Cityam 2011-10-03

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BUSINESS WITH PERSONALITY
.com
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FTSE 100 t5,128.48 -68.36 DOW t10,913.38 -240.60 NASDAQ t2,415.40 -65.36 £/$ 1.56 unc £/¤ 1.16 ▲+0.01 ¤/$ 1.34 t -0.02
More UBS
execs to go
in shake-up
SEVERAL senior executives from UBS’
risk management division are set to
be axed in the next few days as the
bank tries to move on from the $2.3bn
(£1.5bn) “rogue” trading scandal.
Carsten Kengeter, the head of the
investment bank, is seeking to regain
the initiative after criticism of UBS
for its lack of communication during
the crisis and its lack of decisive deci-
sion-making.
City A.M. understands more risk
managers are expected to leave fol-
lowing the resignation of John
Hughes, Kweku Adoboli’s boss, and
chief executive Oswald Gruebel.
“Carsten has got to open up to
investors and the public and get back
on the front foot,” said one source
close to the bank.
Kengeter is under pressure to bring
forward the publication of a report
into how the loss emerged, which
could lead to the investment bank
being heavily shrunk.
Executives in Switzerland want the
division to adopt a less risky
approach and focus more on advisory
work, which could lead to the re-
introduction of the Warburg name.
UBS said it did not comment on
“speculation” and said more details
of its risk strategy will be revealed at
its investor day on 17 November.
About 3,500 posts are being cut
across the bank, including in risk
management, as part of a SwFr 2bn
(£1.41bn) a year cost-cutting drive
announced in August.
BY PETER EDWARDS AND DAVID HELLIER
BANKING

Chancellor George Osborne on the way to the conference hall yesterday: Pictures: REUTERS
BORIS Johnson would make a better
future Prime Minister than George
Osborne, according to the City A.M. /
PoliticsHome Voice of the City panel.
Of those who expressed a prefer-
ence, fifty-seven per cent said they-
would pick Johnson, the Mayor of
London, (inset picture) as the next
Tory leader compared to just 43 per
cent for Osborne, the chancellor.
The choice of Johnson over Osborne
is sure to irk the chancellor, who is
widely seen as the heir apparent to
David Cameron. It echoes a similar set
of findings published by City A.M.
before the election, when the same
panel said Ken Clarke would make a
better chancellor.
The results suggest Osborne has yet
to “seal the deal” with the City. In a
set of findings that will make grim
reading for the chancellor, over two
thirds of panellists (69 per cent) said
the Conservative party was not doing
enough to promote economic
growth, which is Osborne’s main
responsibility.
Yesterday, business minister Mark
Prisk said the government was find-
ing it difficult to boost growth by cut-
ting red tape, admitting “I don’t
think [firms] are on the ground see-
ing that change”.
CITY PREFERS BORIS
AHEAD OF OSBORNE
www.cityam.com FREE
DERBY JOY
FOR SPURS
BUT ADEBAYOR
CHANTS DISGUST
REDKNAPP P33
BUSINESS WITH PERSONALITY
Speaking on the sidelines of the
Conservative conference in
Manchester, he likened the govern-
ment’s attempt at deregulation to
“turning around a tanker” and said
civil servants were ingrained with a
“culture of regulation being seen as
the first reaction”.
Meanwhile, Osborne is expected to
use his speech to conference today to
announce plans to freeze council tax
next year, allowing the Conservatives
to honour a manifesto commitment
to freeze the levy for two years in a
row.
The move will save the average fam-
ily £72 in 2012-13 and is expected to
cost the exchequer around £850m,
which will be funded by using
“Whitehall underspend” – money
that departments were expected to
spend but haven’t.
ALLISTER HEATH P2: MORE P6, P23
Issue 1,480 Monday 3 October 2011
Certified Distribution
01/08/11 till 28/08/11 is 92,745
BY DAVID CROW AND JULIET SAMUEL
CONSERVATIVE
CONFERENCE
THE AMAZON TABLET:
GOOD BUT NO iPAD
COLD WATER ON THE FIRE P29
News
2 CITYA.M. 3 OCTOBER 2011
Greece to miss debt targets
GREECE is set to miss its deficit tar-
gets for both this year and next, its
finance ministry admitted last night.
Finance minister Evangelos
Venizelos said that the deficit is due
to come in at 8.5 per cent of GDP this
year, almost a whole percentage
point above the 7.6 per cent target
agreed with Greece’s international
lenders.
It will miss the target by less next
year, he claimed, forecasting a deficit
of 6.8 per cent of GDP versus the 6.5
per cent target.
Although markets expect Greece to
default and never held out much
hope of the sovereign meeting its tar-
gets, the official admission is a blow
to political leaders in the rest of
Europe, tasked with persuading their
voters to fork out for larger bailouts
in the future.
However, the Greek cabinet did
manage to rubber-stamp its 2012 aus-
terity budget yesterday, agreed
between Athens and the troika – the
ECB, European Commission and IMF.
Without it, Greece would not be able
to receive its next €8bn instalment of
bailout aid and would go bankrupt in
just over two weeks.
The budget confirms plans to place
30,000 civil servants on permanent
holiday with 60 per cent pay and to
begin laying them off after a year. The
measure has been politically difficult
to push through because civil service
jobs are protected under the Greek
constitution and public sector unions
are planning protest strikes.
But it could still prove difficult to
implement on the ground: reports
suggested that as many as eight gov-
ernment buildings have been occu-
pied by striking civil servants over the
last week, preventing many min-
istries from functioning. Among
those disrupted were the statistics
authority, which is charged with pro-
viding reliable figures to the troika
for their audit.
Eurozone finance ministers are
expected to discuss Greece at a meet-
ing in Brussels today, but will be wait-
ing for the troika inspectors’ report
before taking any new decisions.
The inspectors are widely expected
to give a green light to the release of
the next €8bn tranche of aid to avoid
plunging the Eurozone deeper into
turmoil. But all eyes will be on their
forecasts for 2012-2014.
If the inspectors conclude Greece’s
recession will continue to be worse
than predicted, EU officials have sug-
gested banks that agreed to write off
21 per cent of the value of their Greek
debt holdings in July may be forced to
take deeper losses.
It’s make or break for the Tory party
POLICIES to boost growth. That is
what the Conservative Party confer-
ence, which started last night, must
focus on. Growth has ground to a
halt, partly because of global forces
but also because too little has been
done to make the UK once again a
competitive place in which to work,
invest and operate a business. There
has been much rhetoric and very lit-
tle action – in fact, most of the
changes introduced to tax and regula-
tion since last May have actually been
damaging for growth. This astonish-
ing situation shows how important it
is for George Osborne and David
Cameron to refocus.
There is some good news. The coali-
tion has finally agreed that the quali-
fying period for unfair dismissal
claims would be increased from one
year to two (from April). Given that
this was mooted ages ago, it is hard to
fathom why this is taking so long but
it will help. Such a move may worry
some employees but it will be good
for overall opportunities in the econo-
my as it means bosses will be less
scared to take on new staff.
Unfortunately, the government is
trapped as the result of the dysfunc-
tional reality of coalition. Many of the
UK’s problems come from the EU. Yet
the Liberal Democrats oppose the
renegotiation of the treaties to decen-
tralise even the smallest amount of
power. Sometimes, the government –
like all of its predecessors since the
1990s – makes a song and dance
about resisting one or other especially
egregious move. But usually it eventu-
ally surrenders, or celebrates a “com-
promise” that merely delays the blow
by a few years.
A combination of the EU’s bulldoz-
er and of the government’s mistakes
means that the UK is a worse place to
conduct business and especially to
hire people today than it was when
the coalition was elected. The agency
workers’ directive has increased the
cost of employing such workers by
between a fifth and one third, accord-
ing to the EEF; the elimination of the
retirement age has been mismanaged
and will mean an explosion in tri-
bunals; billions of pounds of costs
have been added as a result of other
new “rights”. Employment is like
everything else: if you increase its
cost, you cut its demand. The coali-
tion wants more jobs – but it is
embracing maddeningly job-destroy-
ing policies. Bizarre.
Corporation tax is falling, and
entrepreneurs have greater tax
breaks. But that’s about it (I’m not
including trivial proposals such as
getting rid of the need for shops that
sell TVs to collect the addresses of
buyers). Yet on the debit side needs to
be included higher capital gains tax
(with no indexation for inflation); a
hike in employers’ national insur-
ance; higher taxes on the City; a
destructive raid on oil and gas firms;
a disastrous energy policy which will
push up prices, hitting the poorest
hardest, while making UK manufac-
turing gradually unviable; and
numerous other blows. If he wants
real ideas, Osborne ought to read the
Institute of Directors’ manifesto for
growth, commissioned by its excel-
lent new boss Simon Walker.
If one were to conduct a cost-bene-
fit analysis of the coalition’s impact
on firms and the economy, the sorry
truth is that costs are much greater
than benefits. This conference will
either mark a turning point – or it
will confirm the Tories are content to
manage the slow decline of UK Plc.
We will soon find out which it will be.
[email protected]
Follow me on Twitter: @allisterheath
Greek finance minister Evangelos Venizelos has his work cut out for him Picture: REUTERS
NEWS | IN BRIEF
Slovakia in EFSF vote challenge
Slovakia's ruling coalition will have to
reallocate cabinet posts or face a snap
election unless it can find its own major-
ity in parliament for a crucial vote on
the Eurozone’s rescue fund, the main
opposition party Smer said yesterday.
The Eurozone’s second poorest country
of 5m people has become a major risk to
the bloc’s July deal to give the European
Financial Stability Facility (EFSF) more
power to tackle the crisis threatening its
weaker debtor economies. The centre-
right coalition of Iveta Radicova is
struggling to win enough support in par-
liament for the EFSF vote, which is due
by 14 October, because junior partner
Freedom and Solidarity (SaS) has so far
refused to support the measure.
Bob Pittman to lead Clear Channel
US radio and advertising company Clear
Channel Media Holdings has promoted
Bob Pittman to chief executive. Pittman,
a well-known media executive and
investor, has been Clear Channel's chair-
man of media and entertainment plat-
forms since November 2010. Clear
Channel owns an outdoor advertising
space business in the UK.
EDITOR’S LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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Tel: 020 3201 8900 Fax: 020 7283 5334
Email: [email protected] www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
BY JULIET SAMUEL
EU ECONOMY

BTG GAINS TOP BANKER AS IT EYES
EXPANSION
Roger Jenkins, the high-profile for-
mer Barclays executive, has joined
BTG Pactual as a managing partner as
Brazil’s largest independent invest-
ment bank and asset manager gears
up its ambitious expansion plans.
Jenkins, a star banker best known for
orchestrating a £7bn fundraising for
Barclays from Middle East investors at
the height of the financial crisis,
brings with him deep ties to the sov-
ereign wealth funds that are now
looking to tap into Latin American
growth.
GOLDMAN SET TO BE LME SALE WIN-
NER
Goldman Sachs has more than
quadrupled its stake in the London
Metal Exchange in the past two years,
making the US investment bank the
biggest potential winner from the
proposed sale of the 130-year-old
exchange. The LME, the centre for
global metals trading, said last week
it had been approached by more than
10 suitors.
PRIVACY CONCERNS OVER ANY CHINA
PRESENCE IN YAHOO
The possibility that Yahoo will fall
under Chinese ownership could lead
to significant privacy risks for its
users elsewhere in the world and
raise questions about the operation of
US laws on wiretapping, privacy cam-
paigners in the US have warned. The
warnings follow a comment by Jack
Ma, founder of Chinese internet
group Alibaba, that he is interested in
acquiring Yahoo.
AGBANK SHRUGS OFF EARLY RIGHTS
ISSUE FEARS
The world’s biggest bank – by cus-
tomers, branches and staff numbers –
has shrugged off market concerns
that it will have to resort to an early
rights issue to top up capital buffers.
OLYMPIC BUILDER LAING O’ROURKE
PAYS BOSS £24M DIVIDEND
The construction company that built
London’s Olympics venues paid its
boss a dividend of almost £24m last
year. Ray O’Rourke is the founder,
chairman and chief executive of
Laing O’Rourke, and one of Ireland’s
richest men, with an estimated for-
tune of £315m in this year’s Sunday
Times Rich List.
NO 10’S GREEN SHOOTS
No 10 is investigating ways to pump
money into green building projects
to help kickstart the economy.
Representatives of several large com-
panies, including Balfour Beatty, J
Sainsbury and Bovis, were sum-
moned to Downing Street on Friday
to discuss energy performance con-
tracts — a scheme to speed up invest-
ment in insulation, solar panels and
other energy-saving improvements.
WATERSTONE’S BOSS SLAMS AMAZON
The new boss of Waterstone’s has
described Amazon.co.uk as a “dispirit-
ing” place to shop and said that the
business tactics used by the online
retailer are “utterly utterly ruthless”.
James Daunt, the managing director
of the country’s biggest high street
book chain, said that 13 years after its
UK launch Amazon now sells almost
exactly the same number of books as
Waterstone’s.
MINIMUM WAGE MAY HARM YOUNG
The minimum wage may be pricing
young people out of work because
employers are finding it too expensive
to give them their first job,
Government pay advisers have said.
Firms may be reluctant to create jobs
by recruiting inexperienced staff
because they are put off by the
increased wage bill, the Low Pay
Commission has suggested.
CHANNEL ISLANDS REGULATOR IN
DARK OVER FULL TILT POKER
The top official at the Channel Islands
regulator that licensed Full Tilt Poker
to run an online-poker business said
he became aware the site had major
financial problems only after the US
government indicted company execu-
tives. “What wasn’t known to us is that
the Department of Justice had frozen
funds associated with the operation of
Full Tilt,” Andre Wilsenach, chief exec-
utive of the Alderney Gambling
Control Commission said.
CARGOLUX IN BOEING AGREEMENT
Cargolux Airlines International has
tentatively resolved a contract dispute
with Boeing over deliveries of the first
two 747-8 jets, which Cargolux abrupt-
ly postponed last month.
Luxembourg-based Cargolux said it
reached a tentative agreement with
Boeing “over contractual issues”.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE “disappointing” outcome of the
takeover battle for Charter
International shows that UK M&A
deals are still too skewed in favour of
short term investors, the £269bn fund
manager Aviva Investors has said.
Aviva’s UK equities fund manager
Graham Elliott-Shircore said Charter's
shareholder base changed as short-
term investors bought in during the
bid period, leaving the board at odds
with its long-term investors.
“Our views on what would have
been our preferred outcome have
been stated – it now looks like that
isn’t going to happen. From our per-
spective that is a bit disappointing;
financial markets and shareholders
have played their role in that,” he told
City A.M.
“The board’s position is very differ-
ent to the long term shareholder
views – the board’s perspective is per-
haps that they delivered as high a
nominal price as possible, whereas
we considered the longer-term value
we think an ownership by Melrose
could have delivered, including shar-
ing in the future upside.”
He stopped short of calling for a
change to the Takeover Code, howev-
er, as Cadbury chairman Sir Roger
Carr did after short-term sharehold-
ers approved the chocolate maker's
sale to US foods giant Kraft.
Instead, he supported creating a
more level playing field for all
investors, adding that “Like all these
situations it is a financial decision
and that creates differing opinions.”
Elliot-Shircore also defended UK
bank stocks, saying unlike many fund
managers he remains slightly over-
weight on the sector in the belief that
institutions such as RBS and Lloyds
have a positive outlook.
“They are certainly high risk,
potentially high return shares and
that can work against you,” he said,
but added that he believed concerns
over the threat new regulation poses
to their future performance were
overdone,” he said.
Aviva: Charter
bid shows UK
M&A skewed
BY ALISON LOCK
INSURANCE

News
3 CITYA.M. 3 OCTOBER 2011
THOUSANDS of jobs are expected to
go in UK financial services as the sec-
tor looks to cut costs, according to a
report out today from the
Confederation of British Industry
(CBI) and PwC.
Investment managers, insurers,
banks and traders are all expected to
cut jobs, the survey found, with the
employment outlook only improving
in building societies.
Back in May the survey showed a
positive balance of five per cent of
financial services firms with a posi-
tive employment outlook. A net total
of 1000 jobs was created in the fol-
lowing quarter. Now that balance
has dropped to -11 per cent.
“That is 8,000 out of around
900,000 working in the sector in the
UK,” said the CBI’s Ian McCafferty.
“Nonetheless, uncertainty about
future demand and worries about
shifting regulatory sands are weigh-
ing on sentiment.”
Indeed, the regulatory situation is
adding to costs noticeably. “Of the
jobs that will be created, many will
come in the institutions’ compliance
arms,” said PwC’s UK banking leader
Andrew Gray, “although headcount
in this area is still a small proportion
of total costs.”
Larger costs will come as capital
buffers are increased. However, the
2019 deadline set by Basel III and pro-
posed in the Vickers’ Report mean
this should be achievable without
too much pain, the report found.
CBI says 8,000 City jobs will be lost
by the end of 2011 as costs are cut
ANALYSIS l Optimisim
% Balance
2001 2011 2009 2007 2005 2003
60
40
20
0
-40
-20
-80
-60
BY TIMWALLACE
FINANCIAL SERVICES

CBI boss John
Cridland, right, has
warned that the
wrong regulation
could damage the
City and the recovery.
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News
4 CITYA.M. 3 OCTOBER 2011
MORE NEWS
ONLINE
@
www.cityam.com
EMBATTLED EMI is set to attract at
least five second-round bids, boosting
owner Citigroup’s hopes of offload-
ing the asset.
Buy-out specialist Ronald Perelman
has emerged as a leading contender,
alongside Warner Music, Vivendi-
owned Universal Music, BMG and
Sony/ATV, which are all expected to
table bids for all or part of the firm.
Warner and Universal Music are
thought to be most interested in the
recorded music arm of the business,
while BMG and Sony/ATV, the firm
half owned by the Michael Jackson
Family Trust, are keen on the music
publishing unit.
Perelman’s Macandrews & Forbes is
thought to prize the recorded music
business most highly.
The possibility of a bidding war
will come as a relief to Citigroup,
which has seen a number of private
equity firms back away from the
process.
Terra Firma, the private equity
firm owned by Guy Hands, lost con-
trol of the asset it bought for £4.2bn
in 2007 after Citigroup decided its
outstanding debts were unsustain-
ably large. The bank, which provided
£3.4bn of debt to the company, is like-
ly to see combined bids of between
£3-4bn for the two sides of the busi-
ness, with the publishing arm seen as
the most valuable.
Five bidders in running
for iconic music firm EMI
BY STEVE DINNEEN
MEDIA

EMI RUNNERS AND RIDERS
Clockwise from top left: BMG chief executive Hartwig Masuch, buy-out specialist Ron
Perelman, Warner Music boss Stephen Cooper and Universal Music chief executive
Lucian Grainge are all mulling bids for EMI. Inset: Sony/ATV, also in the running, is half
owned by the Michael Jackson Family Trust
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News
6 CITYA.M. 3 OCTOBER 2011
CONFERENCE WHISPERS
Second class MPs
Journalists and MPs haven't been the
best of friends recently. So political
hacks on the train to Manchester yes-
terday morning were more than
happy to engage in a bit of petty one-
upmanship. Virgin Trains were offer-
ing £10 upgrades to First Class,
where passengers can use the WiFi
connection for free. Allowing for a
cup of tea (also free in First Class), it
was actually cheaper to upgrade than
it was to pay for the WiFi in the stan-
dard cabin. Soon there was a queue of
journalists waiting to buy an upgrade.
Sadly for the Tory MPs, first class
travel – like champagne – has been
banned for the duration of the confer-
ence because it doesn't really fit in
with the "we're all in it together"
mantra. To say the journalists looked
smug as they left the MPs for the
roomier cabins up front is putting it
mildly.
A slippery business
Enterprise minister Mark Prisk came
under heavy fire at a packed fringe
event last night for the government’s
shock £10bn tax raid on North Sea oil
companies in the last budget. Again
and again he was asked how spring-
ing a surprise tax hike on British ener-
gy firms is consistent with a growth
agenda or deregulation. Prisk said it
was proving very difficult taking on
the civil service on regulation: “We
have to turn the oil tanker that is
Whitehall around!” he repeated ad
nauseum. Luckily for Prisk, the latest
figures show UK oil production down
by a whopping 16 per cent in the last
quarter. That's one big tanker turned
around!
PoliticsHome.com PoliticsHome.com
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
In partnership
with
THE Tories are not doing enough to
promote economic growth, accord-
ing to the overwhelming majority of
panellists on the City A.M./
PoliticsHome Voice of the City
panel.
Sixty-nine per cent of panellists
said the Tories were not doing
enough to promote growth in the
economy, against just twenty-nine
per cent who thought they were.
Two per cent said they didn’t know.
Although most panellists recog-
nised that the Conservative party’s
room for manoeuvre was limited by
its power-sharing agreement with
the Liberal Democrats, many felt
the Tories were giving their junior
coalition partners too much sway.
Several panellists used the analogy
of the tail wagging the dog.
A significant number of panellists
felt the environment for business
and finance was not much better
than it was under Labour, even
though the Conservatives are seen
as the party of private enterprise.
“Just as bad at not standing up for
business as Labour was,” said one
member of the panel.
“They haven’t done anything to
move Britain off the track we were
on under Labour,” added another.
Panellists identified several areas
where the Tories had actively hin-
dered growth, including hostility
towards the City and banking;
increasing the regulatory burden on
companies; failing to fight anti-busi-
ness European laws; and introduc-
ing a cap on immigration.
The panel said Boris Johnson (pic-
tured), the Mayor of London, would
make a better future party leader
and Prime Minister than George
Osborne, who as chancellor is most
responsible for promoting growth.
Excluding those who said they did
not know, 57 per cent picked
Johnson compared to 43 per cent for
Osborne.
The Voice of the City panel, in
association with PoliticsHome, has
been selected to represent a cross-
section of London’s business and
financial community. There were
435 responses.
Don’t know
Yes
No
%
69%
29%
2%
Is the Conservative Party doing
enough to promote growth?
Don’t know
Boris Johnson
George Osborne
%
36%
48%
16%
If you were forced to choose,
who would you pick as the
next Tory leader?
As expected
Much better than expected
Somewhat better than expected
Much worse than expected
Don't know
Somewhat worse than expected
% 29%
8%
8%
35%
6%
23%
Are the Tories in government
performing better or worse
than you expected?
City says Conservatives are not
doing enough to promote growth
BY DAVID CROW IN MANCHESTER
CONSERVATIVE
CONFERENCE
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BANKS have yet to see any progress on
the government’s deregulation agen-
da for small businesses, according to
the chairman of Lloyds Banking
Group.
During a fringe event of the
Conservative Party conference in
Manchester, Sir Win Bischoff (pic-
tured) was asked whether he has
seen an impact from govern-
ment initiatives aimed at
reducing red tape, like the
“one in, one out” rule for
regulations.
“No,” he said. “I'm sure
there is a great deal happen-
ing or promised to happen
but we don’t yet see it. We
see from our small
enterprise cus-
tomers that regu-
lation is still a
terrible burden.”
Bischoff also
warned that
additional regulation risks taking the
country in the opposite direction:
“It’s essential that the future compet-
itiveness of the UK is preserved,” he
said.
In response, enterprise minister
Mark Prisk compared the Whitehall
apparatus to a “tanker” that the gov-
ernment has had trouble in turning
around.
He claimed the government is
beholden to agreements struck
before the election that
enshrine regulation.
Referring to the Agency
Workers’ Directive deal
reached between the CBI
and TUC, he asked:
“Do we try and tinker
with a directive
that we’re
not com-
f o r t a b l e
with and
t h e n
make it a
l o t
worse?”
Lloyds yet to
see cut in red
tape for SMEs
LOWER corporate taxes, lower state
spending and protected infrastructure
spending are among 15 measures pro-
posed today by the Institute of
Directors (IoD) which it believes would
boost the economy.
Launched by new director-general
Simon Walker, the IoD’s 15-point plan
to “return Britain to a growth trajecto-
ry” covers taxation, regulation, plan-
ning laws and education policy.
The government is cutting corpora-
tion tax from 26 per cent to 23 per cent
by 2014. That will take the UK from
19th to 13th among the OECD coun-
tries and is “not enough” says the IoD.
“A 15p rate would put us in 2nd
place, a major competitive advantage.”
The report also proposes that state
spending be gradually reduced to 35
per cent of GDP, compared with 50.1
per cent this year; that the Bank of
England expands its quantitative eas-
ing programme by a further £50bn
immediately; and that the UK should
“assess whether its uniquely aggres-
sive carbon emissions targets put it at
a competitive disadvantage”.
Walker also hit out at those who call
for more government spending in an
effort to boost short-term demand:
“The Government's deficit reduction
programme must go faster and fur-
ther before the economy is on track.”
IoD: create jobs
with 15pc tax
on employers
BY JULIET SAMUEL
BANKING

