Asian Companies Listing on AIM

In the past few decades, the Chinese economy has experienced phenomenal growth. And while growth had since slowed, it can’t be ignored that in 2014, China became only the second country in history (after America) to achieve economic output in excess of $10 trillion. In fact, even at the current rate of growth, China expected to surpass the US as the world’s largest economy within the next two decades.

It is no wonder then that foreign investors have been looking for ways to benefit from the Chinese success story. And there are plenty of Chinese investment opportunities right here in the UK. SMEs in China have long struggled to secure capital from Chinese banks and that has sent them elsewhere, including London’s AIM market.

But more recently, the reputation of Chinese AIM listed companies has taken a serious hit. It seems that after a few scandals involving Chinese companies, the market has lost faith in all of them. The problem for most Chinese companies therefore seems to be the result of suspicion and rumour. Of course, this is unfair – the Quindell and Tesco scandals have not resulted in investors blacklisting every UK Company.

So the question is, what can Chinese companies do to increase their appeal to UK investors and continue to tap a valuable source of funding through the AIM market? The simple answer: Transparency. After all, the best way to quash suspicions and rumour is by getting the truth out. So for any Chinese companies listing in London, effectively communicating to potential investors from the beginning is critical – and there are plenty of ways to do this.

The suspicions surrounding Chinese companies listing in London are largely fuelled by a literal lack of visibility. So first and foremost, Chinese companies seeking admission to the London Stock Exchange need to bear in mind that potential investors are based abroad and therefore not able to directly observe the day to day operations of the business. Transparency, achieved in part through increased publicity, is therefore key to bolstering investor confidence.

But an effective communications program requires much more than reaching out to the UK national and investor press only briefly ahead of the IPO. Companies need to communicate through wider media outlets and for a longer period of time in the build up to Admission in order to achieve a successful and hopefully oversubscribed fundraising.

One way to do this is by launching Corporate profiling exercises on the home front. Even when targeting a predominantly overseas audience, the relevance of local and trade press coverage should not be underestimated before an IPO.

This is particularly salient for smaller companies. UK journalists are unlikely to have heard of an Asian based SME considering an AIM IPO. If British journalists can discover an existing profile through good trade and local press coverage (and where appropriate a social media profile) as they go online for further information, it will increase the likelihood of positive UK press coverage at IPO.

Local media coverage is also important for investors, as it plays a key role in reassuring their confidence. If a company attempts to promote itself amongst UK investors without an already established press profile, it could make a company’s story, no matter how compelling, harder to believe. And given the current climate of suspicion, that is risk Chinese companies simply can’t take.

Simply put, a proactive communications program is strong evidence of a company’s willingness to honour its commitment to new and existing shareholders. And, perhaps more importantly, increased transparency will help reassure investors and help regain trust of the market. This strategy will not only help Chinese companies: With London seeking to cement its status as the world’s leading financial centre there is simply no way investors here can dismiss companies operating in a country set to become the world’s economic powerhouse.

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Weekly Wrap Up: This will blow your mind

With a headline like that, how could you NOT read this blog post? After all, that’s the point of click bait, the internet phenomenon made popular by websites such as Upworthy and Buzzfeed. Click bait essentially exploits the curiosity gap by omitting a key piece of information to entice someone to click and/or keep reading.

The digital era has created a wealth of opportunity to reach a much wider audience. But there has also been a struggle to understand how, exactly, one should go about doing so. This is certainly true for the PR industry, but also for traditional news organizations and even businesses, and it makes the extraordinary success of the click bait strategy all the more enviable.

So it came as somewhat of a surprise this week when Business Insider reported that Upworthy's cofounder Peter Koechley apologized for the sensational headlines that made him rich – and his website famous - at the Guardian's Changing Media Summit in London this week. Going forward, he’s saying “good-bye to click bait”.

Upworthy successfully embraced the digital disruption – so why change strategy now?

The problem with Upworthy’s click bait headlines is that they tend to over promise and then under deliver. And eventually readers will catch on and stop falling for the same trick.

On the other hand, if your headline is incredibly boring it doesn’t matter if your content over delivers – no one will bother reading it. That’s exactly why click bait headlines shouldn’t be so easily dismissed. They do offer something. After all, they get people reading.

So here’s where your mind is blown: the solution is actually quite simple, and Koechley pointed to it at the Guardian event. He went on to say that Upworthy’s new approach would include sharing powerful stories “…that put you in someone else's shoes to help you see the world in other people's eyes."

The Upworthy example underscores that any piece of writing in the digital era – whether it’s a press release, news article or even blog post - needs to not only capture a reader’s attention but also deliver on content.

So go ahead and write an intriguing headline that sparks interest – just make sure your writing actually fills that curiosity gap.



This week Abchurch hosted two successful market lunches and had insightful discussions with City advisers on the sentiments of the IPO market and the potential effect the 2015 election will have. We also hosted the Allenby Capital team for an enjoyable evening, as well as travelling to Newcastle to celebrate Quantum Pharma’s successful floatation on AIM party.



Investec Investment Banking appointed Serge Rissi as a director of financial sponsor transaction group, whilst Sarah Owen-Jones joined Rathbone Brothers as chief risk officer from RBS. Meanwhile, Baker Tilly appointed Rowan Williams as head of its professional services group.



"Click bait" – exploiting the curiosity gap by omitting a key piece of information to entice someone to click and/or keep reading.



If you are a beer drinker, you can’t miss this weekend Over the Hop Festival at the White Horse in Parsons Green. There will be live music, an outdoor BBQ and Six Nations screenings on Saturday.

Fancy a bit of Asia this weekend? Silk Road travels to Marylebone for one long weekend. The seventh annual Asia House Fair will feature dozens of exhibitors that represent the best in arts, crafts, fashion and design from across the pan-Asia region.

