Citym 2015 06-05

THE WEEKENDSTARTS HERE:THREE PAGES OFGOING OUTPages 28-30

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BY JULIAN HARRIS AND LAUREN FEDOR

BUSINESS WITH PERSONALITY

cityam.com FREEISSUE 2,390 FRIDAY 5 JUNE 2015

Bonds rocked again after Draghi’s volatility warningBY CHRIS PAPADOPOULLOS

EUROPEAN traders facedextraordinary levels of volatilityyesterday, just a day after EuropeanCentral Bank (ECB) chief MarioDraghi’s warning that marketsshould “get used to it”.

The volatility of the Germanbund, an interest-paying IOU fromthe German government, was thebiggest surprise, given that it is oneof the more stable bonds.

The interest on a 30-year Germanbund soared to a 2015 high of 1.6per cent yesterday, before falling to1.43 per cent. The jolts came after

weeks of steep gains. Big swingswere also seen in the governmentbonds of other major Eurozoneeconomies such as France, Spainand Italy.

“Mario Draghi said it all when hesaid to expect more volatility,”David Owen, chief Europeanfinancial economist at investmentbank Jefferies, told City A.M.

“For a lot of players it hasn’tbeen a very comfortable ride forthe last few weeks.”

On Wednesday, Draghi warnedthat markets would have to getused to volatility as the ECB wouldlook through it.

Owen points out that the UK sawsimilar levels of government bondchaos when it was beginning toundertake its quantitative easingprogramme – where the centralbank prints new money to buygovernment debt.

The euro area kicked off its ownquantitative easing programme inMarch, with each country’s centralbank undertaking purchases of itsown government’s debt.

In recent weeks, the Germancentral bank has bought debt witha lower maturity (time until thedebt has to be repaid), while itsgovernment has issued more debt

THE STANDOFF between Greece andits creditors intensified last nightwhen the embattled Mediterraneanstate refused to cough up €300m(£218m) owed to the InternationalMonetary Fund (IMF).

The payment, due today, is one of several instalments in June whichAthens now says it will bundle intoone transfer at the end of the month.

By 30 June the Greek governmentwill owe the IMF about €1.6bn (£1.2bn).

The drastic measure represents thefirst time in history that a westernnation has resorted to bundling IMFdebt repayments.

The move is likely to dent relationsbetween Greece and its internationallenders even further, at a time whenleading politicians from all sides needto build up trust and come to an agreement that will save the Eurozone

member from bankruptcy.Greek Prime Minister Alexis Tsipras

had suggested on Wednesday nightthat today’s payment would be met.“Don’t worry about that,” he toldreporters early yesterday morning,when asked if his government couldafford to pay up.

But later IMF spokesman Gerry Ricerevealed that the payment was notexpected to be made, saying: “TheGreek authorities have informed theFund today that they plan to bundlethe country’s four June payments intoone, which is now due on 30 June.”

“Under an executive board decisionadopted in the late 1970s, countrymembers can ask to bundle togethermultiple principal payments fallingdue in a calendar month. The decisionwas intended to address the adminis-trative difficulty of making multiplepayments in a short period,” he added.

Tsipras emerged from Wednesdaynight’s talks with European

Commission president Jean-ClaudeJuncker and Eurogroup presidentJeroen Dijsselbloem in a confidentmood, insisting that an agreementwould be found in the coming days.But the Syriza leader returned toGreece yesterday to discover outragefrom sections of his ruling party overBrussels’ ongoing demands. His coalition government reassured thepublic late last night that it will notaccept “extreme proposals” laid out inthe latest reform plans, while Tsiprasspoke with German Chancellor AngelaMerkel and French President FrancoisHollande via conference call.

According to a Greek governmentofficial, Tsipras told Merkel andHollande that the lenders’ proposalcould not lead to a deal because it wasnot taking into account the progressmade in Brussels. However, as isbecoming commonplace, the officialinsisted there was optimism that adeal could be reached soon.

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with a longer maturity. These sortsof imbalances add to swings ininterest rates.

Bond market experts believe thevolatility will continue, fuelled byfurther imbalances between supplyand demand and by volatility itself.However, they do not expect asustained sell-off, where interestrates begin trending upwards fromnear-record lows. According tomany analysts, the recent volatilityhas not been accompanied by anynotable increase in marketexpectations of inflation, or anymaterial change in the growthoutlook for the European economy.

GREECE SHOCKS IMF BYHOLDING BACK €300M

Tsipras is facingpressure from all sides

over Greece’s latepayments

FRIDAY 5 JUNE 20152

CITYA.M.INVESTEC DERBYSPECIAL EDITION

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2 To contact the newsdesk email [email protected]

Treasury to sell £1.5bn of Royal MailCHANCELLOR of the exchequerGeorge Osborne announced plansfor a £13bn round of privatisationsyesterday, as he added the sale of£1.5bn of Royal Mail to the £11.8bnsale of Lloyds Bank currently under-way.

And if he brings forward plans tosell down the government’s holdingsin bailed-out bank RBS, he could addtens of billions of pounds more tothat tally.

“Holding over £1bn of Royal Mailshares in public hands is not a sensi-ble use of taxpayers’ money,” thechancellor told MPs yesterday,announcing the sale of the govern-ment’s 30 per cent stake.

Royal Mail floated on the stockmarket in October 2013, and minis-ters came under criticism at the

BY TIM WALLACE time as the share price rapidly rosefrom 330p to over 600p. The currentshare price is 523p.

The government’s advisor last timearound, Lazard, will not be workingon the next sale. Instead, Rothschild,a veteran of previous pri-vatisations, has beenhired.

Investment bankswho could run thebook on the sales willneed to start puttingforward pitches.

The sale is expected tobegin this year, withthe whole stakesold in chunks

LOW INTEREST rates look set tostay for the rest of the year, withthe growth outlook for the UKworsening and a majorinternational organisation urgingthe US not to hike rates this year.

The UK economy may only growby 2.3 per cent this year, theBritish Chambers of Commerce,which represents over 90,000businesses, said today.

It marks a downgrade from itsearlier forecast of 2.7 per cent. It

BY CHRIS PAPADOPOULLOS follows a sharp slowdown in thegrowth of the UK’s dominantservice sector, implied by a surveyearlier this week.

The Bank of England’s monetarypolicy committee (MPC) yesterdaydecided to keep its headlineinterest rate at 0.5 per cent.

“‘Noflation’, sterling’s recentstrength and evidence ofweakness in some of the UK’smajor export markets still pointto the majority of the MPC seeinglittle need to raise the Bank Ratethis year,” said Martin Beck,

senior economic adviser to the EYItem Club.

Meanwhile, InternationalMonetary Fund (IMF) chiefChristine Lagarde said that beforehiking interest rates the UScentral bank, the Federal Reserve,should wait for “more tangiblesigns of wage or price inflationthan is currently evident. In otherwords, we believe a rate hikewould be better in 2016.”

The IMF slashed its 2015 growthforecast for the US to 2.5 per centfrom 3.1 per cent.

TODAY’S COMMENT: US corporate debt markets may boil over, why law firms should float See The Forum pages 24-25

NEWS

Easy money to last until at least2016 as growth prospects wane

City suits could rub shoulders, but perhaps not kick the tyres, in Dunster Court last night.Celebrations of the 92nd Anniversary of the Le Mans 24-hour race brought racing legendsDavid Richards CBE, Ross Brawn OBE and John Surtees OBE for a French-inspired charitydinner and reception, where guests got up close with some of the famous Le Mans cars.

CLASSIC RACING CARS GRACE THE CITY STREETS

public firm should end up in asmany hands as possible.

Laith Khalaf from HargreavesLansdown, which had a role distrib-uting the shares in the initial publicoffering (IPO), argued that a biggerrole for small shareholders willmake for a more stable investor base.

“There is this cock-eyed view thatinstitutions are long-term investorswhile retail buyers aren’t, but theopposite is true,” Khalaf told City A.M.

“Retail investors tend to buy andhold shares, they tend not to be day-traders. This stock is a potentialincome-producer, so a good way tosteady the boat is to have a lot ofretail investors, putting money intoISAs and pensions.”

Royal Mail shares fell by nearly fiveper cent on yesterday’s announce-ment, closing the session at 523p pershare.

over a time period spanning as manyas five years.

The government is consideringoptions on the sale, but is less likelyto pick a retail offering this timearound.

“In the first stage, it is important tomake a conscious effort to reachout to as many people as possible.But that is not necessarily true inthis case,” a government sourcetold City A.M. “With the final stake, the impor-tant thing is to get the best possi-

ble return for thetaxpayer,” the source

added.Retail stock bro-

kers called forsmall investorsto get a look in,arguing theshares from a

Vince Cable cameunder fire afterRoyal Mail’s IPO

European court rules against low VATThe government’s “tax lock commitment” wasput in doubt yesterday after Europe’s highestcourt ruled that its reduced value added tax rateon energy-saving materials flouted EU rules.The Treasury is expected to be forced to raise theVAT rate on insulation, solar panels and otherenergy saving equipment from five per cent to20 per cent, in spite of plans in last week’sQueen’s Speech to legislate against VAT rises.

SEC sues Bulgarian trader over AvonThe US Securities and Exchange Commission hassued PTG Capital, the possibly fake company thatmade a bogus bid for Avon in May, causing an

almost 20 per cent surge in the cosmeticscompany’s share price. Bulgarian resident NedkoNedev and other entities tied to Bulgaria, arealso accused of submitting fake bids forinsurance company Tower Group Internationaland Rocky Mountain Chocolate Factory, accordingto the SEC lawsuit filed on Thursday in a USdistrict court.

Cisco’s top female engineer leavesPadmasree Warrior, one of Silicon Valley’s mostsenior female engineers, is to step down as thechief technology officer of Cisco Systems amid aleadership overhaul at the US networkingequipment firm. Her departure, next month, ispart of a shake-up by Chuck Robbins, who willtake over from John Chambers to become thecompany’s first new chief executive in 20 years.

Premier League has record revenuePremier League clubs earned record profits in thefirst year of a new television deal that has seenaverage spending on wages drop to 58 per centof income. Twelve months ago analysts atDeloitte, who have published their annual reviewof football finances for the 2013/14 season,warned against “reckless” spending as thewages-to-revenue ratio topped 70 per cent.

Green car sales shift up a gearPlug-in hybrids such as the Mitsubishi Outlanderand electric cars like the Nissan Leaf are helpingBritish car sales to grow despite the slowestmonth for new registrations in three years.

Cameron warned cabinet over charityDavid Cameron warned his Cabinet ministers notto publicly say that they would give a proposedpay rise to charity just hours before Cabinet splitover the issue. The Prime Minister earlier thisweek used a cabinet meeting to set out theGovernment’s position on a planned 10 per centpay rise which will take MPs’ salaries to £74,000.

Starbucks slams US governmentHoward Schultz, chief executive of Starbucks,yesterday claimed that the coffee giant has beenforced to undertake a vital societal role in the USbecause of the failings of the Americangovernment.

Dish Network in talks with T-MobileDish Network is in talks to merge with T-MobileUS, people familiar with the matter said, a dealthat would accelerate a wave of consolidationacross the US media and communicationsindustries.

US suspects hackers based in ChinaThe Federal Bureau of Investigation is probing anapparently far-reaching penetration of data heldby the Office of Personnel Management, in whichthe records of approximately 4m individuals werecompromised, according to people familiar withthe matter.

WHAT THE OTHER PAPERS SAY THIS MORNING

FRIDAY 5 JUNE 20153NEWS

PLUS500’s top shareholder OdeyAsset Management yesterdayrebuked a £460m deal for thecompany from Teddy Sagi’sPlaytech and said it would welcomeoffers from rival bidders.

Odey, which was founded byhedge fund investor Crispin Odey,has amassed a 25 per cent stake inthe troubled spreadbettingcompany alongside JP Morgan,which owns 8.5 per cent.

Playtech, 33 per cent owned bySagi, on Monday unveiled a 400p ashare offer for the company,recommended by Plus500’smanagement, but Odey said theprice “materially undervalues” it.

Before that, Plus500 shares

Odey invites rivals to gatecrashPlaytech’s takeover of Plus500

BY MICHAEL BOW crashed by nearly 70 per cent lastmonth after it emerged the Citywatchdog had launched a probeinto the company’s anti-moneylaundering procedures. due toconcerns it was failing to complywith the rules.

The Israeli spreadbettingcompany has seen shares fall froma high of 781p in April to a low of265p. It closed at 371p last night.

“We believe 400p per Plus500share in cash to be anopportunistic bid exploitingcurrent regulatory issues andrisks,” Odey said in a statement.

“In our view 400p materiallyundervalues Plus500 and we do notintend to vote in favour of the cashacquisition of Plus500 at thisprice.”

SWISS prosecutors have dropped theirinvestigation into HSBC’s private bankoperations, after the company agreedto pay the authorities in Geneva 40mSwiss francs (£28m) yesterday.

The authorities had long been look-ing into allegations of money launder-ing at the firm’s Swiss private bank.Earlier this year, Geneva’s public pros-ecutor searched HSBC’s offices as partof the probe.

Europe’s largest lender did notadmit guilt or wrongdoing as part ofthe settlement, but said in a statementyesterday that the 40m Swiss francpayment was to compensate for itspast organisational failings.

HSBC said it “acknowledged that thecompliance culture and standards ofdue diligence in place in the bank inthe past were not as robust as they aretoday.”

The bank also said it has since

Swiss probeends as HSBCpays out £28m

BY LAUREN FEDOR improved practices to keep clientsfrom using the bank “to evade taxes orlaunder money,” and, in doing so, hasdrastically reduced the number of pri-vate Swiss accounts, from 30,000 to10,000.

The Geneva prosecutor said that nocriminal charges would be filed, andthat the settlement “avoids the uncer-tainties of a long and complex legalcase.”

Scrutiny of HSBC’s Swiss unit stretch-es back nearly seven years to 2008,when one of the bank’s former ITemployees, Herve Falciani, fled Genevawith files which were alleged to showevidence of tax evasion by its clients.Falciani turned the files in to Frenchauthorities, who in turn shared themwith other countries, includingSwitzerland.

HSBC is still being investigated in anumber of territories over allegationsof tax evasion, including in the US,France, Belgium and Argentina.

Prime Minister David Cameron and mayor of London Boris Johnson were on hand in theirhigh-vis suits yesterday for a Crossrail “break through” ceremony under Farringdonstation. The ceremony marked the end of a three-year effort to dig tunnels for London’sforthcoming new Crossrail system. Johnson called the completion “a landmark event”.

CAMERON IN HIGH-VIS AT CROSSRAIL CEREMONY

Wages in London grow fasterthan in the rest of the countryWAGES in the capital are increasingfaster than they have in nearly a year,according to a new survey out today.

The survey, carried out by theRecruitment & EmploymentConfederation and KPMG, found thatwages for permanent employees inLondon increased for the twenty-fourth successive month in May,marking an uninterrupted, two-yeartrend of successive growth. The rate

BY LAUREN FEDOR of salary growth for Londoners alsohit a 10-month high, and was abovethe UK-wide trend for the first timesince January, according to thesurvey. The steady uptick in wageshas been widely welcomed afternearly eight years of earnings in theUK failing to outpace inflation.

The new promising figures alsocome the same week as a City ofLondon Corporation study whichpredicted that a boom in finance andtechnology hiring will help create

145,000 new jobs in central Londonover the course of the next decade.The City of London Corporation said39,000 of those new jobs wouldappear in the Square Mile.

Responding to the results, IngridWaterfield, director of KPMG's peoplepowered performance practice, said:“Permanent placements in Londoncontinued to increase during May,which demonstrates a strongunderlying business sentiment in theCity.”Wages are rising for workers acorss the capital, according to a new survey from KPMG

DECEMBER 2008Police in Switzerland detain former HSBCIT employee Herve Falciani in Geneva.Whistleblower Falciani flees to France.EARLY 2010Then French finance minister ChristineLagarde begins sharing Falciani’s fileswith other countries, including Greece.

FEBRUARY 2015Media outlets publish excerpts from theleaked files, leading the bank to apolo-gise for wrongdoing. JUNE 2015HSBC settles with Swiss authorities, pay-ing a £28m fee. Probes remain ongoing inthe US, France, Belgium and Argentina.

KEY DATES IN THE HSBC TAX AVOIDANCE SCANDAL

TWO UK-based music platforms saidthey were teaming up yesterday, asconcert app Songkick and ticketsales website Crowdsurgeannounced a 50/50 merger.

In an announcement on itswebsite, Songkick said that thecombined company would keep thename Songkick and become the“largest artist-ticketing service inthe world.” According to Songkick,the company aims to sell thereported 50 per cent of concerttickets that go unsold. Songkick’sapp catalogues concerts and sendsusers personalised alerts when theirfavourite artists announce shows.

The company also announced a$16m (£10.4m) funding round fromventure capital firms IndexVentures, Sequoia Capital andAccess Ventures.

Merger for UKmusic startups

BY LAUREN FEDOR

THE OWNERS of payments processingcompany Worldpay are getting readyfor a £6bn stock market listing, hiringsix banks to lead the initial publicoffering (IPO).

Sky News first reported thatWorldpay’s owners, AdventInternational and Bain Capital, areclose to appointing Bank of AmericaMerrill Lynch, Goldman Sachs andMorgan Stanley as global co-ordinators for the share sale.Barclays, Credit Suisse and UBS havealso been chosen to act asbookrunners on the deal, accordingto the Sky report.

Worldpay’s IPO will come nearlyfive years after the company was soldby RBS in a deal worth close to £2bn.

Worldpay isset to float

BY LAUREN FEDOR

FRIDAY 5 JUNE 20154 NEWS cityam.com

FIRMS connected with the so-calledGatwick gusher are expected to updatethe market with new informationabout the Surrey oil well as early astoday, after suspending shares yester-day.

UK Oil & Gas Investments (UKOG), aswell as Solo Oil, Alba Minerals, StellarResources and Doriemus, all suspendedtrading on the junior market pendingan announcement about the HorseHill-1 Well.

The suspension is not expected to lastlong, however it could last until earlynext week.

Investor speculation had pointed to apotential takeover of the companies’interests in the well, however City A.M.understands that the announcement

Oil firms’ shareson hold aheadof Aim update

BY CAITLÍN MORRISON relates to tests that have been carriedout at the well, which is located in theWeald Basin near Gatwick Airport.

The Aim regulator is aware of the con-tents of the upcoming announcement.

Shares in UKOG, which had beenfalling off earlier in the week, rose dra-matically by 20 per cent on Wednesday,closing at 2.65p.

UKOG, which is led by Aim veteranDavid Lenigas, and the othercompanies which suspended tradingon the market yesterday, saw theirshare prices skyrocket in early Aprilwhen they announced the discovery ofpotentially 100bn barrels of oil nearGatwick.

Shares in the company itself jumpedby more than 300 per cent when thefind was first revealed. Both UKOG andAim declined to comment yesterday.

LLOYDS Banking Group could beslammed with a record fine fromthe Financial Conduct Authorityfor its handling of PPI complaints.

The bank – which is currentlystill part-owned by the taxpayer –could receive a penalty of “wellover £100m” from City watchdogthe FCA .

The fine could be made publicas early as today, Sky News said.

Compared to fines recentlydoled out for various UK and USbanks’ involvement in the forexand Libor scandals the fine isrelatively small, but it is asignificant amount for the FCA.

Last month it handed Clydesdale

Lloyds may face record fine over£100m for PPI complaints fiasco

Lloyds, led by chief executive Antonio Horto-Osorio, may face a record FCA fine over PPI

Moneysupermarket.com was established in 1993 as a provider of offline mortgage data

BY CATHERINE NEILAN Bank a £20.7m fine, which was atthat time the largest PPI-relatedpenalty in FCA history.

Lloyds Bank was one of thebiggest players in the PPI market.The bank has set aside more than£12bn to deal with compensationclaims from customers. Lloyds andthe FCA declined to comment.\

Only last week the FCA said itwas considering changes to rulesaround PPI, following a SupremeCourt ruling in Plevin v Paragon.

The judge ruled that the fact thelender had failed to disclose howmuch commission it received fromselling the PPI products created a“sufficiently extreme inequality ofknowledge and understanding”between parties.

INVESTORS cannot fairly comparebanks’ capital buffers and financialsoundness because the rules allowthem too much flexibility in howthey report their numbers, analystsat credit ratings agency Fitchwarned yesterday.

The biggest banks calculate theirrisk-weighted assets (RWAs) based oninternal models of risk, which arethen approved by regulators.

But the models can producewildly differing interpretations ofrisk from institution to institution,meaning even under the apparentlyharmonised international regime, itcan be difficult to accuratelycompare banks to other banks.

“The Basel Committee on BankingSupervision’s RegulatoryConsistency Assessment Programme(RCAP) initiative is making slowprogress in reducing RWAvariability and there is limitedtransparency on which banks’ ratiosmight be overstated,” said theanalysts.

“For example, in April 2015, theCommittee announced it hadagreed to remove just six of around30 national discretions from BaselII’s capital framework.”

“The Committee’s reluctance orinability to name the banks whosecapital ratios are overstatedundermines confidence in theinternal ratings-based modelsgenerally.”

The analysts hope the rules will betweaked following a consultation.

Fitch: It is stilltoo difficult tocompare banks

BY TIM WALLACE

SHARES in Moneysupermarket.comtumbled yesterday after it said it maybe the target of an Ofgem probe.

In a statement released onWednesday night, the firm informedinvestors it was being required byOfgem to provide information inconnection with an investigation:“into whether two or more

BY ADAM HIGNETT companies providing a supportingservice for the energy industry havebreached competition law.” Ofgemthen said the information it provideswould also determine if it too wouldbe a subject of investigation.

Investors reacted badly to the news,with shares closing down 9.9 per centat 275.80p. Contagion spread toZoopla, which owns uSwitch, whereshares closed down 5.32 per cent.

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5NEWScityam.com

THE INSTITUTE for Fiscal Studies haswarned that it will be “anything buteasy” for the Conservatives to stick totheir campaign promises.

IFS deputy director Carl Emmersonsaid yesterday that with underlying pres-sures set to drive up spending, deeper-than-expected cuts amounting to morethan 15 per cent for unprotectedWhitehall departments will be needed tobalance the budget.

Prime Minister David Cameron saidbefore the General Election that hisgovernment would not cut spendingfor the NHS, schools or foreign aid.But Emmerson said yesterday thatunprotected departments, includingthe department for business, innova-tion and skills, the departmentfor transport and thedepartment for commu-nities and local govern-ment, would face £30bn,or 5.4 per cent, on aver-age, in cuts underCameron’s plans.

