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HOW BOOTS BECAME KING OF THE HIGH ST
CAMERON: EURO IS ON THE BRINK BY TIM WALLACE, JULIET SAMUEL AND PETER EDWARDS
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DAVID Cameron will today warn that “Greece is on the brink” and “the survival of the euro is in question,” thanks to “a crisis that never really went away.” “The Eurozone is at a cross-roads,” he will say in a major speech on the economy. “It either has to make-up or it is looking at a potential break-up.” The stark warning came as business leaders warned of severe consequences for the economy and Mervyn King revealed the Bank of England is planning how to respond to the break-up of the Eurozone, which looks increasingly likely as Greece may elect an antibailout government next month. Britain’s economy has already been hit hard by the crisis, with exports affected and banks exposed to any collapse, but worse is yet to come with King warning of a “storm”. Any solution will be expensive, Cameron told the Commons yesterday, as “[Europe] has got to build a proper firewall, it has got to take steps to secure the weakest members of the Eurozone, or it is going to have to... go in a different direction.” King used unusually blunt terms, saying “the Eurozone is tearing itself apart, without any obvious solution.” As a result, he said the Bank is working with the Financial Services Authority and Treasury to work out how to limit the fallout from a Eurozone exit, and that the Financial Policy Committee is considering the
impact on the banking system. Standard Chartered’s head of Europe Richard Holmes said he is planning for a Greek exit: “We have a task force trying to figure out what is the impact of this. For example… we clear euro dollars through Frankfurt so if there’s a redenomination of part of that flow then we are equipped to handle that.” Although King refused to be drawn on the specifics, economists said a Greek exit could mean more loosening is on the way despite high inflation. “The key transmission channel here is the contagion through financial markets and in particular the funding costs of the UK banks,” said RBS’s Richard Barwell. “The logical conclusion is that the MPC is signalling it is close to expanding QE.” ECB boss Mario Draghi also acknowledged the prospect of an exit, but said his “strong preference is that Greece will continue to stay in the Eurozone.” Meanwhile Michael Spencer, head of inter-dealer broker Icap and a former Tory treasurer, said his firm is ready to trade in drachmas within days if Greece pulls out of the euro. “I don’t think it will happen next week but I think it will happen. The inclusion of Greece in the euro project was a profound error and will come back to haunt us,” he said. Investors continued to move into safe haven assets, pushing British 10-year borrowing costs down to 1.88 per cent. Greek and Spanish stocks both fell 1.33 per cent, German shares fell 0.26 per cent, and the FTSE lost 0.6 per cent. MORE EUROZONE: Page 4
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FSA targets brokers for insider cases EXCLUSIVE
BY JULIET SAMUEL
GETTY
ISSUE 1,634 THURSDAY 17 MAY 2012
David Cameron told Eurozone leaders to act fast if they want to hold the currency together
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TRIES AT TWICKENHAM
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THE FSA has written to 190 brokers demanding explanations for why they have failed to flag up enough “suspicious trades” to the City watchdog and warning they could face visits from enforcement officers as a result. The letters, sent in April, are part of a wider FSA crackdown targeting not just those leaking and trading on inside information, but even those executing the trades. The watchdog selected the firms on the basis that of the millions of trades they have recorded carrying out, they have sent in few or no “suspicious trading reports” (STR) flagging up notable activity like trades carried out just before price-sensitive announcements by a company. The firms receiving the letters are mostly large brokers with institutional clients or funds like investment banks and asset managers. Although the letters are not aimed at “fishing” for enforcement cases, they could result in enforcement officers visiting a firm and forcing brokers to retrain their staff and offer up more information such as a “near-missed log” of unusual trades. The move is a significant escalation of the FSA’s war on insider trading and follows on from the David Einhorn/Punch Taverns case, in which the FSA fined Caspar Agnew, a JP Morgan trader who executed a share sale for Einhorn, because he did not flag the trade as suspicious after Punch unveiled a rights issue. Ruth Gevers, a director at Promotory and former FSA officer said the FSA’s aggression means “people who want to comply with the regime worry about how they can be sure they will always comply.” Certified Distribution 02/04/2012 till 29/04/2012 is 100,668
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THURSDAY 17 MAY 2012
NEWS
To contact the newsdesk email [email protected]
Eurozone break-up will be traumatic but is now inevitable
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T is good to see Sir Mervyn King and David Cameron both being a little more open about the possibility of a Greek default. We need realism, not delusion, from our central bankers and politicians; and it is looking more likely by the day that Greece will elect a rabidly antiausterity government next month, default on its debts and exit the euro. Yesterday’s inflation report from the Bank of England was inevitably a damp squib: even approximate forecasts are impossible until we gain greater visibility on the Eurozone’s great unravelling. Even the reduced UK growth forecast of 0.8 per cent for 2012 could end up being overoptimistic. Will a Grexit be containable – or will it be a Bear Stearns, a dry run which ends up precipitating a new Lehman Brothers that takes down the whole
Falling real pay holds back UK GDP recovery BY TIM WALLACE WORKERS took another beating in quarter one as prices increased far faster than wages, official data showed yesterday, which will continue to drag down consumer spending and economic growth. Pay in the quarter was just 0.6 per cent higher than in the same period of 2011, the Office for National Statistics (ONS) revealed – while prices rose 3.5 per cent in the year to March, leaving the average worker 2.9 per cent worse off. Bonuses led the slowdown, falling 9.8 per cent, even before inflation is taken into account. Public sector workers saw average weekly earnings rise 0.3 per cent to £481 – a 3.2 per cent real terms pay cut – and private sector staff saw wages rise 1.3 per cent to £460, a 2.2 per cent real terms fall. Unemployment fell by 45,000 in the first quarter to 2.63m, while employment jumped 105,000. However, the number of full time workers fell 13,000 while part time employment rose 118,000. As a result, economists believe the recovery will remain weak. “With unemployment still high, people worried about job security and real pay falling, there still seems little prospect that consumer spending will do anything other than act as a drag on the economy,” said Chris Williamson from Markit.
EDITOR’S LETTER ALLISTER HEATH EU economy? The realistic best-case scenario is somewhere in between – but nobody really has a clue, so fancy forecasts are useless. The fact that the Bank of England has assigned, somewhat ludicrously, a tiny but non-zero probability of UK growth hitting nearly six per cent by 2014 and 2015 shows that there is something very wrong with its fan chart forecasts. But while the short-run pain from countries exiting could be immense, the consequences for them of staying
in would be worse long run. The main reason why the euro needs to break up is because many of its current members allowed their competitiveness to deteriorate disastrously both before and after they joined the single currency. Prices and costs rocketed in some countries; in the past, this might have triggered a drop in their exchange rate. Tragically, they don’t have the internal political strength to slash their costs and regain their competitiveness the hard way. Politicians told their electorates so often that they would be able to have their cake and eat it that reforms have now become politically impossible. The result is that the euro helped create a huge current account surplus in parts of the region and a huge current account deficit in other parts, with capital flowing in the opposite direction. An analysis by Doug
McWilliams of the Centre for Economics and Business Research (CEBR) reveals that since 2000 Greece has lost 24 per cent of its export market share (from an already low base), France 20 per cent and Italy 18 per cent. Germany’s share has risen by 23 per cent. The German current account surplus this year is likely to be about $180bn. It has been the great winner from the euro; the single currency’s collapse against the dollar in recent days is giving its exporters yet another boost. The euro fuelled another problem that is now unravelling. The yield premium to compensate for the risk of investing in euro-denominated bonds issued by a weak country compared with those issued by a strong country kept on narrowing. Investors started to believe that there was a single European government, and that this
Inflation will be above target until mid-2013 BY TIM WALLACE INFLATION will stay above target for another year, the Bank of England warned yesterday, while Britain’s economic growth will be even weaker than it expected just a few months ago. Households will keep suffering under soaring prices all year, with inflation only expected to fall back to its two per cent target in the middle of 2013, the May Inflation Report predicted. Governor Mervyn King argued that he could have taken steps to cut runaway inflation over recent years, but only at the price of higher unemployment and even lower economic growth. Price rises are falling more slowly than expected because of rising utilities bills and oil prices, but the gradual overall downward trend in inflation should continue because of weak pressures from domestic factors like wages. However, the Bank still expects inflation to fall below target in 18 months to two years’ time, which economists believe could mean more policy loosening is on the way. “We assume that some MPC members, given this forecast, actually voted for extra quantitative easing (QE) last week,” said Citi’s Michael Saunders.
“It may be that the majority did not wish to surprise markets with extra QE last week, but chose instead to soften expectations with the lower inflation forecasts first – in order to be ready to expand QE soon (perhaps in June or July) if needed.” Meanwhile the Bank cut its GDP growth forecasts to around 0.8 per cent for 2012, down from 1.2 per cent in its forecasts three months ago. King maintained t h e econo-
The Bank cut its GDP growth forecast 8 Bank estimates of past growth Projection 6 4 2 ONS data 0 -2 -4 -6 -8 2008 09
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my should recover in coming years to achieve growth rates of two to three per cent in 2013 and 2014, but said the ongoing squeeze on household incomes and the pressure on bank funding conditions from the renewed Eurozone crisis have also hit growth. The Bank also suggested the UK may have avoided a technical recession – falling unemployment and positive survey data mean it expects the first quarter’s GDP figures to be revised up – but did warn that the second quarter will remain weak. In particular, the Inflation Report estimated the additional Diamond Jubilee bank holiday could knock 0.5 percentage points from the GDP figure in the quarter.
Mervyn King expects high inflation for another year Inflation will be higher than previously expected 7 % increase in prices on a year earlier 6 5 4 3 2 1 0 -1 -2 2008 09
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meant than any debt denominated in euros was safe. It was thus claimed that the single currency had achieved a free lunch: lower interest rates for all countries, without damaging the credit of strong countries. But the low rates in periphery countries, including Spain and Ireland, helped fuel property bubbles. The cost of euro break-up will range from 2 to 5 per cent of Eurozone GDP, the CEBR estimates, and could even reach $1 trillion at worst, depending on whether it is orderly and on how many countries leave. But whatever the cost, growth will be faster afterwards than it would be under the current set of policies. Intense disruption could be imminent – it’s time to fasten your seatbelts. [email protected] Follow me on Twitter: @allisterheath
IN BRIEF Fed to stick with current policy Several Federal Reserve policymakers last month thought the US central bank might need to do more to prop up the economy if the recovery stumbles, but there was almost no support for extending its so called Operation Twist programme, due to end in June. Minutes of the Fed’s most recent policy-setting meeting, released last night, suggested officials were inclined to stay their current course, given a “moderately” expanding economy and a seemingly improving employment market. But while half saw risks to the outlook as broadly balanced, nearly all the rest saw dark clouds on the horizon, both at home and abroad. “Participants identified several downside risks to the projected pace of economic expansion, including the fiscal and financial strains in the euro area and the possibility of an abrupt fiscal consolidation in the US,” the minutes said.
ICAP in talks to buy Plus Markets The world’s largest interdealer broker by market capitalisation ICAP is in talks to buy Plus Markets Group the UK exchange for fledgling companies. The London-based broker has been talking to the Financial Services Authority and the Plus board about a deal that would initially preserve the quotations of the 156 companies traded on the market, according to the Financial Times. Plus Markets Group is planning to close after failing to secure a buyer, and without a deal it faces going private or seeking other trading facilities.
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WHAT THE OTHER PAPERS SAY THIS MORNING Google unveils search results rejig Google is preparing the biggest overhaul of its search results in five years, in a change likely to draw more fire from rivals amid intensifying antitrust investigations into the company. The new service will present users with detailed information about more than 500m “real world” items rather than passing them on to another website to find an answer.
Shell warns on US gas bounce Royal Dutch Shell expects US natural gas
prices to double by 2015, rebounding strongly from the 10-year lows they have hit as a result of the shale gas boom as US domestic demand for the fuel grows.
HMRC faces quest for new tax chiefs Four of the top five civil servants in Revenue & Customs are set to leave this summer in a spate of departures that will strip the department of its most experienced tax professionals. Three of the HMRC’s five commissioners are planning to retire. A fourth, Steve Lamey, director-general for benefits and credit, is leaving to work in the private sector.
CITYAMCAREERS.com
Builder reduces back office jobs Britain’s largest contractor is to cut 650 jobs in response to the downturn in the building industry. Balfour Beatty, which helped to build Heathrow Terminal 5, is to reorganise its British construction services business into three divisions.
Preparing to dance in the Steel City The British high-tech industry is set for a shot in the arm when a software business conceived in Silicon Valley but raised in Sheffield announces its intention to float on AIM today. It intends to raise £10m.
Britain exports pigs to China
Britain is sending thousands of pigs to China in a bid to boost exports and exploit Chinese people’s love of offal and pork.
Cost of bureaucracy on the rise The cost of red tape has actually risen for businesses and some Whitehall departments have not scrapped a single regulation in the last 18 months. Regulation has cost companies an extra £18.5m since the start of 2011, even though ministers are meant to scrap one rule for every new one they introduce.
Skechers settles over false advert
Skechers USA will pay $50m to resolve federal and state allegations that it deceived the public by making unfounded claims that its “toning shoes” would help consumers tone muscles and lose weight.
GE Capital resumes paying dividend For the first time in three years, General Electric will again be able to take cash out of its hulking finance arm. GE Capital, one of the country’s top lenders, will pay its parent GE a $475m quarterly dividend.
The new jobs website for London professionals
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THURSDAY 17 MAY 2012
NEWS
Early Facebook investors to sell bigger stakes FACEBOOK yesterday increased the number of shares on sale by a quarter, setting itself up for a possible $18.4bn (£11.6bn) flotation tomorrow. The social media behemoth added a further 96.4m shares to its offering, bringing the total number on sale to 484.4m, At the higher end of the $34 to $38 price range, the flotation could raise $18.4bn. Several of the website’s early investors have decided to cash in on the overwhelming demand for Facebook shares, which led several brokers to close their books early. Goldman Sachs, which invested $450m in Facebook just last January, has more than doubled the number of shares it is selling from 13.2m to 28.7m. At the mid-range price of
$36 per share, Goldman Sachs, which will also rake in the cash from counderwriting the IPO, would pocket $1bn from the sale. Peter Thiel, one of the social network’s earliest investors, will cut his 2.5 per cent stake to less than one per cent by selling 16.8m shares, up from the previous allotment of 7.7m. DST Global, the internet investment firm owned by Russian tycoon Yuri Milner, will now offload a quarter of its stake – 45.7m shares up from 26.3m – while hedge fund Tiger Global has increased its offering sevenfold to 23.4m shares. The new structure of the flotation slightly cuts Mark Zuckerberg’s voting control from 57.3 per cent to 55.8 per cent. Facebook is set to unveil its IPO pricing today ahead of its Nasdaq debut tomorrow, when the share price is expected to balloon.
Mark Zuckerberg will control 55.8 per cent of Facebook, down from 57.3 per cent.
Hague told UK firms are trying to boost jobs BY JAMES WATERSON
GETTY
BY LAUREN DAVIDSON
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JP Morgan, headed by Jamie Dimon, has been accused of excessive risk-taking
JP Morgan hit by two investor lawsuits over $2bn trading loss BY KATIE HOPE JP MORGAN has been hit by two separate lawsuits from shareholders accusing it of excessive risk-taking following last week’s revelation of a $2bn trading loss due to a “failed hedge strategy”. Jamie Dimon, JP Morgan’s chairman and chief executive, and Douglas Braunstein, the bank’s finance director, are accused of breaching fiduciary duty to investors and wasting corporate assets in a suit filed in New York by Californian shareholder James Baker. In a second lawsuit filed by
asset management firm Saratoga, the firm is accused of making “materially false and misleading statements and omissions” about the trades when asked about them by analysts in April. At the time, Dimon described them as a “tempest in a teapot.” “Defendants misrepresented the losses and risk of loss to the company,” the complaint said. The lawsuits were filed as it emerged that the bank’s asset management division had been betting against the position taken by its chief investment office, exacerbating the $2bn loss. JP Morgan declined to comment.
WILLIAM Hague was told last night that businesses are doing all they can to grow the economy – and do not need the government to “crack the whip”. Sir Roger Carr, president of the CBI, told guests at the organisation’s annual dinner that “there are no whinging businessmen here” only “engaged and positive people advocating a more constructive approach to solving the nation’s greatest challenge – growth”. The foreign secretary was criticised this week for saying firms should stop “complaining” and that “There’s only one growth strategy: work hard”. But Carr said businesses were doing their best to grow the economy, even though they needed the government to implement more business-friendly policies. Outlining several “hard truths”, he said there is a need to fight the “sense of entitlement at all levels” and fix an education system that “is failing young people and failing the country as a whole”. “We have to earn our way in the world, be smart enough to know what we are good at, brave enough to reach out to new markets, bright enough to develop new products, and driven enough to beat the competition,” he added.
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cityam.com
THURSDAY 17 MAY 2012
NEWS
EU consumers cut back on cars INFLATION stayed high in the Eurozone in April, official figures showed yesterday, while manufacturing took a blow from plummeting car registrations. Consumer prices rose 2.6 per cent in the Eurozone in the year to April, according to Eurostat. The figure is down slightly on the 2.7 per cent in the previous month, but still well above the European Central Bank’s two per cent target, limiting the Bank’s ability to stimulate growth. Meanwhile new passenger car registrations in the EU fell to 1.02m in April, the European Automobile Manufacturers’
Association reported – a 6.9 per cent drop on the year. Nissan reported a fall in sales of 21.1 per cent in the month, while Renault saw a drop of 17.1 per cent. However, the currency union did increase exports in the first quarter, providing an additional source of economic growth – the trade in goods balance rose to €8.6bn (£6.87bn) in March, up from €1bn in the same month of 2011. A four per cent rise in exports was largely responsible, and now stands at €164.9bn – though economists warned demand from key market China could be shaky in coming months. “While Eurozone export growth is predicated upon more than
exports to China alone, nonetheless these global developments do suggest that the outlook for euro area exporters is likely to be cautious until global demand reaccelerates,” warned Barclays’ Julian Callow.
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BY TIM WALLACE
New Greek PM greeted by fear over ECB funds BY JULIET SAMUEL AND JULIAN HARRIS
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A CHANGE to the liquidity support offered to Greek banks by Brussels prompted more worries over the future of the Eurozone yesterday, while the troubled Mediterranean state announced that its emergency government would be headed up by a judge until fresh elections on 17 June. Greek President Karolos Papoulias named council of state head Panagiotis Pikrammenos as caretaker prime minister. It is feared that he will be replaced by a far-left antibailout leader next month, with polls showing that pro-bailout parties are increasingly set for a hammering. Investor concerns over the likelihood of Greece crashing out of the single currency areas are escalating the political turmoil. And markets were spooked further yesterday by reports that the ECB was switching Greek banks from one liquidity scheme to another, mistaking the move for the cuttingoff of funds to the country’s lenders. The confusion arose because the banks have run out of collateral that is eligible for the Bank’s normal liquidity provision, forcing
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them to switch to the Emergency Liquidity Assistance programme (ELA), until the Eurozone bank bailout capital that was agreed in March arrives. The ELA has lower standards for collateral but requires more of it in return for funds. Once the €48bn in capital, which takes the form of bonds issued by the European Financial Stability Facility, is handed over to the banks, they will switch back to the ECB’s normal liquidity scheme. However, the incident highlighted the fragility of the Greek banking system and their heavy reliance on help from Frankfurt. The euro traded near break-even and banks dragged down Europe’s top shares to close lower in choppy trade on worries over the stability of the Eurozone. “People are waiting to see what will happen with Europe; the line in the sand for taking some kind of action is getting closer,” said Reed Choate, of Neville, Rodie & Shaw in New York. Choate said efforts by German Chancellor Angela Merkel and new French President Francois Hollande to quell talk of a possible Greek exit from the euro were positive, but the reported withdrawal of ECB funding still weighed on markets.
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DO YOU THINK GREECE WILL LEAVE THE EUROZONE? Interviews by James Waterson No. I think politicians will stand up and there’s still a solution. There have been some steps made already by Merkel and Hollande and there’s a possibility for Greek politicians to agree on something.
Probably. The Greeks want to stay in but they don’t want the austerity measures. I think contingency plans are being worked on. I’d guess eventually the Greeks will leave and perhaps a couple of others. Yes. The country’s bankrupt and they can’t carry on the way they are. The only way they could save it is if they get a coalition together and agree to the austerity measures and that’s not going to happen.
These views are those of the individuals below and not necessarily those of their company
Spain to calculate property exposure as auction looms BY KATIE HOPE THE Spanish government is today expected to appoint independent firms to assess the true valuation of its real-estate exposure in a lastditch bid to address concerns over the health of its banking sector. Oliver Wyman and BlackRock will compare the book value of loans to their market value as well as their potential value if the real estate market falls further, according to the FT. The appointments come ahead of fears over the success of today’s auction, where the Spanish Treasury aims to sell between €1.5bn and €2.5bn of sovereign bonds expiring in 2015 and 2016. The risk premium investors
demand to hold Spanish over German debt rose over 500 basis points yesterday. And Prime Minister Mariano Rajoy warned that the Treasury faced trouble financing itself at a reasonable rate following the recent spike in yields. World Bank president Robert Zoellick said yesterday a decision by Greece to leave Europe’s common currency zone could have a similar impact to Lehman Brothers’ 2008 collapse. “The core question will be not Greece, but Spain and Italy,” he said. “Where the danger comes in is when events come and they start to affect confidence and you get illiquidity moments, and illiquidity moments start to mean something begins to tumble, whether it’s companies or banks,” he said.
cityam.com
THURSDAY 17 MAY 2012
Winning formula of a high street chemist BOTTOM W LINE HEN I was growing up in south east London in the 1990s, there was very little in the way of decent shops on the nearby Penge high street. The proliferation of betting and pound shops, which would eventually blight most shopping precincts, was already well-advanced. There were just a few of the chains that you would find in more prosperous areas: a Clinton cards; a Woolworths; and a Boots. Now there is only one. Indeed Boots has hardly closed any stores during what has been a truly disastrous downturn for retailers. Last year, likefor-like sales at UK Boots stores open for a year or more fell by 1.1 per cent, but the talk at yesterday’s press conference with executive chairman
DAVID CROW Stefano Pessina was all of expansion. So what is the secret? Well, it certainly isn’t the revenue Boots makes by dispensing prescriptions, which fell by 1.6 per cent last year even as volumes jumped by 1.9 per cent. The government has cut the subsidy it gives to pharmacies while the replacement of branded drugs with cheaper generic ones – a byproduct of the patent cliff that
Alliance Boots chair: UK is not pro-business BY KASMIRA JEFFORD ALLIANCE BOOTS’ executive chairman yesterday praised the coalition’s “friendly” attitude to business but warned that broader “anti-business” public environment could drive companies away. The drugs company and owner of Boots the chemist, moved its headquarters to Switzerland shortly after Stefano Pessina and private equity firm Kohlberg Kravis Roberts took the group private in in 2007 for £11bn. It came under fire from protest groups such as UK Uncut last year for avoiding tax in the UK. Pessina said he welcomed the government’s move to cut corporation tax but said: “My only regret is that the atmosphere in the UK is becomi n g antibusiness.
“This is not a good thing, because investment means jobs and that’s what we need in this country,” he said, adding that the company had invested over £1bn in the UK over the past five years. “There are countries where we have not invested £1 for 10 years or more”, he said. His comments came as the group said trading profits jumped 12.4 per cent to £1.2bn in the year to 31 March on sales up 18.4 per cent to £23bn. The pharmaceutical wholesale division, which supplies medicines to more than 160,000 pharmacies and hospitals in 21 countries, saw revenue rise by 27.9 per cent on the back of acquisitions in Turkey, Germany. Trading profit at Boots UK, which has 2,500 sites, rose by 5.2 per cent to £750m, boosted by a strong performance across its beauty and toiletry division. But the continued squeeze in consumer spending and the government’s decision to cut the amount it reimburses for medicines caused likefor-like sales to fall 1.1 per cent.
Stefano Pessina said his firm invests in lower-taxed areas
John Lewis ups Matalan posts sales outlook solid results BY CITY A.M. REPORTER JOHN Lewis, the UK’s biggest department store, yesterday raised sales guidance after outperforming a flat retail market in its first quarter and said the economy is on course for a slow recovery, despite a recent dip back into recession. In the quarter to 28 April the group saw sales growth of 12.2 per cent, equal to like-for-like growth of about seven per cent, well above the flattish overall market.
BY KASMIRA JEFFORD BUDGET fashion and homeware retailer Matalan defied the retail gloom to post a 1.9 per cent rise in full year sales to £1.1bn. The company said despite “solid” results, margins were hit by discounting, VAT increases, and its decision not to pass on higher input prices to customers. Earnings before interest, tax, depreciation and amortisation of £91.1m compared with £153.6m last year.
has big pharma in such a panic – has also pushed down revenues. Nor is it the sale of non-prescription drugs for coughs and colds, which dropped last year thanks to a relatively dry winter. Despite its best efforts to punt remedies for more modern ailments such as stress and insomnia, like-for-like sales in retail health fell by 2.4 per cent. It was an incredibly strong performance in its beauty and toiletries arm that saved the year; if it weren’t for a 2.2 per cent jump in like-for-like sales here, Boots’ overall performance would have been much worse. And it is this division, rather than prescriptions or paracetamol, that is a true yard-stick of how good a retailer Boots is.
Part of the reason is that toiletries are a pretty resilient category; things might be tough but most people haven’t got to the point where they’re willing to go without deodorant and shampoo. That is only part of the answer though. Boots has stiff competition in the form of the supermarkets for pretty much everything it sells, from nappies to lipstick. Rather it is the combination of a major draw in the form of a dispensing chemist, a resilient product category, and some very good retailing that has kept a Boots on every high street. It’s just a shame it is so lonely these days. [email protected] Follow me on Twitter: @davidcrow83
NEWS
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Clintons set to shut 350 shops BY LAUREN DAVIDSON CLINTON Cards will close 350 stores across the UK, leading to the loss of 2,800 jobs, administrators Zolfo Cooper revealed yesterday. The high street retailer entered administration on 9 May after defaulting on loan repayments. Zolfo Cooper yesterday said Clinton Cards is “burdened with an untenable retail estate” and 350 of its 784 stores nationwide will “regrettably” close. The scheme, which will hit all of the Birthdays stores and about 200 shops under the Clinton brand, will begin closing next week and continue into June.
I AM THE MERCHANT. I ENTERTAIN MANY GUESTS, BUT NONE AS ESTEEMED AS MY DELICIOUS GUEST ALES.
cityam.com
THURSDAY 17 MAY 2012
NEWS
9
PROFILE: BROKERS AT WAR AUGUST 2008
JANUARY 2009
Verrier starts work for BGC as executive managing director and general manager, with duties including recruitment
conspired to induce breaches of contract. Verrier “lost or disposed” of eight blackberries, some of which contained “inconvenient material”, according to Mr Justice Jack.
SEPTEMBER 2008
FEBRUARY 2009
FEBRUARY 2011
Tony Verrier tells Tullett Prebon he is resigning as chief operating officer in order to join rival BGC Partners. Tullett begins legal proceedings against Verrier in an attempt to prevent him working for BGC until the following summer.
NOVEMBER 2008
Verrier agrees not to start work for BGC until January 2009.
DECEMBER 2008
Verrier arranges to have dinner with an unnamed person from Tullett. The meeting is later ruled to be “plainly part of the recruitment exercise”.
13 Tullett staff tell the firm they have agreed to jump ship to BGC when allowed to do so by their existing contracts. Three staff later decide to remain in their positions.
MARCH 2009
Tullett serves legal papers on BGC. Soon after 10 of the 13 Tullett staff claim they have suffered constructive dismissal and say they would join BGC as soon as possible.
MARCH 2010
High Court judge rules that Verrier and others
Court of Appeal dismisses appeal by BGC and says the original ruling was “meticulous”.
FEBRUARY AND MARCH 2012
Verrier tells the FSA he poses no risk to UK market confidence, his actions did not break criminal law and it would be “unjust” to base an order on a judge’s ruling.
MAY 2012
FSA bans Verrier and says he is not a “fit and proper person”. He says he will take an appeal to the Upper Tribunal.
Tony Verrier is now believed to be working abroad for BGC Partners
Broker Verrier banned after poaching saga BY PETER EDWARDS THE City regulator has stepped up its war on directors by banning a top broker after he was savaged in a High Court poaching trial. Tony Verrier, a senior executive at BGC Partners, faces a lifetime ban from working in the City after the Financial Services Authority said he “was not a fit and proper person due to concerns over his “honesty, integrity and reputation”, The ruling follows a high profile trial which found Verrier, dubbed the “pied piper”, poached 10 staff from rival and former employer Tullett Prebon and then evaded the truth “with equanimity and adroitness” in his evidence. Verrier, 48, contests the FSA’s decision and will appeal at independent judicial body the Upper Tribunal. The origins of the case go back to August 2008 when Verrier, a protégé of Tullett boss Terry Smith, told the firm he was leaving to go to work for BGC. Days later he told Tullett that he considered he had been constructively dismissed, and Tullett took him to
court. In 2010, however, the High Court ruled that BGC, its president Shaun Lynn and Verrier, had conspired to induce 10 Tullett brokers to defect. “Verrier stuck to the truth where he was able to, but departed from it with equanimity and adroitness where the truth was inconvenient,” said Mr Justice Jack at the time. Verrier was also found to have “lost or disposed of eight blackberries” to cover his tracks in the twelve months he was trying to poach Tullett brokers. BGC failed in an appeal early last year. It settled with Tullett in a separate hearing last April. Tracey McDermott, FSA acting director of enforcement and financial crime, said yesterday: “In light of the High Court’s findings about Verrier’s conduct, we have concluded that he is not fit and proper to be in the UK financial services industry.” The FSA register shows Verrier was de-listed in the UK in September. Sources said he was now working for BGC overseas. The firm did not return calls and Tullett declined to comment.
Takeover target London Metal Exchange reports falling profits BY CITY A.M. REPORTER PROFITS at the London Metal Exchange (LME) fell 19 per cent last year, as higher costs and investments outweighed a sharp rise in trading volumes. The results come as three major exchanges – CME Group, Hong Kong Exchanges and Clearing Limited, and Intercontinental Exchange – compete to buy the LME, the world’s largest metals marketplace. The exchange has been independently valued at £1bn. The exchange disclosed it would
pay Moelis & Co, its financial adviser, a £3.5m fee plus 0.5-0.7 per cent of the valuation of the exchange if it is sold. According to figures in the LME’s annual report, revealed by the Financial Times, revenues at the LME rose by a fifth last year. That was on the back of a 22 per cent increase in trading volumes in its contracts, which serve as global benchmarks for metals such as copper, aluminium and zinc, but net profit fell from £9.5m to £7.7m on the back of higher costs.
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cityam.com
THURSDAY 17 MAY 2012
Dutch bank ABN AMRO warns bad loans will continue to rise NATIONALISED Dutch lender ABN AMRO reported a 16 per cent drop in net profit to €454m (£363m), hit by a rise in losses on bad loans due to the ongoing recession in its home market. It was a significant improvement on the €23m loss seen in the fourth quarter of last year, when all banks were hit by a Eurozone credit crunch. But ABN AMRO chairman Gerrit Zalm warned that the recovery
could be short-lived: “As the business environment we operate in is still unstable, these first-quarter results cannot be extrapolated for the remainder of the year,” he said. Instead, the bank expects impairments to continue to rise as they did in the first quarter of this year. The bank has lost €187m on bad loans so far this year, 50 per cent more than during the first quarter of last year. But despite a deterioration in Dutch house prices, mortgage impairments were relatively stable.
Spencer: Icap ready if Greece leaves the euro BY PETER EDWARDS ICAP chief executive Michael Spencer said yesterday the broker could be ready to trade in drachmas within days and predicted other nations could follow Greece out of the euro. Spencer said Icap – which posted a small drop in annual profits – is “hypothetically” ready for a return to the drachma “next week” if Greece finally leaves the Eurozone. “I don’t it will happen next week but I think it will happen. Inclusion of Greece in the euro project was a profound error and... there are other countries that will need to be shed. “Greek exit is inevitable and I believe it will be a good thing for Greece in the long-run.” Icap, which works in the bond, foreign exchange and swaps market, posted a seven per cent fall in pre-tax profits to £217m for the year to 31 March and net profit fell 27 per cent to £137m, although it posted a four per cent rise in operating profit at its electronic business to a record £127m.
Total revenue fell three per cent to £1.68bn, as trading levels were down across the group, with credit and rates hardest hit, but operating costs were reduced by four per cent to £1.31bn. Icap has joined rivals, such as Tullett Prebon, by cutting costs. It made £20m of savings over the year, through cutting jobs, overheads and IT, and will cut a further £50m by the end of March 2014 through savings mainly in procurement and IT. The workforce increased by 200 to 5,100 in the year to 31 March.
355 p 345
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increased shareholder responsibility ... for example ... mandatory shareholder vote on remuneration,” Barnier said. International regulators have already acted to try to restrain bonus payouts at banks, many of which were bailed out by taxpayers after the financial crisis. And shareholders in Britain and the US have recently got more rebellious and voted down large pay deals for bosses because of poor performance. Barnier, who has also campaigned for bonus curbs, said shareholders should be given the power to impose such limits.
BY CITY A.M. REPORTER SHAREHOLDERS should have the power to curb bosses’ pay and set caps on executive bonuses, the EU’s top regulatory official said yesterday, adding to pressure on banks and companies over excessive management pay deals. The plan from Michel Barnier, the European Commissioner in charge of regulation, could pave the way for a pan-EU law next year that would give investors legal clout to take on Europe’s executive elite over pay. “For all listed companies, I support transparency and
IN BRIEF CCS funding attracts 16 bidders
At least 16 companies are interested
Icap boss Michael Spencer said activity in April and early May was slow
ANALYST VIEWS
Interviews by Peter Edwards
HOW IS THE TRADING SLUMP AFFECTING BROKER ICAP?
NESE GUNER CITI
“ “ “
We expect downgrades to consensus full year 2013 revenue forecasts given the slow start to the year and the possibility of a slow summer. Currently the consensus range for 2013 revenues is wide: £1.64bn to £1.84bn.
JAMES HAMILTON NUMIS
IC A P PL C 350
Instead, the rising losses stemmed from commercial real estate and consumer loans. Zalm also warned against the government raising its banking levy – Holland is one of the few EU countries other than the UK to have imposed an extra tax just for banks. “A real concern for the Dutch banking sector is the recent proposal to raise the bank tax further,” he said, saying that along with an avalanche of other regulations, it will make Dutch banks much less competitive.
11
EU’s Barnier pushes for binding shareholder vote on pay deals
LAURA LEAN/CITY AM
BY JULIET SAMUEL
NEWS
” ” ”
We believe the time to buy Icap is when there is the prospect of higher interest rates in the US... While many believe the banks have restricted their trading activities as much as they are going to we do not believe this.
DANIEL GARROD BARCAP
An in line headline set of full year 2012 results but the mix is more positive than expected. There is good detail on future cost takeout and the dividend is raised 10 per cent year on year equating to a yield of 6.6 per cent.
in participating in Britain's £1bn competition to fund one or more carbon capture and storage (CCS) projects, the government said yesterday, hoping to encourage competitors to link projects together. Companies including Shell, National Grid and Centrica have signalled an intention to apply for funding but the government does not expect all registered bidders to make a full application by 3 July.
Arden Partners sees better trading Stockbroker Arden Partners said
yesterday that trading in the first half had been better than anticipated, and that its revenues and profit were ahead of budgets. Since the end of last year Arden has added 34 brokerships, taking the average market cap of its clients to £195m.
Venture capital deal flow falls
Venture capital deals saw a brief
resurgence in 2011 compared to the previous year, according to data from Preqin, but have slowed since the start of 2012. The data provider said the aggregate value of venture capital deals increased by 42 per cent between 2010 and 2011, from $33.7bn to $48bn, but had dropped back by five per cent in the first quarter of this year. Europe’s share of deals has fallen between 2010 and 2012 to date, accounting for 22 per cent of all deals in 2010, 18 per cent in 2011 and 19 per cent of completed deals in the year to date.
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Boisdale celebrates a decade
Lord Lamont (above) with Boisdale member Georgina Thorburn and Boisdale managing director (below) Ranald Macdonald
IT was a case of glasses of Boisdale claret all round the other evening as the clubbable Scottish restaurant celebrated 10 years at Bishopsgate by throwing a party for its members and regulars. Guest of honour was former chancellor Lord Lamont, who shared his recollections of life at 11 Downing Street. Lamont was introduced to the guests as “the most effective but also the bravest chancellor since the war.” Boisdale of Bishopsgate has long been considered by many as the flagship culinary Boisdale experience in London, even as the group has grown. Head chef Neil Churchill has won countless awards for his innovation and expertise over the last seven years and this dinner reflected his passion for the best Scottish ingredients – naturally a haggis Scotch egg was on the menu – as well as his considerable skills as one of London’s finest chefs. Piper Major Willie Cochrane played the pipes on the night and entertained guests after the speeches with
some haunting Highland melodies. Lord Lamont related that, when negotiating Britain’s non-participation in the euro at Maastricht, he was met with hostility and condescension by his continental colleagues in government. He remembers fondly the Greek finance minister putting his arm around his shoulders, giving him a squeeze and saying, “You say you don’t believe in the euro, but when the time comes you will join.”
Dig for victory with StanChart While the government flounders around in search of any “green shoots” of a recovery, some in the City were getting down to business in a more practical manner. Standard Chartered’s head of Europe, the Middle East and Africa Richard Holmes yesterday led a gaggle of bankers over to Roehampton for a volunteering day, one of three per year the bank pays its staff to take. The team spent the day working on a new garden for the Thomas Pocklington Trust, which helps people live with
blindness, a fitting cause for a bank that has raised $44m for Seeing is Believing, a charity that fights curable conditions that cause sight loss. The Capitalist caught up with Holmes just after he’d been rotated from the “digging weeds” shift into the “sawing railroad sleepers” unit. So which is his favourite? “Hmm… sawing,” said Holmes. “The sawing is gratifying when you finally saw through a sleeper – because we don’t have a chainsaw here.” Whoever says bankers don’t work for their bread?
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THURSDAY 17 MAY 2012
NEWS
13
US trading lifts Compass Greggs proposes alternative to Strong Group to first half rise in profits pasty tax as rain dampens sales BY CITY A.M REPORTER
BY KASMIRA JEFFORD GREGGS stepped up its attack on the government’s proposals to add VAT to all hot takeaway food, warning they would make a “material impact” on sales and profits at the chain, sending shares falling four per cent yesterday. Chief executive Sam McMeikan said a change in the VAT levy would have a “disproportionate impact on the specialist bakery sector” resulting in further unemployment and high street closures. He said the company will put
forward an alternative proposal to the Treasury that would see VAT charged on all food kept deliberately hot for sale after cooking or reheated to order, or kept warm in heatretaining packaging. The chain, which sells sandwiches, bread and pastries to six million customers a week, said sales at stores open more than a year fell 1.8 per cent in the 19 weeks to May, blaming the country’ s wettest April on record for the fall. Total sales rose 4.3 per cent, boosted by new store openings and the success of wholesaling frozen
products such as sausage rolls, that it is selling through supermarket chain Iceland.
Greggs PL C 500 p
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COMPASS Group, the world’s biggest caterer, posted a 7.7 per cent rise in first half profit yesterday, as strong trading in North America and emerging markets helped dampen the impact of challenging economic conditions in Europe. The group, which provides meals for the likes of office workers, soldiers and school children, said underlying pre-tax profit for the six months to 31 March was £572m. Revenue rose 8.6 per cent to £8.6bn, up from £7.9bn for the same period in 2011. Compass said organic revenue in
Land Securities hit by weaker office demand BY KASMIRA JEFFORD LAND SECURITIES, the UK’s biggest real estate investment trust, said turmoil in the Eurozone was continuing to dampen demand for office space in central London as it reported a fall in full-year profits. Rob Noel, who replaced Francis Salway as chief executive at the beginning of May, said uncertainty in Europe had “weighed heavily on business confidence” meaning firms were reluctant to move. Land Securities, which is co-building the Walkie Talkie skyscraper at 20 Fenchurch street, is understood to be close to signing its first two tenants, insurers Markel and Kiln. Noel said eight per cent of the building was now in solicitors’ hands and it was aiming to pre-let 200,000 sq ft of the tower during the year. In the year to March 2012, the developer saw pre-tax profits fall 58 per cent to £515.7m compared with
£1,227.3m the previous year while net asset value – a key industry measure of performance – rose 4.5 per cent to 863p a share. The value of the company’s portfolio increased two per cent to £10.3bn, with London offices and retail performing the strongest. But its shopping centre portfolio struggled, as values dropped 1.5 per cent and rents declined by 1.8 per due to ailing retailers going into administration.
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its core North American region grew by seven per cent supported by growing outsourcing trends in healthcare and education sectors. Revenues grew 12.4 per cent in its emerging markets unit, helped by a strong resources sector in Australia, where it provides food, accommodation and cleaning services to mining firm Rio Tinto. “Looking forward, whilst we are not immune from the current economic difficulties in Europe, the fundamentals of the business are strong and I remain excited about the opportunities for future growth and margin progression,” chief executive Richard Cousins said.
Housebuilder Bovis expects better margins BY CITY A.M. REPORTER
Tony Pidgeley’s property company will buy the former News International headquarters
Berkeley Group pays £150m for Murdoch’s Fortress Wapping BY LAUREN DAVIDSON AND KASMIRA JEFFORD THE FORMER headquarters of News International, based in East London, has been snapped up by Berkeley Group. A source close to the deal told City A.M. that the Wapping site was sold for around £150m. Fortress Wapping, so called when Rupert Murdoch defeated unions and moved away from Fleet Street, was bought by Murdoch in the mid-1980s for £300,000. The 15-acre plot was put on sale last September after the closure of
The News of the World. News International had previously been planning to redevelop the site. The Times, The Sunday Times and The Sun have since moved to the adjacent 550,000 square feet site at Thomas More Square, owned by Land Securities. While Barratt Developments and Cooper Group expressed their interests last year, property tycoon Tony Pidgeley lodged a bid in early April and his company Berkeley has since successfully secured the bid for one of London’s largest property plots on the market.
BOVIS Homes said yesterday it expects strong profit growth this year helped by higher average sales prices and improved profit margins, and sees conditions in the UK house building market remaining stable. The company reported 783 private net reservations in the 19 weeks to 11 May, a 33 per cent increase over last year, with sales prices achieved on reservations to date modestly above management’s expectations. “The mix of homes has improved and the group expects the average sales price in the half-year results to be ahead of the comparative period of 2011,” Bovis said in a statement. Profits are expected to grow significantly, benefiting from a greater number of active sales outlets and stronger sales rates, a higher average sales price as homes in the south become a bigger part of the mix, and better margins from an increased contribution from sites acquired since the housing market downturn, Bovis said. Last week rival Barratt said it had enjoyed the best spring selling season in five years, helped by its focus on more buoyant sections of Britain’s weak property market and government initiatives to prop it up.
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THURSDAY 17 MAY 2012
US corporate results round-up Deere & Co ups oulook
Target raises forecasts
Staples disappoints
DEERE & Co posted higher quarterly earnings and sales that topped estimates, and raised its full-year profit outlook yesterday on rising global demand for farm equipment. The US farm sector is booming on higher worldwide food demand and as biofuels help drive up crop production. Companies like Deere are benefiting from record-high farm income that is spurring farmers to update their equipment. The world’s largest farm equipment maker said fiscal second-quarter net income rose to $1.056bn (£627m), or $2.61 per share, from $904.3m, or $2.12 a share, a year ago. The results topped expectations of $2.53 per share. The firm also raised its forecast for net income to $3.35bn from $3.275bn for 2012.
TARGET raised its annual forecast after posting a biggerthan-expected rise in quarterly profit yesterday despite spending more on opening stores in Canada, and having concerns about US shoppers’ ability to spend. The discount chain expects economic uncertainty to continue for the rest of 2012, chairman and chief executive Gregg Steinhafel said. Target earned $697m (£437m), or $1.04 per share, in the first quarter that ended in April, up from $689m, or 99 cents per share, a year earlier. Target said it expects sales at stores open at least a year, or same-store sales, to rise about three per cent this quarter and three per cent or a little more for the full year. Some of the firstquarter strength came from warmer weather, which spurred clothing sales.
