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Issue 1,321 Monday 14 February 2011 www.cityam.com FREE

DAVIES REJECTS Deal frenzy


as Nasdaq

GENDER QUOTAS eyes a role


FINANCIAL MARKETS
BY RICHARD PARTINGTON
NASDAQ, the world’s second largest
POLITICS stock exchange by market capitalisa-

BY MARION DAKERS tion, could become the latest bourse to


merge. The US exchange is said to con-
UK BOARDROOMS will not be forced sidering its options following a flurry of
to recruit more women to top jobs, deals between rivals.
after a government panel ruled out The New York Stock Exchange (NYSE)
imposing gender quotas, City A.M. can said last week it was in advanced talks
confirm. with Germany’s Deutsche Boerse, only
A report chaired by former trade hours after the London Stock Exchange
minister Lord Davies of Abersoch (pic- confirmed it had agreed to merge with
tured) will not recommend a state- Canadian stock operator TMX Group.
imposed quota system to help break NYSE’s board of directors met last
up the male dominance of UK compa- night to discuss the deal with Deutsche
nies when it reveals its findings on 24 Boerse, with an announcement on the
February, a senior committee mem- deal expected as soon as tomorrow.
ber confirmed yesterday. US senator Charles Schumer yester-
The report’s authors, tasked by day said he was told the management
business secretary Vince Cable team at NYSE would take control of the
with boosting the number of The UK’s leading female chief executives include (left to right) Anglo American’s Cynthia Carroll; Imperial Tobacco’s Alison newly formed group.
women taking directorships, Cooper; Alliance Trust’s Katherine Garratt-Cox; Burberry’s Angela Ahrendts (above); and Pearson’s Marjorie Scardino His comments could raise concerns
will instead call on companies in Germany, where the deal is being
to do more on a voluntary familiar with the tunities further down the corporate of 1,076 directorships, research by sold as a German takeover of the NYSE
basis to attract more female report told City A.M.: ladder instead during a consultation Cranfield University showed. or as a merger of equals.
candidates, with the threat of “Clearly nobody in in October. The World Economic Forum in Should the exchanges complete the
quotas as a last resort if num- the City would prefer to The Institute of Directors said even Davos tried to impose a 20 per cent transaction the new company could be
bers fail to improve. see quotas.” voluntary quotas are “demeaning for quota for female delegates, withhold- named DB NYSE Group, according to
It is expected to criticise Many business bodies many aspiring and existing female ing extra places from companies that people close to the negotiations.
headhunters, chairmen and and academics were directors”, while the CBI put forward sent all-male delegations to the con- Meanwhile, the London Stock
institutional sharehold- dismayed by the a “comply or explain” model similar ference in January, but fell short Exchange’s planned merger with
ers for failing to tackle idea of govern- to that planned in Australia. with around 16 per cent. Canada’s TMX Group could be derailed
the problem sooner, ment-imposed Angela Knight, chief executive of The European Commission is also by Canadian officials.
and push for quotas on board- the British Bankers’ Association, said considering a mandatory target for Dwight Duncan, who as the state of
transparency rooms, with sev- yesterday: “There needs to be some women on boards, following the Ontario’s finance minister is tasked
in firms’ e r a l positive encouragement for women, introduction of schemes in Norway, with vetting the deal, raised concerns
b o a r d - l e ve l recommend- but quotas don’t necessarily lead to France and Spain. Norway is close to over Borse Dubai, one of the London
recruitment. ing trial direc- the right answer.” its target of 40 per cent after five Stock Exchange’s largest investors, hold-
But, as torships and There were 135 female directors in years under a mandatory quota. ing 11.3 per cent of the new company.
one source better oppor- FTSE 100 companies during 2010, out ALLISTER HEATH: P2 EXCHANGE CONSOLIDATION: P19

FTSE 100 ▲6,062.9 +42.89 DOW ▲12,273.26 +1.36 NASDAQ ▲2,809.44 +18.99 £/$ 1.60 t-0.01 £/¤ 1.18 unc ¤/$ 1.36 unc Certified Distribution
03/01/11 till 30/01/11 is 97,465
2 News CITYA.M. 14 FEBRUARY 2011

Why quotas are the wrong answer NEWS | IN BRIEF


Wood in £1.75bn sale of unit
General Electric says its oil and gas busi-
ness has reached a deal to buy the John
methods will fail. Quotas are tanta- yore is in dramatic retreat – but that attend meetings. So 17.4 per cent of Wood Group's well support division for
mount to placing a sticking plaster on has not been enough. Intriguingly, members are women, falling to 13.8 about $2.8bn (£1.75bn). GE said in a
an infected wound, and assuming that there has been an explosion of foreign- per cent of ministers in attendance. All statement yesterday that the deal must
all is now well. born male CEOs – the UK boardroom, the powerful positions are held by be approved by Wood Group's share-
Quotas devalue the achievements of at least at the top, is no longer a closed men, with only minor departments holders. It's expected to close later this
those who climb to the top without shop dominated by a self-perpetuating (and non-departments) in the hands of year. Wood said last week it was consid-
any artificial assistance, punish those elite. But this hasn’t translated into a women. The media is no different: out ering a disposal.
who are discriminated against, shift of the gender balance: the share of eleven national daily paid-for
EDITOR’S LETTER inevitably promote inferior candidates of female FTSE 100 directors seems papers, ten national Sundays, three China to link Atlantic and Pacific
(and hurt firms) and create resent- stuck at 12.5 per cent and just 7.8 per free daily commuter papers and the China is in talks to build a “dry canal”
ALLISTER HEATH ment. They replace one flawed net- cent for the FTSE 250, as Cranfield three top-circulating current linking Colombia's Atlantic and Pacific
work by another: instead of the old University’s annual FTSE Board Report affairs/political weekly magazines, just coasts by rail, Colombian President Juan
QUOTAS are wrong. In a free, liberal school tie, whereby a small group of points out. In 2009, of the 14 new two (7.4 per cent) are edited by women. Manuel Santos was quoted as saying
society, people should never be given male cronies serve on vast numbers of women hired as FTSE 100 directors for There is hope. Eighty-two FTSE 100 yesterday. The 220km project, dubbed
jobs just because they happen to be boards, an even smaller number of the first time, only one was British. Of companies have women on their exec- as an alternative to the Panama canal, is
part of a particular group. Applicants women would end up doing the same, the five female FTSE 100 CEOs in 2011, utive committees. Many of these will one of a series of Chinese proposals that
should be judged solely on their merits in an even more extreme manner. The just two are British, three American eventually graduate to main board would boost transport links with Asia.
– for their ability to perform and their figures would look better, but there (and if Santander UK floats, the sixth directorships. There is also a growing
motivation – and not on whether they would be no real transfer of power. would be Spanish). UK born-women pipeline – 2,551 women on the corpo- AIG wants sovereign funds
tick an arbitrary box. There should be Other solutions are needed. For a are falling behind even their foreign- rate boards and executive committees AIG and the US government are hoping
no discrimination against or in favour start, there is a desperate need to bet- born counterparts, let alone men. of all FTSE listed companies, not count- soverign wealth funds will buy a large
of any group and no favouritism. ter understand the real reasons why It is not just boardrooms that are ing the women on FTSE 100 corporate trance of the insurer’s shares when it
Those who want strict rules on the there aren’t more women in top jobs male-dominated – this is a much more boards. Change is coming. I wish I sells up to $20bn worth. With the gov-
proportion of women on quoted com- and what can be done to sweep away general issue. Take the Cabinet: out of knew how to speed it up – but quotas ernment share sale expected to take
pany boards are rightly seeking to barriers to a truly meritocratic Britain. 23 members, four are women (includ- are clearly not the way forward. place in May, AIG and the government
improve women’s chances and to help Clearly, the old-fashioned, in-your-face, ing a minister without portfolio); allister.heath@cityam.com have reportedly begun making contact
them realise their dreams – but their despicably sexist discrimination of another six (male) ministers also Follow me on Twitter: @allisterheath with sovereign funds in Asia and Europe.

7th Floor, Centurion House,


24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
PM defends
Big Society
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
POLITICS Funded by £100m of cash from dor-

Lifestyle Editor Zoe Strimpel


Sports Editor Frank Dalleres BY RICHARD PARTINGTON mant accounts and an additional Vince Cable returned to the attack on bonuses and banks yesterday.
Art Director Craig Gaymer £200m given by the UK’s largest banks,

Cable: banks need surgery


Pictures Alex Ridley DAVID CAMERON will today launch a it will use its balance sheet to co-invest,
defence of his Big Society plans, as the underwrite or guarantee investments
Commercial government opens a new bank for along with private sources of capital.
Sales Director Jeremy Slattery charitable causes. Maude will today say: “The Big
Commercial Director Harry Owen The prime minister will tell social Society Bank will massively expand
Head of Distribution Nick Owen entrepreneurs in a speech today: “The finance for social ventures, creating a
Big Society is my mission in politics.” new source of finance alongside phi- BANKING Asked about the possible break-up

Distribution helpline “Let me make one thing absolutely lanthropy and public service contracts. of investment and retail banking, he
If you have any comments about the distribution BY JULIET SAMUEL
of City A.M. Please ring 0207 015 1230, or email clear: I’m not going to back down from It’s unthinkable for businesses to grow said: “There needs to be fundamental
distribution@cityam.com what I believe in just because of a few and thrive without capital finance but BUSINESS secretary Vince Cable reform. There will have to be change
bad headlines.” this has too often been the reality for emerged from a long period of keep- and it will have to be radical.”
Editorial Statement His defence comes as cabinet office charities and social enterprises.” ing a low profile yesterday to condemn “What we should notice at the end
This newspaper adheres to the system of minister Francis Maude launches the large bank bonuses as “offensive” and of (banking reforms) is the banks are
self-regulation overseen by the Press Complaints Big Society Bank, a key plank of the Francis Maude will to call for “fundamental surgery” on more competitive and that they are
Commission. The PCC takes complaints about the prime minister’s plans to engineer a the industry. safer and that they are not making
editorial content of publications under the Editor’s launch the Big Society
Code of Practice, a copy of which can be found at social investment market. Having stayed out of the limelight large excess profits which then fuel
www.pcc.org.uk The bank will have an initial capital- Bank, a key part of the since December when he was record- the bonus culture,” he said. His attack
Printed by Newsfax International,
isation of up to £300m and will serve to government’s plans to ed saying he had “declared war” on on banks days after the Merlin deal
Beam Reach 5 Business Park, encourage investors to plough funds boost social investment. Rupert Murdoch, he has returned to was launched could put him on a colli-
Marsh Way, Rainham, Essex, RM13 8RS into charities and social projects. his campaign against banks. sion course with the Treasury.

