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The Daily Telegraph Business - May 2, 2018

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Business
**
Wednesday 2 May 2018
telegraph.co.uk
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Merger
madness
We must
stop this
global trend
or it will be
the death of
capitalism
Jeremy
Warner
Barclays
bust-up
Bank’s chief
Jes Staley
gets a
rough ride
from angry
investors
and green
protesters
Page 2
Page 5
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Market report page 7. Questor page 6
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Page 7
Page 7
Apple boosts
buyback plan
after jump in
iPhone sales
By James Titcomb and
Hannah Boland
APPLE last night brushed off suggestions that the iPhone party was coming
to an end as it reported increasing sales
and announced a $100bn (£73bn) share
buyback.
The world’s biggest listed company
said revenues in the three months to
the end of March grew by 16pc to
$61.1bn, leading profits to grow 25pc to
$13.8bn. The results beat Wall Street
expectations, leading its shares to jump
in after-hours trading.
Unsettling reports from Asian suppliers in recent weeks have sent Apple
shares falling as investors feared that
the latest iPhone models had not sold
as well as once hoped.
However, last night’s figures appeared to dispel any doubts. Apple revealed that iPhone sales reached 52.2m
in the first three months of 2018, up
from 51m a year ago.
It came after November’s release of
the iPhone X, the biggest revamp of the
company’s handset since the original
device in 2007.
Some analysts have feared the
iPhone X’s high cost, at up to £1,249,
would put shoppers off, but Tim Cook,
the firm’s chief executive, said it had
been Apple’s most popular model.
Apple relies on the iPhone for the
majority of its sales and the return to
growth was welcomed after a decline
in sales of the handset at the end of last
year. While the company’s results show
that the spectacular growth Apple enjoyed several years ago has ended, the
figures were still better than expected.
The company’s software and ser-
vices business, which includes the App
Store, the Apple Music streaming service and iCloud online storage, grew
31pc, and now dwarfs revenues from
both iPad and Mac computer sales.
Sales of accessories such as the Apple
Watch and Apple’s AirPod headphones
grew by 50pc.
Apple increased its dividend by 16pc
and said it would spend $100bn buying
back shares, doubling the size of its
previous programme.
The company has been able to return extra money to shareholders due
to Trump administration tax breaks on
bringing cash home from abroad. It
had built up overseas holdings of more
than $250bn in recent years, and earlier this year said it would bring much
of the money back to the US.
“We’re thrilled to report our best
March quarter ever, with strong revenue growth in iPhone, services and
wearables,” Mr Cook said. Apple’s market value stands slightly above $850bn,
meaning a strong run in its share price
could see its value surpass $1trn.
While investors cheered Apple’s results, Snap was pummelled in afterhours trading, slumping as much as
18pc, after it revealed user growth was
dented by its controversial redesign,
and said it expected growth to “decelerate substantially” in the second quarter.
The owner of Snapchat said daily active users growth came in at its slowest
rate ever, up 2pc quarter-on-quarter, at
191m compared to 187m at the end of
last year. Its average for March was,
however, below the rest of the quarter.
Revenue came in at $230.7m for the
three months, a big miss on analyst
expectations of $243.55m, and down
19pc on the previous quarter, which
the company blamed on “seasonality
and our redesign”.
Snap had billed the redesign as a way
to make Snapchat more attractive to
people signing up, but the changes
were blasted by its existing users.
By Jack Torrance
THERE were growing concerns about
the impact of Sainsbury’s planned
merger with Asda yesterday as new figures showed around nine million
households shopped at both supermarket chains over the past three months.
They control around 31.4pc of Britain’s grocery market between them,
according to data from Kantar Worldpanel, comfortably ahead of current
industry leader Tesco’s 27.6pc.
The deal, announced on Monday, is
expected to face thorough scrutiny by
the Competition and Markets Authority, which could force the chains to sell
some of their stores before giving them
the green light to merge.
The research also revealed the two
suitors have been growing more slowly
than their “big four” rivals, with Sainsbury’s sales up just 0.2pc in the
12 weeks to April 22 and Asda’s up 1.4pc,
‘A merger would transform
the traditional landscape,
giving the joint supermarket
nearly third of market share’
GETTY IMAGES
Snap shares tumble in
after-hours trade as
messaging app firm misses
Wall Street forecasts
Concerns
grow over
Sainsbury’s
and Asda deal
Broken strings Founded in 1894 in Nashville, the company behind the Gibson guitar, so
beloved by rock legends including Rolling Stone Keith Richards (above), Chuck Berry and
David Bowie, has filed for bankruptcy protection after wrestling with debt for years.
Manufacturing growth slows in April
while households cut back on borrowing
By Tim Wallace
MANUFACTURERS grew at their slowest pace since late 2016 as export demand weakened and order books eased
in a performance dubbed “thoroughly
disappointing” by economists.
Factories have grown in every
month for almost two years, and the
purchasing managers’ index (PMI)
from IHS Markit indicates output increased again in April.
Its score of 53.9 indicates moderate
growth – any score above 50 indicates
an expansion. But this is the slowest
pace in 17 months, and dampens hopes
17
Manufacturing grew at its slowest rate for 17
months, suggesting lack of economic growth
and killing off hopes of a May interest rise
of a sharp recovery in economic growth
after the poor GDP performance in the
first quarter of the year. “This shows a
marked decline in manufacturing confidence,” said Deloitte’s Duncan Johnston.
“While adverse weather was partly to
blame in February and March, there are
no excuses for April’s disappointing performance,” said Rob Dobson at IHS
Markit. Howard Archer, at the EY Item
Club, said the PMI result was “a thoroughly disappointing survey that fuels
concerns that the UK economy has lost
momentum”. “This is another nail in the
coffin for any expectations of a May interest rate hike,” he said.
Meanwhile, credit card borrowing
ground to a halt in March as British
families turned their back on the plastic after a debt binge over the past four
years. Households borrowed an extra
£254 m in March, down from almost
£1.7 bn in February.
TSB bosses face MPs over IT debacle
By Adam Williams
TSB customers have complained of missed payments
and failed standing orders,
as the troubled bank’s chief
executive is set to be questioned by MPs.
The bank’s IT crisis has
continued into a second
week with customers complaining that standing orders have not been paid from
their account as due.
Others stated that they
have had money debited
from their account for standing orders they had previously cancelled.
The bank said yesterday it
would continue to work
“around the clock” toward a
solution, but was unable to
give any estimate on when
the issues would be fixed.
The bank, part of the
Spanish-owned
Sabadell
group, has already advised
that any customers who lost
out financially because of its
issues would be compensated. TSB said it would continue to update online the 1.9
million customers affected
by the IT problems.
Paul Pester, the chief executive, is due to be questioned by MPs on the
Treasury Committee today
over the bank’s disastrous
move from the Lloyds Banking Group platform to its
own system. He will be
joined by Richard Meddings,
TSB’s chairman.
compared with 2.1pc growth for Tesco
and 2.2pc for Morrisons.
Kantar Worldpanel’s Fraser McKevitt said: “A merger between Sainsbury’s and Asda would transform the
traditional landscape placing nearly a
third of market share in the hands of
the joint supermarket giant, though
the march of the discounters – and any
enforced store closures – could impact
this figure.”
Sainsbury’s and Asda are likely to
point to their geographical differences
in defending the merger, with the former deriving almost 60pc of its sales
from London and the South East and
latter generating two thirds of its revenues elsewhere.
Mr McKevitt said Sainsbury’s also
attracts more affluent shoppers, with
62pc of its sales coming from the wellheeled “ABC1” demographic, compared with 46pc for Asda.
German discounters Aldi and Lidl
have continued to draw away the
supermarket giants’ customers, enjoying a combined market share of 12.7pc.
Comment and analysis: Pages 2 and 5
BP poised to end shareholder dividend
freeze as rising oil price helps lift profits
By Jack Torrance
BP HAS signalled it could raise its dividend for the first time in four years
after the surging oil price boosted profits and compensation payouts related
to the Deepwater Horizon disaster
looked set to tail off.
Brian Gilvary, the chief financial officer, said the oil giant’s board would
consider putting up the quarterly dividend from its current level of 10 US
cents per share towards the end of the
year as stronger market conditions allow it to pay down its debts.
He said: “We talk about the dividend
Brian Gilvary said he
would be looking
again at the oil
giant’s dividend after
an 85pc surge in
pre-tax profits
every quarter and I think we’ll be talking more as we go into the second half
of this year.” Mr Gilvary was speaking
after BP unveiled an 85pc surge in pretax profits to $3.9bn (£2.8bn) in the
three months to March. The boost
came partly because of higher oil
prices, which have surged in recent
weeks to highs of more than $75 a barrel, which is a level that has not been
seen since a rout in 2014.
The oil company’s underlying
replacement cost profit, a key measure
used by analysts to assess BP’s profitability, came in ahead of expectations at
$2.6bn. It predicted that oil prices
would weaken in the second half of the
year as US shale oil producers ramp up
their production, leaving the average
price over the course of 2018 at between $50 and $60 a barrel.
BP’s shares closed up 1.8pc at 547.7p,
their highest level in nearly eight years.
2
Wednesday 2 May 2018 The Daily Telegraph
**
Business comment
Walmart is willing to absorb a
£2bn hit on Sainsbury’s tie-up
with Asda in order to divert
attention to its biggest rival
I
t is tempting to think that as ITV secretly
filmed Sainsbury’s boss Mike Coupe
singing “We’re in the money” from the
musical 42nd Street, thousands of miles
away, Doug McMillon, the boss of Walmart
was simultaneously reciting another song
from the Broadway smash hit: “Boulevard of
Broken Dreams”.
The £15bn merger of Sainsbury’s and Asda is
as much a reflection of Walmart’s retreat from
the UK grocery market as it is about the pair’s
ambition to create a new supermarket
powerhouse.
Indeed, Walmart is so keen to beat a retreat
back to its Arkansas heartland that it is prepared
to take a giant profit hit, absorbing a $2bn
(£1.5bn) loss from the deal. It has even agreed to
shoulder Asda’s defined benefit pension fund.
Sure, Walmart will be the biggest shareholder
in the new Sainsbury’s-Asda tie-up with a 42pc
stake and a third of the voting rights, but this is
not what was envisaged for the world’s largest
bricks and mortar retailer when it gobbled up
Asda back in 1999.
Back then, Walmart paid £6.7bn, in a deal
that still remains its largest acquisition nearly
20 years later. The takeover was unveiled to
much fanfare. The industry expected Asda,
with the financial might of the world’s biggest
retailer behind it, to crush everything in its
path, including non-food retailers such as Boots
and Dixons.
That hasn’t happened. While those two big
high street chains, particularly Boots under a
much more successful transatlantic tie-up with
Walgreens, have grown stronger, Asda has gone
backwards after a decent start.
Sales and profits have been dwindling, and it
hasn’t been able to wrestle the number two spot
from Sainsbury’s. In fact, its market share has
fallen steadily from a peak of over 17pc to around
15pc, in the face of the twin onslaught from Aldi
and Lidl, a resurgent Tesco, and as out-of-town
stores have fallen out of favour.
The latest industry data, released yesterday,
show that both Sainsbury’s and Asda are still
struggling to stop shoppers
deserting. Sainsbury’s
market share dropped
0.3pc, and Asda was down
another 0.1pc, according to
Kantar data for the 12 weeks
to April. More worryingly,
the continued fall came
despite sales at both chains
rising by 0.2pc and 1.4pc
respectively.
And as the UK market has
become more challenging,
Walmart has been focusing greater attention and
resources in other territories. McMillon said in
February that the retailer’s priorities were its
core North American base and growth markets
overseas such as China and India.
But the biggest change has been the
unrelenting rise of Amazon, which has turned
the world of retail completely on its head. It is
causing massive disruption in Walmart’s home
turf and has even dislodged it as the number one
retailer on the stock market.
Although, the Arkansas-based supermarket
titan is still the largest in the world by annual
sales – $500bn compared to $178bn – Amazon’s
market value is nearly three times more at
$733bn compared to $263bn, and rising, after
“another blow-out sales quarter”, as one analyst
described its latest figures.
At the heart of Walmart’s retreat is the
pressure to mount a credible fightback. Amazon’s
purchase of bricks-and-mortar retail firm Whole
Foods Market in the US has sent shock waves
through the grocery sector.
Meanwhile, its “Prime” service has
revolutionised home delivery, and its cargo
airline Amazon Air, threatens to transform the
world of retail. Amazon spent $25bn on logistics
last year. It is also pumping another $1.5bn into a
cargo hub in Cincinnati that will have room for a
giant fleet of 100 jets.
Walmart’s board of directors is completely
dominated by Americans and includes two of the
founding Walton family, which remains
overwhelmingly the largest shareholder.
It’s hard to imagine a remote and struggling
British outpost, which contributed less than 5pc
of sales at the last count, featuring heavily in
boardroom talks when Amazon is threatening to
dislodge you in your own backyard.
Walmart has even been diverting investment
away from its vast store estate into its online
offering in an attempt to compete with its new
arch-rival. It has outlined ambitious plans to
offer same-day delivery to more than 40pc of US
households by the end of 2018.
The fiercest battle in retail right now is taking
place between these two titans. Walmart has
admitted defeat in one war, so that it can step up
a much bigger one closer to home.
‘The biggest
change in
retail has
been the
unrelenting
rise of
Amazon’
Reversal of fortunes
Perhaps Walmart could learn from another great
American corporation: McDonald’s. Against all
the odds, its fortunes are quickly being revived
under Steve Easterbrook.
The Brit has responded to changing consumer
tastes with more gourmet items and a greater
proportion of sustainable produce. But instead of
completely reinventing the wheel, he has also
gone back to basics.
A new “value menu” has been introduced after
Easterbrook realised that many customers had
been lost to long-standing rival chains, such as
Burger King, rather than the wave of new
upstarts, as his team had thought. Sometimes
even the oldest recipes just need a tweak.
T-Mobile chief John
Legere, left, and
Sprint boss
Marcelo Claure are
attempting to gain
approval for their
$26.5bn merger
JEREMY WARNER
R
I
t’s only Wednesday, and already
it has been a record week for
mergers and acquisitions, and
indeed a record year so far,
easily surpassing the previous,
pre-financial crisis peak of
2007. Here in Blighty, it’s
understandably the proposed £15bn
merger between Asda and Sainsbury
that interests us most, yet compared to
what’s going on elsewhere, this
apparent mega-deal is but a tiddler. In
the US, T-Mobile is bidding for Sprint
to create America’s second-largest
wireless carrier, worth $59bn (£43bn),
and Marathon Petroleum has
announced a $36bn deal with its rival
refining group, Andeavor.
There are few better warning signs
of top of the market froth than an
outbreak of the sort of merger mania
we are seeing today. This, however,
should be the least of our concerns
about the present orgy of deal making.
Much more worrying is that it
confirms a long-running trend in
corporate America, and beyond, of
competition destroying consolidation.
In each individual case, there are
justifications aplenty, some of them
even quite plausible. The economies of
scale are said to be massive, promising
a much better deal for consumers. Few
of these promises should be believed.
They are mainly snake oil. As they
hoover up their competitors, these
latter day industrial leviathans are
destroying capitalism from within; it’s
bad for jobs, bad for suppliers, bad for
innovation, bad for entrepreneurialism
and ultimately bad for productivity.
The only obvious beneficiary is the
bottom line, yet even this may prove
transitory. By undermining public
trust in the system, the corporate
world invites its own nemesis, with
profits destroyed in the all too likely,
ensuing political backlash.
There is not much available data in
the UK on these wider trends – almost
unbelievably, Britain’s Competition
AP
Losing battle
with Amazon
forced US
giant’s retreat
We must stop this merger madness
or it will kill capitalism from within
and Markets Authority (CMA) doesn’t
track them or attempt to assess their
impacts on the economy – but on the
whole the situation is probably worse
in the US than the UK and Europe. On
the other hand, we start from a
position of already much more heavily
concentrated market power in key
consumer and manufacturing
industries, and as the mooted AsdaSainsbury tie-up suggests, it certainly
seems that we are heading in much the
same direction as the US. Instructed by
the French and German governments,
the European Commission looks set to
wave through the agreed merger
between the rail engineering
operations of Alstom and Siemens to
create a supposed “European
champion” with around 80pc of the
European market. Only then, it is
argued, will Europe be able to
compete effectively with the likes of
China’s state-owned CRRC. Believe it if
you will. This goliath of the railways
may or may not be good for France
and Germany; its benefits for the rest
of the EU’s captive markets are much
more doubtful.
Research by Barack Obama’s council
of economic advisers (CEA) found
increased levels of concentration in
almost all US industries – dramatically
so in some. In the 30 years to 2010, the
top 10 US banks’ share of the deposit
market jumped from 20pc to 50pc. In
retail and many other industries, it’s a
very similar picture.
