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MONDAY 3 FEBRUARY 2020 ISSUE 3,547 CITYAM.COM FREE

CHINA RESPONDS Injection of OZ MODEL ON cash aims to calm market fears TABLE FOR EU TRADE DEAL ANNA MENIN hoping for a tighter trading bloc’s. Chancellor Sajid Javid has sug- relationship in services. The future of gested financial services’ trade with @annafmenin financial services is expected to be a the EU should be on the “outcome- BORIS Johnson will today fire the key battleground in negotiations, with based” equivalence of rules. starting gun on trade negotiations UK firms’ access to European markets “While the future UK-EU relationship with the European Union, with the likely to be at the centre of horse-trad- negotiations begin with a shared rule- government floating the idea of a ing over fishing rights and a host of book already in place, any agreement looser Australian-style deal if a more other post-Brexit arrangements. reached will need to be clear about comprehensive arrangement cannot Johnson will be making clear that how differences that may emerge over be agreed. any future arrangements will only time will be managed,” said Miles In a speech today the prime minister address trade issues. Celic, head of The City UK. will say the UK is aiming to negotiate a “There is no need [to accept] EU rules “It must also be based on transparen- Canada-style free trade deal, “but in on competition policy, subsidies, social cy and constructive regulatory and the very unlikely event that we do not protection, the environment or any- supervisory cooperation for the benefit ANGHARAD CARRICK trade war with the US. Cities in the succeed, then our trade will have to be thing similar, any more than the EU of customers and businesses across country, including the capital Beijing based on our existing withdrawal should be obliged to accept UK rules,” Europe,” he added. @angharadcarrick (pictured), remain quiet. agreement with the EU”. he will say. Foreign secretary Dominic Raab yes- CHINA will pump 150bn yuan Global markets were hit last week The UK and EU have until the transi- Although business bodies have lob- terday struck a bullish tone in an inter- (£16.3bn) into its economy today to as the virus infected more countries, tion period ends in December to reach bied for any future UK-EU trade deal to view with Sky News. help protect it from the impact of the including Britain, which confirmed a trade deal. ensure near-frictionless trade in goods The “issue of alignment” is “not even coronavirus outbreak. two cases in York last Friday. While a Canada-style agreement and services across the channel, in the negotiating room”, he said, Ahead of markets re-opening after The FTSE 100 index closed 1.30 per would allow tariff- and quota-free trade Johnson will today suggest he will adding that agreeing to such an deal the Lunar New Year, China’s central cent lower on Friday to 7,286.01. On in goods, under the existing withdraw- accept checks at the border if he would “defeat the point of Brexit”. bank said yesterday it had taken the Wall Street, the Dow Jones index al agreement the UK and EU would cannot secure a Canada-style deal. The EU will today lay out its mandate decision to maintain liquidity in the slumped 2.09 per cent to 28,256.03. effectively trade on World Trade The political declaration agreed in for negotiations, in which it is banking system and stabilise the The S&P 500 and the Nasdaq, saw Organization terms, with the possibili- October states that Britain should be expected to call for the continued currency market. losses of 1.77 per cent and 1.59 per ty of side deals on specific sectors. able to access the EU’s financial mar- involvement of EU institutions as The virus risks worsening a cent respectively. Such an arrangement, a so-called kets under a “third-party equivalence oversight bodies to any trade agree- slowdown in China’s economy that is Australia-style deal, would have serious system”, under which Britain’s regula- ment — a position the UK government already burdened by tariffs from its £ THE CITY VIEW: P2 ramifications for the City, with many tions are deemed to be in line with the is said to believe is untenable.

FTSE 100 ▼ 7,286.01 -95.95 FTSE 250 ▼ 21,143.49 -148.39 DOW ▼ 28,256.03 -603.41 NASDAQ ▼ 9,150.94 -148.00 £/$ ▲ 1.318 +0.007 £/€ ▲ 1.190 +0.002 €/$ ▲ 1.108 +0.005 02 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM

STREATHAM SHOOTING Man shot dead by police after stabbing in south London was released from prison days before incident THE CITY VIEW All eyes on China ahead of markets reopening

HEN China’s financial markets plunged into crisis in the late summer of 2015, the authorities in Beijing were Wleft panicking. Having encouraged tens of millions of their citizens to invest in the stock market, they were unprepared for the consequences of a mass sell-off. As millions of small investors began to offload shares, the government responded with public information campaigns promoting the benefits of further investment. It didn’t work, and with the Shanghai Composite tumbling into bear market territory an extraordinary array of measures were implemented. Large shareholders were banned from selling stocks for six months, hedge funds were corralled into buying up shares and the police were dispatched to round up shortsellers. Journalists, market SUDESH Amman, 20, was named late last night as the attacker shot dead by police in Streatham yesterday afternoon, having stabbed four people in a terrorism-related incident. It emerged that Amman had been released from prison just days earlier, commentators and traders were also detained, accused of having served only half of a prison sentence of three years and four months for terror offences. He was under active police spreading panic and surveillance at the time of the attack, which left three injured and one person in a life-threatening condition. misinformation. Some were even paraded on state TV, confessing to their role in adding to market volatility. It A bumpy opening was a dramatic and sobering reminder of what happens is expected Parents urged to rethink when the laws of market economics come up against the will of authoritarian regimes. This is worth reflecting on now, as Beijing once again readies itself to confront economic uncertainty and market shocks. apprenticeship schemes Having extended the Lunar New Year holiday in a bid to contain the spread of coronavirus, Chinese markets are back in business this week, with a bumpy opening expected. The central bank will ANGHARAD CARRICK for advice about their futures, it’s Business Leadership Team have today pump an unprecedented amount of money into the market, with incredibly daunting.” launched a report revealing that mil- tens of billions of dollars made available to increase bank lending. @angharadcarrick He added: “But I know that when I’m lions of pounds of funds remain In addition, banks will be encouraged not to call in loans made to EDUCATION secretary Gavin asked for help by my children I will unused and new starts for 16 to 18- Williamson has urged parents to move absolutely encourage them to year-olds have fallen since the levy was struggling firms, rules on banks’ reserve requirements will be on from “outdated” stereotypes of consider an apprenticeship.” introduced. relaxed, listed companies will be allowed to delay their reporting apprenticeships. Nearly half (48 per cent) of parents “Many firms want to take on more of first-quarter financials and a cap on the percentage of equities A new survey by the website surveyed said they were not worried apprentices but are hamstrung by a allowed to be held by insurers will also be raised. All of this was Mumsnet found that too many about the future earning potential of needlessly complex and inflexible sys- parents are unaware of the range their child should they choose an tem”, said Jasmine Whitbread, chief put in place ahead of the market open, but already analysts are of opportunities apprenticeships can apprenticeship. However, 45 per cent executive of London First. debating the likely efficacy of such measures. One analyst at offer their children. of parents think apprenticeships are “With skills shortages already biting, Swissquote Bank told Bloomberg the plan “may look like trying to According to the research, published not valued as highly as a university and likely to be worsened by changes counter a tsunami with shovels”. When Chinese markets crashed today to coincide with National degree by the country’s top employers. to the immigration system, it’s vital Apprenticeship Week, over 60 per cent Mumsnet founder Justine Roberts the government urgently takes action in 2015, the Shanghai shockwave wiped more than £1 trillion off of parents of children aged 13 to 18 said: “Some of our users are not very to reboot the system.” the value of listed companies around the world, so markets in said they were concerned their child confident about explaining the oppor- The Federation of Small Businesses is China this week will be watched even more closely than usual. would be “making the tea” if they tunities on offer, and in some cases also calling on the government to chose the apprenticeship route. perhaps haven’t yet fully understood secure the long-term future of appren- The virus has whipped up fear across the region. Now we shall see “This shows that outdated views are the range of qualifications and the ticeships. National chair Mike Cherry if that fear will be transmitted via global markets. holding young people back from pur- doors they can open with employers.” said: “The government pledged during suing their dream career,” Williamson Business groups are calling for the General Election campaign that said. “Every parent wants the best for reform to the current apprenticeship they would improve the apprentice- Follow us on Twitter @cityam their children and when they ask you levy. London First and the North West ship levy and now is the time to act.”

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL CREDIT SUISSE FREEZES WHAT THE RAAB REBUKES TUSK FOR BANK OF ENGLAND IN HUNT BOEING’S TROUBLES CREATE INVESTMENT BANK BONUSES OTHER COMMENTS ON SCOTLAND FOR ECO-FRIENDLY TAXI FIRM HEADWIND FOR US ECONOMY Credit Suisse has frozen its investment Dominic Raab has rebuked former head The Bank of England is planning to Boeing’s halt in production of the 737 bank bonus pool for the second year PAPERS SAY of the European Council Donald Tusk spend up to £700,000 on green taxis just Max jetliner could reduce first-quarter running after a surge in trading revenue for making the “irresponsible” weeks after embarrassing revelations US gross domestic product by half a in 2019 was offset by big declines in its THIS suggestion that the EU would welcome about its travel expenses. An Official percentage point, and second-quarter advisory and capital markets business. an application for membership from an Journal advertisement shows the output could also take a hit, according The Swiss bank’s overall bonus pool for MORNING independent Scotland. central bank is hunting for a firm to to at least three leading economists. last year will stay level at about provide a 24/7 taxi service for officials SFr3.2bn (£2.5bn) as the board tries to KEIR STARMER PLEDGES TAX and other staff over the next three years NEW IRAQI PRIME MINISTER balance a strong increase in group net RAISE FOR HIGH EARNERS FACES FRESH PROTESTS income with a falling share price in Labour leadership frontrunner Sir Keir SOFTBANK HIRES UK TEAM Protesters in Iraq yesterday denounced recent years, according to people with Starmer has signalled his intention to FOR PUSH INTO ROBOTICS the appointment of a former knowledge of the decision. retain the party’s radicalism by signing Softbank has set up a UK arm of its communications minister as the costs to be given more weight in the up to shadow chancellor John robotics business to boost sales of its country’s new premier after months of ECB URGED TO LEND WEIGHT way inflation is measured. The policy McDonnell’s plan to increase tax for robots. Softbank Robotics, part of the political deadlock, calling him Iran’s TO HOUSING IN INFLATION maker is looking for ways to achieve its those earning more than £80,000 a year. Japanese technology giant, has hired choice and saying he is little different The chief economist of the European target as the Bank embarks on a He also said he would reverse the Tory former IBM Watson executive Stefano from the predecessor they forced to Central Bank has called for housing strategic review. cuts to corporation tax. Bensi as its operations chief. step down. CITYAM.COM MONDAY 3 FEBRUARY 2020 NEWS 03 Audit regulation British diplomats ordered to make immediate break with old EU allies pressure leads JESS CLARK country”, the Sunday Times policy positions”. reported. In the telegram to UK overseas @jclarkjourno According to a leaked document, missions sent last week, he added BRITISH diplomats have reportedly Raab said diplomats should not aim that “we do not accept that the EU been ordered to make a clean break to “seek residual influence” with EU can prevent us from speaking or with their EU counterparts following members. Raab said Britain “should clear our interventions” if the UK to resignations the UK’s exit from the bloc. not be shy” to “disapply EU foreign has different foreign policy stances Foreign secretary Dominic Raab during the transition period. ordered diplomats to sit apart from It follows City A.M’s revelation last JESS CLARK in its finances. their former EU allies at Britain to ‘take its flag’ at WTO meet month that the UK would abandon KPMG could face legal action over its international events and adopt a the EU bloc and sit beside the US at @jclarkjourno before end of EU transition period audit of Goals Soccer Centres, which stance as a “confident independent The move will see the UK sit next WTO meetings. EXCLUSIVE first time the country will not have sat as part of the trading bloc in 40 to the US, by virtue of the THE NUMBER of audit firms to resign entered administration last year fol- CATHERINE NEILAN b i l t i meeting from jobs jumped last year as the sec- lowing the discovery of a “substantial tor has come under increasing regula- misdeclaration of VAT”. The audit tory pressure. firm was also criticised for giving Resignations have risen 21 per cent Carillion a clean bill of health before to 229 in 2018/19, up from 190 the pre- it collapsed in 2018. vious year, according to the latest There have been calls for the Big research by Thomson Reuters. Four accountancy firms — KPMG, The spike in resignations comes as PwC, Deloitte and EY — to spin off audit companies are increasingly in their audit businesses to reduce the spotlight following a string of potential conflicts of interest. high-profile corporate collapses and Brian Peccarelli, co-chief operating accounting errors. officer at Thomson Reuters, said: Auditors could be reviewing their “Audit firms have responded to regu- connections to so-called high risk latory pressure and are now pouring clients as the Financial Reporting far more time and resources into Council (FRC) hikes the level of fines it audits. Doing this has an obvious can impose. impact on costs... there is an increas- Sports Direct’s auditor Grant ing acceptance amongst regulators Thornton resigned last year following and the profession that audits must the last-minute discovery of a €674m be properly charged for. (£567m) Belgian tax bill. The retailer “With the FRC increasing the level of has now resolved most of the claim. fines it imposes on audit firms it is Grant Thornton also came under fire also understandable that audit firms in 2019 when client Patisserie Valerie will want to review their relationships revealed a multi-million-pound hole with high risk clients.”

CHARGING UP Tesla shortsellers extend losses as shares surge on quarterly figures

INVESTORS betting against Tesla suffered losses of $1.5bn (£1.3bn) in a single day after the firm’s quarterly results beat estimates last week. Tesla’s stock has more than doubled in value since it posted a third-quarter profit last year. Nissan’s Brexit contingency plan to increase market share in UK ANGHARAD CARRICK Britain face tariffs, Nissan would have a competitive edge. It hopes to @angharadcarrick increase its market share from four NISSAN is said to have drawn up a per cent to up to 20 per cent. contingency plan to pull out of The contingency plan was Europe but double down on the UK if reportedly drawn up before Makoto Brexit leads to tariffs on car exports. Uchida was installed as the new Nissan would close its Barcelona chief executive in December. van facility and stop manufacturing Nissan did not respond to a in France, the Financial Times request for comment. The car maker reported, citing two people involved denied such a contingency plan in the plan. exists to the Financial Times. The car maker would keep its Boris Johnson will today set out a Sunderland plant in the UK because tough opening stance ahead of trade if other car makers that import to talks with the European Union. 04 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM Boxpark’s profit jumps as shipping container venue targets expansion JESS CLARK April, driven by the opening of a new was in final talks with a preferred @jclarkjourno site in Wembley. candidate. The company is planning to open Boxpark is planning to launch BOXPARK reported a jump in profit two sites a year for the next five different formats, such as smaller last year as the pop-up shipping years, with further details set to be Boxhalls in London and Boxoffices — container venue sets its sights on announced this spring, as it aims to incorporating office space — outside expansion outside of London. set up a Boxpark in every major city the capital, as it takes on its growing The food and retail operator, across the UK. competition. which launched in 2011, said net Boxpark is also close to securing a “I’m quite excited by change, the profit was up 22 per cent to £1.6m deal with an investor to help it drive market is looking to replicate things and turnover soared 58 per cent to the expansion plans forward. Chief we have done, but we are moving £12.5m in the year to the end of executive Roger Wade said the firm ahead,” Wade told City A.M.

Boxpark is aiming to open a venue in every major UK city St James’s Place overhauls pay and incentives

ANNA MENIN qualifications will also now be taken @annafmenin into account too. The firm’s so-called cliff-edge bonus structure, where ST JAMES’s Place is set to overhaul its partners have to hit a certain sales tar- pay and perks programmes following get to receive a bonus the following intense scrutiny of the incentives of- year, will also be replaced. fered to partners, including cruises St James’s Place had launched a re- and white-gold cufflinks. view into its remuneration practices Bosses at Britain’s largest wealth following a series of reports from the manager have told staff the changes Sunday Times last year. An anony- will reward “the right behaviours” mous whistleblower told the paper and go beyond recognising sales that partners at the firm were put made in a single year, according to under pressure to meet targets by sell- the Sunday Times. ing expensive investments and pen- Executives said that all overseas sions to clients, with top performers business trips, including annual invited on luxury cruises. cruises for top performing staff, In October, Croft defended the perk, would be axed, alongside company telling City A.M.: “The overseas trips “regalia” such as the cufflinks. are also very much business meet- At the company’s annual meeting ings. There’s an awful lot of business last week, chief executive Andrew content to them.” Croft and managing director Ian Gas- In his speech at last week’s annual coigne publicly announced a host of meeting, held at London’s O2 Arena, changes designed to modernise the Croft said media coverage had made wealth manager’s image. it a hard year for St James’s Place, the The pair said that the company’s Sunday Times reported. 4,271 advisers, known as partners, “Criticism hurts, but it doesn’t would no longer be paid solely based mean it’s wrong,” said Croft. on performance. Factors such as cus- St James’s Place could not be tomer retention, charity work, and reached for comment yesterday. Heathrow runway up in the air as Ferrovial considers stake sale EDWARD THICKNESSE airport called on the Civil Aviation @edthicknesse Authority to put in place a “fair settlement for investors” to BUSINESS groups have warned that guarantee the £14bn investment the the failure to expand Heathrow project needs. would see the UK “fall behind the “Britain can be a magnet for rest of the world” as its new runway’s foreign investment, but not if future was again plunged into doubt regulators dither when it comes to over the weekend. key projects,” they added. Last week it emerged that Spanish Mike Cherry, chairman of the infrastructure giant Ferrovial was Federation of Small Businesses, said: considering selling its 25 per cent “Small businesses don’t want to see stake in the airport if it could not further delay to the plans for airport get “adequate returns” for investors. expansion. We must not continue to A spokesperson for Heathrow fall behind the rest of the world.” OUR CLIENTS THINK AT A SPEED VERY SIMILAR TO OUR OWN. FAST.