Whether you are a rugby lover or hater, the Six Nations Championship concludes on Saturday with three teams (Ireland, Wales & England) in contention for first place. Italy play Wales first at 12.30, followed by Scotland versus Ireland at 14.30, with finally England playing France at 17:30. If you are a rugby hater, we would recommend avoiding the pubs at those times!

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Weekly Wrap Up: Steering tech coverage in the right direction

It looks like soon Britons won’t have to worry about driving home from the pub after having had a few too many. At least that’s what the Daily Mail coverage of the UK Government’s decision to allow driverless cars to be tested on public roads suggests.

In case you missed this story, the self-driving vehicles that will be seen in the UK as of next summer are like traditional cars but can also sense their environment and navigate without human input. The driverless cars that will be tested on UK roads, however, will be required to have a fully qualified test driver who could take over, should anything go awry.

Still, the Daily Mail jumped on the news, writing that occupants of driverless cars, “…won’t even need a driving license. And even those now considered ‘unfit’ to drive will be eligible.” In the same article, the writer eventually concedes that current laws actually prohibit this, but not without mentioning that this could change in the future.

And it wasn’t just the Daily Mail that presented driverless technology in the most horrifying way possible. The Telegraph responded with a headline asking, “Driverless cars sound great, but can we stop the sat nav driving us off bridges first?”

This headline refers to concern about whether vehicles controlled by software can be hacked, causing cars to crash into each other or “drive off a bridge”. Then again, human driven cars already crash and there’s no software update that will ever prevent this.

The press coverage of this new technology demonstrates how much the media enjoys a good technology scare story. Findings by the Pew Research Centre, an American think-tank, support this theory: research shows that the press has a tendency to express wariness about the effects of technology on our lives. In other words, it’s common for the press to take the “robots are taking over” angle when it comes to reporting on technology. This is certainly true for the coverage of driverless cars in the UK, and exactly why it’s especially important for technology to be presented in a way that showcases the benefits, of which there are usually many.

The truth about driverless cars is that they won’t just make life easier by perhaps allowing people to have a few drinks before getting behind the wheel, or reading, surfing the internet and even taking a nap all while driving – these cars will actually save lives.

In reality cars with a human driver behind the wheel are the real danger: a staggering 90% of car crashes are caused by human error. That is one of the main reasons the UK insurance industry supports driverless technology.

Consider airplanes for a moment: It’s a well-known fact that you are much more likely to die in a car crash on the way to the airport than you are in a plane crash. That’s mainly due to the fact that airplane technology has advanced considerably in recent decades that planes basically fly themselves on auto-pilot, except at take-off and landing. In recent years almost all plane crashes have been due to human error, not the auto-pilot.

Furthermore it’s not just airplanes that have been improved by technology: Driverless underground systems already exist all over the world. And while this technology was met with resistance, it has proven to be safe and cost efficient.

In addition to significantly improving safety, driverless cars would be a boon to the British economy if this technology was developed here and exported. The industry is expected to be worth £900 billion by 2025, which is why the UK government wants to embrace the technology. The value of British car exports has nearly doubled in the past decade, but it could become vital to embrace driverless technology in order to maintain this momentum.

In short, driverless cars are poised to significantly improve our lives. However the negative media coverage seems to be having a significant impact on public opinion: 48% of the population would be unwilling to “drive” an autonomous vehicle, according to a survey by the price comparison website uSwitch.com. Of those surveyed, 16% were “horrified” merely by the idea of a driverless car.

There is an important lesson in the media coverage of driverless cars for tech companies: technology is an easy target for scaremongering. This is true not just for driverless cars, but all technology that will result in significant change, regardless of whether that change is positive or negative. When the media gets a hold of a good scare story, the facts can often become muddled. So the best approach for tech companies is to get ahead of the story and steer it in the right direction because even when it comes to reporting the facts, it’s almost always human error that results in disaster.



This week Abchaps attended the CIPR Speaker lunch where Chris Blackhurst of the Independent and Evening Standard was guest speaker. The event was very informative, discussing topics ranging from the future of journalism to current affairs. We also enjoyed an evening at the 48 Group Club Chinese New Year Icebreaker dinner.



Cantor Fitzgerald announced Deven Sthankiya as new managing director in its debt capital markets team. This appointment sees him move from HSBC. Edison, the investment intelligence firm added David Stoddart, Victoria Pease and Sara Welford to its research team. Finally, Robin Wilson, previously of Rightmove, was appointed Taylor Wessing’s new chief operating officer.



“Scare story” – the media’s tendency to take an issue wildly out of context in order to generate headlines.



Held almost every year since 1854, The Royal Photographic Society’s International Print Exhibition is the longest-running display of its kind in the world. With plenty of novelty on show, the photography ranges from documentary to natural history. The exhibition is free to view for people attending Royal Albert Hall performances or can be visited for free by the general public between 10am and 1pm on Saturday February 14.

Another exhibition, promising to be extremely thought provoking, is Mapping the City at Somerset House. This display of cartographic representations will allow you a glimpse of how more than 50 internationally recognised artists, from the graffiti and street art scenes, view the home towns they use as their canvas. Using digital technologies, illustration, sculpture, paintings, video presentations and even performances, its a very contemporary way to view cities from around the world.

Are you fan of Sunday’s involving kicking back and watching a good film? Head to the Barbican cinema where there’s a screening of The Hound of the Baskervilles (1921), with a live piano accompaniment by Neil Brand.

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Weekly Wrap Up: Hostile takeover of an iconic recipe

When Cadbury was acquired by Kraft Foods a few years ago, many British chocolate lovers immediately feared the worst: the American company would tinker with the recipes of their beloved treats.

