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SIRTOPFLOP LOSES BILLIONAIRE STATUS AS HIGH STREET EMPIRE IS LEFT ‘WORTHLESS’

SEBASTIAN MCCARTHY roughly £950m in the wake of finan- process, as a way of restructuring the cial troubles at his flagship fashion store portfolio and renegotiating @SebMcCarthy group Arcadia, which includes brands rents with landlords. SIR PHILIP Green has lost his billion- such as and . Green’s wealth previously came aire status, rounding off a torrid The Rich List deemed Green’s under scrutiny after he sparked 12 months for the scandal-hit “worthless” as controversy by seeling BHS for £1 in fashion mogul. is grapples with £565m 2015. It went into administration less For the first time since worth of pension debt, with than a year later with a £571m hole in 2002, Green can no longer the value of Green and his its pension fund. count himself as a member wife’s stake in the firm The tycoon’s image has also been of the billionaires’ club tumbling from roughly rocked in the last six months by a after seeing his personal £750m last year. series of explosive racial and sexual fortune halve over the The firm is under- abuse claims reported in the Daily course of the last year. stood to be currently Telegraph. The Topshop tycoon and exploring a possible A number of high-profile figures, his wife Tina fell from joint company voluntary including entrepreneur Karren Brady, 66th place on the Sunday arrangement (CVA), have since distanced themselves from Times Rich List to 156th this a controversial Green, who denies allegations of year, as mounting pension insolvency misconduct. debts and tough trading Several MPs have also called for the conditions blighted his Croydon-born businessman to be high street empire. stripped of his knighthood in recent The Monaco-based mogul months, following Green’s decision to once dubbed the ‘King of drop a legal case against the Daily SEBASTIAN MCCARTHY reassure customers and investors in the High Street’, who be- Telegraph. the run-up to a cash injection came famed for his lavish Meanwhile, Green’s high street rival @SebMcCarthy strategy it plans to reveal this birthday parties and and Sports Direct owner Mike Ashley UNDER-FIRE high street lender Metro week. taste for £100m luxury was valued at just under £2bn in yes- Bank moved quickly to quash fresh The embattled banking group said yachts, was valued at terday’s rich list. His valuation fell rumours of financial trouble last over the weekend its £350m roughly £5bn in 2007. £461m over the last year after losing night, ahead of a crucial City raising plans to shore up its balance However, the busi- his 30 per cent stake in fundraising effort expected to take sheet following an accountancy nessman is esti- when it collapsed into administration. place in the coming days. blunder earlier this year were “well- mated to be worth The owners of retail high street gi- The challenger bank insisted advanced”. It added the bank was in ants such as Superdry, Dixons yesterday there was no truth to “final discussions” with The retail tycoon Carphone, Majestic Wine and Wilko speculation spread via social media shareholders over the raise. saw his fortune also all saw their wealth slide since and messaging apps about halve over a year the 2018 compilation of the list. instability at the firm as it sought to £ CONTINUES ON P3 Pressure grows on May as Farage’s Party takes a bite out of Tories

ALEXANDRA ROGERS Cabinet for May to name the date walkout if May agrees to a customs win 20 per cent of the vote share secretary, and , the that she will leave Downing Street, union with Labour in the talks and 49 seats, with the Tories on 19 health secretary, would lose out to @city_amrogers after the influential 1922 aimed at breaking the Brexit per cent and Labour on 27 per cent, the Brexit Party. ’s previously loyal Committee of backbench Tories deadlock in parliament. A if an election were called now. As the waiting game for May’s allies have started abandoning her repeatedly asked for “clarity” on spokesperson for Fox said this was Such an outcome would mean exit intensifies, rivals are polishing as an explosive poll shows Nigel her departure. “categorically untrue”. high-profile Tories such as Boris their leadership credentials. Farage’s Brexit Party overtaking reported that The Comres survey for the Johnson and Sir Graham Brady Tomorrow, foreign secretary the Tories for the first time if a , the international trade Sunday Telegraph is just the latest would lose their seats to Labour, will make the case for General Election were called. secretary, has also privately poll to predict dire results for the while the likes of Penny Mordaunt, a “national renewal post-Brexit” in Pressure is now building within threatened to stage a Cabinet Tories. Farage’s new party could the recently-appointed defence a speech at the Mansion House.

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A ROYAL OCCASION Prince of Wales attends the 95th annual Combined Cavalry Old Comrades Association Parade in Hyde Park THE CITY VIEW Only a planning rethink will save the high street

OARDED-UP shop fronts are a common sight during recessions. In the early 1990s, they became an eyesore Bfor town centres and the embattled Conservative government alike. Similarly, in the years following the most recent global recession, shop vacancies climbed before easing off. One measure shows the vacancy rate as high as 14 per cent in 2012 as the UK struggled to bounce back from the aftershocks of the financial crisis, then dipping to 11.5 per cent by 2015 as meaningful GDP growth took hold. Another measure – using a different methodology and definition – shows an 11.1 per cent rate in 2013, falling to nine per cent in 2015. In the absence of another economic slump, the rate should have continued to slip in the last few years. Instead, it has increased. This morning, Springboard reports the highest vacancy rate THE PRINCE of Wales attended the 95th Combined Cavalry Old Comrades Association Parade in Hyde Park yesterday. The annual event honours the members of the cavalry and yeomanry that were killed in the First World War and subsequent since 2015. In the north of the proportion of vacant conflicts. Between 2,000 to 3,000 serving and former cavalrymen and their families are thought to have attended. shops stands at a depressing 13.6 per cent. Even in the Too much is made Square Mile, with offices of the supposed packed full of high-earning ‘community’ professionals, you can now spot retail units going value of shops Debenhams rates cut to unused, or turning into short-term pop-ups or charity shops desperately trying to catch commuters’ eyes. Little surprise, therefore, that yesterday’s showed a whopping 52 per cent drop in Sir Philip Green’s hit local authority purses wealth, while fellow retail guru Mike Ashley suffered a 19 per cent slip. Gone are the days when high-street titans dominated SEBASTIAN MCCARTHY the annual ranking. And it is not only retailers feeling the hit. rent reductions, Debenhams is He added: “And on the business side @SebMcCarthy preparing to secure a 50 per cent cut we may see the emergence of a two- Landlords Intu and Hammerson have seen shares lose 74 per in business rates from local authori- tier high street with those stores who cent and 57 per cent of their value respectively since 2015. CASH-STRAPPED local authorities are ties for a swathe of its most unprof- have been run efficiently and have This newspaper has previously called for a radical liberalisation set to become the latest victim in the itable stores following the approval of embraced the changing retail market demise of Debenhams, as the embat- its CVA, which is a form of insolvency place paying much higher rents and of planning laws to make the most of changing consumer and tled retailer embarks on a turn- process. rates, than those like Debenhams who societal habits. Too much is made of the supposed around plan that includes a John Webber, head of business rates have not followed such a prudent “community” value of shops. It should be possible to quickly controversial move to cut business at Colliers, said the business rate dis- path. The well-run will be subsidising and easily turn retail units into not only flats or offices, but rate bills that it owes. counts could set “an uneasy prece- the poorly-run.” New research shown to City A.M. dent for the finances of local The business rate discounts, which spaces used for mixed purposes that communities still want – estimates local authorities will no authorities which have similar strug- are not permanent and are only set to playgroups, cafes, services for the elderly, and so on. longer receive £8.5m of the total gling retailers in their boroughs”. apply during this current billing year, The UK has too many bricks and mortar shops, and in absence £17.3m in rates bills which they were “In the long run, if by using a CVA a will particularly hit the local author- of any significant change in policy the vacancy rate will set to be paid by Debenhams this retailer is let off the hook of some of ity of Hammersmith and Fulham, billing year. its business rates liabilities and this which is expected to lose £716,000 of continue to rise. The department store chain is set to practice is followed by other strug- the £1.5m it should have received in gain business rate discounts in a move gling retailers, we will see the public 2019-2020 due to the chain’s West- that is expected to impact nearly 60 purse massively compromised,” Web- field store. local authorities after creditors voted ber told City A.M. Newcastle upon Tyne will lose over overwhelmingly to approve the “Local authorities will not have the £543,235 of the £1.2m it was expect- group’s company voluntary arrange- funds they have budgeted for to run ing to receive this billing year, while ment (CVA) last week. local services, which we already know Guildford will lose £446,070 from its Follow us on Twitter @cityam Along with store closures and major are tightly stretched.” original £811,440 bill.

FINANCIAL TIMES THE WALL STREET JOURNAL FOUR SHIPS SABOTAGED OFF WHAT THE BRITISH JOBS BOOM SHOWS COLMAN’S WEIGHS SALE OF HUNGARIAN LEADER VISITS REFUELLING HUB IN UAE OTHER LITTLE SIGN OF FADING OUT NEWS PUBLISHER TRUMP IN POLICY REVERSAL Four commercial vessels were The British employment boom is to The dynasty originally behind Colman’s Hungarian Prime Minister Viktor Orban sabotaged off a major tanker refuelling PAPERS SAY continue as businesses shrug off Brexit mustard is weighing a sale of Archant, will visit US President Donald Trump at hub in the United Arab Emirates, the uncertainty and become increasingly one of Britain’s largest regional the White House today, marking a foreign ministry said. The incident took THIS confident, according to a report by the newspaper groups and publisher of the policy reversal for an administration place near the UAE’s territorial waters in Chartered Institute of Personnel and anti-Brexit weekly . worried that the nation is slipping away the Gulf of Oman, close to the Strait of MORNING Development. The -based publisher of the from Washington’s orbit. Hormuz, a choke point for crude is estimated to be exports out of the oil-rich region. SPORT SPONSORS SNUB worth between £40m and £60m. HOUTHI REBELS BEGIN TO GAMBLING CHARITY FUND WITHDRAW FROM KEY PORT US FIRMS IN THE RUNNING Betting websites that pay almost TRAVELEX OWNER MOOTS Houthi rebels in Yemen withdrew forces FOR NAVY TRAINING £120m to sponsor DELAYING LONDON LISTING from the country’s most strategic port, American companies are in the running football clubs are contributing as little Travelex owner Finablr is reportedly the United Nations said yesterday, in a to take over the training of UK Royal the biggest defence groups, have been as £50 per team to Britain’s biggest considering delaying or restructuring its step toward salvaging a peace deal that Navy recruits after the Ministry of pitted against Babcock International for gambling charity. The Gambling multi-billion-pound London listing after hasn’t been implemented since it was Defence chose two US groups to a contract to take over the training of Commission recommends that struggling to drum up enough interest. brokered in December. The four-day compete for the lucrative contract. recruits, worth up to £2bn bookmakers donate 0.1 per cent of The financial services firm had hoped to redeployment from Hodeidah began on Raytheon and Lockheed Martin, two of over 12 years. revenue each year to Gamble Aware. raise at least $200m (£154m). Saturday. CITYAM.COM MONDAY 13 MAY 2019 NEWS 03

MUSK TRY HARDER Tesla chief executive Metro eyes loan Elon Musk to face trial over ‘pedo’ tweet Ford poised to cut 550 white sale in wake of collar UK jobs ALEX DANIEL @alexmdaniel FORD is gearing up to announce as many as 550 job cuts in the coming accounts error weeks as part of a major restructuring programme, City A.M. has learned. CONTINUED FROM FRONT PAGE it emerged that the blunder was The second-biggest car maker in discovered by a financial regulator, the US is expected to make the The challenger bank said in a state- despite the lender originally suggest- reductions among office workers at ment: “We’re aware there were ing that it had found the errors itself. BILLIONAIRE Elon Musk is to face trial in October after he called a British diver who its base. increased queries in some stores Shares in the bank have since fallen helped rescue 12 boys trapped in a Thai cave a paedophile. Vern Unsworth is seeking The news is not expected to hit its about safe deposit boxes following from over 2,200p in January to 533p at least $75,000 (£57,700) in compensation plus damages in the defamation suit. UK manufacturing employees who false rumours about Metro Bank on at the end of trading last week. work at factories in , social media and messaging apps. Metro’s boss said over the weekend Bridgend or Halewood, of whom There is no truth to these rumours that the group might offload a major there are around 5,000. and we want to reassure our cus- portion of its existing assets, as spec- Ford is in the midst of a tomers that there is no reason to be ulation over its future direction turnaround of its European business concerned.” mounts ahead of an annual general Goals Soccer Centres boss quits which reported a modest $57m In January, a wave of investor panic meeting later this month. (£43.9m) first-quarter profit last loomed large over the group follow- Metro Bank boss Craig Donaldson month. It announced in March it ing a major accountancy error that told the : “Two of our weeks after accounting blunder would cut its 24,000 strong German led to the dog-friendly challenger asset classes saw the risk-weighted as- workforce by 5,000 people. bank making an emergency cash call sets held against them go up, there- JESS CLARK role for a year, is resigning to take on At the same time, Ford said it will and rushing out its full-year results. fore return on equity went down; one @jclarkjourno the chief executive job at the British offer voluntary redundancies to The lender admitted that a swathe of the ways we could address that Olympic Association, some of its workers in the UK. of commercial loans had been incor- would be to securitise them or sell the THE CHIEF executive of five-a-side reported. A source with knowledge of the rectly classified and should have been book.” football venue operator Goals Soccer The appointment is expected to be matter told City A.M. this number among its risk-weighted assets, lead- On Friday, the bank’s second-largest Centres is stepping down, weeks after announced today. would be “around 500 to 550”, and it ing to the worst one-day fall in a shareholder Fidelity Management the company’s shares were In March, London-listed Goals would be among the company’s British bank’s share price since the and Research cut its 7.55 per cent suspended following a £12m Soccer Club reported a “substantial “white collar, salaried employees”, financial crisis. stake in Metro down to 5.37 per cent accounting error. misdeclaration of VAT” totalling including those in management Such losses were exacerbated when ahead of the capital raising. Andy Anson, who has been in the approximately £12m. positions. 04 NEWS MONDAY 13 MAY 2019 CITYAM.COM Hedgies smell blood at shopping centre giant Intu amid retail woes SEBASTIAN MCCARTHY possible closures. Marshall Wace and Odey Asset @SebMccarthy The company has become the Management both upping their target of shortsellers, who look to bearish positions. SHORTSELLERS have been stepping make gains on a firm’s woes by “Shortsellers are chipping away at up their bets against Intu in recent betting its share price will fall in the Intu and the shopping centre months, as they look to cash in on future, amid the decline of brands landlord’s new chief executive, the embattled shopping centre such as Debenhams, which accounts Matthew Roberts, will need to come owner’s current retail troubles. for three per cent of Intu’s rent roll. up with a convincing new plan when City punters have been circling the The amount of Intu’s shares that he presents it alongside the interim FTSE 250 landlord amid forecasts the have been sold short has gone from results in late July if he is to fend group’s rental income will slide as a just under 2.5 per cent at Christmas them off,” said Russ Mould, number of major retail tenants eye to more than six per cent, with investment director at AJ Bell.

