Cityam 2011-06-23

TOP executives at Grupo Santander want the
bank’s UK division to go public earlier than
its London management would like, City A.M.
has learned.
Madrid and London are in disagreement
over the timing of the float, with the Group’s
leadership keen to press ahead this year and
the bank’s UK execs more inclined to wait for
better market conditions, a source familiar
with the situation has told City A.M..
Santander UK’s float, which is expected to
raise some £4bn, has been “pencilled in” for
November, but given rocky conditions in
London’s initial public offering (IPO) market,
it is understood that the bank’s UK manage-
ment is prepared to wait until 2012 to list.
However, Grupo Santander wants to see
growth from the UK business more quickly.
On Friday, group chief executive Alfredo
Saenz told shareholders: “An important prior-
ity in the UK is to carry out the IPO as
planned during the second half of 2011.”
The Group recently gave its London sub-
sidiary, which is led by new CEO Ana Botin
(pictured), a £4.5bn equity capital injection to
fund its purchase of 318 RBS branches, and it
is understood that a portion of any proceeds
from a UK float would go back to Madrid.
In presentations to investors, the group’s
senior management have also cited the
London float of Santander UK as a source of
cash that will help the bank make the transi-
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THE CITY’S biggest banks have launched a
major charm offensive in an effort to kick-
start London’s faltering market for multi-mil-
lion pound fundraisings.
Top banks have held talks with big institu-
tional investors to discuss how to improve the
way in which companies are taken public.
“Are we happy with the IPO market? Not at
all,” said Oliver Holbourn, head of the equity
capital markets syndicate at Bank of America
Merrill Lynch.
“We’ve been to speak to investors and we’ve
made constructive suggestions as to how we
can change the IPO process. Whether that
comes to anything, I don’t know,” he added.
CEASEFIRE
SANTANDER
EXECS AT
ODDS OVER
IPO TIMING
A SHARE IN
BAILED-OUT
BANKS FOR
EVERY VOTER
NICK CLEGG
BACKS PLAN
SEE PAGE 3
TOP BANKS IN BID TO REVIVE LONDON FLOATS
SPECIAL INVESTIGATION | CITY AT WAR
BY RICHARD PARTINGTON
EXCLUSIVE
▲
BY JULIET SAMUEL
EXCLUSIVE
▲
tion from Basel II capital requirements to the
more stringent Basel III regime.
But some investors regard the Group’s high
valuation expectations as unrealistic given
the state of the UK float market and the dis-
count on British banks’ share price.
One blue-chip investor in European banks
told City A.M. that Madrid could be adjusting
its expectations: “I struggle to see that they
think they can get the valuation they
thought they could get a year ago,” the
investor said.
City A.M. also understands that JP Morgan is
now a contender for the book-running syndi-
cate that will advise on the deal. Bank of
America Merrill Lynch is still considered a
front-runner to lead the float, with Credit
Suisse unlikely to secure a leading slot.
Santander declined to comment.
Certified Distribution
02/05/11 till 29/05/11 is 103,467
Sources close to several other large invest-
ment banks said all the main City banks
including Goldman Sachs, Morgan Stanley
and Barclays Capital were having similar con-
versations with the investment community.
And a big fund manager said they too were
involved in talks.
The development marks a thaw in the rela-
tionship between advisers, investors,
bookrunners and financial sponsors, which
has experienced the worst breakdown in liv-
ing memory. BofA said it suggested several
ways of reviving the IPO market, including:
greater transparency over fees – including
whether incentive fees are paid for successful
floats; starting a dialogue with companies
looking to float up to three years before they
wish to go public; and encouraging candi-
dates to appoint independent board directors
well before the IPO process begins.
Earlier this month, a special investigation
by City A.M. revealed that key players in the
IPO market were effectively at war, with IPO
advisers STJ accusing book-runners of talking
down the price of companies.
Unrest in the City was first exposed in a
scathing letter sent by BlackRock about the
state of the London IPO market. Only a hand-
ful of new company offers have got away as
planned so far this year, with the majority of
firms having to cut their price or pull their
flotation. Tracey Pierce, head of primary mar-
kets at the London Stock Exchange, said: “The
BlackRock letter and the discussion since
then has prompted a more robust debate and
brought the matter out into the open.”
Santander UK’s new
chief exec Ana Botin
is under pressure to
float the business
News
2 CITYA.M. 23 JUNE 2011
Bank hints at
more easing
DOVISH minutes from the Bank of
England’s monetary policy commit-
tee, released yesterday, appear to have
ruled out any normalisation of inter-
est rates this year.
The MPC’s minutes prompted some
banks to put back their forecasts for
monetary tightening in the UK – with
the Bank hinting that policy could be
loosened even further, with another
round of quantitative easing (QE).
Adam Posen continued to be the
sole advocate for more QE, yet there
were signs that some colleagues may
be tempted to join the American.
“For some members, it was possible
that further asset purchases might
become warranted if the downside
risks to medium-term inflation mate-
rialised,” the minutes said.
“The minutes suggest that [eco-
nomic] uncertainty is likely to keep
the MPC on hold well beyond
August,” said Nomura, in a note. “We
now expect the first rate hike in
February 2012.”
“We have scaled back our forecasts
for tightening by the ECB and the
UK’s MPC,” echoed Citi, last night.
New member Ben Broadbent, for-
merly of Goldman Sachs, joined
seven of the committee voting for no
change. Following Andrew Sentance’s
departure, only two of the committee
are now voting for higher rates.
BY JULIAN HARRIS
UK ECONOMY
▲
Why interest rates won’t be going up
IF you owe a lot of money to your
bank, it’s time to rejoice. There is now
almost no chance of interest rates
going up this year. The Bank of
England’s monetary policy committee
voted 7-2 to keep rates on hold; and
given the arguments and worries
about growth expressed by the major-
ity of the members it would be foolish
to bet on a rate rise any time soon.
Even another bout of quantitative eas-
ing is no longer out of the question
any more. Savers will continue to be
hammered; those with large mort-
gages will continue to see the value of
their debt eroded as the pound’s pur-
chasing power keeps dropping.
It is fair to assume that prices will
rise by 5-6 per cent this year: for some-
one with a £200,000 mortgage, that is
equivalent to a gift of £10,000-£12,000.
Someone with a £400,000 mortgage
will see the value of their debt fall by
£20-£24,000 in real terms. If on top of
all of that the homeowner happens to
have a tracker mortgage handed out
during the bubble days with a very
low rate of interest, the windfall will
be massive. People with big mortgages
and low interest rates are gaining
immensely, at least if they are pre-
pared to weather the downturn in
house prices; people facing ever-high-
er rents are being hammered.
Savers are even bigger losers and are
directly paying for the gains being
made by those with large debts.
Interest rates on savings products are
miserably small and capital is being
depleted. As ever, inflation is transfer-
ring wealth from those with savings
to those with debt. The poor and those
on fixed incomes are being hit the
hardest and retail sales are under
intense pressure.
So how come the Bank is tolerating
so much inflation? One reason is that
the money supply is growing very
slowly. But as Simon Ward of
Henderson points out, the Bank is
underestimating the increase in the
rate at which money is circulating
around the economy (its “velocity”).
Such a shift always happens when real
interest rates become negative.
There is another, more important
reason. The Bank’s monetary policy
objective is to deliver “price stability” –
or more accurately, lowish consumer
price inflation – and, subject to that,
to support the government’s econom-
ic objectives including those for
growth and employment (these
include “to achieve strong, sustainable
and balanced growth that is more
evenly shared across the country and
between industries”). The inflation
target is two per cent on the CPI meas-
ure; the Bank is allowed to overshoot
or undershoot by one per cent. The
Bank, unlike the Fed, is meant to focus
exclusively on inflation. But the pure-
ness of its mission is limited by a key
sentence: “The MPC’s aim is to set
interest rates so that inflation can be
brought back to target within a rea-
sonable time period without creating
undue instability in the economy.”
The reason why large hikes in rates are
not now being introduced is that this,
the Bank claims, would create too
much instability or volatility in out-
put, as Sir Mervyn King called it. The
trouble with invoking this get-out
clause is that virtually all deviations
from the inflation target can be
ignored. This is especially risky given
that the UK is now in a very different
place intellectually to other countries:
we are the only major economy to be
so relaxed about rocketing inflation.
Sometimes, splendid isolation can be
a good thing – but when it comes to
inflation, it is very dangerous indeed.
[email protected]
Follow me on Twitter: @allisterheath
AMERICA’S economy will grow by 2.7
per cent this year, the Federal Reserve
announced last night, revising down
its previous forecast of 2.9 per cent.
Yet despite admitting to a confus-
ingly gloomy economic outlook,
chairman Ben Bernanke yet again
refused to suggest that the Fed would
embark on a controversial third pro-
gramme of quantitative easing (QE3).
“In August of last year when I
began to talk about asset purchases,
inflation was very low and falling,”
Bernanke said.
While some analysts have cited
subsequently rising US inflation as a
threat to the economy, Bernanke
credited the existing quantitative eas-
ing programmes as: “Very successful
in eliminating deflation risks.”
On growth, Bernanke said: “We
don’t have a precise read on why this
slower pace of growth is persisting.”
Growth will nonetheless pick up later
in the year, the Fed expects.
BY JULIAN HARRIS
US ECONOMY
▲
US growth revised down
US banking technology group FIS
Global has been named as the mys-
tery bidder for software firm Misys.
FIS, an S&P 500 component, has
lined up BofA Merrill Lynch and
Deutsche Bank to advise on its
advances for the FTSE 250-listed firm.
Misys revealed takeover talks earli-
er in the week following reports of a
bid, but has so far refused to name
the company expressing an interest
even to the Takeover Panel, which
listed the suitor as “no named offer-
or” yesterday afternoon. Misys is
thought to have taken on Barclays
Capital and JP Morgan to advise.
Talks between the firms could pro-
duce an offer within a month, the
Financial Times reports today. Misys
and FIS Global did not return calls for
comment last night.
Mystery Misys
bidder named
as FIS Global
Federal Reserve chairman Ben Bernanke seemed to rule out QE3
M&A
▲
EDITOR’S LETTER
ALLISTER HEATH
7
th
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Email: [email protected] www.cityam.com
Editorial
Editor Allister Heath
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News Editor David Crow
Night Editor Katie Hope
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Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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Ben Broadbent voted
for no change in Bank
rate during his debut
on the monetary policy
committee
BA CABIN CREW VOTE FOR PEACE DEAL
British Airways cabin crew have voted
overwhelmingly to accept a peace
deal, ending 18 months of conflict in
one of the most bitter recent industri-
al disputes. Unite said members voted
92 per cent in favour of what it
described as an “honourable settle-
ment’’, with eight per cent against, in
a turnout of 72 per cent. Almost
10,000 were balloted by the union,
which declared the dispute formally
over. Unite recommended the agree-
ment, which will see travel conces-
sions returned to crew from whom
they were removed when they went
on strike last year.
ELECTRIC CARMAKER THINK FILES
FOR BANKRUPTCY
Think Global, the Norwegian electric
car producer that styled itself as a pio-
neer of battery-powered driving, filed
for bankruptcy on Wednesday after
failing to find long-term financing for
its business. Ener1, the US lithium-
ion battery producer which led a cap-
ital increase of Think last year, said
that it planned to take a charge on its
earnings worth about $35m relating
to loans receivable from the company.
POLISH TYCOON IN EXCLUSIVE TALKS
TO BUY POLKOMTEL
Zygmunt Solorz-Zak, a Polish media
tycoon, has entered exclusive talks to
negotiate the purchase of Polkomtel,
Poland’s second largest mobile phone
operator. The tycoon will try to
finalise the acquisition with
Polkomtel’s shareholders after lodg-
ing an 18bn zloty ($6.5bn) bid for the
mobile operator, said people familiar
with the situation yesterday. Mr
Solorz-Zak’s bid was the highest of
three offers, added these people.
Apax, the private equity firm, made a
bid of $6bn for Polkomtel, and
Telenor also submitted an offer. Mr
Solorz-Zak, Apax and Telenor
declined to comment.
WETHERSPOONS RIVAL CREATED BY
PUBS MERGER
Two of Britain’s biggest high street
pub companies are merging to create
a rival to JD Wetherspoon with 560
pubs and a turnover of almost
£500m. Stonegate Pub Company, cre-
ated last year following the purchase
of 333 pubs from Mitchells & Butlers
for £373m, is swallowing Town & City
Pub Company, which runs 227 pubs
under brands including Yates’s and
Slug and Lettuce.
SMALL FIRMS FEAR FOR THEIR OVER-
DRAFTS
Large numbers of small businesses
are afraid of asking for credit because
they fear their banks will react by
slashing their overdrafts and putting
up interest rates on existing facilities,
a report from the Bank of England
said. Many are so wary that they are
turning to alternative finance.
SIX IN 10 CHOOSE FIXED RATE ENERGY
TARIFFS
Almost six in 10 people who switch to
a new energy deal are choosing a
fixed-rate deal as fears mount of fur-
ther price rises, research shows. The
average variable-rate dual fuel energy
bill is now £1,131, uSwitch said, with
the average fixed-rate deal costing
£1,089. But this small saving could
rise if prices increased substantially. If
suppliers raised prices by 10 per cent
the average standard plan customer
would see their bills rise to £1,244.
CITY DWELLERS ARE MORE LIKELY TO
SUFFER STRESS
City dwellers are more likely to suffer
stress and anxiety than people who
live in the countryside because their
brains are wired differently, scientists
claim. The findings are the first to
show how specific brain structures
are affected by urban life.
DRAGHI'S APPOINTMENT TO ECB MAY
BE DELAYED
An impasse between France and Italy
over a seat on the European Central
Bank’s governing board threatens to
delay this week's expected appoint-
ment of Italian Mario Draghi as the
ECB's next bank president, according
to French government officials.
France is wholeheartedly backing
Draghi as the new ECB chief, they
said, but wants the board seat cur-
rently occupied by Italian Lorenzo
Bini Smaghi to be ceded to a French
official once Draghi takes over.
OVERSEAS FIRMS RAMP UP HIRING IN
SILICON VALLEY
Foreign companies are on a hiring
spree in Silicon Valley, enlisting engi-
neering teams to help design cutting-
edge technology. Companies from
Europe and Asia increasingly are
using high-tech teams in the Bay Area.
WHAT THE OTHER PAPERS SAY THIS MORNING
DEPUTY Prime Minister Nick Clegg
has given his backing to a scheme that
would see Lloyds and RBS re-privatised
by handing their shares to taxpayers.
Speaking during a trade mission to
Rio de Janeiro, Clegg said that doling
out the shares to the public would
help to placate anger about bank
bailouts.
“It is psychologically immensely
important that the British public feel
they have not just been overlooked
and ignored,” he said. “Their money
has been used to the tune of billions
and billions and billions to keep the
British banking system on a life-sup-
port system.”
Clegg says he has written to the
Treasury to support the plan to hand
its 83 per cent stake in RBS and its 41
per cent stake in Lloyds to taxpayers,
who would pay back a “floor price”
once they sold the shares on.
The floor price would be set at a
break-even level to ensure that the
state was not left more indebted after
using £66bn to bail out the banks dur-
ing the crisis. Any profits from selling
the shares would go to taxpayers.
Clegg’s support raises the profile of
the plan and could put pressure on
the Treasury to seriously consider it.
Although it is understood that the
Treasury has given positive feedback
on the plan, it could prove reluctant to
follow through on it because it would
force the government to give up any
potential profits on its rescue of the
banks.
The scheme was put together by
Portman Capital on the back of a
speech by Lord Saatchi, chair of the
Centre for Policy Studies.
Michael O’Connor, a partner at
Portman Capital who worked out the
details of the plan, says that one of its
main benefits is that it rids the shares
of their “structural overhang”, which
depresses their price every time there
is a rumour that the government
could be preparing to sell a tranche of
its holdings. He claims it could be exe-
cuted for a cost of £250m.
Clegg calls for
bank shares
for taxpayers
THE LONDON Stock Exchange and
Toronto bourse operator TMX Group
have agreed to pay a special dividend
of C$660m (£415.8m), in the latest
scramble to win over shareholders.
TMX shareholders must decide
next week whether to back the friend-
ly deal between the two exchanges
and a hostile bid from the Maple con-
sortium of Canadian banks and pen-
sion funds. LSE shareholders must
also vote on the planned merger.
Under the plans revealed last night,
LSE shareholders will get an 84.1p per
share special dividend payment from
the combined company, should the
deal tie-up. TMX shareholders would
get a one-off payment of C$4 a share.
About 45 per cent of the payment
would go to TMX shareholders, with
LSE shareholders getting the rest.
The LSE and TMX said it had
financed the sweetener using cash
reserves and debt. The LSE added it
had agreed additional funding com-
mitments with Barclays Capital and
Morgan Stanley for £100m of short-
term headroom facilities.
TMX again rebuked the hostile
offer from Maple last night, saying
the group had failed to provide any
more proof its offer would lead to a
superior price.
LSE and TMX
sweeten deal
for merger
BY JULIET SAMUEL
POLITICS
▲
BY RICHARD PARTINGTON
FINANCIAL MARKETS
▲
News
3 CITYA.M. 23 JUNE 2011
BRUSHING aside the current fragility
of London’s IPO market, the African
explorer Ophir Energy yesterday set-
tled on a price range that will value
the group at around $925m-$1.05bn
(£575m-£650m) before new money.
The group decided to offer
investors shares at a price range of
between 250-280p after a board meet-
ing last night. Ophir is backed by
Lakshmi Mittal, Och Ziff and Artemis.
Advisers, led by JP Morgan, Credit
Suisse and RBC are believed to be
comfortable with the price range
after meeting investors and believe
there is significant interest in the
shares.
Brazilian oil giant Petrobras recent-
ly signed an accord to acquire 50 per
cent of the rights held by Ophir at
two exploration blocks offshore
Gabon. Orphir also has acreage in
Tanzania.
Ophir advisers settle on
price range for flotation
Lakshmi Mittal, one of the backers of Ophir Energy
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EXCLUSIVE
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EUROZONE governments have kicked
off a series of meetings with their
banks to persuade them to voluntarily
roll over their Greek debt and buy
more time for the stricken sovereign.
But German chancellor Angela
Merkel has also warned voters and
opposition parties that there is a limit
to private sector burden-sharing. She
said yesterday that too harsh a haircut
for bondholders could “spark conta-
gion in Europe that I don’t want to be
responsible for”.
Despite Merkel’s attempt to play
down expectations, however, the
region’s governments have begun the
process of securing support from pri-
vate investors in Greek debt in a des-
perate bid to avoid a “credit event”, or
default.
Ratings agencies have warned that
any deal with bondholders would be
considered a default if it has insuffi-
ciently favourable terms or if it is not
wholly voluntary.
That could make it difficult for the
ECB to accept Greek debt as collateral
in return for emergency loans, effec-
tively freezing Athens’ banks out of
the liquidity support on which they
rely.
The EU now has until July to put
together a second bailout deal, with
officials setting a deadline of a 11 July
summit for a new bailout package.
However, past deadlines have come
and gone without an agreement. Most
estimates put the cost of the deal
around €110bn (£98.3bn), the same as
Greece’s first rescue last year.
The scramble to bring banks on
board comes as Barclays Capital sent a
note to investors estimating that most
of Greece’s sovereign debt is now
owned either by governmental bodies
or by Greek banks.
The proportion of Greek debt
owned by its national banks, fellow
Eurozone governments, the ECB and
the IMF has been rising as private debt
matures. That will make it easier to
secure a voluntary rollover deal, since
Greek banks and the EU have the most
to lose from a default.
EU asks banks
to share the
Greek burden
THE head of Pimco, the world’s
biggest bond fund, predicted that
Greece and other European
economies would default on their
debts to resolve their problems as the
euro area deals with its debt crisis.
Greece’s government won a vote of
confidence late on Tuesday, a crucial
step towards securing further short-
term and longer-term financial aid
from the European Union and the
IMF as the country tries to avoid the
Eurozone’s first sovereign debt
default.
“For the next three years, we’re
going to see different economies
work out different problems. For
European economies, especially
Greece, it would be through default,”
Mohamed El-Erian, chief executive of
Pimco, said.
He didn’t identify which economies
other than Greece he was referring to.
El-Erian has suggested in the past
that Greece would default and that
Europe risks wasting money for noth-
ing by pumping billions of dollars
into the ailing economy.
“Nothing has been done to
enhance growth,” he said. “No single
[Greek] indicator has shown strength.
[European leaders] are afraid a
restructuring would hurt European
banks.”
ALLIED Irish Banks will halt an inter-
est payment of £22m due on a junior
bond at the centre of a legal challenge
until Ireland’s High Court rules on the
case, the lender said yesterday.
New York-based investment firm
Aurelius Capital is challenging the
Irish government’s move to impose
losses on junior bondholders in AIB
and cut the cost to the taxpayer of bail-
ing out what was once Ireland’s largest
listed lender.
Ireland’s government, which effec-
tively nationalised AIB late last year in
the face of mounting property losses,
has so far squeezed €1.6bn out of
investors holding AIB’s junior paper.
Using a sweeping new financial law,
Dublin offered junior bondholders the
choice of either accepting as little as 10
per cent of the face value of their
investments or else seeing their hold-
ings effectively wiped out.
Pimco: Greece
and others will
default on debt
AIB calls a halt to bond
payout due to court case
BY JULIET SAMUEL
EUROZONE
▲
EUROZONE CRISIS
▲
News
4 CITYA.M. 23 JUNE 2011
BY HARRY BANKS
EUROZONE
▲
GREEK BUDGET DEBATE BEGINS
After winning a
no-confidence
vote in
parliament on
Tuesday night,
Greek Prime
Minister George
Papandreou
(right) and new
finance minister
Evangelos
Venizelos have
begun the hard
work of shoring
up their party’s
support for a raft
of unpopular aus-
terity measures.
Picture: GETTY
NEW8 FROM THE
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ADVERT¡8EMENT
Lord Mayor Michael Bear
leads a City delegation to
Moscow and St Petersburg
from 26 June to 1 July to share
expertise in PPP projects and
promote London as the first
choice for Russian firms to list
in order to raise capital.
Russia visit for Lord
Mayor
The City's fantastic Festivall
ver 160 'must-
see' events
feature in the City
of London Festival,
including music from the
English Chamber
Orchestra, guitarist John
Williams and the popular
street pianos. The
Festival, backed by the
City Corporation, runs 26
June-12 August. Details
from www.coIf.org
Join a free lunchtime workshop
at Bunhill Fields, the City's
ancient burial ground off City
Road EC2, 27 June-1 July.
Topics include Tai Chi, Reiki,
massage, yoga and bike
repairs. More details from
www.cityofIondon.gov.uk/
urbangardens
The Barbican's Pit Theatre is transformed into a bedroom for
, which opens tomorrow. Songs and bedtime stories send
audience members to sleep and are woken up to breakfast in the
morning. More details from www.barbican.org.uk
Tai Chi and bike
repairs at Bunhill
Bedtime at the Barbican
O
News
5 CITYA.M. 23 JUNE 2011
NEWS | IN BRIEF
Almacantar founder steps down
The property investment and develop-
ment company Almacantar has had a
boardroom reshuffle after co-founder
Neil Jones left the firm. Jones the former
head of Grosvenor’s European business,
said he was leaving the company that he
helped create two years ago with Mike
Hussey to pursue other opportunities. He
will continue to hold a shareholding and
remain on the board as a non-exec.