STAPLES, the office supply chain, reported lower-thanexpected quarterly sales yesterday, hurt by weakness in markets such as Europe and Australia. The company kept its 2012 outlook. Staples said it expects full-year sales to rise in the low single-digits, with earnings per share rising in the high single-digits from $1.37 last year. First-quarter net income fell to $187.1m (£117m), or 27 cents per share, from $198.2m, or 28 cents per share, a year ago. Total sales fell marginally to $6.1bn, missing analysts’ expectations of $6.18bn. Sales at Staples’ international business, which makes up about 20 per cent of the company’s revenue, fell eight per cent, as same-store sales in Europe declined by six per cent, said the firm.
Weak sales in Europe for Abercrombie & Fitch
PA
NEWS
ABERCROMBIE & Fitch yesterday posted a sharp drop in profit pressured in part by weak sales in Europe. For the first quarter ended 28 April, Abercrombie earned $3.0m compared with $25.1m a year earlier. Same-store sales fell five per cent in the quarter.
Outsourcer Xchanging says trading is stable but a quarter of investors reject pay deal BY JAMES WATERSON
▲ ▲
THEFORUM
OUTSOURCING firm Xchanging yesterday said that trading in the first four months of the year was in line with expectations – but there were rumblings of shareholder discontent as a quarter of investors voted against the remuneration report at the firm’s AGM. Some 24.7 per cent of votes cast
JOIN THE DEBATE SEE PAGES 24-25
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were against the pay deal, which will see £1.45m shared by three directors for the year ending 2011. “We have seen a steady start to the year as we pursue our agenda of building the foundations for growth,” said CEO Ken Lever. “Our objectives in 2012 are to demonstrate that we can compete to win in our chosen markets and to achieve year-on-year improvement in financial performance.”
The firm has seen its share price grow by over 60 per cent since December but yesterday analysts at Seymour Pierce cut their rating to “sell” from “hold”, on the basis that the firm was trading at a prospective price-toearnings ratio of 11.8, which it said was “steep for a company which still has a lot to prove”. Shares in the firm closed yesterday off 2.6 per cent.
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THURSDAY 17 MAY 2012
Pearson grows testing service with Certiport PEARSON yesterday announced it has purchased Certiport, which provides testing and certification services for leading IT companies, for $140m (£87.6m) in cash from Spire Capital Partners. Pearson, which owns the world’s biggest education business as well as the Financial Times and Penguin Books, said the move would expand the product range and geographical reach of its professional testing business. US-based Certiport makes more than 60 per cent of its revenues outside North America and is particularly strong in Asia and the Middle East, in line with Pearson’s strategy of expansion in emerging markets. Its top customers include Microsoft, Adobe and Hewlett-Packard, and it has a network of 12,000 testing cen-
RICHEMONT BOSS SLAMS EUROPE AS ASIA BOOMS
Coty selects banks for planned IPO n Beauty company Coty has selected Bank of America Merrill Lynch and JPMorgan Chase & Co to be the lead underwriters for a planned initial public offering this autumn, a source close to the deal said last night. The IPO would value Coty at more than $7bn, the source said, adding that the company would file its S-1 prospectus “soon.” Coty declined to comment, as did Bank of America and JPMorgan.
Yell continues brand transition
n Yell Group, the struggling publisher of the Yellow Pages, yesterday announced the acquisition of Moonfruit, an online shop and website builder. The £18m purchase is the latest step in Yell’s efforts to rebrand itself as a digital services provider. Moonfruit.com, valued at £4.8m, has created nearly five million websites and 230,000 online shops.
tres in more than 150 countries. Pearson administers millions of tests each year for the private and public sectors in areas ranging from construction to mathematics. The business is a key driver of its professional education unit, which increased its sales by 15 per cent to £382m last year, representing an estimated seven per cent of Pearson’s group sales.
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C&C cautious on Olympic boost n Irish cider-maker C&C is uncertain
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EUROPE risks becoming little more than a tourist attraction for wealthy Chinese if it does not reform, the head of luxury goods group Richemont said yesterday as booming Asian demand helped offset weakness in Europe. “A few years ago, I said if people do not watch it Europe will become an open-air museum for travelling Chinese. Well, we are halfway there,” said Johann Rupert, as net profit for the year to 31 March rose 43 per cent to €1.54bn.
whether a sales boost from this summer's Olympics and European football championships will be enough to grow its bottom line this year, its chief executive said yesterday. C&C, which sells cider under the Magners and Bulmers brands, posted a nine per cent rise in operating profit to €111m (£88.45m) for the year to February.
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15
IN BRIEF
REUTERS
BY HARRY BANKS
NEWS
“The prestige of Imperial College means that gaining a degree from the Business School will allow me to flourish internationally.” Gunyawee Teekathananont, current Imperial College Business School student
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16
cityam.com
THURSDAY 17 MAY 2012
NEWS
BHP warns of cooling market in commodities BHP BILLITON said yesterday it expects commodity markets to cool further and that investors have lost confidence in the longer-term health of the global economy, in the most cautious comments yet from the world’s biggest miner. BHP also put the brakes on a plan announced by chief executive Marius Kloppers in 2011 to spend $80bn (£50.2bn) over five years to expand its iron ore, coal, energy and base metals divisions, banking on continuing high demand from its main market, China. “It is all about appropriate allocation of capital. When Marius (Kloppers) talked about the $80bn, the environment was different,” chairman Jacques Nasser said yesterday. “We should pause, take a deep breath and wait and see where the pieces fall around the world,” he said, stopping short of announcing a spending cut. The company was re-thinking its expansion plans “every day,” he said.
Asked if BHP would spend $80bn over five years, he replied: “No.” BHP made close to $10bn in firsthalf profit before exceptional items. That was largely due to BHP’s profitable iron ore business, a strength that it shares with its main rival, Rio Tinto, which unveiled a $3.4bn expansion of its Australian iron ore mines in February. Outside of iron ore, Nasser said plans to invest billions of dollars beefing up the company’s Olympic Dam copper and uranium mine in Australia were still subject to a board decision later this year.
BHP Bi lliton PL C 1,880 1,860 1,840 1,820 1,800 1,780 1,760 1,740 1,720
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Production soaring at Soco Soco International said yesterday that oil and gas production for the first quarter was soaring, averaging 11,690 barrels of oil equivalent per day (boepd). The total is three-and-a-half times higher than the amount produced in the same period last year. The company also said production at Te Giac Trang in Vietnam would begin ahead of schedule and ramp up to around 55,000 barrels of oil per day.
Total stops North Sea gas leak
GETTY
BY HARRY BANKS
IN BRIEF
The deal will help E.ON meet its goal of selling assets worth €15bn by the end of 2013
E.ON sells European gas grid to Macquarie-led group for £2.6bn BY CITY A.M. REPORTER E.ON, Germany’s largest utility, said yesterday it has sold its Open Grid Europe gas distribution network to a consortium led by Australian bank Macquarie for €3.2bn (£2.6bn), raising cash to pay down debt and fund expansion. The deal brings E.ON’s tally of divestments to more than €12bn, well on its way toward its goal of selling assets worth €15bn by the end of 2013 to help offset the impact of Germany’s nuclear exit. "With this deal E.ON is able to
deleverage further without the loss of high earnings,” DZ Bank analyst Hasim Senguel said, adding the price was almost a third above expectations. The consortium that won the bid comprises Macquarie’s European Infrastructure Fund 4, Infinity Investments, British Columbia Investment Management Corporation (bcIMC) and Munich Re’s asset management unit MEAG. Macquarie was advised on the deal by Macquarie Capital and the Royal Bank of Canada.
Total has succeeded in plugging a well from its North Sea Elgin platform that has been leaking gas for more than seven weeks, the French oil group said yesterday. The leak, 240km off the coast of Scotland, has been costing Total around $3m a day in relief operations and lost net income.
Interserve sees boost from Asia
Interserve said yesterday that rising demand for equipment services in Australia and Asia was helping to balance out pressure on its construction unit, combining to give a stable outlook for 2012. The company said it had won £600m of work in the year to date.
Miner NWR surprises with profit
Coal miner New World Resources (NWR) yesterday posted a more than 80 per cent rise in first-quarter net profit due to lower financial expenses, improved cost controls and a better product mix, surprising analysts who had expected a loss. Net profit rose to €6.2m (£4.9m) but revenue dropped 10 per cent year-on-year to €346.6m.
cityam.com
THURSDAY 17 MAY 2012
Samsung value drops $10bn on fear Apple has picked rival chip BY JAMES WATERSON SAMSUNG saw $10bn (£6.3bn) wiped off its market capitalisation on Tuesday following suggestions that Apple has placed a huge order for memory chips with a rival. Shares in the South Korean electronics giant tumbled 6.2 per cent after Taiwanese site DigiTimes said Apple has bought half the capacity of a DRAM chip manufacturing plant operated by bankrupt Japanese firm Elpida. SK hynix, another South Korean DRAM manufacturer, also saw its share price drop by nine per cent.
“It looks like Apple doesn’t want to see Samsung and Hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running,” said Choi Do-yeon, an analyst at LIG Investment & Securities. There is a global over-supply of DRAM chips, partly due to changes in consumer purchasing habits. PCs use around four times as many such chips as Apple’s iPad – and the tablet computer’s success has hit sales of traditional machines, reducing demand. In recent years firms such as Elpida invested heavily to increase
Perform snaps up RunningBall for up to €120m BY ELIZABETH FOURNIER SPORTS MEDIA rights group Perform said yesterday it will pay up to €120m (£93m) in cash and shares to buy sports data company RunningBall, the largest acquisition it has made since floating last year. RunningBall produces real-time data coverage of sporting events – covering more than 35,000 events last year including over 30,000 football games around the world, by using a network of 1,100 scouts who key in information live from venues. It had revenue of €16.1m and made a pre-tax profit of €7.2m for 2011, up 20 per cent and 75 per cent respectively from the previous year. The Swiss-based company is still owned and run by its founder, IT entrepreneur Hans Thomas Gross. The deal was well received by Perform’s investors yesterday, sending the company’s shares up seven per cent. Analysts at Numis also applauded the deal, which is the latest in a series of acquisitions that Perform has made in recent months.
UBS
UBS acted as the sole sponsor to Perform on the sports media rights group’s acquisition of RunningBall, having helped the group as one of three bookrunners when it floated in April 2011. Following the listing the bank was appointed as one of Perform’s house brokers in June last year. Leading the team at UBS was Christian Lesueur, head of EMEA media and telecoms investment banking. Lesueur also led UBS’ work for Perform on its float, and just last month helped long-term client
S am sung E lectronics C o L td 1.34m KRW
1,230,000.00
1.32m
16 May
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Perform Group PL C 335 p 330 325 320 315 310 305 300
BY LAUREN DAVIDSON APPLE is said to have put in orders for the production of its next iPhone offering and changed the size of the device’s screen. Sources say the fifth generation iPhone will sport a four inch screen when measured diagonally from cover to cover, compared to the current 3.5 inch display. Early production of the popular smartphone has begun at three factories – Sharp, LG Display in Korea and
SUPERHERO BOX OFFICE BOOST FOR CINEWORLD
16 May
Vodafone secure its £1bn takeover of Cable & Wireless Worldwide with colleagues Simon Warshaw and Jonathan Rowley. He was also part of the squad that advised Verizon Wireless on its $28.1bn acquisition of regional carrier Alltel Wireless back in 2009, and last year helped worldwide satellite communications services firm Vizada with its €673m sale to Astrium – the aerospace subsidiary of EADS. Lesueur worked alongside a team from UBS comprising Jonathan Retter, Massimo Marinelli and Warren Stables. Morgan Stanley was joint broker with UBS on the deal, led by Andrew Foster – part of the team that recently pitched for and won a place on Tullow Oil’s panel after it parted company with its long-standing corporate brokers, Bank of America Merrill Lynch and RBS Hoare Govett.
Japan Display – meaning proper orders could be put in by Apple as soon as next month. The Cupertino-based company was recently pipped to top spot in the smartphone stakes by Samsung, according to the IDC. The Korea-based rival launched its latest Galaxy phone earlier this month, with a 4.8 inch display. Apple has not updated the physical design of its smartphone since the release of the iPhone 4 in 2010. Sales of the iPhone now account for around half of Apple’s total sales. The latest iPhone 4S was introduced in October last year.
Sepura buys Vienna-based 3T for £6.4m BY DAVID HELLIER
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Larger four inch screens set to feature on the iPhone 5 model
“We could not have designed a better business for Perform to have acquired. Of the five key elements in digital sports, Perform already has marketleading positions in four, while RunningBall adds the fifth,” said Paul Richards at Numis. Perform will pay an initial consideration of €20m cash and €50m in new Perform shares to Runningball, plus a deferred consideration of €31m-€50m depending on 2012 results. Perform raised less than expected when it floated last April, but has been raising its profile ever since, and earlier this month said it was track to deliver forecast revenue and profits.
MEET THE ADVISERS CHRISTIAN LESUEUR
capacity but were caught off-guard when demand dropped. Samsung met 53.8 per cent of DRAM demand at the end of 2011.
NEWS
CINEWORLD said yesterday that its revenue for the 19 weeks to 10 May was up 6.3 per cent due to higher box office sales. The UK’s only listed cinema chain also said it was confident that growth for the full-year would match market estimates. Box office revenue rose 8.6 per cent, boosted by big ticket releases such as The Avengers.
SEPURA, a company involved in the design, development and supply of digital radios, yesterday announced the acquisition of Vienna-based 3T Communications. The deal will cost Sepura initial cash consideration of €8m (£6.4m) with further contingent consideration of up to €5m payable dependent on 3T achieving certain targets over an earn-out period. 3T designs and implements small to mid size radio systems predominantly for the commercial sector, including enterprise customers such as Shell, RWE, Bayer and BMW. Based in Vienna, Austria, 3T generated revenues of €12m for the year ended 31 December 2011, with adjusted Ebitda of €1.3m and profit before tax of €0.4m. 3T’s current revenue is derived primarily from Europe, giving Sepura the opportunity to generate significant incremental revenue by offering 3T’s products through the company’s comprehensive worldwide routes to market. Sepura is backed by a team of investors headed by Henderson and Michael Sherwood of Goldman Sachs. House broker Investec believes the deal is a good one for Sepura, saying: “Overall this looks like a great deal for Sepura – it’s accretive, is on-strategy, provides new market access for both parties and will increase Sepura’s earnings quality.”
Betting firm Bwin.party ahead by a nose as revenues inch up BY JAMES WATERSON BETTING giant Bwin.party yesterday reported revenues of €215.9m (£172.5m) for the first quarter, up less than one per cent on the same period last year. Shares in the firm fell by five per cent after it said growth in online casino games has been partially offset by reduced margins in sports betting. “Trading performance overall in the first quarter has been as expected,” the firm said. “Casino has continued to perform well as has our sports business that saw strong growth in both player
activity and amounts wagered, albeit at a lower margin compared with last year which was particularly strong.” The Gibraltar-based online gambling company was formed last March following a merger between sports betting firm Bwin and casino specialist Party Gaming. Investors have yet to reap the benefits of this merger but the coCEOs said they “remain on-track to realise the €65m of merger synergies” which will help to “mitigate the impact of additional gaming taxes” that are due to come into force. Bwin.party has struggled with the
licensing situation in Germany but says it is set to win a license in the state of Schleswig Holstein, valid until 2018.
Bwin. Party Digital E ntertainm ent PL c 147.50 p 145.00 142.50 140.00 137.50 135.00 132.50
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cityam.com
THURSDAY 17 MAY 2012
NEWS
BG and Ophir in new Tanzania gas discovery BRITISH gas firm BG Group and explorer Ophir Energy said yesterday they had found more gas off the coast of Tanzania, raising hopes that the East African country will become a major new gas province. The partners said that the discovery at the Mzia well will provide a substantial boost to their total estimate of how much gas they have found in Tanzania, helping prove there is volume enough to build a liquefied natural gas (LNG) export plant. “The success at Mzia-1 is a major step towards a Tanzanian LNG hub development in Block 1,” Ophir’s chief executive Nick Cooper said in a statement. Industry interest in East Africa has intensified in recent years
and the previously little-explored area is tipped to become a major natural gas producing region, exporting LNG to fast-growing energy-hungry countries in Asia. US explorer Anadarko Petroleum Corp said on Tuesday it had discovered a major new gas field off the coast of nearby Mozambique. The Mozambican fields have drawn oil major Shell to the area – it is in the process of trying to buy Britain’s Cove Energy, Anadarko’s partner in the country. BG and Ophir said they discovered the gas in a deeper geological zone than the previous finds that they’ve made in Tanzania, which added to their confidence that they would make additional finds. Mzia is the partnership’s fifth successful exploration well off the coast of Tanzania.
BY JOHN DUNNE
GETTY
BY HARRY BANKS
Tullow to step up its Guiana drill operation
The find has boosted hopes that Tanzania will become a major new gas province
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OIL explorer Tullow yesterday said it was stepping up work on its Zaedyus discovery in French Guiana. The FTSE 100 company, which has a 17 per cent stake in the project, said a drill ship would start work next month, in a trading update covering 1 January to 16 May. An appraisal will be carried out first before full scale drilling begins. Shell has a 45 per cent stake and is the operator of the field which also has Northern Petroleum and Wessex Exploration with small stakes. Tullow said it expected the company’s overall daily oil production to be in the range of 7886,000 barrels for the full year. The company said net debt stood at around $500m (£313m). It added in a statement: “Tullow is confident that, having delivered industry-leading basin-opening exploration success already this year, and with key developments progressing well, the group will deliver further significant growth in 2012.”
OIL rig maker Lamprell yesterday saw its stock plummet after it warned that it was heading for a first half loss triggered by delays in obtaining key equipment. The bleak outlook sent investors running for cover with shares diving by more than 60 per cent after the emergency announcement. The blow came two weeks after the firm’s integration and development director Scott Doak sold 200,000 shares at 363.693p while vice president Kevin Isles sold 250,000 shares at 361.70p. FTSE 250-listed Lamprell blamed global problems in getting specialised machinery for the unexpected change in outlook which raised the alarm over falling revenues. Another problem highlighted by the company was the delivery
of two windfarm vessels to a project. Lamprell downgraded its profit margin expectation for 2012 to 3.5 per cent, which it said was considerably behind its original view, but added that it expected a recovery in profit in the second half of the year as the supply issues ease. It said in a statement: “It is anticipated that the delay in revenue generation together with the additional costs will result in the group incurring a small loss.” The downbeat outlook was in contrast to positive guidance outlined by the group six weeks ago in March, when it predicted continued growth. Analyst Keith Morris at Investec said full year profits are now likely to be around $38m (£23.8m) to $40m rather than a previous forecast of $117m. Oriel Securities analyst David Round said Lamprell appeared
to be downgrading 2012 expectations by around 60 per cent and added that he was putting his “buy” recommendation under review. The Group’s net debt at 14 May was $173m – representing an increase of $71m since the end of last year. It said it had an order book of $1.5bn up until the first quarter of 2015 and that its margins would recover by 2013. Lamprell’s shares closed 56.9 per cent lower at 127p.
L am prell PL C 350 p 300
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Renewable energy output fuels SSE’s profit rise and offsets 20pc slump in retail division BY CITY A.M. REPORTER ENERGY giant SSE yesterday reported a two per cent rise in fullyear profit supported by higher renewable energy output which helped offset a drop in customer numbers and lower energy demand. The utility company’s adjusted profit for the year ended March 2012 came in at £1.34bn. It said operating profit at its wholesale business unit – which includes the production, storage and generation of energy – was
up 6.4 per cent, helped primarily by higher output of renewables from hydro and wind power. Total electricity output from all renewable resources rose 73 per cent during the year, reflecting extra generation capacity coming into operation and favourable weather conditions. But profits fell 20 per cent at the company’s retail business, which supplies electricity and gas to households and businesses, due to a dip in customer numbers as well as lower average consumption. “Higher wholesale gas prices,
falling demand for energy and a succession of winter storms presented major challenges for the wholesale, retail and networks parts of SSE,” the company said. SSE said total energy customer accounts fell by 100,000 during last year to 9.55m. Average gas use was down 19.9 per cent, while electricity consumption dropped 6.9 per cent, said SSE. SSE also warned of challenging markets in the UK and Ireland in the year ahead.
cityam.com
THURSDAY 17 MAY 2012
NEWS
World economy shows signs of improvement THE GLOBAL economic recovery is back on despite the Eurozone crisis, according to new survey data published yesterday. North America is expected to see economic growth of 2.4 per cent in the next year, according to the Ifo Institute’s world economic climate indicator, while Asia is set to return to its trend rate with GDP growth of four per cent. Expectations remain more muted in western Europe, with growth of 0.4 per cent, though respondents were less pessimistic about the outlook now than in the first quarter of 2012. The world economic climate index rose sharply from 82.4 to 95 on the quarter, close to the long-term average of 96.7. That performance is predicted to improve rapidly over the next six months – the expectations index jumped from 80.7 in the first quarter to 101.8 now. The North American climate is firmly above its 91.8 long-term aver-
age at 95.4 up from 87.9 three months ago. Asia’s climate is approaching its 90.7 average with a reading of 90.4, up from 74.6 in the first quarter. However western Europe is still far short of its 105.7 trend rate, with a reading of 99.3, though that does represent an improvement on the 74.6 recorded three months ago. As a result of the improving overall global momentum, Ifo economists expect a slight rise in long-term interest rates over the next six months. They also forecast world price inflation will hit 3.6 per cent this year, up from the 3.5 per cent forecast earlier.
W orld E conom ic S ituation and E xpectations good/ better
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IN BRIEF US booms with strong utilities
GETTY
BY TIM WALLACE
19
First time buyers rushed to buy houses, with a knock on effect up the buying chain
Stamp duty deadline stimulates surge in March mortgage loans BY TIM WALLACE MORTGAGE lending soared throughout the housing market in March, industry data showed yesterday, as the stamp duty holiday fuelled an escalation in buying. First-time buyers were exempt from stamp duty on properties worth under £250,000 until the end of the month resulting in a 74 per cent monthly rise in the number of first time buyers as they rushed to beat the deadline, according to the Council of Mortgage Lenders (CML). On the year that was a 57 per
cent rise, taking the number of first time buyers in March to 24,000. Because they are often involved in long chains of buyers, that rush led to a 25 per cent rise in the number of home movers in the month to 27,200, a 15 per cent jump on the year. However, the CML warned that this positive impact will rapidly disappear without the stimulus of the stamp duty break. “If lending follows the same pattern as after previous stamp duty concessions, we will likely see a drop in activity in the next few months,” said Paul Smee.
US industrial production posted its fastest growth in over a year last month, official figures showed yesterday, boosted by surging output at utilities and a rebound in manufacturing. Output grew 1.1 per cent in April, the Federal Reserve revealed, the most since December 2010 and more than twice the 0.4 per cent forecast by economists. The Fed also revised its estimates for prior months, saying production contracted 0.6 per cent in March and expanded 0.4 per cent in February. Previously it said production was flat for both February and March. In April manufacturing output rose 0.6 per cent, bouncing back from a 0.5 per cent decline in March.
Oz rate cut improves confidence Australian consumer confidence
increased slightly after the central bank cut interest rates at the start of the month, an influential index showed yesterday. The Westpac index rose 0.8 per cent to 95.3, from 94.5 in April. The Reserve Bank of Australia cut interest rates by 0.5 percentage points to 3.75 per cent at the start of the month, citing a need to boost demand and economic growth. Wage growth also slowed, weighing on confidence. The Australian Bureau of Statistics’ quarterly survey showed a 0.9 per cent rise from December to March in the private sector and 0.7 per cent rise in the public sector. That compares with a one per cent rise in the previous three months, and takes annual wage gains to 3.7 per cent in the public sector and 3.1 per cent in the private sector.
20
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THURSDAY 17 MAY 2012
CITYDASHBOARD CITY MOVES WHO’S SWITCHING JOBS
YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND MARKET REPORTS in association with
Edited by Tom Welsh
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The private client investment manager has announced the appointment of Justin Woolf to its intermediary sales team. He joins as an intermediary sales manager from Zurich Intermediary Group, where he was a senior broker consultant. Woolf has over 15 years’ experience in the financial services industry.
Scottish Widows Investment Partnership has appointed Ian Marsh as head of marketing. He will report to Francis Ghiloni, director of distribution and client management. Marsh joins from BlackRock, where he was managing director, head of marketing communications Europe, Middle East and Africa. He has previously held senior roles at iShares, E-ON, Sony Ericsson and Vodafone.
investment manager. She joins from Future Capital Partners and has previously held roles at Circle, the healthcare partnership, Unicorn Investments, the investment boutique, and PwC.
Saffery Champness James Hender has been appointed as partner in the accountancy firm’s London office. He will join its private wealth and estates group from Smith & Williamson, where he spent nine years advising high net worth clients.
Stanford Resourcing
Thomas Miller Investment The investment management firm has appointed John Bearman as chief investment officer. He has over 25 years of fund management experience, and was most recently chief investment officer for Santander Asset Management in the UK. He has also previously served as head of UK equities at Insight Investment.
The legal and compliance search firm has appointed David Carberry to lead its compliance practice area. Carberry joins from Hutton Consulting, the financial services executive search firm. His hire forms part of Stanford’s growth strategy into Hong Kong and Dubai.
Mercer The human resource consultancy has appointed Daniel Hibbert as principal to develop its pay and reward consulting services for the UK’s public sector. Hibbert joined the firm in March 2012 from PwC, where he held the post of director. He has over 15 years’ experience advising organisations on all aspects of reward management.
Cordea Savills Esther Lewis has been appointed as associate director of institutional business at the international property
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LONDON REPORT
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Stocks sink to lowest level of 2012 after liquidity scare weighs on FTSE
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RITAIN’s benchmark FTSE 100 index fell to its lowest closing level in more than four months yesterday, as new fears about the Greek banking system killed off a brief afternoon rally on the market. The FTSE 100 fell by 32.37 points, or 0.6 per cent, to 5,405.25 points – above a 5,400 point resistance level but still ending at its lowest close since 21 December, when the market finished at 5,389.74 points. “The bias is still to sell on rallies,” said Hartmann Capital equities and derivatives sales trader Basil Petrides. The FTSE 100 had fallen as much as 1.5 per cent to an intraday low of 5,354.00 points, before recovering during the afternoon session to trade up 0.2 per cent to an intraday high of 5,448.38 points. However, it failed to breach the 5,500 level and then fell back after Eurozone central bank sources told Reuters that the European Central Bank had stopped monetary policy operations with some Greek banks. Greece also put a senior judge in charge of an emergency government yesterday to lead it to new elections on 17 June, while bankers sought to calm public fears after the president said political chaos risked causing panic and a run on deposits. PrimeMarkets head of dealing Richard Curr said the FTSE 100 was set to trade within a range of 5,200-5,500 points, but added there was a danger of it falling to below the 5,000 points given the danger that Greece may have to quit the Eurozone. Curr said the VIX volatility index had risen above the 20 point level, indicating investors’ fears over the economic outlook and sending out signals to sell off equities in favour of less risky assets such as cash or bonds. “The VIX looks set to break out, which could signal bad news,” he said. Heavyweight mining stocks led the FTSE’s fall, as global mining leader BHP Billiton said that commodity markets could cool further. Fresnillo
was the worst-performing stock, falling 4.1 per cent, while Glencore dropped by 1.9 per cent and Polymetal International closed down 1.4 per cent. Mid-cap stock Lamprell slumped 57 per cent after the oil rig maker warned it would make a first-half loss. Aberdeen Asset Management and chemicals group Croda rose by between 3-3.5 per cent to top the FTSE’s leaderboard, after winning entry into a key MSCI index, meaning that more index tracker funds would buy up their shares. However, the worries over Greece have meant that many fund managers have continued to steer clear of European stocks, preferring the US stock market or fast-growing Asian equities due to the better economic prospects in those regions. Thurleigh Investment Managers partner Edward Allen, whose firm manages around £300m in assets, said Thurleigh had shifted one per cent of its assets out of cash and into an iShares emerging market fund, but not into European shares. “Greece has bought itself a bit more time – but not much,” he said. Across Europe as a whole shares also sank to new 2012 lows yesterday in a broad-based sell-off as concern over contagion from Greece gripped investors. The FTSEurofirst 300 index fell 0.7 per cent to 991.03, having dropped 0.7 percent on Tuesday.
F TS E 5,600
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UBS has downgraded the commodities giant from “buy” to “neutral” and lowered its target price from 475p to 400p following Glencore’s first quarter trading update. The bank said it still sees Glencore as the most dynamic company in EU mining over the next three years, but is concerned about the operational leverage of its industrial assets in an increasingly uncertain macro environment. But the Xstrata merger will be a key driver of stock in the near term.
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Numis recommends “hold” for the meat-packing business, down from “add” following Hilton’s interim management statement. Analyst Charles Pick said the trading update is generally positive and there is nothing here that should surprise. But Numis has cut Hilton’s profit estimates by about two per cent, “simply reflecting Sterling’s recent strength”, and lowered the target price from 329p to 322p.
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JP Morgan has upgraded the supermarket from “underweight” to “neutral” as it believes Morrison no longer represents a significant selling opportunity. But many of JP Morgan’s concerns remain, the most notable of which centres on Morrison’s extensive capital expenditure programme and the execution risks implicit in a plethora of new ventures – which will not meaningfully change the investment case, as Morrison remains confined to the UK for growth.
NEW YORK REPORT
Euro fears see fourth day of falls on the S&P
U
S stocks closed lower in a choppy session yesterday, with the S&P 500 logging its fourth straight decline as investors worried about Greece’s future as a member of the Eurozone. Early US gains were erased after the European Central Bank said it had stopped providing liquidity to some Greek banks that had not been recapitalised. The ECB’s move caused some market confusion, adding to volatility as traders have a quick trigger finger when it comes to news about Greece. “All eyes continue to be trained on Europe: What is going to happen in Greece, what the potential fallout from that is going to be, so there wasn't much from the Fed data to impact things,” said Stephen Massocca of Wedbush Morgan in San Francisco. Investors were not enticed by the minutes from the US Federal Reserve’s most recent meeting in which policymakers kept alive the possibility of a fresh round of monetary stimulus for the moderately expanding economy. Worries about Greece’s political and financial future, along with political upheaval in the broader Eurozone, have driven equity losses in recent weeks, sending the benchmark S&P index down 5.9 per cent since the end of March. German chancellor Angela Merkel attempted to assuage investor fears on Tuesday by saying Greece will stay in the euro. Merkel’s comments helped stem selling prior to the market open. Opinion polls in Greece show leftists who are opposed to the terms of the international bailout for the country would likely win a new election, set for 17 June. Greeks, afraid of the devaluation that would follow an exit from the euro, withdrew at least €700m euros from local banks on Monday. J.C. Penney shares plunged 19.7 per cent to $26.75, its biggest oneday percentage drop since at least 1973, a day after the department store owner scrapped its dividend. Penney’s financial results showed the effort to remake itself as an affordable fashion-oriented retail chain took a much bigger-thanexpected toll on sales in the first quarter. The Dow Jones industrial average dropped 33.45 points, or 0.26 per cent, to 12,598.55. The Standard & Poor’s 500 Index dropped 5.86 points, or 0.44 per cent, to 1,324.80. The Nasdaq Composite Index dropped 19.72 points, or 0.68 per cent, to 2,874.04. US output rose in April at its fastest pace in over a year, the Federal Reserve said. A separate report showed a rebound in groundbreaking for US homes in April, suggesting the housing market recovery was gaining.
ALL FOUR OF LONDON’S PREMIERSHIP RUGBY TEAMS, ONE SPECTACULAR DAY TWICKENHAM STADIUM 1 SEPTEMBER 2012
2 GAMES, 1 TICKET IN ASSOCIATION WITH
OFF FOR EARLY BIRDS* * Li m i t e d t i c k e t s a v a i l a b l e i n d e s i g n a t e d s e a t s o n l y . Of f e r e n d s 3 1 s t Ma y .