Intu owns flagship shopping malls such as the Trafford Centre in Manchester Four-year high vacancy rates as stores weaken

SEBASTIAN MCCARTHY She added: “This effect can be cycli- @SebMcCarthy cal, with the long-term decline in footfall pushing up vacancy rates, VACANCY rates climbed to a four-year particularly in poorer areas. Further- high last month, as high streets and more, the cumulative impact of gov- shopping centres suffered a year-on- ernment policy costs – from spiralling year fall in the number of shoppers business rates to the apprenticeship during April. levy and more – have also made phys- The national town centre vacancy ical space less cost effective.” rate reached 10.2 per cent in April, The figures underline current fears marking a further increase on the of increasing store closures and job previous quarter rate of 9.9 per cent losses within the retail sector, as and the highest level since April 2015. many high street bricks-and-mortar Despite a 2.2 per cent bump in retail groups struggle to maintain a profit park footfall, high streets and shop- amid mounting costs and competi- ping centres were hit by a decline in tion from online-only rivals such as the number of shoppers decline of Amazon and Asos. one per cent and 2.1 per cent respec- Springboard marketing and insights tively, according to new data released director Diane Wehrle said: “There is today by the British Retail Consor- an obvious distortion in the year on tium (BRC) and Springboard. year footfall results for April due to “With regular reports of shop clo- the early Easter in March last year. sures, it may come as no surprise that However, the expected bounty as a town centre vacancy rates rose to result of Easter occurring in April this their highest level in four years. year did not provide enough of a Empty shopfronts, particularly for boost to deliver positive figures for larger stores, can deter shoppers from the month, with footfall still 0.5 per an area, decreasing footfall for all cent lower than April last year. those around,” said Helen Dickinson, “This demonstrates the continued chief executive of the BRC. challenges facing many retailers.” UK ‘most desirable’ M&A activity location for first time in 10 years JESS CLARK respondents were looking to @jclarkjourno transact in the next 12 months, which is the highest level recorded THE UK is the most desirable location in a decade, compared to 45 per cent for merger and acquisition (M&A) six months ago despite the ongoing activity in the next 12 months, uncertainty surrounding Brexit, reaching the top spot for the first according to research by EY. time in 10 years, according to Meanwhile, 73 per cent of research published today. executives in the UK said that a A survey of 3,000 executives across changing geopolitical landscape is the world found that most “fundamental” or “very influential” considered the UK to be the best to their deal strategy, and the same place for M&A deals followed by the number said technological US, Germany, China and France. innovation was also driving their In total 67 per cent of UK M&A dealmaking. DON’T JUDGE ME ONLY ON WHAT ’M WORTH. JUDGE ME ON WHAT I’LL ACHIEVE.

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DEAD IN A DECADE UK voters think Super-rich will Brexit Party and Change UK will vanish Arriva latest to sue over rail flee Britain if franchise award ALEXANDRA ROGERS @city_amrogers THE GOVERNMENT is facing a double whammy of legal action Corbyn made PM over its decision to award the East Midlands franchise to Abellio, after Arriva Rail joined Stagecoach in ALEX DANIEL Hunduja brothers were named the taking it to court. richest people in the UK for a third Arriva Rail, which is owned by @alexmdaniel time. Sri and Gopi Hinduja, whose German rail giant Deutsche Bahn, BRITAIN’s billionaires are reportedly firm has stakes in IT, energy, media, THEY may only have just got started, but UK voters are already sighting the end. Two said it was “seeking to obtain more preparing to bid farewell to the coun- oil and gas, banking, healthcare and thirds of those surveyed by YouGov believe Nigel Farage’s party will disappear in 10 information relating to how the try should Jeremy Corbyn become property, led a record 151 billionaires years, while 56 per cent think the same for Change UK, led by Heidi Allen. bids for the East Midlands Prime Minister, in an attempt to hold in the list, six more than last year. franchise were assessed”. on to their vast wealth. Ratcliffe has already jumped the gun Stagecoach has been locked in a One in ten interviewed by the on Corbygeddon, however, having bitter row with the Department for Sunday Times for its annual rich list moved his assets to Monaco this year Transport (DfT) over its decision to said they would move assets out of the to save up to £4bn of tax. The move disqualify it from the East UK to protect themselves from wealth, drew ire from critics who claim he is Truss urges building on green Midlands, West Coast and South income and inheritance taxes mooted trying to escape the financial effects Eastern franchises for its refusal to by the Labour leader – a process of Brexit, which he has supported. share pension liabilities with the dubbed “Corbygeddon”. Fellow Brexiter James Dyson, founder belt land amid leadership hint government, which it estimated List compiler Robert Watts said the of the eponymous vacuum brand, could be “well in excess” of £1bn. wealthy were “more anxious about a climbed to fifth in the rankings. ALEX DANIEL Stagecoach launched the legal Jeremy Corbyn government than a “allow the under 40s to be able to action last week. year ago, blaming a weak and divided @alexmdaniel own their homes”. A DfT spokesperson said: “We do Tory administration for putting the THE RICHEST IN THE UK has called for 1m homes to In an interview with the Mail on not comment on legal proceedings. Labour leader within touching RANK AND NAME WORTH IN BN be built on green belt land to stop the Sunday’s You magazine, Truss However, we have total confidence distance of Downing Street”. 1. Sri and Gopi Hinduja £22.0 Tories being “annihilated by the dropped a strong hint she would run in our franchise competition The list itself revealed Sir Jim Rat- 2. £18.7 tsunami of Corbyn and Farage”. for Prime Minister after Theresa May process and will robustly defend cliffe, owner of chemicals giant Ineos, 3. Sir Jim Ratcliffe £18.2 The chief secretary to the Treasury steps down. She said: “You have to be decisions that were taken fairly lost the top spot this year to drop to 4. Sir Len Blavatnik £14.4 took aim at the policy – a favourite prepared to put yourself forward following a thorough and impartial third place, while the billionaire 5. Sir James Dyson and family £12.6 among party grassroots activists – to because nobody else is going to.” evaluation process.”

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CHAPPELL CHARGED Retail tycoon faces Banks told to do money laundering and fraud allegations Lloyd’s review EX-BHS boss Dominic Chappell has been to crack down charged with money laundering and tax evasion, the on harassment more to prevent reported last night. Chappell is accused of JESS CLARK not paying corporation tax on profits from his @jclarkjourno firm Swiss Rock. LLOYD’s of London has commissioned an independent branch closures review into its workplace culture following allegations of sexual harassment and bullying. ALEXANDRA ROGERS “If the financial services market is The insurance market has asked unwilling to innovate to halt the the Banking Standards Board to @city_amrogers closure of bank branches, market conduct a market-wide THE GOVERNMENT and the Financial intervention by government or the investigation, beginning today. Conduct Authority (FCA) should be FCA may be necessary to force banks A survey will be circulated to ready to intervene if banks do not do to provide a physical network for con- about 45,000 brokers, underwriters enough to halt the closure of local sumers,” the report said. and staff, and the marketplace will branches, MPs have suggested. The number of bank branches in the also hold a number of focus In its report into financial inclusion, UK has fallen from 20,583 in 1988 to groups, the Sunday Times reported. released today, the Treasury Select 9,690 in 2017. Demand for branch Survey questions will include Committee (TSC) said the closure of services has fallen in the wake of whether employees feel able to local branches were more likely to financial innovation that allows cus- UK art exports reach three-year report cases of inappropriate affect older and more vulnerable tomers to use services online or on behaviour. C ISSUE 3,368 customers, and that banks must do their phone. FRIDAY 10 MAY 2019 more to keep them open. However, the MPs said the number high in 2018 in run up to Brexit The committee said “face-to-face” of IT failures suffered by banks – most HARRY ROBERTSON HALF MEASURES banking could be maintained notably TSB – meant they could not surged in 2018, rising 64 per cent to LLOYD’S OF LONDON WARNS INSURANCE WORKERS AGAINST DAYTIME through the greater expansion of rely on online services and mobile £240m, up from £150m in 2018. DRINKING AFTER SLEAZE SCANDAL –BUT STOPS SHORT OF BOOZER BAN mobile bank branches by banks shar- apps to replace branches entirely. @henrygrobertson Boodle Hatfield said the rise was ing facilities with each other, and via The report also found the Post Office THE VALUE of art exports from the likely caused by dealers and galleries the pooling of staff of different banks. was increasingly being used to plug UK hit a three-year high in 2018, looking to move their assets into the The MPs said they did not believe the gap in local branch store closures. reaching £5.4bn, according to EU ahead of Brexit. that competition law hindered banks They said Post Offices should receive analysis by private wealth law firm “UK companies will potentially be from sharing facilities, but that if it funding from banks to carry out the Boodle Hatfield. subject to rising import VAT rates did, the government should consider basic services they are being asked to Exports of art, collectors’ pieces post-Brexit, causing uncertainty,” The insurance market warned last week making changes to law. do on their behalf. and antiques from the UK to the EU Boodle Hatfield said. it would crack down on alcohol at work

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9^hig^Wji^dcXVckVgneZghidgZeZg^iZb#Eg^XZhXdggZXiVii^bZd[\d^c\idegZhh# 08 NEWS MONDAY 13 MAY 2019 CITYAM.COM British business Softbank to invest in British confidence hits fintech Greensill KEITH WEIR

A PROSPECTIVE deal between Softbank’s Vision Fund and UK financing group Greensill Capital seven-year low could be announced as early as today, a City source told . Softbank Vision Fund is investing HARRY ROBERTSON points to 98.63 in April, showing a £500m in Greensill, according to slowdown in production in the British multiple reports, which provides @henrygrobertson economy. supply chain funding to companies. BUSINESS optimism in the UK fell to Declines in both the services and The investment values Greensill its lowest rate since 2012 in April, manufacturing sectors drove the at $3.5bn (£2.7bn), Bloomberg according to a report released today, index’s fall. reported. The company was in a sign that the Brexit extension has Office for National Statistics (ONS) founded by former banking done little to cheer up the country’s figures released last week showed the Uber listed on Wall Street on Friday at the lower end of its targeted price range executive Lex Greensill in 2011. gloomy firms. economy grew 0.5 per cent in the first The investment will mark Following a dramatic fall in March three months of 2019, aided by people Softbank’s second investment in of 3.69 points, accountancy firm preparing for the original Brexit date British financial services, having BDO’s business optimism index fell of 29 March, which boosted demand. Uber licks its wounds after a backed London savings challenger further in April by 0.26 points to 95.74 However, the slowdown in optimism Oaknorth in a $440m funding – close to negative territory, which is and output revealed by BDO today round in February. marked by a score of below 95. could have a knock-on effect, suggest- lacklustre public markets debut The Vision Fund was set up in BDO said the low optimism reading ing that economic growth will cool in 2017 and has become the world's suggested the extension of Brexit the second quarter. EMILY NICOLLE as a mountain of regulatory largest technology investment until 31 October “is likely to have the Peter Hemington, partner at BDO, challenges. Others espoused fund. Its investments have included effect of holding business confidence said: “The only certainty businesses @emilyjnicolle confidence in its technological vision. ride-hailing pioneer Uber and chip at multi-year lows, rather than deliv- have at the moment is that the UK UBER will be hoping to put its luck “Ultimately Uber’s long-term share designer Arm. ering a notable boost to sentiment”. government still doesn’t know exactly into reverse on Wall Street this week, price will be driven by their ability to Greensill was last valued in a Meanwhile, UK business output how or when the UK will leave the Eu- after its first day of trading on Friday take large market shares around the funding round in July 2018 at growth declined for the first time in ropean Union. left the firm’s share price more than world and eventually turn that $1.6bn, with its valuation set to 2019 last month as the boost from He added: “We are seeing the impact seven per cent below its pricing. dominant position into a profit,” said double on the coming investment. Brexit stockpiling faded. of this confusion, with business con- Investors voiced concerns over Jake Robbins, fund manager at A Softbank spokesman declined The firm’s output index fell 0.11 fidence plummeting.” Uber’s failure to turn a profit, as well Premier Asset Management. to comment. Reuters CITYAM.COM MONDAY 13 MAY 2019 NEWS 09 IN BRIEF DEMOCRATIC HOPEFUL BACKS TECH BREAK-UP Democratic presidential candidate Chinese media Kamala Harris said yesterday that US officials should consider breaking up Facebook, the world's largest social media company, saying it is a utility that has gone unregulated. Harris, a US senator has tough talk and one of more than 20 Democrats seeking the party’s nomination for the 2020 presidential election, said Facebook has prioritised growth over consumers' interests. for US on tariffs AVENGERS STAYS STRONG AT THE BOX OFFICE Disney and Marvel’s ‘Avengers: HARRY ROBERTSON first official response to allegations Endgame’ remained victorious at @henrygrobertson that it had backtracked on key the box office, collecting $65m elements of the deal. (£50m) during its third weekend in THE US made “a fundamental mis- Liu said China objected to some of theaters. ‘Avengers: Endgame’ judgement” by ratcheting up tariffs the phrasing of the agreement, and officially passed ‘Avengers: Infinity on $200bn (£154bn) of Chinese goods that it believed making changes to a War’ ($679m) and ‘Black Panther’ and has “seriously underestimated deal before it is finalised was normal. ($700m) to become the third- China's endurance”, according to an Over the weekend, US President Don- Grocery giant Tesco delivered a 27 per cent rise in full-year profit last month highest grossing movie of all time at editorial article published yesterday ald Trump reiterated his claims that the domestic box office with $724m by the Global Times, a government- China reneged on its trade promises in ticket sales. It’s still the second- aligned Chinese tabloid newspaper. in the hope it would be able to negoti- biggest film ever globally with China’s size means the US “should ate the deal with a Democratic presi- Tesco swings axe on products in $2.4bn, pacing behind just ‘Avatar’ not have an unrealistic illusion that dent following the 2020 election. with $2.78bn. once the trade war intensifies, it will He tweeted: “China felt they were have more bargaining chips at the ne- being beaten so badly in the recent ne- latest shelf-improvement drive INVESTMENT PLATFORM gotiation table,” the English-language gotiation that they may as well wait SCRAPS COMMISSION FEE newspaper said, reacting to the US around for the next election, 2020, to SEBASTIAN MCCARTHY mainly in household goods, as it Multi-asset investment platform increasing tariffs on goods from 10 see if they could get lucky & have a De- @SebMcCarthy looks to reduce the number of pack Etoro is scrapping commission fees per cent to 25 per cent. mocrat win, in which case they would sizes and avoid duplication. for customers buying or selling The strong words came after Chi- continue to rip-off the USA.” A FIFTH of products at Tesco face the A Tesco spokesperson said: “Any stocks and exchange-traded funds nese vice-premier Liu He said that Yesterday, the Global Times – which chop in the latest efforts by chief changes to our range are informed on its platform. From today, investors China had not rowed back on prom- does not speak for the government executive Dave Lewis to cut back on by customer feedback and are will also not be charged stamp duty ises made in the trade deal between but is an offshoot of state-owned the grocery giant’s shelf ranges. focused on reducing duplication, or management fees. Etoro UK the two countries. newspaper People’s Daily – said the The plans, first reported in the improving availability, and making managing director Iqbal Gandham His statements, made to Hong Kong United States had “seriously underes- Sunday Times, involve clearing a it easier for customers to find the said he hoped the decision would news service Phoenix, were China’s timated China’s endurance”. fifth of the firm’s 40,000 products, products they want.” “get more people investing”. 10 NEWS MONDAY 13 MAY 2019 CITYAM.COM Centrica bosses Tech staff quit over industry’s hope vote will ethical impact JESS CLARK @jclarkjourno UK TECH workers are quitting their jobs due to their ethical concerns save pay rises about the industry’s impact on society. More than a quarter of ALEX DANIEL Justin Bowden, GMB national secre- employees in the tech sector have tary, said the Centrica board was seen decisions made that they felt @alexmdaniel rewarding Conn for a “litany of fail- could be harmful to society, which CENTRICA shareholders will head ure” last year. prompted 18 per cent of those to into the British Gas-owner’s annual “We have 15,000 members in Cen- leave their job as a result. meeting this morning amid a clam- trica, who are not being offered four Employees working on artificial our to reject chief executive Iain per cent pay rises, never mind 44 per intelligence projects were most Conn’s £740,000 pay rise. cent,” he said. “The resulting loss of Horta-Osorio’s pension will be reduced to 33 per cent of base pay from 46 per cent likely to quit, research by tech Despite a torrid 2018 in which confidence since the announcement think tank Doteveryone found, as Centrica lost around six per cent of its of Iain Conn’s planned rise runs right 59 per cent of workers said they customers, Conn’s pay soared to through the company from top to had seen potentially harmful £2.4m, up from £1.7m the year before. bottom.” Lloyds Bank urges employees product decisions and more than The financial boost was announced Centrica’s board will hope investors one in four handed in their notice. last month, just a week after the firm are not swayed by a number of share- In total 80 per cent of the 1,010 hiked prices for 15m customers across holder rebellions which have already to show out for annual meeting UK respondents to the survey the UK. taken place this year, including at Bar- agreed that companies have a Influential trade union GMB has clays, medical devices firm Convatec HARRY ROBERTSON controversial pay plan for Antonio responsibility to ensure their written to Centrica’s institutional and Standard Chartered. Their cause Horta-Osorio will be under scrutiny. products don’t impact negatively shareholders asking them to block is unlikely to be helped by the fact @henrygrobertson Horta-Osorio took home £6.3m in on society. the pay rise. shares will open at a near-20 year low BOSSES at Lloyds Bank have urged 2018. He has come under fire from The loss of employees could be It comes in the wake of British Gas of 93p tomorrow. employees to have their say at its MPs and shareholders who have expensive for firms, as the cost of workers in Leeds and Glasgow being Directors will be buoyed, however, upcoming annual meeting amid a questioned whether his pension and each lost worker is estimated to be told their sites were under threat of by the support of influential share- row over executives’ pay. share awards are too generous. more than £30,000. Ninety-three closure as the latest part of a reduc- holder proxy groups ISS and Glass A video was made to persuade staff However, the two main per cent of employers said they tion of 4,000 jobs in the company’s Lewis, who both recommended vot- to vote at Thursday’s meeting, the shareholder advisors – ISS and Glass have struggled to fill tech positions customer business by 2020. ing in favour of the pay hike. Sunday Times reported, where the Lewis – support the pay plan. over the past year. Visit our new London Hub today FINECO HUB and receive a special gift. Plus, get Cannon Street a £150 cash bonus and 100 free Monument trades when you open an account*. London Bridge Fineco is the bank designed for life on the move. Open week Mon-Fri, 10am-8pm Apply today to get a free multi-currency account that FINECO HUB | 40 Gracechurch Street lets you bank, trade and invest in GBP, EUR, USD, London, EC3V 0BT CHF and more with no conversion or admin fees.