RWE rails against nuclear tax
Germany’s largest power producer RWE
filed a lawsuit against the German govern-
ment over its nuclear fuel tax, it said yes-
terday. RWE said it had filed a complaint at
the tax court in Munich, regarding a tax
imposed on its nuclear reactor in south
Germany. The complaint related to a
change in fuel rods at one of its reactors
which make the plant accountable to a
new levy imposed at the end of last year.
We should take advantage of weak Eurocracy
S
O THAT’S all decided then.
Greece should definitely leave
the Euro. But there is one hole
in the debate. Greece leaving
the euro might save both Greece and
the euro; it might not just be desir-
able, but also inevitable.
Unfortunately, it is also impossible.
Many people, including myself, pre-
dicted even before it was launched
that the single currency’s internal
tensions could lead to it fracturing.
But this outcome was inconceivable
to the officials and politicians con-
structing Europe’s grandest project,
and so they didn’t build an exit door.
As William Hague, then
Conservative leader, memorably put
it in 1999, “the single currency is irre-
versible. One could find oneself
trapped in the economic equivalent
of a burning building with no exits.”
Hague was derided for predicting
that the Euro could “lead to huge
booms and deep recessions” and a
“full blown banking and financial cri-
sis”, but he is being proved spot on.
The problem is that there is no pro-
vision in the treaties for Greece to
leave the euro. There is no legal way
for Greece to bring back the drachma
- it could only do so by ripping up its
treaty obligations; or renegotiating
the treaties with all other EU coun-
tries. Even the mighty European
Court of Justice, which bends sover-
eign governments to its will, has no
chance of overruling the economic
and political chaos in Greece.
You see, this is not just an econom-
ic crisis, but also a potential constitu-
tional one. Of course, no country
would want to stand in the way of the
inevitable, but it raises lots of issues.
One might even say, opportunities.
You wouldn’t want to waste a good
constitutional crisis.
If Greece wants to renegotiate its
treaty obligations to return interest
rate setting powers to Athens, why
shouldn’t other countries such as
Britain throw in their demands? We
can make the whole process easier,
but what do we want in return? We
might think it is not cricket, but then
Brussels isn’t cricket – it is horse trad-
ing. The best time to get concessions
from people is at their moment of
weakness, and the Eurocracy is weak-
ened by this crisis. After all, they used
the financial crisis to move control of
UK financial services regulation from
London to Brussels. A Greek default
would also set an interesting prece-
dent that countries can, under cer-
tain circumstances, decide to return
powers to themselves. Under what
other circumstances could that be
made to happen?
This is the sort of war-gaming and
scenario-testing that French diplo-
mats are past masters at, which is
why they so often get their way. It is
time that we played them at their
own game – and started thinking a
few more moves ahead.
Anthony Browne is a board member of The
CityUK
THURSDAY VIEW
ANTHONY BROWNE
News
6 CITYA.M. 23 JUNE 2011
VINCE Cable, the business secretary,
could force firms to change the way
they disclose how much their top
executives earn as part of plans to
overhaul the rules governing annual
reports.
In a statement, Cable’s Business
Innovation and Skills (BIS) depart-
ment said he wanted to “see progress
in bringing excessive, unjustified
pay under control”.
Next month, BIS will
launch a consultation on
changes to annual reports
that will propose tougher
rules on the disclosure of
executive pay and its
link to a company’s
performance.
An aide to Cable
said he wanted
annual reports to
be simpler and
more concise,
with details of
executive pay printed alongside infor-
mation on whether management has
met targets.
A consultation into company
reporting was first mooted in the gov-
ernment’s growth plan last year,
although there was no mention of
executive pay.
Cable also announced that
Professor John Kay, the economist,
would be chairing a review into
Britain’s equity markets in a bid to
end what he said was the City’s
“quick buck mentality”.
Equity investment needed to be
“recalibrated” to support the long-
term interest of companies and
underlying beneficiaries, such as
pension fund members, he said.
“There are a lot of
issues raised and we
can’t ignore them
because Britain needs
long-term invest-
ment,” Cable told
the Association of
British Insurers con-
ference in London.
Cable plans to
shake up exec
pay disclosure
TWO banks are being investigated for
lax money-laundering controls and
others are likely to be handling the
proceeds of corruption and other
financial crime, Britain’s financial
watchdog said yesterday.
The FSA said the two institutions,
both believed to be private banks, had
shown “serious weaknesses” in how
they managed “high-risk” customers,
including those whose public status
made them vulnerable to corruption.
In a damning report, the FSA said
some banks appeared unwilling to
turn away or exit very profitable busi-
ness relationships, even when there
appeared to be an unacceptable risk
of handling the proceeds of crime.
It said it is now considering
whether it is appropriate to take fur-
ther regulatory action against other
banks.
The FSA said: “Around a third of
banks, including the private banking
arms of some major banking groups,
appeared willing to accept very high
levels of money-laundering risk if the
immediate reputational and regulato-
ry risk was acceptable.”
More than half of banks visited by
the FSA failed to have the requisite
due diligence measures in “higher-
risk” situations, and failed to identify
or record negative information about
customers.
Two banks hit
by FSA money
laundering probe
BY DAVID CROW
POLITICS
▲
IAIN Duncan Smith, the welfare sec-
retary, has been warned he could
miss ambitious targets for slashing
Britain’s benefits bill.
The National Audit Office (NAO)
said the Department of Work and
Pensions (DWP) would need to make
“rapid progress” if it is to cut its over-
all spending by almost £20bn over
the next four years.
If the DWP – the Whitehall depart-
ment with the biggest budget – fails
to cut spending by as much as
planned it could throw the coali-
tion’s deficit reduction plan off
course.
The NAO said the department did
not have a clear plan beyond 2011-12
for reducing spending and warned
there was a “risk of not achieving
substantial savings”.
The DWP must cut its own run-
ning costs by £2.7bn and the cost of
benefits and pensions by £27bn by
2014-15.
Britain could struggle to
cut benefits bill, says NAO
Ian Duncan Smith must cut nearly £30bn from his budget by 2014-15
BY DAVID CROW
POLITICS
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BRITAIN’S six largest utilities face
tough retail power market reforms
next year that could force them to
auction off more than one fifth of
electricity they produce, energy reg-
ulator Ofgem announced yesterday.
The regulator proposed in March
that it could impose power produc-
tion auctions of up to twenty per-
cent of generation on the Big Six
utilities -- Scottish and Southern
Energy, Centrica, Iberdrola’s,
Scottish Power, RWE npower, EDF
Energy and E.ON UK.
But Ofgem’s three-month consul-
tation showed some respondents,
especially smaller power suppliers
such as First Utility, favour full pro-
duction auctions to prevent large
utilities from supplying and produc-
ing power at the same time.
“Some people think the figure
should be higher so we’re undertak-
ing further analysis and will come
up with an impact analysis later this
year. It’s important to us that the vol-
ume is efficient enough to have an
impact on liquidity,” a spokesperson
for Ofgem said.
The reforms are expected to come
into force next year, but exact timing
depends on whether the utilities
will refer proposals to the
Competition Commission.
Ofgem said suppliers were cooper-
ating well and that it was unlikely
any of them would be referred to the
Competition Commission, but added
they still risk referral if they fail to
comply with reforms at a later stage.
Big six energy
utilities hit by
Ofgem threat
CULTURE secretary Jeremy Hunt is
likely to rubber stamp News Corp’s bid
for BSkyB within a fortnight.
He is expected to trigger a final
seven day period of consultation after
receiving documents from Ofcom out-
lining a series of guarantees over the
future financial and editorial inde-
pendence of Sky News.
Hunt will be unable to issue a deci-
sion before next week as he is on an
official visit to Brazil with deputy
prime minister Nick Clegg.
Hunt has previously signalled he is
likely to accept the terms of the bid
after News Corp addressed concerns
over media plurality. It has agreed to
“hive off” the loss-making Sky News,
putting in place an independent chair-
man and guaranteeing it a minimum
level of funding.
Ofcom told City A.M. it has delivered
the document but would not confirm
whether it believes the plurality con-
cerns have been fully addressed.
Last summer Murdoch bid 700p a
share for BSkyB, which was rejected by
the board, who signalled they were
holding out for 800p.
The two agreed to address regulato-
ry concerns before continuing negotia-
tions. Sky has performed strongly in
the meantime, with some investors
now calling for 950p a share.
A FRESH row broke out between the
firms involved in last year’s Gulf of
Mexico oil spill yesterday after oil
driller Transocean published its inter-
nal review of the blast, which killed 11
workers, and pinned the blame on BP.
Transocean said yesterday that BP
failed to properly judge the risks on
board the rig, having earlier failed to
conduct safety tests.
BP, which employed Transocean to
manage the well, last night slammed
the firm for “cherry-picking the facts
in support of its litigation strategy”.
“Unlike BP, which has stepped up to
its responsibilities and cooperated
with all official investigations regard-
ing the accident, Transocean contin-
ues to take every opportunity to avoid
its responsibilities,” BP said.
The firms are squabbling over
where the liability should lie, along
with the $41bn cost of the clean-up.
News Corp’s
bid for Sky to
get clearance
BP and Transocean play
blame game over oil spill
BP chief executive Bob Dudley is talking tough on Transcocean’s report Picture: REX
BY HARRY BANKS
ENERGY
▲
MEDIA
▲
News
8 CITYA.M. 23 JUNE 2011
BY MARION DAKERS
ENERGY
▲
ANALYSIS l Scottish & Southern Energy
p
28Mar 15Apr 11 May 1 Jun 21 Jun
1450
1400
1350
1300
1250
1200
1150
1385.00
22 Jun
Retail
10 CITYA.M. 23 JUNE 2011
ELECTRICALS retailer Kesa yesterday
admitted that it was weighing up a
sale of its Comet business and
revealed that it had already received
a number of approaches.
The company said there would be
a “strategic review” which would
take at least three months and look
at a range of options for Comet,
including disposal.
Stressing that it considered the
Comet brand valuable, it ruled out
shutting up shop completely despite
another poor sales performance.
Sales for the year fell 6.8 per cent –
a full-year loss of £8.9m in the 12
months to 30 April, compared with
a profit of £11.5m a year previously.
In the final 16 weeks of its finan-
cial year, Comet saw like-for-like
sales fall 15.2 per cent year-on-year.
That was up against tough com-
paratives as the World Cup fueled
TV sales last year.
Kesa, which also owns the French
Darty brand, saw total sales rise by
2.2 per cent while pre-tax profit
dived by 22 per cent.
Kesa chairman David Newlands
said: “We have had some expressions
of interest in Comet.”
He refused to confirm the num-
ber of approaches only saying there
were “less than ten”.
Analysts are speculating that US
electricals giant Best Buy, which
already has a foothold in the UK, is a
prime candidate.
Best Buy was also tipped to be
interested in struggling Dixons,
whose results are out today.
Underperforming Comet stores
have been earmarked for closure
while the product ranges and space
allocated to specific goods are being
revamped. Newlands said he did not
expect Comet to go into profit in the
next year but said he would be “dis-
appointed” if it did not return to the
black some time after that.
He said that the strategic review
of the business had not been trig-
gered by activist shareholder Knight
Vinke, who is reportedly in favour of
a sale. The company said the UK
market was tough as consumers
lacked the spending power for so-
called big ticket items like washing
machines and TVs.
Chief executive Thierry Falque-
Pierrotin said the number of cus-
tomers visiting Comet stores was
dropping, but that more were buy-
ing online. “Overall we remained
ahead of our markets, successfully
grew our profitable web sales,
improved the results of Darty France
and have taken actions to improve
our performance at the other busi-
nesses,” he said.
Kesa weighs Comet
sell-off as sales fall
BY JOHN DUNNE
RETAIL
▲
ANALYSIS l Kesa Electricals
p
28Mar 15Apr 11 May 1 Jun 21 J
160
150
140
130
120
110
100
134.00
22 Jun
Kesa chief executive Thierry Falque-Pierrotin is mulling the disposal of high street electricals chain Comet
£8.9m
Comet’s loss in the
year to 30 April
Comet sales fell
6.8 per cent to
£1.54bn
249
the number of UK
Comet stores
15.2%
Comet’s like-for like
plunge in sales in the
final 16 weeks of the
financial year
TESCO said yesterday it planned to double
returns from its central and eastern
European business by buying more goods
regionally, opening a variety of stores and
selling more services.
At its annual results in April, the British
supermarket group set a target to boost
company-wide returns to 14.6 per cent by
2014-15 from 12.9 per cent in 2010-11, and
the firm offered more details yesterday.
It aims to double returns in central and
eastern Europe, where it operates in the
Czech Republic, Hungary, Poland, Slovakia
and Turkey, to 10 per cent over the same
time frame.
The world’s third largest retailer told
analysts and investors on a trip to the
region that the growth will be driven in
part by a revamp of its hypermarkets,
which includes adding over 5,500 new
lines and upgrading fresh service counters.
“Central Europe is a good indication of
Tesco’s wider Group strategy,” said Credit
Suisse analyst Andrew Kasoulis in a
research note. “Central Europe is begin-
ning to develop as a whole unit rather than
five independent countries.”
Tesco lays out
plans to revamp
Europe business
BY HARRY BANKS
RETAIL
▲
Retail
11 CITYA.M. 23 JUNE 2011
H&M PROFIT HIT BY RISING COSTS
HENNES & Mauritz, the world’s second-largest fashion retailer, posted an 18
per cent fall in second-quarter pre-tax profit yesterday, showing the impact
of higher cotton prices, rising wages in Asia and a strong Swedish crown.
Profit fell to 5.75bn crowns (£558m) from 7.04bn a year earlier. H&M said it
had kept product prices down in developed markets despite the rising costs.
Electrical retailers face bleak future
LOCATING the source of Kesa’s
woes is fraught with difficulty,
but its problems aren’t particular-
ly new.
Electrical retailers have been
trading on wafer-thin margins for
many years now, a fact that was
disguised by the boom years
when the property bubble meant
TVs and white goods sold by the
lorry load.
When the crisis hit, the likes of
Comet and Dixons, owned by
DSG, suffered along with other
retailers, but they were offered a
short-term reprieve by the World
Cup and changes in the VAT rate,
which prompted customers to
bring purchases of big-ticket
items forward.
Now, however, a combination
of factors have conspired to make
life almost impossible for electri-
cal retailers.
First, more competition. Best
Buy, the recent joint venture
between Carphone Warehouse
and the eponymous US firm, has
opened 10 UK stores while Tesco,
along with other supermarkets, is
also selling more electrical goods.
They too have suffered in recent
months, although they are well-
diversified enough to soak up the
pain.
Then there is the biggest
squeeze on real incomes since the
1930s: meals out and big-ticket
items like TVs are the first to go.
And of course there are the
online players like Amazon,
which is famously secretive about
how much kit it sells in the UK
(although we can be sure it is a lot
and growing).
Less remarked upon is a shift in
consumer behaviour. Those who
do have the disposable income
aren’t buying flat-screen TVs, but
iPhones, iPads and netbooks.
Because most of these con-
sumers already know what they
want, they don’t need to browse
in a high street store. Instead,
they’re obsessed with getting the
best price – and they certainly
won’t find it in a branch of
Comet.
BOTTOMLINE
Analysis by David Crow
UBS BRINGS
OUT IPADS
TO SECURE
€7BN FLOAT
IT IS bigger than Glencore and the largest
lottery IPO in history. So it is little wonder
the global investment banks are pulling
out all the stops to be appointed as advis-
ers on the multibillion-euro float of the
Spanish national lottery.
The Spanish government hopes to raise
between €6.5bn and €7.5bn by issuing 30
per cent of the state-owned Loterias y
Apuestas del Estado, and “anyone who is
anyone” in investment banking flew to
Madrid last week to pitch for the lucrative
business. “It is a gem,” said one observer.
“It is the float everyone wants to be on.”
Leading the pack of the 20 to 25
investment banks understood to have
pitched for the lottery business was
UBS, led by head of equity capital mar-
kets EMEA Peter Guenthardt, which
gave its presentation to the Loterias
executives on iPads – apparently so the
bank could include video footage of its
group chief executive Oswald Grubel.
“I guess they want to stand out, but it is
a slightly strange way to do business,” said
a banking source on the Swiss firm’s
attempts to “jazz up” its presentation, in a
departure from the customary A4 pitch
books favoured by investment banks.
event at the Soho hotel as part of her role
as a mentor to the Avon representatives.
Moving on to goals of another kind,
the West Ham vice-chairman had to
make an early exit to make it to the
club’s East London home in time for the
press conference to unveil new manager
Sam Allardyce with West Ham’s co-own-
ers David Gold and David Collins.
POINT OF DIFFERENCE
MEANWHILE, nine-times Wimbledon
champion Martina Navratilova (above
with SJ Berwin partners Cameron Firth
and Rob Day), came to breakfast at SJ
Berwin to explain why diversity is a “busi-
ness necessity”.
“When I retired from being a tennis
champion, I retired from tennis, but I did-
n’t – and never will – retire from being a
champion of human rights,” Navratilova
told 100 of the law firm’s clients in her
account of the discrimination and oppres-
sion she has faced. “Retirement would
mean settling for what we have now and
that is not enough for me.”
Obviously, all the iPads were collected
at the end of the presentation, as to leave
them as a memento for the lottery execu-
tives would be “very inappropriate”, as a
UBS spokesperson made extremely clear
to The Capitalist. It will be interesting to see
if rival banks follow suit in this new iPad
craze if UBS is among the successful advis-
ers announced next week…
ANGEL INVESTOR
LORD Stanley Fink is putting his hedge
fund fortune to good use by backing
young entrepreneurs as an angel investor,
and the former Man Group chief execu-
tive is receiving so many proposals that
Fink now has a team of people filtering
through the requests.
So here’s a tip for young entrepreneurs
hoping to secure backing from the softly
spoken hedge fund tycoon: make sure
your business is about more than just
making money, as Fink is keen on busi-
nesses that have a social impact or con-
tribute to the green agenda.
Fink gave his advice as a presenter at
a seminar organised by Entrepreneurs
World, where Edward Wray spoke
about his “journey” co-founding
BetFair. “Always raise more money
than you need to cover unforeseen cir-
cumstances,” warned Wray.
GAME OF TWO HALVES
THERE was no time to hang around when
Karren Brady (right) led a networking
Jackpot: The race is on as global banks look to cash in on the multibillion-euro Spanish lottery float
UBS pitched
to Loterias
executives on
iPads in a bid
to be named
as advisers
on the largest
lottery IPO in
history
The Capitalist
12
EDITED BY
HARRIET DENNYS
Got A Story? Email
[email protected]
Follow The Capitalist
on Twitter: @citycapitalist
CITYA.M. 23 JUNE 2011
Navratilova with SJ Berwin’s Firth (left) and Day
JOB opportunities are opening up in
London as the capital’s firms shrug
off any effects from planned govern-
ment spending cuts.
Over half of London’s businesses
(57 per cent) are now hiring as nor-
mal, according to a survey from the
Confederation of British Industry
(CBI) – up sharply from a 45 per cent
six months ago.
While 52 per cent expect cuts to
have “at least a moderate impact” on
business, this is substantially down
from 71 per cent in December.
“It’s great news to see that more
London firms are hiring as normal
and redundancies have fallen,” com-
mented the CBI’s London chief Sara
Parker.
Only 20 per cent of firms are mak-
ing redundancies, down from 29 per
cent in the previous survey.
Yet companies in the capital
remain cautious about the future.
The tax regime, high inflation and
economic worries make up the pri-
mary concerns for the coming year.
London continues to be ranked
well for its competitiveness, with 87
per cent rating it as a good or very
good place to do business with other
global cities.
However, the tax environment,
operating costs and the city’s trans-
port are considered three key weak
points.
Tax, employment law and health
and safety regulations are considered
the most burdensome areas for busi-
nesses.
“The roads network is the biggest
transport concern for London firms
who want one of the Mayor’s top pri-
orities to be improving the city’s
infrastructure,” Parker added.
Upbeat firms
boost London
jobs market
THE G20 economic powers agreed on
proposals to address volatility in food
commodities last night, with the
exception of financial regulation
issues, a source close to the negotia-
tions revealed.
While the subject of financial regu-
lation remains a sticking point, nego-
tiators approved other measures such
as the creation of a global data-shar-
ing scheme, the source said.
Farm ministers from the group of
20 countries are meeting in Paris yes-
terday and today in the first ever sum-
mit on food prices.
The French delegation continues to
push its agenda to extend regulation
on commodity market trading.
President Nicolas Sarkozy has repeat-
edly blamed speculators for food
price inflation, yet faced opposition
from other countries this week.
“Argentina will emphasise the
importance of stimulating produc-
tion growth rather than controlling
it, in contrast to the French proposal
to regulate financial markets linked
to raw materials,” Argentine agricul-
tural minister Julian Dominguez said
earlier in the week.
A French farmers’ union used
sheep to occupy the entrance hall of
exchange operator NYSE Euronext’s
Paris offices in a brief protest.
G20 hits deadlock over financial
regulation during food price talks
BY JULIAN HARRIS
ECONOMY
▲
REGULATION
▲
News
13 CITYA.M. 23 JUNE 2011
London’s companies are recruiting again Picture: Micha Theiner/City A.M.
ANALYSIS l London as a place to
do business
3.28
3.39
3.453.49
3.41
3.29
3.27
3.07
3.04
3.08
3.07
3.20
3.25
Overall rating:
4 - Very good 3 - Good
2 - Satisfactory 1 - Poor/very poor
Jan05 Mar 07 Apr 09 Apr 11
4.0
3.5
3.0
2.5
NEWS | IN BRIEF
Eurozone’s industrial orders disappoint for April
New industrial orders in the Eurozone rose by 0.7 per cent in
April, official data showed yesterday – lower than many econ-
omists expected, after a 1.5 per cent drop in March. Excluding
volatile items, orders were down 0.6 per cent in both the euro
area and across the wider European Union block.
High street morale holds up across the Euro area
Consumer confidence in the Eurozone has held up better than
expected this month, according to an initial “flash” estimate
released by the European Commission yesterday. The index
recorded -10 after its six month high of -9.9 in May. “The index
is appreciably above its long-term average of -12.5,” noted
Howard Archer of IHS Global Insight.
Surprise upward spike in American house prices
US analysts were shocked yesterday as the Federal Housing
Finance Agency (FHFA) house price index showed a 0.8 per
cent monthly rise in April, defying expectations of another
drop. On the year, house prices were down 5.7 per cent.
FOR the first time ever there are now
more millionaires in Asia Pacific than
Europe, as the fortunes held by the
world’s richest people surpass pre-cri-
sis levels to reach $42.7 trillion (£26.5
trillion).
