . . . . . . . . . .4192.0
CHEMICALS
Croda
Internation
. . . .2873.0 -38.0 3137.0 2645.0
CONSTRUCTION
& MATERIALS
Elementis . . . . . . . . . . . .211.7 1.3 320.5 202.7

Johnson Matthey . . . .2457.0 18.0 3556.9 2308.8
Synthomer . . . . . . . . . .290.4 2.8 361.3 242.5
Victrex plc . . . . . . . . . .1523.0 20.0 2185.0 1476.0
CONSTRUCTION & MATERIALS

Balfour Beatty . . . . . . .243.9 -0.9 272.5 220.2
CRH . . . . . . . . . . . . . . .1836.0 -13.0 1980.0 1603.0
3248.36
15.77

Galliford Try . . . . . . . .1480.0
Ibstock . . . . . . . . . . . . . .207.6
Keller Group . . . . . . . . .801.0
Kier Group . . . . . . . . . .1212.0
Marshalls . . . . . . . . . . . .301.0
17.0
2.1
23.0
-13.0
-4.6
1813.0
225.0
1099.0
1513.0
370.8
1294.0
189.0
729.0
1170.0
238.0
ELECTRICITY
Drax Group . . . . . . . . . .235.0 8.2 429.9 207.6
SSE . . . . . . . . . . . . . . . .1407.0 22.0 1696.0 1345.0
ELECTRONIC & ELECTRICAL EQ.

Halma . . . . . . . . . . . . . .819.0
Morgan Advanced M . . .213.5
Renishaw . . . . . . . . . . .1772.0
Spectris . . . . . . . . . . . .1569.0
-1.5
6.7
30.0
15.0
882.5 678.5
356.8 196.8
2648.0 1600.0
2394.0 1511.0
EQUITY INVESTMENT INSTRUM.

Aberforth Smaller . . . .1074.0
Alliance Trust . . . . . . . .480.0
Bankers Inv Trust . . . . .569.0
BH Macro Ltd. GBP . . .2005.0
BlueCrest AllBlue . . . . . .191.0
British Empire Tr . . . . . .434.0
Caledonia Investm . . .2187.0
City of London In . . . . .367.0
Edinburgh Inv Tru . . . .685.0
Electra Private E . . . . .3429.0
Fidelity China Sp . . . . . .118.5
Fidelity European . . . . .163.6
Finsbury Growth & . . . .565.0
Foreign and Colon . . . . .416.2
GCP Infrastructur . . . . . .115.4
Genesis Emerging . . . .418.5
HarbourVest Globa . . .865.0
HICL Infrastructu . . . . . .150.4
International Pub . . . . .139.3
John Laing Infras . . . . . .116.5
JPMorgan American . . .255.7
JPMorgan Emerging . .506.0
Mercantile Invest . . . .1680.0
Monks Inv Trust . . . . . . .391.8
Murray Internatio . . . . .763.0
NB Global Floatin . . . . . .89.9
P2P Global Invest . . . . .953.0
P2P Global Invest . . . . .930.0
Perpetual Income . . . .388.3
Polar Capital Tec . . . . . .583.0
RIT Capital Partn . . . . .1608.0
Riverstone Energy . . . .745.0
Scottish Inv Trus . . . . . .569.0
Scottish Mortgage . . . .255.0
Temple Bar Inv Tr . . . . .985.0
Templeton Emergin . . .381.0
The Renewables In . . . . .98.8
TR Property Inv T . . . . .274.2
Witan Inv Trust . . . . . . .728.5
Woodford Patient . . . . .89.7
Worldwide Healthc . . .1764.0
8.0
-2.5
-3.5
0.0
-0.2
-2.5
16.0
1.4
2.0
9.0
-2.6
0.6
6.0
0.7
0.1
-1.3
3.5
-0.4
-0.4
-0.3
-1.8
-2.0
8.0
-2.2
5.0
0.3
-1.0
-10.0
0.5
-2.5
-6.0
17.0
0.0
-2.0
8.0
-4.4
-0.2
0.6
-2.5
-0.8
-2.0
1234.0 1009.0
528.5 440.1
668.0 559.0
2190.0 1986.0
197.2 185.6
555.0 423.0
2515.0 2115.0
415.9 349.0
728.0 649.0
3757.0 3000.0
177.3 112.0
186.7 156.1
609.0 533.0
465.0 399.4
123.9 112.8
572.0 400.5
1377.5 825.0
160.5 150.2
141.5 130.3
128.1 114.0
292.3 243.0
671.0 491.5
1838.0 1471.0
456.9 374.9
1059.0 742.5
98.7 89.2
1184.0 915.0
1033.0 910.0
428.5 372.0
641.0 517.0
1688.0 1436.0
1105.0 728.0
668.0 547.0
281.8 234.8
1230.0 942.5
604.5 371.5
108.8 96.3
324.0 263.1
847.0 688.5
119.3 87.6
2097.0 1635.0
-0.5
0.0
7.1
-6.6
-2.5
3.3
-0.1
9.0
-11.8
-6.0
6.0
-0.1
-3.6
0.0
569.5
178.3
507.5
725.0
288.0
333.9
359.6
289.0
367.5
1664.0
1525.0
312.0
566.5
807.0
FINANCIAL SERVICES
3i Group . . . . . . . . . . . . .435.1
3i Infrastructure . . . . . . .170.3
Aberdeen Asset Ma . . .232.8
Allied Minds . . . . . . . . .280.7
Arrow Global Grou . . . .210.5
Ashmore Group . . . . . .206.2
Brewin Dolphin Ho . . . .274.5
Charles Taylor . . . . . . . .244.0
City of London In . . . . .298.3
Close Brothers Gr . . . . .1257.0
Hargreaves Lansdo . . .1318.0
Henderson Group . . . . .269.9
ICAP . . . . . . . . . . . . . . .450.0
IG Group Holdings . . . . .715.5
CITYAM.COM
416.0
153.2
216.5
267.0
208.0
196.4
249.0
205.0
285.0
1240.0
966.0
233.2
422.6
690.0

Intermediate Capi . . . .566.5 2.5 627.0 475.2
International Per . . . . .247.0 1.7 504.5 232.0
Investec . . . . . . . . . . . .420.7 4.1 647.0 404.4
IP Group . . . . . . . . . . . . .176.0 -1.2 264.7 173.2
John Laing Group . . . . .201.6 -0.9 233.8 187.0
Jupiter Fund Mana . . . .406.1 2.3 475.1 378.3
Liontrust Asset M . . . . .265.0 0.0 374.8 252.0
LMS Capital . . . . . . . . . . .66.3 0.0 80.0 66.3
London Finance & . . . . .37.5 0.0 40.5 31.0
London Stock Exch . . .2425.0 -33.0 2780.0 2309.0
Man Group . . . . . . . . . . .155.8 0.3 217.6 139.8
OneSavings Bank . . . . .326.6 12.8 405.6 210.0
Paragon Group Of . . . . .313.3 4.9 455.5 292.2
Provident Financi . . . .2851.0 -66.0 3634.0 2584.0
PureTech Health . . . . . .146.3 -4.8 170.5 123.0
Rathbone Brothers . . .2262.0 19.0 2359.0 2028.0
Real Estate Credi . . . . . .158.9 0.1 183.0 158.6
Record . . . . . . . . . . . . . . .24.5 -0.5 39.8 22.1
S&U . . . . . . . . . . . . . . .2164.5 -23.0 2560.0 2000.0
Sanne Group . . . . . . . . .370.0 -4.8 385.0 251.0
Schroders . . . . . . . . . .2650.0 9.0 3423.0 2511.0
SVG Capital . . . . . . . . . .468.0 -0.7 522.0 432.5
Tullett Prebon . . . . . . . .310.6 -2.7 414.8 304.8
VPC Specialty Len . . . . . .92.9 -0.8 104.0 90.8
Walker Crips Grou . . . . .42.0 0.0 53.8 41.3
FIXED LINE TELECOMS
190.0
1355.0
208.2
470.8
284.7
325.0
251.0
598.5
-6.0
-7.0
0.0
9.5
-5.0
5.0
3599.0 2712.0
1957.0 1310.0
697.0 439.7
364.9 273.2
679.0 502.0
3015.0 2524.0
FOOD PRODUCERS
Associated Britis . . . . .3015.0
Cranswick . . . . . . . . . .1948.0
Dairy Crest Group . . . . .603.5
Greencore Group . . . . .362.0
Tate & Lyle . . . . . . . . . .590.5
Unilever . . . . . . . . . . . .2955.5
AIR LIQUIDE......................................................95.72
AIRBUS GROUP .................................................57.42
ALLIANZ N........................................................147.10
ANHEUS.-BUSCH INBEV...................................112.95
ASML HLDG ......................................................83.00
AXA ..................................................................22.45
BANCO SANTANDER ...........................................3.99
BASF N.............................................................62.08
BAYER N..........................................................105.35
BBVA...................................................................5.91
BMW ................................................................79.40
BNP PARIBAS-A-..............................................44.05
CARREFOUR .....................................................25.00
DAIMLER N.......................................................65.09
DANONE...........................................................60.39
DEUTSCHE BANK N.............................................17.12
DEUTSCHE POST N............................................22.60
DEUTSCHE TELEKOM N ......................................15.84
E.ON N................................................................9.37
ENEL ...................................................................3.76
ENGIE ...............................................................14.38
ENI ....................................................................13.08
ESSILOR INTL....................................................112.45
FRESENIUS.......................................................60.64
GENERALI...........................................................14.15
IBERDROLA ........................................................6.36
INDITEX ............................................................29.43
ING GROUP .......................................................10.67
INTESA SANPAOLO..............................................2.67
L'OREAL...........................................................152.55
LVMH..............................................................144.90
MUENCH RUECKVERS N...................................173.45
NOKIA.................................................................6.72
ORANGE............................................................15.86
ROY.PHILIPS.......................................................24.11
SAFRAN............................................................58.94
SAINT GOBAIN..................................................36.92
SANOFI .............................................................76.88
SAP...................................................................72.49
SCHNEIDER ELECTRIC........................................48.53
SIEMENS N.......................................................90.60
SOCIETE GENERALE...........................................35.75
TELEFONICA........................................................9.49
TOTAL ...............................................................39.65
UNIBAIL-RODAMCO ........................................229.70
UNICREDIT..........................................................3.89
UNILEVER CERT.................................................39.76
VINCI ................................................................61.37
VIVENDI.............................................................19.75
VOLKSWAGEN VZ.............................................112.30