* Terms apply. Deposit £1,000 or more for cash bonus. Find out more at finecobank.com Free trades to be used within three months. 12 NEWS MONDAY 13 MAY 2019 CITYAM.COM DREAMGUEST OPINION OR NIGHTMARE? Rainer Zitelmannexplains why the lessons of Ikea show that Sweden should no longer be held up by the Left as a bastion of Nordic socialism

Ikea founder Ingvar Kamprad was one of many entrepreneurs to leave Sweden

OCIALISTS in the United published in a leading newspaper. States and Great Britain often In response, Sweden’s minister of cite the Nordic countries as finance, Gunnar Strang, arrogantly socialist role models. What added insult to injury during a they have failed to notice is session in the country’s parliament, ISAs | Funds | SIPPs | Shares Sthat these countries have long since saying: “The article is an interesting turned their backs on socialism. combination of stimulating literary According to the Heritage Founda- ability and deep ignorance of the tion’s Index of Economic Freedom, maze of fiscal policy.” Denmark and Sweden are among the Undaunted, the writer retorted: 20 most capitalist countries in the “Gunnar Strang seems to have world. The ranking includes 180 learned to tell stories, but he sure countries, with the socialist can’t count! It would be better if we countries – Cuba, Venezuela and exchanged jobs.” in charge, not North Korea – all found at the bot- Eventually, Sweden’s then-Prime tom of the list. Minister Olaf Palme took care of the So, what is the point of raising the matter himself and admitted on story of Nordic socialism? television that Lindgren did have In the 1970s, Sweden was indeed a her numbers right. model of what is now called demo- At the time, Sweden’s economy overcharged cratic socialism. But the socialist was badly damaged by the govern- agenda damaged the Swedish ment’s socialist policies. Key indus- economy and resulted in prominent tries were nationalised and entire entrepreneurs leaving the country in swathes of the economy bailed out frustration. with taxpayers’ money. The founder of the flat-pack furni- In some areas, the absurdities Be £30,000 better off over ture empire Ikea, Ingvar Kamprad, reached almost farcical proportions. was one of them. The marginal Supertankers that were no longer income tax rate of 85 per cent was economically viable were built and 30 years compared to our supplemented by a wealth tax on his stockpiled with government subsi- personal assets, which forced him to dies, only to be scrapped with more borrow money from his own com- taxpayers’ money. largest competitor*. pany in order to pay his taxes. Finally, the entire shipbuilding in- To pay back his debt to Ikea, Kam- dustry was nationalised. All in all, prad wanted to sell one of the small bailing out the shipbuilding indus- ii.co.uk/save-more companies he owned to Ikea at a try cost Swedish taxpayers the equiv- profit – at the time a common prac- alent of around $12bn (£9.2bn). tice among Swedish entrepreneurs But this is all history. After the attempting to reduce their wealth socialist experiment in Sweden had tax burden. also failed miserably, a phase of free- As Kamprad was preparing the sale, market reforms began, in many the government made retroactive ways reminiscent of Margaret changes to tax legislation. He was Thatcher’s reforms in Great Britain: stuck with the costs and furious at state-owned enterprises were priva- his country’s unfair treatment of en- tised, taxes were massively reduced trepreneurs. In 1974, he moved to and social benefits were cut. Denmark and later to Switzerland, The admirers of so-called Nordic where he spent the next few decades. socialism in Britain and the United The radical socialist policies in States frequently refer to the fact Sweden alienated even those who that Sweden still levies relatively were sympathetic to the Social high income taxes. But what they Democrats’ project. fail to mention is that Sweden com- Astrid Lindgren, the world-famous pletely abolished its inheritance and author of a raft of children’s classics gift taxes in 2004, before getting rid including the Pippi Longstocking se- of its wealth tax in 2007. ries, is just one example. Although Sweden remains a tradi- Her long-standing commitment to tional welfare state in some respects, *Research by the social democratic beliefs successive governments since the espoused by the likeable newspaper early 1990s have consistently chosen editor with a strong sense of justice, more freedom over more equality, Boring Money who is a central character in her more market over more state. Thus, Madicken series, didn’t stop her from Sweden can no longer serve as a role feeling outraged by the 102 per cent model for socialist dreamers. marginal tax rate levied on her earn- ings in 1976. £ Dr Rainer Zitelmann holds doctorates in Lindgren vented her anger in a satire history and sociology. on the Swedish tax system titled This article is based on his recently ‘Pomperipossa i Monismanien’ and published book ‘The Power Of Capitalism’. CITYAM.COM MONDAY 13 MAY 2019 NEWS 13 Electric vehicle interest on the rise ALEX DANIEL weeks after the Society of Motor Man- pressed an interest in electric vehicles, ufacturers and Traders (SMMT) said with one in five of those polled seeing @alexmdaniel registration of new plug-in hybrids the difference. INTEREST in buying an electric car declined dramatically in April, falling Sean Kemple, sales director at Close continues to grow among consumers 34.4 per cent year-on-year. Many more Brothers Motor Finance said: “2019 with 12m people considering a pur- Brits bought battery electric cars in may be remembered as the year when chase, according to a survey of dealers. April compared to a year earlier, with electric vehicles went mainstream. Research by Close Brothers Motor 1,517 units registered compared to “While sales are still relatively low in Finance found two in five drivers are 929. However, this still only represents real terms, the speed of growth is mulling the purchase of an electric 0.9 per cent of the market. accelerating, and it looks like we’re vehicle, an increase of 7.5m drivers in Dealers said they noticed an uplift in months, not years, from the tipping the last five years. The findings come the number of customers who ex- point.” Brits bought 1,517 electric cars in April, just 0.9 per cent of the market

Mental health RIVERSIDE VIEWS FROM £420,000 Bayer hires law remains taboo firm to look among staff into Monsanto HARRY ROBERTSON PATRICIA WEISS

@henrygrobertson BAYER said yesterday it was hiring an EMPLOYEES are three times more external law firm to investigate likely to talk about common physical French media complaints that illnesses and problems than they are Monsanto, the US seed maker it took to discuss mental health, a new over last year, had compiled a file of survey by the charity Mental Health personalities in the hope of First Aid England (MHFA) has found. influencing their positions on Only about one in 10 workers pesticides. would feel comfortable speaking The German life sciences and about self-harm, postnatal pharmaceuticals group said that, depression, eating disorders, following an internal review, it psychosis or schizophrenia, understood that this initiative had according to MHFA, whose study, raised concerns and criticism. released today, marks the start of the “This is not the way Bayer seeks UK’s Mental Health Awareness Week. dialog with society and stakeholders. The week, which runs from today We apologise for this behaviour,” until Sunday 19 May, was first Bayer said in a statement. It added, launched in 2001. however, that there was no indication This year’s theme is body image that compiling the lists was illegal. and seeks to encourage people to French prosecutors opened an think positively about their bodies inquiry on Friday after newspaper Le while raising awareness of all mental Monde filed a complaint alleging that health issues. Landmark DeDevelopmentvelopment of BrBrandand NeNeww 1, 2 and 3 BedrBedroomoom Monsanto had compiled a file of 200 MHFA’s study shows that while names, including journalists and almost 40 per cent of employees Apartments close ttoo Canary WWharfharf politicians. would talk to their bosses about The French investigation is the cancer, only 12 per cent would latest fallout from Bayer’s $63bn discuss bipolar disorder with them. Marketing Suite Open 7 days a week (£48.5bn) takeover of Monsanto. It The research, which was New Union Wharf, 8 River Barge Close, Isle of Dogs, E14 3PJ already faces potentially heavy costs commissioned by MHFA and media from US class-action lawsuits in firm Bauer Media UK, also revealed which plaintiffs argue that its that Britons would rather talk about Book your appointment: Roundup weedkiller causes cancer. diarrhoea than depression. Bayer shares have shed more than MHFA today launched a 40 per cent since a first adverse US “workplace manifesto” which calls judgment on Roundup last August, for company bosses to create leaving the company with a market environments where mental health capitalisation smaller than the price can be talked about. 4 16 22 27 it paid for Monsanto. Simon Blake, chief executive of mins mins mins mins Shareholders delivered a rare MHFA said: “Despite the increased Opens rebuke to its management team at DecDecemberember awareness around mental health in 20191920 Bayer’s annual general meeting last the workplace, employees are telling Canary WharfWharf Bank LivLiverpoolerpool SStreeteettr Oxford CirorxfO Circuscusd month, with a majority voting us that there is still a significant gap against ratifying the executive board’s * TTravelvar el times frfromom CrCrossharbourossharbour SStation.tation. Obtained frfromom TFL in how we think and act about business conduct in 2018. physical and mental health at work.” PricesPrices correctcorrect atat time of printing. LLondonondon Help ttoo Buy ttermserms and cconditionsonditions applyapply.. Commenting on the French Paul Keenan, president of Audio allegations, Bayer said its law firm , said: “Our would inform all of the individuals manifesto is a call for change: a call on the Monsanto list about the for fellow employers and MPs to join information collected about them. us in striving to do more for mental Bayer would also “fully support” the health care in the workplace.” French investigation. Reuters Tube chaos expected in 1,200-worker strike AUGUST GRAHAM schedules. that instead of talking seriously The three-day strike is expected to about the train inspection and @AugustGraham cause problems on all Underground preparation cuts the company have SEVERE delays are expected to hit lines when it starts on Friday. resorted to threats of intimidation London’s Tube this week as around Talks with Transport for London and harassment of our members.” 1,200 engineering staff walk-out amid (TfL) broke down “after London Peter McNaught, director of asset a strike over safety. Underground bosses refused to give a operations for London Underground, Union RMT said last week its guarantee of no victimisation of RMT said: “We have plans in place to members were striking after what it members,” the union said. ensure we can deliver a Tube service called “serious and damaging cuts” RMT general secretary Mick Cash for our customers, and keep The three-day strike will go ahead this Friday to preparation and inspection said: “We are angry and frustrated disruption to a minimum.” Big thinkers can bend steel with their mind.