With top line growth ever harder to
find, chief executives have focused
instead on consolidation and cost
cutting. The number of listed firms in
the US has halved over 20 years, and
takeover activity soared. This in turn
has led to cash hoarding, a fall-off in
investment and a bonanza in share
buybacks and dividends. In 2009,
60pc of earnings across the S&P 500
were spent on share buybacks and
dividends. That ratio passed 100pc at
the beginning of 2015, and rose to
131pc in the first quarter of 2016.
Business investment, meanwhile,
remains stuck deep in the doldrums. A
similar pattern is observable in the UK.
CEOs have focused overwhelmingly
on the short term to the detriment of
jobs, investment and innovation.
The CEA found that increased
barriers to entry – regulatory as well as
growing monopoly power – were
causing a devastating slowdown in the
creation of new businesses. In the
early Eighties, young firms in the US
accounted for about half of all firms,
and one fifth of total employment.
However, these figures had fallen to
about one third of firms and one tenth
of total employment by 2013. Powerful
network effects have paradoxically
Business
Insight
Chemring
Chemring’s
products are
used by the
military to act
as decoys to
incoming missiles
‘There are
few better
warning
signs of top
of the market
froth than an
outbreak of
the merger
mania we
are seeing
today’
B
est known for its
flares that defend
military aircraft
from missiles, Chemring
attracted attention
yesterday with plans for
a change of leadership,
writes Alan Tovey.
Michael Flowers, who
has been at the helm
since 2014, said he would
step down in the summer
with former BAE Systems
executive Michael Ord
taking over.
Mr Flowers took
control with Chemring in
trouble. High operational
tempo in the Middle East
meant militaries were
using its products at
pace, and the company
had geared up for this
demand – which then
eased as the fighting
created a number of new monopolies
in fast growing digital industries. New
firms create jobs; big and older ones
invariably destroy them. Small wonder
Western economies are in such a fix.
Given these trends, even Britain’s
generally spineless CMA will
presumably give the mooted AsdaSainsbury tie-up short shrift. I say
presumably, but you can never tell
with the CMA.
Having already sanctioned Tesco’s
takeover of Booker, and thereby a
massive increase in combined buying
power, it might feel minded to let this
one go too with only minor conditions.
This is certainly what seems to have
emboldened Mike “We’re in the
money” Coupe, the Sainsbury boss.
Even so, I would rate his chances as
slim to non-existent. Assuming the
CMA does its job, the only way in
which he might be allowed is if forced
to sell-off a very substantial part of the
combined estate. Rival supermarket
groups should refuse to play that
game, given how disadvantageous to
them the buying power of the new
supermarket monster is likely to be.
They should make it plain there are no
willing buyers for any divested assets.
Competition authorities in the US,
Europe and in Britain have been much
too willing to give consolidating
mergers the benefit of the doubt. As
proposed in new analysis by the Social
Markets Foundation, the present
framework, under which mergers are
only blocked if they are shown to be
positively harmful, needs to be
replaced by a new “presumption in
favour of competition” approach –
forcing the CMA to prevent mergers
unless it can be demonstrated that
there is a strong chance of the merger
leading to improved outcomes for UK
consumers and suppliers.
The Asda-Sainsbury merger, like so
many of the others we see on the table
today, is primarily about preserving
the bottom line. It’s about two already
powerful but challenged incumbents
huddling together for warmth. They
must instead be forced to compete –
with Lidl, Aldi, and the much cited
though not yet real threat of Amazon
– and if that damages profits and
ultimately sinks them, so be it. It’s
called capitalism.
Share price
Today
220
p
209p
200
High Apr 2018
213.5p
180
Low Nov 2017
163.5p
LUKE.BRIGGS@MHPC.COM
Ben
Marlow
slowed. Other problems –
such as safety issues in the
dangerous business of
making munitions –
meant the shares had
fallen from 700p in 2010
to 200p when Mr
Flowers, who joined in
2006, took charge.
Mr Flowers decided the
company “was trying to be
too many things” and set
Michael
Flowers
Chief executive
about a restructuring. His
reforms worked, with
debt down and a return
to profit last year.
Challenges for Mr Ord will
be to maintain the
progress in an uncertain
environment. While the
world isn’t getting any
safer, defence budgets
are being squeezed.
Ensuring Chemring has
the advanced products
that militaries want will
be the priority.
160
2017
2018
Strengths
Threats
 Major force in flares and
chaff market
 Global customer base in
diverse market segments
 Market leading
technology in sector with
high barriers to entry
 Large proportion of
income dependent on
military operation tempo
 Failure of major
projects that company
has invested in
 Falling defence budgets
Weaknesses
Opportunities
 Heavily focused on
defence and security
 ‘Lumpy’ nature of cash
flow from irregular, large
orders
 Heavy R&D spend
 Transfer of military
technology into new
applications
 Demand for new
products as they emerge
 Rising global tensions
Remaining in customs union is Brexit in name only
JOHN
TH
LONGWORTH
R
emember the scene in The Sound
Of Music where the Von Trapp
family slip across the frontier to
Switzerland while singing? Well,
contrary to the assertion of the
anti-Brexit lobby, goods and people
can move across borders just as
smoothly after we leave the EU
customs union, provided the Brussels
autocrats aren’t allowed to dictate our
future. In fact, the current border of
Switzerland with the EU is a very good
example of this.
Switzerland is not part of the
much-vaunted customs union, but
goods and people move smoothly
across its borders every day. Three
times as much, in goods per head of
population, as the UK exports to the
EU goes in and out of the EU, and the
equivalent of a full 10pc of the Swiss
population cross its frontiers, often
commuting in either direction. Many
crossing points are unmanned.
The same is true of other borders
around Europe. For example, the
frontier between Norway, who are not
in the customs union, and Sweden,
who are. Around the world frontiers
like that between the USA and Canada
work efficiently and smoothly.
All of these modern borders are
facilitated by technology, which works
a bit like the London congestion
charge, with pre-notification of goods
being shipped. The World Bank
reviewed 19 countries across the globe
and found that, on average, only 2pc of
goods are physically checked at
borders, with border control instead
based on intelligence.
So what is all the fuss about the
customs union and the Irish border?
The answer is that it is a mendacious
attempt by the EU to bully the UK into
shackling ourselves to the customs
union and, ultimately, the EU itself. In
this Brussels is being aided and
abetted by our own “fifth column” of
parliamentarians and other Remainers,
a shameful mix of EU stooges, useful
fools and those who gleefully put
self-interest before the national interest
The customs union is designed as a
protectionist wall to reduce
competition and further the interests
of corporations and landowners across
the continent. As a consequence of its
tariffs, we pay far more for our food,
clothing and consumer products than
we need to. In effect, it’s a 14pc tax on
flat screen TVs, 17pc on trainers, a 21pc
tax on tomatoes, 19pc on bananas, over
40pc on cheese, and so on. On leaving
the customs union, we will have lower
costs as these taxes, the money from
which goes to the EU, can be removed.
It is not just consumers who will
benefit. British manufacturers will be
able to source raw materials and
components around the world tarifffree as we sign up to trade deals or
choose to remove the tariffs ourselves.
The economy will boom and the cost
of living will fall, but only if we leave
the customs union. If we do not leave,
not only will these benefits vanish, we
shall also be subject to EU rules and
the European courts. In fact, we
won’t really have left at all, we will
have all the burdens of the EU and
none of the benefits.
The EU is terrified that Britain will
become a high growth and thriving
powerhouse of free-market
economics, and that is why they want
us tied down like some latter-day
Gulliver among the Lilliputian political
pygmies who make up the Eurocracy.
But there is a danger that, badly
advised by Remainer civil servants,
our own political pygmies will not
have the resolve to face down Brussels.
Brexit has been an earthquake for
our Europhile establishment. The
strength of Britain, and what makes us
attractive to investors and others alike,
are our strong values and culture; the
rule of law, the English language, our
free enterprise and love of liberty and,
importantly, our long-term stability.
For centuries the establishment has
adapted to change, including the
emerging sovereignty of the people.
They oversaw the Enlightenment of
the 18th century and the reforms of the
19th century, which broke the grip of
landowners and introduced free trade
and free markets. From this came a
period of unprecedented growth in
prosperity and Britain’s global system.
But reform has not always emerged
through evolution. The Peasants’
Revolt saw a rebalancing, by force, of
the relationship between the Anglo-
‘This is just a
mendacious
attempt by
the EU to
bully the
UK into
shackling
ourselves to
the customs
union and
the EU itself’
Saxon Britons and their Norman
overlords. The Tudors broke with
Europe and defined a British path,
which led to a golden age. The English
Civil War redefined the will of the
people over the establishment and our
distinctiveness from continental
powers. But order and stability was
reinforced by the re-establishment of
the crown and separate development
from Europe, reinforced with the 1689
coronation of William of Orange.
These events, and others, show that
we have been here before. They all
depict a demonstration of an
establishment seduced by the
corruptions of continental Europe,
that the people of Britain will not
accept being dictated to by a foreign
power, taxed without full
representation. Nor will they see their
culture and values usurped by foreign
autocrats or a takeover by migration,
as we have seen around the country
including in London.
These lessons have been learnt the
hard way by those who presume to be
our masters, rather than servant
leaders. It should be a warning should
they have sufficient contempt for
democracy and arrogance to overrule
the people, by keeping us in a customs
union, thus producing the worst of all
worlds, Brexit in name only.
John Longworth is an entrepreneur,
co-chairman of Leave means Leave and
is on the advisory board of Economists
for Free Trade and the IEA. He was
formerly director general of the British
Chambers of Commerce
The Daily Telegraph Wednesday 2 May 2018
**
3
Business
Extension of relief from US steel tariffs ‘deserves health warning’
By Alan Tovey and Anna Isaac
BRITAIN’S steel industry has given a
cautious welcome to the US’s decision
to grant a temporary extension to relief
on punitive tariffs on the import of
metals – saying that the 30-day lifeline
comes with a “health warning”.
Washington announced import levies of 25pc on steel and 10pc on aluminium earlier this year in a protectionist
move by President Donald Trump, who
has pledged to protect US jobs from
foreign competition – a policy that primarily targets China. However, Britain,
through its EU membership, was
granted a 30-day exemption – along
with Canada and Mexico – with the
relief ending at midnight on April 30.
In a last-minute concession, the US
said it would extend the exemption,
though the temporary nature of the
relief is hitting business prospects.
Trade association UK Steel said the
announcement was “greeted with a
certain sense of relief ”.
However, Gareth Stace, director of
the industry group, added: “This extension comes with a health warning:
30 days does not give us much time and
all signs point towards a US insistence
on the restriction of steel exports by its
allies. Such an outcome will be viewed
in a dim light by many. Indeed, for
some it could have a greater impact
than tariffs alone,” he said.
The US is a major export market for
Britain’s steel industry, accounting for
about 7pc of production and worth
about £330m a year. There are anecdotal reports that potential American
buyers of foreign steel are holding off –
even though they are ready to swallow
the tariffs – for fear of being attacked
on Twitter by Mr Trump.
The imposition of tariffs also raises
the prospect of triggering a fresh steel
crisis in the UK and across the EU, with
China – which is responsible for half of
the global output of 1.6bn tons a year –
flooding other markets with the metal
if it is shut out of the US.
The European Commission has hit
back at the US for delaying rather than
calling off plans to impose tariffs on
steel and aluminium imports, echoing
concerns that it is hurting businesses’
confidence to invest.
The decision to postpone, rather
than scrap the taxes, “prolongs market
uncertainty”, the commission said,
adding that it is “already affecting business decisions”. European authorities
also rubbished the notion that Europe
is responsible for dumping cheap steel
on world markets.
Cecilia Malmstrom, the EU’s commissioner for trade, had been in contact with US commerce secretary
Wilbur Ross and US trade representative Robert Lighthizer in recent weeks,
and will continue to discuss the matter,
the commission confirmed.
It added: “The EU should be permanently exempted from these measures,
Barclays boss
deflects calls
to quit from
irate investors
Staley faces down ‘shame’
claim over performance as
stormy AGM is disrupted
by climate change protests
By Iain Withers
BARCLAYS chief Jes Staley faced down
angry investors and calls for his resignation at a spiky annual general meeting in London yesterday, which was
disrupted by climate protesters taking
to the stage to call on the bank to stop
support for dirty industries.
Shareholders challenged the bank’s
top bosses on the lender’s under-performance, past misconduct, and bungled overhaul of its Smart Investor
stockbroking platform, at the event at
the QEII Conference Centre.
However, Barclays’ highest profile
new investor – the corporate raider Ed
Bramson, whose vehicle Sherborne
has built up a more than 5pc stake in
the firm ahead of an expected campaign to overhaul its investment banking unit – was not seen in attendance.
Barclays chairman John McFarlane
said bank bosses would meet Mr Bramson next week to discuss his proposals,
adding: “We are always open to ideas.”
Mr McFarlane also moved to quash
speculation he is planning a swift departure from the bank after three years.
He said that while he had instructed
the board to prepare for his successor,
he had always intended to serve for a
“minimum of four years”, adding: “You
are not getting rid of me yet.”
The chairman of Barclays’ investment bank, Sir Gerry Grimstone, has
ruled himself out for the role.
Protesters from the campaign group
People & Planet accused the bank of
causing “climate violence” and
chanted: “Fossil fuels have to go.” They
were forcibly removed by security.
One of the protesters, Chris Salt-
marsh, later told The Daily Telegraph:
“We did the protest because we feel
Barclays isn’t acting fast enough on climate change and it is still funding fossil
fuel extraction and industries.”
He praised Barclays’ rival HSBC
for last month turning its back on
financing high-carbon energy projects ahead of its own AGM under pressure from campaigners. He said the
group was planning further protests
against Barclays.
During questions from investors,
two separate shareholders called for
Mr Staley to be removed from his post
over his attempts to unmask a whistleblower two years ago – for which he
has recently been fined by City regulators but not banned.
“You should have known better than
to bring shame on our bank,” said one
investor, while another told Mr Staley
he should resign for “failings of
accountability”.
Barclays’ Mr McFarlane defended
his chief executive. He said Mr Staley
had made a “mistake” by trying to find
out who sent a “malicious letter” to the
bank containing allegations about a
colleague. He added that the board’s
response to the matter would have
been “much more serious” if the letter
come from inside the bank.
Barclays investors also poured scorn
on the bank for technical failings on
the relaunch of its Smart Investor platform last year, which led to outages and
customers moving to rivals.
All the resolutions were passed, with
more than 99pc of the votes cast backing Mr Staley’s re-election to the board.
Mr McFarlane argued the bank’s recent
first quarter results – which showed
improved trading at its beleaguered investment bank, despite an overall pretax loss due to hefty one-off misconduct
charges – proved they had reached a
“turning point in Barclays’ history”. He
said Barclays wanted to return more
cash to shareholders in future.
because they cannot be justified on the
grounds of national security.”
This is a reference to WTO rules,
which allow protectionist measures on
the grounds of national security. The
US has claimed that the tariffs fall
under this status.
Mr Ross told CNBC television yesterday: “We’re having some potentially
fruitful discussions about an overall reduction in trade tensions.”
But he added: “I don’t think we
have any intention to grant protracted extensions, that defeats the
whole purpose.”
RBS faces new
political storm
over latest jobs
and branch cull
By Iain Withers
Security removing climate change protesters from the stage at the Barclays’ annual general meeting in central London yesterday
TAXPAYER-controlled RBS has risked
another political furore by unveiling
plans to axe a further 162 branches and
792 jobs. The latest cull comes just five
months after the high street lender said
it would shut a quarter of its branch
network – or 259 out of its then 1,003
branches.
The latest round involves RBSbranded branches in England and
Wales that had been earmarked for inclusion in aborted “challenger bank”
Williams & Glyn.
The last RBS branch closure programme was met with a political backlash, with bank bosses hauled in front
of Parliament’s powerful Treasury select committee to account for the cuts.
Last night, Nicky Morgan, the committee’s chairman, warned that Government may have to intervene if the
risk of financial exclusion increases because of RBS’s decision.
Liberal Democrat leader Sir Vince
Cable said: “The Conservatives seem to
have forgotten about the ‘last bank in
town’ pledge, where communities
must have at least one bank or the local
Post Office must take over its duties.
“All this has happened because RBS
dragged off and defaulted on its Williams & Glyn spin-off.”
RBS said the closing branches were
all within 2.5 miles of the next nearest
RBS or NatWest. Use of RBS branches
in England and Wales has fallen by
30pc over the past four years, while use
of mobile banking has increased 53pc,
the lender said.
An RBS spokesman said: “We are no
longer launching Williams & Glyn as a
challenger bank. We now have two
networks operating in close proximity
to each other: NatWest and Royal Bank
of Scotland, in England and Wales.
“As a result, we have had to review
our overall branch footprint in England and Wales and we’ve made the difficult decision to close a number of
Royal Bank of Scotland branches.
“Customers of RBS in England and
Wales will be able to use NatWest
branches instead for their everyday
banking needs.”