0.13
0.10
-0.60
0.40
-0.36
-0.01
0.14
0.40
-0.45
0.14
0.48
0.87
-0.01
-0.01
0.21
0.51
-0.64
-0.09
0.37
0.05
0.21
0.27
-0.35
-0.32
-0.46
0.04
0.14
0.03
0.04
0.45
1.00
0.05
0.08
0.06
1.39
-0.32
0.32
0.49
-0.19
1.44
7.19
0.84
0.08
1.13
-0.65
0.15
0.11
-0.26
0.13
1.55
123.95
68.50
170.15
124.20
104.85
26.02
6.95
97.22
146.45
9.67
123.75
61.00
32.49
96.07
66.50
33.42
31.19
17.57
14.46
4.50
20.08
17.66
125.15
70.00
19.21
6.57
35.38
16.00
3.65
181.30
176.60
206.50
7.89
16.98
28.00
72.45
44.84
101.10
75.75
75.29
106.35
48.77
13.91
47.38
262.00
6.61
42.84
62.60
24.83
262.45
90.77
46.56
131.05
87.73
70.25
20.12
3.70
59.00
98.64
5.55
72.05
42.14
23.17
62.06
51.73
16.03
22.21
13.39
7.08
3.49
13.61
12.01
93.87
46.20
13.88
5.47
25.46
10.23
2.47
140.40
130.75
156.00
5.07
12.21
20.48
54.00
34.98
70.94
53.91
45.57
77.91
33.69
8.74
35.25
212.30
3.61
32.86
46.39
18.10
86.36
/ 1.3205
0.0077 /$ 1.0824
0.0026
16167.23
282.01
4567.67
49.18
1903.63
26.55
/$ 1.4348
0.0105 / 0.7577
0.0040
/ 169.99
1.4111
/ 128.72
0.3057
AL Noor Hospitals . . . .1156.0

Assura . . . . . . . . . . . . . . .53.6
NMC Health . . . . . . . . . .844.5
Smith & Nephew . . . . .1142.0
Spire Healthcare . . . . . .314.4
1.0
1.0
47.5
11.0
0.3
296.4
956.0
915.0
2280.0
1042.0
201.9
817.2
713.0
1947.0
828.0
-2.0
-4.5
-8.2
3.0
-1.3
611.0
787.3
421.0
1219.0
520.0
425.0
499.6
305.6
863.5
287.1
4.3
-1.3
-10.6
1.4
3.6
0.0
-0.2
431.8
330.0
449.6
358.5
451.3
399.0
96.0
260.2
119.7
262.0
247.7
281.0
256.3
64.9
GENERAL INDUSTRIALS
Rexam . . . . . . . . . . . . .606.0
RPC Group . . . . . . . . . . .745.0
Smith (DS) . . . . . . . . . .362.6
Smiths Group . . . . . . . .894.5
Vesuvius . . . . . . . . . . . .293.7
GENERAL RETAILERS
AA . . . . . . . . . . . . . . . . .287.5
AO World . . . . . . . . . . . .150.6
Auto Trader Group . . . .383.0
B&M European Valu . . .274.8
Brown (N.) Group . . . . .302.4
Card Factory . . . . . . . . .348.7
Debenhams . . . . . . . . . . .77.3
3.0
-0.5
-1.6
-0.4
-4.0
-0.8
0.0
3.5
-2.0
1.4
1708.0
670.0
398.9
414.3
271.3
180.0
1059.0
1093.0
759.0
526.5
1385.0
446.3
275.0
311.7
210.4
155.0
769.4
793.0
579.5
388.1
1.3
0.0
0.7
1.5
-0.5
18.5
3.5
-0.5
571.5
199.5
294.4
240.3
922.0
1752.0
1023.0
499.9
428.4
133.1
228.5
149.4
804.0
1262.0
829.5
349.6
LIFE INSURANCE
Aviva . . . . . . . . . . . . . . .465.3
Just Retirement G . . . . .149.0
Legal & General G . . . . .235.4
Old Mutual . . . . . . . . . . .156.2
Phoenix Group Hol . . . .849.5
Prudential . . . . . . . . . .1319.0
St James's Place . . . . . .912.5
Standard Life . . . . . . . . .357.9

MINING
Acacia Mining . . . . . . . .189.0 12.0
Anglo American . . . . . .253.4 26.8
Antofagasta . . . . . . . . .378.0 14.8
BHP Billiton . . . . . . . . . .665.5 25.7
Centamin (DI) . . . . . . . . .66.4 1.9
Fresnillo . . . . . . . . . . . .694.5 36.5
Glencore . . . . . . . . . . . . . .87.1 6.3
Polymetal Interna . . . .548.0 12.5
Randgold Resource . .4820.0 224.0
Rio Tinto . . . . . . . . . . .1688.5 79.5
Vedanta Resources . . . .207.0 -1.3
311.2 156.6
1259.0 215.6
807.5 346.1
1643.5 580.9
70.1 51.6
910.0 588.0
314.9 68.6
614.0 427.1
5685.0 3625.0
3237.5 1570.5
675.0 198.4
MOBILE TELECOMS
Inmarsat . . . . . . . . . . .1065.0 -5.0 1148.0 834.0
Vodafone Group . . . . . .218.7 0.2 255.4 203.8
OIL & GAS PRODUCERS

BG Group . . . . . . . . . . .994.9
BP . . . . . . . . . . . . . . . . .356.5
Cairn Energy . . . . . . . . .136.7
Nostrum Oil & Gas . . . .288.2
Ophir Energy . . . . . . . . .89.3
Royal Dutch Shell . . . .1422.5
Royal Dutch Shell . . . .1420.5
Tullow Oil . . . . . . . . . . . .155.9
13.2
6.4
2.7
-7.8
1.3
24.0
18.5
15.6
1199.5
484.2
208.3
627.0
170.9
2211.5
2304.0
429.8
812.6
322.9
127.2
285.9
76.4
1266.0
1277.5
118.2
Amec Foster Wheel . . .381.0 -0.2 995.0 345.9

Petrofac Ltd. . . . . . . . . .750.5 31.5 1065.0 663.0
Wood Group (John) . . .618.0 26.0 733.5 534.5
11.8
11.1
7.7
6.8
6.8
6.0
5.6
5.6
5.5
5.4
PZ Cussons . . . . . . . . . . . . . . . . .249.3
Ocado Group . . . . . . . . . . . . . . .262.3
easyJet . . . . . . . . . . . . . . . . . . .1579.0
Shire Plc . . . . . . . . . . . . . . . . . .4123.0
CLS Holdings . . . . . . . . . . . . . . .1560.0
Zoopla Property Gr . . . . . . . . . .209.2
Auto Trader Group . . . . . . . . . . .383.0
Mondi . . . . . . . . . . . . . . . . . . . .1160.0
Nostrum Oil & Gas . . . . . . . . . . .288.2
Genus . . . . . . . . . . . . . . . . . . . . .1397.0

-8.9
-3.4
-3.2
-2.9
-2.8
-2.7
-2.7
-2.7
-2.6
-2.5

MEDIA
662.5 452.5
2848.0 1760.0
3757.0 2376.0
1201.0 811.0
591.0 372.3
2135.0 1555.0
6418.0 5488.0
499.2 277.3
205.0 133.4
INDUSTRIAL ENGINEERING
Bodycote . . . . . . . . . . .546.5
IMI . . . . . . . . . . . . . . . . .786.0
Melrose Industrie . . . . .281.0
Rotork . . . . . . . . . . . . . . .169.1
Spirax-Sarco Engi . . .2966.0
Weir Group . . . . . . . . . .854.5
PERSONAL GOODS

Anglo American . . . . . . . . . . . . .253.4

Tullow Oil . . . . . . . . . . . . . . . . . . .155.9
Glencore . . . . . . . . . . . . . . . . . . . . .87.1
TalkTalk Telecom G . . . . . . . . . . .203.0
Acacia Mining . . . . . . . . . . . . . . .189.0
NMC Health . . . . . . . . . . . . . . . .844.5
Crest Nicholson Ho . . . . . . . . . . .541.0
Fresnillo . . . . . . . . . . . . . . . . . . .694.5
Marston's . . . . . . . . . . . . . . . . . . .159.0
NCC Group . . . . . . . . . . . . . . . . . .324.1
HHOLD GDS & HOME CONSTR.
0.5
1.7
4.5
-3.0
0.5
Admiral Group . . . . . . .1697.0