WHAT THE OTHER PAPERS SAY THIS MORNING


CONCERN OVER PAY “COMPLEXITY”
Leading City investors are pressing
companies to reduce the increasing
SIEMENS EYES BIG NETWORK PUR- complexity of how they calculate COST OF AXEING BRITAIN’S DEFENCES IVOLGA PUTS WORLD’S BIGGEST FARM J.P. MORGAN PLANS NEW-MEDIA FUND
CHASES management pay ahead of the UK’s The full cost of military equipment UP FOR SALE J.P. Morgan Chase & Co., riding the
Siemens is looking out for large busiest season for annual general being scrapped as a result of the gov- The world's biggest farm has put up wave of investor interest in fast-grow-
acquisitions to expand its power net- meetings. Several institutional share- ernment’s defence review will be the for-sale sign, after being hit by a ing, privately held technology firms
works and plant automation busi- holders have told the Financial Times more than £12bn, The Times can collapse in grain prices during the such as Facebook and Twitter, plans
nesses, in a fundamental strategic that they are concerned about a reveal. A further £2.3bn worth of world financial crisis, and then by the to start a fund that would invest in
shift by the German industrial con- growing trend of companies intro- defence kit has been designated as droughts and the fires that raged Internet and digital-media compa-
glomerate. Joe Kaeser, Siemens’ chief ducing ways of calculating perform- “lost”, Danny Alexander, the Chief across its territories last summer. nies, people familiar with the matter
financial officer, said Europe’s largest ance-linked pay packages that are not Secretary to the Treasury, will admit Ivolga, a farming conglomerate which said. The planned investment fund,
engineering group by sales had tied to share price performance, or to Parliament today. The figures will controls 1.5m hectares of land across run from the New York company’s
reached the “management maturity” involve the use of opaque discre- be announced as part of the Spring Russia and Kazakhstan, is presently asset-management unit, is expected
to pursue significant takeovers. tionary criteria. Supplementary Estimates released negotiating with Royal Bank of to raise between $500m and $750m,
that show accounting changes and Scotland, which leads its creditors, to these people said.
OUATTARA THREATENS TO EXTEND GROSVENOR TAPS BOND MARKET any extra spending across govern- restructure a $300m loan it arranged
COCOA BAN Grosvenor, the property company ment departments approved by the in 2007. BORDERS' WOES HELP E-BOOKS
Alassane Ouattara, the international- owned by the Duke of Westminster, Treasury this year for 2010-11. ARTICLE
ly recognised winner of Ivory Coast’s has tapped the international bond NATIONAL EXPRESS NOT RUFFLED BY A bankruptcy filing by Borders Group
disputed presidential election, has markets to raise £125m to invest in FANNIE AND FREDDIE FACE EVICTION HEDGE FUND ELLIOTT Inc., which could come within days,
pledged to extend indefinitely the the development of its London estate, IN AMERICA National Express has denied that will mean fewer places for consumers
one-month ban on cocoa exports if including salubrious addresses in The Obama Administration took a Elliott Management, an aggressive to buy books, which in turn is expect-
rival Laurent Gbagbo has not left Mayfair and Belgravia. It raised wrecking ball to its dilapidated hous- American hedge fund with 16pc of ed to speed the pace of online and e-
power by the time the restriction £125m through an issue of long-term ing finance system yesterday by the transport group, is placing pres- book sales. Borders has been putting
expires on 23 February. The move unsecured loan notes as part of a announcing plans to wind down sure on the company to put itself up the finishing touches on a store-clo-
could push cocoa prices higher strategy to diversify funding sources. Fannie Mae and Freddie Mac. for sale. sure programme.
CITYA.M. 14 FEBRUARY 2011 News 3

KING’S SPEECH SWEEPS BOARD AT BAFTAS


Obama government vows to
halve US deficit in a decade
today, puts the government on track “He”s going to present a budget


US POLITICS
BY HARRY BANKS to halve the federal budget deficit by that will continue to destroy jobs by
the end of Obama’s first term in spending too much, borrowing too
US president Barack Obama’s 2012 office, which extends through 2012. much and taxing too much,” said
budget plan would slash the US “We’re doing what every family House of Representatives speaker
deficit by $1.1 trillion (£688bn) over does when it sits around its kitchen John Boehner.
10 years, officials said yesterday. table: we’re making the choices about The budget proposal is certain to
However opposition Republicans what do we need for the future,” said kick off a heated debate with
were unimpressed and vowed to push Lew. Republicans, whose big gains in
for deeper cuts in spending. Republicans, who control the November’s elections were fuelled by
White House budget director Jack House of Representatives, said they conservative activists calling for cuts
Lew said the proposal, to be unveiled would make more savage cuts. in spending and government size.

"The King's Speech", in which Colin Firth plays the stammering King George VI, won the
British BAFTA award for best film yesterday, the seventh prize the picture picked up on
“ WHAT COULD
BE SIMPLER THAN
the night. Firth won for best actor while his co-stars Helena Bonham Carter and Geoffrey
Rush also won the best supporting actress and actor respectively. Picture: REUTERS

Egypt strikes SPREADS?



force holiday NOTHING.
owned National Bank of Egypt, the

WORLD AFFAIRS
BY JENNY FORSYTH country’s biggest commercial bank,
submitted his resignation yesterday
EGYPT has been forced to declare after angry employees prevented him
today a bank holiday after workers from reaching his office, bankers
emboldened by the ousting of said. The central bank, responsible for
President Hosni Mubarak and the state banks, had not yet accepted
angered by low wages and poor work- the resignation, they added.
ing conditions disrupted operations The Egyptian pound was little
at the country’s state banks. changed in slow trade yesterday, the
Banks were already due to be first day of trading since Mubarak
closed tomorrow to mark Prophet was toppled from power on Friday,
Mohamed’s birthday. Now the market and the central bank said it had suc-
is likely to face further turmoil when cessfully covered an auction of E£6.5
it opens on Wednesday for the first bn (£691m) in treasury bills.
time since its closure on January 27. The Egyptian market is set to
Egyptian workers have begun to impose new restrictions when it
show their pent-up frustration, with reopens, as an extra security.
thousands staging strikes, sit-ins and Trading will be suspended for 30
protests over pay and conditions at minutes if there is a five per cent
firms and government agencies in change in the EGX100, a benchmark
fields such as steel, textiles, telecoms, index. A 10 per cent change would
railways, post offices, banks, oil and result in a suspension of activity for a
pharmaceutical companies. period to be determined by the
Tarek Amer, chairman of state- exchange.

Violence breaks out in Bahrain


as anti-government rallies begin
The tiny kingdom is one of the

WORLD AFFAIRS
most politically volatile areas in the
VIOLENCE broke out in Bahrain last Gulf and is also home to the US
night on the eve of anti-government Navy’s 5th Fleet.
rallies spurred on by the success of Bahrain’s Shiites, who make up
the uprising in Egypt. around 70 per cent of the population,
Riot police clashed with youths have long complained of discrimina-
staging a march in Karzakan, a Shiite tion by the ruling Sunni dynasty.
village in western Bahrain, and set up Bahrain’s leaders have tried to
checkpoints ahead of today’s “day of quell the protests by offering more
rage”, which has been largely organ- press freedom and giving every
ised through the internet. Bahraini family 1,000 dinars (£1,700).
4 News CITYA.M. 14 FEBRUARY 2011

ECB could still


Weber: euro
FRONTRUNNERS FOR THE ECB JOB

pursue state
doves blocked ERKKI LIIKANEN MARIO DRAGHI
clearing house

ECB candidacy


EUROZONE
Currently the governor of the Bank of Italy’s central bank governor and BY JULIET SAMUEL
Finland and a member of the ECB chair of the Financial Stability Board, THE nationalisation of over-the-
governing council, Liikanen could sat- Draghi was viewed as the only obvi- counter (OTC) derivatives trading in
isfy a perceived need for geographical ous rival to Weber for the ECB job. But the Eurozone could still be on the
balance in the ECB’s make-up, given his chances are hurt by his nationali- table despite the exit of Axel Weber
that its vice-president is from ty: Germany will not be keen to have from the race for European Central

