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The Daily Telegraph Business May 3 2018

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Business
**
Thursday 3 May 2018
telegraph.co.uk
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Market report page 7. Questor page 6
Gold
In the mood
for love
Zuckerberg
sets his
heart on
winning
the dating
game
Bigger and
better?
Benefits of
grocer
giants’
merger
Julia
Bradshaw
Page 4
Page 2
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Page 7
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Page 7
Cambridge
Analytica
shuts down
MPs hit out at
‘complacent’
TSB bosses
over IT fiasco
By Iain Withers
TSB has been deluged with 40,000
customer complaints in less than a fortnight due to its ongoing IT meltdown,
the bank’s top bosses revealed as they
endured a humiliating grilling at the
hands of MPs yesterday.
The British lender refused to rule
out taking its Spanish owner Sabadell
to court over the botched switch to the
IT system supplied by its parent.
Under fierce questioning from MPs
on the Treasury select committee, it
was confirmed Paul Pester, the TSB
chief, would not receive a £2m bonus
for completing the migration, which
involved 5.2 million customers and
1.3 billion customer records.
Committee chairman Nicky Morgan
accused Mr Pester of being “extraordinarily complacent” in his responses as
he sought to downplay the extent of the
problems that are being faced by the
bank’s customers.
Mr Pester said he regretted pushing
the upgrade through on the weekend
of April 21 and 22 when asked if he
would do it again if he had known how
it would turn out.
“If I had a time machine I would take
myself back to one minute before and I
would change the decision,” he told
MPs. “If there is one decision in my life
that I could change it was the decision
to go ahead with the migration.
“Clearly that was a terrible decision
for our bank, for our customers and for
me personally. Of course I would
change it.”
However the bank’s top bosses – including chairman Richard Meddings
and Miquel Montes, Sabadell’s chief
operating officer – denied they had
rushed through the move for commercial reasons.
TSB had been paying around £200m
a year to use the IT system of Lloyds, its
old owner.
The executives could not give a
deadline for when the problems would
be fixed.
Mr Meddings said he could not rule
out TSB legally challenging Sabadell,
after it drafted in “magic circle” law
firm Slaughter & May to conduct an
independent probe yesterday. “Depending on the legal review and its outcomes we will act on that,” he said.
TSB said it was proactively compensating customers who had been put
into financial difficulty as a result of
system outages.
Mr Pester clashed with MPs over the
extent of the bank’s failings.
He said he did “not recognise” accounts of widespread issues logging in
to online and mobile banking, claiming
the success rate had increased from
50pc last week to 95pc.
Two MPs who tried to log in during
the session were unable to do so.
When confronted with cases of constituents unable to access their money
since the problems began, Mr Pester
urged customers to contact TSB direct.
He said some on Twitter were “shouting into the void”.
Mr Pester once again said he was
“truly sorry” but said the “underlying
engine is running relatively smoothly”.
Analysis: Page 5
CAMBRIDGE Analytica, the
British election consultancy
that allegedly used data harvested from Facebook users
for political campaigning, is
shutting down.
The company and parent
group SCL entered insolvency
proceedings
last
night, it confirmed, appointing Crowe Clark Whitehill as
administrators. US affiliate
companies are also entering
bankruptcy proceedings.
Cambridge
Analytica
worked for Donald Trump’s
election campaign after previously
having
been
employed for his Republican
rival Ted Cruz, and carried
out political consulting work
around the world.
It was embroiled in a privacy storm in March when
Facebook banned it from its
network following claims it
had used the private data of
millions of users and failed
to delete it three years ago.
Facebook has since revealed that Cambridge Analytica may have had access to
up to 87m users’ details such
as interests, relationship status and political views,
including 1.1m in Britain.
Last night, it said an independent investigation by
British lawyer Julian Malins
into recent allegations had
found the claims against the
company were “not borne
JUERGEN TELLER
Select committee lets rip
as bank tries to play down
problems despite 40,000
complaints in two weeks
By James Titcomb
Check this out There was little sign of Burberry’s iconic pattern as the
London fashion house introduced its autumn-winter 2018 pre-collection,
featuring clashing prints, graffiti scribbles and new styles of the “Belt” bag.
End to Tesla’s cash-burn in sight Embarrassment for Inmarsat in
as it eyes profit later this year
new protest over executive pay
By Hannah Boland
TESLA expects to stem its
cash-burn later this year,
with plans to pull back on
spending even as it continues to ramp up production
of its Model 3 vehicles.
Tesla has been pumping a
vast amount of money into
increasing capacity at its factories, having been free cash
flow negative for the past five
quarters. Bloomberg analysis
earlier this week suggested
the company was spending
more than $6,500 (£4,780)
Snapchat hit as
growth falters
SHARES in Snapchat’s parent company nosedived yesterday after it revealed that
the messaging app’s growth
had ground to a near halt.
Snap shares fell by more
than 20pc to reach their lowest point since the company
went public in March of last
year. Daily users grew by
just 4m in the first three
months of the year, against
an increase of 9m in the previous quarter.
every minute, and many had
been expecting Tesla to say it
would need to raise additional capital imminently. However, chief executive
Elon Musk last night said the
group was set to start generating cash later this year, and
post profit in both the third
and fourth quarters, excluding non-cash stock-based
compensation. When asked whether Tesla would raise any cash later
this year, Mr Musk said: “I
specifically don’t want to.”
He said Tesla was on track
with its targets for Model 3
production, which should
reach 5,000 vehicles per
week in around two months,
saying it had “largely overcome” the production bottleneck which had caused
delays to its ramp-up.
The update on production
came as Tesla posted first
quarter results, revealing its
worst ever quarterly loss, of
$709.6m, but still beating
analyst expectations. Revenue came in at
$3.4bn, compared to Wall
Street forecasts of $3.32bn.
By Christopher Williams
REBELLIOUS shareholders
claimed their first scalp of
AGM season as executive
pay at satellite operator Inmarsat was voted down amid
claims of short-termism.
Almost 60pc of shareholders rejected the company’s
remuneration report, which
revealed that chief executive
Rupert Pearce was paid
£1.9m in a year that saw the
company’s stock market
value more than halved.
The vote was advisory and
does not require Inmarsat to
act. But it will be viewed as
an embarrassment for a
company that has repeatedly
faced shareholder protests
over executive pay. Under
recent corporate governance reforms, Inmarsat must
hold a binding vote on remuneration policy next year.
It won the vote on its remuneration report last year
by the narrowest of margins,
and Mr Pearce’s pay this year
was 20pc lower. In the wake
of yesterday’s defeat, shareholders said the board,
chaired
by
Andrew
Sukawaty, should have taken
more radical action. Ashley
Hamilton-Claxton of fund
manager Royal London,
which owns a stake in Inmarsat worth £8.8m, said:
“It seems that the board of
Inmarsat did not go far
enough to address the dissent.”
Another firm facing a potential shareholder revolt
over pay was Melrose, with
Glass Lewis urging investors
to vote against “excessive”
executive payouts.
out by the facts”. However, it
blamed a “siege of media
coverage” for driving away
its customers and said it
could no longer survive.
The company added:
“Cambridge Analytica has
been the subject of numerous unfounded accusations
and, despite the company’s
efforts to correct the record,
has been vilified. Despite
Cambridge Analytica’s unwavering confidence that its
employees have acted ethically and lawfully, which
view is now fully supported
87m
Number of Facebook users
whose details Cambridge
Analytica may have accessed
by Mr Malins’ report, the
siege of media coverage has
driven away virtually all of
the company’s customers
and suppliers.”
The company received Facebook data from Aleksandr
Kogan, a Cambridge University academic, who had obtained it using a quiz app
linked to people’s Facebook
profiles. It was downloaded
by just 305,000 people.
Mr Kogan has said that he
never at any time collected
private message data for
commercial purposes.
2
Thursday 3 May 2018 The Daily Telegraph
**
Business comment
Merging two grocers will provide
store investment, give customers
a nicer shopping experience and
encourage product development
N
ews of a possible multi-billionpound tie-up between two of the
country’s top supermarkets,
Sainsbury’s and Asda, came as a
huge surprise this week. It was a
move that no one was expecting,
not even the journalists, analysts and other
experts who spend their working lives writing
about the sector.
The immediate reaction has been focused
around what such a merger could mean for
supermarket competition and, therefore, how it
might affect consumer choice and prices. If the
deal goes through, the supermarket landscape
would indeed look very different, with two
grocers dominating the sector.
There would be Tesco with a 28pc share of the
market, and Sasda, or Asdbury’s, or whatever
you want to call it, with a nearly one-third slice
of the pie. Together, they would have a market
share of roughly 60pc.
With such clout spread across just two
players, the concerns are that suppliers, such as
the farmers and other producers who sell to the
supermarkets, will be squeezed even harder,
while consumer choice will be eroded.
These risks are big, and very real, and are two
reasons why the deal will almost certainly be
scrutinised by the UK’s Competition and
Markets Authority before it can go ahead.
Indeed, the CMA will probably force
Sainsbury’s and Asda to sell off stores, or take
some sort of other remedial action, to satisfy
competition concerns.
Having said all this, there is another side to
this argument, and one that is worth
considering. The way most people think about
competition is that the bigger a player is, the
greater its share of the market, the worse it is for
everyone else. This isn’t necessarily correct. Big,
in fact, doesn’t always have to mean worse.
First off, scale gives companies enormous
buying power, not just for the groceries they
sell, but for things like IT procurement, the
savings of which they can pass on to their
consumers. There’s a reason why, over the past
50-odd years, food retail
has consolidated and prices
have been falling in relation
to household income.
Bigger companies also
come with large centralised
back offices for mundane
functions such as HR,
services and pensions
(apologies to anyone
reading this who works in
these fields), which are
cheaper to run en masse.
They tend to have extremely streamlined
operations and are often more professional and
efficient in dealing with problems, such as
customers complaints.
As Christine Tacon, the groceries code
adjudicator, pointed out yesterday to a
committee of MPs who were grilling her on the
Sainsbury’s/Asda merger, bigger supermarkets
tend to be able to spend larger amounts of time
and money on making sure they are compliant
than smaller outfitters. Should they run into
trouble with the regulator, they are much
quicker to respond than their smaller peers.
Another interesting point from the committee
hearing came from DUP MP David Simpson. He
said the suppliers he had spoken to privately
weren’t so much worried about the size of the
new supermarket beast, but talk of a 10pc cut on
everyday groceries that had been promised to
shoppers. “Size is a necessary evil” in the food
retail sector, he said, because suppliers rely on
large supermarkets to absorb a huge volume of
product – and to do so consistently.
Scale also brings with it sizeable sums of cash
to invest in stores, offering customers a nicer
shopping experience, as well as greater
willingness to experiment with new products
that could potentially sell badly, because costs
can be more easily absorbed into the business.
Finally, it’s worth noting that the rationale
behind the merger is a defensive one: the
supermarket landscape is changing apace and
Sainsbury’s and Asda have seen the writing on
the wall, so to speak.
After all, Sainsbury’s isn’t ditching 149 years
as a solo firm just to score a few extra points in
the City. It’s not a decision that would have been
taken lightly. It is one that has become necessary
as Sainsbury’s (and Asda’s) market share is being
steadily eroded by German discounters Aldi and
Lidl. This duo have nearly doubled their slice of
the market in less than three years to a
combined 12.7pc. They report quarter after
quarter of rising sales. Tesco, meanwhile, is
staging a remarkable comeback under the
leadership of Dave Lewis.
Ironically, it is precisely because of what is
happening in the sector that things might not
actually change very much at all, despite the
merger. If Aldi and Lidl continue to expand at
their current rate, we’ll very soon have a new
Big Four or possibly even a Big Five: Tesco,
Sasda/Asdbury’s, Morrisons, Aldi and Lidl.
There is something to be said for allowing the
market to sort itself out, rather than interfere.
And with other grocery players such as The
Co-op, Waitrose and M & S serving niche parts of
the market, and Ocado and Amazon shaking up
the industry with online grocery shopping,
competition in food retail, it seems, is
everywhere – and growing.
Of course, any concerns over competition, on
both the supply side and the consumer side, will
be dealt with by the CMA to ensure shoppers
and producers don’t lose out. But don’t be
surprised if the CMA finds that, in this market,
bigger is better.
‘Sainsbury’s
isn’t ditching
149 years as a
solo firm just
to score a few
extra points
in the City’
ANDREW WILSON
ON
P
olitical uncertainty has
resurfaced in Japan and a
series of scandals have
pushed the approval rating of
prime minister Shinzo Abe’s
Liberal Democratic Party to its lowest
level since Abe’s second term
commenced in 2012.
If Abe were to step down, he would
follow in the footsteps of his maternal
grandfather Nobusuke Kishi, who
resigned the premiership amid public
protest in 1960. Two generations
removed, public support for the prime
minister is waning once again, but
Abe’s party rivals have failed to
capitalise on his polling weakness.
Rumours of a resignation this
summer seem overplayed given the
absence of a credible opponent to Abe.
We do not expect a departure but
think it is worth considering what
would happen if it came to pass
because the implications of such an
event for markets, the global economy
and global monetary policy should not
be overlooked.
Abe’s exit would call his ultraaccommodative monetary policies,
known as Abenomics, into question.
The market’s immediate reaction
would be negative. Trades set into
motion since the launch of Abenomics
would unwind.
The most likely outcome is that
equity prices would plunge, and the
currency would appreciate.
Any successor to Abe could revisit
the Bank of Japan’s current mandate.
Ultra-loose monetary policy does not
sit comfortably with large swathes of
Japan’s Liberal Democratic Party.
The party represents many elderly
Japanese in receipt of fixed pension
incomes who have no vested interest
in maintaining low policy rates and
stimulating inflation.
For international observers, it is
difficult to imagine a scenario under
which such an influential figure
would be deposed. Indeed, for
Business
Insight
IAG
C
oncerns about
British Airways
owner IAG’s
performance in the past
six months will likely
come behind any extra
details boss Willie Walsh
can give about its
interest in low-cost
long-haul rival
Norwegian, writes
Bradley Gerrard.
IAG disclosed a near
5pc holding in its
competitor last month,
adding this ignited the
possibility of a full offer.
Mr Walsh may be
constrained in what he
can say, but investors and
commentators alike will
be hanging on every
word, trying to decipher
if, or indeed when, the
aviation stalwart might
AFP/GETTY IMAGES
Bigger could
be better with
‘Sasda’ in the
marketplace
Abe’s popularity is on the wane but
Japan cannot afford to ditch him
proponents of Abenomics – based on
“three arrows” of monetary easing,
fiscal stimulus and structural reform
– there is poetry in Japan’s most
successful politician gearing up for a
third term in office.
Abe has reaffirmed his commitment
to monetary easing over the last five
years on numerous occasions,
including drawing up an agreement
with the BoJ to set a public inflation
target of 2pc and appointing
Haruhiko Kuroda, a known
reflationist, as BoJ Governor.
This unwavering political support
enables the BoJ to be more aggressive
in its easing measures than any other
developed market central bank,
implementing quantitative and
qualitative easing and a negative
interest rate policy.
The US Federal Reserve and Bank
of England have had to contend with
political headwinds to their monetary
policy programmes. In the US, an
influential camp in the Republican
Party regarded the Fed’s post-crisis
monetary policy with some caution,
and the BoE faced resistance to its
post-Referendum easing package
from Brexiteers.
Japan’s 2pc core inflation target
remains some way off, but its inflation
ambition is a world away from the
entrenched deflation that so
subsumed the Japanese economy
through its “lost decades”.
Today, Japan’s real economy is
healthy, in part the result of a
consistent and accommodative
monetary approach.
Unemployment is close to historical
lows, GDP growth is robust and
industrial production is buoyant.
Political backing for easy monetary
policy has fostered innovation and
allowed the BoJ to expand its policy
toolkit – yield curve control is a prime
example and may well serve as a
blueprint for modern central banking.
strike. Jet fuel has been
added to the fire since IAG
disclosed its stake, with
Norwegian’s boss Bjorn
Kos saying other airlines
had expressed interest.
A purchase of
Norwegian raises
questions about what IAG
might do with its fledgling
low-cost long-haul carrier
Level, which currently
flies from Barcelona and
‘It is difficult
to imagine a
scenario
under which
such an
influential
figure would
be deposed’
Today
648.4p
High Oct 2017
670p
Low May 2017
555.5p
Willie
Walsh
Chief
executive
Paris to destinations in
North America, the
Caribbean and Argentina.