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LAW SOCIETY FIRE Firefighters battle big FTSE boards set blaze in the capital’s historic legal district Crossrail boss says he will go to be slammed without bonus EDWARD THICKNESSE SOURCE:TWITTER/LFB @edthicknesse CROSSRAIL’s latest boss has promised that he will “do this job over diversity without a bonus” after his predecessors came under fire for receiving over £6.5m in extra ANNA MENIN are lagging behind their peers when payments over the last decade. @annafmenin it comes to board diversity. A mere 15 The payments were made despite per cent of Aim directors are women, Europe’s biggest infrastructure BRITAIN’s biggest public companies while over a third of companies listed ROUGHLY 150 firefighters battled to put out a blaze at the Law Society’s office on project being £3bn over budget and will this week be accused of compla- on the market have all-male boards, Chancery Lane on Saturday night. Eleven people were evacuated from the six-storey set to open nearly three years cency over a target to appoint a non- according to Company Matters. building, which was hosting a junior lawyers division dinner, but no one was injured. behind schedule. white director by the end of 2021. By contrast, the blue-chip FTSE 100 According to the Sunday The Parker Review, led by City index met a target for listed compa- Telegraph, chief executives of grandee Sir John Parker, outlined the nies to have 25 per cent female board Crossrail have received £8m in target for FTSE 350 companies in 2016. members in 2015. The target has now payment over the last 10 years, In a progress report which could be been extended to 33 per cent of FTSE with bonuses totalling £2.1m. published tomorrow, Parker will slam 350 firms by 2020 — an aim likely to Flybe endures nervous wait as Mark Wild, the project’s current firms for being complacent over eth- be met. chief, said that his predecessors nic diversity, according to Sky News. The discrepancy between the “did not understand or have an Almost 100 of the 350 firms did not smaller exchanges and the main mar- planes under threat of seizure estimate of the scale of the task”. even provide data on directors’ ethnic- ket is even starker when it comes to He added: “Particularly the task ity. Of the 256 that replied, 150 are racial diversity. In Aim and the FTSE EDWARD THICKNESSE Capital. According to the Sunday of completing the final bit of work. failing to meet the target. Although SMC, 96 per cent of directors are @edthicknesse Telegraph, the companies, who have They just lost sight of where they Parker will suggest the objectives white, while 80 per cent of boards are sight of Flybe’s debts to air traffic were in terms of the volume of could still be met, he will say: “Too all-white. EMBATTLED Flybe is facing a nervous controllers, are monitoring the work to do.” many of us, I fear, remain complacent Tracey Brady, managing director at wait over its potential £100m situation carefully. In December it was revealed that that change will come about natu- Company Matters, said the findings taxpayer loan amid reports that air The planes can be impounded by the central section of Crossrail may rally through the passage of time.” “reveal a worrying picture”. traffic controllers could impound the the Civil Aviation Authority on not be open before October 2021, The update comes as a report pub- “The companies themselves may be regional airline’s planes. behalf of Eurocontrol, a air traffic despite previous claims that it lished today suggests London’s FTSE interesting and diverse, but their Flybe leases its planes from firms control body, which can then sell could be launched in the first Small Cap (SMC) and Aim exchanges boards are falling behind,” she said. such as Nord LB and Nordic Aviation them on to recover debts. quarter of that year. CITYAM.COM MONDAY 3 FEBRUARY 2020 NEWS 07 Royal Bank of where? New boss of RBS will be based solely in London ANNA MENIN McEwan had a contract for London according to Sky News. @annafmenin and Edinburgh. The figure, which was agreed with Rose, who earns a £1.1.m salary the government as RBS’s largest NEW ROYAL Bank of Scotland chief and is the first woman to run any of stakeholder, is the lowest since the executive Alison Rose is to be based the so-called big four lenders, took bank was bailed out during the 2008 solely in London, even though the over as chief executive in November. financial crisis. The final bonus state-owned lender is headquartered “Our chief executive is based in figures will be revealed alongside in Edinburgh. London and travels to other the bank’s annual results in a Rose’s employment contrast lists locations including Edinburgh,” an fortnight’s time. RBS’s office on Bishopsgate as her RBS spokesperson said. Under Rose, RBS executives are sole place of work, the Sunday Times RBS is set to pay out a reduced working on slashing costs at the reported. Her predecessor Ross bonus pot of £305m for 2019, state-owned bank.

In November Rose became the first woman to lead the state-owned bank Now Credit Suisse accused of spying on Greenpeace

JOHN REVILL FINMA is investigating the issue. Credit Suisse has said chief executive CREDIT Suisse, which last year faced a Tidjane Thiam was unaware of the scandal related to spying on senior ex- surveillance, and that Bouee had acted ecutives, also conducted espionage alone. against Greenpeace, Swiss newspaper The affair has triggered a power Sonntagszeitung reported. struggle between Thiam and chair- Then-chief operating officer Pierre- man Urs Rohner, with one expected to Olivier Bouee ordered his head leave the bank soon, according of security to infiltrate the to the report. environmental group after A board meeting is due Greenpeace disrupted the to be held this week. bank’s annual share- holder meeting in 2017, Chief executive Tidjane the paper said in an arti- Thiam is at the centre of cle published yesterday. a power struggle Credit Suisse, which has been criticised by The bank has rejected a Greenpeace for investing in Bloomberg report that fossil fuels, gained access to Rohner is drawing up a emails, tipping the bank off to list of potential successors demonstrations planned against it, the to Thiam. report said. Greenpeace gatecrashed Credit Su- A Credit Suisse spokesman declined isse’s 2017 annual general meeting to to comment on security matters. protest against its dealings related to Greenpeace said it was following up the Dakota Access Pipeline. the report and had no comment yet. Credit Suisse said it has committed Bouee was dismissed in December to halting the financing of new coal- over the surveillance of former board fired power plants and reducing the members Iqbal Khan and Peter Goerke. greenhouse gas emissions of the ships Switzerland’s market supervisor it finances. Reuters The City retains renminbi crown as trading grows to record levels ANNA MENIN City of London Corporation. @annafmenin Between July and September, an average of over £82bn of renminbi LONDON has retained its position as changed hands in the UK every day, the leading hub for trading the up over four per cent year on year. In renminbi outside greater China, the first 11 months of 2019, total with cross-border trading of the renminbi cross-border settlement currency hitting record levels. between China and the UK surged 66 Nearly 3 trillion yuan (£328bn) was per cent year on year to around THIRDSPACE.LONDON cleared by the UK’s designated 590bn yuan, a record figure. renminbi clearing bank between “I look forward continuing to ISLINGTON | CANARY WHARF | CITY | TOWER BRIDGE | MARYLEBONE | SOHO September and November last year. celebrate the UK’s role as leading This represents a year-on-year offshore renminbi trading hub” said increase of almost 23 per cent, City of London policy chair according to new figures from the Catherine McGuinness.

CITYAM.COM MONDAY 3 FEBRUARY 2020 NEWS 09 IT’S NOT EASY BEING GREEN Rolls-Royce chief executive Warren East explains to Alex Daniel why the British jet engine maker wants to be ‘seen as one of the good guys’ when it comes to climate issues

Rolls-Royce came under pressure last year after an plane engine failed near Rome

S THE pressure mounts on share in that long haul space. And global transport companies there are really only two players that to reduce carbon emissions, do propulsion in that space at the mo- the aviation industry is brac- ment. We’re not exactly about to walk ing itself for decades of tur- away from it.” bulence.A However, one of the sector’s But in this part of the business, biggest suppliers has insisted the im- which accounts for about half of the pending switch to hybrid, electric and company’s revenue, Rolls-Royce is still alternative power is far from an obsta- trying to shake a long-running issue cle — but an opportunity. with one of its best-selling engines, Warren East, chief executive of FTSE the Trent 1000, in which the turbine 100 jet engine manufacturer Rolls- blades start cracking prematurely. Royce, hopes his firm, one of Britain’s The issue became “painfully visible” most prized industrial giants, can last year, East admits, after a dramatic take advantage of the unpredictable episode in which red-hot engine parts situation to increase its footprint rained down on a town near Rome within the industry. from a Boeing 787 Dreamliner which In an interview with City A.M., East had just taken off from the nearby in- says: “The energy transition is a fan- ternational airport. tastic opportunity to grow our busi- The incident forced the company to ness, grab a tonne more market share extend a costly repair period which and actually make a positive impact has grounded scores of 787s, an in- around the world at the same time.” dustry mainstay in the long haul Plane engines account for about two flight market which is powered by per cent of global carbon emissions, the Trent 1000. and Rolls-Royce is one of the world’s Now, Rolls predicts the issue will biggest manufacturers of them. cost an eye-watering £2.4bn between However, at the same time as pump- 2017 and 2023 — £800m more than its ing out chemtrails, it is pouring cash previous estimate. into working out how to make avia- Moreover, the admittance that a tion cleaner. Last year, it bought planned fix had failed after several Siemens’ electric propulsion business years of trying caused Rolls’ credit rat- for a reported €50m (£42m) — a deal ings to slide late last year, with Stan- the company hopes will result in a hy- dard & Poor’s downgrading it to one brid-electric test aircraft made in con- notch above junk in November. junction with Airbus taking to the sky So is East concerned customers in less than two years. might take flight? East thinks phenomena like flight “Clearly that’s a risk. It has to be a shame — the trend which has made concern. But we’re dealing in a busi- airline bosses nervous after people ness to business environment with across Europe cut down on flying in a very rational purchasers,” he says. bid to help the environment — are “Our competitors all have issues as “actually quite good for us”. well. The sort of technology you’re “We wouldn’t be getting as much looking at is pushing material science traction for the talking we’re doing to the limits of what we can about new carbon, lower carbon and sensibly do. carbon-free approaches to flying if we “Our airline customers of course didn’t have all the noise about flight understand that. If they were worried shame,” he says. about buying Rolls-Royce, they Therefore, it presents a wouldn’t choose us over chance to be “seen as one of General Electric.” the good guys”. In this, Rolls-Royce still Nevertheless, industry stal- enjoyed more than 50 per warts like Rolls-Royce and cent market share for wide- General Electric will not turn body jet engine purchases away from their core business over the first half of 2019. — building traditional jet en- Figures for the second half gines for long-haul planes — for are yet to emerge — things some years, he predicts. will become clearer when the “We’ve spent the last company reports its full-year two-and-a-half, three results next month. THIRDSPACE.LONDON decades, build- “You’ll have to wait ing market and see until the end of ISLINGTON | CANARY WHARF | CITY | TOWER BRIDGE | MARYLEBONE | SOHO February,” East tells City East holds an A.M. optimistic “But we’re not that view of 2020 concerned about it.” 10 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM Flexible office firm growth soars in BP faces calls to 2019 despite Wework’s listing chaos JESS CLARK portfolio jumped 30 per cent from sector’s biggest company, flexible link bonuses to @jclarkjourno £3.05bn to £3.95bn last year, despite office providers have been pushing the firm scrapping its public float in ahead with expansion plans. THE UK’s biggest co-working office 2019, according to research by law IWG’s Regus, one of the oldest firms grew rapidly last year, despite firm Boodle Hatfield. firms in the flexible office market, operating in an increasingly Wework abandoned plans for an has been pushing its new, more competitive market. initial public offering in September modern Spaces brand as it ramps up climate action Shared office providers grew their amid investor apathy and concerns the competition with Wework. portfolios by 22 per cent in the last over its management, while founder In August, the company opened year, as major players such as and chief executive Adam Neumann an 80,000 square feet office complex EDWARD THICKNESSE investor disappointment, with BP ex- Wework expanded into new global was forced to step down. in Victoria — its largest London site @edthicknesse pected to forecast a 25 per cent drop markets. The value of Wework’s UK Despite the troubles facing the to date. in profit in its full-year results tomor- INVESTORS are calling on oil giant BP row, the Sunday Times reported. to make its performance on tackling The Irishman takes over at a time of climate change a key element in its soul-searching for the oil industry, as bonus structure amid increasing con- a surplus of supply weighs on prices cerns about companies’ responses to and increased pressure from environ- the climate crisis. mental groups squeezes profit. The bonuses of around Last year BP decided to sup- 36,000 staff are already port calls from investors to linked to plans for reduc- lay out how its strategy ing emissions, but in- aligns with the targets of vestors are now calling for more rigorous tar- Looney will take over gets, potentially BP this week BOOK LONDON’S around so-called scope three emissions. 2015’s Paris Agreement. These emissions, pro- Bruce Duguid, head of HOTTEST NEW duced by BP’s customers, stewardship at Hermes In- accounted for nearly 90 per vestment, which was part of cent of the company’s 491m last year’s initiative, said: “We SHOWS FOR 2020! tonnes of greenhouse gas emissions in have given BP freedom to determine 2018. what its strategy is but I think now is The calls come in the final week of the opportunity to set out a bold vi- Bob Dudley’s decade-long tenure as sion for the future of how BP can be a Fantastic new productions chief executive at the oil giant, with serious contributor to building a net Bernard Looney set to take over on zero carbon economy.” Wednesday. BP is one of the world’s biggest oil now on sale in the West End Looney’s first task will be handling firm’s, producing 3.7m barrels a day.

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Paramount’s Rhythm Section, starring Blake Lively, was filmed in Dublin Rhythm Section flops at the box office as Bad Boys extends reign REBECCA RUBIN Sony’s Bad Boys for Life easily stayed at number one on box office BOX OFFICE newcomers Rhythm charts, collecting another $17.6m Section and Gretel and Hansel over the weekend. The third entry in fumbled as Bad Boys for Life the Will Smith and Martin Lawrence- remained champion during a led franchise has been a strong draw painfully slow Super Bowl weekend. at multiplexes and has collected American football’s biggest fixture $148m to date. is usually a slow time at cinemas Meanwhile, Paramount’s Rhythm since the Super Bowl is the most- Section got pummelled by the watched event on TV. competition, landing in tenth place Overall ticket sales topped out at with a disastrous $2.8m. The film Tickets are subject to availabilty roughly $85m (£64.5m), the second- carries a $50m price tag, meaning it worst showing in almost 15 years, could end up losing a sizable chunk according to Comscore. of change. Reuters CITYAM.COM MONDAY 3 FEBRUARY 2020 NEWS 11 Ofgem unveils Democrat race kicks off with carbon plan for Iowa caucuses ANDY SILVESTER @silvesterldn THE RACE to become the Democratic presidential candidate net zero Britain in the 2020 US election should finally see some clarity this evening as the result is announced in the EDWARD THICKNESSE need to be bolstered to cope with first state primary. @edthicknesse extra demand. The returns in the Iowa caucus The watchdog will also work closely will set the political weather for OFGEM has today published a new with the government on its plans to the contest, with former vice plan to decarbonise the UK’s energy decarbonise heat through new tech- president Joe Biden hoping for a system in order to meet emissions tar- nologies such as hydrogen boilers or win that will secure his position as gets by 2050. electric heat pumps. frontrunner. He is currently The Decarbonisation Action Plan Jonathan Brearley, who takes over as polling at 22 per cent in the state, sets out nine actions that the energy Ofgem’s chief executive today, said: tied with socialist firebrand Bernie industry must put into practice in “Britain has come a long way. It has Sanders, according to an average of order to ensure that the UK’s energy decarbonised faster than any major polls conducted across the mid- networks can deliver net zero. economy, but we must go further, par- west state. Pete Buttigieg, a dark Central to the plan is building an ticularly on heat and transport.” horse in the race, is hoping to beat energy sector that supports the The energy sector welcomed the expectations in Iowa in a similar growth of renewable energy sources plan. Centrica chief executive Iain way to Barack Obama’s 2008 by setting up a special fund for invest- Conn said: “We welcome the focus victory, which propelled him into ment into innovative solutions for from Ofgem on the value of storage the spotlight. Buttigieg, from tackling climate change. and flexibility services, which will nearby Indiana, is currently polling It will also aid the development of help balance the energy system in a just behind Biden and Sanders. an offshore grid to enable a four-fold low-cost way. A win for Sanders would pile increase in offshore wind generation “At Centrica we are committed to pressure on former frontrunner by 2030, as well as supporting the UK having a plan to get to net zero by Elizabeth Warren, also from the rollout of electric vehicles (EVs). 2050, as we focus on providing energy left of the party, to withdraw from According to the National Grid there services and solutions that help our the race and allow a straight fight will be 10m EVs on the road in the UK customers transition to a lower car- between the 77-year-old Biden and by 2030, which means the grid will bon future.” Joe Biden makes his pitch to Iowa voters ahead of a vote that will shape the contest 78-year-old Sanders. 12 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM ADVERTISEMENT FEATURE OUTERNET: CHANGING THE TUNE WE NEED TO TALK ABOUT RACE CITY A.M. DECODES Julia StreetsCEO of Streets Consulting & Host of DiverCity® Podcast