Amlin . . . . . . . . . . . . . .669.5
Beazley . . . . . . . . . . . . .368.1
Direct Line Insur . . . . . .369.4
esure Group . . . . . . . . . .237.3
Hastings Group Ho . . . .166.0
Hiscox Limited (D . . . . .961.0
Jardine Lloyd Tho . . . . .818.5
Lancashire Holdin . . . . .611.0
RSA Insurance Gro . . . .402.4
MAIN CHANGES UK 350
Barratt Developme . . .580.0 1.5

Bellway . . . . . . . . . . . .2666.0 33.0
Berkeley Group Ho . . .3538.0 -9.0
Bovis Homes Group . . .899.5 -5.0
Crest Nicholson H . . . . .541.0 28.5
Persimmon . . . . . . . . .1954.0 6.0
Reckitt Benckiser . . . . .6112.0 -32.0
Redrow . . . . . . . . . . . . .430.5 3.6
Taylor Wimpey . . . . . . .184.3 0.6
Centrica . . . . . . . . . . . . .206.7
National Grid . . . . . . . .948.0
Pennon Group . . . . . . .882.5
Severn Trent . . . . . . . .2126.0
United Utilities . . . . . . .924.0
NON LIFE INSURANCE

FORESTRY & PAPER

GAS, WATER & MULTIUTILITIES
1191.0 814.0
61.8 49.2
934.5 479.0
1212.0 1060.0
401.6 279.9

Clarkson . . . . . . . . . . .2038.0 13.0 2797.0 1866.0
Royal Mail . . . . . . . . . . .453.3 5.0 527.0 420.3
OIL EQUIPMENT & SERVICES
Mondi . . . . . . . . . . . . . .1160.0 -32.0 1611.0 1139.0
EU SHARES

142.4
821.0
139.0
242.5
223.7
273.0
139.2
387.5
S&P 500
HEALTH CARE EQUIPMETN & S.
FOOD & DRUG RETAILERS

1.4
4.5
2.6
-9.2
-0.6
-0.3
4.7
-4.5
NASDAQ

DFS Furniture . . . . . . . . .315.0 -7.1 349.0 255.0
Dignity . . . . . . . . . . . .2278.0 21.0 2621.0 1824.0
Dixons Carphone . . . . .456.5 -10.6 500.0 407.0
Dunelm Group . . . . . . . .851.5 -5.0 1004.0 820.0
Halfords Group . . . . . . .370.0 2.2 561.0 315.0
Home Retail Group . . . .148.8 -0.6 208.0 89.7
Inchcape . . . . . . . . . . . .733.0 -7.0 894.0 693.5
JD Sports Fashion . . . .1135.0 0.0 1139.0 470.5
Just Eat . . . . . . . . . . . . .420.5 -3.4 494.9 331.4
Kingsher . . . . . . . . . . .317.4 -6.5 383.0 312.1
Lookers . . . . . . . . . . . . .159.0 -2.0 185.0 143.5
Marks & Spencer G . . . .420.7 2.9 596.5 408.8
Next . . . . . . . . . . . . . . .6810.0 10.0 8015.0 6525.0
Pendragon . . . . . . . . . . .40.6 -0.7 49.0 34.5
Pets at Home Grou . . . .258.1 -4.7 311.2 213.5
Poundland Group . . . . .144.0 -1.4 418.9 141.7
Saga . . . . . . . . . . . . . . . .194.7 -0.8 221.5 167.0
Sports Direct Int . . . . . . .417.5 -1.5 817.5 390.0
Ted Baker . . . . . . . . . .2765.0 -34.0 3555.0 2306.0
WH Smith . . . . . . . . . .1792.0 -25.0 1817.0 1272.0
BT Group . . . . . . . . . . . .468.3 -2.7 499.8 404.0

Cable & Wireless . . . . . .67.9 1.4 78.2 49.6
TalkTalk Telecom . . . . .203.0 13.0 408.8 185.4
Telecom Plus . . . . . . . . .967.5 -1.0 1214.0 752.5
Booker Group . . . . . . . . .157.4
Greggs . . . . . . . . . . . . .995.0
Morrison (Wm) Sup . . .162.6
Ocado Group . . . . . . . . .262.3
Sainsbury (J) . . . . . . . . .231.0
SSP Group . . . . . . . . . . .289.2
Tesco . . . . . . . . . . . . . . .160.4
UDG Healthcare Pu . . . .534.5
DOW JONES
7.0
21.0
2.8
3.3
-16.0
11.0
786.0 494.0
1445.0 748.0
307.3 242.7
265.1 155.1
3569.4 2750.0
2024.0 789.5
INDUSTRIAL METALS & MINING

Evraz . . . . . . . . . . . . . . . .64.9 2.5 207.4 58.6
INDUSTRIAL TRANSPORTATION
BBA Aviation . . . . . . . . .163.5 2.4
255.1 150.2
4Imprint Group . . . . . .1186.0 -14.0

Bloomsbury Publis . . . .146.1 -0.6
Centaur Media . . . . . . . .62.0 -2.3
Creston . . . . . . . . . . . . . .122.5 0.0
Entertainment One . . . .155.2 -3.8
Euromoney Institu . . . .895.0 -15.0
Future . . . . . . . . . . . . . . . .9.7 -0.1
Haynes Publishing . . . .107.5 0.0
Huntsworth . . . . . . . . . .36.0 1.0
Informa . . . . . . . . . . . . .615.0 3.5
ITE Group . . . . . . . . . . . .140.5 -3.8
ITV . . . . . . . . . . . . . . . . .260.0 -2.9
Johnston Press . . . . . . . .38.4 -0.4
Moneysupermarket. . . .331.1 1.1
Pearson . . . . . . . . . . . . .769.5 13.0
Relx plc . . . . . . . . . . . . .1173.0 -16.0
Rightmove . . . . . . . . . .3831.0 -58.0
Sky . . . . . . . . . . . . . . .1046.0 -4.0
STV Group . . . . . . . . . . .455.0 -20.0
Trinity Mirror . . . . . . . . .162.3 1.8
UBM . . . . . . . . . . . . . . . .514.0 -2.5
UTV Media . . . . . . . . . . .172.5 -5.5
WPP . . . . . . . . . . . . . . .1463.0 0.0
Zoopla Property G . . . .209.2 -5.8
1349.0
184.5
85.5
162.0
326.3
1261.0
11.5
130.5
49.3
630.5
196.8
280.7
172.8
377.1
1508.0
1220.0
4173.0
1141.0
515.0
206.0
576.0
204.0
1611.0
278.0
856.0
144.3
59.0
114.6
140.9
885.5
9.1
106.5
35.0
508.5
128.0
220.0
35.6
243.4
657.5
1011.0
2325.0
919.0
340.0
128.0
469.6
139.0
1304.0
165.5
Burberry Group . . . . . .1211.0

Jimmy Choo . . . . . . . . . .121.3
PZ Cussons . . . . . . . . . .249.3
Supergroup . . . . . . . . .1522.0
33.0 1921.0 1078.0

-1.7 181.4 106.0
-24.3 373.4 240.7
-18.0 1714.0 860.0
PHARMACEUTICALS & BIOTECH

AstraZeneca . . . . . . . .4415.5 -25.0
BTG . . . . . . . . . . . . . . . .604.0 -0.5
Circassia Pharmac . . . . .301.7 -2.6
Dechra Pharmaceut . .1005.0 -25.0
Genus . . . . . . . . . . . . . .1397.0 -36.0
GlaxoSmithKline . . . . .1415.5 15.5
Hikma Pharmaceuti .2000.0 4.0
Indivior . . . . . . . . . . . . .155.4 0.2
Shire Plc . . . . . . . . . . . .4123.0-124.0
Vectura Group . . . . . . . .163.9 -3.6
4863.0 3903.5
808.5 520.5
353.5 246.0
1110.0 846.0
1620.0 1224.0
1642.0 1237.5
2574.0 1886.0
266.4 150.3
5730.0 3925.0
188.5 141.0
REAL ESTATE INVEST. & SERV.
47.00
0.75
-10.00
-22.00
10.00
0.25
0.49
-4.40
BoE IR Overnight.........................................0.500
BoE IR 7 days..............................................0.500
BoE IR 1 month...........................................0.500
BoE IR 3 months.........................................0.500
BoE IR 6 months ........................................0.500
LIBOR Euro - overnight...............................-0.281
LIBOR Euro - 12 months ..............................0.020
LIBOR USD - overnight ................................0.366
LIBOR USD - 12 months .................................1.153
Halifax mortgage rate ................................3.990
473.4
2010.0
599.0
6595.0
148.7
254.0
1220.0
986.5
493.6
93.5
702.5
356.6
1520.0
331.9
5335.0
129.5
190.8
1039.0
707.0
365.0
79.6
489.9
REAL ESTATE INVEST. TRUSTS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-3.5
-2.0
-17.0
-10.0
-1.5
0.3
-5.0
-6.0
-0.3
-0.5
1.1
847.0 605.0
886.0 696.5
3880.0 3127.0
889.5 736.5
705.5 550.0
128.2 108.0
376.4 283.1
1363.0 1060.0
171.5 153.0
59.7 45.8
463.8 405.5
British American . . . .3683.0 26.0 3898.5 3355.5