UK ECONOMY

News
8 CITYA.M. 3 OCTOBER 2011
THE NEW higher minimum wage
will stifle job creation in the UK’s
shops, the British Retail Consortium
(BRC) has said.
The national minimum wage was
hiked by 2.5 per cent to £6.08 per
hour, taking effect over the week-
end.
“This is a disproportionate rise
which makes it harder for retailers
to maintain and create jobs in the
current climate,” the BRC said.
“Retail employs nearly three mil-
lion people and a third of our staff
are 25 or younger,” added BRC direc-
tor general, Stephen Robertson.
“Retailers are offering young people
their first step on the career ladder
and backing that up with training
and development opportunities.”
The group said next year’s rise
should be no higher than 2.1 per
cent.
The government will come under
increasing pressure to limit the
increase or even lower the level of
the minimum wage, especially for
younger workers.
Increased minimum wage
will cost jobs, say retailers
Retailers are concerned about the rise in the minimum wage Picture: REX
BY JULIAN HARRIS
RETAIL

EXPECTATIONS of economic growth
are weakening, according to 200 fund
managers surveyed by Capital Spreads,
City A.M. can exclusively reveal.
Lloyds Bank Corporate Markets is
reporting low business confidence in a
separate study, also out today.
Fund managers are 18 per cent
more pessimistic than they were in
May, according to Capital Spreads. At
the end of the Q2, 63 per cent expected
the economy would improve over the
next 12 months; that fell to 43 per cent
by the end of August.
Similarly, in May 13 per cent expect-
ed the economy to weaken, compared
with 31 per cent in August.
Lloyds’ barometer of business confi-
dence found a slight improvement in
September, but still anticipates “very
sluggish growth” into 2012.
The survey peaked at a net balance
of 36 per cent of businesses feeling
increasingly positive about the econo-
my in June. That plummeted to -3 per
cent in August and rose again last
month to seven per cent.
“Virtually every economic indicator
for the last quarter has been a disap-
pointment and, whilst we are probably
not yet in a recession – and may never
actually record a technical downturn –
we are certainly nowhere near the
kind of growth that would restore con-
fidence,” said Simon Denham, chief
executive of London Capital Group.
Despite high inflation in the UK and
rising prices in the Eurozone, analysts
believe low confidence will push the
Bank of England (BoE), European
Central Bank (ECB) and Federal
Reserve towards more quantitative eas-
ing (QE).
“It is very possible that a flurry of
weak data and surveys over the next
few days could prompt the BoE into
launching QE2 as soon as Thursday,”
said IHS Global Insight’s Howard
Archer.
Confidence is
low, says poll
BY TIM WALLACE
ECONOMY

News
9
ANALYST VIEWS: WHAT CENTRAL BANK
DECISIONS DO YOU EXPECT? Interviews by Tim Wallace

LUIGI SPERANZA | BNP PARIBAS
Despite Eurozone inflation rising sharply from 2.5 per cent to 3 per
cent we remain of the opinion that the ECB will act boldly in the meeting this
week. We expect a 25 basis point rate cut, the announcement of a 12-month
LTRO and possibly a new covered bond purchase programme.


CHRIS WILLIAMSON | MARKIT
Ben Bernanke is to speak before a bipartisan congressional panel on
the US economy tomorrow. His words will be watched closely as investors mull
over the odds of another round of QE from the Fed. Unemployment figures have
been weak and anaemic growth is insufficient to prevent those rising.


ALEX LAWSON | MONEYCORP
The pound will come under pressure in the build up to the MPC deci-
sion with scope for a bounce if no more QE is announced. There has been specula-
tion that the ECB will cut interest rates by 0.5 per cent to 1 per cent, although
their preoccupation with inflation will probably stay their hand for now.

THE hedge fund run by star trader
David Harding has defied the indus-
try’s poor performance this year to
make returns on investments of
around 6.3 per cent so far.
City A.M. understands that Winton
Capital, which uses scientific
research to spot patterns in market
behaviour, has seen funds under
management rise by about 45 per
cent to $25bn (£16.04bn) since 31
December.
Market swings meant August was
an especially grim month for hedge
funds but Winton made gains of
around two per cent. It is understood
returns were marginally positive last
month, when the Eurozone debt cri-
sis weighed on markets.
Harding, a Cambridge natural sci-
ences graduate, has assembled a large
research team which make up about
half of Winton’s 200 staff. In August it
was ranked as Europe’s fifth largest
hedge fund. Harding has twice built
“black box” funds, which use sophisti-
cated computer programmes. In 1987
he co-founded AHL and ten years
later, after it was bought by Man
Group, he left to set up Winton. He
received a dividend payment of £54m
in 2009.
Both funds run managed futures
strategies or commodity trading
advisers – complex, computer-driven
strategies following trends in a range
of global futures markets, including
oil, equities, bonds and commodities.
Winton Capital Management
increased pre-tax profits to £183.7m
last year, up from £52.8m.
Star hedge
fund Winton
hits $25bn
MARKET turmoil is expected to
have taken its toll on US invest-
ment banks in the past quarter,
slashing revenues and bonus pots
as the major Wall Street brokers
suffer from shrinking trading vol-
umes.
Analysts expect Goldman Sachs
and Morgan Stanley to be hit partic-
ularly hard, with Goldman’s own
proprietary investments seen as
likely to record sharp declines.
Analysts at Bank of
America/Merrill Lynch expect a
drop of $2.29bn (£1.47bn) in quar-
terly revenues at the bank’s invest-
ments and loans division, which
relates to bets made with its own
capital.
If the forecasts are correct,
Goldman and many of its rivals will
be forced to cut drastically into
bankers’ pay pots to keep overall
pay-to-earnings ratio in line.
US research house Bernstein has
suggested that “a three per cent
reduction in the compensation
ratio of its trading business will
allow Goldman Sachs to beat its
cost of capital in [some] units under
Basel III capital rules”.
But a cut in pay costs is likely to
mean further lay-offs on trading
floors since many banks have
ramped up higher fixed costs in pay
due to overhiring and greater regu-
lation of bonuses.
Even those who were originally
bullish on Wall Street have become
gloomier in this year’s third-quar-
ter previews due to stagnation in
the US economy.
Most major revenue earners for
banks are expected to have been hit
hard by the slowdown in trading
activity. Analysts at Keefe, Bruyette
& Woods expect Goldman’s com-
bined revenues from debt and equi-
ty capital markets (DCM and ECM)
to decline by some 70 per cent to
$255m “as volatility and uncertain-
ty in the market effectively brought
both DCM and ECM to a halt during
the quarter”.
Bernstein’s Brad Hintz has also
revised down his estimates for near-
ly every division in the major
banks. “Fixed income trading units
faced a difficult third quarter...
Equity capital markets desks were
quiet... and announced M&A activi-
ty slowed,” Hintz wrote in a note.
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Reduced profitability for Goldman Sachs and
Morgan Stanley set to bite into bankers’ payouts
BANKING

News
10 CITYA.M. 3 OCTOBER 2011
David Harding is seen as a hedge fund pioneer for his work on AHL and Winton Capital
NEWS | IN BRIEF
Intel agrees to buy Telmap
Chipmaker Intel has agreed to acquire
mobile navigation software maker
Telmap, the chief executive of the Israel-
based company said yesterday. Details
of the deal were not disclosed but Israeli
media said Intel is paying about $300m
(£192m) to $350m. Telmap chief Oren
Nissim declined to comment on the price
and said the deal was expected to close
before the end of the year. Telmap will
become a wholly-owned subsidiary of
Intel, which has two plants and four
development centres in Israel.
Old Mutual mulls sale of Dwight
Old Mutual Asset Management, a sub-
sidiary of London-based investment
company Old Mutual, is looking to sell
Dwight Asset Management Company,
according to Reuters. Dwight, which had
$45.3bn (£29bn) in assets as of 30
June, is an institutional fixed income
asset manager that specialises in stable-
value funds for retirement plans.
Vale faces bar on Amazon mine
Vale, the world’s second-largest mining
company, may be unable to develop a
massive new iron-ore mine in the
Amazon after archeologically and envi-
ronmentally sensitive caves were found
at the site, the Estado de S. Paulo news-
paper reported yesterday. The caves
permeate much of the iron formations in
the 3.4- billion-tonne Serra Sul deposit,
Estado said. Serra Sul is part of Vale's
Grande Carajas mining project in Brazil.
INVESTMENT BANK EARNINGS
Goldman 2.98 1.35
Morgan Stanley 0.05 0.37
JP Morgan 1.01 1
Citi 0.7 0.89
Bank of America 0.11 0.2
EPS
Q3
2010 ($)
Forecast
EPS Q3
2011 ($)
BY PETER EDWARDS
HEDGE FUNDS

GYM chain Fitness First has pulled its
Singapore flotation as global market
turmoil shows little sign of easing.
Private equity owner BC Partners
was expected to raise around £500m
in a listing which would have valued
Fitness First at between £1bn and
£1.2bn. It has postponed the initial
public offering (IPO), however,
because of the volatility sweeping
international markets, and after sim-
ilar moves by several other UK and US
companies.
Fitness First has built a strong pres-
ence in the Far East, including in
Singapore, Hong Kong, Thailand, and
Malaysia, and has more than 1.4m
members in 17 countries in total.
City A.M. understands BC Partners
has not yet decided when to re-
attempt the listing but reports have
suggested it could look elsewhere for
an exit. Earlier this month CVC
Capital Partners took a 51 per cent
stake in Virgin Active in a deal valu-
ing the gym group at about £900m.
The origins of Fitness First go back
to 1992 when entrepreneurs Mike
Balfour and Christopher Pearce set up
their first club in Bournemouth
before floating the outfit on the
Alternative Investment Market four
years later. Private equity house
Cinven took over the company for
£400m in 2001.
BC Partners, which declined to
comment, has 19 portfolio companies
with a total turnover of €32bn
(£27.48bn). It bought Fitness First
from Cinven at an enterprise value of
£835m in 2005, vowing to help fuel
the group’s international expansion.
Fitness First
pulls £1.2bn
Singapore IPO
ADVERTISING spend in the UK fell by
1.2 per cent in the second quarter,
adding to an increasingly gloomy out-
look for the sector.
The fall was in stark contrast to the
global advertising spend, which
increased 5.7 per cent, according to
new figures from Nielsen.
In an increasingly polarised field,
emerging markets saw spending rock-
et, led by an 18.2 per cent gain in
Latin America, while Europe fell 3.2
per cent overall.
Revenue dropped in 16 out of the
36 global markets – the first signifi-
cant decline since the third quarter of
2009. Total expenditure for the quar-
ter was $127bn (£81.5bn).
Declines in spending for the fast
moving consumer goods category in
Europe and North America, and the
continued decline of newspaper ads,
contributed to slower growth in these
regions.
Randall Beard, head of advertiser
solutions for Nielsen, said:
“Compared to the 8.9 per cent growth
rate in the first quarter of the year,
there was definitely some slowdown.
But, based on the global economy and
the financial problems many coun-
tries have experienced, the overall fig-
ure is still great news.”
E.ON is understood to have hired
Goldman Sachs to oversee the sale of
its €2.5bn-rated (£2.15bn) Open Grid
Europe gas distribution network.
Open Grid Europe is a subsidiary of
Ruhrgas, the business E.ON acquired
for €10bn in 2003.
The company is under pressure due
to Germany’s decision to abandon
nuclear power, which tipped it into
its first quarterly loss. In response it
announced an overhaul of its busi-
ness aimed at slashing costs by
€1.5bn, including up to 11,000 job
cuts.
The firm is also amassing a war
chest for a push into emerging mar-
kets, with chief executive Johannes
Teyssen aiming to sell €15bn of assets
by the end of 2013.
E.ON employs around 12,000 peo-
ple in the UK and more than 79,000
worldwide.
UK advertising
spend falls by
1.2 per cent
E.ON hires Goldman to
oversee sale of gas unit
Johannes Teyssen CEO of German utility giant E.ON Picture: REUTERS
BY PETER EDWARDS
LEISURE

Groupon’s $750m flotation is on hold
while Facebook’s listing has been put
back to next September or later.
Manchester United’s £640m listing in
Singapore has also stalled.
FAST FACTS | LISTINGS
News
CITYA.M. 3 OCTOBER 2011
BY STEVE DINNEEN
ENERGY

11
BY STEVE DINNEEN
ADVERTISING

SIR PAUL JUDGE OPENS PENTHOUSE
HOME FOR COFFEE AND CHAMPAGNE
IT WAS hard to know who won the
cake-making competition at Sir Paul
Judge’s coffee morning on Friday –
“they were all anonymous” – but
with free champagne from Bollinger
and chocolate from Green & Blacks
on tap, no-one was counting.
The Chartered Institute of
Marketing president threw open his
riverside penthouse for the
Macmillan Cancer Support fundrais-
er, co-hosted with The Marketing
Society’s chairman Suki Thompson.
Virgin Media’s marketing director
Jeff Dodds, Sarah Speake of Barclays
Capital and Cass Business School
director Paola Barbarino were among
the 140 guests who raised £5,400 on
the day, helped by Judge putting his
second home in Fuerteventura on
the market for £1,200 for one week in
the silent auction.
SUNDAY DRIVER
TRUST male supermodel David Gandy
to make an appearance in the City on
the quietest day of the week.
But there he was on Sunday morn-
ing, signing copies of his new coffee
table book in Searcys Champagne Bar
at One New Change. “Like One New
Change, David epitomises elegance
and style,” gushed Gandy’s PR aide.
The Capitalist
12 CITYA.M. 3 OCTOBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
[email protected]
Follow The Capitalist
on Twitter: @dennysharriet
EARN FASTER BY CHOOSI NG DOUBLE POI NTS
OR A FREE NI GHT CERTI FI CATE.
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T O F RE E S TAY S.
THEY steered clear of the eight-course taster menu
at £150 per head, but the three hedge fund man-
agers who visited chef Nigel Mendham’s new
restaurant Thirty Six at Dukes Hotel on St James’s
Place still managed to rack up a sizeable tab.
Starting with three glasses of Perrier Jouet
Blanson champagne to accompany their starters
of carpaccio, scallops and red mullet, the group
moved on to a £395 bottle of vintage Chateau
Margaux to help along the salt marsh lamb,
Highland venison and lemon sole. Monbazillac pud-
ding wine, Fernando de Castilla sherry and Ramos
Pinto 10 Year Old Tawny port completed the
evening blowout, which left the three gourmand
Mayfair financiers £730 lighter.
BILL OF THE WEEK
News
13 CITYA.M. 3 OCTOBER 2011
OIL MAJOR BP is clinging on to the
prospect of selling its majority
stake in Pan American Energy, an
Argentine oil producer, despite
reports that the deal is on the
brink of collapse.
BP’s plan to sell its 60 per cent
stake to Bridas Corp, a company
owned by Chinese oil producer
Cnooc and Argentina’s billionaire
Bulgheroni family, has hit opposi-
tion from politicians and may not
be completed when the accord
expires next month, it emerged
last week.
The $7bn (£4.5bn) deal,
announced in November last year,
is part of the company’s strategy
sell various assets to cover the costs
of the Gulf of Mexico oil spill.
Its collapse could jeopardise
chief executive Bob Dudley’s future
at the oil firm. Dudley has been
under mounting pressure to revive
the oil giant’s share price, current-
ly below the level they traded at
when the company capped the
Macondo well a year ago.
BP’s sale of its stake in Pan
American has been hampered by
the political situation in Argentina.
It is thought that the deal could be
delayed until after the presidential
elections next month, according to
reports this weekend.
“Deals of this scale take time to
finalise with competition authori-
ties – we are working with the
other shareholders in PAE to secure
competition approvals and com-
plete the deal,” BP said.
“We can confirm the deal has
not yet closed as Argentine compe-
tition approvals remain outstand-
ing, but we remain optimistic that
these approvals will be granted in
due course.”
BP clinging to $7bn
Pan American sale
BY KASMIRA JEFFORD
OIL & GAS

FRENCH luxury goods maker
Hermes sees no sign yet of affluent
buyers tightening their purse
strings in spite of a sombre global
economic outlook.
Speaking at the brand’s show at
Paris Fashion Week yesterday, chief
executive Patrick Thomas said: “For
the moment, there is no impact on
our sales.”
He added that he believed the
purchasing power of luxury con-
sumers had not changed yet.
“But the fact that we see nothing
today, does not mean that we will
not see anything tomorrow,” said
Thomas.
“When there are moments of
macroeconomic concern, they
always tend to affect our markets.”
The luxury goods industry has
continued to grow at a solid pace
thanks to tourist buyers in Europe
and strong appetite in emerging
markets, while more affordable
products such as L’Oreal and
Clarins cosmetics have felt a slow-
down.
Hermes, known for its €10,000
euro Kelly handbags, joins the cho-
rus of luxury brands such as Dior,
Louis Vuitton and Lanvin who have
declared buoyant trading, despite
lower consumer confidence.
Last week, luxury goods stocks
such as Burberry, LVMH, Swatch
and Richemont took a beating as
analysts expressed concern the
Chinese market – the industry’s
main growth engine – could slow
and global demand could weaken.
Late last month, investors start-
ed putting pressure on luxury valu-
ations, based on the expectation
that market could be hit just as
others have been.
Luxury goods maker Hermes sees
no sign of affluent cutting spending
RETAIL

NEWS | IN BRIEF
Cairn finds gas in Sri Lanka
Cairn India, a subsidiary of Cairn Energy,
said yesterday it has discovered natural
gas in Sri Lanka’s offshore Mannar
Basin, confirming an earlier announce-
ment by Sri Lankan President Mahinda
Rajapaksa. “Further drilling will be
required to establish the commerciality
of the discovery,” Cairn said in a state-
ment, referring to the find at the CLPL-
Dorado-91H/1z well drilled at a water
depth of 1,354m.
Japan in bid to stop cyber crime
Japan plans to work more closely with
private companies by sharing informa-
tion on cyber attacks after defence con-
tractor Mitsubishi Heavy Industries was
hacked, Nikkei business daily reported
yesterday. The government also aims to
ratify an international treaty on online
crimes. The US called on Japan to take
more action after Mitsubishi Heavy,
which works closely with Boeing, said in
September network information such as
IP addresses may have been leaked.
China fights back over yuan
China's official news agency yesterday
derided US lawmakers’ efforts to pres-
sure Beijing over its currency policy as
“expedient and shallow”, saying they
were resorting to an old habit of deflect-
ing blame on China. Xinhua said US criti-
cism tended to come when the US
economy is slow or an election looming. The easyJet founder is thinking big in his plans to launch new airline Pictures: REUTERS
EASYJET’s founder Sir Stelios Haji-
Iaonnou is considering launching a
transatlantic airline which would see
him go head to head with British
Airways and Virgin Atlantic.
The new airline branded Fastjet is
unlikely to directly compete with
easyJet, which operates flights mainly
in Europe, according to reports this
weekend.
A source close to the company told
City A.M that Sir Stelios “was keeping
his options open” and considering a
number of routes.
It was revealed last week that Sir
Stelios had written to easyJet saying he
plans to launch a rival airline called
Fastjet and accusing the management
of orchestrating a smear campaign
against him.
Sir Stelios alleged that easyJet
breached the terms of a “comfort let-
ter” dated October last year – making
it void, a claim which easyJet said it
“emphatically rejects”.
The letter – which prevents him
from setting up a rival airline – includ-
ed a “mutual respect” clause that pre-
vents Sir Stelios and easyJet from
speaking negatively of each other.
EasyJet vowed to “take necessary
action” if Fastjet infringes on the
rights of the airline and its investors.
A two-year row over the licensing of
the brand was resolved last year, when
easyJet increased the annual royalty it
paid to easyGroup.
Under the agreement, easyJet said
Sir Stelios agreed not to use any deriva-
tion of his name to brand any other
airline within Europe for five years.
A spokesperson for Sir Stelios
declined to comment last night.
Sir Stelios’ Fastjet
may compete on
Transatlantic route
BY KASMIRA JEFFORD
AVIATION

ANALYSIS l BP PLC
p
26Sept 27Sept 28Sept 29Sept 30Sept
410
395
405
400
390
385
388.50
30 Sept
FINANCIER Nat Rothschild has made
a £120m windfall following the com-
pletion of the reverse takeover of
Indonesian coal mines in his invest-
ment vehicle Vallar.
Rothschild and three partners,
including former Anglo-American
executive James Campbell, invested
£100m into Vallar last year, and put
£20m into “founder shares”, which
entitled them to a bigger stake once
the vehicle made its first acquisition.
In November last year Vallar
bought stakes in Berau Coal Energy,
Indonesia’s fifth-largest coal produc-
er and Bumi Resources, in a $3bn
cash and share transaction.
The company, renamed Bumi Plc,
revealed the issue of 16m new shares
to the founders after the market
closed on Friday.
It is understood that Rothschild
invested 86 per cent of the original
£20m, entitling him to about £120m
of the payout, while Campbell, who
holds 10 per cent of the founders’
shares, received £13.8m.
Bumi, which is 55 per cent owned
by Indonesia’s powerful Bakrie fami-
ly, part of Indonesia’s ruling coali-
tion, closed at 863p on Friday,
valuing the company at £1.5bn.
Rothschild to
land £120m
Bumi windfall
The award winning Galaxy S II
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EQUITY trading platform Chi-X
Europe today launches its own
Europe-wide stock index series linked
to its daily trading prices as it seeks to
capitalise on its growing market share
and compete with providers such as
FTSE and EuroStoxx.
Chi-X, Europe’s biggest equities
platform by volume, has created two
pan-Europe and two eurozone indices
of the biggest and most liquid stocks
in those regions, with Russell Indexes.
The Chi-X Russell Index series, or
Cheris for short, are designed to open
up valuable new trading avenues for
Chi-X, allowing it to offer clients hedg-
ing options such as derivatives and
futures contracts linked to them.
They will also give it access to new
revenues from selling its market data.
Chi-X said the indices use all its
own trading prices rather than the
collated prices of different national
exchanges to achieve “unprecedent-
ed” consistency of results.
“We believe our index series can
bring a new dynamic to the market
and will be a force for improving upon
the status quo,” chief executive
Alasdair Haynes said.
The biggest, Cheri PanEurope, has
216 constituents from 14 countries in
five currencies and a 60-strong subset,
the PanEurope 60. The Cheri
Eurozone includes 130 stocks from
ten countries with a 40-stock subset.
Chi-X launches index series
to rival FTSE and EuroStoxx
BY ALISON LOCK
CAPITAL MARKETS

