Weekly Wrap Up: Turing took the forbidden fruit

“We are dedicated to helping patients, who often have no effective treatment options, by developing and commercializing innovative treatments”. This is the statement waiting for visitors to the ‘About’ section of Turing Pharmaceuticals website. However, having seen any of the myriad news coverage recently you could be forgiven for not finding this sentiment particularly credible. This week, the “fully integrated” biopharmaceutical Company returned to the world’s headlines, and whilst in the UK it may have been overshadowed by the Autumn Statement, it deserves no less attention.

Turing Pharmaceuticals has been courting controversy since August, when it acquired the exclusive rights to market Daraprim from Impax Laboratories. Contract Pharma reported that this was a strategic effort by Turing to begin fulfilling its promise to combat serious infectious diseases. Prior to the acquisition, Turing had been a one drug shop, having acquired Vecamyl, a hypertension medication, earlier in 2015. However, the acquisition of Daraprim was undoubtedly what brought Turing into the public eye.

Daraprim is a drug that is an antiparasitic medicine used for the treatment of toxoplasmosis and acute malaria. Both toxoplasmosis and malaria prey on those with weakened immune systems, and therefore are likely to infect those suffering from HIV and AIDs. Additionally the drug has a number of “off label” preventative uses, again, for those suffering from HIV. Clearly, Daraprim is an invaluable life line, and significantly improves the quality of life for those suffering from HIV or AIDs by helping protect them from additional debilitating diseases.

Initially, the purchase of Daraprim was positively received in the media. Turing’s Chief Executive, Martin Shkreli, was quoted as saying that the acquisition put the Company on target to bring “novel medication to patients with serious disorders”. Shkreli also stated his intention to invest in the further development of the drug to yield an even better clinical profile, as well as plans to launch educational efforts to raise awareness and improve diagnosis for patients. Shkreli’s intentions appeared, at least on the surface, honourable, it seemed as though his primary interest and that of his Company was the welfare of patients suffering from unquestionably awful diseases. Medical professionals were similarly impressed with Shkreli, noting, “Turing’s commitment to improving treatment for patients with toxoplasmosis is commendable” (Louis M. Weiss, M.D., M.P.H., Professor, Departments of Medicine and Pathology, Albert Einstein College of Medicine in New York City). Unfortunately, the positive stride that Weiss and other medical professionals perceived Turing’s actions to represent was not to be.

What came next will surely go down as how not to handle situations when sentiment turns against you, as the New York based start-up destroyed any good will the medical industry or public may have held towards it by immediately hiking the price of its drug by over 5000%. The New York Times noted that the drug originally retailed for $13.50, compared to the $750 per tablet Turing was expecting people to pay. This controversial move would make the drug unavailable to many people and clearly at odds with Turing’s company mantra. In an interview with CNBC, Shkreli was even unapologetic about the decision, arguing that the drug had been priced too low and his Company needed to make a profit, stating that it had previously been like selling an Aston Martin for the cost of a bike. Following the ensuing backlash from both media and medical professionals Turing cowed to public pressure, and pledged to roll back the increase to ensure the drug remained affordable. However, following this week’s announcement, it is clear that this was an empty promise. The Guardian reported this week that Martin Shkreli has declared he will not lower the price of his medication after all.

Turing Pharmaceuticals, and in turn Shkreli’s, actions are perceived as the worst kind of profiteering through incontestable monopoly comparable. However, there is hope for the patients who have had their medication taken away from them, and as Tim Worstall argued in Forbes, “markets work”. In the face of the gross (potential) profit taking by Martin Shkreli, Imprimis Pharmaceuticals announced that it has made an alternative to Daraprim that would cost roughly a dollar a pill, or $99 for a 100-pill supply. The fact remains that, Turing’s monopoly although threatened, may remain if the new drug is proven to be less effective than Daraprim. Also, the irreparable damage that has been done to the reputation of the nascent Turing Pharmaceuticals in both the medical and financial worlds might eventually lead to the Company folding, leaving the world without the sole producer of Daraprim. With this in mind, it seems Shkreli should be asking himself the pertinent question; were the potential profits worth it? Did his workforce deserve the wave of negativity he has foisted upon them?

