Cityam 2012-09-12

BUSINESS WITH PERSONALITY

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n Growth forecasts slashed n Burberry shares slump n Leader-in-waiting goes on weak global economy on falling Chinese demand missing for key meetings BY TIM WALLACE

Premier Wen Jiabao expects growth of 7.5 per cent this year – well down from 9.2 per cent in 2011 has ground to a halt in the months since June as luxury sales in China have slumped. Domestic firms are also suffering. Chinese companies’ borrowing is relatively subdued according to data out yesterday, while imports fell 2.6 per cent in August and export growth slowed to 2.7 per cent. Industrial production growth slowed from 9.2 per cent in July to 8.9 per cent in August, while the official

BURBERRY: Page 9

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of the current state of the economy,” said the bank’s analysts. Fashion giant Burberry yesterday was forced to warn investors that Chinese demand has been lower than hoped, knocking £1bn off its market value as the firm’s stock dropped 19 per cent. The FTSE 100 firm had previously performed strongly through the financial crisis in large part due to demand from Asia, but sales growth

manufacturing purchasing managers’ index – an influential indicator of business activity – turned negative last month at a nine-month low of 49.3. “This reinforced recent evidence that the Chinese economy is not yet responding to the authorities’ stimulus efforts,” said Stefan Angele from Swiss & Global Asset Management. However, households’ borrowing did increase strongly last month, perpetuating the country’s property boom despite efforts to slowly deflate the bubble. Inflation rose from 1.8 per cent in July to two per cent last month, hurting hopes of more stimulus from the authorities, though the rate is not yet dangerously high. And Standard & Poor’s recently warned that any additional stimulus package risks pumping money into bad investments – raising the spectre of a banking slump or a local government debt crisis, as both sectors have boomed in recent years. The government pushed banks to lend to local governments through the financial crisis, allowing them to spend more on infrastructure investments. But this has left banks with non-performing loans, pushing the government to find more innovative solutions to boost lending and investing – for example, last month it allowed local authorities to securitise loans. L

ECONOMISTS have slashed China’s GDP growth forecasts as the emerging giant stumbles on the twin pressures of the global economic slump and bad domestic investments. Premier Wen Jiabao was forced to hint that he could use the remaining 100bn yuan (£9.8bn) in the government’s fiscal stability fund to boost growth – although analysts have warned that large sums of government-led spending have been invested poorly, creating problems of its own. Wen told the World Economic Forum he expects China to hit its 7.5 per cent growth target for this year, well down from the 9.2 per cent experienced last year, though even this reduced target may be missed. And just as the country’s astonishing boom comes to an end, leader-inwaiting Xi Jinping has disappeared from public view, sparking a storm of controversy and increased uncertainty about China’s future direction. Xi has not been seen since the start of the month and has missed public events and meetings with US secretary of state Hillary Clinton. Economists at Barclays have cut their 2012 growth forecast from 7.9 per cent to 7.5 per cent, and their 2013 outlook from 8.4 per cent to 7.6 per cent, while ING expects GDP growth to come in at 7.1 per cent this year – the slowest rate in over 20 years. “We think a growth recession – low growth and low inflation – not stagflation, is a more apt description

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Sir Mervyn’s job set to be advertised BY JULIAN HARRIS THREADNEEDLE Street’s top job will be publicly advertised for the first time in history at the end of this week, as the government kicks off its search for the next governor of the Bank of England. Current Bank chief Sir Mervyn King steps down at the end of June 2013, and is not allowed to run for a third term. The new man or woman will be granted a fixed eight-year term for the role, which pays over £300,000 per annum plus pension. “The successful candidate must demonstrate that they can successfully lead, influence and manage the change in the Bank’s responsibilities, inspiring confidence and credibility,” the advert says. The new governor will head not only the Bank’s monetary policy, but crucially the wide-ranging new regulatory powers that it is set to adopt. “An advanced understanding of financial markets and good economic knowledge” is necessary, the advert says. “He or she will be a strong communicator, have good interpersonal skills and will be a person of undisputed integrity and standing.” Two senior Treasury civil servants will head the interview panel along with the chair of the Bank’s Court of Directors. The chancellor and Prime Minister will recommend their choice to the Queen. The Treasury Select Committee will “hold a precommencement hearing” with the proposed new governor.

Share of UK exports to Eurozone dips to record low BY JULIAN HARRIS

borders of the EU. “Tellingly, non-EU exports have now been greater than exports to the EU for three consecutive months,” commented Colin Edwards from the Centre for Economics and Business Research (CEBR). “Taking the three months to July together, the UK

FTSE 100 n 5,792.19 -1.01 DOW L 13,323.36 +69.07 NASDAQ L 3,104.53 +0.51

£/$ 1.60 unc

£/€ 1.25 unc €/$ 1.28 unc

The data may benefit the UK’s third quarter GDP figures, providing some relief for chancellor George Osborne. Yet many analysts are unconvinced that July’s figures signal the start of an exports boom. “With global growth set to remain subdued, a further marked pick up in demand for UK exports looks increasingly unlikely,” said Emily Nicol at Daiwa Capital Markets. ALLISTER HEATH: Page 2

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George Osborne hopes for an exports boom

exported around 3.9 per cent, or £1.4bn more to non-EU nations,” he added. Overall, the UK’s trade deficit for goods and services combined shrank in July to £1.5bn, down from £4.3bn in June, the ONS said. The deficit of £7.1bn for the trade of physical goods was partly offset by an estimated surplus of £5.6bn for services.

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THE PROPORTION of visible British exports sent to countries that now make up the Eurozone has sunk to its lowest level since records began in 1988, new data revealed yesterday. UK-based companies exported £25.78bn-worth of goods in July, with only £11.24bn heading to the Eurozone. That ratio to euro area countries, 43.6 per cent of total British exports, was the lowest in around 25 years, the think tank

Open Europe noted. The full trade data, released yesterday by the Office for National Statistics (ONS), also showed that exports of goods beyond the wider European Union area exceeded exports to EU states. British goods sold into EU countries rose by £0.9bn in July to a total value of £12.5bn, yet exports to the rest of the world shot up by £1.3bn, to reach a total of £13.2bn. Over half (51.4 per cent) of goods were therefore sent beyond the

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WEDNESDAY 12 SEPTEMBER 2012

NEWS

To contact the newsdesk email [email protected]

The Eurozone is becoming less important for UK exporters

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NE of Britain’s biggest problems is that its trade is unbalanced: UK companies still rely too much on European markets, which will be sluggish at the best of times, and insufficiently on emerging markets, which will continue to grow at a very fast rate over the next few years, China’s current slowdown notwithstanding. The crisis in the Eurozone has been bad for the UK but at least it is forcing many firms to look further afield for growth. The proportion of UK goods exports going to Eurozone countries fell to 43.6 per cent in July, the lowest share since records began in 1988, according to an analysis of the official data by Open Europe. Just 48.6 per cent of the UK’s exports of goods went to the EU in July, with the rest of the world accounting for 51.4 per cent. Even these figures exaggerate the

UBS informant awarded $104m BY MARION DAKERS THE WHISTLEBLOWER in a landmark tax-evasion case against UBS has won an eye-watering $104m (£64.7m) reward from the US authorities. Bradley Birkenfeld was freed from prison last month after a court found that he withheld some information, but remains under home confinement in the States. The former UBS banker been awarded a cut of the $780m that the bank paid three years ago to settle charges that it helped American clients hide $20bn.

US may lose Moody’s AAA BY BEN SOUTHWOOD

ALLISTER HEATH importance of European demand: a sizeable chunk of the goods sent to the Netherlands is subsequently shipped off again, often to all over the world. Non-EU exports of goods have now been greater than exports to the EU for three consecutive months. Over the three months to July , the UK exported around 3.9 per cent, or £1.4bn more to non-EU nations. Crucially, it is not just about goods: the UK’s July global trade deficit in goods was £7.1bn but a very large

REGIONAL GROWTH NONSENSE

When the private sector fails, and especially if it rewards itself for doing

so, it is rightly panned by politicians. But when ministers fail, they just move on and award themselves an even larger budget – or in this case, create a new, state-owned bank for themselves. Take the regional growth fund fiasco, revealed yesterday by the House of Commons’ Public Accounts Committee. Two years after the fund’s launch, just £60m of the £1.4bn in funding has actually been made available, with a trivial effect on jobs. It’s been an embarrassing, unmitigated disaster. So why are no heads rolling? The good news is that Vince Cable’s latest toy is merely a repackaging of existing schemes, not a genuine “bank” (as defined by the FSA), which means it could end up no more relevant and hence no more likely to do silly things than the ill-fated growth fund.

Cable defends his plan for new British business bank BY JAMES WATERSON

BANK CHECK

Speaking of accountability, it is good news that the job of the next governor of the Bank of England is being advertised publicly. But detailing a somewhat obtuse job specification that rules out most of the possible candidates is not enough. The governor is the most powerful non-elected official in the UK. There ought to be more openness at every round. For a start, once all the applications are in, the government should publish a shortlist of the top five candidates, explaining why they have been selected for a second round. Will it have the courage to go down this road, and explain and sell to the public this most vital of appointments? We shall soon find out. [email protected] Follow me on Twitter: @allisterheath

Direct Line IPO nears take-off BY DAVID HELLIER ROYAL Bank of Scotland is widely expected to officially launch the sale process for the IPO of its insurance unit Direct Line as early as tomorrow, sources said last night. Some say that the float, which will be the largest in London this year if it goes ahead, will value the business at around £3bn. But there are concerns that the sale, which is being forced on the bank by regulators, is taking place at a less than ideal time. The IPO is being led by Goldman Sachs, Morgan Stanley and UBS.

EU eyes grip on UK lenders Cable said the government would develop long-term partnerships with key sectors Enterprise Finance Guarantee. “While businesses will be heartened to hear strong support for the establishment of a business bank, this must be more than just a vehicle for existing government schemes,” he said. Cable insisted that it would be far more substantial than that but said the “scale, scope and timing” have yet to be confirmed. Because the government-backed organisation is unlikely to have its own banking licence it will probably be limited to working through existing lenders. Speaking at the launch of the government’s new industrial strategy, Cable

also said the government would look to increase procurement from UK firms and announced a £67m investment in vocational youth training programmes designed in co-operation with leading companies. Any new business programme will hope to do better than the regional growth fund, one of the government’s flagship schemes. Yesterday the Public Accounts Committee said just £60m of the £1.4bn fund had reached businesses, creating 2,442 jobs out of the 36,800 expected during the scheme’s lifetime. THE FORUM: Page 18 L

VINCE Cable yesterday insisted that the government’s proposed business bank will make a difference to small companies, despite fears that it could be little more than a rebranding of existing government lending programmes. Discussions over the format of the bank, which will target firms who cannot access funds from traditional lenders, are ongoing within the government but Cable hinted that it could be unveiled as part of the Autumn Statement, which is due on 5 December. Yesterday the business secretary told City A.M. that the bank would not be directly controlled by the government: “I’m not a banker and I have no qualifications to be a banker. Government should not be in the business of making individual decisions of that kind. “What we are identifying is the areas where there is currently a weakness. One of those is long-term, patient capital, another is indirect funding to challenger banks.” John Longworth, director general of the British Chambers of Commerce, welcomed the announcement but raised fears that the bank could simply involve unifying ongoing programmes such as Funding for Lending and the

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THE US will lose its treasured tripleA status if it fails to impose spending cuts, or otherwise move its fiscal situation into more prudent territory, ratings agency Moody’s said yesterday. “The direction of the US rating and its outlook will most likely be determined by...budget negotiations during the course of 2013,” a Moody’s report revealed yesterday. The document warned that if the trajectory of the federal debt-to-GDP ratio wasn’t reversed, the US would likely be cut to an Aa1 rating.

EDITOR’S LETTER

share of that was offset by a £5.6bn surplus in services trade. The latter, as I have long argued, is essential to the UK’s long-term economic prosperity. London and the south east, in particular, sell a huge amount of financial and business services to the rest of the world, including banking, fund management, accountancy, consulting, IT, architecture, education and much else besides. The government’s job ought to be to make the UK economy more competitive, not to try and work out which sectors will be the best exporters. There are only two certainties: services – not just manufacturing – will play a key role; and the EU’s importance to Britain will keep on declining.

BY JAMES TITCOMB EU OFFICIALS will today unveil controversial plans to hand greater powers over British banks to European regulators, in a move that will stoke fresh tensions between the UK and Brussels. As part of plans for a Eurozone banking union, the European Banking Authority – which governs national regulators – would be given the authority to impose EU law on the City and demand banks be bailed out. The reforms, tabled by the European Commission, must now be passed by the European Parliament.

WHAT THE OTHER PAPERS SAY THIS MORNING News Corp shakes up management Kremlin shields Gazprom from EU The Kremlin has moved to shield Gazprom from an EU anti-monopoly investigation in a deepening standoff over gas prices, warning that it will not co-operate with actions deemed to be against its interests. A decree signed yesterday day by Vladimir Putin aims to protect “strategic” companies operating abroad, demanding that any foreign organisation requesting information, assets or changes to contracts from strategically important companies must first seek permission from the Russian government.

News Corp has appointed Paul Cheesbrough, the man credited with introducing the Times and Sunday Times paywall, to be its chief technology officer in another management shake-up at Rupert Murdoch’s media empire before its planned split into two companies.

Titanic special effects company sinks Clegg embroiled in row over gay The company that made the special effects marriage after bigots comment for Titanic has sunk under its debts. Digital Domain, which was founded by film director James Cameron, declared Chapter 11 bankruptcy protection yesterday.

GoDaddy denies hack attack

Herbalcos looking to clean up

GoDaddy, the web hosting firm, said that Monday’s widespread outage, which affected thousands of websites, was caused by technical difficulties, not a hacking attack as had been suggested.

Herbalcos International, a Chinese maker of detergent and shampoos, is to float on London’s AIM in an initial public offering expected to value it at between £75m and £80m.

CITYAMCAREERS.com

Nick Clegg is embroiled in an embarrassing row over homosexual marriage after issuing a statement denouncing opponents of the coalition’s plans for same-sex unions as “bigots”

Eurozone test as Dutch go to polls The Eurozone faces a major political test today as the Netherlands votes in elections expected to weaken Angela Merkel's grip on Europe.

McDonald's August sales rise 3.7pc McDonald's global same-store sales rose 3.7 per cent in August as weak performance in southern Europe weighed on the world's largest fast food chain.

Israel blasts US over Iran The rift between top US and Israeli leaders appeared to deepen as prime minister Benjamin Netanyahu levelled the sharpest attacks in years by an Israeli leader on Washington over differences on how to address Iran's nuclear programme.

The new jobs website for London professionals

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WEDNESDAY 12 SEPTEMBER 2012

NEWS

Morgan Stanley claims win on Citi broker sale BY HARRY BANKS CITIGROUP yesterday agreed to slash the value of its brokerage unit, allowing joint owner Morgan Stanley to buy it out for a fraction of the value Citi hoped for. Citi had valued its 49 per cent stake in Morgan Stanley Smith Barney (MSSB) at $11.3bn (£7bn), but the total valuation of $13.5bn puts its share’s worth at just $6.4bn – a major victory for the buyers. The joint venture was established in 2009 in the wake of the financial crisis, with Morgan Stanley always expecting to buy the other stake and take full control of the brokerage. The deal will see Morgan Stanley buy another 14 per cent of MSSB now, and Citigroup’s remaining 35 per cent stake by 1 June 2015.

Before the deal was struck Morgan Stanley had valued the other share of the brokerage at $9bn, reflecting its weak profits. Meanwhile Citigroup had hoped to play up the joint venture’s better longer-term prospects. The two had taken the disagreement to independent arbitrators, but yesterday said they had come to the agreement themselves. Morgan Stanley boss James Gorman called the deal a “mutually beneficial agreement” that “gives both parties certainty and transparency on price and timing”. Citigroup’s chief executive Vikram Pandit said “as we have shown, the more we put the past behind us, the more we can focus on our future, which is in the core businesses in Citicorp”.

Vikram Pandit hoped Citi could get a bigger payout

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Deutsche plans more job cuts in big shake-up BY TIM WALLACE

John Kingman has spent two years working at Rothschild

Bailout chief Kingman returns to Whitehall with Treasury job BY CITY A.M. REPORTER JOHN Kingman, who oversaw Britain’s bailout of its banks in the financial crisis and then led the body responsible for the shareholdings, is to return to the Treasury after two years as a senior banker at Rothschild. Kingman will next month return to the Treasury as a second permanent secretary, responsible for its economics function, particularly growth, financial services, and infrastructure. It is part of a restructuring of the Treasury’s senior management team announced yesterday around

its two functions as an economics ministry and a finance ministry. Kingman, 43, has been global cohead of the financial institutions group at investment bank Rothschild since 2010. He was the first chief executive of UK Financial Investments (UKFI) from 2008 until November 2009, where he was responsible for overseeing the government’s holdings in Royal Bank of Scotland, Lloyds and Northern Rock. The Treasury named Tom Scholar as second permanent secretary responsible for the finance ministry function.

BONUSES, jobs and dividends all face further cuts over the next three years as Deutsche Bank tries to chop costs and position itself for growth in the longer term, the bank’s bosses announced yesterday. New co-chief executives Anshu Jain and Jurgen Fitschen revealed the results of their review 100 days into the job, telling an investor conference that they will trim €4.5bn (£3.6bn) off the bank’s cost base over the next three years, at a pace of roughly €1.5bn per year. The pair hope to raise the bank’s core tier one capital ratio to above 10 per cent by 2015, responding to investors fears that the last year’s ratio of less than six per cent was worryingly low. They also announced plans to raise the return on equity to above 12 per cent, from eight per cent last year, and to cut the cost-income ratio from 78 per cent to below 65 per cent. With high pay as one of the major costs in the bank, they plan to trim bonuses and lengthen the vesting period for share awards, as well as more job cuts. That is in addition to the 1,900 job losses announced in July, most of which will fall outside Germany. Markets approved of the new goals, pushing up shares 4.4 per cent in the day.

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WEDNESDAY 12 SEPTEMBER 2012

BY JAMES TITCOMB FACEBOOK’S chief executive Mark Zuckerberg defended the company last night in his first public speech since the social network’s disastrous flotation, moving shares up more than four per cent and promising a number of changes to the business. Speaking at San Francisco’s TechCrunch Disrupt conference, Zuckerberg admitted that the company’s performance since May’s initial public offering had been “disappointing” but said it was seeing promising signs in its mobile advertising operations.

Mobile has been seen as the firm’s Achilles’ heel due to the difficulty of placing ads on a smaller screen, but Zuckerberg denied Facebook was making a phone, claiming it “would be clearly the wrong strategy for us”, saying he was focusing on integrating with existing mobile operating systems. Shares rose 4.58 per cent in afterhours trading last night to $20.32. Zuckerberg promised that “in the next six to nine months a lot more exciting stuff is going to come,” and hinted that Facebook was working on rivalling Google by expanding its search operations.

BY JAMES TITCOMB CHINESE telecoms company Huawei yesterday confirmed a £1.3bn expansion in Britain that will create around 700 jobs, following talks between the company and the UK government. David Cameron hailed the move, saying it “demonstrates once again that the UK is open for business”, while Huawei’s chief executive Ren Zhengfei said Britain is “one of the most important markets in which Huawei has invested”. Huawei recently became the world’s biggest telecoms equipment firm but has seen global expansion blighted by fears over alleged links to the Chinese military.

BY JAMES TITCOMB DIGITAL music streaming provider Omnifone yesterday reported its first profit since it launched nine years ago. The company, which has launched music services for Sony and BlackBerry phones as well as its own Rara operation in the last year, said revenue had more than doubled to £29.5m in the year to May as it posted earnings of £3.8m. Chief executive Jeff Hughes attributed the “fantastic momentum” to faster internet services and the explosion in smartphone ownership, and said Omnifone plans to expand into new markets and make more

New Everything Everywhere 4G service unveiled BY JAMES TITCOMB EVERYTHING EVERYWHERE, the parent company of the Orange and TMobile phone networks, yesterday announced the launch of a third network for its 4G mobile broadband service and a rebranding of the firm. Both the new service and the parent company will now be known as “EE”, a move that follows a branding review held over the last year. The EE network will be the first in the UK to offer 4G internet, which will be around five times faster than current mobile speeds, when it launches in the coming weeks. Chief executive Olaf Swantee also announced the firm would offer fixed line fibre optic broadband under the EE name, becoming the first mobile operator to compete with the likes of BT.

EE’s chief marketing officer Gerry McQuade told City A.M. that there are no plans to offer 4G services on the Orange and T-Mobile networks, but that the rebranding – which will also see the firm’s 700 high street stores come under the EE name – was not part of a plan to phase out the other networks. “The other brands stand for something different but they will remain in our portfolio for a long time to come,” McQuade said, claiming Orange and T-Mobile will still exist in a year. Swantee announced a list of handsets available at EE’s launch, including an exclusive deal for Nokia’s flagship Lumia 920, and hinted that Apple’s new iPhone – set to be announced today – will also be on the network.

EE has an exclusive deal to sell Nokia’s Lumia 920 phone

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Huawei to put Omnifone reaches first profit £1.3bn into UK as music streaming takes off acquisitions after recently buying Swedish online music firm Global Mediabank. “The growth of smartphones, connected devices and the availability of high speed connectivity has led to an increased demand for cloud-based music services, opening up a land grab opportunity for the digital music industry,” Hughes said. “Our sights are set on new market expansion, business development and market consolidation.” British spending on music streaming services such as Spotify will rise 42 per cent this year while physical sales fall 30 per cent, according to figures from Strategy Analytics.

CITYVIEWS ARE YOU EXCITED BY THE

PROSPECT OF A 4G MOBILE?

” ” ”

Zuckerberg’s defence rallies Facebook stock

NEWS

Interviews by Will Calder

JOHN LEESE

GHANA INTERNATIONAL BANK

I work in IT so have a vested interest, but not quite at the moment. Until the tech stabilises and becomes more widely available, I’m going to wait for the market.

EE chief executive Olaf Swantee is launching the UK’s first 4G network

High speed internet on your phone Q A

When will 4G be available on my mobile phone?