CALL 0844 847 2492 OR VISIT TICKETMASTER.CO.UK
22
cityam.com
THURSDAY 17 MAY 2012
MARKETS
FTSE 100
FTSE 250
FTSE ALL SHARE
DOW
NASDAQ
S&P 500
/€ 1.2515
0.0058
€/$ 1.2736
0.0002
5405.25 32.37
10675.30 47.19
2809.41 16.60
12598.55 33.45
2874.04 19.72
1324.80 5.86
/$ 1.5943
0.0057
€/£ 0.7991
0.0035
/¥ 127.00
0.3449
€/¥ 102.32
0.1484
CONSTRUCTION & MATERIALS
GILTS Tsy 9.000 12 . . . . . . .101.90 Tsy 5.250 12 . . . . . . .100.27 Tsy 2.500 13 . . . . . .283.46 Tsy 4.500 13 . . . . . . .103.32 Tsy 8.000 13 . . . . . . .110.39 Tsy 5.000 14 . . . . . . .110.64 Tsy 8.000 15 . . . . . .126.40 Tsy 4.750 15 . . . . . . .113.91 Tsy 4.000 16 . . . . . . .113.81 Tsy 2.500 16 . . . . . .346.48 Tsy 1.250 17 . . . . . . . .116.71 Tsy 8.750 17 . . . . . . .140.04 Tsy 12.000 17 . . . . . .119.25 Tsy 5.000 18 . . . . . . .122.22 Tsy 4.500 19 . . . . . . . .121.11 Tsy 3.750 19 . . . . . . .116.37 Tsy 4.750 20 . . . . . .123.93 Tsy 2.500 20 . . . . . .371.30 Tsy 8.000 21 . . . . . .153.09 Tsy 1.875 22 . . . . . . .129.68 Tsy 4.000 22 . . . . . .118.96 Tsy 2.500 24 . . . . . . .337.01 Tsy 5.000 25 . . . . . .130.80 Tsy 1.250 27 . . . . . . .125.75 Tsy 4.250 27 . . . . . .122.06 Tsy 6.000 28 . . . . . .146.75 Tsy 4.125 30 . . . . . . .319.61 Tsy 4.750 30 . . . . . .128.88 Tsy 4.250 32 . . . . . .120.93 Tsy 4.250 36 . . . . . .120.50 Tsy 4.750 38 . . . . . .129.90 Tsy 4.500 42 . . . . . .125.78
0.00 -0.02 -0.02 0.00 0.00 0.03 0.06 0.06 0.13 0.13 0.15 -0.20 0.96 0.15 0.18 0.16 0.13 0.12 0.06 0.19 0.10 0.18 0.12 0.21 0.25 0.25 0.34 0.57 0.53 0.56 0.55 0.57
109.9 104.7 287.7 106.4 116.3 112.9 129.2 115.4 114.7 346.7 117.1 141.9 127.9 122.5 121.2 116.5 124.1 372.2 155.5 130.0 119.3 338.2 131.0 127.0 122.7 148.0 322.8 130.5 123.1 123.9 134.2 130.8
100.8 100.2 282.8 103.3 110.3 100.6 125.6 111.0 108.0 325.6 110.0 135.6 117.0 113.5 109.6 103.8 111.1 331.8 139.3 114.9 103.4 289.4 111.5 107.6 101.7 123.7 272.0 107.3 100.3 99.6 107.9 104.1
AEROSPACE & DEFENCE BAE Systems . . . . . . . . .272.0 Chemring Group . . . . . .326.4 Cobham . . . . . . . . . . . . .221.3 Meggitt . . . . . . . . . . . . .388.1 QinetiQ Group . . . . . . . .144.8 Rolls-Royce Holdi . . . . .831.0 Senior . . . . . . . . . . . . . .201.4 Ultra Electronics . . . . .1644.0
-1.5 0.3 2.5 -2.5 -2.2 1.5 -0.7 12.0
340.8 677.0 239.5 413.5 159.3 859.0 213.0 1780.0
248.1 316.9 165.9 304.9 101.5 557.5 135.6 1305.0
AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .192.4 2.2 245.0 157.0
BANKS Barclays . . . . . . . . . . . . .189.1 HSBC Holdings . . . . . . .534.2 Lloyds Banking Gr . . . . .28.7 Royal Bank of Sco . . . . . .21.9 Standard Chartere . . .1364.0
3.0 277.5 138.9 -13.5 639.5 463.5 -0.2 53.7 21.8 0.5 42.6 17.3 9.5 1672.0 1169.5
BEVERAGES AG Barr . . . . . . . . . . . . .1131.0 9.0 Britvic . . . . . . . . . . . . . .356.2 -1.9 Diageo . . . . . . . . . . . . .1538.5 -14.5 SABMiller . . . . . . . . . . .2465.5 -24.5
1395.0 444.0 1614.5 2660.0
1031.0 289.9 1112.0 1979.0
338.1 2282.0 208.1 2408.0 1590.0 253.0
206.1 1597.0 107.5 1523.0 1025.0 148.0
CHEMICALS AZ Electronic Mat . . . . .295.0 Croda Internation . . . .2182.0 Elementis . . . . . . . . . . .204.2 Johnson Matthey . . . .2175.0 Victrex . . . . . . . . . . . . .1327.0 Yule Catto & Co . . . . . . .214.5
2.5 63.0 5.2 23.0 7.0 0.1
Balfour Beatty . . . . . . .264.9 CRH . . . . . . . . . . . . . . . .1101.0 Galliford Try . . . . . . . . . .612.0 Kier Group . . . . . . . . . .1156.0
6.4 -5.0 -4.5 -5.0
326.7 1578.5 653.0 1489.0
214.6 1053.0 383.8 1095.0
ELECTRICITY Drax Group . . . . . . . . . .567.5 -3.5 581.5 444.5 SSE . . . . . . . . . . . . . . . .1329.0 4.0 1423.0 1193.0
ELECTRONIC & ELECTRICAL EQ. Domino Printing S . . . .563.0 2.5 Halma . . . . . . . . . . . . . .385.1 -4.8 Laird . . . . . . . . . . . . . . . .187.5 0.3 Morgan Crucible C . . . . .274.1 1.3 Oxford Instrument . . . .1130.0 -21.0 Renishaw . . . . . . . . . . .1451.0 -16.0 Spectris . . . . . . . . . . . . .1712.0 -43.0
701.5 429.6 222.0 360.0 1285.0 1886.0 1902.0
434.3 306.3 128.5 224.0 714.0 800.0 1039.0
EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .603.0 -4.5 714.0 494.0 Alliance Trust . . . . . . . . .342.1 -0.9 392.7 310.2 Bankers Inv Trust . . . . .401.6 -0.5 433.8 346.5 BH Global Ltd. GB . . . . .1175.0 0.0 1212.0 1085.0 BH Global Ltd. US . . . . . . .11.8 0.1 12.2 10.6 BH Macro Ltd. EUR . . . . . .19.8 0.1 20.2 16.6 BH Macro Ltd. GBP . . .2045.0 -15.0 2078.0 1710.0 BH Macro Ltd. USD . . . . . .19.8 0.0 20.2 16.6 BlackRock World M . . .588.0 -3.0 782.0 571.5 BlueCrest AllBlue . . . . . .163.2 -0.1 175.3 160.5 British Assets Tr . . . . . . .118.2 -0.9 138.0 109.0 British Empire Se . . . . .402.9 0.1 533.0 392.9 Caledonia Investm . . . .1312.0 -28.0 1780.0 1310.0 City of London In . . . . . .285.1 0.3 306.9 257.0 Dexion Absolute L . . . . .136.2 -0.1 148.2 130.0 Edinburgh Dragon . . . .229.6 -1.3 253.1 201.4 Edinburgh Inv Tru . . . .480.3 4.3 504.0 422.5 Electra Private E . . . . . .1671.0 -15.0 1745.0 1287.0 Fidelity China Sp . . . . . . .75.0 -1.8 107.7 70.0 Fidelity European . . . . .1011.0 -7.0 1280.0 912.0 Foreign and Colon . . . .290.3 -0.1 327.9 261.5 Herald Inv Trust . . . . . .482.0 -4.9 545.5 419.0 HICL Infrastructu . . . . . .120.0 -0.4 123.6 112.7 John Laing Infras . . . . .106.7 0.0 110.6 103.8 JPMorgan American . .890.0 3.0 965.5 721.5 JPMorgan Asian In . . . . .180.1 -1.4 243.9 170.1 JPMorgan Emerging . . .512.0 -2.5 610.5 480.1 JPMorgan Indian I . . . . .313.2 -3.8 437.0 307.0 JPMorgan Russian . . . .482.7 -1.3 689.0 415.1 Law Debenture Cor . . . .367.0 -2.5 398.7 323.0 Mercantile Invest . . . . . .961.5 -7.5 1097.0 823.0 Merchants Trust . . . . . .366.0 5.7 431.8 341.5 Monks Inv Trust . . . . . .320.5 -1.0 357.4 298.1 Murray Income Tru . . . .626.0 -1.0 674.0 568.0 Murray Internatio . . . . .918.0 -3.0 1012.0 818.5 NB Global Floatin . . . . . .99.4 -0.4 103.0 92.5 Perpetual Income . . . .259.3 -0.8 276.0 236.5 Personal Assets T . . .33430.0 -110.0 35350.031750.0 Polar Capital Tec . . . . . .367.0 -4.4 404.0 299.5 RIT Capital Partn . . . . .1148.0 10.0 1360.0 1096.0 Scottish Inv Trus . . . . . .454.0 -1.7 524.0 417.0 Scottish Mortgage . . . .662.5 3.5 781.0 565.0 SVG Capital . . . . . . . . . .266.0 -1.7 295.5 165.1 Temple Bar Inv Tr . . . . .889.5 0.0 970.0 791.0 Templeton Emergin . . .524.5 -2.5 678.5 497.0 TR Property Inv T . . . . .146.2 -1.2 206.1 136.2 TR Property Inv T . . . . . .63.0 0.0 94.0 59.8 Witan Inv Trust . . . . . . .449.2 -3.2 533.0 401.5
FINANCIAL SERVICES 3i Group . . . . . . . . . . . . .179.6 3i Infrastructure . . . . . . .124.4 Aberdeen Asset Ma . . .255.9 Ashmore Group . . . . . .343.9 Brewin Dolphin Ho . . . .158.0
-1.0 -0.1 8.6 3.6 0.0
294.1 128.0 283.8 420.0 177.0
166.9 115.6 167.8 306.4 113.7
Camellia . . . . . . . . . . .9306.0-194.0 10950.0 8800.0 Charles Taylor . . . . . . . .140.0 3.0 160.0 115.6 City of London Gr . . . . . .72.0 0.0 86.0 61.3 City of London In . . . . .359.0 -4.3 440.0 304.3 Close Brothers Gr . . . . .695.0 3.5 812.0 590.0 F&C Asset Managem . . . .67.8 0.8 81.7 56.1 Hargreaves Lansdo . . . .501.5 7.7 640.0 402.5 Helphire Group . . . . . . . . .1.6 0.2 4.8 1.3 Henderson Group . . . . . .98.4 -0.4 163.7 95.1 Highway Capital . . . . . . .14.0 0.0 21.0 8.0 ICAP . . . . . . . . . . . . . . . .336.5 1.2 498.8 311.6 IG Group Holdings . . . .442.0 -4.0 502.5 393.6 Intermediate Capi . . . .239.9 1.9 345.0 197.9 International Per . . . . .226.2 1.8 388.8 148.5 International Pub . . . . . .117.5 -0.5 121.7 112.7 Investec . . . . . . . . . . . . .328.7 0.4 522.0 317.8 IP Group . . . . . . . . . . . .140.0 0.0 151.0 36.0 Jupiter Fund Mana . . . .209.4 0.9 293.2 184.9 Liontrust Asset M . . . . .100.5 -2.0 125.0 57.9 LMS Capital . . . . . . . . . . .60.0 0.3 64.8 54.0 London Finance & . . . . .19.5 0.0 23.5 18.0 London Stock Exch . . . .989.5 -8.0 1093.0 756.5 Lonrho . . . . . . . . . . . . . . .9.9 0.0 19.8 8.9 Man Group . . . . . . . . . . . .81.9 2.1 259.6 77.3 Paragon Group Of . . . .158.9 -4.6 206.1 134.6 Provident Financi . . . .1105.0 -55.0 1204.0 915.0 Rathbone Brothers . . .1219.0 -21.0 1351.0 977.0 Record . . . . . . . . . . . . . . .18.0 -0.1 35.5 9.8 RSM Tenon Group . . . . . . .5.9 0.2 31.5 5.6 Schroders . . . . . . . . . .1250.0 4.0 1665.0 1183.0 Schroders (Non-Vo . . .1024.0 4.0 1393.0 970.0 Tullett Prebon . . . . . . . .291.2 2.2 386.4 262.3 Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
GENERAL RETAILERS
-0.2 -0.5 -0.1 3.2 -0.7 0.7 -3.5
232.1 48.3 55.0 149.5 84.0 150.0 802.0
161.0 29.5 14.2 84.1 62.0 118.9 475.0
FOOD & DRUG RETAILERS Booker Group . . . . . . . . .75.5 Greggs . . . . . . . . . . . . . .476.4 Morrison (Wm) Sup . . .272.5 Ocado Group . . . . . . . . .115.0 Sainsbury (J) . . . . . . . .299.8 Tesco . . . . . . . . . . . . . . . .317.9
0.3 -19.6 -4.6 -1.6 -11.6 1.9
85.3 558.0 328.0 228.2 354.7 419.5
64.5 445.0 267.7 52.9 263.5 310.5
FOOD PRODUCERS Associated Britis . . . . .1205.0 Cranswick . . . . . . . . . . .819.5 Dairy Crest Group . . . . .310.5 Devro . . . . . . . . . . . . . . .302.7 Tate & Lyle . . . . . . . . . .679.0 Unilever . . . . . . . . . . .2038.0
-15.0 -6.0 3.5 2.8 -9.5 -31.0
1242.0 841.0 402.9 332.2 720.5 2189.0
977.0 588.5 290.4 232.0 544.5 1892.0
FORESTRY & PAPER Mondi . . . . . . . . . . . . . . .517.0 8.0 664.0 413.5
GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .308.5 International Pow . . . . .418.6 National Grid . . . . . . . .665.5 Pennon Group . . . . . . . .716.0 Severn Trent . . . . . . . .1674.0 United Utilities . . . . . . .624.5
0.0 -0.6 -3.5 -16.0 -21.0 -8.0
330.3 419.4 682.5 751.0 1720.0 642.0
278.8 279.4 569.0 623.5 1375.0 560.0
5.0 3.3 17.4 2.2 -21.0
747.5 438.0 393.2 183.7 1250.0
395.8 299.8 300.5 113.3 869.5
222.4 375.0 51.2 727.0 9.4 389.0 268.6 72.5 268.1 570.0 52.1 217.0 301.8 2153.0 190.0 451.6
HEALTH CARE EQUIPMETN & S. Smith & Nephew . . . . .595.0 0.5 694.0 521.0 Synergy Health . . . . . . .801.0 -8.0 981.0 793.5
HHOLD GDS & HOME CONSTR. Barratt Developme . . . .123.3 Bellway . . . . . . . . . . . . .705.0 Berkeley Group Ho . . .1231.0 Bovis Homes Group . . .446.7 Persimmon . . . . . . . . . .570.0
151.5 859.5 1414.0 518.5 706.5
5.2 9.0 26.0 3.2 22.0
67.5 540.5 1025.0 326.5 374.0
-1.5 1.1 -0.7 -12.4 -9.5 -1.6 3.3 1.7
446.3 135.0 188.1 679.0 797.5 316.1 376.0 250.7
272.0 89.8 112.1 451.1 509.0 200.9 294.0 172.0
-2.4 -0.5 -1.0 5.5 0.0 3.0 0.5 1.8 -21.0 0.0 0.0 -2.3 -1.6 -1.5
312.5 187.4 133.0 850.0 56.3 298.5 121.0 503.5 828.0 19.0 255.0 76.3 451.0 248.6
200.0 115.7 91.3 618.5 30.5 144.0 47.0 343.4 522.5 8.3 190.0 32.3 313.9 157.7
Lamprell . . . . . . . . . . . . . . . . . . .127.0 Anglo Pacific Grou . . . . . . . . . . .259.3 Essar Energy . . . . . . . . . . . . . . . .117.8 Aquarius Platinum . . . . . . . . . . .88.2 African Barrick Go . . . . . . . . . . .309.8 Bwin.party Digital . . . . . . . . . . . .131.5 Kentz Corporation . . . . . . . . . . .377.6 Provident Financia . . . . . . . . . .1105.0 SDL . . . . . . . . . . . . . . . . . . . . . . .667.0 Gem Diamonds Ltd. . . . . . . . . .216.6
-56.9 -6.8 -6.0 -6.0 -5.6 -5.3 -5.0 -4.7 -4.6 -4.5
LIFE INSURANCE Aviva . . . . . . . . . . . . . . .280.9 Legal & General G . . . . .110.5 Old Mutual . . . . . . . . . . .145.9 Phoenix Group Hol . . . .483.6 Prudential . . . . . . . . . . .700.5 Resolution Ltd. . . . . . . .203.9 St James's Place . . . . . . .317.2 Standard Life . . . . . . . . .207.2
MEDIA 4Imprint Group . . . . . . .277.6 Aegis Group . . . . . . . . . .163.7 Bloomsbury Publis . . . .107.5 British Sky Broad . . . . .697.5 Centaur Media . . . . . . . .34.8 Chime Communicati . . .152.8 Creston . . . . . . . . . . . . . .67.3 Daily Mail and Ge . . . . .413.0 Euromoney Institu . . . .735.0 Future . . . . . . . . . . . . . . . .11.0 Haynes Publishing . . . .190.0 Huntsworth . . . . . . . . . . .41.5 Informa . . . . . . . . . . . . .383.3 ITE Group . . . . . . . . . . . .212.2
MAIN CHANGES UK 350
Ophir Energy . . . . . . . . . . . . . . .580.0 Perform Group . . . . . . . . . . . . . .330.1 RPC Group . . . . . . . . . . . . . . . . .368.4 Barratt Developmen . . . . . . . . . .123.3 Persimmon . . . . . . . . . . . . . . . .570.0 Ruspetro . . . . . . . . . . . . . . . . . . .166.8 Hansteen Holdings . . . . . . . . . . .73.0 Aberdeen Asset Man . . . . . . . . .255.9 Logica . . . . . . . . . . . . . . . . . . . . . .68.7 Croda Internationa . . . . . . . . . .2182.0
12.6 7.0 5.0 4.4 4.0 3.6 3.6 3.5 3.5 3.0
Reckitt Benckiser . . . .3432.0 -11.0 3660.0 3100.0 Redrow . . . . . . . . . . . . . .117.4 -1.8 126.0 90.2 Taylor Wimpey . . . . . . . .42.9 1.0 52.8 28.7
INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . . .379.4 -3.6 Fenner . . . . . . . . . . . . .402.0 -3.7 IMI . . . . . . . . . . . . . . . . .892.5 11.5 Melrose . . . . . . . . . . . . .407.3 -0.2 Northgate . . . . . . . . . . .195.0 0.5 Rotork . . . . . . . . . . . . .2014.0 -16.0 Spirax-Sarco Engi . . . .2030.0 -20.0 Weir Group . . . . . . . . .1498.0 -23.0 Evraz . . . . . . . . . . . . . . .327.7 -0.5 Ferrexpo . . . . . . . . . . . .223.9 -7.3 Talvivaara Mining . . . . .152.2 0.9
437.1 483.7 1119.0 441.6 333.9 2260.0 2334.0 2236.0 460.5 495.3 488.2
225.6 280.0 636.5 268.0 190.0 1501.0 1649.0 1375.0 315.0 216.9 143.6
ITV . . . . . . . . . . . . . . . . . .82.4 Johnston Press . . . . . . . . .6.0 Mecom Group . . . . . . . .149.3 Moneysupermarket. . . .113.6 Pearson . . . . . . . . . . . . .1151.0 Perform Group . . . . . . .330.1 Reed Elsevier . . . . . . . .500.0 Rightmove . . . . . . . . . .1471.0 STV Group . . . . . . . . . . .105.8 Tarsus Group . . . . . . . . .158.0 Trinity Mirror . . . . . . . . . .30.0 UBM . . . . . . . . . . . . . . .546.0 UTV Media . . . . . . . . . . .130.0 Wilmington Group . . . . .95.5 WPP . . . . . . . . . . . . . . .798.0 Yell Group . . . . . . . . . . . . .3.1
INDUSTRIAL TRANSPORTATION
MINING
BBA Aviation . . . . . . . . .196.5 -1.5 222.4 156.0 Stobart Group Ltd . . . . .119.0 -3.0 149.5 112.0
African Barrick G . . . . .309.8 Anglo American . . . . .2089.5 Anglo Pacific Gro . . . . .259.3 Antofagasta . . . . . . . . .1012.0 Aquarius Platinum . . . . .88.2 Avocet Mining . . . . . . . .144.5 BHP Billiton . . . . . . . . .1750.0 Bumi . . . . . . . . . . . . . . .401.6 Centamin (DI) . . . . . . . . .62.0
NON LIFE INSURANCE
GENERAL INDUSTRIALS Cookson Group . . . . . . .643.5 Rexam . . . . . . . . . . . . . .403.1 RPC Group . . . . . . . . . . .368.4 Smith (DS) . . . . . . . . . . .148.1 Smiths Group . . . . . . .1020.0
764.5 576.0 825.0 620.0 138.1 99.2
FIXED LINE TELECOMS BT Group . . . . . . . . . . . .207.1 Cable & Wireless . . . . . .29.9 Cable & Wireless . . . . . .33.9 COLT Group SA . . . . . . . .110.9 KCOM Group . . . . . . . . . .69.4 TalkTalk Telecom . . . . . .132.7 Telecom Plus . . . . . . . .699.5
293.7 741.0 85.5 866.0 19.9 533.0 405.9 223.0 425.4 1030.0 151.4 313.8 399.9 3060.0 315.6 559.0
Brown (N.) Group . . . . .236.1 -0.4 Carpetright . . . . . . . . . .610.5 -12.0 Debenhams . . . . . . . . . . .75.1 -1.4 Dignity . . . . . . . . . . . . .845.0 -10.0 Dixons Retail . . . . . . . . . .15.1 0.3 Dunelm Group . . . . . . . .515.0 -7.0 Halfords Group . . . . . . .281.5 -1.0 Home Retail Group . . . . .81.8 0.5 Inchcape . . . . . . . . . . . .330.1 -10.0 JD Sports Fashion . . . . .765.5 -26.0 Kesa Electricals . . . . . . . .54.1 -1.9 Kingfisher . . . . . . . . . . .281.2 -3.9 Marks & Spencer G . . . .349.0 -3.9 Next . . . . . . . . . . . . . .2969.0 -16.0 Sports Direct Int . . . . . .297.6 -4.9 WH Smith . . . . . . . . . . .515.0 -4.5
-5.5 2.0 -0.6
Jardine Lloyd Tho . . . . .684.5 Lancashire Holdin . . . . .756.5 RSA Insurance Gro . . . .100.4
Admiral Group . . . . . . .1124.0 Amlin . . . . . . . . . . . . . . .318.0 Beazley . . . . . . . . . . . . .138.2 Catlin Group Ltd. . . . . . .414.7 Hiscox Ltd. . . . . . . . . . .380.6
-3.0 5.0 0.1 -0.3 2.8
1748.0 426.4 151.8 449.0 424.7
787.0 270.6 109.6 337.0 340.5
-0.5 -0.1 -2.5 -1.1 -1.0 21.6 -0.5 -8.0 -2.3 1.8 -3.8 -4.0 0.0 -1.0 -5.5 -0.1 -18.4 4.0 -18.8 9.0 -5.6 1.0 -16.0 -17.4 -2.0
89.9 7.9 271.8 135.9 1255.0 334.9 578.0 1600.0 146.0 165.0 54.3 641.5 159.5 147.0 880.0 11.0 616.5 3181.0 340.0 1491.0 343.0 286.8 2521.5 1158.0 141.5
51.7 4.1 134.5 93.4 1038.0 150.0 461.3 1036.0 76.3 119.5 30.0 416.0 92.5 78.5 578.0 3.1 303.4 2013.5 237.9 900.5 86.1 137.3 1667.0 401.6 60.0
Eurasian Natural . . . . . .482.1 0.8 855.5 463.1 Fresnillo . . . . . . . . . . . .1323.0 -57.0 2150.0 1302.0 Gem Diamonds Ltd. . . .216.6 -10.1 310.6 179.8 Glencore Internat . . . . .363.2 -7.0 531.1 348.0 Hochschild Mining . . . . .417.3 -1.7 549.5 365.9 Kazakhmys . . . . . . . . . . .711.5 4.5 1405.0 677.0 Kenmare Resources . . . .44.1 0.1 61.5 31.0 Lonmin . . . . . . . . . . . . .794.0 -11.0 1600.0 770.5 New World Resourc . . .341.0 9.6 1035.0 327.0 Petra Diamonds Lt . . . .132.6 -0.4 188.2 97.0 Petropavlovsk . . . . . . .399.5 9.0 913.0 363.7 Polymetal Interna . . . . .797.5 -11.0 1175.0 751.0 Randgold Resource . .4640.0 44.0 7565.0 4480.0 Rio Tinto . . . . . . . . . . .2910.5 -43.0 4595.0 2712.5 Vedanta Resources . . .1026.0 13.0 2169.0 928.0 Xstrata . . . . . . . . . . . . .985.8 -13.2 1425.5 764.0
MOBILE TELECOMS Inmarsat . . . . . . . . . . . .404.0 -17.4 611.0 389.3 Vodafone Group . . . . . .167.9 -2.6 182.7 155.1
NON EQUITY INVESTM. COMM. Genesis Emerging . . . .474.5 -3.7 543.5 424.0
OIL & GAS PRODUCERS -3.3 -4.5 -0.8 -6.2 -4.8 -7.5 1.8 -0.5 65.0 -0.1 5.0 2.5 5.8 -6.1 1.7 0.0
171.0 1547.0 504.6 501.4 135.2 455.9 455.0 262.1 586.0 485.0 2402.0 2489.0 230.0 235.8 397.5 1601.0
73.6 1144.0 363.2 289.4 85.7 101.6 102.2 118.1 184.5 310.0 1883.5 1890.5 125.0 148.0 254.9 945.5
Amec . . . . . . . . . . . . . . .987.5 -13.5 Hunting . . . . . . . . . . . . .774.5 -8.0 Kentz Corporation . . . . .377.6 -20.0 Lamprell . . . . . . . . . . . . .127.0 -167.8 Petrofac Ltd. . . . . . . . .1539.0 -21.0 Wood Group (John) . . .734.5 -5.0
1187.0 968.0 508.0 395.2 1772.0 798.0
740.5 530.0 375.0 92.0 1108.0 469.9
Afren . . . . . . . . . . . . . . .116.8 BG Group . . . . . . . . . . .1270.0 BP . . . . . . . . . . . . . . . . .399.7 Cairn Energy . . . . . . . . .291.5 EnQuest . . . . . . . . . . . . .118.0 Essar Energy . . . . . . . . .117.8 Exillon Energy . . . . . . . .107.8 Heritage Oil . . . . . . . . . .122.5 Ophir Energy . . . . . . . .580.0 Premier Oil . . . . . . . . . .329.2 Royal Dutch Shell . . . .2006.5 Royal Dutch Shell . . . .2078.0 Ruspetro . . . . . . . . . . . .166.8 Salamander Energy . . . .162.1 Soco Internationa . . . . .266.5 Tullow Oil . . . . . . . . . . .1391.0
OIL EQUIPMENT & SERVICES
PERSONAL GOODS Burberry Group . . . . . .1439.0 1.0 1600.0 1092.0 PZ Cussons . . . . . . . . . . .331.9 -6.3 387.9 285.0 Supergroup . . . . . . . . . .331.6 1.6 1165.0 307.0
PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .2634.5 BTG . . . . . . . . . . . . . . . . .371.9 Genus . . . . . . . . . . . . . .1291.0 GlaxoSmithKline . . . . .1421.5 Hikma Pharmaceuti . . .613.5 Shire Plc . . . . . . . . . . . .1977.0
2543.5 236.8 853.5 1205.0 555.5 1818.0
-17.0 -1.2 6.0 -2.0 1.0 -16.0
3194.0 387.7 1457.0 1497.0 869.0 2300.0
-0.7 11.0 -0.6 -0.2 -2.3 -4.9 0.0
203.7 158.1 3300.0 2282.0 107.9 92.6 133.2 77.3 140.0 103.5 427.1 256.2 85.5 65.1
REAL ESTATE INVEST. & SERV. Capital & Countie . . . . . .192.3 Daejan Holdings . . . .3095.0 F&C Commercial Pr . . . .103.0 Grainger . . . . . . . . . . . . .95.8 London & Stamford . . .104.6 Savills . . . . . . . . . . . . . .339.0 UK Commercial Pro . . . . .73.3
REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .289.9 -3.1 344.4 218.0 British Land Co . . . . . . .502.0 4.8 629.5 444.0 Capital Shopping . . . . .311.4 1.6 408.6 288.7
Derwent London . . . . .1762.0 Great Portland Es . . . . .379.0 Hammerson . . . . . . . . .426.0 Hansteen Holdings . . . . .73.0 Land Securities G . . . . .735.5 SEGRO . . . . . . . . . . . . . . .217.1 Shaftesbury . . . . . . . . .529.0
-14.0 1880.0 1400.0 9.0 445.0 312.9 4.0 490.9 345.2 2.5 89.5 68.0 1.0 885.0 612.0 -0.5 326.1 195.0 7.0 539.0 441.2
SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . . .1550.0 -17.0 Computacenter . . . . . .386.8 -1.1 Fidessa Group . . . . . . .1464.0 -24.0 Invensys . . . . . . . . . . . .204.6 0.6 Logica . . . . . . . . . . . . . . .68.7 2.3 Micro Focus Inter . . . . . .450.1 -1.7 Misys . . . . . . . . . . . . . . .349.0 0.1 Sage Group . . . . . . . . . .253.3 -6.7 SDL . . . . . . . . . . . . . . . .667.0 -32.0 Telecity Group . . . . . . . .784.0 -7.5
1799.0 1298.0 490.0 324.7 2109.0 1444.0 333.9 180.9 142.2 59.0 476.7 242.9 420.2 214.9 312.4 231.7 756.0 586.0 816.0 450.5
SUPPORT SERVICES Aggreko . . . . . . . . . . . .2121.0 -54.0 Ashtead Group . . . . . . .228.0 -4.5 Atkins (WS) . . . . . . . . . .674.0 1.5 Babcock Internati . . . . .848.0 -20.5 Berendsen . . . . . . . . . . .474.5 4.0 Bunzl . . . . . . . . . . . . . .1019.0 5.0 Cape . . . . . . . . . . . . . . . .331.9 -2.7 Capita . . . . . . . . . . . . . .640.0 -5.5 Carillion . . . . . . . . . . . . .268.5 -11.0 De La Rue . . . . . . . . . .1004.0 -13.0 Diploma . . . . . . . . . . . . .453.1 4.0 Electrocomponents . . . .211.9 0.1 Experian . . . . . . . . . . . .890.0 -4.0 Filtrona PLC . . . . . . . . . .463.0 -0.2 G4S . . . . . . . . . . . . . . . . .277.8 2.6 Hays . . . . . . . . . . . . . . . .75.3 -0.8 Homeserve . . . . . . . . . .235.8 -3.4 Howden Joinery Gr . . . .114.4 0.8 Interserve . . . . . . . . . . .276.0 -1.3 Intertek Group . . . . . .2486.0 0.0 Michael Page Inte . . . . .358.1 0.4 Mitie Group . . . . . . . . . .279.1 -3.9 PayPoint . . . . . . . . . . . .630.0 -7.0 Premier Farnell . . . . . . .185.1 -1.6 Regus . . . . . . . . . . . . . . .92.5 -1.6 Rentokil Initial . . . . . . . .82.6 0.8 RPS Group . . . . . . . . . .209.5 -4.2 Serco Group . . . . . . . . .529.5 2.5 Shanks Group . . . . . . . . .82.8 -2.2 SIG . . . . . . . . . . . . . . . . . .93.7 -0.9 Travis Perkins . . . . . . . .958.0 7.5 Wolseley . . . . . . . . . . .2212.0 -39.0
2316.0 1522.0 271.1 99.4 820.0 490.2 872.5 570.5 568.0 402.7 1063.0 676.5 591.5 295.0 767.0 611.5 395.7 262.0 1024.0 730.0 460.5 284.0 294.9 182.2 998.0 665.0 484.5 296.3 292.1 219.9 113.5 58.9 531.5 214.7 130.8 93.1 341.3 270.1 2605.0 1744.0 552.5 323.0 296.7 208.0 670.0 451.0 301.0 144.5 117.5 64.0 98.7 58.2 253.0 156.6 597.5 458.0 130.9 82.1 153.5 77.0 1125.0 715.0 2558.0 1404.0
TECHNOLOGY HARDW. & EQUIP. ARM Holdings . . . . . . . .487.0 CSR . . . . . . . . . . . . . . . . .216.2 Imagination Techn . . . .582.5 Spirent Communica . . . .156.1
-0.3 -1.3 2.0 -3.4
645.0 375.1 717.0 174.0
464.0 154.1 296.9 105.8
TOBACCO British American . . . .3064.0 -51.5 3248.5 2592.0 Imperial Tobacco . . . .2471.0 -29.0 2591.0 1974.0
Ladbrokes . . . . . . . . . . .166.8 Marston's . . . . . . . . . . . .94.4 Millennium & Copt . . . .483.6 Mitchells & Butle . . . . . .246.8 National Express . . . . .200.3 Rank Group . . . . . . . . . .125.0 Restaurant Group . . . . .277.0 Spirit Pub Compan . . . . .54.3 Stagecoach Group . . . .236.4 TUI Travel . . . . . . . . . . . .176.2 Wetherspoon (J.D. . . . .375.4 Whitbread . . . . . . . . . .1847.0 William Hill . . . . . . . . . .269.0
0.9 181.4 114.0 -0.9 110.3 84.6 -1.0 526.5 371.2 -3.1 336.4 215.6 -1.6 266.0 197.4 2.9 153.7 109.5 1.1 309.7 254.9 -1.0 62.8 35.3 -1.8 287.4 220.0 3.1 243.8 136.7 1.9 454.2 366.9 -12.0 2006.0 1409.0 3.2 281.7 183.3
AIM 50 Abcam . . . . . . . . . . . . .384.0 4.0 Advanced Medical . . . . .74.5 3.8 Albemarle & Bond . . . .307.0 -6.0 Amerisur Resource . . . . .19.8 -2.5 Andes Energia . . . . . . . .38.3 -0.5 Andor Technology . . . .536.5 -3.5 Archipelago Resou . . . . .57.0 -0.5 ASOS . . . . . . . . . . . . . .1560.0 -33.0 Aurelian Oil & Ga . . . . . . .19.0 0.5 Avanti Communicat . . .302.5 -6.8 Blinkx . . . . . . . . . . . . . . .45.5 2.8 Borders & Souther . . . . .75.0 -1.0 BowLeven . . . . . . . . . . . .69.0 0.8 Brooks Macdonald . . .1340.0 0.0 Cluff Gold . . . . . . . . . . . .65.0 -2.8 Cove Energy . . . . . . . . .227.0 -1.0 Daisy Group . . . . . . . . . .86.0 -6.0 EMIS Group . . . . . . . . . .537.5 -2.5 Faroe Petroleum . . . . . .161.5 -2.0 Gulfsands Petrole . . . . .108.0 -5.0 GW Pharmaceutical . . . .82.5 -1.0 H&T Group . . . . . . . . . . .285.8 -3.3 Hargreaves Servic . . . .1155.0 -35.0 Healthcare Locums . . . . . .3.3 0.1 Impellam Group . . . . . .362.5 0.0 Iomart Group . . . . . . . .126.5 -2.8 James Halstead . . . . . .520.0 -10.0 London Mining . . . . . . .256.5 -7.0 Lupus Capital . . . . . . . . .127.0 -2.0 M. P. Evans Group . . . . .494.0 -7.0 Majestic Wine . . . . . . . .407.5 -17.5 May Gurney Integr . . . .232.0 -1.8 Monitise . . . . . . . . . . . . .30.3 0.0 Mulberry Group . . . . .2198.0 -22.0 Nanoco Group . . . . . . . .62.8 2.0 Nautical Petroleu . . . . .280.3 -4.0 Nichols . . . . . . . . . . . . . .707.0 5.5 Numis Corporation . . . . .90.3 -0.8 Pan African Resou . . . . . .14.5 -0.5 Patagonia Gold . . . . . . .22.0 -0.8 Prezzo . . . . . . . . . . . . . . .70.0 1.0 Rockhopper Explor . . . .283.3 -13.0 RWS Holdings . . . . . . .500.0 0.0 Secure Trust Bank . . . .1055.0 0.0 Sirius Minerals . . . . . . . . .16.3 0.0 Songbird Estates . . . . . .110.0 1.0 Valiant Petroleum . . . .500.0 -10.5 Young & Co's Brew . . . .620.0 7.5
460.0 320.0 95.0 64.8 400.1 304.0 29.0 9.5 82.8 17.5 685.0 471.8 79.0 54.8 2468.0 1142.0 71.0 16.0 436.5 241.3 158.0 41.3 131.0 43.5 342.3 62.0 1372.5 940.0 112.8 63.0 242.0 61.0 127.0 82.0 583.0 397.5 177.8 130.0 271.5 105.5 130.0 78.5 395.0 285.5 1264.0 855.0 3.5 3.1 382.6 225.0 151.0 86.1 535.8 410.3 405.0 256.5 137.0 86.0 525.0 371.0 510.0 315.0 302.0 228.3 40.0 25.5 2472.0 1290.0 88.0 38.0 379.0 223.5 732.0 505.0 119.6 72.0 18.3 9.6 70.0 22.0 71.5 53.5 393.5 141.0 560.0 389.0 1077.5 755.0 32.0 6.4 160.3 103.0 628.5 400.0 712.0 580.0
TRAVEL & LEISURE Betfair Group . . . . . . . .775.0 Bwin.party Digita . . . . . .131.5 Carnival . . . . . . . . . . .2029.0 Compass Group . . . . . .627.0 Domino's Pizza UK . . . .448.5 easyJet . . . . . . . . . . . . .509.5 FirstGroup . . . . . . . . . . .197.6 Go-Ahead Group . . . . .1124.0 Greene King . . . . . . . . . .487.1 InterContinental . . . . .1478.0 International Con . . . . .152.7
-4.0 -7.3 -5.0 2.5 10.5 -5.0 -0.7 11.0 -1.2 1.0 2.8
901.0 174.0 2575.0 671.0 526.0 534.0 370.2 1598.0 527.5 1532.0 258.7
567.0 100.6 1742.0 512.5 377.0 302.5 190.0 1085.0 410.0 955.0 132.0
US SHARES
EU SHARES
AIR LIQUIDE .....................................................94.40 ALLIANZ............................................................76.29 ANHEUS-BUSCH INBEV....................................55.00 ARCELORMITTAL.................................................11.62 AXA....................................................................9.50 BANCO SANTANDER ...........................................4.52 BASF SE.............................................................57.34 BAYER ...............................................................51.29 BBVA..................................................................4.90 BMW ................................................................66.53 BNP PARIBAS ...................................................26.53 CARREFOUR.......................................................13.91 CRH PLC.............................................................13.78 DAIMLER............................................................38.15 DANONE ...........................................................52.45 DEUTSCHE BANK..............................................29.06 DEUTSCHE BOERSE...........................................45.92 DEUTSCHE TELEKOM ...........................................8.76 E.ON...................................................................15.14 ENEL...................................................................2.35 ENI......................................................................16.11 FRANCE TELECOM ...............................................9.98 GDF SUEZ...........................................................16.17 GENERALI ASS....................................................8.89 IBERDROLA.........................................................3.30 INDITEX ............................................................67.60 ING GROEP CVA..................................................4.83 INTESA SANPAOLO..............................................1.00 KON.PHILIPS ELECTR .........................................14.82 L'OREAL............................................................92.55 LVMH ..............................................................123.00 MUNICH RE......................................................103.55 NOKIA ................................................................2.24 REPSOL YPF ......................................................13.44 RWE.................................................................30.52 SAINT-GOBAIN .................................................29.62 SANOFI.............................................................54.05 SAP...................................................................47.84 SCHNEIDER ELECTRIC........................................42.74 SIEMENS...........................................................66.44 SOCIETE GENERALE...........................................16.05 TELECOM ITALIA..................................................0.78 TELEFONICA ......................................................10.65 TOTAL................................................................34.92 UNIBAIL-RODAMCO SE.....................................133.70 UNICREDIT..........................................................2.54 UNILEVER CVA..................................................25.62 VINCI ................................................................32.86 VIVENDI.............................................................13.01 VOLKSWAGEN VORZ........................................132.20
1.23 -0.30 -0.21 -0.28 0.20 -0.08 0.05 0.11 -0.02 0.36 -0.31 0.10 -0.12 0.22 -0.43 -0.32 0.72 -0.08 -0.16 -0.01 -0.07 -0.04 -0.12 -0.14 -0.03 -1.34 0.02 0.02 0.16 0.00 0.65 0.65 -0.03 -0.18 -0.17 -0.02 -0.46 -0.29 0.52 -0.11 0.26 -0.00 -0.03 0.56 1.25 0.01 -0.38 -0.51 0.33 -1.55
102.30 101.05 57.51 24.77 15.94 7.65 69.80 59.01 8.06 73.95 54.98 27.35 16.93 53.95 54.96 43.35 57.68 10.94 21.03 4.82 18.72 15.96 26.60 15.96 5.88 74.73 8.87 2.01 20.65 94.80 136.80 118.35 6.15 24.35 43.33 46.44 59.56 54.85 58.85 96.19 43.06 1.00 17.09 42.97 162.95 11.24 27.16 44.98 19.14 152.20
80.90 56.16 33.85 10.47 7.88 4.48 42.19 35.36 4.80 43.49 22.72 13.51 10.28 29.02 41.92 20.79 35.65 7.88 12.50 2.31 11.83 9.86 15.81 8.78 3.26 52.20 4.21 0.85 12.01 68.83 94.16 77.80 2.20 12.98 21.15 26.07 42.85 32.88 35.00 62.13 14.32 0.70 10.48 29.40 123.30 2.20 20.96 28.46 12.02 86.40
3M ....................................................................85.35 ABBOTT LABS...................................................62.55 ALCOA................................................................8.49 ALTRIA GROUP..................................................31.86 AMAZON.COM ................................................224.06 AMERICAN EXPRESS .........................................57.39 APPLE............................................................546.08 AT&T..................................................................33.19 BANK OF AMERICA...............................................7.11 BOEING CO........................................................72.35 BRISTOL MYERS SQUI .......................................33.02 CATERPILLAR....................................................91.86 CHEVRON........................................................100.10 CISCO SYSTEMS.................................................16.69 CITIGROUP .......................................................26.92 COCA-COLA.......................................................76.33 COMCAST CLASS A............................................28.85 CONOCOPHILLIPS..............................................52.32 CVS/CAREMARK................................................45.16 DU PONT(EI) DE NMR.......................................49.85 EXXON MOBIL....................................................82.17 GENERAL ELECTRIC...........................................19.00 GOOGLE A ......................................................628.93 HEWLETT PACKARD..........................................22.03 HOME DEPOT....................................................48.77 IBM .................................................................199.73 INTEL CORP......................................................26.50 J.P.MORGAN CHASE..........................................35.46 JOHNSON & JOHNSON ......................................63.71 KRAFT FOODS A................................................38.61 MC DONALD'S CORP..........................................91.43 MERCK AND CO. NEW.......................................38.23 MICROSOFT......................................................29.90 OCCID. PETROLEUM ..........................................79.23 ORACLE CORP...................................................26.72 PEPSICO ...........................................................68.75 PFIZER .............................................................22.64 PHILIP MORRIS INTL.........................................85.24 PROCTER AND GAMBLE ...................................64.29 QUALCOMM INC..................................................59.11 SCHLUMBERGER ...............................................64.81 TRAVELERS CIES................................................63.61 UNITED TECHNOLOGIE ......................................74.70 UNITEDHEALTH GROUP....................................54.90 US BANCORP DELAWRE....................................31.06 VERIZON COMMS..............................................40.88 VISA CL A .........................................................117.53 WAL-MART STORES...........................................59.19 WALT DISNEY CO..............................................45.08 WELLS FARGO & CO...........................................31.97
-0.43 0.66 -0.22 0.11 -0.33 -0.55 -7.10 -0.16 -0.19 -0.23 0.04 -0.82 -0.80 0.15 -0.87 -0.24 0.00 -0.21 -0.16 -0.30 0.38 0.60 17.82 -0.37 0.10 0.69 -0.39 -0.78 0.10 -0.21 0.42 0.49 -0.31 -0.67 -0.34 0.90 0.34 0.52 0.57 -2.33 -0.71 -0.54 -1.47 -0.04 -0.24 -0.17 0.92 -0.16 0.07 -0.27
98.19 63.20 17.29 32.62 246.71 61.42 644.00 33.92 12.21 80.09 35.44 116.95 112.28 21.30 43.06 77.82 30.88 80.13 46.22 57.50 87.94 21.00 670.25 40.86 52.88 210.69 29.27 46.49 68.05 39.99 102.22 39.50 32.95 109.08 35.92 71.89 23.30 91.05 67.95 68.87 95.53 65.27 91.83 59.71 32.98 41.43 125.35 62.63 45.80 34.59
68.63 46.29 8.45 23.20 166.97 41.30 310.50 27.29 4.92 56.01 20.05 67.54 86.68 13.30 21.40 63.34 19.19 52.13 31.30 37.10 63.47 14.02 473.02 19.92 28.13 157.13 19.16 27.85 55.76 24.30 80.00 29.47 23.65 66.36 24.72 58.50 16.63 60.45 56.57 45.98 54.79 45.97 66.87 41.27 20.10 32.28 73.11 48.31 28.19 22.58
WORLD INDICES FTSE 100. . . . . . . . . . . . . . . . . . . . . 5405.25 FTSE 250 INDEX . . . . . . . . . . . . . . 10675.30 FTSE UK ALL SHARE . . . . . . . . . . . . 2809.41 FTSE AIM ALL SH . . . . . . . . . . . . . . . . 707.43 DOW JONES INDUS 30 . . . . . . . . . 12598.55
-32.37 -47.19 -16.60 -9.88 -33.45
-0.60 -0.44 -0.59 -1.38 -0.26
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1324.80 -5.86 NASDAQ COMPOSITE . . . . . . . . . . . 2874.04 -19.72 FTSEUROFIRST 300 . . . . . . . . . . . . . . 992.81 -4.89 NIKKEI 225. . . . . . . . . . . . . . . . . . . . 8801.17 -99.57 DAX 30 PERFORMANCE . . . . . . . . . 6384.26 -16.80
-0.44 -0.68 -0.49 -1.12 -0.26
COMMODITIES LON GD ONCE FIX AM...................................1537.50 -21.50 -0.51 SILVER LDN FIX AM .........................................27.54 0.06 MAPLE LEAF 1 OZ............................................30.04 LON PLATINUM AM .....................................1426.00 -20.00 -5.00 LON PALLADIUM AM.....................................593.00 ALUMINIUM CASH.......................................1978.50 -25.00 COPPER CASH.............................................7853.00 -126.00 LEAD CASH.................................................2016.00 -10.00 5.00 NICKEL CASH............................................16980.00
TIN CASH..................................................20100.00 -150.00 ZINC CASH....................................................1917.50 -2.00 1.12 BRENT SPOT INDEX.........................................112.14 SOYA............................................................1413.00 26.00 COCOA........................................................2268.00 -53.00 -0.35 COFFEE ..........................................................177.05 -4.10 KRUG...........................................................1612.90 1.13 WHEAT ..........................................................172.75
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3048.67 SHANGHAI SE INDEX. . . . . . . . . . . . 2346.19 HANG SENG. . . . . . . . . . . . . . . . . . 19259.83 S&P/ASX 20 INDEX. . . . . . . . . . . . . 2509.80 ASX ALL ORDINARIES . . . . . . . . . . . 4214.70
9.40 -28.65 -634.48 -60.70 -101.60
0.31 -1.21 -3.19 -2.36 -2.35
BOVESPA SAO PAOLO . . . . . . . . . . 55887.57 -350.40 ISEQ OVERALL INDEX . . . . . . . . . . . 3084.48 -0.26 STRAITS TIMES. . . . . . . . . . . . . . . . . 2912.39 -19.59 IGBM . . . . . . . . . . . . . . . . . . . . . . . . 669.36 -8.56 7.57 SWISS MARKET INDEX . . . . . . . . . . 5872.73
-0.62 -0.01 -0.67 -1.26 0.13
CREDIT & RATES BoE IR Overnight.........................................0.500 BoE IR 7 days..............................................0.500 BoE IR 1 month...........................................0.500 BoE IR 3 months.........................................0.500 BoE IR 6 months ........................................0.500 LIBOR Euro - overnight................................0.253 LIBOR Euro - 12 months ...............................1.256 LIBOR USD - overnight .................................0.155 LIBOR USD - 12 months................................1.067 Halifax mortgage rate ................................3.990
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 -0.02
Euro Base Rate.............................................1.500 Finance house base rate .............................1.500 US Fed funds...............................................0.250 US long bond yield......................................2.930 European repo rate......................................0.134 Euro Euribor.................................................0.318 The vix index................................................21.88 The baltic dry index....................................1130.0 Markit iBoxx...............................................246.33 Markit iTraxx...............................................173.59
0.00 0.00 0.00 -0.01 0.00 0.00 -0.09 -2.00 0.82 4.45
cityam.com
THURSDAY 17 MAY 2012
23
CITYAMCAREERS.com
@cityamcareers
It’s a rewarding, demanding career choice for the right people, writes Tom Welsh
Potential interim managers CITYAMCAREERS.com face a necessary dilemma TODAY ON
A
CCORDING to the Interim Management Association (IMA), the UK has the most established interim management sector in the world, worth £1.5bn per year. Established and growing – business generated by interims affiliated to the IMA increased by 93 per cent in the last five years, to £196m. Interim managers are executives with superb records of achievement, and firms in all sectors hire them on short-term contracts to solve specific problems, manage change or resolve crises. Interim positions are also attractive for executives. Raj Tulsiani, chief executive of Green Park Interim and Executive Search, says the “marketplace starts at around £600 per day and goes up to around £3,000 per day at the most senior levels.” Money is not all. The character of the work gives interims professional challenge, variety, flexibility, and a break from corporate politics. So what is the dilemma?
SHIFTING SANDS
Despite being a strong sector, a step into interim management as a career can be fraught with risk, often unlinked to general employability. Tulsiani highlights
two ways individuals can be affected. Firstly, “unlike permanent roles, interim managers are priced against fluctuating market rates.” Even if your experience is excellent and your ability good, you’ll always be more exposed than permanent employees to market changes. Secondly, as interims work on short-term contracts, the length of time between assignments can be long if demand is low. Tulsiani has recently seen “the longest periods of time between assignments in my 15 years’ experience of the market.” Interims must therefore be content with uncertainty. However, Nigel Peters, managing director at Alium Partners, a specialist provider of interim solutions, suggests that this isn’t a reason to avoid the career. Uncertainty is the other side to “seeking a different challenge” and risk a counterpoint to “preference for a flexible contracting environment.” Interims aren’t holding down cosy jobs for life, but risk is a holistic part the job’s character – and often part of the attraction.
and adapt themselves to employers’ needs. And the challenges involved are quite different from applying for a permanent role. Interims are effectively small businesses, with all the pressures this involves. They can, however, get assistance. The Interim Management Association is the professional body for the sector. It runs a series of monthly induction workshops which, according to its chairman Jason Atkinson, “are designed to help people decide if interim management is right for them and, if so, how to approach the market.” The workshops flow from a commitment by the IMA to launch a new industry standard. And being associated with this standard, through a connection with an IMA-approved recruiter, can provide extra credibility to any interim business case. Using a dedicated recruiter is essential. Interims gain a professional reputation through their successful completion of previous assignments, and it is important that those assignments suit the ability and career ambition of the interim. Failure, or walking away from a task, can indelibly mar the interim’s ability to find another position. A recruiter who understands what you want, and what you can realistically achieve, can reduce the risk of permanent credibility damage.
CREATING CERTAINTY
All this means that interim managers must work hard to differentiate, market
GETTY
CAN I ENTER, CAN I LEAVE?
Interims must be content to solve a problem and depart, without applause
By the nature of the role, interims must be capable of completing a specific task for a business, but demand for expertise changes. Not all knowledge is equally useful, and some problems can be more effectively solved in-house. As such, a potential interim should work out whether his or her skills are of use. Peters says that highly-regulated areas of finance often require interim solutions, and there is a specific need for those with the professional expertise to drive through complex regulatory change. Also, Tulsiani says that “premiums exist for business transformation leaders, and those who can create cost savings through smart sourcing and capital management.” Deciding whether to enter the interim market, therefore, should be a dilemma. It is not an easy career choice, the risks and difficulties involved are considerable, and the lack of an permanent, supportive structure around your role may be hard to accommodate. But for those with experience, ability, and a stomach for risk, a career in interim management could be an interesting alternative to the corporate structure. Just make sure you’re ready.
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JOBS ofthe WEEK INTERIM TRANSITION MANAGER CENTRAL LONDON
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STRATEGIC CHANGE PLANNER CENTRAL LONDON
An international human resources firm requires an experienced project manager to join its learning and development team. Candidates must have operated in a complex matrix environment.
A private banker is required at the Dubai office of a leading private bank. The job offers excellent career development. Candidates should have a strong Middle East client base.
A leading bank is looking to bring an experienced tax professional in to support the business through a time of change. The role has potential to go permanent.
A new role has opened up in an investment bank to lead a team of five voice engineers. Candidates should have extensive skills and experience of Cisco Call Manager.
A leading investment bank is looking to implement and be compliant with Fatca regulations. It requires a candidate with experience driving regulatory projects from beginning to end.
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THURSDAY 17 MAY 2012
24
THEFORUM
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London must resist its critics and adapt to survive the financial crisis L
ONDON’S great success over many centuries has stemmed from its adaptability. It has attracted talent and money from around the world. It has been outward-looking, sending argosies to the Levant, trading with an empire and more recently acting as the world’s favourite financial centre. Like all such success stories in the UK, it attracts its critics. Current jealousy of London’s success is directed to the rich people who dare to come and live in the centre, and to the banks that are part of the concentration of finance in the City and at Canary Wharf. Where other countries would be proud to create a mighty centre of world commerce, in the UK it has its detractors who want to pull it down. The present attacks on bankers seem to think bad banking and London are synonymous. I have no more time for a bank that needs public money to survive than the next man. Indeed, I wanted RBS to be put into controlled administration, with loans not share capital to keep the important parts going while adjustment was made.
Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate.
JOHN REDWOOD The bad bits should have been closed down, and the good bits sold off. The poor state of RBS in 2008 does not make me anti all bankers, nor determined to do the City down. I seem to remember that the headquarters of RBS was in Edinburgh. In its glory days it was a Scottish success story. Why then is it now evidence of the foolishness of London relying on bankers’ gold? Many London-based banks traded prudently and needed no state help. Many bankers in London and elsewhere do good work helping their customers and earning an honest living. The same is true of Northern Rock. If the Bank of England had acted as lender of last resort when the whole-
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sale markets dried up we might have had a happier outcome. Instead the bank went down, and taxpayers were obliged by the last government to put in large sums of bailout money. In its days of achievement Northern Rock was hailed as a great North East success, with its headquarters in Newcastle. Only once it became a pensioner of the state did we hear that London was typically living off the taxpayer, with assistance for one of its own. I suspect the Scottish and northeastern provenance of the two failed banks was an important consideration in the previous government’s mind when it decided on such an expensive comprehensive rescue. I wonder if it would have acted as charitably had it been a bank called Surrey or Kensington that had gone down? London was once a great trading city. It had its own well-developed docks, wharves, and warehouses. It was a major world centre for trade in commodities and finished goods. From brewing to building materials, from electricity generation to light manu-
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facturing, London was an important manufacturing centre in its own right. The ribbon development on the main arterial roads in the 1930s shows that a decade written off as a dark age by many had its brighter sides, with rising prosperity and many new jobs in adaptable Greater London. In recent decades London has accept-
Attacks on bankers ‘seem to think that bad banking and London are synonymous
ed industrial and dockyard decline and has moved on. What greater image of London’s ability to change and earn a new living could there be than the skyscrapers rising from the old docks around Canary Wharf? London has quietly added the London Eye to its heritage skyline of Big Ben and Westminster Abbey, and this year
adds a whole new Olympic Park to its transformed eastern approaches. There is a dynamism about the place, a willingness to take risks, an optimism that allows Londoners to shake off old ways of working and earning, and to find new ones. As a result many rich and talented people come to make London their home. Their ideas and their money helps fire the new waves of investment and activity that a thriving city needs. I hope as the crowds start to come to London for the Games, we will all welcome them and be proud of what London, our capital city, has achieved. At its best it blends the old and the new, the traditional and the exciting. As one visitor from Russia said to me when showing him around parliament, “You are a country at peace with your past”. There on the walls are portraits of the rebels and the establishment, the Puritans and the Catholics, the Cavaliers and the Roundheads. They all went to make the UK what it is today. John Redwood is the Conservative member of parliament for Wokingham.
or by email: [email protected] Top responses will be reprinted in The Forum.