Reputation management is vital to corporate relationships, and if Turing has plans to acquire further companies or source more investors, it is conceivable that the private equity firm would need to reconsider its public relations strategy. If Shkreli and the Company does not show willingness to change, it is arguable that will burn the bridge of ever taking his Company public, surely the exit he envisaged when he founded it…



This week, Abchaps attended the Gorkana financial debate in aim to discuss the communication challenges in today's financial services market. The panel included Alex Letts CEO of Ffrees, Christina Sandkühler of La Salle Investment and Editor of City AM Christian May.

We also hosted a market lunch, where we discussed general topics such as the Pjizer – Allergan merger and Switzerland’s alternative Bank Schweiz.

We attended a Scottish whisky tasting event at Marriott Harrison’s in anticipation for St Andrew’s Day. We took the opportunity to discuss new appointments at the law firm over a dram or two.



Macquarie Capital appointed Ben Bailey as head of Telecommunications, media, entertainment and technology in Europe. Prior to the appointment, Ben led the internet and digital media investment banking team at Jefferies.

Canaccord Genuity Wealth Management appointed Jane Parry as head of marketing and communications. Parry joined Canaccord Genuity from Duncan Lawrie Private Bank.

Clyde & Co appointed Robert Wilson as partner in its clinical negligence team. Robert joined Clyde & Co from Capsticks.



“Toxoplasmosis” – an infection caused by a parasite called Toxoplasma gondii.



Christmas has come, with all the John Lewis baggage that this entails, and therefore this weekend, Tate Modern is holding its own twist on a traditional Christmas Market with all the usual trappings of mulled wine, but set in the grandeur of the turbine hall.

For the second out of office hours, why not use the Tate to Tate service, taking you from Modern to Britain, for the exhibition on Art and Alcohol. Booze has been one of man’s greatest muses since fermentation was discovered. Pride of place is given to George Cruikshank’s ‘Worship of Bacchus’.

Finally, if you fancy emulating the antics of art, why not try the Absinthe Masterclass, taking place at Vinopolis. The green fairy is blamed for Van Gough’s madness, and whilst it’s unlikely to make you cut your ear off, it will probably lead you to a slightly fuzzy Monday.

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Weekly Wrap Up: Will Britain un-friend Facebook?

Tax. Let’s be honest, we all loathe it. Let’s be honest, it is a necessary evil. Let’s be honest, there’s nothing that quite gets the people of Britain’s blood boiling like the subject of tax avoidance. The subject has again made an appearance in the headlines this week when it was reported that Facebook paid less than £5,000 in UK corporate tax last year. This has sparked debate about technology companies that go to extraordinary lengths to cut their tax bill.

The UK and Facebook are not alone – Bloomberg Business highlighted ‘eight of the biggest US technology companies that added a combined $69 billion to their stockpiled offshore profits’. These companies including, Microsoft Corp., Apple Inc. and Google Inc. accounted for more than a fifth of the $2.10 trillion in profits that US companies are holding overseas.

Back in February 2014, Abchurch asked the question why bankers are being demonised for their pay packets and not tech billionaires. Now, a year and a half later, tech is under the spotlight and this is shown by a wide variety of media outlets calling for more regulation when it comes to tax and technology companies. The view is even shared by a number of traditionally right wing publications, such as the Times. If this trend continues, one such result might be the exodus of global tech players from the UK.

However, this recent bad press for tech companies suggests that the trend is changing and discontent is growing amongst the public. The revelations regarding Facebook will reignite the debate about how much UK corporation tax companies should pay at a time when several multinational corporations are being investigated by the European Commission over the tax arrangements they have with European Union member states. According to the BBC: ‘Google, Amazon, a division of the Fiat motor company and Starbucks are all subject to the investigation and the European Commission has said it could widen its probe further.’