EE has started testing ahead of a rollout in the coming weeks in London, Cardiff, Birmingham and Bristol, with 12 other cities to follow by Christmas and more expansion next year. Only new EE customers will have 4G, although chief executive Olaf Swantee said he would make it easy for Orange and TMobile users to switch network.

about those on Vodafone, O2 and Three? QWhat A

Other networks will roll out 4G services in the second half of 2013

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QandA

after communications watchdog Ofcom auctions off 4G-approved network spectrum later in the year.

phones and tablets will be able to take advantage of EE’s 4G network? QWhat A

Few current phones are equipped to run EE’s 4G network, which uses a frequency different to the US 4G networks that many are designed for. Updated versions of these handsets are being released however, and EE will have several 4G-equipped phones when it launches, probably including the iPhone 5. The latest iPad cannot use EE’s 4G network however.

CRAIG ROBERTS INITIAL

I live in Northamptonshire in a rural location and we don’t have 3G there so I don’t think it would be a lot better there, certainly here though.

ALEX BENNISON

MODIS INTERNATIONAL

At the moment 3G is shocking and nowhere near as quick as it needs to be. 4G is certainly going to be attractive with new handsets coming out.

These views are those of the individuals above and not necessarily those of their company

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PPI complaints soar as banks struggle under weight of claims BY TIM WALLACE COMPLAINTS over banks’ slow or unsatisfactory responses to PPI complaints soared over the first six months of 2012, according to data published yesterday by the financial ombudsman service (FOS). The mis-selling scandal has seen banks and other financial institutions pay billions in compensation to customers, and shows little signs of slowing down. The FOS received 85,562 complaints from January to June, up 73 per cent from 49,419 in the previous six-month period.

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WEDNESDAY12 SEPTEMBER 2012

NEWS

Barclays was the worst hit, with 19,522 complaints, up 179.9 per cent. However, once banks’ subsidiaries are included Lloyds group saw 20,232 PPI complaints, compared with Barclays group’s 19,789. Building societies have also seen complaints – 3,892 were seen against Nationwide, up 118.9 per cent. Customers who think they may have been mis-sold PPI can approach their banks, who have six weeks to deal with the complaint. If they fail to meet that deadline or the customer is not satisfied with the response, they can go to the FOS. Barclays insists it is working hard

to process complaints rapidly. “We have worked hard to improve our complaints handling and are seeing fewer customers feeling the need to go to the FOS,” said Barclays’ Paul Maddox. “Excluding PPI, complaints to the FOS about Barclays are down eight per cent to 4,668, the lowest level for three years.” Lloyds also noted that non-PPI complaints had fallen 14 per cent to 7,513, while HSBC insisted that the “vast majority” of its 15m UK customers are “very happy” with its service. Meanwhile RBS believes it is over half way through dealing with all the expected complaints.

Top 10 for PPI ombudsman complaints Jan-Jun 2012

Jul-Dec 2011

Increase

Barclays Bank

19522

6975

179.9%

Lloyds

9493

4257

123.0%

MBNA

6724

5377

25.1%

Black Horse*

5908

4999

18.2%

Capital One

5594

5057

10.6%

HSBC

5051

2813

79.6%

Bank of Scotland*

4145

1954

112.1%

Nationwide

3892

1778

118.9%

Clydesdale

2487

1336

86.2%

RBS

2091

935

123.6%

85562

49419

Total of all institutions

MPC dove says rates will go up before QE is cut BY BEN SOUTHWOOD THE BANK of England will wind down its “exceptionally expansionary” policy by bringing interest rates back up from their historic lows, before selling its assets purchased through the quantitative easing (QE) programme, policymaker David Miles revealed in a speech yesterday. Rather than selling the government bonds it bought in the now£375bn QE scheme, the Bank will slowly bring interest rates back up in order to tighten policy, said Miles, who sits on the Bank’s rate-setting

Monetary Policy Committee. He justified this method by arguing that it would be less costly to reverse any tightening that came too early. He added that it could promote financial stability by putting less pressure on banks and building societies whose lending is indexed on the bank rate but who borrow in markets affected by QE. “At some point it will seem right to scale back the degree to which monetary policy is exceptionally expansionary,” he said. “No one will be sure when that time has come.” However, he defended the Bank’s current expansionary strategy, adding: “I believe the evidence is that it has had a significant positive effect.”

David Miles said rates would be wound down before QE

73.1%

* Part of Lloyds group

IMF says bank divis to be cut BY TIM WALLACE INCREASED regulation and rules on capital ratios will force banks to raise interest rates and cut pay and dividends, the International Monetary Fund (IMF) warned in a report published yesterday. But overall lending should not be hit, while improved bank safety should counter some of the rise in interest rates, it found. Competitive pressures on banks is forcing them to slash costs.

Ian McCafferty supports more infrastructure spending, but also backs overall austerity

New MPC member McCafferty HMRC squeezes fiercely defends independence more from rich BY MARION DAKERS

BY TIM WALLACE FORMER CBI chief economist Ian McCafferty yesterday denied he is still part of the business lobby, telling members of the Treasury Select Committee that he only holds pro-business views when they match the interests of the economy. The new Monetary Policy Committee member showed a relatively dovish stance on quantitative easing, but withdrew

his earlier support for the Bank of England to purchase corporate debt as well as government bonds. “My views are in the process of change,” he said, when asked if his opinion changed as he left the CBI. “There was a justification at an earlier stage, but now I am of the view that Funding for Lending perhaps addresses the direct problem, which is the availability of credit for SMEs.”

THE EXCHEQUER has bagged an extra £500m in tax from Britain’s wealthiest under a new scheme, it announced yesterday. HM Revenue & Customs said its high net worth unit has exceeded collection targets since being set up three years ago. The office probes the tax affairs of the 5,000 richest people in the UK – and has netted an average of £100,000 per person to date.

cityam.com

WEDNESDAY 12 SEPTEMBER 2012

Burberry drops as slowdown knocks sector

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BLUE chip fashion retailer Burberry issued a profit warning yesterday, as analysts warned the whole luxury sector may be hit by the global economic slowdown. Shares in the FTSE 100 company plunged 20.87 per cent in trading yesterday to close at 1,088p. The group, which has been hit previously by falling sales in China, said like-for-like sales were unchanged year on year, with sales dropping off in recent weeks. Burberry, whose trademark is the distinctive red, camel and black check pattern, added that adjusted pre-tax profit for the 12 months to 31 March next year would be “around the lower end of market expectations”, which is expected to be around £407m. In July, Burberry reported a slowdown in f irst-quarter sales in China,

a market that has been one of the main drivers of a boom in luxury brands, with consumers eager to buy designer labels, including Burberry’s raincoats. Chief executive Angela Ahrendts said yesterday that Burberry would be “tightly managing discretionary costs” and take actions to protect short-term profits. Mike van Dulken, head of research at Accendo Markets, said yesterday: “It stems from an issue within the luxury sector, rather than the company itself,” suggesting that the weak outlook for China was spooking the luxury sector in general. Kate Calvert, analyst at Seymour Pierce, suggested that Burberry was the first in line of the luxury firms to report falling sales, and other players may report similar slowdowns in due course. Analysts at Morgan Stanley called Burberry’s results a “negative read-across for the sector”. LVMH, a French luxury conglomerate, fell by 3.36 per cent yesterday, Swiss luxury group Richemont fell 5.14 per cent and British leather goods firm Mulberry closed 4.22 per cent down. DEBATE: Page 19

Angela Ahrendts stands behind long-term strategy

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Luxury loses some sparkle but the champagne should flow on BOTTOM L LINE UXURY has looked East in its hunger for growth lately, but as the Chinese miracle takes a big fat bite of the reality sandwich, is it time to pack up the Fortnum’s picnic basket and head home? It is certainly true that Burberry was not the only one taking a beating in the market yesterday. While its precipitous fall was the most notable, its troubles were also taken as something of a bellwether for the sector, with falls at LVMH, Tiffany and Richemont among others – although none on the same scale. Whether or not this suggests a

MARC SIDWELL widespread fear that emerging Asia is losing its taste for the finer things in life, or a concern that even the seemingly impervious world of ultra-high-net-worth individuals is starting to feel the pinch is much

harder to untangle. It’s not so much that Chinese demand is going away. Richemont for example reported as follows on 5 September: “Demand in the AsiaPacific region remained solid after two years of exceptionally high growth.” But of course solid is hardly the same thing as exceptional. Perhaps the real problem in China is not so much that the feast is over – compared to Western growth rates, it may still come out ahead – but that after luxury firms tasted the caviar of explosive growth it’s hard to readjust to solid bread and butter.

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NEWS

Boss Julian Dunkerton said the retail division had produced a sound performance

Trend-bucking sales increase at SuperGroup BY CATHY ADAMS RETAILER SuperGroup yesterday posted a 10 per cent rise in sales, bucking the downward trend on the UK high street. Sales across the group, which owns the Superdry fashion brand, were up to £59.7m in the quarter to 29 July, despite an unseasonably wet summer. Total UK sales over the first quarter were £40.2m, a 19.7 per cent increase on last year, in the face of “volatile and unpredictable” trading conditions, it said. The solid growth, though slower than in previous quarters, is a relief for SuperGroup. The firm lost a third of its market value in April after issuing its third profit warning in a year. The 81-strong chain, which opened new stores in Sunderland and Windsor over the period, said like-forlike sales at retail stores open at least a year were up 1.7 per cent. It reported robust sales of outdoor clothing over the period, including gilets, sweatshirts and jackets, which helped to buoy revenues.

Wholesale sales in the quarter were slightly down, dropping 5.6 per cent year on year, largely down to the timing of stock despatches. Chief executive Julian Dunkerton said yesterday that SuperGroup was on track to meet its financial targets by the end of the year. Meanwhile, advisory group PIRC yesterday recommended shareholders vote against the remuneration report for two recently-hired SuperGroup directors, as well as the appointment of PwC as auditors, at its AGM on 20 September. The shares closed up 6.78 per cent.

SuperGroup PLC 580 p

540 520 500 5 Sep 6 Sep 7 Sep 10 Sep 11 Sep

ANALYST VIEWS

WERE SUPERGROUP’S RESULTS AS SUPER AS YOU HOPED?

WAYNE BROWN CANACCORD GENUITY

SuperGroup’s Q1 trading update is very strong with a better performance in the UK and the underlying run-rate in wholesale is already ahead of the whole of the first half last year. Despite the shares being up 21 per cent relative over the last month, we feel strong momentum will continue.

JEAN ROCHE PANMURE GORDON

” ” ”

Today’s solid set of results show that SuperGroup’s product offering was one of the few winners of the UK’s monsoon summer. Some investors may be tempted to get involved now, especially since inclusion back in the FTSE 250, effective on 24 September, looks very likely.

KATE CALVERT SEYMOUR PIERCE

11 Sep

560

Interviews by Cathy Adams

“ “ “

567.00

A solid update from the company with sales up by 10 per cent and retail like-for-like sales of 1.7 per cent. The company is now up against relatively easy comparatives, has a positive order book and has made visible improvements to the assortment over the last year.

cityam.com

WEDNESDAY 12 SEPTEMBER 2012

NEWS

Ashmore and ICAP set to bid farewell to FTSE 100 listings BY MICHAEL BOW THE FTSE 100 quarterly reshuffle of listed companies could demote emerging market fund manager Ashmore down to the FTSE 250 today after investors sent its share price down 2.56 per cent yesterday on the back of a dip in full year results. FTSE reshuffles its listed company indices every three months. The latest rejig will be based on last night’s closing prices on the indices. Interdealer broker ICAP and

Ashmore were eligible for demotion based on yesterday’s close and are set to be replaced by investment company Melrose and oil and gas service Wood Group, FTSE said in a statement last night. Ashmore, which specialises in emerging market funds, yesterday posted a one per cent drop in pretax profits, down from £245.9m to £243.2m. Assets under management also fell $2.1bn, or three per cent, to $63.7bn at 30 June. The results sent Ashmore shares down to 332p. ICAP also saw a 1.51 per cent drop in share price.

BY CATHY ADAMS PROPERTY firm Miller Group returned to profit in the first half of the year, with group revenue up seven per cent. The privately-owned group, with operations in the housing, construction, development and mining sectors, said pre-tax profit increased to £0.4m to 30 June, up from a loss of £52.9m over the same period last year. Housing did particularly well over the period, with revenues up £124.8m from £124.3m and a rise in operating profit to £4.4m from a £35.2m loss last year. Miller is accelerating capital expenditure over the second half of the year, with a further £55m on new land planned in the second half, following a £10m investment

in the first half. The construction division suffered slightly over the period, with revenue falling to £113.1m from £115.6m last year. It reported an operating loss of £0.8m. The group said that increased investment over the second half of the year would ensure it met its full-year targets. Keith Miller, chief executive of the group, said yesterday that he was optimistic about the UK housing market, despite a reasonably quiet summer with events such as the Olympics and the Jubilee distracting customers. He added that it was on track to perform well throughout the year despite the various challenges, helped by its broad-based business operating in a number of sectors including science and technology.

Betfair finance chief resigns as Games hit sales BY JAMES TITCOMB ONLINE bookie Betfair yesterday announced its chief financial officer had quit the company, as it said that interest in the Olympics had led to a slow start to the football season. Stephen Morana, who stepped in as interim chief executive of the firm in January until Breon Corcoran was poached from Paddy Power last month, said he will leave after ten years at the firm to pursue other interests. Corcoran’s appointment was confirmed today, and Morana said the new boss would usher in “a new era”. Betfair said revenues in the three months to August were better than expected, but with sluggish betting during the first weeks of the football season, year-to-date revenues were in line with expectations. Shares dipped on the announcement as analysts warned that Betfair faced several hurdles. James Ainley of Citigroup said that while the bookmaker’s sports performance was “very strong”, Betfair was strug-

gling in its poker and gaming operations, leaving it more reliant on sports than its competitors. Shareholders also staged a revolt at the company’s annual meeting over political donations, with 29.5 per cent of votes opposed to Betfair’s proposals for lobbying of up to £50,000 per donation. The exchange betting system that Betfair operates on has faced regulatory hurdles in the US and in mainland Europe. Betfair’s quarterly sales were up 13 per cent year-on-year to £91.6m

Betfair Group PLC 760 p 750

740.00

IG cuts offset sales decline BY JAMES TITCOMB SPREAD-BETTING firm IG Group yesterday said that revenues had fallen 18 per cent to £81.5m in the three months to August with the market far less volatile than last year. Despite decreased sales, shares in IG rose more than five per cent yesterday as the firm said a round of cost cutting including lower staff bonuses had softened the blow. “The group continues to face tough comparatives at the start of the second quarter, with September 2011 the second highest revenue month in the history of the company,” chief executive Tim Howkins (pictured) said.

New entrants and FTSE small cap companies that could also rise up to the FTSE 250 today include broadcast company Pace, software firm Playtech and fashion retailer SuperGroup. At risk of demotion to the FTSE Small Cap Index are mining firms Aquarius Platinum and Avocet Mining, energy services company Cape, diamond miner Gem Diamonds and investment fund JP Morgan Asian Investment Trust. A FTSE committee scheduled for today will approve the decisions based on last night’s prices.

Miller Group returns to profit as housing revenue edges up

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cityam.com

WEDNESDAY 12 SEPTEMBER 2012

NEWS

We didn’t expect London 2012 to be great... but it was BRAND A INDEX STEPHAN SHAKESPEARE steadily as the Olympics progressed, and then grew again once the Games kicked off (hitting +59 yesterday). To understand just how good these scores are, compare London 2012 to Wimbledon, itself a fantastic success, which peaked at a lower level of +49. With the index score (a composite of six key image

measures), what I find interesting is not the high peak scores of +49 for the Olympics and +37 for the Paralympics. What’s fascinating is the pattern – for the Olympics there were lingering concerns right up to the opening ceremony, followed by a rapid, large and sustained rise as the Games went on. The public weren’t expecting it to be great, but it was. With the Paralympics, the rise comes before the Games start and is then sustained. Buoyed by the success of the Olympics, the public expected more great things from the Paralympics and they delivered. Arguments abounded right up

until the Olympics started about whether it was worth it, and should we be hosting them; those arguments have disappeared now and one thing that our politicians can take away from this is that what the public really care about

Buzz 70 60 50 40 30 20 10 0

2012 Summer Olympic Games

is successful delivery. And taking a step back from the data, the cheering of Seb and Boris these past few weeks has been very telling indeed. Stephan Shakespeare is the chief executive of YouGov

Index 60

2012 Summer Olympic Games

50 40 2012 Summer Paralympic Games Wimbledon Championships 1 Jun 15 Jun 29 Jun 13 Jul 27 Jul 10 Aug 24 Aug 7 Sep

30

2012 Summer Paralympic Games

20 10 0

1 Jun 15 Jun 29 Jun 13 Jul 27 Jul 10 Aug 24 Aug 7 Sep

Locog refuses to pay G4S over Olympics chaos BY JAMES WATERSON SECURITY firm G4S has not received any payment for its involvement in the Olympic Games since mid-July, London 2012 organisers revealed yesterday. Paul Deighton, Locog chief executive, told the Commons home affairs select committee that the firm have received around £90m of the agreed £236m fee to provide security guards for this summer’s Olympic and Paralympic games. Just 16 days before the event began G4S admitted it could not provide all of the required 10,400 guards, forcing the government to call in the armed forces and leaving the FTSE 100 company with a substantial bill and untold reputational damage. Deighton said the company was completely responsible for the fail-

ure to fulfil the contract: “They could and should have been able to deliver it.” Locog is now in discussions with the firm to come to an agreement over the remainder of the contract. Nick Boles, the firm’s chief executive, told MPs that he would push for the maximum payment. “I’m not going to sit here and say we did a great job but we delivered a significant proportion of the contract. I expect them to pay us in line with the terms of the contract,” he said. Buckles also confirmed his company would not be bidding for the security contract for the 2016 Olympics in Rio de Janeiro.

Shares in Nick Boles’ firm have dropped 12 per cent as a result of the debacle

FSA penalty Unions ponder for BlackRock general strikes BY JAMES WATERSON FUND management firm BlackRock was yesterday hit by a £9.5m fine for lapses in its deposit protection procedures. The Financial Services Authority (FSA) said that the firm failed to put trust letters in place for certain money market deposits and did not “take reasonable care” to identify and protect client money lodged with third party banks. UK rules state that firms must have a trust letter from any bank holding its client money to ensure that client money is clearly identifiable and is ring-fenced. Between October 2006 and March 2010, BlackRock Investment Management failed to obtain such letters. The average daily balance affected by this was over £1.36bn.

BY HARRY BANKS THE TRADES Union Congress yesterday voted to consider a general strike in protest at the government’s spending cuts. A big majority at the TUC’s annual conference in Brighton backed the measure, which pledges to look into the “practicalities” of a general strike, as called for by trade unionists including RMT boss Bob Crow. “This is a fantastic result that sends out the clearest message to working people the length and breadth of the land that the union's are putting every single weapon in our armoury of resistance on stand-by,” he said. Retail union Usdaw, however, warned that the vote was an “empty gesture”.

LAURA LEAN/CITY A.M.

sensational summer of sport is drawing to an end and we all know anecdotally how well received it has been, but what does the data say? If we look at YouGov’s SportsIndex and focus in on the Olympics and Paralympics it tells the story very clearly: a nervous spring followed by an actively worried July, suddenly turning to a joyous summer. The buzz chart shows that the Olympics had maintained a respectable level in the mid-20s for net buzz throughout the spring, dropping as low as +1 by 18 July before steadily climbing to highs in the +60s in August. Buzz for the Paralympics grew

WEDNESDAY 12 SEPTEMBER 2012

cityam.com

THECAPITALIST Celebs out in force for BGC charity day BY MICHAEL BOW BROKERS and A-list celebrities joined forces yesterday on the trading floor of BGC Partner’s Canary Wharf office to raise millions of pounds for several charities. The trading spectacular, now in its eighth year, is held every 11 September to commemorate the 658 employees of BGC’s affiliate Cantor Fitzgerald who lost their lives in the 9/11 attacks. Formula One star Lewis Hamilton, Olympic hero Mo Farah and Hollywood icon Joan Collins were some of the famous faces on hand to help traders thrash out deals to raise money for good causes.

Sport hosts Gary Lineker and Gabby Logan join in on the action with Greg Rutherford

“Buy copper, buy diamonds,” Collins said, as she took to the phones to make a trade on the base metals desk. Hamilton, who was helping trade German bunds, said: “It’s incredible what everyone is doing. Let’s raise some more money.” The event was compered on the trading floor by the BGC’s indomitable partner David Buik, as traders, decked out in white Hackett polo shirts embossed with the BGC logo, jockeyed with celebrities to do deals. Lewis Hamilton and Mo Farah proved the most popular draw for the traders, as crowds gathered to watch the “Mobot”.

13

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Joan Collins, Michael Ball and Princess Beatrice do a deal

BGC Partner’s annual charity day is held every September 11. Olympic hero Mo Farah joins forces with BGC’s traders yesterday to do deals – and a rendition of the “Mobot”. Right, Etienne Stott tries his luck.

Boxing legend Joe Calzaghe and actress Rosamund Pike act as brokers to close a deal

Buy, sell: Formula One racer Lewis Hamilton

14

BAA blames Olympics for drop in traffic BY JAMES WATERSON HEATHROW operator BAA yesterday said that airports saw a decline in passenger numbers in August as tourists stayed away during the Olympic Games. Total usage across its five sites was down two per cent on the same month last year, with Heathrow seeing a fall of 1.9 per cent to 6.5m passengers. “The reduction was more pronounced in the first two weeks of August (down 4.6 per cent) than in the rest of the month (up 0.3 per cent),” the firm said in a statement. “This suggests a continuation of the ‘Olympics effect’ reported in July, with UK passengers staying at home as well as non-Olympic visitors from overseas choosing to defer their journeys.”

cityam.com

WEDNESDAY 12 SEPTEMBER 2012

NEWS

BAA registered a five per cent drop in passenger flights at Stansted, its secondary London airport, along with a decline in usage at Southampton. However the firm’s Scottish airports and freight business showed strong growth. In the run up to the Olympics that had been fears that Heathrow would be unable to cope with thousands of athletes arriving and departing in a short space of time. But the fears came to nothing, leading BAA chief executive Colin Matthews to say he was “proud” of the airport’s performance and thank staff for their efforts. “We intend to combine the best of the Games experience with Heathrow’s ongoing investment programme to steadily improve the airport for our passengers and airlines,” he added.