EUROZONE He now says that he was “aware that Portugal. However, EU economics southern-Europeans as both presi- Bank presidency.
BY JULIET SAMUEL a potential candidacy would be dam- commissioner Olli Rehn is also dent and VP. German daily paper Bild As City A.M. revealed, the proposal
aged” by his stance. “The (ECB) presi- Finnish. Liikanen is known as a mod- has already said that he would not be to create an ECB-run clearing house
BUNDESBANK governor Axel Weber dent has a special role,” he added. erate on monetary policy. hawkish enough on inflation. for OTC products such as collater-
has been forced out of the running for “However, if he has a minority position alised debt obligations and interest
the European Central Bank (ECB) pres- in important questions, then the cred- rate swaps formed a key part of Axel
idency by Eurozone doves who would ibility of this office suffers.” Weber’s campaign agenda for the
have marginalised his hawkish views, Weber’s withdrawal throws the race ECB before he was forced out of the
he said after quitting the Bundesbank wide open to a thin pool of candidates, race last week.
presidency on Friday. with Germany lacking an obvious But some observers think that the
Weber was the front-runner to replacement. Germany is likely to have ECB’s development of TARGET2
replace outgoing ECB president Jean- a strong say in the selection of a new Securities, or TS2, a trading platform
Claude Trichet until last week, when president due to its role in bank- for bonds and equities in the
he announced that he is quitting the rolling successive Eurozone bailouts. Eurozone, could be a precursor to
Bundesbank in April, a year before his The race will pit traditionally hawk- the creation of a similar platform for
term is up.
Referring to his opposition to the
ish countries fearful of inflation, like
Germany, against more indebted,
KLAUS REGLING YVES MERSCH derivatives.
Pinsent Mason’s Tony Anderson
ECB’s activism in buying sovereign high-unemployment economies like says: “You wonder if they’re trying to
bonds to shore up the euro, Weber Spain and Italy, who would favour The current head of the European The central bank governor of develop synergies, bearing in mind
said: “These positions might not have loose policy and a more activist bank. Financial Stability Facility, the Luxembourg would satisfy German the focus around OTC derivatives
always been helpful for my acceptance And there is also a strong element of Eurozone’s €440bn bailout fund, demands for a hawk, having once and the political willpower to have
in some governments.” national pride at play. ING economist could provide German Chancellor joked: “Do I look like a hawk? Is it the central clearing houses bring OTC
Eurozone governments have Carsten Brzeski asks: “Could the Angela Merkel with a replacement shape of my nose?” He views price sta- transactions on-market.”
become heavily reliant on ECB French live without a French member German to fly the national flag. He is bility as a central bank’s key responsi- The EU is currently drafting regu-
activism as worries about the euro in the ECB’s executive board after the thought to be hawkish on monetary bility and has criticised both the lation to force OTC derivatives trades
have pushed up yields in peripheral end of Trichet’s term?” One member policy while being more conciliatory ECB’s bonds purchases and low rates. into regulated central clearing hous-
economies. But Weber has vocally dis- of the board will retire in May, while than Weber. But his lack of central This might mean, however, that he es even as the ECB develops its own
agreed with the bank’s interventions. Trichet will step down in October. bank experience weighs against him. faces the same opposition as Weber. more extensive trading platforms.
6 News CITYA.M. 14 FEBRUARY 2011

Review looks at
Insurer JLT high cost of sick
to shun City leave from work

skyscrapers
EMPLOYMENT


THE government will this week
announce an independent review into
sickness absence in the workplace, to
be co-headed by David Frost, head of
the British Chambers of Commerce.
He will be joined by Dame Carol
However, work could be delayed by Black, who in 2008 led a review that

EXCLUSIVE
BY MARION DAKERS New College, Oxford, which owns the estimated a £100bn cost to the econo-
freehold land underneath the build- my from illness-related absence and
INSURANCE broker Jardine Lloyd ings and has so far withheld its per- worklessness.
Thompson is close to signing for mission for work to begin. How the Fenchurch Street site looks now (above) and the developers’ plans (below) The review culminated in the new
office space in a new development at A spokesperson for JLT declined to “fit note” system being promoted by
80 Fenchurch Street, industry sources comment on 80 Fenchurch Street, the Department for Work and
have told City A.M. but told City A.M.: “We have been look- Pensions, whereby doctors advise peo-
The insurance firm, which is cur- ing at various options and aren’t in ple how to return to work while safely
rently based at 6 Crutched Friars, had any agreement at a contractual level.” recuperating.
been linked with flagship City towers Shieldpoint 78 and Twinlite could The average cost of absence is far
including the Cheesegrater, but is not be reached for comment. higher in the government sector,
now understood to have ruled out The developers of several City tow- where occupational sick pay schemes
taking space in a skyscraper. ers including the Cheesegrater, are “most generous,” according to the
Twinlite, an Irish property develop- Walkie Talkie and the Shard are cur- Chartered Institute of Personnel and
er, hopes to build a nine-storey block rently hunting for tenants to sign for Development (CIPD).
designed by architect Foster + office space in their developments “The median cost per employee in
Partners on the 80 Fenchurch Street ahead of completion in 2014, while the public sector is £889, more than
site, which is due for completion in the investors financing the Pinnacle twice that in the manufacturing and
2013. have asked for a large pre-let before production sector (£400),” the CIPD
Shieldpoint 78, an Isle of Man-regis- they grant further funding. found. In both private sector services
tered firm named as the developer on London has seen a resurgence in companies and non-profit organisa-
planning applications, could start large office builds over the last 12 tions, the average annual cost of sick-
work as soon as this month after win- months, with developers keen to cash ness is £600 per employee.
ning permission from the City of in on an expected space squeeze after And the NHS itself could save
London in late January to demolish 2012. Some have restarted projects £555m a year by reducing sickness
the empty buildings at 78 – 87 that were shelved during the reces- absence, according to the think tank
Fenchurch Street. sion. Reform.
CITYA.M. 14 FEBRUARY 2011 News 9

Private firms step


Barclays chief
executive Bob
Diamond is due to
give his first full-
year presentation

in to create jobs
as head of the
group
tomorrow.
Picture: Micha
Theiner
/City A.M.

sector take hold.


RECRUITMENT
BY RICHARD PARTINGTON Manufacturing and private sector
services will provide the most jobs
JOB creation in the private sector is over the first quarter of 2011, accord-
starting to pick up, according to a ing to the survey of 750 employers.
respected report. However, redundancies look set to
The survey, conducted by the rise sharply. Public policy adviser at
Chartered Institute of Personnel and the CIPD Gerwyn Davies said:
Development (CIPD) and KPMG, lends “Encouragingly, the private sector
support to prime minister David continues to generate new jobs, but
Cameron’s claim that private firms we are some way off the jobs boom
will provide jobs as cuts in the public that we are all hoping for.

BarCap to be
star turn in
bank figures Cell,
cell,
profit of £4.3bn for 2010, versus

BANKING
BY JULIET SAMUEL £5.7bn for the group overall. This Evolution Securities’ Arturo de Frias
would compare to group pre-tax claims that the bank would need to raise
BARCLAYS is expected to rely on its profits of £4.59bn last year, of which £5bn in order to stay above the 10 per cent
investment banking division, £2.46bn came from BarCap. mark.
Barclays Capital, for over 70 per cent Diamond is expected to announce

cell.
of its pre-tax profits when it reports a cost-cutting initiative across the
its full-year results tomorrow. whole group, extending the job cuts
Analysts are anticipating a loss at currently being implemented at
the bank’s corporate division, mean- BarCap.
ing that despite a difficult year for And in reponse to concerns about
investment banks, BarCap will bring the bank’s capital buffer, he could
in the vast majority of the group’s also announce that he is tying
earnings. bonuses to its capital ratio using a
Bonuses are expected to fall, form of contingent convertible bond
although the overall compensation that would be triggered if its capital
ratio of pay to revenues could go up, falls too low.
partly as a result of accounting rules Some analysts claim the bank will
governing deferred pay. struggle to keep its core tier one cap-
Despite a likely drop in bonuses, ital ratio at 10 per cent.
the bank will have to face down con-
troversy over the pay of its chief exec- ANALYSIS l Barclays
315 p
utive Bob Diamond, who is due for a
bonus of up to £9m in shares. Even 305 311.10
under pressure, the bank could 11 Feb
295
decide not to reveal his award until
the release of the bank’s formal full- 285
year report in several weeks. 275
With Diamond presenting the
results for the first time as chief 265
executive tomorrow, his old division, 255
BarCap, is expected to report pre-tax 18 Nov 6 Dec 29 Dec 20 Jan 10 Feb

HIG buys British Amlin warns on


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PRIVATE EQUITY INSURANCE


HIG Europe, the European arm of THE CHIEF executive of Amlin, the FKHFNFKDUWVDQGPRUH
global private equity house HIG Lloyd’s of London insurer, has warned
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International, the mobile phone serv- regulations set to be introduced in
ices provider. 2013 are too aggressive.
Bought from Advent International Charles Philipps said any attempts To download, simply search for IG Index
for an undisclosed price, the Aircom by UK regulators to aggressively in the App Store today.
investment marks HIG’s eighth new enforce strict European Solvency II
deal investment in the last 12 months. capital requirements could force
Barclays and HSBC provided a “joint Amlin to relocate. 6SUHDGEHWWLQJFDQUHVXOWLQORVVHVWKDWH[FHHG
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10 News CITYA.M. 14 FEBRUARY 2011

Boeing wows the public Investors are getting picky


with latest 747 jumbo jet host of disappointments for the mar-
ket: from Cisco to Air France-KLM,
European earnings season so far,
UBS reports: “We are now approach-
from Nokia to L’Oreal. In the UK, ing halfway through the season, and
given a cool reaction to the new Diageo fell last week as sales missed the developing trend has been of