Asia’s ranks of high net worth indi-
viduals – those with investable assets
of $1m or more – grew by 9.7 per cent
in 2010 to reach 3.3m, while European
growth lagged at just 6.3 per cent to
hit 3.1m, said the latest Merrill Lynch-
Capgemini World Wealth Report.
With Hong Kong and Vietnam each
seeing an increase of 33 per cent in
high net worth residents, Asia is also
now home to six of the world’s 10
fastest growing wealthy populations.
The number of millionaires in the
UK grew just 1.4 per cent, to 535,000.
As well as the regional shift, many
wealthy individuals also changed their
investment focus in 2010, with equi-
ties now accounting for 33 per cent of
all financial assets – up from 29 per
cent a year earlier. Holdings in cash
and deposits fell meanwhile, down to
14 per cent from 17 per cent in 2009.
And as wealth levels have increased,
so have so-called investments of pas-
sion – the art and luxury buys that, in
an ideal world, marry aes-
thetic appeal with high
returns.
Art, which is seen as
the most likely invest-
ment of passion to reap
returns, accounted for
22 per cent of the total,
in a year where a
Picasso nude (right) sold
at auction for $106.4m.
Another sign
that Europe’s
star is waning
News
14 CITYA.M. 23 JUNE 2011
A new wealth report shows that money just
keeps on flocking east, says Elizabeth Fournier,
while fast cars and art are still topping wishlists
CITY VIEWS: WHY IS ASIA PACIFIC OVERTAKING EUROPE AS A WEALTH HUB?
Interviews by Cora Gardiner and Phoebe Torrance
“There is higher demand in Asia
because the economy is growing, but
there is still also far more poverty. As
the population is so large there is a stan-
dard of life in certain areas in Asia
which would not be acceptable here.”
CHRIS PEACOCK | LLOYD’S
ADRIAN HARRIS | AMSPHERE
WILLIAM LOW | WINDSOR INSURANCE
“Because there is a higher population
in Asia it has a higher work force
who are willing to work for lower
wages. There are also more raw
materials therefore the production
costs are lower.”
“The population is huge in Asia – previously it has been behind in the world markets, however it is now gather-
ing momentum. Asia is now becoming more up to date with the western comforts and cultures whilst keeping
their work ethic, which is contributing to their increasing wealth.”
MONEY MAKES THE WORLD GO ROUND: GLOBAL WEALTH IN 2010
Latin America
$7.3
TRILLION
North America
3.4M
North America
$11.6
TRILLION
Europe
3.1M
Europe
$10.2
TRILLION
Asia Pacific
3.3M
Asia Pacific
$10.8
TRILLION
Latin America
500,000
KEY
Number of high net worth
individuals by region
High net worth individuals'
financial wealth by region
($USD)
NEWS | IN BRIEF
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BREWER Fuller, Smith and Turner
yesterday returned fire in a war of
words over its bid for Capital Pub
Company.
Fuller, brewer of London Pride and
operator of 360 pubs, has made a
200p per share takeover bid for
Capital worth £54m.
Capital rejected the offer, dismiss-
ing it as too low.
Fuller is now moving closer to a
hostile bid that would seek to per-
suade shareholders to turn against
founder and chief executive Clive
Watson.
It criticised Capital’s trading per-
formance and its business strategy.
Fuller, under chairman Michael
Turner, said Capital’s growth plan
“has considerable risks associated
with its execution which could dilute
Fuller goes on the attack
in its bid for Capital Pubs
Fuller chairman Michael Turner said Capital’s current growth plan has risks
BY JOHN DUNNE
LEISURE
▲
News
15 CITYA.M. 23 JUNE 2011
NEWS | IN BRIEF
Bankers Investment Trust dips
The Bankers Investment Trust's earnings
per share fell to 5.50p at the half-way
stage of its financial year, though the
firm is still outperforming the FTSE All-
Share index by a percentage point. The
trust's net asset value grew by 8.5 per
cent in the six months to the end of April,
giving total net assets of £569.8m, while
pre-tax profit fell to £50m.
Walker Greenbank profit in China
Upmarket wallpaper seller Walker
Greenbank has seen an eight per cent
rise in underlying revenues in the first
four months of the year. The luxury fur-
nishings group, whose brands include
Sanderson and Morris & Co, reported a
hike of 13 per cent in international sales,
with the highest demand in Russia and
China.
the overall quality and attractiveness
of the estate”.
It added: “It has taken Capital over
10 years to grow its estate to 34 pubs
and Fuller’s believes that the strategy
to grow the estate by a further 11 to
16 pubs over the next two years has
considerable risks.”
Watson rebuffed the offer and said
the group is confident of a profitable
expansion under its existing growth
plans.
QANTAS has settled with engine-
maker Rolls-Royce over the explosion
of one of its A3830 engines mid-flight
last year, which forced the plane to
make an emergency landing.
Rolls will pay A$95m (£62m) in
damages, the Australian airline said
yesterday while also calling off all
legal action.
The compensation boosted Qantas’
pre-tax profit for the year ending 30
June 2011, to between A$500-550m.
Rolls-Royce, however, provided a
lower figure and said in an emailed
statement that total costs as a result
of the incident were £56m in the 2010
financial year, with some small addi-
tional costs in 2011.
The flight incident, which occurred
last November, forced an A380 jet
with 469 people on board to land in
Indonesia, shortly after take-off from
Singapore.
Qantas and several other airlines
were forced to ground their A380s,
and replace some Trent 900 engines.
Rolls shares closed yesterday at
601.50p, up 0.17 per cent, while
Qantas’ Australian listed shares
remained at $1.83.
Rolls settles
Qantas spat
Bridgewater nears launch
of its $10bn hedge fund
50% LESS U
P

T
O
FOR
BRIDGEWATER Associates, the
world’s biggest hedge fund firm, is
close to launching a $10bn (£6.2bn)
fund, in the latest indication that the
sector is recovering from the finan-
cial crisis.
The fund, which is only available to
current investors in Bridgewater,
started trading in November last year
with $2.4bn in assets.
Investors have committed a further
$7.5bn to the fund, which has now
stopped taking new investments.
Half of the money in the fund is
said to come from existing clients,
whilst the other half is from profits
returned to investors from
Bridgewater’s flagship fund Pure
Alpha.
The fund has returned about 11
per cent so far this year, the same as
Pure Alpha, while the average hedge
fund has returned two per cent,
according to data provider Hedge
Fund Research.
The new fund is named Pure Alpha
Major Markets, and is an extension of
the flagship vehicle’s strategy. It
invests in UK and German bond mar-
kets, amongst others.
Bridgewater has about $67bn in
the two funds, with the remainder of
its more than $100bn funds under
management in long-only vehicles.
BY KASMIRA JEFFORD
AVIATION
▲
MAN Group, the world’s largest listed
hedge fund manager, has raised more
than €100m (£89m) in commitments
for its first UCITS fund to combine
investment strategies run by Man and
GLG Partners, the hedge fund firm it
bought last year.
The open-ended fund gives retail
and institutional investors access to a
portfolio of 10 to 15 Man-run UCITS
funds, including industry-leading
GLG and AHL strategies, as well as
Man’s Man Systematic Strategies and
Man Convertible strategies.
Man raises first
fund mixed with
GLG strategies
HEDGE FUNDS
▲
HEDGE FUNDS
▲
News
16 CITYA.M. 23 JUNE 2011
ANALYSIS l Rolls Royce
p
28Mar 15Apr 11 May 1 Jun 21 Jun
650
630
610
601.50
22 Jun
l
NEWS FROM THE PARIS AIR SHOW
AIRBUS BULLISH ON PROSPECT OF A380 ORDERS
AIRBUS will announce new orders for its $375m A380 superjumbo at the Paris Air Show, Louis Gallois, chief executive of parent company
EADS, told a French radio station yesterday. The planemaker suffered embarrassment earlier this week when the A380 it had planned to fly
at the show was damaged, but was replaced at the air show with a just-assembled A380 in Korean Airlines' light blue livery.
NEWS | IN BRIEF
Bombardier pitches Boeing clients
Boeing’s indecision about how to update
its 737 narrow-body jet gives Bombardier
a wider opening to pitch its competing
CSeries jetliner to potential customers, the
chief operating officer of Bombardier's
aerospace unit said yesterday. Guy Hachey
said Bombardier had already made a pitch
to one of Boeing's top US customers,
Southwest Airlines , and added that he
thought it was possible to poach that busi-
ness.
Republic buys £7bn of A320neo
Republic Airways Holdings signed a letter
of intent to buy 80 of planemaker Airbus’
revamped A320neo family of aircraft
worth $7bn at list prices. The commitment
includes 40 A320neo and 40 A319neo
planes, Republic said yesterday.
Industry in 2m tonne biofuel pact
European airlines, biofuel producers and
the EC signed up yesterday to produce 2m
tonnes of biofuel for aviation by 2020 even
as debate rages over how green such fuels
are. Airlines are keen to use biofuels as a
way of cutting down on pollution from jet
fuel but the use of food crops in their pro-
duction has come under fire for taking land
that could be used to grow food.
Spain’s Bankia puts back
publication of prospectus
SPAIN’S Bankia has put back the
publication of the prospectus for its
up to €4bn (£3.6bn) initial public
offering (IPO).
The bank was forced to put back
the release after the Spanish stock
market regulator, the Comision
Nacional del Mercado de Valores
(CNMV), demanded changes to the
draft version of the document.
Bankia, which is valued at about
€13.2bn, will put back the release by
a week. It is hoped that the float will
get away by mid July.
However, concerns over a possible
Greek debt default and the dis-
tressed Eurozone economy have
meant investors are looking for a
deep discount from the offering.
The success of its IPO could be cru-
cial to the recovery of the
Eurozone’s embattled financial
institutions, particularly Spain’s
troubled banking sector.
“The willingness of private
investors to put capital into euro
periphery banks is going to be
absolutely critical in judging where
this market is going to go,” said one
senior equity capital markets
banker.
“Bankia is a massive franchise, its
going to be a massive IPO, we’re very
confident about it,” they added.
CAPITAL MARKETS
▲
TWO of London’s blue-chip property
companies, Land Securities and
British Land, paid out multi-million
pound pay deals to their chief execu-
tives last year, their annual reports
revealed yesterday.
Francis Salway, the chief executive
of Land Securities, was paid £1.2m in
salary, bonus and benefits in the year
to March compared to £1m the previ-
ous year, according to the company’s
annual report.
This included a salary of
£653,000 and a bonus of £757,000,
of which £62,000 was paid in
deferred shares.
Last month, Land Securities
wowed analysts with a 15 per cent
increase in pre-tax profit to £1.23bn.
Chris Grigg, chief executive of rival
firm British Land received a more
generous pay package of £2m last
year, compared to £1.8m in 2009.
On top of his £800,000 salary,
Grigg received a £1.2m bonus in the
year to March of which a third was
paid in the form of “locked-up”
shares.
Annual pre-tax profits for British
Land were up 9.9 per cent to £256m
in the year to March.
The two companies are racing to
complete a new generation of
London skyscrapers, with Land
Securities’ Walkie Talkie on
Fenchurch Street and British Land’s
Cheesegrater on Leadenhall Street,
both due for completion in 2014.
Property CEOs
pocket payout
worth millions
CAPITAL & COUNTIES Properties sub-
mitted plans yesterday for the £8bn
redevelopment of Earls Court site in
West London.
EC Properties, a subsidiary of
CapCo, presented planning applica-
tions to Hammersmith and Fulham
council to demolish the 77-acre site in
West Kensington – which includes
the Earls Court Exhibition Centre –
and replace it with 7,500 new homes.
The master plan, drawn up by the
architect Sir Terry Farrell, also envi-
sions offices and retail space as well
as a new primary school, a library,
health centre and 23.5 acres of public
open space.
The 11.4m square foot development
is set to create more than 12,000 jobs.
If approved, building work could
start as soon as 2012, though current
residents have expressed anger at the
new scheme.
Capital & Counties submit
Earls Court housing plans
A carpark on Seagrave Road will be turned into homes under the Earls Court scheme
BY KASMIRA JEFFORD
PROPERTY
▲
News
CITYA.M. 23 JUNE 2011
BY KASMIRA JEFFORD
PROPERTY
▲
17
ANALYSIS l Land Securities
p
11 Apr 29Apr 8Jun 19May
860
820
780
740
849.00
22 Jun
ASTRAZENECA has sold its dental
implants and medical devices unit for
$1.8bn (£1.12bn) to US company
Dentsply.
Dentsply, which beat off bids from
rival medical technology groups and
private equity firms, said yesterday the
purchase of Astra Tech would increase
its revenue by about 25 per cent and
boost its earnings immediately. Shares
in the company rose 2.8 per cent.
Swedish-based Astra Tech, which
had revenue last year of $535m, is the
world’s third-largest dental implants
maker after Straumann and Nobel
Biocare. It has a separate devices arm
focused on urology and surgery.
Acquiring Astra Tech will strength-
en Dentsply’s leading position in the
global dental market.
For AstraZeneca, the disposal rein-
forces its role as a pure play pharma-
ceuticals company at a time when
many rivals are diversifying.
AstraZeneca chief executive David
Brennan said the auction process, run
by JPMorgan, had attracted “a high
degree of interest”.
The price, however, was somewhat
short of the $2bn some analysts had
been expecting.
The deal, expected to close in the
second half, will not hit AstraZeneca’s
core earnings in 2011.
AstraZeneca
sells its dental
arm for £1bn
PHARMA
▲
T
he property sector has experi-
enced mixed fortunes this year.
While work on record-breaking
skyscrapers has really picked up
the pace, other projects have been left
unfinished or even empty once com-
pleted. London has continued to
enjoy the best conditions for invest-
ing and developing real estate – with
nominees British Land, Land
Securities and Heron among the
biggest winners in the capital – but
other firms like Capital Shopping
Centres have made bold moves in the
regions to cash in on signs of recovery.
This City stalwart has enjoyed for-
midable growth this year, largely
thanks to its savvy choices when
investing and developing proper-
ties.
British Land became the first of
the new Square Mile skyscraper
club to secure a pre-let office ten-
ant in May, when it signed up Aon
for the Cheesegrater more than
three years before the tower on
Leadenhall Street is due to open.
The 155-year-old company led by
Chris Grigg is also starting work
on a new headquarters for UBS at
Broadgate this summer, helping to
notch up 2.2m square feet of new
prime office space by 2014 and
showing off the City’s mix of illus-
trious history and exciting new
projects.
BRITISH
LAND
The UK’s largest mall owner would
deserve a nomination solely for its
flagship acquisition of the
Trafford Centre for £1.6bn back in
January.
But to pull off the country’s
biggest ever single-property trans-
action while fending off protests
and takeover advances from share-
holder Simon Property is a double
win for the steady hand of the
firm’s management, led by chief
executive David Fischel.
The deal done with Peel
Holdings for the mall in
Manchester represented an earn-
ings-positive purchase at a sensi-
ble price, at a time when some
rivals are playing cautious with
the opportunities out there in
retail real estate.
CAPITAL
SHOPPING
CENTRES
Gerald Ronson’s Heron
International has been involved in a
wide range of major projects this
year, from record-breaking towers
to charity work.
The firm’s 36-storey residential
tower near Moorgate began con-
HERON
INTERNA-
TIONAL
struction in 2013, and will be home
to the Guildhall music school as
well as dozens of luxury apart-
ments once complete, while across
the City on Bishopsgate, the Heron
Tower has welcomed its first com-
mercial tenants.
While real estate stalwart Ronson
(also nominated for personality of
the year) said in March he expects a
patchy market for the remainder of
2011, his high-end properties seem
to be doing a roaring trade.
The Heron Tower has racked up
new tenants since it opened in
March - among them the 1,300 trop-
ical fish set to live in its entrance
hall aquarium.
Privately-owned Hines has been
making a real mark in London over
the last year, with its 394,000
square foot Cannon Place project
promising top-quality office space
and new train station facilities later
in 2011.
After acquiring the site in 2002,
Hines has worked with Network
Rail to complete the Foggo-
designed building at a time of
space shortages in the square mile.
The firm is in talks with potential
tenants and is expected to
announce the first tranche soon.
The company, also known for its
high-rise towers in US financial cen-
tres, has also been busy leasing out
One Grafton Street in Mayfair and
setting up a Dublin office to cash in
on the rejigging of the banks there.
HINES
A company needs to unveil some-
thing special before an analyst will
use the words “blow-out”, but Land
Securities’ results in May did just
that. The firm wowed the market
with a £1.23bn annual profit – a
rise of almost 15 per cent at a time
LAND
SECURITIES
of nationwide uncertainty in the
real estate business.
Chief executive Francis Salway
has said the firm can afford to pick
and choose its deals this year, hav-
ing carefully nursed its balance
sheet through the trough years.
And while the company has
made outstanding gains across the
country, the ascent of its iconic
Walkie Talkie tower on Fenchurch
Street is a welcome sign of top-
notch office space on its way for the
City.
The firm is also working on small-
er-scale office projects in the Square
Mile, to provide space before the
blockbuster towers are ready.
I
T TAKES strong-minded individu-
als with deep knowledge of the
sectors they cover to make calls
that challenge popular thinking,
but the five thinkers on CITY A.M.’s
shortlist for Analyst of the Year have
won respect for going against the
grain – whether being sane on the
Glencore IPO or criticising the Bank
of England’s interest rate policy.
Don’t miss the City event of the year –
get online now and book your table for
the City A.M. Awards on Thursday 28
October 2010 at Grange St Paul’s Hotel,
London EC4. www.CityAMAwards.com
As global head of metals and min-
ing equity research at Standard
Bank Group, Peter Davey advises
on investment opportunities
across the global mining land-
scape, particularly mining compa-
nies with exposure to Africa.
Davey joined the mining equity
research sector following a ten-
year career as a mining engineer
in the platimum and gold mines
of South Africa, and has built his
reputation as a leading authority
on the metals and mining indus-
try through his research coverage
of diversified mining companies
such as Anglo-American, BHP-
Billiton, Rio Tinto and Xstrata.
More recently, Davey stood out
from his peers as one of the few
independent and “sane” voices on
the Glencore IPO.
PETER
DAVEY
STANDARD
BANK
The former chief economist at
New Star joined Henderson in
2009 following the merger of the
two firms, where as chief econo-
mist he supplies the Henderson
fund managers with economic
analysis and forecasts.
Simon Ward has become
known as one of the City’s leading
monetary economists through his
25-year career making calls on the
money markets, with recent fore-
casting successes including being
correctly pessimistic on UK infla-
tion and forecasting this spring’s
slowdown in global growth.
Ward, who has been openly criti-
cal of the Bank of England’s policy
of holding rates at rock bottom, has
also made a name for himself
through his well-followed Money
Moves Markets research blog.
SIMON
WARD
HENDERSON
GLOBAL
INVESTORS
Kevin Cammack is one of the sages
of the construction sector, an ana-
lyst steeped in the industry’s lore,
who has documented the changes
in the building and construction
world since the 1980s.
Over his long career at brokers
including Credit Suisse,
KEVIN
CAMMACK
CENKOS
SECURITIES
Chevreaux, Merrill Lynch and
Kaupthing, Cammack has stuck
to the fundamental belief that
analysts need to understand what
a company does day to day to be
able to provide complete insight,
which is why he reportedly
knows how to mix concrete and
build bricks.
Thanks to his longevity and
depth of knowledge on the histo-
ry of the construction firms he
analyses, the Cenkos Securities
equities analyst has been “consis-
tently brilliant on the house-
builders” such as Persimmon and
Taylor Wimpey, says a contempo-
rary, earning him the reputation
of “the analyst’s analyst”. Jeffrey Currie, the global head of
commodities research at Goldman
Sachs, has power few analysts com-
mand, with his authoritative calls
on oil reputed to move prices.
Currie joined Goldman in 1996
as an associate following several
years teaching undergraduate and
graduate courses in macroeconom-
ics and econometrics at the
University of Chicago, and is known
for framing his forecasts in the
minutiae of market dynamics.
Currie is also unafraid to chal-
lenge popular thinking on com-
modities: he refuses to buy into the
peak oil thesis, for example, and
believes there is no bubble in the
gold price. Currie has advised gov-
ernment agencies in the US, Europe
and Russia and his PhD thesis won
the Zeliner Thesis Award.
JEFFREY
CURRIE
GOLDMAN
SACHS
Jenny Barker has earned a reputa-
tion as one of Europe’s most accu-
rate chemical analysts over her
17-year career covering the sector at
firms including UBS and Lehman
Brothers. In her current role as
managing director in Nomura’s
JENNY
BARKER
NOMURA
European chemicals team, Barker
combines her academic back-
ground as an economist with her
experience working in the chemi-
cals industry to identify companies
where strategic changes are not yet
recognised in the stock price.
Barker enjoyed early successes
with Hoechst and Rhône-Poulenc
and made a strong call on BDF last
summer, which is one of the five
stocks she has on her watch along-
side Akzo Nobel, DSM, Lanxess and
Clariant. She is currently keeping a
close eye on Dutch firms DSM and
Akzo Nobel, where she believes the
stock prices are underestimating
the non-chemical businesses that
generate the majority of profits.
OF THE YEAR
|
The Shortlist day 4
PROPERTY FIRM
Sponsored by OF THE YEAR
|
ANALYST
Headline sponsor
TOMORROW
DEALMAKER
&
ALTERNATIVE MANAGER
News
18 CITYA.M. 22 JUNE 2011
APPLE supplier Imagination
Technologies saw its stock slip yester-
day despite announcing that its rev-
enues hit nearly £100m.
The chip designer, which supplies to
shareholders Apple and Intel, posted
an 80 per cent rise in pre-tax profit
after doubling the amount of micro-
processors it shipped.
It made £24m profits on 21 per cent
higher revenues of £98m, slightly miss-
ing analyst consensus. It also said it
smashed through the 500m devices
shipped barrier, with 245m coming in
the last year alone. Chief executive
Hossein Yassaie said he now expects to
ship 1bn units within five years.
Imagination, which provides chips
to firms including Fujitsu, LG, and ST-
Ericsson, rose to prominence when it
emerged it is a key supplier for Apple’s
iPhone. It received a boost when its
chips were also found in Apple’s all-
conquering iPad tablet PC.
Its technology business was the
stand-out performer, with its Pure dig-
ital radio business seeing its revenues
slide.
However, its stock fell over four per
cent yesterday, with analysts con-
cerned about increasing competition
from rivals including Cambridge-based
ARM Holdings. Some also feared its roy-
alty forecasts could be optimistic given
the fiercely competitive microproces-
sor market.
Imagination
grows sales
BY STEVE DINNEEN
TECHNOLOGY
▲
JELLYBOOK endured a shaky start to
life on the alternative investment mar-
ket yesterday, after its successful initial
public offering (IPO) this month.
It floated for 10p a share, raising
nearly four times the £3m initially
slated. But yesterday it was trading for
as little as 8.75p, a drop of 12.5 per
cent. It peaked at over 11p.