Beyond bid speculation,
the airline is expected to
see its adjusted pre-tax
profits hit £2.85bn in 2018,
according to analyst
consensus predictions.
This would be marginally
above the €2.8bn figure it
hit in 2017.
Prime minister
Shinzo Abe has
seen his public
support fall, but
Liberal Democratic
Party rivals have
failed to capitalise
on his polling
weakness and there
seems to be no
credible opponent
Yield curve control has enabled the
BoJ to gain control over Japan’s
financial conditions, while improving
the sustainability of its bond-buying
programme. By switching its policy
control mechanism from bond-buying
to rate-targeting, the BoJ has
managed to maintain easy monetary
policy while deleveraging its
economy.
A coordinated monetary and fiscal
approach seems politically
unpalatable in the context of Europe’s
multi-speed economy, but such a
measure could possibly gain traction
among other developed market
central banks in the event of an
unexpected global downturn.
Policy rates are still historically low
(and even negative) in key markets
and are only expected to rise at a
gradual pace.
Faced with a growth-shock in the
next couple of years, policymakers
would have little leeway to ease rates
and so it is plausible that central
banks beyond Japan may also
consider further unconventional
measures.
Even under a more benign scenario,
yield curve control may pique the
interest of global central bankers
looking for safe passage out of
their quantitative easing
programmes.
In Europe, quantitative easing has
been a sensitive subject and creditor
nations have voiced concerns about
the European Central Bank taking on
the risk of the continent’s debtors.
However, leveraging strong
growth as an opportune moment to
draw quantitative easing to a close
could expose fragile pockets of the
euro bloc.
We think speculation about Abe’s
departure will not come to fruition.
Whatever the political future may
hold for him, Abenomics and the
innovative monetary policies it
enabled will endure, and central
banks – including the BoE, ECB and
Fed – may all need to take a leaf out of
the BoJ’s monetary policy book at
some point in the future.
Andrew Wilson is the chief executive of
Goldman Sachs Asset Management in
Europe, the Middle East and Africa
Share price
BLOOMBERG/JASON ALDEN
Julia
w
Bradshaw
British Airways and Norwegian could soon become sister airlines
680
p
640
600
560
520
2017
2018
Strengths
Threats
 Has the fire power to bid
for rivals
 Boasts dominant
positions at airports with
carriers such as BA
 Tackling debt and
running a share buy-back
 Rising oil prices could
make hedging jet fuel
more costly
 Softer US aviation
market could hit UK
 M&A could see it face
fewer but larger rivals
Weaknesses
Opportunities
 Exposed to downturn in
consumer sentiment
 A Norwegian deal would
include large order book,
ergo too many planes
 Ticket price wars cannot
be avoided
 Likely to benefit from
the failure of weaker
carriers
 Makes full use of
acquired Monarch slots
 New pension scheme
helps reduce deficit
We must not let a shortage of talent stifle UK fintech
CHARLOTTE
E
L
CROSSWELL
A
ccess to a pool of talented
individuals, whether they are
from overseas or from right here
in the UK, is vital to any industry
or business. For years, the issue of
whether that access should be limited
in some way, or subject to greater
flexibility, has been a key question for
both businesses and policymakers.
This has certainly been true in our
financial and supporting professionalservices sector. It will directly
influence the continued development
of our most innovative technology
industries, especially for financial
technology, or fintech.
The UK is the financial capital of
the world. But, as the world changes,
the innovation that fintech brings is
critical to it remaining so. From
fundamentally changing the way we
save, manage and borrow our money,
to creating a more pluralistic
financial sector, fintech represents
not just a growth sector in its own
right, but is key to the future
prosperity of financial services in
the UK.
The success of the British fintech
industry has occurred against a
backdrop of openness towards global
trade, investment and greater
collaboration between technology
and finance, welcoming the benefits
these deliver to our economy and
reflected in the international nature of
the workforce.
The UK fintech sector now has a
total workforce of 76,500 employees
with significant accompanying
growth in investment – $1.8bn
(£1.3bn) of venture capital invested
across 224 deals last year.
While the sector is relatively small
by workforce, UK fintech is thriving
and is supported by a strong
ecosystem of institutions and startups working together in a competitive
and innovative economy. However,
this success is critically reliant on
talent that is in short supply, both
internationally and domestically.
Innovate Finance recognises that
the Government has a mandate to
reduce the UK’s net migration figure.
Against the backdrop of the ongoing
Brexit negotiations, there is a unique
opportunity to reimagine the
immigration system to better suit the
country’s skills needs.
We welcome the stance recently
taken to reassure those EU citizens
already here of their rights to remain
and apply for settled status. However,
as highlighted in our new report
“Supporting UK Fintech: Accessing
Global Talent”, commissioned by
Innovate Finance and produced by
WPI Economics, any new
immigration system must not limit
fintech’s ability to attract skilled
workers from the international pool of
mobile and talented individuals.
These individuals not only create
and advance UK fintech businesses
– whether they are entrepreneurial
founders or highly skilled software
engineers and coders – they also
support the development of a
domestic workforce through the
creation of jobs and opportunities for
UK citizens in a vibrant sector right
across the country, with a positive
contribution to our national
economic growth.
For UK fintech to continue to
grow, we will need more such
individuals in the future. By 2030,
there will be around 3,300 fintech
firms in the UK (over double the
current number) and the industry
will need 33,599 migrants from the
European Economic Area (EEA) to
support them.
Such overseas talent acts as a
complement to domestic talent,
representing skills we do not
currently have in the UK, and they
therefore do not compete for existing
UK jobs. Overseas talent currently
represents 42pc of the UK fintech
workforce – 28pc from the EEA, 14pc
from outside the EEA, demonstrating
this innovative engine for financial
services is a highly internationalised
sector. That engine will seize up if
we face a more restrictive
immigration policy.
A cumulative loss in talent, which is
already in short supply both
domestically and globally, could
represent a 320-a-year loss in EEA
migrants. And while on the surface
this may not sound too big, it is
equivalent to a 13pc reduction in
‘By 2030,
there will be
around
3,300
fintech firms
in the UK
(over double
the current
number) and
the industry
will need
33,599 EEA
migrants to
support them’
numbers for UK fintech, equating to a
£361m direct loss in value to UK
fintech. We believe such potential
results provide the foundation for a
proportionate policy response that
offers a balanced approach to
mitigating the impact on an already
limited global talent pool, and at the
same time supporting the
development of local skills, a task that
is long overdue. That is why, this
summer, Innovate Finance will be
collaborating with key partners
across finance and technology,
represented through our recently
announced fintech strategy group, to
develop a set of recommendations on
behalf of the sector, which seek to
readdress the definition of “highly
skilled” migration, create a
mechanism for training local talent,
and provide smarter methods for
sponsorship to reduce the costs on
hiring talent for smaller fintech firms.
We aim to align the needs of the
sector with the Government’s own
modern industrial strategy, providing
a roadmap to a balanced immigration
system that meets the needs of all.
Innovate Finance believes if talent
is managed in a way that encourages
flexibility around access to global
talent and the development of local
skills, then UK fintech will likely
remain attractive to businesses and be
well placed to grow and succeed into
the next decade.
Charlotte Crosswell is the chief
executive of Innovate Finance, the
trade body for the UK fintech industry
The Daily Telegraph Thursday 3 May 2018
**
3
Business
House of Fraser to axe stores and jobs
Restructuring details
clarified as Chinese owner
of Hamleys moves in to
buy up high street chain
By Ben Woods
HOUSE of Fraser plans to axe stores
and put hundreds of jobs under threat
in a major shake-up that will result in
the owner of Hamleys toy shop wrest
control of the business.
The embattled department store
chain has confirmed that China’s C.
banner International Holdings will buy
a 51pc stake in the business from ma-
jority shareholders Nanjing Cenbest.
C.banner will subscribe to new shares
in House of Fraser to support the firm
with fresh capital. However, the deal
rests on the retailer pursuing a company voluntary arrangement – a form
of insolvency process that allows companies to close stores and secure deep
discount on rents.
A CVA could lead to a significant
drop in its 59-strong UK store estate,
which employs 6,000 people and
about 11,500 concession staff.
Frank Slevin, House of Fraser chairman, said the deal represents “a step to
securing House of Fraser’s long-term
future”. He added: “We need to go further and faster if we are to confront the
seismic shifts in the retail industry.
There is a need to create a leaner business that better serves the changing
behaviours of [our] customer base.
“House of Fraser’s future will depend on creating the right portfolio of
stores that are the right size and in the
right location.”
A decision on whether to progress
with the overhaul will be confirmed in
early June, with the deal set to complete by the end of that month.
House of Fraser is 89pc owned by
Nanjing, a subsidiary of China’s Sanpower. Nanjing will retain a “significant minority interest” in the retailer.
The company expects to complete
the restructuring by early next year,
but needs to win the backing of creditors and landlords for the CVA.
It comes after the firm hired accountancy giant KPMG to help overhaul the business and speed up its
turnaround. House of Fraser is the latest retailer that has entered a CVA process. Flooring specialist Carpetright
has put 300 jobs in the firing line and
plans to close 81 stores.
Discount retailer Poundworld is also
weighing hundreds of job cuts and
nearly 100 store closures through a
similar restructuring.
Retailers have been facing an uphill
struggle on the high street in the face of
weak consumer confidence and rising
costs linked to the National Living
Wage and hikes to business rates.
House of Fraser revealed last week that
it had entered into a memorandum of
understanding with C.Banner over the
deal. However, questions remain over
the future ownership structure of
the business.
It is understood that talks over a potential stake sale between Nanjing and
Chinese tourism development firm
Wuji Wenhua are still ongoing. C.banner, which snapped up Hamleys for
about £100m in 2015, owns a string of
footwear brands including Sundance,
Steve Madden and United Nude.
Mr Slevin added: “C.banner’s investment is a vote of confidence in our
prospects. We also know that if we are
to deliver a sustainable, long-term
business then we need to make difficult decisions about our underperforming legacy stores.
“These measures are essential to ensure that House of Fraser remains an
iconic department store group for
many years to come.”
Ian Fletcher, the British Property
Federation’s director of real estate policy, said any support for the CVA from
landlords will be given “grudgingly”.
He said: “Announcing the CVA via a
statement on new investment, whilst
helpful to the overall continuation of
the business, is highly insensitive when
you are asking property investors to
absorb large losses.”
Supermarket
watchdog has
no fears over
mega-merger
THE supermarket watchdog tentatively approved the mega-merger between Sainsbury’s and Asda, saying
bigger retailers are easier to regulate.
Christine Tacon, the groceries code
adjudicator, said she had “no concerns”
about the deal as scale did not affect
her ability to monitor the giants.
“If anything, [bigger supermarkets] build it into their systems and are
spending serious sums of money making sure they are compliant,” she
told MPs at a select committee hearing.
She used the example of Tesco to illustrate how it had improved since she
published a damning report into its
treatment of suppliers two years ago.
“Everywhere I go, people tell me
Tesco is a very different animal,” she
said. “They said they didn’t expect regulation to make a difference, but it has.
“I regulate both Asda and Sainsbury
already. [A merger] would be more of
the same.” Persuading suppliers to
blow the whistle on unfair practices
was already difficult, Ms Tacon said,
and the size of the supermarkets involved would not change that.
She pointed out that her role was to
investigate and fine supermarkets if
they flouted agreements with suppliers
or treated them unfairly.
Sainsbury’s ranks second best in the
adjudicator’s league table of 10 supermarkets she regulates, but Asda is second from last. Ms Tacon said she hoped
to bring Asda up to Sainsbury’s standards if the £15bn merger went ahead.
“My penalty powers are 1pc of turnover, so the bigger you are, the more it
will hurt,” she said. As well as having
the power to fine supermarkets, Ms
Tacon can make them pay a higher levy
toward the funding of the adjudicator.
“The levy is a useful weapon in my
armoury because I have the right to
vary it,” she said. “The ones who cause
me more trouble have to pay more.”
Meanwhile, Mike Coupe, Sainsbury’s chief executive, moved to reassure MPs that the proposed merger
would not put the supermarket’s retirement scheme at risk.
REUTERS/FRANCOIS LENOIR
By Julia Bradshaw and Ben Woods
Dab hands European Commission president Jean-Claude Juncker and Brexit campaigner and former Ukip leader Nigel Farage high five at the European
Parliament in Brussels. It came ahead of the plenary session on EU spending post Brexit, in which Mr Juncker called for a bigger budget for 2021-2027.
Standard Chartered recovery has a ‘long road ahead’ as profits fall short
By Iain Withers
EMERGING markets bank Standard
Chartered has fallen short of City
expectations of a rapid recovery, sending the FTSE 100 firm’s stock south.
Concerns about higher costs and
slower growth led to shares falling to
close down 1pc at 761.4p yesterday.
Chief executive Bill Winters has
spent three years overhauling the Asia
and Africa-focused lender, cutting
thousands of jobs and bolstering its balance sheet.
The bank returned to a full-year
profit in 2017 and reinstated its dividend in February.
Standard Chartered posted its highest quarterly revenues since Mr Winters took the helm, up 7pc on the prior
year to $3.9bn (£2.9bn), while pre-tax
profits increased a fifth to $1.2bn. But
‘We are determined to pass
an 8pc return-on-equity
milestone as soon as we can;
safely and sustainably’
both figures fell short of City forecasts.
The bank’s chief financial officer
Andy Halford warned analysts yesterday that costs may be “slightly higher”
this year due to currency movements
and increased investment.
The lender also warned market volatility that boosted trading revenues at
its investment bank at the start of the
year had “moderated” in March.
Ian Gordon, analyst at Investec, said
that Standard Chartered still had a
“long road ahead” for recovery.
The bank’s return on tangible equity, a measure of underlying profita-
bility, ticked up to 7.6pc, compared to
6.3pc a year earlier, moving it closer to
its 8pc target.
“This encouraging start to the year
shows that we are firmly on the path
laid out in February that will take us
above an 8pc return on equity in the
medium term,” Mr Winters said. “We
are determined to pass that milestone
as soon as we can in a safe and sustainable manner.”
Ocado brushes off Sainsbury-Asda threat as it signs Swedish deal
By Jack Torrance
OCADO has shrugged off the threat of
a looming grocery price war on the
back of Sainsbury’s planned merger
with Asda as it revealed a third international deal to supply its technology to
other supermarkets.
Duncan Tatton-Brown, chief financial officer, said it was “far too soon
to predict” the impact the megamerger would have on the market but
that Ocado was “pretty well adapted to
cope with whatever the conditions
are”. He said: “We match the market
leader in pricing, and yet we’ve done
that and continued to improve the economics and the underlying profitability
of our retail business over the last five
years – which have been pretty traumatic anyway.”
Mr Tatton-Brown was speaking after
Ocado revealed plans to build a warehouse staffed by robots outside Stockholm as part of a tie-up with Swedish
chain ICA, the latest in a flurry of deals
that will give investors confidence its
shift to focus on becoming a supplier of
white-label technology is beginning to
pay off.
The FTSE 250 firm will also allow
ICA, which is Sweden’s biggest grocer
with a market share of 36pc, to use its
ecommerce and logistics technology.
Ocado expects the deal to be earnings neutral this year, with small increases in capex spending in future
years to invest in building the technology, but Mr Tatton-Brown said it would
create “significant long-term value”.
The news sent Ocado’s shares up
3.5pc to 575p in early trade. Investors
36pc
Market share of Sweden’s ICA store chain,
which is made up of hundreds of individual
retailers that operate under one banner
had been waiting years for a deal after
boss Tim Steiner set out plans to grow
the business by focusing on working
with other supermarkets instead of just
relying on Ocado’s own food delivery
will be dispatched from a central warehouse to keep costs low.
Mr Tatton-Brown said the extra
complexity meant the partnership
would take three years to get up and
running, and be more onerous for Ocado, but that was reflected in the fees
ICA will have to pay.
He added: “Having developed a
model that works with one independent retail group we have the ability in
the future to sign similar partnerships
with other independent retail groups
around the world.”
Ashley queries MP’s conduct
over Sports Direct inquiry
Seasonal jobs
abroad come
under threat
due to Brexit
By Ben Woods
By James Rothwell and Asa Bennett
For decades, British youngsters have
whiled away their summer holidays on
the slopes of the Alps and the waters of
the Mediterranean, plying their trade
as ski instructors and yachtmasters.