He added that such

Think tank saysWhitehall willface bigger cuts

BY LAUREN FEDOR departments could expect a total cumu-lative cut of nearly 33 per cent over theeight years from the start of the firstCameron government in 2010.

And those cuts could prove even moredrastic, Emmerson said, if the govern-ment continued to meet Nato’s defencespending target of two per cent of GDP.Leaving defence spending unchangedwould increase the cuts for other depart-ments over the next three years to 18.7per cent, and the cuts over the eightyears from 2010–11 to nearly 37 per cent,

Emmerson said.The IFS warnings came on the

same day as chancellor GeorgeOsborne announced £3bn of newin-year cuts for unprotectedWhitehall departments. Osborne

said the cuts would come fromtightened budgets, efficiency

savings and the sell-off ofvarious governmentproperties acrossdepartments.

Osborne is wasting notime implementing cuts

DIVING European repo trading volumesexactly offset a rise in business in USinstruments, brokerage Icap saidyesterday.

Its data for May shows no growth inoverall electronic broking volumes,down from six per cent growth in April.

US Treasury volumes climbed 13 percent on the year to an average dailyvolume of $184.2bn (£119.7bn).

US repo volumes increased nine percent to $217bn, according to the figuresfrom Icap, a brokerage headed byMichael Spencer.

And EBS volumes rose 30 per cent to$95.9bn in the month.

But European repo volumes fell 24per cent on the year to $193.7bn.

As a result, overall electronic brokingvolumes held flat at $690.8bn.

By contrast overall volumes in Aprilrose on stronger US performance andonly a one per cent dip in Europeanvolumes.

Fall in Euro repovolumes wipeout US increases

BY TIM WALLACE

Michael Spencer heads up brokerage Icap

Rick Perry in US Presidential bidn Former Texas governor Rick Perry hasthrown his hat into the ring to become thenext Republican nominee for US president.Perry also ran for president in 2012, but hiscampaign derailed in a GOP debate in whichhe forgot the third of three governmentagencies he wanted to scrap. Perry’sannouncement came on the same day thatJeb Bush indicated he would formalise hisown candidacy later this month. The twomen join a crowded race that alreadyincludes nine other declared candidates.

Yahoo shuts down map servicen Yahoo said it was shutting down a few ofits services, including Yahoo Maps, as itrealigns itself to focus on search and digitalcontent. Maps.yahoo.com will shut down bythe end of this month, Amotz Maimon,Yahoo's chief architect, said in a blog post,as the service faces intense competitionfrom Google. Yahoo’s search and otherservices including photo-sharing websiteFlickr will still support Yahoo Maps, Maimonsaid. Yahoo said the Philippines homepagewould close, as will Yahoo Music in Franceand Canada and Yahoo Movies in Spain.

OPEC warned shale here to stayn The US shale revolution that sent oilprices tumbling last year is here to stay, andcan withstand the effects of cheap Brentcrude, the head of US major ConocoPhillipssaid yesterday. Ryan Lance spoke at aseminar hosted by the Organisation ofPetroleum Exporting Countries (Opec). Theorganisation has been holding a series oftalks over the past two days, ahead oftoday’s meeting in Vienna during which it isexpected to decide to maintain its currenthigh levels of production. Brent Crudetraded at around $64 yesterday.

IN BRIEF

Sainsbury’s chiefexecutive Mike Coupe


SAINSBURY’S chief executive MikeCoupe missed out on an annual bonuslast year after the supermarket chainfailed to meet sales and profit targets.

The retailer’s annual report pub-lished yesterday revealed that Coupe’sannual pay package dropped to £1.5min the year to March, down from £2mthe previous year, when he was stillcommercial director.

Annual bonuses were not awardedto Coupe or any senior directors,however he was granted £458,000worth of deferred share awards,which will pay out in 2017,according to the report.

Coupe took over from his pred-ecessor Justin King in July lastyear just as Sainsbury’s began tofeel the effects of food pricedeflation and the inten-sifying price warlaunched to stem theflow of shoppers todiscounters Aldi andLidl.

Sainsbury bossmisses out onpayday perks

BY KASMIRA JEFFORD Sainsbury’s posted a £72m loss in theyear to 14 March – its first loss in adecade – after booking £753m ofcharges, mainly related to write-downson the value of its property.

Its dividend also fell 23.7 per cent onlast year, after changing its policy inNovember to help strengthen its bal-ance sheet and invest £150m in lowerprices.

Despite seeing his total pay decrease,Coupe will receive a 1.75 per cent pay

rise this year, taking his annualsalary for the year to next Marchto £915,750 – up £15,750 butstill below his predecessorKing’s pay of £960,000 the previ-ous year.

Chief financial officer JohnRogers took home a total payoutof £1m compared with £1.7m in

2014. His base salary willincrease to £610,500

this year.

MARKS & Spencer chief executiveMarc Bolland has pocketed a bonusfor the first time in two years afterthe high street retailer reported itsfirst rise in annual profits in fouryears last month.

The Dutchman, who joined M&Sin 2010, received a £596,000 bonuson top of a basic salary of £975,000,taking his total pay package to£2.1m, M&S’s annual report shows.

Last year Bolland and all 80,000staff had to forgo a bonus afterM&S failed to hit performance

Marks & Spencer’s senior execscollect first bonus in two years

Bolland said M&S had “taken a step in the right direction” after a pick-up in annual profits

BY KASMIRA JEFFORD targets. The year before he receiveda bonus of £829,000.

Steve Rowe, executive director ofM&S’s fast-growing food divisionhas received a larger bonus thanBolland at £653,000, giving him atotal package worth £1.4m.

In contrast John Dixon, who wasbrought over from food to head upthe ailing general merchandisedivision two years ago, received£217,00 on top of his £600,000salary.

Staff will also receive a cashbonus, however the details are notdisclosed by M&S.

TROUBLED British giant Tesco hashired HSBC to explore a sale of itsSouth Korean operations, valued atabout $6bn (£3.9bn), according to Citysources familiar with the matter.

The appointment of an adviser isTesco’s first concrete step towards asale of some Asian assets, whichanalysts think could be its best bet asit looks to cut debt and fund aturnaround plan at home.

The supermarket group, whosecredit rating was cut to “junk” statusby Moody’s and S&P in January, isbattling to recover from anaccounting scandal and reversemarket share losses in Britain todiscount chains Aldi and Lidl.

In April, the group announced a£6.4bn annual loss – the biggest inits 97-year history.

South Korea is its largest businessoutside Britain, with more than 400stores, 500 franchise stores and morethan 6m customers a week.

The division has attracted severalbid enquiries in the past, which hasencouraged Tesco to explore a formalsale process.

Global buyout firms KKR, CarlyleGroup, CVC Partners and TPG as wellas Asian buyout firms including MBKPartners are likely bidders for thebusiness, the sources said.

Tesco appointsHSBC for SouthKorea unit sale

BY DENNY THOMAS

Reuters

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MORRISONS’ new managementpledged to review its pay policies afterthe supermarket faced a shareholderrevolt yesterday over the size of thebonus awarded to its ousted chief exec-utive Dalton Philips.

More than a third of shareholders(35.6 per cent) rejected the retailer’sremuneration report, accordingto proxy voting resultsrevealed at its annual gener-al meeting in Bradford.

Philips was forced to stepdown in February, afterfailing to halt the declinein sales at the grocerduring his five years incharge.

He walked away with a £1mbonus on top of a base salary of£850,000, a £239,000 pension and bene-fits pot as well as a £1.1m payoff.

Andrew Higginson, a former Tescoexecutive who joined the board inOctober, noted concerns over Philips’payout but said this was the “mini-mum, legally” that could be paid.

However he also added that bonuses

BY KASMIRA JEFFORD were deserved, given that it managedto hit a number of performance targetsdespite the turmoil it faced last year.

Sir Ken Morrison, the son of thesupermarket’s founder, who ran thechain for over 50 years, voiced his sup-port for new chief executive David Pottsand urged investors to give manage-ment time to turn sales around.

“It’s a big job to restore thecompany’s fortunes, please

be patient and give man-agement some breath-

SPORTS Direct yesterday named aninsider as interim chief financialofficer after leaving the post vacantto the concern of shareholders forover 18 months.

Matt Pearson, Sports Direct’sgroup financial controller, whojoined the retailer from EY in 2007,has been promoted to the boardwith immediate effect.

The retailer, controlled byNewcastle United owner MikeAshley, has faced criticism from top

BY KASMIRA JEFFORD shareholders Odey AssetManagement and Standard Lifeover its slow response to replacingBob Mellors, who retired inDecember 2013, on health grounds,after almost a decade as chieffinancial officer.

“After a thorough process andfollowing soundings from leadinginstitutions I am delighted thatMatt has been appointed actingchief financial officer and is to jointhe board,” Sports Direct chairmanKeith Hellawell said in a statementyesterday.

Chief executive Nick Wood with his two Bichon Frise dogs Oscar and Louis

Sports Direct hires finance chief18 months after Bob Mellors exit

Investors revoltover Morrisons’ex-chief’s pay

PETS AT HOME yesterday posted arecord set of full-year results and saidit enjoyed a strong start to the year asowners splashed out more ongrooming services and specialnutrition products for their pets.

Underlying core earnings for theyear to 26 March rose 10 per cent to£121m, in line with expectations, onrevenue up 9.6 per cent to £729m.

Sales at stores open over a year

BY KASMIRA JEFFORD were up 4.2 per cent, the firm said,helped by “excellent progress” of itsAdvanced Nutrition products andservices such as grooming andveterinary care.

Chief executive Nick Wood, whoowns two Bichon Frise dogs calledOscar and Louis, said the trends inpet nutrition was similar to that inthe “human market”, with ownersincreasingly feeding their pets betterquality food such as organic orhigher-meat content alternatives.

Food revenues grew 9.8 per cent. Pets at Home has 400 stores, 179

grooming salons and 330 vetinarypractices after buying Vets4Pets in2013. It aims to have 500 UK stores,more than 700 vet practices and 300groom rooms in the medium term.

Though still only 11 per cent ofrevenues, its services arm grew by 25per cent last year to £63m. As a resultthe group appointed the division itsown chief executive, Sally Hopson,who has led its veterinary arm.

Pets at Home is keeping poocheshappy as it posts surge in profits

Dalton Philips’ pay andbonus was criticised

ing space,” 83-year-oldMorrison said. His show of support for

the current team contrastswith his tirade against Philips at last

year’s AGM, when he described the for-mer chief executive’s strategy as “bull-shit” in front of shareholders.

Potts has already made his mark byslimming its head office, hiring morepeople on the shop floor, and focusingon its core supermarket business.


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HOUSE prices dropped in May, one ofthe UK’s major mortgage providerssaid yesterday, but analysts expect aquick rebound.

Houses lost 0.1 per cent of theirvalue from April to May, according tofigures published by Halifax.

However, house prices are up 8.6per cent compared to May 2014.

Nationwide said earlier this weekthat price growth was 4.6 per cent.While the two survey’s differ in theirmethodologies, giving varying fig-ures, both show price growth run-ning above income growth. Housingexperts point to the fact that thesupply of housing has not kept upwith demand.

“House prices fell in May as pre-election uncertainty led to less activ-ity in the market and aconsequential dipin house price rises. Now that theresult of the election is known,demand will increase as those whohave been holding off from enteringthe market return,” said Stephen

BY CHRIS PAPADOPOULLOS Smith, a director at the Legal andGeneral Mortgage Club.

The current lack of supply meansthat an increase in demand willdrive up prices in the remainder ofthe year as more people compete forfewer properties. The Governmenthas promised to buildmore houses and we need to seeaction on this now so that a strongpipeline of new homes is in develop-ment. This will keep prices afford-able and make homeownership anachievable goal for people looking tobuy.”

Economist Martin Ellis fromHalifax said: “Housing supplyremains extremely tight with thestock of properties available for salecurrently at its lowest level for manyyears. At the same time, ongoing eco-nomic recovery, increasing employ-ment, real earnings growth and verylow mortgage rates are all support-ing housing demand. This combina-tion has kept annual house priceinflation well above earnings growthalthough activity levels are sub-dued.”

NEW GUIDANCE has beenpublished on the regulation ofadverts for payday loan products,designed to prevent ads fromtrivialising taking out short-termhigh-cost loans.

The Committee of AdvertisingPractice’s rules, which come intoimmediate effect, say that ads mustbe responsible to the audience andsociety, and should not encourageconsumers to make ill-consideredor rushed decisions about loans.

BY ASHLEY KIRK There are warnings that ads riskbreaching the rules if they: suggestloans are a suitable means of solvingongoing financial concerns; condonenon-essential or frivolous spending;or unacceptably distort the seriousnature of payday loan products.

Payday loan company Wonga haspreviously come under fire for suchtactics, leading to it scrapping itsadvertising puppets last year.

The new guidance, publishedyesterday suggests that animation,catchy upbeat jingles and humorousthemes are used with care.

Prices are up 8.6 per cent year-on-year in May despite falling in the run up to the election

New guidance issued for paydayloan company advertisements

House prices setto be bolsteredby scant supply

THE HOUSING shortfall in Englandis set to reach 1m homes within 10years, according to new researchfrom a leading estate agent.

Savills said that England faces anannual housing shortfall of 100,000,a problem that the estate agent saidcan only be solved by thegovernment boosting the supply ofdevelopment land in high-demandlocations and supporting more

BY LAUREN FEDOR property developers.Savills estimated that with

government support, the number ofnew homes started per year inEngland could increase from140,500 - the latest figures for theyear to the end of March - to 205,000by 2020.

“Although we have seen anincrease in new homes starts overthe last two years, progress couldcome to a halt if housebuilders arenot able to replenish their supply of

consented land, particularly in thehigh-demand markets of Surrey,Hampshire, Berkshire,Cambridgeshire and parts ofSuffolk,” Susan Emmett, Savillsresidential research director said.

Savills said that while growth isdependent on a larger number ofplanning consents in high-demandmarkets, it will also requiregovernment intervention on thedemand side with the continuationof such programmes as Help to Buy.

Savills says housing gap to hit1m without more being built


MEDICAL device manufacturer Smith &Nephew was forced to announce itsplans to withdraw one of its hip-replacement systems as it required toomany post-operative follow-ups.

The 46mm model in question will bewithdrawn from its Birmingham HipResurfacing system due to concerns itdoes not meet the standards set byhealth watchdog, Nice.

Smith & Nephew said is was not advis-ing proactive revisions for existingpatients unless required for clinical rea-sons.

The firm also said the removed prod-ucts accounted for around one per centof Smith & Nephew’s global hipimplant revenue in 2014, and 0.1 per

Shares tilt southas medical giantpulls hip device

BY ADAM HIGNETT cent of group revenues and the actionwill have no impact on guidance for thefull year.

Despite these reassurances, shares inthe company fell by over 1.1 per cent toclose down at 1,440p.

Johnson Matthey bottom linelifted by benign UK tax regimeSUSTAINABLE tech firm JohnsonMatthey said its annual resultswere in line with expectationsyesterday as falling revenues failedto stop growth at the bottom line.

The UK-based company, which isthe world’s largest of autocatalysts,reported strong growth in sales ofits emission control technologiesand processing technologies.However, these gains were offset by

BY ADAM HIGNETT weak growth in its precious metalsdivision and increased losses innew businesses. Johnson Mattheysaid it expected performance inprecious metals to continue tosuffer in the new financial year as aresult of the sale of its gold andsilver refining business and due todifficult trading conditions.

The company also reportedballooning debt, which climbedfrom £792m to £994m. The firmattributed this to an increase in

working capital brought about bybusiness growth and higherprecious metal inventories.

Overall revenues for the companydeclined 10 per cent to £10bn.However positive changes inunderlying taxation, specificallycorporation tax, sent pre-tax profitsup three per cent to £440m.

Chief executive Robert MacLeodsaid the firm will continue to investin research and is well positioned todeliver growth for shareholders.

1,140

1,150

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29 May 1 June 2 June 3 June 4 June

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NEW CAR sales are being tipped byanalysts to break their all time annu-al record this year after theyincreased for the 39th consecutivemonth in May.

Brits registered 198,706 new carslast month, according to data fromthe Society for Motor Manufacturersand Traders (SMMT).

The figure is up 2.4 per cent on thesame month last year.

It takes the number of new carsregistered so far this year to1,119,072, a climb of 5.7 per cent onlast year’s figure.

Sales have been boosted by a num-ber of factors. One is risingconsumer confidence as UK unem-ployment continues to fall and theeconomy grows. Another is due tostruggling manufacturers in Europeoffering more attractive financepackages. Suppliers have found iteasier to offload vehicles usingcheaper credit rather than cuttingback on production and firing staff.

“May was another good month for

BY CHRIS PAPADOPOULLOS new car sales, up 2.4 per cent, as thecarmakers continue to support themarket with cheap credit. With ris-ing consumer sentiment and astrong pound it looks likely that themarket will continue to performwell over the summer. It is still pos-sible that UK new car sales will breakthe all-time record of 2.58m cars soldin 2003,” said John Leech, head ofautomotive at financial services firmKPMG.

There was also a surge in the regis-trations of ultra-low emission vehi-cles. Only 2,838 were bought in May2014 which has now increased to11,842.

“The remarkable growth indemand for plug in vehicles isexpected to continue as the range ofultra low emission vehicles on saleincreases,” said SMMT chiefexecutive Mike Hawes.

However, Hawes is less inclined tobelieve the current growth will carryon for long. “We anticipate a naturallevelling out of the overall new carmarket throughout the remainder of2015,” he said.

FOREIGN exchange providerMoneycorp increased its grossprofits by 26 per cent on the yearin the first quarter of 2015, itsfinancial results show today.

Its earnings rose from £22.7m inthe first three months of 2014 to£28.6m in the same period of thisyear.

Retail growth was relativelysubdued, with revenues up fiveper cent to £12.6m.

But its international payments

BY TIM WALLACE arm recorded growth of 49 percent with revenues coming in at£15.9m.

“Confidence among SMEs (small-and medium-sized enterprises) ishelping to boost interest in bothimport and export markets, andthe strong sterling is encouragingUK investors to take advantage ofoverseas property opportunities,”said Moneycorp’s chief executiveMark Hogan.

“The result for Moneycorp isgrowing demand from corporateand private clients.”

GREENE King’s proposals to theCompetition Market Authority(CMA) regarding its acquisition ofthe Spirit Pub Company reachedconsultation stage yesterday.

The consultation comes afterthe regulator raised concernsabout the £774m merger shortlyafter it was announced in May. Atthe time the authority said thecurrent proposal would

BY ADAM HIGNETT “substantially” lessen competitionin the pubs sector butpointed to difficulties in only16 locations.

In order to comply andavoid a more detailed phaseII merger investigationGreene King offered to sell 16pubs which would be divestedas properties, together withthe relevant pub name and, formanaged pubs, the transfer ofstaff.

The CMA has until 21 July toconsider accepting theundertaking, or a modifiedversion of it and has invitedinterested parties to maketheir views known by 18June.

Of the identified pubs thefirm is willing to divest, halfare in Oxfordshire, with theremaining pubs mainlyconcentrated inNottinghamshire.

Moneycorp profits up on boomin international payments unit

Confident Britsset for new carpurchase record

Greene King competition probemoves on to consultation stage

Shares plunged in London-based spirits firm Distil yesterday after the maker of JagoVanilla Cream Liqueur recorded a disappointing year ending 31 March. Revenues fell from£2.4m to just £666,000. However, the firm’s pre tax losses narrowed to £289,000.

DISTIL SHARES FALL AS LIQUEUR SALES STALL

Young’s Seafoodremains on its own


YOUNG’S Seafood, the Grimsby-basedfish manufacturer, will be hived offinto a standalone company as part of atakeover of its owner Findus Group.

Consumer group Nomad Foods,which owns fish finger maker BirdsEye, on Wednesday said it was in exclu-sive talks with the owners of FindusGroup to buy the group.

Findus yesterday said Nomad wasconducting due diligence on thegroup, with a view to buying FindusNordic andFindus SouthernEurope.

A deal wouldgive the groupFindus’ food oper-ations in Sweden,Norway, Finland,Denmark, France,Spain andBelgium.

However, Findusoperations in theUK are not includ-

Young’s Seafoodto go it alone aspart of takeover

BY MICHAEL BOW ed, meaning Young’s Seafood and theuse of the Findus brand in the UK willremain with Findus’ current owners,which include Lion Capital and JPMorgan. Findus has its headquartersin London.

Centerview Partners is acting asexclusive financial advisor to LionCapital and the other shareholders.

Nomad Foods, which is 22 per centowned by well known hedge fundinvestor Bill Ackman, was founded lastyear by Noam Gottesman and MartinFranklin.

Franklin is thetycoon behind theJarden conglomer-ate, the owner ofsandwich-toastermaker Brevillewhile Gottesmanco-founded hedgefund GLGPartners.

PRIVATE equity firm 3i announcedit had agreed to invest around€250m (£183m) in Weener PlasticPackaging Group (WPPG) yesterday.

WPPG, which specialises in thedesign of packaging products forthe personal care, food andbeverage markets operates in 15countries, employing 2,000 people.

3i is expected to supportmanagement at the German-basedfirm, which generated sales ofapproximately €270m in 2014, to

Private equity firm 3i in €250mpackaging company investment

BY ADAM HIGNETT secure further growth and build onits international connections.

It will do this by installing LeslieVan de Walle, a former chiefexecutive of Rexam, as chairman onthe advisory board bringing withhim his deep design sectorknowledge and contacts in thepackaging sector.

Roel Zeevat, chief executive ofWPPG said: “With the support of3i, we will be able to take ourcompany’s development to the nextlevel by fostering growth andexpanding our global footprint.”

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John Laing Environmental pricesn John Laing Environmental Assets Groupyesterday priced its £45m fundraising at101p a share, a 2.9 per cent premium to thefirm’s value of assets. The group said in Mayit would place shares with investors to fundthe acquisition of Branden solar park andCarscreugh and Wear Point wind farms. The101p price is a discount to yesterday’sopening price of 104.5p. The company isusing Winterfloods to place the shares withinvestors.

Dolphin Capital raises £46m n Dolphin Capital Investors yesterdayclosed a £46m fundraising it unveiled onWednesday. Liberum and Panmure Gordonplaced shares at 21p each, which was a 6.67per cent discount to the firm’s share price.The junior stock market listed propertycompany owns a portfolio of coastaldevelopments in places like Cyprus, Greece,Croatia and Turkey designed for holidaymakers. Top shareholder Third Point tookabout 23 per cent of the new shares.