One thing is certain, tech companies will no longer fly undetected under the radar. The more this behaviour continues, the more severe the reaction from the British press, and in turn the public and Government, will be.

To avoid making the same mistake as the banking industry, the tech companies need to start taking proactive approaches to rebuild their corporate image before the anger and mistrust of the press and public get out of control. In addition, these tech giants should be communicating frequently and immediately with the public on the initiatives they have taken to align themselves with public expectations, in order to reposition themselves as the public’s partners, not their enemies.



This week, Abchaps Quincy and Philip are attending the IPREX- EMEA Fall meeting in Amsterdam, where we will be meeting with the senior members from our partner firms from the EMEA region to discuss the strategies taken by agencies to meet the challenges of the changing communications landscape in order to achieve growth and to deliver client results.

We also attended the annual charity fundraising event Grouse & Grape Luncheon and hosted a market lunch, which probed lively discussions about UK corporate tax regulations and IPO sentiment in the City.



This week Deutsche Asset and Wealth Management appointed Stefan Krezuka as Chief Executive Officer, Head of Investment Management and member of their Global Executive Committee. Howard Kennedy appointed Jonathan Metliss as a consultant specialising in corporate finance and Matthew Hinxman joined Fieldfisher from Baker Botts as partner in its finance practice, providing experience within energy and natural resources.



“Tax avoidance” - The legal usage of the tax regime to one's own advantage to reduce the amount of tax that is payable by means that are within the law.



For those of you who feel that sleep is overrated, Fabric is turning 16 this weekend, and to celebrate is going nonstop from Saturday to Monday. Finishing at 5am, so there’s still time to be at the desk bright and early.

If you prefer your weekend to be slightly more sedate, Tate Modern is opening the Hyundai Commission with an inaugurating installation called ‘Empty Lot’. Conceived by the Mexican artist Abraham Cruzvillegas, this work aims to create a unique portrait of London.

Finally, a weekend isn’t a weekend without a good meal, and Lyle’s of Shoreditch is offering just that. As winter draws in, take solace in this six course taster of all things game, with chefs from around the world coming together to create an international take on the most British of ingredients.

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Weekly Wrap Up: Big banks still don't get it

Bankers are fighting back against so-called banker bashing, according to The Times. But are they taking the correct approach?

Senior bankers have decided that it’s time to mount a campaign to push back against a range of policies that have led to extra costs and regulatory burdens. Quite rightly, bankers have pointed out that Government policies are affecting their ability to compete internationally.

Banks have not been very proactive in getting good publicity and this is part of the reason banker bashing is so pervasive. In a previous blogpost, we suggested it’s time for banks to take control of their narrative and highlight the importance of the banking industry to UK economy. But even that approach may not be enough to stem banker bashing: A recent slew of negative news suggests that the behaviour that led to the banker backlash is still a long way from being stamped out.

At the beginning of this month Barclays received some unwanted attention when an email sent by a second year analyst to incoming summer interns was leaked. The email, which had the subject line “Welcome to the Jungle”, included a “commandment” telling interns "I recommend bringing a pillow to the office (yoga mat works as well). It makes sleeping under your desk a lot more comfortable, in the very likely scenario that you have to do that."

The email couldn’t have come at a worse time: It was sent shortly after the suicide of a first year Goldman Sachs analyst who was said to be overwhelmed by the pressure of the 100-hour workweeks. It was one of numerous unexpected deaths or suicides of young bankers over the past couple of years.

Then this week, JP Morgan Chase & Co. Chief Executive Officer Jamie Dimon took a swipe at US Senator Elizabeth Warren, one of Washington’s most outspoken critics of the banking industry. Speaking at an industry event in Chicago, Dimon suggested that Warren, a former Harvard Law school professor who specialised in bankruptcy law, doesn’t “fully understand the global banking system.” This condescending remark will do nothing to endear bankers to the wider public.

Bad publicity for banks this month has certainly not been limited to the US. The trial of Tom Hayes, the alleged ring-leader of the Libor rigging case, has been making headlines in the UK. The trial has also revealed some pretty disturbing information about how banks operate, including an allegation that senior UBS bosses may have condoned the rate rigging.