Imperial Tobacco . . . .3589.5 3.5 3621.0 2963.0
TRAVEL & LEISURE

Betfair Group . . . . . . . .4151.0 113.0
Bwin.party Digita . . . . .125.3 -1.6
Carnival . . . . . . . . . . . .3568.0 -32.0
Cineworld Group . . . . . .481.7 -8.3
Compass Group . . . . . .1126.0 4.0
Domino's Pizza Gr . . . .945.0 -6.5
easyJet . . . . . . . . . . . . .1579.0 -52.0
Enterprise Inns . . . . . . . .91.2 -0.3
FirstGroup . . . . . . . . . . .101.9 0.6
Go-Ahead Group . . . .2504.0 24.0
Greene King . . . . . . . . .859.5 22.5
InterContinental . . . . .2277.0 -7.0
International Con . . . . .561.0 -1.0
Ladbrokes . . . . . . . . . . .122.7 4.8
Marston's . . . . . . . . . . . .159.0 8.3
Merlin Entertainm . . . .407.8 -5.2
Millennium & Copt . . . .393.0 3.3
Mitchells & Butle . . . . .288.0 7.8
National Express . . . . .299.8 -1.8

S&P 500 . . . . . . . . . . . . . . . . . . . . . 1903.63 26.55 1.41

Dow Jones I.A.. . . . . . . . . . . . . . . . 16167.23 282.01 1.78
Nasdaq Composite . . . . . . . . . . . . 4567.67 49.18 1.09
Xetra DAX. . . . . . . . . . . . . . . . . . . . 9822.75 86.60 0.89

CAC 40. . . . . . . . . . . . . . . . . . . . . . . 4356.81
Swiss Market Index . . . . . . . . . . . . 8314.47
ISEQ Overall Index . . . . . . . . . . . . . 6377.23
FTSEurorst 300 . . . . . . . . . . . . . . . 1335.90
45.48
61.13
50.17
13.29
1.05
0.74
0.79
1.00
4178.0 1569.0
131.7 78.4
3907.0 2872.0
597.0 421.2
1219.0 991.0
1095.0 660.5
1915.0 1544.0
136.0 90.0
127.7 91.0
2713.0 2330.0
977.5 772.0
2880.0 2209.0
617.0 484.2
140.0 93.4
176.0 144.2
470.7 365.9
600.5 385.0
475.3 262.9
334.4 255.5

Rank Group . . . . . . . . . .275.2 -3.6 295.5 165.0
Restaurant Group . . . . .521.5 -4.5 738.5 495.7
Stagecoach Group . . . .275.3 -1.6 419.6 261.2
Thomas Cook Group . . .108.7 1.0 161.3 98.4
TUI AG Reg Shs (D . . . .1208.0 -9.0 1271.0 1007.0
Wetherspoon (J.D. . . . .650.5 15.5 819.5 609.0
Whitbread . . . . . . . . . .3891.0 -38.0 5440.0 3874.0
William Hill . . . . . . . . . .377.8 0.3 425.3 314.8
Wizz Air Holdings . . . .1861.0 -11.0 2047.0 1340.0
AIM 50
Abcam . . . . . . . . . . . . .642.5 0.0
Advanced Medical . . . .173.0 3.0
Alternative Netwo . . . .459.5 -3.5
Amerisur Resource . . . . .20.5 0.5
Arbuthnot Banking . .1445.0 0.5
ASOS . . . . . . . . . . . . . .3139.0 -8.0
Avanti Communicat . . .107.5 -11.8
Brooks Macdonald . . .1775.0 -8.0
Camellia . . . . . . . . . . .9025.0 -49.0
Clinigen Group . . . . . . .635.5 5.5
Conviviality . . . . . . . . . .207.0 3.0
CVS Group . . . . . . . . . . .813.0 36.5
Dart Group . . . . . . . . . .560.0 -9.5
Earthport . . . . . . . . . . . .28.3 0.0
EMIS Group . . . . . . . . . .980.0 -0.5
Fevertree Drinks . . . . . .658.0 18.0
First Derivatives . . . . .1525.0 -15.0
Gamma Communicati .413.0 -1.8
GB Group . . . . . . . . . . .240.0 -7.0
Gemelds . . . . . . . . . . . .46.5 -1.5
Gooch & Housego . . . . .875.5 2.8
GW Pharmaceutical . . .316.8 -14.0
Iomart Group . . . . . . . .225.0 4.5
James Halstead . . . . . .426.3 10.6
Johnson Service G . . . . .86.3 -0.3
M&C Saatchi . . . . . . . . .308.3 -0.8
M. P. Evans Group . . . . .382.4 -0.1
Majestic Wine . . . . . . . .350.0 2.0
Mulberry Group . . . . . .963.0 -11.5
Nichols . . . . . . . . . . . . .1183.0 -18.0
Numis Corporation . . . .227.0 6.3
Patisserie Holdin . . . . .386.5 5.5
Pinewood Group . . . . .426.0 1.0
Polar Capital Hol . . . . .400.3 7.3
Quadrise Fuels In . . . . . . .11.4 0.0
Redcentric . . . . . . . . . . .183.3 -0.8
Redde . . . . . . . . . . . . . .182.0 3.0
Renew Holdings . . . . . .384.5 -0.8
RWS Holdings . . . . . . . .194.3 1.3
Scapa Group . . . . . . . . .194.3 2.0
Secure Trust Bank . . . .3100.0 0.0
Sirius Minerals . . . . . . . . .14.0 0.5
Smart Metering Sy . . . .370.5 8.3
Staffline Group . . . . . .1295.0 -5.0
Telford Homes . . . . . . . .361.8 5.0
Telit Communicati . . . .206.0 4.0
Thorpe (F.W.) . . . . . . . .209.8 -0.3
Vernalis plc . . . . . . . . . . .56.0 -1.0
Vertu Motors . . . . . . . . . .70.0 -0.3
Watchstone Group . . . .250.0 0.0
Young & Co's Brew . . .1092.0 -13.5
667.0 424.8
184.5 127.3
541.0 405.0
38.8 17.3
1625.0 1335.0
4194.0 2473.0
264.0 105.5
2040.0 1320.0
9880.0 8851.5
761.0 491.0
223.5 131.5
840.0 455.0
588.5 275.5
47.0 24.8
1155.0 832.5
666.0 195.0
1578.0 1094.0
463.0 253.5
283.8 155.0
68.3 35.5
929.0 657.0
696.0 299.0
307.5 169.3
520.0 317.0
92.8 68.3
395.0 290.0
438.5 345.5
471.3 296.0
999.0 845.0
1492.0 1055.0
276.3 202.0
450.0 260.0
487.5 415.0
479.5 350.3
21.0 9.2
197.5 136.5
210.3 93.8
405.0 240.5
225.5 119.5
220.8 130.5
3385.0 2740.0
24.0 7.0
383.5 305.5
1623.0 730.0
492.0 347.8
356.0 180.0
244.5 135.0
86.5 44.9
78.5 54.0
326.0 67.0
1310.0 970.0

US SHARES
Euro Base Rate............................................0.050

Finance house base rate .............................1.000
US Fed funds..................................................0.37
US long bond yield........................................2.79
Euro Euribor...............................................-0.262
The vix index...............................................22.50
The baltic dry index..................................354.00
Markit iBoxx EUR .......................................222.78
Markit iBoxx GBP........................................292.61
Markit iTraxx................................................93.89
0.00
0.00
-0.01
-0.01
0.00
-1.65
0.00
0.47
0.02
1.51
WORLD INDICES

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5911.46 34.46 0.59

FTSE 250 . . . . . . . . . . . . . . . . . . . . 16179.02 32.04 0.20
FTSE All-Share . . . . . . . . . . . . . . . . 3248.36 15.77 0.49
FTSE AIM All-Share . . . . . . . . . . . . . 683.72 -5.09 -0.74
1719.0 770.0
1217.0 883.0
1656.0 1238.0
1145.0 878.0
1157.0 969.0
1950.0 1671.0
1326.0 1093.0
370.4 265.2
5995.0 3528.0
865.5 608.0
251.9 172.5
1064.0 722.5
1255.0 1022.0
308.8 210.0
858.5 619.5
172.8 113.4
444.6 326.0
531.0 411.2
663.0 448.5
2873.0 2268.0
560.5 379.4
335.6 269.6
656.0 334.6
1091.0 799.5
354.6 200.2
161.9 120.7
184.4 79.8
211.2 119.0
2260.0 1759.9
4384.0 3272.0
316.8 276.0
TECHNOLOGY HARDW. & EQUIP.
CREDIT & RATES
Copper Cash Official .................................4500.50

Aluminium Cash Official............................1480.25
Nickel Cash Official....................................8542.50
Aluminium Alloy Cash Official...................1507.50
Cocoa Futures............................................2829.00
Coffee 'C' Futures..........................................116.65
Feed Wheat Futures .....................................112.85
Soybeans Futures Continuation Contract...876.00
1307.0
640.0
1758.0
1052.0
195.3
663.5
461.9
224.6
ARM Holdings . . . . . . .1015.0 5.0 1205.0 848.5