NextEnergy set to list in Londonn NextEnergy European Solar Utility intends tolaunch an initial public offering to list on theLondon Stock Exchange’s main market. Thecompany is an investment firm focusing onutility-scale energy assets in the EU, excludingthe UK. The firm will receive investment advicefrom NextEnergy Capital (NEC), and chiefexecutive Michael Bonte-Friedheim said: “Theskills of the NEC Group... give the companyaccess to the network to deploy capital quicklyto convert its pipeline into a large portfolio.”

IN BRIEFSales have fallen atUS clothes retailerJ Crew, whichopened its flagshipEuropean store inLondon in 2013. ItsJ Crew brand,which accounts foraround 90 per centof total sales, faceda sales dip of fiveper cent to$508.7m in thequarter ending 2May. Its net losswidened to$462.4m, from$30.1m this timelast year.

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THE BANK of France expects the coun-try’s economy to pick up this year, put-ting an end to three years ofstagnation.

Meanwhile, unemployment fell forthe first time since 2012.

The Eurozone’s second largest econ-omy surprised most economists whenit grew 0.6 per cent during the firstthree months of the year, faster thanthe UK and Germany.

The Bank of France now expects it togrow 1.2 per cent this year, rising to 1.8per cent in 2016, boosted by cheapenergy and a low euro exchange ratewhich helps exporters, it said yester-day. It marked the bank’s first publica-tion of its medium-term growth andinflation forecasts.

The prediction is above the govern-ment’s, which could mean thatPresident Francois Holland will find it

France expectshigher growth

BY CHRIS PAPADOPOULLOS easier to meet budget deficitreduction targets.

In a further sign of a turnaround inFrench economic fortunes, unemploy-ment ticked down to 10.3 per cent inthe first three months of the yearfrom 10.4 per cent three months earli-er, according figures released by Inseeyesterday.

Economist Dominique Barbet frominvestment bank BNP Paribas playeddown the healthy jobs figures.

“We do not believe Insee data meanthere is a profound improvement. Theimprovement is reflecting the rise intemporary jobs, underground econo-my and an increased number of dis-couraged workers who are notregistered as unemployed peoplebecause of lack of proactive actions tofind a job, which can be understand-able considering that 66 per cent ofjob seekers have been looking for awork for more than one year,” he said. Higher growth would help President Francois Hollande to hit EU budget deficit targets

Sierra in African Lion partnershipn Mineral sands producer Sierra Rutile saidit has entered into an agreement withCarmanor Limited, an emerging-marketsfocused agricultural company, yesterday.The partnership will see Carmanor take a 75per cent interest in Sierra subsidiary AfricanLion if it successfully develops the businesswithin a predefined timeline.

Novartis declines to buy Gamidan Swiss drug giant Novartis announced itwould not buy Israel based stem cellspecialist Gamida Cell yesterday. The newsfollows the $35m investment made byNovartis into the firm last year which gave itthe option of paying shareholders anadditional $165m if it exercised its option tobuy the company.

Audioboom to beat expectationsn Audioboom said it was on track to meetor exceed full-year targets yesterday afteradding 650 new content partners in the lastquarter, taking its total content partners toover 3,000. In addition, it added nearly600,000 registered users during thequarter, taking the user base to over 4m.Shares in the firm closed up 3.45 per cent.

IN BRIEF

FRIDAY 5 JUNE 201515

THE BBC is understood to have offered formerTop Gear stars James May and Richard Hammonda multi-million pound deal to stay.

The pair have both been offered deals in theregion of £1m a year, according to The Times,contracts that would make them two of the mostwell-paid talents on the BBC’s books.

Top Gear lost its iconic presenting team ofwhen May and Hammond followed JeremyClarkson out of the door when the abrasive hostwas fired for assaulting a producer.

Together the trio helped Top Gear become themost popular show on BBC 2, with the channelimmediately losing 5m viewers the first weekendthe show was pulled off the air. Hammond, Mayand the BBC declined to comment on any deal.

BBC lures ex-TopGear hosts with £1m

BY JOE HALL

THE GOVERNMENT needs to cut more red tape,small businesses have said.

Reducing the amount of bureaucracy and reg-ulatory formalities – that can be a big burden tosmaller firms – was listed as a top priority by 51per cent of over 1500 surveyed small and medi-um enterprises (SMEs), according to figuresreleased today by Lloyds Bank.

It comes despite Prime Minister DavidCameron launching initiatives such as the RedTape Challenge which claims to have savedsmall business £300m in a year.

That sentiment has carried throughto the other side of the election, withbusiness secretary Sajid Javid recent-ly expressing his desire to cut redtape for business,

“Businesses have welcomed theGovernment’s recent commit-ment to cut red tape and theyrecognise it as a priority.However they will want reas-surance that their concernsabout skills, investment andexports will also beaddressed,” said Tim Hinton,a director at Lloyds Bank.

Small firmswant morered tape cut

BY CHRIS PAPADOPOULLOS

TRINITY Mirror subsidiary MGN, under whichthe Daily Mirror newspapers operate, is seekingthe right to appeal the fine that was imposed onit on 21 May over phone hacking.

In a statement released yesterday, TrinityMirror said that while the firm accepted itshould pay damages to victims of phonehacking, “we believe that the basis used forcalculating damages in the judgment isincorrect and the amounts awarded by theJudge are excessive and disproportionate.”

The publisher had said at the time of theoriginal judgement that it felt that the scale ofthe damages awarded was excessive.

BY CHARLOTTE HENRY

Mirror to fightits hacking fine

New business secretary SajidJavid wants to cut red tape

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“Sorry” may be the hardest word, but trust is slipping off thetongue faster than ever. It’s use in company documents has risen

more than eight-fold in the past decade, according to a study by theChartered Institute of Management Accountants (CIMA) alongside RobertPhillips, author of “Trust me, PR is dead”. The two argue that the focus ontrust is not always backed by corporate action. Phillips said: “Trust oftenspoken is trust rarely earned.” In annual reports of FTSE 100 companiesover the last decade, mention of the T-word rose from 38 to 317. Thephrase “building trust” appeared just once in 2005, in a single annualreport; in 2013 it was mentioned 18 times. Phillips argues that bankswould be better to try earning trust rather than talking about it – byadopting the John Lewis Partnership employee ownership model, ceasingextravagant bonuses, and charging retail banking customers.

In an age where street-food reigns supreme in the City, it’s a reliefto know you can still find a decent meal for over £1,000. Today,

fine art aficionados Christie’s announces plans to host a series of dinnersfor its clientele of high net-worth wine buffs. The auction house isdelivering three slap-up meals to loyal bidders from October toDecember. Prices range from £1,300 per-head to £1,500 for its “1945Vintage dinner”, which will pour out 60-year old vino – older than someof the business’s customers. Stephen Hancock, a director at WittingtonsInvestments, who has been to the event before, said: “They areawesome. Sometimes there’s an owner of a fancy Chateau to talk youthrough the tasting. They hold them in their fancy boardroom in KingStreet.” So in spite of the 1945 vintage timeline, there’s clearly no post-war rationing expected here!

HSBC has been in the headlines for allthe wrong reasons lately, so imaginethe sheer relief on the face of itsPrivate bank chief, Francesco Morra,as Private Banker International (PBI)handed the bank an award for out-standing work with internationalclients.

The PBI London Awards, dedicatedmainly to the UK and European mar-kets, were set up to congratulate insti-tutions setting new standards in thewealth management industry.

They say good things come in threes,so HSBC will no doubt be awaiting itsthird bit of luck for the day after Swissprosecutors dropped their investiga-

HSBC PrivateBank breaks arun of bad press

tion into its private bank yesterday.Patrick Humphries, HSBC’s head of

communications, said: “Any goodnews is positive. There’s been a wholebunch of bad news about HSBC that’svery historic. What we’ve been doingis focusing on developing the businessof our commercial clients.

“We’ve made really good progresswith our private banking sector, pro-viding us with a strong base to moveon from and get in shape.”

The judging criteria include demon-strating a unique strategy for businessgrowth, superior customer service,and strengthening the reach of theirbrands.

LIFE IN THE FAST LANE AT CANARY WHARF SHOW

Time for a mid-life crisis? Thinking about trading in for a younger model? You’re in luck! Motorexpo holdsits 20th annual free-for-all car show in Canary Warf next week. From Monday, workers in the financialvillage even get a chance to drool over their dream car before showing off to their friends by test drivingit around the Canary Wharf estate. Footfall is expected to exceed 410,000 this year, as Motorexpo willtease financiers with Lamborghinis, Ferraris and Jaguars. Hot wheels to look out for include theLamborghini Aventador, the Ferrari 458 Speciale and the Jaguar XE, all making their UK debut next week.

Time for die-hard Hammers to update their match-day wardrobe; social trading network eToro has

announced it will partner West Ham United nextseason. The social investment network, withover 4.5m international users, announcedthe deal today, ahead of West Ham’smove to the Olympic stadium in 2016.The deal has come at a good time foreToro, which has just secured fundingfrom three major banks. EToro says usersof its bespoke platform are “tapping intothe wisdom of the crowd and encouragingpeople to connect with one another to discuss,trade, invest, learn and share knowledge acrossthe network’s platform.”

EDITED BY EDITH HANCOCK


LOGISTICS firm Wincanton blamedlower fuel prices and retailers’restructuring plans for its poorrevenue performance in the year to31 March.

Group revenues were up by just0.9 per cent to £1.1bn, and thecompany said: “A strongperformance on new business winsand renewals was partly offset bythe impact of certain site closures asretailers reshaped their distributionnetworks and also the impact oflower fuel prices as fuel is largely apass through cost to Wincanton.”

Profit before tax tumbled from£34.9m in 2014 to £24.9m, althoughunderlying pre-tax profit grew by22.7 per cent from £25.6m to£31.4m. Net debt was reduced by11.2 per cent, to £57.6m.

Wincanton boss Eric Born saidthe growth in revenue and lesseneddebt was “attributable to continuedoperational excellence, deliveringvalue added services and our focus

Wincanton hitby oil price andretailers’ plans

BY CAITLÍN MORRISON on close customer relationships”.Analysts at Numis noted that

operational issues at Pullman FleetServices have been a drag on groupearnings, but said this did notdetract form the “long term equitystory”.

In its outlook for this year,Wincanton said it is placingincreased emphasis on winning newbusiness, as well as returning thePullman business to profitability.

Shares in the company were downby 0.44 per cent yesterday.

EASYJET yesterday announced a7.2 per cent rise in passengers forMay 2015, compared to May 2014.

The budget airline flew 6.4mpassengers last month, comparedto 6m the year before.

Its load factor, the averageportion of capacity an airline hasfilled with travellers, was up to91.2 per cent, from 89.4 per cent.

Passenger numbers were also up6.1 per cent for the rolling twelvemonths to May, compared withthe 12 months up to May 2014.

Passenger numbers are up forEasyjet as summer approaches

Low cost carrier Easyjet welcomed more passenger onboard last month up from May 2014

BY CHARLOTTE HENRY Last month the carrierannounced a pre-tax profit of£7m for the six-month periodending on 31 March.

It is trying to turn a cornerafter what boss Carolyn McCallcalled a “horrible month” inApril, due to the French airtraffic controllers’ strike.

Easyjet is preparing to retrofitits A320 aircraft next year, andwill cram six extra seats into itscabins by summer 2018.

Shares in Easyjet ended the dayup 0.63 per cent, at 1,592p ashare.

BUDGET Airline Wizz Airannounced a 20 per cent rise inpassengers for last month,compared to May last year.

Passenger numbers were up to1.6m, from 1.3m last year. This wasin part helped by the introductionof two new A320 aircraft, whichhave 180 seats each.

The firm also announced that

BY CHARLOTTE HENRY capacity was up to 1.8m seats, anincrease of 18 per cent from 1.5min May 2014.

Revenue passenger kilometres,the distance travelled by payingcustomers, was also up by 20 percent to 2.4m.

Load factor, the amount ofcapacity that an airline actuallyuses, was up to 89 per cent from87.5 per cent. The measurement isparticularly important for low cost

airlines who do not have higherpriced, first-class tickets.

Wizz Air has launched a newPlus Fare category, giving somecustomers a higher end experience,with priority boarding included.

It will also launch a new base inDebrecen, Hungary, its 22nd.

Furthermore, five new routes – 3in Hungary and two in Lithuaniawill launch in December andSeptember respectively.

MONARCH airline yesterdayreported a half year loss of £69.9m,a 37.7 per cent improvement on thethe loss of £110.6m for the sametime last year.The airline is coming through aturbulent time, and undergoing arestructuring programme, toreduce £200m of costs.

Chief executive AndrewSwaffield explained: “We remainpositive that the changes we have

Monarch emerges from slumberas traveller numbers taking off

BY CHARLOTTE HENRY made to the structure of the group,the network and our cost base haveset us in good stead to achieve theturnaround.”

The airline succeeded inreducing losses over the winterperiod by £40m. Monarch said£30m of this to the success of itsturnaround programme, while theother £10m was down to thereduction in fuel costs.

Capacity fell by four per cent,while passenger traffic was downby five per cent from 2014.

Wizz Air unveils new routes andfares as passenger numbers soar

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Gatwick spent £2.35m on noisen Gatwick airport yesterday announcedthat it has spent 95 per cent of theapplicable budget on noise insulation inthe last year. It is offering acousticinsulation worth £3,600 to every eligiblehousehold. It has committed £2.35m so far,and has set aside a total of £7.2m for thenoise insulation scheme. The airport,which is locked in a battle with rivalHeathrow to gain a runway, has more thandoubled the number of homes eligible forthe scheme.

SciSys issues profits warningn IT firm SciSys yesterday issued a profitwarning. In a market statement, the Aim-listed company said it “is experiencingdifficulties in one major fixed pricedevelopment project in its EnterpriseSolutions and Defence (ESD) division.”Shares in the firm plummted 29.7 per centon the back of the announcement, endingthe day at a value of 58p a share, andhaving traded as low as 36p a share duringthe course of the session.

Air Charter firm sees sunny skiesn Charter aviation firm Air Partneryesterday held its annual general meeting.At the meeting, chief executive Mark Briffasaid statement: “Trading has continued atsimilar levels, and given our forwardbookings, we remain optimistic about thegroup’s prospects for the remainder of theyear.” The firms shares closed down 0.93per cent at 386.25p a share. It announcedthe acquisition of Cabot Aviation on 13 May.

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Madrona taps Amazon, Microsoftalumni for new £194m ventureSEATTLE-based Madrona VentureGroup said it has raised $300m(£194m) for a new fund, its sixth,drawing on the growing start-upcommunity in the backyard it shareswith Amazon and Microsoft.

About half the entrepreneurs inits previous fund, raised three yearsago, have worked at one of those twoSeattle-area technology leaders,Madrona partner Tim Porter said.Those entrepreneurs benefit fromAmazon’s and Microsoft’s

BY SARAH MCBRIDE diversification beyond their narrowbeginnings.

“If you go back certainly 10 years,Amazon was an e-tailer, andMicrosoft was Windows and Office,”Porter said in an interview onWednesday, referring to the popularsoftware programs. “Today they’re inso many different businesses.”

Those newer businesses includeentertainment; variousinfrastructure plays; and the remotedata storage that has become knownas the cloud.

Madrona, then a young venture

firm, was an early Amazon investor.Today, it manages $1.3bn in assets,including high-profile activeinvestments that predate startupsspawned by Amazon or Microsoft.

Those include Redfin, a real estateagency, and Apptio, an analyticsfirm, whose bosses had not workedat Amazon nor Microsoft beforelanding at their current ventures.

Madrona generally makes seedinvestments of under $1m, andfollows up with $2m to $5m for thenext investment stage, known asSeries A.

AN ACTIVIST US hedge fund yesterdaythrew a spanner in the works ofSamsung Group’s restructuring byopposing a merger that would allowthe controlling Lee family to consoli-date their holdings ahead of a leader-ship transition.

In a rare instance of investoractivism in South Korea, hedge fundElliott said it had built its stake in con-struction firm Samsung C&T and saidit opposed Cheil Industries’ $8bntakeover offer because it was too low.Both are Samsung Group affiliates.

The move is the first significant chal-lenge to a merger that many believe iscrucial to a smooth transfer of powerat South Korea’s biggest family-runconglomerate, after patriarch LeeKun-hee, 73, fell ill a year ago.

It could also galvanize oppositionto the deal from other investorsamid growing complaints thatSouth Korea’s top conglomer-ates put their founding fami-lies’ interests beforeshareholders.

“Elliott believes that CheilIndustries’ proposedtakeover of Samsung C&Tsignificantly undervalues

Activist Elliottto halt Samsungrestructure bid

BY JOYCE LEE Samsung C&T and the terms are nei-ther fair to nor in the best interests ofSamsung C&T’s shareholders,” thefund, Samsung C&T’s third-largestshareholder with a 7.1 per cent stake,said.

The fate of the deal may ultimatelydepend on Korea’s National PensionService (NPS), Samsung C&T's topshareholder with about a 10 per centstake. NPS had yet to decide onwhether to accept the offer, aspokesman said.

The merger of Cheil and SamsungC&T would consolidate stakes bothcompanies hold in key SamsungGroup affiliates such as smartphone

giant Samsung Electronics under asingle entity controlled by

heir apparent Jay Y. Lee,46, and his two sis-ters.Elliott had owned

4.95 per cent ofSamsung C&T before

acquiring an additional2.17 percent for about

216bn Korean won (£126m)on Wednesday.

IKEA, the world’s biggest furnitureretailer, plans to spend €1bn (£737m)on renewable energy and steps tohelp poor nations cope with climatechange, the latest example of firmsupstaging governments in efforts toslow warming.

Chief executive Peter Agnefjallsaid the measures would “absolutelynot” push up prices at the Swedishgroup’s stores. The investments willbe “good for customers, good for theclimate and good for IKEA too”.

He said IKEA was motivated by adesire to tackle climate change,rather than gaining publicity.“Getting that message out to thecustomers is secondary,” he said.

An internal review last year

Swedish furniture giant pledges€1bn to climate change projects

IKEA said it plans to get more of its wood and cotton products from sustainable sources

BY ALISTER DOYLE showed only 41 per cent of itscustomers see IKEA as a companythat “takes social and environmentalresponsibility”, below its goal of 70per cent by 2015.

IKEA, which had sales of €30bnlast year, wants to generate all theenergy used in its shops andfactories from clean sources by 2020.

To that end, it will invest €600m onwind and solar power projects,adding to €1.5bn invested since 2009.It has already signed up to own andoperate 314 wind turbines and has700,000 solar panels on its roofs.

The IKEA Foundation, thecharitable arm of the firm, wouldinvest €400m by 2020 in supportingfamilies and communities in nationsvulnerable to impacts of climatechange.

TECH giant Alibaba will buy for$194m an undisclosed stake indomestic financial media firmChina Business News (CBN), thefirm said yesterday, adding to itsgrowing clout in financial services.

The deal, with CBN, part ofShanghai Media Group, will involvesetting up a financial data andinformation platform targeting theChina’s fast-growing investmentcommunity, Alibaba said.

Alibaba’s stake will bolsterexecutive Chairman Jack Ma'salready extensive holdings inChina's financial sector, where heis aiming to build an array ofonline services to challenge state-owned banks and financialinstitutions.

Ma’s interests in the financialsector include Ant Financial, anaffiliate of Alibaba which operatesChina's biggest online paymentprocessing service.

The financial data platform withCBN will target small and mediumsized companies (SMEs) as well asinvestors andfinancialdecisionmakers, thestatementsaid.

BY ADAM JOURDAN

Samsung is Korea’slargest family-run conglomorate

Rich-lister JackMa wanted apiece of CBN

AIGThe insurer has announced theappointment of Angus Marshallas mergers & acquisitions (M&A)manager for the UK. He joinedAIG in 2013 as an M&Aunderwriter. Marshall has alsoheld positions in PwC’sinternational tax and M&Apractice and in Norton RoseFulbright’s private M&A division.

Edmond de RothschildPhilippe Jouard has been appointed head of private

merchant banking in London at the asset managementand private banking group. He was most recently chiefexecutive of Concordia Capital in Qatar, which he co-founded in 2011. Jouard has also held senior positions atQinvest, Dexia, and Credit Suisse.

CBRE The commercial property and real estate services adviserhas announced two appointments to its retail capitalmarkets division. Richard Lunn joins as associate director.He transfers internally from CBRE’s rating division, andhas also held positions at Dalton Warner Davis andSavills. Tim Saull joins as a senior surveyor. He spent thepast six years in CBRE’s retail agency.

City of London Police Matt Crabtree has been seconded to the City of LondonPolice’s insurance fraud enforcement department. He hasworked at LV= for the past five years, latterly as technicalcontroller of the claims crime prevention team. Crabtreehas over 18 years’ experience in the insurance industry.

Addleshaw GoddardThe law firm has appointed Oliver Carruthers as a partnerin its infrastructure, projects and energy practice. He joinsfrom Norton Rose Fulbright, where he was of counsel inits infrastructure, mining and commodities team.Carruthers advises sponsors/developers, lendinginstitutions, funds and governments on all aspects of

project finance.

Baker & McKenzieMark Ford has been appointed global chief knowledgeofficer at the law firm. He joins after 20 years at CliffordChance, where he led its global knowledge managementteam. Ford is a qualified solicitor.

Pensions Management InstituteKevin LeGrand has been elected president of theprofessional body for pension scheme managers. Hequalified as an associate of the PMI in 1987, and wasadmitted to its fellowship in 1995. LeGrand has been amember of the PMI Council for five years.

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Jeff Bezos’ Amazon has had geographical benefits for neighbouring start-up venture funds

Alibaba pays$194m for ChinaBusiness News

Reuters

Reuters

Reuters

Bank chiefElviraNabiullina

China’s shares are at ahigh, like Beijing’s

People’s Daily building


Reuters

CHINA’S stock market went on a dra-matic roller-coaster ride yesterday, withan after-lunch meltdown spurring awave of fresh buying that producedgains for the day instead of a sharp loss.

The wild swing – at one point3.4 trillion yuan (£357bn) ofmarket capitalisation hadbeen wiped out – cameone week after the mar-ket plunged more thansix per cent.

And it underscoredincreasing volatility inthe high-flying, and high-ly-leveraged, China market.

The pattern of abrupt fallsbeing followed by a quickrebound has become a “new nor-mal” for China, said Hong Hao, chiefChina strategist at Bank ofCommunications Co.

“Many investors are holding cash onthe sidelines, so when they see tumbleslike this, they jump in,” he said.