Opposition in Scotland to RBS’s last
round of closures led the bank to reprieve 10 branches north of the border.
RBS has spent years and up to £2bn
trying to carve out Williams & Glyn to
satisfy European competition concerns, but abandoned the plan in 2016.
Johnston Press chief quits amid fears over £220m bond repayment
By Christopher Williams
THE chief executive of Johnston Press
has jumped ship as it sails toward a
debt iceberg that threatens to sink the
publisher of the i newspaper and more
than 200 local titles.
Ashley Highfield said he wanted to
pursue a portfolio of non-executive
roles and will step down at the Johnston Press shareholder meeting next
month. The 52-year-old also cited family reasons at the end of a turbulent
year in which he has faced a pay rebellion and an attempted coup by major
shareholders.
Mr Highfield’s resignation prompted
a 11pc spike in Johnston Press shares,
albeit from a very low base. His sudden
exit comes only three days after John-
ston Press awarded him a £250,000
cash bonus for last year.
The money will only be paid if the
company survives its ongoing debt
crisis under David King, who will step
up to the top job from his current role
as chief financial officer.
Mr Highfield, a former senior BBC
executive, has quit as the publisher
grapples with a £220 million bond that
is due to be repaid in full next summer.
It warned investors on Friday that its
declining business cannot support the
debt long term and that without a deal
with its lenders there is “significant
doubt” over its future.
Most of the debt is owned by the US
hedge fund GoldenTree, which bought
the bonds at a discount as the financial
prospects for Johnston Press deterio-
Ashley Highfield
cited family reasons
over his decision to
step down as the
chief executive of
Johnston Press
rated. It now has the upper hand in
talks of a potential debt for equity swap
with shareholders, many of whom have
seen their investments nearly wiped
out. City sources said that if the company is to avoid administration, it will
need to begin a formal restructuring
process in the next few months.
Johnston Press has been carrying
out a strategic review with bankers
from Rothschild and lawyers from
Ashurst. It paid the advisers £3.4m last
year, more than a third of its market
capitalisation, and said it had formed
an ad hoc committee to explore
refinancing with lenders.
Shares have collapsed, giving the
company a stock market valuation of
just £9.6m, down from a pre-financial
crisis peak of around £1.4bn.
Activists, including the listed fund
Crystal Amber and Christen AgerHanssen, the owner of Sweden’s Metro
freesheet, have bought large stakes in
the hope of triggering a turnaround.
An attempt to oust the Johnston
Press board last year failed due to a
poison pill clause in its agreement with
lenders, however.
They now face a sharp dilution in a
debt-for-equity swap or potential
Ofcom to investigate Trinity’s
Express and Star acquisition
MEDIA watchdog Ofcom has launched
an investigation into whether the takeover of the Express and Star newspapers could damage free expression and
impact on editorial decision-making.
The Culture Secretary Matt Hancock
ordered the public interest inquiry and
200
The £200m merger unites two papers that
are on polar sides of the political divide
asked the regulator to examine if the
£200m acquisition of the titles by Trinity Mirror could lead to an insufficient
variety of views in newspapers.
The landmark deal masterminded by
chief executive Simon Fox is in limbo.
Trinity Mirror has paid the Express and
Star’s former owner Richard Desmond
but is banned from making changes to
their operations while investigations
are carried out. It means Mr Fox is
barred from making the £20m a year
cuts to spending that motivated the
deal.
Mr Fox has also said that Trinity Mirror, publisher of traditionally Left-leaning titles such as the Daily Mirror, will
not seek to shift the editorial stance of
the Express.
Under Mr Desmond, who became
Trinity Mirror’s number three shareholder as a result of the transaction, it
took Right-wing positions on issues
such as immigration and campaigned
in favour of Brexit.
However, new Express editor, Gary
Jones, has signalled he may seek to
change the tone of the newspaper.
He told a parliamentary committee
on Islamophobia last week that he was
“uncomfortable” with some of the
newspaper’s anti-immigration front
pages. Mr Jones said: “Some of them
are just downright offensive.”
Ofcom is due to report back to Mr
Hancock by the end of this month.
amendments to the group’s capital
structure cannot be agreed with relevant stakeholders, alternative arrangements for the restructuring or
refinancing of the bonds prior to June
2019 will be explored as part of the
strategic review process.”
Mr Highfield’s seven-year tenure has
been overshadowed by extreme pressure on local newspapers from the loss
of classified advertising and readers.
He sought to service the Johnston
Press debt, built up in an ill-fated
acquisition spree, by maintaining margins with repeated rounds of painful
cost cutting. He said the £24m takeover of the i was a highlight. Johnston
Press has improved the sales and profitability of The Independent spin-off
since taking control two years ago.
Trading in Russian giant
EN+ to be suspended today
By Jon Yeomans
FRENCH/LIONSGATE/KOBAL/REX/SHUTTERSTOCK
By Christopher Williams
wipeout in insolvency. GoldenTree has
previously bought up newspaper debt
cheaply in Canada in order to seize
control of the publisher Postmedia and
drive market consolidation.
Despite the woes of Johnston Press,
many of its titles generate cash and
could have strategic value to rival
publishers. Its printing and property
assets are also being sized up.
Johnston Press signalled in its
annual report it aims to convince GoldenTree to exchange some of the bond
debt for shares in a restructured company. It said the process could also
tackle its £34m pension deficit to address potential opposition to a deal
from trustees.
Johnston Press warned in its annual
report: “In the event that consensual
Morphin time Hasbro is paying Saban £382m to license
toy brands including Power Rangers. Haim Saban created
the teenage superheroes who have starred in films and TV.
EN+’s journey from blockbuster flotation to ignominy appears to be almost
complete after the London Stock
Exchange said it would suspend trading in the sanctions-hit energy giant
from today.
The Russian aluminium and power
company, which raised $1.5bn (£1.1bn)
with much fanfare in a placing last
November, has been crippled by punishing sanctions imposed by the US last
month on companies and individuals
linked to Vladimir Putin.
The LSE said it would halt trading in
EN+’s global depositary receipts – certificates that allow UK investors to hold
its shares – from 5:15pm today.
Under the sanctions, EN+ will not be
allowed to trade in US dollars from May
7, in effect freezing it out of international markets. The company is 70pc
owned by tycoon Oleg Deripaska, who
is himself a subject of sanctions.
Last week EN+ said it had struck a
deal in principle with Mr Deripaska to
have him lower his stake to below the
50pc threshold that would trigger the
sanctions, in a last-ditch attempt to escape the punitive measures.
The company and its chairman, Greg
Barker, has been negotiating with the
US sanctions office for an extension until October to help it complete the
transfer of ownership.
These pleas appear to have fallen on
deaf ears, with the LSE saying trading
would be suspended from tomorrow to
allow time to comply with the May 7
cut-off.
EN+’s GDRs have lost half their value
since the sanctions were announced.
Bloomberg data suggest trading volumes have been virtually nil since
then, with investors seemingly unable
to shift their stock.
Some investors and politicians criticised the decision to allow the IPO to
go ahead, given Mr Deripaska’s close
links to the Kremlin.
The US drafted the latest round of
sanctions in response to Russia’s “malign activities”.
4
Wednesday 2 May 2018 The Daily Telegraph
***
Technology Intelligence
MPs to summon
Zuckerberg if he
refuses to face
them voluntarily
THE chairman of the parliamentary
investigation into Facebook and fake
news has warned that he will issue a
formal summons for Mark Zuckerberg
to appear for questioning, if he refuses
to come voluntarily by May 24.
Damian Collins, who chairs the digital, culture, media and sport committee sent a letter to the Facebook
founder following the questioning of
Mike Schroepfer, its chief technology
officer, at a public session last week.
The committee said it “found his evidence unsatisfactory” and has called
again for the Facebook founder to
appear to give “accurate answers”
about how it is protecting the privacy
of 40 million Facebook users in the UK.
Mr Collins sent a list of 40 specific
questions he expected to be answered
regarding so-called dark adverts and
Facebook’s financial gain from them;
third party app developers; foreign
interference and advertising spend in
elections; the employment of GSR
co-founder Joseph Chancellor; the way
Facebook stores data.
The committee has asked Facebook
to respond to each point, and confirm
Zuckerberg’s attendance before the
committee by May 11.
“It is worth noting that, while Mr
Zuckerberg does not normally come
under the jurisdiction of the UK Parliament, he will do so next time he enters
the country,” the letter read. “We hope
that he will respond positively to our
request but if not the committee will
resolve to issue a formal summons for
him when he is next in the UK”.
The summons would mean that if Mr
Zuckerberg lands on British soil, he
will have to face MPs or he will be
reported as “in contempt of Parliament”. Historically, the House of Lords
have powers to imprison or fine those
guilty of contempt, but the Commons
has not punished a non-member since
1978. The Lords has not done so since
the 19th century.
Facebook is currently entangled in a
data privacy scandal surrounding the
way in which it allowed developers to
stream personal information about its
users without their knowing. In 2015, a
company called GSR was set up to harvest the personal information of Facebook users and pass it on to Cambridge
Analytica, which used it to micro-target voters with political advertising in
election campaigns.
When Facebook realised that GSR
was siphoning data using a quiz app, it
told it to delete the data but it was
passed on to Cambridge Analytica. GSR
co-founder Mr Chancellor went on to
take up a role at Facebook, where he is
still employed. Facebook believes that
the data of 87 million people was collected by the app.
As part of its ongoing investigation,
the DCMS has quizzed Christopher
Wylie, former researcher at Cambridge
Analytica and data scandal whistleblower, and Alexander Nix, former
chief of Cambridge Analytica.
By Matthew Field
JUSTIN SULLIVAN/GETTY
By Margi Murphy
Facebook new
dating service
sends Match
shares crashing
MP Damian Collins has called for Mark Zuckerberg, the Facebook founder and chief executive, to give accurate answers to Parliament
FACEBOOK will launch a dedicated
dating service in a challenge to hugely
popular dating apps such as Tinder.
In a move to attract users from dating apps, Facebook will launch features within its app that connect users
to people who are not their friends in
order to help them meet new people
and start relationships.
Speaking at Facebook’s F8 conference in San Jose, California, Facebook
chief executive Mark Zuckerberg said:
“If we are focused on helping people
build meaningful relationships then
perhaps this is the most meaningful of
all ... so, we are launching a whole set of
new features around dating.”
The news sent shares in Match, the
world’s leading dating and matchmaking company which owns Match.com
and Tinder, down as much as 18pc in
late New York trade.
Mr Zuckerberg said: “This will be
about building long-term relationships
around dating. It’s not just about hookups.”
Facebook users who are attending
an event or in a group will be able to
connect to and message other people
going to that event who have dating
opened.
The new dating service came as Mr
Zuckerberg detailed a number of privacy changes to Facebook in the wake
of a data scandal which has seen the
company attacked by politicians and
the media. He said Facebook would
introduce a user’s tool called Clear History, which would take web trackers
and cookies from advertisers from
their Facebook account.
However, he also said the company
would continue developing new tools
to connect people.
“We are going to keep building, even
as we focus on keeping people safe,” Mr
Zuckerberg said.
Koum parting leaves WhatsApp’s privacy pledge looking vulnerable
J
an Koum’s Facebook post
announcing his departure from
the social network was far from
the typical Silicon Valley farewell.
While tech executive exits are often
explained under vague “personal
reasons”, WhatsApp’s pistonhead
founder was more up front, saying he
wanted more time to collect Porsches.
But what was more interesting was
what he didn’t say. Mr Koum, who was
made a multi-billionaire four years ago
by Mark Zuckerberg, made no
mention of the Facebook founder. It
almost seems ungrateful.
Mr Koum, who sold WhatsApp to
Facebook for $19bn (£14bn), never
quite fit in the Bay Area mould. The
42-year-old’s upbringing in Soviet
Ukraine, before moving to California
at 16, fostered a deep support for
privacy as well as an in-built wariness
of the ways technology can be
manipulated for ill. Early posts on
WhatsApp’s blog, before it was sold to
Facebook, disparaged the data tactics
of big internet groups, in striking
contrast to Mr Zuckerberg’s inherently
optimistic vision and Facebook’s
advertising-funded empire.
So, when the social network came
knocking with an acquisition offer in
2014, it had to pay over the odds.
WhatsApp is Facebook’s biggest
acquisition to date and, at the time,
$19bn looked like an excessive sum for
a company that charged its users a
mere $1 a year (a nominal fee since
dropped). When the deal was
announced, Mr Koum said nothing
would change, and that advertising
would never feature on the app.
He has kept his word. WhatsApp
remains free, and adverts are nowhere
to be seen. The messaging app has
thrived under Facebook’s ownership,
with monthly users trebling to 1.5bn.
It has introduced encryption
features that stop messages being
intercepted, earning the applause of
privacy activists and fury from
hawkish politicians, who say it has
become a haven for terrorists. But at
the same time, there have been
potential sources of tension. In 2016,
Mr Zuckerberg began to knock down
the walls protecting WhatsApp from
the Facebook machine, connecting
data from the messaging app such as
phone numbers and address books
with the social network. The move
landed Facebook a €110m (£97m) fine
from the European Union.
Mr Zuckerberg’s influence has been
felt on the app in other ways, too: the
app has been one of four Facebook
properties to rip off the “Stories”
feature of its rival, Snapchat. Facebook
knows WhatsApp must eventually
make money. It has been courting
corporate users, whom it plans to
charge to use the app for customer
service. But these efforts have been
slow, and it is easy to see how
Facebook could be tempted to exploit
the app’s popularity in more obvious
ways.
Mr Koum appeared to be a brake on
some of Facebook’s strongest instincts.
With him out of the picture,
WhatsApp’s privacy principles face a
stern test.
‘Uber for carers’ raises $17m in
bid to expand home-help model
By Jack Torrance
A START-UP dubbed the “Uber for
carers” has raised $17m (£12.5m) to
help fund its plan to transform the
struggling home-care industry by
buying up failing providers and moving their patients and carers on to its
digital platform.
Cera, which is backed by Standard
Chartered’s ex-chief Peter Sands and
counts former deputy prime minister
Sir Nick Clegg among its advisers, will
use the cash to expand beyond its current focus on London and the Southeast by taking over companies in
Birmingham, Leeds and Manchester.
The industry is in crisis, with councils struggling on thin budgets and
more than 1.2m elderly people missing
out on the care that they need, according to Age UK.
But Cera’s founder, Ben Maruthappu,
said the company can cut costs and
improve standards by digitising rotas
and logistics, and operating at a larger
scale than existing providers, many of
which have just a handful of carers on
their books.
Mr Maruthappu told The Daily Telegraph that Cera is “already in deep discussions” about taking over “several”
home care companies and expects to
‘The German market is
interesting because the
population compared to
the UK is actually older’
make its first acquisition “imminently”.
Cera claims to be able to let those in
need of a carer book one online,
responding to inquiries within an hour
and in most cases starting care on the
same day when requested.
Its carers regularly record patients’
medical information using a smartphone app, and the company claims it
can use the data collected to predict
when they are likely to fall ill and take
preventive action.
The funding comes from investors
including Guinness Asset Management
and venture capital firm Yabeo. Cera
plans to use some of the cash to make
its first overseas foray into Germany,
where Yabeo is based.
Mr Maruthappu said: “The German
market is interesting because the
population compared to the UK is actually older and the care market is even
more fragmented.”
Last week, a report by Bloomberg
claimed people close to Cera had
posted fake reviews on the website
Trustpilot, which said it had deleted
some of the posts.
Cera said: “We have looked into this,
and Trustpilot have removed unverified reviews.”
Plenty to chew over
as Just Eat clicks on
400m UK orders
By Bradley Gerrard
HUMAN MEDIA LAB, QUEEN’S UNIVERSITY
JAMES TITCOMB
COMB
COMMENT
Beam me up TeleHuman 2 is described as the world’s first
holographic video-conferencing system. Developed by
Canada’s Queen’s University, the system “effectively
simulates teleportation” by allowing people in different
locations to appear before one another in life-size 3D.
ONLINE takeaway website Just Eat has
passed 400m UK orders after swallowing its rival Hungryhouse. Orders from
UK customers rose nearly a quarter to
29.7m in the first three months of 2018,
helped by the 1.4m transactions from
its recent acquisition.
The strong UK performance was
matched by its international division,
which saw orders rise 46pc to 21.9m
largely due to the growing popularity
of the SkipTheDishes brand which Just
Eat owns in Canada.
Just Eat also benefited from delivering more meals itself after realising the
demand for delivery services from
large branded restaurant chains.
Last month, the company said it was
investing £50m in growing its delivery
arm due to an estimated £18bn potential market serving the likes of Burger
King and Papa John’s.
Shares in the company topped the
FTSE 100 on the back of the numbers
after an initial rise of nearly 5pc to 812p.
But some investors believe Just Eat
still needs to address some key issues.
Hargreaves Lansdown’s Steve Clayton
said: “The profitability of the group’s delivery services is yet to be proven, compared to its successful core offering.”