But snowsport and yachting associations have warned their seasonal fun
could be put in jeopardy by Brexit, as
they called on Theresa May to protect
free access to seasonal work in Europe.
In a letter to the Government seen
by The Daily Telegraph, the Royal
Yachting Association and the British
Association of Snowsport Instructors
said they feared “many jobs previously
held by UK personnel would instead be
filled by foreign nationals” after Brexit.
The letter urged the Prime Minister,
to grant ski and yachting instructors
the right to work in Europe without a
visa and with “as little administrative
burden as possible”.
Mrs May has pledged to end free
movement after Brexit, which means
that Britons will no longer have the automatic right to live and work in EU
member states.
“Thousands of our members cur-
service. This is the third such deal since
late November, when news of a tie-up
with French giant Groupe Casino sent
Ocado’s shares through the roof. A second partnership followed in January
with Canadian chain Sobeys.
Unlike Ocado’s existing partners,
which include UK chain Morrisons,
ICA consists of hundreds of individual
retailers that have come together to
operate under one banner.
Ocado will create websites for each
retailer, allowing them to compete
against each other, though the orders
Around 500 BASI ski instructors live in Europe permanently, with a further 1,500 heading over to work during the winter season
rently travel to the EU on a seasonal basis every year to work in training
centres and ski schools, generating
substantial value to local economies
and providing an income to a significant number of skilled UK workers,”
said chief executives Sarah Treseder
and Andrew Lockerbie.
Around 500 BASI ski instructors live
in Europe permanently, with a further
1,500 heading over to work during the
winter season. The RYA represents
45,000 qualified instructors and says
up to 7,000 yacht workers work in the
EU each year.
The request was welcomed by senior Tory MPs, such as former international trade minister Mark Garnier.
He said the offer could be reciprocated
with visa-free travel for EU workers in
seasonal industries key to the British
economy, such as agriculture.
“For as long as I can remember, British holidaymakers have been welcomed by British chalet girls, sailing
instructors, resort reps and a whole
host of other jobs,” said Mr Garnier,
who is also the commodore of the
House of Commons Yacht Club.
Craig Mackinlay, a pro-Brexit MP,
added: “As a fellow yachtsman and RYA
member, I welcome the RYA and BASI’s
call for a seasonal workers scheme.”
MIKE ASHLEY’S Sports Direct has revived its battle with former Labour MP
Iain Wright by lodging a complaint
over his handling of a parliamentary inquiry into the retailer’s work practices.
The Daily Telegraph understands the
firm has complained to the Parliamentary Commissioner for Standards, calling into question Mr Wright’s conduct
when he was chair of the business, innovation and skills select committee.
Sports Direct has claimed Mr Wright
failed to act objectively during the 2016
inquiry because he did not fully explain a donation he received from the
Unite union, it is understood.
The union was fiercely critical of
Sports Direct’s Shirebrook warehouse
at the committee hearing, claiming
workers had to endure “Victorian”
conditions.
Sports Direct has also claimed Mr
Wright did not act with the integrity
expected of an MP, according to
sources, because he misled the company about when the committee would
inspect Shirebrook. Mr Wright disputes the claims and said he was very
proud of the committee’s work in its
investigation of Sports Direct.
Mr Wright said he had received a donation from Unite in 2015, but had
never been a member of the union, and
had declared any donations he received
at the beginning of committee hearings and in the register of members’ financial interests.
He said: “Two years after we did the
inquiry, and a year after I stood down
as an MP, I find it quite bizarre.
“I am struggling to understand what
Sports Direct hopes to gain from this
because it revisits the bad publicity for
[Mike Ashley’s] company.”
The former MP for Hartlepool said
he was “absolutely transparent” about
any donations he received, adding that
Mr Ashley had told the committee he
was happy for them to visit Shirebrook
unannounced.
He said the visit was set for a time
when most of the committee could attend, rather than when Mr Ashley was
not on site.
“I think the Sports Direct and BHS
inquiries are examples of committees
doing really good work on behalf of the
public interest,” he said. Kathryn Stone, the Parliamentary
Commissioner for Standards, assesses
complaints made against current and
former MPs, before deciding whether
to launch an inquiry. If she discovers a
serious breach, the matter is escalated
to the Committee on Standards, which
could recommend the House of Commons enforce a financial penalty or remove a Parliamentary access pass.
4
Thursday 3 May 2018 The Daily Telegraph
***
Technology Intelligence
Quest for love is Zuckerberg’s new battlefield
also pointed out that most people
would say “now that it’s out it is
business as usual”. She added: “The
power to connect may seemingly
override the power to keep one’s
‘patterns of life’ private.”
Dr Rosewarne agreed there were
“some valid apprehensions about
inviting Big Data into our bedroom”,
but noted that Facebook was “under
the covers already”.
“For most Tinder users Facebook is
the gateway, and for anyone surfing
porn without logging out of Facebook,
it’s best we recognise now that Mark
Zuckerberg is well aware of all your
kinks and perversions,” she said.
Facebook is ready to
compete with Tinder
in the relationships
market, so Chris
Graham takes an
in-depth look at how
it all might work out
G
iven that Mark
Zuckerberg launched his
social media journey
with the controversial
Facemash, it seemed only
a matter of time that the
Facebook founder would venture into
the world of online dating. His
Harvard project in 2003, which was a
“hot or not” game for students,
worked in a similar manner to Tinder,
with users comparing profile pictures
based on their looks.
What started out as a little fun “to
occupy my mind” on a Tuesday night
became a viral sensation, drawing
praise from some and utter outrage
from others.
In what would become a recurring
theme, Mr Zuckerberg issued an
apology at the time for “violating
people’s privacy”, and for “hurting
people’s feelings”. Fourteen years after founding
Facebook, the entrepreneur is
returning to his social media roots,
announcing on Tuesday that the social
media company will launch a
dedicated dating service. This time, however, the app will not
be superficial. The 33-year-old
billionaire’s idea is that relationships
should be formed through shared
interests and friends.
In an apparent dig at its future rival
Tinder, Mr Zuckerberg said he wanted
the feature to be about building
long-term relationships and “not just
about hook-ups”.
The news sent shares in Match, the
company that owns Match.com and
Tinder, tumbling. And given the use of
Facebook by its rivals, you can see
why. Tinder’s reliance on Facebook
was exposed last month when Mr
Zuckerberg’s company tweaked its
privacy settings amid the Cambridge
Analytica scandal.
The change sparked panic among
Tinder users, many of whom log
into their dating app account via
their Facebook profile. Nor is
Facebook used only for logging-in
purposes. When people sign up to
dating apps such as Tinder, they can
Among the concerns that have been
raised over the prospect of a Facebook
dating service is the potential for
further harassment.
It already struggles to deal with
bullying and harassment on the
platform and there are fears the
addition of a dating feature could
make the problem worse.
Could potential or rejected partners
send unsolicited nude photos to a
user’s Facebook Messenger or target
their regular account?
“Facebook already recognises it has
a problem regarding bullying and
harassment on the site: expanding
into dating certainly might exacerbate
this,” Dr Rosewarne said.
However, she pointed out that
female users in particular already
experience this problem on other
dating platforms and that Facebook
might be better equipped to deal with
the scourge. “With Facebook under
such close scrutiny at the moment,
moving into dating might see [them]
become more proactive than they
[already] are,” she added.
AFP/GETTY IMAGES
Should dating app rivals
such as Tinder be worried?
Fears of more harassment
Appy bunny: Facebook CEO Mark Zuckerberg on-screen at the annual F8 summit in San Jose, in which he announced the social network would include a dating feature
immediately import photos from
Facebook, and use it to automatically
fill in details for their personal
profile – such as where they live,
work, or went to school.
Tinder users can even see when a
potential match has friends in
common with them on Facebook. Already having all this information
seems to give the social media giant a
significant advantage over its
matchmaking rivals. And the fact that Facebook’s
offering will likely be free – as
opposed to most dating apps that
make money by charging users for
premium services – rivals will face a
touch challenge in trying to compete.
“There is a high likelihood that
Facebook will become a central player
in online dating,” Dr Lauren
Rosewarne, a social media expert at
the University of Melbourne, told The
Daily Telegraph.
“I think that there will always be
people who seek out other forums for
more specific searches, but with
Facebook as the most popular social
media site, its sheer volume of users
will make it an obvious choice.”
Professor Katina Michael, a privacy
expert at the University of Wollongong,
agreed that Facebook’s potential was
“humungous”, given it has more than
1.2 billion active users. But she also
noted that Tinder, which has about
50 million active users, might well be
able to hold its own because “people
who use online data services usually
enlist to more than one”. Will privacy concerns put
people off?
Facebook will have to overcome
ongoing privacy concerns. The social
media giant last month admitted that
up to 87 million users may have had
their data hijacked in the Cambridge
Analytica scandal which resulted in
Mr Zuckerberg being grilled at length
by the US Congress.
The Facebook chief executive said
the dating tool was built from the
ground up with privacy and safety
very much in mind.
But that may not be enough to
convince those who deleted, or
considered deleting, their accounts
amid the furore.
“We are already seeing a chilling
effect take place when Facebook is
mentioned in conversation,” Professor
Michael said.
“The CA scandal has meant that
some people have deleted their
Facebook accounts.” However, she
Is it even necessary?
Mr Zuckerberg said many people
already find love via Facebook, which
begs the question: do they really need
a separate dating service? Dr Rosewarne said the move was
aimed at “recapturing – and
retaining – that elusive youth
market” after the #DeleteFacebook
movement showed that the firm
couldn’t be complacent.
“Changing social mores around
dating and sex, evolving attitudes
around the use of technology to find
intimacy, and the social reality that
we’re increasingly less likely to be
joiners … [mean] the time is right for
Facebook to enter the love
business,” she said.
“Doing so can address flailing site
use, keep people in the platform’s
orbit a little longer and potentially
expand user customer base.”
Data watchdog labels Facebook
and Google ‘digital sweatshops’
By Margi Murphy
THE European Union’s data watchdog has likened Google and Facebook
to “digital sweat factories” where no
one is allowed to clock out.
Giovanni Buttarelli, European Data
Protection Supervisor, made the criticism in reference to the way internet
companies depend on constantly farming people’s personal data. Mr Buttarelli said: “The digital information
ecosystem farms people for their attention, ideas and data in exchange for so
called ‘free’ services. Unlike their analogue equivalents, these sweatshops of
the connected world extract more than
one’s labour, and while clocking into
the online factory is effortless, it is often impossible to clock off.”
Mr Buttarelli used the example of
the Cambridge Analytica data furore,
in which the personal data of 87 million
Facebook users was harvested for the
purpose of targeting them with political adverts. In response to claims that
Facebook and Google’s dominance
would benefit from strict new data
laws, he said: “The most recent scandal
has served to expose a broken and unbalanced ecosystem reliant on unscrupulous personal data collection and
micro-targeting for whatever purposes
promise to generate clicks and revenues.”
He also issued a warning for companies hoping to get around incoming
European data protection law and
“game the system” to avoid fines.
When the General Data Protection
Regulation comes in on May 25, Facebook faces a maximum fine of $1.1bn
(£777m) if found in breach of the law.
Europeans will be forced to read the
privacy policy of the apps they use for
them to continue to work, including
Instagram, Facebook and Twitter.
Companies whose business model
depends on tracking will ask their customers to say whether they agree to the
use of sensitive data and data from outside sources. If they do not accept, they
will not be able to use the service.
European politicians are worried
VR app takes music lovers to
concerts all over the world
By Matthew Field
MUSIC lovers can immerse themselves
in virtual reality concerts on demand
with a new app aiming to be the iTunes
or Spotify of VR music developed for
Facebook’s new Oculus headset.
Melody VR, an app from the British
company EVR Holdings, allows users
to jump into live concerts and enjoy the
music as if they were there.
The app, available on Facebook’s
350m
The number of users that EVR, the
licensed virtual reality music company,
expects to be immersed in VR by 2021
Oculus Go headset, allows users to pay
to download concert experiences,
which they can view in VR and even
move their listening experience
through “Jump Spots” from the audience, to the front row, or on to the
stage. Melody VR’s first artists include
Niall Horan, the Chainsmokers and
Rag‘n’Bone Man, with the company
claiming the view points available
through VR would offer “better than
the best seats in the house”.
Through the VR headset, users will
be able to watch concerts from around
the world. Most of the acts on Melody
VR cost £9.99 to download.
The launch of Melody VR’s app came
as Facebook revealed its new Oculus
Go, a VR headset billed by Facebook
chief executive Mark Zuckerberg as
“the easiest way to get into VR”.
Anthony Matchett, chief executive
of EVR, said the product had taken
“years of research” and would provide
a “step-change as we transition from a
pre-revenue business, to a revenue
generative, global music company”.
EVR is so far the only licensed virtual reality music company.
It said it expects the number of users
immersed in VR to keep growing,
reaching 350 million by 2021.
EVR, which is listed on London’s
AIM secondary market, reported it had
raised an additional £20m this week
ahead of the launch with Facebook.
The company said it had raised a total
of $70m (£51m) to date.
this goes against the spirit of the law.
Mr Buttarelli warned these “manipulative approaches” must change and suggested some companies would need to
make changes to satisfy the new data
rules, which state that consent cannot
be freely given if services are made
conditional on processing personal
data not necessary for the performance
of the app – something that could overhaul current “freemium” models in
which customers’ data is their fee.
This could be why Facebook last
night said it will allow users to delete
the browser history it stores when the
person leaves the app, and can opt out
of web tracking altogether. There are
also people that Facebook tracks who
do not even own a Facebook account
and so would be unable to clear this
browsing history, unless they sign up
to the service. “Brilliant lawyers will
always be able to fashion ingenious arguments to justify almost any practice,”
Mr Buttarelli warned. “But with personal data processing we need to move
to a different model.”
Sage culls 30 senior
executives after sales
growth slowdown
By James Titcomb
SAGE has dismissed 30 executives in a
cull of its senior ranks following a damaging slowdown in sales.
Stephen Kelly, the chief executive of
Britain’s biggest software group, announced the changes as part of an overhaul of its sales operation.
Last month, Sage disclosed that sales
had grown slower than expected in the
six months to the end of March, sending shares down 8pc.
The accounting software provider
blamed slow sales in the UK on an inefficient sales operation, and said it had
made changes, including 30 directors
and vice-presidents leaving.
Under Mr Kelly Sage has switched
from selling individual copies of its
software to a subscription model.
“There are a lot of pointers to validate the strategy,” he said. “These [issues] are very isolated. The pace of that
migration has gone more slowly than
we would have liked.”
Sage’s half-year profits fell by 5pc to
£171m, a drop largely due to financing
costs. Revenues grew by 7pc to £899m.
Shares rose 0.2pc.
The Daily Telegraph Thursday 3 May 2018
***
5
Business
‘Staggering’ gulf
in perception of
problems at TSB
exposed by MPs
Bosses won’t put timescale
on ending ‘shambles’ as
CEO surrenders £2m
bonus, writes Iain Withers
J
ust when you thought the
reputational damage wrought
by TSB’s ongoing IT meltdown
couldn’t get any worse for the
bank, its top bosses put in a
car crash performance at a
grilling by MPs on the Treasury
select committee.
The British bank’s chief executive
Paul Pester, its chairman Richard
Meddings, and the chief operating
officer of the lender’s Spanish parent
Sabadell, Miquel Montes, were all
quick to apologise for outages to
online banking services.
But MPs were dismayed at the trio’s
lack of contrition, and exasperated as
they pleaded ignorance to a wide
range of problems reported by their
constituents and by other customers
on social media and to the press.
As Ms Morgan summed up at the
end of the almost two-hour session, it
was “the most staggering example of a
chief executive being unwilling to see
the scale of the problem being faced”.
It’s not hard to see why. With
customers still complaining about
being unable to access their own
money almost a fortnight after a
botched IT system switch, it was a tad
premature for Mr Pester to say he was
confident customers would soon be
switching from rivals to TSB – rather
than away from it in droves.
In a cringeworthy exchange –
shortly after Mr Pester insisted online
banking access was now working “as
£2m. However, he may still get a
bonus. He said the IT meltdown was
“one of the factors we’ll be taking into
account” when deciding on his
compensation at the end of the year.