Well this month that nightmare became a reality.

It all began with reports that a new batch of Creme Eggs “tasted different”. So in an instance of sound investigative journalism, The Sun newspaper contacted the company, whose name has been changed to Mondelez International since the takeover.

A Mondelez spokesperson confirmed the worst. The Creme Egg recipe has indeed been altered, meaning the iconic Easter egg will no longer be made with Dairy Milk chocolate. The shell will now be made of a standard cocoa mix chocolate.

What unfolded next was nothing short of a PR disaster. Online outrage and calls for a boycott of Creme Eggs and Cadbury were followed by a slew of negative press coverage. One man from Liverpool was so angry he started a petition demanding that Mondolez change the recipe back.

Clearly, there is such a thing as bad publicity. City A.M. pointed out this week that the YouGov Brand Index Buzz score, which indicates if a respondent has heard something very positive or negative about a company, has plummeted since the revelation. The purchase consideration metric, which shows whether a respondent would buy an item, also dropped after the change in recipe was announced.

This whole mishap could easily have been prevented. It seems Mondelez failed to have an adequate PR plan in place. Also, they only confessed that they had meddled with the recipe once confronted by The Sun. There was almost certainly a better way to deliver the bad news. Perhaps Mondelez should have picked up on the anger and resentment that arose when an American company took over this beloved UK brand. If the company had done more to understand that to the British consumer the Creme Egg is iconic, maybe they would have realised they probably shouldn’t ‘Americanise’ the recipe. In that respect, the way to avoid all this bad publicity is actually quite simple: don’t change a recipe that has served the company extremely well for over 50 years. Or, to put it in more American terms: if it ain’t broke, don’t fix it.



Zeus Capital announced three appointments: Nick How has arrived from Oriel Securities as corporate finance director; Hugo Chance joins as director and head of family offices having previously headed up the angel investor forum Angels and Equity under Truestone Group; and Claire Frangou joins from Deloitte as business development director. Meanwhile, PwC appointed Naomi Saragoussi, previously of Mercer, to develop its private healthcare and group protection advisory business.



Americanisation: The influence the United States has on other cultures. It’s a term often considered to be synonymous with progress and innovation, although British consumers of Cadbury’s Creme Eggs might disagree



Felt the toll of the worst week of the year (it’s a scientific fact…)? Well try to escape blue Monday with the LOCO London Comedy Film Festival – based at the BFI on the Southbank. With every genre of comedy covered, from Ealing classics to brand new British films, LOCO’s mission is to kickstart the next generation of British comedy film-writers, why not try out the world premiere Lost in Karastan?

If film’s your thing but you fancy something more cerebral, why not try BAFTA, Backstage, the latest photographic exhibition from the BAFTA archive. With an exclusive insight into the backstage workings of Britain’s most impressive film event of the year, see candid shots of such disparate stars as Annette Bening, Brad Pitt, and Gugu Mbatha-Raw. As an opportunity to see behind the film industry’s visage, this is not one to be missed.

Or, if you like nothing more than a wander to your local on a weekend, why not try wandering to someone else’s? Random London Walk’s, a tour which plays out by luck and chance more than judgement, have offered a Pub Special for this weekend. With where you go completely put in the hands of fate, you pick a card, and it tells you where you’re going. With a starting point near Covent Garden, this tour is for those who are confident they can get themselves home after a night out, where ever they end up!

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Weekly Wrap Up: Boris Johnson - zip wire to Prime Minister?

This week Mayor of London Boris Johnson announced the explosive news that he will, “in all probability”, work towards becoming an MP at the next general election.

As with every statement that Boris puts out, the media coverage was both wide ranging and abundant. The Express was kind to the incumbent Mayor, quoting the Culture Secretary Sajid Javid “it’s fantastic news”, whilst The Guardian was more sceptical. It focused on how the announcement “drew accusations of hypocrisy” in regards to his previous statements that he would not hold two political offices at once.

Stepping past the issue as to whether or not he would make a good MP (again), the dramatic announcement through Bloomberg says more about his long-term political intentions than his short-term plans to become an MP. A Mayor of London running to be an MP is not a new thing. It is exactly what his predecessor Ken Livingstone did for a year, so the news should not have attracted as much attention as it did.

Some in the City have speculated that Boris will do anything for a headline, an idea that suggests this announcement was just another headline grabbing ploy ahead of a much bigger campaign. Few can forget the famous zip wire event of 2012 when he was famously left stuck and dangling and his name subsequently splashed across the media. Did the zip wire really stick by accident, or was it planned?

Fast forward two years... Does Boris truly plan on running for MP and then “sticking” with these two roles? Or is he simply building his reputation ahead of a bigger and more prime ministerial campaign?

Almost every piece published on the topic speculated that this move could simply be a small step for Boris ahead of challenging David Cameron for the role of Tory Party leader / Prime Minister. Cameron’s quote, interactively shared through social media, suggests that he was delighted with the news. He said that he has always wanted his “star players on the pitch”. Whilst this comment is clearly very supportive towards his old friend Boris, we must bear in mind the old adage: keep your friends close and your enemies closer.

If further building his reputation and positioning himself as a potential PM was Boris’s intention when announcing his MP-ship plans, he satisfied his objective.

Of the comments that resulted from the news, many contained expressions of delight at the idea of Boris becoming Prime Minister:

BBC: Corrigenda (6TH AUGUST 2014 - 16:10): Excellent news. This will liven up politics and will much increase interest and further eclipse Milliwatt-Balls.

nj (6TH AUGUST 2014 - 12:36) I would really love to see this MAN as our Prime Minister who speak TRUTH and stand by his words. Who walks with the current times.

Twitter fans also shared their views: Chris Beech ‏@chris1310beech (Aug 6): Yess Boris Johnson says he is going to run for priminister, come on Bojo!!!!