AVIATION
plane, with Boeing only having taregts on the back of the economic consensus expectations catching up
AIRCRAFT manufacturer Boeing yes- received 33 orders for the $317.5m woes of Greece, Spain and Ireland. with the early positive reporting,
terday unveiled its first new 747 pas- (£198.4m) aircraft. So are the wheels falling off the leading net reporting to nearer to in-
senger aircraft design for more than German flag carrier Lufthansa has earnings story? The answer, by and line.”
20 years. placed 20 orders so far, whilst CNBC COMMENT large, is a resounding “no”. If, for Nelson believes though that the
The 747-8 Intercontinental jumbo
jet was introduced to around 10,000
Korean Air Lines has agreed to buy
the rest. STEVE SEDGWICK example, you look at the US report-
ing season so far, 71 per cent of com-
top line growth story for companies
remains strong, but it is the capex
workers, guests and the media at the The first plane the public will get panies have beaten forecasts, increases coming through to the bot-

L
firm’s jet factory in Everett, near the chance to fly on will be delivered ET’S face it; for most of the rally according to Capital IQ, a market tom line that are hurting for some
Seattle. to Lufthansa in 2012. off the 2009 lows, equity analytics research group. Capital IQ companies.
The 747-8 design is 85 per cent A freight version of the aircraft investors could have got a says this is being led by a strong per- Higher costs are materialising for
new, only relying on some elements has had more success, with 74 sales decent return from buying just formance from the financial sector. companies across the board but it is
of the original 747 plans, and has to date. about any mainstream index. It’s In fact, virtually no sector is showing the ability, or lack of ability, to pass
new more fuel efficient wings, tail The US firm had attempted several been pretty much one-way traffic a net miss on numbers. them on to the consumer that is the
and engines. times to develop an updated version and even the most inept of investors The problem appears to be an key. The nearer you are to the con-
As the biggest jumbo jet Boeing of the 747 after it released the last could be sitting pretty on a big dou- asymmetrical response from the sumer, then the harder it is to pass
has manufactured, the plane is 250 version of the iconic plane in 1989, ble-digit return. But is the going market when looking at beats com- on price increases. That, at least, is
feet long and can seat as many as only to be thwarted by a lack of inter- about to get a lot tougher? pared with misses. UBS strategist how the logic goes.
467 passengers – 51 more than the est amongst operators. To recap, the S&P is up circa 95 per Nick Nelson pointed out to me last So while it’s not exactly the
current range. The 747 long ago lost its cent from March 2009, the Euro week that companies beating expec- moment to call time on the equity
The glamorous ceremony to intro- place as the world’s largest Stoxx 50 is up 22 per cent ahead of tations in Europe are being reward- market rally of the past two years,
duce the jet, which has an eye-catch- airliner, when the 525- its twelve month low and our very ed with a 3.06 per cent rise in their with much of the easy money now
ing red, orange and white, striped seat Airbus A380 was own FTSE 100 has gone up 16 per share prices on average on the day or well and truly in the price, it is
paint scheme, was intended to drum unveiled in 2005. cent in the last 52 weeks. So far, so reporting. However, companies miss- undoubtedly time to return to good
up interest good – but the current earnings sea- ing are being hit by an average 5.43 old – and tricky – stock picking. How
amongst son may be proving that the time to per cent fall. The conclusion is clear inconvenient for most of us.
operators. be a little more stock specific could – investors are getting fussier. They Steve Sedgwick is a presenter on
However be upon us. want more bang for their buck. Squawk Box Europe each weekday morn-
airlines have so far This past week has seen a whole In its most recent report on the ing on CNBC.

Ballmer questions
Twitter valuation
TECHNOLOGY

figure that’s predicted to double


BY ELIZABETH FOURNIER in 2011.
Ballmer also stressed the dif-
MICROSOFT chief executive ference between Google, which
Steve Ballmer has questioned went public in 2004, and the
the rumoured $10bn (£6.2bn) slew of private social media Revenue This is predicted to
valuation of Twitter, and sug-
gested that the price will be dif-
ficult for a potential buyer to
companies such as Facebook
and Twitter that have been the
subject of so much price specu-
$45m rise to $250m by 2012, accord-
ing to research by eMarketer
sustain if the site were to go lation.
public. “The valuations aren’t put to
Multiple The number of times
“Nobody has paid $10bn yet
for Twitter,” he is reported as
saying. “We have a great rela-
the test every day,” said Ballmer.
“So we’ll see what happens.”
Meanwhile Twitter dashboard
222 revenue that the $10bn figure
values Twitter at
tionship with them, but the TweetDeck is believed to be in
numbers are certainly large – talks with a view to being taken Users Just 12 per cent of
there is no question about that.”
In its most recent fundraising
last December, Twitter raised
over by software developer
UberMedia that would value it
at between $25-30m.
12% internet users use Twitter –
Facebook’s figure is 62 per cent
$200m from venture capitalist Tweetdeck is based in
funds, a deal that valued the London’s so-called Silicon
company at $3.7bn. The site only roundabout and is one of the Latest valuation Calculated
introduced advertising last year,
but its revenue for 2010 is esti-
largest Twitter-based applica-
tions not owned by Twitter
$3.7bn when Twitter received $200m
in venture funding in December
mated to be around $45m – a itself.

Pricing the future of 140 characters


THE $10bn price tag for Twitter phase of its growth. Facebook’s cent of internet users, compared to
puts its valuation at 222 times rev- advertising revenue hit $1.86bn Facebook’s 62 per cent.
enue, using estimated figures for last year, and the site accounted for If it were to pursue a listing,
2010. Even if the site comes good five per cent of all online advertis- Google’s example would be one to
on projections that ad income will ing in 2010. With other income avoid – during its Dutch Auction
hit $250m in 2012, the multiple is streams bringing the total to initial public offering, a series of fil-
still 40 times revenue – a fancy around $2bn, a $50bn valuation is ing errors and press reports saw
amount for a business that is yet to a little less ridiculous (albeit still the price of its stock drop from
turn a profit. extreme) when compared to the around $115 per share to officially
A potential buyer will need more Twitter figures. start at $85 per share.
than that if it’s going to put this Twitter is nearly ten years
much cash on the table. And younger than Google, two years
Twitter can learn from its suitors
how best to approach the next
behind Facebook, and still has a
lot to prove. It is used by just 12 per
BOTTOMLINE
Analysis by Elizabeth Fournier
CITYA.M. 14 FEBRUARY 2011 News 11

ECONOMISTS’ VIEWS: IS INFLATION HERE TO STAY? Interviews by Julian Harris

JAMIE DANNHAUSER | IAN STEWART |


LOMBARD STREET RESEARCH DELOITTE

“ We broadly sympathise with


the view of the Bank – that inflation will
peak this month or in March, but fall “ My assumption is that a good
deal of the excess inflation relates to
transient external influences, and we

” ”
heavily in January next year and be are likely to see inflation running around
below target through next year. about target levels next year.

MICHAEL SAUNDERS | CITIGROUP

Mervyn King faces pressure over rising prices Picture: Micha Theiner/City A.M “ Over four years, prices of imported factory goods are up 24 per cent and imported foods have
soared 43 per cent. The pass-through from cost pressures is not over and, together with less slack
from the recession than usual, will keep UK inflation above target for an extended period.


Inflation risk
turns up heat Spring travel
on Bank rate
of rates hitting one per cent by to Nantes

UK ECONOMY
BY JULIAN HARRIS September, and are expecting an
additional 0.25 per cent rise by the
THE Bank of England could signal an end of the year, she said.
imminent rise in interest rates this “We still expect rates to rise soon
week, with the publication of the lat- and rise further than markets price
est inflation report which forecasts in,” added Michael Saunders of
inflation and growth in the UK. Citigroup.
“We expect the Bank’s report to Saunders also questioned the
show an upward revision to their Bank’s credibility, after a long period
inflation projection and to signal of incorrect inflation forecasts.
that the first rate hike is likely to “The nine inflation reports from
arrive sooner rather than later,” said a August 2008 to August 2010 all pro-
BNP Paribas spokesperson. jected sub-target inflation two to
More pressure will be piled on the three years ahead,” Saunders said,
Bank of England to raise interest rates “and succeeded in persuading mar-
tomorrow, if January’s consumer kets that rates will stay low for an
price inflation yet again surprises on extended period.”
the upside. In December, CPI infla- “However, the November report’s
tion jumped to 3.7 per cent, above forecasts failed to gain similar trac-
forecasts of 3.3 per cent. tion with the markets,” he said.
While some analysts still expect Even if the Bank forecasts inflation
rates to stay at their historically low coming down next year, “investors
level of 0.5 per cent until the end of may again be sceptical, doubting the
the year, the markets anticipate an inflation forecasts and hence also
earlier hike. doubting their message that rates
“Looking at sterling interest rate will rise slower than markets price
futures, markets are pricing in an 88 in,” Saunders said.
per cent chance of a 0.25 per cent “In fairness, the recent forecasting
increase by June,” said Hetal Mehta of record of economists has not been
Daiwa Capital. much better,” added Deloitte’s Ian
Markets are 100 per cent confident Stewart.