OLYMPICS HIT BAA AIRPORT TRAFFIC FOR AUGUST 2012

Lavazza increases coffee stake

STANSTED AIRPORT Passengers

n Coffee firm Lavazza increased its stake in Green Mountain Coffee Roasters, giving the Italian coffee roaster control of 6.8 per cent of the US company, according to a securities filing. Lavazza now owns about 10.5m shares of Green Mountain, owner of the Keurig single-cup coffee brewing system. Lavazza had owned 7.7m shares, or 4.99 per cent of the firm.

1,879,000 5.2%

Cargo (metric tonnes)

19,083 13.9%

Shell suspends Arctic drilling

HEATHROW AIRPORT Passengers

6,459,000 2%

Cargo (metric tonnes)

Passengers

121,469 0.4%

HEATHROW TRAFFIC

ABERDEEN 301,000 9.2% GLASGOW 703,000 3.1% SOUTHAMPTON 176,000 6.4%

Passengers from

INDIA Passengers from

NORWAY

IN BRIEF

8.7%

4%

Passengers from

BRAZIL Passengers from

N. AMERICA

9.5%

3%

n Royal Dutch Shell has halted its controversial search for oil in the Arctic as a precautionary measure just one day after the drilling campaign began. The firm said it suspended operations after encountering ice near the drill ship, and plans to resume once the ice has passed. Greenpeace is lobbying Shell to permanently stop operations in the Arctic.

US government sells more AIG stock

n The US government will sell an additional $2.7bn in AIG stock as underwriters of the insurer exercised their over-allotment option, bringing the Treasury Department’s total proceeds from the public offering to $20.7bn and taking its remaining holding down to 15.9 per cent. The government says it has made a $15.1bn profit on the stock so far.

Westfield eyes Croydon mall BY MARION DAKERS WESTFIELD has submitted plans for a new shopping centre in Croydon. The Australian mall firm hopes to redevelop the Whitgift Centre in the middle of Croydon into its third London site, and has pledged to deliver 5,000 permanent jobs and new travel links. The firm added yesterday that retailers operating in the existing shopping centre will have the chance to continue trading while the work takes place. Croydon Council is expected to decide on the plans for a 1.5m square foot mall in January. The Whitgift Foundation, which owns the freehold to the site, repeated its backing of Westfield’s scheme yesterday. Rival property firm Hammerson, which is also vying to build at Whitgift, is yet to submit its planning application.

The Whitgift Centre in Croydon would be transformed under Westfield’s plans

French perfume maker Coty buys time on flotation plans BY MICHAEL BOW COTY, the perfume maker behind the Calvin Klein and Marc Jacobs fragrance brands, is understood to have postponed plans to float in New York later this year. The French company, which filed documents with American regulators at the end of June for an initial public offering, is reconsidering the float to give Michele Scannavini, who was appointed to lead the firm at the start of August, more time to establish a track record to be assessed by the market.

The firm is also said to be on the hunt for future acquisitions following its aborted attempt to buy Avon Products for $10.7bn (£6.66bn) in May, with Brazilian beauty firm Jequiti thought to be in its sights. Coty yesterday said it did not comment on market rumours. Legal representatives working on the regulatory filing also declined to comment. Scannavini last month replaced former chief executive Bernd Beetz, its chief executive for 11 years. Analysts speculate that Scannavini will want to build a

track record in charge of the firm before putting a formal prospectus for a float to the market. “When you have a company going public with no track record, it’s harder to sell,” an analyst said. The firm filed a preliminary prospectus with the SEC on 28 June for an IPO, appointing Bank of America Merrill Lynch, JP Morgan, Morgan Stanley, Barclays, Deutsche Bank and Wells Fargo as book runners. The firm, established in 1904, is the brains behind some of the world’s top fragrance brands, including David Beckham, Beyonce Knowles, and Madonna.

cityam.com

WEDNESDAY 12 SEPTEMBER 2012

NEWS

Qatar refuses to rule out new Glencore offer BY CATHY ADAMS QATAR Holding, the second-largest shareholder in Xstrata, said yesterday it was yet to decide on the revised offer put forward by Glencore, suggesting the merger may survive. Commodities giant Glencore laid out its final £36bn offer for miner Xstrata on Monday, after months in a stand-off with Qatar, which demanded an improved merger ratio to 3.25 in June. Until yesterday, the sovereign wealth fund had been silent on the revised offer. Glencore’s final offer is 3.05 new shares for each Xstrata share, up from 2.8 previously agreed. It also wants chief executive Ivan Glasenberg to stay as head of the new company, after six months under Xstrata’s Mick Davis. The revised offer represents a 27 per cent premium to the ratio at which Glencore and Xstrata were trading last week. Qatar said in a statement yesterday: “Qatar wishes to make clear that it has made no decision yet as to

whether or not it would accept the revised proposal.” It added it will give “careful consideration” to the implications of changed management, the share ratio and the views of Xstrata’s board. Through aggressive buying in the market since the proposed takeover was announced in February, Qatar has built up a stake of more than 12 percent in Xstrata – a key position in a deal structure that allows just 16.5 per cent of Xstrata shareholders to block any bid. Xstrata directors have until 24 September to decide whether to put the revised proposal to shareholders.

Xstrata PLC 1,100 p 1,075 1,050 1,025 1,000 975 950 925

1,011.50 11 Sep

5 Sep 6 Sep 7 Sep 10 Sep 11 Sep

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IN BRIEF Vedanta shut operations in Goa n Miner Vedanta has shut its opera-

tions in Goa, it announced in a statement yesterday. Sesa Goa, a subsidiary of the FTSE 100 company and the largest producer and exporter of iron ore in India, has stopped iron ore extraction in the area. The order, with immediate effect, said that the suspension of operations will not affect the transportation of ore that has already been mined and existing in the area. The miner announced last week that its Lanjigarh mine in eastern India would be shut due to a lack of bauxite. Shares in the miner closed 2.44 per cent down yesterday at 978.5p.

The striking Lonmin miners show no sign of returning to work, despite the peace accord

Malema calls for national strike as Lonmin workers stay away BY CATHY ADAMS RENEGADE African National Congress politician Julius Malema yesterday called for a national strike in South Africa's mining sector, stirring fear of a further escalation in the unrest, as just three per cent of all workers at Lonmin’s Marikana mine yesterday turned up for work. It is understood more intimidation and violence has been taking place at the platinum producer’s mine, where 44 people were shot by police last month. Lonmin, militant union AMCU

and other union representatives have been trying to broker a wage deal, and talks are expected to go on throughout the week. Tensions are expected to be running high as the peace accord, signed at the end of last week, deemed that the workers must return to work for wage demands to be discussed. The strife at Lonmin, where the majority of its 28,000 workers have not reported for duty, has spread progressively to other mines in the area. On Monday gold producer Gold Fields said 15,000 workers had downed tools and gone on strike.

Magnolia adds two more wells n Magnolia Petroleum yesterday announced it added two more wells to its portfolio in North Dakota, targeting the Bakken and Three Forks Sanish formations. Both wells are operated by Brigham Oil & Gas, and Magnolia said it expects to add four more wells in Williams County, also operated by the energy firm, in the near future.

Revenue rises at Sefton Resources n US-focused Sefton Resources

announced yesterday oil revenue rose by 13 per cent to $2.28m (£1.42m) in the first half thanks to increased oil production. Oil production jumped nine per cent to 21,755 barrels over the six months to 30 June, up from 19,874 barrels over the same period last year. The junior stock market-listed firm more than doubled its capital expenditure to $2.8m.

16

cityam.com

WEDNESDAY 12 SEPTEMBER 2012

NEWS

Londoners expect further rent hikes over the next 12 months BY BEN SOUTHWOOD THE NEXT year will herald yet further rent hikes for Londoners – or so they believe – according to the Rightmove forecast out today. Sixty-six per cent in the city expect to pay more in 12 months, compared to 59 per cent for the country as a whole. This move would come as another blow to London pay packets already tightly squeezed by rent. Whereas in the country as a whole 26 per cent of tenants paid more than half their income

as rent, the figure for London was 29 per cent. “The view from the majority of tenants across the country is that rents are only likely to go one way, and that’s up,” said Miles Shipside at Rightmove. “London and the surrounding commuter belt of the south east have the greatest proportion of respondents predicting higher rents, suggesting that these markets are most...in need of further investment from landlords,” Shipside added. Despite this hot London market,

New ICAP figures point to an improving joblessness picture BY BEN SOUTHWOOD

the report says that so-called “serial landlords” – who have invested in buy-to-let property more than once – are more prevalent in Wales, Scotland and the north of England. Rightmove suggests this is due to the higher yields achievable in northern regions. London offers an average rental yield of 5.7 per cent, while the north west delivers 6.4 per cent. “For the most attractive and immediate rental returns, the north wins,” Shipside commented in the report.

THE UNEMPLOYMENT picture was improving in August, said brokerage ICAP yesterday, as the number of applicants per vacancy dropped, but the data suggested that the employment situation might nevertheless be worsening. ICAP’s unemployment index, which measures the number of applicants per job, decreased three per cent in August. But this came largely from a large reduction in applicants, rather than an increase in vacancies – which actually declined 2.5 per cent – potentially muddying the message the data is sending.

Kantar reports TESCO healthy growth 30.8% in grocery sales WAITROSE ASDA

MARKET SHARE IN THE 12 WEEKS TO 4 SEPTEMBER 2012

BY BEN SOUTHWOOD

GROCERS have continued to expand through 2012, Kantar Worldpanel revealed yesterday, with growth at the very top and bottom driving pace in the market. Total sales by grocers were £23.5bn in the 12 weeks to 2 September, up from £22.7bn in the same period last year, growth of 3.3 per cent. All of the big four supermarkets grew healthily, commanding between them £17.9bn in sales in the period, up from £17.5bn last year, and thus accounting for most of the overall rise. But the most dramatic growth came away from the solid middle of the market. Aldi’s sales rocketed up 26.6 per cent, while Lidl’s soared 10.9 per cent and Iceland’s boomed 8.5 per cent, while a

symmetrical effect was seen at the pricier end. Waitrose saw sales climb 7.8 per cent, to above £1bn. These four firms still only make up 12.2 per cent of the market together, but this is up a percentage point on last year. “Despite ongoing pressures, things seem to be looking up in the grocery market and shoppers are not having to trade down to the same extent as they have done over the past year,” said Edward Garner at K a n t a r Worldpanel.

Mark Price’s Waitrose has weathered the dip

2.9%

LIDL

16.4%

2.8%

+7.8% +1.1% +2.8% +4.5% +3.8% +26.6% +10.9% change

change

20 0 -20 -40

Jul 2011

Jan 2012

Jul 2012

IN BRIEF

Small firms want regulation cuts

11.7%

change change

40

n The US trade deficit widened marginally in July, as exports and imports both shrank in the gloomy worldwide economic climate, federal government departments revealed yesterday. The deficit inched wider to $42bn (£26bn), up from $41.9bn in June, the US Census Bureau and US Bureau of Economic Analysis said in a joint data release. This net movement was driven by a $1.9bn drop-off in exports, which could not be fully compensated by the $1.8bn slip in imports. The goods deficit narrowed $0.2bn compared to June, but the surplus in services also narrowed, by some $0.3bn.

ALDI

SAINSBURY’S

MORRISONS

Temporary Vacancies - Retail 60 % YoY Change

America’s trade gap widens

17.6%

4.6%

And the employment index – which measures vacancies lagged by two months – declined 8.9 per cent, indicating that employment in August may decline despite apparently improving joblessness.

change

change change

n The government must extend the national insurance holiday for small firms, in order to fight unemployment, the Federation of Small Businesses (FSB) argued yesterday. The lobby group found that some 88 per cent of new private sector jobs taken by the previously unemployed, since the onset of recession, were created in small business. But the FSB warned that this may come to a halt without an extension of the national insurance contributions holiday. “In the current economic climate, with costs increasing and cash flow tight, small firms need all the help they can get,” said FSB boss John Walker.

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cityam.com

WEDNESDAY 12 SEPTEMBER 2012

CITYDASHBOARD CITY MOVES WHO’S SWITCHING JOBS

Arbuthnot Latham The private bank has appointed Liz Bottomley to the role of head of private banking. She most recently worked for Coutts, where she was senior manager and client partner in its international private banking division. Bottomley has over 25 years’ experience in the industry, and takes up her position with immediate effect.

PwC Craig Hughes has been appointed as a partner in PwC’s real estate practice, where he will lead its focus on client work with investors and funds. He joins from Ernst & Young, UK and Ireland, where he was head of real estate. Hughes worked for Ernst & Young for over 19 years.

JP Morgan Asset Management

Old Mutual Asset Managers Tim Barker has been appointed head of credit research within the asset management firm’s fixed income and macro team. He most recently worked for Societe Generale, where he was head of European credit research. Barker has over 20 years’ experience in credit research, and has also held roles

YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND MARKET REPORTS in association with

Edited by Tom Welsh

at Aviva Investors and Lazard Asset Management.

Ed Collinge has been appointed senior client adviser for UK and European strategic insurance sales at the asset management division of JP Morgan. He was previously head of capital management at Legal & General’s annuity business. Collinge also previously served as a director at Lehman Brothers insurance capital markets.

Morningstar Robert Broadwell has been appointed director of business

17

development for Morningstar’s index business in Europe, Middle East and Africa. He was most recently director of business development for the Middle East at iShares, a division of BlackRock. Additionally, Elaine Orr joins the firm as a director of business development. She was previously an exchange-traded fund product researcher and developer at iShares.

Nationwide Building Society Stephen Uden has been appointed head of corporate citizenship at the building society. He joins from Microsoft, where he was also responsible for leading its citizenship agenda.

Gide Loyrette Nouel The law firm has announced the relocation of arbitration partner Rupert Reece to its London office. He has been a partner in its Paris office since 2001, and specialises in international arbitration and dispute resolution proceedings.

+44 (0)20 7092 0053 morganmckinley.com

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

To appear in CITYMOVES please email your career updates and pictures to [email protected]

LONDON REPORT

BESTof the BROKERS

FTSE treads water but miners drop after ominous statistics from China

B

RITAIN’S top share index pared early losses to end flat yesterday, with uncertainty regarding the outcome of a German court ruling on the Eurozone’s bailout fund and the US Federal Reserve’s likely stimulus plans prompting investors to avoid strong bets. However, analysts said sentiment was improving following some positive steps taken by policymakers in Europe and the FTSE 100 could rise between four and five per cent by the end of 2012. Investors awaited today’s German court ruling, which will probably reject the temporary injunction request against the European Stability Mechanism (ESM) and Europe’s budget discipline pact, legal experts predicted in a Reuters poll, but they expected the court to impose tough conditions. “Certainly there is going to be some conditionality attached to the ruling, but the market would be very happy to see it ratified. A positive outcome is partly priced in, but there is scope for the FTSE to gain further,” said Angus Campbell, head of sales at Capital Spreads. “There seems to be a bias towards riskier stocks. If we see more stimulus in the United States than the market is expecting, then we could see a further appetite for risk.” The Fed will hold a two-day policy meeting, starting tomorrow. Economists in a recent Reuters survey predicted a 60 per cent chance of another round of stimulus known as quantitative easing. Miners suffered heavily yesterday on concerns about metals demand in China, the world’s top consumer. The UK mining index fell 0.8 per cent, Anglo American dropped 2.3 per cent and Xstrata fell 1.5 per cent. Vedanta Resources lost 2.4 per cent after Goa, a key iron ore producing state in India, temporarily suspended all mining activities. Shares in Sesa Goa Ltd, an Indian unit of Vedanta that gets most of its iron ore from mines based in Goa, fell more than six per cent. The FTSE 100 index ended 1.01 points,

or 0.02 per cent, lower at 5,792.19 points after falling to a low of 5,764.22 earlier in the session. The index surged 2.1 per cent last Thursday and rose 0.3 per cent on Friday on the back of the European Central Bank’s bond buying plans. It is up four per cent so far this year. “We have got some more upside, but think that investors are cautiously positioned at the moment. The best way to play is to focus on sectors such as banks and utilities,” said Robert Parkes, equity strategist at HSBC Securities. “The global economy is still growing, corporate balance sheets are strong and we don’t see a collapse in earnings from here. That puts the spotlight on valuations, which we feel are too low and pricing in too much negative news.” According to Thomson Reuters Datastream, the FTSE 100 index trades on 10.3 times its 12-month forward earnings, against a 10-year average of 12.8. The US S&P 500 index trades on 12.6 times its one-year forward earnings. Among individual movers, Burberry plunged nearly 21 per cent after the British luxury brand warned that its full-year profit would be at the lower end of market forecasts, noting store sales slowed in recent weeks. Campbell of Capital Spreads and Parkes of HSBC see the FTSE index closing at 6,000 and 6,050 points respectively by the end of 2012, a rise of between four and five per cent from yesterday’s close.

FTSE

5,792.19

5,825 5,800 5,775 5,750 5,725 5,700 5,675 5,650 5 Sep

11 Sep

IG Group Holdings PLC

461.70

11 Sep

p

470 460 450 440 430

5 Sep

6 Sep

7 Sep

James Hamilton at Numis has changed his IG Group recommendation from “Add” to “Buy” after the firm reported better-than-expected revenues. The betting group benefits from volatile trading conditions and Hamilton says the market struggles to “appreciate that low volatility for IG is like a negative market movement for an asset manager”. Predicting volatility will increase, he ups IG’s target price to 542p.

Moneysupermarket Com Group PLC p

147.50 145.00 142.50 140.00 137.50 135.00

5 Sep

10 Sep

11 Sep

133.00 11 Sep

6 Sep

7 Sep

10 Sep

11 Sep

MONEYSUPERMARKET.COM

Numis’ David McCann has reiterated his “Sell” rating on price comparison website moneysupermarket.com after internet giant Google launched a competing service. McCann says the company “unjustifiably trades on a premium rating given the threat to earnings from Google taking some of its share of the value chain”. The target price is 109p, 22p below yesterday’s closing price.

Hilton Food Group PLC p

281.25 10 Sep

300 295 290 285 6 Sep

7 Sep

HILTON FOOD GROUP

7 Sep

11 Sep

IG GROUP

5 Sep

6 Sep

10 Sep

10 Sep

11 Sep

Shore Capital’s Darren Shirley has downgraded meat packing firm Hilton Food Group from “Hold” to “Sell” after the company announced results below expectations. Shirley says that in established markets Hilton is “under pressure from the tough economic conditions, the relatively high price of red meat (most notably beef) and trading down by underpressure consumers”. As a result he has cut the target price to 285p.

NEW YORK REPORT

Dow Jones hits five-year high in light trading

T

HE DOW Jones Industrial Average closed at the highest level in nearly five years yesterday in a lightly traded session before key decisions in Germany and the United States that could give markets a further boost. Energy, industrial and financial firms led the advance. Contributing to gains by the Dow, shares of IBM rose 1.15 per cent. Heavy equipment manufacturer Caterpillar added 1.72 per cent to $88.60. Equities have rallied in recent weeks on hopes for monetary stimulus by central banks. The Federal Reserve could announce tomorrow additional steps to support low interest rates. Today, Germany’s highest court will decide on the legality of the Eurozone’s new bailout fund. The Nasdaq erased most of its gains in the afternoon as shares of Apple dropped in heavy volume. The stock slipped 0.32 per cent to $660.59 ahead of a new product launch this evening. Economists forecast a 60 per cent chance the US central bank will announce another round of quantitative easing at the end of its two-day meeting. Disappointing US August jobs data released last Friday bolstered that view. “I do expect the Fed to [announce] an additional quantitative easing programme. I don't think it's a good idea. I don't think it’s warranted,” said Jamie Cox, managing partner of Harris Financial Group. Some investors have concerns that a lot of the good news has already been priced in, exposing markets to a decline should the Fed disappoint. They also argue that the Fed’s actions have already distorted market prices. “We’re in a technically overbought situation, so those traders are going to take their profits going into the Fed meeting,” Cox said. The Dow ended up 69.07 points, or 0.52 per cent, to 13,323.36. The Standard & Poor’s 500 Index closed up 4.48 points, or 0.31 per cent, to 1,433.56. The Nasdaq Composite Index gained 0.50 point, or 0.02 per cent, to 3,104.53. Investors are keeping an eye on big-cap bellwether technology names because of their role in global business spending. Techs fell on Monday following Intel’s warning last week that reduced demand will hurt its third-quarter results. Shares were up 0.34 per cent yesterday. Shares of Bank of America rallied 5.24 per cent to $9.03, leading bank stocks higher. Knight Capital said it has hired IBM to look into the 1 August trading glitch that cost the trading firm $440m. The stock rose 1.12 per cent.

WEDNESDAY 12 SEPTEMBER 2012

18

THEFORUM

In association with

cityam.com/forum

Cable is wrong on state aid rules and his plan for a business bank O

NE of the best aspects of the EU is that under the so-called “state aid rules” member states are forbidden from subsidising businesses through grants, tax breaks and soft loans. State aid invariably distorts competition and trade: protecting businesses from foreign competition, or propping up failing businesses, whose failure would create space for value-generating alternatives. EU state aid rules have been enormously valuable in liberalising industries across the EU. Many EU member states had had long traditions of picking winners, having national champions and favouring politically connected vested producer interests. Without the pressure of EU rules enabling their governments to precommit to the principle of no state aid, short-term political pressures inexorably drag governments into more and more subsidies. A similar principle applies to other EU rules, such as procurement rules preventing governments from only buying domestic products. Such liberalisation has been

Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate.