The social media investment vehicle
fronted by Jonathan Rowland raised
£11m, giving it a market cap of more
than £17m. The firm plans to make
one major acquisition in the next 18
months, riding the wave of intense
demand for dot.com companies.
Jellybook is Rowland’s second dot.com
firm, the first – Jellyworks – launching
a decade ago. He floated that at 5p a
share and saw it rise to an eye-water-
ing 100p a share before the crash hit.
He sold it for a respectable 29.5p a
share to Shore Capital.
Rowland, son of colourful tycoon
David “Spotty” Rowland, says he hopes
to make Jellybook one of the biggest
social media companies in Europe.
BY STEVE DINNEEN
TECHNOLOGY
▲
Jellybook wobbles
on its maiden day
POLICE yesterday charged 19-year-old
Ryan Cleary with a string of computer
related offences after a joint swoop by
Scotland Yard and the FBI.
He is suspected of having ties with
the LulzSec hacking collective, which
has targeted high-profile websites
including Sony, Nintendo, the IMF,
the CIA and, on the day Cleary was
arrested, the London-based Serious
Organised Crime Agency.
After going through the UK courts
he could be extradited to the US to
face charges over breaches there.
LulzSec has denied Cleary is the
mastermind behind the operation,
tweeting: “Ryan Cleary is not part of
LulzSec. Clearly the UK police are so
desperate to catch us that they’ve
gone and arrested someone who is, at
best, mildly associated with us.
Lame.”
His arrest has done little to deter
the hackers, with the Brazilian gov-
ernment website being brought
offline yesterday.
LulzSec suspect
is charged over
corporate hacks
News
19 CITYA.M. 23 JUNE 2011
NEWS | IN BRIEF
Premier wins deal clearance
Premier Foods has won competition
clearance for its £182m asset sale to
Princes, though the Office of Fair Trading
has imposed conditions. Premier Foods
agreed to sell its canned business, which
includes the Fray Bentos and Crosse &
Blackwell brands, back in February. The
OFT has ordered the divestment of Fray
Bentos and some manufacturing assets
before the deal can go through.
GKN Driveline invests in hybrid
Automotive driveline system provider
GKN Driveline has teamed up with EVO
Electric to manufacture and sell products
for hybrid and all-electric vehicles. GKN
plans to invest £5m in the venture, made
up of both debt and equity. GKN will also
acquire 25.1 per cent of Imperial
Innovations Group-backed EVO Electric.
The venture will be headquartered in the
UK.
Aggreko to power Tanzania
Temporary power supplier Aggreko has
sealed an estimated £23m contract with
the Tanzania Electric Supply Company to
supply emergency power to drought-
stricken Tanzania. Aggreko is to provide
two 50 megawatt diesel-powered plants
at Ubungo and Tegeta for a 12-month
period and will also manage the fuel sup-
ply generated. Tanzania’s power output
had been badly affected by prolonged
drought, as most of its electricity is
hydro-powered.
Weir buys Korean valves stake
Engineering group Weir has snapped up
a majority interest in Korea’s HIM Tech
Company for an undisclosed sum. Weir
said the acquisition will help drive sales
of its valves in Asia. HIM Tech posted
sales of $10.5m in the last calendar year,
and the firms said the book value of
HIM’s valves business was $1.8m.
Imagination
chief executive
Hossein Yassaie
says he expects to
ship 1bn units
within five years.
ANALYST VIEWS: IS A BITE OF THE APPLE
ENOUGH FOR IMAGINATION? Interviews by Steve Dinneen
“
DANIELA VENTRONE | MATRIX
Competition is heating up, leading to market-share losses and average
selling price pressure. This is not reflected in market expectations, in our
view. Rival ARM’s Mali is seeing important design wins.
”
“
ALEX JARVIS | PEEL HUNT
The fundamental risk factor with Imagination is its market share out-
look, where there are more question marks than a year ago. the best way
to play it seems to be to hedge by also owning ARM or Nvidia.
”
“
DAVID TOMS | NUMIS
Technology licensing revenue and royalty unit volumes were strong last
year, but offset by a continued faster than expected decline in the royalty
rate. We reiterate our “reduce” rating.
”
ANALYSIS l Imagination Technologies
p
11 Apr 29Apr 19May 8Jun
510
490
470
450
430
414.50
22 Jun
ANALYSIS l Jellybook
p
22Jun 10:00 12:00 14:00 16:00
11.40
11.00
10.60
10.20
9.80
9.40
9.00
8.60
9.75
22 Jun
BY STEVE DINNEEN
TECHNOLOGY
▲
THE oil investment vehicle fronted by
former BP boss Tony Hayward and fin-
ancier Nat Rothschild was trading
slightly lower than its bumper IPO
price on its first day trading yesterday.
Vallares floated at £10 a share and
was trading around the £9.90 mark
for much of yesterday. The firm
raised £1.35bn in its IPO last week,
above its initial plan to raise £1bn.
The fund intends to engineer the
reverse takeover of an unlisted oil
group in an emerging market.
The shareholder base includes long-
only investment funds on both sides of
the Atlantic, hedge funds and sover-
eign wealth funds.
Better Capital chairman Jon
Moulton yesterday warned of a possi-
ble commodities bubble, saying the
valuations of some recent commodi-
ty sector flotations look “incredibly
bubbly”.
He pointed to Vallares and Caparo
Energy as examples of the frothy com-
modity-related IPO market.
Vallares will effectively offer a tar-
get, whose owners may end up with a
majority stake of the listed company, a
fast track route to a UK stockmarket
listing and, thereby, the ability to raise
money more cheaply than they cur-
rently can.
The vehicle has two years to strike a
deal or to return the cash to investors.
Vallares echoes Vallar, a structure
Rothschild created last year to focus on
coal assets.
Vallar is in the process of buying
control of two Indonesia-focused min-
ing ventures from companies within
the indebted Bakrie Group, in return
for giving the politically-connected
Bakrie family around half of Vallar.
Vallares slips
on its London
trading debut
WALL STREET banking star Ken Moelis
has poached another high-profile exec-
utive from UBS, in the latest of a string
of defections at the Swiss lender.
He has added Liam Beere, one of
UBS’s most prominent European deal-
makers, to his team at Moelis & Co, the
boutique advisory firm he set up in
2007.
Moelis had been a star banker at
UBS and has poached about 30 other
top executives from the bank since he
broke off on his own.
Other high-profile defections from
UBS to the New York-based boutique
include Rick Leaman, the former
chairman of the Swiss lender’s invest-
ment banking operation.
Beere, who has been at UBS for 19
years, had previously worked with
Moelis.
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Bookyour placenow!
Moelis raids UBS to
hire old colleagues
PHILIPS Electronics warned of
sharply lower profits at its lighting
division and toasters-to-shavers con-
sumer business yesterday, due to
weak demand in Europe.
The profit warning, which wiped
13.5 per cent off the shares, caps a
string of disappointments from
Philips and suggests consumer
demand in Europe is likely to
remain fragile against a backdrop of
economic uncertainty, particularly
in the peripheral Eurozone coun-
tries.
The Dutch group, which ranks as
the world’s biggest lighting maker,
Europe’s largest consumer electron-
ics producer and a top-three maker
of hospital equipment, said it would
cut costs as part of its wider restruc-
turing.
Philips has struggled to compete
with lower-cost Asian makers of con-
sumer electronics, while tepid con-
sumer confidence and economic
growth in Europe and the US have
hit demand for products ranging
from televisions to electric tooth-
brushes, as well as its street and
home lighting systems.
The profit warning “shows that
consumers in mature markets are in
dire straits,” said Sjoerd Ummels, an
analyst at ING who covers Philips.
Philips shares plunge after profit
warning on weak Europe demand
BY STEVE DINNEEN
COMMODITIES
▲
RETAIL
▲
Ken Moelis (centre) has brought former
UBS exec Liam Beere (left) to his firm. He
has also poached others, including Stephen
Aulsebrook from DC Advisory Partners.
BY RICHARD PARTINGTON
BANKING
▲
News
21 CITYA.M. 23 JUNE 2011
ANALYSIS l Vallares
p
17Jun 20Jun 21 Jun 22Jun
1,005
1,000
995
990
985
980
975
990.00
22 Jun
News
22 CITYA.M. 23 JUNE 2011
SWIP
Michael Lee has been appointed as
head of consultant relationships in the
Institutional Sales team at Scottish
Widows Investment Partnership. Lee
joins from BlackRock in London,
where he was a global consultant
relationship director.
Reyl Asset Management
The asset management firm has
appointed Cédric Daras as senior fund
manager to co-manage the Reyl
Quality Bond and the Reyl Diversified
Income funds. Daras joins from
Métropole Gestion in Paris, where he
co-managed the firm’s corporate and
convertible bond funds.
Actis
The emerging markets private equity
investor has appointed Joe Sinyor as a
partner and head of the firm’s Value
Creation Group. Sinyor joined Actis in
May 2011, and his previous roles
include chief executive, Newspapers at
Trinity Mirror and a non-executive
director at Channel 4 Television.
VAM Funds
The investment management firm has
appointed Chris Leyshon to its institu-
tional sales team. Leyshon joins the
firm from Wellington Management,
where he worked in client relationship
management and new business devel-
opment across Europe.
Lombard Odier Group
The Swiss private bank has appointed
Ian Clarke as deputy chief investment
officer for its Fixed Income and
Currencies business. Most recently,
Clarke was head of internal fixed
income at Abu Dhabi Investment
Authority in Abu Dhabi.
AXA Investment Managers
The asset management unit of AXA
Group has appointed Lisa O'Connor as its
new European head of consultant rela-
tions based in London, effective from 6
June. O’Connor joins from Russell
Investments.
RSM Tenon
The professional services firm has
appointed Simon Evans as an associate
director of its Risk Management serv-
ice line. Evans was previously head of
risk at NEST, the government’s auto-
enrolment pension initiative.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Shares dip on lack
of QE3 suggestion
U
S stocks dropped yesterday
after the Federal Reserve
acknowledged the sluggish
pace of the US economic
recovery without hinting at further
plans for stimulus.
The Fed said the recovery was pro-
ceeding more slowly than it had
expected. In his news conference,
Fed chairman Ben Bernanke offered
nothing to motivate investors to
buy equities.
Without new information from
the Fed, investors were left to take
profits after a four-day rally that lift-
ed stocks from three-month lows.
Some analysts see range-bound trad-
ing ahead, with 1,295 among the
S&P 500’s first targets of resistance.
“The comments offered a pretty
strong indication that the economy
is not growing as fast as a lot of peo-
ple hoped it would,” said Bryant
Evans, investment adviser and port-
folio manager of Cozad Asset
Management, in Champaign,
Illinois.
“For three months, we could go
sideways or down because it could
take some time before the economy
can build on what we have here.”
Expectations about a second
round of Fed stimulus last fall
helped ignite an extended rally in
stocks. There is some hope the Fed
will conduct another round of asset
buying, but most economists see it
as unlikely at this time.
The Dow Jones industrial average
slid 80.34 points, or 0.66 per cent, to
12,109.67 at the close. The Standard
& Poor’s 500 Index dropped 8.38
points, or 0.65 per cent, to 1,287.14.
The Nasdaq Composite Index
tumbled 18.07 points, or 0.67 per
cent, to 2,669.19.
The S&P 500 is down 5.6 per cent
since its early May highs.
“The market was up four days in a
row coming into today, the rally has
been OK, but it hasn’t shown
enough strength to break the down-
side momentum the market has
had since May,” said Bruce Bittles,
chief investment strategist at
Robert W. Baird & Co in Nashville.
Another indicator of pessimism:
Net short positions by hedge funds
on the S&P 500 have risen recently,
according to Societe Generale cross-
asset research.
Weighing on tech, Adobe Systems
Inc shares slumped 6.3 per cent to
$30.01 a day after the software
maker reported a 54 per cent jump
in quarterly profit, but warned of
weakness in European demand.
The Fed said it will maintain
interest rates at exceptionally low
levels for an extended period.
B
RITAIN’S top share index
closed marginally lower yes-
terday, as weakness in banks
offset gains in defensive
stocks with investors jostling posi-
tions ahead of a US interest rate
decision.
London’s blue chip index bobbed
around but closed down 2.32 points
at 5,772.99, as cautious investors
awaited the Federal Reserve's assess-
ment of the economy and any plans
for dealing with renewed weakness.
Traders said there was hope that
the Fed might hint at the introduc-
tion of some form of QE3 but
expected interest rates to remain
unchanged as the US economic
recovery appears to be losing steam.
“Investors are looking for action
but they might be disappointed,”
said Jimmy Yates, head of equities at
CMC Markets.
In the UK, some members of the
Bank of England’s Monetary Policy
Committee raised the possibility of
future quantitative easing, as it
judged the growth outlook had
weakened, minutes to its June meet-
ing showed.
British banks fell, having been
among the top gainers in trading
earlier in the week ahead of the
confidence vote in the Greek parlia-
ment, with Barclays shedding 2.6
per cent. Lloyds Banking Group and
Royal Bank of Scotland both edged
down 0.7 per cent, while HSBC lost
0.6 per cent.
Having won the vote of confi-
dence, Greece now faces the task of
passing an austerity plan to secure a
new bailout from the European
Union and IMF, with no further
newsflow about that due until next
week.
Severn Trent and United Utilities
fell as they traded without their
payout attractions, along with
Game Group, which shed almost 13
per cent to compound sales woes
earlier in the month.
Cautious investors tucked into
defensive stocks such as British
American Tobacco and drugmaker
GlaxoSmithKline up 0.8 and 0.5 per
cent respectively.
Precious metals miner Randgold
Resources was up three per cent as
gold neared two-month highs.
Investors turned to the metal’s
safe haven qualities in the face of
uncertainty over Greece and on
expectations that government’s
around the globe will continue
their loose monetary policy.
Elsewhere, hedge fund manager
Man Group rose 4.9 per cent,
extending gains in the previous ses-
sion on the back of a revival of
vague takeover rumours, with a
welter of positive broker comment
supporting the stock.
Credit Suisse upgraded its rating
for Man to “outperform” from “neu-
tral”, while Goldman Sachs initiat-
ed coverage of the stock with a
“buy” rating and 310 pence target
price.
Mid-cap fund manager
Henderson also benefited from an
upgrade to “buy” by Citigroup, tak-
ing on 0.2 per cent.
Real estate stocks were higher,
with British Land and Hammerson
adding 1.4 per cent and 0.2 per cent
respectively, as Espirito Santo initi-
ated coverage on both with “buy”
ratings.
High street retailer Dixons was
also among the risers, gaining 7.6
per cent ahead of its results today.
Small cap explorer Hardy Oil shot
up 15 per cent, the biggest riser in
the FTSE index, after announcing
an oil find in its joint project off
the Indian coast.
Banks drop but FTSE treads
water ahead of Fed decision
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to [email protected]
ANALYSIS l Halma
400
390
380
370
360
350
340
330
28Mar 15Apr 11 May 1 Jun 21 Jun
p
399.90
22 Jun
HALMA
UBS rates the safety equipment group “sell” with a target price of 325p.
The broker holds mixed views about the firm’s recent full year results, with
profits enjoying a boost thanks to acquisitions but underlying figures stag-
nating. UBS expects Halma to make £125m of M&A deals this year before
it can justify its current rating, which is at risk on the firm’s current growth
momentum.
ANALYSIS l Syngenta
310
300
290
280
270
11 Apr 29Apr 19May 8Jun
CHF 279.40
22 Jun
SYNGENTA
Nomura rates the agricultural group “buy” with a target price of SFR370.
The broker was impressed at the company’s recent capital market day,
where the firm was convincing in its plan to integrate seeds and crop pro-
tection platforms. Nomura expects robust sales growth on the strength of
Syngenta’s current product range and hopes to see increased technology
adoption across Asia and North America in the coming years.
ANALYSIS l Supergroup
1600
1400
1200
1000
800
600
28Mar 15Apr 11 May 1 Jun 21 Jun
p
879.00
22 Jun
SUPERGROUP
Arden Partners rates the retail group “buy” and has trimmed its target
price from £17.25 to £16. The broker thinks the group slightly missed fore-
casts in its update on Monday, and has pruned its retail sales growth from
56 to 50 per cent for the year. Arden Partners now expects a £70m pre-
tax profit this year but maintains that SuperGroup’s share price still drasti-
cally undervalues the fast-growing company.
6,100
5,900
5,700
4May 24May 14Jun 8Apr 21 Mar
ANALYSIS l FTSE 100
5,772.99
22 June
Barclays Wealth
Paul Burd has been appointed as head of busi-
ness services for Barclays Wealth Operations
and head of operations, Glasgow. Most recent-
ly, Burd was general manager of worldwide
securities at JP Morgan, based in Cape Town,
following previous roles at JP Morgan includ-
ing managing director of the investment bank’s
London Investment Management Operations
team. Prior to that, Burd spent ten years work-
ing at Goldman Sachs in London and Frankfurt
and a decade with HSBC.
Mr ETF gives
a bullish view
as he looks at
global growth
The man who helped launch the first
exchange-traded fund expects rapid
annual expansion, writes Philip Salter
T
HERE has been a global boom
in exchange-traded funds (ETF)
over the last fourteen years. But
according to Jim Ross, global
head of ETFs at State Street Global
Advisors, there is still a lot more room
for growth.
Having launched the first ever ETF
with State Street on 22 January 1993 –
the SPDR S&P 500 ETF, which is now
the largest ETF in the world with
about $85-$95bn invested in it – Ross
is the ideal person to offer an
informed perspective on the industry.
State Street is the biggest ETF provider
in Asia-Pacific, the second biggest in
the US and is now looking to grow its
business and brand in Europe.
The global ETF industry has mush-
roomed. There are currently about
2,670 ETFs, with nearly $1.5 trillion
invested in them, $1 trillion of which
is in the US. Ross notes a number of
facets that made ETFs successful:
their structure doesn’t suffer from
the demand price fluctuations that
hit closed-ended funds and they allow
investors to easily gain access to differ-
ent assets. He also thinks that one key
tenet in the US, which people don’t
focus on in Europe, is the ease of buy-
ing and selling ETFs, thus making it
easier to work out asset allocations.
Ross believes that with asset alloca-
tion making up about 90 per cent of
returns, ETFs, though often passive,
are being used in a very active way.
EDUCATION IS KEY
Although State Street
doesn’t currently offer
synthetic ETFs, Ross
doesn’t see anything
intrinsically wrong
with them. He says
physical ETFs offer the
advantage of trans-
parency, but suffer
from tracking errors.
Synthetics might be
able to eliminate some
of these errors,
but investors
need to
a s k
themselves if they understand them.
Ross says: “I think it comes down to
asking if the product has acted as you
would have expected.” As such, he
suggests investors look at the ETF’s
history, understand the risks in the
product’s structure and then weigh
these risks against the risks in others.
As such: “If you think there is an
unknown risk, you have to make the
decision that you are comfortable
with that.”
Ross thinks the current debate in
Europe over synthetic versus passive
mimics the debate in the US when
inverse and leveraged ETFs came out.
Once investors became properly edu-
cated, they were able to make an
informed choice – some stuck with
them, others decided against it. Ross
points out that in registered funds
investors have been doing it for years
“whether they think about it that
way or not.” Ross sees it as the respon-
sibility of providers to give the tools,
education and transparency to
providers to see how they achieve
their returns.
A BRIGHT FUTURE
Having seen his ETFs through the tri-
als of the dotcom crash, 9/11, the glob-
al financial crisis and the 2010 flash
crash, he says: “We have been through
a lot of uncertainty in the markets
and the ETF structure has proved to
work well.” Ross believes education is
the key to bringing in more
investors: “I look at ETFs as
barely established right now
from a European stand-
point. It is semi-established
in the US, but both mar-
ketplaces have significant
growth potential.” Ross
thinks that the 20 to 30
per cent growth seen in
the US over the last decade
is set to continue. He
might be right. With the
Retail Distribution Review
(RDR) coming next
year, the
progress of
ETFs looks
unstop-
pable.
CITYA.M. 23 JUNE 2011 23
Wealth Management| Funds
0
1,500
1,200
900
600
300
Assets
$bn
Source: BlackRock (April 2011)
$
8
.
2
b
n
$
1
7
.
6
b
n
$
3
9
.
6
b
n
$
7
4
.
3
b
n
$
1
0
4
.
8
b
n
$
1
4
1
.
6
b
n
$
2
1
2
.
0
b
n
$
3
0
9
.
8
b
n
$
4
1
2
.
1
b
n
$
5
6
5
.
6
b
n
$
7
9
6
.
7
b
n
$
7
1
1
.
1
b
n
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
ANALYSIS l Global growth in exchange-traded funds
$
1
,
4
6
9
.
8
b
n
$
1
,
3
1
1
.
3
b
n
$
1
,
0
3
6
.