Obama’s conversion to gay marriage will only help him if it’s principled
N
EWSWEEK’S latest cover proclaims “The First Gay President,” with a picture of President Barack Obama wearing a rainbow halo. Obama’s support for gay marriage is a first for a sitting president, a fact his allies in the press have lauded for the past week. David Cameron, who’s championed marriage without receiving similar plaudits, could only look on and wonder how Obama had done it. The initial response from some Republicans was cynical – that it was another Democratic ploy to shift the narrative from the economy to social issues, another distraction in the mould of the GOP’s alleged “War on Women.” It was nothing of the sort.
THE WHITE HOUSE RACE EWAN WATT The president claimed he took the position irrespective of statements made by his vice president and secretary of education. In truth, it was a discussion the president was ill-prepared for, one he would have preferred to discuss after his reelection. The president will now hope that his position requires no further clarification. This is unlikely.
Rather than plague Mitt Romney with a burdensome, unsympathetic fight on social issues, the Republicans have largely stayed silent. Using the issue cynically to mobilise the base would in any case likely backfire – as pollster Jan van Lohuizen highlighted earlier this week. Although there are differences between the states, most polls show that the national mood on gay marriage has changed, with a plurality now in support. And yet a New York Times/CBS News poll found that 67 per cent felt the president made his announcement for “mostly political reasons.” Romney will want to keep it that way. In an economy election year, he will be reticent to move off message
and discuss anything but jobs. Lost among all the plaudits was the fact that Obama’s stance on the issue is laissez faire; a personal opinion backed by rhetoric rather than legislation. For a Democrat, it is remarkable that Obama stipulated that the matter should be decided by the states, especially when his administration and party have a zest for federal solutions for almost every other public policy matter. How can the federal government legislate a “right” to health care, but delegate to states whether gay couples have a “right” to marry? His defenders claim that marriage has always been a matter for the states, and yet the Supreme Court’s ruling in Love vs. Virginia
(1967) and Bill Clinton’s signature on the Defence of Marriage Act suggest otherwise. The question is now in what mould the Democrats will translate Obama’s stance on gay marriage into the party’s 2012 platform. Momentous – or contentious – announcements will fail electorally if they are seen as politically expedient rather than principled. In the short term, the president’s stance has played well, but raised the prospect of people asking further down the line, “what’s next”? His supporters will demand action. Ewan Watt is a Washington DC-based consultant. You can follow him on @ewancwatt
THURSDAY 17 MAY 2012
25
The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or comment at cityam.com/forum
RAPIDresponses
TOP TWEETS
Success isn’t bought Think don’t feel [Re: Do we need rules to stop football teams from buying success, Tuesday] Success can’t be bought, success can only be achieved through diligence and proper planning. Money in football only gives competitive advantage, it does not by itself lead to a favourable outcome. A financial fair play rule would not offer a level playing field, but automatically hand glory to already good teams. By what standard is a team like Swansea expected to compete with the likes of Arsenal or Manchester United if clubs are to “live within their means”? Football, like any investment, involves taking risk. Investors should be allowed to determine clubs’ worthiness themselves. Dayod Akanmu
[Re: Why personal choice in smoking or sex is the only measure that matters, yesterday] The analogy between Saudi repression and that of smokers is fantastic. It is interesting that health zealots always fail to see themselves as akin to any other suppressive group or government, that they are somehow different because of their “morality.” They are blinded by their causes and beliefs and will go to any lengths to enforce their will on those who do not need to be protected. For them it is OK to distort the facts or fabricate them if it furthers the agenda. Beware those who seek to protect us, because it is a ruse to make people feel rather than think. Ultimately it is designed to control the public rather than to protect. Jay Rift
Greek default within the Eurozone is most likely. Wholesale break-up is second most likely. Current policies are doomed. @yanisvaroufakis
The game between Hollande and Merkel on growth versus austerity has started. Who will blink first? Or will they find a middle ground? @Nouriel
Ken Livingstone’s Madame Tussaud’s waxwork has been removed and placed in the archive. A final indignity. @dylsharpe
Mervyn King is uncertain on inflation again. When will he attempt to sort it out? @atillatherover
Mervyn King says the Jubilee break will hit GDP. Should we have fewer bank holidays?
YES
NO
Eamonn Butler
Tom Hodgkinson
The main trouble with bank holidays is that you spend them sitting in the same traffic jam as everyone else. Why can’t we stagger our holidays and take them when we choose, instead of when politicians deem fit? Legally, UK workers don’t have an automatic right to paid leave on public holidays, but they do have a right to 28 days’ paid annual leave: so why preserve the barbarous relic of fixed holiday dates? Of course, politicians since the age of Caesar have loved dishing out holidays. Religious holidays were always days of rest, but in 1871 the Liberal government added four more (five in Scotland), and in 1978 the Labour administration added May Day to charm the unions. Today, each one (plus the 2012 Jubilee holiday), costs the economy £2.3bn in lost output. It’s time to denationalise Britain’s holidaymaking. Eamonn Butler is director of the Adam Smith Institute.
Feast days and holidays are a key part of everyday life, because all work and no play makes Jack a dull boy. In his magnificent 17th century self-help guide, The Anatomy of Melancholy, Robert Burton recommended “merriment” as a stress-reliever. Religions all recommend a day of rest, and before the Reformation in 1535, the Christian church gave us a right royal knees up every three or four weeks. Life is just too monotone without them. But now the puritanical Bank of England governor Mervyn King reckons that this year’s Jubilee celebrations will have a negative effect on GDP. This is smallminded. Quality of life is more important than output levels. We need more holidays and more leisure, not less. Bring on the bunting. Tom Hodgkinson is editor of the the Idler magazine and has recently started the Idler Academy.
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The MPC has put its incompetence on public display
T
HE latest inflation report from the Bank of England (BoE) makes it clear that the credibility of the Monetary Policy Committee (MPC) has been undermined further. The relatively sharp upward revision to CPI inflation forecasts out to the third quarter of 2013 is now rather more realistic, but that realism is tainted by the scepticism relating to previous forecasts which have proven to be woefully poor. Meanwhile, not everyone is reading between the lines carefully enough. The gilt market was heartened by the downward revisions to near-term GDP forecasts, most likely because it would appear to keep the “more quantitative easing (QE) at a later date” option open. However, the latter is a nonsensical deduction. There is a very distinct chance of more QE at a later date, but for a completely different reason or, rather, exactly the same reason as in the fourth quarter of 2011. Mervyn King noted of the balance of opinions on the MPC: “You can make an argument for doing more asset purchases or indeed an argument for making fewer asset purchases” – which is to say that opinions remain very polarised over QE. However, as King later noted, the Bank of England (BoE) would act if the Eurozone crisis escalates and again (that is, as in the second half of 2011) threatens banks’ funding – so this is the one thing the MPC agrees on as a reason for more QE. One has to laugh at the assertion by King’s deputy, Charles Bean, that the MPC was overly swayed by the experience of the early 1990s in terms of the impact (or lack thereof at the time) of a sharp depreciation in sterling on inflation. How could
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow
MARC OSTWALD the MPC collectively assume a comparison between the early 1990s and the post-2007 was valid? After all, the western financial system was not in total disarray then, even if the Scandinavian system collapsed at the time – in fact, the western financial system was in good health. Western world demand was still the key element in determining the prices of raw materials, food and energy prices at the time, with emerging market and Bric demand merely an addendum, and the impact of technological developments and the globalisation of production was only just starting. Global foreign reserves, the elephant in the room of current capital flows, stood at $1 trillion, were only $2 trillion even in 2000 but now stand around $9.5 trillion. The appalling dearth of lateral thinking on the MPC that Bean’s comments evidence, should in fact raise sizeable doubts about its competence, and by extension beg the question: sterling/gilts = safe haven. Are you sure? But prize for King’s least insightful comment (and I could use other, less complimentary terms) is this drivel: “There is no obvious reason to believe that we can’t get back to the level of output that we were on the pre-crisis trend path, but it may take 10, 15 or maybe even 20 years to get there.” Marc Ostwald is a strategist at Monument Securities.
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THURSDAY 17 MAY 2012
26
LIFE&STYLE TECHNOLOGY STOCKWATCH Platform: iOS Cost: 69p Track your investment portfolio on the go. This app will let you track unlimited stocks and pick your favourite ones to keep a close eye on. It draws detailed, up to date information from more than 50 exchanges across the world. It also comes with an extra security lock to make sure your information is kept private.
WORDS BY
STEVE DINNEEN
EVERNOTE Platform: iOS, Android, WP7, BlackBerry Cost: Free
DOCUMENTS TO GO Platform: iOS, Android, BlackBerry Cost: £6.99
This personal organiser app has it all. Sync notes, photos, to-do lists and voice memos across your devices – all with the ability to make detailed notes. Evernote also allows you to easily email your files to your contacts, making sharing data simple and intuitive.
If you need to quickly access work documents on the go, this handy app is essential. It is able to read multiple Microsoft formats, including Office, Excel and PowerPoint. You can also edit these documents and use tools including word count, undo, redo and replace.
Make your iPhone do the hard work for you
NOTE TAKER Platform: iOS Cost: £1.49 If your memory lets you down, Note Taker could be your salvation. It has a clever system for writing with your finger, where the character you are scrawling is faintly superimposed over your text, allowing you to see what you’re doing, while keeping track of your note. Great for short memos.
The top apps to shave valuable seconds from your day, by Steve Dinneen DROPBOX Platform: iOS, Android, WP7, BlackBerry Cost: Free (for 2GB) A list of office apps wouldn’t be complete without everyone’s favourite cloud storage solution: Dropbox. Its integration between desktop and your mobile devices is seamless and retrieving and saving documents is fast, intuitive and entirely painless.
CAMCARD Platform: iOS, Android Cost: £4.99
PERCENTAGES Platform: iOS Cost: 69p
If you’re the kind of person who has a drawer filled with business cards that will never be written up or filed, there is hope. CamCard lets you scan a business card with your phone’s camera, recognises the details and offers to store them as a contact. Also works with your Gmail or Exchange email account.
Don’t let a bad head for maths hold you back. Percentages will figure out a host of percentagebased queries (including percentage of a number; total after x percent is deducted; x is y percent of z). The interface is slick and very easy to use and allows you to customise settings like the number of decimal places.
SAISUKE Platform: iOS, Android Cost: £6.99
AUDIO MEMOS Platform: iOS, Android Cost: 69p
This powerful calendar app is on the expensive side but it makes up for it with a wealth of functions. It will sync your calendars across platforms (iCal, Gmail Calendar) and let you colour code and tag your appointments. It also has a back-up feature to prevent accidental data loss.
If you need to record that important meeting, this app won’t let you down. After recording, you have the option to email the audio file, although you will have to spend extra (59p to email, £1.19 if your file requires compression). Even so, this is one of the best recorders on the market – well worth it.
LEMON Platform: iOS, Android, BlackBerry Cost: Free Make sure you don’t lose out on your expenses with this app that lets you scan your receipts, group, tag and label them and email them to yourself. You can manually enter receipt information too, meaning you never have to lose out at the end of the month.
THINK OF ALL THAT TIME YOU’VE SAVED...
NOW HERE ARE SOME GREAT WAYS TO WASTE IT
Tiny Wings | 69p | iOS
Have a few minutes to spare? Then try playing Tiny Wings. The game is incredibly simple: press the screen to make your flightless bird charge down cliffs. Insanely addicitve: don’t play it on the circle line, you’ll be going round all day.
Minecraft | £4.99 | iOS and Android
This block-building game became a phenomenon when the Java version was released, with people crafting replicas of famous landmarks. Now you can play on your smartphone. Happy building.
Civilization Revolution | £1.99 | iOS
If you’re over 30, chances are a chunk of your life has been swallowed by Sid Meyer’s Civilization games. Now you can take over the world – or peacefully take your tribe on a journey through the millenia – on your iPhone.
Force = Mass x Acceleration | £1.99 | iOS
Or, to give this game its full title, “AaaaaAAaaaAAAaaAAAAaAAAAA!!! (Force = Mass x Acceleration)”, which is a really, really stupid name. You’re a base jumper leaping from a skyscraper, spray-painting buildings as you fall.
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TBR 3Q11 x86-Based Servers: Corporate IT Buying Behavior & Customer Satisfaction Study, November 2011. Quarterly price quoted is based on IBM’s 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering availability subject to credit approval; for more details and full Terms and Conditions please visit: http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html Rates and offerings are subject to change, extension or withdrawal without notice. Prices include VAT at a rate of 20%. IBM hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product warranties, visit http://www.ibm.com/servers/support/machine_warranties. IBM makes no representation or warranty regarding third-party products or services. IBM, the IBM logo, System Storage and System x are registered trademarks of International Business Machines Corporation registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. For a current list of IBM trademarks, see www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other countries. All prices and savings estimates are subject to change without notice, may vary according to configuration, are based upon IBM’s estimated retail selling prices as of 01/01/2012 and may not include storage, hard drive, operating system or other features. Reseller prices and savings to end users may vary. Products are subject to availability. This document was developed for offerings in the United Kingdom. IBM may not offer the products, features, or services discussed in this document in other countries. Contact your IBM representative or IBM Business Partner for the most current pricing in your geographic area. ©2012 IBM Corporation. All rights reserved.
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LIFE&STYLE FASHION
cityam.com
WEDNESDAY 16 MAY 2012
Mango scarf print dress, £34.99, mango.com
Massimo Polomba Ella Narcissus yellow tote, £350, asos.com
Ultra-chic, this belted dress manages to evoke the golden hue of summer while keeping a solid work-worthy respectability. The mosaic is very on trend.
Hand-crafted in Italy, this gorgeous tote will carry your life in it easily – without looking sloppy. Wear with a black or grey suit for an elegant look.
- THE OLD CURIOSITY SHOP THE 445-YEAR-OLD SHOP THAT’S CHANGING WITH THE TIMES
A
t 445-years-old, the Old Curiosity Shop has seen a thing or two. As London has grown and shifted beyond recognition, the shop, nestled on Portsmouth Street in the West End, has been a constant reminder of how things used to be. What is even more astonishing, though, is how it has simultaneously adapted to suit its environment, remaining relevant over the centuries. The shop, which was immortalised in the Dickens novel of the same name, has sold antiques and general curios throughout most of its long life. But 20 years ago, its new owner switched to hand-made footwear. Now its distinctive sartorial creations have featured in fashion totems including Vogue, I-D and Marie Claire and it attracts as many fashionistas as history buffs. Built in 1567 from shipping wood, the exterior has changed remarkably little. Located between
Whistles dotty tweed skirt, £95, johnlewis.com Well-made and structured, this pencil skirt is a room-brightening statement piece which, paired with a neat black blouse and pumps, is the perfect way to dress for work.
Temple and Holborn underground stations, The Old Curiosity Shop sits amid some of the city’s most spectacular new architecture – it is a sliver of old London among the modern city lights. Customers are enthralled by its winding staircases, creaking floorboards, hidden nooks and unlikely angles – it really looks like something straight from the pages of a Dickens novel. The building’s fascinating history goes even further back than Dickens – it was once part of an estate given by King Charles II to one of his countless mistresses. In the Dickens novel, the virtuous young heroine, Nell Trent, meets a tragic end, turfed out of the eponymous shop and, eventually, dying young. The fate of the building, though, looks set to be less fraught: its protected status should mean the little store with the big history will still be around in another 500 years.
Mellow yellow: adding warmth to chilly spring Make like the sun and shimmer in golden hues to fight the cold, says Zoe Strimpel Next yellow stripe dress, £45, next.co.uk Boy. By Band of Outsiders Easy Cotton Poplin Shirt, £175, neta-porter.com
LAURA LEAN/CITY AM
One of the hottest brands around, this shirt is a prime example of the floaty, effortless look that’s made the brand popular. Easy, breezy and very nearly summery.
It’s too cold to wear this dress on its own, but paired with a cashmere cardi in white, yellow or black, plus some kitten heels and tights, you’ll be summery, bo-ho...and toasty.
Maxmara Sibari bag, £390, matchesfashion.com This bright, block-colour crocodileprinted leather bag has plenty of space but doesn’t look baggy: carry it about with your smartest work outfit for a Sloane Street look.
The Old Curiosity Shop today sells funky designer shoes. For the next month City A.M. and Brewin Dolphin will be shining a spotlight on a series of City Treasures as we celebrate some of the great places and institutions around us. Many of them are established with a long and interesting heritage – yet they still exude their core values based on service and excellence. Tomorrow is Fortnum & Mason.
www.brewin.co.uk
J. Crew sequined silk georgette top, £420, netaporter.com The combination of sequens and pale yellow make this an irresistably sexy piece for spring. Pair with a jacket and floaty knee-length skirt for work cocktails.
Textured peplum skirt, £34, topshop.com Stick this in your bag for after work and – worn with a white or black shirt – you’re good to go for a girl’s night out. It’s fun without being tarty thanks to the knee-skimming length.
SATELLITE& &CABLE CABLE SATELLITE
TERRESTRIAL TERRESTRIAL
cityam.com
TV & GAMES
THURSDAY 17 MAY 2012
BBC1 BBC1
BBC2 BBC2
6pm BBC News 6.30pm BBC London News 7pm The One Show 7.30pm EastEnders: BBC News 8pm CHOICE Planet Earth Live 9pm New Tricks 10pm BBC News 10.25pm Regional News 10.35pm Question Time 11.35pm This Week 12.20am Holiday Weatherview
6pm Eggheads: Quiz show, hosted by Dermot Murnaghan. 6.30pm Antiques Road Trip: Philip Serrell and Catherine Southon set out from Perth and arrive in Carlisle. 7.30pm Great British Menu 8pm Two Greedy Italians: Still Hungry 9pm CHOICE The Great Euro Crash with Robert Peston 10pm Grandma’s House 10.30pm Newsnight: Weather 11.20pm The Town Taking on China 12.20am BBC News
12.25am Sign Zone: The Truth About Tax – Panorama 12.55am Countryfile 1.55am Antiques Roadshow 2.55am Modern Spies 3.55am-6am BBC News
4am-6am BBC Learning Zone
SKY SPORTS 1
8.15pm Diving 9.45pm Live Cycling: Stage five of the Tour of California. 12am-12.30am Cycling: Giro d’Italia
7pm Sky Sports News at Seven 7.30pm Live Football League 10pm Test Cricket 12am Rugby Club 1am Football League 2.30am Premier League World 3am Test Cricket 5am-6am Ringside
ESPN
7pm Live Premier League Darts 10.30pm IAAF Athletix 11pm Time of Our Lives 12am Ringside 1am Sporting Greats 1.30am Superleague Netball 3.30am Time of Our Lives 4.30am The Rugby Club 5.30am-6am IAAF Athletix
6.15pm NBA Basketball 8.15pm Premier League Review 9.15pm Goal! Special 9.45pm Eredivisie 11.30pm Press Pass 2012 12am Live NBA Basketball 2.30am FIBA Basketball 3am Russian Premier League Review 3.30am Serie A Review 4am Press Pass 2012 4.30am Goal Show 5am-6am Premier League Review
SKY SPORTS 3
SKY LIVING
SKY SPORTS 2
7pm Criminal Minds 8pm Four Weddings US 9pm Battle of the Brides 10pm The Biggest Loser USA 11pm Unforgettable 12am Steps: On the Road Again 1am Criminal Minds 1.50am Bones 2.40am Medium 3.30am Bones 4.20am Nothing to Declare 5.10am-6am Jerry Springer
7pm The Rugby Club 8pm Live PGA Tour Golf 11pm European Tour Golf 1am America’s Cup World Series – Venice 1.30am America’s Cup Uncovered 2am-5am PGA Tour Golf
BRITISH EUROSPORT 7pm Cycling: Giro d’Italia
ITV1 ITV1
CHANNEL4 CHANNEL5 CHANNEL4 CHANNEL5 6pm The Simpsons 6.30pm Hollyoaks 7pm Channel 4 News 7.55pm 4thought.tv 8pm CHOICE Phil Spencer: Secret Agent 9pm The Hoarder Next Door 10pm 24 Hours in A&E 11.05pm The Secret Millionaire 12.10am Random Acts
6pm London Tonight 6.30pm ITV News 7pm Emmerdale 7.30pm The Great British Weather: Tonight 8pm Emmerdale 8.30pm Coronation Street 9pm Long Lost Family 10pm ITV News at Ten 10.30pm London News 10.35pm Piers Morgan’s Life Stories: Dennis Waterman
12.15am Sex, Lies and Rinsing Guys 1.10am Watching the Detectives: Channel 4 Dispatches 2.05am Extreme A&E 3am Unreported World 3.25am Hidden Talent 4.20am A Guide to Taking a Photo 4.25am Deal or No Deal 5.20am-6.05am Countdown
11.35pm The Late Debate 12.05am Jackpot247; ITV News 2.35am The Great British Weather: Tonight 3am ITV Nightscreen 4.35am-5.30am The Jeremy Kyle Show
BBC THREE
DISCOVERY HOME & HEALTH
7pm The Middle 7.30pm Modern Family 8pm Glee 10pm House 11pm NCIS: Los Angeles 12am Law & Order 1am Airline USA 2am Brit Cops: Frontline Crime UK 2.55am Big Trouble in Thailand 3.45am Body Language Secrets 4.35am Real Filth Fighters 5.05am-6am Don’t Forget the Lyrics
DISCOVERY
7pm Bear Grylls: Born Survivor 8pm Gold Rush 9pm The Ultimate Climb 10pm Auction Hunters 11pm Deadliest Catch 12am Bear Grylls: Born Survivor 1am The Ultimate Climb 2am Auction Hunters 3am Deadliest Catch
Place the numbers from 1 to 9 in each empty cell so that each row, each column and each 3x3 block contains all the numbers from 1 to 9 to solve this tricky Sudoku puzzle.
LAST ISSUE’S SOLUTIONS
QUICK CROSSWORD P A N T S U U A R S U E L A T C H L U I M A C R E A H E A R T A R F R O N T E A G U E T E R R A
G L A R R D P E R S A C D L Y A
A S S L T O E A L M D E U N E S G T O R B E I S N K S
KAKURO 2 3 7 1 3 6 1 2
8 5 6 9 7 7 9 6 4 8
1 3 9 1 3 8 2 7 4 5 8 3 7 7 8 9 9 4 6 5 1 4 2 2 3 4 5 9 2 1 3 7 1 9 6
3 2 9 6 7 8 1 9 4 8 5 3 6 1 4 9 6 1 2 8 3 7 9 5 8 4 2
Fill the grid so that each block adds up to the total in the box above or to the left of it. You can only use the digits 1-9 and you must not use the same digit twice in a block. The same digit may occur more than once in a row or column, but it must be in a separate block.
15
3
17
39
4
20
21
7
16
5 12 14
34
30 16
25
19
14
22 30
11
16
6
8
The nine-letter word was MAGNITUDE
4
38
10
Using only the letters in the Wordwheel, you have ten minutes to find as many words as possible, none of which may be plurals, foreign words or proper nouns. Each word must be of three letters or more, all must contain the central letter and letters can only be used once in every word. There is at least one nine-letter word in the wheel.
9 12
7
6
E
P I
V
E R
8
27
10 19
24
WORDWHEEL
WORDWHEEL
CHANNEL4, 8PM The property expert heads to Leeds, where he meets a man whose lifestyle is affecting his chances to sell his three-bed semi.
13
29
12
3 21
28
20
18 26
16
SUDOKU
PHIL SPENCER: SECRET AGENT
QUICK CROSSWORD
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
The BBC business editor explores the history of the Euro, and finds out how a collapse of the common currency could affect Britain.
SKY1
COFFEE BREAK
SUDOKU
BBC1, 8PM Another hour of animal antics as they happen with further updates on the young creatures as they learn the skills they need to survive.
THE GREAT EURO CRASH WITH ROBERT PESTON BBC2, 9PM
7pm Say Yes to the Dress 8pm I Didn’t Know I Was Pregnant 9pm Untold Stories of the ER 10pm Diary of a Fat Man 11pm Trauma Unit 12am Untold Stories of the ER 1am Diary of a Fat Man 2am Trauma Unit 3am Say Yes to the Dress 4am A Baby Story 5am-6am Birth Stories
7pm Storage Wars 7.30pm Pawn Stars 8pm Ice Road Truckers 9pm American Restoration 9.30pm Pawn Stars 10pm Storage Wars 11pm American Pickers 12am Storage Wars 12.30am Pawn Stars 1am Storage Wars 2am Ice Road Truckers 4am Heir Hunters 5am-6am Ancient Discoveries
7pm Hollyoaks 7.30pm How I Met Your Mother 8pm The Big Bang Theory 8.30pm How I Met Your Mother 9pm 2 Broke Girls 9.30pm Happy Endings 10pm Rules of Engagement 10.30pm Very Important People 11pm Fonejacker 11.30pm Cardinal Burns 12am The Big Bang Theory 1am Scrubs 1.30am How I Met
PLANET EARTH LIVE
3.50am Ice Pilots 4.40am Wheeler Dealers 5.30am-6am Destroyed in Seconds
HISTORY
E4
TV PICK
3.55am House Doctor 4.20am HouseBusters 4.45am Nick’s Quest 5.10am Wildlife SOS 5.35am-6am Wildlife SOS
Your Mother 1.55am Rules of Engagement 2.20am Accidentally on Purpose 2.40am Desperate Housewives 3.30am 90210 4.10am Greek 4.50am-6am Switched
7pm The Apprentice 8pm Don’t Tell the Bride – Brides’ Revenge 9pm Russell Howard’s Good News 9.30pm Lee Nelson’s Well Good Show 10pm EastEnders 10.30pm Britain Unzipped 11.30pm Family Guy 12.15am Russell Howard’s Good News 12.45am Angry Boys 1.15am Lee Nelson’s Well Good Show 1.45am Britain Unzipped 2.40am Snog, Marry, Avoid? 3.10am Young, Dumb and Living Off Mum 4.10am-5.10am Don’t Blame the Dog
6pm Home and Away 6.30pm 5 News at 6.30 7pm Cricket on 5: England v West Indies; 5 News Update 8pm World’s Scariest Drivers: Motoring madness. Last in the series; 5 News at 9 9pm The Restaurant Inspector 10pm FILM Snatch: Comedy drama, starring Jason Statham. 2000. 12am SuperCasino: Live interactive gaming.
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R
T A
ACROSS
DOWN
1 Pieces of potato fried in deep fat or oil (5) 3 Less than the correct amount (5) 6 Clock that wakes a sleeper at a preset time (5) 8 Large artery (5) 9 Cleansing agent (4) 11 Peace and quiet (7) 13 Cut part of a tree trunk (3) 15 Waterproof filler and sealant (5) 17 Collection (3) 19 Church tower (7) 21 Examination (4) 22 A Town Like _ _ _, Nevil Shute novel (5) 23 Dais (5) 24 Young female horse (5) 25 Divisions of a dollar (5)
1 Bedlam (5) 2 Astronomical unit of distance (6) 3 Having no definite form (9) 4 Pertaining to hearing (5) 5 Exaggerated nasality in speech (5) 7 Residence of a religious community (9) 10 Extremely sharp (5) 12 Coat a cake with sugar (3) 14 Anoint or lubricate (3) 16 Water boiler (6) 17 Employees (5) 18 Musical warble (5) 20 Level betting (5)
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BACK IF YOUR HORSE FINISHES 2ND TO
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Doctor Parkes Judge ‘n Jury Racy Secret Witness Ancient Cross Magical Macey Gramercy
14/1 16/1 16/1 16/1 18/1 18/1 20/1 40/1
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THURSDAY 17 MAY 2012
FOOTBALL COMMENT TREVOR STEVEN
E
NGLAND manager Roy Hodgson’s decision to take John Terry and not Rio Ferdinand to the European Championship has stirred a hornets’ nest but I believe he is right; it would have been asking for trouble to take both. I’m not talking about suggestions the pair would not get along or whether that came into Hodgson’s thinking – we can’t know that – but I certainly accept there were sufficient football reasons to leave Ferdinand at home. Undeniably both are great players, superb readers of the game and brilliant motivators, but they also share a lack of pace that makes it too risky to use them together. At international level slow defenders get exposed, as England found to their cost at the last World Cup. Others’ claims were very hard to ignore. Joleon Lescott has been excellent throughout Manchester City’s Premier League winning campaign, while Gary Cahill has proven his quality since joining Chelsea and, crucially, has pace. Finally, it’s often overlooked but Terry offers much more of a goal threat. The Chelsea captain has six in 72 internationals, twice as many as Rio, who has more caps. This season Terry has netted seven in 48 – quite a tally for centre-back – while the Manchester United man has not scored a single goal in 38 appearances. I’ve no major complaints about the rest of the squad and agree with the inclusion of Alex OxladeChamberlain, despite his obvious shortage of experience. Steven Gerrard aside, there is a lack of dynamism in midfield and the Arsenal youngster offers that in abundance. He can play wide or centrally, has impressed in big games this season against top opposition such as AC Milan and looks certain to be a big part of England’s future, so phasing him in makes sense. The only minor gripe I have is over the selection of Stewart Downing, a winger who has two goals in 52 games all season for Liverpool – with none and no assists in the league. Manchester United’s Ashley Young would be my first choice on the left wing and OxladeChamberlain can play there too, so we would have had adequate options without Downing. Besides, the tactics I would employ would see the wide players encouraged to come in off the touchline and allow the full-backs to overlap. Glen Johnson and in particular Ahley Cole and Leighton
GETTY
MONEY
SPORT
Terry (front) and Ferdinand (centre) are too slow to play together, while the former offers a greater goal threat
Roy’s right: too big a risk to take Ferdinand and Terry
Baines are dangerous going forward and deliver highquality crosses for the likes of Andy Carroll to thrive on. An out and out winger such as Downing is not necessary in this system. I would rather have seen an extra space used to bolster a light pool of forwards. I’m sure Stoke’s Peter Crouch could have made an important contribution, especially in the first two games when Wayne Rooney is suspended. Crouch wouldn’t have to start but I feel his experience would have helped and potential partners like Jermain Defoe need someone like him to provide chances. Trevor Steven is a former England footballer who played in both the 1986 and 1990 World Cups and the 1988 and 1990 European Championships. He now works as a talent scout and
TREVOR’S XI Trevor Steven’s selection to start England’s first Euro 2012 match with France Goalkeeper: Joe Hart
Right-back: Glen Johnson Centre-back: Gary Cahill Centre-back: John Terry Left-back: Ashley Cole Midfield: Scott Parker
Midfield: Gareth Barry
Right wing: Theo Walcott
Att midfield: Steven Gerrard Left wing: Ashley Young
Centre-forward: Andy Carroll
Tactics: I would adopt a 4-2-3-1 formation, with Parker and Barry holding midfielders and Gerrard pushed on to play off Carroll. Wingers would be encouraged to drift inside and allow full-backs to overlap, knowing that Parker or Barry were there to cover.
Barton denies charge Euro call-up is surreal, admits in bid to reduce ban teenager Oxlade-Chamberlain BY FRANK DALLERES
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My initial reaction to Kenny Dalglish’s sacking was shock, but it’s impossible to ignore that their results – indeed all of their stats – have been terrible, especially in light of the investment made in the squad. Kenny does not come from a tactical background, and the kind of international players who populate Liverpool’s squad nowadays expect that. I’ve no doubt someone like Wigan’s Roberto Martinez would jump at the job, but I think they’d be better off with Sunderland’s Martin O’Neill or a left-field choice with a track record of winning, such as German Ralf Rangnick. Borussia Dortmund’s Jurgen Klopp is also highly regarded but I question whether he’d give up Champions League football for Liverpool. As for Rafa Benitez – I think we’ve seen with Dalglish how successful it is to re-appoint a previous manager.
QPR midfielder Joey Barton has accepted one charge of violent conduct from the Football Association but denied another in a bid to avoid a double-digit ban. Barton’s admission relates to his kick on Sergio Aguero following his red card against Manchester City on Sunday. His denial relates to an apparent attempt to headbutt Vincent Kompany seconds later. The Rangers star has requested a personal hearing to explain his defence to the FA’s disciplinary panel, who could find him guilty regardless. He is likely to be suspended for at least seven games, but the panel has the power to levy a tougher sanction. The club has also launched a probe into the incident.
BY SPORTS DESK STAFF UNCAPPED Arsenal starlet Alex Oxlade-Chamberlain admits he was stunned by his inclusion in England’s squad for next month’s European Championship. The 18-year-old, who has made just six Premier League starts, only found out yesterday morning when manager Roy Hodgson telephoned to break the good news. “I would have probably laughed if someone had told me I would be
in the Euro 2012 [squad] a year ago,” said the midfielder. “For everything to happen as quickly as it has, it has been surreal and I don’t think it has really sunk in properly yet.” Oxlade-Chamberlain is yet to earn a senior cap but has shone on rare outings for the Gunners this season, following last summer’s move from Southampton. He added: “I know I haven’t made it and I have a long way to go but this is the first step in what I hope to be a long and successful international career.”
cityam.com
SPORT
THURSDAY 17 MAY 2012
Defiant Strauss eyeing lengthy run as captain UNDER-FIRE skipper Andrew Strauss insists he is nowhere near the point of relinquishing his captaincy, as he prepares to lead England into their first Test of the summer today at Lord’s against West Indies. Strauss concedes his position as leader and opening batsman has been put under pressure by an uncharacteristically dire run of form that has gleaned just a solitary century from his last 50 innings. But he brushed off suggestions that his three-year stint as captain may be nearing an end and vowed to provide a robust response to his critics by hitting the runs that preserve England’s No1 world Test ranking. “It was obviously a big issue at the end of the winter, and I recognise as captain and as an opening batsman that I need to contribute. I fully intend to do that. I’ve got no reason in my mind why I shouldn’t go on and do that this summer,” he said. “If you’re too wedded to some ideal moment to step down, you can
be very surprised by it. If I feel like I’m still contributing and helping the side be better, both as a captain and batsman, then I don’t see any reason to change things. “It’s just not something I’ve thought about. I’d certainly like to be in a position to know when the right time is. I’ll obviously keep an eye out for it, but I don’t think we’re there at the moment – I don’t think we’re anywhere near there at the moment.” Strauss rejected spinner Graeme Swann’s depiction of his criticism as “a witch hunt”, following a winter in which England suffered a whitewash against Pakistan and could only draw the series in Sri Lanka. “It didn’t feel like a witch hunt; it just felt like the issue of the day, which is what happens,” he added. “The only way to switch attention elsewhere is to go out and perform, and that’s what I intend to do.” The first of three Tests against West Indies is expected to see Yorkshire’s Jonny Bairstow handed a Test debut in the middle order, with Ravi Bopara sidelined by a thigh injury.
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BY FRANK DALLERES
Strauss takes a record of one century in his last 50 innings into today’s first Test
West Indies attack confident of Peterson: I’m not a cheat and upsetting favourites England won’t hand back Khan belts BY SPORTS DESK STAFF WEST Indies’ pace attack is sufficiently confident of skittling out England in the first Test that their bowlers are arguing over who will be first to bag a fivewicket haul. The tourists begin the match today as major underdogs but captain Darren Sammy revealed there is no shortage of confidence in his dressing room as they prepare to face the world’s No1 Test team at Lord’s.
“There’s been a lot of discussion in the dressing room about who’s going to put their name on the [honours] board,” said Sammy. “Kemar [Roach] said he’s going to be the first one; Ravi [Rampaul] said it’s going be him – and I myself think it’s going to be me as well. We left the Caribbean knowing it’s going to be a very difficult challenge. But we also know that if we can play well and put runs on the board we back our bowling attack to get 20 wickets and win a Test match.”
31
BY SPORTS DESK STAFF AMERICAN boxer Lamont Peterson has rejected Amir Khan’s calls for him to return his WBA and IBF light-welterweight titles to the Englishman. Khan made the demand after their scheduled rematch, which had been due to take place on Saturday, was called off following Peterson’s failed drug test. Peterson insists he is not a cheat and that synthetic testosterone pellets inserted into his hip before
his controversial win over Khan in December were necessary for medical reasons. His fate will be decided next month when the Nevada State Athletic Commission convenes to hear the case. “Let the commission decide, let the sanctioning bodies decide. Until that point I’m still the champ,” said Peterson. “I’ve never been a cheat. I don’t like it when people cheat. It’s just my word but the pellets didn’t do anything to help me beat him.”
IN BRIEF Cavendish leads Giro points race n CYCLING: Britain’s Mark Cavendish surged into a commanding lead in the race for the points jersey in yesterday’s Giro d’Italia 11th stage. Cavendish moved 12 ahead of Matt Goss as Italian Roberto Ferrari won the stage.
Wales wing Cuthbert France snub n RUGBY UNION: Cardiff starlet Alex
Cuthbert has rejected big-money offers from France to sign a new oneyear deal. The wing, 22, said his decision had been influenced by a desire to cement his place for Wales.
Shingler loses Scotland appeal n RUGBY UNION: London Irish back
Steven Shingler has lost his battle to represent Scotland rather than Wales. World chiefs ruled the Swansea-born 20-year-old had sealed his fate by playing for Wales Under-20s last year.
Beyond boundaries Investec is proud to be the title sponsor of English Test Cricket. At Investec, w e combine talent and expertise to form an enduring partnership for our clients. Our team is made up of specialist banking, asset management and w ealth & investment. Please note that returns are not guaranteed and some of our products w ill place your capital at risk. Passionate about the game, w e’ ve created the Investec C ricket Zone at investec.com/cricket complete w ith match stats, player profiles and the chance to w in match tickets.
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SPORT Dalglish axed 32
THURSDAY 17 MAY 2012
would’ve been too risky ‘for ItHodgson to take both Ferdinand and Terry to the European Championship
cityam.com/sport
Trevor Steven’s England squad verdict: Page 30
Formula One revving up for listing in two weeks’ time
as door opens for AVB return
EXCLUSIVE
BY FRANK DALLERES
FORMULA One’s eagerly anticipated £6bn flotation in Singapore will take place earlier than expected within the next two to three weeks, City A.M. understands. It had been feared global market turbulence would cause the initial public offering to be delayed until after the summer but the listing has now been given the green light, according to sources close to the situation. Between 20 and 30 per cent of the motor racing business will be offered in a deal that is expected to value Formula One at around £6bn. Private equity firm CVC Capital
BY FRANK DALLERES
Dalglish’s departure, and that of No2 Steve Clarke, leaves Liverpool FORMER Chelsea manager Andre without a manager, assistant, direcVillas-Boas last night emerged as a tor of football, head of sports science leading contender to replace Kenny and head of communications followDalglish after Liverpool’s American ing a spate of sackings. owners brought the Scot’s second Results aside, Dalglish also attractspell in charge to an abrupt end. ed criticism for spending more than Newcastle’s Alan Pardew, Wigan’s £100m on players such as Jordan Roberto Martinez and Swansea’s Henderson, Stewart Downing, Andy Brendan Rogers form a trio of rising Carroll and Charlie Adam who have stars also touted for the Anfield hotmade modest impacts. The 61-yearseat, while ex-Reds boss Rafael old, whose dismissal is thought to Benitez has been linked with a sensahave cost the club around £8m, used tional return. the club statement as a reminder that Dalglish was sacked yesterday his 16-month tenure had reaped 24 hours after returning some silverware. from showdown talks in “Of course I am disapthe United States, where pointed with results in the he was taken to task league, but I would not over Liverpool’s lowest have swapped the Carling Defeats in 28 games Premier League finish Cup win for anything as I for 18 years and worst know how much it suffered under points tally since 1954. meant to our fans and the Dalglish since Idolised by the club’s club to be back winning start of 2012 fans for his previous suctrophies,” Dalglish said. cess as player and manager, Ironically, the sacking came Dalglish’s popularity and a Carling on the day that Roy Hodgson, the Cup were not enough to offset the man swiftly dispensed with by thenowners’ fears that he could not delivnew owners and replaced by Dalglish, er Champions League qualification. named his first England squad. Chairman Tom Werner said in a Former Porto boss Villas-Boas is the Reds statement: “Results in the most intriguing candidate to be Premier League have been disapLiverpool’s fourth manager in as pointing and we believe to build on many seasons, having only been fired the progress that has already been by Chelsea in March after just seven made, we need to make a change.” months in charge.
GETTY
12
Dalglish was sacked despite winning the Carling Cup in February
Race row did not influence Rio Euro 2012 snub, says Hodgson BY FRANK DALLERES ENGLAND manager Roy Hodgson insists his shock decision to omit Rio Ferdinand from his Euro 2012 squad and pick John Terry was based solely on “footballing matters” and not the latter’s ongoing race row. Chelsea captain Terry made the 23man list despite facing a criminal trial in July over allegations, which he denies, that he racially abused Ferdinand’s brother, QPR defender Anton, in a match last year. Teenage Arsenal midfielder Alex Oxlade-Chamberlain received his first call-up, as did Norwich goalkeeper John Ruddy, while
Hodgson says defender Ferdinand was left out for footballing reasons only
Hodgson, selecting his first squad since being appointed, named Liverpool’s Steven Gerrard captain for next month’s tournament. Manchester United’s Ferdinand was left out, however, though Hodgson denied his judgment had been affected by the possibility of bad blood between the pair making it impossible to select both defensive
stalwarts. “My decision with John Terry was based purely on footballing matters,” he said. “I was given a free hand as to the squad I picked. I realised there would be people who would raise eyebrows but that’s the decision that I’ve made; that’s the decision I shall live with.” Hodgson emphasised he did not omit Ferdinand, 33, over fears he would not cope with a demanding schedule. “I’d be lying if that was the major reason,” he added. “It was purely on other footballing reasons.” He cited Terry’s role in Chelsea’s strong finish to the season and rejected concerns that an impending trial would affect him. “It’s not distracted him in lifting the FA Cup and helping his team reach a Champions League final,” said Hodgson.
Ecclestone owns a 5.3 per cent stake
EURO 2012 SQUAD Name
Club
GOALKEEPERS
Joe Hart Robert Green John Ruddy
Caps Goals
Man City West Ham Norwich
17 11 0
0 0 0
Glen Johnson Ashley Cole LeightonBaines Phil Jones John Terry Gary Cahill Joleon Lescott
Liverpool Chelsea Everton Man Utd Chelsea Chelsea Man City
35 93 7 4 72 8 14
1 0 0 0 6 2 0
Gareth Barry Scott Parker FrankLampard Steven Gerrard(c) James Milner A OxladeChamberlain Ashley Young Stewart Downing Theo Walcott
Man City Tottenham Chelsea Liverpool Man City Arsenal
52 11 90 90 24 0
3 0 23 19 0 0
Man Utd Liverpool Arsenal
19 5 33 0 22 3
Wayne Rooney Andy Carroll Danny Welbeck Jermain Defoe
Man Utd Liverpool Man Utd Tottenham
73 28 3 1 4 0 61 5
DEFENDERS
MIDFIELDERS
FORWARDS
Partners is believed to be looking to reduce its 63.4 per cent stake, which it has held since 2006, perhaps to below 50 per cent. It is thought that an encouraging initial response to Facebook’s IPO has helped expedite Formula One’s listing, despite ongoing uncertainty in the euro zone. Banking heavyweights UBS and Goldman Sachs have been hired to lead the IPO. Morgan Stanley, Banco Santander in Spain, Singapore’s DBS Group and Malaysian CIMB have been hired as bookrunners. UBS and Santander are also major sponsors of the sport. London-based Formula One is run by long-standing motorsport tycoon Bernie Ecclestone, who owns a 5.3 per cent stake and has grown annual revenues to an estimated £1bn. The estate of Lehman Brothers owns 15.3 per cent, Ecclestone’s exwife Slavica 8.5 per cent and other minority investors 7.5 per cent. Formula One’s image suffered last month when its visit to the Middle East for the Bahrain Grand Prix was disrupted by civil unrest in the Gulf kingdom. Premier League football giants Manchester United shelved plans for their own listing in Singapore in September amid market volatility.