“The upward trend is not changed,”

China market inwild swing to aseven-year high

BY SAMUEL SHEN Hong said, advising investors to buysmall on dips, and buy big on a slump.

The Shanghai Composite Index,down 5.3 per cent at the lowest pointyesterday, in the end rose 0.8 per cent,to 4,947.10 points, its highest closesince January 2008.

The CSI300 index, also downmore than five per cent in

early afternoon, rose 0.7per cent, to 5,181.42.

RUSSIAN diamond mining companyAlrosa said yesterday its net profitrose to 22.2bn roubles (£256m) inthe first quarter of 2015, up almostfourfold year-on-year due to aweaker rouble.

Alrosa, the world’s top producerby output in carats, and otherRussian exporters have benefitedfrom the depreciation of therouble, weakened by Westernsanctions and lower oil prices, astheir costs fell in dollar-terms,supporting margins.

Diamond miner Alrosa’s profitsparkles because of weak rouble

Alrosa’s profit rose as the rouble weakened and costs fell in dollar-terms, lifting margins

BY DIANA ASONOVA “First-quarter results weremainly driven by a favourableforeign exchange marketenvironment," chief executiveAndrey Zharkov said in a statement

Earnings before interest,taxation, depreciation andamortisation (Ebitda) rose to 42.9bnroubles, up 65 per cent comparedto the previous year, the companysaid. Revenue increased 31 per centto 74.6bn roubles.

The miner has said it expects netincome of 100bn roubles in 2015and to increase sales by one percent,

RUSSIA’S central bank intends to keepaccumulating reserves for years tocome, until they reach a“comfortable” level up to $500bn(£325bn), bank governor ElviraNabiullina said, as an economic crisisfacing the country is far from over.

Her comments yesterday signalthe bank will continue regularpurchases of foreign exchange, apolicy likely to weigh on the roubleas the bank would need to buy some$140bn to restore reserves – nowworth $360.5bn – to the indicatedpre-crisis level.

The policy of rebuilding reservestowards this level also underscoresconcerns that the economy is highlyvulnerable to new financial shocksdespite signs ofstabilisation.

Last month thecentral bank said itwould buy $100mto $200m a day inforeign exchangeto replenishreserves.

Russian plans$500bn foreignexchange pile

BY ALEXANDER WINNING

Hong Kong stocks mir-rored the dramatic market

reversal on the mainland,with the benchmark Hang Seng

Index ending only 0.4 per cent lower,after falling as much as two per cent atone point.

China’s mid-session plunge was ignit-ed by a sell-off in Shenzhen’s growthboard ChiNext, the bellwether of thisround of mainland bull run.

Reuters

Reuters

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*Tax laws are subject to change and depend on individual circumstances.Tax law may differ in a jurisdiction other than the UK.

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B RITAIN’S top share index fellyesterday, led lower by specialtychemicals maker JohnsonMatthey and ex-dividend

stocks in a broad sell-off in equities.Johnson Matthey, the world’s largest

maker of auto catalysts, shed 5.3 percent, making it the top FTSE 100 faller.

The company posted a small rise inannual profit helped by higher sales ofcatalysts in Europe, but investors wor-ried about an unexpectedly sharpincrease in debt caused by a rise inworking capital and weaker preciousmetals prices, which have hit its met-als division in the last year.

“Rising car sales in Europe andtighter regulation on fuel dischargesdrove profits higher, but the drearyoutlook for the metal business has putpressure on the stock,” David Madden,a market analyst at IG, said in a note tothe market.

Royal Mail fell 4.9 per cent afterfinance minister George Osborne saidBritain will sell its 30 per cent stake inthe postal operator.

The FTSE 100 closed down 1.3 percent at 6,859.24.

“If we look across developedmarkets, sell-off in equities is prettybroad. To me, it’s probably more to dowith monetary policy than anythingelse,” said James Butterfill, global equi-ty strategist at Coutts.

The European Central Bank’s insis-tence on Wednesday that there was noneed to adjust monetary policy in theface of volatility rattled financial mar-kets. The sell-off on the FTSE put allsectors in negative territory.

Many of the top fallers traded with-out the attraction of their latest divi-dend payouts, with National Grid andWPP dropping 5.1 per cent and 3.5 percent respectively.

Commodity stocks were also weaker,with gold pinned near a three-year lowand further downside to metal pricesseen. UBS trimmed its full year targetfor the FTSE 100 to 7,200 points from7,300, citing weak commodity stocks,even as it raised its target price for theSTOXX Europe 600.

“We see FTSE 100 earnings falling 8percent this year [in the main, due tothe fall in commodity prices, butrebounding 10 percent in 2016,” ana-lysts at UBS said in a note.

Among the few gainers, budget air-line easyJet rose 0.6 per cent after itreported traffic figures.

“Shares in easyJet are outperformingblue-chip rivals after monthly trafficstatistics pointed to monthly passen-ger growth... coupled with load factorsup one to two percentage points toexceed 91 per cent,” said Mike vanDulken, of Accendo Markets.

Royal Mail saleand JohnsonMatthey hit FTSE

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US stocks fellahead of jobsdata out today

U S STOCKS fell yesterday, hitby nervousness ahead oftoday’s jobs report andlingering uncertainty over a

Greece aid deal with creditors.Declining oil and gold prices also

weighed on energy and materialsshares, which led declines in thebenchmark S&P 500.

Data showed the labour markettightening, with first-time applica-tions for unemployment aid downlast week and the number of peopleon benefit rolls hitting the lowestlevel since 2000, suggesting theFederal Reserve will remain on trackto raise interest rates later this year.

The data came ahead of today’s keyUS jobs report, expected to show a225,000 gain in non-farm payrolls,according to a Reuters estimate.Some investors think stronger jobsnumbers could increase chances theFed could raise rates sooner ratherthan later.

Adding to investor concerns,Greece delayed a debt payment tothe International Monetary Funddue today and German ChancellorAngela Merkel said talks on a cash-for-reforms deal were still far froman agreement.

The Dow Jones industrial averagefell 170.69 points, or 0.94 per cent, to17,905.58, the S&P 500 lost 18.23points, or 0.86 per cent, to 2,095.84and the Nasdaq Composite dropped40.11 points, or 0.79 per cent, to5,059.13.

Meanwhile the InternationalMonetary Fund urged the FederalReserve not to raise rates until thereare clear signs of a pickup in wagesand inflation.

In a bearish sign, the S&P 500closed below its 50-day moving aver-age, a key technical indicator.

SOCO INTERNATIONALGMP Securities reiterated its “reduce” rating on the oil explorer, stating that the current dividend is“unsustainable”. The broker added: “Given the company’s expensive valuation on our estimates, afalling production profile and little exploration newsflow, we see material downside risk for this stock.”

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TULLOW OILCantor Fitzgerald initiated coverage of the oil firm with a “sell” rating, citing a “challenging” 12 monthsfor the oil and gas sector “and in particular for Tullow”. While it noted the group’s attempts to alleviatemarket pressures, it said an over-reliance on debt to fund risky ventures “could prove costly”.

VPWH Ireland reiterated its “buy” rating for the hire company, after the firm’s results beat expectations.The broker raised its forecast for the current year, and said the results are “all the more pleasing giventhe challenges faced in the oil and gas related business, Airpac Bukom”. Target price remains 800p.

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23

ON MONDAY, Gateley willbecome the first UK law firm tolist as a public company. Itshould serve as a wake-up callfor the entire industry and

more firms should follow suit. For somelawyers, moving away from thepartnership model will be terrifying –but it’s an essential evolution, not justfor the success of individual firms butfor the legal sector as a whole.

The current partnership model pro-motes short-termism that harms clients,partners, associates and firms’ culture.The shift from a partnership structure –in which partners can remain ownersonly for so long as they are employees –to a more conventional corporate formwith permanent equity has the power totransform loose associations of econom-ically-motivated free agents, who seem-ingly just happen to practice law underthe same roof, into holistic entities.

H OW CLOSE is the corporatedebt market to boiling over?Given the vast volumes ofinstitutional and retail moneythat have flowed into high

yield funds and other leveraged financevehicles in recent years, it’s a keyquestion for financial markets in boththe US and Europe.

For the last six years, corporate bor-rowers have been calling the shots incapital markets, enjoying ready accessto long-term funding at extraordinarilylow rates, thanks to the frantic searchfor yield unleashed by central banks’highly accommodative monetary poli-cies.

That has particularly been the case inthe US, where the proportion of newcorporate borrowers rated B (defined byS&P) increased to nearly 80 per cent in2014 from just 45 per cent in 2008-09.Even in Europe, speculative gradeissuance (BB+ and below) has increasedfrom 30 per cent to 69 per cent between2009 and 2014. This financing bonanzahas created a virtuous circle, where easyliquidity conditions have lowered refi-nancing and credit risks, which in turn

cityam.com/forumTHEFORUM

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24 FRIDAY 5 JUNE 2015

nJAYAN DHRU

The US corporate debt market is close toboiling over – and Europe could be next

has trimmed yield spreads.All that may be about to change. If, as

expected, the US Fed raises interest rateslater this year, riskier borrowers will beamong the first to feel the pinch. Ascredit conditions tighten, speculativegrade companies – which issued nearly80 per cent of new US corporate debt in2014 – will find it harder to obtain creditand raise new debt. Lenders, in short,will be back in the driver’s seat.

Until now, investors have been morethan willing to accept the higher risksassociated with speculative-gradeissuers, in return for higher yields –especially when corporate default rateshave remained well below the historicalaverage. But as US rates rise, lenders willbecome more picky about extending

credit, and market access for these pro-lific borrowers could tighten. If rates risefaster than the market anticipates, thereis a risk of a liquidity drought.

In these circumstances, borrowerswith weak credit profiles that hadobtained cheap financing will be morevulnerable when refinancing or newfinancing needs arise. And those thattook advantage of the leveraged financemarket’s willingness to extend loanswith weaker covenants will face morestringent lending standards.

The peak in refinancing risk for UScompanies is expected between 2017and 2019. If a liquidity crunch were tooccur during this period, banks andinvestors could become even more riskadverse. That in turn would amplify liq-uidity risk for borrowers of maturingdebt and for companies that can’t satisfytheir ongoing liquidity requirements,resulting in rapid credit deterioration.The previous virtuous circle in corporatefunding would become a vicious one.

Awkwardly for many US firms, thisfinancing squeeze could coincide withcompetition from cheaper imports andexport headwinds associated with the

stronger US dollar. Without the protec-tion of artificially low interest rates, theycould be doubly exposed. For many spec-ulative grade borrowers, creditworthi-ness will probably fall by the year-end.

There are pointers in all this for theEuropean corporate debt market. Thelaunch of QE by the ECB is designed toensure that the financing environmentremains highly supportive for compa-nies, especially smaller and weakerones.

European investors – and banksunderwriting leveraged loans – seem tobe maintaining discipline and discrimi-nating on credit quality. With compa-nies reluctant to borrow when growth isso subdued, total leverage for Europeancompanies issuing leveraged loansremains at 2005 levels. And cash interestcover, a key default indicator, is at arecord high level in the region, improv-ing companies’ ability to pay down debt.

Yet there are straws in the wind.Documentation standards on leveragedloans are deteriorating. “Covenant-lite”loan structures – which limit protectionto investors in a stressed situation – havebecome increasingly standard in the

European market. At the same time, agrowing proportion of high yield fund-ing in Europe – around a third in thefirst quarter – is being raised in supportof M&A, which is pushing up the debtleverage of new issuers of high yieldbonds to close to five times.

There are other omens. The recentbounce-back in European corporatebond yields from the lows they plumbedin March – a correction exacerbated bypoor liquidity in the secondary debtmarket – underlines the real risk of sub-stantial mark-to-market losses in theevent of a credit shock, especially forsmaller or more complex high yield bor-rowers.

Europe’s economic and financial cycleis behind the US, and the credit metricsof its companies are less stretched. Butsimilar risks are starting to build andsentiment could turn quickly. Whathappens in the US leveraged financemarket over the coming months couldwell be a foretaste of what is to come onthe other side of the Atlantic.

Jayan Dhru is executive managing directorand global head of corporate ratings atStandard & Poor’s Ratings Services.

Two years ago, the UK’s world-leadinglegal industry was calculated to be worth£21bn to the economy. Yet remainingreliant on an antiquated business modelcould hinder its future success.

I wrote about the need for US lawfirms to move away from the partner-ship model in the Southern CaliforniaLaw Review earlier this year. I arguedthat abandoning the structure is crucialfor long-term value creation by firms.

This is because the partnership struc-ture is fundamentally flawed, confusingownership and employment to the

point that undue emphasis falls on max-imising billable hours in the short termand undervaluing client service, employ-ee wellbeing and firm profitability inthe long term. Law firms cling to thebillable hour model, seeking to max-imise current profits, and in doing sothey leave clients feeling overcharged,and junior lawyers feeling overworkedand undervalued.

Under the partnership model, lawfirms are unwilling to give up the bill-able hour for the sake of long-term valuecreation, as this would be perceived as apay cut for current partners. It is verydifficult for an organisation to ask itsemployees – as opposed to investors – tosacrifice current compensation in thehope of increased future compensation,especially when the organisation cannotoffer the employees any mechanism toensure that they capture the resultinglong-term value.

It’s unsustainable. Client surveys ofFTSE-listed companies by legal journalsregularly evidence dissatisfaction withhourly billing, and propose revampedbilling structures.

The decision to float on the stock mar-ket could signify a shift towards long-ter-mism. When law firms have permanentequity, individual lawyers have an incen-tive to maximise their firms’ long-termvalue and, in so doing, maximise thevalue of their equity shares in the firm.

Any firm that decides to list as a publiccompany will undergo intense scrutiny.Some UK accountancy firms similarlydecided to move from partnership struc-tures to more corporate forms by float-ing on the stock market at the turn ofthe millennium. The fact that the deci-sion was fatal for two of the four thatlisted (Vantis and Numerica) gives lawfirms reason to be cautious.

Caution, however, should not mean

settling for the status quo. Aside fromthe benefits cited above, the corporatemodel would also enable mid-marketfirms to consider opportunities toexpand, thereby creating value in thebusiness and for shareholders. Andshould more law firms float, those look-ing for new investors, be they institu-tional or retail, would see a new, healthymarket develop.

Will the UK’s famed Magic Circle firmsever list? Yes – although it may take afew years. And when they do, they willbecome FTSE 100 companies.

The move to list as a public companyshould be seen as for the good of theindustry, and a leap to be followed notfeared. The UK legal market should takepride in leading a trend that the rest ofthe world will soon follow.

Jonathan Molot is co-founder of BurfordCapital, the litigation finance firm, and a profes-sor of law at Georgetown University Law Center.

nJONATHAN MOLOT

It’s time for law firms to go public – and end the archaic partnership model

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25FRIDAY 5 JUNE 2015

City’s growth [Re: City set for a decade of growth, Tuesday]Booming finance and technology hiring in the Cityis good news for London, but policy-makers needto look at the country as a whole. With theeconomy continuing to grow, now is the time tostart asking some fundamental questions: whatshould our post-recovery economy look like; howdo we build a sustainable economy that benefitsthe entire nation and isn’t overly dependent onone location or sector? There are two areas whichmust form part of the answer. First, we need tosupport the UK mid-market by creating our ownBrittelstand – a UK version of the GermanMittelstand. Secondly, we must develop the

regional and sector powerhouses needed to fuelour economy across the country. George Osborneshould be commended for his work in talking up a“Northern Powerhouse”, but more should be doneto focus on Britain’s army of mid-sized businessesacross the country.Simon Michaels, managing partner, BDO

As the article makes clear, not all the City’s jobsgrowth is positive. The surge of rule-making byregulatory bodies has simply pushed up thenumber of compliance staff, while others find theiractions constrained.Name withheld

As the Greek saga continues, can only fiscalintegration secure the Eurozone’s future?

YESGreater fiscal union is the only sustainable solution for the Eurozone. Withoutcoordinated redistribution, some countries are enjoying artificially lowexchange and interest rates. This boosts exports and growth. Other countrieshave inappropriately high exchange and interest rates, which hinder exportsand growth. In the build-up to the crisis, German banks were also lendingmoney to the Greeks, and these funds were often used to buy Germanexports. Germany has thus profited for years from lower rates without havingto compensate the weaker economies that struggle at such levels. We muststop blaming southern countries for irresponsible lending and structuralproblems within the bloc. The US is an example of a coordinated union wherestates still predominantly set their own tax policies. The Eurozone muststrategically redistribute some tax proceeds between countries, or disbandthe monetary union. Anything else is just kicking the can down the road.Lydia Prieg is a PhD student at the University of Cambridge.

Lydia Prieg

NOChristian Schulz

Classic elements of fiscal union such as common debt issuance, debtmutualisation or even unconditional fiscal transfers from rich countries to thepoor would be dangerous for the Eurozone. The spreads between theborrowing costs of the most vulnerable and the most stable member statesare important incentives for fiscal discipline and wider structural reformefforts. Where such spreads are absent or where tax revenues are transferredunconditionally, as in Germany’s inter-state fiscal equilibrating system,economic imbalances tend to be aggravated – not resolved over time. InBremen, a net recipient of aid from rich Bavaria and others for decades,Germany has its own little Greece: reform-resistant with sluggish growth andenormous public debt. Germany sets some good examples for the Eurozone,but fiscal union is not one of them. At the margin, the Eurozone could reviewits fiscal rules, clarifying special circumstances and tightening penalties.Christian Schulz is senior economist at Berenberg.

nJIM PETTIGREW

Greece PM Tsipras told ministers extreme positions oflenders cannot be accepted by Greek government.@zerohedge

I don’t think Greece lenders care about getting theirmoney back. This has been about punishment.@AthenaHelivoy

Greece’s unemployment rate at 25.6% in March. Itused to look like just an average euro area country.@RBS_Economics

Chancellor is absolutely right to go ahead with theRoyal Mail sale.@the_tpa

BEST OF TWITTER

LETTERS to the editor

WE WANT TO HEAR YOUR VIEWSE: [email protected] | Comment: cityam.com/forum | @cityamforum

N EARLY 30 years of working inthe City has taught me thatsuccessful times are themost dangerous times.Warren Buffett, in one of his

recent newsletters, described thewarning signs that see good timesturn to bad as the ABC of business:arrogance, bureaucracy andcomplacency. Today, there is no roomfor complacency.

The City has been one of the UK’smost remarkable success stories sincethe industrial revolution. Finance andprofessional services are responsiblefor 15 per cent of employment inLondon, or nearly 700,000 people.Financial and insurance services con-tributed £126.9bn in gross value addedin 2014. The Global Financial CentresIndex, meanwhile, shows the Cityneck and neck with New York as themost competitive place for financialand professional services in the world.

I believe we are at an importantmoment for the City. Strongleadership is required from govern-ment and City leaders to ensure thatwe move ahead of New York as theglobal capital of capital markets andbuild for the next generation.

The City could be likened to a qualitywrist watch. To make it run smoothly,many intricate parts need to cometogether in perfect harmony. At theMansion House today, in front of thelord mayor, I will outline five key cogsin the wheels which will, in time,ensure the future success of the City:we need the right skills; we need acompetitive tax regime; we need theright regulatory oversight; we needthe best technology and the bestdigital culture; and we need the rightaccess and relationships with globalmarkets.

We need the right people to be avail-able in the right numbers and withthe right skills for today andtomorrow. This means a far more

joined-up approach between business,government and the education sector.

A simplified and competitive taxregime is required. That will keep theCity competitive in a global context.

At a time of such change in the regu-lation of our banks and other financialinstitutions, we need the right combi-nation of checks and balances, and thefreedom to take considered entrepre-neurial risks which create wealth, gen-erate more taxes for public services,and which lead to more investmentand more jobs.

If we don’t have the very best innova-tion and delivery of technology, wewill fall behind our global competitors.We must prioritise digital skills andtechnology, and change our mindsetin the City to ensure we achieve this.

We need the right outcome to thecurrent debate on Europe, and wemust improve the way the City doesbusiness with Asia, the US and theemerging markets of Africa and SouthAmerica.

The City sees our finance sector andour professional services combine tocreate one area of the UK economy inwhich we are genuinely the best in theworld.

Today, I issue a clarion call to politi-cians and business leaders to ensurethat we build on the success of theCity, for the benefit of the next genera-tion and of the wider UK economy.

Over the next five years, we must acttogether in a way that we haven’t donebefore.

Jim Pettigrew is president of ICAS.