West End shop sales soar ahead, Fly from

defying post Christmas slump


also domestic shoppers kitting them-
£
41 99
one
way

RETAIL
selves out for a new year of work,”
LONDON’S West End stores have seen said Jace Tyrell of the New West End
strong growth in sales in January, Company.
despite the rise in VAT and sluggish “London is definitely spending
wage growth, it was revealed today. again this January.”
Retail sales were up 5.8 per cent Retail sales across the country
compared to the same time last year, increased by 4.2 per cent in January,
the New West End Company said. the British Retail Consortium said
An increase in menswear was par- last week.
ticularly notable, it said, reporting a Yet sales at John Lewis, often used Keeping London on the move
25 per cent increase in sales of men’s as a bellwether for the high street,
suits from high-end tailor Brooks appear to have stagnated, after a
Brothers. record-breaking December. Sales at
“January trading was boosted by the store in the week ending 5
Fares are one way including taxes and charges, only available online, subject to availability. 21 day advance purchase required.
those perennial big-spenders – shop- February were up only 1.2 per cent
pers looking for luxury items and year on year. Available for travel on or before 29.10.11. Book by 17.0211.
The Capitalist
12 CITYA.M. 14 FEBRUARY 2011
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

VALENTINES BILL OF THE WEEK

ADDING TO
OUR TRADE
DEFICIT
THERE are no excuses for disappointing
Valentines dates this evening who fail to
produce a plush dozen roses: rose deliver-
ies to the UK this year are at record highs.
Virgin Atlantic’s cargo division has
reported a 40 per cent increase in the vol-
ume of flower deliveries to the UK from A THIRSTY bunch crashed newly
Kenya, our main supplier of roses, com- opened family restaurant Chabrot in
pared to the same period last year. Knightsbridge recently, taking advan-
That equates to 15 tonnes of flowers tage of the reasonable food prices to
shipped over in just the last ten days, with explore the fine wines menu put
Kenyan roses making up a third of the together by sommelier Philippe Messy.
blooms you’ll see sold and bought this another data-point in the scourge of global How much will your Balancing their liquids and solids, the
Valentines. commodity price inflation. dozen roses cost in a four dinner guests kicked off their
Japan and the US have likewise upped year’s time? meal with a couple of plates of fois
their rose consumption. And while Kenyan
roses remain ever-popular, Brits also seem
BEND IT LIKE HOLMES Picture: GETTY gras, salmon, oysters and a charcu-
terie.
Financial education and football are rarely
to be looking for an original way to greet associated with one another, but yesterday In a mood for sharing, they then
their dates: imports of South African Standard Chartered attempted to form a moved on to partake of a whole leg of
chrysanthemums and American carna- beautiful relationship between the two at lamb alongside the obligatory greens
tions have also been on the rise. its London Football Clinic. Ex-Liverpool and not-so-obligatory cheese platters.
But to add a grim dose of guilt to your striker Ian Rush joined Standard The feast was followed by a rich
romantic pleasures, Lake Naivasha, the Chartered’s Richard Holmes for a training round of desserts, including a rice
fresh-water lake in Kenya that supplies session with local and visually impaired pudding and several slices of cake.
much of the irrigation for many of the children, who were then given a lesson in All that food must surely have been
country’s rose plantations, has been so personal finance, incorporating a football enough to absorb some of the effect
depleted by failed rains recently that the theme. from a £600 bottle of Musigny, a
country is considering rationing water use. At this rate it’ll only be a matter of time bottle of Corton and a round of vin-
Which would make your dozen roses before Wayne Rooney is offering stock tips. tage Armagnacs.
CITYA.M. 14 FEBRUARY 2011 News 13

Youth joblessness not so


ANALYSIS l Number of young people (18-24) claiming jobseekers' allowance
1,100,000

1,00,000

severe, says stats critic 900,000

800,000

700,000

Simon Briscoe. per cent and a percentage point below


UK ECONOMY
More young adults are attending where it was at the last peak in 1993 is 600,000
BY JULIAN HARRIS
tertiary education than ever before – a just not so sexy – despite it being a
BRITAIN’S youth unemployment is fact which the Office of National more accurate measure of youth 500,000
bad but exaggerated by the govern- Statistics (ONS) ignores, distorting the unemployment,” Briscoe said.
ment’s statistics office, an ex-Treasury figures, Briscoe claimed. There are currently less than 400,000
statistician has said ahead of the latest Whereas it has been reported that 400,000 people aged 18 to 24 claiming
labour market figures released on 18 per cent of young people are unem- jobseekers’ allowance, compared to
Wednesday. ployed, when including young people over 1m in the mid 1980s, and over 300,000
Unemployed young people account in education (as not unemployed), the 800,000 in the early 1990s -- although Source: Timetric
for “barely one per cent of the popula- figure is less than 13 per cent. tougher conditions on benefits are 200,000
tion,” claimed economic data guru “An unemployment rate under 13 partly behind the fall, he said. 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

NEWS | IN BRIEF
Chinese economy overtakes Japan Business Research (CEBR) said today.
China has become the world’s second
largest economy, overtaking Japan, it
However, prices will start to edge
upwards again in 2012, it said.
TRADE Whatever, Wherever, Whenever
was revealed last night.
Japan’s GDP shrank by 0.3 per cent in the Service sector morale plummets
quarter, the first decline for five quarters Business confidence slipped in January,
but slightly better than expected. membership group BDO revealed today.
BDO’s optimism index fell to 92, from
House prices face decline in 2011 94.8 in December, further below the 95
House prices will fall by 1.7 per cent this mark that signals growth. Service sector
year, the Centre of Economic and confidence fell to 88.4 in the month.

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14 News CITYA.M. 14 FEBRUARY 2011

Apple plots cheaper iPhone to fight Google


Mobile carriers could sell on the since the introduction of its Android be looking to hit back at the wave of come out with a product that could

TELECOMS
product for about half the price of operating system to the market. Android products by tapping the mid- compete at that midmarket level.”
BY RICHARD PARTINGTON
Apple’s main line of iPhones. Android, which features on a num- market with its cheaper mobile. “They’re going to come up against
APPLE is developing a low-cost version The smartphone maker, known for ber of manufacturers’ products, has Analysts say 2011 could be the year more and more competition, Google
of the iPhone as its battle with Google closely guarding the development of seen a meteoric rise to become one of when smartphones moves down into is marching on.
to control the smartphone market its products, will continue to work on the iPhone’s main rivals. the midmarket, as material costs “I can see that there’s an argument
heats up. a new version of the iPhone, which Sony Ericsson last night announced come down. for a cheaper phone. It shows that
Steve Jobs’ company is said to be will be sold alongside its smaller a new Android handset, the Xperia Telecoms analyst at Charles Stanley Apple is going to compete all over the
working on a “nano” version of its cousin. Play, putting further pressure on Tom Gidley-Kitchin said: “Apple has pitch.”
premium product which will be Technology giant Google has Apple. the choice of either cutting the cost A spokesperson for Apple declined
around half the size of the iPhone 4. heaped increasing pressure on Apple The iPhone and iPad maker could of its phones to capture that or to to comment.

Russian iron Nokia chief


firm plans denies split
London IPO loyalties


MINING TELECOMS
BY RICHARD PARTINGTON BY HARRY BANKS
RUSSIA’S biggest iron ore producer is NOKIA CEO Stephen Elop yesterday
planning to sell 20 per cent of its dismissed insinuations that his loyal-
shares on the London Stock ties were still with his former employ-
Exchange, valuing the company at er, Microsoft, because he owned
£12.3bn. shares in the software company and
Metalloinvest, which is half-owned did not hold any Nokia stock.
by oligarch Alisher Usmanov, could “I am not a Trojan horse,” Stephen
be launched into the FTSE 100 by the Elop said ahead of the Mobile World
listing. Congress in Barcelona. The decision
The company has appointed to partner with Microsoft was made
Deutsche Bank, Merrill Lynch and by the entire board of directors, he
Credit Suisse to handle the offering. said.
Usmanov, who owns part of On Friday, Nokia announced it was
Arsenal football club, listed Mail.ru – teaming up with Microsoft in what is
the Russian social networking site – seen as a last-ditch attempt to catch
in London for £570m. up with Google and Apple in the fast-
The move comes after a turbulent growing smartphone market.
period for Russian companies looking Asked if he still held shares in
to list in London. Microsoft, Elop said: “As an executive
Three initial public offerings by [at Microsoft], I have accumulated a
Russian-based firms were pulled last substantive number of shares,”
week as a result of tough market con- adding that he was legally prohibited
ditions. to sell his shares for a certain time
Nord Gold, the mining unit of steel period after his departure but had
giant Severstal, was the biggest firm since begun to divest his holdings.
to scrap plans for an initial public However, once negotiations had
offering (IPO) last week. begun with Microsoft he was once
The miner, led by billionaire Alexay again not allowed to sell due to insid-
Mordashov, had been looking to raise er trading laws.
up to $1bn (£622m) to pay down debt “I will get rid of them as soon as I
and make new acquisitions. am allowed,” Elop said, noting he was
Steel pipe maker Chelpipe pulled legally prohibited from buying Nokia
the plug on a $688m IPO attempt shares for the time being, but would
whilst coking coal producer Koks can- do so as soon as he could to demon-
celled a $500m effort. strate his confidence in the Finnish
Pump manufacturer HMS company.
Hydraulic was forced to cut its price Elop was drafted in from Microsoft
range in order to list in London. in September to halt Nokia’s decline.
It will now raise just $360m, as As president of Microsoft’s Business
opposed to between $396m and Division and a member of its team
$580m as originally planned. responsible for overall strategy, he
Unrest in Egypt had hit emerging was hired for his software know-how.
markets (EM) funds as investors The 47-year-old Canadian became
pulled more than $7bn in the week to the first non-Finn to head Nokia in its
2 February. 145-year history, a sign of how Nokia
The firms had hoped investors in seeks to transform itself to claim back
EM would become shareholders. market share and the innovative edge
it has lost to Apple and other rivals.