The Daily Telegraph Wednesday 2 May 2018
***
5
Business
Crunching the
numbers on
Sainsbury’s
and Asda deal
As the competition
watchdog puts the
£15bn tie-up under
the microscope,
Ben Woods assesses
the chances of it
receiving approval
B
ritain’s competition
watchdog is gearing up for
one of the biggest
challenges in its history.
Asda and Sainsbury’s
potential £15bn mega
merger has placed the Competition
and Markets Authority (CMA) under
intense pressure.
Politicians are pitching the deal as a
chance for the organisation to prove
its mettle, but getting under the skin
of where the competition concerns lie
is far from simple.
Meanwhile, the PR battle over how
the deal should be perceived is
gathering steam, with heads clashing
over which data best reflect the true
power of the combined company. But
what are the differences between the
figures flying around the deal, and
what will the CMA focus on if an
in-depth investigation is launched?
When the bare bones of the mega
merger began to emerge on Saturday
there was a scramble to understand
how big this company would be.
Attention turned to the latest available
data from Kantar Worldpanel. It
suggested the new company would
hold around a third of the market
share and overtake the current
number one player, Tesco.
Since then, fresh data have been
announced, but the picture is similar.
It showed the potential merger of
Sainsbury’s and Asda would create a
grocery giant with 31.4pc of the
market, based on figures for the
12 weeks ending April 22.
It would mean the enlarged group
would leapfrog Tesco, which holds
27.6pc for the period. The data focus
on all products bought by customers
in-store across the main grocery
players, from Tesco and Morrisons, to
Lidl and Ocado. However, when
Sainsbury’s Mike Coupe stood up in
front of journalists on Monday – the
day the deal was announced – these
figures were markedly absent.
Instead, the boss of Britain’s second
biggest supermarket guided towards a
separate set of Kantar Worldpanel data
that looks across the year. It reveals a
lower figure for combined market
share – 26.3pc – and a narrower gap
between the potential new firm and
Britain’s biggest supermarket. Tesco
holds 24.6pc for the 52 weeks to
March this year.
On the face of it, the desire from the
two supermarkets to push for the
smaller number is clear. It makes the
new entity appear less dominant and
the competition issue less severe.
However, the argument does run
deeper. It is not just about the size of
the number, but about how the data
are gathered. The annual data stretch
the pool to a wider universe of
retailers that sell grocery products, not
just the supermarkets.
In his press conference, Mr Coupe
said it was important to consider that
Boots and M&S were also competitors
to the likes of Sainsbury’s and Asda
because they also sold items like
shampoo and food. The two
supermarkets may be keen to press
the issue on the smaller market share
figure, but is the CMA likely to take it
into consideration?
While market share would play a
part in the CMA’s thinking, the focus of
a potential probe is more likely to lie
on how the supermarket’s two stores
overlap on a local level.
Peter Willis, competition partner at
law firm Bird & Bird, said the CMA will
take a two-pronged approach.
He said: “The CMA ... will focus on
two issues: the local analysis will
follow a well-trodden path – the CMA
will be concerned and may expect the
parties to sell off individual stores if
the merger reduces the number of
stores of competing brands within a
10 or 15-minute drive time (depending
Property firm
raises £150m
to up ante for
housebuilders
By Rhiannon Curry
PROPERTY
investment
company
Urban Exposure yesterday launched
plans to raise £150m via a listing on
London’s junior market after shelving
its previous plans to float in 2014.
The Aim listing will enable the company to raise money to increase both
the amount it is able to lend to housing
developers, and to pick up more clients
for its asset management division
which looks after companies’ finances,
it said.
It offered 150 million shares to investors at £1 each, and the float gives the
company a market value of £165m.
Investors including Standard Life,
BlackRock and Invesco have bought a
stake. The company will begin trading
next Wednesday.
Urban Exposure was originally set
up in 2002 by Randeesh Sandhu, a former risk analyst at Deutsche Bank and
Royal & Sun Alliance Investments. He
hoped to plug the gap left by the banks
after the last two housing market
crashes when development finance
dried up as lenders scaled back their
exposure to the property market.
In recent years, the company has
£165m
The market value of Urban Exposure after
it offered £150m shares to investors at £1 a
piece. Trading starts next Wednesday.
on the size of the store) to three or less.
At a national level, the analysis is less
predictable, and will focus on whether
the merger changes the overall
competition dynamic for the better,
perhaps by creating a stronger
challenger to Tesco, or instead makes
it more likely that the market will slip
into a more cosy state.”
Analysis by The Daily Telegraph
showed that more than one in 10 of the
stores owned by the two companies
are close enough to prompt concerns.
It found 65 Asda sites are in the same
postcode sector as Sainsbury’s, with
the overlap intensifying in southern
England where Sainsbury’s is stronger.
Another key factor could be Tesco’s
£3.7bn takeover of Britain’s biggest
food wholesaler, Booker. While
Sainsbury’s and Asda have been quick
Aviva’s buy-back apology over its
bid to scrap preference stock
By Lucy Burton
AVIVA has unveiled its biggest share
buy-back plan in recent history a day
after it offered thousands of investors
a £14m apology for its preference
share saga.
The 320-year-old insurance giant
has promised to buy back up to £600m
worth of its shares, its biggest in well
over a decade and double the size of
last year’s.
The amount is more than the £500m
Aviva had earmarked back in March,
when it said it was looking to deploy its
£2bn war chest by purchasing its
shares, going after M&A deals and paying down debt.
The FTSE 100 insurer decided to
boost the target for its share buy-back
after realising it is likely to spend less
than the initial £600m it had earmarked for acquisitions this year, one
source said.
Aviva is in the middle of trying to
rebuild trust among its investors after
Goodwill gesture
Who can claim ... and how?
Some 2,000
shareholders
who sold
preference
shares between
March 8 and
Aviva’s volte
face on March
22 are due a
payment, which
will cost it
£14m, writes
Adam Williams.
Aviva said it
would write to
all investors
with details of
how it intends
to make the
goodwill
payment. It
expects to be in
a position to
announce more
details by July
31. Anyone
charged dealing
fees by a
stockbroker will
also be able to
claim them back
from Aviva.
However, it will
not compensate
investors for any
tax incurred on
share sales.
The company
has also set up a
helpline
dedicated to
preference
share payout on
0800 046 8988.
Bitcoin frenzy drives 228pc
rise in Plus500 customers
By Lucy Burton
PLUS500 has unveiled another strong
quarter off the back of the recent hype
for digital currencies after tens of thousands of punters rushed to the online
trading business to get in on the frenzy.
The London-listed firm said it
attracted a 228pc increase in new customers for the three months to March
Asaf Elimelech, chief
executive, said
Plus500’s flexible
model will help it
navigate changes to
CfD regulation
as 72,960 people were driven to the
site by volatile markets and “high levels of interest” in its cryptocurrency
offering. Firms such as Plus500, which
let people bet on the change in price of
a digital currency without owning the
underlying asset, benefited from the
interest in Bitcoin late last year after it
hit a high of $20,000 (£15,000) in December.
The sudden attention on the market
created a windfall for Plus500, which
said its revenues almost quadrupled to
a record $297.3m for the period compared to this time a year ago. The
strong quarter follows an active 2017
that saw profits at the firm rise 70pc.
However, the business said that market conditions have since returned to
normal levels, echoing its rival
IG Group, which warned in March that
the frenzy around cryptocurrency
trading had slowed dramatically.
“We do not expect such an exceptional performance to be repeated in
the rest of the year,” Plus500 said.
The company, which is based in
Israel, also looked to soothe investor
concerns over EU regulatory measures
coming into force in the weeks ahead
which are aimed at protecting inexperienced investors from losing money
on risky contracts for difference bets.
It said it has begun the process of
trying to get its experienced traders
reclassified as professional investors
and has five licences outside of Europe.
“Having a flexible business model
and a lean cost structure enables us to
optimise our performance as necessary
despite the announced regulatory
changes,” said CEO Asaf Elimelech.
its botched attempt to scrap £450m
worth of high-paying preference
shares. It later reversed on that plan
amid a furious backlash from MPs,
fund managers and pensioners who
believed the shares were irredeemable.
It announced the large share buyback the morning after it promised to
offer a “discretionary goodwill payment” to the investors who lost money
by selling their preference shares
between March 8 and 22.
The company, once described by its
boss Mark Wilson as a lazy “couch potato” stuffing itself with junk food and
staring blankly at the TV, announced
that it was sitting on a £2bn pot of spare
cash back in March.
Mr Wilson said at the time that the
sluggish business he inherited in 2013
had now become a “triathlete” after
slimming down and boosting profits.
However, analysts said this week that
the row over its preference shares had
been a “costly mistake” that had damaged its reputation.
Virgin enjoys shares
uplift after pushback
on competition fears
By Iain Withers
VIRGIN Money has defied its critics in
the City by posting solid numbers for
the start of the year, sending its shares
up more than 6pc.
Investors had feared the challenger
bank’s margins would come under
pressure due to cut-throat competition
in the mortgage market and the recent
withdrawal of a cheap Bank of England
funding scheme.
However, the bank told investors
today that its margins had held up,
while growth in deposits was ahead of
expectations at 7.4pc to £31.1bn.
“It’s been a really strong quarter,”
chief executive Jayne-Anne Gadhia
told The Daily Telegraph. “People predicted a margin squeeze but that hasn’t
happened for us at least.”
Ms Gadhia said Virgin Money was
seeing more customers trying to switch
from beleaguered rival TSB, which has
been hit by more than a week of technology failures.
She said Virgin Money’s new digital
bank would launch for testing later this
year, and would be on a “separate” system to avoid any similar issues.
Shares closed up 18p at 296.7p.
to downplay the impact of this deal, it
is likely to have a part to play when the
CMA comes to assess store overlap.
In the past, the CMA would have
only considered the major players
when drilling down into whether or
not customer choice and price would
be harmed by a deal of this magnitude.
However, when running the rule
over Tesco-Booker, it looked closely at
the proximity of small Tesco stores to
Booker’s Budgens convenience stores.
It also took into account the
positioning of German discounters
Aldi and Lidl. If the CMA were to take
the same approach with the
Sainsbury’s and Asda deal and include
the discount supermarkets in their
thinking, then the proposed threat to
competition may be diminished.
It could potentially drive down the
number of stores the two
supermarkets are expected to off load.
Paul Harvey, the associate director
of retail consultancy Newton, said the
Tesco-Booker tie-up may help Asda
and Sainsbury’s tie-up win approval.
He said: “This deal may be approved
by the CMA as both brands are to be
retained.
“Further still, Asda and Sainsbury’s
generally cover different geographies
and don’t plan to close any stores –
which means that the situation
remains largely the same for the
consumer.”
He added: “The CMA’s approval of
Tesco’s merger with Booker suggests
that it has recognised the changing
competitive landscape and growing
challenge from the likes of Lidl, Aldi
and Amazon.”
focused on providing finance for small
housebuilders working in regional
markets in the UK, which find it harder
to secure funding in order to build
homes than their larger, Londonbased rivals.
The company had intended to float
one of its funds in 2014 in order to raise
£500m, but put the plans on hold after
a string of initial public offerings at the
time led to potential investor fatigue.
But Urban Exposure said the time is
now right to launch a second attempt
because of a shortfall in funding available for development and a huge need
for new homes.
Mr Sandhu said that meeting the
shortfall of homes the UK needs will
require an estimated £208bn of additional funding over the next 10 years,
almost double what is currently provided. He also said that the Government was keen to see more companies
entering the market.
“Small builders make up one third of
the market,” he said. “They used to be
two thirds, and a lot of [the reduction]
is down to a lack of bank finance.”
6
Wednesday 2 May 2018 The Daily Telegraph
***
Business
Sainsbury’s takeover of Asda
is full of risks, so sell the
shares and buy Tesco instead
Sainsburys
 Market value:
£6.8bn
 Turnover
(March 2018):
£28.5bn
 Pre-tax profits
(March 2018):
£409m
 Yield (March
2018): 3.3pc
 Most recent
year’s divi: 10.2p
 Net debt
(March 2018):
£1.9bn
 Return on
capital (March
2018): 8.4pc
 Cash conv
ratio (March
2018): 123pc
 p/e ratio (Mar
2019 est): 15
400
350
300
Questor
Follow the Money
Richard Evans
The benefits of
the merger are
theoretical but the
share price rise is
a hard fact – take
advantage and sell
QUESTOR’S Sainsbury’s tip has come
on in the hope that the enlarged
good in a way that we never expected.
business can exploit its dramatically
Its proposed takeover of Asda has sent
increased scale. Questor is firmly in the
its shares soaring by 16.6pc this week
former camp.
to close at 314.5p last night.
Large acquisitions are typically
This gives us a profit of
fraught with difficulty. Before
J
Sainsbury
19.3pc on our original
they even take place they
tip at 263.6p in March
face months of scrutiny
Sell
last year, and a gain of
from regulators, diverting
32.6pc for those who
management’s attention
Asda
deal
fraught
followed our reiterated
from running the business
with danger; share
“buy” advice at 237.2p
itself. In Sainsbury’s case,
price rise changes
in February, when we
such distractions could
risk-reward balance
identified Sainsbury’s
be especially dangerous
as one of the most obvious
given the ferocious
bargains thrown up by the stock
competition from discounters
market turmoil of that month.
such as Lidl and Aldi, and from a
In January we had singled out
rejuvenated Tesco.
Sainsbury’s (at 241p at the time) as
Then, if regulatory approval is
the domestically focused stock
granted, there are all the problems
most likely to recover strongly if,
of integrating the two businesses.
as we predicted, Brexit-induced
This process may involve the disposal
pessimism about the UK economy of stores to satisfy the competition
turned out to be overdone.
authorities.
The question for investors now
There are numerous instances in
is whether they should
the past of companies coming to grief
bank a profit by selling
as they attempted to handle the many
the shares or hold
challenges involved in this task. There
250
200
2013
2014
2015
2016
is also the fact that the risk-reward
trade-off changes when a share price
gains 20pc or 30pc. The potential
rewards from holding Sainsbury’s
shares are now, in Questor’s view,
significantly lower relative to the risks
than they were when we tipped them.
We advise readers to take the
bird in the hand represented by the
sharp share price rise over all the
uncertainties of the takeover and sell
the shares.
The proceeds could be reinvested
in Tesco shares, which have begun to
recover as a result of the group’s return
to health under Dave Lewis, the chief
executive, but which have arguably not
2017
which holds a stake in JD Sports
sports, said: “We expect profits of
£318m in 2018. This would represent a
tripling in earnings since 2015. That is
very impressive.”
Santa Barbara said the valuation
was now very attractive. “The shares
are trading at less than 15 times
earnings for Jan 19 and less than 14 for
the following year,” he said. He also
pointed out that earnings predictions
for the group had often proved
conservative in the past.
“Eight out of 10 previous earnings’
forecasts have proved conservative,
sometimes significantly so,” the fund
manager said.
He put the stock’s low valuation
down to it being “tarred with the same
brush as UK retail” but said JD Sports
was actually an international business.
It recently announced the acquisition
of Finish Line, an American sportswear
chain.
“If JD Sports had gone straight to
America as its first overseas market,
investors would have been spooked,”
Santa Barbara added. “But it has been
testing its ability to take its formula
abroad in other markets such as
Australia.
“America is probably not the easiest
market in the world but JD Sports is
not taking new products there – Nike
shoes are the same everywhere.
There are risks, but that appeases
me somewhat.”
Questor says: buy
Ticker: JD
Share price at close: 392p
Key
numbers
Close: 314.5p
450
p
2018
kept pace with the improvements in
the business itself, as we argued here
two weeks ago.
Questor says: sell
Ticker: SBRY
Share price at close: 314.5p
Update: JD Sports Fashion
Last month JD Sports announced
record profits of £294.5m for 2017,
a 24pc rise. Despite this, Questor is
sitting on a paper loss of 10.9pc on its
“buy” tip at 440.1p from April last year.
But we stand by our advice. Eustace
Santa Barbara, co-manager of the
Marlborough Special Situations fund,
Read Questor’s rules of investment before
you follow our tips: telegraph.co.uk/go/
questorrules; twitter.com/DTquestor
Share prices www.telegraph.co.uk/shares
© 2018 Tradeweb Markets LLC. All rights reserved. The
Tradeweb FTSE Gilt Closing Prices information contained
herein is proprietary to Tradeweb; may not be copied or
re-distributed; is not warranted to be accurate, complete or
timely; and does not constitute investment advice. Tradeweb
is not responsible for any loss or damage that might result
from the use of this information.