TSB won’t rule out taking
Sabadell to court
TSB has drafted in “magic circle” law
firm Slaughter & May to conduct an
independent probe into what went
wrong and this could be a precursor to
a lawsuit. Sabadell’s Mr Montes was
keen to rule this out, saying “for sure
no”. But TSB chairman Mr Meddings
was not so sure. “Depending on the
legal review and its outcomes we will
act on that,” he said.
The bank regrets pushing
the migration through
you’d expect” – he was informed two
members of the Treasury committee
were testing his assertion there and
then and failing to get in.
“It’s nice to know we have so many
customers in the room,” he said
jovially. “Thank you very much for
using TSB.” Ms Morgan replied drily
that they may not be customers for
much longer.
It was a rough ride for the bank
bosses – but what did we learn from
the exchanges?
Ms Morgan asked the bosses if they
would repeat their decision made at
1pm on Sunday April 22 to go live with
the switch if they knew what they
know now. They all said “no”. Mr
Pester added: “If I had a time machine
I would take myself back to one
minute before and I would change the
decision. If there is one decision in my
life that I could change it was the
decision to go ahead with the
migration. Clearly that was a terrible
decision for our bank, for our
customers and for me personally. Of
course I would change it.”
TSB has been inundated with
40,000 complaints so far
Mr Pester said TSB had received
40,000 complaints, of which it had
responded to almost 25,000. It would
normally receive 3,000 over the same
period. He said the average wait time
for customers trying to get through to
its helpline was 30 minutes, although
the MPs cited examples of constituents
waiting hours. Mr Pester urged
customers to contact TSB directly with
any problems, rather than “shouting
into the void” on social media. This
provoked a sharp response from Ms
Morgan, who reminded him TSB set
its stall out to be a “digital bank”.
TSB doesn’t know when the
problems will be fixed
John Mann, the Labour MP, repeatedly
asked the bank bosses when “this
shambles will be over”. None of the
trio could give him a definitive answer.
“We are working as hard and fast as we
can, but I can’t give you a deadline,”
said Mr Meddings. “The wrong thing
to do would be to give a date because
that could be misleading.” Sabadell’s
TSB thinks it knows where
the gremlins are
Paul Pester, the TSB chief executive, said if he knew last Sunday what he knows now, he would not have gone ahead with the migration
Mr Montes was asked if it would be
fixed within days, rather than weeks.
“Hopefully yes,” he replied.
There is a gulf between TSB’s
perception of the problems and
everyone else’s
Since the start of this crisis TSB has
been accused of ignoring the full scale
of the problems. The bank has
repeatedly insisted the issues are
largely limited to capacity problems
for its website and mobile app. Last
week it said online banking – used by
1.9m of its 5.2m customers – was
working at 50pc. But yesterday Mr
Pester said it was now working “as
you’d expect” at a log-in success rate
of 95pc, to the astonishment of the
MPs. He said he “didn’t recognise the
situation” of wider outages and
claimed no group of customers should
have been locked out for the entire
period. MPs raised five of their
constituents’ cases yesterday,
including small businesses locked out
of accounts and a pensioner who
couldn’t access her money and was
concerned about having her gas cut
off – all of which surprised Mr Pester.
Other problems reported have
included debit cards and standing
orders failing, temporarily getting
access to other people’s accounts,
incorrect overdrafts and mortgages
disappearing – only some of which
TSB acknowledged.
CEO Paul Pester gave up part of
his bonus worth £2m
TSB’s chairman Mr Meddings
confirmed his CEO would not be
getting his “integration bonus” worth
Mr Pester said when asked what
exactly had gone wrong, and whether
IBM – who were drafted in last week
– had worked it out yet, he blamed
so-called “middleware” provided by
Sabadell. This sits between the
underlying banking system – which he
insisted was running “smoothly” – and
the layer used by customers and
branch staff. “There is an accessibility
problem but that doesn’t mean it’s a
simple problem to fix,” he said. “We
have experts from all around the world
to get to the bottom of this.”
Customers in difficulty are
being compensated
Mr Pester said TSB is compensating
customers who have been put in
financial difficulty, including
searching for cases on social media,
and some have already received cash.
MPs said TSB needed to move faster.
‘Beast from the East’ blasts through Direct Line’s budget as gross premiums rise 5pc
By Lucy Burton
THE cold snap that brought freezing
temperatures to Europe earlier this
year has eaten up almost all of insurer
Direct Line’s yearly budget for
weather claims.
The so-called “Beast from the East”,
which dumped thick snow across
Britain in late February and early
March, has landed Direct Line with
around £50m in weather claims –
just below its £55m target for the
whole of 2018.
“The freezing weather earlier this Claims to Direct Line as a result of the
year hit many drivers, households and Arctic weather in February and March. It
businesses hard,” said chief executive had set aside £55m for the whole year
Paul Geddes.
“We estimate the claims associated
with the major freeze event will utilise
£50m
Paddy Power profits hit by lucky
punters and £5m hike in taxes
By Bradley Gerrard
UNFAVOURABLE sporting results and
tax rises have taken their toll on bookmaker Paddy Power Betfair, even as it
attempted to woo shareholders with a
£500m share buyback.
Customer friendly results, that saw
the bookie pay out on more bets in
March, and £5m in higher taxes in the
UK and Australia, combined to knock
operating profits 9pc to £80m for the
first three months of 2018. Sales fell 2pc
to £408m but were flat on a constant
currency basis.
Peter Jackson, the chief executive,
said without the costs and start-up
losses from its ventures in the US, the
company’s profits would have been flat.
But neither Mr Jackson’s remarks,
nor the share buyback, which still
leaves it with £330m net cash, were
enough to prevent shares dropping.
Mr Jackson said the company had
moved the previously separate entities
Paddy Power and Betfair on to the same
technology
system,
which
had
improved its online products. The
change boosted revenue from its
casino-based products and it enjoyed a
“significant uplift” in its Cash Out tool,
which enables punters to call in their
bet before a match has finished.
This project of putting the two companies on to the same system has dominated the group’s time in the past
Peter Jackson, chief
executive, revealed
plans for Paddy
Power to compete
more aggressively in
Australia
couple of years since their merger in
2015. As a result, it has fallen behind its
rivals in terms of developing new
games and gadgets for its customers.
Last month, Mr Jackson said he had
earmarked an additional £20m for
marketing in 2018 than had been originally planned to encourage customers
to stick with the company after its pace
of product development slowed. Mr
Jackson said the company would “compete more aggressively” in Australia,
where new taxes are set to make it
more expensive for smaller operators.
The prospective levies have contributed to the exit of William Hill, which
sold its Australian business to The
Stars Group.
He added the company was in a good
position should the regulatory ban on
sports betting in the US be lifted. The
country’s Supreme Court is deciding
whether to repeal the Paspa Act and is
understood to be making a ruling by
the end of June.
Mr Jackson said sales in the US rose
by 23pc, with sports revenue from its
TVG horse racing betting business up
nearly a quarter and gaming revenue
up 19pc. Its recent acquisition of fantasy sports betting website Draft also
contributed to the strong sales performance, he added.
The company said it expected full
year earnings before interest, taxes, depreciation and amortisation of between
£470m and £495m for 2018, meaning it
should beat 2017’s £473m figure.
Retirement put on
hold for Mobius as
he sets up new fund
By Lucy Burton and James
Connington
Bending the rules Morrisons is selling wonky Yorkshire
rhubarb at about half the price of the usual version. Until
now, up to 40pc of a farmer’s crop may have been rejected.
FUNDS guru Mark Mobius has ended
his short stint in retirement to set up
an asset manager that will apply pressure on companies with poor governance standards. The 81-year-old, who retired from US
asset manager Franklin Templeton
Investments only four months ago,
plans to raise $1bn (£730m) in the next
two to three years for his outfit Mobius
Capital Partners. He is launching the business with
former Franklin Templeton executives Carlos Hardenberg and Greg Konieczny. Mr Mobius said the trio were
not allowed to poach any talent from
the business.
The London-based company will
invest in emerging markets but with a
particular focus on firms where they
think they can improve environmental,
social or governance (ESG) standards. “I love what I’m doing, it didn’t make
sense to be really retired. I’ll still be doing some sitting on a beach somewhere
in emerging markets,” Mr Mobius said.
the group’s full annual weather
budget.” The company told customers
during the cold blast that there was
“snowone like Direct Line” to help
them battle the Arctic storms.
Direct Line, which owns the Churchill, Green Flag and Privilege brands,
also said that the end of its tie-ups with
Nationwide and Sainsbury’s saw its
home insurance partnerships drop
52pc during the quarter. However, in
total, the company’s gross insurance
premiums inched up 5pc to £769.9m
for the three months to March.
The insurer is well known for its
adverts featuring the Churchill nodding dog and Hollywood star Harvey
Keitel. It was not the only insurer to
be knocked by this winter’s extreme
conditions, which also dented high
street sales. Direct Line rival Hastings
warned late last month that its claims
would be higher than expected as the
icy and wet conditions caused more
road accidents.
“We’re now sitting here in sunshine
on the south coast, so it feels like the
Beast from the East has been tamed,”
said Hastings boss Toby van der Meer
at the time.
6
Thursday 3 May 2018 The Daily Telegraph
***
Business
Investors like the ‘skin in the
game’ concept – but does it
lead to better performance?
Questor
Trust Bargains
Richard Evans
Buying trusts whose
manager has a large
personal stake is a
popular tactic. New
data allow us to test
its usefulness
Questor
 RIT Capital
Partners: £337m
 Tetragon:
£185m
 Apax Global
Alpha: £171m
 JZ Capital
Partners: £104m
 North Atlantic
Smallers: £97m
 Scottish
Mortgage: £83m
 Riverstone
Energy: £75m
 Pershing
Square: £74m
 Manchester &
London: £56m
 New Star:
£46m
450
400
350
“SKIN in the game” – the ownership
This column has now tipped 59
by fund managers of significant stakes investment trusts as a “buy” or “hold”.
in their own portfolio, or by company
In 22 instances the manager (or
executives of shares in the company
management team collectively) has
they run – is one of Questor’s
disclosed a personal stake worth
recurring themes.
£1m or more (based on data
‘Skin
in
the
We suspect that
to April 20).
game’ trusts
managers are likely to
Five of those 22
exercise more careful
portfolios, or about 23pc,
10.8pc
stewardship of their fund
have made a loss for
(or company) when their
readers: Pershing Square
Average gain of
trusts whose
own money sits side
(which has lost 21.7pc),
managers have £1m
by side with that of the
Caledonia (4.4pc), Troy
stake or more
outside investors.
Income & Growth (4.3pc),
This column is not alone
Riverstone Energy (1.8pc)
in trusting in this “alignment of
and Ecofin Global Utilities &
interests” – but is there any evidence
Infrastructure (0.8pc).
that it leads to better returns?
The managers of Pershing Square
Every year analysts at Canaccord
own a £74.2m stake in the trust,
Genuity, the broker, compile
which proves that the skin in the
information about the ownership game concept is far from foolproof,
of stakes in investment trusts
although those managers have taken
by their managers and boards.
steps to improve performance. The
Today we cross-reference this
stake held by Riverstone Energy’s
data with the performance of
managers is of a similar size, while
Questor’s trust tips to see
Caledonia’s managers own shares
whether any useful
worth £40.6m.
trends emerge.
The manager of Troy Income &
advise readers to sell and crystallise a
gain of 57.1pc.
Other strong performances
have come from Henderson
Smaller Companies (43.5pc) and
Geiger Counter (42.5pc before our
subsequent sale).
Overall, the group of trusts whose
managers have disclosed stakes of
£1m or more has gained an average of
10.8pc since being tipped, compared
with 10.9pc for the other group.
The “skin in the game” trusts have
on average outperformed the FTSE
100 index by 7.4 percentage points,
against 7.2 for the other group.
The analysis above is hardly
exhaustive; it is based on a small
sample over a relatively short period.
But it implies that deploying your
money into trusts whose managers
have skin in the game does not lead to
better performance on average.
However, we will aim to repeat
the exercise in future, when a larger
group of trusts and longer periods
of time will be involved. Questor
believes that it is too early to abandon
the idea, which at the very least offers
reassurance to investors.
Canaccord Genuity’s view is that
“investors look for directors and
managers to have a meaningful
personal investment in the companies
that they direct or manage – we have
never met one investor who has
argued against this and we strongly
believe that skin in the game sends a
clear and powerful message to both
existing and potential investors”.
Top manager
stakes
Close: 469p
500
p
300
250
200
2013
2014
2015
2016
Growth, Francis Brooke, has a stake
worth about £3m. Martin Negre
of the Ecofin fund owns shares
worth £1.5m.
There have also been some very
strong performances from trusts
whose managers have skin in the
game. Manchester & London,
managed by Mark Sheppard, who
owns shares worth £56.2m, has
gained 54.9pc since we tipped it;
Monks, whose management team
has an £11.5m stake, has risen by
46.9pc; and Jupiter European
Opportunities, run by Alexander
Darwall, whose shares are worth
£24.3m, has returned 45.2pc. Turning
2017
Includes family
holdings
2018
to the 37 of our selections not run
by managers with large disclosed
personal stakes, five (or 14pc) have
lost money since we recommended
them. The largest loss is from
Woodford Patient Capital, whose
shares are 18.9pc below where we
tipped them as a “tentative buy”. The
other losses are in single figures. (Neil
Woodford has all his personal wealth
in his funds but there is no separate
disclosure for the trust.)
Among this group the strongest
performer has been River &
Mercantile UK Micro Cap. In this
case the manager, Philip Rodrigs,
subsequently left, prompting us to
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
Electricity +0.10%
368¾
218 Drax Group ●
1174⅜
733 Nat Grid
1554
1176½ SSE
Price (p) +/- Yld
P/E
1537
1135 Hiscox ●
1510 +18 1.9
—
1468
1095 Jardine Lloyd ●
Price (p) +/- Yld
NAV
52 week
High Low (p) Stock
Price (p) +/- Yld
P/E
161¼
-¼ 3.6
176
773
638 Informa
757¼* +9 2.7 20.0
52338 430⅜ Hammerson ●
548⅜ +1¼ 4.6
—
292¾ JPM Gbl Gth & Inc
315
+3 3.9
310
212¼
141 ITV
151½* -2½ 5.1 14.9
386½
285 Helical
381½ +7 2.3 11.2
120¼ JPM GEMI
178
147½ JPM Eur Inc
1270* +20 2.7 22.6
397⅜
542½ Lancashire Hldg ●
598½ -1½ 1.8 -22.6
143
127½
— 3.8
135
843
563 Pearson
833¾* +2⅜ 2.0 16.7
608¼
483⅝ H K Land
540½* +14⅛ 2.7
3.1
5643⅝ 3553 Brit Am Tob
244¼ Legal & General
273¼* +2¼ 5.6
102¾
94 JPM GL Conv
98
— 4.6
99
1784
1399 RELX
1561* — 2.5 19.0
1217
900¼ Land Secs
981¾ -7¾ 4.3
—
3791½ 2298 Imp Brands
1392 +9 6.6
8.8
260¼
185½ Old Mutual
786
644 JPM Indian ●
717
+7
831
4603
3873 Rightmove ●
4579 +18 1.3 29.2
34½
29¾ Local Shopp REIT
32⅛
42
Transport +0.52%
820
719 Phoenix ●
253
8.6
+1 2.8 13.1
787* -10 6.4 -22.9
462
336½ JPM Japanese ●
447
+7 1.1
486
1402
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1373
1888* -3 2.5 20.3
469
322½ JPM Japan Sm Cos
424½
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487
121¾
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86½ +1½ 6.7
1250 -15 1.8 1292
988
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101
1762
576
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1180
247 JPM US Sml
291* +1½ 0.9
292
1870
950⅛ Anglo Amer
1757⅜* +54 4.3
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140⅛
109 J Laing Infra ●
115¼* +¼ 6.1
120
1071
11⅛ Antofagasta
980¼* +21 3.8 17.5
+3 2.2
334
137.30 -0.96 3.10 1.80
1453
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1129* +34 3.5 18.9
975
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951⅜ +10⅜ 1.7
704
342
296 Jup UK Gwth IT
150.04 -1.15 3.17 1.82
5192⅛ 4403⅞ Jardine Mthsn
4467¼* +58 2.6
272⅜
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212
1845
1633¾ Keystone Inv Tr
-9.4
125
113½ Aberdeen Diversified 122
+¼ 4.6
126
652
549⅞ Law Debenture
231⅞* +2⅞ 1.8 -193.2
547
408 Aberdeen New India 457½ +3½ —
531
1590
1440 Lowland Inv
+5 1.8
Index Linked Securities
261⅞
2⅛ Melrose Ind
373.15 360.81 Treas 2½% IL 20 361.50 -0.29 2.29 0.00
2145
372.89 354.79 Treas 2½% IL 24 358.93 -0.80 1.97 0.00
88
375.00 353.40 Treas 4⅛% IL 30 357.80 -1.32 2.35 0.00
1697
274.84 263.31 Treas 2% IL 35 264.37 -1.63 1.18 0.00
565
3254
6155
-1.51
–
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.