At BHP, it’s our job to supply the iron ore big thinkers need to make buildings rise, bridges stand and planes fly. It’s a job that never ends. So we’re always discovering more sustainable ways to extract this precious resource. We’d love to tell you more. So if you’re willing to let us bend your ear, visit bhp.com/BigThinkers. CITYAM.COM MONDAY 13 MAY 2019 NEWS 15 CITYPAGES EDITED BY JESS CLARK @JCLARKJOURNO

HY DO YOU THINK TIM Utilities are investing a lot more in green BOOK attitudes, but also on workforce turnover”. COOK’S CAREER AT APPLE power largely because of companies like However, it is refreshing to read that the HAS BEEN LEFT LARGELY Apple, and it is indeed leaving the world a REVIEW chief executive of one of the world’s largest UNCOVERED UNTIL NOW? better place. companies places diversity and equality at Two words: Apple secrecy. TIM COOK the of the business, despite the fact WApple is very, very secretive and keeps its APPLE RECENTLY REPORTED STRONG that there is clearly more work to be done. Q&A BY LEANDER KAHNEY staffers tightly under wraps. Even though RESULTS. DO YOU THINK APPLE HAS Similarly, with privacy currently a Tim was doing great things for the company, BEATEN ITS RIVAL SAMSUNG? buzzword in Silicon Valley and beyond, they felt it did them no good to publicise it. Jess Clark Ha! Last quarter, yes, Apple did better than The final sentence of and as other technology giants such as talks to Samsung but it’s a long race with no clear Leander Kahney’s Tim Facebook face a string of privacy-related WHY DID YOU CHOOSE TO PROFILE finish line in sight. Cook biography is: scandals, it is particularly interesting to see COOK NOW? Tim Cook biographer Going forward, Both Apple and Samsung “And though Apple has become the world’s Cook’s approach to the issue outlined. There was a lot of doom and gloom when he will continue to do well and the competition first trillion-dollar company under his In one memorable example Apple took over, but after a few years it was Leander Kahney is good for us consumers. leadership, Cook has done so much more. defeated a court order to develop obvious that he was doing a remarkable job. They push each other to do better, which is He has made Apple a better company and “backdoor” software that could open a Apple has really thrived under his leadership, about Apple and its good for everyone. I sincerely hope both the world a better place.” Beginning a locked iPhone so the FBI could gain access becoming more than three times the size it companies do well. review with the final sentence is not a to a phone used by Syed Farook, who was was when Steve Jobs was in charge and the secretive top boss spoiler in this case. In the title the reader is suspected in connection with a shooting in world’s first trillion-dollar company. Not WHAT’S THE BIGGEST THREAT TO told that Steve Jobs’ successor is a San Bernadino in 2015 that left 14 people much was known about Tim and it seemed APPLE’S BUSINESS CURRENTLY? “genius” who took the technology giant “to dead. Cook refused, despite the potential a great time to take a deep look. I honestly don’t think rivals like Samsung or the next level”, and the book is tilted in backlash. Google present a serious threat to Apple’s Cook’s favour throughout. Kahney paints a Apple’s chief executive himself is a hugely WHAT WAS THE MOST INTERESTING business. This may sound absurdly fanboy- picture of Cook as a defender of private person and less of a public figure THING YOU LEARNED ABOUT COOK ish, but Apple’s biggest threat is Apple itself. customers’ privacy, enforcer of equality than Jobs. WHILE RESEARCHING THE BOOK? As Apple’s phones get better, people hang and the driver of cleaning up the abuses in Apart from linking Cook’s identity as a For me, the most interesting thing was onto them longer. Apple’s supply chain. gay man, which the chief executive learning about his progressive agenda — Upgrade cycles have gone from a couple of The author does address the fact that the revealed in an editorial in 2014, to his drive how he is using Apple’s gigantic resources to years to four or longer. And when customers make up of Apple’s executive team and for equality and experiences of racism in ‘leave the world a better place,’ a phrase he do upgrade, they hand down their old board of directors is still inbalanced with his community growing up to his anti- often uses. As detailed in the book, Cook is phone or sell them, reducing the number of more men than women, and he discrimination outlook, the Apple boss’ promoting six values internally that focus on new upgrades. acknowledges that there is still much work private life is left almost untouched by the accessibility, education, the environment, All this impacts the number of phones to be done in improving the ethics of the biography. inclusion and diversity, privacy and supplier Apple sells, but it is still selling phones in company’s supply chain. Kahney Despite the slight bias, the biography responsibility, and it’s having a big, big gigantic numbers, and at enviable profit recognises the negatives, but comes out in makes for an interesting and enjoyable impact. margins. Cook’s favour on almost every issue. read and gives a look behind the scenes of Cook’s leadership on the “Cook’s determination has clearly paid one of the world’s biggest companies, and environment, for example, has WHICH TECH LEADER WOULD YOU off as Apple has now emerged as one of into the leadership style of Cook. The made Apple one of the first big PROFILE NEXT? the greenest tech companies in the world,” biography reveals him to be an unflashy tech companies to be 100 per Bill Gates because of his Kahney writes. Cook “appears to be very and private chief executive that certainly cent renewable. It’s a big philanthropy. Gates transformed serious” about boosting diversity but the seems to be capable of upholding Jobs’ deal that has knock-on himself from tech’s leading villain “pace of change is glacial because it legacy while carving out his own place in effects in the wider world. into one of its heroes. depends not only on changing people’s the company’s history. PAUL WHAT I’M READING EAGLAND REVIEWS: WHAT TO BDO MANAGING PARTNER READ THIS MONTH

RAGE INSIDE THE WHY SUPERMAN MACHINE DOESN’T TAKE ‘DRIVE’ BY DANIEL H PINK associated with fast thinking. His improve when diversity is based on OVER THE Before reading Drive, some eight years research shows that fast thinking different sets of competencies relevant BY ROBERT WORLD ago, I assumed that a high percentage decisions can often amount to little to the task, and truly mixed/diverse ELLIOTT SMITH of people would have named money as more than guess work, which is highly teams will generally outperform single BY J. BRIAN being a prime driver when making influenced by personal bias and mix teams. However, groups with a Robert Elliott O’ROARK choices relating to their long-term experience. A few more minutes, if not small number of diverse people will not, Smith’s book on career; Pink convinced me that this seconds, of slow thinking would result on average, outperform single mix “the prejudice of Have you ever assumption is wrong. While some in a better decision. groups. algorithms and how wondered why people are clearly motivated by money, to stop the internet superheroes, with Pink draws on leading academic ‘THE DRUNKARD’S WALK’ BY ‘FACTFULNESS’ BY HANS ROSLING making bigots of us their powers and research to demonstrate that, for many LEONARD MLODINOW Evidence-based research all” attempts to abilities, don’t just high performers, money is not a main A mathematically-inspired book which demonstrating that humans have very answer questions takeover the world? Or why Superman has a driver at all. In fact, attempting to highlights how probability and little appreciation of the true state of the such as, why does a Google image search for day job as a journalist and Spiderman takes motivate people purely on money can randomness is at play in all of our lives world, which, on so many levels, is in a “unprofessional hair” result in images of photographs for a living? Perhaps not, unless actually have a negative effect. Pink and within organisations generally. For much better place than we think. black women? Or how can a Microsoft- you’re a comic book aficionado. But in Why concludes that high performers in a example, the probability of two people Rosling opens the book by sharing a designed Twitter bot learn to spout Superman Doesn’t Take Over The World, work environment are driven by three in a group of 23 sharing the same number of questions (on world health, antisemitic abuse within just 24 hours? And economics professor J. Brian O’Roark key things – autonomy, purpose and birthday is 50 per cent. In a group of 75 population growth, global education why does Google’s advert placement give all attempts to answer these questions and mastery. These findings have definitely its 99 per cent – so why do we still say etc.) that he tested with world leaders the high paying jobs to men? The questions explain economic theories at the same time affected the way I think about BDO’s that’s amazing when it happens? As we and politicians over a number of years. feel particularly pertinent at a time when the with an engaging outcome. Batman and strategy and structure. For example, we analyse qualitative and quantitative Despite there being only three multiple internet is our forum for discussion and Robin might not sound like the most obvious do all that we can to provide each team information relating to our business, is choice answers, just about every debate, and can often feel overwhelmingly place to start when explaining comparative with the autonomy to design and drive there any real evidence to explain what audience, of the great and the good, negative. advantage. But, O’Roark writes, Batman their business in a way that keeps them we are achieving or are we creating scored less than 25 per cent. He goes on To answer them, Smith takes the reader as takes on a less experienced sidekick to allow highly motivated. convenient patterns to support what we to explain that a chimpanzee would far back as 1290, to show how our him to split up tasks, with Robin taking on would like to see; is our strategy and guess 33 per cent randomly! technological systems were created right the jobs he’s more skilled at, even though ‘THINKING FAST & SLOW’ BY decision making genuinely paying off or from the very beginning, and who was Batman excels at everything. The reader is DANIEL KAHNEMAN are we ‘just’ lucky? ‘YES’ BY NOAH GOLDSTEIN, STEVE behind their invention and development. not required to be an expert on either comics As humans, we have two fundamental MARTIN AND ROBERT CIALDINI Rage Inside the Machine occasionally gets or economics, although being a superhero modes of thinking; fast and slow – both ‘WHAT WORKS’ BY IRIS BOHNET How small differences, particularly in bogged down in history and scientific jargon, fan certainly would not hurt. Knowledge of incredibly important in our daily lives. In a world where organisations communication, can persuade people but becomes more readable and enjoyable the most famous superheroes enable the By sharing simple examples, Kahneman invariably subscribe to the importance to behave in a positive way. An example when Smith brings the issues into the reader to understand most of O’Roark’s suggests that we are at risk of becoming and business benefit of diversity and includes controlled tests that proved a present day and gives relatable examples of analogies. In some places it does feel like the over dependent on our fast thinking inclusivity, Bohnet digs deeper and higher percentage of guests in hotels the effect of artificial intelligence (AI) on author could be stretching the metaphor too mode when making decisions – shares some practical and reused their towels when the bathroom ordinary lives. Smith has ideas about how far. Can superheroes fighting each other primarily because, ‘biologically’, fast organisational things leaders can do to signage was worded along the lines of algorithmic prejudice can be fixed, saying really be used to properly explain game thinking is easier than slow thinking; it effect change. The section on ‘crafting ‘90 per cent of guests who use this room that while the technology and science theory? However, even if readers don’t come uses less calories. He highlights the groups’ is particularly thought choose to reuse their towels’. I'm a huge behind AI must be more transparent in order away from the book with a complete benefits and risks of both modes and I provoking. In the simplest terms, it fan of communicating positive to address sexist, racist and socioeconomic understanding of how game theory works, was particularly struck by the risks suggests that team performance will behaviour as opposed to negative. bias, the teams creating the systems must be they will definitely grasp the basics in a more diverse too. lighthearted and fun way. 16 NEWS MONDAY 13 MAY 2019 CITYAM.COM

BACK OF THE NET City A.M. trio score Military tension victory in Markets.com tournament Teva finance chief denies batters major price fixing plot STEVEN SCHEER

TEVA Pharmaceutical Industries’ chief financial officer yesterday reiterated that the company has Gulf markets done nothing wrong in the wake of a price-fixing lawsuit filed by 44 US states. DAVIDE BARBUSCIA Talal Samhouri, head of asset man- Mike McClellan told a conference agement at Amwal in Doha, said the in Israel that the suit was an SAUDI Arabia’s stock market fell Saudi drop was mostly due to bearish amended one and not new, while yesterday, in line with most Gulf sentiment surrounding Iran and also stressing it was civil and not markets, after the US Pentagon China’s trade dispute with the United CITY A.M. enjoyed success in a Markets.com football tournament at Emirates Stadium criminal. approved the deployment of a States. yesterday. Staff Frank Dalleres, Callum Keown and Michael Searles – left to right in “There have been no warship and Patriot missiles to the “Negative sentiment is clouding the red, with Arsenal hero Ray Parlour – helped a media team beat the hosts in the final. developments in this area,” said Middle East. bullish expectations for foreign fund McClellan. Yesterday’s decline was the sharpest inflows coming from the MSCI inclu- “We take these accusations one day drop since 18 November 2018. sion,” he said, referring to the incor- seriously and we are going to The Tadawul All-Share Index fell two poration of Saudi stocks into the defend ourselves.” per cent to close at 8,675 points, its index compiler’s emerging index later Thyssenkrupp to seek new steel The Israeli company’s US unit lowest level since the end of March. this month. and 19 other drug companies The benchmark is down almost Dubai’s index was down 1.6 per conspired to divide up the market seven per cent this month. cent, weighed by its largest lender partners after failed Tata deal for drugs to avoid competing and, “The increased military tension be- Emirates NBD which lost 3.5 per cent. in some cases, conspired to prevent tween the US and Iran [is] pressuring DXB Entertainments, the theme DOUGLAS BUSVINE to transform the steel-to-submarines prices from dropping or to raise markets down,” said Mohammed Ali park operator for Legoland and Mo- group into a holding company and them, according to the complaint Yasin, chief strategy officer at Al tiongate, was down six per cent. THYSSENKRUPP will still seek list its profitable elevators business. filed on Friday in the US District Dhabi Capital in Abu Dhabi. For every stock that rose, eight de- partners for its steel operations after He has since agreed on a way Court in Connecticut. The US military said earlier this clined on the Dubai Financial Market abandoning a European merger with forward with labor unions for his Prosecutors said Teva month that a number of B-52 exchange. In Kuwait, the Premier ’s Tata Steel, chief executive new strategy, which foresees 6,000 Pharmaceuticals’s US business had bombers would be part of additional market index was down 2.2 per cent. Guido Kerkhoff said yesterday. job cuts, about four per cent of the orchestrated to inflate drug forces being sent to the Middle East The Abu Dhabi index rebounded Kerkhoff ditched a restructuring Thyssenkrupp workforce. The prices – sometimes by more than following indications of possible with a rise of 0.9 per cent, boosted by plan on Friday, in which the merger blueprint will go to a supervisory 1,000 per cent – and stifle preparations for an attack by Iran. banking stocks. Reuters was a key part, and resolved instead board vote on 21 May. Reuters competition for generic drugs. Reuters