52 week
High Low (p) Stock
Price (p) +/- Yld
P/E
1174⅜
1554
218 Drax Group ●
733 Nat Grid
1176½ SSE
52 week
High Low (p) Stock
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312
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154⅛* +2½ 5.1 15.1
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941
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861*
+1 2.2
865
518⅜
450 Merchants Tst
506*
-2 5.0
533
351¾
205 Kenmare Res
210
-1½ —
15.9
274.84 263.31 Treas 2% IL 35 266.02 +1.03 1.18 0.00
565
5¼ Smith (DS)
528* +5⅝ 2.9 23.9
883½
650 Biotech Growth
699
-7
—
734
826½
651½ Monks ●
782
-3 0.2
764
120½
54 Lonmin
58⅛
-⅜
-0.2
3254
1712¾ Smurfit Kappa
3094* — 2.5 19.8
83
66¼ BlackRock Com
79¼
-¼ 5.0
83
825
710 Murray Income
767
-1 4.7
839
1074
577¾ Polymetal ●
1186
5540 Randgold Res
10-year Government Bonds
Spread vs
Spread vs
Yield%
Bunds
T-Bonds
0.79
+0.23
-2.18
France
77½
-1⅛ 3.2 15.1
-⅜ 1.2 35.6
372.89 354.79 Treas 2½% IL 24 359.74 +0.53 1.96 0.00
59 Severfield
709¾ -19⅝ 4.6 11.8
5790* +25 1.5 27.0
393
311 BlackRck Emer Euro 344
-1 3.2
369
1314
1127 Murray Intl ●
-4 4.3 1153
8255
1215* +25 2.5 19.8
169½
144 BlckRock FroInv
165
+½ 3.1
159
77
61½ Northern 2 VCT
63
— 8.7
66
4226½ 2882½ Rio Tinto
3914½ -31½ 5.4 10.9
2326
1696 Weir ●
2147* +11 2.0
346
298 BlckRck Grt Euro
332
+3 1.6
349
102
88½ Northern 3 VCT
89½
— 11.7
95
981¾
724¼
214
185 BlckRck Inc&Grth Inv 199
+3 3.3
210
86½
64⅝ Nthn Venture
67
— 16.4
70
Oil & Gas +0.40%
2.9
Food producers -0.06%
–
-2.41
-0.52
-2.93
3387
2386 Ass Brit Fds
2700
Great Britain
1.40
+0.84
-1.57
154
118 Carr’s Grp
142½* +4½ 2.9 18.5
United States
2.97
+2.41
–
2711
2136 Coca-Cola HBC
2475 +31 1.9 24.0
3497¾ 2625 Cranswick ●
900
670½ Hilton Food
-4 1.5 17.8
2902 -12 1.6 21.7
880
-6 2.2 23.5
+1
501½
400½ BlackRock Latin
470* -6½ 2.0
551
268
234 Pacific Assets
257½ +1 1.0
171
144 BlckRck NrthAmerInc 155¼ +¾ 5.2
167
1970
1720 Pantheon ●
1960 +5
1446¼ 1155 BlackRock Small
1430 +2½ 1.8 1565
411⅝
329½ Perpetual Inc & Gr ● 358
+½ 3.9
536
527
-1 1.7
41680
38700 Personal Ass ●
—
425
226
404¼ BlkRk Throg Tst
307⅛ BlackRock Wld M
380½ +½ 4.1
202½ Highbridge MultiStrt 225 +1½ —
574
39200
558½ Vedanta Res ●
5906* +38 2.5 27.1
-4 6.0 -120.1
271
550⅛
437 BP
547¾ +9¾ 5.4
403
237
164¼ Cairn Energy ●
227
+⅜
—
6.8
1.4 38920
45¼
22½ EnQuest
35⅞
…
—
-9.0
— 2322
—
433
222
97¾ Caterpillar $
141½ -2⅞ 2.2
0.4
133⅞
102½ Chevron $
124
-1⅛ 3.6
1.1
44¾
36⅛ Coca-Cola Euro $
38½
-¾ 3.2
1.1
77⅞
64⅞ Colgate Palm $
64⅞
-¼ 2.6
1.4
126⅝
83¼ Dr Pepper $
119⅞
-⅛ 1.9
2.5
77⅛
61¼ DowDuPont $
62¼
-1 2.4
0.6
1.4
3475
1950 Clarkson ●
2420 +10 3.0 23.2
89¼
72⅛ Exxon Mobil $
76⅝
-1⅛ 4.3
543½
300 Northgate
364⅝ -6⅝ 4.9
25
10⅛ Fiat Chrysler $
21⅝
-¼
—
—
—
—
589
367¾ Royal Mail
585 +3¾ 4.0 21.3
77¾
28⅜ Foot Locker $
42
-1 3.3
1.6
119
— 5.5
—
309
185¼ Wincanton
243½ +7 3.8
36⅞
-¼ 7.2
—
Travel & Leisure +0.92%
383¾ Safestore ●
548½ +½ 2.6
—
429⅜
330⅞ St Modwen ●
416⅜ +6¼ 1.5 15.5
1046
837 Savills ●
966½* -16 3.1 16.4
654⅜
477¼ Segro
646*
-¼ 2.5
—
1055
920 Shaftesbury ●
1011
— 1.6
—
318¾
266 Town Centre
289
-3 4.0
—
151⅜
139⅜ Tritax Big Box ●
149¾
-⅛ 4.5
141
842
618 Unite ●
837½* +4 2.7
—
—
325
237 Urban&Civic
320
+1 1.0 66.7
105¼
97 Warehouse REIT
101
+1 2.5
97
1125
840½ Workspace Gp ●
1117 +8 2.1
—
Retailers -0.01%
361
163¾ Brown N
230
31⅞ Carpetright
708½
571⅞ Dairy Farm
207¼ +2⅝ 6.9 47.0
43
+½
—
43.0
619⅜* +8 2.5 28.2
-⅝ 12.9
5.6
2777
734⅞ Dignity
1100 +9 2.2
9.5
349⅝
145¾ Dixons Carph ●
202½
-½ 5.6
7.9
760
503 Dunelm
565
+1 4.7 13.1
270
150 Findel
52⅜
20 Debenhams
●
22½
293
-0.1
755
660 British Empire Trust ● 719
+2 1.7
807
586 +11⅜ 4.8 10.6
796
681 Brunner
775
— 2.1
850
4062½ -15 3.2 21.3
3020
2488 Caledonia ●
2730 +15 2.0 3367
1400¼ 1041 Greggs ●
1236* +17 2.6 21.8
144
111⅞ Candover #
115½
—
156
386¾
305⅜ Halfords ●
378⅜
201
176¾ City Merchants HY 193½* +¼ 5.2
190
596¾
282 Howden Joinery ●
480 +3¼ 2.3 16.1
130⅝
106 City Nat Res H Yld
116½* -1¾ 4.5
140
369¾
285¼ Kingfisher
296¼ -7½ 3.7 13.4
612¼* +1¼ 3.6 22.8
2.2
173¼
—
282 REA Hldgs
—
P/E
328⅞ -4¾ 2.1
7.1
522⅝ Tate & Lyle ●
Gas & Water +1.19%
323¾* +4 3.0 37.9
Price (p) +/- Yld
175½ Boeing $
290 BBA Aviation ●
796½
—
2.1
52 week
High Low (p) Stock
371⅝
370⅜
365
4557½ 3678½ Unilever
P/E
—
5090 Spirax ●
0.56
Price (p) +/- Yld
— -12.3
851⅞ Vitec
0.04
52 week
High Low (p) Stock
⅜
1320
Japan
Aerospace & defence +0.38%
40
6155
Germany
The share prices, price-earnings ratios and dividend yields
below are supplied by Interactive Data (Europe) Ltd. The
yields are calculated using historic dividend payments divided
by the closing share price multiplied by 100.
— 1277
2614 +9½ 6.5 17.7
—
907*
—
3900* -99 5.0
32⅛
85
P/E
5643⅝ 3553 Brit Am Tob
188¾ -1⅝ 4.1
+¼
Price (p) +/- Yld
Tobaccos -1.86%
29¾ Local Shopp REIT
400 Castings
132.43 123.14 Treas 8% 21
52 week
High Low (p) Stock
162¼ LondonMetric ●
728½ Bodycote ●
95
P/E
-½ 2.3 11.0
34½
1043
Flat Rdm
Price (£) +/- Yield Yield
Price (p) +/- Yld
191¾
-4 1.3 29.1
490
52 week
High Low (£) Stock
52 week
High Low (p) Stock
258½ +3½ —
-3.9
-⅜ 4.7 13.2
8.0
7.1
29½
12¾ Gen Electric $
13⅞
-⅛ 3.4
1.4
207⅝
144¼ Home Depot $
182¾ -2⅛ 2.3
1.8
165⅛
129 Honeywell $
143⅛ -1½ 2.1
0.8
4427 Carnival
4706 -19 2.8 17.7
24¾
17⅛ HP $
21¾
+¼ 2.6
2.7
1765⅞ 1396½ Compass
1571 +11 2.2 22.0
171⅛
139⅛ IBM $
144½
-⅜ 4.3
1.0
1698⅝ 1136 easyJet
1614½ +24½ 2.5 20.9
97⅝
79⅝ Inger Rand $
84½
+½ 2.1
2.9
154½
76⅛ FirstGroup ●
111¾ -1¼ —
55¾
33¼ Intel $
52⅝
+1 2.3
2.0
1124
889¼ Fullers ‘A’
940
— 2.0 15.9
67
50 Intl Paper $
50⅝
-1 3.8
2.9
-2 5.3
5435
12.0
2004
1310 Go-Ahead Grp ●
1939
9.3
119⅜
81⅝ JP Morgan Ch $
108
-⅞ 2.1
2.8
996
729½ GVC Hldgs ●
906* +13½ 3.3 -79.0
148⅜
122⅛ Johnson&John $
125½
-1 2.7
0.1
680⅝
549 IAG Intl Cons Air
641¼ +11 3.0
136⅞
94⅞ Manpower $
95⅝
-⅛ 1.9
4.6
4944
3656 Intercont Hotels
4624* +35 1.6 22.5
19½
10½ Marathon Oil $
18¼
… 1.1
4.8
176½* +2¼ 1.2 54.9
7.6
211⅜
107⅞ Mandarin
178¾
139⅞ McDonalds $
162⅝ -4¾ 2.5
1.6
147¾
95⅞ Marston’s ●
108
+⅛ 6.9
7.6
66⅜
52⅞ Merck $
57⅜
-1½ 3.3
0.5
286¾
219⅞ Mitchells&But ●
281¼
-¾ 1.8 18.6
97⅞
67⅛ Microsoft $
94
+½ 1.8
0.9
414⅛
337¼ National Ex ●
393⅝* +1⅜ 3.4 15.3
39⅜
31⅝ Pfizer $
35
-1⅝ 3.9
2.6
8967
6027⅜ PaddyPwrBet
7255* +75 2.8 28.1
94⅝
72
-⅜ 4.0
1.3
1020
670 Playtech ●
803⅝
-7 4.0 12.4
210¾
151¾ Rockwell $
165
+½ 2.2
1.9
250
167⅜ Rank Group ●
174
-1 4.3 10.7
139¼
109⅛ United Tech $
118
-2⅛ 2.4
2.0
381¾
229¼ Restaurant Gp
308⅝ +5¼ 5.6 18.8
110
73⅛ Wal Mart Strs $
86⅞
-1⅝ 2.4
1.6
1798⅝ 1253¾ Ryanair
1380¼ +22⅜ —
115⅝
96¼ Walt Disney $
99⅛
-1⅛ 1.7
4.2
217⅝
124⅜ Stagecoach ●
156⅜ +⅜ 7.6 28.4
37⅜
27⅛ Xerox $
32
+⅝ 3.1
0.7
132¼
87¾ Thomas Cook ●
126¾ +3⅛ 0.5
Europeans
14.9
—
72 Procter & Gamble $
1687⅞ 1098 TUI AG
1651½ +6 3.5 17.0
1346⅛
1179 +15 1.0 22.9
81¾
71⅝ Akzo Nobel €
74⅞
— 3.3
1.3
4331 +50 2.3 18.1
97½
77⅛ BMW €
92½
— 4.3
2.6
23⅝
15½ Carrefour €
17
— 2.7
1.5
257⅜
186½ Continental AG €
221¼
— 2.0
3.3
4340
953 Wetherspoon ●
3499⅞ Whitbread
682½
533½ BAE Systems
219
162 Chemring
209
150¼
110 Cobham ●
118⅛ +3
33.7
947¼
577⅜ Pennon Gp ●
696 +3¾ 5.2 17.5
444⅝
392 City of Lon ●
424½* -½ 4.2
418
131½
78½ Lookers
103⅜ +2¼ 3.8
8.6
1600
1225 Arbuthnot
1485* +15 2.2 33.8
76½
59 Daimler €
65½
— 5.6
2.7
322⅞
190¼ Qinetiq ●
231⅝ +1⅛ 2.6 10.8
2575
1664 Severn Trent
1989 +49 4.2 13.6
498
330¼ Dunedin Ent
370*
— 5.1
434
397¾
262 Marks & Spen
284⅞ -2¾ 6.6 39.6
2580
1790 BrooksMacdonald
1875 -10 2.3 43.7
72⅛
62½ Danone €
67⅛
— 2.8
1.8
994½
800 Rolls-Royce
839*
-1 1.4
1078
648⅝ Utd Utilities
755¼ +12 5.2 11.9
786
608 Edinburgh Inv Tr ●
682
+1 3.9
748
254⅜
203¼ Morrison (WM)