0
b
n
LON GD ONCE FIX AM...........1543.00 6.00
SILVER LDN FIX AM ..................36.45 0.67
MAPLE LEAF 1 OZ ....................53.50 2.50
LON PLATINUM AM................1748.00 2.00
LON PALLADIUM AM...............755.00 13.00
ALUMINIUM CASH .................2519.00 29.00
COPPER CASH ......................9059.00 124.50
LEAD CASH...........................2441.00 66.00
NICKEL CASH......................21950.00 545.00
TIN CASH.............................25250.00 580.00
ZINC CASH ............................2186.50 38.50
BRENT SPOT INDEX................112.00 0.00
SOYA .....................................1335.75 0.00
COCOA..................................2967.00 0.00
COFFEE...................................243.60 0.00
KRUG.....................................1596.50 0.00
WHEAT ....................................164.35 -9.78
AIR LIQUIDE........................................95.90 0.84 100.65 79.85
ALLIANZ..............................................95.20 -0.36 108.85 78.99
ALSTOM..............................................42.05 -0.43 45.32 30.78
ANHEUS-BUSCH INBEV ....................39.43 -0.68 46.33 38.68
ARCELORMITTAL...............................22.72 0.20 28.55 20.26
AXA......................................................15.26 -0.12 16.16 10.88
BANCO SANTANDER...........................8.00 -0.03 10.23 7.00
BASF SE..............................................65.27 0.07 70.22 40.74
BAYER.................................................58.03 0.35 59.44 43.27
BBVA......................................................8.00 -0.03 10.71 6.75
BMW....................................................65.39 0.54 65.63 37.80
BNP PARIBAS.....................................53.34 0.26 59.93 43.13
CARREFOUR ......................................27.16 -0.15 41.28 25.95
CREDIT AGRICOLE............................10.26 -0.07 12.92 8.13
CRH PLC .............................................14.53 -0.19 19.92 11.51
DAIMLER.............................................48.91 0.35 59.09 37.03
DANONE..............................................52.03 -0.12 52.84 41.00
DEUTSCHE BANK..............................41.09 -0.16 51.61 35.93
DEUTSCHE BOERSE .........................52.02 -0.59 62.48 46.33
DEUTSCHE TELEKOM.......................10.67 0.06 11.38 9.50
E.ON.....................................................19.49 0.16 25.54 18.25
ENEL......................................................4.38 0.06 4.86 3.42
ENI .......................................................15.89 -0.18 18.66 14.62
FRANCE TELECOM............................14.50 -0.03 17.45 14.01
GDF SUEZ ...........................................24.56 -0.09 30.05 22.64
GENERALI ASS...................................14.29 -0.23 17.05 13.31
IBERDROLA..........................................6.13 0.04 6.50 4.38
ING GROEP CVA...................................8.33 0.05 9.50 5.92
INTESA SANPAOLO.............................1.86 0.00 2.53 1.65
KON.PHILIPS ELECTR.......................16.41 -1.58 26.87 15.56
L'OREAL..............................................87.91 0.35 90.00 75.03
LVMH..................................................118.35 1.65 129.05 84.85
MUNICH RE.......................................103.65 -0.55 126.00 99.62
NOKIA....................................................4.21 0.00 8.49 4.03
REPSOL YPF.......................................22.76 -0.10 24.90 16.30
RWE.....................................................38.30 0.23 58.10 36.87
SAINT-GOBAIN...................................42.64 0.06 47.64 27.81
SANOFI ................................................52.82 0.38 56.50 44.01
SAP......................................................42.34 -0.71 46.15 34.13
SCHNEIDER ELECTRIC ...................110.75 -2.55 123.65 79.70
SIEMENS .............................................92.75 -0.73 99.39 70.02
SOCIETE GENERALE.........................39.88 -0.30 52.70 32.50
TELECOM ITALIA..................................0.92 -0.01 1.16 0.89
TELEFONICA ......................................16.61 0.04 19.69 14.95
TOTAL..................................................38.58 -0.30 44.55 35.66
UNIBAIL-RODAMCO SE...................155.55 -0.20 159.30 111.60
UNICREDIT............................................1.52 -0.00 2.24 1.41
UNILEVER CVA...................................22.42 0.07 24.11 20.68
VINCI ....................................................42.51 -0.61 45.48 33.01
VIVENDI ...............................................18.91 -0.02 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5772.99 -2.32 -0.04
FTSE 250 INDEX. . . . . . . . 11636.16 -18.76 -0.16
FTSE UK ALL SHARE . . . . 3010.19 -1.55 -0.05
FTSE AIM ALL SH . . . . . . . . 847.71 0.94 0.11
DOWJONES INDUS 30 . . 12109.67 -80.34 -0.66
S&P 500 . . . . . . . . . . . . . . . 1287.14 -8.38 -0.65
NASDAQ COMPOSITE . . . 2669.19 -18.07 -0.67
FTSEUROFIRST 300 . . . . . 1091.46 -5.49 -0.50
NIKKEI 225 AVERAGE. . . . 9629.43 169.77 1.79
DAX 30 PERFORMANCE. . 7278.19 -7.32 -0.10
CAC 40 . . . . . . . . . . . . . . . . 3871.37 -5.70 -0.15
SHANGHAI SE INDEX . . . . 2649.32 2.84 0.11
HANG SENG. . . . . . . . . . . 21859.97 9.38 0.04
S&P/ASX 20 INDEX . . . . . . 2728.70 13.60 0.50
ASX ALL ORDINARIES . . . 4590.80 25.60 0.56
BOVESPA SAO PAOLO. . 61194.09 -229.52 -0.37
ISEQ OVERALL INDEX . . . 2907.60 0.18 0.01
STI . . . . . . . . . . . . . . . . . . . . 3042.83 -10.68 -0.35
IGBM. . . . . . . . . . . . . . . . . . 1038.58 -0.81 -0.08
SWISS MARKET INDEX. . . 6113.44 -57.57 -0.93
Price Chg %chg
3M........................................................92.80 -0.63 97.95 76.85
ABBOTT LABS ...................................52.08 -0.18 54.24 44.59
ALCOA ................................................15.29 -0.08 18.47 9.81
ALTRIA GROUP..................................27.18 -0.13 28.13 19.53
AMAZON.COM..................................191.63 -2.60 206.39 105.80
AMERICAN EXPRESS........................49.85 0.30 51.97 37.33
AMGEN INC.........................................58.16 -0.02 61.53 50.34
APPLE...............................................322.61 -2.69 364.90 236.78
AT&T....................................................30.88 -0.23 31.94 23.88
BANK OF AMERICA...........................10.79 -0.04 16.10 10.40
BERKSHIRE HATAW B.......................75.97 -0.52 87.65 73.23
BOEING CO.........................................72.12 -1.86 80.65 59.48
BRISTOL MYERS SQUI ......................27.74 -0.24 28.99 20.05
CATERPILLAR..................................100.15 -1.24 116.55 58.06
CHEVRON.........................................101.07 -0.52 109.94 66.83
CISCO SYSTEMS................................15.36 -0.15 26.00 14.78
CITIGROUP.........................................39.51 0.20 51.50 36.20
COCA-COLA.......................................66.40 0.14 68.77 49.47
COLGATE PALMOLIVE......................87.53 -1.39 89.36 73.12
CONOCOPHILLIPS.............................73.29 -0.44 81.80 48.06
DU PONT(EI) DE NMR........................51.32 -0.40 57.00 33.73
EXXON MOBIL....................................79.82 -0.75 88.23 55.94
GENERAL ELECTRIC.........................18.56 -0.25 21.65 13.75
GOLDMAN SACHS GRP..................134.50 -1.46 175.34 129.50
GOOGLE A........................................487.01 -6.00 642.96 433.63
HEWLETT PACKARD.........................35.12 -0.18 49.39 33.95
HOME DEPOT.....................................34.93 -0.50 39.38 26.62
IBM.....................................................165.68 -0.54 173.54 120.61
INTEL CORP .......................................21.40 -0.26 26.78 17.60
J.P.MORGAN CHASE.........................40.69 -0.22 48.36 35.16
JOHNSON & JOHNSON.....................66.07 -0.42 67.37 56.86
KRAFT FOODS A................................34.66 -0.15 35.44 24.30
MC DONALD'S CORP ........................82.65 -0.15 83.09 65.31
MERCK AND CO. NEW......................35.47 -0.31 37.68 31.06
MICROSOFT........................................24.65 -0.11 29.46 22.73
OCCID. PETROLEUM.......................100.93 -1.47 117.89 72.13
ORACLE CORP...................................32.20 -0.45 36.50 21.24
PEPSICO.............................................68.78 -0.15 71.89 60.32
PFIZER ................................................20.28 -0.15 21.45 14.00
PHILIP MORRIS INTL .........................66.65 -1.40 71.75 44.95
PROCTER AND GAMBLE ..................64.06 -0.16 67.72 56.57
QUALCOMM INC ................................54.00 -0.44 59.84 31.63
SCHLUMBERGER ..............................83.58 0.08 95.64 52.91
TRAVELERS CIES..............................57.32 -0.76 64.17 48.17
UNITED TECHNOLOGIE ....................85.44 -0.12 90.67 63.62
UNITEDHEALTH GROUP...................51.78 -0.44 52.64 27.13
VERIZON COMMS ..............................35.94 -0.05 38.95 25.80
WAL-MART STORES..........................53.01 -0.28 57.90 47.77
WALT DISNEY CO ..............................38.31 -0.47 44.34 30.72
WELLS FARGO & CO.........................27.37 -0.09 34.25 23.02
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.545 0.00
LIBOR Euro - overnight ..................1.087 -0.19
LIBOR Euro - 12 months.................2.118 0.00
LIBOR USD - overnight...................0.127 0.00
LIBOR USD - 12 months.................0.726 0.00
Halifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US long bond yield .........................4.020 0.03
European repo rate.........................1.121 -0.17
Euro Euribor ....................................1.258 -1.27
The vix index ...................................17.87 -1.01
The baltic dry index ........................1.409 0.00
Markit iBoxx...................................221.41 0.97
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
/$ 1.4414 0.0015
/£ 0.8939 0.0073
/¥ 115.52 0.0150
/ 1.1187 0.0052
/$ 1.6126 0.0111
/¥ 129.23 1.0688
FTSE 100
5772.99
-2.32
FTSE 250
11636.16
-18.76
FTSE ALLSHARE
3010.19
-1.55
DOW
12109.67
-80.34
NASDAQ
2669.19
-18.07
S&P 500
1287.14
-8.38
Rexam . . . . . . . . . . . .371.0 -3.4 400.0 290.4
RPC Group . . . . . . . .355.0 1.0 361.1 199.9
Smiths Group . . . . .1107.0 -12.9 1429.0 1043.0
Brown (N.) Group . . .267.5 -1.6 311.2 221.0
Carpetright . . . . . . . . .696.5 6.5 835.5 631.0
Debenhams . . . . . . . . .70.0 1.0 77.4 53.0
Dignity . . . . . . . . . . . .750.0 1.5 785.0 627.5
Dixons Retail . . . . . . .16.5 1.2 28.5 11.8
DunelmGroup . . . . . .393.2 -0.3 550.0 325.3
Halfords Group . . . . .399.9 0.8 550.0 348.2
Home Retail Group . .166.9 0.5 244.5 165.2
Inchcape . . . . . . . . . .396.0 1.5 414.0 237.1
JD Sports Fashion . .919.5 19.5 1005.0 701.0
Kesa Electricals . . . .134.0 0.1 174.0 109.8
Kingfisher . . . . . . . . .270.9 6.8 287.1 198.5
Marks & Spencer G . .366.5 1.7 427.5 327.2
Mothercare . . . . . . . .384.3 -2.5 627.5 382.0
Next . . . . . . . . . . . . .2267.0 13.0 2326.0 1868.0
Sports Direct Int . . . .227.1 -1.5 234.1 101.1
WH Smith . . . . . . . . . .465.7 -0.2 523.0 398.2
Smith & Nephew . . . .648.0 -1.5 742.0 537.5
Synergy Health . . . . .897.0 -4.5 948.0 640.0
Barratt Developme . .110.6 0.0 119.0 70.1
Yule Catto & Co . . . . .230.4 0.3 240.5 112.7
Balfour Beatty . . . . . .303.8 -2.4 357.3 229.8
Keller Group . . . . . . .447.2 4.0 698.5 443.2
Kier Group . . . . . . . .1326.0 -7.0 1418.0 886.5
Drax Group . . . . . . . .492.2 6.0 493.6 353.6
Scottish & Southe . .1385.0 -0.8 1410.0 1108.0
Domino Printing S . .660.0 1.0 705.0 433.0
Halma . . . . . . . . . . . . .399.9 6.3 411.9 265.4
Laird . . . . . . . . . . . . . .201.9 2.9 203.9 98.8
Morgan Crucible C . .298.5 -1.7 333.0 179.5
Renishaw . . . . . . . . .1706.0 1.0 1819.0 709.0
Spectris . . . . . . . . . .1538.0 -11.0 1581.0 740.5
Aberforth Smaller . . .688.0 -2.0 714.0 506.0
Alliance Trust . . . . . .374.5 1.6 385.0 293.5
Bankers Inv Trust . . .414.5 -2.0 428.0 337.0
BH Global Ltd. GB .1101.0 -7.0 1174.0 1058.0
BH Global Ltd. US . . . .11.0 0.1 11.6 10.4
BH Macro Ltd. EUR . . .17.2 0.1 17.2 15.8
BH Macro Ltd. GBP 1773.0 -2.0 1775.0 1630.0
BH Macro Ltd. USD . . .17.0 -0.1 17.1 15.8
BlackRock World M .734.0 -1.5 815.5 533.0
BlueCrest AllBlue . . .174.2 -0.1 176.2 163.8
British Assets Tr . . . .132.9 -0.1 140.5 105.0
British Empire Se . . .508.0 1.0 533.0 404.1
Caledonia Investm .1711.0 1.0 1928.0 1539.0
City of London In . . .293.8 -0.2 303.2 235.0
Dexion Absolute L . .145.2 -0.4 151.0 131.2
Edinburgh Dragon . .237.5 -0.5 262.1 205.3
Edinburgh Inv Tru . . .474.9 -0.1 492.2 372.2
Electra Private E . . .1715.0 -6.0 1755.0 1177.0
F&C Inv Trust . . . . . .312.0 1.1 317.5 251.4
Fidelity China Sp . . . . .96.5 1.4 128.7 94.0
Fidelity European . .1230.0 -6.0 1287.0 916.0
Fidelity Special . . . . .565.0 -1.0 595.0 503.0
Herald Inv Trust . . . . .523.0 -0.5 541.0 352.5
HICL Infrastructu . . . .115.0 -0.3 121.3 112.0
Impax Environment .117.2 0.0 130.5 106.5
JPMorgan American .854.0 -8.0 909.0 673.0
JPMorgan Asian In . .226.3 1.3 250.8 187.1
JPMorgan Emerging .574.5 -2.0 639.0 479.5
JPMorgan European .900.0 -8.0 983.5 618.0
JPMorgan Indian I . . .403.0 -3.4 502.0 394.1
JPMorgan Russian .651.5 1.0 755.0 502.0
Law Debenture Cor . .365.9 0.0 372.4 273.3
Mercantile Inv Tr . . .1079.0 -3.0 1137.0 840.0
Merchants Trust . . . .415.0 -1.0 431.8 320.0
Monks Inv Trust . . . .342.6 -1.4 367.9 275.5
Murray Income Tru . .647.0 -3.0 672.0 518.0
Murray Internatio . . .952.0 8.0 966.0 805.5
Perpetual Income . . .266.7 -0.9 276.0 212.0
Polar Cap Technol . .347.5 1.5 391.2 275.6
RIT Capital Partn . . .1306.0 2.0 1328.0 1107.0
Scottish Inv Trus . . . .496.0 4.9 517.0 401.5
Scottish Mortgage . .719.5 1.0 764.0 533.0
SVG Capital . . . . . . . .259.7 -0.3 279.8 140.0
Temple Bar Inv Tr . . .920.0 -4.0 947.5 717.0
Templeton Emergin .624.0 0.5 689.5 515.0
TR Property Inv T . . .188.8 -1.2 201.0 132.3
TR Property Inv T . . . .89.3 1.1 91.0 59.5
Witan Inv Trust . . . . .503.5 0.5 528.0 409.9
3i Group . . . . . . . . . . .274.1 1.2 340.0 254.1
3i Infrastructure . . . . .119.3 -0.2 125.2 108.9
Aberdeen Asset Ma .213.0 -3.1 240.0 123.0
Ashmore Group . . . .383.8 -0.1 393.9 236.5
Berkeley Technolo . . . .4.3 0.0 9.0 2.2
Brewin Dolphin Ho . .144.6 -0.2 185.4 114.0
Camellia . . . . . . . . .10619.5 147.510950.0 7600.0
Charles Taylor Co . . .144.0 -6.0 234.0 122.0
City of London Gr . . . .81.5 0.0 93.6 70.7
City of London In . . .412.5 2.5 461.5 273.5
Close Brothers Gr . . .752.5 -12.0 888.5 664.0
Collins Stewart H . . . .75.0 1.0 90.8 69.3
Evolution Group . . . . .66.3 0.3 92.0 65.0
F&C Asset Managem .73.3 -0.4 92.9 47.5
Hargreaves Lansdo .603.0 -0.5 646.5 317.4
Helphire Group . . . . . . .3.9 0.1 44.0 3.2
Henderson Group . . .145.1 2.7 173.1 118.1
Highway Capital . . . . .19.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .447.6 -2.8 570.5 380.2
IG Group Holdings . .424.5 -5.4 553.0 420.0
Intermediate Capi . . .311.0 -0.4 360.3 240.4
International Per . . . .337.6 -1.6 386.6 183.3
International Pub . . . .115.8 -0.2 118.3 108.6
Investec . . . . . . . . . . .484.8 -2.5 538.0 429.2
IP Group . . . . . . . . . . . .47.6 1.6 53.8 27.9
Jupiter Fund Mana . .250.1 0.1 337.3 180.3
Liontrust Asset M . . . .82.0 1.0 95.3 70.0
LMS Capital . . . . . . . . .61.0 -0.3 64.8 40.0
London Finance & . . .21.0 0.0 23.5 16.5
London Stock Exch .957.5 0.0 990.0 544.0
Lonrho . . . . . . . . . . . . .19.0 0.3 19.8 10.0
Man Group . . . . . . . . .241.8 11.2 311.0 206.4
Paragon Group Of . .190.5 -0.5 206.1 114.4
Provident Financi . . .977.5 -0.5 1033.0 728.5
Rathbone Brothers .1084.0 -8.0 1257.0 762.5
Record . . . . . . . . . . . . .33.9 -1.6 53.5 20.3
RSM Tenon Group . . .25.0 0.0 66.3 21.3
Schroders . . . . . . . .1503.0 -3.0 1922.0 1154.0
Schroders (Non-Vo .1263.0 -3.0 1554.0 950.5
Tullett Prebon . . . . . .345.0 -0.3 428.6 307.5
Walker Crips Grou . . .49.5 0.0 52.1 46.5
BT Group . . . . . . . . . .200.9 2.3 201.9 126.3
Cable & Wireless . . . .38.5 -0.2 61.4 37.8
Cable & Wireless . . . .49.9 -1.2 92.0 46.6
COLT Group SA . . . .142.8 -0.9 156.2 109.0
TalkTalk Telecom . . .145.5 -2.8 168.3 114.3
TelecomPlus . . . . . . .624.0 -13.5 700.0 327.0
Booker Group . . . . . . .66.8 -0.3 70.3 39.5
Greggs . . . . . . . . . . . .516.0 8.5 542.0 418.7
Morrison (Wm) Sup .292.0 -2.9 308.3 262.7
Ocado Group . . . . . . .195.2 -4.7 285.0 123.5
Sainsbury (J) . . . . . . .325.9 3.7 395.0 317.2
Tesco . . . . . . . . . . . . .398.8 -3.6 440.7 377.5
Associated Britis . .1073.0 15.0 1182.0 940.0
Cranswick . . . . . . . . .760.5 3.0 907.5 735.0
Dairy Crest Group . . .366.8 -10.5 424.9 339.7
Devro . . . . . . . . . . . . .266.7 6.7 296.9 189.8
Premier Foods . . . . . . .25.5 -0.2 35.1 16.0
Tate & Lyle . . . . . . . . .642.0 3.0 656.0 409.1
Unilever . . . . . . . . . .1974.0 16.0 2000.0 1688.0
Mondi . . . . . . . . . . . . .603.0 -1.0 630.0 367.6
Centrica . . . . . . . . . . .327.2 5.6 346.1 292.8
International Pow . . .314.5 2.3 448.6 295.9
National Grid . . . . . . .592.0 1.5 632.5 485.0
Northumbrian Wate .373.8 -1.1 387.0 295.5
Pennon Group . . . . . .648.5 -2.5 675.0 545.5
Severn Trent . . . . . .1398.0 -45.0 1517.0 1216.0
United Utilities . . . . .575.0 -20.5 632.0 520.0
Cookson Group . . . . .646.5 -5.0 724.5 367.4
DS Smith . . . . . . . . . .213.6 -1.4 226.0 116.0
Glencore Internat . . .490.0 -5.2 531.1 473.0
BAE Systems . . . . . .308.8 1.2 369.9 294.7
Chemring Group . . . .637.0 -11.5 736.5 519.6
Cobham . . . . . . . . . . .206.6 -0.8 247.6 192.3
Meggitt . . . . . . . . . . . .361.0 -0.7 380.9 261.7
QinetiQ Group . . . . . .115.5 -1.2 136.3 96.7
Rolls-Royce Group . .601.5 1.0 665.0 535.0
Senior . . . . . . . . . . . . .164.5 0.4 167.1 111.2
Ultra Electronics . . .1607.0 8.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .211.0 -0.2 237.1 109.3
Barclays . . . . . . . . . . .252.3 -6.6 344.0 251.5
HSBC Holdings . . . . .605.6 -3.4 730.9 596.2
Lloyds Banking Gr . . .47.0 -0.3 77.6 46.9
Royal Bank of Sco . . .38.7 -0.3 52.1 37.6
Standard Chartere .1550.0 -25.0 1950.0 1525.0
AG Barr . . . . . . . . . .1330.0 -19.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .397.0 -1.8 518.0 364.5
Diageo . . . . . . . . . . .1255.0 -10.4 1301.0 1033.0
SABMiller . . . . . . . . .2100.0 -3.0 2306.0 1827.0
AZ Electronic Mat . . .304.0 -1.0 338.1 248.5
Croda Internation . .1918.0 29.0 1962.0 971.0
Elementis . . . . . . . . . .168.2 6.6 170.5 58.8
Johnson Matthey . .1960.0 -13.0 2119.0 1460.0
Victrex . . . . . . . . . . .1436.0 -8.0 1525.0 1049.0
Price Chg High Low
Bellway . . . . . . . . . . . .697.5 -11.5 753.5 511.0
Berkeley Group Ho .1166.0 0.0 1170.0 763.5