The real problem therefore seems to be down to banking culture. The New York Times writes that “Wall Street has always thrived, in part, on its eat-or-be-eaten culture.” And there is no doubt that there is truth in this. But if banks want to turn around their image, which is really the only way to end banker bashing, serious steps need to be taken to find a new way to thrive. And this is not just about improving their public image – if the current culture is driving employees to criminal behaviour and even suicide, surely that is too high a price to pay – even for bankers.



This week, Abchaps attended a CIPR Speaker lunch where Kamal Ahmed, Business Editor of BBC News discussed his roll at the BBC and how PR’s can interact successfully with the organisation. We were a guest of UHY Hacker Young at the Small Cap Awards Dinner at the Grange Hotel as well as the China Outbound, What next for the UK event put on by Nabarro and Baker Tilly.



Lloyds Commercial Banking appointed Adrian White as Chief Operating Officer. Walker Crips hired Alison Pickup as Senior Investment portfolio Manager from Brewin Dolphin. PwC promoted Simon Hunt to UK Banking and Capital Markets Leader. Kevin Burrowes, additionally became Global Banking and Capital Markets Leader across the PwC international Network.



“Global Banking system” – We won’t even try to define this. If a Harvard Law professor can’t understand it, the rests of us don’t stand a chance.



This weekend, why not celebrate one of this City’s greatest exports, Gin? World Gin Day has been a part of London since 2009, and this year, Junipalooza sees 24 different distilleries presenting their wares from around the world.

Soho Food Feast returns to Wardour Street this weekend, with restaurants like Arbutus, Barrafina, and Ducksoup taking the opportunity to leave the confines of their kitchens and create a street party for a good cause.

Finally, London is one of the greenest major cities in the world, and to celebrate, this weekend sees Open Garden Squares unlock some of the hidden gems of our city. In total, 200 spaces usually closed to the public are being opened, so enjoy these tranquil settings whilst you recover from the weeks excesses.

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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: Should Sponsors Show FIFA the Red Card?

The United States cemented its status as world police this week when it swooped in on FIFA, international football’s governing body, alleging that corruption at the organisation is “rampant, systemic, and deep-rooted.” The Department of Justice indictment named 14 people on charges including racketeering, wire fraud and paying bribes worth more than $150million.

These are pretty damning allegations against a not-for-profit organization that recorded $338million profit and $5.7billion in revenues for the 2011-2014 financial period. This money comes mainly from FIFA’s key revenue streams, the sale of television rights for the World Cup and marketing rights to sponsors including Adidas, Coca-Cola, Gazprom, Hyundai/Kia Motors, Visa and Budweiser.

Corporate sponsorship, especially of the world’s most popular sport, is great publicity for a brand. One billion viewers tune into the World Cup every four years, giving sponsors unrivalled exposure to markets all around the world. But suddenly, instead of being associated with some of the best athletes and the most popular sport in the world, corporations risk having their image tarnished by a governing body that was taking bribes to fund lavish lifestyles that rival those of football’s star players.

Moreover, as the Wall Street Journal points out, this isn’t exactly a shocking development for sponsors, who have maintained their FIFA sponsorship agreements for years despite persistent allegations of corruption and misconduct. The controversy surrounding the World Cup in Qatar should have been enough to send sponsors running, especially the allegations of abused migrant labourers building soccer stadiums. Now it has all blown up and the corporations that contributed $177million to FIFA in 2014 have come under intense media scrutiny, highlighting the danger of linking corporate reputation to an outside organisation.

Still, there is an opportunity for corporations that have suddenly become associated with an incredibly tarnished organization to turn this around. Their financial support of FIFA does, after all, allow sponsors to demand change. Frankly, this is something they should have done a long time ago, but it’s not too late. So far, however, only Visa Inc. has stated that it will “reassess its sponsorship” if FIFA fails to rebuild “a culture with strong ethical practices to restore the reputation of the games for fans everywhere”. Adidas, Coca-Cola and McDonald’s only stated that they are monitoring the situation.