-Don’t turn the page. We need to talk broadly could gain an immediate about race. Because it directly advantage. -affects the bottom line—and then Home-growing candidates for these some. Look to the much-quoted senior roles also needs some work McKinsey study on ‘Why and the recruiters' insights were diversity matters’ and firms in shockingly revealing. the top quartile for racial According to the Equality and ethnic diversity are 35 Group, ethnic minority percent more likely to candidates in the UK face an outperform their median uphill struggle from the start. peers. Some estimate that More than 45% of young we could add £24bn to the people of colour have been UK’s GDP, others predict Bev Shah given career advice guiding more. CityHive them towards roles and Anyone claiming an career pathways lower than ounce of leadership their academic achievement acumen will know that suggests they should follow. London’s bold new music and media complex could be the making the best decisions Once in role, corporate and requires a wide range of personal support to guide and future of urban entertainment, writes James Warrington views, experiences and encourage them in their skills to challenge journeys matter, too. Role RYING to find a definition for newly-excavated underground levels. upcoming James Bond film). entrenched thinking, models inspire a future Outernet can sometimes feel The scale of the Outernet project is Outernet’s audience will vary generate ideas and help pipeline; mentorship like explaining Tiktok to a vast, and follows more than a decade throughout the day — from tourists mitigate risk. Regulators, networking and sponsorship grandparent. Once com- of planning (new Crossrail tracks run- passing through to daily visits by policy makers, leaders and Dr Miranda Brawn are also central to drive pleted, the 34,000 square feet ning under the venue had to be spe- Soho’s well-heeled media professionals innovators are crying out The Miranda Brawn progression. (sqT ft) site — sat squarely on the corner cially engineered to prevent — and the content will target both. for fresh ideas to deliver on Diversity Leadership Talk to me about fintech - of Oxford Street and Charing Cross vibrations). The land is owned by Con- Publishers such as Time Out are the industry’s promises of Foundation really, that’s my day job – and Road — will boast the world’s largest solidated Developments, which previ- thought to be lining up for partner- performance and risk I’ll remind you of its human deployment of LED screens, as well as ously turned a car park into the Soho ships, while luxury brands are also management to investors, dynamic. And humans need shops, restaurants, offices, a hotel and Hotel, while private equity firm Black- likely to use the space. For Outernet, shareholders and strong leadership. Any a 2,000-capacity underground music stone is stumping up the £350m costs. this advertising will be a key source of consumers. commercial appetite to reap venue. Philip O’Ferrall, Outernet’s Rather than launching a traditional revenue. But for Londoners, the biggest Last week I chaired a opportunity must come from chief executive, admits he also strug- land grab, however, Outernet is pin- appeal may be the subterranean music packed house for the the very top and there is real gled to sum up the concept, but says ning its hopes on a new kind of offer- venue — the largest to open in central CityAM Club, the second in opportunity here. has now settled on “entertainment ing — one that combines broadcast London since the 1940s. the “Decoding Diversity” Set the tone and culture, complex”. media with live entertainment. Tower- The capital’s live music scene has suf- series: ‘We need to talk instil this into the leadership The eclectic project is undoubtedly ing over the site is a cube lined with fered a string of closures in recent about race’. The stellar practices of hiring and middle glitzy, but for O’Ferrall it is also deeply 23,000 sq ft of LED screens, which will years, not least the nearby Astoria, panel (pictured) explored Hephzi Pemberton management teams, consider rooted in heritage. The site is flanked beam adverts and branded content to which was shuttered in 2009 to make the many phases of career Equality Group the values and ethos of the by Denmark Street, otherwise known the thousands of commuters, tourists way for Crossrail. The iconic 100 Club development from organisation as whole, then as Tin Pan Alley, a former hangout and bar crawlers spilling out of Totten- on Oxford Street was last week granted reaching into schools right measure and report it. hotbed for some of the world’s biggest ham Court Road Station each day. business rates relief as part of a plan to up to support board In our industry, we rely on music stars, including the Rolling But O’Ferrall, a former Viacom TV ex- protect grassroot music venues. ascension – and how we data to show us the way. Stones, David Bowie and Jimi Hendrix. ecutive, insists this will be no normal Geoff Taylor, chief executive of music can make it work for all of Firms that collect and Rather than flatten this history ad billboard. Instead, it will play host body BPI, welcomes Outernet’s invest- us. honestly respond to their own under a bulldozer of gentrification, to product launches and film pre- ment in new venues: “Too many have The UK government data will understand faster O’Ferrall insists his firm will make it mieres. He says he is “horrified” by closed in central London and other knows how important than their peers why they are the project’s cornerstone. comparisons to its most obvious com- centres around the UK in recent years.” ethnic board representation failing to attract and embrace “It’s born out of the heritage in the petitor Piccadilly Lights (which has O’Ferrall admits his project would is. The 2017 Parker Review Raphael Mokades ethnic minority talent. area and then building on all the great made recent moves beyond advertis- not work if it were a live venue alone. recommended each FTSE Rare Recruitment Brochureware won’t cut it. things that this part of the city needs, ing, such as screening the trailer to the As well as the ad screens, the venue 100 board appoint at least Inclusion is revealed the which is entertainment, retail, regen- will boast retail space (no Pret a one director of colour by 2021 and each moment a candidate steps through eration,” he says. Mangers, I’m reassured) and a new FTSE 250 board by 2024. So, how’s that your door, in their every long-day-lived Not everyone is convinced, and the hotel. The office units, it is hoped, will going? Not so well. experience, and in their journey to project met some initial opposition play host to music professionals. FTSE 100 numbers have slipped from leadership. from campaigners who warned Den- Live music events are slated for the 9% in 2017 to 7.4% last year. This It’s 2020. Race and inclusion are not mark Street’s bohemian character end of this year, while the broadcast should not be a surprise. In response to ancillary discussions, they are key would be destroyed. However, Outer- Outernet is screens will be up and running in the review, the Equality and Human business decisions for all of us. This net has sought to retain the spirit of pinning its hopes 2021. After that, Outernet has its sights Rights Commission revealed that only talent must sit at the table and be the area by stipulating that only set on venues in New York, Los Angeles, 2% of companies widely advertised supported to lead it. music-related shops can occupy Tin on a mixture of Dubai and Mumbai. non-executive director appointments We have to talk about race. Pan Alley. It has also preserved the London, then, is the litmus test. If it on public channels, with just 1% for iconic 12 Bar – where the likes of Adele broadcast media fails, Outernet will stand accused of executive director roles. Personal (read £ To find out more about DiverCity® and Keane played their first UK gigs – and live homogenising the capital’s heritage. Old Boys’?) networks are clearly alive Podcast, please visit by lifting the entire building out of the Done right, and it could just be the and well. Any firm advertising more divercitypodcast.com site before replacing it above the entertainment future of urban entertainment.

14 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM Wework names Senators set to acquit Trump in property expert final trial vote MICHAEL SEARLES @michaelsearles_ US PRESIDENT Donald Trump is all but certain of being acquitted in as its new boss his impeachment trial this week. Last Friday, US senators voted against calling witnesses or AISHWARYA NAIR real estate experience to Wework. He admitting new evidence. is the former chief executive of Brook- It was a move from Democrats SOFTBANK-BACKED office sharing field Properties’ retail group, and that would have in all likelihood firm Wework named real estate in- prior to that he was an executive at only extended the trial without dustry veteran Sandeep Mathrani as real estate firms including Vornado changing its outcome. its new chief executive. Realty Trust. However, they had been Mathrani will join the company as Brookfield announced in early De- dependent on four possible swing the chief from 18 February and will cember that Mathrani would depart Cera Care was founded in London in 2016 Republicans to vote for witnesses. report to Marcelo Claure, who will re- Brookfield and that his last day of Only two sided with the Democrats. main as executive chairman, the com- work would be 31 January. The next phase of the trial is a pany said over the weekend. Wework began its search for a new vote on whether to acquit Trump, Mathrani succeeds co-chief execu- boss in November following the London startup Cera ramps up which he is likely to win. tives Sebastian Gunningham and departure of co-founder Adam The Republican Party were Artie Minson. Neumann, who drew criticism for his reported as pushing for a quick Both Gunningham and Minson will erratic management style. expansion with Mears Care deal trial without witnesses or new remain with the company at least Wework’s initial public offering was evidence from the off. through a transition period to ensure shelved last year and the company JESS CLARK visits each day. Its senior members wanted to a smooth onboarding process, the recorded a steep plunge in valuation, @jclarkjourno The London-based startup said the avoid former National Security company said. to less than $8bn (£6bn) from $47bn. deal will allow it to roll out its Adviser John Bolton from being The chief executive search was han- The struggling co-working firm has HOMECARE tech startup Cera Care technology, which uses artificial called to the stands. dled by the Wework board without an sold off a string of fringe businesses has acquired Mears Care in a deal intelligence to predict health Bolton has written in an external executive search firm, ac- and laid off roughly 2,400 employees worth more than £30m. deteriorations and recommend upcoming book that he was cording to people familiar with the in a bid to turn around its fortunes. The acquisition will boost Cera’s actions to carers, more widely across instructed to withhold military aid matter, adding that a couple of search Its $1.75bn credit line from employee numbers to 2,000, with 20 the UK. Cera, which was founded in from Ukraine in exchange for dirt firms were initially considered. Goldman Sachs is set to become avail- offices across the country and the 2016, said it will target further on rival Joe Biden, the New York Mathrani will bring much-needed able soon. Reuters ability to deliver more than 10,000 acquisitions. Times reported. CITYAM.COM MONDAY 3 FEBRUARY 2020 NEWS 15 Russia casts doubt on feasibility of Trump’s peace plan for Middle East VLADIMIR SOLDATKIN “We see the reaction from the Palestinian President Mahmoud Palestinians, we see the reaction of a Abbas on Saturday addressed the A MIDDLE East peace plan presented wide range of Arab states which have Arab League, which backed the by US President Donald Trump sided with the Palestinians in Palestinians in their opposition to contravenes several United Nations rejecting the plan. This, obviously, Trump’s plan, at an emergency resolutions, Russian news agencies makes one think about its feasibility,” meeting in Cairo. cited a Kremlin spokesman as saying Dmitry Peskov was quoted as saying. “We’ve informed the Israeli side... yesterday, questioning the plan’s The blueprint, endorsed by Israeli that there will be no relations at all feasibility. Prime Minister Benjamin Netanyahu, with them and the United States The Palestinian Authority (PA) has calls for the creation of a including security ties,” he said. cut all ties with the US and Israel, demilitarised Palestinian state that Israel and the PA’s security forces including those relating to security, excludes Jewish settlements built in have long cooperated in policing after rejecting the Middle East peace occupied territory and is under near- occupied areas of the West Bank that plan put forward by Trump. total Israeli security control. are under Palestinian control. Reuters US Donald Trump has drawn up a peace proposal for the Middle East Miners’ funding Air Asia to face bribery probe hit by surge in into Airbus deal LIZ LEE

MALAYSIA’s securities regulator said yesterday it will examine green investing whether Air Asia Group and unit Air Asia X broke securities laws, after UK prosecutors accused executives of receiving bribes from HELEN REID The capital squeeze that started Airbus for buying planes. about two years ago has worsened re- The allegations came to light last AS GLOBAL investors shift away from cently, said Julian Treger, chief execu- Friday when Airbus agreed a heavy industry in favour of cleaner tive of Anglo Pacific Group, a mining record $4bn (£3bn) settlement with sectors, mining companies are losing royalty and streaming company. France, Britain and the United billions in financing, raising the cost The average cost of capital for early- States. Prosecutors said it had of capital and jeopardising projects. stage mining projects rose by two per- bribed public officials and hidden Making the mining industry more centage points over the past two payments as part of a pattern of sustainable by running mines on years, he estimates. Voi’s chief Fredrijk Helm called for ministers to speed up scooter legislation worldwide corruption. renewable energy, for exam- “Even for companies that Britain’s Serious Fraud Office ple, will be a key focus at have good projects it’s very (SFO) said that between October the annual Investing in difficult for them to raise 2013 and January 2015, Airbus's African Mining Indaba any money in these mar- Sales of e-scooters leap up over then-parent EADS paid $50m to conference in Cape sponsor a sports team that was Town this week, as Mining firms are losing jointly owned by two people companies hunt for billions in financing as Christmas period despite UK ban described as Air Asia Executive 1 new sources of capital investors go green and Executive 2. including private eq- EMILY NICOLLE rose 50 per cent in 2019, while The SFO said the executives were uity, debt, offtake fi- kets,” said Caroline @emilyjnicolle enquiries rose 70 per cent. rewarded for an aircraft order nance and royalty finance. Donally, managing direc- E-scooters are prohibited for use from Airbus, an allegation Air Asia Environmental, social and tor at private equity firm SALES of battery-powered e-scooters on roads and pavements in the UK, denied late on Saturday. governance (ESG) concerns have Denham Capital. jumped over the festive period last but are permitted on private land. “The Securities Commission driven money into specialised ESG “Previous investors who would year, despite there being a ban on A government consultation is Malaysia will examine the funds which often exclude mining provide equity appear to have with- using the vehicles on public roads. expected to launch next month in allegations and review all available stocks among other so-called dirty drawn. A number of specialist funds Data collated by Swedish e-scooter which ministers may legalise the evidence to determine if there is assets. have shut up shop, and generalists startup Voi showed that sales of both scooters, with a list of provisions any breach of securities laws,” Syed “You talk to anyone at the moment, aren’t investing in commodities any- e-bikes and e-scooters rose 96 per including a 15.5 miles per hour Zaid Albar, the regulator’s they say there’s no money,” said Boris more,” said Donally. cent year on year in the three speed cap on devices and permitted chairman, said in a statement. Kamstra, executive director of Al- Cannabis stocks and cryptocurren- months to the start of January 2020. use on roads and in cycle lanes. Directors who act with the intent phamin Resources, which manages cies are among alternative assets that Meanwhile Essex-based US e-scooter giant Bird has been to cause wrongful loss to their the Bisie tin project in Democratic Re- are luring retail investors away from manufacturer Micro Scooters said operating a trial of its scooters in listed firms can face jail or fines, public of Congo. miners. Reuters sales of its battery-powered scooters London’s Olympic Park since 2018. he added. Reuters Sky urges broadcasting regulator to clamp down on ITV and Channel 5

JESS CLARK in return for them making privately-owned, profit driven @jclarkjourno programmes that benefit the public. commercial broadcasters to be However, paid-for channel Sky has designated as ‘public service SKY HAS urged the broadcasting slammed ITV and Channel 5, saying broadcasters’ from which they regulator to take action against ITV the broadcasters receive more derive more benefit, via in-kind and Channel 5, saying the television “government support” than they subsidies and other government channels benefit from too much provide in value to the public, the support, than they deliver in return. “government support”. Sunday Times reported. “This model is no longer fit for Ofcom, the communications In a submission to Ofcom’s purpose. We should move away from regulator, allows public service planned review of public service it, towards interventions that are broadcasters — the BBC, ITV, Channel broadcasting, the company said: carefully targeted and are open to ITV has cashed in on the success of hit reality show Love Island 4 and Channel 5 — certain benefits “There is no longer a need for two everyone.” 16 NEWS MONDAY 3 FEBRUARY 2020 CITYAM.COM PARTNER CONTENT US trade experts ATLANTIC Daniel Griswold and Jack Salmon put together a trade CROSSING deal wishlist

WHAT DOES 2020 HOLD IN STORE FOR THE POUND? MONEYCORP TALK Trevor Charley discusses how Brexit cast a long shadow over the pound in 2019, but what will 2020 have in store for sterling?

aution from the Bank of England other, so developments elsewhere could and faltering economic results have a knock-on effect on the pound. Cwere all seen through the lens of The decision by the European Central Brexit. Now while the focus may move Bank (ECB) to implement a Quantitative slightly from the challenges of Easing (QE) programme of fiscal uncertainty due to a political impasse, stimulus has analysts watching the the UK’s departure from the EU is likely euro closely. Indications that QE is to loom large in the minds of investors. having the required effect, or that the Agreeing a Brexit deal was only the ECB may be changing course could first step. The transition period runs have an effect on the FX market and until the end of 2020, which means may present an opportunity for that the government has just 11 sterling to make gains. Political OW THAT Brexit has become objectives released last year, the Office assurances from the UK that would pro- months to negotiate alternative uncertainty is generally bad news for a reality, the United Kingdom of the US Trade Representative (USTR) tect the competitive US digital trade arrangements with the EU and new currency and the US Presidential can use its newfound inde- pledged that the United States would and cloud computing sector from EU- trade deals with countries further elections in November 2020 could pendence by negotiating an “secure commitments for the UK to pro- type rules and punitive taxes aimed at afield. It’s likely that both confirmed cause some market volatility. ambitious free trade agree- vide fair and open conditions for serv- US technology companies. deals and rumours could have an Nment with the United States. Such an ices trade,” including rules that would A US-UK trade agreement should also influence on the pound. Overall, LOOKING TO THE FUTURE agreement can deepen commercial ties prohibit discrimination against foreign liberalise the movement of people, an positive developments regarding trade It is difficult to say for certain what will between two longtime allies, not only suppliers, restrictions on the number of important means of delivering services. deals may give the pound a boost, but happen next for sterling because there in goods trade but also in financial serv- service providers in the market, and re- One idea would be the creation of a spe- any sense that progress is not being are so many interdependent factors at ices and the movement of people. quirements that cross-border service cial visa, either within the agreement made may put pressure on sterling play. The pound could benefit from Outside the European Union, the suppliers must establish a local pres- or separately, that would allow the because of the ramifications for UK greater certainty over Brexit, but only if United States is one of the UK’s most ence. The United States should be ready freer movement of professional work- businesses if new trade deals hit any replacement deals are reached by the important commercial partners. to provide the same access. ers between the two nations. roadblocks. While there is time to end of the year and businesses are given According to the US Commerce Depart- On financial services, the USTR calls The visa could be patterned after the negotiate alternative deals in the the opportunity to grow. The progress ment, in the 12 months through the for US suppliers “to obtain fairer and E-3 visa that allows as many as 10,500 coming year, businesses are still facing of trade could also improve business third quarter of 2019, two-way bilateral more open conditions of financial Australian professionals to work in the the possibility of a no-deal departure at confidence and investment. Time will trade in goods and services totalled United States on two-year visas that are the end of the year if the arrangements tell whether the new Bank of England $270bn (£206bn). Services account for renewable indefinitely. Adjusting for aren’t secured in time. Governor to replace Mark Carney in more than half of cross-border UK-US the larger population of the United March may also have an impact on trade, with transportation, travel and Kingdom, a proportional number of WHAT ARE THE DOMESTIC FACTORS sterling. The Monetary Policy financial services the top categories. visas would be about 30,000. TO WATCH NEXT YEAR? Committee may change its approach The United States is also the top direct A UK-US trade Ideally, a UK-US agreement would be In 2019, investors were too focused on when led by Andrew Bailey, but it may investor in the United Kingdom. Ac- signed and ready for implementation Brexit to pay too much attention to choose to stay the same course. Sterling cording to the most recent Commerce agreement should on 1 January 2021, the day the Johnson domestic economic statistics. With is approaching fresh terrain after a long numbers, US majority-owned affiliates government plans to finally exit the EU some of the initial heat off Brexit, there period of uncertainty and currency employ 1.5m British workers in the UK, also liberalise the customs union. An 11-month timeline may be a greater focus on measures volatility – it may not be all plain more than twice as many as the nearest movement of to negotiate the agreement would be such as the Purchasing Managers’ sailing from here but an altered EU country, with a total annual payroll aggressive, but not impossible. There is Indices, GDP and business confidence. landscape may change the pound’s of $101bn (£77bn). Of the Brits em- people certainly no reason why it could not be The market will be looking for an performance in the coming year. ployed by US affiliates, 372,000 work in negotiated simultaneously with a post- improvement after a challenging year manufacturing and another 195,000 in services trade” while ensuring that the Brexit UK-EU trade agreement. in 2019, but 2020 may not be all plain INTERNATIONAL PAYMENTS finance, insurance, and banking. UK’s financial regulatory rules are ad- Politically, the UK-US agreement sailing. Improvements in the economy WITH MONEYCORP A free trade agreement worthy of the ministered in a transparent and equi- would allow the Conservative govern- will also have an impact on inflation, Whatever happens to the currency name should, of course, aim for the table manner for US providers. ment to deliver on a manifesto promise wages, employment and a range of market in 2020, if you’re sending complete elimination of tariffs on all For its part, the United States should to strike new deals with major trading other economic factors. In turn, these money overseas, you’ll need the help of goods trade. A top priority should be to be willing to relax its own restrictions partners, while giving it leverage in will have an influence on Bank of a reliable foreign exchange service. ensure zero tariffs on trade in agricul- on foreign-supplied financial services. what will likely be difficult talks with England (BoE) policy and interest rates. tural products as well as on all manu- With London and New York City ar- the EU. Decisions by the BoE’s Monetary Policy TTT Moneycorp Limited is authorised by factured goods. guably the world’s two most important Most importantly, it will create oppor- Committee (MPC) may also have an the Financial Conduct Authority under the The United States should give up its financial centers, more robust compe- tunities for the people of Great Britain impact on sterling and investors will be Payment Service Regulations 2017 2.5 per cent duty on imported cars and tition in this sector would yield bene- to deepen their commercial ties with expecting some movement and change (reference number 308919) for the its 25 per cent duty on imported light fits for both nations through lower their friends and allies on the other of direction after a year of waiting for provision of payment services. trucks, while the UK should jettison the costs and more product innovation. side of the Atlantic. the uncertainty around Brexit to be £ Trevor Charnley, Head of Sales at 10 per cent duty on cars it inherited On digital trade, negotiators should cleared up. moneycorp from the EU and the even higher 20 per seek the prohibition of all customs Daniel Griswold is a senior research fellow cent-plus duty on imported trucks. The duties on digital products as well as re- and co-director of the Trade and INTERNATIONAL INFLUENCES SIGN UP ONLINE: result will be lower prices and more strictions on cross-border data flows or Immigration Project and Jack Salmon is a ON THE FATE OF THE POUND cityam.com/talk/moneycorp-talk/ choice for consumers. requirements that servers be localised. research assistant, both with the Mercatus Just like the pound, every currency Or speak to a specialist Just as importantly, the agreement The agreement should also preclude Center at George Mason University. They fluctuates in value based on a range of Personal Transfers 0808 278 0874 must aim for freer trade in services be- any mandates to disclose computing al- are co-authors of the new Mercatus Center political and economic factors. Business Transfers 0808 252 3772 tween two of the world’s most compet- gorithms or source code. briefing paper, “Can a U.S.-U.K. Trade Currencies fluctuate in relation to each itive providers. In its negotiating The United States will also seek Agreement Become a Reality in 2021?” CITYAM.COM MONDAY 3 FEBRUARY 2020 MARKETS 17