News
14 CITYA.M. 3 OCTOBER 2011
Nat Rothschild is in line for a £120m pay-out after putting in £17m Picture: REX
Investors can stop being cautious now
SO far investors seem to have
been wary of Bumi. Its complex
structure and ongoing acquisi-
tion wrangles have meant many
are reluctant to follow the
Rothschild blank cheque ven-
ture, but it’s unlikely to stay that
way for long.
First-half results in mid-August
saw underlying profits of $54m
(£32m) amid a bullish outlook on
thermal coal prices, which the
company says should remain
strong over the short and medi-
um term on higher demand from
Asia and Europe.
Bumi has a unique exposure to
the Indonesian coal market – the
largest in the world – and an
investor day last week should
have gone some way to allay
fears. If prices continue to rise,
and once it completes the acqui-
sition of a majority stake in PT
Bumi Resources Minerals that’s
been making things look compli-
cated, then we expect its follow-
ing to increase.
BOTTOMLINE
Analysis by Elizabeth Fournier
ANALYSIS l Bumi PLC
p
26Sept 27Sept 28Sept 29Sept 30Sept
900
870
890
880
860
850
863.00
30 Sept
THE QATARI sovereign wealth fund is
investing $775m (£497m) in
European Goldfields, the London-list-
ed company behind one of the
biggest gold-mining projects in
Greece, in a move that marks a major
boost for the debt-laden country.
Qatar Holding, the investment
arm of the Qatar Investment
Authority which also owns Harrods,
will provide a $600m loan facility
that will allow European Goldfields
to push ahead with production at its
three key mines.
In July, Greece granted European
Goldfields a long-awaited permit
that allows it to mine for gold in the
north of the country, a move set to
turn the London-based firm into the
European Union’s largest primary
gold producer.
The deal was announced after
Qatar’s Emir Sheikh Hamad bin
Khalifa al-Thani met Prime Minister
George Papandreou in Athens this
weekend.
“Qatar’s investments show trust in
the Greek economy,” Papandreou
told a news conference after the
meeting.
The first gold is expected next year
and the project will bring more than
1,500 jobs in the north-east of the
country.
Under the agreement, European
Goldfields’ shareholders will also be
offered a further $150m of loan
notes, with the rights for Qatar to
eventually take up 20 per cent in the
company if the loans are taken up
and other options exercised.
Qatar Holding has also bought a
9.9 per cent stake in European
Goldfields from an existing share-
holder, the Greek building firm
Ellaktor.
The deal marks the second major
investment in Greece by Qatar
Holding in two months after the Gulf
state struck a deal in August to pro-
vide funding for a merger of two of
the recession-hit country’s largest
banks.
Ahmad Mohamed Al-Sayed, chief
executive of Qatar Holding, said:
“Our latest investment helps to fur-
ther diversify our investment portfo-
lio in the commodities sector, with a
specific position in gold resources
and another long-term partner
secured for the future.”
Qatar invests
$1bn in Greek
gold mining
EUROPE’S biggest defence contrac-
tor BAE Systems has won a $134m
(£85m) deal from the US for 70
M777 howitzers, potentially safe-
guarding 380 British jobs.
The company said the weapons
will be manufactured in Barrow-
in-Furness, northern England, in a
programme to run until October
2013.
Final assembly will take place in
Mississippi in the United States.
The howitzers will be used by the
US Army’s Infantry Brigade
Combat Teams.
BAE Systems announced last
week that 2,942 jobs would be lost
due to smaller global defence
budgets hitting orders for its fight-
er jets.
BAE yesterday declined to com-
ment on the media speculation.
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BAE Systems wins
£85m deal with US
BY KASMIRA JEFFORD
MINING

Qatar Holdings chief
executive Ahmad al-
Sayed said the deal
would diversify its
investment portfolio
Picture: REUTERS
BY HARRY BANKS
MINING

News
15 CITYA.M. 3 OCTOBER 2011
Liberum Capital was appointed nomi-
nated adviser to European Goldfields
when the gold miner listed on the
alternative investment market (Aim)
in 2004, with Michael Rawlinson lead-
ing the team.
Rawlinson, a well-known name in
mining circles, began his career with
the now-defunct merchant bank
Flemings, before joining Cazenove
after its merger with JP Morgan,
where he rose through the ranks and
was made partner.
He worked on the initial public
offerings of a number of natural
resources companies including Billiton,
Xstrata, Vedanta and Anglo
American.
Rawlinson also advised Anglo-
Swiss miner Xstrata on its $18bn
acquisition and $12bn financing of
their acquisition of Falconbridge, the
Toronto-based nickel and copper com-
pany in 2006.
More recently Rawlinson’s expertise
in the sector ensured that Liberum
was granted a role in advising
Glencore on its giant IPO. Rawlinson
sits on the board of Liberum and
heads the boutique investment bank’s
mining, resources and energy division.
Lazard & Co.’s metals and mining
team was appointed as financial
advisers to European Goldfields on its
deal with Qatari Holding.
MEET THE ADVISERS
MICHAEL
RAWLINSON
LIBERUM
TESCO reports it half yearly results on
Wednesday with analysts predicting
international sales offsetting sluggish
figure for the UK.
The grocer, which has slashed the
prices on thousands of lines in a bid
to trigger sales rises, will also be eye-
ing second quarter results from rival
Sainsbury’s, which is reporting on
the same day.
New Tesco chief executive Philip
Clarke has been putting his stamp on
the company, with a shake-up of prod-
uct ranges as well as pulling the busi-
ness out of Japan.
The £500m product price reduc-
tion plan is being seen a bold move to
steal a march on other supermarkets
in the so-called ‘Big Four’, particular-
ly Asda which has its own price guar-
antees.
Keith Bowman of Hargreaves
Lansdown said: “Coming results are
expected to see international sales
remaining strong, whilst same store
UK sales are forecast to make further
modest recovery. Prior to the
announcement, analyst opinion cur-
rently denotes a buy.”
Meanwhile Sainsbury’s is pinning
its hopes on its emphasis on helping
families to budget for their shop.
Its first quarter update saw like-for-
like sales excluding fuel, but unlike
Tesco still including VAT, gaining by
1.9 per cent.
Bowman said: “The coming update
is expected to see a similar like-for-
like performance reported, aided by
fuel price campaigns.
“Nonetheless, worries over profit
margins remain, with analyst opin-
ion currently denoting a weak hold.”
Other corporate announcements
expected this week include updates
from plumbing group Wolseley,
retailer Halfords and recruitment
company Hays.
Hays, like many other recruiters
has been relying on international
growth, particularly in Asia, as the
UK economic climate remains rela-
tively weak.
Tesco and Sainsbury’s in
battle to step up sales
BY JOHN DUNNE
RETAIL

News
16 CITYA.M. 3 OCTOBER 2011
BROOKLYN BRIDGE BLOCKED BY PROTESTS
POLICE squared off against protesters on the Brooklyn Bridge during an Occupy Wall Street
march in New York over the weekend. More than 700 anti-Wall Street protesters were arrest-
ed for blocking traffic lanes and attempting an unauthorised march across the New York
landmark. Picture: REUTERS
MORE NEWS
ONLINE
@
www.cityam.com
Tesco chief executive Philip Clarke Sainsbury’s boss Justin King
News
18 CITYA.M. 3 OCTOBER 2011
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Entertainment
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$
HEADHUNTERS have been called in
to find a new chairman for the
Eurasian Natural Resources
Company (ENRC), despite confirm-
ing the incumbent Johannes
Sittard in the role in its corporate
governance review last Wednesday.
The FTSE 100 Kazakstan mining
company last week said it was
“fully supportive” of the board-
level reshuffle that kept Sittard
at the helm as chairman, with
Felix Vulis continuing as chief
executive after agreeing to with-
draw his resignation.
But headhunter Korn Ferry has
suggested about two dozen names
to replace Sittard, according to
reports, with the list understood to
include Brian Gilbertson, the for-
mer chief executive of BHP Billiton.
Separately, Glencore’s chief exec-
utive Ivan Glasenberg is believed to
have nominated mining veteran
Terence Wilkinson, the non-execu-
tive chairman of Glencore sub-
sidiary Century Aluminium who
joined ENRC last week as an inde-
pendent non-executive director.
Sources have suggested Sittard
could be gone by the end of the
year.
ENRC launched its Corporate
Governance Review in June, follow-
ing long-running tensions between
the group’s founder shareholders
and board members that culminat-
ed in Sir Richard Sykes, Kenneth
Olisa and two other directors being
voted off the board with immedi-
ate effect earlier that month.
Last week’s streamlined board of
11 directors was designed to end
the turmoil at the FTSE 100 firm,
whose shares have underper-
formed the market by almost 20
per cent since the start of the year.
Announcing the conclusion of
the review, ENRC said: “The
review set out to establish a
board structure to best support
the company through the next
phase of its growth and included
extensive research of stakeholder
opinion. The review concluded
that the group will be best served
with Dr Johannes Sittard remain-
ing as chairman.”
ENRC was unavailable for com-
ment.
Kazak miner plots
to oust chairman
BY HARRIET DENNYS
MINING

Asian buyers
show thirst for
expensive wine
PLUNGING global markets and deep-
ening fears of another world recession
failed to dampen Asian buyers’ thirst
for vintage wines at Sotheby’s October
wine auction in Hong Kong. The two-
day event held from 1-2 October put
rare Imperials of Chateau Lafite,
Latour and Cheval Blanc and
Jeroboams of Mouton and Haut Brion
under the hammer, as well as a selec-
tion of Lafite from the Rothschild’s pri-
vate cellars. The sale raked in $12.7m
(£8.15m) in total.
New York-based Sotheby’s said its
first day sale, the eighth part of the
long-running Classic Cellar of a Great
American Collector, sold all bottles,
fetching a total of $3.5m, just under
Sotheby’s highest pre-auction estimate
of $4m. One of the auction highlights
was the sale of 12 bottles of 1990
Chateau Petrus at $43,436.
The second day of the auction raised
$9.2m, including The Ultimate Nine
from The Bordeaux Winebank
Collection, with the auction led by 12
bottles of 1988 Domaine de la
Romanée Conti for $116,346.
BY HARRY BANKS
CONSUMER

NEWS | IN BRIEF
Rail fares wipe benefit of commuting
The projected eight per cent rise in rail fares
next year looks set to tip the balance of afford-
ability against young professional families and
first time city buyers seeking to move out of
London. Research from home finders County
Homesearch found the combined cost of travel
season tickets and mortgage repayments for
homeowners in commuter towns is now
almost equal to some areas of London.
Gazprom weighing new Turkey deals
Russia's Gazprom is mulling new deals in
Turkey after it received notification from
Turkish state pipeline company Botas that it
had decided to end a contract to buy 6 billion
cubic metres (bcm) of gas annually, a
Gazprom source said yesterday. Botas decid-
ed to end the contract to receive gas via the
so-called western line due to a pricing dis-
agreement.
A case of 1990 Chateau Petrus sold for $43,436 in Hong Kong at the weekend
Traders need to insure against the downside
E
XCUSES, excuses followed by
more excuses. When is the
broader asset management
industry going to put its hands
up and say; “We were wrong,” or “I’m
going to fall on my sword, sell my five
houses on the Wentworth Estate and
distribute the proceeds amongst those
foolhardy enough to believe I could
make them money?” The answer of
course is “never”.
We’ve just had a dreadful quarter
for stocks and the long equity brigade
will be putting on their tin hats wait-
ing for the redemptions.
In this very column a month or so
ago I bemoaned a whole raft of excus-
es touted for underperformance.
One of the oldest excuses in the
book which is going round again is
about mandate.
“If you look at our mandate,” they
say, “we aren’t actually allowed to
hedge our long portfolio.”
“We have to hold a minimum expo-
sure in stocks,” they say, “and the
investors get very worried whenever
we start talking about protection,
overlays and options.”
Hmm, are these managers sure that
it’s the investors who are worried
about overlays? Or is it the fact that
after all these years of hugely volatile
stock markets the broader asset man-
agement industry still hasn’t both-
ered to learn what an option is?
Let’s be clear here. No-one is talking
about adding complicated OTC prod-
ucts to a portfolio. What I am suggest-
ing is really basic – go and open the
Derivative Book for Idiots on page one,
read what a long put is. Turn to page
two to learn how a long put added to a
long underlying stock portfolio cre-
ates a hedged downside with only a
slightly diminished upside. Then close
the book.
Then the asset manager has to find
out which exchange offers a put on
the index or stocks that he or she is
most exposed to and wait for the rally
to buy some protection. That last bit is
perhaps the most challenging.
You see people only talk about pro-
tection when the VIX, or whatever the
European at-the-money volatility
equivalent measure is, is trading sky
high and accompanying plummeting
markets.
This is where, I suggest, the prob-
lems lie. Downside protection isn’t
sexy. In fact for many European regu-
lators it’s downright heresy to want to
own downside products.
Until managers gain a little bit
more knowledge about listed prod-
ucts available and perhaps are willing
to give up on a minimal amount of
upside gains when the times are good,
then we are doomed to repeat the
same old mistakes and come up with
the same old tired excuses.
Steve Sedgwick is a CNBC anchor
CNBC COMMENT
STEVE SEDGWICK
London 2012 TIME TO GET READY
Technology can increase flexibility during Games
The Transport for London and London 2012 Travel Advice
for Business team answers your Olympic readiness questions
Q.
OUR EMPLOYEES RELY HEAVILY
ON FACE-TO-FACE MEETINGS IN
OUR OFFICE . HOW CAN WE MAN-
AGE THIS WITHOUT LOSING BUSINESS?
A.
During the Olympic and
Paralympic Games, the trans-
port network will be much
busier than normal. This will have a
big impact on employees and clients,
particularly when they are travelling
to and from work. Businesses that
have a lot of meetings should start
planning now to minimise disruption
and ensure their business continues
to run smoothly in the run up, and
during, the Games.
It is essential that you understand
your employees’ travel behaviour first,
before thinking about solutions.
Complete a free survey to understand
how your employees currently travel,
via: www.london2012.com/travel
adviceforbusiness.
You can then start thinking about
solutions. As a business that conducts
a lot of meetings, there are a variety of
ways to manage this without losing
business. If meetings are essential, any
visitors or employees should be
encouraged to avoid travelling during
spectator peak times and should think
about alternative ways to travel to
work, such as by bike, bus or on foot. If
meetings are not essential and can be
rearranged, think about flexible and
remote working, as this is a viable
option for many organisations and
will allow employees to reduce non-
essential staff travel during the
Games.
Another option is to conduct meet-
ings via web or audio conferencing,
which is one of the most convenient
ways for employees to stay in touch
with colleagues while working from
home. Audio conferencing allows you
to set up a call whenever you need one
with one or more people in different
locations. Web conferencing works by
sending out a meeting link to partici-
pants. Once they click on the link and
join a session you can transmit any-
thing from your PC screen to them.
Recent research by BT shows that with
the right flexible working environ-
ment, employees can be at least 20 per
cent more productive, so it is worth
considering this solution for your
business.
Businesses of all sizes are imple-
menting home working technology to
provide employees with the flexibility
they require during the Games.
Baddeley Brother is a family run busi-
ness that manufactures stationery.
With 25 staff based in Hackney, the
business is planning to benefit from
the Games and is currently working
with its workforce to ensure the busi-
ness is prepared well ahead of next
summer. While half of its employees
manage machinery and are therefore
required on-site, other employees are
able to work remotely. The company is
currently implementing home work-
ing capabilities for its employees who
are able to work from home.
Using technology and deciding
whether meetings are essential dur-
ing the Games will provide employees
and customers with the flexibility
they require during the Games and
beyond. Businesses should work with
their employees and clients as early as
possible, as their journeys to and from
work will be affected.
If you are in an affected area and require
additional support, free workshops are
available to small and medium businesses
with less than 200 employees in one location.
To register your interest email,
[email protected].
Act early to adapt
to the Olympics
Picture: REX
Q A
&
News
20 CITYA.M. 3 OCTOBER 2011
SINKING demand from a cash-
strapped population is set to send
house prices tumbling in the coming
months, according to the latest survey
from Hometrack, released today.
The number of prospective house-
buyers fell in August and September,
while supply has outstripped demand
so far this year.
“Continuing economic uncertainty
both at home and in the Eurozone is
likely to dent consumer confidence
further,” said Hometrack’s Richard
Donnell. “This can only result in
demand slipping further over the final
months of the year. As the gap
between supply and demand widens,
we are likely to see an acceleration in
the level of price falls as we head
towards the end of the year,” he said.
The survey has found house prices
falling for 15 consecutive months
across the UK. London has bucked the
trend, however. “It has been the rela-
tive strength of the London market
where growth has averaged +0.2 per
cent each month that has supported
the headline rate of growth this year,”
Donnell added.
Overall prices fell by 0.1 per cent last
month, the survey found, and were
down across 25 per cent of the coun-
try. There was a 2.5 per cent dip in the
number of prospective buyers register-
ing with estate agents. In August,
demand slipped by 1.2 per cent.
Houses in London and the south
east came the closest to matching
their asking prices than in any other
region of the UK, the survey said, with
both regions on course for further
price increases.
Final prices in the capital are over 94
per cent of the level of asking prices,
with properties in the rest of the south
east fetching around 93.5 per cent of
their asking prices.
At the other end of the scale, houses
in the north west and north east are
selling for less than 92 per cent of their
asking prices. Along with Wales, the
two regions are set for further price
depreciation, Hometrack said.
House prices
to be hit by
slow demand
MANUFACTURERS will today set out a
“shopping list” of important ways
that the government can avoid sti-
fling the industry with red tape.
The coalition must stand up
against regulations emanating from
Brussels, while modifying its own
plans for fresh regulations, the manu-
facturers group EEF is expected to say.
The new Agency Workers Directive
will increase the cost of employing
agency workers by around 20 per cent
to one third, the EEF has calculated.
“Having just seen the Agency
Workers Directive impose a signifi-
cant increase on costs, industry will
be alarmed at a range of other poten-
tial measures in the pipeline from
Europe and from our own govern-
ment,” said the EEF’s Steve Radley.
“This is precisely the time we need
to be encouraging job creation as part
of the growth agenda and adding yet
more costs is only going to make this
more difficult.”
The EEF’s call coincides with the
next stage of the government’s Red
Tape Challenge, which asks firms to
nominate which pieces of regulation
could be scrapped or amended.
Yet the group are concerned by
new pan-European regulations, such
as additional rules relating to work-
ing time and pregnant workers.
Manufacturers
call for action
over regulation
Supply has outweighed demand in the housing market Picture: REUTERS
BY JULIAN HARRIS
HOUSING