239¾ -3¼ 2.5 18.0
1¼
1
0
41⅜
31⅛ Deutsche Post €
36⅛
— 3.2
1.9
310⅜
210¾ Senior ●
304⅜ +9 2.3 21.2
820
544 Edin Worldwide
776
-8
758
137⅛
345½
2⅝ Central Asia Met
282½* -6½ 5.8 13.2
18⅛
12¾ Deutsche Tele €
14½
— 4.5
0.9
2180
1138 Ultra ●
1433* +25 3.5 21.6
2793½
820 ElectraPrivEq
839½ +9½ — 1114
5355
3565 Next
5214 -42 4.8 12.5
16
8¼ Ceres Power
331
286 EP Global Opp
315
+1 1.7
603¼
235¾ Ocado ●
555⅜ +17 —
—
1270
780 Churchill China
1360
1195 European Assets
+⅞ 5.2
8.1
460
974
853¼ The Europ InvTr
923
352 Fidelity Asian V
400½ +½ 1.2
— 1.4 87.1
—
-3.7
Banks +0.12%
213
119¾ Centrica
154½ +⅝ 7.8 25.7
General financial +0.60%
447¼
318⅞ Ashmore ●
411⅜
-⅜ 4.0 16.4
399⅜
320¼ Brewin D ●
364⅜ +3⅜ 4.1 22.1
220⅛
177¼ Barclays
205½ -1¾ 3.2 -20.0
433
317 Charles Stanley
350
1715
1315 Close Bros ●
1540 +4 4.0 12.0
1935
1258 Hargreaves L
1768 -21½ 1.7 39.6
408¼
+7 2.0 28.3
—
336
1242½* — 6.4 1203
13 Mothercare
18⅜
+⅛
—
3.8
AIM +0.09%
39¼
20 Pendragon
29⅞*
213⅞
108 Saga ●
137½ +1⅝ 6.5 11.2
878½
410
339⅞
222⅜ Sainsbury J
314½ +5½ 3.2 23.6
4¼
+9 2.5 1042
Cambria Africa
3¼ Cohort
484¾ Dart Group
1
Deltex Medical
1⅛
13¼
—
—
—
— -13.2
1100* +47½ 2.2 18.8
91⅜
79⅝ Heineken €
87¼
— 1.7
2.3
289¼
211⅞ LVMH €
289¼
— 1.7
2.0
2.7
60
50⅜ LafargeHolcim SFr
55⅜
— 3.6
865 +7½ 0.6 16.7
31¼
15⅞ Lufthansa €
24⅛
— 3.3
4.8
1⅜
6
3¾ Nokia OYJ €
5
— 3.8
1.7
2.6
350
— 2.1 38.5
—
—
-1.6
798⅝
637 HSBC
729⅛ +3¾ 5.1 20.6
868½
543 IG Group ●
848 +18 3.8 18.4
263
191⅛ Fidlty Chna Sp Sits ● 242
— 1.0
283
2347
1635 Smith WH ●
1955 +4 2.5 18.7
66
40 Elecosoft
64½*
+2 0.9 25.8
130⅞
111⅝ Michelin €
116½
— 3.0
73⅝
62¼ Lloyds Bk Gp
64⅜*
-⅜ 4.7 14.6
1204
780½ Intermediate C ●
1100 +14 2.6 14.8
235
199¾ Fidelity Euro V ●
214½* +1 2.0
243
424⅜
280¼ Sports Direct ●
399¾ -3⅛ —
131⅜
98¾ Finsbury Food
130
+1 2.4 18.3
141⅞
112⅛ Pernod Ricard €
137½
— 1.5
2.2
304¼
239⅝ Ryl Bk Scot
269¾
-⅜
649⅜
451¼ Investec ●
578¾ +1⅜ 4.1 11.4
160
106 Fidelity Japan V
149¾
167
242¾
165⅜ Tesco
235
62½
21⅝ Futura Medical
39¼
+½
— -12.2
21
16½ Peugeot €
20⅜
— 2.6
4.1
541¾
387⅛ Santander
472½* +⅝ 3.3 13.5
158⅜
99¾ IP Group ●
137⅝ +3¾ —
19.5
274
228 Fidelity Sp V
264
-1 1.8
270
7¾
-¼
—
-3.0
36⅛
29¼ Philips (Kon) €
35¼
— 2.3
1.9
1990* -85 4.0 18.5
620
425 Liontrust
582
+4 2.7 38.4
778
699 Finsbury Gwth ●
768*
+4 1.9
767
6.0
133½
99¾ Siemens €
105⅝
— 3.5
1.8
44
1.3
2477¾ 1485¼ Secure Trust Bk
—
42.8
-¾
—
10.1
-⅞ 1.3 15.9
Support services +0.59%
864¼
688⅝ Standard Ch
769¼* +2¼ 1.0 44.5
47
— 2.5 12.6
678
562⅜ Foreign & Col ●
656*
— 1.6
673
994½
638⅝ Aggreko ●
722¾* -9⅝ 3.8 17.4
320⅞
250¼ Virgin Money ●
296¾* +18 2.0
4371
3316 Lon Stock Ex
4355 +55 1.2 29.7
338
305 F&C Cap & Inc
328
+2 3.3
329
2185
1476 Ashtead Gp
2028
219¼
148⅝ Man Group ●
183⅝* +2½ 4.3 16.1
152¼
133⅞ F&C ComProp ●
146*
-1 4.1
142
1030
604 Babcock Intl ●
722¾ -13 3.9 11.7
987
-1 1.1
211⅜
181 F&C Mgd G
201
—
—
201
522
-1 3.0 12.1
146
127 F&C Mgd I
136
+1 4.1
135
348
7.8
Beverages +0.73%
1018
2735½ 2233 Diageo
2606 +17 2.4 24.6
320
273 +23½ 2.6 51.6
155½ Stock Spirits
Chemicals +0.40%
556
41 Lon. Fin. & Inv.
5⅝ NEX Group ●
400¼ Paragon ●
2.8
2402⅞ 312⅛ Provident Fin ●
647⅝ -17⅜ —
385
307 F&C Priv Eq Ord
383½* +3 3.7
2842
2390* +36 2.6 25.8
1420
1255 F&C Glob SmCo ●
1370
-5 0.9 1377
2254 Rathbone Bros ●
-9.8
52 week
High Low (p) Stock
52 week
Price (p) +/- Yld
2620
1870 S & U
2610 +80 4.0 12.8
108
94½ F&C UKHighIncTst
99*
+1 4.9
109
173¾
4691
3612 Croda
4488* +27 1.8 24.8
3784
3069 Schroders
3331* +30 3.4 15.5
109
99 F&C UKRealEstInv
106
— 4.7
107
2012½ 1812 RIT Cap Ptnrs ●
3511
2681 Johnson Mat
3301 +7 2.3 16.4
Healthcare +0.80%
305
265 Hend Alt Strat
279½ +½ 1.7
335
242
218⅜ Ruffer Inv Pref
230 +1½ 0.8
2772
1826 Victrex ●
2632 +10 2.0 22.6
97⅝
86⅜ Hend Div Inc Tst
92½
+¾ 4.8
88
383⅛
285¼ Schroder Asian TR
353*
185¾ +2¾ 5.1
186
383
339½ Scot American
349⅛
Construction +0.48%
181⅜ ConvaTec Grp ●
217⅞* +¾ 1.9 37.0
201½
165 Hend High Inc
+2 2.1 1009
3728
2012 NMC Health
3600 +32 0.4 53.8
905½
733½ Hend Smaller Co
189⅞
115 Alumasc
138½
7.6
890⅛
495⅜ Mediclinic Int
682 +11 1.2 22.0
1110
890 Hend Opp
1032½ — 1.9 1252
311¾
252½ Balfour Beatty ●
295⅛* +⅞ 1.2 12.1
1442
1173 Smith & Nep
1404* +8 1.8 21.7
1265
939⅞ Herald Inv ●
1230
705½
6¼ Barratt Dev
-1 5.2
564⅝* +6⅝ 7.7
9.2
3805
2718 Bellway ●
3345 +29 4.0
9.0
4270
3031 Berkeley Grp
4108 +36 2.6
8.8
354
90½
247 Boot H
74 Breedon Group
494½
419½ Costain
648½
429¾ Crest Nicholson ●
2955
27 CRH
287*
— 2.8
8.9
1935
Household goods -0.99%
2024
235
1481½ Burberry
146 McBride
1842 +18½ 2.1 28.2
148¾* -1¼ 3.0 30.4
1481½ HgCapital
904
-5
— 1413
1922½ +17½ 2.4 1879
109 PremierGlblInfra
+2 7.7
NAV
152
827½
376½ Hunting ●
862⅛
4¼ Petrofac ●
227
104½
42¾ Premier Oil
+3 1.4
346
369
+3 3.0
131
-9 5.5 21.7
351
2617½ 2038 Royal D Shell B
2595 -6½ 5.3 22.3
106¼ +1⅜ 4.9
973½
771 Scot Invest ●
835*
+2 2.4
920
150
376⅛ Scot Mortgage
478⅝ +4 0.6
463
Pharmaceuticals +1.18%
177¼
155½ Sec Tst of Scot
165
-1½ 3.6
177
167 Seneca Global
175¼ +½ 3.6
174
147
502
431 Stand Life Eq Inc
484
+6 3.9
485
784
540 BTG ●
685½ +1½ —
+4 2.4
962
408
330¼ TR Property ●
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+6 2.7
416
2840
1636 Dechra Pharma ●
2744 +2 0.8 97.7
312
258¾ Invesco Asia Trust
858
287
+1 1.5
331
830
658 Tmpletn Em Mt ●
734
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847
281
+1 3.9
323
83½
72⅝ Troy Inc & Gr
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— 3.5
76
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180
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263
488⅝ +1⅝ 6.8
2102
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129 InvesPerp Bal Rk
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159¼
153¼ UIL Fin ZDP 18
159
—
—
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167 InvesPerp Sel UK E 183½* — 3.5
186
145
133¼ UIL Fin ZDP 20
143
—
—
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7.4
1438 Superdry ●
Information technology +0.35%
-3 2.1 13.9
851
681½ Grafton Gp ●
749
486⅝
360¼ Marshalls ●
432¾ +4¼ 3.3 20.1
25
1520
1040 Morgan Sindall
1300* +48 3.5 10.9
570
379⅞
252 Nth Midland Con
310
205⅜
2901
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2746 +31 8.6 10.8
673½
536 Redrow ●
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173 Taylor Wimpey
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— 1.9 42.4
+½ 3.2
8.9
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5213 +110 3.9 29.9
719 ICG Enterprise Tst
260 Invesco Inc Gth Tr
2583* +2 2.3 12.9
-3.0
133 HICL Infrastructure ●145⅞ +½ 5.4
73½ InvesPerp Enhc Inc 76⅜*
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4260 AstraZeneca
-2.6
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309½
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2579½ 1996 Royal D Shell A
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460½* +½ 3.0 14.8
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5722
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5556 -24 2.0 17.8
342⅝
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155 Hays ●
181 +1¾ 1.8 20.8
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670 Homeserve ●
734½ -5½ 2.2 30.6
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4063 Intertek Group
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Price (p) +/- Yld
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13
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338¾
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691 Ricardo Gp
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245⅜
1056
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2707
2285 Worldw HealthTr ● 2445 -20 0.9 2441
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1⅞ Xtract Resources
1286 Young & Co - A
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The Alternative Investment Market is for young and growing
companies. Shares may carry higher risks than those with a full
quotation, and may be difficult to sell.
— 1.2
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+2 0.5
341
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747*
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day’s close see www.Morningstar.co.uk.
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318
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3240
2574 Derwent Ldn ●
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—
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High
Low Stock
Price +/- GrsYd Cvr
—
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85¼ KCOM Group
102¾ +2¾ 5.8 21.2
39⅛
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36⅜
220
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935
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192
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1358
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Net Asset Values © 2018 Morningstar Estimated at previous
Recent issues
—
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26.5
74⅞ Prime People
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304⅝ Witan Pacific
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—
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636⅜ +1¼ 2.4 22.9
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0.5
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105
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—
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65
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212¾ -1¼ 3.3
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51 Inland Homes
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217¼ JPM Chinese
1.1
70⅜
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109⅞ UIL Fin ZDP 22
346¾
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234⅝
73½
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— 4.8
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181½
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145¼ BCA Marketplace ● 188¼ -2⅜ 3.8 36.2
214
60
181
37
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230
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—
5½ Gaming Realms
136 Gattaca
2472
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-5 1.4 20.2
14⅜
339
Americans -0.88%
Bold FTSE100 Stocks
* Ex-dividend
§ Ex-rights
●
FTSE250 Stocks
† Ex-scrip
# Suspended
‡ Ex-all
Cover relates to the previous year’s dividend.
Yields are net of basic rate tax.
52 week
-⅛ 1.0
2.2
Data is provided for information purposes only and is
not intended for trading purposes. Speak with a
financial advisor before using any data to make
transactions.
The Daily Telegraph Wednesday 2 May 2018
7
**
Business
Upgrades for water firms lift FTSE 100
BRADLEY GERRARD
RARD
RT
MARKET REPORT
Results roundup
Company
BP $
Cellcast
Connect
A RAFT of analyst upgrades
helped stocks shake-off the downbeat
tone caused by manufacturing growth
slowing to its lowest level in 17 months.
The FTSE 100 registered a threemonth high after both Severn Trent
and United Utilities were handed an
“outperform” rating with new target
prices of £21 and 850p respectively.
The bank suggested the “tide is
turning” for the water companies,
both of which were in the top FTSE
100 risers for the day (up 49p to £19.89
and 12p to 755p respectively) on the
blue-chip index. It said that although
the industry had been in the
renationalisation cross hairs of the
Labour party of late, after crunching
the numbers it believed the at least
£88bn cost of such a policy made it
incredibly unlikely.
Contract catering firm Compass
was also upgraded by Jefferies from
“hold” to “buy” with a £17.50 target
price, helping it rise 11p to £15.71.
The broker revealed research that
showed between 2008-2013, Compass
had been able to claw back 87pc of cost
inflation through higher prices,
something it believes stands it in good
stead in the current climate. Alongside
the share price of BP hitting an
Winners and losers (pc)
Turnover (£)
Pre-tax (£)
DIV (p)
Pay day
XD
1Q 68.2bn (55.9bn)
Fin 12.0m (12.1m)
3.9bn (2.1bn)
12.40 (7.42) 10.000 (7.756p)
Jun 22
May 10
-652k (652k)
-0.80 (0.80)
n/a (n/a)
–
–
Fin 108k (–)
-2.4m (-2.6m)
-2.00 (-3.00)
0.000 (0.000)
–
–
Int 766.5m (793.3m)
9.5m (16.5m)
3.10 (5.40)
3.100 (3.100)
Jul 06
Jun 07
Concepta
Edinburgh Dragon Tst
EPS (p)
Int – (–)
-450k (-431k)
-0.36 (-0.35)
0.000 (0.000)
–
–
Management Consulting Gp
Fin 35.1m (45.2m)
-26.3m (-40.8m)
-6.10 (-7.60)
0.000 (0.000)
–
–
Nasstar
Fin 24.5m (18.7m)
-1.2m (-1.8m)
Pelatro $
Union Jack Oil
BUSINESS BULLETIN
-0.20 (-0.30)
0.060 (0.052)
Jul 09
Jun 07
Fin 3.1m (1.2m)
1.1m (360k)
4.80 (2.20)
0.000 (0.000)
–
–
Fin 46k (22k)
-747k (-892k)
-0.02 (-0.03)
n/a (n/a)
–
–
www.theice.com/data
eight-year high at 547.7p (up 9.7p) and
online takeaway business Just Eat up
31.6p at 805.4p as it impressed the
market with its 400 millionth UK
order, the FTSE 100 rose 11 points to
hit 7,520.
In the FTSE 250, upgrades were also
widely distributed with Peel Hunt
raising its target price on the online
supermarket Ocado from 570p to 610p.
The broker says if the Sainsbury-Asda
merger is approved, the new top three
grocers will engage in a bitter bricks
and mortar war to secure their futures.
Peel Hunt posits that Ocado, which
rose 17p to 555.4p, could “take
advantage of this distraction” and
believes smaller food retailers such as
Marks & Spencer and Co-op could see
the online-only player as more
attractive in the face of three rather
than four large rivals.
It was also another good day for Sir
Richard Branson’s banking venture
Virgin Money, which rose 18p to
296.7p after revealing a 10pc increase
in mortgage balances in spite of tough
conditions in the housing market.
Gold exploration firms also shone
with Aim-listed Cora Gold shares up
3p, or nearly a quarter, to 15.5p after
positive results at two of its Mali sites.
It wasn’t good news for British
American Tobacco though after
broker Piper Jaffray cut its rating to
“neutral” from “overweight”, knocking
99p off its shares to £39. It says
momentum for BAT’s Glo heated
tobacco pipe in Japan looks to be
slowing, meaning the decision to
spend some £500m this year on
rolling out so-called “next generation
products” could be a drag. Piper
Jaffray also noted that cigarette sales
trends in the US had decelerated since
BAT bought Reynolds American in a
$49bn (£36bn) deal that created the
world’s largest tobacco company.
Ç Gas & Water
1.19
Ç Pharmaceuticals
1.18
Ç Electricals
1
Ç Travel & Leisure
0.92
Ç Engineering / Industrial
0.86
Ç Healthcare
0.8
Ç Transport
0.78
Ç Beverages
0.73
Ç Insurance
0.71
Ç Media
0.66
Ç General financial
-0.01
È Food producers
-0.06
È Americans
-0.88
È Telecommunications
-0.91
È Household goods
-0.99
È Mining
-1.08
È Tobaccos
-1.86
ITV adds Ascential chief
exec Painter to board
Australia’s corporate watchdog has
expanded legal action against both Rio
Tinto and two of its former top
executives with fresh allegations
relating to a failure to recognise an
impairment on Mozambique coal assets.
This is on top of allegations over coal
reserves. Rio Tinto said charges were
“wholly unwarranted” and it plans to
“vigorously defend itself ”.
The chief executive of Ascential,
Duncan Painter, has joined the board of
broadcaster ITV as a non-executive
director. Mr Painter was previously an
executive at Sky, and ITV said he had a
“broad range of experience particularly
in digital media and consumer
intelligence systems and targeted
advertising”. Ascential is a business
information and events company.
National Grid to sell 25pc ZPG offloads Australian
Quadgas stake for £1.2bn division of Hometrack
National Grid is selling its remaining
25pc stake in Quadgas Holdings, which
owns gas distribution networks across
the UK, for around £1.2bn. Quadgas
owns Cadent Gas, which was previously
known as National Grid Gas
Distribution. The network manager is
looking to focus instead on assets that
deliver growth of 5pc to 7pc.
0.6
È Retailers
Corporate watchdog
expands Rio legal action
The owner of Zoopla, ZPG, has sold the
Australian operations of its Hometrack
business, saying it had “always been
clear that our core markets are the UK
and Europe”. The sale comes just over a
year after it bought Hometrack for
£120m, which provides data on the
housing market, at the time having
hailed its “strong position” in Australia.
Decision on Fox’s Sky buy Savills rejigs UK team as
to be made by June 13
Ridley to become CEO
The Government said it will make a
decision on whether 21st Century Fox’s
purchase of the 61pc of Sky it does not
already own will give the Murdoch
family too much influence over the
media landscape, by June 13. The deal,
which was agreed in December 2016,
has faced a series of hold-ups from both
regulators and politicians.
Savills has reshuffled its management
team, hiring James Sparrow as the new
chief executive of the UK unit and
Richard Rees as its managing director,
after earlier this year revealing UK boss
Mark Ridley was set to become the head
of the group. Savills said Mark Ridley is
serving as deputy CEO prior to
becoming group CEO in January.