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FTSE 100 falls as CREST NICHOLSON P Wall St hit by 520 500 500 31 Jan health worries 480 virus fears take 460 440 and weak data 420 ALL STREET’s major averages Wtumbled more than 1.5 per 27 Jan 28 Jan 29 Jan 30 Jan 31 Jan cent last Friday, sealing its worst week in six months, as the over Brexit day Housebuilder Crest Nicholson last week reported results in line with expectations, spreading coronavirus outbreak, and set out a strategy to grow completions and improve profitability over the next coupled with sluggish US economic three years. The developer’s new management team — which analysts said is data and a mixed batch of corporate “operationally focused” — also unveiled plans to realise its land bank potential, cut earnings, fuelled concerns about ONDON’s FTSE 100 tumbled to biggest drags on the index. costs and develop a multi-channel and multi-tenure offering while maintaining the global growth. a seven-week low last Friday as Investment platform Hargreaves dividend. Canaccord Genuity maintained its “hold” rating, and increased the price After suffering its biggest one-day the first cases of coronavirus in Lansdown was the biggest loser on the target from 435p to 505p. percentage decline since 2 October, LBritain fanned concerns over blue-chip bourse, dropping 8.2 per the S&P 500 is down more than three the economic impact to the cent as half-year results showed a per cent from its closing high hit country ahead of its departure from slowdown in net new business HARGREAVES LANSDOWN earlier in January, as businesses the European Union later in the day. growth. struggle with supply problems from P The main index gave up 1.3 per cent, A noteworthy gainer across the 1,900 the coronavirus epidemic that has capping off its worst weekly perform- board was luxury carmaker Aston killed 213 people in China and been ance in over a year, while the FTSE 250 Martin, which soared 24 per cent on its 1,850 declared a global emergency. handed back earlier gains to close best ever day after Canadian bil- The US Centers for Disease Control 0.7 per cent lower. lionaire Lawrence Stroll said 1,800 and Prevention said it had issued a After the World Health he would take a stake in the 31 Jan quarantine order for all Americans Organization declared a company. 1,750 1,725 repatriated from China to an air base global emergency over News-related moves in California. However, stocks pared the China-linked virus, 1,700 losses late in the session as agency news that two patients Aston Martin shares director Robert Redfield said the risk had tested positive for soared after Lawrence 27 Jan 28 Jan 29 Jan 30 Jan 31 Jan to the US public is low. coronavirus kept Stroll snapped up a stake Delta Air Lines lost 2.38 per cent investors firmly away Hargreaves Lansdown reported interim results ahead of consensus, despite and American Airlines fell 3.17 per from risky assets. spurred sharp declines challenging market conditions and negative publicity relating to its support for Neil cent after the companies said they “Dealers are dumping among smaller stocks. Woodford ahead of his fund suspension. Profit jumped 12 per cent to £171.1m, would suspend all flights to mainland stocks for fear the health cri- French Connection, the compared to a forecast of £169m, while net revenues were nine per cent higher at China. sis will curtain economic owner of Great Plains and YMC £258m. The fund supermarket added 50,000 new clients during the period. Economists fear the coronavirus activity in China, and to a lesser extent brands, tanked 31 per cent — its steep- Hargreaves also noted improved confidence since the election result. Peel Hunt could have a bigger impact than the rest of the world — should the situ- est one-day drop on record — after it maintained its “add” recommendation and its 2,000p target price. Severe Acute Respiratory Syndrome ation keep spreading,” CMC Markets dropped plans to sell itself and said it (Sars), which killed about 800 people analyst David Madden wrote. would instead focus on a turnaround. between 2002 and 2003 at an Both British indices shed more than M&C Saatchi slid 10 per cent as SHAFTESBURY estimated cost of $33bn (£25bn) to three per cent this month. Britain’s financial watchdog began a the global economy, since China’s P At home, the Bank of England’s deci- probe after the advertising agency 940 31 Jan share of the world economy is now far sion to keep interest rates unchanged revealed an accounting scandal last 899 greater. supported sterling and hammered year, while fashion retailer Laura 930 US data showing consumer firms that earn largely in US dollars. Ashley slumped eight per cent after its 920 spending rose steadily in December HSBC, BP and Shell were among the top boss stepped down. while wage gains indicated moderate 910 growth in consumption amid 900 contracting business investment TOP RISERS FTSE added to the growth concerns. 890 P Additionally, a report on 1. Polymetal Int Up 1.58 per cent 7,600 manufacturing in the midwest hit a 2. Imperial Brands Up 1.45 per cent 7,500 27 Jan 28 Jan 29 Jan 30 Jan 31 Jan four-year low for January. 3. SSE Up 0.50 per cent “We spent most of this week still 7,400 West End landlord Shaftesbury bucked the national retail trend to report robust with this kind of euphoric optimism 31 Jan TOP FALLERS tenant trading and high footfall during the crucial festive period, driven by the about the US market, and today that 7,300 7,286.01 performance of restaurants and bars. The developer has continued with its finally began to fade... people are 1. Hargreaves Lans Down 8.22 per cent refurbishment and repurposing drive, however the availability of properties in finally starting to get concerned,” said 2. Evraz Down 4.29 per cent 7,200 central London continues to be restricted. Analysts said Shaftesbury’s unique Michael O’Rourke, chief market 3. Antofagasta Down 3.84 per cent portfolio continues to “offer exceptional long-term growth potential”. Liberum strategist at Jones Trading in 27 Jan28 Jan 29 Jan 30 Jan 31 Jan issued a “hold” recommendation and a target price of 980p. Stamford, Connecticut. CITY MOVES WHO’S SWITCHING JOBS

ESSENSYS South West. Elizabeth has held leadership roles in the was most recently executive chair of Newgate with a particular focus on the natural resources and Coworking software company real estate and financial services sectors for the past 25 Communications, of which she was a founder. She has defence sectors.” Essensys has appointed years in New York and London, most recently as extensive experience of advising and working with Alexandra Notay (pictured) founder and chief executive of workplace investment boards and management teams of companies based DARKTRACE and Elizabeth Sandler as non- consultancy Echo Juliette, and before that at the in the UK and internationally, ranging from startups to Cyber AI firm Darktrace has appointed Catherine executive directors. Alexandra Blackstone Group, Deutsche Bank, Axa Financial and FTSE and Fortune 500 companies, and particularly in Graham as its new chief financial officer, effective from is an international real estate AT Kearney. On appointment, Elizabeth will become the energy sector. Prior to Newgate, Deborah held 10 February. Catherine joins from 2U, an education adviser specialising in the UK’s chair of Essensys’s remuneration committee whilst senior roles at Citigate Dewe Rogerson, Burson- technology provider, where she led its capital structure build to rent sector. Since 2016 Alexandra will become a member of both of Essensys’ Marsteller and Fleishman-Hillard. Deborah has several growth. Catherine has served at the helm of several she has been fund director at audit and remuneration committees. years’ experience of advising boards on contentious businesses through periods of fast growth and has led PfP Capital, the fund and asset issues in the energy and defence sectors. Infrastrata four successful initial public offerings. Prior to 2U, management arm of Places INFRASTRATA chief executive John Wood said: “I am delighted to Graham was chief financial officer and executive vice for People, and she holds board positions at a range of Infrastructure firm Infrastrata has appointed Deborah welcome Deborah to the board of Infrastrata. Deborah president of Online Resources Corporation, where she organisations within the property sector, including the Shaw as a non-executive director. Deborah has over 30 brings with her significant experience within the areas oversaw general financial management and Creative Land Trust, Sound Diplomacy and Land Aid years’ experience in the public relations industry and of stakeholder engagement and corporate reputation broadened the investor base.

To appear in CITYMOVES please email your career updates and pictures to [email protected] 18 OPINION MONDAY 3 FEBRUARY 2020 CITYAM.COM FORUM EDITED BY LUKE GRAHAM LETTERS Johnson’s disastrous Huawei TO THE EDITOR decision is an act of self-harm The banter ban [Re: Should certain topics be off-limits to keep workplaces inclusive?] “Never discuss politics or religion in polite OWERFUL US Republican The comical arrogance of the UK’s gence sharing. The “Five Eyes” (the company” is a familiar saying, and in the senator Tom Cotton of John spymasters that this is all easily US, UK, Canada, Australia, and New workplace there are topics which are Arkansas put it best. Letting Hulsman manageable frankly doesn’t pass Zealand) have for many years equally inappropriate. But this shouldn’t Pthe state-sponsored Chinese the laugh test. Millions of lines of shared open-source intelligence, be confused with censorship from the so- technology firm Huawei code are going to have to be perpet- trusting each other to an extraordi- called PC Brigade. build even a portion of Britain’s 5G ually monitored. Are we really say- nary degree, based on common his- The best workplaces are fully inclusive, network — as the Prime Minister ing that there is no one in the torical, cultural, and linguistic ties. regardless of gender, race, sexual nonsensically decided to do last whole of China who might be able It is clear — and entirely under- orientation, or football team. Issues arise week — is quite a bit like letting the to slip into this ocean of data mate- standable from the American point when language becomes a conduit for KGB construct the British phone sys- rial undetected? of view — that involving Huawei in exclusion or harassment, which is already tems in the 1980s. When confronted last year with the UK’s 5G network is a dagger well established in UK law. At the time, Margaret Thatcher’s future, by exploiting UK software precisely this dilemma, Australia — pointed at the heart of continued Discrimination legislation protects government would have seen this vulnerabilities that it will become a country with even closer trading Anglosphere intelligence sharing, employees from “banter” which creates for what it was — an act of madness. intimately aware of in helping con- ties (as a percentage) to China than as Huawei infiltration could be a an intimidating, humiliating, hostile, It is shocking, and highly counter- struct the 5G network. the UK — decided that the game was back door jeopardising this essen- degrading, or offensive environment. The productive, that the newly-unbound Huawei has consistently denied not worth the candle, banning tial cooperative. intention behind such conduct — even if it Johnson government seems to have that it has ever been asked by the Huawei from running its broad- Ahead of the Huawei decision, the is meant as a joke — is no defence, and taken leave of its senses. Chinese government to introduce band network. Americans flatly told British minis- employers can be vicariously liable for the Let’s take a breath and actually secret “back doors” into its technol- Likewise, the Prime Minister’s ters that using Chinese technology actions of their employees. think about this decision logically, ogy, and has even offered to sign a limp assurance to the Trump ad- in UK 5G networks would put Today’s workplaces reflect the more first on its specific merits, then look- “no spying” agreement with the UK. ministration is risible. Lamely assur- transatlantic intelligence sharing at diverse world in which we live, offering an ing at how the choice affects Britain’s But of course they would say this. ing President Trump that Johnson’s great risk. Following the govern- enrichment of different interests and post-Brexit geopolitical strategy. For there can be little doubt that — government will never again allow ment’s act of self-harm, senator Cot- perspectives. It is the conversation topics Start with the obvious (but seem- given the very nature of China’s Britain to become reliant on Chi- ton called for an immediate review that perpetuate toxic work cultures that ingly forgotten) fact that Huawei is, state-dominated form of capitalism nese technology is a classic case of of intelligence sharing with Lon- are always off-limits. like all major Chinese firms, not in- — Huawei would do as its masters trying to fence the horse in, after he don, which if it were limited in any Vivienne Artz, president, Women in dependent of the Chinese state. in Beijing ordered, regardless of has left the stable. way would have the gravest of con- Banking and Finance That the senior leadership of the what they had previously agreed to. If the government’s decision sequences for the UK. company has close personal ties to makes no sense on its own merits, it Johnson’s Huawei decision Discriminatory and derogatory Beijing’s security institutions can- is well nigh ruinous at a geostrate- amounts to a crucial early signal of conversations should always be off-limits. not be in doubt. Huawei’s chief ex- gic level. Ideologically, Prime Minis- how closely the UK is strategically However, other topics do need to be ecutive Ren Zhengfei founded the ter Johnson is the first UK premier committed to its heretofore prom- considered, as in certain contexts they can company after serving in the Peo- since Thatcher to espouse a general ising Anglosphere future. Judging push people into the “out” group. For ple’s Liberation Army. The com- Anglosphere school of thought, be- by the government’s nonsensical example, an office of lads constantly pany’s chairwoman from 1999 to lieving that the UK’s strategic future choice, Britain is in danger of talking about football immediately 2018, Sung Yafang, reportedly lies not with the non-growth, bungling its decisive geostrategic excludes someone who has no interest. worked for state security before join- The Prime declining EU, but instead in culti- turn at its inception. In our experience, banning topics ing Huawei. To put it mildly, this is Minister’s limp vating closer ties with its English- doesn’t address the root of the problem, not the usual biography of leading speaking former foreign dominions, £ Dr John C. Hulsman is a senior especially when it happens without commercial players in the west. assurance to such as the US, Canada, Australia, columnist at City A.M., a life member of proper context or education. It’s a knee- The fear is that China would be New Zealand, and India. the Council on Foreign Relations, and jerk response that creates an even larger able to conduct wholesale surveil- the Trump It is important to understand that president of John C. Hulsman barrier, leading to resentment towards lance in Britain (and be able to sab- administration in practical policy terms, there is Enterprises. He can be reached for those outside certain groups. otage the country’s critical one realm where the Anglosphere corporate speaking and private briefings For employers, understanding how to infrastructure) via Huawei kit in the is risible already fully exists — that of intelli- at www.chartwellspeakers.com. create an inclusive workplace culture, and educate people about what’s on and off- limits, is the key to fostering inclusivity. We all know that there are topics that are understood to be sensitive by everyone in the business, so it makes sense to limit the chat to situations where it’s appropriate Forging closer ties with India is crucial, and policed by the employees themselves. Draconian rules could be considered to be a bit nanny state — empathy works better than regulatory regimes. but let’s not lose sight of our neighbours Daniele Fiandaca, co-founder, Utopia

OW THAT the UK has for- and Bankruptcy Code have forged India’s 2020 Union Budget, is that BEST OF mally left the EU, our trad- Catherine stronger links between our legal there is a willingness on both sides TWITTER ing ties with partners McGuinness firms, and India is now firmly on the to drive forward trade. Nacross the world will be radar of many investors in the City. Will there be a trade deal in the Coronavirus hits the UK from China in a more in focus than ever These developments have not gone future between India and the UK? few days, meanwhile an ebay order still before. This includes our relation- unnoticed by the Indian and UK gov- Almost certainly, but it will take takes 3 weeks shipping, love to see it. ship with India, a country I visited ernments. Work is already under- time, and first and foremost we @Wraithella last week to promote ties in finan- way through the ongoing UK-India need to get an agreement on the fu- cial and professional services. Joint Trade Review — the only one of ture of the highly complex UK-EU 17.05 at the Telegraph on Brexit day The UK-India partnership is now its kind that the UK has with any trading relationship. and there are: worth some £20bn, with nearly a representative office in Mumbai other country — to lay the frame- After all, we may have left Europe, No pork pies £450m in financial services. When over 12 years ago. Meanwhile, the work for a future trade partnership. but a deal on the future relationship No bottles of ale compared to trade with the EU bloc Square Mile is already home to more There’s also the Joint Economic and with the EU is anything but “done”. No glasses of English fizz and the US, these numbers are than 15 Indian financial firms, in- Trade Committee looking at strate- What’s more, the December 2020 No little Yorkshire puddings with a bit small. But when you take into ac- cluding heavyweights like the State gic ties, and the Economic and Fi- deadline for new arrangements to of beef and horseradish in them count that the country is home to Bank of India, ICICI, Punjab Na- nancial Dialogue, focusing on trade be in place is ambitious, and it is No bowls of Eton mess 1.3bn people, enjoys economic tional Bank and GIC Re, as well as and investment relations. critical that the services sector — growth of nearly seven per cent, and challenger fintechs like TMWPay. Add to this mix the commitment which makes up around 80 per cent Chequers didn’t die for this. has recently propelled itself up the We’re also the world’s largest mar- by Prime Minister Boris Johnson to of the UK economy — is not sacri- @Hariboconomics ease of doing business rankings, it’s ket for rupee-denominated Masala making India one of his first desti- ficed in the rush to get a deal. clear to see why India has the poten- bonds, and the leading offshore cen- nations for an overseas visit follow- Trading ties with countries like I keep thinking that Love Actually was tial to become an important partner tre for rupee trading. ing his re-election, and the future India are hugely important, but we the ultimate Remoaner film with its for companies across the UK. Ties between our countries con- looks bright for both countries. shouldn’t lose sight of our neigh- dubious thesis that love is all around; That partnership already has tinue to grow in many areas of fi- Yes, issues remain in terms of mar- bours either. that airports are places of magic and strong roots. The City Corporation nancial services, including fintech, ket access and restrictions to for- American presidents are inherently evil. has a longstanding programme of insurance, and green finance. In ad- eign direct investment. But what’s £ Catherine McGuinness is policy chair @CharlotteCGill work in the country, having opened dition, reforms like the Insolvency also clear, especially in the wake of at the City of London Corporation. CITYAM.COM MONDAY 3 FEBRUARY 2020 OPINION 19