Laird . . . . . . . . . . . . . . .334.0 -4.5 409.5 313.5
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7.00
0.11
0.81
9.90
-10.00
17.00
190.00
10.25
37.25
2319.0
879.0
2478.0
1610.0
324.4
924.0
614.0
289.7
SUPPORT SERVICES
Aggreko . . . . . . . . . . . . .817.5 21.5
Ashtead Group . . . . . . .964.0 -6.0
Atkins (WS) . . . . . . . . .1436.0 -10.0
Babcock Internati . . . . .920.5 0.5
Berendsen . . . . . . . . .1069.0 1.0
Bunzl . . . . . . . . . . . . . .1800.0 -3.0
Capita . . . . . . . . . . . . . .1167.0 2.0
Carillion . . . . . . . . . . . . .275.1 3.0
DCC . . . . . . . . . . . . . . . .5135.0 50.0
Diploma . . . . . . . . . . . .670.5 -10.0
Electrocomponents . . . .217.8 2.8
Essentra . . . . . . . . . . . .726.0 -14.5
Experian . . . . . . . . . . . .1153.0 -6.0
G4S . . . . . . . . . . . . . . . . .217.4 -0.6
Grafton Group Uni . . . . .671.5 0.5
Hays . . . . . . . . . . . . . . . .124.8 0.5
Homeserve . . . . . . . . . .390.4 2.4
Howden Joinery Gr . . . .487.4 -0.5
Interserve . . . . . . . . . . .459.5 8.5
Intertek Group . . . . . .2752.0 -28.0
Michael Page Inte . . . . .397.6 1.6
Mitie Group . . . . . . . . . .274.8 -2.0
Northgate . . . . . . . . . . .338.0 -1.4
PayPoint . . . . . . . . . . . .829.0 3.0
Regus . . . . . . . . . . . . . .291.9 -1.7
Rentokil Initial . . . . . . . .154.7 0.7
Serco Group . . . . . . . . . .82.5 0.1
SIG . . . . . . . . . . . . . . . . .137.0 3.6
Travis Perkins . . . . . . . .1791.0 2.0
Wolseley . . . . . . . . . . .3411.0 -15.0
Worldpay Group (W . . .302.7 -2.1
CITY A.M. MORNING UPDATE
COMMODITIES

971.0 778.0
132.0 109.8
987.0 787.0
SOFTWARE & COMPUTER SERV.

Aveva Group . . . . . . . .1346.0 -10.0
Computacenter . . . . . . .822.5 -5.5
Fidessa Group . . . . . . .1892.0 -35.0
Micro Focus Inter . . . . .1414.0 -14.0
NCC Group . . . . . . . . . . .324.1 16.7
Playtech . . . . . . . . . . . .749.5 -0.5
Sage Group . . . . . . . . . .567.5 -0.5
Sophos Group . . . . . . . .240.8 0.2
Rise | Shine
Gold.............................................................1113.60
Silver ..............................................................14.33
Brent Crude....................................................31.69
Krugerrand.................................................1120.20
Palladium ...................................................494.00
Platinum......................................................841.00
Tin Cash Official ........................................13937.50
Lead Cash Official.......................................1638.50
Zinc Cash Official.........................................1551.50
-7.5
0.1
-12.0
TOBACCO
Capital & Countie . . . . .360.3 -1.5

CLS Holdings . . . . . . . .1560.0 -45.0
Countrywide . . . . . . . . .362.0 2.0
Daejan Holdings . . . .6040.0 45.0
F&C Commercial Pr . . . .132.0 -0.3
Grainger . . . . . . . . . . . .224.8 2.2
Kennedy Wilson Eu . . .1119.0 -8.0
Savills . . . . . . . . . . . . . .784.5 -1.0
St. Modwen Proper . . . .383.5 0.5
UK Commercial Pro . . . .82.8 0.9
Unite Group . . . . . . . . .636.0 4.5
Big Yellow Group . . . . .730.5
British Land Comp . . . .733.0
Derwent London . . . .3228.0
Great Portland Es . . . . .745.5
Hammerson . . . . . . . . .571.5
Hansteen Holdings . . . . .111.7
Intu Properties . . . . . . .289.3
Land Securities G . . . .1088.0
LondonMetric Prop . . . .159.6
Redene Internat . . . . . .46.5
SEGRO . . . . . . . . . . . . . .426.2

Shaftesbury . . . . . . . . . .837.5
Tritax Big Box Re . . . . . .131.6
Workspace Group . . . .806.0

Hang Seng. . . . . . . . . . . . . . . . . . 18860.80
Shanghai Composite . . . . . . . . . . . 2749.79
Straits Times. . . . . . . . . . . . . . . . . . 2545.61
Sao Paulo Bovespa. . . . . . . . . . . . 37497.48
-479.34
-188.73
-37.03
-533.74
-2.48
-6.42
-1.43
-1.40

3M...................................................................144.78
ALLERGAN.....................................................294.60
ALPHABET-A...................................................733.79
ALPHABET-C...................................................713.04
ALTRIA GROUP.................................................58.96
AMAZON.COM .................................................601.25
AMERICAN EXPRESS ........................................55.09
AMGEN............................................................153.78
APPLE..............................................................99.99
AT&T.................................................................35.40
BANK OF AMERICA ............................................13.31
BERKSHIRE HATHAWY-B ................................125.89
BOEING CO.......................................................128.01
BRISTOL-MYERSSQUIBB...................................62.69
CATERPILLAR ....................................................59.16
CHEVRON..........................................................84.12
CISCO SYSTEMS.................................................23.72
CITIGROUP ......................................................40.50
COCA-COLA CO.................................................42.08
COMCAST-A......................................................54.84
CVS HEALTH.....................................................94.04
DU PONT NEMOURS&CO...................................53.46
EXXON MOBIL...................................................76.70
FACEBOOK-A ....................................................97.34
GENERAL ELECTRIC............................................28.31
GILEAD SCIENCES..............................................92.21
GOLDMAN SACHS GROUP ...............................154.45
HOME DEPOT ..................................................122.20
IBM .................................................................122.59
INTEL................................................................29.94
JOHNSON & JOHNSON......................................101.18
JPMORGAN CHASE ...........................................57.08
MCDONALD'S ..................................................120.43
MEDTRONIC......................................................75.59
MERCK ..............................................................51.45
MICROSOFT........................................................52.17
NIKE -B-.............................................................61.11
ORACLE.............................................................35.23
PEPSICO...........................................................96.32
PFIZER..............................................................30.67
PHILIP MRRS INT ...............................................87.31
PROCTER&GAMBLE...........................................78.81
TRAVLR COMP.................................................103.25
TWITTER ............................................................17.01
UNITEDHEALTH GROUP ...................................113.96
UTD TECHNOLOGIES .........................................85.65
VERIZON COMM ...............................................48.25
VISA-A..............................................................71.88
WAL-MART STORES.........................................64.00
WALT DISNEY-DISNEY......................................96.27
WELLS FARGO..................................................48.26
7.21
-1.35
0.17
1.37
0.56
4.72
0.07
0.35
0.55
0.40
0.35
1.76
4.00
-0.23
1.25
3.23
0.55
0.95
-0.08
0.63
-0.03
0.47
2.72
0.33
0.27
1.60
3.33
0.49
0.51
0.34
4.78
1.42
1.23
-0.11
0.53
0.38
0.41
0.89
0.38
0.17
0.63
1.96
1.17
-0.01
0.58
0.75
1.22
0.14
0.55
0.98
0.60
170.50
340.34
798.69
779.98
61.74
696.44
86.18
181.81
134.54
36.45
18.48
151.63
158.83
70.87
89.62
112.93
30.31
60.95
43.91
64.99
113.65
76.49
93.45
110.65
31.49
123.37
218.77
135.47
176.30
36.30
105.49
70.61
121.90
79.50
63.02
56.85
68.20
45.24
103.44
36.46
90.27
87.21
116.48
53.49
126.21
124.45
50.86
81.01
88.46
122.08
58.77
134.00
237.50
503.48
499.83
47.31
299.33
54.14
130.09
92.00
30.97
12.94
123.90
115.14
51.82
56.36
69.58
22.47
39.44
36.56
50.01
81.37
47.11
66.55
72.00
19.37
86.00
151.12
92.17
118.00
24.87
81.79
50.07
87.50
55.54
45.69
39.72
45.35
33.13
76.48
28.47
75.27
65.02
95.21
15.48
95.00
83.39
38.06
60.00
56.30
90.00
46.88
CITYAM.COM
FEATURE 19
PERSONAL FINANCE
HOLD YOUR HORSES