ANDREW LILICO to the benefit of British exporters, by giving them access to markets that would otherwise be closed to them. Sometimes such pre-commitment to EU rules is presented as if it were an outrage against democracy. “Who is the EU to tell us we can’t subsidise the industries we want?” But pre-commitment is not really so odd in a democracy. When the government sets an inflation target, it pre-commits to interest rates being at the level required to meet that target. Or when the government makes a deficit reduction, or greenhouse gas emissions cut, or child poverty reduction target, it pre-commits to the principle of doing what is necessary to meet that target. In the same way, EU state aid rules involve the government pre-commit-

Twitter: @cityamforum

ting to a principle of avoiding subsidising businesses. Yesterday, Vince Cable proposed that the government should stop being “defensive” about EU state aid and procurement rules, and be willing to focus support on key economic sectors – thinking more “strategically” about buying British goods. In particular, he has in mind that the government should provide soft loans to large, complex long-term projects. This is a terrible idea. Governments are appallingly badly placed to assess the long-term risks of major projects, and government involvement in projects is notorious for meaning they go over-budget or turn into white elephants. Are we really to believe the solution to the country’s economic difficulties is a fourth nationalised bank – as if the three we already have (Northern Rock, Lloyds and RBS) aren’t quite enough? Does anyone think it plausible that there is currently insufficient government financial commitment to the UK banking sector? In fact, Cable’s proposed “British Business Bank” is not a bank at all, but

on the web: cityam.com/forum

W

HUGH YOUNG shareholder. In the case of electric utilities, the respective government can often exercise considerable control over tariffs. Electricity prices are a socially-sensitive issue which politicians may sometimes pander to at the expense of minority shareholders. But it is also true, more often than not, that the controlling

Government-backed ‘investment banks are more disastrous than nationalised retail banks

banks are, if anything, even more disastrous than nationalised retail banks. Is the lesson of the past few years really that having a UK Fannie Mae and Freddie Mac is the way forward? Japan had three specialist long-term lenders: Long Term Credit Bank (LTCB), Nippon Credit Bank (NCB), and Industrial Bank of Japan (IBJ). In the late 1990s LTCB

and NCB were taken over by the government, ruined by bad debts; while IBJ had a private sector takeover. These are not examples to follow. If the British government says it no longer cares about state aid rules, who in Europe will? Will Cable be pleased when the Bulgarians subsidise their coal, the French their cars and the Italians their fashion? Will other British businesses thank him for recommending we be more relaxed and less “defensive” about strict adherence to EU competition and trade principles? Government soft loans and subsidies have a long and ineffectual history as a means of assisting depressed regions or promoting new innovations. The notion that they are a tool of economic development had, we thought, gone out with the proverbial 1970s Ark. The government would like us to believe it has a “modernising” philosophy. But state aid from nationalised banks, directed at favoured industries, is as retro as it gets. Andrew Lilico is chairman of Europe Economics.

or by email: [email protected] Top responses will be reprinted in The Forum.

TEN GOLDEN RULES OF INVESTING Rule No. 1 Check the treatment of minority investors HEN considering a company, the first question you need answered is “who controls it?” The second is “do you trust them?” Minority shareholders are just one of many company stakeholder groups (others include employees, the government, suppliers, bankers and major shareholders such as a founding family). While you should not, as a minority shareholder, expect priority over the other stakeholders, you should expect to be treated fairly. And this depends on whether you can trust whoever controls the company to act in a fair manner. The controlling party need not be a

a portal to access schemes such as the inefficient and ineffective Regional Growth Fund. Be thankful for small mercies. Nationalised lenders have a disastrous record. Spain and Italy’s woeful economic performances in the 1960s and 1970s was not unrelated to their large nationalised banks. Government backed investment

party is a shareholder, usually the founding family or a conglomerate. It requires a certain amount of faith, but the best way to judge whether the controlling party will act fairly in the future is to see whether it has acted fairly in the past. Those that have a good track record of equitable treatment of minorities should be held in high regard. Until they slip up that is, though in my experience past behaviour is a pretty accurate predictor of future behaviour. Hugh Young is managing director at Aberdeen Asset Management Asia.

TOMORROW: Rule No. 2 — Remember that companies are about people not assets

WEDNESDAY 12 SEPTEMBER 2012

19

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

Aim shares in Isas A Swedish model [Re: Isa cash for SMEs, Monday] David O’Hara has launched an e-petition to allow Aim shares to be included in Isas. We strongly support it. Inclusion would provide valuable fuel for the UK economy’s engines of growth – small and mid-sized companies. The government has cited various excuses for this exclusion, including the fact that firms can come to the Aim market without a trading record. But, those listed on the main market can do so as well, if they are biotech or mining firms. This doesn’t prevent them from being included in an Isa. We must improve liquidity in the small and mid-size quoted company sector. Including Aim shares in Isas is an effective way to do this. Tim Ward, chief executive of The Quoted Companies Alliance.

[Re: The success of Scandinavia owes nothing to high taxes or welfare, yesterday] I hope British social democrats have read this important piece. They forever hold up Sweden as the sort of society we should mimic. And, from this article, I take this to mean that we should rapidly adjust away from policy decisions that have clearly failed. Sweden may have once been a socialist heaven. But it learned its lesson and now it’s thriving. Lewis Nash

The authors should add that the Swedish are brutally efficient in their public sector provision. It’s the precise opposite to the UK, where years of dithering has created pools of public sector waste and inefficiency. Frank Salmon

TOP TWEETS

How politicians think: Vince Cable never had a profit and loss responsibility in his life. Now he wants to control the economy. @DraytonBird

Vince Cable’s business bank is a bad idea. Government doesn’t have a good history of backing winners. Remember British Leyland. @benstoneham

The public accounts committee has found that the government’s flagship industrial policy has created just 2,400 jobs to date. @ChukaUmunna

G4S didn’t deliver. It should be paid only for the staff it provided minus the expenses incurred by its incompetence. @spuddysurti

Should investors be adding Burberry shares to their portfolio after its latest profit warning?

YES

NO

Kate Calvert

James McGregor

Burberry spooked the market by announcing a downturn in second quarter retail sales. However, yesterday’s fall in the value of its shares seems disproportionate to the downgrade. This is especially true given the recent de-rating of the overall luxury sector. Lack of visible demand and the question of whether this is a blip has impacted short-term sentiment, leading us to downgrade our recommendation from buy to hold (not sell). It had been a buy since last December. But it is encouraging that Burberry’s management has taken action to limit the profit impact, demonstrating the increased flexibility of its business model. A clearer outlook would make us more positive again, as we still consider Burberry to be a great long-term growth story with significant growth opportunities both geographically and within its product mix. Kate Calvert is a retail analyst at Seymour Pierce.

Burberry’s pessimistic announcement comes as little surprise. The company has seen exceptional growth both in sales and share value over recent years. Despite the brand’s heritage and core values, growth at these levels, within such a depressed market, is rarely sustainable. The brand’s current sales growth is being generated through new space; only when you look at the flat like-for-like-sales do you begin to get a true feel for consumer appetite towards the brand. Burberry has got to satisfy its current customers at the same time as trying to gain new ones. The long-term view is still optimistic, but the growth that it has experienced in recent years will not continue in the medium term. Businesses and investors alike should view Burberry’s situation with great caution. This is not a red emergency sign just yet. But it is an amber warning. James McGregor is a partner at Retail-Remedy.

An optimistic tale of the world’s two last financial crises

T

HE impact of the 2007-2009 financial crash is far from over. But, despite the doom and gloom, history may give us something to feel cheerful about. Even in living memory there have been plenty of recessions, when GDP growth was negative and employment fell. The UK has experienced them in the mid-1970s, the early 1980s and the early 1990s. These had a variety of causes, but these were not primarily financial in origin. The world has also seen a fair number of localised financial crises. The previous 20 years are littered with examples. Sweden and Finland had serious financial problems in the early 1990s, while the late 1990s saw the East Asian crash, the neardemise of Long Term Capital Management and debt defaults in Russia. But none of these spread on a global scale. The world’s economic system was sufficiently robust to confine them. There have only been two global financial crises in the past century: that of the early 1930s and the most recent one. Very few economies escaped the bad times. So how were the early 1930s and late 2000s different? And what happened to GDP as a result? The contrast between the experience of America and Germany in these two periods is dramatic. There is only annual data available for the 1930s, but output fell in the US in 1930, and continued to fall in 1931, 1932 and 1933. Positive growth was registered for the first time in 1934. Germany fared a bit better, but output dropped for three successive years from 1930. This time round, the period of falling GDP was much shorter. In Germany, the recession lasted just a

AGAINST THE GRAIN PAUL ORMEROD single year. The first drop in output happened in the second quarter of 2008 and was very modest. But, nonetheless, positive GDP growth was seen in the second quarter of 2009. In America, the recession period was longer. But even here it was just 18 months, between early 2008 and the autumn of 2009. But it is the size of the GDP fall which shows the most dramatic contrast. From 1930 to 1932 in Germany, output fell 23 per cent. In the US, GDP collapsed by 27 per cent between 1930 and 1933. This time round, the fall was only 4 per cent in America and 6 per cent in Germany. In both economies, GDP is above its previous peak level already. In contrast, it took until 1939 for the US to get back to 1929 output levels. The current picture for the UK is a bit more downbeat. We actually weathered the 1930s rather well, with a two year recession in which GDP fell 6 per cent. This time, the initial recession was shorter, and the drop in output just 5 per cent. However, we remain 4 per cent below our previous highest level. But the broad message from history is optimistic. Global crises are rare, and the two most important developed economies have coped with them enormously better this time round than they did in the 1930s. Paul Ormerod is an economist and partner at Volterra Partners, and author of Positive Linking: How Networks Can Revolutionise the World.

4th Floor, 33 Queen Street, Distribution helpline Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell London, EC4R 1BR News Editor Elizabeth Fournier | Business Features Editor Philip Salter | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres If you have any comments about the Tel: 020 3201 8900 distribution of City A.M. Art Director Gavin Billenness Fax: 020 7248 2711 please ring 0203 201 8955, or email Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen [email protected] Email: [email protected]

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cityam.com

WEDNESDAY 12 SEPTEMBER 2012

MARKETS

20

FTSE 100

FTSE 250

FTSE ALL SHARE

DOW

NASDAQ

S&P 500

/€ 1.2498

0.0033

€/$ 1.2859

0.0102

5792.19 1.01

11780.42 61.08

3021.72 2.76

13323.36 69.07

3104.53 0.50

1433.56 4.48

/$ 1.6070

0.0085

€/£ 0.8001

0.0020

/¥ 124.99

0.1522

€/¥ 99.975

0.1101

 
   

GILTS

 
   

CONSTRUCTION & MATERIALS

Tsy 4.500 13 . . . . . . .102.07 Tsy 2.500 13 . . . . . . .281.45 Tsy 8.000 13 . . . . . .108.08 Tsy 5.000 14 . . . . . .109.57 Tsy 4.750 15 . . . . . . .113.49 Tsy 8.000 15 . . . . . .125.08 Tsy 4.000 16 . . . . . . .114.16 Tsy 2.500 16 . . . . . .345.30 Tsy 8.750 17 . . . . . . .139.45 Tsy 12.000 17 . . . . . .114.59 Tsy 1.250 17 . . . . . . . .115.68 Tsy 5.000 18 . . . . . . .122.76 Tsy 4.500 19 . . . . . .122.44 Tsy 3.750 19 . . . . . . . .118.11 Tsy 2.500 20 . . . . . .370.63 Tsy 4.750 20 . . . . . .125.65 Tsy 8.000 21 . . . . . .154.49 Tsy 4.000 22 . . . . . . .121.39 Tsy 1.875 22 . . . . . . .127.79 Tsy 2.500 24 . . . . . .333.96 Tsy 5.000 25 . . . . . .133.82 Tsy 4.250 27 . . . . . .125.46 Tsy 1.250 27 . . . . . . .122.13 Tsy 6.000 28 . . . . . . .150.13 Tsy 4.750 30 . . . . . . .132.43 Tsy 4.125 30 . . . . . . . .311.71 Tsy 4.250 32 . . . . . .124.46 Tsy 4.250 36 . . . . . . .123.11 Tsy 4.750 38 . . . . . .132.40 Tsy 4.500 42 . . . . . .127.36

-0.02 -0.03 -0.04 -0.05 -0.07 -0.08 -0.09 -0.05 -0.21 0.00 -0.10 -0.12 -0.04 -0.05 -0.03 -0.02 -0.02 -0.01 -0.11 -0.26 -0.07 -0.15 -0.38 -0.19 -0.29 -0.32 -0.26 -0.26 -0.26 -0.32

105.8 285.0 115.0 112.6 115.4 129.0 115.0 348.1 142.0 125.2 117.1 124.1 123.7 119.2 373.5 126.9 156.6 122.8 130.3 339.4 135.9 128.0 127.0 153.7 135.8 322.8 127.8 127.2 137.2 133.6

101.9 280.1 108.0 109.5 113.4 125.1 111.9 337.1 138.7 112.5 113.6 118.7 115.9 110.4 349.0 117.7 145.9 111.9 120.5 307.5 122.9 113.3 113.6 137.3 119.5 289.4 111.9 110.6 119.3 114.8

AEROSPACE & DEFENCE BAE Systems . . . . . . . . .328.7 Chemring Group . . . . . .321.5 Cobham . . . . . . . . . . . . .219.5 Meggitt . . . . . . . . . . . . .406.5 QinetiQ Group . . . . . . . .172.6 Rolls-Royce Holdi . . . . .831.0 Senior . . . . . . . . . . . . . .210.7 Ultra Electronics . . . . . .1579.0

1.0 -9.1 -0.3 -3.0 -0.2 3.0 -0.6 34.0

333.0 552.5 239.5 413.5 174.5 890.0 213.0 1780.0

251.4 267.3 165.9 304.9 113.3 571.0 135.6 1398.0

AUTOMOBILES & PARTS GKN . . . . . . . . . . . . . . . .223.3 -0.7 235.5 157.0

BANKS Bank of Georgia H . . . .1310.0 Barclays . . . . . . . . . . . . .213.5 HSBC Holdings . . . . . . .564.6 Lloyds Banking Gr . . . . . .37.1 Royal Bank of Sco . . . . .264.7 Standard Chartere . . .1428.0

-10.0 5.8 0.9 0.1 11.7 3.0

1350.0 256.8 581.7 37.5 291.7 1662.5

929.8 138.9 463.5 21.8 173.4 1169.5

-6.9 -1.2 3.5 20.0

481.6 348.0 398.0 260.1 1764.5 1191.0 2868.5 2005.0

BEVERAGES Barr (A.G.) . . . . . . . . . . .451.5 Britvic . . . . . . . . . . . . . .358.6 Diageo . . . . . . . . . . . . .1699.0 SABMiller . . . . . . . . . . .2720.0

CHEMICALS AZ Electronic Mat . . . . . .323.1 0.1 Croda Internation . . . .2416.0 -13.0 Elementis . . . . . . . . . . .230.0 -0.2 Johnson Matthey . . . .2441.0 9.0 Victrex . . . . . . . . . . . . .1367.0 -20.0 Yule Catto & Co . . . . . . . .172.1 5.7

329.0 2466.0 238.4 2448.3 1516.0 251.0

206.1 1597.0 107.5 1522.5 1025.0 127.4

Balfour Beatty . . . . . . . .298.1 CRH . . . . . . . . . . . . . . . .1210.0 Galliford Try . . . . . . . . .668.0 Kier Group . . . . . . . . . .1339.0

-0.5 311.0 214.6 4.0 1420.0 1052.0 -2.0 673.0 405.0 5.0 1489.0 1095.0

ELECTRICITY Drax Group . . . . . . . . . . .497.1 -0.6 581.5 442.0 SSE . . . . . . . . . . . . . . . .1358.0 -5.0 1445.0 1209.0

ELECTRONIC & ELECTRICAL EQ. Dialight . . . . . . . . . . . . .1195.0 7.0 Domino Printing S . . . .569.5 4.5 Halma . . . . . . . . . . . . . .425.1 0.0 Laird . . . . . . . . . . . . . . . .231.2 0.7 Morgan Crucible C . . . .279.0 -4.0 Oxford Instrument . . .1305.0 -60.0 Renishaw . . . . . . . . . . .1583.0 -39.0 Spectris . . . . . . . . . . . .1793.0 -7.0

1203.6 670.0 431.9 240.6 360.0 1387.0 1624.0 1902.0

685.0 434.3 306.3 128.5 224.0 714.0 800.0 1039.0

EQUITY INVESTMENT INSTRUM. Aberforth Smaller . . . .644.5 Alliance Trust . . . . . . . . .367.0 Bankers Inv Trust . . . . . .415.7 BH Global Ltd. GB . . . . .1155.0 BH Global Ltd. US . . . . . . .11.5 BH Macro Ltd. EUR . . . . . .19.0 BH Macro Ltd. GBP . . . .1955.0 BH Macro Ltd. USD . . . . . .18.8 BlackRock World M . . . .561.0 BlueCrest AllBlue . . . . .166.0 British Assets Tr . . . . . . .120.7 British Empire Se . . . . .430.4 Caledonia Investm . . .1419.0 City of London In . . . . . .311.9 Dexion Absolute L . . . . .136.0 Edinburgh Dragon . . . .239.7 Edinburgh Inv Tru . . . . .514.0 Electra Private E . . . . .1668.0 Fidelity China Sp . . . . . . .72.2 Fidelity European . . . .1166.0 Foreign and Colon . . . . .312.4 Herald Inv Trust . . . . . .505.0 HICL Infrastructu . . . . . .123.0 John Laing Infras . . . . . .107.3 JPMorgan American . . .939.0 JPMorgan Asian In . . . . .177.4 JPMorgan Emerging . . .537.5 JPMorgan Indian I . . . .334.0 Law Debenture Cor . . .406.0 Mercantile Invest . . . .1036.0 Merchants Trust . . . . . . .373.5 Monks Inv Trust . . . . . . .313.5 Murray Income Tru . . . .677.0 Murray Internatio . . . .1002.0 NB Global Floatin . . . . . .99.6 Perpetual Income . . . .275.2 Personal Assets T . . . .35160.0 Polar Capital Tec . . . . . .395.4 RIT Capital Partn . . . . .1182.0 Scottish Inv Trus . . . . . .477.0 Scottish Mortgage . . . .702.5 SVG Capital . . . . . . . . . .282.6 Temple Bar Inv Tr . . . . .961.0 Templeton Emergin . . .550.0 TR Property Inv T . . . . . .159.5 TR Property Inv T . . . . . .70.9 Utilico Emerging . . . . .164.5 Witan Inv Trust . . . . . . .481.5 Worldwide Healthc . . . .837.0

5.0 -0.1 -1.3 1.0 -0.0 0.2 10.0 0.1 -5.0 0.0 -0.5 -2.7 6.0 1.3 0.0 -0.8 0.5 -3.0 -0.7 -5.0 -0.9 0.0 -0.4 -0.2 -1.0 -1.1 -4.5 4.0 1.0 0.0 -1.9 -0.5 -0.5 -6.0 0.3 -1.3

665.0 378.2 433.8 1212.0 12.2 20.2 2078.0 20.2 747.0 171.5 130.0 476.2 1599.0 314.1 142.0 253.1 529.5 1750.0 88.9 1179.0 317.4 525.5 123.9 111.3 965.5 205.0 583.0 400.4 406.0 1072.0 392.7 343.6 685.0 1022.0 100.8 283.0

494.0 310.2 346.5 1135.0 11.1 18.3 1892.0 18.2 525.0 160.5 109.0 386.6 1237.0 258.0 130.0 201.4 432.0 1287.0 70.0 912.0 261.5 419.0 114.5 103.8 757.5 170.0 480.1 303.4 323.0 823.0 341.5 298.1 568.0 818.5 92.5 236.5

-30.0 36000.0 32340.0

-2.5 -3.0 -1.0 2.5 -0.9 -4.0 2.5 0.3 -1.2 -0.5 -1.4 -1.0

404.0 307.0 1360.0 1096.0 495.5 417.0 719.0 565.0 295.5 165.1 970.0 794.0 633.5 497.0 173.9 136.2 76.3 59.8 169.5 133.8 505.5 401.5 839.5 671.5

FINANCIAL SERVICES 3i Group . . . . . . . . . . . .220.3 -2.4 224.0 166.9 3i Infrastructure . . . . . . .124.7 -0.4 128.0 117.0 Aberdeen Asset Ma . . .288.0 -0.4 289.1 167.8

 
    Ashmore Group . . . . . . .331.0 -8.7 410.0 306.4 Brewin Dolphin Ho . . . .153.2 -3.2 177.0 113.7 Camellia . . . . . . . . . . .9802.0-146.0 10250.0 8800.0 Charles Taylor . . . . . . . .175.0 -5.0 187.0 115.6 City of London Gr . . . . . .76.5 0.0 81.0 61.3 City of London In . . . . .339.5 3.3 390.0 304.3 Close Brothers Gr . . . . .830.0 9.5 830.1 590.0 F&C Asset Managem . . . .91.6 -0.2 93.0 56.1 Hargreaves Lansdo . . .654.0 0.5 663.5 412.2 Helphire Group . . . . . . . . .0.8 0.0 3.2 0.7 Henderson Group . . . . . .111.1 -1.6 128.3 90.6 Highway Capital . . . . . . .17.0 0.0 17.0 12.0 ICAP . . . . . . . . . . . . . . . .338.2 -5.2 475.3 301.1 IG Group Holdings . . . . .461.7 28.3 502.5 409.4 Intermediate Capi . . . .299.6 -2.7 303.9 197.9 International Per . . . . . .317.9 -6.4 324.3 148.5 International Pub . . . . .123.2 -0.5 124.9 112.9 Investec . . . . . . . . . . . .390.0 -2.9 414.9 310.4 IP Group . . . . . . . . . . . . .128.5 -2.0 155.0 43.5 Jupiter Fund Mana . . . .246.6 -0.2 256.7 188.5 Liontrust Asset M . . . . . .98.5 1.0 125.0 57.9 LMS Capital . . . . . . . . . . .63.5 0.5 68.8 54.0 London Finance & . . . . .19.5 0.0 23.5 18.0 London Stock Exch . . .1030.0 14.0 1093.0 756.5 Lonrho . . . . . . . . . . . . . . .9.0 0.6 15.5 6.7 Man Group . . . . . . . . . . .82.6 -1.4 240.1 63.3 Paragon Group Of . . . .200.7 1.5 204.6 142.0 Provident Financi . . . .1365.0 -4.0 1371.0 915.0 Rathbone Brothers . . .1350.0 -3.0 1373.0 989.0 Real Estate Credi . . . . . .89.0 0.1 109.0 79.5 Record . . . . . . . . . . . . . . .15.9 -0.3 29.6 9.8 S & U . . . . . . . . . . . . . . . .817.0 -38.0 870.0 597.5 Schroders . . . . . . . . . .1482.0 -31.0 1650.0 1166.0 Tullett Prebon . . . . . . . .308.5 -2.6 386.4 260.0 Walker Crips Grou . . . . . .36.5 0.0 49.0 33.5

FIXED LINE TELECOMS BT Group . . . . . . . . . . . .226.5 Cable & Wireless . . . . . .34.2 COLT Group SA . . . . . . . .120.6 KCOM Group . . . . . . . . . . .81.5 TalkTalk Telecom . . . . . .187.4 Telecom Plus . . . . . . . .844.0