CITY TALK PARTNER CONTENT April surged to a record high of MARKETS TALK 10.64m barrels a day. China is the A COMPLICATED world’s biggest importer of oil. Doubts about the outlook is seeing Neil Wilson traders slowly start to pare back their speculative long positions in oil, fol- discusses the price OUTLOOK lowing a swift run-up in bets for oil prices to rise. Net long positioning was of oil and what this by the end of April at its most extreme means for traders FOR OIL PRICES

il prices have surged by around 30% this year, but the Global trade rally off the Christmas lows Ohas paused for breath. De- volumes have spite the unrest in Venezuela and Iran sanctions denting fallen for the the short-term supply outlook, com- ing at a time when OPEC and its allies first time in are already curbing output in a bid to raise prices, Brent crude has retreated a decade off its recent highs. An unexpected drop in US inventories last week pro- since September. Some analysts have duced only a very temporary bounce. commented that the increase in long The problem is that whilst supply positioning indicates the market is be- may be seen tightening, concerns coming stretched, and vulnerable to a about the demand outlook are build- squeeze lower as longs liquidate posi- ing. Worries about trade, beyond sim- tions. However, when net longs last ply the US and China spat, are a major topped out (at a level much higher factor, particularly as global growth than where we are now) at the start of remains uncertain. 2018, prices for Brent were still hover- Oil production in Venezuela fell to ing around the $62 mark and ran up 732,000 bpd in March, sliding 289,000 about $24 more even as speculators bpd from February. Disruptions to pro- started to pare their long positions. It duction, electricity outages and sanc- seems we’re at a crossroads. Given tions on the Madura regime continue around 500k bpd and still comply main nervous about supply shocks. meeting, preferring to wait and see such a complex array of competing to result in lost output. Reports indi- with the curbs. Donald Trump’s asser- However, it seems Saudi Arabia, the what the actual supply situation looks factors, it is not going to be easy for cate that April too will have seen fur- tion the kingdom was happy to help de facto OPEC leader, needs to see a like over the next 6-7 weeks. OPEC sup- traders to decide which way oil prices ther losses to production. Attempted pump more crude to lower prices does material drop in supply from other ply in April fell to its lowest in four are heading. coups do not suggest more stability - not seem to stand up to much members of the cartel before it will be years. we may expect further material de- scrutiny, and yet it was this comment prepared to ramp output. Overcompli- Demand growth remains a problem. £ Neil Wilson is the chief market analyst clines in output. Venezuelan produc- that sparked the selloff. ance gives the Saudis headroom to in- Global trade volumes have fallen for at MARKETS.COM tion will not ramp up to previous In terms of both Iran and Venezuela, crease production, but the kingdom the first time in a decade, highlight- levels any time soon. it does rather seem that the market is seems averse to doing anything pre- ing the chilling effects of the US-China Iran sanctions – specifically the can- better able to adapt to short term sup- emptively. trade spat on the global economy. cellation of waivers for some im- ply shocks than in the past. We may Saudi energy minister Khalid al-Falih While the International Energy porters – has clearly had an impact. put this down to record US output, has indicated that the OPEC+ group Agency stuck to its view that demand However, this time there may not be which is close to all-time highs. Per- will extend production curbs until the growth will stand at 1.4m bpd in 2019, READ MORE ONLINE the same impact as exports are al- mian offtake constraints are set to end of 2019, but we await the June OPEC recently cut its outlook to 1.21 ready lower and OPEC has greater ca- ease later in the year, meaning more meeting in Vienna for confirmation. million bpd from 1.24m bpd. Higher Keep up to date on our news at: pacity this time to increase output. US oil coming to market. Nevertheless, The Saudis may well be hesitant to prices have already hit demand. On www.ii.co.uk Saudi could increase production by the rally in 2019 indicates traders re- unilaterally ramp output ahead of this the bright side, Chinese imports in CITYAM.COM MONDAY 13 MAY 2019 MARKETS 17

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Exporters lead BT GROUP 230 P Wall St snaps 225 220 losing streak 10 May FTSE 100 lower 215 209.54 210 on trade talks 205 S STOCKS rebounded from Uearly losses on Friday to snap a 3 May 7 May 8 May 9 May 10 May four-day losing streak after US President Donald Trump and Treasury after dollar dips Chief exec Philip Jansen’s quest to “return BT to being a national champion” looks secretary Steven Mnuchin said trade like a tough ask after its full-year results last week showed a one per cent drop in talks between the United States and revenue for the telecoms giant under previous boss Gavin Patterson. It may be even China were “constructive”. tougher after CFRA analysts cut their target price for the firm to 230p, saying the The benchmark S&P 500 index had HE MAIN stock index closed mia treatment developed by the com- discount was “justified given BT's muted [earnings] outlook and the recent dropped as much as 1.6 per cent but lower on Friday, capping its pany and its partners. management shake-up”. Jansen warned his goal will only be possible “if the rebounded from its session lows after worst week in more than five British Airways owner IAG advanced [regulatory] conditions are right”. With a “hold” rating, analysts appear to agree. Mnuchin spoke positively of the two- Tmonths, with exporters fol- 1.9 per cent after it posted quarterly day negotiations between the United lowing the US dollar lower as profit in line with expectations. States and China. hopes for a resolution to the US-China Among small stocks, London-listed IAG It added further to gains after Trump trade dispute stoked appetite for shares of platinum miner Lonmin fell echoed that sentiment in a series of riskier assets. 4.9 per cent to a more than three- 540 P tweets. The index pulled back from The FTSE 100, which is heavy with month low after it said sales would be the session’s highs, however, after 505.40 dollar-earners, inched 0.1 per cent at the lower end of its target range, 520 Mnuchin said no further trade talks lower at the end of its worst week partly due to delays in a takeover 10 May were planned, according to CNBC. since early December, as a by Sibanye-Stillwater. Even with Friday’s rebound, though, drop in drugmaker Meanwhile, Thomas Cook 500 the S&P 500 and the Nasdaq logged Astrazeneca also dragged. jumped 6.6 per cent after their biggest weekly percentage losses The more domestically- Sky News reported on of the year. focused FTSE 250 rose 480 “The market is getting that the 0.4 per cent, however, Thomas Cook rose on a statements (from Mnuchin and after data showed report Virgin Atlantic 3 May 7 May 8 May 9 May 10 May Trump) are more political than British economic may buy its airline indicative of a change in strategy,” growth accelerated in IAG, the owner of British Airways, said it had been weighed down by sharp increases said Oliver Pursche, chief market the first quarter. Thursday that Virgin At- in the price of fuel, staff and engineering in the last year. Despite that, shares gained strategist at Bruderman Asset Investors bought into lantic had offered to buy altitude as investors were cheered by the news it had maintained its profit forecast Management in New York. "Nothing equities for most of the ses- the tour operator’s long-haul for the year. Liberum analysts said the quarterly fall in profit compared “favourably” has changed in terms of our sion as they hoped Washington unit. The group will report its with losses at IAG’s competitors, and subsequently gave the airline owner a “buy” investment thesis.” and Beijing would be able to settle half-year results on Thursday. rating, upgrading its target price to a dizzying 875p. “The first quarter is relatively The Dow Jones Industrial Average their trade spat, even after higher US This week, full-year results are ex- unimportant as the seasonally weakest quarter,” they said. rose 114.01 points, or 0.44 per cent, to tariffs on Chinese goods took effect pected from Vodafone, British Land 25,942.37, the S&P 500 gained 10.68 on Friday. and Burberry. points, or 0.37 per cent, to 2,881.4 and The re-emergence of some risk ap- Vodafone’s earnings will show the MORRISONS the Nasdaq Composite added 6.35 petite pushed the dollar lower against full impact of a slew of setbacks in its points, or 0.08 per cent, to 7,916.94. sterling, leading export-heavy blue- last fiscal year, such as its takeover of 218 P For the week, the Dow fell 2.12 per chip components to be among the Liberty Global coming under scrutiny cent, the S&P 500 declined 2.17 per biggest drags on the main index. and the Australian regulator putting 216 215.40 cent and the Nasdaq shed 3.03 per Astrazeneca slipped 2.3 per cent after a block put on its merger with TPG 10 May cent. ambiguous results in test of an ane- Telecom. 214 Uber Technologies shares dropped 7.6 per cent after having opened 212 below their initial public offering price TOP RISERS FTSE in the ride-hailing company’s debut. 210 Symantec shares plunged 12.5 per 7,500 1. Intertek Group Up 1.99 per cent 10 May cent after the antivirus software 2. Intl Consol Air Up 1.90 per cent 7,400 7,203.29 3 May 7 May 8 May 9 May 10 May maker issued a profit warning and 3. Morrisons Up 1.75 per cent unexpectedly announced its chief 7,300 Analysts at CFRA saw no need to make wholesale changes to their existing “buy” executive officer would step down. TOP FALLERS rating on supermarket Morrisons, despite the company underperforming on Shares of chip makers, which draw 7,200 forecasts for the 13 weeks to 5 May. “Notably, Morrisons has loosened its exclusive much of their revenue from China, 1. Bunzl Down 2.97 per cent 7,100 partnership with Ocado and will now be able to pursue opportunity with other finished higher to snap their four-day 2. Imperial Brands Down 2.83 per cent online distributors,” they said. The move could signal closer cooperation with run of declines, but the Philadelphia 3. British Land Down 2.40 per cent Amazon, which is eyeing an expansion of its UK grocery operations. Shares semiconductor index fell 5.8 per cent 3 May 7 May 8 May 9 May 10 May subsequently ticked up on Friday. CFRA gave it a 260p target price. for the week. CITY MOVES WHO’S SWITCHING JOBS

EY Edinburgh but is working across the UK business. He work with the R3 senior management team to help time that Duncan Swift becomes R3 president, BDO EY has hired Sandy Trust in its joins EY from Grant Thornton where he led the shape R3’s direction, as well as supporting its day-to- partner and current R3 deputy vice-president Colin asset management team as it development of a purposeful finance framework for day operations. His main areas of focus for his Haig becomes R3’s new vice-president. rapidly expands its long term investors and has over 10 years consultancy year-long presidential term will be promoting the commitment and business in experience. Sandy is also a member of the Institute value of the insolvency and restructuring profession ADDLESHAW GODDARD ESG investing, recognising the and Faculty of Actuaries’ Resource & Environment and R3 membership, ensuring high standards are Addleshaw Goddard is adding a highly-regarded importance of climate change, Board, contributing to a number of papers on how to maintained throughout the profession and wider leveraged finance and corporate banking expert to its social impact and well embed climate risk management into long term framework, and campaigning to tackle late payment. City Banking practice. Peter Crichton joins from US managed businesses for both savings. He began his career at PwC and worked for KPMG and firm McDermott Will & Emery, having previously been a asset managers and asset Grant Thornton before joining Moore Stephens in partner at each of CMS and DLA. Peter has over 20 owners. In his new role, Sandy R3 January 2012. A licensed insolvency practitioner since years' experience acting for lenders and borrowers in will focus on long term value Duncan Swift, corporate advisory services partner and 1990, Duncan leads Moore Stephens’ national syndicated, leveraged and structured finance in the investment space, covering areas such as ESG, head of the food advisory group at Moore Stephens, restructuring & insolvency division and its national transactions as well as restructurings. His client climate change and sustainability for insurers, wealth has been appointed president of insolvency and sector specialist food advisory group, as well as the portfolio is extensive including major banks, financial managers and asset managers. Sandy is based in restructuring trade body R3. As president, Duncan will corporate advisory team in Southampton. At the same institutions and private equity firms.

To appear in CITYMOVES please email your career updates and pictures to [email protected] 18 MARKETS MONDAY 13 MAY 2019 CITYAM.COM CITYAM.COM MONDAY 13 MAY 2019 FEATURE 19 OFFICE POLITICS Wellbeing should be top of the agenda

Health-creating environments will As Mental Health Awareness week begins lead to higher engagement and pro- ductivity, because our workplaces will today, what more could companies do? become part of our personal well- being toolkit – providing us with ORE than 26m working Poppy human connection, new learning op- days were lost in 2017/18 portunities, purpose and meaning, due to work-related ill Jaman autonomy, and financial health. health. Stress, depression TIME FOR A In a health-creating environment, and anxiety accounted for CHECKUP the company’s success considers Mthe majority of those days. human flourishing as well as business Figures like these highlight just how Push Doctor prosperity. For some, health creation many people are dealing with poor Free might mean redesigning working en- mental health, and so while it may vironments so that they are not just feel like this issue is receiving a lot of Tired and fed up fit for purpose, but instead energise, attention in the workplace, the job is tion to support good mental health. of waiting for inspire and motivate people. For oth- by no means done. Plus, at the start of this year mental ages on the ers, it might be about rethinking roles In recent years, many businesses health was, for the first time, high up phone to your and teams to address factors such as have worked hard to support mental the agenda at the World Economic GP, only to be long working hours. health in the workplace and tackle Forum’s annual meeting in Davos. told that the stigma. And rightly so. But what’s next? To take investing next available BUILD BRILLIANT BUSINESSES Evidence is mounting that where in- in mental health to the next level, appointment is The size of the challenge means that vestments have been made to improve employers need practical guidance in a month’s no single business can do this alone. mental health, there is consistently a and support on what good practice More than 26m THE NEXT STEPS time? Push To make a lasting impact, companies positive return. looks like. working days But being reactive isn’t enough – it’s Doctor wants need to work together to share best The message is increasingly clear: To help with this, the City Mental were lost in time for businesses to move towards to fix this, by practice, and collaborate on changing looking after people’s mental health Health Alliance’s Thriving at Work 2017/18 due to health creation. enabling you business culture. is good for business. guide looks at the recommendations work-related This is about more than just inter- to book a Tackling this challenge with the made by the government-backed ill health vening when people become unwell. convenient slot same determination that we’ve seen in THE PROGRESS SO FAR Stevenson Farmer review, and pro- Creating health means making well- to speak to a recent years is vital to create businesses And things are changing. Mental vides a framework of suggested ac- being in the workplace a boardroom doctor through where people are valued, where they health is increasingly becoming a tions, interventions, and measures issue, and embedding health into your phone or can bring their whole selves to work, boardroom issue. We’ve also seen the for employers. business strategy. tablet. You can and where they tell their friends and positive impact of initiatives such as By using resources like this, organi- It requires a business-wide under- even order family that they go to work because it the Lord Mayor’s “This is Me” cam- sations can measure their progress standing that good mental health of prescriptions enhances their life beyond a salary. paign and the Mental Health at Work when it comes to implementing and employees is crucial for good decision- through the app. gateway, which provides businesses refining their own mental health and making at all levels, and therefore a £ Poppy Jaman is chief executive of the with resources, training and - wellbeing strategies. factor in upholding market integrity. City Mental Health Alliance. 20 OPINION MONDAY 13 MAY 2019 CITYAM.COM FORUM EDITED BY RACHEL CUNLIFFE LETTERS Tariffs are just the first shot TO THE EDITOR in the looming US-China war Robot partners [Re: Small businesses to be given artificial intelligence boost] The mayor’s announcement to support S A FRIEND of mine who talks say that they are stuck over Over time, this emerging middle businesses working with artificial works in higher maths put two basic procedural points. John class would make the developing intelligence (AI) is very welcome. It’s a it: “John, if America as an First, the Chinese negotiating Hulsman country they lived in more plural- great start towards increasing integer is present in every team insists that any trade conces- ist, less dictatorial, and often would understanding about the possibilities of AI A and machine learning, but the real value major foreign policy equa- sions will need to be achieved only lead to the country in question be- tion, and if after 75 years that inte- through regulatory and administra- coming a democracy itself. will come from collaboration. ger radically changes, then tive actions, not by changes to Chi- This was the fate that both De- At Digital Catapult, we see fast maturing everything changes”. nese law. Americans fear that these mocrats and Republicans assumed AI companies collaborating with other Donald Trump’s America is that concessions can easily be undone. would happily befall a miracu- businesses to enable testing, to help grow rarest of beasts: the strongest global Second, the Chinese negotiators lously-growing China. As such, their customer base, and to offer very power distrustful of the very global insist that the Trump administra- America would have a new partner frequently something specialised and order that it itself created. tion fully lift all tariffs on Chinese helping to manage the world – one unique to the market. This radical break with the imme- goods immediately, which is far that would be increasingly pro-US Many organisations – of all sizes – diate past is nowhere more appar- more quickly than the White and pluralistic, perhaps even even- overestimate the speed with which AI can ent than in the President’s House is comfortable with. tually democratic. As a result, every- be adopted and applied to their business, upending of the international trad- In both cases, the inconvenient one was pro-China. as well as underestimating the eventual ing order. truth is that the American team – Now, 13 years on, the skies have impact it will have. To avoid widespread Much as was the case over the US- badly burned over several decades grown exceedingly darker in Wash- disillusionment and unlock a sustainable, Mexico-Canada Free Trade Deal of negotiations with Beijing – sim- ington. China is seen instead as an economically profitable form of AI (USMCA), a recently negotiated up- ply does not trust the Chinese to increasingly powerful authoritar- development, we must continue to focus date of the North-American Free live up to any bargain. ian rival to US power, a Singapore on fostering collaboration to develop Trade Agreement, the President Enshrining the changes in law Politically, this game on steroids, and not a benign help- mutually beneficial solutions. seems to be using brinksmanship to and leaving at least some of the tar- mate for a gently declining US. Dr Jeremy Silver, chief executive, get the even more important Sino- iffs temporarily imposed on Beijing of diplomatic Ironically, it was no less an anti- Digital Catapult American trade deal over the line. are both way to maintain enough hardball works Trump figure than Democratic In the case of USMCA, the White leverage to ensure that the Chi- Senate minority leader Chuck House managed to diplomatically nese, this time, follow through on either way for the Schumer who last week urged the corner a recalcitrant Canada, their promises. Trump White House President to “stay tough on China”. BEST OF threatening to do a deal with a pli- Politically, this game of diplo- This portends that, while in the TWITTER ant Mexico alone. Unsurprisingly, matic hardball works either way short run the trade war between Ottawa quickly capitulated. for the Trump White House. the US and China will probably be Uber arrives at the New York Stock Trump has gone back to such Either the tough talk facilitates a worked out, it is the looming Cold Exchange at an initial price of brinkmanship in the homestretch deal – with the President able to amounts to the single biggest sea War between the two greatest pow- $45/share of talks with Beijing. After months gloat about his negotiating prowess change in foreign policy establish- ers in the world that deserves our @AaronKatersky of favourable noises, the White to his base – or it fails, with his ment thinking since my glory days increased attention. House abruptly switched tack a longstanding warnings about in Washington 13 years ago. Then, Risk on for the world, indeed. IPO valuations: week ago, with the President thun- China being borne out by such a both the Clinton and George W. Facebook: $115 billion dering that the talks were proceed- lack of success. Bush administrations largely £ Dr John C. Hulsman is president of Uber: $82 billion ing too slowly. In the latter case, “standing tall” bought into the sunny hypothesis of John C. Hulsman Enterprises, a Google: $31 billion As threatened, he raised tariffs on in the face of China is politically a Barrington Moore. prominent global political risk Lyft: $24 billion $200bn worth of Chinese imports to no-brainer, as both Republicans An influential twentieth-century consulting firm. He is a life member of Apple: $5.5 billion the US from 10 per cent to 25 per and Democrats embrace a highly Harvard professor of sociology, the Council on Foreign Relations, and Microsoft: $1.8 billion cent last Friday. pessimistic view of Beijing’s rise. Moore posited that as states became can be reached for speaking Amazon: $690 million Why the drastic change in mood In fact, the increasingly gloomy more prosperous, a middle class in- engagements and running war games : $434 million music? Those privy to the trade attitude to China from both parties evitably springs up. at chartwellspeakers.com. (numbers are inflation adjusted) @JonErlichman