WE WANT TO HEAR YOUR VIEWS › E: [email protected] COMMENT AT: cityam.com/forum :@cityam Markets must wake up to DEBATE Unilever could be selling its PG the risks of the coronavirus Tips brand. Has the classic British T IS still too early to be certain on an influenza outbreak on the world cuppa fallen out of fashion? the relative infectiousness or mor- Alastair economy. These indicate that a decline tality rate of the new coronavirus. George of between one per cent and five per INevertheless, there have been cent of global GDP relative to baseline Britain is becoming a nation of coffee close to 10,000 confirmed cases, should be expected in the event of a drinkers. This journey started 20 years and 40m people in China are cur- pandemic — depending on the severity. ago with the explosion of branded rently facing travel restrictions. The A decline of five per cent of GDP coffee chains like Costa, Starbucks and YES virus has now spread to 23 territories, would represent a serious shock to Caffe Nero. The last decade saw the including the UK, where two cases both the economy and the outlook for growth of artisan coffee and the high- JEFF YOUNG were confirmed last week. Given this, corporate profits. In these circum- quality coffee experience. what impact will the coronavirus stances, a sharp move lower in equi- As a nation, we still love our tea, but professional barista. have on the global economy? Spanish Flu events of 1918, a direct ties would be expected, in addition to when it comes to the high street, coffee Additionally, there is our growing love At the time of writing, it is our view read-across to the coronavirus may be a switch to safe-haven assets. is undoubtedly a big thing. of going to coffee shops to suit an that investors should focus on the eco- misleading. Also, at the early stages of However, even a moderate outbreak For the British consumer, tea is occasion, whether it is in search of a nomic costs of controlling the out- an outbreak such as this, it is uncer- would be likely to have consequences extremely personal and also easy to morning caffeine buzz or a chance to break, rather than fearing a mass tainty which has the largest impact on for markets over the coming quarters, make. Coffee on the other hand has a catch up with friends over a latte. panic. In fact, it was a surprise to us markets. Investors should be careful as investors have priced in a global re- specialness and perceived value which Coffee is an experience that has been just how resilient stock markets have not to implicitly exclude the impact of covery. Investors should now apply a means that consumers are now happy firmly woven into our daily lives. been in the face of adverse coronavirus uncertainty in their analysis. discount to sectors where the eco- to pay £3 or more for an immaculate headlines, given the precedent of SARS For example, we do not know with nomic impact of attempts to control flat white. That’s partly due to the fact £ Jeff Young is founder of the London and its impact on markets in 2003. any certainty whether the coron- the coronavirus will hit hardest. that most people do not have the tools Coffee Festival, which celebrates its Indications are that this current out- avirus outbreak can be contained at Right now, the biggest risk to a nu- or skills to make one as well as a tenth anniversary on 2–5 April 2020. break is at the relatively early stages this point, nor what public health anced portfolio is if reports surface of in China, and it will take some time measures will have to be employed. a much greater rate of infection out- to bring it under control there. Never- Furthermore, the number of con- side China, which would suggest theless, while there have been some firmed coronavirus cases has grown rapid human-to-human transmission cases outside China, there does not rather more sharply than during the despite public awareness measures. If Hot tea brands like PG Tips and Lipton appear at this stage to be an epidemic early stages of the SARS outbreak. the figures do show a sharp rise in in- may be feeling the strain at the of viral pneumonia in other nations. There have been a number of studies fections or a surge in hospitalisations moment, but we shouldn’t prophesise The number of reported cases is which attempt to model the impact of outside China, this would be taken that this automatically signals the end NO likely to escalate sharply as aware- negatively by markets. of tea drinking altogether. ness of the disease grows, but esti- As such, we remain cautious on eq- It is simply the case that consumer ROB NOWELL mates of the mortality rate will also uities and would screen portfolios for tastes and preferences are changing decline as testing becomes more holdings where public health meas- and evolving. With consumers 26 per cent rise in profits, partly driven widespread for milder cases. ures may adversely impact profits. becoming more health conscious, we by a surge in sales for its exclusive National economies will be hit by Given all these uncertainties, the will witness a rise in brands moving Sparkling Tea blend, which it the measures taken to reduce trans- Unlike a trade war, coronavirus has the potential to have towards healthier alternatives, such as developed in response to consumers’ mission, but provided that these are either a limited or serious negative fizzy drinks maker Lucozade, which choices to go alcohol free. not as draconian as those currently a pandemic impact on the world economy. Unlike entered the ice tea market last year In the meantime, let’s all sit down imposed in China, the economic im- cannot simply be a trade war, a pandemic cannot sim- with its MayTea product. with a nice cuppa and wait for this pact should be relatively modest. ply be called off by politicians. Retailers are also spotting the furore to blow over. What can we learn from previous called off by potential in this market too. pandemics? Given the changes in the £ Alastair George is chief investment For instance, the upmarket food store £ Rob Nowell is marketing director at global economy since SARS or the politicians strategist at Edison Group. Fortnum & Mason recently reported a Edge by Ascential.