London snubbed by Russian Papa John’s Tillman mulls Jaeger sale


The development comes after a million shares for 100 per cent of ing to weekend reports.

RETAIL RETAIL
BY RICHARD PARTINGTON slew of Russian companies pulled the company in an effort to raise Fashion entrepreneur Harold
plans to list in London. €5.6m (£4.7m), valuing the firm at LUXURY fashion brand Jaeger may be Tillman bought Jaeger in 2003 for a
THE RUSSIAN franchise of Papa The company considered London €56m. put up for sale by owner Harold small sum and was joined a year later
John’s, the global pizza chain, has for the listing, as well as Hong Kong, One of the firm’s outlets in St Tillman, after he received several by chief executive Belinda Earl, a for-
snubbed London to list on the although chose Frankfurt due to its Petersburg is amongst the top three approaches for the 126-year-old brand. mer boss of department stores group
Frankfurt Stock Exchange. strong ties to Russia. Papa John’s pizza chains out of Tillman, who also bought luxury Debenhams.
Worldwide Papa’s, which oper- A total of 66 firms from the coun- more than 3,300 worldwide. label Aquascutum in 2009, has When Tillman took over the brand
ates four outlets in St. Petersburg try are now listed in Frankfurt, The company hopes to use the appointed investment bank had annual losses of £12m. The retail-
under the American brand Papa catching up on the 100 companies share issuance to expand, with Rothschild to consider strategic er now has more than 40 stores in the
John’s, will today begin trading in on the London Stock Exchange. plans for more than 200 restau- options for Jaeger, which may include UK and its last results showed earn-
Germany. Worldwide Papa’s has issued 80 rants. an outright sale worth £100m, accord- ings of £7m on sales of £85.5m.
CITYA.M. 14 FEBRUARY 2011 News 15

Waitrose opens overseas


However, unlike Bahrain, which is rules, Waitrose now has two new


RETAIL
operated as part of a licensing agree- operating companies, Waitrose Jersey
BY JENNY FORSYTH ment with Fine Fare Food Market, the Ltd and Waitrose Guernsey Ltd.
WAITROSE is set to open one of five forthcoming Channel Islands branch- Waitrose described the opening as
shops in the Channel Islands this es will be managed and operated sole- a “major logistical feat”, as it involved
week, in its first owner-operated ven- ly by Waitrose. a two-week shop refit and sourcing of
ture outside the UK . The new shop is one of five branch- 500 local products.
The Thursday opening of its 21,000 es (three in Jersey and two in The Channel Islands division will
square foot shop in St Saviour, Jersey, Guernsey) purchased from Sandpiper bring 600 staff into the John Lewis
comes just a week after the retailer CI Ltd, a Channel Islands retail chain. fold, including 400 who worked in
Waitrose chairman Mark Price has been keen to open Channel Island stores Picture: REX opened its first shop in Bahrain. To meet local legal and accounting the shops bought by Waitrose.

Head of CBI More firms


makes first use Human
big changes Rights Act


CITY MOVES LAW
BY RICHARD PARTINGTON BY JENNY FORSYTH
THE new director of the CBI, John THE number of businesses using the
Cridland, has made a raft of changes to Human Rights Act to fight their legal
his senior management team in his disputes is rising, even as politicians
first major act at the top of the business debate replacing it with a British bill
employers’ group. of rights.
Cridland, who took over from Research shows the number of
Richard Lambert last month, has reported court cases where business-
appointed two of his staff to senior roles es used the act as part of their legal
as he looks to make his mark. case jumped 63 per cent from 19 to 31
He has made Neil Bentley his right last year. Those cases now account for
hand man in his former role as deputy nine per cent of all reported human
director general. rights cases.
Bentley was most recently the organ- But 10 years after the Human
isation’s director of business environ- Rights Act was adopted, it is facing
ment and has spearheaded campaigns fresh challenges from politicians who
would rather Britain was not in thrall
Newly appointed CBI to Strasbourg rulings.
director general John And last week’s MPs’ decision to
Cridland has appointed defy the act, by deciding against vot-
ing rights for prisoners, has put its
new staff as he looks usefulness in the spotlight again.
to make his mark. Legal information provider Sweet &
Maxwell said the number of business-
to encourage firms to take up a more es using the Human Rights Act has
active role in addressing climate trebled since 2007-8. Firms last year
change. used it in cases such as challenging a
He will now represent the organisa- regulator’s decision as it could harm
tion in meetings with business leaders profitability, preventing media cover-
and ministers. age on privacy grounds and asking
Katja Hall has also been appointed to the court for more time to prepare a
a newly created role as chief policy case, because their access to justice
director. would be hampered without it.
Most recently she worked with the Sweet & Maxwell said the use of
BBC on employee relations, change human rights arguments by business-
management and reward. es leapt in popularity after high pro-
She will now work to promote CBI file High Court claims by hedge funds
policy goals in Westminster and focus RAB Special Situations and SRM
on ways to help its members drive the Global Master Fund. These funds
economic recovery. argued the nationalisation of
John Cridland said: “At what is a piv- Northern Rock had deprived them of
otal time for business and the economy, their property (their shares value) in
it’s vital the voice of business is heard in breach of the Human Rights Act.
government and across society. These Stephen Grosz, co-author of a Sweet
appointments form a key part of my & Maxwell publication on Human
plans to revitalise and strengthen the Rights, said: “The Human Rights Act
CBI’s offering to its members and help has been used in a much broader
businesses to deliver a strong recovery.” range of cases than most people
would have predicted.”

Broughton secures backing for Tote bid BA severs ties with UBS
out firm. being sold by the government as last month, decided to end its rela-

LEISURE AVIATION
BY RICHARD PARTINGTON The Glasgow-based investor, part of plans to reduce the deficit. tionship with UBS following a review
which has stakes in the insurer It could fetch as much as £225m, BRITISH Airways has severed ties of its brokers.
THE deputy chairman of British Esure and Eat sandwich shops, will with half of the proceeds to be with UBS, the corporate broker the The loss of the prestigious con-
Airways’ newly formed owner, Sir underwrite Broughton’s bid, accord- ploughed back into the racing airline has used for 24 years. tract will be a hit to UBS, after hav-
Martin Broughton, has lined up sup- ing to reports. industry. The carrier has chosen Deutsche ing been British Airways’ broker
port for his bid to buy state-owned Fully funded offers for the book- Other bidders for the business Bank and Barclays Capital, following since its privatisation in 1987.
bookmaker the Tote. maker must be received by the mid- include betting groups Gala Coral its merger with Spanish airline An IAG spokesperson said: “The
The former Liverpool football club dle of next month. and Betfred, as well as the billion- Iberia. new company decided to review our
chairman, who has been a racehorse The Tote, which has a monopoly aire Reuben brothers. The newly formed International brokers and the result of that review,
owner for many years, has received on pool betting in Britain, and also Investment bank Lazard is run- Consolidated Airlines Group (IAG), and the pitch, was that Barclays and
backing from Penta Capital, a buy- owns nearly 550 betting shops, is ning the sale process. which listed in London and Madrid Deutsche Bank won the business.”
16 News CITYA.M. 14 FEBRUARY 2011

Project Merlin has to avoid mistakes of past


what has been dubbed project Merlin. and the conditions of the loan vary source of finance and did not have suf- with relevant business area leaders
There is no doubt this agreement is with the bank’s analysis of the degree ficiently robust business models to will have their pay linked to perform-
good news if it starts to rebuild the of risk taken by making the loan. weather a sudden and unexpected ance against the SME lending targets.”
banks’ relationship with the govern- If a bank forgoes making a profit by change in circumstances. This again creates a perverse incen-
ment and wider society. declining to lend then it either views And yet we are now faced with the tive we witnessed in pre-crisis times.
However, some of the stipulations the inherent risks as too great, or it has situation that banks are being coerced Management were paid to meet quan-
regarding lending to SMEs – £190bn more than adequate balance sheet to lend to businesses they have already titative lending targets with little
must be lent to businesses this year, exposure to that type of business. rejected as too risky or as not having a thought on the quality of the lending.
CITY COMMENT £76bn to smaller businesses – give After the crisis, the banks were sustainable business plan, and to If you were successful you pocketed
cause for concern. rightly criticised for adopting an over- encourage SMEs to take on more debt. the bonuses and hoped you were pro-
STUART FRASER Of course lending to SMEs is impor- ly relaxed attitude to lending and a This conflict was highlighted when moted before the defaults started to
tant; they will a key driver in econom- failure of risk management in their the Chancellor announced that the come in, leaving it to your successor to

L
AST week, George Osborne ic recovery and must be given every quest for ever-increasing profits, result- level of lending under project Merlin is sort out.
announced to the House of opportunity to succeed and grow. ing in huge losses that nearly caused a significantly higher than the level We must be careful not to repeat the
Commons that the four largest Moreover, banks can only make a financial meltdown. banks had originally been considering. mistakes of the past.
UK banks – HSBC, Barclays, RBS profit if they lend money to a range of It also became clear that SMEs were Project Merlin also stipulates that Stuart Fraser is the Policy Chairman at
and Lloyds – have finally signed up to borrowers. The interest rate charged overly reliant on bank lending as a “chief executives of each bank, along the City of London Corporation

BPF chief Liz Peace has warned that landlords could challenge the JJB’s rent plan