Uber achieved many firsts, let’s look back: 1. broke a ton of laws 2. killed someone with an AI-powered London’s finance expertise is leading the robot 3. executive threatened reporters 4. can only realize its current valuation global charge towards a greener planet by firing all its drivers, replacing them with computers Happy Uber IPO day! @mims ACKLING climate change the Sao Paulo Stock Exchange. Stock Exchange, for instance, hosts presents an unprece- A common thread that ran Peter over 480 infrastructure-related com- Here are my thoughts on the dented challenge for us all throughout all my engagements Estlin panies operating in more than 65 #UberIPO: It’s part of the unicorn T– politicians, businesses was how a leading global financial countries. It is also responsible for bubble that is the byproduct of and individuals alike. hub like London can help Colom- nearly 40 per cent of all FX trading trillions of dollars worth of central It’s estimated that some $90 tril- bia, Brazil, and other emerging na- – that’s more than New York and bank liquidity. Unicorns in 2019 = lion will be needed globally by 2030 tions across the world to realise Tokyo combined. subprime mortgages in 2006. They’re to achieve international sustainable their economic ambitions. Our leadership on building the utter garbage that shouldn’t be development and climate objec- After all, this would create pros- green finance sector, plus the liq- touched with a 10 foot pole. tives, which is undoubtedly a perity and bring millions out of uidity and depth of experience @TheBubbleBubble daunting task. But it is also a sig- poverty, without coming at the ex- First, London is at the forefront of that we have in infrastructure fi- nificant opportunity. pense of our environment. shaping the burgeoning green fi- nance, put London in a unique po- UK Q1 #GDP data included welcome The UK’s financial and profes- This is a challenge which tran- nance sector for the future, as sition to tackle the challenges 0.5% q/q rise business #investment. sional services sector is rising to scends borders, and is faced by all demonstrated by the fact that we facing the Colombian and Brazil- Big picture is still that capex has this challenge, with City firms play- of us involved in a highly intercon- are the world’s largest issuer of ian economies, fostering sustain- stalled since the Leave vote (and ing a vital role in sharing their ex- nected global ecosystem. green bonds. We will be showcasing able growth and prosperity. arguably before then, when pertise and experience across the Sustainable development is quite this offer at the third Green Finance It is no surprise, then, that Presi- referendum was confirmed). But it is globe in fast-growing areas such as rightly the focus for Colombia and Summit, which will be held at dent Duque of Colombia has called likely to rebound if/when #Brexit green finance. Brazil, as they seek to create a last- Guildhall in on 2 July. London a key ally in the fight uncertainty lifts. Last week, I visited Colombia and ing legacy that will benefit future Not only that, but – secondly – we against climate change. @julianHjessop Brazil – not only two of our planet’s generations. And as ever, London’s are the largest asset management Together, we can build a global most biodiverse countries, but also spirit of innovation means that it is hub in Europe, managing £8 tril- economy in which infrastructure fi- “Labour must take on Nigel Farage’s two of Latin America’s largest uniquely placed to partner with the lion, more than the next three nance, and indeed all finance, is snake oil” says Jeremy Corbyn, as it’s economies. While I was there, I met likes of these nations to deliver such countries put together. green by default. becoming increasingly difficult to sell the governor of Colombia’s central a legacy. Finally, the strength and depth of his own. bank, and many other leaders, in- There are three main reasons that our expertise in infrastructure fi- £ Peter Estlin is the lord mayor of @haveigotnews cluding from Banco do Brasil and we are able to do this. nance is unparalleled – the London London CITYAM.COM MONDAY 13 MAY 2019 OPINION 21

WE WANT TO HEAR YOUR VIEWS › E: [email protected] COMMENT AT: cityam.com/forum :@cityam The future of justice depends on DEBATE fixing the forensic science crisis As ‘fintech’ becomes more mainstream, is the term ORENSIC science is a com- bullet to discovering the truth: get the pelling piece of the puzzle in Ruth evidence, and you solve the case. itself redundant? most crime dramas. We are fas- Morgan In reality, it’s a lot more complex. Fcinated by it, and rightly so – It’s not enough to be able to detect what science enables us to de- whose DNA is on a knife, for example. It’s true that the fintech revolution has tect has transformed how we recon- Our research has shown that it is pos- brought about positive business struct criminal events, whether using sible for us to find your DNA on a change, but to stay relevant in today’s digital information like phone data knife that you’ve never touched. modern business world, all financial YES and automated recognition technolo- What we really need to know is how organisations have had to harness the gies, or detecting DNA traces that and when your DNA was transferred power of technology. RHYS POWELL often go unnoticed. sis as more than a budgetary issue. onto that knife. Was it because you As such, it’s now almost impossible to And yet the field is in trouble. Ear- The integrity of the forensic science used that knife in a crime, or because define where general technology ends technology, regardless of their size or lier this month, the system is critical to the delivery of jus- you shook hands with the person who and fintech begins. sector, so by continually marking out Science and Technology Committee tice and public trust. did? Or did you use the knife days be- This isn’t the first time that we have “fintech” as a separate entity, we are published the findings of its inquiry And there’s one area of specific con- fore that crime even occurred? seen this line blur, of course. Digital actually creating a barrier to its into forensic science, setting out in cern that is often overlooked. Research is underway to help us in- marketing was previously viewed as a adoption. To stay on top, businesses no uncertain terms that the system is Research in forensic science has terpret what this kind of trace evi- separate entity to the wider marketing need to embrace technology in all its in crisis. been seriously under-resourced, re- dence means, but with such limited function. But now, the entire marketing forms, into every business process, and This isn’t the first report to raise ceiving less than 0.1 per cent of re- resources available, it isn’t happening function is digital, which means that leave the term fintech behind for good. concerns, but it is unique in address- search council funding in the last 10 at the scale or speed it needs to. And this distinction has disappeared. ing the forensic science system in its years. It is also widely misunder- until the implication of these gaps is All businesses stand to benefit from £ Rhys Powell is UK managing director entirety, from crime scene to court. It stood, with the result that the re- fully known, forensic science won’t artificial intelligence and advanced at EBO.ai. has determined that every part of the search that is funded is focused get the research funding that it so system needs urgent reform. almost exclusively on harnessing the desperately needs. As specialist adviser to the inquiry, I emerging capabilities of new tech- The last decade has seen many re- read more than 100 submissions of nologies to assist in the detection ports with many recommendations, While in most cases financial written evidence and met over 50 wit- and recovery of evidence. but little has been done. If we are to see technology has become mainstream, nesses in 21 evidence sessions. We must of course continue to do this crucial transformation of forensic with all financial institutions building It is clear that the UK has incredibly this, but we also need foundational re- science, the time for action is now. technology into their business NO dedicated, passionate and qualified search, so that we can understand Now that this new report is pub- processes, it’s important that we draw people in the police, forensic labs, what forensic science evidence actu- lished, my overall sense is one of hope. a distinction between incumbent ARUN SRIVASTAVA courts, and research, who work phe- ally means in each specific case. If the recommendations are acted on, institutions and fintechs. nomenally hard to ensure the quality This is a gap that has been hidden forensic science will be properly Since their inception, fintechs have traditionally slow market. Larger of forensic science. This isn’t about from view. In crime dramas, forensic equipped to ensure the delivery of jus- been shaking up the industry status institutions are no longer able to rest on pointing fingers. science is often portrayed as the silver tice, and safeguard public confidence quo. By ingraining technology in their their laurels. They need to reimagine But given how the justice system in the system. Lives and liberty are at operations from day one, fintechs have how they can match the services and shapes our society, the stakes are far stake – but we now have all the evi- set themselves apart from the processes of fintechs. Advances in too high to ignore the crisis. It is possible for us dence we need to solve this case. traditional market players – offering technology and legal changes are As well as calls for structural reform to find your DNA on customers a better, more innovative, encouraging new businesses offering and more accountable high-level lead- £ Professor Ruth Morgan is director of UCL user-friendly service. In doing so, they more innovative products. It would be a ership, the recommendations show a knife that you’ve Centre for the Forensic Sciences, and was have captured the imagination of disservice to fintechs to put them in the that what the forensic science really never touched specialist adviser to the House of Lords customers, changing perceptions of same category as financial institutions. needs across the board is funding. Science and Technology Committee inquiry what the world of finance could be. No one is a stranger to the times of into Forensic Science. She is on Twitter As a result, there is now a healthy level £ Arun Srivastava is a partner at austerity, but we should view this cri- @ProfRuthMorgan. of competition in what was a international law firm Paul Hastings.

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THE LORD MAYOR’S APPEAL

his is Me, facilitated by The Lord Chris Meakin, Mayor’s Appeal, is committed to T Barclays ending the stigma around mental My story: My mental health health by encouraging employees to share their personal experiences. Chris Meakin, Barclays, shares her story… and dealing with it in the right way. woman, young or old, in a junior or “As a female director with two young Getting the right help changed my life. I senior position – mental health is an children, I juggle a challenging work am now happier and healthier than I issue that we must all talk about.” and home life. In 2014 I got the balance have ever been. Dynamic working helps wrong and paid the price. I pushed me manage my work and home life. £ Barclays’ This is Me film gave myself to be everything to everyone Knowing that Barclays trusts me to do colleagues the permission to talk about because I didn’t want to let people my job in the best way for me and my mental health down. I was in denial about how I felt. I family makes such a difference. I want . didn’t want people to see that I was people to know that this can – and £ To find out how you can help struggling and I didn’t want to ask for does – happen to anyone. Man or #endthestigma this Mental Health help because I saw it as a sign of Awareness Week, visit our website weakness. www.thelordmayorsappeal.org/thisism It wasn’t until my doctor told me that e or follow us on Twitter @LMAppeal I was “days away from a stroke” that I realised that I needed help. I had burnt out physically, mentally and emotionally. I felt weak, desperate and I didn’t want to let a failure. My mental health had begun to have a very negative impact on my people down. I was marriage and those I loved. When I in denial about walked out of work in November 2014 I didn’t know if I would ever to work how I felt again. But it was the start of me coming to terms with my mental health 22 FEATURE MONDAY 13 MAY 2019 CITYAM.COM SPECIAL FEATURE NOT A BARBIE GIRL Katherine Denham finds out about one woman’s quest to change the gender-stereotyped toy and game industry