For now we have to wait and see what comes of both the 2015 election and the Uxbridge & South Ruislip seat. What we can do, however, is take stock of the media coverage that Boris achieved this week and keep an eye out for more headline grabbing moves on Boris’s political road to Westminster.



There was a flurry of activity in the Abchurch office this week with two particularly good Market Lunches taking place. Following the successful float of Savannah Petroleum last week, there was lots to talk about at the Natural Resources lunch. The take-home point from the Environmental lunch was that it is down to larger tech companies to bring environmental technologies to the forefront of consumers’ agendas and so solve the current energy crisis.



This week we congratulate Anne-Sophie Girault on her appointment as managing director of EMEA business development at RBC Global Asset Management, having moved from Aviva Investors. Meanwhile, RPC appointed David Gubbay, from Dechert, as a Partner in their corporate team, whilst Stephenson Harwood announced that Ben Stansfield will join as a real estate partner after having worked in the environment and planning group at Clifford Chance.



“Political stunt” - When a politician seeking to influence a politician or governmental policy takes an action they know will gain attention but is not likely to achieve its stated goal.


Prudential RideLondon FreeCycle will take place this Saturday. 10 miles of road in central London will be closed for the occasion, enabling cyclists to pass through the city safely without regular traffic. The route features Buckingham Palace, Tower of London, and many more sites along the way.

For fans of underground opera, Grimeborn Festival of New Opera will take place from 4 August to 7 September, featuring new composers, musicians, and artists. The festival is taking place at Arcola Theatre in Dalston Kingsland.

The 3 Crowns Wine Fair will take place near the Silicon Roundabout. Branded Portuguese, French, and Italian wine will be available at £5 per glass. There will be original folk music performance throughout the event.

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Weekly Wrap Up: Big Brother's Watching You

This week has been a week of M&A with the Pfizer / Astrazeneca deal taking centre stage. Business leaders and politicians debated the merits and effects that the largest ever foreign takeover of a British company could have on the UK economy. Meanwhile Dixons and Carphone Warehouse released their plans of a £3.5bn merger. Also, Murdoch’s 21st Century Fox announced its intention to enter into a Joint Venture with Apollo Global (owner of TV production companies Endemol and Core Media Group).

All of these deals are interesting within their different spaces, indicating the current appetite for big moves breaking international boundaries. Whilst the multibillion pound pharma deal is stealing the lion’s share of the media coverage, however, the media deal is particularly intriguing as it will not only have financial implications for the television production companies involved, but will also allow the media personalities involved to flex their already strong muscles.

The 21st Century Fox company that will be brought together with Endemol and Core Media Group is that of Shine, a Company chaired by Rupert Murdoch’s daughter Elisabeth.

The Murdoch family is well-known for its position in and over the media industry; it has been described as a monopoly. Without detailing the scandals of the past few years, the Murdochs have featured heavily in the newspapers that they publish, and just this week BSkyB was detailed as being in talks to buy Sky Deutschland and Sky Italia.

This entertainment JV sees the next stage of development of the Murdoch monopoly - the purchase of Park Lane and Mayfair. With Shine set to partner with Endemol and Core Media Group, Elisabeth Murdoch will now have a bigger part to play within the media industry, following in her father’s footsteps and rivalling the power of her charming brother James (NED of BskyB).

This forthcoming increase in Murdoch power is nicely, if ironically, illustrated when considering the TV programmes that Endemol and Core Media Group currently produce - Big Brother and American Idol (respectively). Both of these reality-TV shows have made their names through the portrayal of a group of participants being controlled and manipulated. Although it would perhaps be too far to suggest that the nature of these shows were the reasons for 21st Century Fox taking a Shine to the Companies owned by Apollo, it does feels slightly indicative of the control that the Murdochs currently have and will continue to have over the international media community.

We must, however, be fair. Yes, the Murdochs are infamous within global media and have a huge influence over what the public thinks, but it is in-arguable that Rupert has grown his businesses effectively and successfully. What Elisabeth Murdoch will bring to this new venture is the experience and scale that her background has instilled in her, and if this JV increases the capacity and scope for success for these companies, than who can argue that it will not be a positive thing?

For now, however, the general public will have to turn their Big Brother eye towards the future to see how the story of this merger, and of the Murdoch family as a whole, plays out.

World. The Murdochs are watching you.

This week, Abchaps had a great time sharing insights at Smith & Williamson's "The changing environment – a briefing for the financial services sector" event. We also enjoyed a great night of horse betting at Marriott Harrison Connect - Race Night with other advisers.

At our market lunches this week, we discussed with other City advisers how the City has evolved to embrace opportunities from Asia, as well as the trends and opportunities of the mining sector.



This week our friends over at Smith & Williamson Investment Management hired Ed Rosengarten as Head of Funds for the pooled funds division, whilst Adrian Rainey was appointed partner in the corporate technology practice over at Taylor Wessing. Eversheds have been joined by new partner Jonathan Brooks in their commercial dispute and investigations practice.



Head to the roof this weekend if you want to make the most out of London and its finer weather! We suggest taking a trip to Radio Rooftop Bar to get a world-class view of the City whilst sipping on some fairly delectable cocktails. Put your glad rags on, this place is teeming with glammed up Londoners and model-types. Even more, the Bar is even well heated, allowing its customers to party on into the night in total comfort.

Keen to make the most of the sun but with a slightly more relaxed vibe? The Queen of Hoxton is running its Roof Top Cinema evenings once again. Lounge on your deckchair, make the most of the BBQ and watch some of your favourite 80s classics and retro Hollywood films.

If whisky is your tipple, then it’s also The London Whisky Weekender over in Bethnal Green at the Oval Space. Try some of the finest drinks from over 20 different distilleries. Yes, we know it’s finally sunny but sometimes it’s just got to be done!