Bovis Homes Group .423.1 -1.8 464.7 326.6
Persimmon . . . . . . . .467.0 3.5 502.5 336.5
Reckitt Benckiser . .3336.0 -14.0 3648.0 3015.0
Redrow . . . . . . . . . . . .117.4 -2.5 139.0 97.5
Taylor Wimpey . . . . . . .37.0 0.0 43.3 22.3
Bodycote . . . . . . . . . .351.0 2.6 397.7 185.0
Charter Internati . . . .563.5 13.5 853.5 538.5
Fenner . . . . . . . . . . . .383.8 3.8 393.8 192.2
IMI . . . . . . . . . . . . . . .1007.0 -10.6 1112.0 657.5
Melrose . . . . . . . . . . .340.0 -2.0 355.5 203.4
Northgate . . . . . . . . . .305.0 5.4 346.7 152.3
Rotork . . . . . . . . . . .1600.0 -1.0 1895.0 1254.0
Spirax-Sarco Engi . .1900.0 -4.0 2063.0 1346.0
Weir Group . . . . . . .2078.0 23.6 2084.0 1024.0
Ferrexpo . . . . . . . . . . .438.0 3.0 499.0 235.0
Talvivaara Mining . . .415.6 1.6 622.0 352.3
BBAAviation . . . . . . .208.9 -0.2 240.8 175.0
Stobart Group Ltd . . .140.8 -0.1 163.6 124.1
Admiral Group . . . . .1666.0 -12.0 1754.0 1390.0
Haynes Publishing . .252.5 6.5 262.5 202.5
Huntsworth . . . . . . . . .73.5 -0.3 87.5 65.0
Informa . . . . . . . . . . . .419.9 1.1 461.1 342.1
ITE Group . . . . . . . . . .214.6 -3.8 258.2 136.2
ITV . . . . . . . . . . . . . . . . .66.6 -0.7 93.5 48.3
Johnston Press . . . . . . .5.4 0.2 20.0 4.4
MecomGroup . . . . . .225.0 -1.5 310.0 162.0
Moneysupermarket. .103.8 2.8 109.3 64.6
Pearson . . . . . . . . . .1142.0 3.0 1175.0 864.0
Reed Elsevier . . . . . .537.5 0.0 590.5 490.2
Rightmove . . . . . . . .1129.0 24.0 1142.0 596.5
STV Group . . . . . . . . .127.0 -2.8 168.0 66.0
Tarsus Group . . . . . .151.0 -3.0 165.0 112.5
Trinity Mirror . . . . . . . .42.0 1.0 124.3 40.5
United Business M . .520.0 0.5 725.0 483.8
UTV Media . . . . . . . . .127.3 3.3 151.0 106.0
Wilmington Group . . .119.0 0.0 183.0 114.0
WPP . . . . . . . . . . . . . .753.5 10.5 846.5 614.5
Yell Group . . . . . . . . . . .5.7 0.0 30.2 5.6
African Barrick G . . .405.0 5.0 638.0 393.2
Anglo American . . .2915.0 0.0 3437.0 2254.0
Anglo Pacific Gro . . .300.0 3.5 369.3 249.0
Antofagasta . . . . . . .1281.0 9.0 1634.0 761.0
Aquarius Platinum . .301.5 -2.0 419.0 227.1
BHP Billiton . . . . . . .2317.5 2.5 2631.5 1684.5
Amlin . . . . . . . . . . . . .406.4 -2.9 433.0 375.3
Beazley . . . . . . . . . . . .121.8 -0.2 139.2 109.1
Catlin Group Ltd. . . . .411.7 -7.3 421.4 325.0
Hiscox Ltd. . . . . . . . . .418.8 -2.7 425.0 336.1
Jardine Lloyd Tho . . .675.0 -3.5 709.0 521.5
Lancashire Holdin . . .642.5 -7.0 660.0 491.1
RSA Insurance Gro . .132.2 -0.1 143.5 117.9
Aviva . . . . . . . . . . . . . .429.2 2.1 477.9 305.8
Legal & General G . . .113.3 -0.4 123.8 75.6
Old Mutual . . . . . . . . .127.3 -0.6 145.2 102.0
Phoenix Group Hol . .612.5 -2.0 758.0 584.5
Prudential . . . . . . . . .710.0 -5.0 777.0 489.2
Resolution Ltd. . . . . .299.0 -3.2 316.1 211.3
St James's Place . . . .329.4 -2.4 360.4 204.2
Standard Life . . . . . . .205.8 0.1 244.7 173.0
4Imprint Group . . . . .265.0 0.0 295.0 195.0
Aegis Group . . . . . . .152.5 3.9 153.3 103.6
Bloomsbury Publis . .127.3 2.5 138.0 108.5
British Sky Broad . . .830.5 1.0 849.0 693.5
Centaur Media . . . . . . .53.9 0.9 73.0 45.8
Chime Communicati .282.0 -3.5 298.5 158.0
Creston . . . . . . . . . . . .114.8 -5.3 121.0 78.5
Daily Mail and Ge . . .444.7 0.7 594.5 433.0
Euromoney Institu . .636.5 4.5 736.0 575.5
Future . . . . . . . . . . . . . .17.9 0.1 30.0 15.8
Centamin Egypt Lt . .124.1 3.4 197.1 114.5
Eurasian Natural . . .732.5 -9.6 1125.0 716.0
Fresnillo . . . . . . . . . .1380.0 12.0 1682.0 950.0
GemDiamonds Ltd. .234.9 -5.1 306.0 186.3
Hochschild Mining . .439.6 -3.0 680.0 289.4
Kazakhmys . . . . . . .1300.0 2.7 1671.0 965.0
Kenmare Resources . .53.5 3.6 53.8 11.5
Lonmin . . . . . . . . . . .1423.0 -2.0 1983.0 1355.0
New World Resourc .899.0 -21.0 1060.0 875.5
Petropavlovsk . . . . . .739.5 10.0 1330.0 678.0
Randgold Resource 4928.0 145.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4262.0 44.0 4712.0 2880.5
Vedanta Resources 1967.0 -4.6 2583.0 1839.0
Xstrata . . . . . . . . . . .1289.5 4.5 1550.0 845.8
Inmarsat . . . . . . . . . . .581.5 -14.0 756.5 564.5
Vodafone Group . . . .164.4 0.4 181.9 136.5
Genesis Emerging . .510.0 -0.5 568.0 439.1
Afren . . . . . . . . . . . . . .158.8 -0.7 171.2 79.2
BG Group . . . . . . . . .1330.5 -15.5 1564.5 1002.0
BP . . . . . . . . . . . . . . . .445.3 2.2 509.0 302.9
Cairn Energy . . . . . . .397.0 -5.0 493.2 366.0
EnQuest . . . . . . . . . . .124.0 0.9 158.5 96.0
Essar Energy . . . . . .411.7 -5.6 589.5 387.1
Exillon Energy . . . . . .416.0 0.9 469.7 166.5
Heritage Oil . . . . . . . .216.5 0.5 486.0 215.5
JKX Oil & Gas . . . . . .263.9 -0.1 335.1 228.0
Premier Oil . . . . . . . . .469.7 -2.3 535.0 292.8
Royal Dutch Shell . .2160.0 1.5 2326.5 1624.0
Royal Dutch Shell . .2168.0 -0.5 2336.0 1554.0
Salamander Energy .259.3 -0.7 317.6 210.0
Soco Internationa . . .365.0 -1.6 484.2 292.0
Tullow Oil . . . . . . . . .1259.0 -15.0 1493.0 991.5
Amec . . . . . . . . . . . .1099.0 -10.3 1251.0 805.5
Hunting . . . . . . . . . . .730.0 -12.5 817.0 439.4
John Wood Group . .632.0 -2.5 706.0 308.4
Lamprell . . . . . . . . . . .345.1 8.9 364.4 186.3
Petrofac Ltd. . . . . . .1520.0 -24.0 1685.0 1141.0
Burberry Group . . . .1392.0 36.4 1402.0 739.5
PZ Cussons . . . . . . . .354.3 0.7 409.0 317.9
Supergroup . . . . . . . .873.0 -35.0 1820.0 696.0
AstraZeneca . . . . . .3046.0 21.0 3385.0 2801.5
BTG . . . . . . . . . . . . . .273.6 2.5 282.5 191.0
Genus . . . . . . . . . . . .1000.0 -2.0 1046.0 704.5
GlaxoSmithKline . . .1281.0 6.0 1348.5 1095.0
Hikma Pharmaceuti .766.0 2.0 900.0 687.5
Shire Plc . . . . . . . . . .1847.0 2.0 1961.0 1341.0
Capital & Countie . . .187.8 0.8 189.0 104.1
Daejan Holdings . . .2750.0 5.0 2919.0 2251.0
F&C Commercial Pr .106.0 0.1 108.0 88.0
Grainger . . . . . . . . . . .121.6 -0.4 128.2 86.3
London & Stamford .131.2 -0.3 140.0 110.3
Savills . . . . . . . . . . . . .392.1 0.1 427.1 273.1
St. Modwen Proper . .184.0 -2.1 192.0 135.4
UK Commercial Pro . .81.4 0.3 85.5 74.3
Unite Group . . . . . . . .213.8 -1.9 229.8 170.5
Big Yellow Group . . .311.5 3.2 353.3 287.1
British Land Co . . . . .592.0 8.3 604.5 429.0
Capital Shopping . . .385.7 0.1 424.8 301.3
Derwent London . . .1799.0 -11.0 1871.0 1208.0
Great Portland Es . . .425.5 -1.1 442.2 281.0
Hammerson . . . . . . . .472.6 1.0 486.3 336.3
Hansteen Holdings . . .87.3 -0.3 89.3 59.4
Land Securities G . . .849.0 -5.0 859.0 545.0
SEGRO . . . . . . . . . . . .312.3 0.1 331.3 250.2
Shaftesbury . . . . . . . .519.0 -1.5 539.0 349.3
Autonomy Corporat 1698.0 -43.0 1943.0 1271.0
Aveva Group . . . . . .1662.0 -38.0 1743.0 1127.0
Computacenter . . . . .455.6 4.9 489.7 260.0
Fidessa Group . . . . .1937.0 -18.0 1971.0 1300.0
Invensys . . . . . . . . . . .317.0 -0.5 364.3 230.2
Kofax . . . . . . . . . . . . .465.0 -5.0 535.0 231.0
Logica . . . . . . . . . . . .130.4 -1.1 147.2 101.7
Micro Focus Inter . . .354.0 -6.1 541.5 276.0
Misys . . . . . . . . . . . . .410.4 -8.5 418.9 232.8
Sage Group . . . . . . . .282.0 -1.7 302.0 222.7
SDL . . . . . . . . . . . . . . .701.0 15.5 711.5 450.0
Telecity Group . . . . . .543.5 -2.5 548.5 377.0
Aggreko . . . . . . . . . .1862.0 -11.8 1935.0 1346.0
Ashtead Group . . . . .167.4 -3.1 207.9 77.0
Atkins (WS) . . . . . . . .738.5 -10.5 820.0 650.0
Babcock Internati . . .681.0 -4.5 704.5 492.8
Berendsen . . . . . . . . .485.0 -6.1 519.5 360.2
Bunzl . . . . . . . . . . . . .753.0 1.5 783.0 658.0
Capita Group . . . . . . .724.5 -15.0 794.5 635.5
Carillion . . . . . . . . . . .368.8 -2.9 403.2 291.2
De La Rue . . . . . . . . .759.5 9.0 962.5 549.5
Electrocomponents .266.2 -8.0 294.9 205.7
Experian . . . . . . . . . . .761.0 -13.1 819.0 578.0
Filtrona PLC . . . . . . . .367.5 5.0 385.5 209.2
G4S . . . . . . . . . . . . . . .282.4 -0.9 291.0 237.7
Hays . . . . . . . . . . . . . .101.2 -0.8 133.6 88.4
Homeserve . . . . . . . .520.5 -1.5 532.0 398.6
Howden Joinery Gr . .105.7 0.0 127.5 56.8
Intertek Group . . . . .1941.0 7.0 2148.0 1437.0
Michael Page Inte . . .527.5 -0.5 567.0 349.4
Mitie Group . . . . . . . .228.4 -6.2 242.5 188.7
Premier Farnell . . . . .238.2 -1.1 308.8 210.2
Regus . . . . . . . . . . . . .108.0 -0.4 119.0 66.1
Rentokil Initial . . . . . . .94.0 -1.1 120.9 84.3
RPS Group . . . . . . . . .240.6 1.6 251.4 169.8
Serco Group . . . . . . .562.0 -3.0 633.0 529.5
Shanks Group . . . . . .122.8 -1.6 130.9 96.5
SIG . . . . . . . . . . . . . . .137.5 -1.0 153.5 90.7
SThree . . . . . . . . . . . .377.2 -1.8 447.6 231.1
Travis Perkins . . . . . .994.0 -17.0 1127.0 709.0
Wolseley . . . . . . . . .1972.0 7.0 2261.0 1223.0
ARM Holdings . . . . . .568.0 0.5 651.0 270.5
CSR . . . . . . . . . . . . . .306.0 -1.5 447.0 280.9
Imagination Techn . .414.5 -18.5 502.0 273.0
Pace . . . . . . . . . . . . . .108.3 1.6 231.8 93.0
Spirent Communica .149.0 -1.9 160.3 107.6
British American . .2690.0 22.7 2745.5 2091.0
Imperial Tobacco . .2030.0 30.0 2231.0 1784.0
Avis Europe . . . . . . . .310.3 -0.2 311.5 184.0
Betfair Group . . . . . . .774.5 -26.5 1550.0 753.0
Bwin.party Digita . . .127.0 -5.0 309.5 126.5
Carnival . . . . . . . . . .2318.0 -6.0 3153.0 2037.0
Compass Group . . . .595.5 4.5 598.5 501.0
Domino's Pizza UK . .383.6 -1.4 586.0 373.9
easyJet . . . . . . . . . . . .351.4 -3.0 479.0 322.3
Enterprise Inns . . . . . .67.7 0.8 122.7 66.0
FirstGroup . . . . . . . . .328.2 -1.2 412.6 311.3
Go-Ahead Group . . .1512.0 -4.0 1520.0 1042.0
Greene King . . . . . . .488.1 1.3 502.5 392.1
InterContinental . . .1206.0 9.0 1435.0 982.0
International Con . . .242.5 0.9 305.0 186.5
JD Wetherspoon . . . .436.6 3.2 468.3 386.5
Ladbrokes . . . . . . . . .146.5 -1.2 152.2 122.7
Marston's . . . . . . . . . . .99.4 0.3 117.1 90.4
Millennium& Copt . .490.1 4.0 600.5 392.0
Mitchells & Butle . . . .316.3 0.0 361.0 274.0
National Express . . .251.5 -0.3 270.2 213.4
Punch Taverns . . . . . .70.7 -0.2 90.4 58.0
Rank Group . . . . . . . .150.5 0.5 153.0 94.8
Restaurant Group . . .291.2 2.5 335.0 208.2
Stagecoach Group . .245.8 1.4 249.8 160.7
Thomas Cook Group 129.5 -1.0 204.8 129.4
TUI Travel . . . . . . . . . .225.0 3.6 271.9 190.0
Whitbread . . . . . . . .1572.0 -15.0 1887.0 1361.0
WilliamHill . . . . . . . . .219.0 2.2 223.5 155.5
Abcam . . . . . . . . . . . .410.8 -1.5 428.5 241.0
Albemarle & Bond . .339.0 9.0 352.0 218.0
Amerisur Resource . .25.0 -0.8 29.0 11.5
Andor Technology . .659.0 29.0 660.0 253.0
Archipelago Resou . . .59.0 2.0 66.8 32.3
ASOS . . . . . . . . . . . .2422.0 0.0 2468.0 830.0
Aurelian Oil & Ga . . . .54.3 0.0 92.0 35.8
Avanti Communicat .339.0 -15.4 735.0 330.0
Avocet Mining . . . . . .186.3 5.8 253.5 112.0
Blinkx . . . . . . . . . . . . .121.5 3.5 148.8 33.5
Borders & Souther . . .53.0 0.5 93.0 52.3
BowLeven . . . . . . . . .318.0 -1.3 398.0 126.3
Brooks Macdonald 1326.0 -4.0 1372.5 767.5
Caledon Resources .109.0 0.5 109.0 23.3
Conygar Investmen .110.5 -2.3 120.0 101.3
Cove Energy . . . . . . . .89.0 2.0 112.8 47.5
Daisy Group . . . . . . . .115.0 0.0 118.3 86.0
EMIS Group . . . . . . . .531.8 11.8 555.5 303.5
Encore Oil . . . . . . . . . .60.5 0.3 151.5 34.0
Faroe Petroleum . . . .157.5 0.5 218.3 115.0
Gulfsands Petrole . . .232.0 -2.8 401.5 230.5
GWPharmaceutical .125.0 0.5 130.0 83.0
Hamworthy . . . . . . . .623.0 -4.5 684.5 297.5
Hargreaves Servic .1040.0 20.0 1051.0 556.5
Healthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic . .945.0 0.0 980.0 604.0
ImpellamGroup . . . .359.9 -5.1 387.5 84.0
James Halstead . . . . .455.4 -14.6 485.0 306.0
Kalahari Minerals . . .231.5 -5.0 301.0 142.0
London Mining . . . . .337.0 -1.3 436.5 211.0
Lupus Capital . . . . . .110.3 -1.8 150.0 72.0
M. P. Evans Group . .440.0 14.8 500.5 334.0
Majestic Wine . . . . . .450.0 0.8 470.3 293.0
May Gurney Integr . .271.8 -2.0 285.0 177.0
Monitise . . . . . . . . . . . .26.8 -0.5 29.5 17.8
Mulberry Group . . . .1516.0 -32.0 1610.0 207.5
Nanoco Group . . . . . . .81.8 0.3 115.8 68.0
Nautical Petroleu . . .310.3 2.3 547.0 128.0
Nichols . . . . . . . . . . . .557.8 7.3 578.0 390.0
Numis Corporation . .101.4 -1.6 146.5 94.0
Pan African Resou . . .11.0 0.5 12.3 5.9
Patagonia Gold . . . . . .48.0 -0.3 59.3 12.5
Prezzo . . . . . . . . . . . . .69.0 0.0 71.5 37.8
Pursuit Dynamics . . .321.3 24.3 700.0 196.0
Rockhopper Explor .275.0 2.3 510.0 202.5
RWS Holdings . . . . . .450.0 10.0 472.0 239.0
Songbird Estates . . .156.5 -0.5 160.3 135.0
Valiant Petroleum . . .594.5 4.5 761.5 504.0
Young & Co's Brew . .670.0 20.0 685.0 510.0
Dixons Retail . . . . . . .16.5 7.7
Kenmare Resources . .53.5 7.3
Man Group . . . . . . . . .241.8 4.9
Elementis . . . . . . . . . .168.2 4.1
Randgold Resources4928.0 3.0
Centamin Egypt Ltd .124.1 2.8
Moneysupermarket.c 103.8 2.8
Burberry Group . . . .1392.0 2.7
Lamprell . . . . . . . . . . .345.1 2.7
Aegis Group . . . . . . .152.5 2.6
Imagination Techno .414.5 -4.3
Supergroup . . . . . . . .873.0 -3.9
Bwin.party Digital . . .127.0 -3.8
United Utilities G . . . .575.0 -3.4
Betfair Group . . . . . . .774.5 -3.3
Severn Trent . . . . . .1398.0 -3.1
Electrocomponents .266.2 -2.9
Dairy Crest Group . . .366.8 -2.8
Mitie Group . . . . . . . .228.4 -2.6
Barclays . . . . . . . . . . .252.3 -2.6
Risers Fallers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
[email protected]
AUTOMOBILES & PARTS
BANKS
ALTERNATIVE ENERGY
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 2.500 11 . . . . .307.41 0.00 310.0 307.4
Tsy 3.250 11 . . . . .101.26 0.00 103.8 101.3
Tsy 9.000 11 . . . . .100.44 -0.03 108.8 100.4
Tsy 9.000 12 . . . .109.22 0.00 116.7 108.6
Tsy 5.000 12 . . . . .103.11 0.01 107.2 103.1
Tsy 5.250 12 . . . .104.39 0.03 108.5 104.4
Tsy 4.500 13 . . . .106.33 0.06 109.2 105.8
Tsy 2.500 13 . . . .286.93 0.00 287.7 274.9
Tsy 8.000 13 . . . . .115.91 0.07 121.3 115.8
Tsy 5.000 14 . . . . .111.56 0.15 114.1 109.2
Tsy 7.750 15 . . . .103.75 0.00 110.8 76.0
Tsy 8.000 15 . . . .126.76 0.21 131.6 123.7
Tsy 4.750 15 . . . . .112.28 0.21 114.7 108.6
Tsy 4.000 16 . . . .109.53 0.23 111.4 104.9
Tsy 2.500 16 . . . .332.18 -0.06 334.1 304.4
Tsy 12.000 17 . . .126.25 0.00 185.9 126.0
Tsy 1.250 17 . . . . .111.42 -0.04 112.1 104.9
Tsy 8.750 17 . . . .136.50 0.18 142.2 132.9
Tsy 5.000 18 . . . . .115.25 0.22 117.6 109.7
Tsy 4.500 19 . . . . .111.48 0.23 113.8 105.4
Tsy 3.750 19 . . . .105.64 0.27 107.7 99.4
Tsy 2.500 20 . . . .339.90 0.03 341.2 303.8
Tsy 4.750 20 . . . . .112.85 0.27 115.9 106.6
Tsy 8.000 21 . . . .141.48 0.28 147.1 133.8
Tsy 4.000 22 . . . .105.01 0.24 108.4 99.0
Tsy 1.875 22 . . . . .116.92 -0.06 117.8 108.5
Tsy 2.500 24 . . . .296.84 -0.06 298.9 262.1
Tsy 5.000 25 . . . . .113.39 0.19 118.5 107.4
Tsy 4.250 27 . . . .103.46 0.10 108.8 97.9
Tsy 1.250 27 . . . .109.91 -0.11 111.2 100.5
Tsy 6.000 28 . . . .125.62 0.09 132.7 119.5
Tsy 4.750 30 . . . .108.91 0.06 115.0 103.0
Tsy 4.125 30 . . . .281.71 -0.17 283.9 248.7
Tsy 4.250 32 . . . .101.86 0.06 107.8 96.0
Tsy 4.250 36 . . . .101.04 0.02 107.4 95.0
Tsy 4.750 38 . . . .109.51 -0.01 116.5 102.8
Tsy 4.500 42 . . . .106.10 0.00 112.8 98.9
% %
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Wealth Management | Markets
24 CITYA.M. 23 JUNE 2011
FIVE TIPS FOR
BECOMING A
SAVVY TRADER
JAMIE JEMMESON
SENIOR TRADER, GLOBAL REACH
A
TUC survey showed that a quarter
of all long-term relationships in
the UK started at work. Hardly sur-
prising, given most of our time is
spent there. But this happens against a
backdrop of employers’ growing restric-
tions on office romances. While it’s under-
standable that employers are fearful of
the consequences and the impact on their
business, employees are still entitled to a
private life and there is a line to be drawn
between the two interests. An employer
can’t sack you for simply having a rela-
tionship with a colleague, but they can
get you on other things. And since navi-
gating that path is far from easy, we have
put together this guide to help you steer
clear of the pitfalls.
LABEL IT
It’s that dreaded label thing. Feared by
men and women across the globe. You
have to define the relationship you have
with your colleague if you’re going to pro-
tect yourself from any potential negative
consequences. Adrian Crawford, an
employment law specialist and partner at
law firm Kingsley Napley, says: “If it was
just a one night stand after the office
party then you don’t need to panic. It all
depends on whether or not you intend to
keep seeing them.”
CONFLICT OF INTEREST
If the relationship has the potential to be
more serious, then you need to consider
at what point you need to tell your superi-
ors. Crawford says this is far more impor-
tant if there’s a conflict of interest: “If a
Chinese wall is broken. For example, one
person is front office and the other back
office staff, then informing your line man-
ager is very important. In theory it’s a
sackable offence.” For the majority,
however, discretion in the early stages
might be the wisest move. Bethany
Whittle met her fiance at work: “I would
definitely recommend keeping the rela-
tionship on the down-low. The manage-
ment will be nervous that the
relationship will turn sour and it’ll create
a bad atmosphere.”
KNOW YOUR RIGHTS
In big City firms your rights and any
restriction placed on you will usually be
spelt out in your contract or in the staff
handbook. Be sure to check these, because
your employer will hold you to it.
Crawford says these conditions are bind-
ing and while you can’t get fired without
being formally disciplined first, you don’t
need to be formally disciplined many
times before you’re out.
RULE OUT THE NAUGHTINESS
Naughtiness in the stock cupboard will
count as gross misconduct that could
have you packing up your things almost
instantly. But it’s best advised to refrain
from any affection, even doe-eyes and
sweet nothings, because anything that
makes your colleagues feel
uncomfortable could have you called into
the boss’s office to be cautioned.
YOUR EMPLOYER’S REACTION
The complexity of employment law gives
you a degree of protection. The nuances of
policy can be interpreted in multiple
ways, so if you feel you’re being treated
unfairly, an employment laywer or your
union representative will be able to help.
Employers choosing to move one half of
the couple into another role or depart-
ment often causes problems. The trick to
resolving this situation is to work out
where you stand legally. If you have been
employed to conduct a particular role for
a company rather than by the company at
large, you may have a case against your
employer.
