Bloomberg Brief: London
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Wednesday 18 May 2016 BUSINESS, POLITICS & CULTURE www.bloombergbriefs.com TALKING POINTS EU 'Remain' Has Widest Poll Lead in 3 Months Khan Backs Garden Bridge: London BY ALEX MORALES Mayor Sadiq Khan said he would back A U.K. opinion poll showed the biggest lead in the proposed Garden Bridge across the three months for remaining in the European Union Thames if plans were amended to meet in next month’s referendum. The pound rose. his requirements. He said the project The Ipsos Mori telephone survey for London’s could rival New York's High Line, a public Evening Standard newspaper showed 55 percent park built on a disused railway line. of respondents saying they’ll opt to stay in the 28- nation bloc in the 23 June referendum, up from 49 Sun Headline Was 'Misleading': The percent last month. Support for a so-called Brexit Sun newspaper broke press standards fell to 37 percent from 39 percent, with 8 percent with a front-page headline reading undecided. The 18 percentage-point lead is the “Queen backs Brexit” after Buckingham biggest since mid-February and it was the second Palace filed a complaint saying it was Source: Chris Ratcliffe/Bloomberg poll in as many days to show a double-digit lead Prime Minister David Cameron was inaccurate, a watchdog group ruled. The for “Remain.” likely pleased to see the poll results. Independent Press Standards The poll will provide a boost to Cameron, whose Organisation ruled that the headline was Conservative Party is split down the middle on the issue. While the premier and “significantly misleading” and breached Chancellor of the Exchequer George Osborne are campaigning for a “Remain” vote, an accuracy clause in the group’s Justice Secretary Michael Gove and former London Mayor Boris Johnson want to quit. Editors’ Code of Practice. Today’s poll showed that the largest shift in voting intentions was among Conservative Sotheby’s Sets Jewellery Record: supporters, according to the pollster. Sotheby’s beat its own world record for a “Remain has been boosted by a Conservative swing, but they are also more likely to jewellery sale, amassing $175 million at change their mind, so in this volatile election, with voters divided over the short and long- an evening auction of precious stones in term impacts of their decision, nothing can be taken for granted,” Ipsos Mori Head of Geneva where a pink diamond was sold Political Research Gideon Skinner said in an e-mailed statement. for $32 million.The Unique Pink, a 15.38- The pound jumped to a new two-week high against the euro and reversed its drop carat pear-shaped diamond, was against the dollar after the poll was published. estimated to be worth as much as $38 Ipsos Mori surveyed 1,002 adults by phone between 14 and 16 May. It didn’t give a million. margin for error. Android Pay Rolls Out: Alphabet An ORB poll for the Telegraph yesterday showed remain leading on 55 percent Inc.'s contactless mobile payment system support, compared with 40 percent for a leave vote. Android Pay went live in the U.K. today, making the nation the first outside of the Ex-Barclays Trader Says Sushi Offer Wasn’t a Libor Bribe U.S. to support the service. Shoppers will be able to pay with their Android- BY JEREMY HODGES powered smartphones anywhere that A former Barclays Plc trader on trial for rigging Libor said it was made clear to him that accepts contactless payments, including he’d have to help manipulate the benchmark as soon as he joined the bank’s swaps on London’s transit network of buses, desk. taxis and underground trains. Visa and Stylianos Contogoulas told a London jury that his boss, Fred Gourtay, took him to MasterCard accounts are eligible to be meet the money markets desk and that he was introduced to Libor setter, Peter added to compatible Android phones. Johnson. "The gist of it was that" Contogoulas "would be asked to pass on requests to PJ on Alibaba Said to Discuss FIFA occasion," he said as he gave evidence for the first time. His subsequent offers of Sponsorship: Chinese e-commerce coffee and sushi to Johnson and underling Jonathan Mathew were just “to show his giant Alibaba Group Holding Ltd. is appreciation” to the team rather than a “bribe.” discussing becoming a top sponsor of Prosecutors say that Contogoulas, 44, and four of his colleagues conspired to rig the FIFA, according to people familiar with London interbank offered rate, a benchmark tied to trillions of dollars in securities and the matter, a partnership that would loans. Contogoulas, Mathew, 35, Jay Merchant, 45, Alex Pabon, 37, and Ryan Reich, strengthen the ties between China’s 34, all deny conspiracy to defraud charges dating from 1 June 2005 to 31 Aug. 2007. power brokers and global soccer’s top Contogoulas said Gourtay, who is named as a co-conspirator on the indictment, did executives. nothing to suggest that what he