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Weekly Wrap Up: Jeremy Paxman & Drama at the BBC

“All the world's a stage and most of us are desperately unrehearsed.” – Sean O’Casey

It is a well-known fact that humans love drama. As unfortunate as it is, it's the world’s population’s fascination with the grotesque and shocking that drives the content of our papers into the realms of the bad, the tragic and the ugly.

Jeremy Paxman, of BBC television fame, is well known for creating drama on his evening news show “Newsnight”. With a direct approach and nerves as hard as steel he can turn the driest of political topics into an argument worthy of an appearance on Game of Thrones. Under his leadership, the famous Newsnight has recorded a number of squirming business leaders and politicians stammering to answer his controversial and provocative questions and, consequently, good audiences. One particularly memorable show was in 1997 when Paxman asked Michael Howard the same questions 12 times over, a technique that clearly unsettled the Home Secretary and made for very entertainment watching. Although it was later revealed that this repetitive technique was actually an error on the part of the Producer’s scripting, it still stands as a threateningly over-ruling point that Paxman is a dramatic and talented reporter.

This week he announced that he would be leaving the BBC’s Newsnight programme after 25 years. Whilst Ian Burrell of The Independent points out that many a politician may be relieved that he will no longer be able to humiliate them or their parties on national television, it's a great loss for both journalism and a news outlet (the BBC) that is reportedly struggling to engage the younger population with the news and current affairs.

In a recent report conducted by the BBC Trust, it was revealed that the BBC is “failing to stand out” next to rivals in terms of its news content. The awareness of the BBC’s audience of current affairs is reportedly falling, and the number of people watching the BBC’s news output has significantly fallen over the last two years. It's said that the broadcaster’s journalism standards are dropping and that the producer is failing to engage with younger audiences.

Paxman’s departure from the BBC’s most controversial (and therefore engaging) programme is therefore a big blow for the outlet. Without its hard-hitting and watch-able presenter, will the BBC stand to lose even more of its young audience to arguably more exciting rivals such as Channel 4 and ITV?

What the BBC needs now is for the next generation of investigative journalists to move up from the desks and into the spot-light. There is undoubtedly a great deal of young investigative talent within the journalism community, one only needs to glance at the results of the British Journalism Awards 2013 to appreciate this. With sufficient nurturing of this talent, the BBC has the opportunity to allow its reporters to take take up Paxman's flame and drive the broadcaster forward in terms of the quality and entertainment factor of its news.

Mr Paxman; we salute you. May your life post-Newsnight be full of intrigue and suitable drama.



From technology to Sino-British relationships, Abchaps are always engaged with timely topics. Social impact investment was at the heart of this week’s market lunch, where advisers and companies enjoyed discussing the role of the financial markets in initiating social changes.

 We also joined Grant Thornton at the British Museum, gaining valuable insights from its enlightening panel discussion on Sino-British relationship. Abchaps also learnt the value of innovation in Cleantech at the 2014 New Energy & Cleantech Forum.



Henderson Global Investors appointed James de Bunsen as co-manager of its value trust division, whilst BNP Paribas Real Estate made two senior appointments to its London valuation team; Gillian Bowman joins as a senior director, and Robert Dagwell who has been appointed director. Pinsent Masons also hired Nicholle Kingsley to its planning team, specialising in the commercial real estate, housing, retail and hotels markets.



"Reportage" - the reporting of news by the press and the broadcasting media. Reportage is the word often used to describe the quality of a journalist's output.



Love animals? Love cake? The Great Hampstead Bark Off may be just the ticket. For just £5 you can show off your pooch to London’s other animal aficionados whilst chowing down on some home made baking – what more could you ask for?

Keen to entertain your tastebuds without the animal community in tow? Head over to Shoreditch where the Urban Food Fest is offering a whole host of culinary delights from Jerk Chicken to Hallmoumi Souvlaki. Performances from top local bands and entertainers will add a little more ambiance to the festival.

It seems that this bank holiday is bring out food lovers everywhere. On Putney High Street you can go to the ‘Toast Temple’, a travelling shrine that is frequenting several spots in West London as part of the Wandsworth Arts Festival!

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The Weekly Wrap Up: The Power of Press Strikes Again

This week saw the Capital resist grinding to a halt as the RMT (Rail, Maritime and Transport Workers) Union conducted a 48 hour strike, led by leader Bob Crow, in response to fears that Transport for London would be cutting almost 1000 jobs.

As one would expect, the strike had a massive effect; delays were reported across the City as commuters and travellers alike struggled to conduct their daily routines with such an "essential service" take away from them.

Strikes have long been used by Unions as the method for giving a voice to the people and drawing attention to an issue. It could be argued, therefore, that strikes are (by any other definition) a PR stunt, welcoming the flies of press to the churning honey-pot of an issue.

If this was the intention of the out-spoken and opinionated Bob Crow, then the Tube Strikes could be argued to have been a a success. The story made every national paper, and inspired the reaction of the entire UK government.

Take Wednesday morning, for example. Whilst the Mayor was giving press interviews on the topic outside Embankment station, Bob Crow and Manuel Cortes, Leader of the Transport Salaried Staffs’ Association, were busy giving interviews to the BBC. Considering the questions that the platform that the pair were both given to publicly air their views, one might suggest that this press coverage could be described as the result of a PR stunt well executed.

But was this press coverage the right kind of coverage, and did it have the desired effect of portraying Transport for London (and the City of London) in a negative light?

The evening papers of Thursday reported the story with a surprising, and refreshing, amount of optimism: The Mayor of London was reported to have said that “nothing I have seen in the last two days is going to change (his opinion)”, whilst Iain Duncan Smith was discussed as vowing to stop benefits for strikers saying that “its madness that the current benefit system compensates workers when they go on strike”.