THE
AN EDUCATION IN RISK.
AN EDUCATION IN RISK.
DIFFERENCE BETWEEN
JJB Sports to
fight for new
THE DIFFERENCE BETWEEN

BONUS & BANKRUPT


BONUS & BANKRUPT rent proposal
British Property Federation, said the

CONSUMER
BY MARION DAKERS deal could face stern opposition from
property owners. “What has con-
JJB SPORTS was heading for a battle cerned landlords are past cases where
with its landlords and other retailers a retailer had released a store through
Understanding risk. It’s the difference between after confirming its company volun- a CVA and then returned to the same
being prepared, and not. Between making tary agreement (CVA) is to include the locality shortly afterwards to take a
renegotiation of two-fifths of its rent new store on reduced rent,” she said.
better decisions, and not. That’s why GARP’s payments. Meanwhile, one large retailer has
The company has warned its threatened to withhold its own rent
FRM® and ERP ® professional designations, biggest landlords, including British payments if landlords accept JJB’s
education, and training are the overwhelming Land, Henderson and Prudential, that terms, according to the weekend
if its terms for discount rent and ten- reports.
choice of individuals and institutions. Our ancy breaks for loss-making shops are The unnamed retailer is said to
150,000 members can be found in corporations not accepted, the entire firm will go have called an emergency meeting
down. with other high street names to fight
and financial services firms, governmental The struggling sports retailer, JJB’s plans.
bodies, and academic institutions around the which used a similar tactic when Rival sportwear firm JD Sports is
faced with bankruptcy in 2009, is also thought to have put its takeover
world. Start making better decisions now. looking to close 45 stores this year and advances on hold while JJB garners
Visit GARP.org/bonus to learn more. a possible 50 further outlets by the
end of 2012.
support for its CVA rescue package.
In December, investors including
KPMG, which is advising JJB, has Bill Gates backed a £31.5m fundrais-
begun talks with landlords and hopes ing to keep JJB Sports alive after dire
to reach a deal within weeks. trading in the run-up to Christmas,
The Wigan-based firm needs to win but the firm has warned that further
support for the CVA from three-quar- cash injections will be needed.
ters of its unsecured creditors and half The firm’s lender, Bank of Scotland,
of all shareholders to avoid adminis- has already agreed to give the it lee-
tration. way in regards to its existing debt
Liz Peace, chief executive of the facilities.
CITYA.M. 14 FEBRUARY 2011 News 17

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

recent job has been at Finsbury PR for All three have been promoted from viously been chief executive of Marsh
Barclays Wealth the last three years, where he advised a within the firm. Australia and region head of Marsh
Solomon Soquar (pictured) has joined the broad section of FTSE 250 clients. He Pacific. In his new role, he will be in
asset manager as head of the strategic solu- has also previously worked at Saffery Champness charge of guiding Marsh’s retail broker-
tions group, which is a core part of its ultra- Pricewaterhouse. The accountancy firm has named age operations and will report to Joe
high net worth operation. He will report to Frederic Larquetoux as senior manager McSweeny.
Stefanie Drews. Soquar joins the firm from Citi AXA in the firm's business advisory group.
Private Bank, where he was in capital markets. The Chinese division of the French He was previously with Ernst & Young. Citigroup
Previously, he has worked at Merrill Lynch as insurer AXA Group , has appointed The financial services company has
head of distribution for the bank’s private Angela Chui as chief financial officer Marsh appointed Antonio Miras as global head
clients, Goldman Sachs in corporate finance and Isabel Lam as chief strategic man- David Bidmead has been promoted to of electronic execution for listed deriva-
and Bankers Trust in capital markets. agement officer of AXA Hong Kong. be the chief executive of Marsh US, a tives, a newly created position in the
The company has also appointed Alger newly created role at the firm. company.
Panmure Gordon as a corporate broking associate at the Fung as member of the executive com- He moves to the job from his role as Miras has previously worked at JP
Charlie Leigh-Pemberton will be joining firm, effective 14 March. His most mittee. leader of its US west zone, and has pre- Morgan for more than a decade.

To appear in CITYMOVES please email your career


updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com

Infrastructure NEWS | IN BRIEF

Swedish PM in WikiLeaks row


A lawyer for WikiLeaks founder Julian
ated a "toxic atmosphere" in Sweden
with what he said was an inflammatory
statement about Assange. The Belmarsh
Booze, for about £90m, according to a
weekend report. The firm has appointed
advisers at accountancy group KPMG to

India taps UK
Assange has accused Sweden's prime Magistrates’ Court hearing has been carry out a strategic review, with options
minister of damaging his client's chances adjourned until February 24, when an including a sale or refinancing of Bargain
of a fair trial for alleged sex crimes by extradition ruling is expected. Booze. ECI took control of the business in
portraying him as “public enemy number a £64m secondary buyout from BWG in
one.” Assange’s lawyer Geoffrey Bargain Booze sale considered 2006. Bargain Booze now has around
Robertson, opposing a Swedish bid to Private equity firm ECI Partners is 640 outlets, many of them run by fran-

shareholders
extradite the Australian from Britain, said mulling a sale of Britain'’ biggest off- chisees in the north of England. The com-
Prime Minister Fredrik Reinfeldt had cre- licence drinks retailer chain, Bargain panies were not available for comment.

more than double the total number


INFRASTRUCTRE
of shares to 81.9m.
BY MARION DAKERS Cottrell, the firm’s chairman, said:
INFRASTRUCTURE India has become “The Indian infrastructure sector
the latest Indian firm to tap the UK continues to be a compelling story
markets for investment cash, raising and we believe that there are signifi-
£33m in a share placing. cant opportunities in the sector
Shares worth £25.5m at 60.5p each which the Placing will enable the
have been placed with existing and Group to pursue.
new investors and will start trading “The Placing will also further
on AIM on Thursday, the firm said at enhance the ability of the Group to
the weekend. bring both its existing investments
Specialist energy investor to completion and full revenue gen-
Guggenheim Global Infrastructure eration.”
has taken shares worth £2.5m in the Infrastructure India listed on the
placing. Main Market of the London Stock
Guggenheim will also take 111m Exchange in June 2008 and trans-
Infrastructure India shares in ferred to trading on AIM in
exchange for handing over its major- November 2010.
ity stakes in an Indian hydropower Infrastructure India follows in the
developer and logistics firm said to footsteps of Indian big-hitters includ-
be worth $191.5m (£119.7m) in total. ing Jubilant Energy, which raised
Guggenheim executives Tom $85m with an AIM float in
Tribone, Sonny Lulla and Robert November, and SKIL Ports &
Venurus are set to joint the Logistics, which raised $120m in
Infrastucture board if shareholders October.
approve the deal at an EGM on 2 The main market has also seen a
March. flurry of Indian cash-raising in the
Infrastructure’s directors Rupert last year, with Essar Energy joining
Cottrell and Timothy Walker have the FTSE 100 last May and miner
taken 100,000 and 36,000 shares Vedanta plotting a £4bn spin-off for
respectively. The share placing will its copper unit later this year.

ANDREW DAWBER Generale, Collins Stewart and Numis


Securities. He was most recently glob-
AKUR PARTNERS al head of equity capital markets at
Kaupthing.

The Cass MBA is proof


Frost is responsible for Akur’s new
energy sector as well as running asset
management services. He gained a
PhD in climate change in 1999 and

you’re going places.


during his banking career has focused
Infrastructure India has kept its core on companies involved in emissions
team of advisers close since it floated. trading, clean technology and agricul-
Akur Partners chief executive Andrew ture. He previously worked for Numis
Dawber and managing director Tom and Kaupthing.
Frost have advised the company since Akur managing director and quali-
its IPO in 2008, when they worked for fied solicitor Anthony Richardson is
the UK branch of now-defunct also advising Infrastructure India. Visit www.cassmba.com to register for our
Icelandic bank Kaupthing.
Akur was formed from the ashes of
Richardson has 11 years of investment
banking and corporate finance experi-
next information session on 17 February.
Kaupthing in 2009, and counts Shaw ence at KPMG, Taylor Wessing and
Group, New Britain Palm Oil and Numis Securities.
Whitbread takeover target Infrastructure India is also being
Coffeeheaven among its clients. advised by long-term broker Smith &
Dawber began his career at Robert Williamson, and has taken on w
www.cassmba.com
ww.cassmba.com
Fleming and Co, and spent time in the Westhouse Securities as joint broker
capital markets branch of Societe to aid the current share placing.
18 News CITYA.M. 14 FEBRUARY 2011

SuperGroup Julian Dunkerton


says there is no limit
to how far his firm
SuperGroup could

chief taking
expand across the
world.

on the world
Julian Dunkerton tells John Dunne
ANALYSIS l SuperGroup
about his caffeine-fuelled retail crusade 1,800 p