Why government plans to allow pensioners to sell their annuities arent a great idea
Annabelle
Williams
ENSIONERS who bought an

annuity will be given the freedom to sell it on from next
year, under new government
plans. But criticism is piling
up, and it seems the new secondary
marketplace will be a good idea for
almost no-one except the brokers
who trade them.
The details are still being ironed
out, but effectively the 5m people
who used their pension savings to
buy an annuity, or contract guaranteeing a regular income stream, will
be able to sell it through a broker.
They will get a lump sum in return,
while the buyer will take on the
annuity and receive the regular
income under the contracts original
terms.
GET-OUT CLAUSE
There are some positives. Giving people a get-out clause could make annuities more attractive, says Andy James
of Towry.
I think the change could add to

the appeal of annuities, since one of
the main drawbacks has always been
that it is a one and done decision. If
there is now going to be a get-out
clause, albeit at a cost I suspect, then
it may encourage a few more people
to take out an annuity in the first
place, which will be no bad thing.
Annuities have been criticised for
giving people meagre income
streams in relation to their retirement savings. At one point, a
pension pot of 1m translated into
an annuity which paid annual
income of 20,000 in retirement.
They do have shortcomings, but
annuities offer one shining attraction. That is the fact a person can
know they will be paid a regular sum
for as long as they live. As Ian Price of
St Jamess Place put it: Thats a guaranteed income for life thats one
hell of a guarantee.
Im not convinced
that anyone is
going to come out
and actually do
this
Its also the reason that most

people still opt for an annuity at
retirement. Its a safe, albeit imperfect, choice.
ADVICE
The new marketplace will likely

require people with annuities worth
a certain value to seek advice from a
financial adviser before selling. Its
unclear under what circumstances a
pensioner would be advised to surrender their reliable income.
Perhaps if they only have tiny payouts from their annuity, or if they
are very wealthy and can afford to
give it up. The advice is likely to be
stay put, retain what you have, says
Frazer Wilson from Thomas Miller
Investments.
Selling an annuity is a huge decision, and some warn of the potential
for a new mis-selling scandal.
Regulatory certainty will be needed
to minimise the potential for another mis-selling scandal or reputable
firms will be deterred from entering
the market, says John Gaskell of
accountancy body ICAEW.
A FAIR PRICE
Even if a professional suggests the

sale should go ahead, for the sellers,
the brute reality is they may get far
less than they hoped for.
Sellers will be taxed on the proceeds. The government expects to
take 1bn in tax over the first two

years of the markets operation not
bad for alleviating the deficit. Once
tax, a brokers fee, and the new valuation of the half-depleted annuity is
taken into account, the final sum
will dwindle. When people look at
the figures theres likely to be disappointment. They will think that this
doesnt look like a particularly good
deal, Wilson adds.
WHATS THE VALUE?
The chief difficulty is in how to value

an annuity thats already been
paying out to someone for years, or
even decades.
When someone goes to buy an
annuity at the point of retirement,
how much they will get in regular
payments depends on a host of factors. Actuaries take into account that
persons life expectancy, based on
their age, gender, health and marital
status. External factors such as interest rates are included too.
Selling an annuity could mean
going through this complex valuation process again, and may also
involve a medical examination.
I suspect if someone wants to sell
an annuity, people who buy them
will go through the process of looking at the sellers longevity. There
will probably be a health assessment
needed, which will put people off,
says Wilson.
It will be difficult to establish a

fair price, adds Gaskell. Brokers
which decide to value annuities and
find buyers will want a fee for doing
so, eating into the sale proceeds.
Whenever a commodity is sold,
someone has to make money on the
way. Im not convinced anyone is
going to come out and do this, and if
they do, they will make a [profit]
margin on it, says Price.
It may mean the secondary market
in annuities turns into a lucrative
opportunity for the brokers and
intermediaries, but not for the pensioners who are selling. The advantage will lie with financial services
firms, not consumers who want to
sell, says Gaskell.
THE BUYERS
Who would want to buy a half-used

annuity? It probably wont be other
pensioners. People who have decided
to go into drawdown with their pension savings, which is a way of
staying invested while still taking an
income, have the option of buying
their own annuity.
At the moment theres a whole discussion in this area. I think it will
probably be institutions or pension
funds which want that income
stream, says Wilson.
Annabelle Williams is deputy money
editor at City A.M.
20
FEATURE
CITYAM.COM
OFFICE POLITICS
Three tips for

making
business travel
more bearable
FLY
RIGHT
SeatGuru
Free
If you need a Bloody Mary, its the tomato

juice youre after, says William Railton
ROM business class to spirits in

the sky few aspects of corporate life are glamorised quite
like travel. Frequent fliers are
more likely to remember their
last business trip because of flight
delays, jet-lag, and the inconvenience
caused by a dead phone battery.
This year, firms worldwide are expected to spend more on travel than ever
before. But a report by the Association
of Corporate Travel Executives claims
that expenses have been reined in hard
over the last two years, with large numbers of aeroplane and hotel upgrade
requests denied. So here are some tips
for making your next trip more palatable.
DEMAND AN UPGRADE
If you travel often, you may want to take
your comfort more seriously, not less.

A study by the University of Surrey
and Linnaeus University hits upon the
darker side to frequent travel. It cites
jet lag as a cause of premature ageing
and increased risk of strokes and heart
attacks, and even found that those who
fly more than 85,000 miles a year
exceed regulated limits for exposure to
radiation.
Indeed, the pressures of international
business travel can affect your job performance by 38 per cent, according to a
study by the University of Alabama. And
the more exotic the destination, the
more deleterious the effects may be.
The
researchers
describe
a
phenomenon known as institutional
distance, which sees foreigners struggle to adjust to social customs, cuisine,
language and laws very different to
Jet-set? Travelling
can dent your
work
performance
considerably
their own, which makes long-distance

travel particularly stressful.
Unless your company has a strict policy against flying business class, this
may be a cause worth pursuing with
your boss or whichever department
approves travel arrangements.
If possible, you should consider taking
holiday on days either side of travelling
to help you recover from jet-lag, prepare
before, and unwind after your work
commitments by taking in the sights
and culture.
PRE-FLIGHT CHECKS
Many business travellers would willingly forgo pre-flight perks and a smarter
suite to arrive at their meeting feeling
refreshed and prepared.
Make sure the bases are covered
before you fly. WiFi may be intermittent
Created by
TripAdvisor,
SeatGuru
features the
widest selection
of aeroplane
seat maps (700
maps from
around 100
airlines) to
ensure you bag
the best seat onboard when you
book a plane
ticket through
the app.
Crowdsourced
seat
suggestions,
airline advice
and amenity
information are
available. Users
can also set up
alerts to monitor
their flights
arrival and
departure times.
so ensure data access on your devices.

Apps can make many experiences more
comfortable. If youre booking the
flight yourself, one app SeatGuru
allows you to browse seat-plans to cherry-pick the spot with most leg-room.
Getting through security early also
has its benefits. Business travel is all
about expecting the unexpected gate
changes, flight delays, long taxi lines
and security checkpoint backups,
author Eric Holtzclaw told Fast
Company. By giving yourself more
time, these unavoidable occurrences
will not cause you extra stress. Use
your time in the airport lounge to catch
up on emails or the presentation youre
due to give. Itll be easier to concentrate
there than in the office, with the
threats of traffic and long waits at security still ahead of you.
KEEP THINGS CLEAN

If you want to catch some sleep,
caffeine and heavy meals should be
avoided before and during the flight.
And, alas, it is best to do without
alcohol as well.
A study by Cornell University found
that the 85 decibels audible during a
flight actually enhance certain tastes,
particularly umami, which is abundant
in jet-setter favourite, the Bloody Mary.
But as most cabins are kept at just 10
to 15 per cent humidity, you should
avoid drink which might add to the
effects of dehydration. Fortunately, the
accentuated umami taste comes from
the tomato juice, and not the vodka,
explaining why German airline
Lufthansa has claimed that it sells
almost as much tomato juice (53,000
gallons a year) as beer (59,000 gallons)
on its flights.
WEDNESDAY 27 JANUARY 2016 LIFE&STYLE 21
CITYAM.COM
MOTORING
EDITED BY PETER BURGESS, MOTORINGRESEARCH.COM
The Audi R8: its a kind of magic

Driving a supercar
in a deluge? No
problem if it
happens to be
Audis new R8,
which combines
clever engineering
with raw power,
says Tim Pitt
he plan was to fly to the

South of France at 9am, then
spend the rest of the day
driving around the glorious
Var region. But fog-related
delays meant we didnt arrive at Paul
Ricard until darkness was setting in.
The next morning there was rain of
biblical proportions.
Thats not the ideal way to show off
the capabilities of a car that, on the
right day, can reach 204mph and accelerate to 62mph in 3.2 seconds. So it
was comforting to discover that the
new Audi R8 remains as reassuring to
drive as its predecessor.
But dont expect more of the same:
the new R8 has had more than a
makeover; its a whole new car.
Thankfully, it still has the Quattro
fourwheeldrive system, which helps
with the inclement conditions, maximising the levels of traction, while
the usual efforts that supercars make
to intimidate the driver are suppressed in a thoroughly Audi-like
manner.
And goodness, it feels mighty quick.
Theres no longer a V8 engine, just the
V10 in two versions. This 134,500 R8
Plus produces 610hp, although if
moneys tight there is always the base
V10 with 540hp. The more powerful
car has the same engine Lamborghini
fits to its Huracan so youll want
that one, right?
Set the Audi R8 up in its sportiest
mode theres a lot of button-pressing
to achieve this and all hell breaks
loose when you floor the throttle (if,
indeed, you have the courage). The
transmission will automatically shift
down, not just one or two gears, but
three or even four, then the R8 snarls
forward like an angry bull.
The transmission is fantastic, both

for its ability to cosset you when required, but also by making you appear
to be the best changer of gears in the
world. Your passenger will believe
that youre a driver of some genius.
The crackle and pop from the sports
exhaust simply adds to the aura.
Inside, the R8 is modern, classy and
interesting, with a myriad of buttons
and controls and a special flatbottomed steering wheel on the V10
Plus. It compares very favourably with
the well-worn tradition of the Porsche
911, even though this is still very obviously an Audi interior.
The R8 also has Audis latest virtual
THE FACTS
AUDI R8 V10 PLUS