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HOW BOOTS BECAME KING OF THE HIGH ST
CAMERON: EURO IS ON THE BRINK BY TIM WALLACE, JULIET SAMUEL AND PETER EDWARDS
▲ ▲
DAVID Cameron will today warn that “Greece is on the brink” and “the survival of the euro is in question,” thanks to “a crisis that never really went away.” “The Eurozone is at a cross-roads,” he will say in a major speech on the economy. “It either has to make-up or it is looking at a potential break-up.” The stark warning came as business leaders warned of severe consequences for the economy and Mervyn King revealed the Bank of England is planning how to respond to the break-up of the Eurozone, which looks increasingly likely as Greece may elect an antibailout government next month. Britain’s economy has already been hit hard by the crisis, with exports affected and banks exposed to any collapse, but worse is yet to come with King warning of a “storm”. Any solution will be expensive, Cameron told the Commons yesterday, as “[Europe] has got to build a proper firewall, it has got to take steps to secure the weakest members of the Eurozone, or it is going to have to... go in a different direction.” King used unusually blunt terms, saying “the Eurozone is tearing itself apart, without any obvious solution.” As a result, he said the Bank is working with the Financial Services Authority and Treasury to work out how to limit the fallout from a Eurozone exit, and that the Financial Policy Committee is considering the
impact on the banking system. Standard Chartered’s head of Europe Richard Holmes said he is planning for a Greek exit: “We have a task force trying to figure out what is the impact of this. For example… we clear euro dollars through Frankfurt so if there’s a redenomination of part of that flow then we are equipped to handle that.” Although King refused to be drawn on the specifics, economists said a Greek exit could mean more loosening is on the way despite high inflation. “The key transmission channel here is the contagion through financial markets and in particular the funding costs of the UK banks,” said RBS’s Richard Barwell. “The logical conclusion is that the MPC is signalling it is close to expanding QE.” ECB boss Mario Draghi also acknowledged the prospect of an exit, but said his “strong preference is that Greece will continue to stay in the Eurozone.” Meanwhile Michael Spencer, head of inter-dealer broker Icap and a former Tory treasurer, said his firm is ready to trade in drachmas within days if Greece pulls out of the euro. “I don’t think it will happen next week but I think it will happen. The inclusion of Greece in the euro project was a profound error and will come back to haunt us,” he said. Investors continued to move into safe haven assets, pushing British 10-year borrowing costs down to 1.88 per cent. Greek and Spanish stocks both fell 1.33 per cent, German shares fell 0.26 per cent, and the FTSE lost 0.6 per cent. MORE EUROZONE: Page 4
FREE
FSA targets brokers for insider cases EXCLUSIVE
BY JULIET SAMUEL
GETTY
ISSUE 1,634 THURSDAY 17 MAY 2012
David Cameron told Eurozone leaders to act fast if they want to hold the currency together
FTSE 100 ▼ 5,405.25 -32.37 DOW ▼ 12,598.55 -33.45 NASDAQ ▼ 2,874.04 -19.72
£/$ 1.59 unc
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MORE BLACK CABS THAN
TRIES AT TWICKENHAM
See Page 7
THE FSA has written to 190 brokers demanding explanations for why they have failed to flag up enough “suspicious trades” to the City watchdog and warning they could face visits from enforcement officers as a result. The letters, sent in April, are part of a wider FSA crackdown targeting not just those leaking and trading on inside information, but even those executing the trades. The watchdog selected the firms on the basis that of the millions of trades they have recorded carrying out, they have sent in few or no “suspicious trading reports” (STR) flagging up notable activity like trades carried out just before price-sensitive announcements by a company. The firms receiving the letters are mostly large brokers with institutional clients or funds like investment banks and asset managers. Although the letters are not aimed at “fishing” for enforcement cases, they could result in enforcement officers visiting a firm and forcing brokers to retrain their staff and offer up more information such as a “near-missed log” of unusual trades. The move is a significant escalation of the FSA’s war on insider trading and follows on from the David Einhorn/Punch Taverns case, in which the FSA fined Caspar Agnew, a JP Morgan trader who executed a share sale for Einhorn, because he did not flag the trade as suspicious after Punch unveiled a rights issue. Ruth Gevers, a director at Promotory and former FSA officer said the FSA’s aggression means “people who want to comply with the regime worry about how they can be sure they will always comply.” Certified Distribution 02/04/2012 till 29/04/2012 is 100,668
2
THURSDAY 17 MAY 2012
NEWS
To contact the newsdesk email [email protected]
Eurozone break-up will be traumatic but is now inevitable
I
T is good to see Sir Mervyn King and David Cameron both being a little more open about the possibility of a Greek default. We need realism, not delusion, from our central bankers and politicians; and it is looking more likely by the day that Greece will elect a rabidly antiausterity government next month, default on its debts and exit the euro. Yesterday’s inflation report from the Bank of England was inevitably a damp squib: even approximate forecasts are impossible until we gain greater visibility on the Eurozone’s great unravelling. Even the reduced UK growth forecast of 0.8 per cent for 2012 could end up being overoptimistic. Will a Grexit be containable – or will it be a Bear Stearns, a dry run which ends up precipitating a new Lehman Brothers that takes down the whole
Falling real pay holds back UK GDP recovery BY TIM WALLACE WORKERS took another beating in quarter one as prices increased far faster than wages, official data showed yesterday, which will continue to drag down consumer spending and economic growth. Pay in the quarter was just 0.6 per cent higher than in the same period of 2011, the Office for National Statistics (ONS) revealed – while prices rose 3.5 per cent in the year to March, leaving the average worker 2.9 per cent worse off. Bonuses led the slowdown, falling 9.8 per cent, even before inflation is taken into account. Public sector workers saw average weekly earnings rise 0.3 per cent to £481 – a 3.2 per cent real terms pay cut – and private sector staff saw wages rise 1.3 per cent to £460, a 2.2 per cent real terms fall. Unemployment fell by 45,000 in the first quarter to 2.63m, while employment jumped 105,000. However, the number of full time workers fell 13,000 while part time employment rose 118,000. As a result, economists believe the recovery will remain weak. “With unemployment still high, people worried about job security and real pay falling, there still seems little prospect that consumer spending will do anything other than act as a drag on the economy,” said Chris Williamson from Markit.
EDITOR’S LETTER ALLISTER HEATH EU economy? The realistic best-case scenario is somewhere in between – but nobody really has a clue, so fancy forecasts are useless. The fact that the Bank of England has assigned, somewhat ludicrously, a tiny but non-zero probability of UK growth hitting nearly six per cent by 2014 and 2015 shows that there is something very wrong with its fan chart forecasts. But while the short-run pain from countries exiting could be immense, the consequences for them of staying
in would be worse long run. The main reason why the euro needs to break up is because many of its current members allowed their competitiveness to deteriorate disastrously both before and after they joined the single currency. Prices and costs rocketed in some countries; in the past, this might have triggered a drop in their exchange rate. Tragically, they don’t have the internal political strength to slash their costs and regain their competitiveness the hard way. Politicians told their electorates so often that they would be able to have their cake and eat it that reforms have now become politically impossible. The result is that the euro helped create a huge current account surplus in parts of the region and a huge current account deficit in other parts, with capital flowing in the opposite direction. An analysis by Doug
McWilliams of the Centre for Economics and Business Research (CEBR) reveals that since 2000 Greece has lost 24 per cent of its export market share (from an already low base), France 20 per cent and Italy 18 per cent. Germany’s share has risen by 23 per cent. The German current account surplus this year is likely to be about $180bn. It has been the great winner from the euro; the single currency’s collapse against the dollar in recent days is giving its exporters yet another boost. The euro fuelled another problem that is now unravelling. The yield premium to compensate for the risk of investing in euro-denominated bonds issued by a weak country compared with those issued by a strong country kept on narrowing. Investors started to believe that there was a single European government, and that this
Inflation will be above target until mid-2013 BY TIM WALLACE INFLATION will stay above target for another year, the Bank of England warned yesterday, while Britain’s economic growth will be even weaker than it expected just a few months ago. Households will keep suffering under soaring prices all year, with inflation only expected to fall back to its two per cent target in the middle of 2013, the May Inflation Report predicted. Governor Mervyn King argued that he could have taken steps to cut runaway inflation over recent years, but only at the price of higher unemployment and even lower economic growth. Price rises are falling more slowly than expected because of rising utilities bills and oil prices, but the gradual overall downward trend in inflation should continue because of weak pressures from domestic factors like wages. However, the Bank still expects inflation to fall below target in 18 months to two years’ time, which economists believe could mean more policy loosening is on the way. “We assume that some MPC members, given this forecast, actually voted for extra quantitative easing (QE) last week,” said Citi’s Michael Saunders.
“It may be that the majority did not wish to surprise markets with extra QE last week, but chose instead to soften expectations with the lower inflation forecasts first – in order to be ready to expand QE soon (perhaps in June or July) if needed.” Meanwhile the Bank cut its GDP growth forecasts to around 0.8 per cent for 2012, down from 1.2 per cent in its forecasts three months ago. King maintained t h e econo-
The Bank cut its GDP growth forecast 8 Bank estimates of past growth Projection 6 4 2 ONS data 0 -2 -4 -6 -8 2008 09
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my should recover in coming years to achieve growth rates of two to three per cent in 2013 and 2014, but said the ongoing squeeze on household incomes and the pressure on bank funding conditions from the renewed Eurozone crisis have also hit growth. The Bank also suggested the UK may have avoided a technical recession – falling unemployment and positive survey data mean it expects the first quarter’s GDP figures to be revised up – but did warn that the second quarter will remain weak. In particular, the Inflation Report estimated the additional Diamond Jubilee bank holiday could knock 0.5 percentage points from the GDP figure in the quarter.
Mervyn King expects high inflation for another year Inflation will be higher than previously expected 7 % increase in prices on a year earlier 6 5 4 3 2 1 0 -1 -2 2008 09
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meant than any debt denominated in euros was safe. It was thus claimed that the single currency had achieved a free lunch: lower interest rates for all countries, without damaging the credit of strong countries. But the low rates in periphery countries, including Spain and Ireland, helped fuel property bubbles. The cost of euro break-up will range from 2 to 5 per cent of Eurozone GDP, the CEBR estimates, and could even reach $1 trillion at worst, depending on whether it is orderly and on how many countries leave. But whatever the cost, growth will be faster afterwards than it would be under the current set of policies. Intense disruption could be imminent – it’s time to fasten your seatbelts. [email protected] Follow me on Twitter: @allisterheath
IN BRIEF Fed to stick with current policy Several Federal Reserve policymakers last month thought the US central bank might need to do more to prop up the economy if the recovery stumbles, but there was almost no support for extending its so called Operation Twist programme, due to end in June. Minutes of the Fed’s most recent policy-setting meeting, released last night, suggested officials were inclined to stay their current course, given a “moderately” expanding economy and a seemingly improving employment market. But while half saw risks to the outlook as broadly balanced, nearly all the rest saw dark clouds on the horizon, both at home and abroad. “Participants identified several downside risks to the projected pace of economic expansion, including the fiscal and financial strains in the euro area and the possibility of an abrupt fiscal consolidation in the US,” the minutes said.
ICAP in talks to buy Plus Markets The world’s largest interdealer broker by market capitalisation ICAP is in talks to buy Plus Markets Group the UK exchange for fledgling companies. The London-based broker has been talking to the Financial Services Authority and the Plus board about a deal that would initially preserve the quotations of the 156 companies traded on the market, according to the Financial Times. Plus Markets Group is planning to close after failing to secure a buyer, and without a deal it faces going private or seeking other trading facilities.
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WHAT THE OTHER PAPERS SAY THIS MORNING Google unveils search results rejig Google is preparing the biggest overhaul of its search results in five years, in a change likely to draw more fire from rivals amid intensifying antitrust investigations into the company. The new service will present users with detailed information about more than 500m “real world” items rather than passing them on to another website to find an answer.
Shell warns on US gas bounce Royal Dutch Shell expects US natural gas
prices to double by 2015, rebounding strongly from the 10-year lows they have hit as a result of the shale gas boom as US domestic demand for the fuel grows.
HMRC faces quest for new tax chiefs Four of the top five civil servants in Revenue & Customs are set to leave this summer in a spate of departures that will strip the department of its most experienced tax professionals. Three of the HMRC’s five commissioners are planning to retire. A fourth, Steve Lamey, director-general for benefits and credit, is leaving to work in the private sector.
CITYAMCAREERS.com
Builder reduces back office jobs Britain’s largest contractor is to cut 650 jobs in response to the downturn in the building industry. Balfour Beatty, which helped to build Heathrow Terminal 5, is to reorganise its British construction services business into three divisions.
Preparing to dance in the Steel City The British high-tech industry is set for a shot in the arm when a software business conceived in Silicon Valley but raised in Sheffield announces its intention to float on AIM today. It intends to raise £10m.
Britain exports pigs to China
Britain is sending thousands of pigs to China in a bid to boost exports and exploit Chinese people’s love of offal and pork.
Cost of bureaucracy on the rise The cost of red tape has actually risen for businesses and some Whitehall departments have not scrapped a single regulation in the last 18 months. Regulation has cost companies an extra £18.5m since the start of 2011, even though ministers are meant to scrap one rule for every new one they introduce.
Skechers settles over false advert
Skechers USA will pay $50m to resolve federal and state allegations that it deceived the public by making unfounded claims that its “toning shoes” would help consumers tone muscles and lose weight.
GE Capital resumes paying dividend For the first time in three years, General Electric will again be able to take cash out of its hulking finance arm. GE Capital, one of the country’s top lenders, will pay its parent GE a $475m quarterly dividend.
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cityam.com
THURSDAY 17 MAY 2012
NEWS
Early Facebook investors to sell bigger stakes FACEBOOK yesterday increased the number of shares on sale by a quarter, setting itself up for a possible $18.4bn (£11.6bn) flotation tomorrow. The social media behemoth added a further 96.4m shares to its offering, bringing the total number on sale to 484.4m, At the higher end of the $34 to $38 price range, the flotation could raise $18.4bn. Several of the website’s early investors have decided to cash in on the overwhelming demand for Facebook shares, which led several brokers to close their books early. Goldman Sachs, which invested $450m in Facebook just last January, has more than doubled the number of shares it is selling from 13.2m to 28.7m. At the mid-range price of
$36 per share, Goldman Sachs, which will also rake in the cash from counderwriting the IPO, would pocket $1bn from the sale. Peter Thiel, one of the social network’s earliest investors, will cut his 2.5 per cent stake to less than one per cent by selling 16.8m shares, up from the previous allotment of 7.7m. DST Global, the internet investment firm owned by Russian tycoon Yuri Milner, will now offload a quarter of its stake – 45.7m shares up from 26.3m – while hedge fund Tiger Global has increased its offering sevenfold to 23.4m shares. The new structure of the flotation slightly cuts Mark Zuckerberg’s voting control from 57.3 per cent to 55.8 per cent. Facebook is set to unveil its IPO pricing today ahead of its Nasdaq debut tomorrow, when the share price is expected to balloon.
Mark Zuckerberg will control 55.8 per cent of Facebook, down from 57.3 per cent.
Hague told UK firms are trying to boost jobs BY JAMES WATERSON
GETTY
BY LAUREN DAVIDSON
3
JP Morgan, headed by Jamie Dimon, has been accused of excessive risk-taking
JP Morgan hit by two investor lawsuits over $2bn trading loss BY KATIE HOPE JP MORGAN has been hit by two separate lawsuits from shareholders accusing it of excessive risk-taking following last week’s revelation of a $2bn trading loss due to a “failed hedge strategy”. Jamie Dimon, JP Morgan’s chairman and chief executive, and Douglas Braunstein, the bank’s finance director, are accused of breaching fiduciary duty to investors and wasting corporate assets in a suit filed in New York by Californian shareholder James Baker. In a second lawsuit filed by
asset management firm Saratoga, the firm is accused of making “materially false and misleading statements and omissions” about the trades when asked about them by analysts in April. At the time, Dimon described them as a “tempest in a teapot.” “Defendants misrepresented the losses and risk of loss to the company,” the complaint said. The lawsuits were filed as it emerged that the bank’s asset management division had been betting against the position taken by its chief investment office, exacerbating the $2bn loss. JP Morgan declined to comment.
WILLIAM Hague was told last night that businesses are doing all they can to grow the economy – and do not need the government to “crack the whip”. Sir Roger Carr, president of the CBI, told guests at the organisation’s annual dinner that “there are no whinging businessmen here” only “engaged and positive people advocating a more constructive approach to solving the nation’s greatest challenge – growth”. The foreign secretary was criticised this week for saying firms should stop “complaining” and that “There’s only one growth strategy: work hard”. But Carr said businesses were doing their best to grow the economy, even though they needed the government to implement more business-friendly policies. Outlining several “hard truths”, he said there is a need to fight the “sense of entitlement at all levels” and fix an education system that “is failing young people and failing the country as a whole”. “We have to earn our way in the world, be smart enough to know what we are good at, brave enough to reach out to new markets, bright enough to develop new products, and driven enough to beat the competition,” he added.
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cityam.com
THURSDAY 17 MAY 2012
NEWS
EU consumers cut back on cars INFLATION stayed high in the Eurozone in April, official figures showed yesterday, while manufacturing took a blow from plummeting car registrations. Consumer prices rose 2.6 per cent in the Eurozone in the year to April, according to Eurostat. The figure is down slightly on the 2.7 per cent in the previous month, but still well above the European Central Bank’s two per cent target, limiting the Bank’s ability to stimulate growth. Meanwhile new passenger car registrations in the EU fell to 1.02m in April, the European Automobile Manufacturers’
Association reported – a 6.9 per cent drop on the year. Nissan reported a fall in sales of 21.1 per cent in the month, while Renault saw a drop of 17.1 per cent. However, the currency union did increase exports in the first quarter, providing an additional source of economic growth – the trade in goods balance rose to €8.6bn (£6.87bn) in March, up from €1bn in the same month of 2011. A four per cent rise in exports was largely responsible, and now stands at €164.9bn – though economists warned demand from key market China could be shaky in coming months. “While Eurozone export growth is predicated upon more than
exports to China alone, nonetheless these global developments do suggest that the outlook for euro area exporters is likely to be cautious until global demand reaccelerates,” warned Barclays’ Julian Callow.
N ew passenger car registrations in the E U 10 8 6 4 2 0 -2 -4 -6 -8 -10
% change year-on-year
BY TIM WALLACE
New Greek PM greeted by fear over ECB funds BY JULIET SAMUEL AND JULIAN HARRIS
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A CHANGE to the liquidity support offered to Greek banks by Brussels prompted more worries over the future of the Eurozone yesterday, while the troubled Mediterranean state announced that its emergency government would be headed up by a judge until fresh elections on 17 June. Greek President Karolos Papoulias named council of state head Panagiotis Pikrammenos as caretaker prime minister. It is feared that he will be replaced by a far-left antibailout leader next month, with polls showing that pro-bailout parties are increasingly set for a hammering. Investor concerns over the likelihood of Greece crashing out of the single currency areas are escalating the political turmoil. And markets were spooked further yesterday by reports that the ECB was switching Greek banks from one liquidity scheme to another, mistaking the move for the cuttingoff of funds to the country’s lenders. The confusion arose because the banks have run out of collateral that is eligible for the Bank’s normal liquidity provision, forcing
CITYVIEWS EDUARDO DE SOUZA COMMERZBANK
JOHN FARNSWORTH NOBLE
ANDREW THOROGOOD METDIST
them to switch to the Emergency Liquidity Assistance programme (ELA), until the Eurozone bank bailout capital that was agreed in March arrives. The ELA has lower standards for collateral but requires more of it in return for funds. Once the €48bn in capital, which takes the form of bonds issued by the European Financial Stability Facility, is handed over to the banks, they will switch back to the ECB’s normal liquidity scheme. However, the incident highlighted the fragility of the Greek banking system and their heavy reliance on help from Frankfurt. The euro traded near break-even and banks dragged down Europe’s top shares to close lower in choppy trade on worries over the stability of the Eurozone. “People are waiting to see what will happen with Europe; the line in the sand for taking some kind of action is getting closer,” said Reed Choate, of Neville, Rodie & Shaw in New York. Choate said efforts by German Chancellor Angela Merkel and new French President Francois Hollande to quell talk of a possible Greek exit from the euro were positive, but the reported withdrawal of ECB funding still weighed on markets.
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DO YOU THINK GREECE WILL LEAVE THE EUROZONE? Interviews by James Waterson No. I think politicians will stand up and there’s still a solution. There have been some steps made already by Merkel and Hollande and there’s a possibility for Greek politicians to agree on something.
Probably. The Greeks want to stay in but they don’t want the austerity measures. I think contingency plans are being worked on. I’d guess eventually the Greeks will leave and perhaps a couple of others. Yes. The country’s bankrupt and they can’t carry on the way they are. The only way they could save it is if they get a coalition together and agree to the austerity measures and that’s not going to happen.
These views are those of the individuals below and not necessarily those of their company
Spain to calculate property exposure as auction looms BY KATIE HOPE THE Spanish government is today expected to appoint independent firms to assess the true valuation of its real-estate exposure in a lastditch bid to address concerns over the health of its banking sector. Oliver Wyman and BlackRock will compare the book value of loans to their market value as well as their potential value if the real estate market falls further, according to the FT. The appointments come ahead of fears over the success of today’s auction, where the Spanish Treasury aims to sell between €1.5bn and €2.5bn of sovereign bonds expiring in 2015 and 2016. The risk premium investors
demand to hold Spanish over German debt rose over 500 basis points yesterday. And Prime Minister Mariano Rajoy warned that the Treasury faced trouble financing itself at a reasonable rate following the recent spike in yields. World Bank president Robert Zoellick said yesterday a decision by Greece to leave Europe’s common currency zone could have a similar impact to Lehman Brothers’ 2008 collapse. “The core question will be not Greece, but Spain and Italy,” he said. “Where the danger comes in is when events come and they start to affect confidence and you get illiquidity moments, and illiquidity moments start to mean something begins to tumble, whether it’s companies or banks,” he said.
cityam.com
THURSDAY 17 MAY 2012
Winning formula of a high street chemist BOTTOM W LINE HEN I was growing up in south east London in the 1990s, there was very little in the way of decent shops on the nearby Penge high street. The proliferation of betting and pound shops, which would eventually blight most shopping precincts, was already well-advanced. There were just a few of the chains that you would find in more prosperous areas: a Clinton cards; a Woolworths; and a Boots. Now there is only one. Indeed Boots has hardly closed any stores during what has been a truly disastrous downturn for retailers. Last year, likefor-like sales at UK Boots stores open for a year or more fell by 1.1 per cent, but the talk at yesterday’s press conference with executive chairman
DAVID CROW Stefano Pessina was all of expansion. So what is the secret? Well, it certainly isn’t the revenue Boots makes by dispensing prescriptions, which fell by 1.6 per cent last year even as volumes jumped by 1.9 per cent. The government has cut the subsidy it gives to pharmacies while the replacement of branded drugs with cheaper generic ones – a byproduct of the patent cliff that
Alliance Boots chair: UK is not pro-business BY KASMIRA JEFFORD ALLIANCE BOOTS’ executive chairman yesterday praised the coalition’s “friendly” attitude to business but warned that broader “anti-business” public environment could drive companies away. The drugs company and owner of Boots the chemist, moved its headquarters to Switzerland shortly after Stefano Pessina and private equity firm Kohlberg Kravis Roberts took the group private in in 2007 for £11bn. It came under fire from protest groups such as UK Uncut last year for avoiding tax in the UK. Pessina said he welcomed the government’s move to cut corporation tax but said: “My only regret is that the atmosphere in the UK is becomi n g antibusiness.
“This is not a good thing, because investment means jobs and that’s what we need in this country,” he said, adding that the company had invested over £1bn in the UK over the past five years. “There are countries where we have not invested £1 for 10 years or more”, he said. His comments came as the group said trading profits jumped 12.4 per cent to £1.2bn in the year to 31 March on sales up 18.4 per cent to £23bn. The pharmaceutical wholesale division, which supplies medicines to more than 160,000 pharmacies and hospitals in 21 countries, saw revenue rise by 27.9 per cent on the back of acquisitions in Turkey, Germany. Trading profit at Boots UK, which has 2,500 sites, rose by 5.2 per cent to £750m, boosted by a strong performance across its beauty and toiletry division. But the continued squeeze in consumer spending and the government’s decision to cut the amount it reimburses for medicines caused likefor-like sales to fall 1.1 per cent.
Stefano Pessina said his firm invests in lower-taxed areas
John Lewis ups Matalan posts sales outlook solid results BY CITY A.M. REPORTER JOHN Lewis, the UK’s biggest department store, yesterday raised sales guidance after outperforming a flat retail market in its first quarter and said the economy is on course for a slow recovery, despite a recent dip back into recession. In the quarter to 28 April the group saw sales growth of 12.2 per cent, equal to like-for-like growth of about seven per cent, well above the flattish overall market.
BY KASMIRA JEFFORD BUDGET fashion and homeware retailer Matalan defied the retail gloom to post a 1.9 per cent rise in full year sales to £1.1bn. The company said despite “solid” results, margins were hit by discounting, VAT increases, and its decision not to pass on higher input prices to customers. Earnings before interest, tax, depreciation and amortisation of £91.1m compared with £153.6m last year.
has big pharma in such a panic – has also pushed down revenues. Nor is it the sale of non-prescription drugs for coughs and colds, which dropped last year thanks to a relatively dry winter. Despite its best efforts to punt remedies for more modern ailments such as stress and insomnia, like-for-like sales in retail health fell by 2.4 per cent. It was an incredibly strong performance in its beauty and toiletries arm that saved the year; if it weren’t for a 2.2 per cent jump in like-for-like sales here, Boots’ overall performance would have been much worse. And it is this division, rather than prescriptions or paracetamol, that is a true yard-stick of how good a retailer Boots is.
Part of the reason is that toiletries are a pretty resilient category; things might be tough but most people haven’t got to the point where they’re willing to go without deodorant and shampoo. That is only part of the answer though. Boots has stiff competition in the form of the supermarkets for pretty much everything it sells, from nappies to lipstick. Rather it is the combination of a major draw in the form of a dispensing chemist, a resilient product category, and some very good retailing that has kept a Boots on every high street. It’s just a shame it is so lonely these days. [email protected] Follow me on Twitter: @davidcrow83
NEWS
7
Clintons set to shut 350 shops BY LAUREN DAVIDSON CLINTON Cards will close 350 stores across the UK, leading to the loss of 2,800 jobs, administrators Zolfo Cooper revealed yesterday. The high street retailer entered administration on 9 May after defaulting on loan repayments. Zolfo Cooper yesterday said Clinton Cards is “burdened with an untenable retail estate” and 350 of its 784 stores nationwide will “regrettably” close. The scheme, which will hit all of the Birthdays stores and about 200 shops under the Clinton brand, will begin closing next week and continue into June.
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cityam.com
THURSDAY 17 MAY 2012
NEWS
9
PROFILE: BROKERS AT WAR AUGUST 2008
JANUARY 2009
Verrier starts work for BGC as executive managing director and general manager, with duties including recruitment
conspired to induce breaches of contract. Verrier “lost or disposed” of eight blackberries, some of which contained “inconvenient material”, according to Mr Justice Jack.
SEPTEMBER 2008
FEBRUARY 2009
FEBRUARY 2011
Tony Verrier tells Tullett Prebon he is resigning as chief operating officer in order to join rival BGC Partners. Tullett begins legal proceedings against Verrier in an attempt to prevent him working for BGC until the following summer.
NOVEMBER 2008
Verrier agrees not to start work for BGC until January 2009.
DECEMBER 2008
Verrier arranges to have dinner with an unnamed person from Tullett. The meeting is later ruled to be “plainly part of the recruitment exercise”.
13 Tullett staff tell the firm they have agreed to jump ship to BGC when allowed to do so by their existing contracts. Three staff later decide to remain in their positions.
MARCH 2009
Tullett serves legal papers on BGC. Soon after 10 of the 13 Tullett staff claim they have suffered constructive dismissal and say they would join BGC as soon as possible.
MARCH 2010
High Court judge rules that Verrier and others
Court of Appeal dismisses appeal by BGC and says the original ruling was “meticulous”.
FEBRUARY AND MARCH 2012
Verrier tells the FSA he poses no risk to UK market confidence, his actions did not break criminal law and it would be “unjust” to base an order on a judge’s ruling.
MAY 2012
FSA bans Verrier and says he is not a “fit and proper person”. He says he will take an appeal to the Upper Tribunal.
Tony Verrier is now believed to be working abroad for BGC Partners
Broker Verrier banned after poaching saga BY PETER EDWARDS THE City regulator has stepped up its war on directors by banning a top broker after he was savaged in a High Court poaching trial. Tony Verrier, a senior executive at BGC Partners, faces a lifetime ban from working in the City after the Financial Services Authority said he “was not a fit and proper person due to concerns over his “honesty, integrity and reputation”, The ruling follows a high profile trial which found Verrier, dubbed the “pied piper”, poached 10 staff from rival and former employer Tullett Prebon and then evaded the truth “with equanimity and adroitness” in his evidence. Verrier, 48, contests the FSA’s decision and will appeal at independent judicial body the Upper Tribunal. The origins of the case go back to August 2008 when Verrier, a protégé of Tullett boss Terry Smith, told the firm he was leaving to go to work for BGC. Days later he told Tullett that he considered he had been constructively dismissed, and Tullett took him to
court. In 2010, however, the High Court ruled that BGC, its president Shaun Lynn and Verrier, had conspired to induce 10 Tullett brokers to defect. “Verrier stuck to the truth where he was able to, but departed from it with equanimity and adroitness where the truth was inconvenient,” said Mr Justice Jack at the time. Verrier was also found to have “lost or disposed of eight blackberries” to cover his tracks in the twelve months he was trying to poach Tullett brokers. BGC failed in an appeal early last year. It settled with Tullett in a separate hearing last April. Tracey McDermott, FSA acting director of enforcement and financial crime, said yesterday: “In light of the High Court’s findings about Verrier’s conduct, we have concluded that he is not fit and proper to be in the UK financial services industry.” The FSA register shows Verrier was de-listed in the UK in September. Sources said he was now working for BGC overseas. The firm did not return calls and Tullett declined to comment.
Takeover target London Metal Exchange reports falling profits BY CITY A.M. REPORTER PROFITS at the London Metal Exchange (LME) fell 19 per cent last year, as higher costs and investments outweighed a sharp rise in trading volumes. The results come as three major exchanges – CME Group, Hong Kong Exchanges and Clearing Limited, and Intercontinental Exchange – compete to buy the LME, the world’s largest metals marketplace. The exchange has been independently valued at £1bn. The exchange disclosed it would
pay Moelis & Co, its financial adviser, a £3.5m fee plus 0.5-0.7 per cent of the valuation of the exchange if it is sold. According to figures in the LME’s annual report, revealed by the Financial Times, revenues at the LME rose by a fifth last year. That was on the back of a 22 per cent increase in trading volumes in its contracts, which serve as global benchmarks for metals such as copper, aluminium and zinc, but net profit fell from £9.5m to £7.7m on the back of higher costs.
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cityam.com
THURSDAY 17 MAY 2012
Dutch bank ABN AMRO warns bad loans will continue to rise NATIONALISED Dutch lender ABN AMRO reported a 16 per cent drop in net profit to €454m (£363m), hit by a rise in losses on bad loans due to the ongoing recession in its home market. It was a significant improvement on the €23m loss seen in the fourth quarter of last year, when all banks were hit by a Eurozone credit crunch. But ABN AMRO chairman Gerrit Zalm warned that the recovery
could be short-lived: “As the business environment we operate in is still unstable, these first-quarter results cannot be extrapolated for the remainder of the year,” he said. Instead, the bank expects impairments to continue to rise as they did in the first quarter of this year. The bank has lost €187m on bad loans so far this year, 50 per cent more than during the first quarter of last year. But despite a deterioration in Dutch house prices, mortgage impairments were relatively stable.
Spencer: Icap ready if Greece leaves the euro BY PETER EDWARDS ICAP chief executive Michael Spencer said yesterday the broker could be ready to trade in drachmas within days and predicted other nations could follow Greece out of the euro. Spencer said Icap – which posted a small drop in annual profits – is “hypothetically” ready for a return to the drachma “next week” if Greece finally leaves the Eurozone. “I don’t it will happen next week but I think it will happen. Inclusion of Greece in the euro project was a profound error and... there are other countries that will need to be shed. “Greek exit is inevitable and I believe it will be a good thing for Greece in the long-run.” Icap, which works in the bond, foreign exchange and swaps market, posted a seven per cent fall in pre-tax profits to £217m for the year to 31 March and net profit fell 27 per cent to £137m, although it posted a four per cent rise in operating profit at its electronic business to a record £127m.
Total revenue fell three per cent to £1.68bn, as trading levels were down across the group, with credit and rates hardest hit, but operating costs were reduced by four per cent to £1.31bn. Icap has joined rivals, such as Tullett Prebon, by cutting costs. It made £20m of savings over the year, through cutting jobs, overheads and IT, and will cut a further £50m by the end of March 2014 through savings mainly in procurement and IT. The workforce increased by 200 to 5,100 in the year to 31 March.
355 p 345
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increased shareholder responsibility ... for example ... mandatory shareholder vote on remuneration,” Barnier said. International regulators have already acted to try to restrain bonus payouts at banks, many of which were bailed out by taxpayers after the financial crisis. And shareholders in Britain and the US have recently got more rebellious and voted down large pay deals for bosses because of poor performance. Barnier, who has also campaigned for bonus curbs, said shareholders should be given the power to impose such limits.
BY CITY A.M. REPORTER SHAREHOLDERS should have the power to curb bosses’ pay and set caps on executive bonuses, the EU’s top regulatory official said yesterday, adding to pressure on banks and companies over excessive management pay deals. The plan from Michel Barnier, the European Commissioner in charge of regulation, could pave the way for a pan-EU law next year that would give investors legal clout to take on Europe’s executive elite over pay. “For all listed companies, I support transparency and
IN BRIEF CCS funding attracts 16 bidders
At least 16 companies are interested
Icap boss Michael Spencer said activity in April and early May was slow
ANALYST VIEWS
Interviews by Peter Edwards
HOW IS THE TRADING SLUMP AFFECTING BROKER ICAP?
NESE GUNER CITI
“ “ “
We expect downgrades to consensus full year 2013 revenue forecasts given the slow start to the year and the possibility of a slow summer. Currently the consensus range for 2013 revenues is wide: £1.64bn to £1.84bn.
JAMES HAMILTON NUMIS
IC A P PL C 350
Instead, the rising losses stemmed from commercial real estate and consumer loans. Zalm also warned against the government raising its banking levy – Holland is one of the few EU countries other than the UK to have imposed an extra tax just for banks. “A real concern for the Dutch banking sector is the recent proposal to raise the bank tax further,” he said, saying that along with an avalanche of other regulations, it will make Dutch banks much less competitive.
11
EU’s Barnier pushes for binding shareholder vote on pay deals
LAURA LEAN/CITY AM
BY JULIET SAMUEL
NEWS
” ” ”
We believe the time to buy Icap is when there is the prospect of higher interest rates in the US... While many believe the banks have restricted their trading activities as much as they are going to we do not believe this.
DANIEL GARROD BARCAP
An in line headline set of full year 2012 results but the mix is more positive than expected. There is good detail on future cost takeout and the dividend is raised 10 per cent year on year equating to a yield of 6.6 per cent.
in participating in Britain's £1bn competition to fund one or more carbon capture and storage (CCS) projects, the government said yesterday, hoping to encourage competitors to link projects together. Companies including Shell, National Grid and Centrica have signalled an intention to apply for funding but the government does not expect all registered bidders to make a full application by 3 July.
Arden Partners sees better trading Stockbroker Arden Partners said
yesterday that trading in the first half had been better than anticipated, and that its revenues and profit were ahead of budgets. Since the end of last year Arden has added 34 brokerships, taking the average market cap of its clients to £195m.
Venture capital deal flow falls
Venture capital deals saw a brief
resurgence in 2011 compared to the previous year, according to data from Preqin, but have slowed since the start of 2012. The data provider said the aggregate value of venture capital deals increased by 42 per cent between 2010 and 2011, from $33.7bn to $48bn, but had dropped back by five per cent in the first quarter of this year. Europe’s share of deals has fallen between 2010 and 2012 to date, accounting for 22 per cent of all deals in 2010, 18 per cent in 2011 and 19 per cent of completed deals in the year to date.
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THURSDAY 17 MAY 2012
12
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Boisdale celebrates a decade
Lord Lamont (above) with Boisdale member Georgina Thorburn and Boisdale managing director (below) Ranald Macdonald
IT was a case of glasses of Boisdale claret all round the other evening as the clubbable Scottish restaurant celebrated 10 years at Bishopsgate by throwing a party for its members and regulars. Guest of honour was former chancellor Lord Lamont, who shared his recollections of life at 11 Downing Street. Lamont was introduced to the guests as “the most effective but also the bravest chancellor since the war.” Boisdale of Bishopsgate has long been considered by many as the flagship culinary Boisdale experience in London, even as the group has grown. Head chef Neil Churchill has won countless awards for his innovation and expertise over the last seven years and this dinner reflected his passion for the best Scottish ingredients – naturally a haggis Scotch egg was on the menu – as well as his considerable skills as one of London’s finest chefs. Piper Major Willie Cochrane played the pipes on the night and entertained guests after the speeches with
some haunting Highland melodies. Lord Lamont related that, when negotiating Britain’s non-participation in the euro at Maastricht, he was met with hostility and condescension by his continental colleagues in government. He remembers fondly the Greek finance minister putting his arm around his shoulders, giving him a squeeze and saying, “You say you don’t believe in the euro, but when the time comes you will join.”
Dig for victory with StanChart While the government flounders around in search of any “green shoots” of a recovery, some in the City were getting down to business in a more practical manner. Standard Chartered’s head of Europe, the Middle East and Africa Richard Holmes yesterday led a gaggle of bankers over to Roehampton for a volunteering day, one of three per year the bank pays its staff to take. The team spent the day working on a new garden for the Thomas Pocklington Trust, which helps people live with
blindness, a fitting cause for a bank that has raised $44m for Seeing is Believing, a charity that fights curable conditions that cause sight loss. The Capitalist caught up with Holmes just after he’d been rotated from the “digging weeds” shift into the “sawing railroad sleepers” unit. So which is his favourite? “Hmm… sawing,” said Holmes. “The sawing is gratifying when you finally saw through a sleeper – because we don’t have a chainsaw here.” Whoever says bankers don’t work for their bread?
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THURSDAY 17 MAY 2012
NEWS
13
US trading lifts Compass Greggs proposes alternative to Strong Group to first half rise in profits pasty tax as rain dampens sales BY CITY A.M REPORTER
BY KASMIRA JEFFORD GREGGS stepped up its attack on the government’s proposals to add VAT to all hot takeaway food, warning they would make a “material impact” on sales and profits at the chain, sending shares falling four per cent yesterday. Chief executive Sam McMeikan said a change in the VAT levy would have a “disproportionate impact on the specialist bakery sector” resulting in further unemployment and high street closures. He said the company will put
forward an alternative proposal to the Treasury that would see VAT charged on all food kept deliberately hot for sale after cooking or reheated to order, or kept warm in heatretaining packaging. The chain, which sells sandwiches, bread and pastries to six million customers a week, said sales at stores open more than a year fell 1.8 per cent in the 19 weeks to May, blaming the country’ s wettest April on record for the fall. Total sales rose 4.3 per cent, boosted by new store openings and the success of wholesaling frozen
products such as sausage rolls, that it is selling through supermarket chain Iceland.
Greggs PL C 500 p
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COMPASS Group, the world’s biggest caterer, posted a 7.7 per cent rise in first half profit yesterday, as strong trading in North America and emerging markets helped dampen the impact of challenging economic conditions in Europe. The group, which provides meals for the likes of office workers, soldiers and school children, said underlying pre-tax profit for the six months to 31 March was £572m. Revenue rose 8.6 per cent to £8.6bn, up from £7.9bn for the same period in 2011. Compass said organic revenue in
Land Securities hit by weaker office demand BY KASMIRA JEFFORD LAND SECURITIES, the UK’s biggest real estate investment trust, said turmoil in the Eurozone was continuing to dampen demand for office space in central London as it reported a fall in full-year profits. Rob Noel, who replaced Francis Salway as chief executive at the beginning of May, said uncertainty in Europe had “weighed heavily on business confidence” meaning firms were reluctant to move. Land Securities, which is co-building the Walkie Talkie skyscraper at 20 Fenchurch street, is understood to be close to signing its first two tenants, insurers Markel and Kiln. Noel said eight per cent of the building was now in solicitors’ hands and it was aiming to pre-let 200,000 sq ft of the tower during the year. In the year to March 2012, the developer saw pre-tax profits fall 58 per cent to £515.7m compared with
£1,227.3m the previous year while net asset value – a key industry measure of performance – rose 4.5 per cent to 863p a share. The value of the company’s portfolio increased two per cent to £10.3bn, with London offices and retail performing the strongest. But its shopping centre portfolio struggled, as values dropped 1.5 per cent and rents declined by 1.8 per due to ailing retailers going into administration.
L and Se curities Group PL C 760 p 750
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its core North American region grew by seven per cent supported by growing outsourcing trends in healthcare and education sectors. Revenues grew 12.4 per cent in its emerging markets unit, helped by a strong resources sector in Australia, where it provides food, accommodation and cleaning services to mining firm Rio Tinto. “Looking forward, whilst we are not immune from the current economic difficulties in Europe, the fundamentals of the business are strong and I remain excited about the opportunities for future growth and margin progression,” chief executive Richard Cousins said.
Housebuilder Bovis expects better margins BY CITY A.M. REPORTER
Tony Pidgeley’s property company will buy the former News International headquarters
Berkeley Group pays £150m for Murdoch’s Fortress Wapping BY LAUREN DAVIDSON AND KASMIRA JEFFORD THE FORMER headquarters of News International, based in East London, has been snapped up by Berkeley Group. A source close to the deal told City A.M. that the Wapping site was sold for around £150m. Fortress Wapping, so called when Rupert Murdoch defeated unions and moved away from Fleet Street, was bought by Murdoch in the mid-1980s for £300,000. The 15-acre plot was put on sale last September after the closure of
The News of the World. News International had previously been planning to redevelop the site. The Times, The Sunday Times and The Sun have since moved to the adjacent 550,000 square feet site at Thomas More Square, owned by Land Securities. While Barratt Developments and Cooper Group expressed their interests last year, property tycoon Tony Pidgeley lodged a bid in early April and his company Berkeley has since successfully secured the bid for one of London’s largest property plots on the market.
BOVIS Homes said yesterday it expects strong profit growth this year helped by higher average sales prices and improved profit margins, and sees conditions in the UK house building market remaining stable. The company reported 783 private net reservations in the 19 weeks to 11 May, a 33 per cent increase over last year, with sales prices achieved on reservations to date modestly above management’s expectations. “The mix of homes has improved and the group expects the average sales price in the half-year results to be ahead of the comparative period of 2011,” Bovis said in a statement. Profits are expected to grow significantly, benefiting from a greater number of active sales outlets and stronger sales rates, a higher average sales price as homes in the south become a bigger part of the mix, and better margins from an increased contribution from sites acquired since the housing market downturn, Bovis said. Last week rival Barratt said it had enjoyed the best spring selling season in five years, helped by its focus on more buoyant sections of Britain’s weak property market and government initiatives to prop it up.
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THURSDAY 17 MAY 2012
US corporate results round-up Deere & Co ups oulook
Target raises forecasts
Staples disappoints
DEERE & Co posted higher quarterly earnings and sales that topped estimates, and raised its full-year profit outlook yesterday on rising global demand for farm equipment. The US farm sector is booming on higher worldwide food demand and as biofuels help drive up crop production. Companies like Deere are benefiting from record-high farm income that is spurring farmers to update their equipment. The world’s largest farm equipment maker said fiscal second-quarter net income rose to $1.056bn (£627m), or $2.61 per share, from $904.3m, or $2.12 a share, a year ago. The results topped expectations of $2.53 per share. The firm also raised its forecast for net income to $3.35bn from $3.275bn for 2012.