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FTSE 100 FTSE 250 FTSE ALL SHARE DOW JONES NASDAQ S&P 500 /€ 1.1900 ÃÃ0.0017 €/$ 1.1081 0.0050 7286.01 21143.49 4057.47 28256.03 9150.94 3225.52 /$ 1.3195 à 0.0089 €/£ 0.8403 Ä 0.0013 95.95 148.39 47.85 603.41 148.00 58.14 £ /¥ 143.09 0.5100 €/¥ 120.23 0.2400 ÄÄÄÄÄÄ Ãà Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low GILTS ELECTRICITY Vietnam Enterprise .....456.0 -5.5 509.0 421.5 Just Eat...... 861.0 -4.0 901.0 587.4 LEISURE GOODS OIL & GAS PRODUCERS SUPPORT SERVICES Alliance Pharma ...... 86.9 -0.1 87.0 63.0 Tsy 4.750 20 ...... 100.38 -0.03 104.3 100.4 Contour Global...... 192.0 1.0 222.5 159.1 VinaCapital Vietna ...... 318.0 -1.5 357.5 318.0 Kingfisher...... 204.0 -1.7 266.2 185.9 Games Workshp ...... 6635.0 -20.0 7005.0 2800.0 BP ...... 456.7 -10.4 582.5 456.7 Aggreko ...... 771.0 -16.8 869.2 707.2 ASOS...... 3073.0 112.0 4066.0 2107.0 Witan Invest ...... 219.5 -3.5 235.0 201.2 Marks & Spencer ...... 176.0 -4.7 303.2 163.9 Tsy 8.000 21...... 109.97 -0.05 116.9 110.0 Drax Gp ...... 272.0 0.2 412.0 251.0 LIFE INSURANCE Cairn Energy...... 169.5 -3.5 213.8 143.1 Ashtead Gp ...... 2455.0 -97.0 2592.0 1805.5 Blue Prism ...... 1744.0 -56.0 1810.0 788.0 Tsy 2.500 24 ...... 362.04 -0.30 377.9 358.8 SSE ...... 1508.5 7.5 1529.5 1008.0 Wwide Healthcare ....3035.0 -50.0 3255.0 2495.0 Next ...... 6892.0 -138.0 7340.0 4724.0 Energean Oil & Gas ...... 769.0 -2.0 1082.0 618.1 Babcock Intl Grp...... 588.8 -14.2 646.6 416.7 Aviva ...... 398.4 -7.1 438.8 352.3 Camellia ...... 8550.0 100.0 11750.0 8350.0 Tsy 5.000 25 ...... 123.19 0.10 126.0 122.1 FIXED LINE TELECOMMUNICATIONS Pets at Home Gp ...... 282.0 0.0 290.0 126.8 Premier Oil ...... 100.3 -5.1 118.7 65.1 Bunzl ...... 1965.0 -6.5 2551.0 1943.0 ELECTRONIC & ELECTRICAL EQUIPMENT Lancashire Hldgs ...... 748.0 -2.0 780.5 574.0 Tsy 4.250 27 ...... 129.69 0.20 132.8 125.5 Vivo Energy ...... 112.0 -1.4 139.5 111.4 Royal Dutch Shell A....1994.4 -43.6 2612.0 1994.4 Capita ...... 145.4 -1.4 183.0 99.9 Caretech Holdings ...... 457.0 3.0 473.0 325.0 Halma ...... 2107.0 -14.0 2164.0 1450.0 BT Gp ...... 160.9 -1.5 233.9 158.9 Legal & General ...... 305.5 -4.5 317.7 216.7 Watches of Switz ...... 373.4 -4.8 390.8 270.0 Royal Dutch Shell B ..2000.0 -46.0 2622.0 2000.0 DCC ...... 6132.0 -48.0 7496.0 6132.0 Central Asia Metals ....202.5 0.5 266.5 180.0 Tsy 6.000 28 ...... 148.18 0.25 152.1 143.3 Morgan Advanced ...... 312.0 0.4 324.8 232.4 Talktalk Telecom ...... 118.5 5.5 126.5 96.5 Phoenix Gp ...... 758.0 -9.4 769.1 631.2 WH Smith...... 2392.0 6.0 2654.0 1896.0 Tullow Oil ...... 50.8 0.5 250.0 39.9 Diploma ...... 1948.0 -12.0 2084.0 1280.0 Tsy 4.125 30 ...... 382.88 -0.49 404.2 364.5 Oxford Instruments .. 1542.0 -2.0 1626.0 935.0 Telecom Plus ...... 1512.0 -2.0 1552.0 1130.0 Prudential ...... 1352.0 -16.5 1790.0 1279.5 Clinigen Group ...... 969.0 -2.5 1069.0 737.5 Tsy 4.250 32...... 142.66 0.35 146.4 132.7 HEALTH CARE EQUIPMENT & SERVICES OIL EQUIPMENT & SERVICES Electrocomp ...... 662.8 -20.8 729.8 540.8 Renishaw ...... 3976.0 -112.0 4638.0 3232.0 FOOD & DRUG RETAILERS St James Place ...... 1144.0 -16.0 1199.5 913.6 CVS Group ...... 1147.0 20.0 1172.0 425.0 Equiniti ...... 204.8 -0.4 236.2 186.2 Tsy 4.250 36 ...... 151.45 0.51 155.7 137.9 Spectris ...... 2646.0 -54.0 2962.0 2234.0 Greggs ...... 2254.0 -24.0 2476.0 1554.0 Convatec ...... 208.0 4.1 217.3 118.5 Std Life Aberdeen ...... 301.5 -4.2 336.9 231.1 Hunting ...... 306.2 -4.4 657.0 306.2 Essentra ...... 419.0 0.8 449.0 373.4 Dart Group ...... 1700.0 -29.0 1820.0 709.5 Tsy 4.750 38...... 166.83 0.61 171.8 150.5 EQUITY INVESTMENT INSTRUMENTS Morrison (WM) ...... 181.9 -1.8 245.8 176.9 Mediclinic Intl ...... 369.3 -8.8 415.3 293.4 MEDIA Petrofac ...... 349.2 -2.1 559.0 344.4 Experian ...... 2637.0 -58.0 2717.0 1960.0 Diversified Gas & Oil ...... 90.2 -3.4 116.5 90.2 Tsy 4.250 46 ...... 175.71 0.80 181.0 1.0 Ocado Gp ...... 1223.5 -47.0 1435.0 873.8 NMC Health ...... 1292.0 3.5 3000.0 1256.5 Wood Gp(J) ...... 376.3 -1.9 598.6 319.6 3i Infrastructure ...... 310.5 -0.5 311.0 265.1 4imprint ...... 3310.0 10.0 3500.0 1917.5 Ferguson ...... 6802.0 -118.0 7216.0 4800.0 AEROSPACE & DEFENCE Sainsbury(J) ...... 202.4 -0.9 293.9 177.1 Smith & Neph...... 1826.5 -49.0 1990.0 1424.5 PERSONAL GOODS Draper Esprit ...... 514.0 2.0 548.0 410.0 Aberforth Smlr Cos ...1438.0 -12.0 1546.0 1114.0 Ascential ...... 365.2 4.6 421.2 319.0 G4S ...... 195.4 -7.1 234.3 168.3 BAE Systems ...... 631.4 -4.0 647.6 443.9 SSP Group ...... 644.0 -1.0 721.0 608.0 UDG Hlthcare ...... 750.5 -26.0 832.5 551.0 EMIS Group ...... 1150.0 0.0 1242.0 902.0 Alliance Trust ...... 823.0 -10.0 872.0 727.0 Auto Trader Gp ...... 562.0 -19.0 607.6 448.4 Burberry Gp...... 1953.0 -62.0 2345.0 1695.0 Hays ...... 155.2 -1.9 183.5 138.0 Meggitt ...... 675.6 -2.8 697.4 489.9 Tesco ...... 246.9 -1.0 258.9 212.6 HOUSEHOLD GOODS AVI Global Trust...... 763.0 -14.0 802.0 699.0 Euromny Inst Inv...... 1224.0 -18.0 1498.0 1152.0 PZ Cussons ...... 192.4 0.8 227.0 178.8 Homeserve ...... 1282.0 -3.0 1340.0 953.0 Fevertree Drinks ...... 1376.0 -39.0 2475.0 1376.0 QinetiQ ...... 352.4 -2.8 370.0 267.0 FOOD PRODUCERS Baillie Gifford Japan ...788.0 -12.0 848.0 711.0 Barratt Devel ...... 802.8 0.4 816.4 546.4 Future ...... 1280.0 -242.0 1572.0 556.0 PHARMACEUTICALS & BIOTECHNOLOGY Intertek Gp ...... 5760.0 -218.0 6170.0 4643.0 First Derivatives ...... 2770.0 65.0 3555.0 2050.0 Rolls-Royce ...... 670.0 -4.0 988.4 636.6 Bankers InvTst ...... 978.0 -11.0 1032.0 831.0 Assoc British Foods...2626.0 2.0 2672.0 2106.0 Bellway ...... 3985.0 -17.0 4092.0 2698.0 Informa ...... 774.8 0.6 892.0 680.0 AstraZeneca ...... 7424.0 -91.0 7878.0 5568.0 IWG...... 441.6 -6.4 469.0 222.2 Senior ...... 166.5 -0.5 239.2 160.0 Frontier Devs ...... 1412.0 6.0 1430.0 844.0 BlackRock Smaller .....1718.0 -8.0 1740.0 1298.0 Bakkavor ...... 135.8 1.2 170.0 93.3 Berkeley Grp Hldgs ...5240.0 14.0 5412.0 3437.0 ITV ...... 135.4 -1.5 156.5 103.6 Dechra Pharma ...... 2844.0 -34.0 3068.0 2330.0 Network Int...... 608.0 7.0 645.0 513.0 Ultra Electronics ...... 2258.0 28.0 2292.0 1232.0 Gamma Comms ...... 1400.0 0.0 1460.0 782.0 BMO Global Smaller .....139.8 -1.9 150.0 127.5 Cranswick ...... 3572.0 32.0 3714.0 2472.0 Countryside Prop ...... 488.0 1.8 507.0 277.6 Moneysupermkt.com ...325.5 -1.0 417.7 307.8 Genus ...... 3080.0 -32.0 3246.0 2178.0 Pagegroup ...... 456.6 1.0 539.0 367.8 AUTOMOBILES & PARTS Caledonia Inv ...... 3070.0 -20.0 3180.0 2910.0 Greencore Gp ...... 245.6 5.5 281.8 191.0 Crest Nicholson ...... 500.0 0.0 500.0 332.0 Pearson ...... 568.4 2.6 943.8 563.4 GlaxoSmithKline ...... 1784.0 -8.4 1846.0 1480.0 Paypoint...... 999.0 -1.0 1118.0 844.0 GB Group ...... 711.0 -4.0 800.0 420.0 Aston Martin...... 498.8 96.1 1374.4 399.3 City of London IT ...... 421.5 -4.5 448.5 395.0 Hilton Food Gp ...... 1056.0 10.0 1118.0 894.0 McCarthy & Stone...... 147.4 -0.1 158.8 123.5 RELX ...... 2013.0 -18.0 2050.0 1606.0 Hikma Pharma ...... 1832.0 -3.0 2200.0 1556.5 Rentokil Initial ...... 467.0 -4.0 481.4 329.0 Gooch & Housego ...... 1410.0 -2.5 1527.5 954.0 Edin Inv Trust ...... 601.0 -7.0 652.0 535.0 Tate & Lyle ...... 792.8 -3.4 801.4 663.8 Persimmon ...... 3053.0 13.0 3053.0 1836.0 Rightmove Group ...... 657.8 -9.2 676.6 465.9 TI Fluid Systems ...... 237.0 -0.5 273.0 155.2 REAL ESTATE Sanne Group ...... 601.0 6.0 752.0 495.0 Hurricane Energy ...... 20.7 -0.4 53.6 20.7 European Opp ...... 885.0 -7.0 913.0 675.0 Unilever ...... 4533.5 6.0 5324.0 3983.0 Serco ...... 158.1 -2.2 167.7 111.7 BANKS Assura ...... 77.8 -1.0 79.3 56.7 Impax Asset Mgmt .....394.0 14.0 405.0 201.0 F&C Investment ...... 739.0 -12.0 783.0 673.0 FORESTRY & PAPER MAIN CHANGES UK 350 SIG ...... 92.5 -0.7 153.0 91.3 Bank of Georgia...... 1513.0 -119.0 1755.0 1252.0 Fidelity China SPE ...... 220.5 -2.5 253.0 202.0 Big Yellow Gp ...... 1179.0 4.0 1200.0 933.0 Mondi ...... 1546.0 -46.5 1898.0 1510.5 Travis Perkins...... 1551.5 -33.5 1692.5 1166.0 Iomart Group ...... 380.5 -4.5 400.0 316.5 Barclays ...... 168.0 -3.5 192.5 136.2 % % BMO Comm Prop ...... 110.4 -0.8 128.0 106.0 Fidelity Euro Values ....254.0 -5.5 268.5 217.0 GENERAL FINANCIAL Risers à Fallers Ä TECHNOLOGY HARDWARE & EQUIPMENT IQE...... 51.0 0.0 98.0 41.8 BGEO Group ...... 1513.0 3.0 1755.0 1252.0 Fidelity Spec Val ...... 262.5 -4.0 280.5 240.5 Aston Martin ...... 498.80 23.9 Future ...... 1280.00 -15.9 British Land ...... 554.6 -16.0 638.8 468.3 James Halstead ...... 570.0 4.0 570.0 440.0 HSBC Hldgs...... 551.8 -11.2 680.6 551.8 Finsbury G&I Tst ...... 889.0 -1.0 958.0 783.0 3i Group ...... 1104.5 -15.5 1184.5 885.6 HG Capital Trust ...... 267.50 12.9 Signature Avi ...... 291.20 -10.4 Captl & Count Prop ...... 243.6 -3.5 270.5 184.8 Spirent Comms ...... 221.5 -4.0 251.5 140.4 Lloyds Banking ...... 56.8 -1.1 67.2 48.6 GCP Infra Inv ...... 128.0 -0.6 134.0 122.6 Ashmore Gp ...... 543.5 -7.5 567.5 397.8 Avast...... 425.00 7.6 Hargreaves Lans ...... 1725.00 -8.2 CLS Hldgs ...... 271.5 -1.5 312.5 212.0 TOBACCO Johnson Service Gp .....210.0 2.0 211.5 128.0 Britvic ...... 925.50 5.7 Bank of Georgia ...... 1513.00 -7.3 Royal Bank of Scot ...... 218.3 -3.2 270.4 177.7 Genesis Emerging ...... 749.0 -14.0 818.0 684.0 Brewin Dolphin ...... 360.0 -2.0 375.2 287.6 Daejan Hldgs ...... 5200.0 -60.0 6160.0 4715.0 Br Am Tob ...... 3357.5 8.0 3507.0 2648.0 Keywords Studios ...... 1232.0 -31.0 1838.0 900.0 Talktalk Telecom ...... 118.50 4.9 Virgin Money UK ...... 164.25 -6.1 Standard Chartered .....631.0 -18.6 738.6 575.7 Greencoat UK ...... 142.2 3.0 152.8 128.8 Close Brothers ...... 1416.0 -31.0 1663.0 1227.0 Derwent London ...... 4110.0 -4.0 4186.0 2884.0 Imperial Brands ...... 1950.8 27.8 2713.5 1668.2 Galliford Try ...... 149.22 4.4 Premier Oil ...... 100.35 -4.8 Learning Tech Gp ...... 155.6 1.6 158.0 62.2 TBC Bank Group...... 1240.0 -2.0 1706.0 1150.0 Harbourvest Glb ...... 1836.0 0.0 1854.0 1406.0 Coats Group ...... 75.7 -0.1 91.3 68.1 Grainger ...... 296.2 -1.0 315.6 217.4 Helios Towers ...... 147.10 2.8 Kaz Minerals...... 437.80 -4.8 TRAVEL & LEISURE Virgin Money UK ...... 164.2 -10.8 220.1 104.4 Finablr ...... 82.6 -2.4 215.0 82.6 Grt Portland Est ...... 931.2 -4.6 948.6 649.4 M&C Saatchi ...... 100.0 -10.5 394.0 79.0 Herald Inv Trust ...... 1474.0 16.0 1514.0 1180.0 Intermediate Capital ...... 1742.00 2.5 Evraz ...... 352.60 -4.3 Hargreaves Lans...... 1725.0 -154.5 2433.0 1633.5 Hammerson ...... 233.4 -7.5 388.4 203.9 Carnival ...... 3118.0 -50.0 4430.0 3056.0 BEVERAGES HICL Infr ...... 177.8 1.2 180.0 156.6 Greencore Gp ...... 245.60 2.3 Antofagasta ...... 822.20 -3.8 M.P. Evans ...... 708.0 20.0 750.0 612.0 Land Securities...... 938.0 -12.0 1001.5 735.4 Cineworld Group ...... 177.3 -1.7 321.0 177.3 JPM American ...... 486.5 -3.0 506.0 420.0 IG Gp...... 663.8 4.2 708.0 474.8 Greencoat UK ...... 142.20 2.2 Ashtead Gp ...... 2455.00 -3.8 Majestic Wine ...... 210.0 0.0 318.0 210.0 Barr (AG) ...... 605.0 -1.0 975.0 526.0 Compass Gp ...... 1877.0 -22.5 2138.0 1654.0 JPM Emerg Mkt ...... 1002.0 -12.0 1088.0 878.0 Integrafin Holdings ..... 495.0 4.5 495.0 337.0 LondonMetric Prop ...... 227.8 0.0 241.2 185.0 Britvic ...... 925.5 49.5 1068.0 850.0 Dominos Pizza ...... 308.9 1.5 326.4 221.2 Midwich Group ...... 530.0 20.0 633.0 474.5 JPM Indian IT ...... 721.0 -12.0 790.0 633.0 Intermediate Capital .1742.0 43.0 1742.0 987.5 Reckitt Benckiser ...... 6281.0 -27.0 6688.0 5767.0 WPP ...... 945.0 -22.0 1077.5 800.4 NewRiver Retail ...... 188.0 -2.4 246.0 147.6 Coca-Cola HBC AG .....2786.0 -14.0 3074.0 2299.0 easyJet ...... 1393.0 5.0 1527.0 854.8 Mortgage Advice B .....790.0 25.0 795.0 546.0 JPM Japan IT ...... 434.0 -8.5 477.5 368.0 Intl Public Prtnshps ...... 167.2 -0.4 171.2 146.8 Redrow...... 795.0 2.0 806.0 533.0 MINING Primary Hlth Prop ...... 157.4 -1.4 160.2 116.0 Diageo ...... 3010.0 -19.0 3625.5 2913.5 Investec ...... 419.2 -12.1 518.6 395.3 Taylor Wimpey ...... 215.1 0.1 223.0 142.9 Safestore Hldgs ...... 805.0 0.0 817.5 561.0 EI Group ...... 284.2 0.2 285.0 194.0 Next Fifteen Comm .....506.0 0.0 658.0 465.0 Jupiter Fund Mngt ...... 385.6 -4.6 432.0 314.0 Anglo American ...... 1985.6 -45.4 2266.0 1666.6 CHEMICALS IP Group ...... 69.1 0.3 109.0 55.7 Savills ...... 1244.0 17.0 1244.0 817.5 FirstGroup ...... 123.8 -1.3 137.5 89.3 Law Debenture ...... 614.0 -22.0 654.0 552.0 Vistry Group ...... 1380.0 1.0 1399.0 975.0 Nichols...... 1345.0 15.0 1880.0 1322.5 Antofagasta ...... 822.2 -32.8 1022.5 779.6 Flutter Ent...... 8602.0 -174.0 9456.0 5525.0 Croda International ..4984.0 -121.0 5375.0 4564.0 Mercantile IT ...... 261.0 0.0 267.5 188.0 John Laing Gp ...... 355.0 -2.6 402.0 351.0 INDUSTRIAL ENGINEERING SEGRO ...... 910.6 0.0 915.8 636.6 BHP Group ...... 1659.8 -31.4 2049.0 1600.0 Go-Ahead Gp ...... 2048.0 28.0 2278.0 1783.0 Numis Corporation ...... 285.5 -5.0 306.0 212.0 Elementis...... 127.9 -1.9 197.9 127.9 Monks Inv Tst ...... 952.0 -13.0 997.0 788.0 London Stock Exch ....7836.0 12.0 7986.0 4489.0 Shaftesbury ...... 899.0 -1.0 979.5 739.5 Bodycote ...... 856.5 -18.0 971.0 652.0 Centamin ...... 136.0 0.3 152.3 79.8 GVC Hldgs ...... 877.2 -10.4 939.0 507.5 Johnson Matt...... 2605.0 -41.0 3454.0 2605.0 Murray Intl Tst ...... 1182.0 -32.0 1286.0 1114.0 Man Group ...... 153.9 -3.6 175.2 130.5 St Modwen Props ...... 493.0 -4.0 510.0 373.0 Polar Capital Hdgs ...... 584.0 -12.0 604.0 475.0 Hill & Smith ...... 1421.0 -29.0 1510.0 1049.0 Fresnillo ...... 662.4 12.4 1027.5 539.6 Intercontl Htls ...... 4685.5 19.0 5738.0 4419.5 Synthomer ...... 337.8 -8.2 420.8 279.0 Next Energy Solar ...... 118.5 1.5 126.5 114.0 Onesavings ...... 426.6 -6.0 452.0 313.6 TR Property IT ...... 476.0 -2.5 491.5 377.0 Purplebricks Gp ...... 107.0 -4.6 132.0 96.0 Paragon...... 508.0 -2.0 553.5 388.0 IMI ...... 1104.0 -21.5 1206.0 906.0 Glencore ...... 222.5 -3.9 340.3 216.9 Tritax Big Box ...... 139.7 -0.9 159.7 135.5 Intl Cons Airl...... 569.2 -3.2 671.0 413.5 Victrex ...... 2216.0 -10.0 2540.0 1845.0 Pantheon Intl Partn ..2435.0 -5.0 2620.0 2020.0 Redde...... 98.0 0.0 127.6 98.0 Melrose Ind ...... 233.2 -6.8 247.7 156.8 Hochschild Mining ...... 168.3 -0.4 227.0 152.0 Marstons ...... 104.7 0.4 131.4 93.3 CONSTRUCTION & MATERIALS Perpetual Inc & Grth ....317.5 -4.0 342.0 284.5 Plus500 ...... 891.2 -6.8 1647.0 495.0 UK Commercial Prop .....86.7 -0.1 92.7 79.9 RHI Magnesita ...... 3194.0 -38.0 5000.0 3194.0 Kaz Minerals ...... 437.8 -22.2 738.4 380.3 Unite Group ...... 1272.0 -12.0 1305.0 873.5 Mitchells & Butlers .....400.0 4.5 470.5 238.0 Renew Holdings...... 500.0 0.0 568.0 360.0 Pershing Square ...... 1466.0 -34.0 1578.0 1170.0 Provident Fin ...... 465.5 3.4 610.0 356.0 Balfour Beatty ...... 265.8 -4.2 295.0 194.2 Workspace Gp ...... 1216.0 -17.0 1247.0 806.0 National Express ...... 447.0 -3.0 476.0 383.0 Personal Assets Tst ..431500 -500 433500 395500 Quilter ...... 170.2 -1.9 174.7 120.8 Rotork ...... 304.3 -6.1 341.2 269.8 Polymet Int...... 1286.0 20.0 1286.0 772.6 RWS Holdings ...... 574.0 -11.0 670.0 460.0 CRH ...... 2856.0 -51.0 3100.0 2256.0 PPHE Hotel Gp ...... 2000.0 0.0 2100.0 1630.0 Polar Cap Tech Tst .....1602.0 -22.0 1682.0 1210.0 Rathbone Brothers .....1972.0 -8.0 2540.0 1966.0 Spirax-Sarco...... 8920.0 -15.0 9400.0 6510.0 Rio Tinto ...... 4084.0 -82.5 4976.5 3924.5 SOFTWARE & COMPUTER SERVICES Scapa Group ...... 251.5 -3.5 403.0 157.0 Galliford Try...... 149.2 6.3 177.2 102.4 Schroders ...... 3213.0 -27.0 3419.0 2541.0 Weir Gp ...... 1348.0 -37.5 1814.0 1261.5 Rank Gp ...... 286.0 1.0 286.0 144.0 Renewables Infra Gp ....131.8 2.4 139.2 115.4 MOBILE TELECOMMUNICATIONS Avast...... 425.0 30.0 551.0 282.0 Secure Income REIT ...471.0 0.0 473.0 394.0 Grafton Group...... 920.0 -16.5 937.0 645.5 TP ICAP ...... 396.9 2.7 417.5 270.0 Restaurant Grp ...... 129.1 -1.3 166.4 111.9 RIT Cap Partners ...... 2050.0 -10.0 2180.0 1954.0 INDUSTRIAL METALS Aveva Gp...... 4918.0 -32.0 5170.0 2750.0 Ibstock ...... 291.0 -0.6 322.0 208.6 Vodafone Gp ...... 149.3 -1.1 165.2 123.3 Stagecoach Gp...... 136.5 -1.1 167.0 115.5 Serica Energy...... 115.6 -4.4 143.4 103.6 Schroder Asia ...... 436.0 -10.0 485.5 424.0 GENERAL RETAILERS Computacenter...... 1794.0 -6.0 1829.0 1049.0 Marshalls ...... 789.5 4.0 876.0 496.6 Evraz ...... 352.6 -15.8 709.4 341.4 NONLIFE INSURANCE Wetherspoon (JD) ...... 1551.0 5.0 1734.0 1230.0 Scottish Inv Tst ...... 788.0 -7.0 843.0 769.0 B&M ...... 363.7 -6.9 420.9 315.0 FDM Group...... 981.0 12.0 1100.0 647.0 Smart Metering Sys.....514.5 21.5 659.0 310.0 Polypipe Group ...... 542.5 -0.5 554.0 372.8 Ferrexpo ...... 139.1 -1.3 301.3 123.0 Whitbread ...... 4470.0 -83.0 5152.0 3988.0 Scottish Mortgage ...... 581.0 -1.0 601.5 472.0 Dixons Carphone ...... 135.6 -3.0 152.4 104.9 Admiral Gp ...... 2259.0 -23.0 2330.0 2014.0 Kainos Gp ...... 790.0 -30.0 880.0 430.0 Telford Homes ...... 349.5 0.0 358.0 267.0 DIVERSIFIED INDUSTRIALS INDUSTRIAL TRANSPORTATION William Hill ...... 172.9 -2.5 205.2 132.3 Sequoia Econ Infra ...... 114.4 -0.6 118.6 110.0 Dunelm Gp...... 1159.0 0.0 1173.0 704.5 Beazley ...... 541.5 -2.5 628.0 494.0 Micro Focus Intl ...... 1025.2 3.0 2160.0 1004.0 Wizz Air Holdings ...... 4187.0 -13.0 4329.0 2880.0 Thorpe (F.W.) ...... 334.0 -1.0 359.0 267.0 Smith (DS) ...... 340.7 -8.6 394.8 307.9 Smithson Inv ...... 1294.0 -10.0 1346.0 1048.0 Frasers Group ...... 471.4 -9.2 518.0 214.0 Clarkson ...... 2920.0 -5.0 3110.0 2200.0 Direct Line Ins ...... 337.8 -1.9 366.5 270.5 Playtech ...... 345.1 -4.2 457.7 345.1 Watkin Jones ...... 247.5 1.5 255.0 199.6 Smiths Gp...... 1689.5 -32.5 1751.0 1378.0 Syncona ...... 214.0 -1.0 294.0 203.0 Howden Joinery Gp.....688.4 4.0 698.0 478.8 Fisher (James) ...... 1970.0 36.0 2260.0 1790.0 Hastings Gp Hldgs ...... 180.0 0.0 231.6 167.9 Sage Group ...... 738.4 -7.6 820.4 634.6 AIM 50 Smurfit Kappa Gp...... 2630.0 -86.0 2966.0 2096.0 Temple Bar IT ...... 1314.0 -28.0 1486.0 1162.0 Inchcape...... 657.0 -7.5 720.0 545.5 Royal Mail ...... 198.2 -3.5 286.7 188.4 Hiscox ...... 1313.0 -4.0 1777.0 1213.0 Softcat ...... 1155.0 5.0 1257.0 700.0 Abcam ...... 1394.0 -8.0 1500.0 1066.0 Young’s Brew NV ...... 1225.0 -5.0 1310.0 1030.0 Vesuvius...... 435.0 1.6 642.0 341.0 Templeton Em Mkts ....796.0 -14.0 876.0 731.0 JD Sports Fashion ...... 821.8 -2.6 874.0 448.4 Signature Avi ...... 291.2 -33.7 406.0 289.5 RSA Ins Gp ...... 550.4 -4.8 597.0 501.6 Sophos ...... 557.4 -5.4 577.0 298.2 Advanced Medical ...... 282.0 3.5 354.5 225.0 Young’s Brew-A...... 1550.0 -30.0 1885.0 1500.0 EU SHARES US SHARES Price Chg High Low Price Chg High Low ADIDAS...... 293.60 0.00 316.05 197.00 3M ...... 158.66 -3.85 219.50 150.74 AIR LIQUIDE ...... 130.75 -0.15 131.05 104.40 ABBOTT LABORATORIES ...... 87.14 -2.02 91.86 72.50 ALLIANZ AG ...... 218.50 0.00 223.80 182.72 ADOBE INC ...... 351.14 -5.60 356.74 253.74 AMADEUS IT GROUP ...... 70.82 -0.86 78.60 42.30 ALPHABET NON VTG-C ...... 1434.23 -21.61 1486.65 1036.23 ALPHABET-A ...... 1432.78 -21.47 1484.69 1116.79 ANHEUSER BUSCH INBEV ...... 68.42 -0.08 92.71 65.77 AMAZON.COM ...... 2008.72 138.04 2020.99 1588.22 ASML HOLDING NV ...... 254.25 -10.75 272.40 156.50 AMERICAN EXPRESS ...... 129.87 -3.35 135.11 103.42 AXA ...... 24.08 -0.15 25.47 20.11 APPLE INC ...... 309.51 -14.36 324.34 169.43 BANCO SANTANDER ...... 300.55 -8.30 402.00 294.70 AT&T ...... 37.62 0.19 39.63 29.45 BASF...... 62.23 0.00 74.49 56.20 BANK OF AMERICA ...... 32.83 -0.65 35.64 26.25 BAYER AG...... 73.59 0.00 75.75 52.53 BERKSHIRE HATHAWAY...... 224.43 -3.45 230.20 195.81 BMW ...... 65.56 0.00 77.75 58.70 BOEING CO ...... 318.27 -5.03 432.69 309.00 BNP PARIBAS ...... 48.05 -0.84 53.58 39.32 CATERPILLAR INC ...... 131.35 -4.02 150.53 113.38 CRH ...... 2856.00 -51.00 3100.00 2256.00 CHEVRON ...... 107.14 -4.26 126.54 110.37 CISCO SYSTEMS ...... 45.97 -1.27 58.05 43.52 DAIMLER ...... 42.65 0.00 59.31 40.53 CITIGROUP ...... 74.41 -3.02 81.91 60.33 DANONE ...... 72.40 -0.10 82.00 64.26 COCA-COLA CO ...... 58.40 -0.46 58.86 44.69 DEUTSCHE POST AG ...... 32.09 0.00 34.91 25.26 COMCAST ...... 43.19 -0.95 47.50 36.77 DEUTSCHE TELEKOM ...... 14.70 0.00 16.25 14.14 DOW ...... 46.07 -2.40 66.65 40.71 ENEL ...... 7.86 -0.23 8.09 5.10 EBAY INC ...... 33.56 -1.50 41.57 34.57 ENGIE...... 15.56 -0.07 15.88 12.45 EXXON MOBIL ...... 62.12 -2.67 83.38 64.11 ENI ...... 12.66 -0.27 15.94 12.93 FACEBOOK ...... 201.91 -7.62 223.23 174.60 ESSILORLUXOTTICA ...... 128.75 0.00 128.75 128.75 GOLDMAN SACHS GROUP ...... 237.75 -6.38 249.72 182.49 FRESENIUS MEDICAL CARE ...... 71.06 0.00 76.32 57.92 HOME DEPOT INC ...... 228.10 -4.69 238.85 181.14 HONEYWELL INTERNATIONAL ...... 173.22 -5.12 183.23 147.93 IBERDROLA ...... 9.87 -0.03 9.90 6.02 IBM ...... 143.73 6.96 151.36 126.99 INDITEX ...... 30.37 -0.55 32.37 2.55 INTEL ...... 63.93 -2.54 68.47 43.46 ING GROEP NV...... 9.82 -0.20 12.05 8.34 JOHNSON & JOHNSON ...... 148.87 -1.49 150.54 126.95 INTESA SANPAOLO...... 2.25 -0.05 2.41 1.83 JPMORGAN CHASE & CO ...... 132.36 -3.53 141.09 98.93 KERING ...... 555.00 -6.20 610.20 425.05 MASTERCARD INC ...... 315.94 -8.52 324.98 213.97 KON KPN NV ...... 2.53 -0.01 2.96 2.54 MCDONALD’S ...... 213.97 -2.21 221.15 173.97 L’OREAL ...... 251.90 -7.70 275.30 211.80 MEDTRONIC ...... 115.44 -2.71 121.09 84.15 LVMH MOET HENNESSY ...... 395.30 -3.60 439.05 282.60 MERCK & CO ...... 85.44 -1.06 92.04 73.19 MUENCHENER RUECKVE ...... 268.80 0.00 272.70 196.70 COMMODITIES TOURIST RATES MICROSOFT ...... 170.23 -2.55 172.78 105.25 NETFLIX ...... 345.09 -2.65 385.03 254.59 NOKIA ...... 21.88 0.00 21.88 21.88 Gold ...... 1582.74 +5.34 Copper Cash Official...... 5620.50 -77.25 Canada ...... 1.6511 New Zealand ...... 1.8856 NIKE INC ...... 96.30 -1.89 104.58 77.14 ORANGE ...... 12.80 -0.07 15.01 12.86 Silver (Pence) ...... 1772.50 +25.50 Aluminium Cash Official ...... 1722.25 -10.00 Croatia ...... 8.0005 Norway...... 11.51 ORACLE ...... 52.45 -0.86 60.15 50.22 ROYAL PHILIPS ...... 41.40 -1.02 45.61 33.72 Silver (Cents) ...... 1355.00 +13.00 Nickel Cash Official ...... 12532.50 -95.00 Czech Republic ...... 27.61 Poland ...... 4.4909 PAYPAL HOLDINGS ...... 113.89 -3.23 121.30 96.64 SAFRAN ...... 145.95 -1.65 150.05 112.25 Krugerrand ...... 1599.22 +4.53 Aluminium Alloy Cash Official ...... 1361.00 -44.00 Denmark ...... 8.4581 Singapore ...... 1.666 PEPSICO ...... 142.02 -1.81 143.83 118.61 SANOFI ...... 86.95 -0.91 92.72 72.24 Brent Crude ...... 58.29 -1.52 Natural Gas ...... 24.38 -2.28 Hong Kong ...... 9.6703 Sweden ...... 12.10 PFIZER INC ...... 37.24 0.17 44.40 34.24 SAP SE ...... 118.60 0.00 126.90 90.79 Platinum ...... 974.00 -10.00 Tin Cash Official ...... 16262.50 -50.00 Iceland ...... 143.33 Switzerland ...... 1.2129 PROCTER & GAMBLE ...... 124.62 -1.33 126.41 97.14 SCHNEIDER ELECTRIC ...... 90.52 -1.34 94.22 62.10 British Sovereign ...... 373.16 +1.04 Zinc Cash Official ...... 2235.00 -20.50 India ...... 82.47 Turkey ...... 7.4598 TRAVELERS COMPANIES ...... 131.62 -2.58 154.83 125.42 SIEMENS AG ...... 113.94 0.00 119.90 85.00 Lead Cash Official ...... 1835.50 -50.00 White Sugar ...... 408.20 +1.40 Israel ...... 4.0716 United States ...... 1.2524 TWITTER ...... 32.48 -0.74 45.42 28.89 SOCIETE GENERALE...... 29.23 -0.28 31.79 21.13 UNITED HEALTH GROUP ...... 272.45 -8.53 300.74 215.26 UNITED TECHNOLOGIES ...... 150.20 -3.80 154.47 119.14 TELEFONICA SA ...... 6.11 -0.05 9.18 5.94 WORLD INDICIES VERIZON COMMUNICATIONS ...... 59.44 0.08 62.07 53.57 TOTAL ...... 44.15 -0.78 52.27 43.18 Price Chg %Chg Price Chg %Chg Price Chg %Chg Price Chg %Chg VISA ...... 198.97 -9.24 208.21 168.86 UNILEVER NV ...... 52.70 0.25 57.56 47.05 FTSE 100...... 7286.01 -95.95 -1.30 S&P 500...... 3225.52 -58.14 -1.77 CAC 40 ...... 5806.34 -65.43 -1.11 Hang Seng ...... 26312.63 -136.50 -0.52 WALGREENS BOOTS ALLIANCE...... 50.85 -1.10 76.05 49.29 VINCI ...... 100.20 -0.95 102.40 76.20 FTSE 250 ...... 21143.49 -148.39 -0.70 Dow Jones I.A ...... 28256.03 -603.41 -2.09 Swiss Market Index ...... 10627.88 -121.04 1.13 Nikkei ...... 23205.18 +227.43 +0.99 WALMART ...... 114.49 -2.09 121.28 94.77 VIVENDI ...... 24.76 0.10 26.42 22.20 FTSE All-Share ...... 4057.47 -47.85 -1.17 Nasdaq Composite ...... 9150.94 -148.00 -1.59 ISEQ Overall Index ...... 6998.2 80.57 1.14 STI Index ...... 3153.73 -16.95 -0.53 WALT DISNEY CO ...... 138.31 0.50 151.64 107.79 VOLKSWAGEN AG ...... 164.30 0.00 185.52 138.16 FTSE AIM All-Share ...... 950.99 -0.42 -0.04 Xetra DAX...... 12981.97 -175.15 -1.33 FTSEurofirst 300 ...... 1604.59 -17.67 -1.09 ASX All Ordinaries...... 7121.20 +12.60 +0.18 WELLS FARGO & CO ...... 46.94 -0.97 54.46 43.38 CITYAM.COM MONDAY 3 FEBRUARY 2020 FEATURE 21 SPECIAL FEATURE Bindi Karia explains why a new officer in charge of a THE ETHICAL company’s ethics will become a staple member of EXECUTIVE the boardroom