Beware: frisky business
CAREERS NEWS | IN BRIEF
BUREAUCRACY BARRIER TO INNOVATION
Three quarters of business executives think
bureaucracy within organisations is the biggest
barrier to innovation, according to a survey by
London Business School. When polled, 77 per
cent of the business audience said that improv-
ing incentives, reducing red tape and promoting
greater flexibility in the business environment
was key to stimulating entrepreneurship. Sir
Andrew Likierman of the London Business
School said: “Entrepreneurship and innovation
are the key drivers of growth for both business
and the economy in normal times. They are cru-
cial right now in creating jobs to help economies
emerge from the financial crisis. The poll also
found that two-thirds said there should be
greater rewards for innovative behaviour.
NATIONAL FEAR OF PUBLIC SPEAKING
Despite the fact that three quarters of us
believe that good presentation skills positive-
ly impact on career success, nearly half of us
(45 per cent) hate public speaking with a
passion and fail to prepare properly for a
presentation. Although 29 per cent of us get
“slide envy” when we see someone with bet-
ter looking PowerPoint slides than us, this
feeling of jealousy isn’t enough for us to
recognise pre-planning as a worthwhile
investment with half of us (47 per cent)
admitting to doing minimal research and
then relying on our instincts. More than two
thirds (67 per cent) of those surveyed said
that presenting or public speaking was
among their top ten fears.
ACCOUNTANTS SEE RED ON NEW UNI FEES
The £88,700 opportunity cost of higher edu-
cation means only 40 per cent of accountancy
and finance professionals would have decided
to go to university today. If faced with today’s
costs, only 40 per cent of accountancy and
finance professionals would have gone to uni-
versity. Currently, new accountancy and
finance graduates earn an average salary of
just under £25,000, which means it would
take more than three and a half years to earn
enough to cover the cost of their higher edu-
cation. Tim Hedger of Marks Sattin says:
“People considering university should bear in
mind not only the price of tuition and the debt
they will take on, but also the financial loss
from not working for three years.”
T
HERE are lots of opportunities to become a
foreign exchange (FX) trader, especially with the
increased use of trading portals and spread bet-
ting. Whether it’s as a private trader using your
own funds or working for a trading house, the rules for
success and promotion are the same. The key to a suc-
cessful career in trading is to be disciplined and method-
ical, and to follow certain rules.
1. UNDERSTAND WHAT TYPE OF TRADER YOU ARE
The first thing you must do is identify what type of
trader you are; this can be affected by the nature of the
market, your resources and your psychology. You must
be able to recognise if you are somebody that can be
part of the short term/day trade or if your personal
characteristics are more suited to medium to long term
trading. If you’re a short term trader you’ve got to be
able to handle the day to day torment and pressure of
watching the market. If you’re a medium to long term
trader you have to be patient and able to handle the
potential financial cost of being wrong.
2. APPETITE FOR RISK AND MONEY MANAGEMENT
Money management is key for longevity in the trading
career. As a rule of thumb you should never risk more
than 10 percent of your trading account. Also the
placement of stop losses (a level that automatically
cuts your losing position) is important in both money
and risk management.
3. UNDERSTANDING BOTH FUNDAMENTAL AND
TECHNICAL ANALYSIS
As a technical trader, I learned that the price encom-
passes all the current information available. While some
technical traders ignore fundamental data, I believe
that one of the key aspects of being successful is to
understand both forms of analysis. There’s no use iden-
tifying key levels or entry points on your charts if they
coincide with key data releases such as central bank
meetings or nonfarm payrolls. If you ignore these you
may find your trade stopped out very quickly.
When using technical analysis, don’t just use one
method for identifying trends, entry points and stop
losses. Use different forms of analysis, time frames and
confirmation tools to add weight to your decisions. If
your analysis shows contradicting views, be patient,
step aside and wait for a further signal.
4. DON’T JUST FOCUS ON THE FX MARKETS
The FX market is the most liquid market in the world
and doesn’t have strict opening and closing times. As a
result of this, it correlates with other markets such as
the risk trade. You can sometimes get an early handle
on how the market will trade by examining the price
action of other markets overnight.
5. ADMIT WHEN YOU’RE WRONG
Einstein once said “Anyone who has never made a mis-
take has never tried anything new”. There is nothing
wrong with making a mistake as long as you learn from
it. Sometimes in trading you have just got to cut your
losses and admit that you’re wrong. Reflect on why you
made that decision. Were there mixed signals at your
point of entry, did you consider the economic calendar,
did you take your eye off the ball? Possibly you were
too greedy when the trade was in profit or maybe you
were just unlucky? Don’t chase the market; if you get
stopped out, you’re wrong for a reason, this is no time
to be macho and make the same mistake twice.
Jamie is a senior trader at Global Reach Partners..
Jamie has a degree in economics and is also an MSTA
qualified technical analyst. He has over four years expe-
rience within the FX markets.
25 CITYA.M. 23 JUNE 2011
Business Features | Careers
Relationships at work should be approached
with caution, but if it is too late for that advice,
Donata Huggins finds out what you should do
Someone is definitely going to
get a disciplinary
Picture: REX
HOW TO BE A WOMAN
BY CAITLIN MORAN
Ebury, £11.99
hhiii
CAITLIN Moran thinks porn is great. She
can’t understand what feminists (not her
brand of barstool raver feminist, with mad
hair, no problem talking about her geni-
talia and a bevvy of rock star mates) object
to. Seemingly uninterested in writing
about the fact that the majority of female
porn actresses have been victims of child
sexual abuse and that the industry is a
pretty ropey environment for its
actresses, the main problem with
porn, says Moran, is that there
aren’t enough women having
orgasms in it. It seems a tip-of-ice-
berg viewpoint, really.
Moran has a cultish following
for her music journalism and
her long stint writing humorous
features about TV and celebri-
ties in the Times. People go
mad for her guileless, funny
prose, hailing her turns of
phrase as the best in the land.
The result has made her lazy.
This book, part memoir, “part
rant”, reads not like a feminist manifesto
for the modern woman – of which Moran
is quite right, we are in dire need – but like
a narcissistic ramble through the life, times
and bodily explorations of Caitlin Moran.
There are a lot of capital letters. A lot of
exclamation marks. A lot of jokes inter-
rupting clauses. Moran states early on that
what she wants us to do is to point our fin-
gers at the things that stand in our way
and give a bit “HA!” But, having read
superb, fact and idea-packed books about
femininism by feminists Ariel Levy and
Natasha Walter, by comparison Moran
seems embarassed about feminism, not
proud as she claims to be. For if she
believed in the integrity of the cause, why
should she need to cloak it all behind goofy
names for female body parts and hilarious
tales of masturbation and periods? The
issue now is not making people less
squeamish about childbirth (does anyone
think it’s a walk in the park?!) but about
getting women to value their brains over
the number of inches on their new sky-
scraper heel.
Yes, Moran was 16 stone and grew up in a
council house in Wolverhampton with
seven younger siblings. It’s good material.
But it has little to do with the kind of femi-
nism that will change the world. Just ask
Germaine. Zoe Strimpel
A wave of books shows we are
cottoning on to the importance
of numbers, says Philip Salter
Below: calculators are
the latest must-have
accessory, if a slew of
maths books are any-
thing to go by.
Right: Caitlin Moran,
author of feminist
book How to Be a
Woman.
Picture: Martin
Argles/Guardian
News & Media Ltd
2011
Lifestyle| Books
26 CITYA.M. 23 JUNE 2011
OUT OF OFFICE
TIMOTHY BARBER
ROSENCRANTZ & GUILDENSTERN ARE DEAD
The playwright Tom Stoppard made his name
40 years ago with this absurdist retelling of
Hamlet from the point of view of his hapless
student friends, here revived under the direc-
tion of Tom Stoppard. Samuel Barnett – known
for his role as one of the classmates in the
History Boys – and Jamie Parker star as the
confused young Danes, all at sea as the weird
events at Elsinor play out around them. Until
20 Aug, Theatre Royal Haymarket, SW1Y 4HT.
Tickets £17-£18. www.trh.co.uk
MASTERPIECE FAIR
Last year’s debut fair, a celebra-
tion of art, antiques and all kinds
of beautiful things, caused quite a
splash. This year’s fair will sparkle
too, with highlights including fine
watches from Switzerland’s oldest
still-running brand, Vacheron
Constantin (pictured) and a two-
seater Spitfire fighter plane. 30
June-5 July, Royal Hospital Chelsea,
SW3. www.masterpiecefair.com
SYLVIE GUILLEM
Sylvie Guillem, one of the world’s most
famous dancers, is returning to Sadler’s
Wells early next month performing a
programme devised by three of today’s
most important choreographers, Mats Ek,
William Forsythe and Fiji Kylian. Guillem will
add an extra performance on 7 July of her
show 6,000 Miles Away, titled Hope for Japan,
the proceeds from which will go to the Japan
Tsunami Appeal. 5-9 July, Sadlers Wells.
Tickets £10-£45 from www.sadlerswells.com
Stoppard’s famous
debut lives again.
Maths: not just for geeks
VEXED IN THE CITY
SOLVING YOUR
LOVE & LIFE
PROBLEMS
I want to break
up, but we’re
going away...
DEAR VEXED: I’m thinking of breaking
up with my girlfriend but we’ve got a hol-
iday booked in August. Should I wait to
break up after the holiday or do it before
and face the consequences? We paid
quite a lot for it. Neil, distressed debt, 29
A
friend of mine was recently going
through a bad patch with his girlfriend.
“Bad timing, because we’ve got a holiday
coming up and I just know it’ll be all love-
ly while we’re away and I’ll forget the issues,” he
moaned to me.
The issue of what to do about the big fat
chunk of time you booked together, when the
idea of frolicking skimpily clad under the sun and
spending two weeks just the two of you sound-
ed like heaven on a stick, is one of the trickiest
when times are tough. Deciding what to do is a
balancing act of money, awkwardness and the
potential for relationship-salvation.
August is a reasonable time away. You could
get out of it now and maybe get some money
back. Or one of you could go and take a friend
instead (the polite thing would be to let that be
her, especially as she’s the one who is going to be
dumped).
Making the final decision all depends on how
drastic you’re feeling. If the very thought of
going away with your girlfriend makes you feel
physically sick, you need to end it now and deal
with the fallout. Why be miserable all summer
when you could be single and free?
However, if you are more mixed about it, per-
haps consider using the holiday as a make or
break. After all, it takes two to tango and if you
bring up your concerns beforehand, you can try
to work them out while you’re away, without the
stresses and distractions of the daily grind.
There’s one other reason to hold fire until
after the holiday – it’s her holiday too, and it is an
act of destruction to ruin it. If you’ve pooled all
your resources into the trip of a lifetime and
your girlfriend has been silly with excitement
about the safari or whatever, maybe hold back
and try to have a good time.
But to be fully realistic, I think a holiday full of
private doubt is not going to be a happy one. If
your girlfriend has a shred of intuition, it won’t
be good for her either. And it’s a particularly
unpleasant type of badness – a dark, deep
malaise and anxiety that will kill any enjoyment
of margaritas and pina coladas.
And the temptation might be to drink your
way through it – this isn’t going to help either
your relationship in the long term or your ability
to see clearly. I’ve tried to be reasonable in my
advice and not advise haste, but my gut tells me:
get out now. It’ll be worth it.
[email protected]
F
OR far too many people, maths is asso-
ciated with memories of torturous
classes from their childhood – the
slow walk towards the blackboard to
undertake the intricacy of long division.
Yet there are some really good books on
the market that can make maths appeal-
ing, even to the most innumerate. Indeed,
the sudden rush of maths-made-fun books
would imply that people are waking up to
the scope and wonder of the number
world.
For those who wake up with cold sweats
reliving their maths lessons, Lawrence
Potter’s Mathematics Minus Fear (Penguin,
£9.99) – which has just been reprinted – is
the place to face up to the terror. The style
is fluent and interlaced with puzzles
designed to slowly build the reader’s confi-
dence. It is the perfect combination of prac-
tical maths advice and irreverent facts:
both teaching readers how to work out VAT
and why weather forecasts are wrong.
Provided the reader makes it through to
the end – and is able to remember half of
what they have read – they will have a bet-
ter grasp of numbers than most of the UK.
For those that aren’t scared stiff by num-
bers, but want to learn more, Alex’s Bellos’s
Adventures in Numberland (Bloomsbury,
£18.99) will enthuse. Alex Bellos is to num-
bers what Brian Cox is to cosmology.
Starting with chapter zero, all twelve chap-
ters are a fascinating exploration of the
wonders of maths. A warning though –
there is a risk that you will end up telling a
room full of people that you are convinced
by the argument for using base 12 instead
of base 10, which will likely lead to you not
being invited back. Bellos is also the author
of a book that needed to be written, if only
for the title: Here’s Looking at Euclid.
Even if you want to escape maths, you
may not be able to. Mathematics of Life by
Ian Stewart (Profile, £20) argues that it will
underpin future discoveries in biology, a
science most remembered by adults for the
dissection of frogs. Many other areas of
life are also being put into the
mathematicians’ notebook.
Innumeracy is on the rise.
These books show why we
shouldn’t give up hope. In the
same way that adults often
take an interest in history
once beyond the class-
room, there is no reason
more shouldn’t be study-
ing mathematics. The
history, peculiarities
and practice of mathe-
matics offer something
for anyone with a
smidgen of intellectual
curiosity.
T
HERE are restaurants that open with
whimpers and others that open with
bangs. Ex-Ramsay super-protégé Jason
Atherton’s new eaterie, Pollen Street
Social, was always going to open with a
bang – and, two months in, continues with
a clamour. The clamour is not of chaos,
plates smashing or chefs shouting, but of
the throngs trying to get in. Last I checked,
bookings were being taken three months in
advance.
When Atherton left Maze and Maze Grill,
his swanky Mayfair duo beloved of the jet
set, he bowed out of the Ramsay family. Not
acrimoniously, unlike other of the ex-
Ramsay chefs, but boy was he ready.
Actually, it’s remarkable his first high-pro-
file solo venture comes only now after years
as the wonderkid of London food.
Pollen Street Social’s main challenge was
to live up to the hype. And, as far as I could
see, its only major downside is that as a
Mayfair star, Atherton can’t help but attract
hordes of plastic-looking, noisy, blingy
members of the international “elite”. It’s
rather funny seeing them clip clop down
the miniscule alleyway that is Pollen St
(home to another swanky, but not as tasty,
restaurant across the street). If they don’t
put you off your food, along with the weird-
ly muzak-style noise being loudly piped in
(my companion was substantially put off by
Jason Atherton’s much-hyped
new restaurant serves exquisitely
creative, accomplished food
Above: the minimalist,
hard-surface interior
of Pollen St Social.
Below: Jason
Atherton.
Social and delicious in one
this – indeed, the restaurant would be
classier without music), you’re in for a seri-
ous gastro-treat.
The restaurant is split into two rooms:
the front one has a bar and the back has big-
ger tables, a dessert bar, a sort of island
where waiters input orders and get bills and
lots of expensive art. You can see the
kitchen, and an exhausted-looking
Atherton in it. For my taste, it lacks softness
– it’s all echoey surfaces, hard furnishings
and the boxy, low-ceilinged feeling of the
rooms makes me feel a bit like I’m in a can-
teen.
The a la carte menu is just the right size:
eight starters, nine mains. There are no side
dishes listed but you can still have them.
How to choose? I found the options almost
equally mesmerising – so many using
homely yet rather sexy ingredients like
hops and seeds. Smoky flavours are
everywhere, counteracted by bitter
Asian-inspired citrus tang. Eventually
pushing aside quail with chicken liver
cream, nuts and seeds, and the
Shetland smoked salmon with
smoked herring roe cream, I went for
smoked foie gras, black sesame and
smoked golden raisin. Arriving in
three melting discs with the spiralled
coating of burnt seeds and a side plate
of grilled bread, I refused (almost) to
share. The creamy, boozy richness of
the foie gras came across like butter and
silk, while the tang of the raisin was a nice
alternative to chutney. Spread atop an oval
bread wedge, the foie gras made like a boat
about to sail off (into my mouth). I mourned
its passing, and would easily put it on par –
if not beyond – with Heston Blumenthal’s
famous Meat Fruit at his new restaurant
Dinner. My friend had the quail, and the lit-
tle bit I tried was fragrant and rich.
She was less in ecstasies over roasted cod
with sea vegetables, creamed potatoes,
lemon peel and English asparagus – cod
always seems a bland choice next to meat –
than I was over my magnificent trio of pork.
(Though her mash was worth the whole cod
order, almost).
Back to that pork. Roasted Dingley Dell
pork, beetroot, hops, seeds and grains.
Crispy fat, melting belly, wholesome, malty
seeds. Big fatty rectilinear chips to go with –
and I was really was a Dingley pig in clover.
Pudding is a big deal here, as the pres-
ence of a dessert bar implies. It doesn’t dis-
appoint: I could eat the signature “PBJ”
parfait (peanut butter mousse, cherry jam,
creamed rice puffs) all day until the end of
my life. The rhubarb and ginger cheesecake
was also a delight: a zig zag of cotton-like
vanilla cheesecake with rhubarb sorbet and
nut crumble. Innovation abounds every-
where on this menu: watermelon, candied
goat’s curd, basil sorbet, and Sangria
mousse, blood orange granita, curd milk
jam are two lighter dessert options.
Service was at times a bit supercilious
(no, the waiter didn’t know I was review-
ing), and I’ve voiced my issues with the
room and crowd. Would I come back? In a
heartbeat: for food like that, you’d be mad
not to. FOOD: Four stars SERVICE: three
stars ATMOSHPERE: three stars. Price per
person without booze: £45. Pollen Street W1S
1NQ, tel: 020 7290 7600,
www.pollenstreetsocial.com
TIM
BADHAM
GOING OUT
City’s cigar
terraces are
heating up
W
ITH the inconsistencies of a British
summer it’s very important for cigar
aficionados to be able to take shelter
in high style while enjoying Cuba’s
finest. The newest addition to London’s most
lauded and exclusive cigar terraces offers just
that and is at one of London’s most famous
nightspots, Tramp on Jermyn Street. Built in
celebration of the club’s fortieth birthday, the
Smoking Terrace has been constructed for the
princely sum of £1.8 million and employs a sexy
black and gold design with gilded mirrors, plush
seating, retractable roof and a state of the art
heating system that warms the body directly
without pumping energy into the air. There’s a
swish new bar upstairs too as part of the expan-
sion.
The other new terrace is at Hef’s latest haven,
the recently opened Playboy Clubin Mayfair.
Here the semi-enclosed balcony space features a
glossy airbrushed ceiling; sleek, comfortable
armchairs and a stylish fireplace. During special
events, you can order a bespoke cigar at Playboy
Club to be hand-rolled by a torcedore bunny.
For old school exclusivity, Mark’s Club has
also recently refurbished its first floor smoking
terrace with awnings and heating system so
that its members can even enjoy a postprandial
cigar in inclement weather. Another beautifully
traditional choice would be private casino
Aspinall’s – its leafy roof terrace with gaming
tables will satisfy your gambler’s needs. For a
heady mix of the contemporary and genteel,
Portman Square’s Home House semi-enclosed
smoking room is the perfect choice for well-
heeled smokers and leads into a wonderfully
secluded garden.
For a boisterous clubbing experience, the
renowned celeb hot spot Maddox also has a
foliage-filled courtyard hidden at the back of
the club. Other establishments with longstand-
ing smoking pedigrees include Boisdale of
Belgravia and Canary Wharf, as well as the
Lanesborough, which has become synonymous
with cigars in London. Number 10 Manchester
Street and Dukes Cigar and Cognac Garden are
also destinations for those in the know. The
Langham’s pop-up Terrace Garden is easy on
the eye and there’s even a nice courtyard and
great humidor at Alfred Dunhill’s Bourdon
House just off Berkeley Square. Finally, one of
the most hush hush of secret members clubs:
the Beauchamp Club’s private terrace is a
must for the discerning Knightsbridge smoker.
Tim Badham is the founder of Innerplace,
London’s leading providers of VIP entertain-
ment, including film premieres, fashion shows,
launch parties and members club access.
www.innerplace.co.uk
Hugh Hefner’s Playboy Club has a cigar terrace.
FOOD & BOOZE NEWS
TIMOTHY BARBER
NEW FROM NUNO
Two of the country’s leading chefs are
behind new London restaurants. First
up, Nuno Mendes, the Portuguese star
who has been wowing diners and
Michelin judges with his multi-course
creations at Viajante in Bethnal Green,
has opened a more relaxed dining room
upstairs in the same building, the Town
Hall Hotel. Corner Room is serving a sim-
pler and more affordable version of
Mendes’s highly-innovative cooking (the
chef is a protégé of El Bulli maestro
Ferran Adria), and forget about booking
months ahead for a reservation –  you
can’t book at all. In fact there isn’t even a
website – just turn up in good time. Town
Hall Hotel, Patriot Square, E2 9NF.
020 7871 0460
L’ENCLUME COMES TO LONDON
Meanwhile Simon Rogan, the chef and
farmer whose L’Enclume restaurant
in the Lake District has been garland-
ed in awards and stars over the past
decade, is opening a place in the cap-
ital. We’re never sure about puns as
restaurant names, but “Roganic”
does at least set out its stall pretty
clearly – organic ingredients, foraged
food, menu items like buckthorn
curd, sweet ciceley and “heritage pota-
toes in onion ashes, lovage and wood sor-
rel”. The Marylebone premises, formerly
Michael Moore restaurant on Blandford
Street, is due for redevelopment in a cou-
ple of years, which will also be the lifes-
pan of the restaurant – so get there while
you can. It opens tomorrow. Roganic, 19
Blandford St, W1U 3DH www.roganic.co.uk
LOBSTERS IN SHOREDITCH
If two years seems a short time for a
restaurant to run, how about three and a
bit days? Rock Lobsta will be popping up
in Shoreditch on Thursday evening, serv-
ing Maine-style lobster rolls and other
lobster, crab and crayfish snacks, until
Sunday. It’s next door to fashion bou-
tique Luna & Curious on Calvert Street.
24-26 Calbert St, E2 7JP www.rocklobsta.co.uk
Lobsters are perfect
for pop-ups.
BRIDESMAIDS
THE US HIT,
REVIEWED
TOMORROW
27 CITYA.M. 23 JUNE 2011
WORDS BY
ZOE STRIMPEL
T
E
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R
E
S
T
R
I
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L
HISTORY COLD CASE
BBC2, 9.00PM
New series. Professor Sue Black and
her forensic anthropology team
investigate the remains of 17 people
discovered in a Norwich well.
CORONATION STREET
ITV1, 8.30PM
Still reeling from Steve’s news, Becky
marches into the Rovers and makes an
announcement that stuns Stella. Eva
argues with Leanne.
WALKING THE AMAZON
CHANNEL5, 9.00PM
Ed Stafford embarks on a 4,500-mile
journey as he aims to become the first
person to walk the entire length of the
South American river.