The City has no room forcomplacency about itsglobal competitiveness

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Gold ............................................................1176.00 -14.00Silver ..............................................................16.47 -0.13Brent Crude...................................................62.88 -1.99Krugerrand .................................................1172.80 -15.80Palladium....................................................759.00 -5.00Platinum ....................................................1100.00 -9.00Tin Cash Official........................................15432.50 -15.00Lead Cash Official .......................................1928.25 16.50Zinc Cash Official........................................2140.25 -17.00

Copper Cash Official...................................5953.75 -38.00

Aluminium Cash Official.............................1697.25 -19.00

Nickel Cash Official ...................................12837.50 -92.50Aluminium Alloy Cash Official...................1755.00 -30.00

Cocoa Futures .............................................3115.00 -10.00

Coffee 'C' Futures..........................................135.25 0.88

Feed Wheat Futures.....................................114.50 -0.50

Soybeans Futures Continuation Contract ..946.40 11.15

AIR LIQUIDE .....................................................115.95 -1.25 123.95 87.17AIRBUS GROUP ................................................60.77 -0.66 66.10 39.64ALLIANZ N .......................................................143.65 -0.50 170.15 115.05ANHEUS.-BUSCH INBEV ..................................107.90 -1.30 118.80 78.75ASML HLDG ......................................................99.24 -0.41 104.85 61.58AXA ..................................................................22.76 -0.23 24.64 16.43BANCO SANTANDER ...........................................6.57 -0.03 7.44 5.52BASF N .............................................................83.25 -1.13 97.22 64.27BAYER N ..........................................................128.85 -0.65 146.45 94.22BBVA ..................................................................9.07 -0.08 9.77 7.11BMW...............................................................100.30 -0.95 123.75 74.74BNP PARIBAS-A-..............................................56.34 -0.43 59.69 43.14CARREFOUR .....................................................30.68 -0.10 33.25 21.42DAIMLER N .......................................................82.94 -0.86 96.07 55.10DANONE ...........................................................62.38 -0.67 66.15 48.67DEUTSCHE BANK N.............................................28.11 0.07 33.42 22.66DEUTSCHE POST N............................................26.80 -0.16 31.19 21.55DEUTSCHE TELEKOM N.......................................15.75 0.21 17.11 9.77E.ON N ...............................................................13.14 -0.38 15.06 11.92ENEL...................................................................4.27 -0.11 4.50 3.36ENI ....................................................................15.98 -0.32 20.46 12.98ESSILOR INTL ....................................................111.00 -0.55 115.80 71.16GDF SUEZ ..........................................................17.84 -0.28 21.19 16.17GENERALI ...........................................................17.31 -0.29 19.21 14.40IBERDROLA .........................................................6.17 -0.10 6.46 5.00INDITEX ...........................................................30.36 -0.22 31.05 19.29ING GROUP .......................................................14.90 -0.05 15.24 9.49INTESA SANPAOLO..............................................3.30 -0.02 3.38 2.00L'OREAL ..........................................................170.00 -0.55 181.30 117.05LVMH...............................................................163.45 -2.10 175.40 109.41MUENCH RUECKVERS N ..................................166.05 -1.40 206.50 141.10NOKIA ................................................................6.62 0.04 7.87 5.38ORANGE.............................................................14.51 -0.10 16.45 10.20REPSOL...............................................................17.14 -0.31 19.13 14.26ROY.PHILIPS .....................................................24.56 -0.01 28.00 20.69RWE ................................................................20.85 -0.63 32.98 20.79SAINT GOBAIN..................................................42.45 0.04 44.40 29.51SANOFI...............................................................91.15 0.03 99.23 69.58SAP ..................................................................66.82 -0.54 70.81 50.08SCHNEIDER ELECTRIC ........................................67.29 -0.74 75.29 52.59SIEMENS N........................................................96.73 -0.36 106.35 80.17SOCIETE GENERALE...........................................43.02 -0.29 46.95 31.85TELEFONICA.......................................................12.83 -0.15 13.96 10.35TOTAL ...............................................................45.50 -0.88 54.71 38.25UNIBAIL-RODAMCO .........................................231.05 5.85 262.00 180.70UNICREDIT..........................................................6.50 -0.03 6.89 4.82UNILEVER CERT.................................................37.86 -0.16 42.75 28.75VINCI ................................................................53.77 -0.52 57.66 39.65VIVENDI............................................................23.36 -0.27 24.42 17.26VOLKSWAGEN VZ.............................................217.65 -0.15 262.45 147.40

Price Chg High Low

EU SHARES

3M...................................................................158.35 -1.81 170.50 130.60AMAZON.COM.................................................430.78 -5.81 452.65 284.00AMERICAN EXPRESS.........................................79.36 -1.24 96.24 76.53AMGEN...........................................................158.09 0.96 173.60 114.93APPLE .............................................................129.36 -0.76 134.54 89.65AT&T .................................................................35.27 0.24 37.48 32.07BANK OF AMERICA............................................16.78 -0.15 18.21 14.84BERKSHIRE HATHAWY-B .................................141.37 -1.82 152.94 122.72BOEING CO .......................................................141.19 -2.62 158.83 116.32BRISTOL-MYERSSQUIBB....................................65.77 0.07 69.86 46.30CATERPILLAR....................................................85.47 -0.76 111.46 78.19CHEVRON ........................................................101.39 -0.78 135.10 98.88CISCO SYSTEMS .................................................28.61 -0.48 30.31 22.49CITIGROUP .......................................................55.33 -0.30 56.95 46.55COCA-COLA CO.................................................40.59 -0.28 45.00 39.06COMCAST-A ......................................................58.95 -0.37 60.85 49.33CVS HEALTH....................................................100.87 -1.04 105.46 74.64DU PONT NEMOURS&CO ..................................69.69 -1.58 80.65 63.70EXXON MOBIL...................................................84.22 -0.73 104.76 82.68FACEBOOK-A....................................................82.05 -0.39 86.07 61.79GENERAL ELECTRIC ...........................................27.26 -0.27 28.68 23.41GILEAD SCIENCES .............................................113.93 -0.72 116.83 78.50GOLDMAN SACHS GROUP...............................208.87 0.58 210.17 161.53GOOGLE-A.......................................................551.69 -3.60 608.91 490.91GOOGLE-C ......................................................536.70 -3.61 598.01 486.23HOME DEPOT....................................................111.46 -1.70 117.99 77.75IBM .................................................................168.38 -1.54 196.40 149.52INTEL.................................................................32.31 -0.42 37.90 27.43JOHNSON & JOHNSON .....................................99.23 -0.86 109.49 95.10JPMORGAN CHASE...........................................66.33 -0.37 67.19 54.26MCDONALD'S ....................................................96.31 -0.21 102.62 87.62MEDTRONIC......................................................76.04 -0.79 0.00 0.00MERCK..............................................................59.47 -0.92 63.62 52.49MICROSOFT ......................................................46.36 -0.49 50.05 39.86NIKE -B-..........................................................101.95 -0.56 105.50 73.14ORACLE.............................................................43.77 -0.20 46.71 35.82PEPSICO............................................................94.14 -1.16 100.76 86.71PFIZER..............................................................34.24 -0.17 35.53 27.51PHILIP MRRS INT...............................................81.83 -0.59 91.63 75.27PROCTER&GAMBLE ...........................................78.15 -0.41 93.89 77.29QUALCOMM......................................................68.90 -0.96 81.97 62.26SCHLUMBERGER...............................................90.07 -1.29 118.76 75.60TRAVLR COMP .................................................100.21 -0.80 110.49 88.81TWITTER ...........................................................36.71 -0.29 55.99 33.09UNITEDHEALTH GROUP ..................................116.65 -1.70 123.76 77.53UTD TECHNOLOGIES ..........................................117.14 -1.37 124.45 97.30VERIZON COMM ...............................................48.10 -0.98 53.66 45.09VISA-A..............................................................68.21 -0.74 70.69 48.80WAL-MART STORES ...........................................74.15 -0.74 90.97 72.61WALT DISNEY-DISNEY .....................................110.30 -0.87 113.30 78.54WELLS FARGO...................................................56.14 -0.77 57.20 46.44

COMMODITIES CREDIT & RATESBoE IR Overnight.........................................0.500 0.00BoE IR 7 days..............................................0.500 0.00BoE IR 1 month...........................................0.500 0.00BoE IR 3 months.........................................0.500 0.00BoE IR 6 months ........................................0.500 0.00LIBOR Euro - overnight...............................-0.178 0.00LIBOR Euro - 12 months................................0.173 0.00LIBOR USD - overnight .................................0.123 0.00LIBOR USD - 12 months................................0.745 0.00Halifax mortgage rate ................................3.990 0.00

Euro Base Rate............................................0.050 0.00Finance house base rate .............................1.000 0.00US Fed funds ..................................................0.13 0.00US long bond yield........................................3.03 -0.08Euro Euribor................................................-0.124 0.00The vix index ................................................14.71 1.05The baltic dry index..................................603.00 5.00Markit iBoxx EUR ........................................217.24 0.11Markit iBoxx GBP .......................................282.32 1.41Markit iTraxx ................................................65.82 1.34

Price Chg High Low

US SHARES

€/$ 1.1223 0.0048

€/£ 0.7307 0.0043

€/¥ 139.66 0.4109

/€ 1.3683 0.0080

/$ 1.5359 0.0025

/¥ 191.13 0.5756

FTSE 100

6859.2491.22

FTSE 250

18090.42173.04

FTSE ALL SHARE

3740.3946.45

DOW JONES

17905.58170.69

NASDAQ

5059.1340.11

S&P 500

2095.8418.23

CONSTRUCTION & MATERIALS

BAE Systems . . . . . . . . .505.5 -7.5 547.0 416.4Cobham . . . . . . . . . . . .296.5 -0.2 345.1 263.7Meggitt . . . . . . . . . . . . .502.0 -1.0 587.5 423.9QinetiQ Group . . . . . . . .237.1 0.5 239.2 181.9Rolls-Royce Holdi . . . . .972.5 -14.5 1092.0 779.5Senior . . . . . . . . . . . . . .322.7 -1.5 358.5 254.6Ultra Electronics . . . . .1876.0 -6.0 1914.0 1667.0

GKN . . . . . . . . . . . . . . . .368.5 -3.5 395.0 286.5

Bank of Georgia H . . .1840.0 -115.0 2590.0 1684.0Barclays . . . . . . . . . . . .266.4 -4.8 271.6 207.9HSBC Holdings . . . . . . . .618.8 -6.5 663.6 559.9Lloyds Banking Gr . . . . . .87.5 -1.4 89.0 71.9Royal Bank of Sco . . . . .351.8 2.3 403.9 314.1Standard Chartere . . .1044.5 -7.5 1340.0 881.0TSB Banking Group . . . .338.2 0.2 343.4 247.5Virgin Money Hold . . . .446.2 5.2 448.0 279.5

Barr (A.G.) . . . . . . . . . . .607.5 -8.0 684.0 565.0Britvic . . . . . . . . . . . . . .736.5 -13.0 776.5 610.0Coca-Cola HBC AG . . . .1415.0 -7.0 1480.0 1057.0Diageo . . . . . . . . . . . . .1782.0 -13.5 2022.5 1709.5SABMiller . . . . . . . . . . .3403.5 -30.5 3768.0 3132.0

Alent . . . . . . . . . . . . . . .374.7 -4.2 403.7 301.3Croda Internation . . . .2862.0 -50.0 3007.0 1990.0Elementis . . . . . . . . . . .304.3 -5.0 320.5 227.6Johnson Matthey . . . . .3331.0 -185.0 3571.0 2743.0Synthomer . . . . . . . . . .335.0 -14.7 354.8 189.5Victrex plc . . . . . . . . . .2045.0 -47.0 2187.0 1553.0

Balfour Beatty . . . . . . . .247.4 -2.3 258.7 148.7CRH . . . . . . . . . . . . . . . .1816.0 -37.0 1908.0 1266.0Galliford Try . . . . . . . . .1700.0 -4.0 1714.0 1062.0

Kingfisher . . . . . . . . . . .377.9 9.8 387.5 285.0Marks & Spencer G . . . .578.5 -2.5 596.5 383.9Next . . . . . . . . . . . . . .7380.0 -55.0 7620.0 6250.0Pets at Home Grou . . . .275.0 -5.0 284.7 167.0Poundland Group . . . .296.0 -3.9 418.9 295.0Saga . . . . . . . . . . . . . . .207.0 -5.9 215.0 147.1Sports Direct Int . . . . . .677.0 -7.0 825.0 574.0Ted Baker . . . . . . . . . .2776.0 -53.0 2962.0 1660.0WH Smith . . . . . . . . . .1573.0 1.0 1586.0 995.5

AL Noor Hospitals . . . .948.0 -16.0 1168.0 819.0NMC Health . . . . . . . . . .780.0 -10.0 875.0 441.0Smith & Nephew . . . . .1137.0 -16.0 1200.0 906.0Spire Healthcare . . . . .353.5 -3.5 390.0 210.0Synergy Health . . . . . .1736.0 -45.0 2416.0 1310.0

Barratt Developme . . .604.5 -1.5 607.0 334.1Bellway . . . . . . . . . . . .2368.0 -3.0 2384.0 1405.0Berkeley Group Ho . . .3127.0 -37.0 3167.0 2061.0Bovis Homes Group . . .1114.0 -13.0 1133.0 732.5Crest Nicholson H . . . . .529.0 -12.5 544.0 298.9Persimmon . . . . . . . . .1945.0 -25.0 1975.0 1187.0Reckitt Benckiser . . . .5774.0 -41.0 6116.0 4964.0Redrow . . . . . . . . . . . . .437.4 -4.4 444.1 228.7Taylor Wimpey . . . . . . .188.5 -0.8 191.8 103.0

Keller Group . . . . . . . .1073.0 3.0 1077.0 750.0Kier Group . . . . . . . . . .1388.0 4.0 1478.3 1113.1

Drax Group . . . . . . . . . .378.8 -10.2 710.0 353.7Infinis Energy . . . . . . . .182.6 -3.9 240.3 179.0SSE . . . . . . . . . . . . . . . .1610.0 -25.0 1696.0 1438.0

Domino Printing S . . . .912.0 -3.0 954.0 554.5Halma . . . . . . . . . . . . . .772.5 -2.0 774.6 558.5Hellermanntyton G . . .370.0 0.3 375.0 276.5Morgan Advanced M . .344.2 -1.0 355.1 264.9Renishaw . . . . . . . . . .2478.0 -17.0 2648.0 1470.0Spectris . . . . . . . . . . . .2244.0 -46.0 2394.0 1643.0

Aberforth Smaller . . .1206.0 -18.0 1224.0 980.0Alliance Trust . . . . . . . .506.5 -7.0 528.5 426.0Bankers Inv Trust . . . . .660.0 -8.0 669.0 519.0BH Macro Ltd. GBP . . .2096.0 -7.0 2190.0 1920.0BlackRock World M . . .304.6 -6.6 507.0 289.5BlueCrest AllBlue . . . . . .188.3 -0.2 191.8 180.0British Empire Se . . . . .526.5 -6.0 555.0 482.4Caledonia Investm . . .2486.0 -29.0 2517.7 2115.0City of London In . . . . .407.5 -6.8 415.9 352.0Edinburgh Inv Tru . . . . .691.5 -11.0 703.0 579.0Electra Private E . . . . .3223.0 -37.0 3260.0 2350.0Fidelity China Sp . . . . . .170.5 -2.5 177.3 100.6Fidelity European . . . . .184.6 -2.1 187.5 140.0Finsbury Growth & . . . .595.5 -6.0 609.0 470.3Foreign and Colon . . . .450.2 -6.0 465.0 372.2Genesis Emerging . . . .534.0 -5.0 583.0 502.0HICL Infrastructu . . . . . .152.9 -0.6 160.5 136.8International Pub . . . . .137.0 -0.3 140.0 128.8John Laing Infras . . . . . .121.6 -0.5 128.1 114.6JPMorgan American . . .281.7 -4.8 295.8 241.8JPMorgan Emerging . . .592.5 -11.5 671.0 550.0Law Debenture Cor . . . .517.0 -15.0 545.0 475.0Mercantile Invest . . . . .1701.0 -21.0 1722.0 1341.0Monks Inv Trust . . . . . .439.4 -4.1 456.9 354.0Murray Internatio . . . .1023.0 -18.0 1123.0 981.0NB Global Floatin . . . . . .97.0 -0.1 100.0 94.2Perpetual Income . . . .418.0 -10.1 428.1 356.7Personal Assets T . . .35170.0-360.036290.033150.0Polar Capital Tec . . . . . .607.0 -5.0 612.0 463.5RIT Capital Partn . . . . .1559.0 -27.0 1612.0 1285.0Riverstone Energy . . . .1018.0 -42.0 1105.0 830.0Scottish Inv Trus . . . . . .656.0 -9.0 668.0 547.5Scottish Mortgage . . . .273.0 -2.2 281.8 200.4Temple Bar Inv Tr . . . .1207.0 -13.0 1268.0 1127.0Templeton Emergin . . .539.0 -5.0 623.5 517.5TR Property Inv T . . . . .305.2 -2.8 324.0 238.3Witan Inv Trust . . . . . . .821.5 -8.5 847.0 655.0Worldwide Healthc . . .1977.0 -20.0 1997.0 1273.0

3i Group . . . . . . . . . . . .563.5 -6.0 570.0 352.13i Infrastructure . . . . . . .170.2 -0.2 170.4 133.2Aberdeen Asset Ma . . . .432.1 -7.1 507.5 383.4Allied Minds . . . . . . . . .599.0 -12.0 725.0 185.8Arrow Global Grou . . . .274.3 4.0 278.3 218.0Ashmore Group . . . . . .322.3 -5.5 377.0 252.7Brewin Dolphin Ho . . . .320.8 -9.9 359.6 246.4Charles Taylor . . . . . . . .233.0 0.5 295.0 205.0City of London Gr . . . . . .25.3 0.0 27.0 17.3City of London In . . . . .350.0 -6.5 360.0 270.3Close Brothers Gr . . . .1626.0 -16.0 1664.0 1223.0Hargreaves Lansdo . . .1261.0 -24.0 1299.0 851.5Henderson Group . . . . .283.2 -4.4 301.6 184.6ICAP . . . . . . . . . . . . . . .562.0 -1.0 566.5 342.8IG Group Holdings . . . . .787.0 -3.0 794.5 563.5Intermediate Capi . . . .580.5 -15.5 600.5 366.0International Per . . . . .493.2 -4.8 631.5 417.7Investec . . . . . . . . . . . . .578.5 -8.5 647.0 491.6

IP Group . . . . . . . . . . . . .213.9 -2.0 264.7 177.0Jupiter Fund Mana . . . .466.5 -1.1 469.8 318.0Liontrust Asset M . . . . .275.5 -5.4 300.0 211.5LMS Capital . . . . . . . . . . .76.0 -0.8 87.0 75.0London Finance & . . . . .35.5 0.0 37.0 31.0London Stock Exch . . .2448.0 -37.0 2595.0 1709.7Man Group . . . . . . . . . . .178.2 -4.4 217.6 98.9OneSavings Bank . . . . .325.0 0.0 330.0 159.8Paragon Group Of . . . .443.0 0.1 455.5 317.9Provident Financi . . . .2948.0 -4.0 3151.0 1988.0Rathbone Brothers . . .2241.0 -36.0 2313.0 1830.0Real Estate Credi . . . . . .168.1 -1.9 179.8 158.0Record . . . . . . . . . . . . . . .34.8 -0.3 36.8 29.5S&U . . . . . . . . . . . . . . .2190.0 -14.5 2250.0 1700.0Schroders . . . . . . . . . . .3341.0 -26.0 3423.0 2146.0SVG Capital . . . . . . . . . .510.0 -5.0 522.0 382.2Tullett Prebon . . . . . . .400.9 -0.4 402.7 239.0Walker Crips Grou . . . . .46.0 0.0 49.0 38.3

BT Group . . . . . . . . . . . .442.5 -5.0 470.6 360.1Cable & Wireless . . . . . .66.3 -1.1 70.3 43.4COLT Group SA . . . . . . . .154.0 -2.0 158.1 118.2TalkTalk Telecom . . . . .408.8 0.9 412.7 264.7Telecom Plus . . . . . . . . .811.5 19.5 1515.0 752.5

Booker Group . . . . . . . . .178.1 -2.4 181.5 116.3Greggs . . . . . . . . . . . . .1188.0 -3.0 1211.0 500.0Morrison (Wm) Sup . . .178.3 0.2 208.2 151.7Ocado Group . . . . . . . . .369.4 -1.9 440.0 220.6Sainsbury (J) . . . . . . . .250.3 0.5 333.0 224.8SSP Group . . . . . . . . . . .295.9 -3.9 315.6 215.8Tesco . . . . . . . . . . . . . . .208.7 -1.8 295.4 164.8UDG Healthcare Pu . . . .530.0 1.0 549.5 316.5

Associated Britis . . . .2950.0 -33.0 3284.0 2466.0Cranswick . . . . . . . . . .1600.0 0.0 1622.0 1207.0Dairy Crest Group . . . . .543.0 16.0 544.0 369.0Greencore Group . . . . .336.9 -6.9 358.0 229.6Tate & Lyle . . . . . . . . . . .561.0 -5.0 743.5 555.5Unilever . . . . . . . . . . . .2872.0 -16.0 3015.0 2406.0

Mondi . . . . . . . . . . . . .1399.0 -27.0 1521.0 943.5

Centrica . . . . . . . . . . . . .269.3 -5.9 335.5 235.5National Grid . . . . . . . .869.0 -46.5 960.5 830.5Pennon Group . . . . . . .834.5 -4.5 919.5 758.0Severn Trent . . . . . . . .2153.0 -21.0 2215.0 1814.0United Utilities . . . . . . .971.0 -13.0 1042.0 784.5

Rexam . . . . . . . . . . . . .554.0 1.5 590.0 425.0RPC Group . . . . . . . . . . .627.5 -4.5 634.0 445.7Smith (DS) . . . . . . . . . . .358.7 -0.3 380.1 238.1Smiths Group . . . . . . . .1211.0 -4.0 1360.0 1013.0Vesuvius . . . . . . . . . . . .424.0 -5.1 520.0 400.0

AA . . . . . . . . . . . . . . . . .418.0 -1.3 431.8 227.9AO World . . . . . . . . . . . .166.0 -3.2 330.0 154.0Brown (N.) Group . . . . .341.0 1.7 469.2 286.6Card Factory . . . . . . . . .364.0 0.1 375.0 197.5Debenhams . . . . . . . . . .93.8 -1.1 96.0 57.8Dignity . . . . . . . . . . . . .2144.0 -11.0 2205.0 1309.8Dixons Carphone . . . . . .477.1 2.3 484.7 302.4Dunelm Group . . . . . . .926.5 -3.0 965.5 763.5Halfords Group . . . . . . .484.5 -2.5 511.5 423.3Home Retail Group . . . .155.6 1.1 218.1 151.1Inchcape . . . . . . . . . . . .857.5 -7.5 894.0 600.5JD Sports Fashion . . . . .648.5 -1.5 659.5 371.9Just Eat . . . . . . . . . . . . .447.6 -3.6 494.3 200.8

Price Chg High Low

Bodycote . . . . . . . . . . . .751.0 -7.5 786.0 557.5IMI . . . . . . . . . . . . . . . .1250.0 -12.0 1607.0 1135.0Melrose Industrie . . . . .269.9 -4.8 307.3 237.9Rotork . . . . . . . . . . . . . .252.8 -2.7 284.6 216.0Spirax-Sarco Engi . . . .3500.0 -45.0 3565.0 2561.0Weir Group . . . . . . . . .1919.0 -56.0 2761.0 1608.0

Evraz . . . . . . . . . . . . . . . .157.4 -9.0 207.4 88.5

BBA Aviation . . . . . . . . .322.7 -7.2 360.0 300.2Clarkson . . . . . . . . . . .2479.0 1.0 2523.0 1835.0Fisher (James) & . . . .1308.0 4.0 1436.0 1007.0Royal Mail . . . . . . . . . . .500.0 -26.0 527.0 389.9

Admiral Group . . . . . .1482.0 -10.0 1629.0 1195.0Amlin . . . . . . . . . . . . . . .491.6 -2.0 530.0 425.2Beazley . . . . . . . . . . . . .302.2 -1.6 317.5 236.0Direct Line Insur . . . . . .345.4 -1.0 347.1 256.3esure Group . . . . . . . . .258.2 -1.2 279.0 193.5Hiscox Limited (C . . . . .867.0 9.5 893.7 659.8Jardine Lloyd Tho . . . .1020.0 -8.0 1093.0 840.5Lancashire Holdin . . . . .647.5 -5.0 689.0 506.0