Friday also dawned incredibly brightly on the topic, with City AM reporting that although the strike could occur again next week, 91% of Oyster users had “defied” the strike by finding alternative methods of Transport.

The Guardian’s live-feed on the issue reported that in response to the strikes commuters had taken to their bikes bike, causing the number of bike-users to jump 70% during the two-day tube-halt. These bikers proudly and publicly broadcasted their activity with the use of the #bikethestrike tag-line of Twitter; a demonstration of a community not to be defeated.

Twitter, the new digital voice of the people, was also conveying a positive vibe about the strike with Hannah Cox writing on Thursday morning tweeting a (#Instagram) picture of the Thames with the caption: “What a difference a day makes! Gorgeous journey in wandering along the Thames... #london #walkingin #tubestrike”

This positivity wouldn’t appear to have been what Bob Crow and his fellow strikers were aiming for. As opposed to drumming up anger and dissatisfaction in the British population, it seems to have inspired feelings of stoical defiance in the Capital’s nation.

And how much of this was influenced by the media’s coverage of this strike? The positive communications that we have seen resulting from the full spectrum of the nation’s press, from right to left and west to east, indicates a press that did not just choose to give free publicity (and thus support) to those making a negative, political stand, but to give a full critique.

There is no doubt that journalism holds a sway over the way that the public thinks. Had this morning’s papers reported misery, turmoil and defeat, the public could well have reacted accordingly and buckled under the pressure. However, having been exposed to such optimism, it seems that the City of London has accordingly chosen not to be scuppered by such set-backs and to “find alternative means of transport”.

As one commuter reflecting on the Guardian’s strike coverage said: “this just goes to show the true power of journalism”.



Who needs public transport to get out and about in London? Abchaps certainly don’t! We walked, cycled and even went a little bit à la 007, setting sail on ‘The Clipper’ boat service to ensure we were at the City's top events, including the Moore Black Solicitors drinks event. The South England solicitors put on a fantastic evening, providing an excellent networking opportunity for all attendees.

When solace was sought from the ever-increasing mayhem down on the City’s streets, a number of influential City figures took refuge at our 125 Old Broad Street office when we hosted one of our popular ‘Market Lunches’. And, in a week when Northern companies had hit the headlines with their strong financial performances, we thought it was only apt for our Leeds office to also hosted a luncheon. Plenty of deals are clearly in the pipeline for our advisers "t’up north", and it was great to hear our guests' views on sector drivers and trends as we begin to buckle up for what looks set to be an exciting 2014.



Two City law firms take the spotlight with new appointments this week. Firstly, White & Case took on Inigo Esteve as a partner in its UK equity capital markets practice to focus on IPOs and secondary share issuances. Secondly, Baker McKenzie hired Julian Thurston to its pharmaceutical and healthcare team as a consultant.

Accounting and advisory firm Mazars made two new partner appointments: Hugh Mathew-Jones and David Dearman. They both join the forensic and investigation services division. Similarly, the two of them make the move across from previous employer, PKF.

Our client Lighthouse Group unfortunately loses its skilled development director Andrew Snowball to the wealth management company Rowan Dartington. Rowan has been appointed as the Company’s business relationship director and brings with him.


"Grass-roots Lobbying": Lobbying with the involvement of specific communities so as to reach legislature and make a difference in the decision-making process.



February is upon us and Spring is almost(!) in the air. So, if you’re bored by this week’s rain and blustery storms, head over to Kew or Chelsea Garden’s for some seasonal, floral uplift. This weekend the Princess of Wales Conservatory at Kew will be celebrating the tropical splendour that is the Orchid, whilst Chelsea Physic Garden has its annual snowdrop extravaganza Snowdrops Days. They’re a must do for all horticultural enthusiasts.

The London LGBT community can gather together and party like no other at the first ever Winter Pride UK. Held at Tobacco Dock, there is space for 3,000 people to rave it up with exclusive fire dancers and the biggest LGBT club brands, to the sounds of international DJs, including One Love, Exilio, Work and East Bloc.

If tube strikes don’t get in the way of Londoners getting about their daily business, surely a broken nose won’t hold Jonny May back when it comes to winging his way to the tryline! Of course, it’s Six Nations time again: Saturday sees Ireland take on Wales at 2:30pm, England hopefully smash Scotland at 5pm and France challenge Ireland at 3pm in Round 2 on Sunday.

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Another good day to “bury bad news”?

On Thursday 5th December Chancellor George Osborne appeared on the Downing Street to proudly hold up this year’s Autumn Statement. Like a child proudly displaying his shiny new red lunch-box, Osborne happily released the best features of the budget for some rare commendation and applause

• Marriage tax allowance • Free School meals • A pledge of £40m to create 20,000 apprenticeships • A freeze on petrol tax • A freeze on business rates to boost the high-street

One glance at Gov.uk’s beautiful array of infographics must have surely inspired all of the married and far-flung business owning parents of Britain to rejoice in anticipation of a fat Christmas and a portly New Year.

With all of this rejoicing, one would have expected to see the Autumn red of the statement to be tainting the broadsheets and topping the red-tops in reflection of a nation finally satisfied with the work of its chief economist.

But no.

On the evening of the 5th December, the world suffered a tragic loss with the death of the former South African revolutionary and politician Nelson Mandela. Mandela, one of the World’s most celebrated statesman, died at his home after long battle with a respiratory illness. As a result, The Daily Mail had but a small red box banished to the top right hand corner of front-page, the Financial Times led with a hand-by-hand sized picture of the now deceased World icon, and BBC business reporter Ben Morris was quoted thus: “Business coverage on the BBC has been curtailed this morning as programmes cover the death of Nelson Mandela.”