Market data
Unit trusts & open-ended investment companies prices www.telegraph.co.uk/funds
World market indices
Name
Index
Ç Australia
Æ Brazil
Bovespa
86115.50
Æ China
Shanghai Composite
3082.23
closed
CAC General
5520.50
closed
DAX
12612.11
closed
Hang Seng
30808.45
closed
Æ Hong Kong
Æ India
S&P CNX500
9496.50
Ç Japan
Nikkei
22508.03
Æ Russia
RTS
1153.96
Change
Buy on day
+0.47pc
6100.00
Æ Germany
Mid
Sell
Change
+28.40
All Ordinaries
Æ France
Init chge
closed
closed
+40.16
+0.18pc
3613.93
closed
Amer Gwth Acc
5.25
594.4
-2.90
Madrid SE
1012.57
closed
5.50
169.8
-3.20
Æ Switzerland
Biotech Acc
SMI Index
8886.26
closed
È USA
Dow Jones
24099.05
-64.10
-0.27pc
Ç USA
Nasdaq
7130.70
+64.44
+0.91pc
È Gold
per troy oz
Ç Silver
Change
$1304.40
-11.37
-0.86pc
Multi-Mgr Inc&Gwth A Inc
5.25
154.8000
+0.50
JPM Global Uncons Eq A Inc 3.00
98.3500
-0.5000
Jupiter European
–
2174.97
-0.26
M&G Episode Income A Inc
4.00
*129.86
-1.14
Multi-Mgr Mangd A Acc†
5.00
*279.0000
-0.60
JPM Japan A Acc
3.00
467.8000
+0.2000
Jupiter Euro Inc Acc
–
81.31
-0.28
M&G Episode Income A Acc
4.00
*171.21
-0.11
Multi-Mgr Mangd A Inc†
5.00
*271.8000
-0.70
JPM Japan A Inc
3.00
112.6000
…
Jupiter Euro Inc Inc
–
55.78
-0.20
M&G Global Dividend A Inc
4.00
*203.04
-0.86
Sterling Bond Acc†
4.25 *220.5300 230.0500
…
JPM Multi-Asset Income A Acc 3.00
*95.0200
-0.1200
Jupiter Euro Special Sits
–
417.81
-0.86
M&G Global Dividend A Acc
4.00
*278.91
-1.18
Sterling Bond Inc†
4.25 *64.8400 67.6300
…
JPM Multi-Asset Income A Inc 3.00
*64.8300
-0.8400
Jupiter Fin Opp
–
*620.89
-0.07
M&G Glbl Emrgng Mkts A Inc 4.00
268.53
+0.09
JPM Multi-Asset Inc A Mth Inc 3.00
3.00 2359.16 2511.75
-12.72
Fidelity International
Global Opp Acc
5.25
*1415.0
-1.00
Global Opp Inc
5.25
*1249.0
-1.00
Global Tech
5.25
108.0
+0.10
Health Acc
5.50
*1784.0
-21.00
5.25
601.7
-2.20
+3.88
+0.41pc
Managed Balanced Acc
5.25
391.8
+0.20
-0.25
-0.04pc
Managed Income Inc
5.25
*142.1
+0.10
Wealthbuilder
3.50
136.9
+0.1
Cash Fd Y
–
100.00
-0.03
Cash Fd Y Accum.Units
–
100.36
…
£4973.89
+21.44
+0.43pc
Managed Income Acc
5.25
*995.5
+0.40
Enhanced Inc Fd
3.50
108.9
…
£15571.90
+187.84
+1.22pc
Monthly Inc Inc
5.25
*259.3
+0.40
Extra Income Fd
3.50
27.59
-0.04
Monthly Inc Acc
5.25
*629.0
+1.10
Moneybuilder Bal
–
49.59
-0.06
Moneybuilder Inc
–
36.51
-0.03
+15.12
-6.59
-0.29pc
£1650.61
+17.09
+1.05pc
UK Growth Acc
5.25
308.5
+1.40
£10136.08
+207.95
+2.09pc
UK Select Opps R Inc
5.25
*1949.0
+10.00
UK Select Opps R Acc
5.25
*3575.0
+17.00
UK Smllr Cos Acc
5.25
*310.3
+1.90
special high grade
£2258.55
high grade
Ç Nickel
+0.90pc
È Baltic Dry Index*
1327.00
-14.00
-1.04pc
per tonne
£143.75
+0.25
+0.17pc
Jul settlement
$73.13
-2.04
-2.71pc
*Copyright Baltic Exchange Information Services Ltd.
AXA IM Funds www.axa-im.co.uk
Init chge
Sell
Growth & Income Funds
Name
Init chge
Sell
£ > € Rate 1.1339 Change -0.61¢ £ > $ Rate 1.3595 Change -1.79¢
Tourist £1= Sterling £1=
1 Euro =
Pan Euro HY Bond Inc
5.25
*32.32
…
Pan Euro HY Bond Acc
5.25
*104.8
…
1 Dollar =
Sell
+0.10
64.8
-0.39
Jupiter Fund Of Inv Trusts
–
*255.21
-0.61
M&G Glbl Emrgng Mkts A Acc 4.00
290.69
+0.1
158.3000
…
JPM Multi-Man Gwth A Acc
3.00
1003.0000
-1.0000
Jupiter Global Emg Acc
–
71.59
-0.01
M&G Glbl High Yld Bd A Inc
*49.97
-0.23
UK Alpha A Acc†
5.25
154.4000
+0.60
JPM Multi-Man Gwth A Inc
3.00
918.0000
-1.0000
Jupiter Global Eq Inc Acc
–
71.14
-0.35
M&G Glbl High Yld Bd A Acc
3.00
*131.3
-0.03
UK & Irish Small Co A Acc
5.00
674.0000
+3.50
JPM Natural Res A Acc
3.00
627.3000
-3.0000
Jupiter Global Eq Inc Inc
–
62.28
-0.30
M&G Global Macro Bd A Inc
3.00
*82.41
-0.59
3.00
UK Equity Income A Inc
5.00
*645.0000
+1.70
JPM Natural Res A Inc
3.00
43.9600
-0.2100
Jupiter Global Managed Acc
–
231.87
-0.51
M&G Global Macro Bd A Acc
3.00
*125.3
+0.01
UK Index A Acc
–
635.4000
+0.40
JPM Sterling Corp Bd A Grs Acc 3.00
*92.8400
+0.1700
Jupiter Global Managed Inc
–
222.87
-0.49
M&G Global Themes A Inc
4.00
876.87
-4.52
UK Tracker A Acc
–
285.5000
…
JPM Sterling Corp Bd A Grs Inc 3.00
*55.4100
-0.1700
Jupiter Growth & Inc
–
*103.15
-1.45
M&G Global Themes A Acc
4.00
1363.15
-7.02
US Growth A Acc
5.00
1003.0000
-7.00
JPM UK Dynamic A Acc
3.00
207.7000
…
Jupiter Income
–
582.06
+0.54
M&G Managed Growth A Inc 4.00
*110.41
-1.11
JPM UK Dynamic A Inc
3.00
163.8000
+0.1000
Jupiter India Fd
–
126.51
-0.02
M&G Optimal Income A Inc
3.00
*149.74
-0.04
JPM UK Equity Core E Acc
–
*367.4000
+0.3000
Jupiter Int Financials
–
96.83
+0.06
M&G Optimal Income A Acc
3.00
*211.6
-0.05
JPM UK Equity Core E Inc
–
*62.8700
+0.0400
Jupiter Japan Inc Fd Acc
–
118.54
+0.52
M&G Property Portfolio A Inc
JPM UK Equity Gwth A Acc
3.00
145.9000
+0.3000
Jupiter Japan Inc Fd Inc
–
92.82
+0.41
M&G Recovery A Inc
4.00
144.0
JPM UK Equity Gwth A Inc
3.00
130.8000
+0.2000
Jupiter Merlin Bal Prtfo Acc
–
183.54
…
M&G Recovery A Acc
4.00
336.85
+1.1
JPM UK Higher Inc A Acc
3.00
1109.0000
+1.0000
Jupiter Merlin Bal Prtfo Inc
–
128.22
…
M&G Strategic Corp Bd A Inc 3.00
75.55
+0.06
+0.09
J.P. Morgan Asset Management
60 Victoria Embankment, London, EC4Y 0JP
Clients:0800 204020.Brokerline 0800 727770
–
117.37
117.37
…
+0.47
JPM UK Higher Inc A Inc
3.00
577.3000
+0.9000
Jupiter Merlin Conserv Prtfo Acc–
58.03
…
M&G Strategic Corp Bd A Acc 3.00
116.84
JPM UK Sm Cos A Acc
3.00
496.6000
+2.2000
Jupiter Merlin Conserv Prtfo Inc–
50.19
…
M&G UK Inc Distribution A Inc 4.00
799.5
+1.94
JPM UK Sm Cos A Inc
3.00
94.8000
+0.4100
Jupiter Merlin Grth Prtfo Acc –
407.17
…
M&G UK Inc Distribution A Acc 4.00
7274.05
+17.69
JPM America Eq A Acc
3.00
88.6800
-0.4800
JPM UK Strat Eq Inc A Acc
3.00
*193.4000
+0.4000
Jupiter Merlin Grth Prtfo Inc –
395.71
…
M&G UK Infl Lkd Corp A Inc
3.00
*115.06
+0.02
JPM America Eq A Inc
3.00
88.6700
-0.4800
JPM UK Strat Eq Inc A Inc
3.00
*113.8000
-1.4000
Jupiter Merlin Inc Prtfo Acc
–
*297.89
…
M&G UK Infl Lkd Corp A Acc 3.00
*118.69
+0.02
JPM Asia Growth A Acc
3.00
210.7000
+0.4000
JPM Uncons Bond A Acc
3.00
*72.0300
-0.0900
Jupiter Merlin Inc Prtfo Inc
–
*133.85
…
N.A.A.C.I.F. Inc
–
87.16
+0.1
JPM Uncons Bond A Inc
3.00
*56.6500
-0.4900
Jupiter Merlin WW Prtfo Acc –
291.47
…
N.A.A.C.I.F. Acc
–
8587.09
+10.01
JPM US A Acc
3.00
*1036.0000
…
+0.3
JPM Asia Growth A Inc
3.00
116.2000
+0.3000
Moneybldr Gwth
–
79.57
-0.20
JPM Div Gth A Net ACC
3.00
*261.1000
-0.6000
-17
Init chge
*122.6000
257.4
3732
Name
4.00
3.50
3.50
Sell
5.00
Moneybldr Div
American
Init chge
UK Absolute Return A Acc
Growth Funds
Exchange rates
Name
Strategic Bond A Inc
Income Funds
grade A
£1694.37
Name
†Available as an ISA
Investment Funds (OEIC)
high grade
Ç Lead
È Brent Crude
-0.49
No 1, Poultry, London EC2R 8JR. 020 7415 4130
-2.90
£647.47
Ç Wheat
*61.14
*681.2
£958.07
È Zinc
4.00
5.25
Japan Acc
Ç Aluminium
M&G Episode Growth A Inc
Financial Acc
+0.98pc
-0.96pc
-2.49
Unit Trust
+2.16
-6.72
206.58
-0.40
£222.14
£692.04
–
+0.30
Ç New Sovereign
per oz
Jupiter Emerg Euro Opps
272.7
+0.34pc
È Palladium
Change
Buy on day
-7.0000
895.2
+0.23pc
Ç Copper
Mid
1324.0000
5.25
+3.22
Ç Tin
Change
Buy on day
JPM Global Uncons Eq A Acc 3.00
5.25
+0.03
per oz
Mid
+0.60
European Acc
£11.89
È Platinum
Change
Buy on day
177.0000
Emerg Mkts Acc
£962.85
Ç Maples
Change
Buy on day
130 Tonbridge Road, Tonbridge, Kent TN11 9DZ
Call free: Private Clients 0800 414161
Broker Dealings 0800 414181
Ç Krugerrand
per oz
Mid
7 Newgate Street, London, EC1A 7NX
www.axaframlington.com Cust Svs: 0845 777 5511
Straits Times
Price
Mid
5.00
Sell
AXA Investment Managers UK
Limited
closed
Commodities summary
Change
Buy on day
Multi-Mgr Inc&Gwth A Acc
Init chge
Maitland Discretionary Inc
Æ Spain
Æ Singapore
Mid
Discretionary Unit Fund
Name
Jupiter Merlin WW Prtfo Inc –
291.46
…
Jupiter Monthly Inc Acc
–
*117.10
+0.12
Jupiter Monthly Inc Inc
–
*31.05
-0.08
Jupiter N.American Inc Acc
–
147.84
-1.05
Jupiter N.American Inc Inc
†CAR - Net Income reinvested.
Natwest Investment Funds
(RBS Collective Investment Funds Ltd)
PO Box 249, York YO90 1ZY
0117 940 3848
Australia
Amer Sp Sits
3.50
1511
-13
–
123.18
-0.87
Aus $
1.7305
1.8176
1.6030
1.3370
Canada
Can $
1.6796
1.7538
1.5468
1.2901
European
3.50
2251
-1
Jupiter Responsible Inc Fd Acc –
*116.91
+0.39
Balanced Inc
5.00
*328.90
Denmark
Krone
8.0760
8.4479
7.4505
6.2142
European Opps
3.50
516.6
-0.1
Jupiter Responsible Inc Fd Inc –
*74.17
+0.25
Balanced Acc
5.00
*422.00
…
Global Special Sits
3.50
3848
-10
Jupiter Strategic Bond Acc
–
*97.52
+0.04
Equity Income
5.00
*349.80
…
Japan
3.50
367.7
-1.2
Jupiter Strategic Bond Inc
–
*64.06
-0.53
Extra Income
5.00
*108.60
…
Japan Smaller Cos
3.50
321.2
-2.2
Jupiter Strategic Res Acc
–
53.65
+0.01
Growth
5.00
*392.70
…
Global Focus
3.50
1943
-4
Jupiter Strategic Res Inc
–
52.22
+0.01
High Yield
5.00
*126.60
…
109.2200
+0.0700
Jupiter UK Growth
–
338.59
+1.56
Intntl Growth
5.00
*499.60
…
4052
+18
Jupiter UK Smaller Cos
–
370.59
+0.76
Jupiter UK Special Sits Inc
+0.03
Euro
€
1.0877
1.1339
…
0.8341
HK $
10.2300
10.6700
9.4103
7.8488
India
Rupee
80.4700
90.7297
80.0179
66.7400
Israel
Shekels
4.4549
4.9084
4.3289
3.6106
Hong Kong
Japan
Kuwait
New Zealand
Yen
143.1400
149.1996
131.5848
109.7500
Dinar
…
0.4094
0.3612
0.3012
NZ $
1.8207
1.9429
1.7135
1.4292
Norway
Krone
10.5200
11.0030
9.7040
8.0938
Pakistan
Rupee
149.5100
157.1116
138.5626
115.5700
Saudi Arabia
Riyal
4.8168
5.0983
4.4963
3.7502
$
1.7014
1.8134
1.5993
1.3339
South Africa
Rand
16.1200
17.1868
15.1577
12.6425
Sweden
Krona
11.5100
12.0377
10.6165
8.8549
Switzerland
Franc
1.2988
1.3538
1.1940
0.9959
Thailand
Baht
38.8100
42.9042
37.8389
31.5600
Dirham
4.7345
4.9935
4.4040
3.6732
Singapore
UAE
UK
£
…
…
0.8820
0.7356
USA
$
1.3119
1.3595
1.1989
…
Tourist rates for indication use only. www.travelex.co.uk
Rates
BNY Mellon Fund Managers
Investors: 0800 614330 Brokers: 08085 660000
www.bnymellonim.co.uk,
clientservices@bnymellon.com
Index UK A Acc
–
BNY Mellon Investment Funds (ICVC)
Special Sits
3.50
Sterling Income Shares
South East Asia
3.50
1376
-2
UK Select Acc
3.50
295.8
+1.7
*93.06
+0.16
+0.33
Target 2020
Insight Eq Inc Booster
0%
*129.48
-0.59
†CAR - Net income reinvested
Insight Glob Abs Ret Inc
0%
*110.91
-0.09
Glob Income
5.00
158.63
167.14
-0.65
Insight Glob Multi-Strat Fd
0%
*123.55
-0.19
Growth Fd
5.00
424.04
448.92
+1.52
Insight Inflat-Link Corp Bd
0%
*107.54
+0.07
Long-Term Global Equity
0%
252.39
-0.55
Fundsmith LLP
PO Box 10846, Chelmsford, Essex, CM99 2BW.