Pearson . . . . . . . . . . . .1287.0 -16.0 1508.0 1087.0Reed Elsevier . . . . . . .1075.0 -13.0 1188.0 917.0Rightmove . . . . . . . . .3289.0 -73.0 3380.0 1981.0Sky . . . . . . . . . . . . . . .1040.0 -16.0 1105.0 843.5STV Group . . . . . . . . . . .417.5 -3.5 421.0 322.0Tarsus Group . . . . . . . .206.3 -7.5 233.5 188.8Trinity Mirror . . . . . . . . .150.0 -3.5 214.0 137.0UBM . . . . . . . . . . . . . . . .553.0 -10.5 576.0 393.6UTV Media . . . . . . . . . . .159.0 2.5 223.3 150.0WPP . . . . . . . . . . . . . . .1505.0 -54.0 1611.0 1117.0Zoopla Property G . . . .260.0 -14.6 276.0 150.8

Acacia Mining . . . . . . . .300.3 -10.2 313.5 195.0Anglo American . . . . .1005.0 -43.0 1648.0 997.0Antofagasta . . . . . . . . . .741.0 -19.0 855.0 650.0BHP Billiton . . . . . . . . .1323.5 -43.5 2096.0 1276.0Centamin (DI) . . . . . . . . .69.2 -0.7 75.0 45.3Fresnillo . . . . . . . . . . . .724.0 -22.5 1031.0 644.0Glencore . . . . . . . . . . . .281.4 -7.6 377.5 240.6Kaz Minerals . . . . . . . . .249.5 -3.5 354.0 170.4Lonmin . . . . . . . . . . . . .139.5 -4.7 259.6 110.7Petra Diamonds Lt . . . . .171.0 -5.2 216.6 151.5Polymetal Interna . . . .533.0 -26.0 614.0 463.2Randgold Resource . .4591.0 -161.0 5685.0 3678.0

RSA Insurance Gro . . . .431.6 2.2 497.8 409.2

Aviva . . . . . . . . . . . . . . .520.5 -1.5 571.5 463.3Just Retirement G . . . . .173.5 -1.0 177.9 119.8Legal & General G . . . . .266.5 1.6 294.4 213.9Old Mutual . . . . . . . . . . .211.9 -3.2 240.3 169.5Phoenix Group Hol . . . .851.0 -5.5 888.0 625.0Prudential . . . . . . . . . .1609.0 -8.0 1752.0 1318.5St James's Place . . . . . .915.0 1.5 994.5 648.0Standard Life . . . . . . . .478.4 -4.4 499.9 367.7

4Imprint Group . . . . . .1067.0 -3.0 1150.0 618.5Bloomsbury Publis . . . .179.0 0.4 188.5 145.3Centaur Media . . . . . . . .76.0 -1.0 82.5 56.3Chime Communicati . .280.5 3.5 365.0 242.3Creston . . . . . . . . . . . . . .127.0 0.0 130.5 103.5Entertainment One . . . .329.3 -0.9 360.0 268.4Euromoney Institu . . . .1176.0 -2.0 1261.0 960.0Future . . . . . . . . . . . . . . .10.8 0.1 11.5 6.6Haynes Publishing . . . .130.5 0.0 196.0 112.5Huntsworth . . . . . . . . . . .39.5 -1.1 56.5 37.3Informa . . . . . . . . . . . .566.0 -12.0 600.5 445.9ITE Group . . . . . . . . . . . .190.0 -3.8 244.8 128.0ITV . . . . . . . . . . . . . . . . .268.4 -1.7 274.5 169.5Johnston Press . . . . . . .156.5 1.3 218.5 142.0Moneysupermarket. . . .275.8 -30.3 306.1 178.4

Rio Tinto . . . . . . . . . . .2850.0 -31.5 3515.0 2616.5Vedanta Resources . . . .553.0 -32.0 1191.0 371.0

Inmarsat . . . . . . . . . . .1001.0 -5.0 1022.0 674.0Vodafone Group . . . . . .248.1 -2.3 255.4 184.5

BG Group . . . . . . . . . . . .1101.5 -28.5 1276.0 794.7BP . . . . . . . . . . . . . . . . .440.2 -9.4 523.9 373.3Cairn Energy . . . . . . . . .183.2 1.2 208.3 143.2Nostrum Oil & Gas . . . .530.0 -12.5 1250.0 374.9Ophir Energy . . . . . . . . .131.2 -4.2 253.0 114.3Premier Oil . . . . . . . . . .165.8 -3.2 351.9 120.2Royal Dutch Shell . . . . .1901.5 -36.5 2453.0 1901.5Royal Dutch Shell . . . . .1918.0 -34.0 2567.0 1915.5Soco Internationa . . . . .181.0 -5.4 445.7 140.0Tullow Oil . . . . . . . . . . . .381.0 -14.7 875.0 281.2

Amec Foster Wheel . . .895.0 -10.0 1262.0 777.0Hunting . . . . . . . . . . . . .615.0 -8.5 910.0 394.3Petrofac Ltd. . . . . . . . . .900.0 -19.0 1268.0 596.5Wood Group (John) . . .703.5 -17.0 818.0 527.0

Burberry Group . . . . .1680.0 -16.0 1921.0 1410.0Jimmy Choo . . . . . . . . .168.0 -1.8 180.0 140.0PZ Cussons . . . . . . . . . .358.5 -0.9 392.1 292.5Supergroup . . . . . . . . .1165.0 -16.0 1230.0 769.0

AstraZeneca . . . . . . . .4337.0 -53.0 4863.0 4092.5BTG . . . . . . . . . . . . . . . . .707.5 9.5 830.0 581.0Dechra Pharmaceut . . .993.5 7.0 1060.0 681.0Genus . . . . . . . . . . . . . .1475.0 -25.0 1505.0 1017.0GlaxoSmithKline . . . . . .1411.5 -26.0 1642.0 1324.0Hikma Pharmaceuti . .2056.0 -38.0 2574.0 1604.0Indivior . . . . . . . . . . . . .240.0 1.4 241.4 141.1Shire Plc . . . . . . . . . . .5465.0 -50.0 5685.0 3511.0

Capital & Countie . . . . .409.4 -1.1 433.0 315.4CLS Holdings . . . . . . . .1980.0 -29.0 2013.0 1276.0Countrywide . . . . . . . . .584.5 -9.0 599.0 414.0Daejan Holdings . . . . .5685.0 5.0 5995.0 4667.0F&C Commercial Pr . . . .139.8 -0.2 147.9 119.2Foxtons Group . . . . . . .254.0 -13.6 313.0 147.7Grainger . . . . . . . . . . . .207.7 -0.8 224.0 171.6Kennedy Wilson Eu . . .1189.0 -6.0 1208.0 1023.0Redefine Internat . . . . . .53.0 -0.8 59.7 49.5Savills . . . . . . . . . . . . . .946.5 3.0 975.5 571.5St. Modwen Proper . . .450.7 -1.7 490.0 334.0UK Commercial Pro . . . . .87.3 0.0 93.5 80.7Unite Group . . . . . . . . .599.0 -4.0 625.0 392.7

Big Yellow Group . . . . .652.0 10.0 705.0 460.6British Land Comp . . . .836.0 7.0 886.0 662.5Derwent London . . . .3490.0 13.0 3702.0 2539.0Great Portland Es . . . . .819.0 2.0 875.5 612.5Hammerson . . . . . . . . .650.5 0.5 705.5 543.5Hansteen Holdings . . . .121.0 -2.3 128.2 99.3Intu Properties . . . . . . .322.5 -0.8 376.4 304.6Land Securities G . . . . .1273.0 1.0 1363.0 1004.0LondonMetric Prop . . . .170.0 1.1 171.0 133.5SEGRO . . . . . . . . . . . . . .416.3 -2.0 443.4 339.4Shaftesbury . . . . . . . . .873.5 2.0 903.0 636.0Workspace Group . . . . .975.0 -5.0 983.5 565.5

Aveva Group . . . . . . . .1939.0 -13.0 2306.0 1255.0Computacenter . . . . . . .741.0 -9.0 760.0 590.8Fidessa Group . . . . . . .2312.0 32.0 2508.0 2024.0

Micro Focus Inter . . . . .1336.0 -20.0 1356.0 826.3Playtech . . . . . . . . . . . . .817.5 -10.5 860.0 601.0Sage Group . . . . . . . . . .557.0 -5.5 577.5 350.1Telecity Group . . . . . . .1090.0 -4.0 1115.0 666.5

Aggreko . . . . . . . . . . . .1535.0 -27.0 1774.0 1405.0Ashtead Group . . . . . . .1142.0 -16.0 1217.0 827.0Atkins (WS) . . . . . . . . .1471.0 -21.0 1492.0 1238.0Babcock Internati . . . .1143.0 7.0 1250.0 933.5Berendsen . . . . . . . . . .1049.0 -9.0 1157.0 919.5Bunzl . . . . . . . . . . . . . .1886.0 -19.0 1950.0 1519.0Capita . . . . . . . . . . . . .1234.0 -7.0 1280.0 1002.0Carillion . . . . . . . . . . . . .327.2 -4.8 370.4 302.2DCC . . . . . . . . . . . . . . . .5185.0 0.0 5305.0 3105.0De La Rue . . . . . . . . . . .510.0 -7.0 872.5 472.9Diploma . . . . . . . . . . . . .812.5 -17.0 865.5 612.5Electrocomponents . . .239.3 0.9 282.7 200.6Essentra . . . . . . . . . . .1004.0 -8.0 1064.0 647.0Experian . . . . . . . . . . .1224.0 -9.0 1255.0 916.0G4S . . . . . . . . . . . . . . . .293.8 -3.2 308.8 245.0Grafton Group Uni . . . . .831.0 -3.0 858.5 538.0Hays . . . . . . . . . . . . . . . .164.7 -0.3 166.2 110.7Homeserve . . . . . . . . . .427.2 -4.6 437.2 299.5Howden Joinery Gr . . . .517.0 1.0 519.0 288.3Interserve . . . . . . . . . . .628.0 -3.0 678.0 495.9Intertek Group . . . . . .2560.0 -10.0 2906.0 2149.0Michael Page Inte . . . . .554.5 -6.0 560.5 371.9Mitie Group . . . . . . . . . .309.5 -2.6 326.8 265.3Northgate . . . . . . . . . . .625.5 -4.5 656.0 450.0PayPoint . . . . . . . . . . .1070.0 46.0 1166.0 799.5Premier Farnell . . . . . . .191.4 -3.3 215.2 158.1Regus . . . . . . . . . . . . . .253.4 -3.9 264.8 165.5Rentokil Initial . . . . . . . .152.5 0.5 153.2 111.0RPS Group . . . . . . . . . . .230.0 -10.2 297.1 182.4Serco Group . . . . . . . . . .135.6 -1.4 306.6 123.7SIG . . . . . . . . . . . . . . . . .201.4 -3.1 211.2 144.8Travis Perkins . . . . . . .2194.0 -25.0 2238.0 1574.0Wolseley . . . . . . . . . . .4058.0 -44.0 4215.0 3020.0

ARM Holdings . . . . . . . .1141.0 -4.0 1205.0 806.0CSR . . . . . . . . . . . . . . . . .877.0 -6.0 886.5 512.5Imagination Techn . . . .233.2 -7.5 265.0 172.0Laird . . . . . . . . . . . . . . .395.0 -14.5 409.5 262.5Pace . . . . . . . . . . . . . . . .414.0 -2.9 447.0 292.1

British American . . . .3520.0 -15.5 3892.5 3335.5Imperial Tobacco . . . .3269.0 7.0 3393.0 2483.0

Betfair Group . . . . . . .2645.0 -33.0 2698.0 966.2Bwin.party Digita . . . . .108.0 0.8 119.1 78.4Carnival . . . . . . . . . . . .3203.0 -25.0 3370.0 2090.0Cineworld Group . . . . . .513.5 -2.5 520.6 303.0Compass Group . . . . . .1133.0 -9.0 1219.0 938.0Domino's Pizza Gr . . . .805.0 -30.0 836.5 504.0easyJet . . . . . . . . . . . .1592.0 10.0 1915.0 1228.0Enterprise Inns . . . . . . .133.7 -0.4 141.1 98.0FirstGroup . . . . . . . . . . .116.2 -2.0 139.6 91.0Go-Ahead Group . . . .2635.0 -47.0 2682.0 2150.0Greene King . . . . . . . . .826.0 -6.0 887.5 716.0InterContinental . . . . .2710.0 -34.0 2880.0 2120.0International Con . . . . .526.0 -17.5 617.0 316.2Ladbrokes . . . . . . . . . . .125.5 3.2 152.0 101.9Marston's . . . . . . . . . . . .165.9 -1.5 173.5 136.6Merlin Entertainm . . . .446.9 -4.0 470.7 328.7Millennium & Copt . . . .580.0 -7.0 602.5 543.0Mitchells & Butle . . . . .448.0 -4.1 469.1 325.7National Express . . . . . .312.3 -6.4 318.7 220.0Rank Group . . . . . . . . . .215.8 2.7 215.9 151.9Restaurant Group . . . .690.0 -5.5 738.5 555.0

Spirit Pub Compan . . . .114.3 -0.8 120.5 70.3Stagecoach Group . . . .406.6 -4.5 412.2 336.0Thomas Cook Group . . .143.7 0.6 161.3 102.5TUI AG Reg Shs (D . . . .1184.0 -8.0 1270.0 1070.0Wetherspoon (J.D. . . . .789.0 -7.5 842.5 700.0Whitbread . . . . . . . . .5045.0 -25.0 5440.0 3958.0William Hill . . . . . . . . . .423.1 1.1 425.9 325.0

Abcam . . . . . . . . . . . . .536.0 -2.0 546.0 358.5Advanced Medical . . . .149.0 -0.5 159.8 108.8Alternative Netwo . . . .537.0 -4.0 541.0 419.9Amerisur Resource . . . . .34.5 -2.3 66.3 20.5Arbuthnot Banking . . .1550.0 35.0 1577.5 1010.0ASOS . . . . . . . . . . . . . .3853.0 15.0 4523.0 1785.0Avanti Communicat . . .225.0 -2.8 320.8 170.3Blinkx . . . . . . . . . . . . . . .34.0 -1.3 68.5 23.5Brooks Macdonald . . .1783.0 -24.5 1807.5 1320.0Camellia . . . . . . . . . . .9550.0 50.0 11220.0 8501.0Clinigen Group . . . . . . .637.0 -7.5 670.0 359.3CVS Group . . . . . . . . . . .679.5 -15.5 695.0 316.0Dart Group . . . . . . . . . . .415.0 -2.0 420.8 190.0DX (Group) . . . . . . . . . . . .87.3 1.0 139.0 76.5EMIS Group . . . . . . . . . .946.0 2.0 975.0 677.5Faroe Petroleum . . . . . .85.0 1.3 131.3 59.0First Derivatives . . . . . .1297.5 3.0 1325.0 860.0Gemfields . . . . . . . . . . . .60.0 -1.0 68.0 43.3GW Pharmaceutical . . .665.5 10.5 668.0 320.3Hargreaves Servic . . . .389.5 0.3 800.0 374.8IGas Energy . . . . . . . . . . .32.0 -0.5 146.5 19.5Iomart Group . . . . . . . .239.5 -2.0 284.6 160.0James Halstead . . . . . .400.0 10.0 400.0 260.3M. P. Evans Group . . . . .427.5 2.0 492.3 364.3Majestic Wine . . . . . . . .427.5 -15.5 468.3 299.8Monitise . . . . . . . . . . . . . .13.0 0.3 67.5 9.8Mulberry Group . . . . . .908.8 -1.5 934.5 661.5Nichols . . . . . . . . . . . . .1238.0 0.0 1243.6 838.5Numis Corporation . . . .270.0 2.5 290.5 202.0Pan African Resou . . . . .12.0 0.3 15.5 10.8Plexus Holdings . . . . . .218.8 -4.3 321.0 165.5Polar Capital Hol . . . . . .414.0 -0.8 525.0 358.0Quadrise Fuels In . . . . . . .11.5 0.5 42.5 10.8Quindell . . . . . . . . . . . . .129.8 0.3 296.3 32.5Redde . . . . . . . . . . . . . .129.0 0.8 129.5 53.3Rockhopper Explor . . . . .76.5 -1.5 99.5 51.8RWS Holdings . . . . . . . .136.5 -3.5 181.8 132.3Secure Trust Bank . . . .2770.0 -27.0 3005.0 2245.0Sirius Minerals . . . . . . . .20.8 -0.3 24.0 7.0Smart Metering Sy . . . .343.4 -6.5 414.8 315.5Staffline Group . . . . . .1294.0 -31.0 1332.0 730.0Telford Homes . . . . . . .490.5 0.0 492.5 267.3Telit Communicati . . . .280.0 -2.0 284.0 195.0Tungsten Corporat . . . . .83.5 3.5 399.0 70.0Utilitywise . . . . . . . . . . .279.5 2.8 314.0 197.3Velocys . . . . . . . . . . . . .150.3 -0.5 236.9 115.0Vernalis . . . . . . . . . . . . . .69.5 -0.3 71.8 30.6Vertu Motors . . . . . . . . . .64.3 0.8 65.3 51.5Young & Co's Brew . . . .1310.0 25.0 1320.2 955.0

PayPoint . . . . . . . . . . . . . . . . . .1070.0 4.5Dairy Crest Group . . . . . . . . . . . .543.0 3.0Kingfisher . . . . . . . . . . . . . . . . . .377.9 2.7Ladbrokes . . . . . . . . . . . . . . . . . .125.5 2.6Telecom Plus . . . . . . . . . . . . . . . .811.5 2.5Big Yellow Group . . . . . . . . . . . .652.0 1.6Fidessa Group . . . . . . . . . . . . . .2312.0 1.4BTG . . . . . . . . . . . . . . . . . . . . . . .707.5 1.4Rank Group . . . . . . . . . . . . . . . . .215.8 1.3Virgin Money Holdi . . . . . . . . . .446.2 1.2

Moneysupermarket.c . . . . . . . . .275.8 -9.9Bank of Georgia Ho . . . . . . . . .1840.0 -5.9Vedanta Resources . . . . . . . . . .553.0 -5.5Evraz . . . . . . . . . . . . . . . . . . . . . .157.4 -5.4Zoopla Property Gr . . . . . . . . . .260.0 -5.3Johnson Matthey . . . . . . . . . . .3331.0 -5.3National Grid . . . . . . . . . . . . . . .869.0 -5.1Foxtons Group . . . . . . . . . . . . . .254.0 -5.1Royal Mail . . . . . . . . . . . . . . . . .500.0 -4.9Polymetal Internat . . . . . . . . . . .533.0 -4.7

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Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9

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FTSE 100 . . . . . . . . . . . . . . . . . . . . . 6859.24 -91.22 -1.31FTSE 250 . . . . . . . . . . . . . . . . . . . . 18090.42 -173.04 -0.95FTSE All-Share . . . . . . . . . . . . . . . . 3740.39 -46.45 -1.23FTSE AIM All-Share . . . . . . . . . . . . . . 777.33 -0.80 -0.10

S&P 500 . . . . . . . . . . . . . . . . . . . . . 2095.84 -18.23 -0.86Dow Jones I.A. . . . . . . . . . . . . . . . 17905.58 -170.69 -0.94Nasdaq Composite. . . . . . . . . . . . . 5059.13 -40.11 -0.79Xetra DAX . . . . . . . . . . . . . . . . . . . 11340.60 -79.02 -0.69

CAC 40 . . . . . . . . . . . . . . . . . . . . . . . 4987.13 -47.04 -0.93Swiss Market Index . . . . . . . . . . . . 9233.65 -19.65 -0.21ISEQ Overall Index . . . . . . . . . . . . . 6142.78 -42.55 -0.69FTSEurofirst 300 . . . . . . . . . . . . . . . 1557.25 -13.69 -0.87

Hang Seng . . . . . . . . . . . . . . . . . . 27551.89 -105.58 -0.38Shanghai Composite . . . . . . . . . . . 4947.10 37.12 0.76Straits Times . . . . . . . . . . . . . . . . . 3345.00 -4.84 -0.14Sao Paulo Bovespa. . . . . . . . . . . . 53522.91 -713.53 -1.32

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27cityam.com FRIDAY 5 JUNE 2015

OFFICEPOLITICS

employers who try to take advantageof low-paid employees.

SMALL BUSINESS BONUSNew business secretary Sajid Javidhas pledged to assist small business-es, which he describes as “Britain’sengine room”. In order to ease oftencrippling cash-flow concerns, asmall business conciliation servicewill be established to help settle pay-ment disputes with larger firms.Further consideration of “no fault”dismissals has already been ruledout.

BABY BOOMThe Childcare Bill will grant workingparents up to 30 hours of free child-care for three and four year-olds –twice the current allowance. Nodetail has yet been given as to howmany hours parents must work toqualify, but following consultationand nationwide pilots, the policy isexpected to be in force from 2016.

It is already apparent that this isgoing to be a period of significantchange across employment legisla-tion. And it will be more appealingto some than to others.

Kevin Poulter is legal director in theemployment team at Bircham Dyson Bell.

What the Tories mean for employeesI N THE run-up to the Queen’s

Speech, the suggested repeal of theHuman Rights Act dominated theheadlines. But now, it’s worth

giving the government’s proposals forworkers more time.

The coalition made great play ofreducing the number of costly, time-consuming and unwarranted employ-ment claims that businesses wereforced to deal with. Now, as part of its“long-term economic plan”, the gov-ernment has set about building on thisand preserving a free employmentmarket, rewarding “hard working peo-ple” and removing unnecessary bur-dens on businesses. Here’s a briefsummary of what we can expect fromthe majority Conservative governmentas it shapes the future direction ofemployment rights.

STRIKE THATThe Trade Unions Bill will seek to placelimits on the political power of unions,restricting circumstances in whichtheir funds can be allocated to politicalcauses and raising the threshold forstrike action, requiring a minimumturnout of at least 50 per cent in strikeballots.

In “essential public services”, therewill be further hurdles for unions to

overcome. This may mean the threat ofTube strikes is significantly reduced(and the opportunity to work fromhome is averted), but it also means thatstrike action as we know it may be castinto the history books.

HEADLINE-GRABBING INITIATIVESIn order to show clear blue waterbetween the new government and thecoalition, the former has set out someeye-catching policies to show it meansbusiness for Britain.

In an attempt to cut down immigra-tion, it will be unlawful for employ-ment agencies to recruit from abroadwithout first advertising in Britain andin English. Wages paid to illegal work-ers can be seized and treated as pro-ceeds of crime. Young adults will beencouraged to “earn or learn”, whichshould be assisted by the creation of3m new apprenticeships across a grow-ing range of sectors and specialisms.