In the Guardian discussing the Autumn Statement: “It took a few days for the full import of the verdict of the Institute for Fiscal Studies to permeate the political world”

The same Guardian article read: “Ed Miliband has set off to South Africa to pay his respects”

A comment in a Daily Telegraph article about the Statement read: “Markmyword49: Assuming of course that the media can tear itself away from the hagiography over Mandela and start doing its job again”

The Burial of Bad News

On September 11th 2001, a day that does not need to be described, Labour aide Jo Moore sent around an internal memo advising her colleagues that “it is now a very good day to get out anything we want to bury. Councillors expenses?”

The memo was leaked, Moore was shamed, and Westminster had to once more pull its reputation out of a deep grave of political distaste. Although Moore’s comments were distasteful, it cannot be denied that she is not the only politician to have played puppet master with the media when approaching political strategies.

The news of Mandela’s death was always going to dominate the headlines of every single paper, broadsheet and tabloid in the World (the exceptions probably North Korea and Cuba).

Of course, the main points of the statement were also going to be covered and featured, however it is the finer points that might have been missed because of the tragic news of Mandela’s deaths.

Those journalists that would usually have been tasked with tearing the statement to pieces with a fine tooth-comb were in no doubt directed away to cover the greater news of Mandela’s passing.

Human beings have often been compared to a flock of sheep; we easily spooked and have a tendency to move in packs. When a car crashes on a busy road, is it not a well-known fact that the resultant backlog of traffic is mostly due to the spectators that slow down their cars in order to take a look as they pass the scene?

This statement is a reminder of how much we rely upon and need those journalists that will not just rush to join the rest of the flock to view the spoils at the scene of a car-crash. The investigative journalists that we rely upon to uncover buried boils and keep our society honest are those that would stay behind at the traffic lights to discover that they were actually faulty and thus the cause of said car-crash.

As Rudyard Kipling once famously wrote: “If you can keep your head whilst all around you are losing theirs, you will be a man my son”.

Perhaps this could serve as a lesson to the British media: when big news breaks alongside the release of a seemingly innocent statement by all means pay your respects and cover the story, but also keep your head and remember to continue dissecting the seemingly unimportant.


Olivia Stuart-Taylor


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Zimbabwe strapped for cash or just another case of Contextomy?

How can a country’s Minister of Finance, even Zimbabwe’s, announce that they have only £138 left in their public accounts?

Zimbabwe’s money man, Tendai Biti has been reported saying that the country only had £138 left in its public account last week after paying its Civil Servants. However the following day some $30m of revenue has been paid in.

He later responded to BBC Africa’s Lewis Machipisa that his comment had been deliberately taken out of context and that “you journalists are mischievous and malicious.” The point he was trying to make apparently is that the government doesn’t have the funds to finance the rather suspect general election or the referendum on the constitution. He used the above reference in a metaphorical sense. Zimbabwe needs around £127m to pay for the democratic practices.

When you look at Zimbabwe’s economic track record, from the ‘bread basket’ of Africa, to hyperinflation, to today, such assessments of Zimbabwe’s finances in dire straits are not unimaginable. It was only four years ago in 2009 that the Reserve Bank of Zimbabwe introduced a Z$100 trillion note equivalent at the time to £20.

Mr Biti’s claim that his comment was taken out of context and manipulated by journalists is not an isolated complaint. It has been a running theme in complaints about journalistic practice everywhere. The practice of using a quote out of context is sometimes referred to as contextomy (the practice of misquoting someone by shortening the quotation or by leaving out surrounding words or sentences that would place the quotation in context).

However, even if his quote was taken out of context, we have to remember that there’s no smoke without fire.

Toby

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Five minute Abchat with Richard Gill, Editorial Director for T1ps.com

Richard Gill is the Editorial Director heading up the t1ps team. He started writing for the AIM & PLUS Newsletter in 2007 before becoming its editor, along with sister publication Small Cap Shares. His investment philosophy is focused on cheap growth companies, but with a focus on solid cash generative growth businesses offering a dividend yield. He holds the Chartered Financial Analyst (CFA) designation, and was named PLUS Markets Financial Writer of the Year in 2008. Richard is an Associate Member of the Chartered Institute for Securities and Investment, a member of the CFA Society of the UK and a regular member of the CFA Institute.

What did you want to be when you grew up?
Early on probably a footballer and in my teens a rock star. I haven’t given up on either yet! When I grow up a bit more I would like to be Chairman of Bradford City.

Describe your role in ten words or less (if that’s possible!):
Researching and advising private investors on which equities to buy.

What is the most interesting thing about your work?
Researching companies and meeting the directors and entrepreneurs behind them are a highlight. Having a one to one session with successful people like Nick Robertson of Asos can be truly inspirational. Industry lunches and parties can also throw out some interesting situations.

What three things do you look for when tipping a company?
There are literally hundreds of things to cover when looking for decent companies to recommend. But if I had to name three… I think in the current environment a company needs to have a strong enough financial position to fund its plans. Given the difficulty raising funds, private investors can often be the worst hit if firms have to raise money. Growth is also a key factor, if a company can’t grow its revenues and profits then the shares are not going to go up! Finally, the price has to be right. The best run company in the world won’t be recommended by us if the shares look over-valued.

Is there a common misconception about share tipsters?
Tipsters are often seen as the finance equivalent of dodgy second hand car sales men – and for some that is certainly true. However, at t1ps we are regulated by the Financial Services Authority and our analysts all have relevant finance qualifications including the IMC (Investment Management Certificate) and Chartered Financial Analyst (CFA) designation. Also, all our chief analysts are approved by the FSA. Because of this we think we are bringing credibility into the profession which others just don’t have.