-2.3 -0.1 -1.8 -0.5 -4.3 5.0

232.1 45.2 127.4 82.0 196.6 890.0

163.8 27.3 84.1 65.6 118.9 612.0

-0.6 3.9 -1.2 0.5 -0.5 -1.9

95.9 558.0 328.0 133.7 332.5 411.3

68.6 457.0 263.0 52.9 263.5 297.1

FOOD & DRUG RETAILERS Booker Group . . . . . . . . .92.7 Greggs . . . . . . . . . . . . .490.6 Morrison (Wm) Sup . . .289.9 Ocado Group . . . . . . . . . .70.4 Sainsbury (J) . . . . . . . . .330.1 Tesco . . . . . . . . . . . . . . .341.7

FOOD PRODUCERS Associated Britis . . . . .1279.0 Cranswick . . . . . . . . . . .802.0 Dairy Crest Group . . . . .346.0 Devro . . . . . . . . . . . . . . .316.9 Tate & Lyle . . . . . . . . . .643.0 Unilever . . . . . . . . . . .2254.0

-1.0 -11.5 2.0 2.1 4.0 9.0

1336.0 858.0 357.2 332.2 720.5 2334.0

1059.0 588.5 290.4 232.0 590.0 1922.0

FORESTRY & PAPER Mondi . . . . . . . . . . . . . .589.5 -1.5 617.5 413.5

GAS, WATER & MULTIUTILITIES Centrica . . . . . . . . . . . . . .331.1 National Grid . . . . . . . .678.0 Pennon Group . . . . . . . .727.5 Severn Trent . . . . . . . .1685.0 United Utilities . . . . . . .683.0

-1.4 -3.0 -7.5 -5.0 -4.0

335.3 703.5 796.0 1796.0 728.0

278.8 597.5 659.5 1432.0 582.0

-7.0 2.1 0.1 -1.5 -11.0

747.5 444.6 439.0 183.7 1113.0

395.8 299.8 307.5 113.3 869.5

GENERAL INDUSTRIALS Cookson Group . . . . . . .605.0 Rexam . . . . . . . . . . . . . .425.4 RPC Group . . . . . . . . . . .436.1 Smith (DS) . . . . . . . . . . .178.5 Smiths Group . . . . . . . .1037.0

 
   

GENERAL RETAILERS Brown (N.) Group . . . . .275.9 -6.8 Carpetright . . . . . . . . . .660.5 -9.5 Debenhams . . . . . . . . . .99.6 -0.5 Dignity . . . . . . . . . . . . .926.5 -3.5 Dixons Retail . . . . . . . . .20.0 -0.3 Dunelm Group . . . . . . .610.0 10.5 Halfords Group . . . . . . .250.8 -3.6 Home Retail Group . . . . .97.4 -2.3 Inchcape . . . . . . . . . . . .385.3 -3.1 JD Sports Fashion . . . . .699.5 -24.0 Kingfisher . . . . . . . . . . .272.3 -9.4 Marks & Spencer G . . . .372.5 1.4 Next . . . . . . . . . . . . . .3560.0 -3.0 Sports Direct Int . . . . . .332.0 -0.3 Ted Baker . . . . . . . . . . .959.0 -11.0 WH Smith . . . . . . . . . . .613.0 3.0

291.0 728.5 100.4 935.0 20.3 614.0 342.3 131.6 418.2 865.0 313.8 389.5 3644.0 333.7 1017.0 615.5

222.4 375.0 52.2 755.5 9.4 421.1 189.0 69.2 268.1 570.0 232.8 302.7 2310.0 190.0 633.0 471.7

HEALTH CARE EQUIPMETN & S. NMC Health . . . . . . . . . .190.5 0.5 230.0 186.0 Smith & Nephew . . . . .681.0 2.5 682.5 540.5 Synergy Health . . . . . . .907.5 -5.5 951.0 762.5

HHOLD GDS & HOME CONSTR. Barratt Developme . . . .169.7 Bellway . . . . . . . . . . . . .933.5 Berkeley Group Ho . . .1494.0 Bovis Homes Group . . .499.5

-3.6 -16.5 -6.0 -5.0

173.3 955.5 1503.0 518.5

72.9 559.0 1145.0 388.2

 
    Jardine Lloyd Tho . . . . .735.5 -10.0 790.0 619.0 Lancashire Holdin . . . . .808.5 -5.0 825.0 636.0 RSA Insurance Gro . . . . .116.8 1.1 117.1 97.7

LIFE INSURANCE Aviva . . . . . . . . . . . . . . .352.4 Legal & General G . . . . .133.7 Old Mutual . . . . . . . . . . .173.7 Phoenix Group Hol . . . .508.0 Prudential . . . . . . . . . . .816.0 Resolution Ltd. . . . . . . . .213.1 St James's Place . . . . . .357.7 Standard Life . . . . . . . . .274.8

0.7 -0.8 1.1 7.0 2.5 -1.2 -7.3 -0.7

382.6 135.0 188.1 590.0 824.0 287.2 375.0 277.4

255.3 89.8 112.1 405.3 509.0 190.3 294.0 185.1

-2.0 0.0 1.5 -14.0 0.3 3.0 -3.0 7.5 0.0 0.0 -0.0 -0.3 -3.2 0.3

346.5 238.0 146.5 773.0 45.1 255.0 93.3 828.0 13.4 235.0 6.3 68.5 451.0 240.6

200.0 115.7 91.3 635.5 28.5 143.0 47.0 529.0 8.3 165.0 0.4 32.3 313.9 157.7

MEDIA 4Imprint Group . . . . . .340.0 Aegis Group . . . . . . . . . .237.5 Bloomsbury Publis . . . .134.5 British Sky Broad . . . . .758.0 Centaur Media . . . . . . . . .37.0 Chime Communicati . . .211.5 Creston . . . . . . . . . . . . . .89.5 Euromoney Institu . . . .777.0 Future . . . . . . . . . . . . . . . .9.8 Haynes Publishing . . . .195.0 Hibu . . . . . . . . . . . . . . . . .0.6 Huntsworth . . . . . . . . . .48.5 Informa . . . . . . . . . . . . .416.1 ITE Group . . . . . . . . . . . .215.1

MAIN CHANGES UK 350   





IG Group Holdings . . . . . . . . . . .461.7 Talvivaara Mining . . . . . . . . . . . .149.1 Royal Bank of Scot . . . . . . . . . . .264.7 Dechra Pharmaceuti . . . . . . . . .579.5 Yule Catto & Co . . . . . . . . . . . . . . .172.1 International Cons . . . . . . . . . . .154.8 Aquarius Platinum . . . . . . . . . . . .38.1 Barclays . . . . . . . . . . . . . . . . . . . .213.5 Ultra Electronics . . . . . . . . . . . .1579.0 Bumi . . . . . . . . . . . . . . . . . . . . . . .287.1

6.5 5.2 4.6 3.8 3.4 3.3 3.1 2.8 2.2 1.8

Burberry Group . . . . . . . . . . . .1088.0 Ruspetro . . . . . . . . . . . . . . . . . . .100.0 Hays . . . . . . . . . . . . . . . . . . . . . . . .77.7 Oxford Instruments . . . . . . . . .1305.0 Moneysupermarket.c . . . . . . . . .133.0 Taylor Wimpey . . . . . . . . . . . . . . .55.8 Kingfisher . . . . . . . . . . . . . . . . . .272.3 JD Sports Fashion . . . . . . . . . . .699.5 Anite . . . . . . . . . . . . . . . . . . . . . .126.3 Michael Page Inter . . . . . . . . . . .375.7

 
    Persimmon . . . . . . . . . .745.5 Reckitt Benckiser . . . .3626.0 Redrow . . . . . . . . . . . . .149.7 Taylor Wimpey . . . . . . . .55.8

-14.5 761.0 430.2 20.0 3679.0 3100.0 -0.3 155.1 90.2 -2.3 58.0 29.9

INDUSTRIAL ENGINEERING Bodycote . . . . . . . . . . . .394.5 5.1 Fenner . . . . . . . . . . . . . .364.1 0.1 IMI . . . . . . . . . . . . . . . . .909.0 -4.0 Melrose . . . . . . . . . . . . .254.4 3.3 Rotork . . . . . . . . . . . . .2303.0 -25.0 Spirax-Sarco Engi . . . .2086.0 -40.0 Weir Group . . . . . . . . .1679.0 3.0 Evraz . . . . . . . . . . . . . . . .261.1 0.9 Ferrexpo . . . . . . . . . . . .192.6 -3.9 Talvivaara Mining . . . . . .149.1 7.4

437.1 483.7 1022.0 258.5 2328.0 2334.0 2236.0 460.5 378.4 359.1

225.6 280.0 636.5 152.5 1511.0 1708.0 1375.0 211.5 147.5 122.0

INDUSTRIAL TRANSPORTATION BBA Aviation . . . . . . . . .201.7 -1.2 218.8 159.6 Stobart Group Ltd . . . . .115.2 0.2 137.0 110.3

NON LIFE INSURANCE Admiral Group . . . . . . .1119.0 Amlin . . . . . . . . . . . . . .392.6 Beazley . . . . . . . . . . . . .162.2 Catlin Group Ltd. . . . . . .471.8 Hiscox Ltd. . . . . . . . . . . .472.3

-12.0 -1.6 -2.8 0.6 -6.9

1382.0 396.0 169.3 471.8 486.7

787.0 270.6 111.2 337.0 345.1

-20.9 -12.8 -4.4 -4.4 -4.3 -3.9 -3.3 -3.3 -2.9 -2.8

 
    ITV . . . . . . . . . . . . . . . . . .87.0 -1.7 Johnston Press . . . . . . . . .5.2 -0.4 Mecom Group . . . . . . . . .83.3 -4.0 Moneysupermarket. . . .133.0 -6.0 Pearson . . . . . . . . . . . .1173.0 -24.0 Perform Group . . . . . . .372.0 -5.5 Reed Elsevier . . . . . . . . .597.5 -4.0 Rightmove . . . . . . . . . .1578.0 -12.0 STV Group . . . . . . . . . . . .85.9 -0.5 Tarsus Group . . . . . . . . .177.5 -2.3 Trinity Mirror . . . . . . . . . .42.3 1.5 UBM . . . . . . . . . . . . . . . .710.0 -2.0 UTV Media . . . . . . . . . . .135.0 0.3 Wilmington Group . . . .106.5 -0.3 WPP . . . . . . . . . . . . . . . .837.0 -6.0

89.9 52.5 7.9 4.1 226.5 51.0 144.8 93.4 1294.0 1060.0 421.0 190.0 605.0 467.9 1679.0 1180.0 119.5 76.3 181.8 119.5 54.3 25.5 712.0 418.7 159.5 92.5 108.0 78.5 880.0 578.0

MINING African Barrick G . . . . .466.5 -6.7 Anglo American . . . . .1955.0 -46.5 Antofagasta . . . . . . . .1226.0 -23.0 Aquarius Platinum . . . . .38.1 1.2 Avocet Mining . . . . . . . . .91.6 -0.1 BHP Billiton . . . . . . . . .1919.0 9.0 Bumi . . . . . . . . . . . . . . . .287.1 5.2 Centamin (DI) . . . . . . . . .85.1 0.3 Eurasian Natural . . . . .339.9 -2.5 Fresnillo . . . . . . . . . . . .1707.0 -49.0

616.5 2910.0 1399.0 226.8 277.0 2206.5 984.5 115.3 749.5 1943.0

309.8 1748.5 900.5 34.5 63.0 1667.0 268.4 60.7 296.1 1307.0

  Gem Diamonds Ltd. . . . .177.2 Glencore Internat . . . . .364.4 Hochschild Mining . . . . .451.3 Kazakhmys . . . . . . . . . .678.0 Kenmare Resources . . . .40.6 Lonmin . . . . . . . . . . . . . .611.0 New World Resourc . . .289.0 Petra Diamonds Lt . . . . .98.8 Petropavlovsk . . . . . . . .389.1 Polymetal Interna . . . .1019.0 Randgold Resource . .6950.0 Rio Tinto . . . . . . . . . . .3070.0 Vedanta Resources . . . .978.5 Xstrata . . . . . . . . . . . . . .1011.5

MOBILE TELECOMS

SUPPORT SERVICES

NON EQUITY INVESTM. COMM.

Aggreko . . . . . . . . . . .2335.0 -24.0 Ashtead Group . . . . . . .330.0 -2.7 Atkins (WS) . . . . . . . . .670.0 0.5 Babcock Internati . . . . .918.5 -1.5 Berendsen . . . . . . . . . .564.0 3.0 Bunzl . . . . . . . . . . . . . .1090.0 -17.0 Cape . . . . . . . . . . . . . . . .237.1 -2.0 Capita . . . . . . . . . . . . . .734.5 -15.5 Carillion . . . . . . . . . . . . .281.6 -2.5 De La Rue . . . . . . . . . .1000.0 2.0 Diploma . . . . . . . . . . . . .447.5 -0.9 Electrocomponents . . .230.4 -0.8 Experian . . . . . . . . . . . .1013.0 -12.0 Filtrona PLC . . . . . . . . . .526.5 -7.0 G4S . . . . . . . . . . . . . . . .255.6 -5.1 Hays . . . . . . . . . . . . . . . . .77.7 -3.6 Homeserve . . . . . . . . . .231.4 -6.6 Howden Joinery Gr . . . .147.0 -3.0 Interserve . . . . . . . . . . .374.3 -3.6 Intertek Group . . . . . .2792.0 -60.0 Menzies(John) . . . . . . .620.0 -10.0 Michael Page Inte . . . . .375.7 -10.9 Mitie Group . . . . . . . . . .288.6 -3.4 PayPoint . . . . . . . . . . . .702.0 -5.0 Premier Farnell . . . . . . .183.9 -1.5 Regus . . . . . . . . . . . . . .100.5 -2.3 Rentokil Initial . . . . . . . .82.3 -0.6 RPS Group . . . . . . . . . . .245.0 0.3 Serco Group . . . . . . . . .570.0 -2.5 Shanks Group . . . . . . . . .90.4 -2.4 SIG . . . . . . . . . . . . . . . . .106.0 0.0 Travis Perkins . . . . . . . .1077.0 -13.0 Wolseley . . . . . . . . . . .2685.0 -54.0

Genesis Emerging . . . .504.5 4.5 522.0 424.0

OIL & GAS PRODUCERS Afren . . . . . . . . . . . . . . .136.3 -1.9 BG Group . . . . . . . . . . .1270.5 -9.5 BP . . . . . . . . . . . . . . . . .443.0 5.2 Cairn Energy . . . . . . . . .286.9 -3.0 EnQuest . . . . . . . . . . . . .119.2 -1.0 Essar Energy . . . . . . . . .104.8 -1.9 Heritage Oil . . . . . . . . .208.0 -1.3 Ophir Energy . . . . . . . .606.0 -14.0 Premier Oil . . . . . . . . . .375.2 -1.7 Royal Dutch Shell . . . .2238.0 6.5 Royal Dutch Shell . . . .2299.5 3.0 Ruspetro . . . . . . . . . . . .100.0 -14.7 Salamander Energy . . .195.8 -3.1 Soco Internationa . . . . .329.1 -6.2 Tullow Oil . . . . . . . . . . .1357.0 -29.0

96.51 93.95 66.55 12.62 43.64 12.53 6.18 65.72 65.47 6.57 59.38 39.01 17.00 15.10 39.36 49.30 33.15 9.83 19.38 2.89 17.97 73.61 10.55 19.75 12.57 3.56 89.40

0.60 1.09 0.37 0.14 -0.23 0.18 0.11 1.59 1.06 0.08 0.85 0.85 0.14 0.00 0.59 -0.08 1.31 0.19 0.33 0.06 0.11 1.34 0.12 0.25 0.26 0.05 0.40

97.89 94.94 71.05 17.96 48.34 13.25 6.19 68.63 65.82 7.20 73.95 39.48 20.51 16.93 48.95 54.96 39.51 9.85 19.42 3.62 18.72 75.52 13.60 24.13 13.70 5.08 96.50

74.37 56.16 35.80 10.47 24.35 7.88 3.98 42.19 35.57 4.31 43.49 22.72 12.87 10.28 29.02 41.92 20.79 7.69 12.50 2.02 11.89 50.30 9.45 15.62 8.16 2.63 57.10

ING GROEP CVA INTESA SANPAOLO KON.PHILIPS ELECTR L'OREAL LVMH MUNICH RE

6.67 1.36 19.00 97.70 127.80 121.10

NOKIA REPSOL RWE SAINT-GOBAIN SANOFI SAP SCHNEIDER ELECTRIC SIEMENS SOCIETE GENERALE TELEFONICA TOTAL

2.17 15.50 35.79 29.15 67.40 53.70 50.91 78.40 24.66 11.23 41.20

UNIBAIL-RODAMCO SE UNICREDIT UNILEVER CVA VINCI VIVENDI VOLKSWAGEN VORZ

150.0 1547.0 504.6 360.0 132.6 326.4 247.0 637.5 449.7 2402.0 2489.0 230.0 212.9 358.2 1601.0

73.6 1144.0 372.0 248.2 85.7 99.1 115.1 223.7 318.4 1928.5 1941.0 93.6 148.0 254.9 1236.0

1171.0 968.0 508.0 1772.0 855.0

740.5 530.0 325.0 1108.0 469.9

OIL EQUIPMENT & SERVICES Amec . . . . . . . . . . . . . .1134.0 Hunting . . . . . . . . . . . . .878.0 Kentz Corporation . . . .399.9 Petrofac Ltd. . . . . . . . . .1597.0 Wood Group (John) . . .855.0

10.0 14.5 0.0 0.0 6.5

PERSONAL GOODS Burberry Group . . . . . .1088.0-287.0 1586.0 1062.0 PZ Cussons . . . . . . . . . .299.3 -4.6 374.2 285.0

PHARMACEUTICALS & BIOTECH AstraZeneca . . . . . . . . .2914.5 6.0 BTG . . . . . . . . . . . . . . . . .307.9 -1.0 Dechra Pharmaceut . . .579.5 21.0 Genus . . . . . . . . . . . . .1350.0 -22.0 GlaxoSmithKline . . . . .1425.0 9.5 Hikma Pharmaceuti . . .713.5 -2.0 Shire Plc . . . . . . . . . . . .1914.0 -18.0

3111.5 423.0 584.0 1457.0 1507.5 774.0 2300.0

2591.0 238.0 418.3 965.0 1279.5 555.5 1743.0

REAL ESTATE INVEST. & SERV. Capital & Countie . . . . . .215.3 Daejan Holdings . . . .2906.0 F&C Commercial Pr . . . .104.0 Grainger . . . . . . . . . . . .100.0 London & Stamford . . . .118.5 Raven Russia Ltd . . . . . .65.5 Savills . . . . . . . . . . . . . . .407.1 St. Modwen Proper . . . .195.1 UK Commercial Pro . . . . .67.9

-1.2 21.0 0.0 0.0 -0.2 -0.4 0.1 -3.8 -0.2

219.2 3323.0 107.3 116.0 122.1 67.5 407.1 220.0 79.0

158.1 2319.0 94.0 77.3 101.8 48.8 256.2 103.5 65.1

-3.5 -1.5 0.1 -13.0 -5.6

330.0 218.0 549.5 444.0 354.2 288.7 2021.0 1400.0 449.4 312.9

REAL ESTATE INVEST. TRUSTS Big Yellow Group . . . . . .316.1 British Land Co . . . . . . .536.0 Capital Shopping . . . . .341.6 Derwent London . . . . .1907.0 Great Portland Es . . . . .439.9

160.90 3.72 27.61 36.40 15.82 143.45

-0.02 0.01 -0.03 0.88 -4.45 0.35 0.08 -0.08 0.48 0.07 1.68 0.19 -0.34 0.70 0.26 0.15 0.75 -2.10 0.05 0.21 0.70 0.17 1.45

7.58 1.65 19.56 102.50 136.80 121.95 5.19 23.18 37.12 37.63 68.81 54.85 53.47 79.89 25.97 15.55 42.97 165.85 7.01 28.83 40.85 17.06 148.90

4.21 0.85 12.01 68.83 94.16 77.80 1.33 10.90 21.15 23.90 45.52 34.57 35.00 62.13 14.32 7.90 29.40 123.30 2.20 21.87 28.46 12.02 86.40

 
 

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5792.19 -1.01 -0.02 FTSE 250 INDEX . . . . . . . . . . . . . . . 11780.42 -61.08 -0.52 FTSE UK ALL SHARE. . . . . . . . . . . . . 3021.72 -2.76 -0.09 FTSE AIM ALL SH. . . . . . . . . . . . . . . . 699.22 -0.71 -0.10 DOW JONES INDUS 30. . . . . . . . . . 13323.36 69.07 0.52 S&P 500 . . . . . . . . . . . . . . . . . . . . . 1433.56 4.48 0.31 NASDAQ COMPOSITE. . . . . . . . . . . . 3104.53 0.50 0.02

   474.5 345.2 79.6 68.0 815.0 612.0 259.2 195.0 549.0 445.2

SOFTWARE & COMPUTER SERV. Anite . . . . . . . . . . . . . . .126.3 -3.7 Aveva Group . . . . . . . .1889.0 -26.0 Computacenter . . . . . . .395.8 1.5 Fidessa Group . . . . . . .1438.0 -25.0 Invensys . . . . . . . . . . . .249.2 -2.5 Micro Focus Inter . . . . .540.0 -2.0 Sage Group . . . . . . . . . .305.8 1.4 SDL . . . . . . . . . . . . . . . .642.0 -7.5 Telecity Group . . . . . . . .859.0 -8.5

132.3 1925.0 461.9 1766.0 257.0 566.5 312.4 756.0 895.0

58.3 1298.0 292.4 1394.0 180.9 308.3 247.7 586.0 538.5

2360.0 332.7 799.0 947.5 565.3 1167.0 518.0 767.0 361.9 1074.0 460.5 263.0 1025.0 540.0 292.1 92.5 490.3 150.0 379.9 2861.0 652.0 497.0 296.7 740.0 228.8 117.5 89.9 250.0 602.0 115.9 123.2 1125.0 2739.0