AN I be an astronaut if I’m a ankind, but children’s play is a good beauty ideals (in the 60s, “Slumber according to Tessa Trabue from cam- girl?” That was the question place to start when it comes to shift- Party Barbie” came with a diet book paign group Let Toys Be Toys. As she asked by Katy Alexander’s four- ing stereotypes. and some weighing scales set at a points out: “There remains a strong year-old daughter, Zabel. To bony 110lbs). gender divide when it comes to the C PINK-WASHED the New Jersey-born mother, Over recent years, manufacturer way toys are marketed to children.” this question came as a surprise. Alexander is not alone in her concern A kitchen playset Mattel has made efforts to bring the Even more worrying is research by Dr “Until then, I’d never really noticed about the unhelpful messages that doll into this century, for example, by Elizabeth Sweet, which found that toys that the characters in the space books children are exposed to through toys marketed to introducing “Engineering Barbie”. are far more gendered now than they she had been reading and the games and games. A 2017 global survey by ‘princesses’ sends Giving Barbie a career where women were 50 years ago, when sex discrimi- she had been playing were all white The Future is FeMale found that 61 per are woefully sparse is a step in the nation was more commonly accepted. men,” she tells me. “Without being cent of women and 46 per cent of men a message that right direction. But alas, Mattel man- According to Sweet, princess toys, able to relate to the characters, she believe that children should be raised aged to miss the mark by limiting Bar- which have become ubiquitous didn’t have the confidence to imagine as gender-neutral to protect against ar- this is not for boys bie to building domestic items like among girls today, were actually very herself doing those things.” bitrary gender boundaries. washing machines and clothes rails. rare before the 1990s. Unimpressed by what was available Despite the best efforts of entrepre- about adventure, and positioned in a Mattel has since launched its Robot- Certain retailers, such as John Lewis, in the shops, and keen to prove to her neurs like Alexander, parents are still segregated ‘boys’ aisle of the store. ics Engineer doll, which comes with have recently stopped explicitly cate- space-obsessed daughter that there limited when it comes to finding chil- Taken together there is a clear mes- its own laptop to encourage kids to gorising toys as being “for boys” or “for are plenty of female role models to be dren’s books and games with diverse sage that adventure and science are code, proving that progress is being girls”, while Let Toys Be Toys has per- inspired by, Alexander quite literally characters and storylines, while the not for girls.” made, albeit slowly. suaded some UK stores and book pub- went back to the drawing board. She availability of gender-neutral toys re- This might seem inconsequential “In her 60 years, Barbie in particular lishers to remove the gendered signs. began designing games and colouring mains poor. when children are small, but it’s has had over 200 careers, allowing chil- But there is still some way to go. “We books, drawing characters based on “There are limiting messages that clearly a problem if they are deterred dren to role-play a variety of aspira- would like to see toy packaging, cata- real-life scientists. manufacturers and retailers are still, from pursuing certain careers purely tional roles, including Beekeeper, logue images, and TV adverts featur- She has turned this quest for repre- too often, sending,” says Andrew Baze- because of their gender. And it’s not Robotics Engineer, and Pet Vet to name ing both boys and girls playing with sentation into a business, with the ley from women’s rights group the the fault of the parents, who rely on a few,” says Natasha Crookes from the the toys (like they do in real life) along aim of making it fun for both boys and Fawcett Society, pointing out that the stores to take them to the right place, British Toy and Hobby Association. with the use of a wider range of girls to learn about female scientists, way retailers market certain toys en- only to find aisles split by gender. Looking at the wider toy industry, colours in product packaging and ad- some of whom – particularly outside trenches gender stereotypes. Alexander tells me that by three, she argues that there is plenty of vertising,” says Trabue. of the western world – have been al- If you browse many mainstream toy children start to self-identify as a boy choice to empower both boys and girls. Children, she says, should not be put most entirely omitted from history. shops, you’ll still find pink-washed or a girl, soaking in cultural norms of “With 47,000 new toys introduced to off by labels indicating that a toy is not Calling her band of characters the “girls” sections that are rife with dolls, how they are “supposed” to behave. In- the UK market last year, there is a them – they should have the freedom “Remarkalbz”, Alexander has made make-up kits, and kitchen playsets. grained in us from such a young age, great range of toys, such as doctor or to choose toys that interest them, free sure that women, men, and people of It’s not that these types of toys are by the time we’re adults, we don’t re- science kits, which are a great way of from gender stereotypes. various races and physical abilities are bad in themselves, but retailers per- alise how our lives have been influ- inspiring children from a young age.” Going back to Alexander, her experi- included in the mix, giving each one sistently target one gender, reinforc- enced by this rigid way of thinking. ence shows how parents can become their own superpower, linked to their ing damaging stereotypes about what THE PRINCESS EFFECT desensitised to this issue – culture individual discoveries – a sort of amal- girls and boys should or should not do. IN A BARBIE WORLD However, with huge swathes of choice, conditions us to subconsciously accept gamation of sci-fi and history. “A kitchen playset is a great toy – we So in an era where gender equality has there is still an issue in how these toys that this is the way things are, with- The Top Trumps-style game (called all need to eat – but if it is decorated become a central concern, is the toy in- are sold and marketed. out considering that certain messages Top Quarkz) is sold for £9.95 on Ama- with unicorns or marketed to dustry moving in the right direction? You might think that we are coming could be damaging. Sometimes, it can zon and stocked in various shops ‘princesses’, with only girls on the box, Let’s look at Barbie – the iconic doll to the end of the ideology of pretty take a child to question the status quo around London, while Alexander has it sends a clear message that this is not that celebrated its sixtieth birthday princesses and macho action men, but for adults to try to challenge things. started using the characters as the for boys,” says Bazeley. last week, and which has frequently that’s not the case. Katy Alexander and her daughter basis for educational workshops. “The same goes for a child’s T-shirt come under fire for promoting un- The current pink-blue divide in the certainly did, but it’s time for the in- Her business is a small step for wom- that is covered in robots and slogans healthy, and biologically impossible, toy aisles actually began in the late 80s, dustry to follow suit. CITYAM.COM MONDAY 13 MAY 2019 FEATURE 23 MARKETING

E ALL know the old adage “sex sells” – the received wisdom that using sexual imagery and titillation can boost a brand and sell itsW products. But times have changed. Today, overt sexualisation in ads is rightly seen as a crude tactic, and mar- keters have changed their approach. Lynx body spray commercials no longer feature girls stripping off their clothes the moment a guy uses a de- odorant, and fewer scantily-clad women are being draped over car bon- nets. Ads that do use such brute-force techniques often get called out – re- member the backlash over Protein World’s “Beach Body Ready” posters that featured a stick-thin model in a bright yellow bikini? But sex as a strategy hasn’t gone away entirely. Instead, many advertisers are turning to more subtle approaches, using suggestion and innuendo to flog ordinary items. So is this subtler mod- ern use of sexuality actually effective? To find out more about how con- sumers respond to such tactics, I spoke to Shazia Ginai, head of business devel- opment at Neuro-Insight, which spe- cialises in using neuroscience to understand consumer behaviour. Neuro-Insight conducted a study into how viewers reacted to three sexually- suggestive ads. These were: Wrigley’s Extra “Time to Shine” ad, which features a half-naked teenaged boy being caught by his girl- friend’s parents; Lloyds Bank’s “The M Word”, where couples squirm and look awkward as if they’re trying to talk about sex, when they’re actually strug- gling to discuss money; and Original Source’s “Pack More In”, in which Made In Chelsea star Sam Thompson DOES SEX has his clothes stolen while showering, Sexy or just plain silly? From top to so uses shower gel foam to cover him- bottom, adverts for Lloyds Bank, self while he struts across a beach. Original Source, and Wrigley’s Extra Neuro-Insight measured which ads created the most engagement based on personal relevance. This is a key driver REALLY SELL? sense of personal relevance.” of whether or not something gets en- So what conclusions can we draw coded into our memory, which can be from all this? Basically, “sex sells” an indicator of future decision-making when its relevant to our own lives. We behaviour – in other words, if we re- Luke Graham asks if ads can risk being a bit risque can relate to feeling squeamish when member something, we’re more likely talking about taboo subjects or nearly to buy it. being caught in the act, and if that per- “It’s your brain going ‘do I need that women are conditioned to view sex. The Wrigley’s Extra ad had a more partner? That’s every guy’s worst night- sonal relevance is tied to a brand, stuff, do I want it?’” Ginai explains. Women tend to be more empathetic equal response across both genders. mare when they’re a teenager. That we’re more likely to remember it. “We also look at the emotional meas- and so go along with an ad’s emotional Ginai said that this is because viewers sense of relevance tugged at men’s Saying that, simply adding sex appeal ures, and some of those are drivers of narrative, whereas men can be more could better relate to the ad’s content. heartstrings.” to your ad won’t automatically make it what goes into memory.” flippant about suggestive content and “When we looked at personal rele- Ginai adds that, with sexually-sugges- more memorable, nor will men and The results of the study are interest- see it as entertainment. vance – the bit of your brain that fires tive advertising, content that feels rel- women respond to it equally. The gen- ing. One key finding was a gender di- “The Original Source ad was a great up when you see something of rele- evant to people’s lives is more likely to der stereotype that sex is more likely to vide among viewers: women expressed example of this,” she adds. “Engage- vance to you – that one felt more rele- get etched into their memory. stick in men’s minds is also a myth. higher levels of engagement across all ment levels were lower for men. vant to men. That makes sense. In the “Where you’ve got something that is This study also validates the indus- three ads – average engagement was a “That shows that the point of the other ads, getting your clothes stolen more tongue-in-cheek or far-fetched, try’s move from overt sexuality to- huge 19 per cent higher for women product message felt less relevant, so while on the beach probably isn’t rele- it’s entertaining, sure. But in terms of wards more suggestive content – on a than men for the Lloyds Bank advert. the suggestion of sex was not driving vant to most people, nor is sitting hav- driving action for a brand, if the neurological level, the latter may be Why the divide? Ginai argues that it anything for the brand in terms of get- ing a chat with your family about sex metaphor is too far removed from real- more successful than the former. might be down to how men and ting the message across.” or money. But getting caught with your ity, it’s not going to have that same “Sex sells” is trickier than it sounds. Why did Lush, Apple and Wetherspoons quit Twitter?

APPING into a dissatisfaction fits its brand, its target audience, and Twitter page is unique. Here, clients connecting with those who are own use of social media, and may feel with social media, cosmetics taps into a broader community of are met with an empty feed and the disillusioned with social media, and threatened by these controversial firm Lush recently announced people fed up with social media. message: “Privacy. That’s iPhone”. communicating that it is not afraid to tactics, but Lush, Apple, and that it would move away from However, Lush’s strategy is not a Like Lush, challenging social media be different. And for Wetherspoons, Wetherspoons want to change the it, justifying its decision by one-size-fits-all solution. Budget pub is an advertising strategy in itself. For the strategy emphasises face-to-face easy convenience of the online world. Tdrawing attention to the financial and chain Wetherspoons also rejected a brand like Apple with huge global interaction, while also distancing the By challenging the assumption that ethical cost of using social media. social media in April last year. With its reach, this kind of risky strategy brand from poor feedback. brands need a social media presence, The move marks Lush as the latest social channels populated by unhappy works well. It speaks to consumers And while each brand has a these three are disrupting the status brand to take a new approach clients (found via #wetherspoons), the who feel frustrated and betrayed by different reason, they all are rejecting quo as they forge a new direction. online. It’s a global brand, whose brand tried to distance itself from this social media’s invasive data collection social media as the default for user Given the risks of using social environmentally-conscious products negativity by deleting its presence, and disregard for privacy. engagement. media – one bad tweet can seriously appeal to an ethically-aware focusing more on legacy media and Lush, Apple, and Wetherspoons all Is this a sound strategy? Some users harm a brand’s reputation – we may consumer. Its “switching up social” word-of-mouth in a bid to encourage reject social media for different may be confused by this approach see other businesses follow in their campaign fits with its independently- customers to voice complaints in reasons and with different impact. and express concerns about footsteps. minded image and targets consumers person rather than online. For Lush, it is about engaging users alienation and disengagement. who identify with Lush’s fashionably Apple, conversely, has an active in different ways, rather than on one However, such concerns point to a £Dr Zoetanya Sujon is acting programme rebellious character. social media strategy, engaging fans channel. For Apple, the rejection of social-media-as-default mentality. director in communications and media at So Lush’s anti-social media decision on Facebook and Instagram. But its social media breaks the norm, Users don’t want to question their London College of Communication. 24 LIFE&STYLE MONDAY 13 MAY 2019 CITYAM.COM TRAVEL SHE SELLS SEYCHELLES HOURS IN... GIRONA, SPAIN

WHERE TO STAY Hotel Camiral at PGA Catalunya Resort, is a contemporary 5-star hotel with a focus on wellbeing. There’s a 25m pool set in beautifully landscaped gardens, yoga classes and a Catalan influenced restaurant, 1477, which is delightful. Visit hotelcamiral.com

WHERE TO GO Catedral de Santa María de Girona is the most impressive building in town. Constructed between the 11th and 18th centuries, it showcases a mix of architectural styles including a Romanesque cloister and a Gothic nave. Visit catedraldegirona.org

which has some of the most exciting front of me, his telescopic neck and tail, giant tortoises bare the gashes Laura Ivill on diving in the world. bright eyes searching for the contents and scars of age. Living in paradise re- My island-hopping is by scheduled of my picnic box. George is almost as ally does have its hazards. how to get the flights, which are plentiful, but not big as my bicycle, a friendly giant. He’s cheap. The Seychelles remains, by de- grazing on the edge of the forest, heav- £ Villas sleeping two at Four Seasons best out of this sign, a luxury holiday destination, ing his mighty shell around, sprightly Resort Seychelles at Desroches Island start with the highest GDP in Africa. It’s no for his hundred-plus years. Further on from 1,295 EUR (around £1,150) per night, tropical paradise surprise that Will and Kate honey- in the tortoise sanctuary, the conser- half board (fourseasons.com). BA flies from mooned on North Island. vationists have singled out likely London Heathrow to Mahé twice a week; BEST FOR GIANT TORTOISES I’m here to check out some of the mates for breeding, and I spend all the returns from £654 (ba.com). WHERE TO DRINK Biking around the flat sandy paths of best places to stay but also to track time in the world taking pictures and One of the most trendy coffee houses in Desroches island in the Indian Ocean, down the longest-living creatures on BEST FOR BIRDLIFE the city, La Fabrica has a cycling theme with only birds, turtles and tortoises earth: the indigenous Aldabra giant The owners of Bird Island can trace with old bicycles on the wall and serves for company, I happen across a warn- tortoise, which can live for more than their Seychellois roots back to the In- excellent organic coffees, and ing sign nailed to a palm tree on the 200 years. dian Ocean explorers. Opened for mouthwateringly good homemade edge of the new Four Seasons resort. Twenty or so subspecies once inhab- guests in 1973 by Guy and Marie-France cakes. Visit lafabricagirona.com “Beware of falling coconuts”. Just mo- ited this Indian Ocean archipelago, Savy, the eco island is now run by their ments later I encounter a similarly but they were easy prey for the sailors George’s telescopic sons, Nick and Alex. It’s very much a rustic sign bashed into a post in the in the age of discovery, who tied them neck and bright back-to-nature experience, and not the sand. “Airstrip ahead. Look out for to their decks and chopped them up typical luxury resort – the 24 chalets low-flying aircraft.” Such are the haz- for food. On previous visits I've seen eyes are searching are very plain inside, and meals are at ards of holidaying in paradise. them in pens, but I want to see them set times – yet people flock here year Thanks to the direct British Airways in the wild. On Desroches, not only do for the contents of round for the snorkling, kayaking and flights from Heathrow to Mahé (in the individuals wander freely, but the my picnic box swimming, for the dark skies, pristine ten and a half hours), paradise is island naturalists collect their hatch- beaches, ground-nesting birds, flocks closer than ever. Development is per- lings to save them from the black flying overhead, and the free-roaming mitted only to the height of a palm market. watching them enjoying leaves for giant tortoises. tree, and nature-loving travellers From the Four Seasons (the only re- breakfast. It’s a small island, easily explored in come for the birdlife, the sealife, the sort on the island, with spacious The Creole village is where Drilling a day (there are no bikes or roads). I uncrowded white-sand beaches, hikes beachfront villas and private gardens), hangs out (so called because of the walked barefoot along the miles of WHERE TO EAT in the rainforest and island-to-island I cycle along the coast to the tortoise drill-bit-sized holes in his shell, caused white sand beach while the ocean Hidden in the Old Town, La Penyora is a sailing, whether that’s by private sanctuary. If luxury travel means any- by old infections). As I come across surged and a cacophony of half a mil- cross between an art gallery and a yacht or inter-island ferries. Leonard thing, it means having wildlife all to more and more giant tortoises (one lion breeding pairs of sooty terns restaurant. Chef Louis Llamas Pahissa DiCaprio is a fan, and his conserva- yourself, and I also roam free and ex- has a crater in its shell, another ter- screeched overhead. There’s no electric cooks Mediterranean and international tion foundation recently lavished mil- plore the white sand beaches and rific scratch marks) I realise that, just light, and your chalet is open to the dishes using fresh, local produce. Visit lions of dollars on the Seychelles to broad-leaf forest in peace. as whale-watchers can identify hump- night air. In the evening I sat on the restaurantlapenyora.com protect the marine environment, I hit the brakes. George is right in backs by the scars and shape of the beach watching the slow sunset as CITYAM.COM MONDAY 13 MAY 2019 LIFE&STYLE 25