PRICE:
0-62MPH:
TOP SPEED:
CO2 G/KM:
MPG COMBINED:
134,500
3.2 SECS
204MPH
287G/KM
23.0MPG
THE VERDICT
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
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cockpit, with the best sat nav screen

youll find in Christendom. The fact
that you can get the same in an A4
doesnt override its greatness.
Our test cars were fitted with the optional sports seats, which were too
hard for my liking; save the money
and add cruise control and an ashtray
instead. Yes, they are both optional extras. The powerful LED headlamps
would be more useful still.
The latest R8 carries over the basic
style of the original and adds a whole
technofest of changes. The chassis is
still aluminium, but theres now
plenty of structural carbon fibre to
bring the weight down.
The steering is electrically assisted,

but none the worse for that, and there
is other cleverness to help the green
credentials (if supercar and green
can be used in the same sentence). The
R8 will freewheel if you lift off the accelerator, and one bank of five cylinders will close down under light
engine loads. Thats beneficial when
it comes to those vital CO2 numbers,
which are down 12 per cent. Youll
still struggle to better 20mpg, though.
So its a fabulous sports car. There
will always be those who demand the
exclusivity of a McLaren or Aston Martin, but here is a stunning alternative
that simply cannot be overlooked.
NOT CONVINCED? CHECK OUT THESE ALTERNATIVES...
MCLAREN 570S
PRICE:
143,250
0-62MPH:
3.1 SECS
TOP SPEED:
204MPH
CO2 G/KM:
249G/KM
MPG COMBINED: 26.6XMPG
THE VERDICT:
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
MERCEDES AMG GT
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PRICE:
0-62MPH:
TOP SPEED:
CO2 G/KM:
MPG COMBINED:
110,500
3.8 SECS
193MPH
219G/KM
30.1MPG
THE VERDICT:
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
PORSCHE 911 TURBO
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PRICE:
0-62MPH:
TOP SPEED:
CO2 G/KM:
MPG COMBINED:
127,670
3.0 SECS
198MPH
212G/KM
31.0MPG
THE VERDICT:
DESIGN
PERFORMANCE
PRACTICALITY
VALUE
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22
SPORT
SPORT
FOOTBALL
Townsend set
for 12m move
to Newcastle
ROSS MCLEAN
TOTTENHAM exile Andros Townsend
is poised to complete a move to
relegation-threatened Newcastle
after the two clubs agreed a 12m fee
for his services yesterday.
The 24-year-old, who has won 10
England caps, has made just three
Premier League appearances for
Spurs this season and has not
featured since their Europa League
clash with Anderlecht on 22 October.
He was dropped from Tottenhams
senior squad for games against
Anderlecht and Arsenal in November
following a row with the clubs
fitness coach Nathan Gardiner.
Townsend is set to become
Newcastles third signing of the
January transfer window after
midfielders Jonjo Shelvey and Henry
Saivet joined for a combined fee in
the region of 17m. A 12m outlay
would take Newcastles spending to
81m since former England manager
Steve McClarens appointment last
summer, an expenditure totally at
odds with owner Mike Ashleys
previous spending policy.
Spurs centre-half Jan Vertonghen,
meanwhile, faces a lengthy spell on
the sidelines after damaging a
medial knee ligament during
Saturdays win at Crystal Palace.
FOOTBALL
Adebayor: Let
me laugh and I
will score goals
ROSS MCLEAN
NEW signing Emmanuel Adebayor
has vowed to score the goals that fire
Crystal Palace to a top-six finish -- but
only if he is allowed to laugh -- after
joining the Eagles on a free transfer
until the end of the season yesterday.
The 31-year-old was released by
Tottenham in September having
failed to impress manager Mauricio
Pochettino, who omitted the ex-Togo
frontman from both his Premier
League and Europa League squads.
Whatever the team want to
achieve, I will follow them and help
them win games, said Adebayor.
They are a couple of points [six]
from the top five. I know it is going
to be very difficult because they have
a lot of big games to play.
But lets get out there, have fun
on the pitch and enjoy ourselves.
Everyone who knows Emmanuel
Adebayor will tell you that in a hard
moment or a good moment he is
always laughing.
Let me laugh, let me enjoy myself
and hopefully I can bring that into
the dressing room and the team will
follow and hopefully we will get to
where we want to get to.
Palace strikers Fraizer Campbell,
Dwight Gayle, Connor Wickham and
Marouane Chamakh have managed
just one league goal between them
this season.
BLUES-BOUND Brazil striker Pato

expected in London today to seal
loan move to Chelsea
FOOTBALL
Klopp vows
to seal first
Reds trophy
CAPITAL ONE CUP
LIVERPOOL
STOKE CITY
(AFTER EXTRA TIME. 1-1 ON AGGREGATE.

LIVERPOOL WIN 6-5 ON PENALTIES)
0
1
ROSS MCLEAN
LIVERPOOL boss Jurgen Klopp has
vowed to win the Capital One Cup and
deliver a trophy in his first year in the
Anfield hotseat after edging past
Stoke in last nights semi-final courtesy a tense sudden-death penalty
shoot-out victory.
Oft-maligned Reds goalkeeper
Simon Mignolet turned centre-half
Marc Muniesas spot-kick around the
post before midfielder Joe Allen kept
his nerve to send eight-time winners
Liverpool to a 12th League Cup final.
An enterprising Stoke had earlier
taken the tie to extra-time following
Marko Arnautovics first-half strike
but a first League Cup final since 1972
proved elusive. Liverpool will play the
winners of tonights tussle between
Manchester City and Everton on 28
February as they bid to lift their first
trophy since 2012.
Manchester City or Everton, I dont
care, we will win the cup, said Klopp.
If you have the opportunity to win
a trophy, you should not waste time,
you should take it. You should try
everything to get it. You need the players for this and they are ready to fight.
We are in the final and we will be
ready and try everything to get silverware for the Liverpool museum. It
would be great. But we have to do a
few things until then and try to be

prepared the best we can.
Wembley is a cool place to play football but when you are there it is only
really good when you win. We only go
there to win and if the players have
the same attitude, the same readiness
and the same passion then we have a
big chance.
Liverpool had progressed from seven
of their previous eight League Cup
semi-finals but were abject for most of
the contest as Stoke registered their
first victory in any competition at Anfield since March 1959.
Republic of Ireland forward
Jonathan Walters fired a warning
across the Liverpool bow in the 22nd
minute when he dragged a shot wide
of Mignolets far post after escaping
the attentions of the hosts backline
and latching onto an Arnautovic pass.
Stoke levelled the tie in first-half
stoppage-time as a clinical, free-flowing move involving Walters and Bojan
ended with the former Barcelona
playmaker crossing for Arnautovic to
calmly side-foot past Mignolet a fifth
goal in his last 10 appearances.
In-form forward Roberto Firmino
struck the base of Jack Butlands post
three minutes into the second period,
while Reds centre-half Mamadou
Sakho denied Walters with a lunging
block shortly after the hour mark.
On-loan Chelsea midfielder Marco
van Ginkel struck the outside of the
post in extra-time after taking a flick
from former Liverpool target man
Peter Crouch on his chest. But Muniesas penalty miss was to be decisive
after Crouch and Emre Can had also
failed from the spot.
FOOTBALL
Mourinho and United are a perfect marriage
TS HARD to avoid the conclusion

that Louis van Gaal is a dead man
walking. The Manchester United
manager has made himself
unpopular among fans with his
brand of football, and the best the
club can hope for this season is
probably scraping into the
Champions League. Its a question of
when, not if, he goes and who
should replace him.
If we assume that Pep Guardiola is
bound for Manchester City, then Jose
Mourinho persistently linked with
United would appear to be an
obvious choice to succeed his old
mentor Van Gaal, especially since he
is unattached since being sacked by
Chelsea in December and therefore
available without compensation
being due to another team.
I still have no idea how relations
FOOTBALL
COMMENT
Trevor
Steven
between Mourinho and his Chelsea
players apparently deteriorated to a
fatal extent just months after he led
them to the Premier League title. Did
the Portuguese start to believe in his
own infallibility? I dont know. I do
know that his chastening experience
this season is one that he had not
encountered before.
It does not change the fact that
Mourinho became champion just last
summer in his second season back at
Stamford Bridge. He is proven in the

Premier League, he has done it before,
and he is still a great manager. He is
still hot property.
They say you learn more from
tough times than success, and Id like
to think he will have learned the hard
way that he simply cannot afford to
fall out with players. He has had time
to think about what went wrong and
make sense of it, and I think he has
the experience and quality to swallow
his pride, take it all on board and put
things right.
BLIP
If I was United chief Ed Woodward I

would tell Mourinho that the jobs his
but in the summer. That would give
the club time to sort out the squad,
which Im sure Jose would want to
overhaul, and I imagine he would
prefer to take over at the end of a

season rather than halfway through.
United need a top manager at the
top of his game. Van Gaal was not
that, as recent club stints showed.
Mourinho, despite a bruising few
months, can still argue that he is, and
that this year was a blip. Hed make
the club more popular and could
challenge for the league next year.
In some ways its the perfect
marriage: Mourinho and United need
each other equally. He, like them,
simply has to get it right this time.
Failure to do so could see a man who
almost used to be able to name his
next club choosing from a far less
illustrious list of future employers.
Trevor Steven is a former England
footballer who has played at two World
Cups and two European Championships.
He now works as a media commentator.
CITYAM.COM
SPORT
23
SIDELINED West Ham have

confirmed full-back Jenkinson has
suffered a significant knee injury
RUGBY UNION
Uncapped trio primed for England debuts