BBC1
SKY SPORTS 1
7pmLive Twenty20 Cup
Cricket: Essex Eagles v
Hampshire Royals. 10.30pm
The Sky Sports Years 11.30pm
Ringside 12.30amTwenty20
Cup Cricket 1.30amWomen’s
International Twenty20 Cricket
2.30amPremier League World
3amRingside 4amTwenty20
Cup Cricket 5am-6amWomen’s
International Twenty20 Cricket
SKY SPORTS 2
3.55pmLive Test Cricket 11pm
WWE: Late Night – Raw2am
WWE: NXT 3am-4amTime of
Our Lives
SKY SPORTS 3
7pmGolf 8pmLive PGA
Tour Golf: The Travelers
Championship. 11pmEuropean
Tour Golf 1amPGA Tour Golf
4am-5amGolf
BRITISH EUROSPORT
7pmHorse Racing Time 7.30pm
MotoGP 9pmLive Under-17s
World Cup Football
11pm-12.30amUnder-17s
World Cup Football
ESPN
6pmNBA Classics 8pm
Bundesliga 8.30pmEredivisie
9pmRussian Premier League
Review9.30pm30 for 30 12am
Live NBA Draft Preview 2011
12.30amLive NBA Draft 2011
5amESPN Press Pass
5.30am-6amBundesliga
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmChuck 9pm
FILMGhost 1990. 11.25pm
Dating in the Dark 12.25am
Criminal Minds 1.20amCSI:
Crime Scene Investigation 3am
Supernatural 3.50amGhost
Whisperer 4.40amCharmed
5.30am-6amNothing to
Declare
BBC THREE
7pmThe Apprentice 8pmDon’t
Tell the Bride 9pmKids Behind
Bars 10pmEastEnders
10.30pmIdeal 11pmFamily
Guy 11.45pmKids Behind Bars
12.45amIdeal 1.15amWorld’s
Craziest Fools 1.45amDon’t Tell
the Bride 2.45amKill It, Cut It,
Use It 3.45amWorld’s Craziest
Fools 4.15am-5.15amThe
Apprentice
E4
7pmHollyoaks 7.30pmFriends
9pmThe Big Bang Theory
9.30pmHow I Met Your
Mother 10pmThe IT Crowd
10.30pmFriday Night Dinner
11pmFILMEmployee of the
Month 2006. 1.05amMy Name
Is Earl 2amThe IT Crowd
2.25amFriday Night Dinner
2.50amGlee 3.40amPrivileged
4.20amReaper 5am-6am
Switched
HISTORY
7pmHeir Hunters 8pmIce
Road Truckers 9pmPawn Stars
10pmStorage Wars 11pm
Swamp People 12amPawn
Stars 1amStorage Wars 2am
The True Story 3amHeir
Hunters 4amHow the Earth
Was Made 5am-6amAx Men
DISCOVERY
8pmThrough the Wormhole
with Morgan Freeman 9pm
Flying Wild Alaska 10pmAliens
of the Deep Sea 11pmDeath
Machines 12amBear Grylls:
Born Survivor 1amFlying Wild
Alaska 2amAliens of the Deep
Sea 3amDeadliest Catch
3.50amFuture Weapons
4.40amTreasure Quest
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm
Strange Sex 10pmI Didn’t
Know I Was Pregnant 11pm
A&E 12amStrange Sex 1amI
Didn’t Know I Was Pregnant
2amA&E 3amLittle People,
Big World 4amA Baby Story
5am-6amBringing Home Baby
SKY1
8pmHawaii Five-0: Guest with
rapper Sean Combs. 9pmThe
Chicago Code 10pmLie to Me
11pmWall of Fame 11.30pmAn
Idiot Abroad 12.30amMartina
Cole’s The Take 1.25amCaprica
2.55amNCIS: Los Angeles
4.25amFringe 5.10am-6am
Sell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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E
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L
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&
C
A
B
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show:
Topical stories.
7.30pmEastEnders: BBC News
8pmPlanet of the Apemen:
Battle for Earth
9pmTraffic Cops
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time
11.35pmThis Week: Holiday
Weatherview12.25amSign Zone:
Land of Anarchy: Panorama
12.55amSign Zone: Countryfile
1.55amSign Zone: Britain’s Next
Big Thing 2.55amSign Zone: Fake
Britain 3.40am-6amBBC News
5.50pmWimbledon 2011:
Further live coverage of the
fourth day’s play.
8pmToday at Wimbledon:
A round-up of the fourth
day’s play.
9pmCHOICE History Cold
Case: New series. Investigating
the remains of 17 people
discovered in Norwich.
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on 4: 4Play: Kassidy 1.20amThe
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1 2 3 4 5 6
7 8
9 10 11
12 13 14 15
16 17 18
19 20
10 8
27 20
10 30
12 9
29
18
42
20 10
12 29
23 11
13 17
6
11
34
17
18
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11
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7
22
19
16
32
15
16
35
8
11
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.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUE’S
SOLUTIONS
KAKURO
WORDWHEEL
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.
SUDOKU
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.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Coagulated milk used
to make cheese (5)
4 Prices (5)
7 Located in the open air (7)
8 Fish eggs (3)
9 Animal prized for
its fur (5)
11 Skin covering the top
of the head (5)
12 Oil-bearing laminated
rock (5)
14 Consecrate (5)
16 Moldovan monetary
unit (3)
17 Oblivious (7)
19 Bread-raising agent (5)
20 Glossy fabric (5)
DOWN
1 Cuts into pieces, as
with an axe (5)
2 Decompose (3)
3 Gradient (5)
4 Army unit of two or
more divisions (5)
5 Family appellation (7)
6 Slumber (5)
10 Brilliant and showy
technical skill (7)
12 Stupid, daft (5)
13 Express great joy (5)
14 Pulse vegetables (5)
15 Rear of a boat
or ship (5)
18 Social insect (3)
D
D
E
T
S H
A
N
A

4





4

C O O L S A D D L E
H A D O Y
A H O Y S T U P I D
L E R N
E V E R Y T H I N G
T F I A H
S T E R E O T Y P E
C E A A
G A L L O P S O U R
R A V E T
B E A U T Y R A G S
3 2 1 6 1 9 7
7 1 3 6 5 2 4 8 9
8 4 9 7 3 9 7
9 7 8 1 3 1
6 9 2 6 4
2 3 1 4 5 1 2 3
1 5 8 7 9
4 9 6 9 4 8
8 9 6 8 9 5 7
3 7 8 1 4 6 5 2 9
2 6 3 8 2 1 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PROACTIVE
Lifestyle | TV&Games
CITYA.M. 23 JUNE 2011 28
Sport
29
“WHY ME? WHY DID THIS
HAPPEN AT WIMBLEDON?”
HEARTACHE FOR INJURED WATSON
BUT MURRAY EASES THROUGH: P31
SURREY captain Rory Hamilton-
Brown believes the prize on offer for
winning the Friends Life t20 would
help catapult his county back into
the big-time.
Surrey head into this evening’s
crunch clash against London rivals
Middlesex needing a victory at the
KIA Oval to advance their hopes of
qualifying for the knockout stages.
He said: “Winning this competi-
tion will always be one of the main
goals for any county side. The
rewards are very lucrative and victory
gets you into the Champions League
which gives players the chance to
play domestic international cricket.”
Hamilton-Brown, 23, is enjoying
his second season as Surrey captain
and feels he his now comfortable in a
role he always dreamt of filling.
“It’s the county I grew up support-
ing so it means a lot to me. It was
hard at first balancing things, it’s like
being an all-rounder really and I feel
I’m learning all the time.”
T
HE Laureus / City A.M. team is
busily preparing for one of their
big moments in the build-up to
the London leg of the Dextro
Energy Triathlon ITU World
Championship – their first training
session this weekend with double
decathlon Olympic gold medallist
Daley Thompson.
As global charity partner of the
International Triathlon Union,
Laureus has teamed up with City A.M.
to allow 25 readers to compete along-
side the greatest triathletes in the
world – and raise funds for the
Laureus Sport for Good Foundation.
Daley, a member of the Laureus
World Sports Academy, who won
Olympic gold in 1980 and 1984, said:
“It’s great that City A.M. readers are
teaming up to run in the race and
raise funds for Laureus.
“I’m really looking forward to help-
ing the guys along as best I can, but I
hope they’re not expecting any short-
cuts. There are no magic answers
which I can give them to replace hard
work. Like everything in life, they
will get out what they put in. But
we’ll try to have fun along the way.”
One reader in the team is Robert
Akester, who works for global com-
munications technology services
company Touchbase in Mayfair,
London, and cycles in everyday from
his home in Kent.
Robert said: “I am very excited to
be coached by Daley. He is one of the
reasons I joined the Laureus team
this year. As one of the greatest ath-
letes of all time, his input and coach-
ing will be invaluable to me.”
Daley is providing two training
days for the Laureus / City A.M. team
and will also be on hand to support
racers on the day. The race takes
place over a dramatic course involv-
ing The Serpentine, Hyde Park and
Buckingham Palace.
Members of the Laureus / City A.M.
team are each raising £2,000 Laureus
Sport for Good Foundation, whose
mission is to use sport to tackle social
problems around the world.
Laureus supports 84 community
sports projects and since its incep-
tion has raised more than £35m in
order to improve the lives of more
than 1.5m young people.
There are still a few, final places
remaining in the team. See below for
details of how to get involved.
BY JAMES GOLDMAN
CRICKET
▲
Our readers brace themselves for triathlon
boot camp with Olympic hero Thompson
Birthday
JOIN OUR
CELEBRATI ONS
Chamberlain’s is celebrating
its 10th birthday with a new
season menu and a joint
summer evening offer with
Santa Margherita – celebrating
50 years of Pinot Grigio.



FOOD &
WINE OFFER
£10
Visit Chamberlain’s restaurant at 23-25 Leadenhall Market, EC3V 1LR,
call 020 7648 8690 or visit www.chambcr|a|nsoŐondon.com









YEARS
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n i f P s o r a e 0 y 5
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f d o t l L l e w l e h T
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t B s B ’ C
m t p e 4 l b a l i a v , a r e f f g o n i n e v E
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es i h s . Di 0 1 r £ o o f i g i r G
a M t n a f S s o s a l h a g t i w
t o c e l e d s n t a u l o l i h C
taste
OF
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A
















, m p 0 3 . o 9 m t
. w e e a f m a o n
o iz r o h h c t i t w e l l u a m
d e t a n i t a r e g d u l c n es i
t o n i a P t i r e h g r a a M
es h s i r d e t s a f 6 t e o n
OF
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8 8 4 6 0 7 2 0 l l a c
’ n i a l r e b m a h t C i s i V
















m
. t s u g u t A s 1 l 3 i t n , u e c a r r e T
a t B n e m e s a s B ’ n i a l r e b m a h C
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m
, R L V 1
Daley to help
City AM team
WHAT YOU GET
The 25 members of the Laureus / City
A.M. team will receive:
•
Two training days with Daley
Thompson
•
Training schedule put together by
Daley Thompson
•
Laureus branded T-shirt
•
Laureus branded triathlon suit
•
Opportunity to meet Laureus sporting
legends at the event
•
Team dinner with Laureus legends
•
Competitors are asked to raise £2,000
WHERE TO GO
City A.M. readers interested in taking
part should email:
[email protected]
READ ON
For more information on the Laureus
Sport for Good Foundation please visit:
www.laureus.com
SIGN UP NOW
Hamilton-Brown: T20 success is vital to
Surrey’s hopes of returning to glory days
Thompson will be offering training advice to members of the Laureus / City A.M. team
Results
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email [email protected]
Sport 30 CITYA.M. 23 JUNE 2011
SPORT | IN BRIEF
United close in on Villa’s Young
FOOTBALL: Manchester Untied are
expected to complete the signing of
Ashley Young from Aston Villa by the end
of the week after the player underwent a
medical at the Old Trafford club yester-
day. The 25-year-old England winger is
expected to sign a five-year deal with
Villa to receive a transfer fee in the
region of £17m.
Woods remains an Open doubt
GOLF: Former world No1 Tiger Woods
has been advised to continue his lay-off
rather than play next week’s AT&T
National in Pennsylvania, casting further
doubt on his participation in next month’s
Open. Woods hasn’t played since he
pulled out of the Players Championship
last month and is yet to recover from
knee and Achilles injuries. On his Twitter
site he said: “Doctor’s orders: sitting out
the AT&T National . I’ll be in Philly to sup-
port the event. Feeling stronger every
day, but not 100 per cent.”
No Wasps approach for Young
RUGBY UNION: Cardiff Blues have not
received an approach for director of
rugby Dai Young – even though Wasps
are thought to be close to reaching an
agreement for the former Wales prop to
take over at Adams Park. A Cardiff state-
ment read: “We have had no approach
from London Wasps. Dai Young is still in
contract at the Blues and has one year to
run on that contract, which we expect
him to honour.”
It’s not all about me, it’s about the team,
insists new Chelsea manager Villas-Boas
NEW CHELSEA manager Andre
Villas-Boas admits he will never be
able to avoid comparisons with Jose
Mourinho but insists his tenure will
be underpinned by a focus on the
team rather than self-promotion.
The 33-year-old’s career has mir-
rored that of his mentor, who
announced his arrival at Stamford
Bridge in 2004 by anointing himself
as the ‘Special One’, and took anoth-
er step towards emulating Mourinho
by signing a three-year deal with the
west London club yesterday.
Articulate and immaculately
turned out, on first appearances it
would appear that much of
Mourinho’s stardust has rubbed off
on the protege who won the Treble
with Porto last season. But Villas-
Boas is adamant he is his own man
whose priority will be to re-engerise
an ageing squad.
“I was appointed for human quali-
ties,” he said. “I don’t see the game as
a one-man show, I see the game as
the getting together of collective
ideas and good players.
“The most important thing is to
motivate the players to get their
ambitions right.”
On being compared to Mourinho,
who brought Chelsea unprecedent-
ed success over the course of his
three-year reign, he added: “I think
there is no way you can avoid com-
parison, it is something that is the
interest of the media. I didn’t take
the Porto job nor the Chelsea job
because Jose made the same steps.
“Coaching was not a kind of obses-
sion [for me] and neither did I use
Jose as the way to arrive into this
path, it was something that hap-
pened naturally.”
Mourinho won a total of five
major trophies during his Chelsea
career, but the absence of a
Champions League title meant
owner Roman Abramovich’s
appetite was never fully satisfied.
Carlo Ancelotti was dismissed in
May after failing to follow up his
Double winning first season with
similar results, while World Cup
winner Luiz Scolari and Avram
Grant were shelved inside a year.
And Villas-Boas accepts that his
tender age and relative lack of expe-
rience will offer no safety net against
the threat of the sack should he fail
to deliver the silverware his new
employer craves.
He said: “There is not going to be
more or less tolerance for me if I
am not successful so this is the
challenge I face and I feel confident
that we can motivate everybody –
the players and the structure.
“I feel confident I can respond to
the ambitions of the supporters and
the ambitions of the owner and the
administration.”
BY JAMES GOLDMAN
FOOTBALL
▲
BRITISH Olympic chiefs have hit back
at suggestions their much-ridiculed
announcement that an “historic
agreement” had been reached for a
Team GB football team at next year’s
Games was a ploy to shift tickets.
Tuesday’s announcement was
widely taken to mean that Scotland,
Wales and Northern Ireland had
joined England in supporting the
plans – something the Celtic nations
wasted no time in rubbishing.
London 2012 chiefs still have 1.7m
tickets left for the football competi-
tion, which will go on sale again
tomorrow, sparking they are merely
trying to drum up interest.
But Andy Hunt, chief executive of
the British Olympic Association
(BOA), said: “There is absolutely no
connection whatsoever between the
timing of the announcement.”
The Football Association (FA),
meanwhile, insists their colleagues at
the other home nations have been
involved in discussions and given
their consent.
BOA deny Team GB ploy
BY FRANK DALLERES
OLYMPICS
▲
WORLD governing body Fifa was
engulfed in a fresh bribery storm last
night after it emerged an in-house
probe had found evidence implicat-
ing two of its most powerful mem-
bers, Mohamed bin Hammam and
Jack Warner.
A secret report by Fifa’s ethics com-
mittee said it had uncovered “com-
pelling” material suggesting that
bribes were paid to officials to win
support for Bin Hammam’s campaign
to be Fifa president, and that Warner
had facilitated it.
Both men, who have vehemently
denied any wrongdoing, were provi-
sionally suspended last month. Fifa
announced on Monday that vice-pres-
ident Warner had resigned and quit
football altogether, and would there-
fore not be investigated further.
Allegations of financial corruption
have increasingly dogged Fifa over
the last year. Bin Hammam pulled
out of the election race on the eve of
the 1 June vote, which saw Sepp
Blatter re-elected unopposed.
Fifa probe accuses duo
BY FRANK DALLERES
FOOTBALL
▲
Bold choice demands a bold response
I
T GOES without saying that
Chelsea have made an extremely
bold decision in paying a world
record sum to hire a 33-year-old
with less than two years’ manage-
ment experience.
But what fascinates me about the
appointment of Andre Villas-Boas is
how bold he is going to be in putting
his stamp on a Blues set-up that has
begun to look tired and predictable.
There has to be a re-think of the
first XI and the whole squad. Key
players are getting on and the tactics
looked a little stale last season.
But who better to sweep away
dead wood than a young manager
who has his own ideas and is eager
to implement them at a new club?
It’s certainly a big ask for Villas-
Boas, who is one of a growing band
of career coaches – men who have
not played the game at a high level
but have succeeded by devoting time
to studying theories and methods.
Because as well as being charged
with masterminding a new era at
Stamford Bridge, he will surely have
to win the Premier League or
Champions League to survive.
Earning the trust and respect of
the players, some of whom are older
than him, will be key, and his excel-
lent English will help immensely
with that. He will now be calling
round the squad, introducing him-
self rather than waiting until they
report for training next month.
Especially important will be getting
John Terry onside.
I’m sure he’ll bring a swarm of
staff with him from Porto, and per-
haps some players. The path
between Portugal and Chelsea has
become well worn, but having famil-
iar faces will help him acclimatise.
If I was a Chelsea fan now I’d be
excited, because they have appoint-
ed the man of the moment. Villas-
Boas represents a fresh start; now
it’s up to him to freshen up the rest
of the club.
FOOTBALL COMMENT
TREVOR STEVEN
V i l l a s - B o a s
worked under
Mourinho as a
scout at Chelsea
FOURTH seed Andy Murray made
serene progress into the third round
of Wimbledon after a straight sets win
over Germany’s Tobias Kranke, but it
was an otherwise mixed day for
British hopes, encapsulated by
Heather Watson’s galling defeat
against Sweden’s Mathilde Johansson.
After beginning his campaign in
less than commanding fashion
against Daniel Gimeno-Traver on
Monday, Murray (right) utterly domi-
nated the first two sets against 2010’s
ATP World Tour Newcomer of the Year
and although the third was more
competitive, Murray broke in the 11th
game before closing out a 6-3, 6-3, 7-5
win on a windswept Court One.
The 24-year-old was never in
danger of surrendering a proud
record of never having fallen at
either of the opening two hurdles
at SW19, but accepts there is room
for improvement ahead of tomor-
row’s clash against Ivan Ljubicic.
“I served well. The rest of it is going
to need some work. It was tricky with
the wind and he was hitting the ball
hard and flat, which made it difficult
to get into a rhythm,” he said.
Top seed Rafael Nadal was in
equally ruthless form drop-
ping just nine games under
the Centre Court roof on his
way to dismissing America’s
Ryan Sweeting, but the defend-
ing champion still had to contend
with questions relating to a sup-
posed dip in form.
“Really?” he replied to his inquisi-
tor. “Two weeks ago, I won Roland
Garros. It is my seventh
year not out of the
top two. Maybe
they’re right, I
don’t know.
“In gener-
al, I think
I did
well. It’s more humid [under the roof]
and the court was a little bit more
slippery than normal.”
Elsewhere in the men’s draw there
were wins for eight, ninth and 10th
seeds Andy Roddick, Gael Monfils and
Mardy Fish, while Fernando Verdasco,
seeded 21, was the biggest casualty of
day three losing in four sets against
Robin Haase.
In the women’s draw Watson
eventually had the opportunity to
play her delayed first round
match and looked likely to
enhance her blossoming reputa-
tion, but the elbow injury she suf-
fered towards the end of the
second set, which she won, ham-
pered her severely in the decider.
“This was the hardest defeat of
my professional career because it
was a great opportunity for me,”
said the 19-year-old, who eventually
lost 2-6, 6-4, 6-4.
“I’m just asking myself now, ‘Why
me?’. Why couldn’t it have happened
in another tournament? Why this
one?”
Compatriot Anne Keothavong was
steamrollered 6-2, 6-1 by eighth seed
Petra Kvitova, but there was a land-
mark success for the former junior
champion Laura Robson. The 17-year-
old won her first career Grand Slam
match, ousting Angelique Kerber in
three sets to set-up a glamour tie
against Maria Sharapova.
Sport
31 CITYA.M. 23 JUNE 2011
STAT OF THE DAY
The show courts have hardly been
party to many memorable matches
thus far. But Venus Williams’s 6-7, 6-
3, 8-6 win over Kimiko Date-Krumm
certainly bucked the trend on Centre
Court yesterday. The Japanese vet-
eran, 40, can take heart from her
performance, especially taking into
account the fact that when she first
appeared at SW19 in 1989, 37 of
the women in this year's singles
draw weren't even born.
DAY FOUR HIGHLIGHT
After the rumpus caused by Andy
Murray’s demotion to Court One
yesterday, tournament organisers
will no doubt come in for further
stick for their decision to keep Laura
Robson’s match against Maria
Sharapova off Centre Court. “You’re
just too fair,” said John McEnroe
commenting on the lack of Brit bias
in the scheduling.
BY JAMES GOLDMAN
TENNIS
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THURSDAY FORECAST
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Easy does it for on song Murray but
it’s heartache for wounded Watson
OUTSIDE COURT | WEATHER,
GOSSIP AND TODAY’S HIGHLIGHTS
4 Jul: Villas-Boas is set to take charge of
his first training sessions as Chelsea man-
ager at the start of next month, when
the first players return to the club
9 Jul: The new manager’s first match in
charge will be upon him quickly, a friend-
ly at Dutch side Vitesse Arnhem. A week
later he takes his team to Portsmouth
21 Jul: A four-match tour of Asia kicks
off against a Malaysia XI, with games
against Thailand All-
Stars, Kitchee and
Aston Villa or
Blackburn to
follow
6 Aug: His
last
chance for
pre-season
tweaking will be at Rangers
13 Aug: Villas-Boas makes his
Premier League debut with a fairly
low-key trip to Stoke City
20 Aug: Blues fans finally get a good look
at the boss on his home bow, a visit from
Roy Hodgson (inset) and West Brom
DATES FOR THE DIARY |
WHAT WILL THE NEW
BLUES BOSS DO NEXT?
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