Aerospace & defence +0.26%
52 week
High Low (p) Stock
P/E
54⅞
—
— 5.6
34.7
—
52 week
Price (p) +/- Yld
89¼
72⅛ Exxon Mobil $
76⅞
-⅛ 4.3
366¼ +1⅝ 4.8
25
10⅛ Fiat Chrysler $
22¾
+⅞
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589⅜
367¾ Royal Mail
588⅝ +3⅝ 4.0 21.4
77¾
28⅜ Foot Locker $
42⅝
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1.6
185¼ Wincanton
252 +8½ 3.7
29½
12¾ Gen Electric $
14¼
+¼ 3.4
1.4
207⅝
144¼ Home Depot $
185½ +⅞ 2.2
1.8
165⅛
129 Honeywell $
143¾
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29
19 Raven R Wts
—
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309
121
121 Raven R CnvPref
119½
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Travel & Leisure +0.32%
41
31¼ RDI REIT ●
36½
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—
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1561 +42¼ 4.6 19.2
553½
383¾ Safestore ●
542
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180⅞
130⅝ Centamin ●
155⅜ +5¾ 5.9 10.9
429⅜
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415⅝
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675
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476 +23⅜ 9.3 13.2
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837 Savills ●
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1746
1150½ Fresnillo
1280* +35 2.3 22.9
654⅜
477¼ Segro
638*
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2.8
927
761 Bankers Inv ●
872* +11 2.2
869
2220
1885 Mercantile InvTr ● 2160* +10 2.5 2405
151⅜
139⅜ Tritax Big Box ●
150
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141
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729½ GVC Hldgs ●
895* -11 3.3 -78.3
148⅜
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124¾ -1⅜ 2.7
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531¼* +3¼ 2.9 24.0
883½
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701
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744
518⅜
450 Merchants Tst
513*
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537
351¾
205 Kenmare Res
226 +16 —
17.1
842
618 Unite ●
841* +3½ 2.7
—
680⅝
549 IAG Intl Cons Air
648⅜ +7¼ 3.0
136⅞
94¼ Manpower $
97⅝ +1⅜ 1.9
4.6
1712¾ Smurfit Kappa
3098* +4 2.5 19.9
83
66¼ BlackRock Com
79¾
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792 +10 0.2
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62¾ +4⅝ —
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325
237 Urban&Civic
317
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4944
3656 Intercont Hotels
4627* +3 1.6 22.5
19½
10½ Marathon Oil $
18½
+¼ 1.1
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5090 Spirax ●
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365
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710 Murray Income
773
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1074
577¾ Polymetal ●
724⅜ +14⅝ 4.5 12.0
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97 Warehouse REIT
100
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211⅜
107⅞ Mandarin
183⅛* +8⅞ 1.2 57.0
178¾
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162⅛ -1¼ 2.5
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1205* -10 2.5 19.6
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159
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5968* +62 2.5 27.4
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840½ Workspace Gp ●
1100 -17 2.1
—
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95⅞ Marston’s ●
107¼
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66⅜
52⅞ Merck $
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4029 +114½ 5.3 11.2
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219⅞ Mitchells&But ●
278⅝ -2⅝ 1.8 18.5
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167
268
234 Pacific Assets
259½ +2 1.0
271
2000 +40 — 2320
550¾
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547⅜
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—
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237
164¼ Cairn Energy ●
229¾ +2¾ —
6.9
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Food producers -0.91%
-2 1.5 17.8
465*
2386 Ass Brit Fds
2698
154
118 Carr’s Grp
141¾* -¾ 2.9 18.4
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1720 Pantheon ●
2711
2136 Coca-Cola HBC
2453 -22 1.9 23.9
536
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529
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411⅝
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3497¾ 2625 Cranswick ●
2966 +64 1.6 22.2
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307⅛ BlackRock Wld M
388 +7½ 4.0
906
670½ Hilton Food
880
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681 Brunner
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201
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190
130⅝
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119¾ Centrica
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318⅞ Ashmore ●
413¼ +1¾ 4.0 16.5
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364¾ +⅜ 4.1 22.1
1360
1195 European Assets
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191⅛ Fidlty Chna Sp Sits ● 242½ +½ 1.0
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235
199¾ Fidelity Euro V ●
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158⅜
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267½ +3½ 1.7
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320⅞
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302¾* +6⅛ 2.0
4401
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4374 +19 1.2 29.9
338
305 F&C Cap & Inc
328½ +½ 3.3
331
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148⅝ Man Group ●
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133⅞ F&C ComProp ●
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2620
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106
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110
107
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41680
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1020
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168⅞ +1⅝ 2.2
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571⅞ Dairy Farm
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167⅜ Rank Group ●
172¾ -1¼ 4.3 10.7
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109⅛ United Tech $
119⅛ +¼ 2.3
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381¾
229¼ Restaurant Gp
307⅝
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203⅝ +1⅛ 5.5
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305⅜ Halfords ●
376⅜
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509⅜ +29⅜ 2.2 17.0
369¾
281¼ Kingfisher
290⅝ -5¾ 3.7 13.1
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102⅜
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638⅝ Aggreko ●
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2063 +35 1.4 20.5
1030
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728⅜ +5⅝ 3.9 11.8
230
145¼ BCA Marketplace ● 189⅝ +1⅜ 3.8 36.5
2472
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2157 -22 2.1 22.9
721
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197⅜ +6¼ 5.6
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219⅝ Charles Taylor
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7255 +150 1.6 29.8
457⅜* +7⅜ 4.5 10.5
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1442
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1110
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1040 +7½ 1.9 1256
486⅝
376⅛ Scot Mortgage
486 +7⅜ 0.6
468
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554⅝* -10 7.8
9.0
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1265
939⅞ Herald Inv ●
1250 +20 — 1420
177¼
155½ Sec Tst of Scot
165½ +½ 3.6
177
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1481½ HgCapital
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174
5520
4260 AstraZeneca
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182
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488½ +4½ 3.8
488
784
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679
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872
670 Homeserve ●
743½ +9 2.1 31.0
5470
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188⅞ IWG ●
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2102
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681½ Grafton Gp ●
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360¼ Marshalls ●
437⅜ +4⅝ 3.2 20.3
1520
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379⅞
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310
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2901
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673½
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211⅞
173 Taylor Wimpey
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8.9
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25
73½ InvesPerp Enhc Inc 76¼
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129 InvesPerp Bal Rk
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141
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1636 Dechra Pharma ●
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1652 Genus ●
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167½ +1 4.5
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130⅜ Highland Gold
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144¾ +⅜ 2.6 -14.3
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1324⅜ 1010 Young & Co - N/V 1220 -10 1.6 22.1
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334¼ Inmarsat ●
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2184
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103
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102
1341
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1241 +1 1.1 36.2
550
482¼ Aviva
536¼* — 5.1 15.3
935
757⅞ JPM Emerg Mkt ●
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986
192
150 Bloomsbury
176
5820
3354 Renishaw ●
4780 +22 1.1 33.8
610
437⅞ Beazley ●
604 +12 1.8 31.0
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348⅛ JPM Eur Sm Cos
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677½ +1½ 3.4
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247¼ Grainger ●
316¾ +1¾ 1.5 17.6
1342
1035 Telecom Plus ●
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* 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.
High
435
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Recent issues
243
10
-8 2.0 21.1
day’s close see www.Morningstar.co.uk.
1.7
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988
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137⅜
313¼* +1¼ 1.2
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118⅛ +1⅝ 3.0
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112⅛ Pernod Ricard €
248¾ Rentokil
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141⅞
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130⅞
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256⅜
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211⅞ LVMH €
98¾ Finsbury Food
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79⅝ Heineken €
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68
81
1285* +9½ 3.6 13.8
91⅜
131⅜
13
52 week
High Low (p) Stock
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1.9
288* +5½ 5.7 13.5
345½
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294
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754*
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82¼ Serco Group ●
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31⅛ Deutsche Post €
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123⅝
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1709
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833⅜
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Net Asset Values © 2018 Morningstar Estimated at previous
2.7
66⅝
619 Menzies J
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217¼ JPM Chinese
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62½ Danone €
146¾ MITIE Gp
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659½ JPM Claverh’se
66½
72⅛
750
60⅜
760
59 Daimler €
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313½
935
346¾
76½
1875
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56⅝ Assura ●
637⅜ +1 2.5 22.9
1515* +30 2.2 34.5
1790 BrooksMacdonald
77.3
722 Big Yellow Gp ●
116⅝* -1⅜ 2.6 33.4
1225 Arbuthnot
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67¼
1⅛ Spirent
1600
2580
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943
536¼ Sage Gp
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455
383
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226⅝ +5⅜ 2.0
19 SRT Marine Sys
2285 Worldw HealthTr ● 2470 +25 0.9 2465
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118 StatPro
304⅝ Witan Pacific
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257⅜
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2707
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1258½ -6 5.9 23.0
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137⅝* +¼ 2.0 19.7
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84⅛
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+1 1.8 20.9
+1 2.4
138¼ McBride
1.3
+⅝ 4.3
265⅜ +5⅜ 3.7 17.5
2626⅛ 2038 Royal D Shell B
836*
235
+⅛ 3.3
93⅛
233¾ G4S
352
771 Scot Invest ●
147
75
77⅛ BMW €
342⅝
-2 3.0
973½
— 5.4
71⅝ Akzo Nobel €
97½
103½
367
+4 2.1 1015
133 HICL Infrastructure ●145⅞
81¾
4250 -81 2.4 17.7
4353
5592 +36 2.0 17.9
339½ Scot American
908
Europeans +0.55%
1149 -30 1.0 22.3
4427 Ferguson
383
733½ Hend Smaller Co
—
1346⅛
5722
— 3.2
912
131⅝ +4⅞ 0.5
1698½ +47 3.4 17.6
1689
161½
687⅝ +5⅝ 1.1 22.2
175½
87¾ Thomas Cook ●
1428 Experian
151 Hend Intl Inc
495⅜ Mediclinic Int
1850 +8 2.1 28.3
135¼
1711½ 1098 TUI AG
405¼ Essentra
172
890⅛
1481½ Burberry
155⅞
588½
3622 +22 0.4 54.1
7.6
2024
124⅜ Stagecoach ●
1708
2012 NMC Health
139
87⅛ Soco Intl
1394⅜ +14⅛ —
217⅝
-¼ 5.0
3728
115 Alumasc
-1 5.7 18.7
1798⅝ 1253¾ Ryanair
2607½ +12½ 5.3 22.4
●
189⅞
161
-¾ 7.0
7.7
361
2185
52 week
+4 2.0 15.9
230
Support services +0.60%
305
201½
Retailers +0.36%
137⅛
200
136½ +½ 4.1
2402⅞ 312⅛ Provident Fin ●
181⅜ ConvaTec Grp ●
+1
307 F&C Priv Eq Ord
556
-7 2.7 50.4
349⅛
202
127 F&C Mgd I
— 2.4 24.6
266
3069 Schroders
181 F&C Mgd G
389
2606
3784
211⅜
146
2735½ 2233 Diageo
320
400¼ Paragon ●
2.8
— -12.7
410
73⅝
1018
558½ Vedanta Res ●
+1
33½
+2 2.5 1045
798⅝
—
Hummingbird
337
399⅜
— 2.0 28.3
⅜
433
780
213
404
40
222
544 Edin Worldwide
419½ Costain
2.9
1631½ +21½ 2.7 11.5
1354 Smiths Gp
820
494½
-⅝ 3.8
50½
322⅜ +18 2.2 22.4
90½
2.0
109¼ +½ 2.0
210¾ Senior ●
9.0
-⅝ 2.3
12.1
50 Intl Paper $
324⅜
+3 2.8
52¾
—
81⅝ JP Morgan Ch $
750
290*
33¼ Intel $
76⅛ FirstGroup ●
119⅜
+6 3.9
247 Boot H
55¾
154½
67
688
354
2.9
112¼ +⅝
—
9.4
608 Edinburgh Inv Tr ●
8.7
+⅜ 2.1
944
786
9.0
86⅜
1954 +15 5.2
762⅝ +7⅜ 5.1 12.0
-9 4.0
79⅝ Inger Rand $
1310 Go-Ahead Grp ●
648⅝ Utd Utilities
3336
97⅝
889¼ Fullers ‘A’
1078
4091 -17 2.7
1.0
1639 +24½ 2.5 21.2
1698⅝ 1136 easyJet
2004
836¾* -2¼ 1.4
3031 Berkeley Grp
2.7
1124
800 Rolls-Royce
2718 Bellway ●
-¼ 2.6
143⅝ -1⅜ 4.4
—
994½
4270
21⅝
139⅛ IBM $
-1 2.2 22.0
—
420
3805
17⅛ HP $
171⅛
1570
— 4.0
446
6¼ Barratt Dev
24¾
4757 +51 2.8 17.9
1765⅞ 1396½ Compass
-2 1.6
— 5.1
705½
4427 Carnival
7.4
289
429* +4½ 4.1
+½ 5.2
5435
8.0
1009
370*
Construction +0.31%
2455 +35 3.0 23.5
300 Northgate
266 Town Centre
392 City of Lon ●
2694 +62 2.0 23.1
1950 Clarkson ●
920 Shaftesbury ●
330¼ Dunedin Ent
1826 Victrex ●
3475
543½
318¾
444⅝
2772
1.4
—
7.0
1055
498
3324 +23 2.3 16.5
0.6
212¾ +3¼ 1.2 36.2
701
2681 Johnson Mat
2.5
+¼ 2.4
357⅞* +11 4.1 11.9
2008 +19 4.2 13.8
3511
-⅝ 1.9
63¼
270 Glencore
577⅜ Pennon Gp ●
4535* +47 1.8 25.1
119½
61¼ DowDuPont $
186⅛ Hochschild Mng ●
1664 Severn Trent
3612 Croda
83¼ Dr Pepper $
77⅛
337⅝
947¼
4691
126⅝
416⅞
2575
Chemicals +1.10%
1.4
242
34.3
155½ Stock Spirits
-1 2.6
326
232⅝ +1 2.6 10.8
Beverages -2.56%
64
+2 1.7
120⅛ +2
8.0
64⅝ Colgate Palm $
+2 3.4
110 Cobham ●
2477¾ 1485¼ Secure Trust Bk
1.1
77⅞
290
190¼ Qinetiq ●
… 4.7 14.6
… 3.2
241
322⅞
1545 +5 3.9 12.0
1.1
38½
270 Majedie
150¼
1315 Close Bros ●
126 +1⅛ 3.6
36⅛ Coca-Cola Euro $
222 Mtn Currie Port
+1 1.4 87.5
1715
102½ Chevron $
44¾
250
210
… 3.2 -19.9
133⅞
311
162 Chemring
205½
0.4
773
734
219
177¼ Barclays
144⅝ +¼ 2.2
1322½ +22½ — 1295
+⅜ 3.2 15.2
+¾ 3.6 22.9
220⅛
97¾ Caterpillar $
290 BBA Aviation ●
1662⅜ 1103 BHP Billiton
604
323⅜* -⅜ 3.1 37.9
2.2
173¼
370⅜
1762½ +5 3.4 1988
324
2.1
-2 6.5 17.7
P/E
327⅜ -2¼ 2.1
865 Allianz Tech Trust
77⅞
613*
Banks +0.17%
9.6
2612
Price (p) +/- Yld
175½ Boeing $
680 Alliance Trust ●
2036 +2 2.7 16.7
533½ BAE Systems
-3.6
-5 1.9 1382
3919½* +19½ 5.0
52 week
High Low (p) Stock
371⅝
774
59 Severfield
682½
—
8.9
P/E
1353½
1684 Mondi
4557½ 3678½ Unilever
Price (p) +/- Yld
—
883 JPM Small Cos
306
156.85 146.14 Treas 4¾% 38
+2.39
20
1254⅞
363.52 133.71 Treas 4¼% 36
+0.88
+½ 8.4
Investment trusts +0.85%
High Low (p) Stock
2.97
143
494½ +3 4.2
1760 -10 2.4 20.8
1.46
127 Raven R C R Prf
438½ JPM Russian
1510 Goodwin
United States
156
561¾
2128
Great Britain
—
367⅛* +4 5.8 12.3
131.59 -0.76 3.23 1.72
-2.93
-⅝
349⅜ StndrdLifeAber
139.32 105.24 Treas 4¼% 32
-2.39
-2 4.1
44½
448⅝
— 0.8 28.4
–
550
41⅜ Raven Russia
+⅛ 1.3 18.6
+1
-0.54
471 Mucklow A J
52⅝
79
610
0.04
564
1278 +10 4.7
88 JPM Mlti-Ass
1435
0.58
987½* +9½ 2.4 26.6
1003 JPM Mid Cap
103½
279 Fenner ●
Germany
639 UBM ●
1074 WPP
1270
1350 Cropper J
Japan
—
1162* +11½ 3.7 41.8
624½
-2.17
— 3.4
649⅝* -7¾ 3.0 24.7
1975
+0.22
—
265
591⅜ RSA
143.72 -0.62 4.17 1.52
0.80
187⅝ -1⅛ 4.1
672½
124.61 -0.37 4.01 1.24
France
162¼ LondonMetric ●
192¼ McKay Secs
1279½ 1051 St James Place
153.80 142.35 Treas 6% 28
T-Bonds
191¾
— 3.3 14.1
132.85 123.92 Treas 5% 25
—
289
420
93½
—
3.8
919* +12 1.9 18.0
59½ Coats Group ●
Spread vs
-7 1.0 33.8
400 Castings
90
Bunds
—
728½ Bodycote ●
121.77 -0.17 6.57 0.86
Spread vs
—
Price (p) +/- Yld
Tobaccos +0.37%
773½
1043
51 Low&Bonar
52 week
High Low (p) Stock
279⅞
490
91
52 week
High Low (p) Stock
3.7
132.43 123.14 Treas 8% 21
Yield%
P/E
-8.5
1992½ 1692 Prudential
10-year Government Bonds
Price (p) +/- Yld
-1 5.3
845
Engineering / Industrial +1.09%
Flat Rdm
Price (£) +/- Yield Yield
52 week
High Low (p) Stock
314¾* -3¾ 3.9
Government securities
52 week
High Low (£) Stock
52 week
High Low (p) Stock
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.