TARGET raised its annual forecast after posting a biggerthan-expected rise in quarterly profit yesterday despite spending more on opening stores in Canada, and having concerns about US shoppers’ ability to spend. The discount chain expects economic uncertainty to continue for the rest of 2012, chairman and chief executive Gregg Steinhafel said. Target earned $697m (£437m), or $1.04 per share, in the first quarter that ended in April, up from $689m, or 99 cents per share, a year earlier. Target said it expects sales at stores open at least a year, or same-store sales, to rise about three per cent this quarter and three per cent or a little more for the full year. Some of the firstquarter strength came from warmer weather, which spurred clothing sales.
STAPLES, the office supply chain, reported lower-thanexpected quarterly sales yesterday, hurt by weakness in markets such as Europe and Australia. The company kept its 2012 outlook. Staples said it expects full-year sales to rise in the low single-digits, with earnings per share rising in the high single-digits from $1.37 last year. First-quarter net income fell to $187.1m (£117m), or 27 cents per share, from $198.2m, or 28 cents per share, a year ago. Total sales fell marginally to $6.1bn, missing analysts’ expectations of $6.18bn. Sales at Staples’ international business, which makes up about 20 per cent of the company’s revenue, fell eight per cent, as same-store sales in Europe declined by six per cent, said the firm.
Weak sales in Europe for Abercrombie & Fitch
PA
NEWS
ABERCROMBIE & Fitch yesterday posted a sharp drop in profit pressured in part by weak sales in Europe. For the first quarter ended 28 April, Abercrombie earned $3.0m compared with $25.1m a year earlier. Same-store sales fell five per cent in the quarter.
Outsourcer Xchanging says trading is stable but a quarter of investors reject pay deal BY JAMES WATERSON
▲ ▲
THEFORUM
OUTSOURCING firm Xchanging yesterday said that trading in the first four months of the year was in line with expectations – but there were rumblings of shareholder discontent as a quarter of investors voted against the remuneration report at the firm’s AGM. Some 24.7 per cent of votes cast
JOIN THE DEBATE SEE PAGES 24-25
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were against the pay deal, which will see £1.45m shared by three directors for the year ending 2011. “We have seen a steady start to the year as we pursue our agenda of building the foundations for growth,” said CEO Ken Lever. “Our objectives in 2012 are to demonstrate that we can compete to win in our chosen markets and to achieve year-on-year improvement in financial performance.”
The firm has seen its share price grow by over 60 per cent since December but yesterday analysts at Seymour Pierce cut their rating to “sell” from “hold”, on the basis that the firm was trading at a prospective price-toearnings ratio of 11.8, which it said was “steep for a company which still has a lot to prove”. Shares in the firm closed yesterday off 2.6 per cent.
London to Paris on & off-road Category: Overseas on or off-road bike ride Location: London to Palace of Versailles, France Date:
Off-road 30 June to 2 July 2012 and On-road 1 September- 3 September 2012
For more information call 0808 100 2109 or email [email protected] or visit bhf.org.uk/l2p
©British Heart Foundation 2012, registered charity in England and Wales (225971) and in Scotland (SC039426)
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THURSDAY 17 MAY 2012
Pearson grows testing service with Certiport PEARSON yesterday announced it has purchased Certiport, which provides testing and certification services for leading IT companies, for $140m (£87.6m) in cash from Spire Capital Partners. Pearson, which owns the world’s biggest education business as well as the Financial Times and Penguin Books, said the move would expand the product range and geographical reach of its professional testing business. US-based Certiport makes more than 60 per cent of its revenues outside North America and is particularly strong in Asia and the Middle East, in line with Pearson’s strategy of expansion in emerging markets. Its top customers include Microsoft, Adobe and Hewlett-Packard, and it has a network of 12,000 testing cen-
RICHEMONT BOSS SLAMS EUROPE AS ASIA BOOMS
Coty selects banks for planned IPO n Beauty company Coty has selected Bank of America Merrill Lynch and JPMorgan Chase & Co to be the lead underwriters for a planned initial public offering this autumn, a source close to the deal said last night. The IPO would value Coty at more than $7bn, the source said, adding that the company would file its S-1 prospectus “soon.” Coty declined to comment, as did Bank of America and JPMorgan.
Yell continues brand transition
n Yell Group, the struggling publisher of the Yellow Pages, yesterday announced the acquisition of Moonfruit, an online shop and website builder. The £18m purchase is the latest step in Yell’s efforts to rebrand itself as a digital services provider. Moonfruit.com, valued at £4.8m, has created nearly five million websites and 230,000 online shops.
tres in more than 150 countries. Pearson administers millions of tests each year for the private and public sectors in areas ranging from construction to mathematics. The business is a key driver of its professional education unit, which increased its sales by 15 per cent to £382m last year, representing an estimated seven per cent of Pearson’s group sales.
Pearson PL C 1,175 p 1,170 1,165 1,160 1,155 1,150 1,145 1,140
C&C cautious on Olympic boost n Irish cider-maker C&C is uncertain
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EUROPE risks becoming little more than a tourist attraction for wealthy Chinese if it does not reform, the head of luxury goods group Richemont said yesterday as booming Asian demand helped offset weakness in Europe. “A few years ago, I said if people do not watch it Europe will become an open-air museum for travelling Chinese. Well, we are halfway there,” said Johann Rupert, as net profit for the year to 31 March rose 43 per cent to €1.54bn.
whether a sales boost from this summer's Olympics and European football championships will be enough to grow its bottom line this year, its chief executive said yesterday. C&C, which sells cider under the Magners and Bulmers brands, posted a nine per cent rise in operating profit to €111m (£88.45m) for the year to February.
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REUTERS
BY HARRY BANKS
NEWS
“The prestige of Imperial College means that gaining a degree from the Business School will allow me to flourish internationally.” Gunyawee Teekathananont, current Imperial College Business School student
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THURSDAY 17 MAY 2012
NEWS
BHP warns of cooling market in commodities BHP BILLITON said yesterday it expects commodity markets to cool further and that investors have lost confidence in the longer-term health of the global economy, in the most cautious comments yet from the world’s biggest miner. BHP also put the brakes on a plan announced by chief executive Marius Kloppers in 2011 to spend $80bn (£50.2bn) over five years to expand its iron ore, coal, energy and base metals divisions, banking on continuing high demand from its main market, China. “It is all about appropriate allocation of capital. When Marius (Kloppers) talked about the $80bn, the environment was different,” chairman Jacques Nasser said yesterday. “We should pause, take a deep breath and wait and see where the pieces fall around the world,” he said, stopping short of announcing a spending cut. The company was re-thinking its expansion plans “every day,” he said.
Asked if BHP would spend $80bn over five years, he replied: “No.” BHP made close to $10bn in firsthalf profit before exceptional items. That was largely due to BHP’s profitable iron ore business, a strength that it shares with its main rival, Rio Tinto, which unveiled a $3.4bn expansion of its Australian iron ore mines in February. Outside of iron ore, Nasser said plans to invest billions of dollars beefing up the company’s Olympic Dam copper and uranium mine in Australia were still subject to a board decision later this year.
BHP Bi lliton PL C 1,880 1,860 1,840 1,820 1,800 1,780 1,760 1,740 1,720
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Production soaring at Soco Soco International said yesterday that oil and gas production for the first quarter was soaring, averaging 11,690 barrels of oil equivalent per day (boepd). The total is three-and-a-half times higher than the amount produced in the same period last year. The company also said production at Te Giac Trang in Vietnam would begin ahead of schedule and ramp up to around 55,000 barrels of oil per day.
Total stops North Sea gas leak
GETTY
BY HARRY BANKS
IN BRIEF
The deal will help E.ON meet its goal of selling assets worth €15bn by the end of 2013
E.ON sells European gas grid to Macquarie-led group for £2.6bn BY CITY A.M. REPORTER E.ON, Germany’s largest utility, said yesterday it has sold its Open Grid Europe gas distribution network to a consortium led by Australian bank Macquarie for €3.2bn (£2.6bn), raising cash to pay down debt and fund expansion. The deal brings E.ON’s tally of divestments to more than €12bn, well on its way toward its goal of selling assets worth €15bn by the end of 2013 to help offset the impact of Germany’s nuclear exit. "With this deal E.ON is able to
deleverage further without the loss of high earnings,” DZ Bank analyst Hasim Senguel said, adding the price was almost a third above expectations. The consortium that won the bid comprises Macquarie’s European Infrastructure Fund 4, Infinity Investments, British Columbia Investment Management Corporation (bcIMC) and Munich Re’s asset management unit MEAG. Macquarie was advised on the deal by Macquarie Capital and the Royal Bank of Canada.
Total has succeeded in plugging a well from its North Sea Elgin platform that has been leaking gas for more than seven weeks, the French oil group said yesterday. The leak, 240km off the coast of Scotland, has been costing Total around $3m a day in relief operations and lost net income.
Interserve sees boost from Asia
Interserve said yesterday that rising demand for equipment services in Australia and Asia was helping to balance out pressure on its construction unit, combining to give a stable outlook for 2012. The company said it had won £600m of work in the year to date.
Miner NWR surprises with profit
Coal miner New World Resources (NWR) yesterday posted a more than 80 per cent rise in first-quarter net profit due to lower financial expenses, improved cost controls and a better product mix, surprising analysts who had expected a loss. Net profit rose to €6.2m (£4.9m) but revenue dropped 10 per cent year-on-year to €346.6m.
cityam.com
THURSDAY 17 MAY 2012
Samsung value drops $10bn on fear Apple has picked rival chip BY JAMES WATERSON SAMSUNG saw $10bn (£6.3bn) wiped off its market capitalisation on Tuesday following suggestions that Apple has placed a huge order for memory chips with a rival. Shares in the South Korean electronics giant tumbled 6.2 per cent after Taiwanese site DigiTimes said Apple has bought half the capacity of a DRAM chip manufacturing plant operated by bankrupt Japanese firm Elpida. SK hynix, another South Korean DRAM manufacturer, also saw its share price drop by nine per cent.
“It looks like Apple doesn’t want to see Samsung and Hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running,” said Choi Do-yeon, an analyst at LIG Investment & Securities. There is a global over-supply of DRAM chips, partly due to changes in consumer purchasing habits. PCs use around four times as many such chips as Apple’s iPad – and the tablet computer’s success has hit sales of traditional machines, reducing demand. In recent years firms such as Elpida invested heavily to increase
Perform snaps up RunningBall for up to €120m BY ELIZABETH FOURNIER SPORTS MEDIA rights group Perform said yesterday it will pay up to €120m (£93m) in cash and shares to buy sports data company RunningBall, the largest acquisition it has made since floating last year. RunningBall produces real-time data coverage of sporting events – covering more than 35,000 events last year including over 30,000 football games around the world, by using a network of 1,100 scouts who key in information live from venues. It had revenue of €16.1m and made a pre-tax profit of €7.2m for 2011, up 20 per cent and 75 per cent respectively from the previous year. The Swiss-based company is still owned and run by its founder, IT entrepreneur Hans Thomas Gross. The deal was well received by Perform’s investors yesterday, sending the company’s shares up seven per cent. Analysts at Numis also applauded the deal, which is the latest in a series of acquisitions that Perform has made in recent months.
UBS
UBS acted as the sole sponsor to Perform on the sports media rights group’s acquisition of RunningBall, having helped the group as one of three bookrunners when it floated in April 2011. Following the listing the bank was appointed as one of Perform’s house brokers in June last year. Leading the team at UBS was Christian Lesueur, head of EMEA media and telecoms investment banking. Lesueur also led UBS’ work for Perform on its float, and just last month helped long-term client
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BY LAUREN DAVIDSON APPLE is said to have put in orders for the production of its next iPhone offering and changed the size of the device’s screen. Sources say the fifth generation iPhone will sport a four inch screen when measured diagonally from cover to cover, compared to the current 3.5 inch display. Early production of the popular smartphone has begun at three factories – Sharp, LG Display in Korea and
SUPERHERO BOX OFFICE BOOST FOR CINEWORLD
16 May
Vodafone secure its £1bn takeover of Cable & Wireless Worldwide with colleagues Simon Warshaw and Jonathan Rowley. He was also part of the squad that advised Verizon Wireless on its $28.1bn acquisition of regional carrier Alltel Wireless back in 2009, and last year helped worldwide satellite communications services firm Vizada with its €673m sale to Astrium – the aerospace subsidiary of EADS. Lesueur worked alongside a team from UBS comprising Jonathan Retter, Massimo Marinelli and Warren Stables. Morgan Stanley was joint broker with UBS on the deal, led by Andrew Foster – part of the team that recently pitched for and won a place on Tullow Oil’s panel after it parted company with its long-standing corporate brokers, Bank of America Merrill Lynch and RBS Hoare Govett.
Japan Display – meaning proper orders could be put in by Apple as soon as next month. The Cupertino-based company was recently pipped to top spot in the smartphone stakes by Samsung, according to the IDC. The Korea-based rival launched its latest Galaxy phone earlier this month, with a 4.8 inch display. Apple has not updated the physical design of its smartphone since the release of the iPhone 4 in 2010. Sales of the iPhone now account for around half of Apple’s total sales. The latest iPhone 4S was introduced in October last year.
Sepura buys Vienna-based 3T for £6.4m BY DAVID HELLIER
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Larger four inch screens set to feature on the iPhone 5 model
“We could not have designed a better business for Perform to have acquired. Of the five key elements in digital sports, Perform already has marketleading positions in four, while RunningBall adds the fifth,” said Paul Richards at Numis. Perform will pay an initial consideration of €20m cash and €50m in new Perform shares to Runningball, plus a deferred consideration of €31m-€50m depending on 2012 results. Perform raised less than expected when it floated last April, but has been raising its profile ever since, and earlier this month said it was track to deliver forecast revenue and profits.
MEET THE ADVISERS CHRISTIAN LESUEUR
capacity but were caught off-guard when demand dropped. Samsung met 53.8 per cent of DRAM demand at the end of 2011.
NEWS
CINEWORLD said yesterday that its revenue for the 19 weeks to 10 May was up 6.3 per cent due to higher box office sales. The UK’s only listed cinema chain also said it was confident that growth for the full-year would match market estimates. Box office revenue rose 8.6 per cent, boosted by big ticket releases such as The Avengers.
SEPURA, a company involved in the design, development and supply of digital radios, yesterday announced the acquisition of Vienna-based 3T Communications. The deal will cost Sepura initial cash consideration of €8m (£6.4m) with further contingent consideration of up to €5m payable dependent on 3T achieving certain targets over an earn-out period. 3T designs and implements small to mid size radio systems predominantly for the commercial sector, including enterprise customers such as Shell, RWE, Bayer and BMW. Based in Vienna, Austria, 3T generated revenues of €12m for the year ended 31 December 2011, with adjusted Ebitda of €1.3m and profit before tax of €0.4m. 3T’s current revenue is derived primarily from Europe, giving Sepura the opportunity to generate significant incremental revenue by offering 3T’s products through the company’s comprehensive worldwide routes to market. Sepura is backed by a team of investors headed by Henderson and Michael Sherwood of Goldman Sachs. House broker Investec believes the deal is a good one for Sepura, saying: “Overall this looks like a great deal for Sepura – it’s accretive, is on-strategy, provides new market access for both parties and will increase Sepura’s earnings quality.”
Betting firm Bwin.party ahead by a nose as revenues inch up BY JAMES WATERSON BETTING giant Bwin.party yesterday reported revenues of €215.9m (£172.5m) for the first quarter, up less than one per cent on the same period last year. Shares in the firm fell by five per cent after it said growth in online casino games has been partially offset by reduced margins in sports betting. “Trading performance overall in the first quarter has been as expected,” the firm said. “Casino has continued to perform well as has our sports business that saw strong growth in both player
activity and amounts wagered, albeit at a lower margin compared with last year which was particularly strong.” The Gibraltar-based online gambling company was formed last March following a merger between sports betting firm Bwin and casino specialist Party Gaming. Investors have yet to reap the benefits of this merger but the coCEOs said they “remain on-track to realise the €65m of merger synergies” which will help to “mitigate the impact of additional gaming taxes” that are due to come into force. Bwin.party has struggled with the
licensing situation in Germany but says it is set to win a license in the state of Schleswig Holstein, valid until 2018.
Bwin. Party Digital E ntertainm ent PL c 147.50 p 145.00 142.50 140.00 137.50 135.00 132.50
131.50 16 May
10 May 11 May 14 May 15 May 16 May
18
cityam.com
THURSDAY 17 MAY 2012
NEWS
BG and Ophir in new Tanzania gas discovery BRITISH gas firm BG Group and explorer Ophir Energy said yesterday they had found more gas off the coast of Tanzania, raising hopes that the East African country will become a major new gas province. The partners said that the discovery at the Mzia well will provide a substantial boost to their total estimate of how much gas they have found in Tanzania, helping prove there is volume enough to build a liquefied natural gas (LNG) export plant. “The success at Mzia-1 is a major step towards a Tanzanian LNG hub development in Block 1,” Ophir’s chief executive Nick Cooper said in a statement. Industry interest in East Africa has intensified in recent years
and the previously little-explored area is tipped to become a major natural gas producing region, exporting LNG to fast-growing energy-hungry countries in Asia. US explorer Anadarko Petroleum Corp said on Tuesday it had discovered a major new gas field off the coast of nearby Mozambique. The Mozambican fields have drawn oil major Shell to the area – it is in the process of trying to buy Britain’s Cove Energy, Anadarko’s partner in the country. BG and Ophir said they discovered the gas in a deeper geological zone than the previous finds that they’ve made in Tanzania, which added to their confidence that they would make additional finds. Mzia is the partnership’s fifth successful exploration well off the coast of Tanzania.
BY JOHN DUNNE
GETTY
BY HARRY BANKS
Tullow to step up its Guiana drill operation
The find has boosted hopes that Tanzania will become a major new gas province
GLOBAL BUSINESSES RECRUITING LONDON’S BEST PROFESSIONALS
Lamprell shares plunge after it warns over looming losses BY JOHN DUNNE
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OIL explorer Tullow yesterday said it was stepping up work on its Zaedyus discovery in French Guiana. The FTSE 100 company, which has a 17 per cent stake in the project, said a drill ship would start work next month, in a trading update covering 1 January to 16 May. An appraisal will be carried out first before full scale drilling begins. Shell has a 45 per cent stake and is the operator of the field which also has Northern Petroleum and Wessex Exploration with small stakes. Tullow said it expected the company’s overall daily oil production to be in the range of 7886,000 barrels for the full year. The company said net debt stood at around $500m (£313m). It added in a statement: “Tullow is confident that, having delivered industry-leading basin-opening exploration success already this year, and with key developments progressing well, the group will deliver further significant growth in 2012.”
OIL rig maker Lamprell yesterday saw its stock plummet after it warned that it was heading for a first half loss triggered by delays in obtaining key equipment. The bleak outlook sent investors running for cover with shares diving by more than 60 per cent after the emergency announcement. The blow came two weeks after the firm’s integration and development director Scott Doak sold 200,000 shares at 363.693p while vice president Kevin Isles sold 250,000 shares at 361.70p. FTSE 250-listed Lamprell blamed global problems in getting specialised machinery for the unexpected change in outlook which raised the alarm over falling revenues. Another problem highlighted by the company was the delivery
of two windfarm vessels to a project. Lamprell downgraded its profit margin expectation for 2012 to 3.5 per cent, which it said was considerably behind its original view, but added that it expected a recovery in profit in the second half of the year as the supply issues ease. It said in a statement: “It is anticipated that the delay in revenue generation together with the additional costs will result in the group incurring a small loss.” The downbeat outlook was in contrast to positive guidance outlined by the group six weeks ago in March, when it predicted continued growth. Analyst Keith Morris at Investec said full year profits are now likely to be around $38m (£23.8m) to $40m rather than a previous forecast of $117m. Oriel Securities analyst David Round said Lamprell appeared
to be downgrading 2012 expectations by around 60 per cent and added that he was putting his “buy” recommendation under review. The Group’s net debt at 14 May was $173m – representing an increase of $71m since the end of last year. It said it had an order book of $1.5bn up until the first quarter of 2015 and that its margins would recover by 2013. Lamprell’s shares closed 56.9 per cent lower at 127p.
L am prell PL C 350 p 300
127.00 16 May
250 200 150 100 10 May 11 May 14 May 15 May 16 May
Renewable energy output fuels SSE’s profit rise and offsets 20pc slump in retail division BY CITY A.M. REPORTER ENERGY giant SSE yesterday reported a two per cent rise in fullyear profit supported by higher renewable energy output which helped offset a drop in customer numbers and lower energy demand. The utility company’s adjusted profit for the year ended March 2012 came in at £1.34bn. It said operating profit at its wholesale business unit – which includes the production, storage and generation of energy – was
up 6.4 per cent, helped primarily by higher output of renewables from hydro and wind power. Total electricity output from all renewable resources rose 73 per cent during the year, reflecting extra generation capacity coming into operation and favourable weather conditions. But profits fell 20 per cent at the company’s retail business, which supplies electricity and gas to households and businesses, due to a dip in customer numbers as well as lower average consumption. “Higher wholesale gas prices,
falling demand for energy and a succession of winter storms presented major challenges for the wholesale, retail and networks parts of SSE,” the company said. SSE said total energy customer accounts fell by 100,000 during last year to 9.55m. Average gas use was down 19.9 per cent, while electricity consumption dropped 6.9 per cent, said SSE. SSE also warned of challenging markets in the UK and Ireland in the year ahead.
cityam.com
THURSDAY 17 MAY 2012
NEWS
World economy shows signs of improvement THE GLOBAL economic recovery is back on despite the Eurozone crisis, according to new survey data published yesterday. North America is expected to see economic growth of 2.4 per cent in the next year, according to the Ifo Institute’s world economic climate indicator, while Asia is set to return to its trend rate with GDP growth of four per cent. Expectations remain more muted in western Europe, with growth of 0.4 per cent, though respondents were less pessimistic about the outlook now than in the first quarter of 2012. The world economic climate index rose sharply from 82.4 to 95 on the quarter, close to the long-term average of 96.7. That performance is predicted to improve rapidly over the next six months – the expectations index jumped from 80.7 in the first quarter to 101.8 now. The North American climate is firmly above its 91.8 long-term aver-
age at 95.4 up from 87.9 three months ago. Asia’s climate is approaching its 90.7 average with a reading of 90.4, up from 74.6 in the first quarter. However western Europe is still far short of its 105.7 trend rate, with a reading of 99.3, though that does represent an improvement on the 74.6 recorded three months ago. As a result of the improving overall global momentum, Ifo economists expect a slight rise in long-term interest rates over the next six months. They also forecast world price inflation will hit 3.6 per cent this year, up from the 3.5 per cent forecast earlier.
W orld E conom ic S ituation and E xpectations good/ better
by the end of the next 6 months
satisfactory/ about the same
bad/ worse
at present
96 98 00 02 04 06 08 10 12
IN BRIEF US booms with strong utilities
GETTY
BY TIM WALLACE
19
First time buyers rushed to buy houses, with a knock on effect up the buying chain
Stamp duty deadline stimulates surge in March mortgage loans BY TIM WALLACE MORTGAGE lending soared throughout the housing market in March, industry data showed yesterday, as the stamp duty holiday fuelled an escalation in buying. First-time buyers were exempt from stamp duty on properties worth under £250,000 until the end of the month resulting in a 74 per cent monthly rise in the number of first time buyers as they rushed to beat the deadline, according to the Council of Mortgage Lenders (CML). On the year that was a 57 per
cent rise, taking the number of first time buyers in March to 24,000. Because they are often involved in long chains of buyers, that rush led to a 25 per cent rise in the number of home movers in the month to 27,200, a 15 per cent jump on the year. However, the CML warned that this positive impact will rapidly disappear without the stimulus of the stamp duty break. “If lending follows the same pattern as after previous stamp duty concessions, we will likely see a drop in activity in the next few months,” said Paul Smee.
US industrial production posted its fastest growth in over a year last month, official figures showed yesterday, boosted by surging output at utilities and a rebound in manufacturing. Output grew 1.1 per cent in April, the Federal Reserve revealed, the most since December 2010 and more than twice the 0.4 per cent forecast by economists. The Fed also revised its estimates for prior months, saying production contracted 0.6 per cent in March and expanded 0.4 per cent in February. Previously it said production was flat for both February and March. In April manufacturing output rose 0.6 per cent, bouncing back from a 0.5 per cent decline in March.
Oz rate cut improves confidence Australian consumer confidence
increased slightly after the central bank cut interest rates at the start of the month, an influential index showed yesterday. The Westpac index rose 0.8 per cent to 95.3, from 94.5 in April. The Reserve Bank of Australia cut interest rates by 0.5 percentage points to 3.75 per cent at the start of the month, citing a need to boost demand and economic growth. Wage growth also slowed, weighing on confidence. The Australian Bureau of Statistics’ quarterly survey showed a 0.9 per cent rise from December to March in the private sector and 0.7 per cent rise in the public sector. That compares with a one per cent rise in the previous three months, and takes annual wage gains to 3.7 per cent in the public sector and 3.1 per cent in the private sector.
20
cityam.com
THURSDAY 17 MAY 2012
CITYDASHBOARD CITY MOVES WHO’S SWITCHING JOBS
YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND MARKET REPORTS in association with
Edited by Tom Welsh
Brooks Macdonald
SWIP
The private client investment manager has announced the appointment of Justin Woolf to its intermediary sales team. He joins as an intermediary sales manager from Zurich Intermediary Group, where he was a senior broker consultant. Woolf has over 15 years’ experience in the financial services industry.
Scottish Widows Investment Partnership has appointed Ian Marsh as head of marketing. He will report to Francis Ghiloni, director of distribution and client management. Marsh joins from BlackRock, where he was managing director, head of marketing communications Europe, Middle East and Africa. He has previously held senior roles at iShares, E-ON, Sony Ericsson and Vodafone.
investment manager. She joins from Future Capital Partners and has previously held roles at Circle, the healthcare partnership, Unicorn Investments, the investment boutique, and PwC.
Saffery Champness James Hender has been appointed as partner in the accountancy firm’s London office. He will join its private wealth and estates group from Smith & Williamson, where he spent nine years advising high net worth clients.
Stanford Resourcing
Thomas Miller Investment The investment management firm has appointed John Bearman as chief investment officer. He has over 25 years of fund management experience, and was most recently chief investment officer for Santander Asset Management in the UK. He has also previously served as head of UK equities at Insight Investment.
The legal and compliance search firm has appointed David Carberry to lead its compliance practice area. Carberry joins from Hutton Consulting, the financial services executive search firm. His hire forms part of Stanford’s growth strategy into Hong Kong and Dubai.
Mercer The human resource consultancy has appointed Daniel Hibbert as principal to develop its pay and reward consulting services for the UK’s public sector. Hibbert joined the firm in March 2012 from PwC, where he held the post of director. He has over 15 years’ experience advising organisations on all aspects of reward management.
Cordea Savills Esther Lewis has been appointed as associate director of institutional business at the international property
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LONDON REPORT
BESTof the BROKERS
Stocks sink to lowest level of 2012 after liquidity scare weighs on FTSE
440 420 400 380 360
B
RITAIN’s benchmark FTSE 100 index fell to its lowest closing level in more than four months yesterday, as new fears about the Greek banking system killed off a brief afternoon rally on the market. The FTSE 100 fell by 32.37 points, or 0.6 per cent, to 5,405.25 points – above a 5,400 point resistance level but still ending at its lowest close since 21 December, when the market finished at 5,389.74 points. “The bias is still to sell on rallies,” said Hartmann Capital equities and derivatives sales trader Basil Petrides. The FTSE 100 had fallen as much as 1.5 per cent to an intraday low of 5,354.00 points, before recovering during the afternoon session to trade up 0.2 per cent to an intraday high of 5,448.38 points. However, it failed to breach the 5,500 level and then fell back after Eurozone central bank sources told Reuters that the European Central Bank had stopped monetary policy operations with some Greek banks. Greece also put a senior judge in charge of an emergency government yesterday to lead it to new elections on 17 June, while bankers sought to calm public fears after the president said political chaos risked causing panic and a run on deposits. PrimeMarkets head of dealing Richard Curr said the FTSE 100 was set to trade within a range of 5,200-5,500 points, but added there was a danger of it falling to below the 5,000 points given the danger that Greece may have to quit the Eurozone. Curr said the VIX volatility index had risen above the 20 point level, indicating investors’ fears over the economic outlook and sending out signals to sell off equities in favour of less risky assets such as cash or bonds. “The VIX looks set to break out, which could signal bad news,” he said. Heavyweight mining stocks led the FTSE’s fall, as global mining leader BHP Billiton said that commodity markets could cool further. Fresnillo
was the worst-performing stock, falling 4.1 per cent, while Glencore dropped by 1.9 per cent and Polymetal International closed down 1.4 per cent. Mid-cap stock Lamprell slumped 57 per cent after the oil rig maker warned it would make a first-half loss. Aberdeen Asset Management and chemicals group Croda rose by between 3-3.5 per cent to top the FTSE’s leaderboard, after winning entry into a key MSCI index, meaning that more index tracker funds would buy up their shares. However, the worries over Greece have meant that many fund managers have continued to steer clear of European stocks, preferring the US stock market or fast-growing Asian equities due to the better economic prospects in those regions. Thurleigh Investment Managers partner Edward Allen, whose firm manages around £300m in assets, said Thurleigh had shifted one per cent of its assets out of cash and into an iShares emerging market fund, but not into European shares. “Greece has bought itself a bit more time – but not much,” he said. Across Europe as a whole shares also sank to new 2012 lows yesterday in a broad-based sell-off as concern over contagion from Greece gripped investors. The FTSEurofirst 300 index fell 0.7 per cent to 991.03, having dropped 0.7 percent on Tuesday.
F TS E 5,600
5,405.25 16 May
5,550 5,500 5,450 5,400 10 May 11 May 14 May 15 May 16 May
Glencore International PL C p
10 May
11 May
361.15
16 May
14 May
15 May
16 May
GLENCORE
UBS has downgraded the commodities giant from “buy” to “neutral” and lowered its target price from 475p to 400p following Glencore’s first quarter trading update. The bank said it still sees Glencore as the most dynamic company in EU mining over the next three years, but is concerned about the operational leverage of its industrial assets in an increasingly uncertain macro environment. But the Xstrata merger will be a key driver of stock in the near term.
H ilton F ood Group PL C p
289.00
293 292 291 290 289
10 May
11 May
16 May
14 May
15 May
16 May
HILTON FOOD
Numis recommends “hold” for the meat-packing business, down from “add” following Hilton’s interim management statement. Analyst Charles Pick said the trading update is generally positive and there is nothing here that should surprise. But Numis has cut Hilton’s profit estimates by about two per cent, “simply reflecting Sterling’s recent strength”, and lowered the target price from 329p to 322p.
W M M orrison S uperm arkets PL C p
272.50
282.50 280.00 277.50 275.00 272.50 270.00
10 May
MORRISON
11 May
14 May
16 May
15 May
16 May
JP Morgan has upgraded the supermarket from “underweight” to “neutral” as it believes Morrison no longer represents a significant selling opportunity. But many of JP Morgan’s concerns remain, the most notable of which centres on Morrison’s extensive capital expenditure programme and the execution risks implicit in a plethora of new ventures – which will not meaningfully change the investment case, as Morrison remains confined to the UK for growth.
NEW YORK REPORT
Euro fears see fourth day of falls on the S&P
U
S stocks closed lower in a choppy session yesterday, with the S&P 500 logging its fourth straight decline as investors worried about Greece’s future as a member of the Eurozone. Early US gains were erased after the European Central Bank said it had stopped providing liquidity to some Greek banks that had not been recapitalised. The ECB’s move caused some market confusion, adding to volatility as traders have a quick trigger finger when it comes to news about Greece. “All eyes continue to be trained on Europe: What is going to happen in Greece, what the potential fallout from that is going to be, so there wasn't much from the Fed data to impact things,” said Stephen Massocca of Wedbush Morgan in San Francisco. Investors were not enticed by the minutes from the US Federal Reserve’s most recent meeting in which policymakers kept alive the possibility of a fresh round of monetary stimulus for the moderately expanding economy. Worries about Greece’s political and financial future, along with political upheaval in the broader Eurozone, have driven equity losses in recent weeks, sending the benchmark S&P index down 5.9 per cent since the end of March. German chancellor Angela Merkel attempted to assuage investor fears on Tuesday by saying Greece will stay in the euro. Merkel’s comments helped stem selling prior to the market open. Opinion polls in Greece show leftists who are opposed to the terms of the international bailout for the country would likely win a new election, set for 17 June. Greeks, afraid of the devaluation that would follow an exit from the euro, withdrew at least €700m euros from local banks on Monday. J.C. Penney shares plunged 19.7 per cent to $26.75, its biggest oneday percentage drop since at least 1973, a day after the department store owner scrapped its dividend. Penney’s financial results showed the effort to remake itself as an affordable fashion-oriented retail chain took a much bigger-thanexpected toll on sales in the first quarter. The Dow Jones industrial average dropped 33.45 points, or 0.26 per cent, to 12,598.55. The Standard & Poor’s 500 Index dropped 5.86 points, or 0.44 per cent, to 1,324.80. The Nasdaq Composite Index dropped 19.72 points, or 0.68 per cent, to 2,874.04. US output rose in April at its fastest pace in over a year, the Federal Reserve said. A separate report showed a rebound in groundbreaking for US homes in April, suggesting the housing market recovery was gaining.