UK ECONOMY

AXA Real Estate
Riccardo Dallolio has been appointed
as European Head of Transactions at
Axa Real Estate Investment Managers.
Dallolio joins after six years at Grove
International Partners, where he was a
partner responsible for the origination,
execution and management of real
estate transactions.
Prestbury
Prestbury Investments LLP, the man-
ager of Max Property Group, has
appointed Ben Walford to the part-
nership. Walford, who joins partners
Nick Leslau, Mike Brown, Tim Evans
and Sandy Gumm, has worked at
Prestbury for nine years as a senior
asset manager.
Marex Spectron
Kevin Maloney has been appointed as
chief operating officer of Marex
Spectron North America. Maloney pre-
viously worked at UBS, most recently as
managing director, chief operating offi-
cer and chief administrative officer of
Exchange Traded Derivatives and Prime
Services business units.
The VAT Consultancy
The independent VAT practice has hired
Sarah Franklin, formerly a senior man-
ager in the Core VAT team at Ernst &
Young, as a senior VAT manager.
John Lewis
Marisa Cassoni has announced her
retirement from full-time executive
responsibilities at the John Lewis
Partnership, and plans to step down as
the Partnership’s finance director after
completing the 2011/12 reporting cycle.
Ruffer
The independent investment manager
has hired Dave Francis as chief operat-
ing officer, responsible for operations, IT
and business projects. Francis joins after
20 years at Gartmore, where he was
most recently head of operations.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys
Baker & McKenzie
Gavin Bushell, formerly of Freshfields Bruckhaus
Deringer, has been appointed as a partner in the
law firm’s European & Competition Law Practice,
based in Brussels. Bushell specialises in EU com-
petition and state aid law, Euratom Treaty law,
aviation law and regulation, and litigation before
the European Courts in Luxembourg. He was
recently involved in the merger cases of
Ryanair/Aer Lingus and Rio Tinto/Alcan.
+44 (0)20 7557 7245
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
WALL STREET WEEK AHEAD
Fourth quarter set for an inauspicious beginning
E
UROPEAN stocks have just suf-
fered their worst quarter in
nine years, but anyone thinking
that this might present us with
an opportunity of restored calm to
repair portfolios, or that some bar-
gain-hunters would be tempted in to
the market will be disappointed; the
fourth quarter is expected to open
with another day of dramatic falls.
GFT quotes two-way prices on
stock indices around the clock, even
when the underlying markets are
closed.
FTSE SET TO OPEN LOWER
The FTSE 100 index is called to open
down 2 per cent – around 100 points
at 5,031. Germany’s DAX 30 index is
expected to open down 118 points at
5,384, and the French CAC 40 is fore-
cast to open lower by 60 points at
2,921.
Eurozone finance ministers meet
in Luxembourg today to analyse the
measures proposed by Greece to get
its econmic adjustment program
back on course, but don’t expect any
decision just yet on whether the next
loan tranche will be granted.
ECB INTEREST RATE DECISION DUE
The key euro event this week will be
the ECB interest rate decision on
Thursday, with some analysts predict-
ing we could see a cut in rates of as
much as 50 basis points or 1 per cent.
However last week’s surprise jump
in Eurozone consumer inflation to 3
per cent , its highest level in 3 years,
will surely have quashed the chances
for any such move this month at
least.
BANK OF ENGLAND MEETING
Just as interesting for traders is the
Bank of England’s meeting this week,
and following the last meeting
several commentators are forecasting
a second round of quantitative eas-
ing – QE2 – could be announced
today, in fact in a Reuters poll last
week 40 per cent of those questioned
believe so, although the majority are
suggesting it will come next month.
QE2 FORECAST OF £50-£100BN
Nevertheless, it’s a question of when
not if, and how much: the current
forecast range is for around £50bn to
£100bn to be announced.
Martin Slaney is director of global dealing
operations at GFT.
MARTIN ON
THE MARKETS
I
NVESTORS are worried US earn-
ings growth may finally fall back
to earth as turmoil in Europe and
signs of a less robust Chinese
economy hurt foreign support.
The Eurozone’s debt crisis and
weakness in China have fuelled
investor concern that the global econ-
omy could tip back into recession,
possibly dampening US earnings
growth at a time when the US econo-
my is still struggling to gain ground.
Overseas sales have helped US com-
panies beat earnings expectations in
the last couple of years, with foreign
sales totalling 30 per cent on average
for Standard & Poor’s 500 companies.
“If the euro region is crumbling,
that’s going to have a tremendous
negative impact” on companies like
McDonald’s, said Todd Schoenberger,
managing director at LandColt
Trading in Wilmington, Delaware.
“I’m not expecting a big earnings
quarter,” he said. “We’ve been getting
the clues already.”
The most recent company to trou-
ble investors about the earnings out-
look is Ingersoll Rand, whose shares
tumbled 12.1 per cent to $28.09 on
Friday after the industrial conglomer-
ate cut its third-quarter and full-year
earnings forecast to below market
estimates. Investor pessimism is
already high.
The S&P 500 finished the quarter
with its worst performance since
2008, and many strategists have
slashed their forecasts for year-end.
The S&P 500 dropped 14.3 per cent
in the third quarter, losing about $1.7
trillion in market capitalisation.
A disappointing third-quarter earn-
ings period could only trigger more
losses, analysts said.
MARTIN SLANEY
4Jul 22Jul 11 Aug 21 Sep 1 Sep
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5,128.48
30 Sept
4Jul 22Jul 11 Aug 20Sep 31 Aug
7,500
6,500
5,500
ANALYSIS l DAX
5,502.02
30 Sept
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to [email protected]
ANALYSIS l H & M Hennes & Mauritz
220
210
200
190
180
4Jul 1 Aug 1 Sept 30Sept
SEK
206.70
30 Sept
HENNES & MAURITZ
JP Morgan Cazenove rates the Swedish clothing retailer as “underweight”
with a target price of Skr195.80 (£18.29), issuing an alert as it sees gross
margin risks accelerate. The broker says H&M has entered the fourth quarter
with very high inventories, with like-for-like sales deteriorating in the first
month. With the implication that more price investment is to come, this
implies gross margin risk, and the broker prefers Zara owner Inditex.
ANALYSIS l GKN PLC
240
220
200
180
4Jul 1 Aug 1 Sept 30Sept
p
175.90
30 Sept
GKN
Citi rates the auto parts and equipment group as a “hold/medium risk” and
reduces its target price to £1.85 from £2.20. The broker presents two revi-
sions to its forecasts, firstly based on a three per cent assumption for global
auto growth for 2012 earnings, and secondly to incorporate GKN’s 2011
acquisitions, with relatively little net change to the earnings forecasts.
Consensus earnings for 2012 are up £28m in the last month, to £533m.
ANALYSIS l HSBC Holdings PLC
620
600
580
560
540
520
500
4Jul 1 Aug 1 Sept 30Sep
p
496.90
30 Sept
HSBC
Morgan Stanley rates the banking group as “overweight” with a target price
of 665p, seeing it as well placed, but not immune to a global slowdown. The
broker sees HSBC as attractive to relative and absolute investors, with a 30
per cent implied upside to its reduced target price. It has cut its earnings on
lower investment banking revenues, higher impairments and lower net inter-
est income, but say HSBC suits investors looking to avoid Eurozone problems.
News
CITYA.M. 3 OCTOBER 2011 21
22
The Forum
CITYA.M. 3 OCTOBER 2011
I
N HIS speech at the Labour party confer-
ence last week shadow chancellor Ed Balls
made an interesting suggestion. He
argued that Britain should introduce a
new set of fiscal rules to be independently
monitored by the Office for Budgetary
Responsibility (OBR). We should not reject the
idea just because of the messenger.
FISCAL RULES
The economic downturn will not last forever.
The current target of fiscal policy is the elimi-
nation of the structural deficit by the end of
this parliament. But what will happen after
this? We should put in place credible fiscal
rules so that the gains from today’s sacrifices
are not squandered by future governments.
The government should run a balanced budget
over the course of the economic cycle. By saving
in the good times, we can afford the higher
bills and lower tax revenues when the economy
falters. Fiscal rules are far from perfect, but the
evidence from around the world is that they
work.
This is most important when an economy is
growing. The incentives in our political system
always tempt governments to spend more.
Governments begin to believe their own
overoptimistic forecasts, and fail to save for a
rainy day. New Labour failed to restrain spend-
ing, precisely when the economy looked best,
at the beginning of the decade. The result was
a steady growth of government. In 2000, gov-
ernment spending was around 36.8 per cent of
GDP, according to the Treasury’s figures. In
2010, it was 47.1 per cent. The coalition govern-
ment is now making drastic savings because
Labour spent so unwisely.
BEST PRACTICE
Fiscal rules are increasingly popular around
the world. In 1990, only 10 countries had fiscal
rules. Now, 80 countries have adopted them.
Germany, for example, recently introduced its
own balanced budget amendment, the
Schuldenbremse. The German government is
committed to run a deficit of no more than
0.35 per cent of GDP from 2016, unless there is
a natural disaster or economic crisis.
Switzerland’s 2001 balanced budget rule
helped it run surpluses in the early years of the
millennium.
According to the IMF, countries with fiscal
rules are more likely to return to pay down
their debt. Since Sweden introduced its own fis-
cal rules in 1989, its total debt has nearly
halved, falling from around 70 per cent of GDP
in 1998 to around 35 per cent now.
MOVING THE GOALPOSTS
Britain’s own former fiscal rule lacked both
transparency and credibility. The golden rule
was announced in 1998, but abandoned just
ten years later. It stated that “over the econom-
ic cycle, the government will borrow only to
invest and not to fund current spending.” After
running surpluses for his first few years, Brown
clearly failed to meet this target. Rather than
cut spending, the government simply changed
its definition of when the economic cycle was
supposed to have begun to make its numbers
work. The result was persistent deficits.
The most important reform to this flawed
system was made by the coalition government
with the creation of the independent OBR. An
independent fiscal council can work well with
fiscal rules. Indeed, the OBR already judges the
government on whether it has more than a 50
per cent chance of meeting two fiscal targets:
essentially that in five years time the current
account budget will be in balance and that net
debt will be falling.
STRONG TARGETS
We should strengthen these targets to make
them both more transparent and more credi-
ble. For example, we could specify that whenev-
er an economy is growing faster than trend –
around 2 per cent – that the government
should be heading towards, or running, a sur-
plus. Even independent forecasts tend to be
more likely to be over-optimistic than pes-
simistic. To counter this, we could aim for a
structural surplus of 1 per cent of GDP over the
course of the economic cycle.
The politics of any rule is more important
than the economics. Experience has taught us
that poorly designed rules end up being simply
ignored. This year, the US Congress voted to
raise its debt cap for the 75th time. The
Eurozone’s Stability and Growth Pact didn’t
succeed in turning Greece into Germany.
PUBLIC SCRUTINY
Whether the government looks set to meet
these targets shouldn’t be an arcane technical
issue, but a subject of national debate. It is
worth looking again at how best to achieve
this. The OBR currently gives the chancellor
advice, which he is then free to ignore. While
the chancellor should retain the final say, he
should have to defend, in a public forum, any
failure to comply with the rules. If his numbers
fail to add up, he should be forced to come back
and give a separate statement to the House on
how he plans to bring the budget back into bal-
ance.
The government is rightly focused now on
the challenging task of reducing the deficit. We
cannot eliminate economic and world instabil-
ity, but we can make Britain’s economy more
secure. It would be a shame if the rewards from
today’s sacrifices were thrown away by future
indulgence. We should introduce new fiscal
rules to make sure that doesn’t happen.
Kwasi Kwarteng was elected as Conservative
Member of Parliament for Spelthorne in 2010. He
worked in the City, and holds a PhD in Economic
History from Cambridge University.
By saving in the good times,
we can afford the higher
bills and lower tax revenues
when the economy falters.
Why it is now the time to
set out strict fiscal rules to
stop over-spending for ever
cityam.com/forum
KWASI KWARTENG
23
School reform is
bright spot at an
otherwise gloomy
party gathering
Tories bereft of
ideas when they
need them most
W
HAT a difference a year makes. At
the 2010 Tory conference, the party
faithful were walking around in a
blissful daze, barely able to contain
their glee at being back in power after 13 years
in the wilderness. The Office for Budget
Responsibility, recently created by chancellor
George Osborne, was forecasting economic
growth of 2.6 per cent this year and 2.8 per
cent next. Most MPs (including many in the
Labour party) thought the coalition would
close the deficit merely by trimming state
spending a little, allowing them to deliver a
pre-election tax cut that would guarantee the
Tories a majority in 2015.
Times have changed. The IMF now predicts
the British economy will grow by 1.1 per cent
this year and 1.6 per cent next. Nor could the
atmosphere at conference be more different. It
isn’t so much the sound of anti-cuts protesters
outside the convention centre that is worrying
the Tory leadership, but rather the rumblings
of discontent from the party’s own ranks.
The most damaging pre-conference interven-
tion came at the weekend, when Andrew Tyrie,
the Tory chairman of the Treasury select com-
mittee, said the government didn't have a
“coherent” growth plan. His argument – that
the Big Society, the green agenda and localism
are either “irrelevant” or “contradictory” to the
search for growth – will chime with most
Conservatives. The leadership can’t dismiss
Tyrie as one of the “usual suspects” (code for
Eurosceptic right-wingers like John Redwood,
who the modernisers have given up trying to
convert); as the campaign manager for Ken
Clarke’s 2001 leadership bid and the well-liked
chairman of a bipartisan commons commit-
tee, Tyrie speaks for a much broader church.
So the Tories are at sea, bereft of ideas at the
they need them most. No-one is expecting any
earth-shattering announcements, such as a sig-
nificant tax cut for businesses, while the meas-
ures that have been trailed so far – a “build
now pay later” scheme for construction firms
and a change in the law to make it easier to
sack people – were actually announced several
months ago. As one Tory MP, a member of the
new intake, told me yesterday: “All we’re doing
is reheating old announcements. When you
keep on warming up old chicken, eventually
someone will get sick.”
Amid all the gloom, the Tories can cling to a
single bright spot: education. It stands alone as
the area of policy that has emerged from the
coalition negotiations unscathed. This is party
because Michael Gove, the education secretary,
started writing the legislation that underpins
his reforms while still in opposition, allowing
him to push it through the commons at break-
neck speed. Since then, over a thousand
schools have either become or are about to
become academies, schools that are free from
local authority control; by the end of the par-
liament, more than half of schools will have
gained academy status. Then there are the 24
“free schools” – set up by parents, charities or
other groups – that have opened since the leg-
islation was passed in July.
It hasn’t been easy; Gove has had to fight on
several fronts – teaching unions, local authori-
ties, and even his own Whitehall department.
Still, he has provided the Tory conference dele-
gates with something to be cheerful about.
Heaven knows they need it.
Great expectation
While I appreciate the argu-
ment – in Mark Speeks’s article
on Friday – that the poor don’t
fuel the economy, I think the
piece underestimates the benefits
of reducing their tax burden.
It is short-sighted to think any
additional income for the poor
will be spent on groceries. Like all
of us, the poor expect certain
things to be part of their stan-
dard of living – increasing their
income would help the economy.
Also, recent reports suggest that
the 50p tax rate might actually
cost the Treasury money. If this is
proven to be true, then the coali-
tion government have scope to
both remove the 50p tax rate and
reduce the amount of tax payable
by the poor. This would be politi-
cally, economically and socially
compelling.
Phil Lewis
Watt a mistake
What a pity James Watt has
been chosen to appear on the
new £50 note. Far from being the
brilliant inventor that is common-
ly imagined, Watt was the origi-
nal “patent troll”, devoting
decades of his life to the pursuit
of frivolous lawsuits against
would-be innovators. His inven-
tion was just a refinement of
other peoples ideas.
Intellectual property laws tend to
grant monopolies over ideas,
causing wasteful litigation
and restraining innovation.
So perhaps it is appropriate that
Watt’s face should grace another
unnecessary government monop-
oly – inflationary fiat money.
Blake Riordan
RAPID RESPONSES
In association with
DAVID CROW
BY MICHAEL BEAR
CITYA.M. 3 OCTOBER 2011
The Forum
C
ELEBRATIONS
were under-
s t a n d a b l y
muted across
the Square Mile last
week when London
once again topped the
latest Global Financial
Centres Index (GFCI).
Muted, because the
seriousness of the global economic situation
means that all other issues are overshadowed.
And muted, because clearly London’s competi-
tiveness and primacy are under increasing
threat.
According to the GFCI, London was rated one
point above New York – with Asian centres rapid-
ly closing in on both. The narrowing of this gap is
a reflection on the recent uncertainty plaguing
both the Eurozone and the US. But it is also a
sign that the financial centre of gravity is shift-
ing towards fast developing centres in Asia and
Latin America.
This begs the question: is London set to slip
inexorably down the league?
It is a truism that there is never more to lose
than when you are top of the table. The City
makes a massive contribution to the UK econo-
my: £53.4bn in tax, 14.5 per cent of total national
income and over 1m jobs. Clearly, there is a lot at
stake.
We have well-established structural strengths
that will continue to give us a competitive advan-
tage. But the sheer size of the market and the
demographics in countries such as China, com-
bined with rapid growth, mean the importance
of centres like Hong Kong and Shanghai will
increase.
Their development could be seen as a threat to
London, but I prefer to see it as an opportunity.
As their domestic marketplace gradually opens
up the overall volume of business globally will
increase, even if our market share falls. The City
has always succeeded by adopting an interna-
tional outlook and China’s recent backing of
London as an offshore trading centre for the ren-
minbi highlights how we can succeed in this
changing landscape.
That is, of course, if we do not shoot ourselves
in the foot with potentially damaging regulation.
In this light, Manuel Barroso’s proposal last
week to introduce a Europe-wide tax on financial
transactions raises huge concerns. The European
Commission claimed the tax was designed “to
ensure that the financial sector makes a fair con-
tribution at a time of fiscal consolidation in the
member states”. This is misleading and disingen-
uous to say the least.
The Commission’s own impact assessment sug-
gested that more money could be lost through
firms choosing to relocate outside of the EU than
would be raised by a tax. Furthermore, one study
has suggested that 62 per cent of the revenues
generated by an EU-wide transaction tax would
come from the UK.
London is Europe’s financial capital and would
be disproportionately affected, placing us at a
huge disadvantage to New York, Asian and other
centres. Jobs would disappear as trading volumes
declined and businesses moved elsewhere.
Thankfully, the treasury have pledged to resist
the tax if it is not implemented globally, but even
then it could negatively impact growth.
This uncertainty over the future is perhaps the
biggest threat to London. So we need to be ever
more strategic, intelligent and proactive in ensur-
ing that we stay top of the league.
Michael Bear is Lord Mayor of the City of London.
Regulation threatens
the City’s dominance
Email: [email protected]
Twitter: @cityamforum
IN MANCHESTER
Business Features | Entrepreneurs
24
Think about how you hand over the keys
Transferring
ownership of
your business
to the manage-
ment is a lot
tricker than
this
Picture: REX
M
anagement buyouts
(MBO) seem to have fallen
out of favour. You just
need to look at the recent
Experian Corpin figures to see that
there have been huge reductions in
recent years. From 2005 to 2011 the
number of businesses involved in
MBOs has halved from 403 to 217.
The figure for businesses with a
turnover of less than £10m has
dropped by a third, from 76 to just
50. This is a great shame, especially
for small and medium-sized busi-
nesses, as MBOs are often the best
solution for a business owner wish-
ing to sell.
As the availability of trade and
institutional purchasers continues
to decline, many entrepreneurs are
resorting to winding the business
up when they wish to exit. If an
MBO were completed instead, it
would usually ensure the staff
remained employed, and the brand
continued through another genera-
tion. After spending many years
building up both a company and a
brand, these outcomes are often
key aims for the departing entre-
preneur, who would rather not see
his life’s work dissolve.
One of the main reasons that
MBOs are becoming rare among
small businesses is that access to
suitable personal and corporate
finance is now heavily restricted for
such a perceived high-risk transac-
tion. Lenders, as well as manage-
ment teams, aren’t willing to take
such a risk in a depressed and diffi-
cult trading climate.
Preparation is key. Simple things
such as communication are vital. I
have witnessed large numbers of
MBOs fall apart before they’ve even
begun because of a lack of commu-
nication. The key to a successful
MBO lies in the way this is handled
between the management team
and the business owner.
There is a tricky balance to be
attained in these deal situations as
“the boss” suddenly becomes an
equal on the other side of a negotia-
tion. The initial approach to the
potential MBO team is a critical
moment which sets a precedent for
the rest of the deal.
I recall many disastrous cases
where the business owner didn’t
handle that first conversation well
at all and often ended up losing
some of his key staff to competitors.
Particularly in small businesses, the
team aren’t likely be experienced in
the process of a transaction, so the
first stage should be to educate
them and explain what possibili-
ties are open to them. This tends to
be more productive if it is done
many years in advance of any
potential sale, and by a third party,
usually the auditor or corporate
finance accountant. Those deals
T
HE Asprey name is
undoubtedly familiar to
you. The British luxury
brand has been around
since the time of Queen Victoria.
For 200 years the family sold luxu-
ry goods to the world’s well-
heeled before being bought out
by a devoted customer.
Sadly, when William Asprey,
the seventh line of the family,
came to start up a new venture,
which specialises in jewellery as
well as guns and rifles, in 1999 he
was unable to take his name with
him, settling instead for William
& Son. “My son’s sisters don’t like
it much,” he jokes.
“Ultimately I’d love to recreate
the family business, but I would-
n’t compel my children to take it
on. There has to be a reason they
want to. My current plans are sim-
ply to grow the business.”
Asprey hopes to open new
stores across the world in the
coming years. “It’s a difficult
thing to do,” he confesses.
Despite its global ambitions,
William & Son will always be an
iconic British brand. “Lots of peo-
ple in England rather pooh-pooh
British craftsmanship. They fail to
realise that it is actually very
highly regarded internationally.”
Indeed, a lot of William & Son’s
business is generated from the
international community.
THE NEW FAMILY BUSINESS
Asprey really understands this
trade. He has literally grown up
with the business. “I used to be a
porter and packer in the Asprey
shop in the school holidays.” Now
his children do the same, but at
William & Son. “My daughters
have lots of fun putting out the
jewellery in the morning in the
shop.”
Fronting a brand new
family business
It is time for small and medium-sized
businesses to get excited again about
the potential of management buyouts
The founder of William & Son, William Asprey
Company name: William & Son
Company turnover: £31,851,033, ending
March 2010
Number of staff: 26
Job title: Chairman
Age: 45
Born: London
Lives: South West London
Background: The army for four years
Drinking: French wine
Reading: John Fowles novels
Idols: “I admire my wife Lucy and my
three children.”
Talents: Shooting
Awards: Royal warrant for goldsmiths and
silversmiths given to William & Son by the
Queen in 2009
Motto: “Do as you would be done by.”
First ambition: “To be independently
successful.”
CV | WILLIAM ASPREY
that do successfully complete are
most likely to be supported by the
personal resources of the manage-
ment team and their family. Or
extra financial support from anoth-
er individual who joins the team,
resulting in a BIMBO, a combina-
tion of an MBO and a management
buy-in (MBI).
Alternatively, businesses may
structure a deal with the vendor for
a large proportion of deferred con-
sideration. The availability of
finance from either an MBI candi-
date and/or the vendor himself, (via
a deal structure using deferred con-
sideration), means that the MBO
team are less reliant on bank or
institutional lending. And in these
tricky times for raising finance,
that can only be a good thing. Deals
financed this way are more likely to
result in successful MBOs and a cap-
ital sum for the departing entrepre-
neur.
These are all viable alternatives
to consider for the management
team or the vendor looking for a
suitable purchaser for his business.
Selling your business is an impor-
tant decision, affecting your prod-
uct, your staff and potentially your
reputation. It is important to scruti-
nise what options are available. In
this current climate, MBOs may
well be the better option; certainly,
they should not be ignored in the
way that they currently seem to be.
KIRSTY MCGREGOR
THE CORPORATE FINANCE NETWORK
William Asprey tells Donata Huggins
about the delicate process of starting
a new venture under another name
William & Son’s flagship store
25
Wealth Management | Spread Betting
such as the FTSE 100 and the S&P 500 –
markets that the average man on the
high street had little knowledge of at the
time. But times have changed and with it
so has the financial information avail-
able to the public and the investment
trends of the retail consumer. Where
Britain was once a country of buyers of
stocks and bonds, the modern spread
better is just as likely to take a position
on dollar-yen as they are on the price
movements of a BP share.
TRADING SHARES FOR FX
“Gold, silver, indices and FX have grown
massively in recent times,” says Raj Patel,
head dealer at SpreadCo. “It used to be
the case not so long ago that a lot of
spread traders used to start off trading
equities – for example, by buying
Barclays or BP, or selling a share short
they thought was overvalued.” Patel adds
that UK spread betters have had an
increasing appetite for forex trading – in
fact, many providers report that last year
foreign exchange was the most traded
market. “A lot of retail traders wouldn’t
touch FX. Now it is almost the opposite –
clients are starting off trading FX and
indices and less are trading shares,” says
Patel
So why the shift? According to David
Jones, chief market strategist for IG
Index, a lot of the trends are driven by
news headlines: “We see repeated
instances where clients are driven to
trade whatever is dominating the media
agenda. We’ve seen this when commodi-
ty stories – such as coffee or cocoa –
break onto the front pages of newspa-
pers, and a similar story has been played
out for Eurozone debt.” However, while
interest in these markets tends to be driv-
en by news headlines, according to Jones,
over the longer term, clients will stick to
what they know: “The biggest cap FTSE
stocks, major currency crosses and the
big indices like the FTSE, Dax and Dow
are perennial favourites.” Who knows
where the industry will head next?
Plotting the
growth of
the market
W
HEN spread betting started in
1974, it was set up to get around
the strict price controls that
were in place in the UK – at the
time it was illegal for retail investors to
speculate on gold. Unemployed stockbro-
ker Stuart Wheeler hit upon the idea of
creating an index giving investors a way
of betting on the movement of gold, with-
out having to hold the underlying asset.
At the time, a meeting was held every
week at the offices of NM Rothschild to
fix the gold price for the week ahead.
Wheeler offered those who thought that
the price of gold would be above his pre-
dicted price the opportunity to place a
buy bet, and those who thought it would
be below it to place a sell bet. This
Investors Gold Index was abbreviated to
IG Index, and the nascent spread betting
industry was up and running.
IG Index offered its first financial
spread bet on the FTSE in 1985, 2 years
after City Index entered the fray. CMC
Markets was founded in 1989 and dozens
of other providers came hot on its heels.
Wheeler sold his stake in IG Index in
2003.
TEMPORA MUTANTUR
It’s not just the size of the spread betting
industry that has changed, but also the
markets that spread betters choose to
take positions on. In the early days,
spread betting providers only offered
commodities, options and some indices,
As the spread betting industry
has risen, clients’ preferences
have shifted, says Craig Drake
A moveable feast for
traders
Pictures: REX
THE WEEK AHEAD in association with
COMPANY NEWS
l James Halstead announces today. Its flooring can
be found near and far: from the Scott Base in
Antarctica, to the Svalbard Hotel on the edge of the
polar icecap.
l Tomorrow, Wolseley will deliver its full year
results. The FTSE 100 heating and plumbing distrib-
utor operates in 25 countries, with 4,400 branches
worldwide, employing around 47,000 people.
l XG Technology also announces tomorrow. The
Aim-listed company develops a broad portfolio of
intellectual property, designed to enhance wired and
wireless communications.
COMPANY NEWS
l On Wednesday, Sportingbet announces. The
index e-gaming operator is a constituent of the
FTSE SmallCap index. Imperial Innovations also
announces on Wednesday. It was founded in 1986
as a wholly owned subsidiary of Imperial College.
l Also on Wednesday, Tesco – the third-largest
retailer in the world – releases interim results, while
its competitor Sainsbury delivers its first-half trad-
ing update.
l Shana gold will be looking for glittering results
on Thursday. On the same day, Ted Baker will
release interim results.
ECONOMICS
l Aussie stock markets will be closed today for
Labor Day. This will be celebrated with shrimps
being tossed onto barbies up and down the coun-
try.
l Tomorrow, Ben Bernanke, US Federal Reserve
chairman, will be speaking in Washington DC on
America’s economic outlook – not for the faint-
hearted.
l On Friday, crucial US non-farm payroll figures
for September will be announced. The Obama
administration will be hoping to see an end to the
long run of dire employment figures.
POLITICAL NEWS
l The Conservative party faithful have descend-
ed on Manchester for the annual Conservative
party conference, which will conclude with David
Cameron’s address on Wednesday. Ladbrokes is
currently offering evens on a “confirmed sighting
of Eric Pickles in a Chinese restaurant during
conference week.”
l Barack Obama will meet with Tunisia’s Prime
Minister at the White House next Friday. It will
be the first time that the pair have met since
Beji Caid Essebsi took power in January, after
the overthrow of the country’s long serving dic-
tator.
THE TIPSTER
A SUPER
MARKET
SWEEP
I
T is a busy week this week for
retailers with Tesco and several
others updating the markets
with their latest trading state-
ments. Tesco has been wobbling like
an errant trolley between 355p and
385p for nearly two months now.
Until this range is broken, look to sell
at the top and buy at the bottom.
Every little helps as they say.
SpreadCo offers a spread on Tesco of
377.1p-377.8p.
Trade supplier Wolseley submits
year results tomorrow, with ana-
lysts predicting an upturn in for-
tunes for the firm, which has been
hit hard by the economic downturn
of the past three years. The compa-
ny may have been feeling the heat
as it plumbed the depths of £14 a
share recently, although the price
traded up towards £16 on Friday.
Spreadex has a Wolseley rolling con-
tract with a spread of 1583.40p-
1588.60p.
Copper has seen a real slowdown
in demand since the turn of the
month, and the metal has taken its
biggest tinning since the start of the
global recession. Traders are nerv-
ously anticipating PMI figures com-
ing out of China on Saturday, as the
region is a big metals consumer and
the numbers could give some indica-
tion as to the short term future of
copper. Capital Spreads quotes
December Copper at 3.2430-3.2470.
The banking sector is bracing
itself for a torrid time in the months
that lie ahead. Funding challenges
seem likely to surface, pushing up
costs and hitting liquidity too, in
turn casting a shadow across the
board. Even Standard Chartered –
which makes most of its profits in
Asia – is losing ground, in a move
that once again emphasises the
global nature of the problems the
market is once again facing. IG
Index quotes Standard Chartered at
1278.7p-1282.3p.
Craig Drake
P
i
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t
u
r
e
s
:

R
E
X
LON GD ONCE FIX AM...........1629.00 9.00
SILVER LDN FIX AM ..................30.20 -0.30
MAPLE LEAF 1 OZ ....................33.02 0.45
LON PLATINUM AM................1538.00 -4.00
LON PALLADIUM AM...............627.00 1.00
ALUMINIUM CASH .................2185.00 -20.00
COPPER CASH ......................6975.00 -440.0
LEAD CASH...........................2005.00 -25.00
NICKEL CASH......................18450.00 -155.00
TIN CASH.............................20600.00 -600.00
ZINC CASH ............................1870.00 -48.00
BRENT SPOT INDEX................106.26 -0.04
SOYA .....................................1230.00 6.50
COCOA..................................2694.00 20.70
COFFEE ......................................0.00 0.00
KRUG.....................................1682.40 9.10
WHEAT ....................................150.50 -5.88
AIR LIQUIDE........................................87.98 0.08 100.65 80.90
ALLIANZ..............................................70.86 -1.64 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.78 0.08 46.33 33.85
ARCELORMITTAL...............................12.08 -0.30 28.55 10.47
AXA........................................................9.90 -0.39 16.16 7.88
BANCO SANTANDER...........................6.22 0.04 9.67 5.15
BASF SE..............................................46.09 -1.16 70.22 42.19
BAYER.................................................41.45 -0.55 59.44 35.36
BBVA......................................................6.18 0.00 9.82 4.94
BMW ....................................................49.97 -2.79 73.85 47.82
BNP PARIBAS.....................................30.05 -1.09 59.93 22.72
CARREFOUR ......................................17.14 -0.23 35.29 14.66
CRH PLC..............................................11.65 -0.08 17.40 10.28
DAIMLER.............................................33.63 -1.20 59.09 30.93
DANONE..............................................46.20 0.05 53.16 41.92
DEU.BOERSE OFFRE ........................37.75 -0.35 55.75 37.03
DEUTSCHE BANK..............................26.32 -1.93 48.70 20.79
DEUTSCHE TELEKOM.........................8.83 -0.01 11.38 7.88
E.ON.....................................................16.36 -0.35 25.54 12.50
ENEL......................................................3.32 -0.02 4.86 2.81
ENI .......................................................13.22 -0.04 18.66 11.83
FRANCE TELECOM............................12.30 -0.02 17.45 11.12
GDF SUEZ ...........................................22.44 -0.50 30.05 18.32
GENERALI ASS...................................11.94 -0.14 17.05 10.34
IBERDROLA..........................................5.07 -0.05 6.50 4.29
INDITEX ...............................................64.36 -0.91 66.60 50.92
ING GROEP CVA...................................5.33 -0.41 9.50 4.21
INTESA SANPAOLO.............................1.19 -0.04 2.53 0.85
KON.PHILIPS ELECTR.......................13.55 -0.58 25.45 12.01
L'OREAL..............................................73.38 -0.19 91.24 68.83
LVMH....................................................99.65 -3.55 132.65 97.67
MUNICH RE.........................................93.55 -0.08 126.00 77.80
NOKIA....................................................4.25 -0.02 8.49 3.33
REPSOL YPF.......................................19.98 0.06 24.90 17.31
RWE.....................................................27.72 -0.66 55.88 21.22
SAINT-GOBAIN...................................28.87 -0.63 47.64 26.07
SANOFI ................................................49.35 -0.51 56.82 42.85
SAP......................................................38.32 -0.22 46.15 32.88
SCHNEIDER ELECTRIC.....................40.57 0.07 61.83 35.94
SIEMENS .............................................68.12 -1.53 99.39 62.13
SOCIETE GENERALE.........................20.00 -1.08 52.70 14.32
TELECOM ITALIA..................................0.82 -0.02 1.16 0.70
TELEFONICA ......................................14.43 -0.03 19.69 12.50
TOTAL..................................................33.24 0.27 44.55 29.40
UNIBAIL-RODAMCO SE...................134.55 -0.05 162.95 124.05
UNICREDIT............................................0.80 -0.01 2.03 0.64
UNILEVER CVA...................................23.76 0.11 24.08 20.82
VINCI ....................................................32.42 -0.71 45.48 29.49
VIVENDI ...............................................15.34 -0.05 22.07 14.10
VOLKSWAGEN VORZ ......................100.05 -6.25 152.20 81.80
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5128.48 -68.36 -1.32
FTSE 250 INDEX . . . . . . . . 9819.39 -166.06 -1.66
FTSE UK ALL SHARE . . . . 2654.38 -36.06 -1.34
FTSE AIMALL SH . . . . . . . . 700.34 -9.03 -1.27
DOWJONES INDUS 30 . . 10913.38 -240.60 -2.16
S&P 500. . . . . . . . . . . . . . . . 1131.42 -28.98 -2.50
NASDAQ COMPOSITE . . . 2415.40 -65.36 -2.63
FTSEUROFIRST 300 . . . . . . 923.41 -9.85 -1.06
NIKKEI 225 AVERAGE. . . . 8700.29 -0.94 -0.01
DAX 30 PERFORMANCE. . 5502.02 -137.56 -2.44
CAC 40 . . . . . . . . . . . . . . . . 2981.96 -45.69 -1.51
SHANGHAI SE INDEX . . . . 2359.22 -6.12 -0.26
HANG SENG. . . . . . . . . . . 17592.41 -418.65 -2.32
S&P/ASX 20 INDEX . . . . . . 2426.50 -1.40 -0.06
ASX ALL ORDINARIES . . . 4070.10 2.20 0.05
BOVESPA SAO PAOLO. . 52324.42-1060.25 -1.99
ISEQ OVERALL INDEX . . . 2503.19 -8.62 -0.34
STI . . . . . . . . . . . . . . . . . . . . 2675.16 -32.97 -1.22
IGBM. . . . . . . . . . . . . . . . . . . 862.85 -4.08 -0.47
SWISS MARKET INDEX. . . 5531.74 -76.86 -1.37
Price Chg %chg
3M........................................................71.79 -2.74 98.19 71.71
ABBOTT LABS ...................................51.14 -0.71 54.24 45.07
ALCOA ..................................................9.57 -0.49 18.47 9.56
ALTRIA GROUP..................................26.81 0.37 28.13 23.20
AMAZON.COM..................................216.23 -6.21 244.00 151.40
AMERICAN EXPRESS........................44.90 -1.82 53.80 37.33
AMGEN INC.........................................54.96 -0.82 61.53 47.66
APPLE...............................................381.32 -9.25 422.86 277.77
AT&T....................................................28.52 -0.32 31.94 27.20
BANK OF AMERICA.............................6.12 -0.23 15.31 6.00
BERKSHIRE HATAW B.......................71.04 -1.67 87.65 65.35
BOEING CO.........................................60.51 -1.86 80.65 56.01
BRISTOL MYERS SQUI ......................31.38 0.26 31.91 20.05
CATERPILLAR....................................73.84 -1.55 116.55 72.60
CHEVRON...........................................92.59 -1.80 109.94 80.33
CISCO SYSTEMS................................15.50 -0.35 24.60 13.30
CITIGROUP.........................................25.62 -1.29 51.50 23.19
COCA-COLA.......................................67.56 -1.49 71.77 58.25
COLGATE PALMOLIVE......................88.68 -0.86 94.89 73.62
CONOCOPHILLIPS.............................63.32 -1.05 81.80 56.65
CVS/CAREMARK................................33.59 -0.49 39.50 29.45
DU PONT(EI) DE NMR........................39.97 -1.38 57.00 39.94
EXXON MOBIL....................................72.63 -1.25 88.23 61.27
GENERAL ELECTRIC.........................15.24 -0.62 21.65 14.72
GOOGLE A........................................515.04 -12.46 642.96 473.02
HEWLETT PACKARD.........................22.45 -1.33 49.39 19.92
HOME DEPOT.....................................32.87 -0.92 39.38 28.13
IBM.....................................................174.87 -4.30 185.63 133.67
INTEL CORP .......................................21.34 -0.88 26.78 18.77
J.P.MORGAN CHASE.........................30.12 -1.27 48.36 28.53
JOHNSON & JOHNSON.....................63.69 -0.21 68.05 57.50
KRAFT FOODS A................................33.58 -0.90 36.30 24.30
MC DONALD'S CORP ........................87.82 -0.96 91.22 72.14
MERCK AND CO. NEW......................32.70 0.04 37.68 29.47
MICROSOFT........................................24.89 -0.56 29.46 23.65
OCCID. PETROLEUM.........................71.50 -3.85 117.89 69.90
ORACLE CORP...................................28.74 -0.91 36.50 24.72
PEPSICO.............................................61.90 -0.68 71.89 59.25
PFIZER ................................................17.68 -0.30 21.45 16.25
PHILIP MORRIS INTL .........................62.38 -1.63 72.74 55.10
PROCTER AND GAMBLE ..................63.18 -0.52 67.72 56.57
QUALCOMM INC ................................48.63 -1.50 59.84 42.45
SCHLUMBERGER ..............................59.73 -1.60 95.64 58.77
TRAVELERS CIES..............................48.73 -0.96 64.17 46.62
UNITED TECHNOLOGIE ....................70.36 -2.06 91.83 67.12
UNITEDHEALTH GROUP...................46.12 -0.46 53.50 33.94
VERIZON COMMS ..............................36.80 -0.35 38.95 31.60
WAL-MART STORES..........................51.90 -0.03 57.90 48.31
WALT DISNEY CO ..............................30.16 -0.49 44.34 29.05
WELLS FARGO & CO.........................24.12 -0.87 34.25 22.58
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 ............................0.500 0.00
LIBOR Euro - overnight ..................1.275 0.30
LIBOR Euro - 12 months ................2.041 0.00
LIBOR USD - overnight...................0.152 0.00
LIBOR USD - 12 months.................0.864 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................2.940 -0.07
European repo rate.........................0.752 -0.34
Euro Euribor ....................................1.208 -0.01
The vix index ...................................40.62 1.78
The baItic dry index ........................1.913 -0.01
Markit iBoxx...................................231.81 0.03
Markit iTraxx..................................190.06 -2.94
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3451 0.0138
C/£ 0.8603 0.0101
C/¥ 103.93 0.2280
/C 1.1496 0.0007
/$ 1.5628 0.0025
/¥ 120.49 0.6022
FTSE 100
5128.48
68.36
FTSE 250
9819.39
166.06
FTSE ALLSHARE
2654.38
36.06
DOW
10913.38
240.60
NASDAQ
2415.40
65.36
S&P 500
1131.42
28.98
RPC Group . . . . . . . .337.0 10.0 384.8 215.4
Smiths Group . . . . . .999.5 -6.5 1429.0 907.5
Brown (N.) Group . . .269.0 -5.0 311.2 232.3
Carpetright . . . . . . . . .494.3 -0.7 835.5 477.9
Debenhams . . . . . . . . .56.4 -1.2 77.4 51.2
Dignity . . . . . . . . . . . .850.0 5.5 854.5 633.0
Dixons RetaiI . . . . . . .11.5 -0.1 28.5 10.6
DuneImGroup . . . . . .473.0 -2.0 550.0 383.9
HaIfords Group . . . . .292.2 -11.0 459.7 268.6
Home RetaiI Group . .112.4 -4.9 235.0 105.1
Inchcape . . . . . . . . . .279.4 -15.6 425.4 268.1
JD Sports Fashion . .830.0 -24.5 1030.0 753.5
Kesa EIectricaIs . . . . .83.8 0.8 174.0 80.0
Kingfisher . . . . . . . . .248.5 -0.3 287.1 217.0
Marks & Spencer G . .314.6 -11.4 427.5 301.8
Mothercare . . . . . . . .315.0 -13.0 627.5 314.2
Next . . . . . . . . . . . . .2532.0 -79.0 2649.0 1868.0
Sports Direct Int . . . .218.8 -4.0 266.2 125.5
WH Smith . . . . . . . . . .493.7 -5.2 523.0 433.8
Smith & Nephew . . . .582.0 -8.0 742.0 521.0
Synergy HeaIth . . . . .857.0 -15.5 981.0 736.0
Barratt DeveIopme . . .78.5 -4.5 119.0 67.5
BeIIway . . . . . . . . . . . .622.0 -6.5 753.5 511.0
YuIe Catto & Co . . . . .160.7 -2.3 253.0 148.0
BaIfour Beatty . . . . . .255.6 -4.0 357.3 228.6
Kier Group . . . . . . . .1265.0 -15.0 1418.0 1097.0
Drax Group . . . . . . . .479.9 -7.2 536.5 353.6
Scottish & Southe . .1295.0 -11.0 1423.0 1108.0
Domino Printing S . .462.0 0.0 705.0 460.0
HaIma . . . . . . . . . . . . .315.6 0.4 429.6 311.2
Laird . . . . . . . . . . . . . .138.2 -1.7 207.0 127.9
Morgan CrucibIe C . .244.9 -3.1 357.1 218.5
Oxford Instrument . .808.0 -7.0 1010.0 495.0
Renishaw . . . . . . . . .1020.0 -20.0 1886.0 996.0
Spectris . . . . . . . . . .1168.0 -43.0 1679.0 1073.0
Aberforth SmaIIer . . .538.0 -6.0 714.0 531.5
AIIiance Trust . . . . . .322.0 -3.7 392.7 321.3
Bankers Inv Trust . . .367.0 -9.0 428.0 356.5
BH GIobaI Ltd. GB .1199.0 0.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.8 0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.1 -0.1 20.1 15.8
BH Macro Ltd. GBP 2003.0 23.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.0 -0.0 20.1 15.8
BIackRock WorId M .602.5 -10.5 815.5 600.0
BIueCrest AIIBIue . . .169.7 -1.3 176.2 162.4
British Assets Tr . . . .114.0 -1.5 140.5 112.3
British Empire Se . . .422.6 -15.4 533.0 125.0
CaIedonia Investm .1495.0 -30.0 1928.0 1480.0
City of London In . . .263.3 -6.5 306.9 257.0
Dexion AbsoIute L . .132.5 -2.5 151.0 132.1
Edinburgh Dragon . .207.5 -7.5 262.1 207.5
Edinburgh Inv Tru . . .448.7 -6.0 492.2 414.9
EIectra Private E . . .1360.0 6.0 1755.0 1287.0
F&C Inv Trust . . . . . .271.7 -4.0 327.9 268.6
FideIity China Sp . . . . .75.5 -0.5 128.7 72.8
FideIity European . . .950.0 -33.0 1287.0 937.5
HeraId Inv Trust . . . . .439.0 -9.5 545.5 430.0
HICL Infrastructu . . . .116.0 0.3 121.3 112.7
Impax Environment . .92.0 -1.5 130.5 92.0
JPMorgan American .793.0 -6.0 916.0 721.5
JPMorgan Asian In . .183.0 0.5 250.8 177.3
JPMorgan Emerging .492.0 -9.0 639.0 483.0
JPMorgan European .724.5 -20.5 983.5 701.0
JPMorgan Indian I . . .358.3 -4.7 502.0 351.3
JPMorgan Russian .432.0 -15.5 755.0 432.0
Law Debenture Cor . .343.0 -1.1 385.0 309.8
MercantiIe Inv Tr . . . .896.5 -11.5 1137.0 876.5
Merchants Trust . . . .367.0 -3.0 431.8 348.7
Monks Inv Trust . . . . .311.5 -5.5 367.9 311.1
Murray Income Tru . .581.0 -14.0 673.0 577.0
Murray Internatio . . .842.5 -19.0 991.5 840.0
PerpetuaI Income . . .241.2 -3.8 276.0 232.6
PoIar Cap TechnoI . .324.5 3.0 391.2 299.5
RIT CapitaI Partn . . .1215.0 -9.0 1334.0 1110.0
Scottish Inv Trus . . . .436.0 -3.0 524.0 423.5
Scottish Mortgage . .623.0 -21.0 781.0 622.0
SVG CapitaI . . . . . . . .209.8 1.8 279.8 169.2
TempIe Bar Inv Tr . . .832.0 -2.0 952.0 784.0
TempIeton Emergin .516.0 -7.0 689.5 511.0
TR Property Inv T . . .161.0 -2.2 206.1 154.5
TR Property Inv T . . . .75.5 1.0 94.0 69.5
Witan Inv Trust . . . . .421.5 -5.5 533.0 419.0
3i Group . . . . . . . . . . .187.7 -5.4 340.0 186.8
3i Infrastructure . . . .121.0 0.3 125.2 112.9
Aberdeen Asset Ma .173.1 -2.7 240.0 160.5
Ashmore Group . . . .324.5 -25.5 420.0 301.5
Brewin DoIphin Ho . .119.4 -0.9 185.4 115.9
CameIIia . . . . . . . . . .9150.5-199.010950.08900.0
CharIes TayIor Co . . .138.0 -0.5 198.3 122.0
City of London Gr . . . .76.5 -0.3 93.6 75.5
City of London In . . .363.0 -6.3 461.5 335.8
CIose Brothers Gr . . .661.0 -22.0 888.5 656.5
CoIIins Stewart H . . . .63.3 1.3 90.8 61.5
EvoIution Group . . . . .80.0 -0.5 94.0 62.3
F&C Asset Managem .65.4 -0.5 92.9 58.7
Hargreaves Lansdo .450.0 -6.2 646.5 402.5
HeIphire Group . . . . . . .3.1 -0.1 39.0 2.2
Henderson Group . . .102.7 -3.6 173.1 100.2
Highway CapitaI . . . . .15.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .412.4 -14.4 570.5 391.3
IG Group HoIdings . .447.1 1.7 553.0 393.6
Intermediate Capi . . .214.7 -5.3 360.3 204.8
InternationaI Per . . . .223.3 5.0 388.8 196.5
InternationaI Pub . . . .114.5 -0.2 118.3 108.6
Investec . . . . . . . . . . .349.6 -13.7 538.0 346.2
IP Group . . . . . . . . . . . .47.0 2.5 54.5 27.9
Jupiter Fund Mana . .197.5 -4.5 337.3 184.9
Liontrust Asset M . . . .68.0 0.0 94.3 67.0
LMS CapitaI . . . . . . . . .56.0 -3.1 64.8 44.8
London Finance & . . .23.5 0.0 23.5 16.5
London Stock Exch .815.0 -15.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .13.3 0.0 19.8 11.0
Man Group . . . . . . . . .168.5 -7.5 311.0 166.1
Paragon Group Of . .153.5 -3.5 206.1 134.6
Provident Financi . .1004.0 -22.0 1124.0 728.5
Rathbone Brothers .1042.0 -17.0 1257.0 840.5
Record . . . . . . . . . . . . .28.0 -0.3 51.0 20.3
RSM Tenon Group . . .22.0 -0.5 66.3 21.3
Schroders . . . . . . . .1279.0 -2.0 1922.0 1183.0
Schroders (Non-Vo .1044.0 -7.0 1554.0 970.0
TuIIett Prebon . . . . . .339.1 -4.4 428.6 329.8
WaIker Crips Grou . . .46.5 0.0 51.5 45.0
BT Group . . . . . . . . . .173.7 -1.6 204.1 140.0
CabIe & WireIess . . . .37.3 -0.6 57.5 31.3
CabIe & WireIess . . . .31.0 -0.5 76.9 29.5
COLT Group SA . . . .101.5 0.0 156.2 97.5
KCOM Group . . . . . . . .70.5 0.3 84.0 47.5
TaIkTaIk TeIecom . . .126.2 -0.8 168.3 119.8
TeIecomPIus . . . . . . .721.0 3.5 721.0 370.0
Booker Group . . . . . . .72.8 0.8 77.9 48.1
Greggs . . . . . . . . . . . .462.7 -0.2 550.5 429.1
Morrison (Wm) Sup .290.5 2.9 308.3 262.7
Ocado Group . . . . . . . .94.5 -3.9 285.0 91.0
Sainsbury (J) . . . . . . .274.8 0.5 391.5 263.5
Tesco . . . . . . . . . . . . .378.0 -2.5 440.7 356.3
Associated Britis . . .1110.0 -7.0 1182.0 940.0
Cranswick . . . . . . . . .633.0 5.5 896.0 588.5
Dairy Crest Group . . .351.0 4.0 424.9 325.0
Devro . . . . . . . . . . . . .235.1 -3.1 296.9 218.0
Premier Foods . . . . . . .10.3 0.2 35.1 9.5
Tate & LyIe . . . . . . . . .626.0 -4.5 656.0 466.8
UniIever . . . . . . . . . .2021.0 -12.0 2081.0 1777.0
Mondi . . . . . . . . . . . . .473.7 -9.3 664.0 463.4
Centrica . . . . . . . . . . .297.7 0.7 345.8 282.6
InternationaI Pow . . .306.8 -7.9 448.6 279.4
NationaI Grid . . . . . . .638.5 -1.5 647.0 530.0
Northumbrian Wate .463.5 0.0 469.5 295.5
Pennon Group . . . . . .675.5 -11.0 737.5 579.5
Severn Trent . . . . . .1541.0 15.0 1547.0 1306.0
United UtiIities . . . . .624.0 4.0 631.5 543.5
Cookson Group . . . . .433.0 -7.6 724.5 410.5
DS Smith . . . . . . . . . .175.1 -4.5 266.2 149.4
Rexam . . . . . . . . . . . .310.8 -5.4 400.0 300.9
BAE Systems . . . . . .267.3 -0.9 369.9 248.1
Chemring Group . . . .528.5 -3.5 736.5 485.0
Cobham . . . . . . . . . . .174.8 -5.2 245.6 172.6
Meggitt . . . . . . . . . . . .334.9 0.0 397.6 296.2
QinetiQ Group . . . . . .116.7 3.0 136.3 96.7
RoIIs-Royce Group . .595.0 -15.5 665.0 557.5
Senior . . . . . . . . . . . . .144.5 -0.5 190.6 131.1
UItra EIectronics . . .1505.0 -18.0 1895.0 1305.0
Hansen Transmissi . . .65.3 0.3 65.6 32.5
GKN . . . . . . . . . . . . . .175.9 -2.7 245.0 167.9
BarcIays . . . . . . . . . . .161.4 -7.8 333.6 138.9
HSBC HoIdings . . . . .496.9 -15.9 730.9 486.2
LIoyds Banking Gr . . .34.9 -1.6 76.4 27.6
RoyaI Bank of Sco . . .23.5 -1.0 49.5 19.7
Standard Chartere .1287.0 -71.0 1950.0 1268.5
AG Barr . . . . . . . . . .1191.0 -24.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .315.0 -6.0 503.5 289.9
Diageo . . . . . . . . . . .1232.0 -5.5 1307.0 1092.0
SABMiIIer . . . . . . . . .2107.5 10.5 2340.0 1979.0
AZ EIectronic Mat . . .221.0 -13.0 338.1 210.0
Croda Internation . .1650.0 -12.0 2081.0 1367.0
EIementis . . . . . . . . . .123.5 -2.4 187.4 99.6
Johnson Matthey . .1587.0 -47.0 2119.0 1531.0
Victrex . . . . . . . . . . .1093.0 -45.0 1590.0 1087.0
Price Chg High Low
BerkeIey Group Ho .1190.0 -9.0 1299.0 789.5
Bovis Homes Group .405.1 2.0 464.7 326.5
Persimmon . . . . . . . .455.5 -4.7 502.5 336.5
Reckitt Benckiser . .3273.0 6.0 3648.0 3015.0
Redrow . . . . . . . . . . . .112.0 0.7 139.0 98.4
TayIor Wimpey . . . . . . .35.0 -0.3 43.3 22.3
Bodycote . . . . . . . . . .247.3 -18.0 397.7 245.6
Charter Internati . . . .867.0 -9.5 883.0 538.5
Fenner . . . . . . . . . . . .312.0 -7.1 422.5 232.2
IMI . . . . . . . . . . . . . . . .710.0 -25.0 1119.0 700.0
MeIrose . . . . . . . . . . .291.0 -6.3 365.4 264.5
Northgate . . . . . . . . . .250.0 -1.5 346.7 202.0
Rotork . . . . . . . . . . .1553.0 -29.0 1895.0 1501.0
Spirax-Sarco Engi . .1794.0 -54.0 2063.0 1649.0
Weir Group . . . . . . .1549.0 -51.0 2218.0 1423.0
Ferrexpo . . . . . . . . . . .265.2 -9.5 499.0 260.7
TaIvivaara Mining . . .252.0 -14.8 622.0 252.0
BBAAviation . . . . . . .167.5 -2.5 240.8 156.0
Stobart Group Ltd . . .128.0 -0.5 163.6 122.0
AdmiraI Group . . . . .1263.0 -42.0 1754.0 1230.0
AmIin . . . . . . . . . . . . .283.8 -6.8 427.0 278.7
Huntsworth . . . . . . . . .68.5 0.4 86.0 56.0
Informa . . . . . . . . . . . .327.6 -6.2 461.1 321.2
ITE Group . . . . . . . . . .158.1 -9.8 258.2 157.0
ITV . . . . . . . . . . . . . . . . .59.3 -1.4 93.5 51.7
Johnston Press . . . . . . .4.8 -0.1 14.5 4.4
MecomGroup . . . . . .153.0 5.5 310.0 135.3
Moneysupermarket. .103.0 -4.1 120.4 75.7