What developments do you expect to see in the next twelve months?
Everyone has been expecting (or at least hoping) for a recovery in the small cap equity markets for at least five years now. But with no major recovery in the wider economy expected I think 2013 is going to be pretty much the same as 2012. IPOs will remain thin on the ground, fundraising will remain difficult for smaller firms and more brokers & advisory firms will either merge or go bust. The possibility of the government allowing AIM shares into a stocks & shares ISA might give the markets a small boost. I also expect Bradford City to make at least one visit to Wembley.

In which emerging market do you see the best potential in 2013?
Mexico is one emerging market which has been relatively over-looked by investors. The country has its political and drug issues and is not as “sexy” as the booming Chinese and Brazilian economies. However, the country has recently been benefiting from rising wages in China, with global manufacturers looking to take advantage of Mexico’s low labour costs. This has combined with high fuel costs causing trading partner the US to import more goods from Mexico, rather than from further afield.

If I wasn’t talking to you now, what would you be doing?
Looking for new investment ideas or organising a lunch.

Thank you Richard!

Follow Richard on Twitter @RichardLeoGill

Is online media killing traditional journalism?

The idea that online media is killing traditional journalism is a concept strongly denied by Damian Wild, editor of the Estates Gazette. At yesterday’s Gorkana Breakfast Briefing, he explained that there is still money to be made in journalism, albeit with a few adaptations to their approach.

 

The Estates Gazette is a weekly business magazine published for the UK commercial property market. Like other traditional media providers, the circulation of its print edition is down, having peaked in 2007 at 28,000, it has been shrinking significantly and stands at just 19,000 today. Meanwhile, the Estates Gazette has adopted a subscription-based online news service, an approach which has failed for other news providers. So why is Wild so positive about the future of Estates Gazette?

 

Wild’s approach has been to appeal to an increasingly tech-savvy audience. The introduction of its iPad app has clearly been a hit with the Estates Gazette’s readers, since its digital readership is growing. Not only does the app allow readers to access content within hours of going to press rather than days, it also offers a more interactive approach. The online edition of the Estates Gazette has videos, podcasts, and offers opportunities for readers to express their views – and it seems that the Estates Gazette’s readers are prepared to pay for these services. Wild also described how this year the Estates Gazette hosted a live webinar from Cannes using the company iPad.

Image from www.estatesgazette.com

 

It seems, therefore, that through innovative ideas and working with online media, rather than in competition with it, traditional journalism does still have a place in the current market.

Alongside the advertisements of plush properties which appear in the its print editions, perhaps the Estates Gazette should consider selling Apple some advertising space in the weeks leading up to Christmas - a few more iPads under the tree on Christmas day might actually boost their business – not kill it.

Alice Prentice


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Five Minute Abchat: Harriet Russell, Growth Company Investor

Harriet Russell, an equities and markets journalist at Growth Company Investor, takes some time out of the busy reporting season to speak to Abchurch about her background, interests, the industry and what really makes a journo tick!

What did you want to be when you grew up?

My childhood was spent desperately wanting to be a dancer but I soon realised it’s pretty hard and that I was not particularly gifted (my dad’s words!) so I turned into a bit of a nerd at school instead. I always knew I loved English and literature at school but I never tried to box myself into one career path – in case I got bored before I’d even begun! I actually tried to get into the professions before turning to journalism full time but found they weren’t creatively fulfilling.

How did you get into journalism?

It started mainly at university although I had dabbled at school by being made editor of the annual magazine. At uni I was Deputy News Editor and then Comment Editor of the student newspaper. The pace of news is addictive but I liked being able to share my opinion in comment, so I guess my job today is a bridge of the two.

Describe your role in ten words or less (if that’s possible!):

Interview companies, build relationships, write news flow, write share tips.

If I wasn’t talking to you now, what would you be doing?

My afternoons generally get reserved either for meetings (earlier), or working on my content for the monthly magazine. Right now I should be finishing the feature for the November issue!

What is the most interesting thing about your work?

Getting to meet the most important people in these companies – that are all worth multiples of millions – face to face and ask them direct questions which most people my age will never get a chance to do. I also get to travel to sites for certain companies who make the offer which is invaluable to really get a picture of the company and whether there’s a great story there or not.

Is there a common misconception about journalists?

I think different PR firms and different companies will have different suspicions but I think the most obvious to me is that I’m always looking for ‘dirt’ and a reason to write a poor review. I’m honestly not, I don’t much enjoy writing about a lack of success because I know these are hard times! It’s quite the opposite: I’m looking for the companies who really are weathering the storm and providing excellent returns for shareholders and have proved they can keep doing so. Another misconception is that we all will make stuff up. Some people take liberties but most of us hang tight to integrity and fact.

How has the industry changed over the last couple of years?

The financial crisis has obviously changed things in ways that will never be the same. The attitude to risk is completely different. While AIM is still a higher risk market, everyone, from investors to NOMADS, is taking a far more cautious stance on companies entering and trading on the market. Regulation is moving higher on the agenda. Also, our readers are perhaps less interested in a volatile high-risk return as they are in interesting or untouched regions of the world. So if you can prove steady revenues and profits in an interesting part of the world we’ll definitely notice you!

What developments do you expect to see in the next twelve months?

Unfortunately I don’t expect to see much change at all in terms of market movement. It’s very flat and it will stay that way until some bigger issues come to a head such as Europe, the commodity market and availability of credit. People have been optimistic year on year only to have their hopes dashed and it’s time to be realistic, sensible and keep costs and expectations lower rather than higher. I’m no economic genius and couldn’t possibly predict when things will pick up. Investors remain highly conservative as do companies – the number of new hires for instance remains really low which is understandable but really sad for a generation that will inevitably hold some great people.

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