—
—
98
The Daily Telegraph Thursday 3 May 2018
7
**
Business
Thomas Cook flying high on upgrade
TOM REES
PORT
MARKET REPORT
Results roundup
Company
Winners and losers (pc)
Turnover (£)
Avon Rubber
Pre-tax (£)
EPS (p)
DIV (p)
Int 77.7m (78.9m)
9.4m (8.9m)
27.90 (24.70)
5.340 (4.110)
Fin – (–)
-4.0m (-3.0m)
-14.15 (-10.36)
n/a (n/a)
Indivior $
1Q 255.0m (265.0m)
111.0m (117.0m)
13.00 (11.00)
n/a (n/a)
Inmarsat $
1Q 345.4m (329.5m)
56.0m (1.3m)
12.00 (-1.00)
n/a (n/a)
Fin 2.5m (2.0m)
-2.5m (-3.7m)
-0.61 (-1.39)
n/a (n/a)
EPE Special Opportunities
THOMAS Cook shares were flying
high on the FTSE 250 after City
analysts predicted “clearer skies
ahead” for the travel firm following
the collapse of rivals and its foray
into hotels.
The company’s shares have been
stuck at the same altitude for nine
months despite it bagging pivotal hotel
deals, and three rivals being downed
in the price dogfight taking place in
the skies over Europe.
As part of Thomas Cook’s push for
increased hotel ownership, the
company has created a £150m fund to
finance its hotel expansion, and struck
partnership deals with US travel giant
Expedia and Swiss firm LME. But
investors are yet to buy into the plan.
Credit Suisse analysts argued in an
upgrade to “outperform” that its share
price should be on the climb “given
the significance of these internally
driven deals and external events”. It
told clients a recovery in its German
airline Condor, following Air Berlin’s
bankruptcy, could bolster profits, and
its outlook has been improved by
“key” partnership deals, lifting
Thomas Cook shares 4.9p to 131.6p.
US tech giant Apple dispelling
doubts over sales of its new iPhone
Mobile Tornado Group
Realm Therapeutics
Sage Group
Pay
2.97
Ç AIM
1.39
Ç Chemicals
Fin 1.1m (867k)
-10.6m (-7.3m)
-16.00 (-15.00)
n/a (n/a)
171.0m (180.0m)
12.50 (12.57)
5.650 (5.220)
Jun
Fin 31.4m (28.4m)
2.2m (1.3m)
109.73 (59.34)
7.100 (6.400)
May
Fin – (–)
-6.0m (-3.6m)
-0.04 (-0.04)
n/a (n/a)
Tri-Star Resources
Ç Mining
Sep
Int 899.0m (840.0m)
TF & JH Braime [Holdings]
BUSINESS BULLETIN
1.1
Ç Engineering / Industrial
1.09
Ç General financial
0.88
Ç Investment trusts
0.85
Ç Gas & Water
0.84
Ç Healthcare
0.77
Ç Telecommunications
0.61
www.theice.com/data
models boosted British suppliers IQE
and Dialog Semiconductor.
Unnerving reports from Asian
suppliers over softening demand had
stoked concerns that its pricey iPhone
X had flopped with shoppers.
After iPhone sales rose to 52.2m,
Welsh chipmaker IQE, which provides
technology for the flagship model’s
facial recognition sensors, leapt 5.8p to
109.3p, while Reading-headquartered
Dialog gained €1.67 to €19.28.
However, Dialog’s rally yesterday
barely dented its share price slump
since December when it admitted that
Apple has the capability of dumping it
as a supplier amid reports that the
Silicon Valley firm has been poaching
its staff.
Satellite operator Inmarsat rallied
to the top of the FTSE 250, surging
29.4p to 391.2p, after the troubled firm
reported strong growth in its aviation
arm. Following a 56pc share price
tumble in the last year, investors were
in no mood to hand out bumper pay
packets for its executives with almost
60pc of shareholders voting down a
bonus package.
Aim-listed Horizon Discovery
skyrocketed after life sciences
company Abcam admitted that it had
recently had a £270m takeover bid
rejected by the gene editing minnow.
With the two companies now having
“constructive dialogue” over a tie-up,
expectations that Abcam would return
for a second swoop sent Horizon’s
shares soaring past the 181p per share
offer, with the company climbing 46p
to 190p.
Mining stocks rallying on stronger
metal prices helped the FTSE 100
extend its winning streak to fifth day.
The index closed 22.84 points higher
to 7,543.2, a fresh three-month high.
Ç Support services
0.6
Ç Europeans
0.55
Ç Transport
0.52
È Property
-0.01
È Information technology
-0.15
È Pharmaceuticals
-0.28
È Americans
-0.29
È Food producers
-0.91
È Beverages
-2.56
Appeal for Deliveroo
ruling review rejected
Phoenix chairman to
leave ahead of major deal
The High Court has rejected an
application for a judicial review of an
earlier ruling which found Deliveroo
couriers should not be classed as
workers, stressing that they can send a
replacement driver to perform a
delivery. The decision to classify the
couriers as self-employed has meant
that they are not entitled to holiday pay
or the National Living Wage.
Insurer Phoenix said its chairman
Henry Staunton will step down from
the post when a successor has been
found, as his three-year term ends on
August 31. News that he is leaving the
group comes just months after Phoenix
announced it was buying the majority
of larger rival Standard Life Aberdeen’s
insurance business for £3.2bn, in a deal
which will see Phoenix double in size.
Deripaska’s En+ gets
last-minute reprieve
Ex-Barclays banker to
oversee £755m handout
The London Stock Exchange has given
Russian firm En+ a last-minute reprieve,
after warning earlier this week trading
would be halted on Wednesday. LSE
said Oleg Deripaska had until June to
reduce his stake in the group below
50pc, after the US Treasury gave him
more time to cede control of En+,
allowing it to escape sanctions.
Former Barclays banker Godfrey
Cromwell has been formerly appointed
to oversee Royal Bank of Scotland’s
distribution of £775m to boost
competition in the banking sector. RBS
is stumping up the funds after it
abandoned an earlier plan to carve out
Williams & Glyn to satisfy European
competition concerns.
IWG shares tumble as
One in ten Rio investors
mature offices disappoint vote against pay report
Office space provider IWG said revenue
from its “mature” offices slipped 3.6pc
in the first quarter, dragging shares
down yesterday, to close 4.1pc lower at
234p. Across the group, revenue was up
0.6pc in the period and IWG said
underlying trading was improving. It
expects to spend 11pc more in capital
expenditure this year than last.
Around one in ten shareholders voting
at Rio Tinto’s annual general meeting
rejected the miner’s pay report, after
investor advisory firm Glass Lewis
recommended they vote against the
proposal. Almost 53m shareholders cast
votes against the report, equal to just
under 10pc of those voting. Glass Lewis
had criticised senior bosses’ bonuses.
Market data
Unit trusts & open-ended investment companies prices www.telegraph.co.uk/funds
World market indices
Name
Index
Init chge
Mid
Sell
Change
Buy on day
Change
Mid
Change
Buy on day
Mid
Change
Buy on day
Mid
Change
Buy on day
Mid
Change
Buy on day
Discretionary Unit Fund
Multi-Mgr Inc&Gwth A Acc
5.00
176.8000
-0.20
JPM Global Uncons Eq A Acc 3.00
1331.0000
+7.0000
Jupiter Emerg Euro Opps
–
206.65
+0.07
M&G Episode Growth A Inc
4.00
*61.25
+0.11
Multi-Mgr Inc&Gwth A Inc
5.25
154.7000
-0.10
JPM Global Uncons Eq A Inc 3.00
98.8600
+0.5100
Jupiter European
–
2207.84
+32.87
M&G Episode Income A Inc
4.00
*129.74
-0.12
Multi-Mgr Mangd A Acc†
5.00
*280.0000
+1.00
JPM Japan A Acc
3.00
470.9000
+3.1000
Jupiter Euro Inc Acc
–
82.13
+0.82
M&G Episode Income A Acc
4.00
*171.05
-0.16
Multi-Mgr Mangd A Inc†
5.00
*272.8000
+1.00
JPM Japan A Inc
3.00
113.4000
+0.8000
Jupiter Euro Inc Inc
–
56.35
+0.57
M&G Global Dividend A Inc
4.00
*203.98
+0.94
Name
Init chge
Sell
Mid
Change
Buy on day
All Ordinaries
6136.70
+36.70
+0.60pc
No 1, Poultry, London EC2R 8JR. 020 7415 4130
È Brazil
Bovespa
84547.08
-1568.42
-1.82pc
Maitland Discretionary Inc
È China
Shanghai Composite
3081.18
-1.05
-0.03pc
CAC General
5529.22
+8.72
+0.16pc
DAX
12802.25
+190.14
+1.51pc
Hang Seng
30723.88
-84.57
-0.27pc
Ç Australia
Ç France
Ç Germany
È Hong Kong
È India
S&P CNX500
9444.50
-52.00
-0.55pc
È Japan
Nikkei
22472.78
-35.25
-0.16pc
È Russia
RTS
1136.56
-17.40
-1.51pc
AXA Investment Managers UK
Limited
7 Newgate Street, London, EC1A 7NX
www.axaframlington.com Cust Svs: 0845 777 5511
Straits Times
3615.28
+1.35
+0.04pc
Amer Gwth Acc
5.25
599.2
+4.80
Ç Spain
Madrid SE
1022.78
+10.21
+1.01pc
5.50
171.3
+1.50
Ç Switzerland
Biotech Acc
SMI Index
8896.28
+10.02
+0.11pc
È USA
Dow Jones
23924.98
-174.07
-0.72pc
È USA
Nasdaq
7100.90
-29.81
-0.42pc
Ç Singapore
Commodities summary
Price
È Gold
per troy oz
Ç Silver
Change
-0.20
-0.02pc
£12.04
+0.15
+1.26pc
£949.33
-13.52
-1.40pc
$1304.20
per oz
È Krugerrand
Emerg Mkts Acc
5.25
272.9
+0.20
European Acc
5.25
901.7
+6.50
Unit Trust
Financial Acc
5.25
*682.2
+1.00
Global Opp Acc
5.25
*1427.0
+12.00
Global Opp Inc
5.25
*1259.0
+10.00
Global Tech
5.25
109.4
+1.40
Health Acc
5.50
*1801.0
+17.00
È New Sovereign
£220.60
-1.54
-0.69pc
Japan Acc
5.25
605.0
+3.30
£949.33
-8.74
-0.91pc
Managed Balanced Acc
5.25
392.9
+1.10
È Tin
Moneybuilder Bal
–
49.49
-0.10
Moneybuilder Inc
–
36.45
-0.06
+0.40
5.00
158.4000
+0.10
JPM Multi-Man Gwth A Acc
3.00
1009.0000
+6.0000
Jupiter Global Emg Acc
–
71.59
…
M&G Glbl High Yld Bd A Inc
3.00
*49.94
-0.03
UK Alpha A Acc†
5.25
155.0000
+0.60
JPM Multi-Man Gwth A Inc
3.00
923.1000
+5.1000
Jupiter Global Eq Inc Acc
–
71.37
+0.23
M&G Glbl High Yld Bd A Acc
3.00
*131.23
-0.07
UK & Irish Small Co A Acc
5.00
675.1000
+1.10
JPM Natural Res A Acc
3.00
631.0000
+3.7000
Jupiter Global Eq Inc Inc
–
62.48
+0.20
M&G Global Macro Bd A Inc
3.00
*82.47
+0.06
+0.09
UK Equity Income A Inc
5.00
*646.1000
+1.10
JPM Natural Res A Inc
3.00
44.2200
+0.2600
Jupiter Global Managed Acc
–
233.15
+1.28
M&G Global Macro Bd A Acc
3.00
*125.39
UK Index A Acc
–
636.2000
+0.80
JPM Sterling Corp Bd A Grs Acc 3.00
*92.5200
-0.3200
Jupiter Global Managed Inc
–
224.10
+1.23
M&G Global Themes A Inc
4.00
882.67
+5.8
UK Tracker A Acc
–
285.8000
+0.30
JPM Sterling Corp Bd A Grs Inc 3.00
*55.2200
-0.1900
Jupiter Growth & Inc
–
*103.16
+0.01
M&G Global Themes A Acc
4.00
1372.16
+9.01
US Growth A Acc
5.00
1014.0000
+11.00
JPM UK Dynamic A Acc
3.00
208.4000
+0.7000
Jupiter Income
–
583.14
+1.08
M&G Managed Growth A Inc 4.00
*110.67
+0.26
JPM UK Dynamic A Inc
3.00
164.3000
+0.5000
Jupiter India Fd
–
125.51
-1.00
M&G Optimal Income A Inc
3.00
*149.52
-0.22
JPM UK Equity Core E Acc
–
*367.8000
+0.4000
Jupiter Int Financials
–
97.43
+0.60
M&G Optimal Income A Acc
3.00
*211.28
Jupiter Japan Inc Fd Acc
–
118.24
-0.30
M&G Property Portfolio A Inc
Growth & Income Funds
J.P. Morgan Asset Management
60 Victoria Embankment, London, EC4Y 0JP
Clients:0800 204020.Brokerline 0800 727770
JPM America Eq A Acc
3.00
£ > € Rate 1.1374 Change +0.35¢ £ > $ Rate 1.3599 Change +0.04¢
Tourist £1= Sterling £1=
1 Euro =
Pan Euro HY Bond Inc
5.25
32.33
+0.01
Pan Euro HY Bond Acc
5.25
104.9
+0.10
1 Dollar =
+0.01
3.00
1110.0000
+1.0000
Jupiter Merlin Bal Prtfo Inc
–
128.53
+0.35
M&G Strategic Corp Bd A Inc 3.00
75.34
577.8000
+0.5000
Jupiter Merlin Conserv Prtfo Acc–
58.07
…
M&G Strategic Corp Bd A Acc 3.00
116.52
-0.32
JPM UK Sm Cos A Acc
3.00
496.8000
+0.2000
Jupiter Merlin Conserv Prtfo Inc–
50.22
…
M&G UK Inc Distribution A Inc 4.00
799.01
-0.49
JPM UK Sm Cos A Inc
3.00
94.8500
+0.0500
Jupiter Merlin Grth Prtfo Acc –
407.39
+1.39
M&G UK Inc Distribution A Acc 4.00
7269.55
-4.5
89.2600
+0.5800
JPM UK Strat Eq Inc A Acc
3.00
*193.6000
+0.2000
Jupiter Merlin Grth Prtfo Inc –
395.93
+1.36
M&G UK Infl Lkd Corp A Inc
3.00
*114.92
-0.14
JPM America Eq A Inc
3.00
89.2500
+0.5800
JPM UK Strat Eq Inc A Inc
3.00
*113.9000
+0.1000
Jupiter Merlin Inc Prtfo Acc
–
*298.23
+0.21
M&G UK Infl Lkd Corp A Acc 3.00
*118.55
-0.14
JPM Asia Growth A Acc
3.00
210.9000
+0.2000
JPM Uncons Bond A Acc
3.00
*72.0100
-0.0200
Jupiter Merlin Inc Prtfo Inc
–
*134.00
+0.09
N.A.A.C.I.F. Inc
–
*86.41
-0.75
–
*8591.9
+4.81
3.50
257.0
-0.4
JPM Asia Growth A Inc
3.00
116.3000
+0.1000
JPM Uncons Bond A Inc
3.00
*56.6300
-0.0200
Jupiter Merlin WW Prtfo Acc –
291.51
+1.19
N.A.A.C.I.F. Acc
–
79.91
+0.34
JPM Div Gth A Net ACC
3.00
*261.2000
+0.1000
JPM US A Acc
3.00
*1036.0000
…
Jupiter Merlin WW Prtfo Inc –
291.49
+1.18
†CAR - Net Income reinvested.