ROSS MCLEAN
UNCAPPED trio Ollie Devoto, Jack

Clifford and Paul Hill are set to make
their international debuts in
Englands Six Nations opener against
Scotland after being retained in head
coach Eddie Jones 23-man squad
yesterday.
Bath fly-half Devoto, Harlequins
back-row forward Clifford and
Northampton prop Hill all made the
cut alongside more familiar faces

ahead of Englands first training
week at their Surrey base at
Pennyhill Park.
Wasps centre Elliot Daly and
Saracens flanker Maro Itoje had both
been tipped to feature in Jones first
match in charge at Murrayfield on 6
February but were among 10 players
to be released from the squad.
Former captain Chris Robshaw is
expected to retain his place in
Englands XV despite being stripped

of the captaincy, while he could be
partnered in the back-row by James
Haskell and Billy Vunipola.
Wing Chris Ashton, meanwhile,
has declared his intention to appeal
against the 10-week ban he was
slapped with after being cited for
making contact with the eyes of
Ulsters Luke Marshall. If upheld, the
ban would see the 28-year-old
suspended for the entire Six Nations.
ENGLAND RETAINED SQUAD

Forwards: D Cole, J Clifford, J George, D
Hartley, J Haskell, P Hill, G Kruis, J
Launchbury C Lawes, J Marler, C
Robshaw, B Vunipola, M Vunipola
Backs: M Brown, D Care, O Devoto, O
Farrell, G Ford, A Goode, J Joseph, J
Nowell, A Watson, B Youngs
CRICKET
Hales, Compton
and Taylor face
axe, says Cook
ROSS MCLEAN
Liverpool edged past Stoke on

penalties last night to reach a 12th
League Cup final
ENGLAND skipper Alastair Cook admitted that run-shy batsmen Alex

Hales, Nick Compton and James Taylor could face the axe after his sides
humiliating collapse on the final
morning of the fourth Test yesterday.
South Africa needed just 66 minutes
and 82 deliveries to claim Englands
seven remaining wickets and rout
their rivals for 101, chalking up a consolation 280-run victory in a Test series which the tourists won 2-1.
Struggling opener Hales finished
with a series average of 17, while
Compton and Taylor both faded after
key contributions in the first Test at
Durban, and Cook insists they face a
fight to retain their places.
It shows how much work weve still
got to do as a side. At the end of the
day results matter and your end column of runs is vital, so to say theyve
totally convinced me would be wrong,
but there have been flashes, said
TENNIS
Djokovic sets up Federer match

as Serena routs Sharapova again
FRANK DALLERES
DEFENDING champion Novak
Djokovic is braced for another epic
tussle with former world No1 Roger
Federer after both men swept into
the semi-finals of the Australian
Open yesterday.
Djokovic put an error-strewn
fourth-round match behind him
with a ruthless display against Kei
Nishikori, beating the Japanese
seventh seed 6-3, 6-2, 6-4.
Federer was almost as emphatic
in despatching Czech sixth seed
Tomas Berdych 7-6 (7-4), 6-2, 6-4 to
set up the latest instalment of an
enduring rivalry with Djokovic.
Both men have 22 wins apiece as
they prepare for their 45th meeting
tomorrow, although the Serb has

won five of the last seven and the
last two of their three previous
clashes in Melbourne.
Its always a big challenge, said
Djokovic. We keep playing each
other in every big tournament. He
is a great champion and someone I
have a lot of respect for. It will be a
great match.
Womens champion Serena
Williams continued her utter
domination of Maria Sharapova,
beating the fifth seed for the 18th
consecutive time to march into the
womens last four.
Williams will face Agnieszka
Radwanska tomorrow after the
Polish fourth seed thrashed Spains
Carla Suarez Navarro 6-1, 6-3.
Cook, who averaged only 23.

[Head coach] Trevor Bayliss, myself
and the selectors will have to sit down
and discuss that because the output
weve had in this series hasnt been
good enough if were trying to get to
No1 in the world, which is the ultimate aim.
Those guys have to continue working hard and make sure when selection comes round for Sri Lanka [in
May] theyve got a bucketload of runs
for their counties.
Resuming on 52-3, England wilted as
20-year-old seamer Kagiso Rabada became the youngest South Africa
bowler to take 10 wickets in a match.
He finished with match figures of 13144 the finest return of a Proteas
performer on home soil.
There was no repeat of Englands
great escape at Centurion in 2009 as
Taylor top-scored with a measly 24,
while Englands total of 101 was their
lowest in South Africa since 1899,
when they mustered a paltry 92.
James Taylor did not convince skipper Alastair Cook during the South Africa series
IN BRIEF
RESULTS
UK SPORT TARGET RIO

RECORD MEDAL HAUL
FOOTBALL
OLYMPICS: UK Sport has

targeted a record Great Britain
medal haul for an Olympic Games
on foreign soil in Rio de Janeiro this
year, while hopes persist that it will
surpass that of London 2012. Team
GB won 65 Olympic medals and 120
Paralympic medals four years ago.
UK Sports Simon Timson said: The
least we can expect is 47, the same
number as Beijing 2008, but if all
stars align and things go perfectly it
could be as good as 79 medals.
LONDON CALLING FOR

MAJOR LEAGUE BASEBALL
BASEBALL: Commissioner Rob

Manfred has confirmed that he is
working towards regular-season
clashes in the Major League
Baseball season being played in
London during 2017. The Olympic
Stadium has been mooted has a
possible venue. Manfred said: We
are very interested in playing there,
and were working hard on that.
CAPITAL ONE CUP SEMI-FINAL SECOND LEG

Liverpool ...............(0) 0 Stoke...........................(1) 1
Att: 43,091
Arnautovic 45
AET: Score after 90 mins 0-1. Agg: 1-1;
Liverpool win 6-5 on penalties.
THE SKY BET CHAMPIONSHIP
Brentford ...............(1) 1 Leeds..........................(0) 1
Nottm For ..............(0) 0 QPR ............................(0) 0
SKY BET LEAGUE 1
Blackpool ..............(0) 0 Sheff Utd ...................(0) 0
Bradford ................(0) 0 Barnsley .....................(1) 1
Bury .......................(0) 0 Crewe ........................(0) 0
Doncaster..............(0) 1 Port Vale.....................(1) 2
Fleetwood Town ........ P Walsall ............................ P
Peterboro ..............(0) 0 Burton Albion ............(1) 1
Shrewsbury ..........(0) 0 Oldham .......................(1) 1
SKY BET LEAGUE 2
Leyton Orient........ (0) 1 Newport County.......(0) 0
Morecambe...........(0) 1 Mansfield ..................(0) 2
CRICKET
FOURTH TEST MATCH
South Africa v England
(Day 5 of 5)
CENTURION: South Africa beat England by 280 runs
SOUTH AFRICA: First Innings 475 (de Kock 129no,
Cook 115, Amla 109, Stokes 4-86)
ENGLAND: First Innings 342 (Root 76, Cook 76, Ali 61,
Rabada 7-112)
SOUTH AFRICA: Second Innings 248-5 dec.
(Amla 96, Bavuma 78no)
ENGLAND: Second Innings

(Overnight 52-3)
J Root c Elgar b Piedt..............................................................................20
J Taylor c de Kock b Morkel..................................................................24
B Stokes c Cook b Morkel ...................................................................... 10
J Bairstow c de Kock b Rabada ...........................................................14
M Ali not out ............................................................................................... 10
C Woakes c de Kock b Rabada ...............................................................5
S Broad c de Villiers b Rabada ...............................................................2
J Anderson lbw Rabada ........................................................................... 0
Lb2 w1 nb1 ...........................................................................................4
Total (34.4 overs) ......................................................................... 101
Fall: 2, 8, 18, 58, 58, 83, 83, 91, 101.
Bowling: Morkel 12-5-36-3, Rabada 10.4-2-32-6, Abbott
2-0-10-0, Piedt 7-2-11-1, Elgar 2-1-8-0, Duminy 1-0-2-0.
Umpires: H Dharmasena & C Gaffaney.
TENNIS
AUSTRALIAN OPEN (Melbourne, Australia)Mens
Singles Qtr-finals: (1) N Djokovic (Ser) bt (7) K Nishikori
(Jpn) 6-3 6-2 6-4, (3) R Federer (Swi) bt (6) T Berdych (Cze)
7-6 (7-4) 6-2 6-4.
Womens Singles Qtr-finals: (1) S Williams (USA) bt (5) M
Sharapova (Rus) 6-4 6-1, (4) A Radwanska (Pol) bt (10) C
Suarez Navarro (Spa) 6-1 6-3.
Selected Mens Doubles Qtr-finals: (7) J Murray (Gbr) &
B Soares (Bra) bt (13) R Klaasen (Rsa) & R Ram (USA) 6-7
(3-7) 6-4 7-6 (7-3).
TODAYS DIARY
(7.45pm unless stated)
Capital One Cup Semi-final Second Leg

Man City (1) v Everton (2) .............................................................................

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BUSINESS WITH PERSONALITY

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