was doing was suspicious or secret. Johnson pleaded guilty to manipulating the benchmark rate in October 2014. Gourtay isn’t on trial and hasn’t been charged. POLITICS 18 May 2016 Bloomberg Brief London 2 POLITICS AROUND WESTMINSTER Cameron Papers Over Tory Splits With Legislative Plan Green Faces BHS Grilling: Billionaire BY ROBERT HUTTON AND ALEX Philip Green will be questioned by U.K. MORALES politicians on 15 June as part of an With his Conservative Party split over inquiry into the collapse of BHS Ltd., the the U.K.’s membership of the European retail chain he used to own. Green will Union, and ministers insulting each other appear before a joint hearing in London over the airwaves, Prime Minister David of two parliamentary committees that are Cameron published a legislative program looking into the sale of BHS by Green’s designed to upset no one. Arcadia Group Plc to Retail Acquisitions A year after he won a surprise election Ltd. for £1 and his part in allowing the majority, at a point in the political cycle retailer’s pension deficit to swell. when he would usually be expected to Source: Graham Barclay/Bloomberg News announce controversial measures that AROUND EUROPE would need time to push through, the prime minister focused today on expanding broadband access, regulating civilian drones and prison reform. An education bill has EU Dodges Clash With Spain: The been watered down after protests from teachers and Tory members of Parliament. European Commission sidestepped a The pageantry of the Queen’s Speech, which saw Elizabeth II arrive at Parliament in a political conflict with Spain, postponing a horse-drawn carriage to read out words written for her by Cameron, marked a brief truce decision on sanctions for budget in the increasingly hostile battle between senior Conservatives over a so-called Brexit. violations until after the country’s general Cameron, who supports staying in the EU, is opposed on the issue by more than 100 election. The commission has been lawmakers in his own party. One of them, former Work and Pensions Secretary Iain vacillating for weeks over the situation in Duncan Smith, accused him of diluting his program in an effort to avoid confrontation. Spain with its own economists “Many Conservatives have become increasingly concerned that in the government’s recommending punitive measures and helter-skelter pursuit of the referendum, they have been jettisoning or watering down today said it would re-evaluate the key elements of their legislative program,” Duncan Smith said in an e-mailed statement. budgets of Spain and Portugal in “early “Whether it is the Trade Union Bill or the BBC Charter proposals, it seems nothing must July” — just after the Spanish vote on 26 stand in the way of winning the referendum.” June. The commission gave both nations Day-to-day government has been hampered by the Brexit divisions, with a decision on an extra year to bring their deficits below where to expand airport capacity around London and plans to sell the remaining state EU thresholds. holding in Lloyds Banking Group Plc among measures put off until after the vote on 23 June. AROUND THE WORLD Under measures announced by the queen, prison governors will be given “unprecedented freedom,” enabling them to make better educational provisions for prisoners and reduce reoffending. China’s top official for Hong Kong “My government will legislate to reform prisons and courts to give individuals a second denounced calls for the city’s chance,” the monarch said. “Old and inefficient prisons will be closed and new independence, urging the former British institutions built where prisoners can be put more effectively to work.” colony to instead seize the opportunity Ministers will also introduce a Counter-Extremism Bill to help prevent radicalisation for greater integration with the mainland. and tackle all forms of extremism. Abroad, the government will continue to work toward Zhang Dejiang — the Communist Party’s resolution of the conflict in Ukraine and play a “leading role” in the battle against Islamic No. 3 official and the highest-ranking State terrorists, while pushing for a “lasting peace” in Syria, according to the speech. state leader to visit Hong Kong in four Other measures include: years -- made his remarks today at a banquet attended by top city government A Criminal Finances Bill to tackle corruption, money-laundering and tax evasion. officials and business leaders. The A Digital Economy Bill to give every household the right to have access to high-speed speech offered a blunt assessment of broadband connection, of at least 10 megabits per second. recent efforts by some pro-democracy A Modern Transport Bill to promote construction of the country’s first spaceport, spur advocates who call themselves "localists" investment in drones and driverless cars and protect customers who buy vacations for greater autonomy, even online.