ZERO INTEREST, ZERO PENALTYThe coalition’s Small Business,Enterprise and Employment Actalready renders unenforceable “exclu-sivity” clauses in zero hours contracts,allowing workers to provide their serv-ices and skills for other employers.However, anti-avoidance measures are

yet to be detailed, suggesting that theAct was rushed through. It will alsosee large employers (those with morethan 250 employees) report on anygender pay gap in the next 12months.

The penalty for underpayment ofthe national minimum wage (cur-rently £6.50 an hour for workers aged21 and over) has risen to £20,000 perworker. If enforced, it should act as asignificant deterrent to deviant

From fewer strikes to more free childcare, the new government means change in the workplace, says Kevin PoulterA series of

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A crackdown onimmigration willhelp thegovernmentdistance itselffrom the formercoalition

ART AGNES MARTINTate Modern | By Alex Dymokehhhhh

FILMSPYCert 15 | By Alex Dymoke hhiii

FRIDAY 5 JUNE 201528 cityam.com

LIFE&STYLE GOING OUT

When we think of 20th centuryabstraction we tend to think of greatmale painters who divided the can-vas into blocks (Mondrian, Rothko)or set colours against each other inexplosions of warring pigment(Pollock). Agnes Martin’s approachwas different. She ruptured thechains of figuration only to findanother way of being painstaking:through the methodical, meditativeconstruction of pattern – dots, lines,grids – on canvas. To stand beforeone of her paintings is to share inthe therapeutic effect that creatingthem must have had. The mind emp-ties. Serenity takes hold.

Bold, restless and prone to insta-bility, Martin was everything hercontrolled paintings aren’t. Born inCanada to Scottish parents in 1912,she studied at a number of institu-tions across the US before turning toart at the relatively late age of 30,following a spell at ColumbiaUniversity. She was a lesbian, achampion swimmer, an amateurmechanic and, for many years, a her-mit. One day, after being foundwalking the streets of New York in astupor, she was admitted to hospitaland diagnosed with schizophrenia.

This stellar retrospective at TateModern is the first since her deathin 2004. Her hermetic tendencies gosome way to explaining why shewasn’t exhibited more widely, andthe paintings themselves tell of soli-tude, or what some refer to as “one-ness”. At Columbia she becameinterested in Eastern philosophy.“Zen” is an over-used and misusedterm, but it’s justly applicable toMartin, both in the way her paint-ings were produced and the effectthey have on the viewer.

For all the regularity and repeti-tion, Martin’s human hand alwaysfeels present. A smudged grid, anear-imperceptible bend in a line;these enliven and animate paintingsthat could, at first glance, have been

Peace and quiet in the Tate

Bounteous as Melissa McCarthy’scomedic gifts no doubt are, do theyjustify a resuscitation of the spy-spoofgenre? In a word: no. In Spy she plays adesk-bound CIA operative working inpartnership with field agent BradleyFine (Jude Law) with whom she is not-so-secretly in love. Despite finishingtop of her class, her boss (AlisonJanney) doubts she has the mettle forundercover work. She gets her chancewhen Fine falls foul of a glamourousBulgarian villainess (Rose Byrne – ahighlight) and the other agent work-ing on the case, Rick Ford (JasonStatham), goes rogue.

McCarthy gives her all but she’shampered by a coterie of comedicallyincompetent co-stars. Statham shouts

TOP ART SHOWING NOWEric Ravilious hhhhhUnorthodox watercolours offer a loving glimpse of1930s Britain at the Dulwich Picture Gallery

Sonia Delaunay hhhhi

This unsung genius of abstraction broke new groundwith her vibrant paintings and fabrics. Tate Modern

TOP FILMS SHOWING NOWDanny Collins hhhhi

Al Pacino finally learns how to grow old gracefully.

Mad Max: Fury Road hhhhh

A sweaty, high-octane action classic starring TomHardy and Charlize Theron at the top of their game.

every line in an unimaginative self-satire of his tough guy image. Law isunctuous as ever. Miranda Hart is byfar the worst, though. It’s difficult tothink of a brand of comedy less suitedto the big screen than her gangly, self-deprecating schtick. Every time some-thing funny threatens to happen shepops up to suck all traces of humourout of the scene.

McCarthy and writer-director PaulFeig worked well together onBridesmaids but Spy is the kind ofduff comedy that not only signalsdecline but also invites revisionism:maybe Bridesmaids wasn’t that goodin the first place?

The exhibition traces Martin’scareer from her early experimentswith a less structured form of abstrac-tion in the 50s to her final paintingsin the year before her death in 2004.Still abstract, these late works arebrighter and less restrained than theones for which she is best known. InUntitled #1 (pictured above) snow-

capped mountain peaks point sky-ward (to where she was headed?).White lines on black are given theenigmatic title The Sea. It says a lotabout Martin that as her movementslowed and her faculties declined, shecontinued to defy her physical andmental state with the most intenseand passionate work of her life.

Melissa McCarthynot taking anyprisoners in Spy

made by machines. Gridded paint-ings like Friendship and A GreyStone shimmer, projecting theirorderliness into the room. Her pas-tel-shaded late-era paintings have analtogether different atmosphere:weightless, mirage-like, they hauntthe space between colour and noth-ingness.

29

THEATRETHE ELEPHANT MANTheatre Royal Haymarket | By Steve Dinneenhhiii

@@cityamlife


Haruki Murakami’s novel Kafka onthe Shore is an ever-shifting miragewhere dream and reality, past andfuture, here and there all twist andcollide. It’s a book about ideas,encompassing western philosophy,Greek tragedy, psychoanalysis andscience fiction. It should translatehorribly to the stage, but legendaryJapanese theatre director YukioNinagawa is up to the challenge.

His stage is a blank canvas, the ele-ments for each scene gliding intoview in giant perspex boxes. Whenhis characters are lost in woodland,trees swirl around them. When theyare in the city, neon signs and trucksveer into sight. Some boxes containentire rooms, others just a urinal foran extra to relieve himself into. Aswell as allowing for some incrediblechoreography, it’s a neat metaphorfor the hermetically sealed innerworlds in which Murakami’s charac-ters reside, a place from which theycan see others but never really con-nect.

Ninagawa’s play is necessarilyleaner than Murakami’s 500-pluspage novel, the narrative threads eas-ier to hold onto. There are two inter-woven stories, the first following

Kafka, a young runaway who movesinto a provincial library where hefalls in love with an older woman.The second focuses on Nakata, aslow-witted old man who can talk tocats (and what magnificent cats theyare: human-sized beasts that slinkand leap across stage). Sent on a mis-sion to find a lost pet, Nakataencounters the “infamous cat killerJohnny Walker” (yeah, the whiskyguy), at which point his life beginsmysteriously to overlap with Kafka’s.

There are no shortage of heavyconcepts to contend with: a prosti-tute (provided by KFC’s Colonel

Sanders, who works as a back-alleypimp) spouts Hegel while on the job,Kafka ruminates on AdolfEichmann’s detachment to his mass-murder, the Oedipus myth is neatlyre-enacted. But it never feels dense oroverwhelming, more like a warmbath of ideas that gently laps aroundyou.

The acting is excellent (the play isin Japanese with surtitles) especiallyKatsumi Kiba as Nakata and MasatoShinkawa as Johnny Walker, and agenuine love of the material shinesthrough. It’s a tour-de-force adapta-tion of an unadaptable novel.

WATCH! MORE LONDON FREE FESTIVALThis weekend the More London Free Festival returns, bringing a varied

programme of arts and events to the concrete amphitheatre next to the Mayor’sbuilding. See everything from child-friendly adaptations of Greek tragedies to a

French Riviera-inspired pop up restaurant. Visit morelondon.com

PERUSE! MAP FAIRWhat better way to add character and charm to a room than with an antiquemap on the wall. And what better place to get hold of such an item than atthe London Map Fair which takes place at the Royal Geographical Society in

Kensington this weekend. Free, visit londonmapfairs.com

MUNCH! STREATHAM FOOD FESTIVALFoodie jamborees like these portend a turnaround in fortunes for Streatham.

More than a farmer’s market, the Streatham Food Festival is an all-singing all-dancing celebration of one of London’s most diverse areas. Events taking placethroughout the area until Sunday, check streathamfoodfestival.com for details

DRINK! FRANK’SThe weather may be getting warmer, but nothing signals the

beginning of summer like the opening of Frank’s Cafe on top ofPeckham multi-storey car park. Get down early to avoid the queues.

Visit frankscafe.org.uk

ELLIOT MOSS PRESENTS

JAZZ SHAPERSEVERY SATURDAY AT 9AMIN CONVERSATION WITH THE SHAPERS OF BUSINESS, WITHMUSIC FROM THE SHAPERS OF JAZZ, BLUES AND SOUL

IN ASSOCIATION WITH

Bradley Cooper’s performance in TheElephant Man is an impressive feat ofphysical acting that’s a little too goodfor a largely uninspired play.

In one of the few genuinely innova-tive scenes, we first see Cooper as anear-naked, barrel-chested vision ofhuman perfection. As Joseph Merrick’smany deformities are read aloud,Cooper contorts his body – a droopingmouth, a claw-like fist, a withered leg– to become the titular Elephant Man;no prosthetics are involved.

Merrick is “rescued” from the carni-val by the talented young physicianDr Treves, who immediately plonkshim into the carnival of Victorianhigh society. The rich and famous –even royalty – flock to “befriend” theman-monster. But are they any betterthan the circus-master? Are they? Arethey? Are they? The question is posedagain and again (spoiler alert: theanswer is no), to the expense of anyreal insight into Merrick’s psyche.

Alessandro Nivola puts in a decentshift as Treves, a man torn betweenambition and conscience, but the restof the cast is given little to work with.The usually-excellent PatriciaClarkson is a case in point: her MrsKendal, an actress who becomesMerrick’s closest confidante, lacks thefire the role demands and oftenappears lost. The supporting playersare largely Englishmen as imaginedby Americans, with cheeky cockneygeezers and gents with stiff upperlips. It’s not accurate enough to be ahistory play, emotionally complexenough to be a drama or funnyenough to be a comedy, which leavesa large weight on Cooper’s hunchedshoulders. For the most part he car-ries it well, but not quite well enoughto rescue an otherwise damp squib ofa play.

THEATREKAFKA ON THE SHOREBarbican | By Steve Dinneen hhhhh

Yukio Ninagawa’splay unfurls in giantPerspex boxes

FRIDAY 5 JUNE 201530 cityam.comLIFE&STYLE SOMETHING FOR THE WEEKEND

The summer season is finally upon us! This means music festivals, rooftop drinking and lounging around in the park. Don’twait for the weather to arrive, take advantage of all the adventures you can have outdoors this weekend

3. Chelsea FringeSaturday and Sunday, various locations, forprices and listings visit chelseafringe.comIf you missed out on this year’s RHS ChelseaFlower Show, there are still loads of eventstaking place in various locations around thecapital for horticulture enthusiasts. The three-week festival is coming to an end this weekendbut there are still lots of quirky, volunteer-runevents to check out, including a colourfulcommemoration of the Battle of Waterloo atWellington Tower, a floating garden in Regent’sPark and a wildflower bee hotel in TurnhamGreen.

4. Urban NinjaSaturday, Russell Square Gardens, from £30,urbanninja.co.ukFeeling bereft after last week’s Ninja Warriorfinale? Then grab your nunchuks and try out thispop-up obstacle course that’s inspired by thecult Japanese TV show. The organisers reckonthey’ve created a gruelling test of upper bodyand core strength that only one per cent ofparticipants will finish. The entry cost includesan hour of practice time with trained stewards togive you tips before you attempt the real thing.The fittest will get the chance to compete for acash prize against other champs at the end ofthe year.

5. Full of Spice at KewSaturday and Sunday, festival included withadmission, adult tickets £14, kew.orgKew Gardens may already be London’s go-toattraction for outdoorsy types, but it’s turning upthe heat this summer with a new Spice Festival.Jump in a rickshaw to the Spice Exchange, whichis hosting a series of talks, workshops andperformances. Admire an array of spices growingin the cavernous greenhouses or just let the kidsjump about on the giant inflatables dottedaround. And when that gets tiring, head to thebotanical bar for a spiced gin cocktail.

IN THE SUMMERTIME

Field DaySaturday and Sunday,Victoria Park,fielddayfestivals.comThis may have been FieldDay’s fastest-selling yearyet, but there are still ticketsleft for Sunday’s festivitiesat Victoria Park. The two-day festival is still one of thecoolest tickets around.Headliners include punklegend Patti Smith, Caribouand FKA Twigs. There’s alsoplenty to keep you fed andwatered throughout the day,with Hackney favouriteStreet Feast bringing itsartisan vendors to eastLondon and the LondonBrewers Festival serving uplocal beers all day.

6. Big Lunch Sunday, free, Queen Elizabeth Olympic ParkRustle up a picnic and join families and friendsfrom all across the capital in London’s newestpark for the annual Big Lunch. Wander aroundafterwards for lots of free entertainment. The lineup includes storytellers, treasure hunts, face-painting, live music, cookery demonstrations,magic shows, puppet shows and a danceperformance from Sadler’s Wells, which isbuilding a new theatre in the park.

7. Sunday Sunset BarbecueSunday, South Place Hotel, free This daytime party on a seventh-floor terrace isdefinitely worth travelling back into the City foron your day off. From 1pm, Michelin-starred chefTony Fleming will be smoking up a storm on thebarbie while DJs spin house, funk and disco tracksinto the evening. Tuck into salmon and shrimpburgers, prawn and pork belly skewers andOrkney Island scallops. There’s also a specialspritzer menu on offer and it’s happening everySunday until the end of June.

8. Slow Food and Living MarketSunday, Rosewood Hotel, free,slowfood.org.ukIt’s all about going slow these days. That’sSustainable, Local, Organic and Wholesome, forthose who have yet to a notice its creeping gripon our tastes. In the midst of increasingly hecticlifestyles and the 24-hour news cycle, it seems atrend has emerged for food that takes time tomature. Whether it’s carefully considered craftales or a cheese that’s artfully aged, you canfind an array of small, ethically-minded foodcompanies in the inner courtyard of the grandRosewood Hotel in Holborn. With around 30traders such as Bath Soft Cheese, ChegworthValley vegetables and Dark Arts Coffee, it aimsto be a street market with an emphasis on thecraftsmanship and stories behind the food weeat.

The LineSaturday and Sunday, free, theline.orgWalkers will love London’s newest sculpture trail,which spans three miles along waterways in eastLondon. Starting from the Queen Elizabeth OlympicPark in Stratford, it’s dotted with artworks bynames like Damien Hirst, Martin Creed and AnthonyGormley all the way to North Greenwich.

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31cityam.com FRIDAY 5 JUNE 2015

*Money Back refund in the form of a Free Bet. Minimum stake £5, Max refund £25. Single bets only. Only the win part of an Each-Way bet will be refunded. Real money bets only. Full terms apply. 18+. Please gamble responsibly. www.gambleaware.co.uk

Available On All Races At Epsom Today

Money Back If Your Horse Is Beaten Into 2nd By Less Than A Length*

THEPUNTER RACING TRADER

L ITTLE more than three monthsago, trainer Jessica Harrington hadhurdling's number one prize onher agenda as the now-retired AP

McCoy unsuccessfully attempted to rideJezki to back-to-back Champion Hurdlesuccesses at Cheltenham.

Today the playing field is much differ-ent. Not confronted with timber obsta-cles, nor challenged by a string of WillieMullins-trained powerhouses,Harrington’s JACK NAYLOR must nego-tiate Epsom's climbs, slides and bends tofend off Flat racing's top yards in thisafternoon's premier fillies’ Classic, theGroup One Investec Oaks (4.30pm).

Anybody who saw Jack Naylorswallow up the Curragh’s final furlongto finish a close fourth in the Irish 1,000Guineas will have to agree with me thattoday's extended trip will bring aboutsignificant improvement. Her dam’s

sire, Nashwan, was an effortless fivelength winner of the 1989 Epsom Derby,so the stamina box is ticked.

The likely decent ground is also rightup her street as her three successes haveall come on a sound surface.

You only have to look at the form ofher Listed success at the Curragh lastAugust to see why she has an excellentchance in this. She beat bothLegatissimo and Together Forever, whoshe will face again today, despite givingthem 5lb. She should be backed at 13/2with Betway.

Her main rival is undoubtedly theaforementioned 1,000 Guineas winnerLegatissimo. She’s been right at the topof my shortlist after coming from mid-field to mow down Lucida in the finalfurlong of that race.

The jockey booking of Ryan Moorelooks significant as Legatissimo’s

owners also have the Aidan O’Brien-trained pair Diamondsandrubies andTogether Forever in the race.

However, she is just 11/4 with Betwayand Jack Naylor is simply better value.

The history books are againstLegatissimo as well. She would be thefirst filly since Kazzia (2002) to land aGuineas/Oaks double and her draw install one has not housed an Oaks winner

since Salsabil (1990).A close third on my list is the Musidora

Stakes runner up Together Forever.With the 4lb burden O’Brien’s filly car-ried in York’s Oaks trial now removed,she can reverse the form with JohnGosden’s hopeful Star of Seville and bat-tle it out with her Irish counterpartsonce again.

There are plenty of others in there

with chances, like Crystal Zvezda, LadyOf Dubai and Jazzi Top, but the Irish fil-lies seem to be a notch above theirBritish counterparts.

Odeliz can finally net the Group prize that she richly deservesTHE Investec Derby Festival gets

underway with this afternoon’sPrincess Elizabeth Stakes(2.00pm) where Karl Burke’s

ODELIZ is going to take all thebeating.This five-year-old mare hasn’t won

since September 2013, but thatdoesn’t tell the whole story. She hasrun some fine races in defeat, notablywhen beaten just a length by ThistleBird in this race 12 months ago.

Admittedly disappointing on herreappearance at the Curragh inMarch, she ran really well to finish

fourth behind Secret Gesture in theMiddleton Stakes last time.

Even though the daughter of Falco isyet to win a Group race, her form ismuch better than her rivals today andeverything looks in place for a hugerun.

Lightning Thunder is her biggestthreat according to the betting andthe ratings. However, I’m not con-vinced by Olly Stevens’ filly, who hasfailed to shine on her last three starts.

The rest look much of a muchnessreally and Odeliz rates a strong bet at3/1 with Betway.

The following Investec Wealth &Investment Stakes (2.35pm) is a typical-ly open Epsom handicap and MarkJohnston’s three runners occupy thetop three spots in the betting.

Both Fire Fighting and Master OfFinance are respected, but I’m going topin my hopes on SENNOCKIAN STAR.

This chestnut gelding won overcourse and distance in April last yearoff a 2lb higher mark of 96 and thentook another handicap at Goodwoodlater that summer off 101.

He then failed to win his next 11starts before landing a Class Three

prize at Chelmsford City last month.That was off 95, but on this return toturf he’s allowed to race off 94.

Stable jockey Joe Fanning takes theride and although he has disappointedon his last two visits to Epsom, he isstill worth supporting at 13/2 withBetway now that he has found hisform.

The Investec Diomed Stakes (3.10pm)features a small yet select field ofseven runners and the one who standsout for me is AROD.

Peter Chapple-Hyam’s colt ran ascreamer to finish fourth in last year’s

Investec Derby and he returned thiscampaign with a decent second on hisreappearance, before an excellentthird in the Group One LockingeStakes.

This trip of nine furlongs is absolute-ly perfect and he can confirm theLockinge form with Custom Cut wholooks vulnerable under his penalty.

n Bill Esdaile’s Investec Oaks 1-2-3Jack NaylorLegatissimoTogether Forever

n Pointers…ODELIZ 2.00pm Epsom (today)SENNOCKIAN STAR e/w 2.35pm Epsom (today)AROD 3.10pm Epsom (today)

@BillEsdaile

1 16-2 AL NAAMAH (23)(BF) 9-0 ..................................... G Benoist(3) Runs: 3 Wins: 1(G) Places: 1 £30,253 Trainer: A Fabre (FR) Owner: Al Shaqab Racing

2 942-2 BELLAJEU (27) 9-0 ......................................................A Atzeni(7) Runs: 4 Places: 2 £9,687 Trainer: R Beckett

Owner: Qrl/sheikh Suhaim Al Thani/m Al Kubais

3 31-1 CRYSTAL ZVEZDA (20) 9-0 ...................................R Hughes(8) Runs: 3 Wins: 2(A,G) £44,137 Trainer: Sir M Stoute Owner: Sir Evelyn De Rothschild

4 6-131 DIAMONDSANDRUBIES (30) 9-0 ............J A Heffernan(5) Runs: 4 Wins: 2(S,GS) Places: 1 £32,405 Trainer: A P O’Brien (IRE)

Owner: Mrs R Henry/Mrs J Magnier

5 1113-4 JACK NAYLOR (12) 9-0 .......................................... F M Berry(9) Runs: 7 Wins: 3(F) Places: 2 £104,477 Trainer: Mrs J Harrington (IRE) Owner: Gerard Byrne

6 33-11 JAZZI TOP (33) 9-0 .....................................................L Dettori(10) Runs: 4 Wins: 2(F,A) Places: 2 £26,749 Trainer: J Gosden Owner: Helena Springfield Ltd

7 7312-1 LADY OF DUBAI (15) 9-0 ............................................A Kirby(11) Runs: 5 Wins: 2(G) Places: 2 £35,332 Trainer: L Cumani

Owner: Sheikh Mohammed Obaid Al Maktoum

8 12-411 LEGATISSIMO (33) 9-0 ..........................................R L Moore(1) Runs: 6 Wins: 3(F,G) Places: 1 £279,024 Trainer: D Wachman (IRE) Owner: Mr M Tabor,

D Smith & Mrs John Magnier

9 618-00 QUALIFY (12) 9-0 ..............................................C O’Donoghue(2) Runs: 9 Wins: 2(F,A) Places: 1 £51,300 Trainer: A P O’Brien (IRE)

Owner: Mrs C C Regalado-Gonzalez

10 31-11 STAR OF SEVILLE (23) 9-0 ......................................W Buick(6) Runs: 4 Wins: 3(F,GS,G) Places: 1 £71,628 Trainer: J Gosden Owner: Lady Bamford

11 3111-2 TOGETHER FOREVER (23) 9-0 ......................... J P O’Brien(4) Runs: 7 Wins: 3(S,F) Places: 2 £192,626 Trainer: A P O’Brien (IRE)

Owner: Mrs John Magnier,Mr M Tabor & Mr D Smith

2014: Taghrooda 9 0, P Hanagan 5-1 (J Gosden), drawn (9), 17 ran.