crabs raced along the sand and the sky tals and singing bowls, in the privacy Awards for the third time. turned to russet and gold. of the open spa villa with the sounds Situated among precious mangrove Bird Island is the home of Esmeralda, of the birds and the ocean blending habitat (a marine national park) and said to be the largest Aldabra tortoise in with the music. with two stunning beaches, Con- the world (who turns out to be male). So All accommodation villas have but- stance Ephelia also has Green Globe many free-roaming giant tortoises are lers, who take care of everything you eco status. The same ceremony here that it would be easy to trip over want to see or do, such as heading out awarded it Seychelles’ Leading Family them at night. Esmeralda likes to hang on speedboat trips to the nearby inner Resort, and it’s easy to see why. out on the airstrip, where there’s lots of islands of Praslin, La Digue and the Private transfers from Mahé airport juicy grass. If the daily flight is due, must-see conservation island of Aride, mean getting your family to the resort someone has to try to shoo him clear – which you explore with a resident is easy. Luxurious, low-rise and large not an easy job when you weigh 300kg. ranger. means there’s plenty on offer to keep Zil Pasyon itself has been painstak- all the family entertained, yet you’re £ Bird Island bungalows sleeping two start ingly constructed around granitic never hemmed in. from £297 per night full board. Return daily boulders many millions of years old, The complimentary kids club has ac- scheduled flights from Mahé international forming spectacular monoliths. Six tivities for ages 4-11 while adults hit airport cost £339pp Senses commissioned the Indiana the spa, and the additional babysit- Jones of the natural world, ecologist ting service means mum and dad can BEST FOR SPA Steve Hill, to return the resort’s flora enjoy time together trying out all the (AND LOTS BESIDES) and fauna to its natural state and it’s classy dining options under the stars. The beautiful private island of Felicité like a garden of Eden. No giant tor- I tucked into flavours of southeast is within a speedboat ride of the inner toises here yet, but work on the rest of Asia at the toes-in-the-sand Adam and islands, and home to one exclusive re- the island’s national park is hoped for. Eve restaurant, and dined like a queen sort, Six Senses Zil Pasyon. It was a feat on the Japanese tasting menu at of architectural engineering (by British £ Six Senses Zil Pasyon villas start from Cyann, with a flight of sake. firm Studio RHE) because the spa of €1,364 (£1,212) per night, B&B The resort has the Seychelles’ only five treatment villas (plus sauna, (sixsenses.com). Transfers from Mahe are by zip line and kids can feed the giant tor- steam, pool, deck and yoga pavilion) scheduled ferry via Praslin island or by toises in their pen, but you will also has been built on a secluded promon- chartered helicopter want to spend time kayaking and pad- tory facing out to the ocean. Each villa dleboarding around the mangroves. is unique, and each of the correspon- BEST FOR FAMILY ACTIVITIES ding five “spa journeys” has been ex- Constance Hotel & Resorts may have £ Turquoise Holidays has family holidays pertly created by Terre D’Afrique, the largest resort in the Seychelles, at Constance Ephelia from £7,390 with whether that’s Ocean, Floating, Na- Constance Ephelia, but it still claims flights and private airport transfers (01494 ture, Rock or Cave. The two-hour Cave some of the highest eco credentials. It 678400; turquoiseholidays.co.uk. More Journey was a delicious mix of scrubs, was awarded Indian Ocean Leading details about Constance Ephelia at massage, facial and rituals using crys- Green Resort in 2018’s World Travel constancehotels.com 26 SPORT MONDAY 13 MAY 2019 CITYAM.COM SPORT BEST In the world’s top league, Man City proved they’re still OF untouchable. By THE BEST Frank Dalleres

HE MIDWEEK may have be- longed to Liverpool and Tot- tenham, but the season is TManchester City’s. Pep Guardiola’s team yesterday issued a timely reminder to the Pre- mier League that they remain the best in the land, becoming the first to retain the trophy since 2009 with a 4-1 final-day win at Brighton. And at the close of a week in which Eng- land’s clubs made a compelling case that they should be considered the current strongest in the world, City proved beyond doubt that they are the best of the best. In the end there was nothing to match the extraordinary drama of Liv- erpool and Tottenham’s Champions League comebacks against Barcelona and Ajax just days earlier. How could there be? Liverpool kept up their side of the bargain, taking an early lead in a 2-0 win over Wolves to go top of the table momentarily. But while City fell behind in the league for the first time since January to a Glenn Murray header, it lasted all of a minute and goals from Sergio Aguero – a specialist in these games – and Aymeric Laporte had them safely NEW STANDARDS on the cost of four draws in the space the former Barcelona and Bayern Mu- in front by half-time. Anfield nostrils had scented of six games between late January and nich manager’s eighth league title in Instead we got an archetypal another miracle when early March, but they have turned a his last 10 seasons. City will likely display of City’s controlled news of Murray’s goal 25-point chasm with City into a sin- complete a domestic treble on Satur- excellence; a fitting final reached Merseyside, 22 gle-point gap in 12 months and will day by winning the FA Cup. If they do Goals scored by Mane, Salah and act in a title race that with Liverpool al- Aubameyang to share Golden Boot begin the next campaign as their so, it will be Guardiola’s fifth season pushed them to their lim- ready one up most feared rivals. of lifting at least three trophies. There its. Further goals in the through Sadio The truth is that City and Guardiola is no shame whatsoever in being sec- second half from Riyad Mane – the first of have set new standards. They raised ond to them. Mahrez and Ilkay Gundo- his two goals, tak- * the bar with a record breaking season City’s challenge now is to preside gan, both strikes expertly ing his top-flight Pierre-Emerick Aubameyang. Unlike last year, reaching 100 points, and over an era of dominance to rival that placed past Mat Ryan tally to 22 and Barca, City refused to buckle, how- only took two fewer this time. This is of their neighbours. When Manches- from the D of Brighton’s ensuring he ever, and Jurgen Klopp’s team instead ter United retained the title a decade penalty area, ensured they kept shared the receive the dubious honour of being ago it was their third championship their noses in front of Liverpool. Golden Boot the Premier League’s best runners-up, FINAL TOP SIX in a row and seventh in 11 years. TEAM PLD W D L F A PTS The final margin of victory was with team- following their record-breaking Man City 38 32 2 4 95 23 98 There is also the Champions League; just one point, the same gap mate Mo- points haul of 97. Liverpool 38 30 7 1 89 22 97 the prize City crave most and that that City have resolutely pre- hamed Salah Liverpool needn’t wallow. They have Chelsea 38 21 9 8 63 39 72 continues to elude them and Guardi- served since the first weekend and Arsenal’s a second successive Champions Tottenham 38 23 2 13 67 39 71 ola since his departure from Spain. in March; incredibly, both League final to look forward to and Arsenal 38 21 7 10 72 51 70 All that is for the coming weeks and teams won every single game Liverpool fell could finish the season as European Man Utd 38 19 9 10 65 54 66 months; right now they are the best after that. one point short champions. In time Klopp may reflect of the best and that is enough. Pochettino aiming to make history with Tottenham Spurs boss is the campaign. South Stand to boom out the fre- alise what we achieved today – top reflected. “The way that we handled Liverpool now await in the Champi- quent “Pochettino is ” refrain four and the final of Champions everything. We feel more than toast of the town ons League final while yesterday’s and it was only Dier’s opener which League. It might take time but I proud. Football is about taking risks, 2-2 draw with Everton ensured cut it short. The Spurs coach re- think people will realise.” being brave, working hard and being after sun-soaked fourth place in the Premier League. mained calm throughout, leaving Finishing the campaign inside a positive in a difficult moment. When With Chelsea held to a 0-0 draw at the touchline prowling to his op- buzzing new stadium, it was easy a lot of situations happened in the league conclusion, Leicester, the result represented a posite number Marco Silva to forget the trials and tribu- season we could have given up, but missed opportunity to grab third and lapping up the adula- lations Pochettino has our strength was to fight.” writes place at the last – and yet watching tion from his seat. been forced to work With the domestic campaign done, Felix Keith on you wouldn’t have known it. under, with the move-in the exciting countdown to Madrid Apart from a manic three-minute PROUD on 1 June begins. HESE are heady days for Mauri- second-half spell in which goals from Once the game was Mauricio Pochettino has “Now is about focusing on working Tcio Pochettino. After a dismal Theo Walcott and Cenk Tosun punc- over, the lap of appre- been at Spurs for nearly hard, being clever with our plan, run of seven defeats in 11 Pre- tured the mood momentarily, there ciation in front a near- five years how we are going to handle the play- mier League games threatened to de- was a party atmosphere in - full stadium showed ers, to arrive in the best condition in rail all Tottenham’s good work in the shine-soaked Tottenham Hostpur Sta- the reverence Spurs fans delay forcing a pro- the final to make history,” Pochet- first half of the season, one game in dium. have for their manager, longed stay at Wembley. tino said. midweek changed everything. And while Moura may be the man Pochettino strolling around Given that came amid a con- “We are making history, but if we Lucas Moura’s hat-trick in Amster- of the moment, it was Pochettino with a wide grin on his face text of no signings in the last win we are going to write history and dam on Wednesday turned the nor- who the majority of the 60,124 fans while he was serenaded from the two transfer windows, Pochettino’s change the perception of this amaz- mally reserved Argentinian into an were cheering for in between cele- stands. measured, reassuring leadership has ing club. The club, the fans – we all overwhelmed, passionate and tearful brating goals from Eric Dier and “We are so proud. It’s our best sea- provided an important constant for deserve to be focused on how we can one, simultaneously transforming Christian Eriksen. son after five seasons and I am so chairman Daniel Levy. win the final. That is the only objec- the complexion of Spurs’ 2018-19 It took just three minutes for the happy,” he said afterwards. “To re- “Always we were very positive,” he tive.” CITYAM.COM MONDAY 13 MAY 2019 SPORT 27

CHELSEA AND TOTTENHAM SPORT DIGEST PROCESSION Hamilton wins in Spain as Mercedes’ run continues SECURE TOP FOUR PLACES £ Chelsea and Tottenham both drew Lancashire to book their place at on the final day of the season to seal Lord’s. Gareth Berg (5-26) helped bowl top four places in the Premier League Lancashire out for 241 before Riley yesterday. Chelsea were held to a 0-0 Rossouw (85) and James Vince (79) stalemate at Leicester, but Spurs could saw Hampshire home on 245-6. They not take advantage, as a 2-2 draw will face on 25 May after against Everton saw them finish they thrashed Nottinghamshire by 115 fourth. Pierre-Emerick Aubameyang runs. The away side piled on 337 scored twice to claim a tie of the thanks to Peter Trego (73) and Azhar golden boot as Arsenal concluded the Ali (72) before bowling Notts out for campaign with a 3-1 victory over 222 in just 38.2 overs. Burnley, but Manchester United’s miserable run continued with a 2-0 KINHULT PIPS WALLACE TO home defeat by relegated Cardiff. TITLE Crystal Palace enjoyed an entertaining £ Sweden’s Marcus Kinhult claimed a 5-3 win over Bournemouth, Fulham maiden European Tour title yesterday were beaten 4-0 at home by by beating England’s at Newcastle, West Ham overcame the final hole of the British Masters. Watford 4-1 while Southampton drew Kinhult sunk a 10-foot birdie at the 1-1 with bottom side Huddersfield. 18th to clinch it on 16 under-par after Wallace missed a similar chance. GOODE HAILS BEST EVER and Robert MacIntyre SARACENS PERFORMANCE finished tied in second on 15 under- £ Alex Goode says Saracens’ second- par with Wallace after shooting rounds half performance in Saturday’s of 66 at Hillside Golf Club in . Champions Cup win over Leinster was “This game is so weird, it’s small the team’s best ever. Goode was margins,” said Kinhult. “I’ve been named European Player of the Year waiting for this moment for 20 years.” after helping Sarries to a 20-10 victory – their third title in four years. “It’s a DOMINANT DJOKOVIC TOO special team,” he told the BBC. “The MUCH FOR TSITSIPAS second half was our best performance £ World No1 Novak Djokovic beat in any game I’ve known.” Goode has Stefanos Tsitsipas in straight sets to won 21 caps for England, but has been win the Madrid Open yesterday. repeatedly overlooked by head coach Djokovic overcame the Greek 20-year- Eddie Jones and has not represented old 6-3, 6-4 in one hour and 32 them since 2016. minutes to earn a record-equalling 33rd Masters 1000 title. Tsitsipas did HANTS TO PLAY SOMERSET not have the power to break the Serb Britain’s Lewis Hamilton won the Spanish Grand Prix yesterday to continue Mercedes’ dominant start to the Formula One season. Hamilton IN ONE-DAY CUP FINAL after beating home favourite Rafael overtook team-mate Valtteri Bottas into the first corner and comfortably held on to give Mercedes a fifth straight one-two. Red Bull’s Max £ Defending champions Hampshire Nadal in the semi-final. “This is a very Verstappen claimed third place, ahead the once again disappointing Ferraris of Sebastian Vettel and Charles Leclerc. “I have to put it down to will play Somerset in the One-Day Cup important win for me, especially for this incredible team,” said Hamilton. “This is history in the making to have five one-twos. I’m proud of that and of everyone’s hard work.” final later this month after beating my confidence,” said Djokovic.

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