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cityam.com
THURSDAY 17 MAY 2012
MARKETS
FTSE 100
FTSE 250
FTSE ALL SHARE
DOW
NASDAQ
S&P 500
/€ 1.2515
0.0058
€/$ 1.2736
0.0002
5405.25 32.37
10675.30 47.19
2809.41 16.60
12598.55 33.45
2874.04 19.72
1324.80 5.86
/$ 1.5943
0.0057
€/£ 0.7991
0.0035
/¥ 127.00
0.3449
€/¥ 102.32
0.1484
CONSTRUCTION & MATERIALS
GILTS Tsy 9.000 12 . . . . . . .101.90 Tsy 5.250 12 . . . . . . .100.27 Tsy 2.500 13 . . . . . .283.46 Tsy 4.500 13 . . . . . . .103.32 Tsy 8.000 13 . . . . . . .110.39 Tsy 5.000 14 . . . . . . .110.64 Tsy 8.000 15 . . . . . .126.40 Tsy 4.750 15 . . . . . . .113.91 Tsy 4.000 16 . . . . . . .113.81 Tsy 2.500 16 . . . . . .346.48 Tsy 1.250 17 . . . . . . . .116.71 Tsy 8.750 17 . . . . . . .140.04 Tsy 12.000 17 . . . . . .119.25 Tsy 5.000 18 . . . . . . .122.22 Tsy 4.500 19 . . . . . . . .121.11 Tsy 3.750 19 . . . . . . .116.37 Tsy 4.750 20 . . . . . .123.93 Tsy 2.500 20 . . . . . .371.30 Tsy 8.000 21 . . . . . .153.09 Tsy 1.875 22 . . . . . . .129.68 Tsy 4.000 22 . . . . . .118.96 Tsy 2.500 24 . . . . . . .337.01 Tsy 5.000 25 . . . . . .130.80 Tsy 1.250 27 . . . . . . .125.75 Tsy 4.250 27 . . . . . .122.06 Tsy 6.000 28 . . . . . .146.75 Tsy 4.125 30 . . . . . . .319.61 Tsy 4.750 30 . . . . . .128.88 Tsy 4.250 32 . . . . . .120.93 Tsy 4.250 36 . . . . . .120.50 Tsy 4.750 38 . . . . . .129.90 Tsy 4.500 42 . . . . . .125.78
0.00 -0.02 -0.02 0.00 0.00 0.03 0.06 0.06 0.13 0.13 0.15 -0.20 0.96 0.15 0.18 0.16 0.13 0.12 0.06 0.19 0.10 0.18 0.12 0.21 0.25 0.25 0.34 0.57 0.53 0.56 0.55 0.57
109.9 104.7 287.7 106.4 116.3 112.9 129.2 115.4 114.7 346.7 117.1 141.9 127.9 122.5 121.2 116.5 124.1 372.2 155.5 130.0 119.3 338.2 131.0 127.0 122.7 148.0 322.8 130.5 123.1 123.9 134.2 130.8
100.8 100.2 282.8 103.3 110.3 100.6 125.6 111.0 108.0 325.6 110.0 135.6 117.0 113.5 109.6 103.8 111.1 331.8 139.3 114.9 103.4 289.4 111.5 107.6 101.7 123.7 272.0 107.3 100.3 99.6 107.9 104.1
AEROSPACE & DEFENCE BAE Systems . . . . . . . . .272.0 Chemring Group . . . . . .326.4 Cobham . . . . . . . . . . . . .221.3 Meggitt . . . . . . . . . . . . .388.1 QinetiQ Group . . . . . . . .144.8 Rolls-Royce Holdi . . . . .831.0 Senior . . . . . . . . . . . . . .201.4 Ultra Electronics . . . . .1644.0
-1.5 0.3 2.5 -2.5 -2.2 1.5 -0.7 12.0
340.8 677.0 239.5 413.5 159.3 859.0 213.0 1780.0
248.1 316.9 165.9 304.9 101.5 557.5 135.6 1305.0
AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .192.4 2.2 245.0 157.0
BANKS Barclays . . . . . . . . . . . . .189.1 HSBC Holdings . . . . . . .534.2 Lloyds Banking Gr . . . . .28.7 Royal Bank of Sco . . . . . .21.9 Standard Chartere . . .1364.0
3.0 277.5 138.9 -13.5 639.5 463.5 -0.2 53.7 21.8 0.5 42.6 17.3 9.5 1672.0 1169.5
BEVERAGES AG Barr . . . . . . . . . . . . .1131.0 9.0 Britvic . . . . . . . . . . . . . .356.2 -1.9 Diageo . . . . . . . . . . . . .1538.5 -14.5 SABMiller . . . . . . . . . . .2465.5 -24.5
1395.0 444.0 1614.5 2660.0
1031.0 289.9 1112.0 1979.0
338.1 2282.0 208.1 2408.0 1590.0 253.0
206.1 1597.0 107.5 1523.0 1025.0 148.0
CHEMICALS AZ Electronic Mat . . . . .295.0 Croda Internation . . . .2182.0 Elementis . . . . . . . . . . .204.2 Johnson Matthey . . . .2175.0 Victrex . . . . . . . . . . . . .1327.0 Yule Catto & Co . . . . . . .214.5
2.5 63.0 5.2 23.0 7.0 0.1
Balfour Beatty . . . . . . .264.9 CRH . . . . . . . . . . . . . . . .1101.0 Galliford Try . . . . . . . . . .612.0 Kier Group . . . . . . . . . .1156.0
6.4 -5.0 -4.5 -5.0
326.7 1578.5 653.0 1489.0
214.6 1053.0 383.8 1095.0
ELECTRICITY Drax Group . . . . . . . . . .567.5 -3.5 581.5 444.5 SSE . . . . . . . . . . . . . . . .1329.0 4.0 1423.0 1193.0
ELECTRONIC & ELECTRICAL EQ. Domino Printing S . . . .563.0 2.5 Halma . . . . . . . . . . . . . .385.1 -4.8 Laird . . . . . . . . . . . . . . . .187.5 0.3 Morgan Crucible C . . . . .274.1 1.3 Oxford Instrument . . . .1130.0 -21.0 Renishaw . . . . . . . . . . .1451.0 -16.0 Spectris . . . . . . . . . . . . .1712.0 -43.0
701.5 429.6 222.0 360.0 1285.0 1886.0 1902.0
434.3 306.3 128.5 224.0 714.0 800.0 1039.0
EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .603.0 -4.5 714.0 494.0 Alliance Trust . . . . . . . . .342.1 -0.9 392.7 310.2 Bankers Inv Trust . . . . .401.6 -0.5 433.8 346.5 BH Global Ltd. GB . . . . .1175.0 0.0 1212.0 1085.0 BH Global Ltd. US . . . . . . .11.8 0.1 12.2 10.6 BH Macro Ltd. EUR . . . . . .19.8 0.1 20.2 16.6 BH Macro Ltd. GBP . . .2045.0 -15.0 2078.0 1710.0 BH Macro Ltd. USD . . . . . .19.8 0.0 20.2 16.6 BlackRock World M . . .588.0 -3.0 782.0 571.5 BlueCrest AllBlue . . . . . .163.2 -0.1 175.3 160.5 British Assets Tr . . . . . . .118.2 -0.9 138.0 109.0 British Empire Se . . . . .402.9 0.1 533.0 392.9 Caledonia Investm . . . .1312.0 -28.0 1780.0 1310.0 City of London In . . . . . .285.1 0.3 306.9 257.0 Dexion Absolute L . . . . .136.2 -0.1 148.2 130.0 Edinburgh Dragon . . . .229.6 -1.3 253.1 201.4 Edinburgh Inv Tru . . . .480.3 4.3 504.0 422.5 Electra Private E . . . . . .1671.0 -15.0 1745.0 1287.0 Fidelity China Sp . . . . . . .75.0 -1.8 107.7 70.0 Fidelity European . . . . .1011.0 -7.0 1280.0 912.0 Foreign and Colon . . . .290.3 -0.1 327.9 261.5 Herald Inv Trust . . . . . .482.0 -4.9 545.5 419.0 HICL Infrastructu . . . . . .120.0 -0.4 123.6 112.7 John Laing Infras . . . . .106.7 0.0 110.6 103.8 JPMorgan American . .890.0 3.0 965.5 721.5 JPMorgan Asian In . . . . .180.1 -1.4 243.9 170.1 JPMorgan Emerging . . .512.0 -2.5 610.5 480.1 JPMorgan Indian I . . . . .313.2 -3.8 437.0 307.0 JPMorgan Russian . . . .482.7 -1.3 689.0 415.1 Law Debenture Cor . . . .367.0 -2.5 398.7 323.0 Mercantile Invest . . . . . .961.5 -7.5 1097.0 823.0 Merchants Trust . . . . . .366.0 5.7 431.8 341.5 Monks Inv Trust . . . . . .320.5 -1.0 357.4 298.1 Murray Income Tru . . . .626.0 -1.0 674.0 568.0 Murray Internatio . . . . .918.0 -3.0 1012.0 818.5 NB Global Floatin . . . . . .99.4 -0.4 103.0 92.5 Perpetual Income . . . .259.3 -0.8 276.0 236.5 Personal Assets T . . .33430.0 -110.0 35350.031750.0 Polar Capital Tec . . . . . .367.0 -4.4 404.0 299.5 RIT Capital Partn . . . . .1148.0 10.0 1360.0 1096.0 Scottish Inv Trus . . . . . .454.0 -1.7 524.0 417.0 Scottish Mortgage . . . .662.5 3.5 781.0 565.0 SVG Capital . . . . . . . . . .266.0 -1.7 295.5 165.1 Temple Bar Inv Tr . . . . .889.5 0.0 970.0 791.0 Templeton Emergin . . .524.5 -2.5 678.5 497.0 TR Property Inv T . . . . .146.2 -1.2 206.1 136.2 TR Property Inv T . . . . . .63.0 0.0 94.0 59.8 Witan Inv Trust . . . . . . .449.2 -3.2 533.0 401.5
FINANCIAL SERVICES 3i Group . . . . . . . . . . . . .179.6 3i Infrastructure . . . . . . .124.4 Aberdeen Asset Ma . . .255.9 Ashmore Group . . . . . .343.9 Brewin Dolphin Ho . . . .158.0
-1.0 -0.1 8.6 3.6 0.0
294.1 128.0 283.8 420.0 177.0
166.9 115.6 167.8 306.4 113.7
Camellia . . . . . . . . . . .9306.0-194.0 10950.0 8800.0 Charles Taylor . . . . . . . .140.0 3.0 160.0 115.6 City of London Gr . . . . . .72.0 0.0 86.0 61.3 City of London In . . . . .359.0 -4.3 440.0 304.3 Close Brothers Gr . . . . .695.0 3.5 812.0 590.0 F&C Asset Managem . . . .67.8 0.8 81.7 56.1 Hargreaves Lansdo . . . .501.5 7.7 640.0 402.5 Helphire Group . . . . . . . . .1.6 0.2 4.8 1.3 Henderson Group . . . . . .98.4 -0.4 163.7 95.1 Highway Capital . . . . . . .14.0 0.0 21.0 8.0 ICAP . . . . . . . . . . . . . . . .336.5 1.2 498.8 311.6 IG Group Holdings . . . .442.0 -4.0 502.5 393.6 Intermediate Capi . . . .239.9 1.9 345.0 197.9 International Per . . . . .226.2 1.8 388.8 148.5 International Pub . . . . . .117.5 -0.5 121.7 112.7 Investec . . . . . . . . . . . . .328.7 0.4 522.0 317.8 IP Group . . . . . . . . . . . .140.0 0.0 151.0 36.0 Jupiter Fund Mana . . . .209.4 0.9 293.2 184.9 Liontrust Asset M . . . . .100.5 -2.0 125.0 57.9 LMS Capital . . . . . . . . . . .60.0 0.3 64.8 54.0 London Finance & . . . . .19.5 0.0 23.5 18.0 London Stock Exch . . . .989.5 -8.0 1093.0 756.5 Lonrho . . . . . . . . . . . . . . .9.9 0.0 19.8 8.9 Man Group . . . . . . . . . . . .81.9 2.1 259.6 77.3 Paragon Group Of . . . .158.9 -4.6 206.1 134.6 Provident Financi . . . .1105.0 -55.0 1204.0 915.0 Rathbone Brothers . . .1219.0 -21.0 1351.0 977.0 Record . . . . . . . . . . . . . . .18.0 -0.1 35.5 9.8 RSM Tenon Group . . . . . . .5.9 0.2 31.5 5.6 Schroders . . . . . . . . . .1250.0 4.0 1665.0 1183.0 Schroders (Non-Vo . . .1024.0 4.0 1393.0 970.0 Tullett Prebon . . . . . . . .291.2 2.2 386.4 262.3 Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
GENERAL RETAILERS
-0.2 -0.5 -0.1 3.2 -0.7 0.7 -3.5
232.1 48.3 55.0 149.5 84.0 150.0 802.0
161.0 29.5 14.2 84.1 62.0 118.9 475.0
FOOD & DRUG RETAILERS Booker Group . . . . . . . . .75.5 Greggs . . . . . . . . . . . . . .476.4 Morrison (Wm) Sup . . .272.5 Ocado Group . . . . . . . . .115.0 Sainsbury (J) . . . . . . . .299.8 Tesco . . . . . . . . . . . . . . . .317.9
0.3 -19.6 -4.6 -1.6 -11.6 1.9
85.3 558.0 328.0 228.2 354.7 419.5
64.5 445.0 267.7 52.9 263.5 310.5
FOOD PRODUCERS Associated Britis . . . . .1205.0 Cranswick . . . . . . . . . . .819.5 Dairy Crest Group . . . . .310.5 Devro . . . . . . . . . . . . . . .302.7 Tate & Lyle . . . . . . . . . .679.0 Unilever . . . . . . . . . . .2038.0
-15.0 -6.0 3.5 2.8 -9.5 -31.0
1242.0 841.0 402.9 332.2 720.5 2189.0
977.0 588.5 290.4 232.0 544.5 1892.0
FORESTRY & PAPER Mondi . . . . . . . . . . . . . . .517.0 8.0 664.0 413.5
GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . .308.5 International Pow . . . . .418.6 National Grid . . . . . . . .665.5 Pennon Group . . . . . . . .716.0 Severn Trent . . . . . . . .1674.0 United Utilities . . . . . . .624.5
0.0 -0.6 -3.5 -16.0 -21.0 -8.0
330.3 419.4 682.5 751.0 1720.0 642.0
278.8 279.4 569.0 623.5 1375.0 560.0
5.0 3.3 17.4 2.2 -21.0
747.5 438.0 393.2 183.7 1250.0
395.8 299.8 300.5 113.3 869.5
222.4 375.0 51.2 727.0 9.4 389.0 268.6 72.5 268.1 570.0 52.1 217.0 301.8 2153.0 190.0 451.6
HEALTH CARE EQUIPMETN & S. Smith & Nephew . . . . .595.0 0.5 694.0 521.0 Synergy Health . . . . . . .801.0 -8.0 981.0 793.5
HHOLD GDS & HOME CONSTR. Barratt Developme . . . .123.3 Bellway . . . . . . . . . . . . .705.0 Berkeley Group Ho . . .1231.0 Bovis Homes Group . . .446.7 Persimmon . . . . . . . . . .570.0
151.5 859.5 1414.0 518.5 706.5
5.2 9.0 26.0 3.2 22.0
67.5 540.5 1025.0 326.5 374.0
-1.5 1.1 -0.7 -12.4 -9.5 -1.6 3.3 1.7
446.3 135.0 188.1 679.0 797.5 316.1 376.0 250.7
272.0 89.8 112.1 451.1 509.0 200.9 294.0 172.0
-2.4 -0.5 -1.0 5.5 0.0 3.0 0.5 1.8 -21.0 0.0 0.0 -2.3 -1.6 -1.5
312.5 187.4 133.0 850.0 56.3 298.5 121.0 503.5 828.0 19.0 255.0 76.3 451.0 248.6
200.0 115.7 91.3 618.5 30.5 144.0 47.0 343.4 522.5 8.3 190.0 32.3 313.9 157.7
Lamprell . . . . . . . . . . . . . . . . . . .127.0 Anglo Pacific Grou . . . . . . . . . . .259.3 Essar Energy . . . . . . . . . . . . . . . .117.8 Aquarius Platinum . . . . . . . . . . .88.2 African Barrick Go . . . . . . . . . . .309.8 Bwin.party Digital . . . . . . . . . . . .131.5 Kentz Corporation . . . . . . . . . . .377.6 Provident Financia . . . . . . . . . .1105.0 SDL . . . . . . . . . . . . . . . . . . . . . . .667.0 Gem Diamonds Ltd. . . . . . . . . .216.6
-56.9 -6.8 -6.0 -6.0 -5.6 -5.3 -5.0 -4.7 -4.6 -4.5
LIFE INSURANCE Aviva . . . . . . . . . . . . . . .280.9 Legal & General G . . . . .110.5 Old Mutual . . . . . . . . . . .145.9 Phoenix Group Hol . . . .483.6 Prudential . . . . . . . . . . .700.5 Resolution Ltd. . . . . . . .203.9 St James's Place . . . . . . .317.2 Standard Life . . . . . . . . .207.2
MEDIA 4Imprint Group . . . . . . .277.6 Aegis Group . . . . . . . . . .163.7 Bloomsbury Publis . . . .107.5 British Sky Broad . . . . .697.5 Centaur Media . . . . . . . .34.8 Chime Communicati . . .152.8 Creston . . . . . . . . . . . . . .67.3 Daily Mail and Ge . . . . .413.0 Euromoney Institu . . . .735.0 Future . . . . . . . . . . . . . . . .11.0 Haynes Publishing . . . .190.0 Huntsworth . . . . . . . . . . .41.5 Informa . . . . . . . . . . . . .383.3 ITE Group . . . . . . . . . . . .212.2
MAIN CHANGES UK 350
Ophir Energy . . . . . . . . . . . . . . .580.0 Perform Group . . . . . . . . . . . . . .330.1 RPC Group . . . . . . . . . . . . . . . . .368.4 Barratt Developmen . . . . . . . . . .123.3 Persimmon . . . . . . . . . . . . . . . .570.0 Ruspetro . . . . . . . . . . . . . . . . . . .166.8 Hansteen Holdings . . . . . . . . . . .73.0 Aberdeen Asset Man . . . . . . . . .255.9 Logica . . . . . . . . . . . . . . . . . . . . . .68.7 Croda Internationa . . . . . . . . . .2182.0
12.6 7.0 5.0 4.4 4.0 3.6 3.6 3.5 3.5 3.0
Reckitt Benckiser . . . .3432.0 -11.0 3660.0 3100.0 Redrow . . . . . . . . . . . . . .117.4 -1.8 126.0 90.2 Taylor Wimpey . . . . . . . .42.9 1.0 52.8 28.7
INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . . .379.4 -3.6 Fenner . . . . . . . . . . . . .402.0 -3.7 IMI . . . . . . . . . . . . . . . . .892.5 11.5 Melrose . . . . . . . . . . . . .407.3 -0.2 Northgate . . . . . . . . . . .195.0 0.5 Rotork . . . . . . . . . . . . .2014.0 -16.0 Spirax-Sarco Engi . . . .2030.0 -20.0 Weir Group . . . . . . . . .1498.0 -23.0 Evraz . . . . . . . . . . . . . . .327.7 -0.5 Ferrexpo . . . . . . . . . . . .223.9 -7.3 Talvivaara Mining . . . . .152.2 0.9
437.1 483.7 1119.0 441.6 333.9 2260.0 2334.0 2236.0 460.5 495.3 488.2
225.6 280.0 636.5 268.0 190.0 1501.0 1649.0 1375.0 315.0 216.9 143.6
ITV . . . . . . . . . . . . . . . . . .82.4 Johnston Press . . . . . . . . .6.0 Mecom Group . . . . . . . .149.3 Moneysupermarket. . . .113.6 Pearson . . . . . . . . . . . . .1151.0 Perform Group . . . . . . .330.1 Reed Elsevier . . . . . . . .500.0 Rightmove . . . . . . . . . .1471.0 STV Group . . . . . . . . . . .105.8 Tarsus Group . . . . . . . . .158.0 Trinity Mirror . . . . . . . . . .30.0 UBM . . . . . . . . . . . . . . .546.0 UTV Media . . . . . . . . . . .130.0 Wilmington Group . . . . .95.5 WPP . . . . . . . . . . . . . . .798.0 Yell Group . . . . . . . . . . . . .3.1
INDUSTRIAL TRANSPORTATION
MINING
BBA Aviation . . . . . . . . .196.5 -1.5 222.4 156.0 Stobart Group Ltd . . . . .119.0 -3.0 149.5 112.0
African Barrick G . . . . .309.8 Anglo American . . . . .2089.5 Anglo Pacific Gro . . . . .259.3 Antofagasta . . . . . . . . .1012.0 Aquarius Platinum . . . . .88.2 Avocet Mining . . . . . . . .144.5 BHP Billiton . . . . . . . . .1750.0 Bumi . . . . . . . . . . . . . . .401.6 Centamin (DI) . . . . . . . . .62.0
NON LIFE INSURANCE
GENERAL INDUSTRIALS Cookson Group . . . . . . .643.5 Rexam . . . . . . . . . . . . . .403.1 RPC Group . . . . . . . . . . .368.4 Smith (DS) . . . . . . . . . . .148.1 Smiths Group . . . . . . .1020.0
764.5 576.0 825.0 620.0 138.1 99.2
FIXED LINE TELECOMS BT Group . . . . . . . . . . . .207.1 Cable & Wireless . . . . . .29.9 Cable & Wireless . . . . . .33.9 COLT Group SA . . . . . . . .110.9 KCOM Group . . . . . . . . . .69.4 TalkTalk Telecom . . . . . .132.7 Telecom Plus . . . . . . . .699.5
293.7 741.0 85.5 866.0 19.9 533.0 405.9 223.0 425.4 1030.0 151.4 313.8 399.9 3060.0 315.6 559.0
Brown (N.) Group . . . . .236.1 -0.4 Carpetright . . . . . . . . . .610.5 -12.0 Debenhams . . . . . . . . . . .75.1 -1.4 Dignity . . . . . . . . . . . . .845.0 -10.0 Dixons Retail . . . . . . . . . .15.1 0.3 Dunelm Group . . . . . . . .515.0 -7.0 Halfords Group . . . . . . .281.5 -1.0 Home Retail Group . . . . .81.8 0.5 Inchcape . . . . . . . . . . . .330.1 -10.0 JD Sports Fashion . . . . .765.5 -26.0 Kesa Electricals . . . . . . . .54.1 -1.9 Kingfisher . . . . . . . . . . .281.2 -3.9 Marks & Spencer G . . . .349.0 -3.9 Next . . . . . . . . . . . . . .2969.0 -16.0 Sports Direct Int . . . . . .297.6 -4.9 WH Smith . . . . . . . . . . .515.0 -4.5
-5.5 2.0 -0.6
Jardine Lloyd Tho . . . . .684.5 Lancashire Holdin . . . . .756.5 RSA Insurance Gro . . . .100.4
Admiral Group . . . . . . .1124.0 Amlin . . . . . . . . . . . . . . .318.0 Beazley . . . . . . . . . . . . .138.2 Catlin Group Ltd. . . . . . .414.7 Hiscox Ltd. . . . . . . . . . .380.6
-3.0 5.0 0.1 -0.3 2.8
1748.0 426.4 151.8 449.0 424.7
787.0 270.6 109.6 337.0 340.5
-0.5 -0.1 -2.5 -1.1 -1.0 21.6 -0.5 -8.0 -2.3 1.8 -3.8 -4.0 0.0 -1.0 -5.5 -0.1 -18.4 4.0 -18.8 9.0 -5.6 1.0 -16.0 -17.4 -2.0
89.9 7.9 271.8 135.9 1255.0 334.9 578.0 1600.0 146.0 165.0 54.3 641.5 159.5 147.0 880.0 11.0 616.5 3181.0 340.0 1491.0 343.0 286.8 2521.5 1158.0 141.5
51.7 4.1 134.5 93.4 1038.0 150.0 461.3 1036.0 76.3 119.5 30.0 416.0 92.5 78.5 578.0 3.1 303.4 2013.5 237.9 900.5 86.1 137.3 1667.0 401.6 60.0
Eurasian Natural . . . . . .482.1 0.8 855.5 463.1 Fresnillo . . . . . . . . . . . .1323.0 -57.0 2150.0 1302.0 Gem Diamonds Ltd. . . .216.6 -10.1 310.6 179.8 Glencore Internat . . . . .363.2 -7.0 531.1 348.0 Hochschild Mining . . . . .417.3 -1.7 549.5 365.9 Kazakhmys . . . . . . . . . . .711.5 4.5 1405.0 677.0 Kenmare Resources . . . .44.1 0.1 61.5 31.0 Lonmin . . . . . . . . . . . . .794.0 -11.0 1600.0 770.5 New World Resourc . . .341.0 9.6 1035.0 327.0 Petra Diamonds Lt . . . .132.6 -0.4 188.2 97.0 Petropavlovsk . . . . . . .399.5 9.0 913.0 363.7 Polymetal Interna . . . . .797.5 -11.0 1175.0 751.0 Randgold Resource . .4640.0 44.0 7565.0 4480.0 Rio Tinto . . . . . . . . . . .2910.5 -43.0 4595.0 2712.5 Vedanta Resources . . .1026.0 13.0 2169.0 928.0 Xstrata . . . . . . . . . . . . .985.8 -13.2 1425.5 764.0
MOBILE TELECOMS Inmarsat . . . . . . . . . . . .404.0 -17.4 611.0 389.3 Vodafone Group . . . . . .167.9 -2.6 182.7 155.1
NON EQUITY INVESTM. COMM. Genesis Emerging . . . .474.5 -3.7 543.5 424.0
OIL & GAS PRODUCERS -3.3 -4.5 -0.8 -6.2 -4.8 -7.5 1.8 -0.5 65.0 -0.1 5.0 2.5 5.8 -6.1 1.7 0.0
171.0 1547.0 504.6 501.4 135.2 455.9 455.0 262.1 586.0 485.0 2402.0 2489.0 230.0 235.8 397.5 1601.0
73.6 1144.0 363.2 289.4 85.7 101.6 102.2 118.1 184.5 310.0 1883.5 1890.5 125.0 148.0 254.9 945.5
Amec . . . . . . . . . . . . . . .987.5 -13.5 Hunting . . . . . . . . . . . . .774.5 -8.0 Kentz Corporation . . . . .377.6 -20.0 Lamprell . . . . . . . . . . . . .127.0 -167.8 Petrofac Ltd. . . . . . . . .1539.0 -21.0 Wood Group (John) . . .734.5 -5.0
1187.0 968.0 508.0 395.2 1772.0 798.0
740.5 530.0 375.0 92.0 1108.0 469.9
Afren . . . . . . . . . . . . . . .116.8 BG Group . . . . . . . . . . .1270.0 BP . . . . . . . . . . . . . . . . .399.7 Cairn Energy . . . . . . . . .291.5 EnQuest . . . . . . . . . . . . .118.0 Essar Energy . . . . . . . . .117.8 Exillon Energy . . . . . . . .107.8 Heritage Oil . . . . . . . . . .122.5 Ophir Energy . . . . . . . .580.0 Premier Oil . . . . . . . . . .329.2 Royal Dutch Shell . . . .2006.5 Royal Dutch Shell . . . .2078.0 Ruspetro . . . . . . . . . . . .166.8 Salamander Energy . . . .162.1 Soco Internationa . . . . .266.5 Tullow Oil . . . . . . . . . . .1391.0
OIL EQUIPMENT & SERVICES
PERSONAL GOODS Burberry Group . . . . . .1439.0 1.0 1600.0 1092.0 PZ Cussons . . . . . . . . . . .331.9 -6.3 387.9 285.0 Supergroup . . . . . . . . . .331.6 1.6 1165.0 307.0
PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . .2634.5 BTG . . . . . . . . . . . . . . . . .371.9 Genus . . . . . . . . . . . . . .1291.0 GlaxoSmithKline . . . . .1421.5 Hikma Pharmaceuti . . .613.5 Shire Plc . . . . . . . . . . . .1977.0
2543.5 236.8 853.5 1205.0 555.5 1818.0
-17.0 -1.2 6.0 -2.0 1.0 -16.0
3194.0 387.7 1457.0 1497.0 869.0 2300.0
-0.7 11.0 -0.6 -0.2 -2.3 -4.9 0.0
203.7 158.1 3300.0 2282.0 107.9 92.6 133.2 77.3 140.0 103.5 427.1 256.2 85.5 65.1
REAL ESTATE INVEST. & SERV. Capital & Countie . . . . . .192.3 Daejan Holdings . . . .3095.0 F&C Commercial Pr . . . .103.0 Grainger . . . . . . . . . . . . .95.8 London & Stamford . . .104.6 Savills . . . . . . . . . . . . . .339.0 UK Commercial Pro . . . . .73.3
REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . .289.9 -3.1 344.4 218.0 British Land Co . . . . . . .502.0 4.8 629.5 444.0 Capital Shopping . . . . .311.4 1.6 408.6 288.7
Derwent London . . . . .1762.0 Great Portland Es . . . . .379.0 Hammerson . . . . . . . . .426.0 Hansteen Holdings . . . . .73.0 Land Securities G . . . . .735.5 SEGRO . . . . . . . . . . . . . . .217.1 Shaftesbury . . . . . . . . .529.0
-14.0 1880.0 1400.0 9.0 445.0 312.9 4.0 490.9 345.2 2.5 89.5 68.0 1.0 885.0 612.0 -0.5 326.1 195.0 7.0 539.0 441.2
SOFTWARE & COMPUTER SERV. Aveva Group . . . . . . . .1550.0 -17.0 Computacenter . . . . . .386.8 -1.1 Fidessa Group . . . . . . .1464.0 -24.0 Invensys . . . . . . . . . . . .204.6 0.6 Logica . . . . . . . . . . . . . . .68.7 2.3 Micro Focus Inter . . . . . .450.1 -1.7 Misys . . . . . . . . . . . . . . .349.0 0.1 Sage Group . . . . . . . . . .253.3 -6.7 SDL . . . . . . . . . . . . . . . .667.0 -32.0 Telecity Group . . . . . . . .784.0 -7.5
1799.0 1298.0 490.0 324.7 2109.0 1444.0 333.9 180.9 142.2 59.0 476.7 242.9 420.2 214.9 312.4 231.7 756.0 586.0 816.0 450.5
SUPPORT SERVICES Aggreko . . . . . . . . . . . .2121.0 -54.0 Ashtead Group . . . . . . .228.0 -4.5 Atkins (WS) . . . . . . . . . .674.0 1.5 Babcock Internati . . . . .848.0 -20.5 Berendsen . . . . . . . . . . .474.5 4.0 Bunzl . . . . . . . . . . . . . .1019.0 5.0 Cape . . . . . . . . . . . . . . . .331.9 -2.7 Capita . . . . . . . . . . . . . .640.0 -5.5 Carillion . . . . . . . . . . . . .268.5 -11.0 De La Rue . . . . . . . . . .1004.0 -13.0 Diploma . . . . . . . . . . . . .453.1 4.0 Electrocomponents . . . .211.9 0.1 Experian . . . . . . . . . . . .890.0 -4.0 Filtrona PLC . . . . . . . . . .463.0 -0.2 G4S . . . . . . . . . . . . . . . . .277.8 2.6 Hays . . . . . . . . . . . . . . . .75.3 -0.8 Homeserve . . . . . . . . . .235.8 -3.4 Howden Joinery Gr . . . .114.4 0.8 Interserve . . . . . . . . . . .276.0 -1.3 Intertek Group . . . . . .2486.0 0.0 Michael Page Inte . . . . .358.1 0.4 Mitie Group . . . . . . . . . .279.1 -3.9 PayPoint . . . . . . . . . . . .630.0 -7.0 Premier Farnell . . . . . . .185.1 -1.6 Regus . . . . . . . . . . . . . . .92.5 -1.6 Rentokil Initial . . . . . . . .82.6 0.8 RPS Group . . . . . . . . . .209.5 -4.2 Serco Group . . . . . . . . .529.5 2.5 Shanks Group . . . . . . . . .82.8 -2.2 SIG . . . . . . . . . . . . . . . . . .93.7 -0.9 Travis Perkins . . . . . . . .958.0 7.5 Wolseley . . . . . . . . . . .2212.0 -39.0
2316.0 1522.0 271.1 99.4 820.0 490.2 872.5 570.5 568.0 402.7 1063.0 676.5 591.5 295.0 767.0 611.5 395.7 262.0 1024.0 730.0 460.5 284.0 294.9 182.2 998.0 665.0 484.5 296.3 292.1 219.9 113.5 58.9 531.5 214.7 130.8 93.1 341.3 270.1 2605.0 1744.0 552.5 323.0 296.7 208.0 670.0 451.0 301.0 144.5 117.5 64.0 98.7 58.2 253.0 156.6 597.5 458.0 130.9 82.1 153.5 77.0 1125.0 715.0 2558.0 1404.0
TECHNOLOGY HARDW. & EQUIP. ARM Holdings . . . . . . . .487.0 CSR . . . . . . . . . . . . . . . . .216.2 Imagination Techn . . . .582.5 Spirent Communica . . . .156.1
-0.3 -1.3 2.0 -3.4
645.0 375.1 717.0 174.0
464.0 154.1 296.9 105.8
TOBACCO British American . . . .3064.0 -51.5 3248.5 2592.0 Imperial Tobacco . . . .2471.0 -29.0 2591.0 1974.0
Ladbrokes . . . . . . . . . . .166.8 Marston's . . . . . . . . . . . .94.4 Millennium & Copt . . . .483.6 Mitchells & Butle . . . . . .246.8 National Express . . . . .200.3 Rank Group . . . . . . . . . .125.0 Restaurant Group . . . . .277.0 Spirit Pub Compan . . . . .54.3 Stagecoach Group . . . .236.4 TUI Travel . . . . . . . . . . . .176.2 Wetherspoon (J.D. . . . .375.4 Whitbread . . . . . . . . . .1847.0 William Hill . . . . . . . . . .269.0
0.9 181.4 114.0 -0.9 110.3 84.6 -1.0 526.5 371.2 -3.1 336.4 215.6 -1.6 266.0 197.4 2.9 153.7 109.5 1.1 309.7 254.9 -1.0 62.8 35.3 -1.8 287.4 220.0 3.1 243.8 136.7 1.9 454.2 366.9 -12.0 2006.0 1409.0 3.2 281.7 183.3
AIM 50 Abcam . . . . . . . . . . . . .384.0 4.0 Advanced Medical . . . . .74.5 3.8 Albemarle & Bond . . . .307.0 -6.0 Amerisur Resource . . . . .19.8 -2.5 Andes Energia . . . . . . . .38.3 -0.5 Andor Technology . . . .536.5 -3.5 Archipelago Resou . . . . .57.0 -0.5 ASOS . . . . . . . . . . . . . .1560.0 -33.0 Aurelian Oil & Ga . . . . . . .19.0 0.5 Avanti Communicat . . .302.5 -6.8 Blinkx . . . . . . . . . . . . . . .45.5 2.8 Borders & Souther . . . . .75.0 -1.0 BowLeven . . . . . . . . . . . .69.0 0.8 Brooks Macdonald . . .1340.0 0.0 Cluff Gold . . . . . . . . . . . .65.0 -2.8 Cove Energy . . . . . . . . .227.0 -1.0 Daisy Group . . . . . . . . . .86.0 -6.0 EMIS Group . . . . . . . . . .537.5 -2.5 Faroe Petroleum . . . . . .161.5 -2.0 Gulfsands Petrole . . . . .108.0 -5.0 GW Pharmaceutical . . . .82.5 -1.0 H&T Group . . . . . . . . . . .285.8 -3.3 Hargreaves Servic . . . .1155.0 -35.0 Healthcare Locums . . . . . .3.3 0.1 Impellam Group . . . . . .362.5 0.0 Iomart Group . . . . . . . .126.5 -2.8 James Halstead . . . . . .520.0 -10.0 London Mining . . . . . . .256.5 -7.0 Lupus Capital . . . . . . . . .127.0 -2.0 M. P. Evans Group . . . . .494.0 -7.0 Majestic Wine . . . . . . . .407.5 -17.5 May Gurney Integr . . . .232.0 -1.8 Monitise . . . . . . . . . . . . .30.3 0.0 Mulberry Group . . . . .2198.0 -22.0 Nanoco Group . . . . . . . .62.8 2.0 Nautical Petroleu . . . . .280.3 -4.0 Nichols . . . . . . . . . . . . . .707.0 5.5 Numis Corporation . . . . .90.3 -0.8 Pan African Resou . . . . . .14.5 -0.5 Patagonia Gold . . . . . . .22.0 -0.8 Prezzo . . . . . . . . . . . . . . .70.0 1.0 Rockhopper Explor . . . .283.3 -13.0 RWS Holdings . . . . . . .500.0 0.0 Secure Trust Bank . . . .1055.0 0.0 Sirius Minerals . . . . . . . . .16.3 0.0 Songbird Estates . . . . . .110.0 1.0 Valiant Petroleum . . . .500.0 -10.5 Young & Co's Brew . . . .620.0 7.5
460.0 320.0 95.0 64.8 400.1 304.0 29.0 9.5 82.8 17.5 685.0 471.8 79.0 54.8 2468.0 1142.0 71.0 16.0 436.5 241.3 158.0 41.3 131.0 43.5 342.3 62.0 1372.5 940.0 112.8 63.0 242.0 61.0 127.0 82.0 583.0 397.5 177.8 130.0 271.5 105.5 130.0 78.5 395.0 285.5 1264.0 855.0 3.5 3.1 382.6 225.0 151.0 86.1 535.8 410.3 405.0 256.5 137.0 86.0 525.0 371.0 510.0 315.0 302.0 228.3 40.0 25.5 2472.0 1290.0 88.0 38.0 379.0 223.5 732.0 505.0 119.6 72.0 18.3 9.6 70.0 22.0 71.5 53.5 393.5 141.0 560.0 389.0 1077.5 755.0 32.0 6.4 160.3 103.0 628.5 400.0 712.0 580.0
TRAVEL & LEISURE Betfair Group . . . . . . . .775.0 Bwin.party Digita . . . . . .131.5 Carnival . . . . . . . . . . .2029.0 Compass Group . . . . . .627.0 Domino's Pizza UK . . . .448.5 easyJet . . . . . . . . . . . . .509.5 FirstGroup . . . . . . . . . . .197.6 Go-Ahead Group . . . . .1124.0 Greene King . . . . . . . . . .487.1 InterContinental . . . . .1478.0 International Con . . . . .152.7
-4.0 -7.3 -5.0 2.5 10.5 -5.0 -0.7 11.0 -1.2 1.0 2.8
901.0 174.0 2575.0 671.0 526.0 534.0 370.2 1598.0 527.5 1532.0 258.7
567.0 100.6 1742.0 512.5 377.0 302.5 190.0 1085.0 410.0 955.0 132.0
US SHARES
EU SHARES
AIR LIQUIDE .....................................................94.40 ALLIANZ............................................................76.29 ANHEUS-BUSCH INBEV....................................55.00 ARCELORMITTAL.................................................11.62 AXA....................................................................9.50 BANCO SANTANDER ...........................................4.52 BASF SE.............................................................57.34 BAYER ...............................................................51.29 BBVA..................................................................4.90 BMW ................................................................66.53 BNP PARIBAS ...................................................26.53 CARREFOUR.......................................................13.91 CRH PLC.............................................................13.78 DAIMLER............................................................38.15 DANONE ...........................................................52.45 DEUTSCHE BANK..............................................29.06 DEUTSCHE BOERSE...........................................45.92 DEUTSCHE TELEKOM ...........................................8.76 E.ON...................................................................15.14 ENEL...................................................................2.35 ENI......................................................................16.11 FRANCE TELECOM ...............................................9.98 GDF SUEZ...........................................................16.17 GENERALI ASS....................................................8.89 IBERDROLA.........................................................3.30 INDITEX ............................................................67.60 ING GROEP CVA..................................................4.83 INTESA SANPAOLO..............................................1.00 KON.PHILIPS ELECTR .........................................14.82 L'OREAL............................................................92.55 LVMH ..............................................................123.00 MUNICH RE......................................................103.55 NOKIA ................................................................2.24 REPSOL YPF ......................................................13.44 RWE.................................................................30.52 SAINT-GOBAIN .................................................29.62 SANOFI.............................................................54.05 SAP...................................................................47.84 SCHNEIDER ELECTRIC........................................42.74 SIEMENS...........................................................66.44 SOCIETE GENERALE...........................................16.05 TELECOM ITALIA..................................................0.78 TELEFONICA ......................................................10.65 TOTAL................................................................34.92 UNIBAIL-RODAMCO SE.....................................133.70 UNICREDIT..........................................................2.54 UNILEVER CVA..................................................25.62 VINCI ................................................................32.86 VIVENDI.............................................................13.01 VOLKSWAGEN VORZ........................................132.20
1.23 -0.30 -0.21 -0.28 0.20 -0.08 0.05 0.11 -0.02 0.36 -0.31 0.10 -0.12 0.22 -0.43 -0.32 0.72 -0.08 -0.16 -0.01 -0.07 -0.04 -0.12 -0.14 -0.03 -1.34 0.02 0.02 0.16 0.00 0.65 0.65 -0.03 -0.18 -0.17 -0.02 -0.46 -0.29 0.52 -0.11 0.26 -0.00 -0.03 0.56 1.25 0.01 -0.38 -0.51 0.33 -1.55
102.30 101.05 57.51 24.77 15.94 7.65 69.80 59.01 8.06 73.95 54.98 27.35 16.93 53.95 54.96 43.35 57.68 10.94 21.03 4.82 18.72 15.96 26.60 15.96 5.88 74.73 8.87 2.01 20.65 94.80 136.80 118.35 6.15 24.35 43.33 46.44 59.56 54.85 58.85 96.19 43.06 1.00 17.09 42.97 162.95 11.24 27.16 44.98 19.14 152.20
80.90 56.16 33.85 10.47 7.88 4.48 42.19 35.36 4.80 43.49 22.72 13.51 10.28 29.02 41.92 20.79 35.65 7.88 12.50 2.31 11.83 9.86 15.81 8.78 3.26 52.20 4.21 0.85 12.01 68.83 94.16 77.80 2.20 12.98 21.15 26.07 42.85 32.88 35.00 62.13 14.32 0.70 10.48 29.40 123.30 2.20 20.96 28.46 12.02 86.40
3M ....................................................................85.35 ABBOTT LABS...................................................62.55 ALCOA................................................................8.49 ALTRIA GROUP..................................................31.86 AMAZON.COM ................................................224.06 AMERICAN EXPRESS .........................................57.39 APPLE............................................................546.08 AT&T..................................................................33.19 BANK OF AMERICA...............................................7.11 BOEING CO........................................................72.35 BRISTOL MYERS SQUI .......................................33.02 CATERPILLAR....................................................91.86 CHEVRON........................................................100.10 CISCO SYSTEMS.................................................16.69 CITIGROUP .......................................................26.92 COCA-COLA.......................................................76.33 COMCAST CLASS A............................................28.85 CONOCOPHILLIPS..............................................52.32 CVS/CAREMARK................................................45.16 DU PONT(EI) DE NMR.......................................49.85 EXXON MOBIL....................................................82.17 GENERAL ELECTRIC...........................................19.00 GOOGLE A ......................................................628.93 HEWLETT PACKARD..........................................22.03 HOME DEPOT....................................................48.77 IBM .................................................................199.73 INTEL CORP......................................................26.50 J.P.MORGAN CHASE..........................................35.46 JOHNSON & JOHNSON ......................................63.71 KRAFT FOODS A................................................38.61 MC DONALD'S CORP..........................................91.43 MERCK AND CO. NEW.......................................38.23 MICROSOFT......................................................29.90 OCCID. PETROLEUM ..........................................79.23 ORACLE CORP...................................................26.72 PEPSICO ...........................................................68.75 PFIZER .............................................................22.64 PHILIP MORRIS INTL.........................................85.24 PROCTER AND GAMBLE ...................................64.29 QUALCOMM INC..................................................59.11 SCHLUMBERGER ...............................................64.81 TRAVELERS CIES................................................63.61 UNITED TECHNOLOGIE ......................................74.70 UNITEDHEALTH GROUP....................................54.90 US BANCORP DELAWRE....................................31.06 VERIZON COMMS..............................................40.88 VISA CL A .........................................................117.53 WAL-MART STORES...........................................59.19 WALT DISNEY CO..............................................45.08 WELLS FARGO & CO...........................................31.97
-0.43 0.66 -0.22 0.11 -0.33 -0.55 -7.10 -0.16 -0.19 -0.23 0.04 -0.82 -0.80 0.15 -0.87 -0.24 0.00 -0.21 -0.16 -0.30 0.38 0.60 17.82 -0.37 0.10 0.69 -0.39 -0.78 0.10 -0.21 0.42 0.49 -0.31 -0.67 -0.34 0.90 0.34 0.52 0.57 -2.33 -0.71 -0.54 -1.47 -0.04 -0.24 -0.17 0.92 -0.16 0.07 -0.27
98.19 63.20 17.29 32.62 246.71 61.42 644.00 33.92 12.21 80.09 35.44 116.95 112.28 21.30 43.06 77.82 30.88 80.13 46.22 57.50 87.94 21.00 670.25 40.86 52.88 210.69 29.27 46.49 68.05 39.99 102.22 39.50 32.95 109.08 35.92 71.89 23.30 91.05 67.95 68.87 95.53 65.27 91.83 59.71 32.98 41.43 125.35 62.63 45.80 34.59
68.63 46.29 8.45 23.20 166.97 41.30 310.50 27.29 4.92 56.01 20.05 67.54 86.68 13.30 21.40 63.34 19.19 52.13 31.30 37.10 63.47 14.02 473.02 19.92 28.13 157.13 19.16 27.85 55.76 24.30 80.00 29.47 23.65 66.36 24.72 58.50 16.63 60.45 56.57 45.98 54.79 45.97 66.87 41.27 20.10 32.28 73.11 48.31 28.19 22.58
WORLD INDICES FTSE 100. . . . . . . . . . . . . . . . . . . . . 5405.25 FTSE 250 INDEX . . . . . . . . . . . . . . 10675.30 FTSE UK ALL SHARE . . . . . . . . . . . . 2809.41 FTSE AIM ALL SH . . . . . . . . . . . . . . . . 707.43 DOW JONES INDUS 30 . . . . . . . . . 12598.55
-32.37 -47.19 -16.60 -9.88 -33.45
-0.60 -0.44 -0.59 -1.38 -0.26
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1324.80 -5.86 NASDAQ COMPOSITE . . . . . . . . . . . 2874.04 -19.72 FTSEUROFIRST 300 . . . . . . . . . . . . . . 992.81 -4.89 NIKKEI 225. . . . . . . . . . . . . . . . . . . . 8801.17 -99.57 DAX 30 PERFORMANCE . . . . . . . . . 6384.26 -16.80
-0.44 -0.68 -0.49 -1.12 -0.26
COMMODITIES LON GD ONCE FIX AM...................................1537.50 -21.50 -0.51 SILVER LDN FIX AM .........................................27.54 0.06 MAPLE LEAF 1 OZ............................................30.04 LON PLATINUM AM .....................................1426.00 -20.00 -5.00 LON PALLADIUM AM.....................................593.00 ALUMINIUM CASH.......................................1978.50 -25.00 COPPER CASH.............................................7853.00 -126.00 LEAD CASH.................................................2016.00 -10.00 5.00 NICKEL CASH............................................16980.00
TIN CASH..................................................20100.00 -150.00 ZINC CASH....................................................1917.50 -2.00 1.12 BRENT SPOT INDEX.........................................112.14 SOYA............................................................1413.00 26.00 COCOA........................................................2268.00 -53.00 -0.35 COFFEE ..........................................................177.05 -4.10 KRUG...........................................................1612.90 1.13 WHEAT ..........................................................172.75
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3048.67 SHANGHAI SE INDEX. . . . . . . . . . . . 2346.19 HANG SENG. . . . . . . . . . . . . . . . . . 19259.83 S&P/ASX 20 INDEX. . . . . . . . . . . . . 2509.80 ASX ALL ORDINARIES . . . . . . . . . . . 4214.70
9.40 -28.65 -634.48 -60.70 -101.60
0.31 -1.21 -3.19 -2.36 -2.35
BOVESPA SAO PAOLO . . . . . . . . . . 55887.57 -350.40 ISEQ OVERALL INDEX . . . . . . . . . . . 3084.48 -0.26 STRAITS TIMES. . . . . . . . . . . . . . . . . 2912.39 -19.59 IGBM . . . . . . . . . . . . . . . . . . . . . . . . 669.36 -8.56 7.57 SWISS MARKET INDEX . . . . . . . . . . 5872.73
-0.62 -0.01 -0.67 -1.26 0.13
CREDIT & RATES BoE IR Overnight.........................................0.500 BoE IR 7 days..............................................0.500 BoE IR 1 month...........................................0.500 BoE IR 3 months.........................................0.500 BoE IR 6 months ........................................0.500 LIBOR Euro - overnight................................0.253 LIBOR Euro - 12 months ...............................1.256 LIBOR USD - overnight .................................0.155 LIBOR USD - 12 months................................1.067 Halifax mortgage rate ................................3.990
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 -0.02
Euro Base Rate.............................................1.500 Finance house base rate .............................1.500 US Fed funds...............................................0.250 US long bond yield......................................2.930 European repo rate......................................0.134 Euro Euribor.................................................0.318 The vix index................................................21.88 The baltic dry index....................................1130.0 Markit iBoxx...............................................246.33 Markit iTraxx...............................................173.59
0.00 0.00 0.00 -0.01 0.00 0.00 -0.09 -2.00 0.82 4.45
cityam.com
THURSDAY 17 MAY 2012
23
CITYAMCAREERS.com
@cityamcareers
It’s a rewarding, demanding career choice for the right people, writes Tom Welsh
Potential interim managers CITYAMCAREERS.com face a necessary dilemma TODAY ON
A
CCORDING to the Interim Management Association (IMA), the UK has the most established interim management sector in the world, worth £1.5bn per year. Established and growing – business generated by interims affiliated to the IMA increased by 93 per cent in the last five years, to £196m. Interim managers are executives with superb records of achievement, and firms in all sectors hire them on short-term contracts to solve specific problems, manage change or resolve crises. Interim positions are also attractive for executives. Raj Tulsiani, chief executive of Green Park Interim and Executive Search, says the “marketplace starts at around £600 per day and goes up to around £3,000 per day at the most senior levels.” Money is not all. The character of the work gives interims professional challenge, variety, flexibility, and a break from corporate politics. So what is the dilemma?
SHIFTING SANDS
Despite being a strong sector, a step into interim management as a career can be fraught with risk, often unlinked to general employability. Tulsiani highlights
two ways individuals can be affected. Firstly, “unlike permanent roles, interim managers are priced against fluctuating market rates.” Even if your experience is excellent and your ability good, you’ll always be more exposed than permanent employees to market changes. Secondly, as interims work on short-term contracts, the length of time between assignments can be long if demand is low. Tulsiani has recently seen “the longest periods of time between assignments in my 15 years’ experience of the market.” Interims must therefore be content with uncertainty. However, Nigel Peters, managing director at Alium Partners, a specialist provider of interim solutions, suggests that this isn’t a reason to avoid the career. Uncertainty is the other side to “seeking a different challenge” and risk a counterpoint to “preference for a flexible contracting environment.” Interims aren’t holding down cosy jobs for life, but risk is a holistic part the job’s character – and often part of the attraction.
and adapt themselves to employers’ needs. And the challenges involved are quite different from applying for a permanent role. Interims are effectively small businesses, with all the pressures this involves. They can, however, get assistance. The Interim Management Association is the professional body for the sector. It runs a series of monthly induction workshops which, according to its chairman Jason Atkinson, “are designed to help people decide if interim management is right for them and, if so, how to approach the market.” The workshops flow from a commitment by the IMA to launch a new industry standard. And being associated with this standard, through a connection with an IMA-approved recruiter, can provide extra credibility to any interim business case. Using a dedicated recruiter is essential. Interims gain a professional reputation through their successful completion of previous assignments, and it is important that those assignments suit the ability and career ambition of the interim. Failure, or walking away from a task, can indelibly mar the interim’s ability to find another position. A recruiter who understands what you want, and what you can realistically achieve, can reduce the risk of permanent credibility damage.
CREATING CERTAINTY
All this means that interim managers must work hard to differentiate, market
GETTY
CAN I ENTER, CAN I LEAVE?
Interims must be content to solve a problem and depart, without applause
By the nature of the role, interims must be capable of completing a specific task for a business, but demand for expertise changes. Not all knowledge is equally useful, and some problems can be more effectively solved in-house. As such, a potential interim should work out whether his or her skills are of use. Peters says that highly-regulated areas of finance often require interim solutions, and there is a specific need for those with the professional expertise to drive through complex regulatory change. Also, Tulsiani says that “premiums exist for business transformation leaders, and those who can create cost savings through smart sourcing and capital management.” Deciding whether to enter the interim market, therefore, should be a dilemma. It is not an easy career choice, the risks and difficulties involved are considerable, and the lack of an permanent, supportive structure around your role may be hard to accommodate. But for those with experience, ability, and a stomach for risk, a career in interim management could be an interesting alternative to the corporate structure. Just make sure you’re ready.
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JOBS ofthe WEEK INTERIM TRANSITION MANAGER CENTRAL LONDON
DIRECTOR PRIVATE BANKING DUBAI
INTERIM TAX PROJECTS MANAGER CENTRAL LONDON
HEAD OF VOICE OPERATIONS CENTRAL LONDON
STRATEGIC CHANGE PLANNER CENTRAL LONDON
An international human resources firm requires an experienced project manager to join its learning and development team. Candidates must have operated in a complex matrix environment.
A private banker is required at the Dubai office of a leading private bank. The job offers excellent career development. Candidates should have a strong Middle East client base.
A leading bank is looking to bring an experienced tax professional in to support the business through a time of change. The role has potential to go permanent.
A new role has opened up in an investment bank to lead a team of five voice engineers. Candidates should have extensive skills and experience of Cisco Call Manager.