E ARE undergoing a paradigm shift in our political, economic, Wand commercial worlds — and it’s truly stranger than fiction. Donald Trump, Brexit, Cambridge Analytica, the weaponi- sation of data, deep fakes, and artifi- cial intelligence (AI) — phenomena that would have seemed inconceiv- able a decade ago are now our day-to-day reality. While some businesses are ahead of the game, many have taken too long to wake up to this brave new world. So with demographic and technological shifts subverting everything that we thought we knew, how can businesses chart a way forward? GENERATION GAME Start with the fundamentals: people. Millennials (born after or around 1980) and Generation Z (born after 1996) are not just entering the work- force — they’re beginning to domi- nate it. As such, they are increasingly influencing how we work. Millennials, according to all the research, crave workplace satisfac- tion and work-life balance, but they also expect their employers to re- flect their own defined set of val- ues, especially around social and economic equality. Meanwhile, Gen Z — completely comfortable in a mobile-first, multi- device, multi-app environment — value making a meaningful contri- bution to the world, and in return expect their input to be respected. They are also less tolerant of hierar- chical corporate environments. Davos earlier this month, one of the suspecting users taken from the social in practice. Google’s advisory board, 2018, declared in a recent interview With millennials and Gen Z ex- most globally influential members of media platform for political purposes for example, was sadly disbanded that chief ethics officers should be pected to account for over 75 per cent Gen Z, Swedish teenager Greta Thun- — to see the material impact that this after just a week because of a back- the norm. of the workforce by 2035, organisa- berg, scolded the world’s billionaires can have on businesses. lash surrounding one of the ap- Why? “To ensure that the company tional culture must shift towards and chief executives for their role in Corporations cannot afford to ig- pointed members. Talking the talk is actually doing what it says it’s meeting the demands of these impacting climate change. nore this. And as a result, we’ve seen clearly isn’t good enough. doing. This person, along with inter- younger demographics. You only have to look at some of the some of the world’s largest technol- But there are companies out there nal audit procedures, would be re- Clearly, corporates need to get se- straplines of participating corpora- ogy companies try to address this tec- that are truly making an impact. sponsible for making sure that the rious about addressing this para- tions to see the impact her disapproval tonic shift by launching new To return to Davos, the chief execu- company is complying with its own digm shift, or they will end up with had. Take McKinsey, for example, initiatives, internal teams, and exter- tive of customer-relationship manage- data ethics policies and, frankly, no customers — and no staff. And which stated that it would be engag- nal advisory boards to demonstrate ment provider Salesforce, Marc thinking two steps ahead and antici- this message finally seems to be get- ing with business executives, experts, their willingness to change. Benioff, warned this year that “this pating danger — in precisely the way ting through. and policymakers to discuss topics in- Microsoft — long considered a “bad obsession that we have with maximis- that regulators can’t.” In August 2019, the Business cluding climate change, how technol- guy” ever since its 2001 Department ing profits for shareholders alone has Corporates know that they have Roundtable, an organisation repre- ogy can be harnessed for social good, of Justice antitrust judgment — led to incredible inequality and a to become more “humane” and senting over 200 chief executives of and the role of business leadership in launched an “AI for Accessibility” pro- planetary emergency”. He declared aware of their impact on society. America’s largest corporations, re- the twenty-first century. gramme in 2019, and has published a modern capitalism is “dead”, saying There are limits to what you can do leased a statement about their Nor is it only high-profile teenagers book on the effects of AI in certain in- that business leaders now have a “re- with company policy and messaging change in direction. It concluded who are making a difference. Change dustries and on bias in recruiting. The sponsibility” to think beyond just alone — if you want to be humane, that: “The best-run companies do is happening everywhere, on a mass tech giant now finds itself in the shareholders. you need a human. Once you’ve re- more. By taking a broader, more com- scale. The employee walkouts at ironic position of suing the US govern- Benioff is putting his money where alised that tomorrow’s workers and plete view of corporate purpose, Google and the #DeleteUber cam- ment to defend its customers’ privacy his mouth is. Not content to just talk consumers demand greater social boards can focus on creating long- paigns on social media show how rights. In addition, Microsoft an- about ethics, he’s hired someone to and ethical responsibility from com- term value, better serving everyone — times are changing, finally. Employees nounced recently that it aims to be make it happen. In 2019, the com- panies, you need to put that at the investors, employees, communities, and consumers alike are fed up with carbon negative by 2030. pany appointed Paula Goldman as heart of your business. suppliers, and customers. In the end, the status quo. Google, meanwhile, set up an exter- chief ethics officer to “implement a It’s only a matter of time before it’s the most promising way to build Technology, most notably in the nal advisory board in April 2019 to strategic framework for the ethical chief ethics officers are a staple part long-term value.” form of social media hashtag cam- focus on the ethics of its own AI work and humane use of technology” and of any big company’s management paigns, is making it easier for people and to ensure that it was following its build “an understanding of Sales- team. Could 2020 be the year that THE POWER OF PROTEST to gang up against companies for not own manifesto on AI principles. force’s broader responsibility to their this new job title becomes main- So are corporations really becoming doing the “right thing”. Look at the customers and society”. stream? My money’s on yes. more “woke”? Clearly, they are — or $36bn drop in Facebook’s valuation in WANTED: A CHIEF Benioff isn’t the only one to have at least, they are realising that they March 2018 — after The Guardian pub- ETHICS OFFICER had this idea. Julian Wheatland, act- £ Bindi Karia is founder and chief have no choice. lished its findings on how Cambridge You can, of course, doubt how effec- ing chief executive of Cambridge An- executive of boutique advisory firm Bindi At the World Economic Forum in Analytica used data on over 87m un- tive these initiatives are going to be alytica until it was shut down in May Ventures and an ambassador for Innovate 22 FEATURE MONDAY 3 FEBRUARY 2020 CITYAM.COM ENTREPRENEURS ROCK THE JOINT Luke Graham meets the Mumford & Sons’ band member trying to save Britain’s music venue scene

EAR King’s Cross station, a expand internationally and launch in- new social hub is currently dependent venues around the world. under construction. Due to The next venture will be in Huntsville, Nopen in March, the space — a city in Alabama. called Goods Way — will con- “We’re now working with the city to tain a food court, bar and a 600- build an 8,000-seat amphitheatre,” ex- capacity venue known as Lafayette. plains Lovett. “It’s very exciting. There Goods Way is the brainchild of Ben are challenges to running an organisa- Lovett, the chief executive of Venue tion in multiple countries, but I jump Group, who sounds excited but nerv- back and forth between the UK and US ous as we speak just a few weeks ahead monthly. The advantage is maintain- of the opening. ing cross learning. There’s a lot of stuff “The stakes are high, as they should that folk in America are doing that we be,” he tells me. “It’s being built from can learn from, and vice versa.” scratch, and we’re commissioning But do these plans distract Lovett equipment. We’ve also hired nearly from his music career? Not at all. In 100 new staff, and getting them all in- fact, he says that his bandmates are ducted, trained, and creating a culture very supportive. unique to what Venue Group does is a “The thing about Mumford & Sons is lot to tackle.” we’re old, old friends. Lead singer Mar- Readers may recognise Lovett as a Top: Ben Lovett performing on stage. Above left: The Courtyard within Goods Way. Above right: A band playing at Omeara cus and I go back 25 years now, and member of the award-winning folk we’ve been making music together rock band Mumford & Sons. The group into understanding the various pitfalls reer in the industry is viable. to people that its worth following since we were 12,” he says. “They’re formed in 2007 and has released four and challenges of our industry. One of “We’ve done a lot of work with artists through on their dreams.” very encouraging of all the Venue albums, and is perhaps best known for those areas that kept on coming up with Omeara over the years, but also Lovett is passionate about the impor- Group and Communion endeavours, the 2009 single “Little Lion Man”. But was a rising tide around the island of with individuals looking to get into tance of music venues, saying that which helps a lot. It makes it all a lot alongside this busy musical career, the venues — they were becoming more bands, music production, and touring they’re more than just a functional easier, because it could go either way.” 33 year old is a prolific entrepreneur. and more scarce,” explains Lovett. through partnerships with educa- space for bands to perform. Lovett reveals that the band are still “I started a company 14 years ago Despite the efforts of campaigners tional programmes like the London “If it was just a case of building a writing and working on projects, in- called Communion when I was 19 and politicians like Sajid Javid, who College of Creative Media and working black box, there’d be lots of them, but cluding a film about their journey to years old,” he says. “It is an independ- committed to strengthening planning with their students, to show them that doing it in a way that feels inspira- Senegal to visit the musician Baaba ent concert promoter, record label and rules to protect grassroots concert there’s a great platform and to prove tional, both to fans and to artists, to Maal in his hometown, which they publishing company. I was working on spaces when he was housing secretary walk out on a stage in a room that hope to finish in the next few months. various projects with artist develop- in 2018, one music venue closes every complements the effort and ingenuity What I find remarkable about Lovett ment and career growth this whole month, according to Insure4Music. In that has gone into their craft — that’s is how he’s managed to balance his time alongside being in the band.” fact, 20 per cent of the UK’s small ven- a challenge,” he says. thriving music career with his entre- Lovett then set up Venue Group in ues have closed in the last 15 years. So how has his experience impacted preneurial achievements. But Lovett 2016, and the company’s first ven- “Venue closures have become a main- the design of Omeara and Lafayette? counters by pointing to artists like the ture was Omeara, a 325-capacity stream issue,” recalls Lovett. “But prior There’s a rising “I think as Mumford & Sons, we’ve US rapper Jay-Z, who has built a busi- music hall and club space near Lon- to that I was thinking that there was a performed in over a thousand venues ness alongside his creative endeavours. don Bridge. The drive behind this responsibility to transfer what I’d tide around the around the world,” he says. “I have a bit “I see it all as creating,” he explains. business was partly so he could cre- learned and the skills I had, but also to of a photographic memory, so I’ve “Whether it’s building platforms or ate an ideal performance space based reinvest some of the money I’d made island of venues. taken snapshots around the world of physical spaces, or creating songs or on his years of touring, but also from from the music industry back into it, things that I’ve loved. Omeara was the tours, it all comes from a similar the realisation that the number of in- in order to support the next genera- They are first reflection of that. Lafayette and place. I think for some people it’ll be dependent, grassroot venues in the tion of grassroots talent.” becoming more Goods Way are the latest reflection of strange, but for me I know a ton of en- UK is falling. He adds that Venue Group is trying where I would want to play.” trepreneurial musicians, and in that “There’s been a lot of effort going to show this next generation that a ca- and more scarce Looking ahead, Venue Group plans to sense I’m just one of many.” CITYAM.COM MONDAY 3 FEBRUARY 2020 FEATURE 23 OFFICE POLITICS Embrace the apprenticeship revolution

have done little to help black and mi- Becoming an apprentice is a solid alternative nority ethnic (BME) or state-educated people get into top jobs. Even with a to university, but what’s driven this change? degree, BME Brits are between five and 15 per cent less likely to have a job six F YOU are looking for a business Sophie months after graduation. Apprentice- leader of the future, look no fur- Adelman ships provide another route for them. ther than Jamilah. Her peers are However, the social aspect of univer- yet to graduate from university, DOWN WITH sity often pushes people down an aca- and this brilliant digital marke- THE KIDS demic path, even when they know it Iteer already has a qualification and a is not right for them. It is seen as a role at Google on her CV. TikTok time to make friends and build net- Jamilah, and thousands like her, are Free works that will set them up for life. taking advantage of new apprentice- But there is no reason why universi- ship opportunities, shaking up the re- If you want to ties should monopolise this. ceived wisdom that you need to go to tury ago. Success in the workplace re- know what’s For apprenticeships to become the uni to get a prestigious career. quires transferable skills developed popular with outstanding alternative to university, With National Apprenticeships Week through application rather than class- today’s youth, this community offer has to be just as starting today, it is time to celebrate room learning. Applied learning is you should good. That is where Jamilah comes in. their success. where apprenticeships lead the way. probably For the next stage of her career she Britain’s top employers are fuelling Second, apprenticeships themselves download video will be the apprenticeship community this change, driven by a need for moti- have changed. Yes, they may still be a app TikTok. If president at WhiteHat — running vated, skilled talent. Many firms are reliable route into engineering and you’ve got time events, creating societies, and bring- dropping a university degree as an construction, but the areas of real sus- The reason that revolution? Diversity is now an existen- to kill, you can ing apprentices together to build con- entry requirement to the workplace, tainable growth are in professional apprenticeships tial issue for businesses. McKinsey re- spend ages nections. Done right, this will make and accountants are reporting that ap- services, digital, and technology. My have kept up to search has found that companies in scrolling through apprenticeships the natural choice for prentices are outperforming graduates company, WhiteHat, runs best-in-class date is simple: the top quartile for racial and ethnic the funny, any young person with big dreams in their qualifications and showing apprenticeships in the jobs of the fu- they rely on a diversity are 35 per cent more likely to creative videos and the motivation to be successful. greater long-term commitment. It’s ture, such as digital marketing, data partnership have financial returns above their re- made by users. The world of work is changing be- nothing short of a revolution. analysis, and software engineering, with employers spective national industry medians. You could even yond all recognition. Companies need So why is this happening? First, the and employers pay for the training Meanwhile, 63 per cent of millennials dabble in skilled employees, and young people world of work is changing. The digital using their apprenticeship levy. would consider quitting if their em- creating your are looking for better routes into top revolution is shifting not just how we The reason that apprenticeships have ployer did not prioritize diversity and own content careers. Together, we can harness the do our jobs but the actual jobs we do. kept up to date is simple: they rely on inclusion, according to Deloitte. using the app’s apprenticeship revolution to deliver Universities are failing to keep pace a partnership with employers, and so Again, existing structures are not de- editing tools. the skills that our economy needs. with this changing workplace. Even respond to the needs of business much livering what top firms need. Universi- the best universities still teach people faster than universities ever will. ties have made important strides in £ Sophie Adelman is co-founder and in the same ways that they did a cen- The final driver of the apprenticeship recruiting more diverse graduates, but president of WhiteHat. 24 LIFE&STYLE MONDAY 3 FEBRUARY 2020 CITYAM.COM TRAVEL

GOGGLES TROUSERS DRAGON ALLIANCE DX3 PICTURE HAAKON BIB PANT £55, DRAGONALLIANCE.COM £209.95, SKIBARTLETT.COM A modern over-the-glasses goggle in an The Haakon Bib is a double-layer, lightweight affordable price range, the DX3 features snowboarding pant that gives complete Lumalens tints and a new internal protection whether you’re on your board or frame for improved ventilation. tumbling arse over elbow down the side of a mountain. It’s versatile, with adjustable suspenders and a removable bib to ensure a fit that’s snugger than a shrew in a snowboot. DryPlay membrane and zippered vents on the thighs ensure things don’t get too swampy.