0330 123 1815
www.fundsmith.co.uk enquiries@fundsmith.co.uk
Liontrust Investment Funds
3.50
65.91
+0.07
PO BOX 23850, Edinburgh EH7 5FY
Dealing and Admin 0330 123 3822
Marks & Spencer Unit Trust
Management Ltd
Year
Newton Asian Income
0%
*195.69
+0.50
Newton Cont European
0%
267.60
-0.14
RPIX (Target 2.5pc)
Mar 278.80
+0.20
+3.4pc
Newton Global Dyn Bd
0%
*101.87
+0.12
CPI (2015=100 target 2pc)
Mar 105.00
+0.10
+2.5pc
Halifax house price index
Mar 737.50
1.5pc
+2.7pc
Newton Glb High Yld Bd
0%
*59.88
-0.25
Fundsmith Equity T Acc
–
355.93
-1.07
JPM Emg Euro Eq A Acc
Fundsmith Equity T Inc
–
330.46
-0.99
Overnight
0.47pc
US Fed Funds
7 day
0.49pc
US Long Bonds Yld
3.13pc
1 month
2.50pc
1.50-1.75pc
0.51pc
European repo rate
1.25pc
3 months
0.71pc
European base rate
0.00pc
6 months
0.81pc
Major price changes FTSE 100
Risers 67
Volume
Close
Change
Fallers 31
1.55m
1989
2.53pc
È Fresnillo
1.69m
1245
-2.35pc
2.97m
5213
2.16pc
È BT Group
17.57m
245
-1.78pc
Ç BP
48.20m
547¾
1.80pc
È BHP Billiton
5.63m
1518¾
-1.63pc
Ç Sainsbury
62.76m
314½
1.78pc
È Reckitt Benck
0.87m
5623
-1.39pc
Ç Intl Cons Air
3.73m
641¼
1.75pc
È Antofagasta
2.29m
959¼
-1.36pc
Ç Mediclinic Intl
0.77m
682
1.64pc
È Morrison (Wm) 18.25m
239¾
-1.36pc
Ç WPP
6.74m
1268
1.64pc
È Evraz
452⅝
-1.22pc
Ç Rentokil Initial
3.63m
312
1.63pc
È Hargrve Lans
1768
-1.20pc
16.09m
154⅛
1.62pc
È Glencore
29.48m
347
-1.07pc
Ç Utd. Utilities
2.58m
755¼
1.61pc
È Marks & Spen
15.15m
284⅞
-0.97pc
Ç Easyjet
1.83m
1614½
1.54pc
È Barclays
26.41m
205½
-0.84pc
Ç DCC
0.13m
7105
1.50pc
È Next
0.89m
5214
-0.80pc
Ç Experian
3.84m
1691
1.44pc
È Rio Tinto
4.40m
3914½
-0.80pc
Ç ITV
5.31m
0.56m
Ç Halma
0.64m
1240
1.39pc
È Standard Life Abr 7.89m
363⅛
-0.60pc
Ç Aviva
10.10m
536¼
1.36pc
È Vodafone
210½
-0.52pc
31.72m
+0.3
…
43.1500
-0.4900
JPM US Eq Inc £ Hdg A Inc
3.00
*116.0000
-1.6000
UK Select Port Inc
–
352
352
-0.3000
JPM US Eq Inc A Acc
3.00
*170.4000
-1.0000
UK Selection Port
–
638
638
…
Newton Intnl Bond
0%
232.23
+0.11
JPM Emg Markets A Inc
3.00
95.4100
-0.1300
JPM US Eq Inc A Inc
3.00
*137.1000
-1.5000
UK 100 Co’s Fund Inc
–
221.9
221.9
-0.8
Newton Multi-Asset Bal
0%
193.83
-0.37
JPM Emg Mkts Inc A Acc
3.00
*73.6800
-0.3000
JPM US Select A Acc
3.00
160.4000
-0.6000
UK 100 Co’s Fund Acc
–
382.7
Newton Mult-Asset Div Ret
0%
154.87
-0.21
JPM Emg Mkts Inc A Inc
3.00
*58.2800
-0.8300
JPM US Select A Inc
3.00
158.3000
-0.6000
W’wide Man Inc
–
506.8
+1.6
JPM Eur Dyn (ex-UK) £ Hg A Acc3.00
218.4000
+0.3000
JPM US Sm Cos A Acc
3.00
636.6000
-3.1000
W’wide Man Acc
–
813
+2.5
JPM Euro Dyn (ex-UK) A Acc 3.00
223.3000
-0.4000
JPM US Sm Cos A Inc
3.00
166.7000
-0.9000
Newton Mult-Asset Gwth
0%
831.05
-0.84
Newton Oriental
0%
667.93
+1.25
Newton Real Return A
0%
113.08
+0.03
Newton UK Equity Fund
0%
*876.63
+2.16
Janus Henderson Investors
PO Box 9023 Chelmsford, CM99 2WB
Enquiries: 0800 832 832
Website: www.janushenderson.com
5.00 *107.0300 112.4400
Ç Severn Trent
257.3
224.0000
Asian Dividend Income Inc
Ç AstraZeneca
*257.3
3.00
+1.45
-2.47pc
-1
–
3.00
331.68
-2.48pc
296¼
112
High Income Acc
JPM Emg Markets A Acc
0%
3900
7.36m
*112
…
Sell
JPM Emg Euro Eq A Inc
Newton UK Opps
3.69m
È Kingfisher
–
*143.4000
-0.20
5.00
È Brit Amer Tob
High Income Inc
3.00
Init chge
-0.80
Asia Pac Cap Gwth A Acc
4.08pc
Change
Buy on day
JPM US A Inc
Name
281.06
+0.09
3.22pc
Mid
-2.3000
*192.55
*67.59
805⅜
Change
Buy on day
0%
0%
2179
Mid
195.3000
Sell
0%
Newton UK Inc
7.20m
3.00
Newton Glb Inc Stg Inc
Change
1.46m
Init chge
Newton Glb Opps
Close
Ç Just Eat
Kings Meadow, Chester, CH99 9UT
0870 333 1835
Name
Volume
Ç Bunzl
Carvetian Capital
Management Limited
Admin: Stuart House, St John’s St,
Peterborough PE1 5DD
Dealing & Enquiries: 0845 850 0255
1116.0000
JPM Euro Dyn (ex-UK) A Inc
3.00
100.2000
-0.2000
JPM Europe A Acc
3.00
1463.0000
-2.0000
JPM Europe A Inc
3.00
81.3000
-0.1100
…
JPM Euro Smaller Co A Acc
3.00
775.6000
-4.0000
3.00
+2.00
Cautious Managed A Acc
5.00
*268.4000
+0.20
JPM Euro Smaller Co A Inc
100.4000
-0.6000
Cautious Managed A Inc
5.00
*153.0000
-1.60
JPM Global Bd Opps A Grs Acc –
*54.1300
-0.0300
Jupiter Unit Trust Managers Ltd
China Opps A Acc
5.00
1468.0000
+6.00
JPM Global Bd Opps A Grs Inc –
*48.8900
-0.0200
The Zig Zag Building, 70 Victoria Street, London,
382.7
-1.6
M & G Securities Ltd
SW1E 6SQ
020 3817 1000
Emerg Mkts Opps A Acc
5.00
208.3000
-0.90
JPM Global Bond A Gross Acc 3.00
262.4000
…
European Growth A Acc†
5.25
235.1000
+0.10
JPM Global Bond A Gross Inc 3.00
203.6000
…
1644.0000
-2.00
JPM Global Eq Inc £ Hdg A Acc 3.00
*82.8600
-0.4700
Jupiter Abslt Rtn
–
54.58
…
PO Box 9039, Chelmsford, CM99 2XG
Enq: 0800 390 390. UT Deal: 0800 328 3196
-0.58
Charibond Inc
–
*122.97
Charibond Acc
–
*3971.93
+3.7
+0.16
Charifund Inc
–
*1606.73
-13.35
FENIX Balanced Fd
5.00
*157.7
…
European Sel Opps A Acc
5.00
Generation Fd
5.00
782.2
…
Fixed Int Mthly Inc A Inc
4.25 *21.7400 22.6800
JPM Global Eq Inc £ Hdg A Inc 3.00
*55.1000
-0.9500
Jupiter Asian Fd
–
923.88
+2.44
Charifund Acc
–
*24883.54
+81.95
Consistent Unit Trust
Management Co Ltd
Global Care Growth A Inc
4.50
*288.9000
-1.10
JPM Global Eq Inc Fd A Acc
3.00
*97.2400
-0.5200
Jupiter Asian Inc Fd Acc
–
131.27
+0.15
M&G Corp Bond A Inc
3.00
*40.36
+0.05
Global Equity Inc A Inc†
5.25
60.7500
-0.19
JPM Global Eq Inc Fd A Inc
3.00
*78.3300
-1.3000
Jupiter Asian Inc Fd Inc
–
121.34
+0.14
M&G Corp Bond A Acc
3.00
*69.67
+0.09
Admin: Stuart House, St John’s St,
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Dealing & Client Services 0345 850 8818
Global Growth Acc
4.25 3021.3701 3151.5200
…
JPM Global HiYld Bd A Grs Acc 3.00
*110.2000
-0.1000
Jupiter China Acc
–
140.24
+0.45
M&G Dividend A Inc
4.00
61.57
+0.14
Jupiter China Inc
–
134.75
+0.43
M&G Dividend A Acc
4.00
685.57
+1.59
Jupiter Corp Bond Inc
–
56.60
+0.07
Global Strategic Cap Acc†
5.00
240.0000
+0.40
JPM Global HiYld Bd A Grs Inc 3.00
*36.3300
-0.5500
Global Technology A Acc
5.00
1678.0000
-3.00
JPM Global HiYldBdAGrsMthInc3.00
36.34
-0.20
Ç Lon Stock Ex
2.04m
4355
1.28pc
È Lloyds Bk Gp
188.31m
64⅜
Ç Coca-Cola HBC
0.45m
2475
1.27pc
È Ferguson
0.54m
5556
-0.43pc
Unit Tst Inc
–
52.23
52.93
+0.25
Multi-Mgr Abs Ret A Acc
5.00
*141.7000
…
JPM Global Macro Bal A Acc
3.00
*72.3600
-0.1600
Jupiter Dstrbtn Acc
–
*102.24
+0.15
Ç Informa
5.48m
748¼
1.24pc
È Carnival
0.72m
4706
-0.40pc
Unit Tst Acc
–
134.7
136.6
+0.7
Multi-Mgr Active A Acc†
5.00
*224.6000
-0.20
JPM Global Macro Bal A Inc
3.00
*63.3800
-0.1800
Jupiter Dstrbtn Inc
–
*59.13
-0.02
Ç St James Place
0.70m
1150½
1.23pc
È Tesco
24.44m
235
-0.38pc
Practical Invest Inc
5.00
237.4
254.3
+0.8
Multi-Mgr Distbn A Inc
5.25
136.0000
+0.50
JPM Global Macro Opps A Acc 3.00
73.76
-0.33
Jupiter Dstrbtn & Grth Inc
–
*123.91
+0.28
Ç Barratt Dev
2.00m
564⅝
1.18pc
È Unilever
0.93m
4062½
-0.37pc
Practical Invest Acc
5.00
1256
1346
+4
Multi-Mgr Divrsfd A Acc
–
85.7500
+0.19
JPM Global Macro Opps A Inc 3.00
73.08
-0.32
Jupiter Eco Inc
–
*376.47
-2.31
-0.49pc
-0.37
*178.30
+3.3pc
Nationwide Base Mortgage Rate
66.49
0%
Insight Eq Inc Fund
+0.10
0.50pc
-0.40
Jupiter US Sm&Md Cap Ret Acc –
0%
Insight Corporate Bd
Target Funds
Change on month
Bank Rate
72.07
+0.51
0%
Mar 278.30
Money
*195.66
120.50
Boston Co US Opp Fund
RPI (1987=100)
Inflation
–
Jupiter US Sm&Md Inst I Acc –
Initial charge:
This charge in percentage terms is included in the purchase
price of the units. It is levied by the unit trust manager to cover
administrative costs and commissions.
* Denotes Ex-dividend
…
8
Wednesday 2 May 2018 The Daily Telegraph
***
Business
Savannah unveils Europe’s biggest hard-rock lithium discovery
By Jon Yeomans
A MINING minnow claims to have
struck the largest hard-rock lithium deposit in Europe, paving the way for continental supply of the mineral, which is
used in batteries for electric vehicles.
Aim-listed Savannah Resources will
today unveil a 52pc upgrade to its
proven resources at the Mina do Bar-
roso lithium project in northern Portugal. The mine, if developed, has a
resource of 14m tons at more than 1pc
lithium, putting it in the “high grade”
category, with an expected lifespan of
30 years.
Dale Ferguson, of Savannah, said the
project could help feed technology
companies and car makers’ voracious
demands for the mineral, which is used
in lithium-ion batteries. Currently
Europe consumes around 25pc of the
world’s lithium but is dependent on
imports from Australia, Chile, Argentina and China.
“This is one of most significant
lithium finds in the last few years,”
Mr Ferguson said. “This is gardenvariety lithium that is very tried and
tested in terms of battery technology.”
In recent years lithium production
from brine has grown to compete with
hard-rock “spodumene” output.
But Mr Ferguson said companies
were investing heavily in technology that was dependent on hard-rock
lithium: “So much infrastructure is
being built for it, it’s going to be
around for the medium term.
There’s no obvious replacement for it.”
Experts are split over whether the
lithium market is heading into a
supply deficit. Bearish forecasters including Morgan Stanley have predicted that prices could fall from their
current highs as new mines come online by 2021.
However analysts at SP Angel said:
“Consumption of lithium from the
electric vehicle market is rapidly accel-
erating, particularly with the Asian
markets aggressively ramping up EV
targets. Asian buyers are seeking to invest and lock up supply.”
Savannah hopes to present a feasibility study by June that will indicate the
likely costs of developing its Portuguese asset and allow it to begin shopping for customers who may be willing
to strike offtake agreements.
Pizza Express
grows sales but
costs take a bite
out of earnings
By Bradley Gerrard
BITING conditions in the UK restaurant sector took a slice out of earnings
at Pizza Express last year as higher
wages, food price inflation and rent
costs weighed on the chain.
Improved sales both at home and
abroad failed to counter the potent
combination of cost pressures that
have wreaked havoc on the casual dining sector, and caused several casualties including at Jamie’s Italian and
Prezzo, which have both had to close
sites and pay reduced rents on others
in a bid to keep trading.
Executive chairman Jinlong Wang
said he was pleased the chain had managed to grow UK and Ireland like-forlike sales after two consecutive years of
decline. However, he acknowledged
that in spite of a return to form, earnings before interest, tax, depreciation
and amortisation dropped nearly 9pc
to £94.6m in 2017.
The company has not yet reported
its pre-tax profits for last year but,
according to Companies House filings,
it made a £17m loss before tax in the
18 months to the end of 2016.
“Our international business also
delivered an exceptional performance
with like-for-like sales increasing by
8.2pc but, as expected, this growth has
been offset by the widely publicised
sector cost headwinds in the UK,” he
said. Mr Wang said the company
opened 13 sites last year including the
first Pizza Express site operated by its
motorway services franchise partner
Welcome Break, at Oxford services. It
also refurbished 25 sites, one of which
was the first of its “Pizza Express Live”
sites, which hosts jazz performances.
“Throughout 2017, we explored
innovative ways to diversify Pizza
Express and reach new audiences, such
as the trial of a Pizza Express ‘Boxed’
concept, a mobile site able to provide a
taster of the Pizza Express experience
at events such as the British Summer
Time festival,” Mr Wang said. He added
$94.6m
Pizza Express’s earnings before interest,
tax, depreciation and amortisation
in 2017, a fall of almost 9pc
that the chain’s supermarket range of
pizzas and pastas had now reached
£100m in sales, making it one of the
UK’s top 100 biggest retail brands.
Pizza Express, which was bought by
Chinese firm Hony Capital in 2014 for
£900m, has been run by Mr Wang
since May last year when former boss
Richard Hodgson stepped down after
four years in the role.
Mr Hodgson now runs the YO! Sushi
Japanese restaurant business after its
veteran boss, Robin Rowland, moved to
the board as a non-executive director.
Mr Rowland ran YO! for 18 years and
grew the chain from just three London
sites to 97 worldwide via three private
equity deals.
GEOFF ROBINSON
Boss Jinlong Wang says he
is ‘pleased’ with return to
revenue growth, driven by
its international division
Purple patch Nearly 25m flowers are being chopped down in Britain’s last remaining tulip fields. While the blooms have
put on a kaleidoscope display near King’s Lynn, Norfolk, for the past week, they are now being cut off in their prime, before
the petals fall off, so that all of the plant’s energy can go into next year’s bulbs rather than setting seed.
Online demand
and new
territories
combine to
lift DS Smith
By Rhiannon Curry
DS SMITH has been buoyed by a recovery in paper prices and the continued growth of internet shopping,
which has increased demand for its
packaging products.
The company said that in the year to
April 30, it had increased its share of
the market by targeting multinational
customers, particularly internet retailers and delivery firms. It will report an increase in its sales
for the year when it releases its full
results on June 28.
In an update to the market yesterday, the company also said that its purchase of United States packaging
group Interstate had proven to be better than expected, with the value of
the two businesses combined worth
$35m (£26m), $5m more than previously forecast.
The deal, which was announced in
June last year, was DS Smith’s first step
into the lucrative US market.
Interstate Resources supplies corrugated packaging primarily to food and
drink companies in the US.
“Volume growth in the US has been
excellent, and we are very pleased with
the positive reaction from local and
global customers,” said chief executive
Miles Roberts.
DS Smith also said it was pleased
with the initial progress made in integrating Ecopack and Ecopaper, the Romanian packaging and paper business
it bought for €208m (£183m) in March
to expand its European network.
Expanding into new markets has
enabled it to make savings in its supply
chain, the company said.
DS Smith’s shares closed up 5.6p at
528p.
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