Jupiter Monthly Inc Acc
–
*117.35
+0.25
Jupiter Monthly Inc Inc
–
*31.12
+0.07
Jupiter N.American Inc Acc
–
148.59
+0.75
Jupiter N.American Inc Inc
+0.63
3748
117.38
3.00
Moneybldr Gwth
3.50
117.38
JPM UK Higher Inc A Acc
Moneybldr Div
American
–
JPM UK Higher Inc A Inc
Growth Funds
Exchange rates
-0.32
-0.21
+0.50
*310.7
-0.53
UK Absolute Return A Acc
+0.7
+1.10
5.25
290.16
+1.63
309.0
AXA IM Funds www.axa-im.co.uk
M&G Glbl Emrgng Mkts A Acc 4.00
144.7
*630.1
UK Smllr Cos Acc
+1.44
338.48
5.25
+0.31pc
*256.65
4.00
5.25
+0.23
–
4.00
UK Growth Acc
$73.36
Jupiter Fund Of Inv Trusts
M&G Recovery A Acc
Monthly Inc Acc
*Copyright Baltic Exchange Information Services Ltd.
…
M&G Recovery A Inc
-0.03
Jul settlement
Ç Brent Crude
*64.8000
-0.23
27.56
+2.00
JPM Multi-Asset Inc A Mth Inc 3.00
+0.49
3.50
+1.00
-0.20
92.59
Extra Income Fd
*3577.0
*122.4000
183.98
+0.50
*1950.0
4.00
–
*259.8
5.25
-0.49
Strategic Bond A Inc
–
5.25
5.25
+1.28
268.04
Jupiter Japan Inc Fd Inc
Monthly Inc Inc
UK Select Opps R Inc
*280.19
Jupiter Merlin Bal Prtfo Acc
-0.43pc
UK Select Opps R Acc
4.00
M&G Glbl Emrgng Mkts A Inc 4.00
+0.2000
-67.08
-0.14pc
M&G Global Dividend A Acc
+3.13
+0.2000
£15504.82
-0.20
+3.97
*624.02
131.0000
high grade
£143.55
421.78
–
146.1000
-0.2
per tonne
–
Jupiter Fin Opp
3.00
108.7
+1.31pc
Jupiter Euro Special Sits
…
3.00
3.50
+1.43pc
…
*64.8300
JPM UK Equity Gwth A Inc
Enhanced Inc Fd
+19.00
*95.0200
JPM Multi-Asset Income A Inc 3.00
JPM UK Equity Gwth A Acc
-0.10
+133.06
JPM Multi-Asset Income A Acc 3.00
…
…
-0.70
1346.00
…
4.25 *64.6300 67.4100
100.36
*142.0
£10269.14
4.25 *219.8300 229.3200
Sterling Bond Inc†
–
*994.8
Ç Nickel
Sell
Sterling Bond Acc†
Income Funds
5.25
Ç Baltic Dry Index*
Init chge
Cash Fd Y Accum.Units
5.25
+3.36pc
Name
+0.0800
Managed Income Inc
+55.40
Sell
*62.9500
Managed Income Acc
£1706.01
Init chge
–
+0.78pc
high grade
Name
JPM UK Equity Core E Inc
+0.27pc
-1.14pc
Sell
…
+1.77pc
-0.70pc
Init chge
100.00
+1.78
-19.25
Name
–
+12.23
-15.74
Sell
Cash Fd Y
+38.98
£1675.12
Init chge
†Available as an ISA
£704.27
£649.25
£2242.81
È Wheat
-0.2
136.7
£5012.87
special high grade
Ç Aluminium
3.50
Investment Funds (OEIC)
per oz
È Lead
È Zinc
Wealthbuilder
grade A
per oz
Ç Palladium
Ç Copper
Fidelity International
130 Tonbridge Road, Tonbridge, Kent TN11 9DZ
Call free: Private Clients 0800 414161
Broker Dealings 0800 414181
È Maples
Ç Platinum
3.00 2370.95 2522.37 +10.62
Name
+16
Natwest Investment Funds
(RBS Collective Investment Funds Ltd)
PO Box 249, York YO90 1ZY
0117 940 3848
Australia
Amer Sp Sits
3.50
1516
+5
–
123.81
Aus $
1.7159
1.8143
1.5952
1.3341
Canada
Can $
1.6610
1.7475
1.5365
1.2851
European
3.50
2268
+17
Jupiter Responsible Inc Fd Acc –
*116.87
-0.04
Balanced Inc
5.00
*328.90
Denmark
Krone
8.0305
8.4724
7.4490
6.2301
European Opps
3.50
520.1
+3.5
Jupiter Responsible Inc Fd Inc –
*74.15
-0.02
Balanced Acc
5.00
*422.00
…
Global Special Sits
3.50
3870
+22
Jupiter Strategic Bond Acc
–
*97.37
-0.15
Equity Income
5.00
*349.80
…
Japan
3.50
368.4
+0.7
Jupiter Strategic Bond Inc
–
*63.95
-0.11
Extra Income
5.00
*108.60
…
Japan Smaller Cos
3.50
321.8
+0.6
Jupiter Strategic Res Acc
–
53.52
-0.13
Growth
5.00
*392.70
…
Global Focus
3.50
1951
+8
Jupiter Strategic Res Inc
–
52.10
-0.12
High Yield
5.00
*126.60
…
109.3500
+0.1300
Jupiter UK Growth
–
340.53
+1.94
Intntl Growth
5.00
*499.60
…
4065
+13
Jupiter UK Smaller Cos
–
370.74
+0.15
Jupiter UK Special Sits Inc
Euro
€
1.0816
1.1374
…
0.8364
HK $
10.1400
10.6749
9.3856
7.8498
India
Rupee
79.9300
90.6612
79.7110
66.6675
Israel
Shekels
4.4193
4.9332
4.3373
3.6276
Hong Kong
Japan
Kuwait
New Zealand
Yen
142.2800
149.5686
131.5035
109.9850
Dinar
…
0.4101
0.3604
0.3015
NZ $
1.8037
1.9422
1.7076
1.4282
Norway
Krone
10.4700
11.0340
9.7012
8.1138
Pakistan
Rupee
148.0800
157.1636
138.1813
115.5700
Saudi Arabia
Riyal
4.7697
5.0999
4.4840
3.7502
$
1.6933
1.8175
1.5979
1.3365
South Africa
Rand
16.1000
17.2843
15.1967
12.7100
Sweden
Krona
11.4900
12.1385
10.6724
8.9260
Singapore
Switzerland
Franc
1.2900
1.3578
1.1938
0.9984
Baht
38.5800
43.1497
37.9380
31.7300
Dirham
4.6883
4.9951
4.3918
3.6732
Thailand
UAE
UK
£
…
…
0.8792
0.7353
USA
$
1.2991
1.3599
1.1957
…
Tourist rates for indication use only. www.travelex.co.uk
Rates
Inflation
Change on month
Year
+3.3pc
RPI (1987=100)
Mar 278.30
+0.10
RPIX (Target 2.5pc)
Mar 278.80
+0.20
+3.4pc
CPI (2015=100 target 2pc)
Mar 105.00
+0.10
+2.5pc
Halifax house price index
Mar 737.50
1.5pc
+2.7pc
Money
Bank Rate
0.50pc
Nationwide Base Mortgage Rate
Overnight
0.47pc
US Fed Funds
7 day
0.49pc
US Long Bonds Yld
3.14pc
1 month
0.51pc
European repo rate
1.25pc
3 months
0.70pc
European base rate
0.00pc
6 months
0.80pc
2.50pc
1.50-1.75pc
Major price changes FTSE 100
Close
Sterling Income Shares
South East Asia
3.50
1382
+6
UK Select Acc
3.50
297.4
+1.6
Boston Co US Opp Fund
0%
121.11
+0.61
Insight Corporate Bd
0%
92.7
-0.36
Target Funds
Insight Eq Inc Fund
0%
178.47
+0.17
Target 2020
Insight Eq Inc Booster
0%
129.56
+0.08
†CAR - Net income reinvested
3.50
65.84
-0.07
Insight Glob Abs Ret Inc
0%
110.8
-0.11
Insight Glob Multi-Strat Fd
0%
*123.55
…
Insight Inflat-Link Corp Bd
0%
*107.39
-0.15
Long-Term Global Equity
0%
253.94
+1.55
Fundsmith LLP
Newton Asian Income
0%
196.31
+0.62
Newton Cont European
0%
269.21
+1.61
PO Box 10846, Chelmsford, Essex, CM99 2BW.
0330 123 1815
www.fundsmith.co.uk enquiries@fundsmith.co.uk
Newton Global Dyn Bd
0%
101.72
-0.15
Newton Glb High Yld Bd
0%
59.8
-0.08
Fundsmith Equity T Acc
–
358.09
+2.16
JPM Emg Euro Eq A Acc
Newton Glb Inc Stg Inc
0%
192.83
+0.28
Fundsmith Equity T Inc
–
332.47
+2.01
JPM Emg Euro Eq A Inc
3.00
Newton Glb Opps
0%
282.83
+1.77
JPM Emg Markets A Acc
3.00
Name
Init chge
3.00
Change
Buy on day
High Income Inc
–
*111.8
111.8
-0.2
…
High Income Acc
–
*257.1
257.1
-0.2
42.9700
-0.1800
JPM US Eq Inc £ Hdg A Inc
3.00
*115.9000
-0.1000
UK Select Port Inc
–
352.6
352.6
+0.6
225.2000
+1.2000
JPM US Eq Inc A Acc
3.00
*170.8000
+0.4000
UK Selection Port
–
638.9
638.9
+0.9
Newton Intnl Bond
0%
232.24
+0.01
JPM Emg Markets A Inc
3.00
95.9000
+0.4900
JPM US Eq Inc A Inc
3.00
*137.4000
+0.3000
UK 100 Co’s Fund Inc
–
222.2
222.2
+0.3
Newton Multi-Asset Bal
0%
194.46
+0.63
JPM Emg Mkts Inc A Acc
3.00
*73.9300
+0.2500
JPM US Select A Acc
3.00
160.8000
+0.4000
UK 100 Co’s Fund Acc
–
383.3
383.3
+0.6
Newton Mult-Asset Div Ret
0%
155.19
+0.32
JPM Emg Mkts Inc A Inc
3.00
*58.4800
+0.2000
JPM US Select A Inc
3.00
158.7000
+0.4000
W’wide Man Inc
–
507.3
+0.5
Newton Mult-Asset Gwth
0%
836.69
+5.64
JPM Eur Dyn (ex-UK) £ Hg A Acc3.00
219.9000
+1.5000
JPM US Sm Cos A Acc
3.00
642.4000
+5.8000
W’wide Man Acc
–
814
+1
Newton Oriental
0%
670.12
+2.19
JPM Euro Dyn (ex-UK) A Acc 3.00
224.9000
+1.6000
JPM US Sm Cos A Inc
3.00
168.3000
+1.6000
Newton Real Return A
0%
113.13
+0.05
Newton UK Equity Fund
0%
878.58
+1.95
Janus Henderson Investors
PO Box 9023 Chelmsford, CM99 2WB
Enquiries: 0800 832 832
Website: www.janushenderson.com
JPM Euro Dyn (ex-UK) A Inc
3.00
100.9000
+0.7000
JPM Europe A Acc
3.00
1477.0000
+14.0000
Asia Pac Cap Gwth A Acc
5.00
JPM Europe A Inc
3.00
82.0800
+0.7800
+1.07
Asian Dividend Income Inc
5.00 *107.3800 112.8000
…
JPM Euro Smaller Co A Acc
3.00
784.9000
+9.3000
12.97m
365¾
-2.79pc
Cautious Managed A Acc
5.00
*268.4000
…
JPM Euro Smaller Co A Inc
3.00
101.7000
+1.3000
È Kingfisher
32.83m
290⅝
-1.92pc
Cautious Managed A Inc
5.00
*153.0000
…
JPM Global Bd Opps A Grs Acc –
*54.1000
-0.0300
2.85pc
È Whitbread
Jupiter Unit Trust Managers Ltd
1.14m
4250
-1.87pc
China Opps A Acc
5.00
1470.0000
+2.00
JPM Global Bd Opps A Grs Inc –
*48.8600
-0.0300
2.81pc
È Barratt Dev
554⅝
-1.77pc
The Zig Zag Building, 70 Victoria Street, London,
3.27m
SW1E 6SQ
020 3817 1000
4029
2.93pc
Ç TUI AG
1.69m
1698½
Ç Fresnillo
1.32m
1280
Ç BHP Billiton
8.05m
1561
2.78pc
È ITV
22.95m
151½
-1.65pc
Ç Hargrve Lans
1.01m
1811½
2.46pc
È Unilever
2.87m
4000
-1.54pc
Ç Antofagasta
5.12m
980¼
2.19pc
È Persimmon
1.27m
2711
-1.27pc
Ç CRH
5.45m
2639
2.17pc
È Segro
3.62m
638
-1.24pc
Ç DCC
0.44m
7255
2.11pc
È RSA Ins
4.55m
649⅝
-1.19pc
Ç G4S
3.80m
265⅜
2.08pc
È BT Group
40.82m
242¼
-1.12pc
Ç Ashtead Group
2.15m
2063
1.73pc
È Taylor Wimpey 14.79m
190¾
-1.09pc
486
1.55pc
È Standard Chart 17.69m
761⅜
-1.03pc
2.39m
1639
1.52pc
È Bunzl
1.77m
2157
-1.01pc
1.09m
1631½
1.34pc
È Just Eat
3.41m
798
-0.92pc
28.23m
231⅞
1.27pc
È Coca-Cola HBC
0.67m
2453
-0.89pc
+0.18
Mid
Sell
+0.13
4.88m
+0.08
449.1
*143.4000
Init chge
67.72
Ç Rio Tinto
167.22
424.62
3.00
Name
332.75
È Direct Line Ins
158.65
5.00
JPM US A Inc
0%
3.16pc
5.00
Growth Fd
-0.8000
0%
357⅞
Glob Income
Change
Buy on day
Newton UK Opps
47.41m
+0.24
Mid
Newton UK Inc
Ç Glencore
66.73
194.5000
Sell
Change
Fallers 40
+0.26
Jupiter US Sm&Md Cap Ret Acc –
Kings Meadow, Chester, CH99 9UT
0870 333 1835
-3.02pc
È Sainsbury
+0.17
72.33
Marks & Spencer Unit Trust
Management Ltd
-6.27pc
È PaddyPwrBet
3.17pc
*195.83
PO BOX 23850, Edinburgh EH7 5FY
Dealing and Admin 0330 123 3822
305
Change
–
Jupiter US Sm&Md Inst I Acc –
Liontrust Investment Funds
6800
5.17pc
1757⅜
Ç Informa
3.50
Close
476
5.35m
Ç Smiths Gp
–
Special Sits
1.00m
2.49m
Ç Anglo Amer
Ç Melrose Ind
Index UK A Acc
BNY Mellon Investment Funds (ICVC)
Volume
Volume
Ç Evraz
Ç Scot Mort Inv Tst 3.97m
Investors: 0800 614330 Brokers: 08085 660000
www.bnymellonim.co.uk,
clientservices@bnymellon.com
36.55m
Risers 57
Ç Easyjet
BNY Mellon Fund Managers
Carvetian Capital
Management Limited
Admin: Stuart House, St John’s St,
Peterborough PE1 5DD
Dealing & Enquiries: 0845 850 0255
1118.0000
+2.00
M & G Securities Ltd
Emerg Mkts Opps A Acc
5.00
208.4000
+0.10
JPM Global Bond A Gross Acc 3.00
262.1000
-0.3000
European Growth A Acc†
5.25
237.0000
+1.90
JPM Global Bond A Gross Inc 3.00
203.3000
-0.3000
1658.0000
+14.00
JPM Global Eq Inc £ Hdg A Acc 3.00
*82.9900
+0.1300
Jupiter Abslt Rtn
–
54.46
…
PO Box 9039, Chelmsford, CM99 2XG
Enq: 0800 390 390. UT Deal: 0800 328 3196
-0.27
Charibond Inc
–
*122.7
Charibond Acc
–
*3963.43
-8.5
-0.12
Charifund Inc
–
*1605.92
-0.81
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 *21.7100 22.6500
JPM Global Eq Inc £ Hdg A Inc 3.00
*55.1800
+0.0800
Jupiter Asian Fd
–
923.52
-0.36
Charifund Acc
–
*24870.97
-12.57
Consistent Unit Trust
Management Co Ltd
Global Care Growth A Inc
4.50
*290.9000
+2.00
JPM Global Eq Inc Fd A Acc
3.00
*97.5800
+0.3400
Jupiter Asian Inc Fd Acc
–
130.94
-0.33
M&G Corp Bond A Inc
3.00
*40.23
-0.13
Global Equity Inc A Inc†
5.25
60.9700
+0.22
JPM Global Eq Inc Fd A Inc
3.00
*78.6000
+0.2700
Jupiter Asian Inc Fd Inc
–
121.03
-0.31
M&G Corp Bond A Acc
3.00
*69.43
-0.24
Admin: Stuart House, St John’s St,
Peterborough PE1 5DD
Dealing & Client Services 0345 850 8818
Global Growth Acc
4.25 3039.8601 3170.8101
…
JPM Global HiYld Bd A Grs Acc 3.00
*110.0000
-0.2000
Jupiter China Acc
–
140.86
+0.62
M&G Dividend A Inc
4.00
61.84
+0.27
M&G Dividend A Acc
4.00
688.63
+3.06
Global Strategic Cap Acc†
5.00
240.4000
+0.40
JPM Global HiYld Bd A Grs Inc 3.00
*36.2600
-0.0700
Jupiter China Inc
–
135.35
+0.60
Global Technology A Acc
5.00
1699.0000
+21.00
JPM Global HiYldBdAGrsMthInc3.00
*36.2700
-0.0700
Jupiter Corp Bond Inc
–
56.45
-0.15
1.20pc
È Land Secs
2.08m
981¾
-0.79pc
Ç Intl Cons Air
7.62m
648⅜
1.12pc
È Admiral
1.22m
1989½
-0.77pc
Unit Tst Inc
–
52.6
53.4
+0.37
Multi-Mgr Abs Ret A Acc
5.00
*141.7000
…
JPM Global Macro Bal A Acc
3.00
*72.3400
-0.0200
Jupiter Dstrbtn Acc
–
*102.13
-0.11
Ç 3i
2.38m
951⅜
1.11pc
È British Land
3.12m
669⅜
-0.53pc
Unit Tst Acc
–
135.6
137.8
+0.9
Multi-Mgr Active A Acc†
5.00
*225.4000
+0.80
JPM Global Macro Bal A Inc
3.00
*63.3700
-0.0100
Jupiter Dstrbtn Inc
–
*59.07
-0.06
Ç Standard Life Abr 6.96m
367⅛
1.10pc
È GlaxoSmKline
7.14m
1460
-0.53pc
Practical Invest Inc
5.00
238.6
255.7
+1.2
Multi-Mgr Distbn A Inc
5.25
135.8000
-0.20
JPM Global Macro Opps A Acc 3.00
73.9
+0.14
Jupiter Dstrbtn & Grth Inc
–
*124.05
+0.14
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.