GEAR UP Heading to the slopes? Our guide to BOARDS 2020’s top ski and snowboarding kit JONES TWIN SISTER will make sure you hit your peaks £439, SNOWBOARD-ASYLUM.COM

The most versatile board in the Jones line, the award-winning Twin Sister is perfect choice for anyone wanting to ride the whole mountain. Built around a versatile directional twin shape, utilising Jones’s innovative blunt nose tip and tail profile, the Twin Sister has all the balance and control of a freestyle board combined with the powder and piste performance of an all-terrain charger. BACKPACK PICTURE DECOM 24L €130, PICTURE-ORGANIC-CLOTHING.COM

Don’t even think about heading out on a freeride expedition without this capacious hauler strapped to your back. The roomy Decom 24L takes everything from a snow axes and goggles to wide skis and snowboards, and features an ergonomic hipbelt to make sure it doesn’t slip off and tumble down a crevasse.

BOOTS DANNER ARCTIC 600 £209, DANNER.COM

An all new design for 2020, the Arctic 600 is a tough enough boot to see you to the top of the steepest trails and back again, with a high-traction outsole providing grip on wet and dry surfaces. They’re comfortable enough to wear out and around the resort too, thanks to a hyper-cushioned midsole and premium suede upper. CITYAM.COM MONDAY 3 FEBRUARY 2020 LIFE&STYLE 25

JACKET GLOVES WAKAY JACKET DELTANA PINK PAINTER SNOW GLOVES £110, WEEKENDBEE.COM £65, TALLINGTONLAKESPROSHOP.COM

This versatile mid-layer These insulated Deltana gloves are jacket is made from Polartec waterproofed and windproofed in cutting Thermal Pro knit to keep edge DryPlay membrane, making them not you warm no matter the only durable enough to survive season after weather conditions, while season, but breathable in every kind of the elasticated wrist and weather condition you could name. A waistbands provide iron- zipped hotshot pocket can be used for clad wind protection on heated handwarmers or to store your even the most blustery of liftpass, while the luxuriously soft brushed days. Side-zippered pockets fleece lining is a real treat for the paws. and an invisible zippered chest pocket give you plenty of options for securely storing your loose items.

GLASSES DRAGON ALLIANCE EXCURSION X £199, DRAGONALLIANCE.COM

Being on top of mountains can often mean increased levels of harmful ultraviolet light. These Excursion X lenses are purpose-built for alpine exploration at high altitudes, with removable sunshields to block damaging rays. They’re stylish enough to continue wearing off-piste too, coming in a variety of colours and styles to suit all tastes. A detachable leash gives you peace of mind that your fancy 200 quid specs won’t end up left behind on a ski lift.

JACKET HARVEST JACKET £390, SKICLUB.CO.UK

The Harvest Jacket from Picture employs a partially bio-based membrane, chemically sourced from castor oil to reduce the garment’s environmental impact. Namaste. As well as helping the planet, it also keeps you toasty with pro- grade windproofing and waterproofing. That the manufacturer describes the hood as “ergonomic” is the final nail in the coffin for that word continuing to have any useful meaning at all. 26 SPORT MONDAY 3 FEBRUARY 2020 CITYAM.COM SPORT Four things we learned as dazzling France blew away England in the Six Nations in Paris. By Frank Dalleres F FRANCE were seeking a per- formance to answer the sceptics who suspected their latest fresh start might prove to be another false dawn, then this resounding SixI Nations defeat of England ought to silence most. Les Bleus married their trademark attacking flair with uncharacteristi- cally resolute defending as they swept into a 24-0 lead yesterday at the Stade de France, only allowing the visitors a lifeline when the con- test was effectively over. A first victory in their opening match of the championship since 2016 provided an ideal start to head coach Fabien Galthie’s tenure, with SACRE new captain Charles Ollivon fittingly scoring two tries. For a lacklustre England and their boss Eddie Jones, Jonny May’s in- spired brace and a losing bonus point will do little to deflect some uncom- fortable questions. NOUVELLE VAGUE Flanker Ollivon may have been the BLEU most prominent French name on the scoresheet but it was scrum-half An- toine Dupont who ran the game. Much of the optimism surrounding this new wave of French talent rests SIX NATIONS 22 and six times they were repelled rience in Japan, England remain open MARVELLOUS MAY on the half-back axis of Dupont and by a blue wall – in one case, with mo- to the accusation they are still suffer- That England had something to fight Romain Ntamack and here, espe- FRANCE ENGLAND mentum now behind them, as re- ring the effects of their World Cup for in the closing stages here was cially in the first half, they demon- placement George Kruis made a final defeat by South Africa. down to one player alone. strated precisely why. desperate lunge between the posts. As they were in that game, Eddie Having been partly at fault for Fly-half Ntamack’s inside pass re- Credit must go to an Englishman, Jones’s side were turgid and pre- France’s second try, pulling out of a leased Vincent Rattez to touch down of course, in Shaun Edwards, the for- dictable in possession, and firmly sec- tackle on Rattez in the belief there in a frenetic opening spell, and Rat- mer Wales and British and Irish ond best in all departments. had been a knock-on, May more than tez fed Ollivon to streak clear for the Lions defence coach who has seem- Captain Owen Farrell insisted in his made amends with two superb solo ef- second, with English complaints of a 24Tries: Rattez, Tries:17 May (2) ingly already worked his magic on post-match interview that the root of forts after half-time. knock-on rejected. Ollivon (2) Cons: Farrell (2) new charges. their tepid display was “not mental fa- For the first, May ran onto his own When France scored again on 55 Cons: Ntamack (3) Pen: Farrell France conformed to type in their tigue”, adding that the squad had kick down the right flank to touch minutes Dupont was the architect, Pen: Ntamack Rugby World Cup quarter-final been raring to begin a new Six Nations down and the second was even better, his line break and pass freeing Ol- against Wales last year, squandering campaign. a weaving run outside then in that livon to slide over on a greasy pitch, a winning position, but just three Whatever the reason, a fifth defeat left three French players tackling despite Ben Youngs’s desperate last- in attack, this was a result built every months later they appear a much from seven away games in the cham- fresh air. ditch tackle. bit as much on a French defence’s de- hardier proposition. pionship does not make pretty read- The Leicester wing and a late Farrell termination not to cede an inch to ing for Jones as he ponders a first penalty that earned a losing bonus KING EDWARDS the visitors. WORLD CUP HANGOVER fixture in Scotland since his hostile re- point were the only silver linings on a For all their fluidity and penetration Six times England got to the hosts’ If the French have built on their expe- ception two years ago. chastening occasion for England. Gutsy Djokovic inches closer to Federer’s grand slam tally

major titles await. perhaps be his best bet, but he will have more opportunities to Portuguese holds, for most tennis He may not be the His comfortable victory over Roger Djokovic, who has now moved on to set a new record. and sports fans, Federer, not Federer in the semi-final was telling 17 major titles and is just three The 32-year-old is not as widely Djokovic, will still be the greatest most loved but he and ended any hope that the 38-year- behind Federer’s record, is loved as Federer; not adored by fans tennis player of all time – even if the old, who was short of his best due to breathing down his wherever he goes or cheered on Serb does surpass his tally. will likely be most injury, held of joining him on seven neck. by those watching whoever he Djokovic still deserves immense titles. Of course, Nadal, plays. praise, though. His focus and decorated, writes Aside from the Swiss, it leaves on 19 slams, is Indeed, after clinching ruthlessness on the big occasion are Djokovic by far and away the only closer to victory yesterday he unquestionable. Those ice cold veins Michael Searles active player to have won the breaking shushed a crowd that that mean he is not as popular as tournament more than once. Rafael Federer’s some of his peers serve him well Nadal and Stan Wawrinka are the record and Djokovic now has 17 when the pressure is on, like when OVAK Djokovic’s eighth only others to have won it. will in all grand slams, three short Thiem held a 2-1 lead on Sunday. victory at the Australian For Federer, who for much of the likelihood of Federer’s record One of just seven men to have won Open has cemented his past fortnight illustrated his equal it at the all four grand slams, this winning position as the most ongoing defiance of the ageing French Open had cheered for Thiem. start means it is not inconceivable successful player to ever process, the chances of claiming this year, where But with each passing that he becomes the first in the Ngrace the grand slam. another win in Melbourne look the Spaniard will year the grand slam record Open Era to win them all in a single The Serb’s gutsy 6-4, 4-6, 2-6, 6-3, 6-4 unlikely. seek a 13th win. looks increasingly likely to year, if he can overthrow Nadal’s win over Dominic Thiem yesterday He came back from the brink of But there is be his. Roland Garros reign. saw him claim an eighth crown in defeat in both his second-round and something about Djokovic’s Much in the same way Lionel Messi That task may continue to prove Melbourne – more than any other quarter-final ties, and insists he can ability to excel on all surfaces, along will be considered better than insurmoutnable but this latest player from any other era. The still win a 21st grand slam. with the fact that he is a year Cristiano Ronaldo by many triumph is proof that Djokovic’s CV question now is of how many more Wimbledon this summer will younger than Nadal, that suggests regardless of how many records the is far from completion. CITYAM.COM MONDAY 3 FEBRUARY 2020 SPORT 27

THIEM: THE BIG THREE SPORT DIGEST GUNNERS HELD Arsenal draw a blank in stalemate with Burnley MAKE TITLES MEAN MORE £ Dominic Thiem says playing in the Cushing marked his final game at the same era as Roger Federer, Rafael club before joining New York City as an Nadal and Novak Djokovic has made assistant manager with a win over the him a better player. Thiem was beaten defending champions. Pauline Bremer 6-4, 4-6, 2-6, 6-3, 6-4 by Djokovic in the opened the scoring from close range final of the Australian Open yesterday, before Lauren Hemp’s looping header but the Austrian believes the level of made it 2-0. Danielle van de Donk fired competition has benefited him. in to half the deficit but Ellie Roebuck “These guys brought tennis to a produced a point-blank save to keep complete new level. They also brought City top of the WSL, a point ahead of me probably to a much better level,” Chelsea, who thrashed West Ham 8-0. Thiem said. “It was easier for sure in a different era to win big titles, that’s 100 I WILL FIGHT FOR A PLACE IN per cent, but I’m happy I can compete THE TEST SIDE, SAYS MOEEN with these guys on the best level.” £ Moeen Ali has vowed to return and fight for a place in England’s Test side. MCDOWELL HAILS ‘SPECIAL’ Ali, who has not played Tests since VICTORY IN SAUDI ARABIA being dropped after the first Ashes £ Graeme McDowell won his first Test in August, said he had considered European Tour title for six years with quitting the five-day format, but could victory at the Saudi International return for England’s upcoming tour of yesterday. The Northern Irishman, Sri Lanka. “Ultimately it is about if I who had dropped to 104th in the feel I am ready to play again,” the all- world rankings, shot a level-par round rounder told Sky Sports. “I want to of 70 on Sunday to finish on 12-under, come back a better player and be a two shots ahead of Dustin Johnson part of the whole journey.” and record his 11th victory on the tour. “It’s special,” he said. “I’ve worked SHERROCK QUALIFIES FOR hard the last year and a half to be back DART’S UK OPEN IN MARCH up there one more time playing £ Fallon Sherrock continued her against these top guys. I’ve got young meteoric rise in darts by qualifying for kids at home and I want to show them the UK Open on the weekend. that dad’s tough and dad can do it.” Sherrock, who became the first woman to win at the PDC MAN CITY BEAT ARSENAL IN Championship in December by Mikel Arteta rued his side’s poor finishing after Arsenal were held to a 0-0 draw at Burnley in the Premier League yesterday. The Gunners CUSHING’S LAST MATCH beating Ted Evetts and Mensur recorded a fourth straight draw – their 13th from 25 league games – as their strikers misfired at Turf Moor. Pierre-Emerick Aubameyang £ Nick Cushing ended his spell as Suljovic, came through a field of more could not take his chances, while Alexandre Lacazette also headed wide. Burnley could have won it, but Jay Rodriguez struck the underside Manchester City manager in style than 200 players to win a qualifying of the bar with a volley (pictured) and Jeff Hendrick and James Tarkowski could not convert headers. “We need to improve the quality of yesterday as his side beat Arsenal 2-1 event in Wolverhampton on Saturday our play, be calmer and improve the end product,” Arteta said. “In the offensive part of our game, we have to do better for longer periods.” in the Women’s Super League. and earn a spot in the event. MOURINHO BLUEPRINT

Spurs beat Man ling’s follow-up appeal for a foul Steven Bergwijn against Lloris was waved away as the City by playing in volleyed in on his handbags came out. Spurs debut to After the break Spurs continued to the classic style of open the scoring live a charmed life, with Aguero and then Sterling failing to capitalise after their manager, Lloris clashed with Davinson Sanchez to leave the goal gaping. writes Felix Keith Then came the game-turning mo- ment. Mahrez’s woeful corner invited Harry Winks to counter and the Spurs T HAS taken some time but Totten- midfielder was brought down by ham have now experienced peak Zinchenko. The left-back’s second yel- Jose Mourinho. A return to his past low was quickly followed by the open- glories came in the perfect sce- ing goal, as new signing Steven nario – against his arch foe – and, Bergwijn announced himself with a moreI importantly, in the most tradi- brilliant, instinctive volley into the bot- tional of manners. tom corner with Spurs’ first shot on Tottenham had three shots, spent the target. majority of the game with every player Mourinho had benefited from luck, behind the ball being pummelled by but he can claim his fingerprints on their opponents, and yet they won 2-0. the second goal. Substitute Tanguy The scoreline owed a great deal to Ndombele came onto the pitch and good fortune, with Ilkay Gundogan’s straight away drove forward in mid- first-half penalty saved by a Hugo Lloris field to feed Son Heung-min in space. who came well off his line, and Olek- The South Korean shot past Ederson sandr Zinchenko’s two yellow cards via a deflection off Fernandinho and giving them more than a helping the stadium erupted. hand. That was the tactical side of Mour- But viewed in the context of Mour- inho. There was also the classic techni- inho’s management career, the game cal area theatrics to go with it, the actually followed a well-worn blue- Portuguese springing to his feet to print. It may have been remarkable for argue with the fourth official when the number of controversial incidents Sterling, who had already been – VAR induced or otherwise – but it booked, made another foul. was reminiscent of so many of the Por- His team may have harked back to his tuguese’s greatest moments. PREMIER LEAGUE in particular. probed down the wings through Ra- glory days, but post-match there was Like Spurs, Mourinho’s Inter Milan Spurs’s manager is a pragmatist. heem Sterling and Riyad Mahrez. They none of the gloating of old. He was al- had just one third of the ball in their TOTTENHAM MAN CITY Since taking over from Mauricio penetrated the home side’s penalty most downbeat in his manner, if not in famous Champions League final suc- Pochettino he has preached baby steps area on several occasions and should his criticism of VAR, as he underlined cess against Bayern Munich in 2010. towards attainable goals. There have have taken the lead. his key messages. Spurs are looking But like Spurs, they also triumphed been promises of gradual evolution in- Sergio Aguero was uncharacteristi- down the table as well as up. Injuries 2-0. stead of revolution. On Sunday we saw cally wayward. Sterling was haphazard are making his job harder. Mourinho’s modus operandi of sit-in, the embodiment of what he has been near goal. It was VAR which came to “We look up, but we also look down,” hold your shape, slow the game down talking about as Spurs moved fifth and their aid, awarding a penalty for a foul he said. “I look to my team, to my with niggly fouls before looking to to within four points of fourth place in on Aguero some two minutes after the squad, with the problems we’ve had Bergwijn20 63’, spring fast attacks on the counter-at- the Premier League. incident, leaving fans inside the sta- with injuries. It’s going to be hard.” tack has been successful for a reason – Son 71’ In the first half Spurs were second dium equally confused and furious. This is Jose Mourinho 2.0: reserved and and successful against Pep Guardiola best. City dominated the ball and Gundogan could not convert and Ster- realistic.