Pearson . . . . . . . . . .1139.0 -5.0 1207.0 926.0
PerformGroup . . . . .225.0 11.6 234.5 150.0
Reed EIsevier . . . . . .494.4 -6.6 590.5 461.3
Rightmove . . . . . . . .1196.0 -54.0 1307.0 733.5
STV Group . . . . . . . . .105.0 -0.5 168.0 90.3
Tarsus Group . . . . . .134.8 6.0 165.0 112.5
Trinity Mirror . . . . . . . .41.0 -1.0 108.8 37.5
UBM . . . . . . . . . . . . . .448.8 -14.3 725.0 416.0
UTV Media . . . . . . . . .123.5 0.0 151.0 101.0
WiImington Group . . .91.5 -1.3 183.0 82.5
WPP . . . . . . . . . . . . . .601.0 -28.5 846.5 578.5
YeII Group . . . . . . . . . . .4.1 -0.1 16.1 4.0
African Barrick G . . .502.5 1.5 638.0 393.5
AngIo American . . .2229.0 -62.5 3437.0 2194.0
AngIo Pacific Gro . . .249.0 -13.0 369.3 249.0
Antofagasta . . . . . . . .926.5 -32.0 1634.0 915.0
Aquarius PIatinum . .177.3 -12.7 419.0 176.9
BHP BiIIiton . . . . . . .1738.0 -27.0 2631.5 1707.0
BeazIey . . . . . . . . . . . .116.5 -2.2 139.2 109.6
CatIin Group Ltd. . . .373.0 -5.8 421.4 325.0
Hiscox Ltd. . . . . . . . . .368.9 -1.0 424.7 340.5
Jardine LIoyd Tho . . .632.5 -8.5 709.0 564.5
Lancashire HoIdin . . .692.0 -18.0 733.5 529.0
RSA Insurance Gro . .111.2 -2.1 143.5 107.0
Aviva . . . . . . . . . . . . . .305.4 -7.1 477.9 276.1
LegaI & GeneraI G . . . .96.7 -2.6 123.8 90.9
OId MutuaI . . . . . . . . .105.0 -3.4 145.2 103.0
Phoenix Group HoI . .480.0 0.1 699.5 458.0
PrudentiaI . . . . . . . . .557.5 -17.0 777.0 546.0
ResoIution Ltd. . . . . .247.4 -6.8 316.1 211.3
St James's PIace . . . .310.1 -7.9 376.0 236.2
Standard Life . . . . . . .200.0 -6.1 244.7 172.0
4Imprint Group . . . . .212.5 -4.0 295.0 200.0
Aegis Group . . . . . . .124.5 -2.7 163.5 121.3
BIoomsbury PubIis . . .98.0 0.0 138.0 96.0
British Sky Broad . . .664.0 -18.5 850.0 618.5
Centaur Media . . . . . . .39.5 0.1 73.0 36.0
Chime Communicati .188.0 -1.3 298.5 173.0
Creston . . . . . . . . . . . .76.0 -1.0 121.0 73.8
DaiIy MaiI and Ge . . .363.1 -4.7 594.5 343.4
Euromoney Institu . .615.0 17.0 736.0 522.5
Future . . . . . . . . . . . . . .10.5 -1.3 30.0 10.5
Haynes PubIishing . .233.0 0.0 257.0 202.5
Centamin Egypt Lt . . .94.2 -0.7 197.1 89.7
Eurasian NaturaI . . .576.5 0.0 1125.0 550.0
FresniIIo . . . . . . . . . .1586.0 72.0 2150.0 1223.0
GemDiamonds Ltd. .208.9 -8.1 306.0 179.8
GIencore Internat . . .402.9 -6.4 531.1 348.0
HochschiId Mining . .409.0 -20.1 680.0 400.0
Kazakhmys . . . . . . . .793.0 -41.0 1671.0 782.0
Kenmare Resources . .34.0 -1.2 59.9 17.2
Lonmin . . . . . . . . . . .1051.0 -17.0 1983.0 1030.0
New WorId Resourc .461.0 -7.1 1060.0 448.5
PetropavIovsk . . . . . .595.5 -21.5 1165.0 590.5
RandgoId Resource 6290.0 160.0 7215.0 4425.0
Rio Tinto . . . . . . . . .2888.5 -78.0 4712.0 2834.0
Vedanta Resources .1101.0 -7.0 2559.0 1058.0
Xstrata . . . . . . . . . . . .820.8 -24.3 1550.0 805.9
Inmarsat . . . . . . . . . . .491.6 -0.9 719.5 389.7
Vodafone Group . . . .166.3 -0.9 182.8 155.1
Genesis Emerging . .442.0 -9.5 568.0 438.0
Afren . . . . . . . . . . . . . . .81.3 -9.8 171.2 77.2
BG Group . . . . . . . . .1241.5 4.5 1564.5 1118.5
BP . . . . . . . . . . . . . . . .388.5 -3.3 509.0 363.2
Cairn Energy . . . . . . .280.7 -0.9 469.7 274.8
EnQuest . . . . . . . . . . . .89.2 1.0 158.5 86.8
Essar Energy . . . . . .251.0 -7.2 589.5 235.1
ExiIIon Energy . . . . . .201.7 -4.6 469.7 197.5
Heritage OiI . . . . . . . .233.1 -4.7 486.0 190.0
Ophir Energy . . . . . . .271.5 0.3 299.0 184.5
Premier OiI . . . . . . . . .347.3 0.4 535.0 310.0
RoyaI Dutch SheII . .2000.0 -9.5 2326.5 1883.5
RoyaI Dutch SheII . .2012.0 -8.0 2336.0 1857.0
SaIamander Energy .198.9 -2.3 317.6 182.3
Soco Internationa . . .327.8 -4.4 454.7 279.8
TuIIow OiI . . . . . . . . .1309.0 -3.0 1493.0 945.5
Amec . . . . . . . . . . . . .815.5 -37.5 1251.0 807.0
Hunting . . . . . . . . . . .598.0 9.5 817.0 579.5
Kentz Corporation . .451.0 -7.1 494.5 275.5
LampreII . . . . . . . . . . .258.0 -4.4 395.2 247.6
Petrofac Ltd. . . . . . .1198.0 -46.0 1685.0 1110.0
Wood Group (John) .530.0 -16.0 715.8 430.5
Burberry Group . . . .1174.0 -27.0 1600.0 959.5
PZ Cussons . . . . . . . .328.9 -6.4 409.0 320.5
Supergroup . . . . . . .1040.0 -28.0 1820.0 818.5
AstraZeneca . . . . . .2868.0 -6.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .249.1 -1.9 309.7 210.1
Genus . . . . . . . . . . . .1048.0 -25.0 1111.0 785.0
GIaxoSmithKIine . . .1333.0 -5.0 1385.0 1127.5
Hikma Pharmaceuti .570.0 -2.5 900.0 555.5
Shire PIc . . . . . . . . . .2010.0 29.0 2136.0 1405.0
CapitaI & Countie . . .168.0 -5.1 203.7 131.2
Daejan HoIdings . . .2438.0 64.0 2954.0 2282.0
F&C CommerciaI Pr . .95.8 -2.4 108.0 88.0
Grainger . . . . . . . . . . . .86.6 -2.4 133.2 86.0
London & Stamford .117.1 -0.3 140.0 112.9
SaviIIs . . . . . . . . . . . . .285.3 -9.8 427.1 285.3
UK CommerciaI Pro . .76.0 -1.0 85.5 70.4
Unite Group . . . . . . . .166.0 -0.2 229.8 152.9
Big YeIIow Group . . .238.9 -2.2 353.3 234.2
British Land Co . . . . .476.0 -7.5 629.5 465.0
CapitaI Shopping . . .327.4 -5.1 424.8 296.4
Derwent London . . .1440.0 -42.0 1880.0 1411.0
Great PortIand Es . . .340.0 -8.0 445.0 329.0
Hammerson . . . . . . . .378.2 -7.0 490.9 366.5
Hansteen HoIdings . . .72.2 -1.5 89.5 70.0
Land Securities G . . .642.0 -5.5 885.0 629.0
SEGRO . . . . . . . . . . . .220.2 1.0 331.3 215.6
Shaftesbury . . . . . . . .465.9 -7.1 539.0 431.7
Autonomy Corporat 2550.0 6.0 2550.0 1271.0
Aveva Group . . . . . .1407.0 -55.0 1799.0 1391.0
Computacenter . . . . .369.6 -10.9 490.0 286.4
Fidessa Group . . . . .1570.0 -18.0 2109.0 1409.0
Invensys . . . . . . . . . . .225.5 -11.5 364.3 221.1
Logica . . . . . . . . . . . . .79.1 -1.5 147.2 73.9
Micro Focus Inter . . .323.9 -5.8 426.2 239.4
Misys . . . . . . . . . . . . .215.0 -6.3 420.2 212.1
Sage Group . . . . . . . .256.4 0.6 302.0 231.7
SDL . . . . . . . . . . . . . . .650.0 -1.5 711.5 555.0
TeIecity Group . . . . . .558.5 -8.5 583.5 430.0
Aggreko . . . . . . . . . .1629.0 -53.0 2034.0 1394.5
Ashtead Group . . . . .133.0 -6.8 207.9 99.4
Atkins (WS) . . . . . . . .540.5 -10.5 820.0 490.2
Babcock Internati . . .659.0 -11.0 733.0 513.5
Berendsen . . . . . . . . .430.5 -3.8 568.0 391.3
BunzI . . . . . . . . . . . . .769.0 -19.0 812.5 676.5
Cape . . . . . . . . . . . . . .453.7 -18.7 591.5 337.5
Capita Group . . . . . . .706.5 -12.0 794.5 635.5
CariIIion . . . . . . . . . . .334.6 -5.5 403.2 298.8
De La Rue . . . . . . . . .836.0 6.5 853.5 549.5
EIectrocomponents .190.1 -3.0 294.9 187.9
Experian . . . . . . . . . . .725.0 -8.0 833.5 665.0
FiItrona PLC . . . . . . . .348.0 -6.5 385.5 227.5
G4S . . . . . . . . . . . . . . .267.0 -0.6 291.0 237.7
Hays . . . . . . . . . . . . . . .69.3 -3.5 133.6 69.0
Homeserve . . . . . . . .459.2 -12.9 532.0 408.0
Howden Joinery Gr . .102.5 -1.9 127.5 75.4
Interserve . . . . . . . . . .301.0 -0.9 341.3 183.5
Intertek Group . . . . .1855.0-195.0 2148.0 1715.0
MichaeI Page Inte . . .368.8 -8.6 567.0 338.7
Mitie Group . . . . . . . .233.9 -9.4 244.0 191.2
Premier FarneII . . . . .154.5 -2.8 308.8 148.1
Regus . . . . . . . . . . . . . .73.7 -2.5 119.0 64.0
RentokiI InitiaI . . . . . . .71.7 -2.4 104.9 71.4
RPS Group . . . . . . . . .163.9 -0.9 253.0 161.0
Serco Group . . . . . . .510.5 -7.0 633.0 490.9
Shanks Group . . . . . .110.5 1.1 130.9 103.0
SIG . . . . . . . . . . . . . . . .92.9 -3.5 153.5 91.0
SThree . . . . . . . . . . . .228.4 -5.3 447.6 213.2
Travis Perkins . . . . . .760.0 7.5 1127.0 715.0
WoIseIey . . . . . . . . .1607.0 6.0 2261.0 1404.0
ARM HoIdings . . . . . .564.0 -9.0 651.0 338.9
CSR . . . . . . . . . . . . . .210.0 -6.8 447.0 205.8
Imagination Techn . .419.2 -22.2 502.0 296.9
Pace . . . . . . . . . . . . . . .95.2 -7.0 231.8 91.0
Spirent Communica .122.5 2.4 160.3 116.0
British American . .2728.5 -33.5 2871.0 2282.5
ImperiaI Tobacco . .2174.0 3.0 2231.0 1784.0
Avis Europe . . . . . . . .314.8 0.0 315.0 184.0
Betfair Group . . . . . . .741.5 2.5 1550.0 567.0
Bwin.party Digita . . .123.6 4.6 289.1 100.6
CarnivaI . . . . . . . . . .2015.0 -46.0 3153.0 1742.0
Compass Group . . . .521.0 0.5 612.0 509.5
Domino's Pizza UK . .445.5 18.1 586.0 377.0
easyJet . . . . . . . . . . . .343.9 -9.5 479.0 301.0
FirstGroup . . . . . . . . .320.8 -6.6 412.6 311.3
Go-Ahead Group . . .1325.0 -36.0 1598.0 1085.0
Greene King . . . . . . .435.2 -1.9 518.0 410.0
InterContinentaI . . .1051.0 -19.0 1435.0 955.0
InternationaI Con . . .153.1 -6.6 305.0 141.6
JD Wetherspoon . . . .389.7 -0.3 468.3 382.6
Ladbrokes . . . . . . . . .119.1 -3.6 155.3 118.6
Marston's . . . . . . . . . . .93.0 0.1 117.1 87.1
MiIIennium& Copt . .401.7 -13.3 600.5 395.5
MitcheIIs & ButIe . . . .235.5 -4.5 361.0 216.4
NationaI Express . . .233.0 -3.7 270.2 220.7
Rank Group . . . . . . . .112.8 -4.2 153.7 109.5
Restaurant Group . . .275.3 -5.5 335.0 254.9
Stagecoach Group . .245.5 -2.0 268.5 180.4
Thomas Cook Group .39.9 0.9 204.8 33.7
TUI TraveI . . . . . . . . . .149.3 -3.2 271.9 137.2
Whitbread . . . . . . . .1584.0 -45.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .226.2 -1.7 237.3 155.5
Abcam . . . . . . . . . . . .362.5 1.3 460.0 307.0
AIbemarIe & Bond . .349.5 5.5 400.1 272.0
Amerisur Resource . .13.0 0.0 29.0 11.5
Andor TechnoIogy . .574.5 -0.5 685.0 340.0
ArchipeIago Resou . . .69.0 0.0 79.0 32.3
ASOS . . . . . . . . . . . .1523.0 0.0 2468.0 1111.0
AureIian OiI & Ga . . . .18.3 -1.3 92.0 16.0
Avanti Communicat .268.0 19.5 735.0 248.5
Avocet Mining . . . . . .227.8 -1.5 286.8 167.0
BIinkx . . . . . . . . . . . . .148.0 -5.0 158.0 70.5
Borders & Souther . . .45.8 -1.0 73.0 43.5
BowLeven . . . . . . . . . .94.0 -5.3 398.0 89.8
Brooks MacdonaId 1252.5 10.5 1372.5 907.5
Cove Energy . . . . . . . .75.8 -2.8 112.8 61.0
Daisy Group . . . . . . .109.5 0.0 127.0 88.0
EMIS Group . . . . . . . .519.0 -2.0 580.0 367.5
Encore OiI . . . . . . . . . .50.0 -1.0 151.5 40.8
Faroe PetroIeum . . . .145.8 3.8 218.3 133.0
GuIfsands PetroIe . . .185.0 -0.5 401.5 142.5
GWPharmaceuticaI . .98.0 2.0 130.0 83.0
H&T Group . . . . . . . . .350.0 17.5 395.0 277.0
Hamworthy . . . . . . . .510.5 -19.5 705.0 360.0
Hargreaves Servic .1010.0 -6.0 1078.0 676.0
HeaIthcare Locums . . . .5.6 -0.3 6.5 5.5
Immunodiagnostic .1030.0 -42.0 1218.0 768.5
ImpeIIamGroup . . . .321.5 -11.0 387.5 137.5
James HaIstead . . . . .427.4 -2.6 495.0 345.5
KaIahari MineraIs . . .213.5 -4.3 301.0 142.0
London Mining . . . . .312.0 1.0 436.5 283.0
Lupus CapitaI . . . . . . .93.0 -4.0 150.0 86.0
M. P. Evans Group . .426.5 8.5 500.5 371.0
Majestic Wine . . . . . .437.5 7.5 510.0 330.0
May Gurney Integr . .278.0 -2.5 295.0 189.5
Monitise . . . . . . . . . . . .34.5 -0.8 39.0 18.5
MuIberry Group . . . .1520.0 -12.0 1920.0 387.0
Nanoco Group . . . . . . .50.0 -1.6 115.8 49.5
NauticaI PetroIeu . . .284.3 -5.8 547.0 223.5
NichoIs . . . . . . . . . . . .540.0 1.5 579.0 410.0
Numis Corporation . . .89.0 -3.0 137.8 89.0
Pan African Resou . . .11.5 -0.8 14.5 8.2
Patagonia GoId . . . . . .51.5 -1.8 70.0 20.3
Prezzo . . . . . . . . . . . . .58.5 3.0 71.5 53.3
Pursuit Dynamics . . .175.0 -10.3 700.0 160.5
Rockhopper ExpIor .193.0 -1.3 464.0 141.0
RWS HoIdings . . . . . .460.0 10.1 479.8 265.0
Songbird Estates . . .116.0 -2.0 160.3 110.3
VaIiant PetroIeum . . .460.0 -8.0 761.5 435.0
Young & Co's Brew . .622.5 0.0 712.0 530.0
Perform Group . . . . .225.0 5.4
FresniIIo . . . . . . . . . .1586.0 4.8
Domino's Pizza UK .445.5 4.2
Bwin.party DigitaI . . .123.6 3.9
RPC Group . . . . . . . .337.0 3.1
Euromoney Institut . .615.0 2.8
Daejan HoIdings . . .2438.0 2.7
QinetiQ Group . . . . . .116.7 2.6
RandgoId Resources6290.0 2.6
InternationaI Pers . . .223.3 2.3
Afren . . . . . . . . . . . . . .81.3 -10.7
Intertek Group . . . . .1855.0 -9.5
Ashmore Group . . . .324.5 -7.3
Pace . . . . . . . . . . . . . . .95.2 -6.8
Bodycote . . . . . . . . . .247.3 -6.8
Aquarius PIatinum . .177.3 -6.7
ITE Group . . . . . . . . .158.1 -5.8
AZ EIectronic Mate . .221.0 -5.6
TaIvivaara Mining . . .252.0 -5.6
Barratt DeveIopmen . .78.5 -5.4
Risers FaIIers
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 3.250 11 . . . . .100.36 -0.01 103.2 100.4
Tsy 5.250 12 . . . .103.16 -0.03 107.6 103.1
Tsy 9.000 12 . . . .107.05 0.00 114.9 106.5
Tsy 5.000 12 . . . .101.89 -0.03 106.2 101.8
Tsy 4.500 13 . . . .105.58 -0.02 108.8 105.5
Tsy 2.500 13 . . . .283.29 -0.02 287.7 277.6
Tsy 8.000 13 . . . . .114.55 -0.02 120.7 114.5
Tsy 5.000 14 . . . . .112.11 0.10 114.1 109.2
Tsy 7.750 15 . . . .101.50 -0.10 109.1 101.5
Tsy 4.750 15 . . . . .114.16 0.17 114.8 108.6
Tsy 8.000 15 . . . .128.10 0.15 131.3 123.7
Tsy 2.500 16 . . . .338.82 0.24 341.0 310.2
Tsy 4.000 16 . . . . .112.56 0.23 113.4 104.9
Tsy 1.250 17 . . . . .114.46 0.44 115.0 106.7
Tsy 8.750 17 . . . .139.93 0.39 142.1 132.9
Tsy 12.000 17 . . .123.86 0.00 134.1 123.9
Tsy 5.000 18 . . . .120.17 0.47 121.0 109.7
Tsy 4.500 19 . . . . .117.81 0.74 118.5 105.4
Tsy 3.750 19 . . . . .112.42 0.75 113.0 99.4
Tsy 2.500 20 . . . .353.05 0.63 355.6 312.4
Tsy 4.750 20 . . . . .120.11 0.77 120.8 106.6
Tsy 8.000 21 . . . .150.18 0.72 151.8 133.8
Tsy 1.875 22 . . . .123.83 0.84 124.3 111.3
Tsy 4.000 22 . . . . .113.88 0.86 114.7 99.0
Tsy 2.500 24 . . . .316.45 0.75 317.9 273.5
Tsy 5.000 25 . . . .124.78 1.00 125.4 107.4
Tsy 1.250 27 . . . . .118.50 0.70 119.4 104.6
Tsy 4.250 27 . . . . .115.31 1.18 115.8 97.9
Tsy 6.000 28 . . . .139.66 1.15 140.3 119.5
Tsy 4.125 30 . . . .300.17 0.70 301.4 261.2
Tsy 4.750 30 . . . .122.09 1.33 122.5 103.0
Tsy 4.250 32 . . . . .114.29 1.36 114.6 96.0
Tsy 4.250 36 . . . . .113.38 1.40 113.8 95.0
Tsy 4.750 38 . . . .122.21 1.50 123.0 102.8
Tsy 4.500 42 . . . . .117.93 1.60 118.3 98.9
% %
Wealth Management
26 CITYA.M. 3 OCTOBER 2011
1.1641 0.0001
T
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EASTENDERS
BBC1, 8PM
Craig visits Albert Square for the
first time – but the happy day turns
sour when Eddie and Michael clash
over Vanessa.
NEVER MIND THE BUZZCOCKS
BBC2, 10PM
New series. Team captains Phill
Jupitus and Noel Fielding are joined by
Louie Spence, Amelle Berrabah and
Peter Serafinowicz.
CAN YOU TRUST YOUR DOCTOR?:
DISPATCHES CHANNEL4, 8PM
Jon Snow investigates reports of
GPs who have been responsible for
repeated misdiagnoses, but have been
allowed to continue practising.
BBC1
SKY SPORTS 1
7pmLive Darts 11.30pmSPL
Round-Up 12amNetbusters
12.30amSoccer AM: The Best
Bits 1.30amElite League
Speedway 3.30amFIFA Futbol
Mundial 4amMax Power 5am
Netbusters 5.30am-6amFIFA
Futbol Mundial
SKY SPORTS 2
7pmNetbusters 7.30pmLive
Elite League Speedway 9.30pm
Netbusters 10pmPremier
League Review11pmPoker 1am
PGA Tour Classic 2amEuropean
Tour Golf 3amPGA Tour Golf
4am-5amTrilby Tour Golf
SKY SPORTS 3
7pmNASCAR 8pmNFL 10pm
Boots ‘n’ All 11pmWWE: Late
Night – Bottom Line 12am
WWE: Late Night – Afterburn
1amWWE: NXT 2am-4.15am
Live WWE: Late Night – Raw
BRITISH EUROSPORT
6pmWTA Tennis 8pmEurogoals
9pmMotoGP 11pmWorld
Superbikes 12am-12.20am
Motorsports Weekend
ESPN
6.30pmTalk of the Terrace 8pm
Premiership Rugby Union
9.30pmFrench Top 14 Rugby
Union 10pmBetween the Lines
10.45pmESPN Pardon the
Interruption 11.15pmESPN
Kicks: Scottish Premier League
11.30pmESPN Press Pass 12am
Live NFL Countdown 1.30am
Live NFL 4.45am-6am
Bundesliga Review Show
SKY LIVING
7pmCriminal Minds 8pmSteps
Reunion 9pmPushy & Proud:
Botox Mum10pmRinger 11pm
Bones 12amCriminal Minds 1am
CSI: Crime Scene Investigation
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmDon’t Tell the Bride: A nurse
from Derby plans his wedding.
8pmPlanet Dinosaur: Creatures
that blur the boundaries between
dinosaurs and birds. 8.30pmThe
Real Hustle: New Recruits 9pm
The Truth About Child Brides
10pmEastEnders 10.30pmThe
Fades 11.30pmFamily Guy
12.15amThe Truth About Child
Brides 1.10amDon’t Tell the
Bride 2.10amThe Real Hustle:
New Recruits 2.40amSnog,
Marry, Avoid? 3.10amUnderage
and Pregnant 4.10am-5.10am
The Fades
E4
7pmHollyoaks 7.35pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pmMy Name
Is Earl 9pmOne Tree Hill 10pm
Made in Chelsea 11.05pmMisfits
12.10amThe Big Bang Theory
1.10amScrubs 2amHow I Met
Your Mother 2.20amMy Name
Is Earl 2.40amMeet the Parents
3.10amRules of Engagement
3.30amReaper 4.15amGlee
5am-6amSwitched
HISTORY
7pmDeep Wreck Mysteries 8pm
Storage Wars 9pmPawn Stars
9.30pmAmerican Restoration
10pmAmerican Pickers 12am
Pawn Stars 12.30amAmerican
Restoration 1amAmerican
Pickers 3amDeep Wreck
Mysteries 4amPawn Stars
4.30amStorage Wars 5am-6am
Ancient Discoveries
DISCOVERY
7pmMythbusters 8pmWeird or
What? 9pmMythbusters 10pm
The Truth Behind the Moon
Landings 11pmStan Lee’s
Superhumans 12amBear Grylls:
Born Survivor 1amMythbusters
2amGold Rush 3amDeadliest
Catch 3.50amRiver Monsters
4.40amTreasure Quest
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmI Didn’t
Know I Was Pregnant Specials
9pmTourettes Uncovered 10pm
Baby Hospital 11pmA&E 12am
Tourettes Uncovered 1amBaby
Hospital 2amA&E 3amI Didn’t
Know I Was Pregnant Specials
4amA Baby Story 5am-6am
Labour and Delivery
SKY1
8pmTerra Nova 10pmAn Idiot
Abroad 2 11pmCop Squad
12amFringe 1amArmed and
Dangerous: Ultimate Forces
1.50amNight Cops 2.40amThe
Dresden Files 4.20amIt’s Me or
the Dog 5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmBang Goes the Theory;
BBC News
8pmCHOICE EastEnders
8.30pmAll Work and Low Pay
– Panorama
9pmMotorway Cops
10pmBBC News
10.25pmRegional News
10.35pmA Question of Sport
11.05pmSpooks 12.05am
FILMHarper. 1966. 2.05am
Weatherview2.10amSign Zone:
The Great British Bake Off 3.10am
Sign Zone: The Body Farm
4.10am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
– It Takes Two
7pmCoast: A journey along
East Anglia’s shoreline.
8pmUniversity Challenge
8.30pmHome Cooking Made
Easy
9pmDragons’ Den
10pmCHOICE Never Mind the
Buzzcocks
10.30pmNewsnight; Weather
11.20pmToday at Conference
11.50pmFry’s Planet Word
12.50amDamages
1.30amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmLittle England
8.30pmCoronation Street
9pmDoc Martin
10pmITV News at Ten
10.30pmLondon News
10.35pmExposure: The
Factory
11.35pmThat Sunday Night Show
12.05amWildlife Patrol 12.30am
The Zone; ITV News Headlines
2.35amChampions League Weekly
3amITV Nightscreen
4.35am-5.30amThe Jeremy
Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Can You Trust
Your Doctor?: Dispatches
9pmEmbarrassing Bodies
10pmRude Tube
11.05pmRandom Acts
11.10pmFresh Meat
12amMusic on 4: Rockfeedback
Presents: Berlin Festival 12.35am
Late Night Poker 1.30amFILM
LSD: Love, Sex Aur Dhokha. 2010.
3.35amThe House That Made Me
4.30amAccidentally on Purpose
4.55am-5.50amCookery School:
The semi-final round.
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmCelebrity Wish List;
5 News Update
8pmThe Gadget Show;
5 News at 9
9pmThe Hotel Inspector
10pmBig Brother
11pmBig Brother’s Bit on the
Side
12amUltimate Police Interceptors
12.55amSuperCasino: Live
interactive gaming. 4amMeals in
Moments 4.10amGrey’s Anatomy
4.55amRough Guide to Beaches
5.10amWildlife SOS 5.35am-6am
House Doctor
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5
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 Forced out (6)
6 No particular
person (6)
7 Gesture (4)
9 Enquiry into the
finances of a
person applying for
monetary aid (5,4)
13 Absolute (5)
15 Much ___
about Nothing,
Shakespeare
play (3)
16 Of time long
past (5)
20 Sailing boat with
two parallel
hulls (9)
23 Remove (4)
24 Central area in a
building which is
open to the sky (6)
25 Orb, globe (6)
DOWN
1 Beginning of an ofensive (5)
2 Ringworm (5)
3 Wish harm upon (4)
4 Catholic Holy Father (4)
5 Flesh used as food (4)
8 Local time at the 0
meridian passing through
Greenwich (inits) (3)
10 Clock that wakes a sleeper
at a preset time (5)
11 Scent (5)
12 Scottish island, capital
Portree (4)
14 Vegetable known as
lady’s fingers (4)
17 Door fastener (5)
18 Chemical which carries
genetic information (inits) (3)
19 Daughter of one’s brother (5)
20 Fossil fuel (4)
21 Port in southern Lebanon (4)
22 Ofcial symbols of a
family, state, etc (4)
A
E
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4
4