Ç Carnival
4757
1.08pc
È Sky
2.85m
1373
-0.51pc
Practical Invest Acc
5.00
1263
1353
+7
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5.51m
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Initial charge:
…
8
Thursday 3 May 2018 The Daily Telegraph
***
Business
Home-building hits fastest pace for two years as thaw arrives
By Tim Wallace
BUILDING sites across Britain came
back to life in April as the construction
industry recovered from the deep
freeze in March.
Bad weather added to weak demand
to drag down overall economic growth
in the first three months of the year, so
a recovery in the sector could give UK
GDP a much-needed boost from April
onwards. Housebuilding in particular
took off last month, growing at its
fastest pace in more than two years,
according to the influential purchasing managers’ index (PMI) survey from
IHS Markit. Commercial construction
and civil engineering picked up pace
more modestly.
The PMI rose to 52.5 in April, up
from 47.0 in March and beating a forecast of 50.5. Any score above 50 indi-
cates an expansion, so this points to a
return to growth – the first rise in output recorded so far this year. This may
only be a return to stability rather than
sustained growth, however.
“While temporary factors make it
difficult to gauge underlying momentum, the recovery from March’s low
point is somewhat underwhelming, and provides an indication that
the construction sector has been
treading water at the very best in
recent months,” said Tim Moore, at
IHS Markit.
“A consistent theme so far this year
has been fragile demand conditions
and subdued volumes of incoming
new work.
“Survey respondents noted that
heightened economic uncertainty continued to hold back construction
growth in April, with risk aversion
among clients leading to delays with
spending decisions on new projects.”
While the housing sector is performing better, the commercial construction and civil engineering industries
face deeper problems.
Brendan Sharkey, of accountancy
group MHA MacIntyre Hudson, said,
following the collapse of Carillion:
“UK construction companies aren’t
showing many signs of being able to
Jump in number
of new houses
sold as leasehold
ahead of ban
THE number of houses sold under
leasehold agreements soared last year
ahead of a government crackdown on
unfair ground rent increases.
An analysis of Land Registry data by
the Office for National Statistics has
shown that 15.6pc of new-build houses,
excluding flats and maisonettes, were
sold as leaseholds in 2017.
This is a significantly higher number compared with five years ago
when 9.4pc of new-build houses –
excluding those sold under discount
schemes such as Right to Buy – were
sold as leaseholds.
The figures follow in the wake of
the Government announcing plans
to ban leaseholds for almost all
new-build houses in a crackdown on
“feudal” practices that have seen
ground rents double after fixed periods
in some instances.
It is also set to ensure that ground
rents on new long leases in England are
set to zero, for both houses and flats, as
well as making it easier and cheaper for
leaseholders to buy out their freehold.
The increase in leasehold sales could
be due to developers trying to offload
the properties before the new rules
come into force.
Flats and maisonettes are traditionally far more likely to be sold as leaseholds rather than freeholds. This is due
to the fact that the owner of the block
in which the flats are located often provides communal services to residents,
and remains responsible for some of
the upkeep.
But in recent years, the popularity of
leaseholds has extended to terraced,
semi-detached and detached houses –
even where the freeholder provides
no services.
A number of large housebuilders
have been called out in recent months
over punitive leasehold terms, including Taylor Wimpey, which slashed
bonuses for its senior directors by 25pc
after the problems emerged.
Persimmon has also said it will
increase its freehold sales, and other
companies, including Bellway and
Redrow, have been caught up in the
leasehold row.
Sebastian O’Kelly, a trustee at the
Leasehold Knowledge Partnership
charity, which campaigns against
unfair leasehold practices, said:
“There’s been a disgraceful exponential growth in the sale of new leasehold
properties in recent years.
“Housebuilders have cheated their
former customers by selling them tenancies that provide a considerable
income for the anonymous speculators
who own the freehold.
“There’s no excuse for selling houses
under leasehold agreements except to
rip people off.”
The figures show that London has
seen the biggest rise in new-build
leasehold houses for any region in England and Wales since 2012. In the year
to September 2012, 8pc of transactions
for such properties were leasehold,
compared with 21.1pc in the year to
September 2017.
This overall trend was driven by a
particularly sharp increase in the number of new-build terraces sold as leaseholds in the capital.
The North West, which traditionally
has a far higher proportion of leasehold
properties, saw the next biggest
increase in percentage point terms.
First-of-its-kind
banking data
gives ONS new
levels of detail
By Anna Isaac
ROGER BAMBER/ALAMY STOCK PHOTO
By Patrick Scott
break away from their perilous lowmargin culture.”
It came as small businesses reported
moderate confidence in the state of the
economy in the three months to May.
SMEs told the CBI that they expect to
grow steadily in the coming months,
though their investment plans are taking a knock and they anticipate weaker
export growth as the eurozone economies slow down.
New-build houses increasingly likely to be leasehold
New-build leasehold houses increased most in London
Proportion of new-build houses sold as leaseholds in England
and Wales, year ending September
Point change in the % of new-build houses sold as leaseholds 2012-2017
15
%
+13.1
+12.8
London
North West
Terraced
+6.7
+6.6
+6.5
+6.2
+5.2
+4.1
+4.1
England
Semi-detached
South West
10
England & Wales
Yorks & Hum
East Midlands
5
North East
Detached
West Midlands
+3
+2.6
East
0
2000
2005
2010
2015
DATA: ONS/LAND REGISTRY
Wales
South East
+1
DATA: ONS/LAND REGISTRY
THE UK’s number crunchers are now
able to peruse data about people’s
bank accounts to help them better
understand how money is moving
around the country.
Everyday transactions such as moving money between accounts and taking on a second mortgage will now be
tracked by the Office for National Statistics as part of a drive to learn more
about the economy.
Using anonymised data gathered by
credit ratings agency Equifax, in what
statisticians have called a first-of-itskind move, the ONS will now have far
more detailed levels of data on how
businesses and consumers manage
their money and borrowing.
The step is part of a joint effort called
the Flow of Funds Project between
the Bank of England and the ONS, in a
bid to show policymakers how risks
might be building in different areas of
lending. The first publication based on
the data has revealed a sharp rise in
rent-to-own borrowing. This has overtaken credit card lending to become
the second-largest type of lending.
Only mortgages, which make up
85pc of borrowing, were a bigger category. Rent to own, also known as hire
purchase – whereby goods are paid
for in instalments over time – was
worth £90.1bn by the end of 2017. This
was nearly £10bn higher than at the
end of 2016.
Andrew Bailey, head of the Financial
Conduct Authority (FCA), has said that
rent to own is one of the most concerning areas of lending. The FCA will be
examining the case for price capping
high-cost credit and is set to make an
announcement on the issue in June.
Richard Campbell of the ONS said
the Equifax data offered a “different
level of detail” from previously. He
added that consumers should not
worry about security of their individual data. “Everything we receive has
gone through strict checks to ensure
it’s anonymised,” Mr Campbell said.
Poor schools to blame for weaker
prosperity in North, says Osborne
By Tim Wallace
ECONOMIC growth, productivity
and prosperity are weaker in the north
of England in part because governments in Westminster have failed to
focus on their schools, George Osborne
has warned.
Bad schools in London are easy for
politicians to visit and focus on, while
those hundreds of miles away have
been neglected by comparison.
But a concerted effort could have
a transformative effect on the region
and on the entire British economy,
said the bosses of the Northern Powerhouse Partnership.
“The simple fact is educational performance in the north of England is not
as strong as it should be, and it lags
behind educational performance elsewhere in the country, particularly in
the capital,” the former chancellor told
the education select committee.
“It is partly lack of attention over
many decades.
“Over my lifetime there has been a
dramatic improvement in the state of
London’s schools. They have gone from
some of the most challenged, in some
of the most challenging areas, with big
diversity and a lot of disadvantage, but
they have managed to take good
schools and make them excellent.” In
part this is due to the ease of focusing
national attention on different aspects
of the capital, while areas distant from
Westminster are more often forgotten.
“If there were problems in Hackney,
which is an outstanding example of
where schools were improved over
20 years, the truth is, people who were
in charge knew officials at the Depart-
20pc
The proportion of education spending in
Germany that comes from business, rather
than government, according to Lord O’Neill
ment for Education, politicians in government often knew the head
teachers,” Mr Osborne said.
“It is 30 mins from here [Westminster] – you could direct that central, national effort at an area not very far from
the Palace of Westminster. It is more
challenging in the north of England.”
But he hopes that a focus on the
region with a new umbrella body
co-ordinating education and skills
resources and planning should help
replicate London’s success.
“It will help address the long-term
problem, which is that the economic
performance of the north of England
has lagged behind that of the south,” he
said. “Every reputable study that you
can find around the world suggests the
best way to improve productivity is to
improve education outcomes.”
Lord Jim O’Neill, vice-chairman of
the Northern Powerhouse Partnership
and former chief economist at Goldman Sachs, said a focus on schools
across the region, rather than in a
piecemeal fashion, should provide a
major boost to the economy.
“If you get them [northern cities]
working as a single market, it will
transform the national economy’s performance,” he told MPs.
He added that it was not just the
Government that needed to do more
to improve education to boost the
economy.
“Look at us compared to Germany.
Twenty per cent of their broader education spending comes from companies, because they know it is in their
interests to have the skills to keep them
going,” Lord O’Neill said.
“It is such a dominant theme in the
north about this ‘skills shortage’, yet so
many employers just expect somebody
else to do it for them.
“We need a transformation as to
how the corporate sector plays its role
in this.”
Eurozone growth slows in first quarter as
unemployment holds at double that of UK
By Anna Isaac
GROWTH in the eurozone slowed in
the first three months of 2018, as
national data showed a sharp fall in
demand for exports and consumer
spending remained subdued.
The eurozone economy expanded by
0.4pc in the first quarter, down from
0.7pc in the three months to December,
statistics released yesterday revealed.
The slowdown in the eurozone
growth rate is the same as that seen in
the UK, which also fell by 0.3 percentage points in the first quarter of 2018.
Growth in the eurozone was slowing
from a higher base, however. UK
growth in the final three months of
2017 was 0.4pc, some 0.3 percentage
points lower than in the eurozone, and
the economy reached a virtual standstill in the three months to March, with
a 0.1pc rate of expansion. The UK econ-
omy is particularly exposed to falling
demand from eurozone consumption.
Some 43pc of UK exports went to the
EU in 2016. Both economies are also
likely to have been affected by cold
weather and the timing of Easter.
Claus Vistesen, of Pantheon Macroeconomics, said the estimate of GDP
growth for the eurozone was better
than some investors had feared. In fact,
it was at odds with the other data that
had emerged from 2018 so far.
“Either the GDP numbers will be
revised down, or the first-quarter
hard data will be revised up,” Mr Vistesen said.
While temporary factors such as cold
weather and flu had weighed on GDP
growth this was not the sole cause, said
Stephen Brown of Capital Economics.
“But there is no denying that underlying growth has slowed as last year’s
boost from net trade has faded,” Mr
Brown said. Eurozone unemployment
remained relatively high, and more
than double that of the UK and the US
rates of close to 4pc. Data released yesterday showed a figure of 8.5pc unemployment for March. This has not
moved from February.
There was also a very mixed picture
on unemployment levels across the
eurozone member states.
Unemployment in Greece was at
20.6pc, more than six times that of Germany’s extremely low rate of 3.4pc.
Spain still had a relatively high rate of
16.1pc unemployment, as of March,
while Italy’s unemployment rate was
unchanged at 11pc.
The different levels of unemployment, often regarded as a measure on
the amount of slack in an economy,
may partly explain why inflationary
pressures remain subdued in the currency bloc. 
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