1522.0 124.3 490.2 595.0 402.7 761.5 182.3 602.0 235.5 773.5 284.0 182.2 685.0 313.2 219.9 58.9 137.5 96.4 270.1 1744.0 475.0 323.0 220.0 465.0 144.5 64.1 58.2 156.6 458.0 75.8 77.0 715.0 1425.0

TECHNOLOGY HARDW. & EQUIP. ARM Holdings . . . . . . . .552.0 3.0 645.0 469.0 CSR . . . . . . . . . . . . . . . .328.3 0.5 338.4 154.1 Imagination Techn . . . .604.5 -9.0 717.0 358.7 Spirent Communica . . . .163.1 1.1 174.0 105.8

TOBACCO British American . . . .3182.0 57.5 3488.0 2691.5 Imperial Tobacco . . . .2271.0 21.0 2595.0 2004.0

 
    Millennium & Copt . . . .490.7 -4.3 513.0 371.2 Mitchells & Butle . . . . . .285.9 -2.8 288.7 215.6 National Express . . . . .222.5 0.5 252.0 180.0 Rank Group . . . . . . . . . .130.7 -1.6 150.9 111.0 Restaurant Group . . . . .356.4 -0.1 356.5 265.3 Stagecoach Group . . . .290.9 0.1 297.2 230.4 TUI Travel . . . . . . . . . . . .229.7 3.1 230.3 136.7 Wetherspoon (J.D. . . . .454.5 -6.0 474.0 371.3 Whitbread . . . . . . . . . .2275.0 -25.0 2300.0 1508.0 William Hill . . . . . . . . . .310.3 1.1 314.6 183.3

AIM 50 Abcam . . . . . . . . . . . . .423.0 -1.5 Advanced Medical . . . . .77.5 0.0 Albemarle & Bond . . . .257.0 -4.0 Amerisur Resource . . . . .35.3 0.0 Andor Technology . . . . .397.5 -7.5 Archipelago Resou . . . . .57.0 2.0 ASOS . . . . . . . . . . . . . .2051.0 40.0 Aurelian Oil & Ga . . . . . . . .7.3 -0.4 Avanti Communicat . . .354.8 2.0 Blinkx . . . . . . . . . . . . . . .54.0 -1.3 Borders & Souther . . . . .22.0 -2.3 BowLeven . . . . . . . . . . . .75.0 -3.0 Brooks Macdonald . . .1275.0 -20.0 Cluff Gold . . . . . . . . . . . .76.3 -0.3 Daisy Group . . . . . . . . . .98.5 0.5 EMIS Group . . . . . . . . . .800.0 35.0 Faroe Petroleum . . . . . .152.0 -1.5 Gemfields . . . . . . . . . . . .33.0 0.0 Gulfsands Petrole . . . . .128.3 0.3 GW Pharmaceutical . . . .69.0 -1.0 H&T Group . . . . . . . . . .296.0 0.0 Hargreaves Servic . . . . .721.0 -9.0 Healthcare Locums . . . . . .2.1 0.2 IDOX . . . . . . . . . . . . . . . . .36.3 -1.3 Impellam Group . . . . . .342.5 -2.5 Iomart Group . . . . . . . .163.0 1.0 James Halstead . . . . . .632.5 8.5 London Mining . . . . . . .154.5 0.3 Lupus Capital . . . . . . . . .147.0 0.0 M. P. Evans Group . . . . .540.0 -13.8 Majestic Wine . . . . . . . .440.0 0.0 May Gurney Integr . . . . .117.5 -1.5 Monitise . . . . . . . . . . . . .35.0 -1.0 Mulberry Group . . . . . .1301.0 -57.0 Nanoco Group . . . . . . . . .61.0 3.0 Nichols . . . . . . . . . . . . . .755.5 2.0 Numis Corporation . . . . .98.5 0.5 Pan African Resou . . . . . .17.5 0.0 Patagonia Gold . . . . . . .28.0 -1.0 Prezzo . . . . . . . . . . . . . . .67.0 0.3 Rockhopper Explor . . . .180.3 -5.5 RWS Holdings . . . . . . . .544.5 30.8 Secure Trust Bank . . . .1202.5 2.5 Sirius Minerals . . . . . . . . .18.3 -0.3 Smart Metering Sy . . . .201.0 -5.0 Songbird Estates . . . . . .104.0 2.0 Thorpe (F.W.) . . . . . . . .1037.5 -5.0 Valiant Petroleum . . . .469.3 -0.8 Young & Co's Brew . . . .630.0 -0.3

431.0 95.0 375.0 42.0 605.0 76.0 2084.0 46.0 419.0 158.0 131.0 136.0 1365.0 111.0 115.5 800.0 177.8 42.1 212.3 106.0 357.5 1264.0 2.3 40.3 362.5 164.0 648.5 381.5 149.1 560.0 483.0 302.0 40.0 2472.0 77.5 763.0 101.0 18.3 65.0 70.0 393.5 560.0 1215.0 32.0 207.0 123.0 1070.0 585.0 692.5

324.5 64.0 232.8 9.5 305.0 49.0 1142.0 7.3 241.3 33.5 15.3 53.5 1022.5 50.0 86.0 397.5 130.0 18.9 82.0 67.8 253.0 703.5 1.7 21.4 225.0 98.5 410.3 129.0 88.0 390.0 315.0 112.9 25.5 1250.0 38.0 505.0 72.0 11.5 16.5 53.8 165.0 410.0 755.0 9.0 79.0 100.0 765.0 353.5 580.0

TRAVEL & LEISURE Betfair Group . . . . . . . .740.0 Bwin.party Digita . . . . .101.5 Carnival . . . . . . . . . . . .2261.0 Compass Group . . . . . . .701.0 Domino's Pizza Gr . . . .548.5 easyJet . . . . . . . . . . . . .556.5 FirstGroup . . . . . . . . . . .255.1 Go-Ahead Group . . . . .1332.0 Greene King . . . . . . . . .588.0 InterContinental . . . . .1619.0 International Con . . . . .154.8 Ladbrokes . . . . . . . . . . .181.0 Marston's . . . . . . . . . . . .113.4

-8.0 -2.2 -4.0 -4.0 -5.0 -4.0 -1.1 9.0 -6.5 10.0 4.9 1.6 -1.0

901.0 174.0 2369.0 727.0 553.5 572.5 346.3 1506.0 611.0 1725.0 189.7 181.9 115.5

660.5 91.9 1841.0 512.5 393.1 311.5 187.4 1086.0 411.4 973.0 132.0 114.0 84.6



  

      

Nothing else matters when you’re

US SHARES

WORLD INDICES  
   




-4.9 -0.9 -5.5 -1.3 -3.0

Strict entry | Clever matching| Exclusive events | Profile verification

EU SHARES AIR LIQUIDE ALLIANZ ANHEUS-BUSCH INBEV ARCELORMITTAL ASML HOLDING AXA BANCO SANTANDER BASF SE BAYER BBVA BMW BNP PARIBAS CARREFOUR CRH PLC DAIMLER DANONE DEUTSCHE BANK DEUTSCHE TELEKOM E.ON ENEL ENI ESSILOR INTERNAT FRANCE TELECOM GDF SUEZ GENERALI ASS. IBERDROLA INDITEX

  Hammerson . . . . . . . . .458.6 Hansteen Holdings . . . . .78.6 Land Securities G . . . . .792.5 SEGRO . . . . . . . . . . . . . .228.7 Shaftesbury . . . . . . . . .520.0

Inmarsat . . . . . . . . . . . .581.0 -8.0 596.5 389.3 Vodafone Group . . . . . .176.7 0.1 191.3 159.2

Hang Seng Harry  
   


    -0.4 310.6 156.1 -5.7 482.6 293.6 2.3 532.5 365.9 -8.5 1214.0 570.0 -0.1 61.5 31.0 -8.0 1216.0 529.5 -1.0 598.0 268.9 -0.6 188.2 96.2 -4.9 846.5 347.9 -16.0 1175.0 765.0 -75.0 7565.0 4596.0 1.0 3988.0 2712.5 -24.5 1502.0 832.5 -15.0 1283.0 764.0

 
 

FTSEUROFIRST 300 . . . . . . . . . . . . . . 1107.17 3.62 0.33 NIKKEI 225 . . . . . . . . . . . . . . . . . . . 8807.38 -61.99 -0.70 DAX 30 PERFORMANCE. . . . . . . . . . . 7310.11 96.41 1.34 CAC 40. . . . . . . . . . . . . . . . . . . . . . . 3537.30 31.25 0.89 SHANGHAI SE INDEX. . . . . . . . . . . . 2120.55 -14.34 -0.67 HANG SENG . . . . . . . . . . . . . . . . . . 19857.88 30.71 0.15 S&P/ASX 20 INDEX. . . . . . . . . . . . . 2650.60 -4.40 -0.17

COMMODITIES LON GD ONCE FIX AM.................................................................................1731.00 SILVER LDN FIX AM.......................................................................................33.68 MAPLE LEAF 1 OZ ...........................................................................................35.81 LON PLATINUM AM....................................................................................1596.00 LON PALLADIUM AM...................................................................................668.00 ALUMINIUM CASH .....................................................................................2031.50 COPPER CASH ...........................................................................................8031.50 LEAD CASH.................................................................................................2117.00 NICKEL CASH...........................................................................................16520.00 TIN CASH................................................................................................20250.00 ZINC CASH ................................................................................................1963.00 BRENT SPOT INDEX ......................................................................................114.72 SOYA..........................................................................................................1713.00 COCOA......................................................................................................2696.00 COFFEE ........................................................................................................173.40 KRUG.........................................................................................................1793.90 WHEAT .......................................................................................................204.25

 
 

ASX ALL ORDINARIES. . . . . . . . . . . 4348.30 -9.70 -0.22 BOVESPA SAO PAOLO . . . . . . . . . . 59422.55 1018.45 1.74 ISEQ OVERALL INDEX . . . . . . . . . . . 3249.50 -13.79 -0.42 STRAITS TIMES . . . . . . . . . . . . . . . . 3016.40 7.68 0.26 IGBM . . . . . . . . . . . . . . . . . . . . . . . . . 795.18 -1.94 -0.24 SWISS MARKET INDEX . . . . . . . . . . 6503.30 -4.57 -0.07

CREDIT & RATES -1.75 -0.02 0.19 0.00 7.00 44.00 188.00 56.00 370.00 295.00 48.50 0.73 -31.50 -48.00 15.50 3.10 -2.12

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 ............................................................................0.020 LIBOR Euro - 12 months............................................................................0.722 LIBOR USD - overnight ..............................................................................0.152 LIBOR USD - 12 months..............................................................................1.017 Halifax mortgage rate .............................................................................3.990 Euro Base Rate .........................................................................................0.750 Finance house base rate ..........................................................................1.000 US Fed funds ............................................................................................0.260 US long bond yield...................................................................................2.840 European repo rate ...................................................................................0.013 Euro Euribor .............................................................................................0.089 The vix index..............................................................................................16.14 The baltic dry index .................................................................................666.0 Markit iBoxx............................................................................................254.58 Markit iTraxx.............................................................................................129.10

0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 0.00 -0.02 0.00 0.00 0.00 0.01 0.00 0.00 -0.14 -3.00 0.12 3.45

 
    3M ABBOTT LABS ALCOA ALTRIA GROUP AMAZON.COM AMERICAN EXPRESS AMGEN INC APPLE AT&T BANK OF AMERICA BOEING CO CATERPILLAR CHEVRON CISCO SYSTEMS CITIGROUP COCA-COLA COMCAST CLASS A CONOCOPHILLIPS DU PONT(EI) DE NMR EBAY EXXON MOBIL GENERAL ELECTRIC GOOGLE A HEWLETT PACKARD HOME DEPOT IBM INTEL CORP J.P.MORGAN CHASE

91.17 0.50 67.33 0.14 9.33 0.28 34.39 -0.06 255.67 -1.42 57.23 -0.29 83.94 -0.11 660.59 -2.15 37.62 0.20 9.03 0.45 71.27 0.19 88.60 1.50 114.18 0.22 19.04 -0.11 32.66 0.83 37.77 0.11 34.27 0.10 56.37 0.19 51.05 0.42 48.33 -0.20 89.62 0.14 21.59 0.11 692.19 -8.58 17.95 0.52 56.72 -0.58 203.27 2.32 23.34 0.08 39.60 0.84

94.30 67.50 12.09 36.29 260.00 61.42 85.28 683.29 38.28 10.10 77.83 116.95 114.75 21.30 38.40 40.67 35.16 79.96 57.50 49.27 90.00 21.69 712.81 30.00 57.89 210.69 29.27 46.49

68.63 48.96 7.97 25.27 166.97 41.30 52.85 354.24 27.29 4.92 56.90 67.54 86.68 14.93 21.40 31.67 19.72 50.62 37.10 27.41 67.93 14.02 480.60 16.77 31.03 158.76 19.52 27.85

 
    JOHNSON & JOHNSON

68.20 0.02 69.75 55.76

KRAFT FOODS A

39.77 -0.44 42.44 31.88

MC DONALD'S CORP

91.20 -0.10 102.22 83.65

MERCK AND CO. NEW

44.33 0.07 45.17

MICROSOFT

30.79 0.07 32.95 24.26

30.54

OCCID. PETROLEUM

86.44 0.12

ORACLE CORP

32.32 0.01 33.81

PEPSICO

71.58 -0.26 73.66 58.50

106.68 66.36 24.91

PFIZER

24.17 0.07 24.49 16.82

PHILIP MORRIS INTL

88.38 -0.24 93.60 60.45

PROCTER AND GAMBLE

68.26 -0.25 68.65 59.07

QUALCOMM INC

61.85 0.56 68.87 46.40

SCHLUMBERGER

73.66 0.97 80.78 54.79

TRAVELERS CIES

66.95 1.64 66.98 45.97

UNION PACIFIC

124.19 1.33

126.91 77.73

UNITED TECHNOLOGIE

78.76 0.15

87.50 66.87

US BANCORP DELAWRE

34.04 0.21 34.17

VERIZON COMMS

44.24 0.18

46.41 34.65

VISA CL A

131.49 2.81

132.58 81.71

WAL-MART STORES

74.06 0.55 75.24 49.94

WALT DISNEY CO

51.56 0.04 52.00 28.19

WELLS FARGO & CO

34.15 -0.44 35.19 22.61

21.59

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C O R PO R ATE TR AVEL M AKE IT W ORK FOR YOU ‘ Anything is possible’ Designer Malin Adré n on setting up a business in Hong Kong and how she manages her corporate travel

Sleep easy What accomodation options are there?

Payment solutions The secure and easy w ays of making payments

What does the future hold? New technology changing the w ay w e travel PH OTO:JAH N TEIGEN/SCANPIX

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C H ALLENG ES The corporate travel industry only came to exist about 25years ago and the tools we had at our disposal were much more basic. Information was disparate and purchasing methods were crude by comparison to the practices used widely today,there was no internet and we lived in a localised rather than globalised world. This report will explore what has changed, and why corporate travel has become so important in today’s working world.

Technology changing the way we travel

T

hrough the emergence of mobile access to the web and direct sourcing on the move, many travellers are booking their own travel, believing they can get the best deal by shopping around. However,the issue of safety and security is one that the company needs to take responsibility for. Under Duty of Care legislation,employers have an obligation to ensure employees travelling on company business are as safe as can be reasonably ensured. Travel managers and buyers need to know where employees are and ensure they are using reputable, company-approved airlines, hotels and ground transport options.Travel managers need to be able to track the location of employees travelling on company business, both at home and abroad, to provide support and assistance in the event of a major unexpected event.

Technological advances The answer for many corporate travel managers and

buyers depends on the speed of the next generation of technological innovation. To allow travellers to make their own business travel sourcing decisions, using their channels of choice, within company guidelines, the technology needs to catch up. Travel buyers and managers may choose to develop internal systems to consolidate all travel bookings regardless of fare type or booking channel. There are numerous apps available that can help but not all travellers in the company use the same mobile devices or download the same tools. There is no standardisation, and in a workplace where employers are now recruiting fi ve generations of employees, each using and requiring diff erent styles and channels of communication, we are unlikely to ever see total standardisation.

Managing costs As travel expenditure overall remains one of the largest spend categories, some corporations may restructure their

organisations to increase the travel manager or buyer’s remit to include infl uence over mobile and travel and entertainment (T&E) expenses in a bid to contain or reduce costs. We will see a continued eff ort to drive costs out of the travel programme, however, it should not be forgotten that travel remains a fundamentally crucial part of trade. Travel is a cost but it is unquestionably an investment.

Caroline Allen, Association of C orporate Travel Executives (AC TE)

W E RECOMMEND Joyce Cawthorpe Association manager, Association of Serviced Apartments

PAGE 10

‘Anyw here that has a signifi cant business centre is seeing the grow th of serviced apartments’

G lobal business Travel itself may only be the core business for those buying and selling travel products and services, but it is an enabler of business that contributes to global business growth. Without it, business will become stagnant. The key is to make business travel cost efficient, comfortable and relevant. Make a phone or video call when it works but travel and meet multiple clients when travel will create a positive business outcome. Looking to the future It is true that corporations need to be able to offer their travellers a suite of business travel booking options, avenues and support mechanisms, but before you grumble at your travel manager because the travel policy doesn’t make sense, or think that you as a traveller can make your travel reservations cheaper and more effectively yourself, remember the technology simply hasn’t quite caught up yet. But it will!

We make our readers succeed! C O RPO RATE TRAV EL, 2ND EDITIO N, SEPTEMBER 2012 Managing D irector: C hris Emberson Editorial and Production Manager: Faye Godfrey Business D evelopment Manager: Dominic Webber Responsible for this issue: Project Manager: Tara Derakshan Phone: 020 7665 4441 E-mail: [email protected] D istributed with: C ity AM Print: C ity AM Mediaplanet contact information: Phone: 020 7665 4400 Fax: 020 7665 4419 E-mail: [email protected] Find MediaplanetU K on:

Mediaplanet’s business is to create new customers for our advertisers by providing readers w ith high-quality editorial content that motivates them to act

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C O M M ER C IAL FEATU R E

Improvements in standard class benefi ting business travellers Executives for whom business travel is part of every day life are complaining as cash strapped firms clamp down on premium class travel to save money. Passengers accustomed to the benefits of first class train travel, often find standard class busy and cramped with business basics like Wi-Fi being offered at an additional charge. Chiltern Railways, which runs between Birmingham and London Marylebone, has reacted by giving standard class passengers many of the benefits normally only associated with first class, coupled to simple affordable flexible tickets, producing an impressive 24 per cent increase in year on year earnings. A year ago, Chiltern Railways introduced faster schedules making it possible to travel between London Marylebone and Birmingham from just 90 minutes. Onboard their Mainline services standard class has tables at

advance. It has been a big hit with passengers who were fed up of being held captive in stations waiting for the fixed departure time of their Advance Purchase ticket. In response to calls from the business community, from this December Chiltern will run more direct trains to Birmingham Snow Hill, which is located in the middle of Colmore Row business district. Passengers between Birmingham and London now have a travel option that works for them and their budget — providing a comfortable environment that stimulates productivity whilst helping the bottom line.

CHILTERN’ S SPACIOU S NEW MAINLINE STAND ARD CL ASS HAS PROD U CED 2 4 PER CENT EARNING S G ROWTH

almost every seat, plug points and free Wi-Fi making it the perfect space for working on the move.

Chiltern’s flexible pricing structure allows savvy businesses to send their people to

Birmingham from London for a full day of business from only £27.50 return without booking in

4 · SEPTEMBER 2012

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET

NEWS

CORPORATE TRAVEL IS READY FOR TAKE-OFF

■ Question: What are the future trends for business travel? ■ Answer: The grow th of Asia as an economic dynamo, mobile technology and a change in the nature of travel management companies.

not ready to take over from face-toface meetings.” However, that could very well be the case in the coming decade. Due to the increase in the number of non-hierarchical network organisations, communication of all sorts will increase.

The economic upheaval of the last few years has had a profound effect on the nature of corporate travel. It remains as important as it has ever been, if not more so,with the growth of Asia as a dominant trading area, but corporations and travel management companies (TMCs) have had to take on board a series of challenges that were not there before. “There has been a recent dip in revenue in business travel,” says Henk-Jan van Alphen, trend expert at Futureconsult,which advises clients on scenario planning. “Usually travel grows faster than GDP, and it also declines faster,when GDP declines.We are beginning to see it picking up now.” The immediate effect of the downturn had been to see a shift from business travellers using first and business class to economy, says van Alphen, and that is likely to continue to be the case. “For shorter distances, there is also the competition from fast rail,” he goes on. “Video conferencing has increased a little, but it’s

Future trends The rise of Asia cannot be underestimated. According to The Travel Gold Rush 2020, a report produced by travel experts Amadeus in partnership with Oxford Economics, 22 per cent of all global arrivals now take place in Asia, while the region’s residents account for 32 per cent of all travel spending. “Trust and personal relationships are very important in Asia,” says van Alphen. “You need to meet a lot of times for business to happen.” The other major future trend in business travel concerns the growth in mobile technology. “This allows travellers to make their own decision, and buy ancillary services, change flights and pay with mobile Henk-Jan van Alphen C onsultant, Futureconsult

THE MAGAZINE FOR BUYERS AND ARRANGERS OF BUSINESS TRAVEL AND MEETINGS S ubscribe for free at www.thebusinesstravelmag .com

phones,” says van Alphen. “People use their mobiles in private travel and will expect to do the same when it comes to business. It will be a challenge for companies to manage travel events and maintain compliance, to ensure people don’t buy too many services or use the wrong airline. They will also have to maintain knowledge of location to provide a duty of care.” This will be an increasingly big issue for TMCs in the future,as will competition from the internet,so much so that the very role of the TMC is beginning to change. “The cheapest flights are not so difficult to find any more, so TMCs will have to start providing more premium services,” says van Alphen. “They will have to think about the optimal solution for business problems, making decisions about the cost benefits of travel.There can be multiple solutions: telephone, video, email and travel and they can facilitate the meeting and the way people meet. They could also arrange travel to make sure someone could see several different clients,or have a day in the middle to rest.They will take on more of a consulting role — for in business, travel is far more than getting from A to B.” VIRGINIA BLACKBURN [email protected]

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET

Ask the experts:Future trends and traveladvice ■ 1)What do you see as the most important emerging trend in business travel in your market? ■ 2 )What advice can you offer to frequent travellers? Jon West, Managing Director of hotel specialists HRS (the Hotel Reservation Service)

Rapid advancements in mobile technology are having a huge impact on business travel. Business travellers are booking more and more hotels via apps and mobile websites — almost one third of business travellers have now booked a hotel room from a mobile device, and by 2014, we expect that one in five business trips will be booked from smartphones or tablet PCs. Business travellers are now demanding the same level of convenience and functionality from their mobile devices as they get on their desktops, a demand which is propelling the mobile bookings market in the same direction as consumer travel. The corporate market is trying to keep up with the behaviour of its regular travellers and organisations are adopting similar practices to ensure they do not lose bookings to external websites and programmes.