4



S E P T I C G O A D
W E N R O
E A L L O W A N C E
E L K I N A
P A S T E L D I R K
B S U I T E I
M E S H E Y E L E T
L I P U S A
A S T R A K H A N I
G T U G N
A G E S A S C E N T
4 1 3 2 6 9 8 2
7 5 8 9 8 7 9 3
9 2 8 6 9 5 1
8 4 3 1 2 5 3
1 5 3 4 9 7 2
8 7 6 9 3 7 6 1
1 4 2 7 3 5 6
3 4 6 1 8 3 1
9 5 8 9 5 9 8
7 1 3 2 1 7 6 2
8 2 1 4 2 9 8 3
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
CURVATURE
Lifestyle
27
N
OT so long ago, Brisbane was little
more than the country cousin to
Sydney and Melbourne, and the
gateway to Surfers Paradise and
Noosa.
However, this city, the third largest in
Australia, and the capital of Queensland,
is transforming into a fast-paced modern
metropolis.
Brisvegas, as it is affectionately known,
is making a name for itself as a vibrant,
affluent, place-to-be on the banks of the
Brisbane River.
The city was, of course, hit hard by the
floods that raged through the region at
the start of the year; the worst in Australia
for a decade.
Dubbed a disaster “of biblical propor-
tions,” the floods swamped Brisbane,
along with several other major towns such
as Bundaberg and Rockhampton, displac-
ing thousands of people, and causing the
state to lose vast sums of income from
farming, mining and tourism.
But once the waters subsided, the
Queenslanders, with their characteristic
resilience, bounced back, leaving no doubt
in anyone’s mind that Brisbane is firmly
back in business.
BRISBANE AND THE SUNSHINE STATE
Brisbane has a lot to offer with its subtrop-
ical climate, thriving music and restau-
rant scene, great shopping streets, grand
civic buildings, and laid-back vibe.
This is a very active city, with jogging
paths, bike paths and dedicated walking
paths criss-crossing the river.
You can pick up a bike, or a kayak, from
the Riverlife Adventure Centre (www.river-
life.com.au) to explore the river more fully,
while adrenaline-junkies can go abseiling
or rock-climbing on Kangaroo Point Cliffs.
If you’re more of a spectator than a par-
ticipant when it comes to sport, catch a
rugby match at the Suncorp stadium, or
pick up tickets for a cricket match at the
TRAVEL NOTES
HELENA LEE
Celebratory cocktails with Dorchester
Last chance to see out 2012 fashion weeks in style by sipping specially-
created fashion season cocktails at the Dorchester and 45 Park Lane. Or
if you’re still in Paris, pop into the Hôtel Plaza Athénée (pictured above)
for a Mexican mescal-based number. Available until 5 October.
www.dorchestercollection.com
All aboard for some Orient Express shopping
Bluewater, Stratford’s Westfield and... the Orient Express? With brands
such as Liberty, Harrods, Ettinger and Astley Clarke on board their British
Pullman, the new “Shopping on the Rails” trip promises the ultimate in
luxury shopping.
www.orient-express.com/uktrains
Amari Palm Reef Samui this Christmas
If you’re thinking of a hot, beachy Christmas, Amari hotels are offering a
seven-night package starting from 19 December on the white-sands of
Koh Samui, Thailand. Prices start from £1,869 per person, and includes
breakfast, flights and transfers.
www.amari.com
landed here in the Endeavour in 1770 dur-
ing his exploration of the east coast of
Australia, the town was, more recently,
the starting point for Ben Southall’s
1,600km kayak trip to Cooktown across
the Great Barrier Reef.
This latest adventure, dubbed the “Best
expedition in the world” followed Ben’s
much-coveted stint as reef caretaker after
seeing off tough competition to secure the
“Best job in the world.”
While you’re in 1770, don helmet,
leathers and compulsory (temporary) tat-
too, and spend a white-knuckle afternoon
riding a 50cc chopper around the town on
one of the 60km Scooter Roo tours
(www.scooterrootours.com).
Or, for something a little more sedate,
take a sunset tour on the amphibious half-
bus, half-boat vehicle known as the Larc
(www.1770larctours.com.au), soaking up
the magic of Round Hill Creek and
Eurimbula National Park, as you go, while
Esther Shaw discovers
the city’s new lease of
life after an action-
packed adventure off
Queensland’s coast
Gabba, the ground that played host to the
opening test of the Ashes last November,
when England drew with Australia before
going on to win the series.
The South Bank is an upmarket arts and
leisure district where you can wander
through the parklands, or kick back on
the family-friendly artificial beach.
If you’re looking for culture, there’s the
Queensland Gallery of Modern Art, State
Library of Queensland, Performing Arts
Centre and the Queensland Museum.
And, as Queensland is the only state in
Australia where koala-hugging is permit-
ted, make sure you don’t miss out on the
chance to cuddle one of these cute little
marsupials at the Lone Pine Koala
Sanctuary (www.koala.net), a private zoo
on the south-west fringes of the city.
THE GREAT SUNSHINE WAY
Heading further afield, the Bruce
Highway takes you out of the city along
the northern loop of the Great Sunshine
Way, which stretches between Brisbane
and Hervey Bay.
After two hours of driving, you reach
the chic little Australian holiday town of
Noosa.
This coastal idyll offers a quieter scene
(both for celebrities looking for some pri-
vacy, and for retirees looking to leave the
rat-race behind), but if you’re
searching for sea, sand and sun-
shine, Noosa ticks all the boxes.
Cruise the Noosa River aboard
your own boat equipped with BBQ
and beverages; decently priced boats
and kayaks can be h-ired from
Pelican Boat Hire (www.pelican-
boathire.com.au).
If you want to indulge in a little
shopping, head to stylish Hastings
Street for a plethora of smart bou-
tiques; this is also the place to go if
you’re looking for gourmet restau-
rants and cafes.
On departure from Noosa, take a
detour via Bundaberg to join one of the
interactive rum distillery tours – fol-
lowed, of course, by a tasting;
(www.bundabergrum.com.au/dis-
tillery.htm).
If you’ve got the time, stop over for a
night or two in the Town of 1770 at the
southern-most tip of the Great Barrier
Reef; the town is a little off the beaten
track, but well worth the diversion.
Named after Captain James Cook who
Brisbane: still
surfing, sun,
and lots of fun
Don helmet, leathers and compulsory
(temporary) tattoo and experience a
white-knuckle ride on a 50cc chopper
Lifestyle | Travel
CITYA.M. 3 OCTOBER 2011 28
H
aving spent much of my childhood climb-
ing apple trees, playing pooh sticks and
putting out milk for hedgehogs at my
grandfather’s home in Suffolk, it felt nat-
ural to kick off this monthly travel column by
revisiting the South East with my own family in
tow (hubby, bump, two year-old Clementine).
We packed up the car and hit the A12 with
the promise of fresh air, homemade mar-
malade and pub lunches and were thrilled to
discover the epitome of country house chic at
the Old Rectory, a converted Grade II-listed
Georgian building near Woodbridge. Officially,
it is a B&B, but unofficially, it’s a hell of lot
more. For starters, they offer dinner Monday-
Friday, and an excellent three courses at that.
Sally and Mike, who have been running the
place since 2002, have a relaxed, easy manner
and impeccable taste. Above all, they didn’t
look horrified when we pulled into the drive
with a topless toddler and bag of sick-covered
clothes (swiftly removed and returned washed
and pressed a few hours later). We couldn’t
have been made more welcome.
On our first night, we put Clem to bed with
our baby monitor on, then tucked into a home-
cooked dinner of goat’s cheese tart, roast rack
of lamb with carrots and baby leeks from the
garden and rhubarb crumble. Afterwards, we
retired to the living room for coffee and were
left to help ourselves from an antique Chinese
cabinet housing an honesty bar, which we did,
numerous times.
Up early the next morning, we made the
most of the Rectory’s gardens, which offer
plenty of scope for hide and seek or a
kickaround. There’s a huge, beautiful lawn, a
vegetable patch, an orchard, a rabbit hutch, a
couple of rope swings and a chicken coop,
which we visited the next morning and found
some fresh-laid eggs. Said prizes were swiftly
scrambled into some of the tastiest and yel-
lowest eggs, we’ve ever had.
Of course there’s plenty to see and do in the
area (our top choices are the Anglo-Saxon
burial mounds at Sutton Hoo and lunch on the
River Deben at Waldringfield’s Maybush Inn),
but we were happiest pottering about at the
Rectory where Clem had bangers and mash
on demand, sticky ginger cake at tea time, and
an endless supply of toys and children’s books.
Upon leaving, clutching a pot of local
Suffolk marmalade – a going-home present
from Sally – I glanced back and noticed a
strangely familiar wooden bench. Turns out
we celebrated my dear grandfather’s 80th
birthday at the Old Rectory 20 years ago.
I knew this was a special place.
www.theoldrectorysuffolk.com
A
pple burned by Kindle Fire. Fire heats
up tablet market. Amazon fights the
iPad with fire. It’s been a good week
for fire related puns (and, therefore a
good week for Google, which recently bought
a fire-pun patent portfolio and is in the
process of litigating against everyone who has
used one*). Coverage for Amazon’s Kindle Fire
has reached levels usually reserved only for a
certain firm based in Cupertino.
And it’s hard to find anyone with a bad
word to say about it. Most people have
focused on its very reasonable $199 price-
tag (even factoring in the inevitable tax-on-
not-being-American, which will take the Fire
from £128 to somewhere closer to £200, it’s
still half the price of the iPad).
While pre-orders haven’t quite
lived up to Apple’s standards, it
still racked up close to
100,000 in its first day on sale.
The problem is, I’m not quite
sure what I’d use one for.
My iPad replaces my laptop
for almost all day-to-day use,
meaning I no longer have to sit
with my knees squashed together,
ankles splayed, to stop it sliding off
(according to The Usual Suspects,
the greatest trick the devil ever
pulled was convincing the world
he didn’t exist. Wrong. The
greatest trick the devil ever
pulled was convincing people
The Kindle Fire looks good... But what is it for?
GEEK SPEAK
@steve_dinneen
laptops are convenient).
The Fire, though, is more
restrictive. It has neither
camera nor microphone,
meaning I can’t chat on
Skype or take pictures
nobody will ever look at
to upload on Facebook.
It’s a machine designed
for consuming Amazon’s
products; books, music
and film. Given that it has
a seven inch screen, it’s
safe to say watching
movies isn’t going to be
a joy. Its speakers are
too compact to give
you outstanding audio.
That leaves reading
books; a market
Amazon has already nailed
with its brilliant Kindle reader.
The Fire may have a colour
screen, but it lacks the e-ink that
makes the Kindle such a joy to read on.
The Fire will pick up sales from people
who want to enter the tablet market without
forking out for an iPad. But its real value to
Amazon is to protect its position in the e-
reader market. The colour screen will woo
those customers who may have opted for a
Sony Reader or Nook instead of the Kindle –
everyone else is a bonus.
It must be frustrating, then, that the Kindle
Fire is almost never mentioned without a ref-
erence to the iPad, as if some jealous Apple
deity, angry at the worship of false idols, must
be appeased through publicity. As we speak.,
Tim Cook is sitting in Steve Jobs’ old office,
tossing rail after rail of turtle-neck sweaters
into a giant bonfire, cackling manically at all
the free publicity.
It will be interesting to compare how
many times Amazon, or any other company
for that matter, is mentioned tomorrow,
when Apple is hosting a launch event of its
own. Amazon has enjoyed almost a week of
publicity for its latest device. The iPhone 5
will ensure it doesn’t last too long.
* That’s a joke about the absurdity of the
smartphone patent war. If you don’t get it,
this column probably isn’t for you.
FAMILY TRAVEL
WITH LEO BEAR
also keeping an eye out for “roos” feeding
along the shoreline.
FRASER ISLAND
Around four hours north of the Town of
1770 is Hervey Bay; the stopping off place
for Fraser Island.
From June to October, this is Australia’s
whale-watching capital, with these majes-
tic beasts breaching out of the water just
off the shore.
From River Heads on the outskirts of
Above, Brisbane’s
sparkly harbour at
night. Left, whale-
watching around
Fraser Island
Hervey Bay, it takes around 40 minutes to
get to Fraser Island by ferry.
Fraser is the world’s largest sand island,
and is brimming with rainforests, fresh-
water lakes and sand dunes; the wildlife is
also prolific here, making this a nature-
lover’s paradise.
You can spy dolphins, sharks and
whales in the water, while back on land,
there’s turtles, echidna, and wallabies –
not forgetting the pure-breed dingoes that
roam wild across the island.
The best way to see the ancient rainfor-
est and mind-blowing coastline of this
World Heritage Site, is by hiring a guide
with a 4WD.
You can cruise the length of 75-mile
beach with the looming sand dunes on one
side of you, and crashing surf on the other,
hopping out to take a snap of the giant
dunes of red and yellow, known as the
Coloured Sands, and to wander around the
remains of the Maheno shipwreck.
Swim in Eli Creek and take a dip in clear
blue Lake Mckenzie, or splash out on a trip
in one of the four-seater planes that take off
from the beach for a bird’s eye view of the
island.
However, you choose to explore the
Sunshine State, this place is sure to take
your breath away.
WHERE TO EAT AND DRINK
Once considered a culinary backwater,
Brisbane now has a wide array of restau-
rants, bistros and bars. For well-cooked sim-
ple fare such as burgers, steak and
wood-fired oven pizzas, head to Groove
Train (www.groovetrain.com.au) in Eagle
Wharf. Or, for classy dim sum, pad thai or
butter chicken curry, book a table at nearby
Asian specialist, Siana (www.siana.com.au).
Brisbane is also a party place, crammed
full of cocktail bars and late-night hang-
outs, with the Story Bridge Hotel on
Kangaroo Point an enduring favourite, and
the venues of Fortitude Valley now the
place to be seen.
In Noosa, head to Berado’s Bistro on the
Beach (www.berados.com.au) and feast on
local cuttlefish and linguine of Noosa
Spanner Crab.
In the Town of 1770, The Tree Restaurant
(www.1770beachhotel.com), on Captain
Cook Drive, enjoys a stunning waterfront
location.
On Fraser Island, feast on bush-tucker
delights such as bunya nut, macadamia
nut, kangaroo, emu, calamari, at Seabelle
(www.kingfisherbay.com/fraser-island-
restaurants/seabelle-restaurant.html)
Kingfisher Bay Resort’s signature restau-
rant.
WHERE TO STAY
As with everything else in Brisbane, accom-
modation has improved dramatically over
the years, and top-end options now include
the stylish Stamford Plaza
(www.stamford.com.au). This hotel offers
252 opulent rooms with plush décor, deep
baths and expansive views over the river.
Facilities include a gym and outdoor swim-
ming pool, and prices start from AU $245
per person, for a twin share.
For something a little more down-to-
earth (and a little less pricey), try the studio
apartments in Oaks Charlotte Towers
(www.oakshotelsresorts.com/oaks-charlotte-
towers) in the central business district;
prices start from AU $209 for a one-bed-
room apartment and AU $289 for a two-
bedroom apartment, based on a two night
stay.
In Noosa, check-in to the luxurious Sebel
Resort (www.sebelnoosa.com), located just
a few steps from Hastings Street; prices
start from AU $164.50 per night.
In Agnes Water, in the Town of 1770,
you’ll be made to feel very welcome at
Sandcastles Motel & Retreat (www.sandcas-
tles1770.com.au); prices start from AU $200
per night, based on a three-night stay.
On Fraser Island, you can just about
make out the shape of the uber eco-friend-
ly Kingfisher Bay Resort (www.king-
fisherbay.com) as the ferry draws near to
the jetty, its arched roof peeping out above
the canopy. Prices start from AU $399 per
person for a twin share including two
nights of accommodation, return transfers,
daily buffet breakfast, and one full-day tour
of the island.
Esther travelled to Brisbane via Singapore with
Qantas (www.qantasholidays.co.uk). Qantas
flies four times a week to Brisbane, with fares
starting from £764 return. The price will be
higher over the Christmas period.
For more information go to www.queensland-
holidays.com.au.
FAST FACTS | FLIGHTS AND HOTELS
Lifestyle | Travel
29 CITYA.M. 3 OCTOBER 2011
FORMER England captain Rio
Ferdinand has been left out of
England’s squad for the Euro 2012
qualifier in Montenegro on Friday.
Liverpool skipper Steven Gerrard,
only recently fit again following six
months out with groin trouble, has
also been overlooked.
Gerrard had confessed he was
short of fitness ahead of the squad
announcement but Ferdinand was
expected to be included after shaking
off the hamstring strain he suffered
at West Brom in August.
Capello has opted to retain Gary
Cahill, who scored against Bulgaria
last month, despite Bolton’s poor
form this season and Ferdinand’s
club colleague Phil Jones, but there is
no place for Manchester City’s Joleon
Lescott.
Meanwhile, Liverpool’s Andy
Carroll, Fulham’s Bobby Zamora and
Manchester United’s Danny Welbeck
are among the forwards, with no
place for Jermain Defoe.
Zamora’s only previous cap came
in a friendly against Hungary in
August last year, after which he was
sidelined after suffering a broken leg
the following month.
The former Spurs and West Ham
target man did return as a substitute
for the June qualifier with
Switzerland but did not play.
Carroll, who scored his first
Premier League goal of the season in
Saturday’s Merseyside derby victory
for Liverpool over Everton, and
Zamora are joined by Aston Villa’s
Darren Bent and Wayne Rooney.
Another United player, midfielder
Ashley Young, is named in the squad
despite being left out against
Norwich to rest an ankle injury.
Arsenal’s Theo Walcott and
Manchester City duo Adam Johnson
and James Milner will provide compe-
tition on the flanks, while
Tottenham’s north London derby
match-winner Kyle Walker has
earned another call-up.
FOOTBALL