A leading investment bank is looking to implement and be compliant with Fatca regulations. It requires a candidate with experience driving regulatory projects from beginning to end.
http://www.cityamcareers.com/job/5965
http://www.cityamcareers.com/job/6897
http://www.cityamcareers.com/job/9317
http://www.cityamcareers.com/job/11207
http://www.cityamcareers.com/job/8273
£650-£750 per day
$200k-$300k pa
£375-£425 per day
£75k-£95k pa, plus bonus and benefits
£450-£500 per day
THURSDAY 17 MAY 2012
24
THEFORUM
In association with
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London must resist its critics and adapt to survive the financial crisis L
ONDON’S great success over many centuries has stemmed from its adaptability. It has attracted talent and money from around the world. It has been outward-looking, sending argosies to the Levant, trading with an empire and more recently acting as the world’s favourite financial centre. Like all such success stories in the UK, it attracts its critics. Current jealousy of London’s success is directed to the rich people who dare to come and live in the centre, and to the banks that are part of the concentration of finance in the City and at Canary Wharf. Where other countries would be proud to create a mighty centre of world commerce, in the UK it has its detractors who want to pull it down. The present attacks on bankers seem to think bad banking and London are synonymous. I have no more time for a bank that needs public money to survive than the next man. Indeed, I wanted RBS to be put into controlled administration, with loans not share capital to keep the important parts going while adjustment was made.
Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate.
JOHN REDWOOD The bad bits should have been closed down, and the good bits sold off. The poor state of RBS in 2008 does not make me anti all bankers, nor determined to do the City down. I seem to remember that the headquarters of RBS was in Edinburgh. In its glory days it was a Scottish success story. Why then is it now evidence of the foolishness of London relying on bankers’ gold? Many London-based banks traded prudently and needed no state help. Many bankers in London and elsewhere do good work helping their customers and earning an honest living. The same is true of Northern Rock. If the Bank of England had acted as lender of last resort when the whole-
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sale markets dried up we might have had a happier outcome. Instead the bank went down, and taxpayers were obliged by the last government to put in large sums of bailout money. In its days of achievement Northern Rock was hailed as a great North East success, with its headquarters in Newcastle. Only once it became a pensioner of the state did we hear that London was typically living off the taxpayer, with assistance for one of its own. I suspect the Scottish and northeastern provenance of the two failed banks was an important consideration in the previous government’s mind when it decided on such an expensive comprehensive rescue. I wonder if it would have acted as charitably had it been a bank called Surrey or Kensington that had gone down? London was once a great trading city. It had its own well-developed docks, wharves, and warehouses. It was a major world centre for trade in commodities and finished goods. From brewing to building materials, from electricity generation to light manu-
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facturing, London was an important manufacturing centre in its own right. The ribbon development on the main arterial roads in the 1930s shows that a decade written off as a dark age by many had its brighter sides, with rising prosperity and many new jobs in adaptable Greater London. In recent decades London has accept-
Attacks on bankers ‘seem to think that bad banking and London are synonymous
ed industrial and dockyard decline and has moved on. What greater image of London’s ability to change and earn a new living could there be than the skyscrapers rising from the old docks around Canary Wharf? London has quietly added the London Eye to its heritage skyline of Big Ben and Westminster Abbey, and this year
adds a whole new Olympic Park to its transformed eastern approaches. There is a dynamism about the place, a willingness to take risks, an optimism that allows Londoners to shake off old ways of working and earning, and to find new ones. As a result many rich and talented people come to make London their home. Their ideas and their money helps fire the new waves of investment and activity that a thriving city needs. I hope as the crowds start to come to London for the Games, we will all welcome them and be proud of what London, our capital city, has achieved. At its best it blends the old and the new, the traditional and the exciting. As one visitor from Russia said to me when showing him around parliament, “You are a country at peace with your past”. There on the walls are portraits of the rebels and the establishment, the Puritans and the Catholics, the Cavaliers and the Roundheads. They all went to make the UK what it is today. John Redwood is the Conservative member of parliament for Wokingham.
or by email: [email protected] Top responses will be reprinted in The Forum.
Obama’s conversion to gay marriage will only help him if it’s principled
N
EWSWEEK’S latest cover proclaims “The First Gay President,” with a picture of President Barack Obama wearing a rainbow halo. Obama’s support for gay marriage is a first for a sitting president, a fact his allies in the press have lauded for the past week. David Cameron, who’s championed marriage without receiving similar plaudits, could only look on and wonder how Obama had done it. The initial response from some Republicans was cynical – that it was another Democratic ploy to shift the narrative from the economy to social issues, another distraction in the mould of the GOP’s alleged “War on Women.” It was nothing of the sort.
THE WHITE HOUSE RACE EWAN WATT The president claimed he took the position irrespective of statements made by his vice president and secretary of education. In truth, it was a discussion the president was ill-prepared for, one he would have preferred to discuss after his reelection. The president will now hope that his position requires no further clarification. This is unlikely.
Rather than plague Mitt Romney with a burdensome, unsympathetic fight on social issues, the Republicans have largely stayed silent. Using the issue cynically to mobilise the base would in any case likely backfire – as pollster Jan van Lohuizen highlighted earlier this week. Although there are differences between the states, most polls show that the national mood on gay marriage has changed, with a plurality now in support. And yet a New York Times/CBS News poll found that 67 per cent felt the president made his announcement for “mostly political reasons.” Romney will want to keep it that way. In an economy election year, he will be reticent to move off message
and discuss anything but jobs. Lost among all the plaudits was the fact that Obama’s stance on the issue is laissez faire; a personal opinion backed by rhetoric rather than legislation. For a Democrat, it is remarkable that Obama stipulated that the matter should be decided by the states, especially when his administration and party have a zest for federal solutions for almost every other public policy matter. How can the federal government legislate a “right” to health care, but delegate to states whether gay couples have a “right” to marry? His defenders claim that marriage has always been a matter for the states, and yet the Supreme Court’s ruling in Love vs. Virginia
(1967) and Bill Clinton’s signature on the Defence of Marriage Act suggest otherwise. The question is now in what mould the Democrats will translate Obama’s stance on gay marriage into the party’s 2012 platform. Momentous – or contentious – announcements will fail electorally if they are seen as politically expedient rather than principled. In the short term, the president’s stance has played well, but raised the prospect of people asking further down the line, “what’s next”? His supporters will demand action. Ewan Watt is a Washington DC-based consultant. You can follow him on @ewancwatt
THURSDAY 17 MAY 2012
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The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or comment at cityam.com/forum
RAPIDresponses
TOP TWEETS
Success isn’t bought Think don’t feel [Re: Do we need rules to stop football teams from buying success, Tuesday] Success can’t be bought, success can only be achieved through diligence and proper planning. Money in football only gives competitive advantage, it does not by itself lead to a favourable outcome. A financial fair play rule would not offer a level playing field, but automatically hand glory to already good teams. By what standard is a team like Swansea expected to compete with the likes of Arsenal or Manchester United if clubs are to “live within their means”? Football, like any investment, involves taking risk. Investors should be allowed to determine clubs’ worthiness themselves. Dayod Akanmu
[Re: Why personal choice in smoking or sex is the only measure that matters, yesterday] The analogy between Saudi repression and that of smokers is fantastic. It is interesting that health zealots always fail to see themselves as akin to any other suppressive group or government, that they are somehow different because of their “morality.” They are blinded by their causes and beliefs and will go to any lengths to enforce their will on those who do not need to be protected. For them it is OK to distort the facts or fabricate them if it furthers the agenda. Beware those who seek to protect us, because it is a ruse to make people feel rather than think. Ultimately it is designed to control the public rather than to protect. Jay Rift
Greek default within the Eurozone is most likely. Wholesale break-up is second most likely. Current policies are doomed. @yanisvaroufakis
The game between Hollande and Merkel on growth versus austerity has started. Who will blink first? Or will they find a middle ground? @Nouriel
Ken Livingstone’s Madame Tussaud’s waxwork has been removed and placed in the archive. A final indignity. @dylsharpe
Mervyn King is uncertain on inflation again. When will he attempt to sort it out? @atillatherover
Mervyn King says the Jubilee break will hit GDP. Should we have fewer bank holidays?
YES
NO
Eamonn Butler
Tom Hodgkinson
The main trouble with bank holidays is that you spend them sitting in the same traffic jam as everyone else. Why can’t we stagger our holidays and take them when we choose, instead of when politicians deem fit? Legally, UK workers don’t have an automatic right to paid leave on public holidays, but they do have a right to 28 days’ paid annual leave: so why preserve the barbarous relic of fixed holiday dates? Of course, politicians since the age of Caesar have loved dishing out holidays. Religious holidays were always days of rest, but in 1871 the Liberal government added four more (five in Scotland), and in 1978 the Labour administration added May Day to charm the unions. Today, each one (plus the 2012 Jubilee holiday), costs the economy £2.3bn in lost output. It’s time to denationalise Britain’s holidaymaking. Eamonn Butler is director of the Adam Smith Institute.
Feast days and holidays are a key part of everyday life, because all work and no play makes Jack a dull boy. In his magnificent 17th century self-help guide, The Anatomy of Melancholy, Robert Burton recommended “merriment” as a stress-reliever. Religions all recommend a day of rest, and before the Reformation in 1535, the Christian church gave us a right royal knees up every three or four weeks. Life is just too monotone without them. But now the puritanical Bank of England governor Mervyn King reckons that this year’s Jubilee celebrations will have a negative effect on GDP. This is smallminded. Quality of life is more important than output levels. We need more holidays and more leisure, not less. Bring on the bunting. Tom Hodgkinson is editor of the the Idler magazine and has recently started the Idler Academy.
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The MPC has put its incompetence on public display
T
HE latest inflation report from the Bank of England (BoE) makes it clear that the credibility of the Monetary Policy Committee (MPC) has been undermined further. The relatively sharp upward revision to CPI inflation forecasts out to the third quarter of 2013 is now rather more realistic, but that realism is tainted by the scepticism relating to previous forecasts which have proven to be woefully poor. Meanwhile, not everyone is reading between the lines carefully enough. The gilt market was heartened by the downward revisions to near-term GDP forecasts, most likely because it would appear to keep the “more quantitative easing (QE) at a later date” option open. However, the latter is a nonsensical deduction. There is a very distinct chance of more QE at a later date, but for a completely different reason or, rather, exactly the same reason as in the fourth quarter of 2011. Mervyn King noted of the balance of opinions on the MPC: “You can make an argument for doing more asset purchases or indeed an argument for making fewer asset purchases” – which is to say that opinions remain very polarised over QE. However, as King later noted, the Bank of England (BoE) would act if the Eurozone crisis escalates and again (that is, as in the second half of 2011) threatens banks’ funding – so this is the one thing the MPC agrees on as a reason for more QE. One has to laugh at the assertion by King’s deputy, Charles Bean, that the MPC was overly swayed by the experience of the early 1990s in terms of the impact (or lack thereof at the time) of a sharp depreciation in sterling on inflation. How could
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow
MARC OSTWALD the MPC collectively assume a comparison between the early 1990s and the post-2007 was valid? After all, the western financial system was not in total disarray then, even if the Scandinavian system collapsed at the time – in fact, the western financial system was in good health. Western world demand was still the key element in determining the prices of raw materials, food and energy prices at the time, with emerging market and Bric demand merely an addendum, and the impact of technological developments and the globalisation of production was only just starting. Global foreign reserves, the elephant in the room of current capital flows, stood at $1 trillion, were only $2 trillion even in 2000 but now stand around $9.5 trillion. The appalling dearth of lateral thinking on the MPC that Bean’s comments evidence, should in fact raise sizeable doubts about its competence, and by extension beg the question: sterling/gilts = safe haven. Are you sure? But prize for King’s least insightful comment (and I could use other, less complimentary terms) is this drivel: “There is no obvious reason to believe that we can’t get back to the level of output that we were on the pre-crisis trend path, but it may take 10, 15 or maybe even 20 years to get there.” Marc Ostwald is a strategist at Monument Securities.
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THURSDAY 17 MAY 2012
26
LIFE&STYLE TECHNOLOGY STOCKWATCH Platform: iOS Cost: 69p Track your investment portfolio on the go. This app will let you track unlimited stocks and pick your favourite ones to keep a close eye on. It draws detailed, up to date information from more than 50 exchanges across the world. It also comes with an extra security lock to make sure your information is kept private.
WORDS BY
STEVE DINNEEN
EVERNOTE Platform: iOS, Android, WP7, BlackBerry Cost: Free
DOCUMENTS TO GO Platform: iOS, Android, BlackBerry Cost: £6.99
This personal organiser app has it all. Sync notes, photos, to-do lists and voice memos across your devices – all with the ability to make detailed notes. Evernote also allows you to easily email your files to your contacts, making sharing data simple and intuitive.
If you need to quickly access work documents on the go, this handy app is essential. It is able to read multiple Microsoft formats, including Office, Excel and PowerPoint. You can also edit these documents and use tools including word count, undo, redo and replace.
Make your iPhone do the hard work for you
NOTE TAKER Platform: iOS Cost: £1.49 If your memory lets you down, Note Taker could be your salvation. It has a clever system for writing with your finger, where the character you are scrawling is faintly superimposed over your text, allowing you to see what you’re doing, while keeping track of your note. Great for short memos.
The top apps to shave valuable seconds from your day, by Steve Dinneen DROPBOX Platform: iOS, Android, WP7, BlackBerry Cost: Free (for 2GB) A list of office apps wouldn’t be complete without everyone’s favourite cloud storage solution: Dropbox. Its integration between desktop and your mobile devices is seamless and retrieving and saving documents is fast, intuitive and entirely painless.
CAMCARD Platform: iOS, Android Cost: £4.99
PERCENTAGES Platform: iOS Cost: 69p
If you’re the kind of person who has a drawer filled with business cards that will never be written up or filed, there is hope. CamCard lets you scan a business card with your phone’s camera, recognises the details and offers to store them as a contact. Also works with your Gmail or Exchange email account.
Don’t let a bad head for maths hold you back. Percentages will figure out a host of percentagebased queries (including percentage of a number; total after x percent is deducted; x is y percent of z). The interface is slick and very easy to use and allows you to customise settings like the number of decimal places.
SAISUKE Platform: iOS, Android Cost: £6.99
AUDIO MEMOS Platform: iOS, Android Cost: 69p
This powerful calendar app is on the expensive side but it makes up for it with a wealth of functions. It will sync your calendars across platforms (iCal, Gmail Calendar) and let you colour code and tag your appointments. It also has a back-up feature to prevent accidental data loss.
If you need to record that important meeting, this app won’t let you down. After recording, you have the option to email the audio file, although you will have to spend extra (59p to email, £1.19 if your file requires compression). Even so, this is one of the best recorders on the market – well worth it.
LEMON Platform: iOS, Android, BlackBerry Cost: Free Make sure you don’t lose out on your expenses with this app that lets you scan your receipts, group, tag and label them and email them to yourself. You can manually enter receipt information too, meaning you never have to lose out at the end of the month.
THINK OF ALL THAT TIME YOU’VE SAVED...
NOW HERE ARE SOME GREAT WAYS TO WASTE IT
Tiny Wings | 69p | iOS
Have a few minutes to spare? Then try playing Tiny Wings. The game is incredibly simple: press the screen to make your flightless bird charge down cliffs. Insanely addicitve: don’t play it on the circle line, you’ll be going round all day.
Minecraft | £4.99 | iOS and Android
This block-building game became a phenomenon when the Java version was released, with people crafting replicas of famous landmarks. Now you can play on your smartphone. Happy building.
Civilization Revolution | £1.99 | iOS
If you’re over 30, chances are a chunk of your life has been swallowed by Sid Meyer’s Civilization games. Now you can take over the world – or peacefully take your tribe on a journey through the millenia – on your iPhone.
Force = Mass x Acceleration | £1.99 | iOS
Or, to give this game its full title, “AaaaaAAaaaAAAaaAAAAaAAAAA!!! (Force = Mass x Acceleration)”, which is a really, really stupid name. You’re a base jumper leaping from a skyscraper, spray-painting buildings as you fall.
Reducing complexity has never been simpler. Designed for growing business, the IBM System x3650 M3 Express server with the latest Intel® Xeon® processor 5600 series can help you simplify your IT infrastructure. With simple start-up, intuitive management and tool-less design, this server is easy to deploy and manage—whether your IT infrastructure is physical or virtual, onsite or remote. Additionally, you get the valuable expertise of IBM Business Partners to create an IT environment optimised to keep up with tomorrow, today. Rated No.1 in Server Customer Satisfaction by TBR for the 9th consecutive quarter 1.
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LIFE&STYLE FASHION
cityam.com
WEDNESDAY 16 MAY 2012
Mango scarf print dress, £34.99, mango.com
Massimo Polomba Ella Narcissus yellow tote, £350, asos.com
Ultra-chic, this belted dress manages to evoke the golden hue of summer while keeping a solid work-worthy respectability. The mosaic is very on trend.
Hand-crafted in Italy, this gorgeous tote will carry your life in it easily – without looking sloppy. Wear with a black or grey suit for an elegant look.
- THE OLD CURIOSITY SHOP THE 445-YEAR-OLD SHOP THAT’S CHANGING WITH THE TIMES
A
t 445-years-old, the Old Curiosity Shop has seen a thing or two. As London has grown and shifted beyond recognition, the shop, nestled on Portsmouth Street in the West End, has been a constant reminder of how things used to be. What is even more astonishing, though, is how it has simultaneously adapted to suit its environment, remaining relevant over the centuries. The shop, which was immortalised in the Dickens novel of the same name, has sold antiques and general curios throughout most of its long life. But 20 years ago, its new owner switched to hand-made footwear. Now its distinctive sartorial creations have featured in fashion totems including Vogue, I-D and Marie Claire and it attracts as many fashionistas as history buffs. Built in 1567 from shipping wood, the exterior has changed remarkably little. Located between
Whistles dotty tweed skirt, £95, johnlewis.com Well-made and structured, this pencil skirt is a room-brightening statement piece which, paired with a neat black blouse and pumps, is the perfect way to dress for work.
Temple and Holborn underground stations, The Old Curiosity Shop sits amid some of the city’s most spectacular new architecture – it is a sliver of old London among the modern city lights. Customers are enthralled by its winding staircases, creaking floorboards, hidden nooks and unlikely angles – it really looks like something straight from the pages of a Dickens novel. The building’s fascinating history goes even further back than Dickens – it was once part of an estate given by King Charles II to one of his countless mistresses. In the Dickens novel, the virtuous young heroine, Nell Trent, meets a tragic end, turfed out of the eponymous shop and, eventually, dying young. The fate of the building, though, looks set to be less fraught: its protected status should mean the little store with the big history will still be around in another 500 years.
Mellow yellow: adding warmth to chilly spring Make like the sun and shimmer in golden hues to fight the cold, says Zoe Strimpel Next yellow stripe dress, £45, next.co.uk Boy. By Band of Outsiders Easy Cotton Poplin Shirt, £175, neta-porter.com
LAURA LEAN/CITY AM
One of the hottest brands around, this shirt is a prime example of the floaty, effortless look that’s made the brand popular. Easy, breezy and very nearly summery.
It’s too cold to wear this dress on its own, but paired with a cashmere cardi in white, yellow or black, plus some kitten heels and tights, you’ll be summery, bo-ho...and toasty.
Maxmara Sibari bag, £390, matchesfashion.com This bright, block-colour crocodileprinted leather bag has plenty of space but doesn’t look baggy: carry it about with your smartest work outfit for a Sloane Street look.
The Old Curiosity Shop today sells funky designer shoes. For the next month City A.M. and Brewin Dolphin will be shining a spotlight on a series of City Treasures as we celebrate some of the great places and institutions around us. Many of them are established with a long and interesting heritage – yet they still exude their core values based on service and excellence. Tomorrow is Fortnum & Mason.
www.brewin.co.uk
J. Crew sequined silk georgette top, £420, netaporter.com The combination of sequens and pale yellow make this an irresistably sexy piece for spring. Pair with a jacket and floaty knee-length skirt for work cocktails.
Textured peplum skirt, £34, topshop.com Stick this in your bag for after work and – worn with a white or black shirt – you’re good to go for a girl’s night out. It’s fun without being tarty thanks to the knee-skimming length.
SATELLITE& &CABLE CABLE SATELLITE
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cityam.com
TV & GAMES
THURSDAY 17 MAY 2012
BBC1 BBC1
BBC2 BBC2
6pm BBC News 6.30pm BBC London News 7pm The One Show 7.30pm EastEnders: BBC News 8pm CHOICE Planet Earth Live 9pm New Tricks 10pm BBC News 10.25pm Regional News 10.35pm Question Time 11.35pm This Week 12.20am Holiday Weatherview
6pm Eggheads: Quiz show, hosted by Dermot Murnaghan. 6.30pm Antiques Road Trip: Philip Serrell and Catherine Southon set out from Perth and arrive in Carlisle. 7.30pm Great British Menu 8pm Two Greedy Italians: Still Hungry 9pm CHOICE The Great Euro Crash with Robert Peston 10pm Grandma’s House 10.30pm Newsnight: Weather 11.20pm The Town Taking on China 12.20am BBC News
12.25am Sign Zone: The Truth About Tax – Panorama 12.55am Countryfile 1.55am Antiques Roadshow 2.55am Modern Spies 3.55am-6am BBC News
4am-6am BBC Learning Zone
SKY SPORTS 1
8.15pm Diving 9.45pm Live Cycling: Stage five of the Tour of California. 12am-12.30am Cycling: Giro d’Italia
7pm Sky Sports News at Seven 7.30pm Live Football League 10pm Test Cricket 12am Rugby Club 1am Football League 2.30am Premier League World 3am Test Cricket 5am-6am Ringside
ESPN
7pm Live Premier League Darts 10.30pm IAAF Athletix 11pm Time of Our Lives 12am Ringside 1am Sporting Greats 1.30am Superleague Netball 3.30am Time of Our Lives 4.30am The Rugby Club 5.30am-6am IAAF Athletix
6.15pm NBA Basketball 8.15pm Premier League Review 9.15pm Goal! Special 9.45pm Eredivisie 11.30pm Press Pass 2012 12am Live NBA Basketball 2.30am FIBA Basketball 3am Russian Premier League Review 3.30am Serie A Review 4am Press Pass 2012 4.30am Goal Show 5am-6am Premier League Review
SKY SPORTS 3
SKY LIVING
SKY SPORTS 2
7pm Criminal Minds 8pm Four Weddings US 9pm Battle of the Brides 10pm The Biggest Loser USA 11pm Unforgettable 12am Steps: On the Road Again 1am Criminal Minds 1.50am Bones 2.40am Medium 3.30am Bones 4.20am Nothing to Declare 5.10am-6am Jerry Springer
7pm The Rugby Club 8pm Live PGA Tour Golf 11pm European Tour Golf 1am America’s Cup World Series – Venice 1.30am America’s Cup Uncovered 2am-5am PGA Tour Golf
BRITISH EUROSPORT 7pm Cycling: Giro d’Italia
ITV1 ITV1
CHANNEL4 CHANNEL5 CHANNEL4 CHANNEL5 6pm The Simpsons 6.30pm Hollyoaks 7pm Channel 4 News 7.55pm 4thought.tv 8pm CHOICE Phil Spencer: Secret Agent 9pm The Hoarder Next Door 10pm 24 Hours in A&E 11.05pm The Secret Millionaire 12.10am Random Acts
6pm London Tonight 6.30pm ITV News 7pm Emmerdale 7.30pm The Great British Weather: Tonight 8pm Emmerdale 8.30pm Coronation Street 9pm Long Lost Family 10pm ITV News at Ten 10.30pm London News 10.35pm Piers Morgan’s Life Stories: Dennis Waterman
12.15am Sex, Lies and Rinsing Guys 1.10am Watching the Detectives: Channel 4 Dispatches 2.05am Extreme A&E 3am Unreported World 3.25am Hidden Talent 4.20am A Guide to Taking a Photo 4.25am Deal or No Deal 5.20am-6.05am Countdown
11.35pm The Late Debate 12.05am Jackpot247; ITV News 2.35am The Great British Weather: Tonight 3am ITV Nightscreen 4.35am-5.30am The Jeremy Kyle Show
BBC THREE
DISCOVERY HOME & HEALTH
7pm The Middle 7.30pm Modern Family 8pm Glee 10pm House 11pm NCIS: Los Angeles 12am Law & Order 1am Airline USA 2am Brit Cops: Frontline Crime UK 2.55am Big Trouble in Thailand 3.45am Body Language Secrets 4.35am Real Filth Fighters 5.05am-6am Don’t Forget the Lyrics
DISCOVERY
7pm Bear Grylls: Born Survivor 8pm Gold Rush 9pm The Ultimate Climb 10pm Auction Hunters 11pm Deadliest Catch 12am Bear Grylls: Born Survivor 1am The Ultimate Climb 2am Auction Hunters 3am Deadliest Catch
Place the numbers from 1 to 9 in each empty cell so that each row, each column and each 3x3 block contains all the numbers from 1 to 9 to solve this tricky Sudoku puzzle.
LAST ISSUE’S SOLUTIONS
QUICK CROSSWORD P A N T S U U A R S U E L A T C H L U I M A C R E A H E A R T A R F R O N T E A G U E T E R R A
G L A R R D P E R S A C D L Y A
A S S L T O E A L M D E U N E S G T O R B E I S N K S
KAKURO 2 3 7 1 3 6 1 2
8 5 6 9 7 7 9 6 4 8
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Fill the grid so that each block adds up to the total in the box above or to the left of it. You can only use the digits 1-9 and you must not use the same digit twice in a block. The same digit may occur more than once in a row or column, but it must be in a separate block.
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The nine-letter word was MAGNITUDE
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Using only the letters in the Wordwheel, you have ten minutes to find as many words as possible, none of which may be plurals, foreign words or proper nouns. Each word must be of three letters or more, all must contain the central letter and letters can only be used once in every word. There is at least one nine-letter word in the wheel.
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CHANNEL4, 8PM The property expert heads to Leeds, where he meets a man whose lifestyle is affecting his chances to sell his three-bed semi.
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PHIL SPENCER: SECRET AGENT
QUICK CROSSWORD
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The BBC business editor explores the history of the Euro, and finds out how a collapse of the common currency could affect Britain.
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THURSDAY 17 MAY 2012
FOOTBALL COMMENT TREVOR STEVEN
E
NGLAND manager Roy Hodgson’s decision to take John Terry and not Rio Ferdinand to the European Championship has stirred a hornets’ nest but I believe he is right; it would have been asking for trouble to take both. I’m not talking about suggestions the pair would not get along or whether that came into Hodgson’s thinking – we can’t know that – but I certainly accept there were sufficient football reasons to leave Ferdinand at home. Undeniably both are great players, superb readers of the game and brilliant motivators, but they also share a lack of pace that makes it too risky to use them together. At international level slow defenders get exposed, as England found to their cost at the last World Cup. Others’ claims were very hard to ignore. Joleon Lescott has been excellent throughout Manchester City’s Premier League winning campaign, while Gary Cahill has proven his quality since joining Chelsea and, crucially, has pace. Finally, it’s often overlooked but Terry offers much more of a goal threat. The Chelsea captain has six in 72 internationals, twice as many as Rio, who has more caps. This season Terry has netted seven in 48 – quite a tally for centre-back – while the Manchester United man has not scored a single goal in 38 appearances. I’ve no major complaints about the rest of the squad and agree with the inclusion of Alex OxladeChamberlain, despite his obvious shortage of experience. Steven Gerrard aside, there is a lack of dynamism in midfield and the Arsenal youngster offers that in abundance. He can play wide or centrally, has impressed in big games this season against top opposition such as AC Milan and looks certain to be a big part of England’s future, so phasing him in makes sense. The only minor gripe I have is over the selection of Stewart Downing, a winger who has two goals in 52 games all season for Liverpool – with none and no assists in the league. Manchester United’s Ashley Young would be my first choice on the left wing and OxladeChamberlain can play there too, so we would have had adequate options without Downing. Besides, the tactics I would employ would see the wide players encouraged to come in off the touchline and allow the full-backs to overlap. Glen Johnson and in particular Ahley Cole and Leighton
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Terry (front) and Ferdinand (centre) are too slow to play together, while the former offers a greater goal threat
Roy’s right: too big a risk to take Ferdinand and Terry
Baines are dangerous going forward and deliver highquality crosses for the likes of Andy Carroll to thrive on. An out and out winger such as Downing is not necessary in this system. I would rather have seen an extra space used to bolster a light pool of forwards. I’m sure Stoke’s Peter Crouch could have made an important contribution, especially in the first two games when Wayne Rooney is suspended. Crouch wouldn’t have to start but I feel his experience would have helped and potential partners like Jermain Defoe need someone like him to provide chances. Trevor Steven is a former England footballer who played in both the 1986 and 1990 World Cups and the 1988 and 1990 European Championships. He now works as a talent scout and
TREVOR’S XI Trevor Steven’s selection to start England’s first Euro 2012 match with France Goalkeeper: Joe Hart
Right-back: Glen Johnson Centre-back: Gary Cahill Centre-back: John Terry Left-back: Ashley Cole Midfield: Scott Parker
Midfield: Gareth Barry
Right wing: Theo Walcott
Att midfield: Steven Gerrard Left wing: Ashley Young
Centre-forward: Andy Carroll
Tactics: I would adopt a 4-2-3-1 formation, with Parker and Barry holding midfielders and Gerrard pushed on to play off Carroll. Wingers would be encouraged to drift inside and allow full-backs to overlap, knowing that Parker or Barry were there to cover.
Barton denies charge Euro call-up is surreal, admits in bid to reduce ban teenager Oxlade-Chamberlain BY FRANK DALLERES
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My initial reaction to Kenny Dalglish’s sacking was shock, but it’s impossible to ignore that their results – indeed all of their stats – have been terrible, especially in light of the investment made in the squad. Kenny does not come from a tactical background, and the kind of international players who populate Liverpool’s squad nowadays expect that. I’ve no doubt someone like Wigan’s Roberto Martinez would jump at the job, but I think they’d be better off with Sunderland’s Martin O’Neill or a left-field choice with a track record of winning, such as German Ralf Rangnick. Borussia Dortmund’s Jurgen Klopp is also highly regarded but I question whether he’d give up Champions League football for Liverpool. As for Rafa Benitez – I think we’ve seen with Dalglish how successful it is to re-appoint a previous manager.
QPR midfielder Joey Barton has accepted one charge of violent conduct from the Football Association but denied another in a bid to avoid a double-digit ban. Barton’s admission relates to his kick on Sergio Aguero following his red card against Manchester City on Sunday. His denial relates to an apparent attempt to headbutt Vincent Kompany seconds later. The Rangers star has requested a personal hearing to explain his defence to the FA’s disciplinary panel, who could find him guilty regardless. He is likely to be suspended for at least seven games, but the panel has the power to levy a tougher sanction. The club has also launched a probe into the incident.
BY SPORTS DESK STAFF UNCAPPED Arsenal starlet Alex Oxlade-Chamberlain admits he was stunned by his inclusion in England’s squad for next month’s European Championship. The 18-year-old, who has made just six Premier League starts, only found out yesterday morning when manager Roy Hodgson telephoned to break the good news. “I would have probably laughed if someone had told me I would be
in the Euro 2012 [squad] a year ago,” said the midfielder. “For everything to happen as quickly as it has, it has been surreal and I don’t think it has really sunk in properly yet.” Oxlade-Chamberlain is yet to earn a senior cap but has shone on rare outings for the Gunners this season, following last summer’s move from Southampton. He added: “I know I haven’t made it and I have a long way to go but this is the first step in what I hope to be a long and successful international career.”
cityam.com
SPORT
THURSDAY 17 MAY 2012
Defiant Strauss eyeing lengthy run as captain UNDER-FIRE skipper Andrew Strauss insists he is nowhere near the point of relinquishing his captaincy, as he prepares to lead England into their first Test of the summer today at Lord’s against West Indies. Strauss concedes his position as leader and opening batsman has been put under pressure by an uncharacteristically dire run of form that has gleaned just a solitary century from his last 50 innings. But he brushed off suggestions that his three-year stint as captain may be nearing an end and vowed to provide a robust response to his critics by hitting the runs that preserve England’s No1 world Test ranking. “It was obviously a big issue at the end of the winter, and I recognise as captain and as an opening batsman that I need to contribute. I fully intend to do that. I’ve got no reason in my mind why I shouldn’t go on and do that this summer,” he said. “If you’re too wedded to some ideal moment to step down, you can
be very surprised by it. If I feel like I’m still contributing and helping the side be better, both as a captain and batsman, then I don’t see any reason to change things. “It’s just not something I’ve thought about. I’d certainly like to be in a position to know when the right time is. I’ll obviously keep an eye out for it, but I don’t think we’re there at the moment – I don’t think we’re anywhere near there at the moment.” Strauss rejected spinner Graeme Swann’s depiction of his criticism as “a witch hunt”, following a winter in which England suffered a whitewash against Pakistan and could only draw the series in Sri Lanka. “It didn’t feel like a witch hunt; it just felt like the issue of the day, which is what happens,” he added. “The only way to switch attention elsewhere is to go out and perform, and that’s what I intend to do.” The first of three Tests against West Indies is expected to see Yorkshire’s Jonny Bairstow handed a Test debut in the middle order, with Ravi Bopara sidelined by a thigh injury.
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PA
BY FRANK DALLERES
Strauss takes a record of one century in his last 50 innings into today’s first Test
West Indies attack confident of Peterson: I’m not a cheat and upsetting favourites England won’t hand back Khan belts BY SPORTS DESK STAFF WEST Indies’ pace attack is sufficiently confident of skittling out England in the first Test that their bowlers are arguing over who will be first to bag a fivewicket haul. The tourists begin the match today as major underdogs but captain Darren Sammy revealed there is no shortage of confidence in his dressing room as they prepare to face the world’s No1 Test team at Lord’s.
“There’s been a lot of discussion in the dressing room about who’s going to put their name on the [honours] board,” said Sammy. “Kemar [Roach] said he’s going to be the first one; Ravi [Rampaul] said it’s going be him – and I myself think it’s going to be me as well. We left the Caribbean knowing it’s going to be a very difficult challenge. But we also know that if we can play well and put runs on the board we back our bowling attack to get 20 wickets and win a Test match.”
31
BY SPORTS DESK STAFF AMERICAN boxer Lamont Peterson has rejected Amir Khan’s calls for him to return his WBA and IBF light-welterweight titles to the Englishman. Khan made the demand after their scheduled rematch, which had been due to take place on Saturday, was called off following Peterson’s failed drug test. Peterson insists he is not a cheat and that synthetic testosterone pellets inserted into his hip before
his controversial win over Khan in December were necessary for medical reasons. His fate will be decided next month when the Nevada State Athletic Commission convenes to hear the case. “Let the commission decide, let the sanctioning bodies decide. Until that point I’m still the champ,” said Peterson. “I’ve never been a cheat. I don’t like it when people cheat. It’s just my word but the pellets didn’t do anything to help me beat him.”
IN BRIEF Cavendish leads Giro points race n CYCLING: Britain’s Mark Cavendish surged into a commanding lead in the race for the points jersey in yesterday’s Giro d’Italia 11th stage. Cavendish moved 12 ahead of Matt Goss as Italian Roberto Ferrari won the stage.
Wales wing Cuthbert France snub n RUGBY UNION: Cardiff starlet Alex
Cuthbert has rejected big-money offers from France to sign a new oneyear deal. The wing, 22, said his decision had been influenced by a desire to cement his place for Wales.
Shingler loses Scotland appeal n RUGBY UNION: London Irish back
Steven Shingler has lost his battle to represent Scotland rather than Wales. World chiefs ruled the Swansea-born 20-year-old had sealed his fate by playing for Wales Under-20s last year.
Beyond boundaries Investec is proud to be the title sponsor of English Test Cricket. At Investec, w e combine talent and expertise to form an enduring partnership for our clients. Our team is made up of specialist banking, asset management and w ealth & investment. Please note that returns are not guaranteed and some of our products w ill place your capital at risk. Passionate about the game, w e’ ve created the Investec C ricket Zone at investec.com/cricket complete w ith match stats, player profiles and the chance to w in match tickets.
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SPORT Dalglish axed 32
THURSDAY 17 MAY 2012
would’ve been too risky ‘for ItHodgson to take both Ferdinand and Terry to the European Championship
cityam.com/sport
Trevor Steven’s England squad verdict: Page 30
Formula One revving up for listing in two weeks’ time
as door opens for AVB return
EXCLUSIVE
BY FRANK DALLERES
FORMULA One’s eagerly anticipated £6bn flotation in Singapore will take place earlier than expected within the next two to three weeks, City A.M. understands. It had been feared global market turbulence would cause the initial public offering to be delayed until after the summer but the listing has now been given the green light, according to sources close to the situation. Between 20 and 30 per cent of the motor racing business will be offered in a deal that is expected to value Formula One at around £6bn. Private equity firm CVC Capital
BY FRANK DALLERES
Dalglish’s departure, and that of No2 Steve Clarke, leaves Liverpool FORMER Chelsea manager Andre without a manager, assistant, direcVillas-Boas last night emerged as a tor of football, head of sports science leading contender to replace Kenny and head of communications followDalglish after Liverpool’s American ing a spate of sackings. owners brought the Scot’s second Results aside, Dalglish also attractspell in charge to an abrupt end. ed criticism for spending more than Newcastle’s Alan Pardew, Wigan’s £100m on players such as Jordan Roberto Martinez and Swansea’s Henderson, Stewart Downing, Andy Brendan Rogers form a trio of rising Carroll and Charlie Adam who have stars also touted for the Anfield hotmade modest impacts. The 61-yearseat, while ex-Reds boss Rafael old, whose dismissal is thought to Benitez has been linked with a sensahave cost the club around £8m, used tional return. the club statement as a reminder that Dalglish was sacked yesterday his 16-month tenure had reaped 24 hours after returning some silverware. from showdown talks in “Of course I am disapthe United States, where pointed with results in the he was taken to task league, but I would not over Liverpool’s lowest have swapped the Carling Defeats in 28 games Premier League finish Cup win for anything as I for 18 years and worst know how much it suffered under points tally since 1954. meant to our fans and the Dalglish since Idolised by the club’s club to be back winning start of 2012 fans for his previous suctrophies,” Dalglish said. cess as player and manager, Ironically, the sacking came Dalglish’s popularity and a Carling on the day that Roy Hodgson, the Cup were not enough to offset the man swiftly dispensed with by thenowners’ fears that he could not delivnew owners and replaced by Dalglish, er Champions League qualification. named his first England squad. Chairman Tom Werner said in a Former Porto boss Villas-Boas is the Reds statement: “Results in the most intriguing candidate to be Premier League have been disapLiverpool’s fourth manager in as pointing and we believe to build on many seasons, having only been fired the progress that has already been by Chelsea in March after just seven made, we need to make a change.” months in charge.
GETTY
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Dalglish was sacked despite winning the Carling Cup in February
Race row did not influence Rio Euro 2012 snub, says Hodgson BY FRANK DALLERES ENGLAND manager Roy Hodgson insists his shock decision to omit Rio Ferdinand from his Euro 2012 squad and pick John Terry was based solely on “footballing matters” and not the latter’s ongoing race row. Chelsea captain Terry made the 23man list despite facing a criminal trial in July over allegations, which he denies, that he racially abused Ferdinand’s brother, QPR defender Anton, in a match last year. Teenage Arsenal midfielder Alex Oxlade-Chamberlain received his first call-up, as did Norwich goalkeeper John Ruddy, while
Hodgson says defender Ferdinand was left out for footballing reasons only
Hodgson, selecting his first squad since being appointed, named Liverpool’s Steven Gerrard captain for next month’s tournament. Manchester United’s Ferdinand was left out, however, though Hodgson denied his judgment had been affected by the possibility of bad blood between the pair making it impossible to select both defensive
stalwarts. “My decision with John Terry was based purely on footballing matters,” he said. “I was given a free hand as to the squad I picked. I realised there would be people who would raise eyebrows but that’s the decision that I’ve made; that’s the decision I shall live with.” Hodgson emphasised he did not omit Ferdinand, 33, over fears he would not cope with a demanding schedule. “I’d be lying if that was the major reason,” he added. “It was purely on other footballing reasons.” He cited Terry’s role in Chelsea’s strong finish to the season and rejected concerns that an impending trial would affect him. “It’s not distracted him in lifting the FA Cup and helping his team reach a Champions League final,” said Hodgson.
Ecclestone owns a 5.3 per cent stake
EURO 2012 SQUAD Name
Club
GOALKEEPERS
Joe Hart Robert Green John Ruddy
Caps Goals
Man City West Ham Norwich
17 11 0
0 0 0
Glen Johnson Ashley Cole LeightonBaines Phil Jones John Terry Gary Cahill Joleon Lescott
Liverpool Chelsea Everton Man Utd Chelsea Chelsea Man City
35 93 7 4 72 8 14
1 0 0 0 6 2 0
Gareth Barry Scott Parker FrankLampard Steven Gerrard(c) James Milner A OxladeChamberlain Ashley Young Stewart Downing Theo Walcott
Man City Tottenham Chelsea Liverpool Man City Arsenal
52 11 90 90 24 0
3 0 23 19 0 0
Man Utd Liverpool Arsenal
19 5 33 0 22 3
Wayne Rooney Andy Carroll Danny Welbeck Jermain Defoe
Man Utd Liverpool Man Utd Tottenham
73 28 3 1 4 0 61 5
DEFENDERS
MIDFIELDERS
FORWARDS
Partners is believed to be looking to reduce its 63.4 per cent stake, which it has held since 2006, perhaps to below 50 per cent. It is thought that an encouraging initial response to Facebook’s IPO has helped expedite Formula One’s listing, despite ongoing uncertainty in the euro zone. Banking heavyweights UBS and Goldman Sachs have been hired to lead the IPO. Morgan Stanley, Banco Santander in Spain, Singapore’s DBS Group and Malaysian CIMB have been hired as bookrunners. UBS and Santander are also major sponsors of the sport. London-based Formula One is run by long-standing motorsport tycoon Bernie Ecclestone, who owns a 5.3 per cent stake and has grown annual revenues to an estimated £1bn. The estate of Lehman Brothers owns 15.3 per cent, Ecclestone’s exwife Slavica 8.5 per cent and other minority investors 7.5 per cent. Formula One’s image suffered last month when its visit to the Middle East for the Bahrain Grand Prix was disrupted by civil unrest in the Gulf kingdom. Premier League football giants Manchester United shelved plans for their own listing in Singapore in September amid market volatility.
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Fi n a l s Da y
P UKKAP I CNI CP ACKAGE
GOURME TBARBE QUEP ACKAGE
P riv ate or s haredtablesof10or 12 in The Hurlingham Clubplusacces s to priv ate pitch s ide Corporate E nclos ure in Hurling ham P ark
P riv ate or s haredtablesof10in all day , pitch s ide marquee andg arden in Hurling ham P ark Corporate E nclos ure
P riv ate or s haredtablesof10in all day , pitch s ide marquee andg arden in Hurling ham P ark Corporate E nclos ure
12:00pm Veuve Clicquot Champagne reception with canapés and sumptuous lunch with selected wines, coffee and chocolates in the iconic Hurlingham Club 2:30pm Guests escorted to exclusive pitch side marquee in Hurlingham Park 2:45pm POLO MATCH 3:30pm Devils Horsemen Display 4:00pm Afternoon Cream Tea by “rhubarb” served buffet style in Corporate Enclosure 4:30pm POLO MATCH 5:30pm Devils Horsemen Display 6:30pm POLO MATCH 9:00pm Grounds close
12:00pm Veuve Clicquot Champagne on arrival in Hurlingham Park Corporate Enclosure
12:00pm Veuve Clicquot Champagne on arrival in Hurlingham Park Corporate Enclosure Entertainment on Polo Field, including Devils Horsemen Display Team 12:45pm Substantial BBQ lunch with selected wines (one bottle per two guests), coffee and chocolates
Complimentary wines, beers and soft drinks served (2.30pm to close) Complimentary souvenir programme (one per two guests) £ 415per pers on ( + v at)
Individual 3 course picnic basket style lunch with homemade artisan breads and selected wines (one bottle per two guests) coffee and chocolates 2:45pm POLO MATCH 3:30pm Devils Horsemen Display
2:45pm MINT Polo in the Park Plate Final
4:00pm Afternoon Cream Tea
3:45pm Devils Horsemen Display
4:30pm POLO MATCH
4:00pm Afternoon Cream Tea
5:30pm Devils Horsemen Display
4:30pm MINT Polo in the Park FINAL
6:30pm POLO MATCH
6:00pm Prize Giving
8:00pm Grounds close
7:00pm Grounds close
Complimentary souvenir programme (one per two guests)
Complimentary souvenir programme (one per two guests)
£ 220per pers on ( + v at)
£ 210per pers on ( + v at)
Hos pitality E nquiries : Rachel Roullier 02079365284rachel@city ev ents .uk.com
www.mintpolointhepark.com