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FLY ING HIG H Henk-Jan van Alphen discusses the exciting future trends of the corporate travel industry PHOTO: SHU TTERSTOCK

Business travellers should not overlook independent hotels in their search for the best rates available— independent hotels in the same location as larger chains can often be up to 15 per cent cheaper. Global Distribution Systems (GDS) have previously been criticised for their reliance on chain hotels. This is changing thanks to GDSs partnering with large hotel aggregators. Business travellers not only have increased access to independent hotels, but also have a simpler way to compare and shop for the best rates available. Travellers should ensure they are booking through a portal with both independent and GDS content to ensure a wide enough search range for the best rates and locations.

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Peter Taswell, Head of Marketing and Strategy, American Express, Global C orporate Payments Europe

The increasing globalisation of the economy has cemented the view of business travel as a critical business investment for companies as they seek to compete for business on a global scale and leverage the growth opportunities in the BRIC economies and elsewhere. At the same time, the focus on generating value for money on

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travel expenditure continues apace and there is significant demand for programmes that provide companies with further savings or discounts on travel booked with their preferred suppliers. We certainly expect this focus on generating value from business travel spend to continue, with companies of all sizes becoming increasingly focused on gaining access to travel discounts and benefits such as insurance and lounge access for their travellers. By applying some of the same planning to your business trip as you would to a holiday, you can make a business trip pass smoothly. Remember to set up preferred seating preferences, and take advantage of online checking in facilities as well as ensuring you optimise your use of any rewards and points programmes available to help the trip go more smoothly. Corporate travellers in the UK are in fact quite switched on to benefits available as two thirds of travellers polled revealed they collect rewards and points when travelling on business. Finally, if there’s time, take a few moments to learn a little about your destination as this will add greatly to your enjoyment of the trip overall.

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SEPTEMBER 2012 · 5

The rewards of travelloyalty ■ Question: Are travellers becoming w eary of rew ard programmes that fail to excite them? ■ Answer: Yes, so companies must think differently and involve their customers more so they get the travel benefi ts they w ant. The travel and accommodation industry is no stranger to offering rewards for frequent flying or regular hotel visits,but many people do not redeem their reward benefits. They forget they are available, lose their loyalty card or never know how many points they have. Yet in these tough times consumers could be missing out on a discounted trip or extra perks when they do travel.

G aining customer loyalty Traditionally this has been a very price-sensitive area with customers often reluctant to stick with one brand because loyalty schemes have seemed complicated or have failed to excite them.It means travel companies must work harder to win customer loyalty. Experts predict that travel loyalty programmes will have more of a presence on social networks thisyear. Hotel businesses are getting an intimate look into what their customers want,need and think.While ‘liking’ or ‘following’ a certain business or company on sites such as Facebook or Twitter is earning customers exclusive deals and rewards. S TE VE H E M S LE Y [email protected]

[email protected]

6 · SEPTEMBER 2012

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INSPIR ATIO N Question: How do you make your dream a reality in order to do what you love? Answer: Dare to fight an uphill battle: find new ways of doing things and use all your skill and luck to get where you want.

H ow Ilearntthat anything is possible H OW I MADE IT “When I was in Los Angeles to launch and sell my dresses for first time, I was approached by a woman who asked where I had bought the dress I was wearing,” says Malin Andrén, designer and founder of clothing label Malina by Malin Andrén. “I told her it was my own design and I was actually in Los Angeles to try to sell my dresses, to which she replied: ‘I will be your agent in Canada.’ Since then she has been my agent in Canada.”

Asian markets After studying at Beckmans College of Design in Stockholm and Parsons in New York, Andrén started working for a company that designed and produced accessories. The job gave her the opportunity to see the world, and it was her first contact with the Asian market — she worked in Hong Kong for 4 years. Anything is possible Three years ago, Andrén found a gap in the market. At her age she was

involved in many weddings of friends and family, and soon realised that the supply of wedding gowns were insufficient. “Either you had to choose an expensive wedding dress from one of the major fashion houses or you simply had to settle for a cheap dress. Something in between did not exist. I wanted to make cool dresses at a good price.” Andrén took a chance and founded dress label Malina by Malin Andrén. Her previous experience working in Hong Kong led to her decision to start selling her dresses to the Asian market.

Check, check and check again “In Hong Kong I learned how to work with the Chinese. You need to have great patience and you have to ‘check, check and check again’. If you do this, the Chinese are very skillful and efficient business people. In Hong Kong I have no factories — all my clothes are hand sewn in a studio. I didn’t want my dresses to be made in large massproduction factories in China so I decided to keep the small studio in Hong Kong, ‘Asia’s Italy’. I feel emotionally

bound to it.” But in the middle of the financial crisis there were many challenges that Andrén faced.

‘With offi ces around the w orld, you could say that travelling has laid the foundation for my success today’ Malin André n D esigner

Selling through PR “Shops that offered a range of brands were severely affected by the financial crisis and nobody wanted to take on my clothes. I decided to start thinking outside the box and sell by dresses through PR. I sent my dresses to celebrities and asked shops to hang them up free of charge.This meant that I would only get paid if the dresses sold. Nowadays, buyers are aware of my label, but I feel like I started the hard way.” The colorful silk dresses from Malina by Malin Andrén are now sold in Hong Kong, Stockholm, Malmo, Helsingborg, Helsinki, London, Los Angeles, Canada and Copenhagen. “With offices around the world, you could say that travelling has laid the foundation for my success today.” ■ How do you start out in other countries? I usually work with someone who knows the market and I travel around

the area visiting suppliers. After this, I often go on my gut feeling— which suppliers and contacts feel right. Having a personal relationship is very important to me. ■ What is important in maintaining a good relationship with suppliers and clients? You have to take care of a good client.You mustn’t promise the world and it is very important to be honest with each other. It is a good idea to make a future plan together. It is so important to be aware about cultural differences and you must have mutual respect for each other. ■ What do you need to be successful in the clothing industry? Wow, I would like to have the recipe for that! There is a lot of work involved in retail — there are so many things that can go wrong and do go wrong! The most important thing is probably to like what you do, work hard and believe in what you are selling. AND RE AS BJÖ RKM AN info,[email protected]

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SEPTEMBER 2012 · 7

PROFILE

Malin André n ■ Age: 30 i n Se p t e m b e r ■ Occupation: De s i g n e r a n d f o u n d e r o f Ma l i n a b y Ma l i n An d r é n ■ Be De Pa

Education: c k m a n s Co l l e g e o f s i g n ,St o c k h o l m , r s o n s ,Ne w Yo r k

■ Favourite brand: Ma t t h e w W i l l i a m s o n , Mi c h a e l Ko r s a n d H & M ■ Favourite destination: H o n g Ko n g a n d It a l y ■ Favourite way to travel: I h a t e t h e c a r ,s o i t m u b e b y a i r !W h e n I fl y f a a w a y Im a k e s u r e Ig e t h e o v e r n i g h t fl i g h t , a n d w h e n I fl y s h o r t d is t a n c e s Im a k e s u r e s to c k u p o n n e w s p a p a n d p o d c a s ts ■ Su a ir s w c o

t

s t r

I e rs

Can’ t travel without: n h a t ,m y s a m s o n i t e c u s h i o n ,c a s h m e r e e a te r a n d m y m p u te r

■ Best travel memory: Sa f a r i i n Af r i c a w i t h m y f a m ily — it w a s m a g ic a l ■ U K retailers: w w w .lo n d o n -b o u t i q u e s . c o m w w w .Lu x x La b .c o m w w w .b y m a l i n a .c o m

INTERNATIONAL BU SINESS WOMAN D esigner Malin Andrén spends a lot of her time traveling on business.She is pictured here in some of her dresses PHOTO: ANG ELICA ENG STRÖ M

C O M M ER C IAL FEATU R E

London’s intelligent express commuter service ■ G reat news for London commuters! G reen U rban Transport, London’ s pioneer of intelligent corporate transport services is launching a full roll out of its express G U TSi commuter initiative. Commuters that trialled the service from London’s leading City institutions have been impressed; they see it as ‘totally life changing’ and an obvious initiative for employers to support.

GUTSi provides fast reliable express shuttles, giving time back to commuters and extra productivity to companies. Inaugural services are running from Fulham, Chelsea and Kensington to and from the City and Canary Wharf cutting door to door travelling times by up to 50 per cent. New routes are being trialled across London. Andy MacLachlan,GUTSi founder said “simple ideas are the best, it’s no surprise that comfortable, reliable,fast and stress free commuting

has dramatic upside on happiness, health, productivity and the loyalty of staff. Our vehicles are designed for business with guaranteed seats, WiFi, tables, powerpoints and Sky TV. GUTSi replaces the pain with gain. The value of productive employee time averages 2.7 times their gross salary in the City, this makes GUTSi compelling.” Economic benefits are guaranteed for corporate sponsors. As a shared ‘works bus’ GUTSi is tax efficient and ensures exceptional

value to both companies and staff. GUTSi is successfully winning over car or taxi users reducing London’s environmental footprint. Importantly GUTSi allows the best jobs in the city to be available to those who find public transport too challenging.

GUTSi works in partnership with employers from 10 – 10,000 staff. GUTSi is offering free first class commuting trials for commuters and companies. But we advise you to act quickly...! ■ D etails at www.gogutsi.com

8 · SEPTEMBER 2012

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NEWS H EALTH & SAFETY TIPS Safety is paramount when travelling on business. Saul Shanagher, training manager, and D r Jonathan O’ K eefe, medical director, of travel emergency experts International SOS, provide the following tips.

Be prepared Read up on your destination, imagine what it will be like, what threats there might be and what to bring with you. Read up on it in advance to avoid culture shock.

Make sure you can communicate MOBILE PAY MENTS Shane Bruhns expects the use of mobile phones for payments to be the next big innovation in corporate travel payment solutions PHOTO: SHU TTERSTOCK

Taking a mobile approach to money management

■ Question: What is the best w ay for corporate travellers to pay and w hat are the future developments in the industry? ■ Answer: A combination of lodge accounts, corporate credit cards and mobile technology w ill prevail in the future.

TH E FUTURE OF PAYMENTS One of the most important aspects of corporate travel involves payments and this is an area which is seeing developments all the time. The older methods, in which a traveller settled his or her bills and then presented an invoice to the company is now almost entirely defunct, while new technology, in the form of mobile payments, is moving ahead rapidly. Managing expenses “Over the years, lodge accounts, so called because it is lodged with travel management companies (TMCs) and used to pay for travel for everyone in the company, have become the norm,” says Brian Merry, director of ancillary products at travel Brian Merry Director of ancillary products, HRG

management company HRG. “This allows a company to access greater credit than a TMC alone could give them. But in that case, the traveller will also probably have a corporate card to use for other expenses such as hotels and eating out. This means the traveller will be claiming expenses on the corporate card, and so there will be two forms of accounting and processing for each and every journey.” Merry believes that the best way for a company to manage its travel expenses is to have the traveller put absolutely everything on the corporate card, which cuts the administrative burden in half. And with recent developments in mobile technology, this looks to be the logical direction to take. “In the future, there will be virtual cards and pre-paid cards which are like an automated version of old cash

expenses,” he says. “The card will have no value, but will be loaded up when a person is travelling.”

Mobile payments The next really big innovation, however, will be the use of mobile phones for payments. “Contactless and mobile payments are still emerging as a technology, but adoption is now starting to pick up in numerous regions worldwide,” says Shane Bruhns, COO and founder of expenses management experts Spendvision. “However the UK is still a decade behind Asian economies where mobile payments have been the norm for years — in Japan you can swipe your phone to make payments for everything from a subway ticket to a drink in a bar. Take-up in the UK will be led by consumers through the introduction of services such as Google Wallet and the

TRENDS ■ D emand for global c a r d p r o g r a m s p r o m p t e d is s u e r s t o e x p a n d t o m o r e c o u n t r ie s o r p a r t n e r w it h o t h e r c o m p a n ie s t o e n s u r e g l o b a l r e a c h ,a c c o r d i n g t o t h e 2012 B u s i n e s s Tr a v e l Su r v e y b y B u s i n e s s Tr a v e l Ne w s . ■ G rowth in international t r a v e l ,a l o n g w i t h t h e a d o p t i o n i n Ca n a d a a n d Me x i c o o f c h i p -b a s e d s e c u r i t y p r o m p t e d U.S.-b a s e d

p r o v id e r s t o d e p lo y c a r d s w it h b o t h c h i p -a n d -p i n a n d s i g n a t u r e s e c u r it y p r o t o c o ls . ■ The payments landscape i n 2011 a l s o s a w a fl u r r y o f a n n o u n c e m e n t s a n d t r ia ls in m o b ile p a y m e n t . ■ Single-use card o p t i o n s a ls o e m e r g e d a s o n e o f t h e f a s t e s t g r o w t h a r e a s in c o m m e r c ia l p a y m e n t .

Shane Bruhns C O O and founder, Spendvision

much-rumoured NFC availability on smartphones.”

Simplifying processes Bruhns believes that mobile technology will not necessarily take the place of lodge accounts, but it will give the traveller, the parent company and the TMC more choice and flexibility. “Mobile payments give us yet another payment option,” he says. “If you can capture all your purchasing, lodge, contactless and credit card transactions in the same place as your mobile payments, TMC bookings, and cash expenses then you can dramatically simplify the process for employees, managers and finance, reduce costs and make sure you have complete visibility of your spend.” And of course it works for the parent company too. “Control and visibility is critical if people are being given more freedom to spend company funds on cards and mobile payments — both visibility of spend as well as active policy compliance,” he says. VIRGINIA BLACKBURN [email protected]

Make sure your phone will roam, your battery is charged and you have emergency numbers, including your local office, hotel, car company and travel company programmed in.

G et the right insurance Know your medical assistance provider and understand what you are covered for. Some destinations and activities will need premium cover whereas others will be included in basic packages.

Take care of yourself If you take medication, carry twice as much as you will need on the trip and put half in your hand luggage and half in your suitcase. Be conscious of what you eat. Don’t worry about offending people — say you have a medical allergy — avoid midrange buffets and choose food that is well cooked, peeled, boiled or washed in clean water. Carry hand sanitiser to clean your hands throughout the day.

Be aware of potential trouble points When arriving at the airport, arrange a meet and greet including confirmatory questions to the driver that only he will know the answer to.There can be scams where people get into the wrong cars by mistake.

SMARTER COMMUTING City and Canary Wharf commuters in Fulham, Chelsea and Kensington are leaving their cars and taxis behind for the fast growing new GUTSi express commuting services. The ‘shared work bus’ offers a combination of saving time and money together with a totally reliable fast efficient business class service.

Knowing where everyone’s going at any one time is never easy. Knowing precisely where employee expenditure goes is. Our intelligent range of payment solutions will save you time, money and eort when managing your travel and entertainment expenses. From the new Tracker solutions for Rail* and Travel Management Account to corporate and prepaid cards, you’ll have complete control of all your employees’ spend.

To find out more visit www.barclaycard.co.uk/business/ travel-solutions

*In partnership with MyTrainTicket for Business. Barclaycard is a trading name of Barclays Bank PLC. Barclays Bank PLC is authorised and regulated by the Financial Services Authority and subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Registered in England. Registered No. 1026167. Registered Oce: 1 Churchill Place, London E14 5HP.

10 · SEPTEMBER 2012

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET

NEWS

A room of one’s own ■ Question: What is the best type of accommodation for a business traveller? ■ Answer: It depends on the individual. There is a huge amount of choice, from hotels to serviced apartments.

Joyce Cawthorpe Association manager, Association of Serviced Apartments

Margaret Bowler Director, HRG

KEY ADVANTAGES OF USING SERVICED APARTMENTS

More space They have on average 30 per cent more space than a hotel room. This will include a living and dining area and a kitchenette.

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One of the most fundamental issues regarding corporate travel is where to stay. There are now a huge range of options to choose from, with a wide variety on offer, from budget hotels, business or city centre hotels to serviced apartments, which are becoming an increasingly popular option. “It depends on the client,” says Margaret Bowler, director of global hotel relations at business travel experts HRG. “Location is relevant, as is the amount of time you’re staying somewhere. Increasingly, people stay at hotels from three to five nights and after that they think about staying in serviced apartments.”

No frills no thrills? Cost might be an incentive for companies to send their employees to budget hotels, but in truth, business travellers tend to need a certain level of service and to be able to stay in an appropriate location, such as near an airport, clients or the parent company’s local

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and they are common in secondary cities such as Southampton, Nottingham and Liverpool now.” Over the next few years, more developments are expected in Latin America, especially in the run-up to the 2016 Olympics in Rio de Janeiro.They are now providing a viable alternative to hotels.

HOME COMFORTS: Serviced apartments are becoming more popular for the business PHOTOS: ASSOCIATION OF SERVICED APARTMENTS traveller and they can be very cost efficient

office.Amenities such as room service of a good restaurant to entertain clients can also play a role. But serviced apartments are gaining in popularity. “They’ve accelerated over the last two or three years, more are opening in relevant locations and they are becoming a good alternative to a hotel,” Bowler says. “They provide a living space as well as a bedroom and are particularly suitable for people like graduate trainees spending a couple of months in a specific location.”

Worldwide trends Joyce Cawthorpe, association manager of the Association of Serviced Apartments, agrees. “Serviced apartments started in the United States and are strong in Australia and New Zealand,” she says. “We are seeing them expand in growing economies like India and the Far East. Anywhere that has a significant business centre is seeing the growth of serviced apartments. Our own organisation has doubled in size to 56 members with 12,000 properties,

A home away from home Until now, serviced apartments have mainly been the domain of property developers, but hotel groups are also becoming aware of their growing popularity and the additional benefits that will make them popular. Many now have supermarkets and gyms nearby, some have breakfast restaurants and many have cooking facilities that extend far beyond the fridge and microwave that are associated with some hotel rooms. And finally, there is a significant tax benefit: “If you stay in them for 28 days or longer, VAT payable reduces from 20 per cent to four per cent,” says Joyce Cawthorpe. However, many people think that serviced apartments are only suitable for month-long stays — in fact, they can be used for just a couple of days. VIRGINIA BLACKBURN [email protected]

Flexibility They offer flexibility and take away the need to eat out every night.They may also offer an entertaining space for clients.

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Independence Not everyone wants to see a housekeeper every day. There are different types of models from apartments with no reception to those with 24-hour reception.

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Privacy They offer a home from home and can be personalised with photographs and mementos.

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Cost effective The traveller does not have the temptation of a mini-bar and room service, which means it’s easier to control travel budgets with a fixed amount of money. All the basics are covered without stumping up for the cost of a five star hotel.

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Joyce Cawthorpe, Association manager, Association of Serviced Apartments

CITY APARTMENTS

Stay 1 night (Sun-Thurs) at a location of your choice and receive a 5% discount off Premier Apartments guaranteed Best Available Rate. Included in this special promotional offer for Corporate Travel are free WiFi and a Welcome Hamper on arrival! The Team at Premier Apartments looks forward to welcoming you soon! Please visit www.premierapartments.com choose your desired location and use the “promotional code” of CORP5 to make your booking. Terms & Conditions Promotional rates (sta) are available from 12th September until end of October and must be booked by 30.9.12

We’re delighted to announce that Premier Apartments have recently opened in London. Situated in the trendy Limehouse district, our location is perfect for anyone relocating to the City or perhaps on a temporary work contract. A three minute walk will bring you to the DLR train station where you can travel to Canary Wharf in 5 minutes, Bank in 6 minutes and Oxford Circus in 18 minutes.

More than just a room... At City Apartments we give you more within one simple & competitive rate! Free welcome pack (£80 value) Free business broadband Free Sky TV Free maid service Free 24hr personal welcome Free grocery shopping service Call Matt, Will or Louise on:

020 7726 2626 www.cityaparts.com

The City Specialists the City specialists

AT GO NATIVE WE BELIEVE THAT WHETHER IT’S FOR A NIGHT, A MONTH OR LONGER, A SERVICED APARTMENT IS THE ONLY WAY TO REALLY FEEL AT HOME, RIGHT FROM THE START OF YOUR STAY. THIS BELIEF HAS BEEN AT THE HEART OF WHAT WE DO SINCE WE STARTED OUT IN 1997. WE’VE COME A LONG WAY AND HAVE BEEN RECOGNISED FOR OUR ACHIEVEMENTS. WE’RE ON A MISSION TO BE THE BEST IN THE BUSINESS BY OFFERING THE WIDEST RANGE OF GREAT VALUE SERVICED APARTMENTS, DELIVERED BY PASSIONATE PEOPLE AND AN ON-LINE PLATFORM THAT WILL SHAPE OUR INDUSTRY. TOGETHER, WE ARE MAKING A MATERIAL DIFFERENCE TO ALL OUR CLIENTS AND GUESTS, DEMONSTRATING

THAT LIVING LIKE A LOCAL IS THE ONLY WAY TO STAY

Welcome to the neighbourhood To find out more call us on 0845 601 2028 or visit www.gonative.com

THE event for buyers and arrangers of business travel apply now ! October 22nd & 23rd Novotel London West, Hammersmith Three options to choose from...

1. VIP hosted buyer Join us for two full days at The Business Travel Conference on 22nd-23rd October. We will pay for your pass and accommodation at the conference venue, The Novotel London West Hammersmith. Delegate’s company must have an annual travel spend in excess of £200k.

2. Complimentary two-day pass An option for corporates who are not sure of their travel spend or have an annual spend under £200k. We pay for your two-day pass, including meals and refreshments.

3. Complimentary one-day pass Join us for either Monday 22nd or Tuesday 23rd October, but also enjoy access to papers and presentations from conference sessions on the day you missed.