Taarabt strop a storm in a tea cup, insists Warnock
QUEENS PARK RANGERS manager
Neil Warnock insisted Adel Taarabt’s
petulant response to being substitut-
ed was not his main cause of concern
after watching Andrew Johnson’s hat-
trick inspire a rout of his side.
Morocco midfielder Taarabt, who
recently lost the captaincy following
the arrival of Joey Barton, failed to
emerge for the second-half and was
rumoured to have fled the stadium.
Rangers were already trailing 3-0 at
that stage, a Johnson brace sandwich-
ing Danny Murphy’s penalty, and
Warnock’s charges fared little better
after the interval with the former
England forward completing his hat-
trick, the first by any Fulham player
in the Premier League, before Clint
Dempsey and Bobby Zamora added
further gloss to the scoreline.
“I don’t think you can get carried
away too much. You get days when
Adel comes off. You’re going to get
days when he throws his toys out the
pram,” said Warnock, who refused to
confirm whether the former Spurs
star had stormed off.
“I’ve more worries than any indi-
vidual when you lose 6-0. I don't think
you can blame Adel Taarabt today.”
Meanwhile, Fulham manager
Martin Jol urged Johnson to commit
his future to the club after the 30-
year-old, who is in the final year of his
contract, took his season’s tally to
nine in all competitions.
“It’s up to him,” said Jol. “I won’t go
into details but it’s a good contract.
You would be happy with it. We have
offered him this year, next year and
an option of another year. It’s a good
offer.
“Other people are doing the negoti-
ations. I will back him all the time
and hopefully he is good for us this
season.”
CHELSEA manager Andre Villas-Boas
insists he will not allow a player’s age
to influence his team selection after
Frank Lampard rolled back the years
with a clinical hat-trick.
Lampard followed up his midweek
strike at Valencia with a vintage tre-
ble, while striker Daniel Sturridge
grabbed the other two as the Blues
demolished bottom-of-the-table
Bolton to go third in the Premier
League.
The veteran midfielder, 33, appears
to be rediscovering his best form just
as he faces increased competition for
his starting place with both club and
country and Villas-Boas acknowl-
edged Lampard’s enduring quality.
“It is not a question of age; it is a
question of competence, and this
squad is full of competence. The tal-
ent of the players is never in question
and I think we have enough to talent
to try to continue to challenge for the
Premier League,” he said. “It was good
for him [Lampard] because he had a
good, solid performance alongside
the rest of the team. He arrived with
perfect timing into the box as he has
done in the past years. His talent was
never in question.”
Sturridge enjoyed a fruitful loan
spell at Bolton last season and soon
found the Reebok Stadium to his lik-
ing again when he headed the open-
ing goal inside the second minute.
The youngster set up Lampard to
double the lead with a trademark low
finish before stand-in goalkeeper
Adam Bogdan gifted Sturridge his
second, fumbling it in at his near
post. Bogdan also handed Lampard a
second, and put the visitors four up at
half-time, when he spilled a David
Luiz shot at his feet.
Dedryck Boyata headed home
Martin Petrov’s free-kick to give
Bolton hope straight after the restart
but Lampard reasserted Chelsea’s
superiority and clinched his hat-trick
when he nimbly gathered a Didier
Drogba pass and guided a low finish
past Bogdan.
Lampard at
the treble in
Chelsea romp
Sport 30 CITYA.M. 3 OCTOBER 2011
FOOTBALL

6
0
FULHAM
QPR
Goalkeepers: Scott Carson, Joe Hart,
David Stockdale.
Defenders: Leighton Baines, Gary Cahill,
Ashley Cole, Phil Jagielka, Phil Jones,
Micah Richards, John Terry, Kyle Walker.
Midfielders Gareth Barry, Stewart
Downing, Adam Johnson, Frank Lampard,
James Milner, Scott Parker, Theo
Walcott, Ashley Young.
Strikers: Darren Bent, Andy Carroll,
Wayne Rooney, Danny Welbeck, Bobby
Zamora.
CAPELLO’S MEN | ENGLAND SQUAD
BY FRANK DALLERES
FOOTBALL

1
5
BOLTON
CHELSEA
No room for Ferdinand or Gerrard as Capello
snubs the old guard ahead of Euro qualifier
SPORT | IN BRIEF
McClaren’s Forest reign is over
FOOTBALL: Former England manager
Steve McClaren has resigned as manag-
er of Nottingham Forest after 112 days
in charge. McClaren, 50, stepped down
during a meeting with chairman Nigel
Doughty that followed yesterday’s 3-1
home defeat against Birmingham City.
Everton appeal Rodwell red card
FOOTBALL: Everton have made a formal
appeal to the Football Association
against Jack Rodwell's red card in
Saturday’s Merseyside derby. The mid-
fielder was dismissed after 23 minutes
against Liverpool, in a match the Toffees
went on to lose 2-0.
Hoey holds off McIlroy charge
GOLF: Northern Ireland’s Michael Hoey
won the Dunhill Links Championship
thanks to a late surge, which saw him
fire three birdies in the final four holes,
to hold off the challenge of Rory McIlroy.
Lampard followed
his midweek goal
with a hat-trick
Picture: ACTION
IMAGES
Swans on song
SWANSEA moved up to 10th in the
Premier League following an
impressive 2-0 home win over
Stoke. England Under-21 interna-
tional Scott Sinclair’s first-half
penalty and record signing Danny
Graham’s first goal for the club,
which arrived five minutes from
time, ensured a second win of the
season for Brendan Rodgers’ side.
TRAINER Peter Schiergen hailed a
landmark day after his Danedream
became only the second German win-
ner of the Prix de l’Arc de Triomphe.
The 20-1 shot found a devastating
burst of pace in the straight under
Andrasch Starke to upset a strong
field and claim one of racing’s most
prestigious crowns.
Shareta finished second, some five
lengths behind, while Ed Dunlop’s
Snow Fairy took third, with So You
Think and favourite Sarafina just out-
side the places and last year’s winner
Workforce 12th.
“This is my best moment in racing.
I don’t believe it – she was such an
easy winner,” said Starke of his three-
year-old filly.
“I have trained some Group win-
ners, but she is the greatest filly I
have ever trained. She won her last
two races very easily, but I didn’t
think she would be such an easy win-
ner. This is a really big day for
German racing.”
Danedream won the Italian Oaks
earlier this year and followed that
with two Group One wins in
Germany.
Earlier, Frankie Dettori claimed his
500th career Group race winner with
success on Dabirsim in the Qatar Prix
Jean-Luc Lagardere.
Great Danedream causes
shock at Prix de l’Arc
HORSE RACING

BRITAIN’S Andy Murray targeted a
rankings rise after sweeping to his
third ATP Tour title of the year at the
Thailand Open.
Murray took just 48 minutes to
beat America’s Donald Young 6-2, 6-0
in Bangkok and cap a successful first
tournament since last month’s US
Open.
And the Scot then set his sights on
overhauling Roger Federer as world
No3 in the few remaining hard court
tournaments that form the climax to
the 2011 season.
“Roger always plays very well on
the European indoor courts, so I’m
sure I’m going to have to win a lot
more matches if I want to finish as
No3,” said Murray.
“That’s the goal and I’ll keep work-
ing hard to give myself a shot at
doing that.”
Murray, whose previous 2011 wins
came at Queen’s Club and in
Cincinnati, barely put a foot wrong
against world No55 Young, whom he
also defeated on his run to the semi-
finals at Flushing Meadows.
He will be hoping to continue his
encouraging form at next week’s
Shanghai Masters event, while a
return to home soil for the ATP World
Tour Finals at the O2 looms next
month.
Murray eyes Federer
after Thailand triumph
TENNIS

Doubts grow over Wilkinson
as World Cup enters last eight

Sport
31 CITYA.M. 3 OCTOBER 2011
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email [email protected]
FORMER England captain Martin
Corry has urged manager Martin
Johnson to put his faith in fly-half
Toby Flood for the World Cup quarter-
final against France.
Jonny Wilkinson was again pre-
ferred to Flood for Saturday’s 16-12
win over Scotland, which ensured
England’s progress to the last eight.
However the veteran No10 was far
from convincing, continuing his
uncharacteristically erratic kicking
with four penalty misses and
two wayward drop goal
attempts.
Wilkinson (inset) also
picked up a forearm
injury that could rule
him out of Saturday’s
clash with France, but
Corry believes Flood
deserves the nod regard-
less.
“I think you have to start
going for horses for courses
and it would probably swing back to
Flood now,” said Corry, who played
alongside Johnson and Wilkinson in
the 2003 side that won the trophy.
“You look at Wilkinson and you
don’t know how much it is him tak-
ing the options or how much it is pre-
planned. You look at the drop-goal he
missed, but also the kick he is taking
from 45m-plus, at the angle.
“When Flood came on, he had a
penalty and he just put it straight
into the corner and England started
to play from that. You start to think
that is why England need a player
who will turn down these high-risk
penalty opportunities and start put-
ting it in the corner.
“I don’t know if that is team orders,
or Jonny Wilkinson, or the captain
Lewis Moody saying go for it, but I
think it is harming the way England
are playing the game.”
Flood’s late introduction against
Scotland prompted Chris Ashton to
score England’s match-winning try,
but Johnson defended the contribu-
tion of Wilkinson, who did succeed
with two penalties and a drop
goal.
“He missed some kicks
at goal clearly but when
we went to 12-3 we were
potentially going home,
said Johnson.
“But then he puts
over a drop goal that gets
us to 12-6 and he scores
the next penalty. He kept
his nerve and played with the
courage and tenacity that he
always plays with so I thought he
showed the character that we needed
along with everyone else.
“At times the team didn’t play well
and any individual probably had an
error in that game at some point, and
good points as well. It was one of
those game where we fought and
fought and eventually got there to
win.”
Wilkinson had a scan on his arm
yesterday but Johnson said initial
results were inconclusive.
BY FRANK DALLERES
RUGBY UNION

THE BREAKDOWN | WORLD CUP BRIEFS
GATLAND DELIGHT AT WIN
WALES boss Warren Gatland hailed a
ruthless performance after a 66-0
thrashing of Fiji booked a quarter-final
clash with Ireland. Jamie Roberts led
the way with two tries, while Scott
Williams, George North, Sam
Warburton, Lloyd Burns, Leigh
Halfpenny, Lloyd Williams and
Jonathan Davies also scored. Wales
led 31-0 at half-time and Gatland said:
“We could’ve easily slacked off but we
kept working until the 80th minute.”
ROBINSON: I’M STAYING
HEAD coach Andy Robinson insists
he wants to stay on despite Scotland
failing to reach the World Cup last
eight for the first time. Saturday’s
defeat to England condemned them to
an early exit but Robinson, who signed
a new four-year deal this year, is still
committed. He said: “I have a contract
to 2015 and I have the desire to still
coach Scotland. The way the players
have gone about this tournament has
fuelled my desire even more.”
WALES HUNTERS | Ireland into quarters
TWO tries from birthday boy Keith Earls and another from Brian O’Driscoll (above)
ensured Ireland topped Pool C and set up a quarter-final date with Wales. Needing at
least a draw with Italy to claim top spot, Ireland overwhelmed the Azzurri 36-6 in
Dunedin to send their Six Nations rivals home. Fly-half Ronan O’Gara kicked four penal-
ties and two conversions. Picture: ACTION IMAGES
TOTTENHAM manager Harry Redknapp
branded the Arsenal fans who subject-
ed Emmanuel Adebayor to a torrent of
abuse throughout a heated north
London derby as “disgusting”.
Kyle Walker’s 25-yard blast secured
three points for Spurs, affording the
Togo striker the last laugh and the
opportunity to laud it over the support-
ers who once idolised him.
Redknapp beamed after a fourth con-
secutive league victory, but blasted
those fans who chanted that they
wished their former striker had been
killed in the armed ambush of the Togo
team bus last year.
“How do you chant something like
that?” he said. “You can’t be right, men-
tally. There’s kids up there. I don’t know
what you can do but you can do some-
thing to the parents of those kids. It’s
disgusting. It’s got no place in life.”
Arsenal manager Arsene Wenger,
meanwhile, who was subjected to the
usual vile abuse, along with Bacary
Sagna, the full-back who will miss the
next three months after he sustained a
fracture to the fibula in his right leg
when colliding with the advertising
boards, added: “We respect everybody
and we want to be respected as well.”
Wenger was also involved in an ugly
touchline spat with Tottenham assis-
tant coach Clive Allen at the final whis-
tle. The Frenchman shook hands with
Redknapp and Tottenham’s No2 Kevin
Bond but skipped Allen, who subse-
quently described Wenger as “two-bob”.
“I shook the hand of the manager
and the assistant,” Wenger said. “How
many hands do I have to shake?”
The game itself lived up to recent
incident packed editions of this fixture.
Arsenal enjoyed the lion’s share of pos-
session but Spurs carried the greater
goal threat and took a deserved lead in
the 40th minute.
Rafael van der Vaart collected
Adebayor’s pass – deliberately with the
use of his hand, according to Wenger –
and fired low past Wojciech Szczesny.
The Gunners responded with the
equaliser six minutes after the inter-
val – Aaron Ramsey stabbing home
Alex Song’s cross – but Walker’s fizzing
shot 17 minutes from the end slipped
through the grasp of the previously out-
standing Szczesny to condemn Arsenal
to a fourth defeat of the season.
Wenger effectively ruled his side out
of the title race afterwards, but
Redknapp still believes they will mount
a challenge for fourth place.
He said: “They’re a strong side when
they get one or two back from injury.
Obviously, it’s great for the fans to beat
Arsenal and it’s a big game.
“When you’ve beaten one of the
teams that are going to be up there
with you, it’s always a bonus.” Walker celebrates his first Spurs goal as assistant coach Allen rows with Wenger (inset) Pictures: PA, ACTION IMAGES
MANAGER Martin Johnson has
revealed his anger after England’s
progress to the World Cup quarter-
finals were overshadowed by fresh
allegations about the behaviour of his
players.
Johnson confirmed that wing Chris
Ashton, flanker James Haskell and
hooker Dylan Hartley were made to
apologise to a Dunedin hotel employ-
ee over comments they made to her.
The incident, which emerged yes-
terday but happened on the day
before England’s tournament opener
against Argentina, is the latest in a
series of controversies to beset
the team’s expedition to New
Zealand.
It follows unwelcome head-
lines about vice-captain Mike
Tindall’s visit to a
Queenstown bar, the sus-
pension of two England
coaches for trying to ille-
gally switch balls during
a game and the ban-
ning of lock Courtney
Lawes.
“I was angry with
them,” Johnson (right)
said of Ashton,
Haskell and Hartley.
“What they thought
was humour and a light-hearted
exchange has clearly not been
taken that way by the girl involved.
“At the time, they apologised
when they realised they had
stepped over the mark. They
had no idea how upset
she subsequently
became. The guys for-
mally apologised. They
were shocked when
they understood how
upset she had
become.”
The latest controver-
sy – and the citing of
wing Delon Armitage
for a high tackle in
Sunday’s decisive win over Scotland –
raises further questions about
England’s discipline, which Johnson
was quick to insist remains robust.
“We investigated the facts fully,” he
added. “They have been disciplined,
reprimanded for their behaviour and
left in no doubt. If you leave yourself
open for these headlines to be written
it drags us all into it and that is what
makes me particularly angry.”
Johnson, whose side will meet
France in the last eight, also rejected
suggestions he could send Tindall
home after it emerged the centre’s
initial account of his night out in
Queenstown had been misleading.
WILKINSON DOUBT: PAGE 31
Chants sicken
Redknapp as
Spurs claim
derby spoils
Sport
32
HAT-TRICKS FOR AJ
AND LAMPARD
WEST LONDON DUO
GO GOAL CRAZY: P30
BY FRANK DALLERES
RUGBY UNION

BY JAMES GOLDMAN AT WHITE HART LANE
FOOTBALL

2
1
TOTTENHAM
ARSENAL
October 8: Ireland v Wales, Westpac
Stadium, Wellington, 06:00
October 8: England v France, Eden Park,
Auckland, 08:30
October 9: Australia v South Africa,
Westpac Stadium, Wellington, 06:00
October 9: Argentina v New Zealand,
Eden Park, Auckland, 08:30
DRAW | WORLD CUP QUARTER-FINALS
Johnson fury as controversy sours England win
CITYA.M. 3 OCTOBER 2011

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