BETTING FORECAST: 11-4 Legatissimo, 3 Crystal Zvezda, 6 Jack Naylor, 8 Diamondsandrubies, Together Forever, 12 Star Of Seville, Jazzi Top, Lady Of Dubai, 16 Others.

INVESTEC OAKS (FILLIES’ GROUP 1)(1) 1m 4f 3yo Only Winner £255,1954.30 CH4Jack Naylor can

hammer home the Oaks for Harrington

BILL ESDAILE PREVIEWS THE INVESTEC OAKS AND THE BEST OF THE OTHER RACES FROM EPSOM TODAY

32

THEPUNTER SPORT TRADER BEN CLEMINSON PREVIEWS TOMORROW’S CHAMPIONS LEAGUE FINAL AND BILL ESDAILE LOOKS AHEAD TO THE INVESTEC DERBY

cityam.comFRIDAY 5 JUNE 2015

THE Investec Derby (4.30pm) is theabsolute pinnacle for anyracehorse. The unique contoursof Epsom Downs put demands

on a three-year-old thoroughbred likeno other course on the planet.

This race has been dominated by oneman in recent years, Aidan O’Brien,who is certain to go down as one of thegreatest trainers of all time.

The master of Ballydoyle became thefirst handler to win the Derby for threeconsecutive years 12 months ago whenAustralia took the crown, ridden by hisson Joseph.

That is a truly extraordinary achieve-ment and he is firing three bullets atthis year’s renewal with GiovanniCanaletto, Hans Holbein andKilimanjaro.

There has been serious money forthe former over the past few days – hewas 16/1 on Sunday but is now no big-ger than 7/1 after Ryan Moore was con-firmed that he would take the mount.

He is probably the number one con-tender for Ballydoyle, but has still onlywon a maiden from three starts andI’m not prepared to back him nowwhen his price was so much bigger earlier in the week.

In truth, O’Brien’s trio don’t lookhugely strong and the leading Irishcontender for the past few weeks had

been Zawraq for Dermot Weld and PatSmullen.

It’s a real shame that one had a latesetback and was pulled out, as it wouldhave been fascinating to see if hestayed.

So the stage looks set for someoneelse to take the limelight and, if thebookies are correct, the man to step upis John Gosden.

The trainer landed his first Derbywith Benny The Dip back in 1997 and

ever since he fired in a one-two in lastmonth’s Dante Stakes at York, he’sbeen a short price to make it numbertwo tomorrow.

Golden Horn was the impressivewinner at York, but he wasn’t entered

for this race and had to be supplement-ed at a cost of £75,000 by his owner-breeder Sir Anthony Oppenheimer,who still has doubts about his colt’sability to stay this 1m4f trip.

If he stays he’ll probably win, butthere are question marks and I’m notwilling to take the 6/4 with Betway tofind out.

The one who appeals at the prices ishis stablemate JACK HOBBS, who wasbeaten at York but finished his race offwell and has since worked impressivelyat Epsom’s Breakfast with the Starsevent.

He’s undoubtedly still learning thegame, and the way he hung slightlyleft in the Dante is a worry, yet thislooks to be a serious horse and tomor-row could be the day he shows his truepotential.

Gosden has warned that if theground is too quick he’ll pull him out,but there is rain forecast today and if itdoesn’t arrive I’m sure clerk of thecourse Andrew Cooper will water afterracing this evening.

There probably isn’t much betweenthe two, but at 9/2 with Betway, JackHobbs has to be the call.

n Pointers…JACK HOBBS 4.30pm Epsom (tomorrow)

Barca can be blocked by stubborn Juve

B ARCELONA are just the

Champions League final awayfrom completing a famoustreble, but the Juventus team

which stands in their way at Berlin’sOlympiastadion tomorrow nightwill not be there just to make up thenumbers.

Lionel Messi’s double last weekendin the Copa del Rey final took himup to a massive 54 goals for the sea-son, whilst he is just one away fromholding the record for the mostgoals in Champions League history.

The stage is set for the Argentinian,although Juve aren’t short of a starthemselves.

A man who knows how to beatBarca is goalkeeper GianluigiBuffon. He was between the sticksfor Juventus the last time these sidesfaced each other, back in 2003, whena 3-2 win on aggregate carried theOld Lady through to the final wherethey were eventually victorious.

Buffon is now 37 years of age, andnaturally there has been talk of himcalling it a day. However, having con-ceded just 27 goals in 45 league andEuropean appearances for Juve thisterm, his best days look far fromover.

In typical Italian style, Juve alsohave an incredibly stubborn defence,led by the imperious LeonardoBonucci. They have conceded justseven goals in this year’s ChampionsLeague, so if any side can deal withthe attacking trio of Luis Suarez,Neymar and Messi, it is them.

For that reason, selling total goalsat 2.6 with Sporting Index is anattractive option for spread bettors.

This is Juventus’ first ChampionsLeague final for 12 years, the last fin-ishing goalless against AC Milan

after 90 minutes. They have beeninvolved in seven finals, in whichthey have scored an average of just0.4 goals per game in regular time,conceding an average of just 1.1.

It would be a tough ask for Juve tonullify Barcelona for the whole

game, so expect a goal to tricklethrough. Just look at Barca’s semi-final first-leg win over BayernMunich, where they didn’t scoreuntil the 77th minute but ended upwinning 3-0.

It’s unlikely that Juventus will

capitulate so dramatically, but stop-ping an in-form Messi for the entiregame is near-on impossible, soBarcelona to win 1-0 at 6/1 withBetway looks fair.

Betway are also offering 10/3 on adraw at half-time with a Barcelona

win at full-time and I will be backingthat.

n Pointers…Draw HT/Barcelona FT at 10/3 with BetwayBarcelona to win 1-0 at 6/1 with BetwaySell total goals at 2.6 with Sporting Index

Jack Hobbs can leave his Investec Derby rivals stumped

Jack Hobbs workedwell at ‘Breakfast withthe Stars’ last monthunder William Buick

Barcelona can cap afine season by winninga third ChampionsLeague in seven years

33SPORTcityam.com/sport FRIDAY 5 JUNE 2015

ResultsIN BRIEFLiverpool agree Milner transfern FOOTBALL: Liverpool have startedrebuilding their squad for the newPremier League season by agreeing adeal to sign England midfielder JamesMilner on a free transfer fromManchester City. The 29-year-old willjoin the Anfield club, subject to amedical, when his deal at the EtihadStadium expires on 1 July.

Gatlin sets new 100m Rome recordn ATHLETICS: American sprinter JustinGatlin last night beat Usain Bolt’s RomeDiamond League record in the 100m.The 33-year-old, who has served twodoping bans, surged home in 9.75seconds to record the seventh-fastesttime in history, and beat Bolt’s recordof 9.76 seconds set in 2012.

Rose and Spieth four shots off leadn GOLF: Former US Open championJustin Rose and Masters winner JordanSpieth are four shots off the lead afterround one of the Memorial Tournamentin Ohio. The lead is a two-way splitbetween American Bo Van Pelt andJapan’s Hideki Matsuyama, who bothcarded an eight-under-par 64. WorldNo 172 Tiger Woods carded a 73.

Premier League to ditch sponsorn FOOTBALL: The Premier League hasannounced a decision to ditch its titlesponsor from the 2016/17 season. Themove reflects a desire to mirror majorAmerican sports leagues like the NBAand NFL.

This World Cup row is over,now real battle set to startWomen’s football showpiece kicks off tomorrow. By Frank Dalleres

A LREADY the biggest ever interms of number of teams,hopes are high that this year’sWomen’s World Cup, which

starts in Canada tomorrow, will alsoprove to the best-supported.

Organisers forecast that 1.5mspectators will attend the 24-teamtournament, and say another 500mcould follow it on television. City A.M.examines the main talking points.

WHO IS GOING TO WIN?The United States, beaten onpenalties by Japan in the 2011 final,and European champions Germanystart as the favourites.

The Americans can boast twoprevious wins and have theadvantage of playing in the closestcountry to home. They are led byforward Abby Wambach, whose 182goals in 241 internationalappearances is a global record but forwhom this may represent a last shotat a World Cup, aged 35.

Germany also have great pedigree,having lifted the trophy twice,winning back-to-back in 2003 and2007, and won the EuropeanChampionships for a sixth successivetime a year ago. Their group – Ivory

Coast, Norway and Thailand – lookssimpler than USA’s, which includesSweden, Nigeria and Australia,earning the inevitable Group ofDeath label.

WHAT ABOUT ENGLAND?England romped to the finals in style,winning all 10 qualifying matchesand conceding just once in theprocess to raise hopes that they couldimprove on their routine quarter-

final exit. Optimism has been dentedby a series of friendly defeats, such asthe 3-0 reverse to Germany in front ofa record crowd at Wembley late lastyear, a narrow loss to USA in Februaryand last week’s 1-0 setback againstCanada.

Mark Sampson’s team, rankedseventh in the world, are groupedwith Mexico, Colombia and France,the latter of whom they face in atricky opening fixture on Tuesday.

SYNTHETIC GRASSEven before Fifa’s recent meltdown,the world governing body faced legalthreats over a high-profiletournament as a row over artificialpitches at the Women’s World Cupraged.

Leading players including USA starWambach last year even filed alawsuit alleging genderdiscrimination, on the basis that –unlike this – no senior men’s WorldCup has been played only onsynthetic grass.

Players have raised concerns thatthe surface could increase the risk ofnon-contact injuries, but Fifa saythere is no evidence for this. Thelawsuit was dropped in January.

Abby Wambach has 182 goals in 241 games

34

Key questions answered as theWomen’s World Cup gets ready toroar into actionSPORT cityam.com/sport

@cityam_sport

CRISIS-HIT world governing bodyFifa were last night at the centre ofa fresh cash row over paymentsmade to the Football Association ofIreland (FAI) to drop a legal caseover striker Thierry Henry’sinfamous World Cup handball.

Former Arsenal forward Henryhandled the ball in the build-up to aWilliam Gallas strike in extra-timeof Ireland’s World Cup play-offdefeat to France in 2009, which sawLes Bleus qualify for thetournament proper in South Africaa year later.

FAI chief executive John Delaneyfelt his organisation had acompelling legal case but revealedyesterday that they were paid €5m(£3.6m) by Fifa to end all thoughts ofcontesting the matter in court.

“We felt we had a legal caseagainst Fifa because of how theWorld Cup play-off hadn’t worked

Besieged Fifa incash row overHenry handball

BY ROSS MCLEAN

Ireland sufferd play-off heartbreak in 2009

out for us with the Henryhandball,” said Delaney.

“It was a very good agreement forthe FAI and a very legitimateagreement for the FAI. It was apayment to the association not toproceed with a legal case. It was avery good and legitimate deal forthe FAI.”

Fifa last night moved to diffusethe latest allegation surroundingthe besieged governing body,insisting the payment was a loan tobe refunded should Ireland qualifyfor the 2014 World Cup.

“In January 2010, Fifa enteredinto an agreement with FAI in orderto put an end to any claims againstFifa,” read a statement. “Fifagranted the FAI a loan of $5m forthe construction of a stadium inIreland. The terms agreed betweenFifa and the FAI were that the loanwould be imbursed if Irelandqualified for the 2014 Fifa WorldCup.

“Ireland did not so qualify.Because of this, and in view of theFAI’s financial situation, Fifadecided to write off the loan.”

Bribery and corruption chargeshave this week encircled Fifa, whileon Tuesday Blatter announced hisresignation from the embattledworld governing body.

‘I can’t remember England Former England captain Andrew Flintofftells Ross McLean how he expects his oldside to beat Australia and regain the urnFORMER captain Andrew Flintoffinsists the current England side is thestrongest he can recall and is primed toregain the Ashes which were uncere-moniously surrendered 18 months ago.

England head into their five-Testshowdown with Australia, which startson 8 July at Cardiff, on the back of a199-run thrashing at Headingley onTuesday as New Zealand fought back tolevel the Investec series 1-1.

The Black Caps’ tussle proceeded asea change in English cricket: thearrival of former England skipperAndrew Strauss as director of cricket,the sacking of head coach Peter Mooresand the subsequent appointment ofAustralian Trevor Bayliss.

England’s last five Test match-es, which incorporate adrawn tour of theCaribbean against anunder-strength WestIndies, have yielded justtwo wins and a draw,but Flintoff is keen toglance beyond theinconsistency.

“If you look at the sideon paper, I cannot reallyremember one stronger thanthis one,” Flintoff told City A.M. “Youhave got England’s best ever batsmanin Alastair Cook and best ever bowler inJimmy Anderson.

“Ian Bell is one of our greats and JosButtler is amazing, one of the best ballstrikers I have seen. He could quite eas-ily end up being like [South Africa’s] ABde Villiers. Joe Root is going to be unbe-lievable as well.

“The only area we haven’t really gotcovered at the minute is that holdingbowler, who when the opposition arecoming at you can sit in and apply pres-

sure through drying up runs, andmaybe a spinner. But they are onlysmall things. I’d be more worried if wewere looking and thinking ‘how are wegoing to score runs or how are wegoing to take wickets?’. England haveeverything they need.

“I would imagine there will be aquiet confidence in the England dress-ing room ahead of the Ashes. They arenot favourites by any means but I hopethey think they can win it. I reckon wecould nick it 2-1.”

One of England’s new breed ofyoung, dynamic players to enhancetheir standing during the New Zealandseries was hard-hitting Durham all-rounder Ben Stokes, who scored the

fastest ever Test century at Lord’swhile batting at No6. Only

Cook scored more runs inthe England camp than

ets, that’s massive.”Another positive for England was the

renewed batting form of skipper Cook,who continued his resurgence with aknock of 162 at Lord’s – his 27th Testhundred – and two half-centuries inLeeds. Cook had endured a barren spellbefore reaching three figures for thefirst time in 35 Test innings inBarbados at the start of May, although

the 24-year-old, whileStokes also chipped in with

crucial wickets duringEngland’s victory march in the

first Test, which prompted inevitablecomparisons with Flintoff.

“Ben has got the ability to do morethan I did,” added Flintoff, who scored3,845 runs at an average of 31.77 andclaimed 226 wickets in 79 Test matchesfor England. “It’s a bit harsh puttingcomparisons on anyone but he’s a prop-er cricketer. He has got all the attributesand I’m a big fan of the way he plays.

“He bats like a proper batsman anddoesn’t have to manufacture too much.His bowling will improve. If you’ve gotyour No6 making runs and taking wick-

questions remain over his tactical acu-men.

“He has scored more Test runs andmore hundreds for England than anyother player. He is 30 years of age andhas a better record than [India great]Sachin Tendulkar at his age,” saidFlintoff, who is sharing his cricketmemories on a live tour of the UK.

“But he goes through a little bit of alean patch and everyone is on his back.It’s a joke, it’s laughable. Who are thesepeople?

“I don’t think he will mind me sayingthat tactically he is probably not thebest captain. Alastair’s biggest attributeis that the team like him and back him.

E LEVEN months ago, when theyappointed MassimilianoAllegri as their new headcoach, Juventus could scarcely

have imagined they would beclosing in on a possible treblewithin a year.

For Allegri, who had been sackedby AC Milan earlier in 2014 and wastasked with replacing club legendAntonio Conte, retaining the Serie Atitle and mustering a decentEuropean run would have beenample success.

But the Italians have got a solidstructure augmented by very goodplayers and there is no question thatthey deserve to be in tomorrow’sChampions League final againstBarcelona.

They may not be the mostentertaining outfit, but I love towatch Andrea Pirlo, who is – apartfrom Barca maestro Xavi – the bestplayer at dictating the pace of amatch that I’ve ever seen.

Him aside, they are powered bythe doggedness of formerManchester City forward CarlosTevez, Spanish striker FernandoLlorente’s craft, and the formidablemidfield quality of Paul Pogba andArturo Vidal.

MAN MOUNTAINControlling the ball will be decisivein the final and Barcelona are sogood at it, but if any team can upsetthem it’s probably Juve, with theirbrawn in the centre of the park.

A major blow to the Turin side asthey prepare to face the world’s

greatest strikeforce is the absencethrough injury of first-choicecentral defender – and manmountain – Giorgio Chiellini.

It means the underdogs will berelying on an inferior player who isalso not playing regularly to keepout Lionel Messi and his free-scoringteam-mates – and I struggle to see itsucceeding.

Messi, Neymar and Luis Suarezhaven’t always gelled, of course.Early in the season former Liverpoolstriker Suarez was popping up indifferent positions, tending to fill inthe space as Messi went were hewanted.

Now they play with greaterpositional discipline, Neymarstaying left until he darts insideonto a pass, and manager LuisEnrique deserves a lot of credit forstriking a balance.

I was not a fan of Barcelona lastseason under Gerardo Martino butLuis Enrique, a former player who

FOOTBALLCOMMENT

TREVOR STEVEN

understands the club and how itworks, has proven to be a perfect fit.

RELENTLESSI said at the time I thought it was agreat appointment and he hasachieved something we didn’t thinkwas possible: playing even betterthan under Pep Guardiola.

Having won this competition ayear ago, Real Madrid should havekicked on this season. They startedbetter than their great rivals butBarca relentlessly chased them down– and got Carlo Ancelotti the sack.

I’d like to see Barca win and I can’tfind it within myself to imaginethem losing. As their convincingCopa del Rey final win over AthleticBilbao last week showed, they arestreets ahead of any other team onthe planet.

Trevor Steven is a former Englandfootballer who has played at two World

Cups and two European Championships.He now works as a media commentator.

Ben Stokes has gotthe ability to do morethan I did for England

‘

Barca playing better now than under Pep

Flintoff has tipped Englandto win the Ashes 2-1

Football: Page 33

FRIDAY 5 JUNE 2015

35

Will it be four in a row for trainerAidan O’Brien. City AM’s tipsteranalyses the Investec Derby

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this strong’

They go out together and are all play-ing for the captain.

“If you’ve got that, you don’t have tomake the right decision all the timebecause the strength of the side willpull you through. You could be thebest tactician ever but if you don’thave the team, it’s pointless.”

Flintoff is a long-term admirer ofMoores, who was sacked for the sec-ond time as England coach lastmonth, having worked under the for-mer Sussex boss at international levelas well as at county side Lancashire.

But just as his first reign in chargegave way to an unprecedented era ofsuccess under Andy Flower, Flintoff

RECOVERING FROM ASHES WHITEWASH

When you lose 5-0, all youwant to do is get back on

that field against them and put itright. It means you have something toprove and that’s a dangerous positionto be in. England can use that defeat.

He needs to bowl quick. Hecan bowl 90 mph and canchange the complexion of

matches. At 80, 82 mph he has littleimpact. I don’t know whether it is aconfidence thing or a fitness thing.Whatever it is it needs addressing.

““

FLINTOFF ON......

Murray takes solace in clay revivaland plots Djokovic French demise BRITAIN’S Andy Murray believes hisstandout scalps during an unbeaten2015 clay season can ignite the fuseunder his bid to overpower worldNo1 Novak Djokovic today and reacha first French Open final.

Two-time major champion Murrayrecorded his maiden clay-court titlesin Munich and Madrid this year, thelatter secured with a first evervictory over nine-time French Openwinner Rafael Nadal on the surface.

He repeated that feat againstSpain’s David Ferrer on Wednesdayin the last eight at Roland Garros toextend his winning streak on clay to15 matches, although standing in hisway is Djokovic, who has defeatedMurray in each of their last sevenmeetings.

The Serbian’s demolition of Nadalon Wednesday took his own winningrun to 27 matches, while the 28-year-old is unbeaten in any grand slam orMasters level clash since October,although Murray has faith in hisimproving record on clay.

“Going into the match having notlost on clay this year and havingsome big wins on the surface isimportant to me,” said Murray.

“A couple of weeks were important,especially Madrid and the quality ofplayers I won against there. For me,winning against Rafa in a final onclay regardless of how well he’splaying is an extremely difficultthing to do, so that helped.

“Then winning against David here,a player that I have lost against onthat court a few years ago, it was acompletely different match this timearound.”

BY ROSS MCLEAN

HEAD TO HEADAndy Murray v Novak Djokovic8 Total 180 Clay 2Titles2 Grand Slams 8512/156 Matches won/lost 639/14233 Career titles 53

Andy Murray isbidding to reach

his first FrenchOpen final

insists England will owe Moores a debtof gratitude should England overpowerAustralia this summer.

“I thought that was a terrible deci-sion,” said Flintoff. “It seems that hehas laid the foundations again forsomeone to take over and reap therewards. He did it for Andy Flower andnow for Trevor Bayliss.

“I remember when he took over thefirst time, the team was in a rightmess, but he started to turn it around.The way England played at Lord’s, thatdidn’t just happen overnight. It wasPeter working his stuff again.”For tickets to see Freddie's 2nd Innings Tour

go to www.andrewflintoffofficial.co.uk

TOP seed Serena Williams shook offthe effects of illness and the loss ofthe opening set to confirm her placein the French Open final bydispatching Switzerland’s TimeaBacsinszky yesterday.

World No1 Williams came from aset down for the fourth time atRoland Garros this year, surpassingher previous record of three at aMajor, to triumph 4-6, 6-3, 6-0 andpave the way for a tilt at a 20th grand

slam singles title.The 33-year-old will face 13th seed

Lucie Safarova, who defeated AnaIvanovic of Serbia to become the firstCzech woman to reach a FrenchOpen final in 34 years.

Williams was visibly suffering inthe rising Paris temperatures butfound a way to dispatch 23rd seedBacsinszky and surge into theFrench Open final for the third timein her career.

“I thought I had lost but I foundsome energy and I won. I hope I get

BY ROSS MCLEAN better for Saturday. I feel ill,” saidWilliams. “I’m not sure how I did it. Ijust thought I didn’t want to losewithout a fight.”

World No13 Safarova, meanwhile,powered through to her first grandslam final by dispatching Ivanovic 7-5, 7-5, bettering her progress to thesemi-final at last year’s Wimbledon.

“It’s a dream come true, I stillcannot believe it,” she said. “I startedslowly but tried to keep up the leveland play really aggressively becausethat was the only way to win.”

SEAMER STUART BROAD

Who cares? You don’t getruns every time you bat andthe sign of a good team is

one that dovetails. Gary Ballance hascome in and got hundreds and IanBell has got more than 20 centuries.There is nothing to concern anyone.“

THE FORM OF BALLANCE AND BELL

FRIDAY 5 JUNE 2015

Williams sets up tilt for 20th career grand slam title

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Citym 2015 06-05

Economy & Finance

Transcript of Citym 2015 06-05