Apply for your place by visiting www.thebusinesstravelconference.com

SATELLITE& &CABLE CABLE SATELLITE

TERRESTRIAL TERRESTRIAL

cityam.com

TV & GAMES

WEDNESDAY 12 SEPTEMBER 2012

BBC1 BBC1

BBC2 BBC2

6pm BBC News 6.30pm BBC London News 7pm The One Show: BBC News 8pm Watchdog 9pm CHOICE Who Do You Think You Are?

6pm Eggheads 6.30pm Celebrity MasterChef 7pm Celebrity Antiques Road Trip: Former footballers Peter Shilton and Peter Schmeichel compete. 8pm Restoration Home One Year On 9pm CHOICE Dead Good Job 10pm The Boss Is Back 10.30pm Newsnight: Weather 11.20pm FILM Storyville: One Day in September: Premiere. Oscar-winning documentary, by Kevin Macdonald. 1999. 12.55am BBC News

10pm BBC News 10.25pm Regional News 10.35pm The National Lottery Wednesday Night Draws 10.45pm Not Going Out 11.15pm Rosh Hashanah: Science Versus Religion 11.45pm FILM The Human Stain 2003. 1.20am Weatherview 1.25am Sign Zone: See Hear 1.55am The Tube 2.55am Rip Off Britain 3.40am Celebrity MasterChef 4.10am-6am BBC News

3.55am-6am BBC Learning Zone

SKY SPORTS 1

BRITISH EUROSPORT

6pm Live International Twenty20 Cricket 10pm Team Sky – Road to Glory 11pm FIFA Futbol Mundial 11.30pm Total Rugby 12am Sporting Greats 12.30am International Twenty20 Cricket 2.30am Boots ’n’ All 3.30am Total Rugby 4am-6am International Twenty20 Cricket

SKY SPORTS 2

7pm ESPN Kicks: Brasileirao 7.15pm ESPN Kicks: Extra 7.30pm World Series by Renault 8.30pm 30 for 30 10.30pm ESPN Kicks: Extra 10.45pm ESPN Kicks: Brasileirao 11pm Goal Show 11.30pm ESPN FC Press Pass 12am World Series by Renault 1am 30 for 30 4am ESPN Kicks: Extra 4.15am ESPN Kicks: Brasileirao 4.30am ESPN FC Press Pass 5am-6am American Le Mans Series

SKY SPORTS 3

7pm Watersports World 8pm Boots ’n’ All 9pm FIFA Futbol Mundial: International football magazine. 9.30pm Total Rugby 10pm Cage Fighter 10.30pm Asian Tour Golf Show 11pm Powerboating 11.30pm Cage Fighter 12am World Endurance Championship 1am-2am Watersports World

SKY LIVING

6pm London Tonight 6.30pm ITV News 7pm Emmerdale 7.30pm Coronation Street 8pm CHOICE All Star Mr & Mrs 9pm Mrs Biggs 10pm ITV News at Ten 10.30pm London News 10.35pm FILM Assassins: Thriller, starring Sylvester Stallone and Antonio Banderas. 1995. 1am Jackpot247; ITV News Headlines 3am FILM Columbo

6pm The Simpsons 6.30pm Hollyoaks 7pm Channel 4 News

7pm Criminal Minds 8pm Cooks to

6pm Home and Away 6.30pm 5 News at 6.30 7pm Secret Interview: 5 News Update 8pm New Emergency Bikers: 5 News at 9 9pm Dallas 10pm Paddy & Sally’s Excellent Gypsy Adventure 11pm True CSI 12am Cricket on 5: England v South Africa.

7.55pm 4thought.tv 8pm River Cottage: Three Go Mad 9pm Grand Designs 10pm Shameless

11.10pm 2 Broke Girls 11.40pm New Girl 12.05am Random Acts 12.10am Music on 4: Mercury Music Prize: Albums of the Year Launch 12.40am iTunes Festival 2012 1.35am 4Play: A$AP Rocky 1.50am Spotlight: Pop and Dance 2am Crush 2.55am Happy Endings 3.15am Momma’s Boy 3.35am FILM The Good Die Young 1954. 5.15am-6.10am Deal or No Deal

1975. 4.20am-5.30am ITV Nightscreen

1am SuperCasino 3.55am HouseBusters 4.20am House Doctor 4.45am Michaela’s Wild Challenge 5.10am Wildlife SOS 5.35am-6am Wildlife SOS

12.10am The Big Bang Theory 1.05am Scrubs 1.35am Desperate Housewives 2.20am Rude Tube: Rude Zoo 3.15am How I Met Your Mother 3.40am Rules of Engagement 4am Smallville 4.40am-6am Switched

BBC THREE

ESPN

7pm Total Rugby 7.30pm Live Greyhound Racing 10pm Boots ’n’ All 11pm Trans World Sport 12am PGA EuroPro Tour Golf 2am-2.30am Asian Tour Golf Show

CHANNEL4 CHANNEL5 TV PICK CHANNEL4 CHANNEL5

ITV1 ITV1

Market 9pm Mount Pleasant 10pm Supernatural 12am Mount Pleasant 1am Styled to Rock 1.50am Bones 3.30am Supernatural 4.20am Criminal Minds 5.10am-6am Medium

6.25pm PGA Tour Golf 8.25pm European Tour Golf 8.55pm Golf Club 9pm Alexia’s Selection 9.05pm Sailing 9.35pm Alexia’s Selection 9.40pm Yacht Club 9.45pm Wednesday Selection 9.50pm Olympic Magazine 10.15pm World Cup World Tour 11.15pm-12.15am British Superbikes

DISCOVERY HOME & HEALTH

7pm Storage Wars 7.30pm Pawn Stars 8pm Storage Wars 8.30pm Storage Wars: Texas 9pm Swamp People 10pm Ax Men 11pm Storage Wars 11.30pm Pawn Stars 12am American Pickers 1am Swamp People 2am Ax Men 3am Swamp People 4am The SS 5am Pawn Stars 5.30am-6am American Restoration

DISCOVERY

E4

7pm Bear Grylls: Born Survivor 8pm American Guns 9pm American Chopper: Senior Versus Junior 10pm Auction Hunters 11pm Gold Rush 12am American Chopper: Senior Versus Junior 1am Auction Hunters 2am Auction

7pm Hollyoaks 7.30pm How I Met Your Mother 8pm The Big Bang Theory: Access All Areas 8.30pm The Big Bang Theory 9pm Meet the Parents 10.05pm Rude Tube: Rude Zoo 11.05pm The IT Crowd

COFFEE BREAK KAKURO

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.



   

   

  

   

   

  

QUICK CROSSWORD P U R S E E O L Y I N G T K A M B I V O M S W E E P N A M A L T A O A T O A M B L E

C N O B B A L L S T A B H B

I N O P E R A T I V E

R C A O E W E R I N C E U K E S U K E R G R N E

8

30

45

4

14 15

7 13



KAKURO 4 2 1 3 8 7 5 6 7 2 9 1 7 6 9 6 1 2 5 3 1 2 6 7 5 3 8 8 2 9 1 3 9 5 7 4 1 9 6 1 2 6

4 9 8 1 2 4 9 1 6 9 3 7 3 4 5 8 1 3 2 4 2 9 1 9 8 4 8 3 8 2 5 8 9 6

13

11

8

17 34

45 8 10 11

23 35

The nine-letter word was BRAWNIEST

ITV1, 8PM Antony Cotton, Michael Owen and Rachel Stevens are joined by their partners to find out how much they really know about each other.

WHO DO YOU THINK YOU ARE?

BBC1, 9PM Hugh Dennis’s grandfathers both fought in the First World War, but rarely spoke about what they went through.

12

19



16

16



4

16

37



22

5



        

        

        

        



14 13





B

M D O         





3

A

        





6

U N



27

7

16

        







12

        



 

9 11

45

        





10 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.

WORDWHEEL

7pm The Simpsons 8pm Emergency with Angela Griffin 9pm A League of Their Own 10pm An Idiot Abroad 11pm An Idiot Abroad 2 1am Road Wars 2am Brit Cops: Zero Tolerance 2.55am Road Wars 3.50am Brit Cops: Rapid Response 4.40am Road Wars 5.30am-6am Sell Me the Answer



21

SUDOKU

ALL STAR MR & MRS

SKY1

16

24

15

7pm Dr Oz 8pm I Didn’t Know I Was Pregnant 9pm Hospital Sydney 10pm Trauma: Life in the ER 11pm Obese and Expecting 12am Hospital Sydney 1am Trauma: Life in the ER 2am Obese and Expecting 3am I Didn’t Know I Was Pregnant 4am Deliver Me 5am-6am A Baby Story



WORDWHEEL

 

LAST ISSUE’S SOLUTIONS

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.

BBC2, 9PM Behind the scenes with British undertakers, revealing how they handle the sensitive business of caring for the living and the dead at funerals.

QUICK CROSSWORD

Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

SUDOKU

DEAD GOOD JOB

Kings 3am American Chopper: Senior Versus Junior 3.50am Wheeler Dealers 4.40am Bear Grylls: Born Survivor 5.30am-6am Destroyed in Seconds

HISTORY

7pm Great Movie Mistakes 7.05pm FILM Indiana Jones and the Kingdom of the Crystal Skull 2008. 9pm Be Your Own Boss 10pm The Revolution Will Be Televised 10.30pm Family Guy 11.15pm American Dad! 12am Be Your Own Boss 1am The Revolution Will Be Televised 1.30am Bad Education 2am Tourettes: Let Me Entertain You 2.55am-3.55am Don’t Tell the Bride

3

33

S M



ACROSS

DOWN

1 Tailed heavenly body (5) 3 Software program capable of causing great harm to a computer (5) 7 Chest bones (4) 9 Person who handles equipment for travelling entertainers (6) 10 Hindu princess (4) 11 Departed (4) 12 Sugary (5) 15 Wine and hot water drink (5) 17 Stare at lustfully (4) 19 Printed characters (4) 20 Series of arches supported by columns (6) 21 Small whirlpool (4) 22 Imposed a levy (5) 23 Beauty parlour (5)

1 Enclosure for cattle or horses (6) 2 Literary composition (5) 4 Extremely angry (5) 5 Look for (4) 6 Dish of mutton, potatoes and onions (5,4) 8 Fearless (5) 13 _ _ _ on, urged (5) 14 Put one’s faith in (4,2) 16 Clear space in an area of woodland (5) 17 Drama set to music (5) 18 Stop (4)

WEDNESDAY 12 SEPTEMBER 2012

34

SPORT Clubs rapped as Financial Fair play rules bite BY FRANK DALLERES EUROPEAN football’s regulatory chief has painted a bleak picture of clubs’ response to new Financial Fair Play (FFP) rules after 23 teams became the first to be punished under the scheme. Atletico Madrid, who last month beat Chelsea to win the European Super Cup, and Sporting Lisbon were among those to have prize money withheld by governing body Uefa for having outstanding bills. It is the first sign of Uefa acting on its president Michel Platini’s promise to usher in an era of greater financial prudence among clubs, who collectively make record losses despite record income. “I am still very worried about the current situation,” Jean-Luc Dehaene, chief investigator of Uefa’s financial control body, told a meeting of the European Club Association, which represents 207 top sides. “The Financial Fair Play regulations are known for more than two years, but I have the

CLUBS PUNISHED n FK Borac

Banja Luka n FK Sarajevo n FK Zeljeznicar n CSKA Sofia n Hajduk Split n NK Osijek n Atletico Madrid n Malaga CF n Maccabi Netanya n Shkendija 79 n Floriana FC n FK Buducnost Podgorica

n Rudar Pjevlja n Ruch Chorzow n Sporting

Lisbon

n Dinamo

Bucharest

n Rapid

Bucharest

n FC Vaslui n Rubin Kazan n FK Partizan n FK Vojvodina n Eskisehirspor n Fenerbahce

impression that some clubs still need to do their homework.” Atletico, last season’s Europa League winners, and Sporting were joined by Qatari-owned Malaga and Turkey’s Fenerbahce on the list of teams found to have overdue payments to other clubs, employees or state bodies. FFP rules will also require clubs to cap their losses at modest sums, reducing to virtually break-even, in coming seasons, with the first assessments, of the period 2011-2013, due to be carried out next term. Yet the summer transfer window saw some sides, including Champions League winners Chelsea, Paris St Germain and Zenit St Petersburg continue to spend lavishly despite the threat of bans from European competition. “ECA members unanimously endorsed the Financial Fair Play project back in 2010,” said ECA president Karl-Heinz Rummenigge, also chief executive of Bayern Munich. “However, it seems that quite a few clubs have not understood the message. Time has come to take the new rules seriously. ECA will continue to support Financial Fair Play.” Clubs that fail to meet FFP rules regarding levels of loss face suspension from the Champions League and Europa League.

cityam.com/sport

@cityam_sport

Hodgson happy with deserved point for 10 man England WORLD CUP 2014 QUALIFIER ENGLAND....................................1 UKRAINE.....................................1 BY FRANK DALLERES AT WEMBLEY STADIUM ENGLAND manager Roy Hodgson insisted a draw was the least his 10 men deserved after Chelsea midfielder Frank Lampard’s late penalty spared the home side’s blushes and maintained their unbeaten start to qualifying for the 2014 World Cup. Yevhen Konoplianka’s extraordinary first-half strike looked set to hand Ukraine a surprise win and an early advantage in Group H until substitute Danny Welbeck won an 87thminute spot-kick and Lampard converted with customary aplomb. Captain Steven Gerrard’s stoppagetime red card capped a difficult night in front of an unusually empty Wembley, albeit without a host of regular first-team players absent through injury, but Hodgson robustly defended his side’s performance. “Had we lost it would have been pretty hard justice,” said Hodgson, whose side have four points from two games ahead of next month’s doubleheader with San Marino and Poland. “I didn’t think we did that badly. We started very poorly but once we got into our stride we had quite good control of the game. We went 1-0 down to a wonder-strike and fully deserved our equaliser.”

Hodgson called Gerrard “extremely unlucky” to be sent off and defended his team’s attacking threat amid suggestions Ukraine goalkeeper Andriy Piatov had barely been exercised. “The post was made to work a few times and we scored a goal,” he added. “I think it’s a bit dangerous to analyse goal chances on whether the goalkeeper was made to work.” Hodgson’s men smothered Moldova 5-0 on Friday in their first step towards the finals in Brazil, and another win looked in prospect when Jermain Defoe lashed in an opportunistic strike from the edge of the penalty area after 10 minutes, but his effort was harshly disallowed for his supposed foul on Yarmolenko. That pain was deepened seven minutes before half-time when Dnipro winger Konoplianka, 22, drifted in from the left past Gerrard and summoned a shot of equal parts ferocity and grace that curled into the flailing Joe Hart’s top left-hand corner. Hodgson threw on Welbeck, Daniel Sturridge and Ryan Bertrand in quick succession, and it was the former who injected the requisite spark for England to conjure an equaliser three minutes from time. After volleying against the post just minutes earlier, he lured Yevgen Kacheridi into handling and Lampard thumped the penalty low and left to the relief of a meagre 68,000 crowd, although Gerrard’s injury-time second booking would ensure a onematch ban and a bittersweet end to a decidedly mixed evening.

Chelsea midfielder Frank Lampard scored England’s equaliser in the 87th minute

Joe Hart

HOW THEY RATED ENGLAND Glen Johnson

5

A threat going forward but otherwise sloppy, particularly when passing

Leighton Baines

6

Made one great clearance to deny Ukraine and was tidy, but hardly impressive

Steven Gerrard

6

Passed well and made a vital clearance but ruined it with his deserved dismissal

Jermain Defoe

6

Unlucky to have what looked a good goal disallowed but England still needed more

Phil Jagielka

5

Joleon Lescott

Like Lescott, Jagielka gave the ball away. Was Gary Cahill the better choice?

James Milner

6

Frank Lampard

6 5

Hodgson’s uninspiring substitutions failed to change an uninspiring result

7

Encouragingly always wanted the ball and scored England’s penalty

Tom Cleverley

4

Missed three good chances and was largely responsible for the poor result

Provided a good, enthusiastic option for England but is capable of more

Roy Hodgson

5

Lescott always looked uncomfortable with Ukraine’s pace and movement

Typically worked hard and almost scored but his threat was not regular enough

A Oxlade-Chamberlain

7

Hart could do little about Ukraine’s impressive goal and did little else wrong

Substitutes Danny Welbeck (Cleverley, 62) 7, big threat; Daniel Sturridge (Oxlade-Chamberlain, 69) 5, pace but no inspiration; Ryan Bertrand (Baines, 73) 5, an unnecessary change

Oman fall for Ireland Trap BY DECLAN WARRINGTON REPUBLIC of Ireland last night defeated Oman 4-1 in a friendly on an otherwise unsuccessful evening for the Home Nations. Goals from Shane Long, debutant Robbie Brady, Kevin Doyle and Alex Pearce secured victory for Giovanni Trapattoni’s experimental line up but for every way in which their fixture was a success, for Wales the evening was a disappointment. In their heaviest defeat since 1996, Chris Coleman’s side lost 6-1 away to Serbia with their solitary goal coming from Gareth Bale. Scotland and Northern Ireland, respectively at home to Macedonia and Luxembourg, both drew 1-1.

WEDNESDAY 12 SEPTEMBER 2012

cityam.com 35

Retired former light welterweight and welterweight world champion Ricky Hatton is on Friday expected to announce a return to the ring after a three-year absence

Winning the US Open is only the start – now Murray wants more Britain’s grand slam champion targets further success British No1 Andy Murray believes his US Open victory can be the catalyst for myriad Major successes and has predicted that their is more to yet come from his game. Murray yesterday became the first British male to win a grand slam title in 76 years when he beat Novak Djokovic over five sets at the Arthur Ashe Stadium but while his historical triumph followed his winning of Olympic gold, the 25-year-old is adamant that there remains more for him to achieve. “I want to keep improving,” said Murray, who had lost each of his four previous grand slam finals. “I know how it feels to win a grand slam, and winning the Olympics. I Andy Murray has won both the US Open and an Olympic gold medal in what has been the most successful period of his career to date know how hard it was losing in the Wimbledon final. You want to try to win those big matches and big shared by coach Ivan Lendl and it tournaments and I’ll keep working cannot be doubted that the latter’s hard to try to do that. appointment was a significant factor “I think I’ll get a better in the Scotsman’s success. feel when I get back Despite his earlier on the court and disappointments, Lendl start practising recovered to win eight Major again, I’ll feel what titles and believes that as THE most important topic nearly 5 hours of tennis against it’s like to have a with he, Murray’s best years surrounding his US Open one of the game’s greats in bit more belief could follow his crucial Minutes it took victory, of course, was Novak Djokovic – Murray and in myself and first victory. Mu rra y to defeat what Andy Murray his party headed to Chinese my shots. “Hopefully, we’re not Djokovic did to celebrate. restaurant Hakkasan and “I could have won anywhere near where With the city of New consumed food and drink to the Wimbledon this year, I Andy can get,” he said. “I York to explore – albeit value of $6,448 (£5,157). was very close. I know if I’m didn’t come here to have a without the Apparently content with his in that position again I’ll take the good time, I came here to help necessary energy, on-court victory, Murray resisted same chances, I’ll go for my shots Andy win. He did, so it’s having played the urge to consume alcohol and again, and a little bit more job done. drank a solitary $6 (£3.70) soda. confidence and experience of “Let’s hope And after only being asked to taking my chances in big matches he can Ivan Lendl won cover the service charge, the final will help me.” continue bill came to only $1,289 (£802). Murray’s record of losing his first and rake up eight grand slams four Major finals is one that is more.”

294

” ” ”

” ” ”

MURRAY’S MILESTONE: WHAT THEY SAID

I'm really proud for the boy. When he really needed to he showed it. It was more nerve-racking than a Premier League match.” Man Utd boss Sir Alex Ferguson

Andy truly is a Scottish sporting legend and I'm certain that more Grand Slam titles will follow.” First Minister of Scotland Alex Salmond

Karagounis signs for Fulham n FOOTBALL: Fulham have signed 35year-old Greece international midfielder Giorgos Karagounis on a free transfer until the end of the season. “I’m looking forward to working under Martin Jol and playing alongside some fantastic players,” said Karagounis, who was available after failing to sign a new contract with Panathinaikos.

Bowman to review Team GB

BY DECLAN WARRINGTON

I definitely see him going on to win more. I said the first one would be the hardest but I think it will be the first of many.” Ex-UK No1 Tim Henman

IN BRIEF

Congrats @andy_murray to achieve his first Grand Slam! He and Nole [Djokovic] played a great US Open final.” Rafael Nadal, on Twitter

I always felt he had everything and now it's really come to fruition. And stop saying he's British, he's Scottish.” Actor Sir Sean Connery

He could absolutely fly for a while and win everything in sight, but it wouldn't surprise me to see a bit of a lull.” Former coach Miles Maclagan

Scotsman celebrates Major win with soda sensation

FLASHBACK: LIFE IN 1936 Cost of living when Fred Perry won his and Britain’s last grand slam n Average house price: £550 n Loaf of bread: 7.5d n Pint of milk: 2d n Newspaper: 1d-2d

Key historic events n BBC begins

broadcasting on television from London n Jesse Owens wins four golds at the Berlin Olympics n Edward VIII abdicates after just 326 days as King n The Crystal Palace is destroyed by fire in south London n Germany breaks the

treaty of Versailles, the Spanish Civil War begins and Mussolini captures Addis Ababa

Fred Perry’s achievements n Perry (left) won the first of eight

grand slam singles titles in 1933 at the US Open n He would become the first player to complete his career grand slam by winning each major title at least once, his last coming at the US Open in 1936 n Stockport-born Perry won Wimbledon three times, successively from 1934 to 1936, and was world No1 for four consecutive years n Perry is the only grand slam winner to also win a table tennis world championship, as he did in 1929

n ATHLETICS: The former coach of Michael Phelps, Bob Bowman, is to join German Olympic medallist Thomas Lurz in conducting a review into Team GB’s disappointing swimming performance at London 2012, after they won only three medals.

Van Commenee to leave UKA

n ATHLETICS: Charles van Commenee is to step down as head coach of UK Athletics when his contract expires his December. His successor is expected to be announced tomorrow.

Bellew added to Froch undercard n BOXING: Liverpool light heavyweight Tony Bellew is to be the chief support to Carl Froch’s IBF super middleweight title defence against Yusaf Mack on 17 November.

Cavendish takes second place n CYCLING: Team Sky’s Mark Cavendish yesterday won stage three of the Tour or Britain and is now second in the overall standings.

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