But while corporate sponsors are suddenly getting the wrong kind of attention, one could argue that the FIFA scandal is a publicity coup in some respects: Even David Beckham couldn’t generate this level of interest for soccer in the US.



The week, Abchaps hosted a successful market lunch discussing the current conditions of London’s IPO market. Abchurch also hosted an event that brought together people from across the City to celebrate the life of Gerry Clark, close acquaintance and friend of Abchurch.


The professional services firm EY has appointed two partners to its UK legal services practice. Paul Devitt and Richard Thomas both join from Addleshaw Goddard. Deloitte has elected Nick Owen as Chairman, he is currently a member of the Board of Partners and Vice Chairman of Deloitte UK. Moore Stephens have appointed Ian Gardner as partner in the accountancy and consulting firm’s insurance industry group.



Not-for-profit organisation: A type of organisation that does not earn profits for its owners, and instead uses all of the money earned to pursue the organization’s objectives. FIFA is officially a Not-for-profit, so it was probably about time that somebody took a closer look at their objectives.



This weekend, join Backyard Cinema in their one of a kind performance of Romeo and Juliet. Performed in St Mary’s Church, this showing will be candle lit, music performed by a live choir, and most importantly, a fully licensed bar.

If all you’ve ever wanted from life is to break a Guinness world record, this weekend is your chance. Join British Military Fitness on Wandsworth Common, where you can be part of the largest ever group to perform a minute of squat jumps. Never will 60 seconds have seemed so long.

Finally, if you’ve always seen yourself as the next Banksy, Hays Galleria are giving you the opportunity to create your own Flower Thrower painting. All the thrill of graffiti, with less chance of a criminal record.

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Weekly Wrap Up: Humility Before Profit

Could an incident that occurred a decade ago create more reputational damage now for the company involved than when the incident first occurred? This is arguably the case for Thomas Cook, who have been under immense pressure in recent weeks over their handling of the high-profile deaths of two children on holiday in Corfu in 2006.

The Independent’s view “a tragedy to a corporate disaster” has been widely voiced, with the public and media consensus being that Thomas Cook’s communications strategy is “too little too late”.

Timeline of events:

• April 2015 – Inquest begins into deaths of the Shepherd children.
• 13 May – Manny Fontenla-Novoa, CEO at the time of the tragedy, appears as a witness to the inquest but refuses to answer a series of questions. Peter Fankhauser, current CEO, tells inquest that Thomas Cook has done "nothing wrong". Inquest jury returns verdict of unlawful killing and says Thomas Cook "breached its duty of care".
• 17 May – Shepherd family reveals it received £350,000 in compensation from the hotel owners for their children’s deaths. It emerges later that day that the hotel paid Thomas Cook up to £3.5m in compensation.
• 18 May – Thomas Cook offers to pay compensation it received to Unicef and apologises to the family.
• 20 May – Fankhauser apologises to the family and says he is "deeply sorry".
• 21 May – Fankhauser meets with the parents face to face, giving a “sincere and heartfelt apology” and agrees to donate an undisclosed sum to six charities of the parents’ choice. In addition, the parents requested that the bungalow where the tragedy took place be demolished and replaced with a “lasting tribute” in the form of a playground.

Thomas Cook’s mistakes and subsequent quick fixes have caused immeasurable damage to the firm’s reputation and future value as they enter a crucial trading period. The Group would expect to be selling holidays to families gearing up for the summer break. Meanwhile, it has been reported that around £75m has been wiped off the company’s share price this week as investor’s dumped stock. Only time will tell whether the share price will recover. This will largely depend on any subsequent actions the Company take to stop the rot.

Fankauser has now done what his predecessor should have done back in 2006; given the parents a sincere apology.

Holly Ward, co-founder of The Forge commented: “As a nation we respond well to humility; even if Peter Fankhauser didn’t want to imply his company was to blame by offering an apology to the parents of Bobby and Christi Shepherd, a little humility would have gone a long way in showing his company actually cared. The Unicef donation smacked of a quick fix that missed its mark.”

The incident can serve as a lesson not only for Thomas Cook, but the majority of companies. Thomas Cook went far too much down the legal route, allowing its lawyers and bean counters to dictate how it dealt with a grieving family, instead of actioning a robust crisis communications plan, or having the inclination to do the right thing.

Julian Pike, Head of Reputation Management at Farrer & Co stated: “From the outset, Thomas Cook should have made the family its priority, irrespective of the legal advice or insurers' requirements. Its own financial wellbeing should also have come a long way second.”



This week, Abchaps hosted an Asia themed market lunch where economic opportunities in the region were explored and the potential impact on the London IPO market was discussed.



Andrew Penny joined EY from JP Morgan as Senior Advisor to its real estate corporate finance team; Judith Mackenzie, Partner at Acuity Capital and Senior Investment Manager at Aberdeen Asset Management Growth Capital, joined the board of Quoted Companies Alliance, whilst Kelly Tubman Hardy joined Hogan Lovells’ corporate practice in Baltimore from DLA Piper.



“Stop the rot”: to take action against something bad, before it spreads and becomes worse



If craft beer is your thing, head along to the Old Royal Naval College, and try over 80 different types of draft beer at Brewfest; Greenwich.

This weekend sees a particularly British pastime, with the Gloucestershire cheese rolling taking place, where you can throw yourself down a hill after Cheddar!

Finally, Kew Gardens is holding a Full of Spice festival, starting this weekend. With everything from a Strictly Spice dance-off to a pop up bar, this festival has everything.

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Weekly Wrap Up: The Biggest Loser this Election

Before the polls even opened on Thursday, there was already a clear loser in the UK general election: banks. Regardless of which party takes power, it seems that UK bank earnings are set to be hit by a wave of new legislation that could result in a rising bank levy, ring-fencing of operations, and even capping of retail banking market shares.

To be clear, banks and individual bankers whose recklessness and criminal behaviour precipitated the financial crisis deserved to be punished. And yes, the government should play a strong role in ensuring economic stability and therefore has to keep an eye on the financial industry.

Some proposed policies aimed at banks suggest politicians have become irrational. How, for example, would a Labour Party proposal to increase the bank levy to support free childcare have prevented the next financial crisis? Tory plans to use the money from fines to create apprenticeships also suggest politicians are simply using this money for political gain. It’s no wonder then that the Institute for Fiscal Studies recently felt compelled to warn politicians against treating banks like a “cash cow”.

But still, banks have been remarkably silent when it comes to defending themselves against political attacks in the post credit crunch era. This is particularly surprising because many politicians were themselves complicit in creating the conditions that led to the financial crisis.

So perhaps it’s time for banks to change their PR strategy and speak up. Already there are rumblings: The Chief Executive of the British Bankers’ Association was recently quoted in the Financial Times reminding politicians that “Banking is by far Britain’s leading export industry, and one of its biggest taxpayers, but…it is very internationally mobile.”

But instead of running away, as HSBC and Standard Chartered have threatened, it would be refreshing to hear more about the value that the financial industry brings to the UK and how banks are working to prevent further bad behaviour. After all, the staggering fines paid by banks since the financial crisis are not just the result of overzealous politicians on a witch hunt – banking culture was clearly dysfunctional pre crunch.

According to the FT, most bank bosses recognize that the industry is not doing enough to convince sceptics it has changed. Increased transparency would be a step in the right direction since it would prevent people from coming to their own conclusions, which has been mostly that banks are still up to no good.

So it’s time for the banks to take back control of the narrative. Until now, it may have been easier for banks to remain silent and for the public to hate them, but in reality if the financial industry continues to be a political target the biggest loser in this election will ultimately be the UK economy.



This week, Abchaps have been networking across the continent with our global partners at IPREX’s Annual Meeting in Berlin. We also met CMS Advisory over breakfast, discussing the ever increasing importance of social media in the City. Our Market Lunch series continued unabated; with this generalist lunch as the last held before the election, understandably, politics was at the forefront of the agenda.



Richard Hughes joined Norton Rose Fulbright as a Partner in its banking and finance practice, having previously worked with Simmons & Simmons. Alistair Mackenzie joined Associate Sales Director at UBS Global Asset Management, from Curzon Capital. Finally Cavendish Corporate Finance appointed Kate Gibbon, David Harris, Victoria Clarke, and Nathan Harroch into its Corporate Finance team.



The Saatchi Gallery the annual Contemporary Craft Fair ‘2015 edition’, presenting 35 international galleries showcasing the most exciting examples of applied arts craftsmanship.

To all you wannabe Sir Bradley Wiggins’ out there, SPIN London – The Urban Cycling Show celebrates the urban cycling scene with international brands and smaller independent makers in fixed gear, single speed, custom and BMX bikes in attendance as well as emerging cycle fashion brands, cyclic artwork, talks, demonstrations and workshops.

If you happen to be having a stroll with your dog on Hampstead Heath this Sunday, then why not enter The Great Hampstead Bark Off 2015? With a dog-themed-cake bake off, a dog show, and prizes awarded in categories like ‘cutest pup’ and ‘best rescue’. The event, in association with charity All Dogs Matter, will also give you the chance to meet some lovely mutts in need of a new home.

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Weekly Wrap Up: Flash Crash brings Fast Cash?

The City has been in the PR mire for some time. Since the financial crash, institutions and individuals have been scrambling to save face, only to be undermined by a stream of negative press.

This week, that negative press has been provided with the flash crash case of Navinder Singh Sarao. A self-employed day trader, he faces extradition charges to the US, where he is accused of playing a significant role in, momentarily, taking up to $1 trillion off Wall Street. In a 45 minute period, almost 1000 points were knocked from the Dow Jones Industrial Average, the US’s premier exchange. The premise was simple, Sarao added sell orders which could be seen around the world, and caused others to add sell orders, panicking about a potential fall in their market. Following the cancellation of his orders, Sarao would then track the market down, and buy for supposed huge personal profits. This crime carries the potential for 380 years in prison, not something to be sniffed at.

In addition, Deutsche Bank, one of the largest financial institutions in the world, accepted a record libor fine of £1.6 billion for its role in fixing international interest rates during 2005-2010. These two crimes accurately portray the various flaws in City institutions. Firstly, the ability to undermine and subvert the system, and secondly the damage that can be done to its image.

Having been caught on the back foot when the markets fell, the financial regulators have now taken the fight to the institutions, inflicting more stringent fines. However, more needs to be done. Whilst America can be seen setting a hardline with its sentencing, 150 years for Bernie Madoff springs to mind, the UK needs to work harder at finding those who have abused the system criminally guilty.

The banks themselves, seemingly reticent to move on from their glory years, need to be seen doing more in the public eye to clear up their act. Possibly fearful of their pariah status, heads of UK banks have been notable in their absence from British screens in the last seven years. It will take strong character, but to move past the current public perception, banks need to work as never before to root out those who are abusing the system, and prove to the country and the world that this vital part of our economy is worth sustaining.



This week, Abchaps hosted multiple events including two Market Lunches, one focused on Mining and the other focused on the Environment, whilst also entertaining Northland Capital, after successfully working on TechFinancials IPO together. We also met with Richard Dunnett of Director Magazine, in order to learn more about how the magazine operates; and attended the Entrepreneurs Breakfast, a joint initiative between Smith & Williamson and freshbusinessthinking.com, which brought together multiple entrepreneurs at breakfast with keynote speaker Christopher Baker-Brian.



N+1 Singer appointed Nic Hellyer as Director in its Corporate Finance team from HSBC, whilst Nicole Martin was hired as Audit Partner in BDO’s Technology and Media practice. Meanwhile, Standard Chartered appointed Sir Iain Lobban to the bank’s board Financial Crime Risk Committee.



“Flash Crash” – A word which has entered the lexicon as quickly as the crime was purported to take. Having taken five years to work out a potential culprit, one feels that we will be reminded of the flash crash for some time to come.



If you’re an athlete you might be heading to the London Marathon this weekend. But for the less active among us, you will probably want to avoid Central London.

For those not running, there’s still a chance to celebrate England’s Patron Saint this weekend: The Mayor of London's throwing a party in his honour at Trafalgar Square on both Saturday and Sunday, where Robbie Boyd is headlining from 4pm-5pm on Saturday.

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Weekly Wrap Up: Co-op’s Comeback: Value vs Values

The Co-operative Group, the UK’s biggest mutual owned by 8.5 million people, announced this week that it has returned to profit. This development will likely surprise anyone who remembers when chief executive Richard Pennycook was forced to admit that, '2013 was a disastrous year, the worst in our 150-year history'.

The Co-op, which once had funeral, pharmacy, insurance, banking and a supermarket among its businesses had lost a staggering £2.5 billion and faced the near collapse of its banking arm, which had a £1.5 billion hole in its finances. Former City minister Lord Myners, who resigned from the Group’s Board, blaming former managers, ‘who were allowed to run amok like kids in a sweet shop’.

If it wasn’t bad enough that mismanagement had almost run the mutual into the ground, there was also the matter of the Co-op Bank’s former Chairman Reverend Paul Flowers being charged with drug offences. The Group received extensive coverage not just on the business pages but across the front pages thanks to the so-called Crystal Methodist.

In short, it was a very public, very ugly meltdown.

The Group subsequently introduced a turnaround plan – Rescue, Rebuild, and Renew. So this week’s announcement that they are back in the black marks a major milestone for the troubled group: it’s the end of the Rescue phase of the program.

Now it remains to be seen if the Co-op can build on this momentum and successfully complete the turnaround. The group has returned to profit because it sold its pharmacy and farming businesses but there is still a lot of work to be done. What sets the Co-op apart from other businesses is that it promises that it is ‘not just about profit’. Before the Co-op became plagued by scandal, the Group’s 2012 accounts even stated, ‘In line with our member-owned model, investment decisions are not driven by the purely financial demands of shareholders, but by the wider concerns of our members’. And that promise is also exactly why this turnaround can’t just be about profit.

In order to restore its tarnished image, the Co-operative also has to find a way to regain the respect, loyalty and trust it once held. In other words, the comeback has to be as much about restoring these values as it is about restoring value to its businesses.



During this short Easter week, Abchaps hosted a Market Lunch, attended the Third Annual Nowruz Commission Gala Dinner at the Institute of Directors and caught up with Man Group.



Westhouse Securities announced that Andy Crossley will be joining as Managing Director from Peel Hunt. Meanwhile, Mike Falvey moves from Four Seasons Health Care to partner of the performance team at KPMG. Baring Asset Management also appointed Edmund Chong, previously of HSBC, as Head of Sales, Client Service and Business Development, distribution for Asia ex. Japan.



“Crystal Methodist” – A Methodist minister with a penchant for crystal meth and cocaine. A phrase whose origins can be traced back to the Daily Mail, if only because of the high number of headlines featuring the UK’s very own Crystal Methodist, Paul Flowers.



This Saturday is, of course, all about the Oxford Cambridge Boat Race. It's always quite the spectacle, so make sure you pick out a good spot along the river to watch the race unfurl. Not into the whole Oxbridge rivalry? Perhaps the Oxford Cambridge Goat Race is more your thing.

Head to the Garden Museum in Lambeth for an exhibition about the New Covent Garden Flower Market. Listen to excerpts of interviews about the market, what it’s like for people working there, the connection to the old Covent Garden Market and the changes that are happening now.

Grab a bargain on Sunday at Judy’s Affordable Vintage fair, at York Hall in Bethnal Green, with a selection of hand-picked stalls packed with affordable vintage fashion, accessories and homewares.

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