1,700 1,773
11 Feb
1,600
SUPERGROUP founder Julian retail miracle. 1,500
Dunkerton is not a man to stay still But that’s not how the driven but
1,400
for long. He says he will not rest affable Dunkerton sees his meteoric
1,300
until his über-cool brands are sport- rise from market stall holder to dar-
ed by trendy young things across the ling of the City. 1,200
1,100
globe. “I know what will sell and what 18 Nov 6 Dec 29 Dec 20 Jan 10 Feb
Dunkerton’s usual working day the cost should be,” he tells City A.M.
starts at 8.45am when he gets to the “There is a lot of hard work but I love
office in Cheltenham, after having this business and we can expand
taken his daughters to school and across the world – there is no limit.” franchising. Dunkerton’s constant Dunkerton says he can’t imagine are well placed to take the cost rises
swilled down a triple espresso to get That expansion most recently refrain is that the people around doing anything else outside in raw materials so it was a mistake
his creative juices flowing. came in the form of the of buying him are key to fuelling the success. SuperGroup, whether in the retail to use those words – it’s important to
“I cannot operate properly until I out the group’s French franchise “Luc is just like me. He is very driv- sector or in any other business. realise the impact they will have.”
have had my first coffee,” he says. partner CNC for £34m. en and understands what has to be However, he admits that there are Despite his success he is still will-
The retail guru, who floated his SuperGroup’s shares have trebled done. It’s the same with Chris always lessons to be learned, particu- ing to learn and that, allied to his
phenomenally successful since last spring but Dunkerton – Griffiths who runs our e-commerce larly after he issued a trading state- determination, are what make him a
SuperGroup last year, regularly who has an estimated fortune of business – these are exceptional peo- ment including a warning over the powerful operator.
updates the market on his company, £170m – is in no mood to take his ple. price of materials, triggering a dip in The market stall in Herefordshire
whose breathtaking expansion – foot off the accelerator. The CNC “My management style is that I the company’s share price. where he started 26 years ago must
particularly at a time when cash- deal sees Luc Clément, the founder speak to them on a daily basis but I “I learned an important lesson in seem a long way off, but the fire in
strapped consumers are reining in of CNC Collections, join the UK fash- know they are going in the right that these things [the statement] the belly is clearly still there – aided
their spending – is something of a ion retailer as head of European direction.” have to be looked at more closely. We by the coffee of course.
CITYA.M. 14 FEBRUARY 2011 Analysis 19

Mergers are
needed to
keep bourses
in business
Stock exchanges put market share and pricing under
intense pressure by dramatically frag-
worldwide are menting where equities are traded.
“The LSE/TMX deal is merging two
companies that have been badly affect-
consolidating to ed in their domestic markets by such TIME LINE | STOCK MARKET MERGERS
competitive pressures,” Haynes said.
keep market share, The LSE had just a 24 per cent share 11 January 2011 exclusive merger talks March and November 2006
of transparent equity trading in BATS and Chi-X Europe announce extension 25 October 2010 LSE rejects two £2.4bn and £2.7bn takeover
writes Alison Lock Europe in January, while the NYSE
Euronext had 17 per cent and the
of merger talks Singapore Exchange in £5.2bn takeover of bids from Nasdaq
10 January 2011 Australian Stock Exchange December 2004
Deutsche Boerse 11 per cent, as trad- Deutsche Boerse and NYSE Euronext in 18 February 2010 LSE rejects £1.3bn bid from Deutsche Boerse
TWO blockbuster stock exchange tie- ing has split across many platforms. exclusive merger talks LSE takes over Turquoise platform January 2002
ups were announced last week, spark- The rise of high frequency traders, December 2008 Euronext buys the London International
9 January 2011
ing a rush of speculation that others which use computer algorithms to Deutsche Boerse ends merger talks with
London Stock Exchange in £4.3bn merger Financial Futures and Options Exchange
may follow. But what are the forces buy and sell in seconds for price
with Toronto Metals Exchange NYSE Euronext over valuations differences September 2000
behind this drive to consolidate, and gains, has exacerbated national
is it sustainable? exchanges’ loss of market share. 22 December 2010 April 2007 The Paris, Brussels and Amsterdam stock
On Wednesday, the London Stock “HFTs don’t care about the stock BATS Europe and Chi-X Europe enter NYSE buys Euronext for €8bn (£6.8bn) cash exchanges merge to create Euronext
Exchange agreed a merger with itself, they just want to buy and sell
Canada’s Toronto Metals Exchange, to so they are hugely supportive of frag-
establish the world’s biggest trading mentation, as they have more venues
exchange by listings, with about to use,” said Steve Grob, director of
6,700 firms. group strategy at Fidessa, which pro-
On Thursday, Germany’s Deutsche vides trading software to exchanges.
Boerse and multi-country platform “The big players have already tried
NYSE Euronext revealed they were in buying the small niche players and
exclusive talks to merge to create the have now decided to play more to
world’s largest exchange by revenues their competitive strengths by simply
and profits. getting bigger,” Grob said.
And the consolidation drive isn’t UBS analysts said common threads
limited to national stock exchanges. to all the merger proposals were
On Friday, two alternative European growing scale and reach; technology
trading platforms – Chi-X, with 18 per integration; product development
cent of the cash equities market, and and diversity; and positioning for
BATS Europe, with seven per cent more structural market change.
market share – said they had extend- The LSE’s £4.3bn merger with TMX
ed merger talks started in December. is expected to generate cost savings of
“This is like a game of chess and £35m in the first year and £100m over
five years – eight per cent of its com-
bined cost base. A NYSE Euronext and
DB merger would produce €300m
The proposed mergers (£255m) savings or 12 per cent of their
may not run smoothly combined cost base.
But the proposed mergers may not
run smoothly. Some Canadian politi-
these are the first moves being cians have opposed the LSE/TMX
played. There are many more moves match on concerns that the stock
to be made and the outcome is far exchange is a strategic national asset.
from clear,” said Alasdair Haynes, “A Canadian loss of control over its
chief executive of Chi-X Europe. own capital markets alone makes this
“We have always said we expect to deal dead on arrival,” said one
see consolidation lead to the emer- Canadian columnist, David Olive.
gence of about four to five big pan- Others have suggested the giant
European or indeed global groups.” mergers could breach competition
Analysts are now speculating that laws, either through size or their
US and Asian exchanges may be next dominant position in key markets
on the consolidation trail, with such as derivatives trading.
moves anticipated from the US UBS analyst Arnaud Giblat said the
Nasdaq and China’s Hong Kong proposed DB/NYSE Euronext deal
Exchanges and Clearing. “makes strategic sense” due to their
Shares of stock exchanges globally capabilities across several asset classes.
have soared and emerging market Grob describes the mega-mergers as
bourses, from Bombay to Rio, are creating “multi-asset supermarkets”.
looking increasingly like targets. “By trading assets and derivatives,
The consolidation comes in the these exchanges will be like a huge
wake of US and EU competition regu- Tesco, able to offer discounts to cus-
lation brought in over the past three tomers to bring people in,” he said.
years to put an end to national stock And the trend will continue. Haynes
exchanges’ monopolistic positions. believes smaller exchanges may
In Europe, the EU Markets in become targets. “We believe these two
Financial Instruments Directive announced tie-ups are very much just
(MiFID) allowed multilateral alterna- a first move, and it is highly unlikely
tive venues to set up cheaply and eas- to stop there,” Haynes said. “In both
ily, while the US National Market cases, we think they might be posi-
System regulation forced exchanges tioning themselves to buy up further
to pass equity trades through the exchanges – the Swiss or Spanish
cheapest provider. bourses, for instance, are both still
The boom in trading venues has independent.”
20 News CITYA.M. 14 FEBRUARY 2011

BHP and Anglo set


BEST OF THE BROKERS
ANALYSIS l Homeserve HOMESERVE
470
p 462.00 Numis Securities has raised its recommenda-
10 Feb tion on the household services firm from
450

430

15Nov 3 Dec 23 Dec 17 Jan 4 Feb


“hold” to “buy” with a target price of 545p.
The broker predicts strong international
growth alongside modest gains in the UK to
contribute to profits doubling over five years.
Numis believes that the firm requires very lit-
tle capital to grow the business .
for record results
MINING 2010. The company is on track to more than $15bn during 2011,


ANALYSIS l Flybe FLYBE BY MARION DAKERS easily surpass its previous record which could eat into the cash set
annual profit of $19.6bn when it aside for shareholders.
345 p Investec rates the airline a “buy” with an
BHP BILLITON is expected to best reports its full-year results in June. Anglo American, which reports
314 unchanged 438p target price. Despite the its mining rivals with around Reports yesterday suggested that its full year results on Friday, is
10 Feb impact of severe weather on Flybe’s bottom $15bn (£9.4bn) profit when it BHP could also beef up its share expected to double its net profit to
335
line, the broker is impressed by the firm’s reports half-year results on buyback programme to around $5bn.
underlying growth and yield. It adds that Wednesday. $10bn in an effort to smooth rela- Analysts are expecting a bullish
Expectations are high for the tions with shareholders, who have outlook on the commodities mar-
325 Flybe has one of the best fuel hedging posi- Anglo-Australian miner after watched the collapse of three kets from chief executive Cynthia
tions in the industry, and can grow through bumper results from Rio Tinto and blockbuster deals in the last couple Carroll, following on from a 34 per
2010 29 Dec 10 Jan 24 Jan 7 Feb tie-ins with other airlines. Xstrata last week on the back of of years and are clamouring for bet- cent rise in profit last week from
soaring commodity prices. ter returns. diamond firm De Beers, which is
ANALYSIS l Shire pharmaceuticals SHIRE PHARMACEUTICALS Analysts at UBS have forecast BHP’s takeover of Rio Tinto fell 45 per cent owned by Anglo.
underlying earnings of $10.7bn, through in 2008, and last year the ANALYSIS l BHP Billiton
1,700
p
RBS maintains the drugs firm a “sell” but has with some cost inflation offset by Canadian government blocked
raised its target price by £1 to £13.75. The bro- 2,650 p
1,695.00 booming iron ore prices. BHP’s $40bn takeover of Potash 2,525.00
10 Feb ker believes that despite Shire’s solid fourth- The analysts are also looking for Corp. An iron ore joint venture 10 Feb
1,600 2,550
quarter results last week, the market an update on the impact of the with Rio Tinto was also shelved last
continues to underestimate the magnitude of storms in Queensland, Australia, year. 2,450
which brought the area to a stand- BHP will be under pressure from
1,500 risk from generic products. RBS is also con- still before Christmas. investors, who have seen Rio Tinto 2,350
cerned about Shire’s research division deliver- Other industry-watchers are raise its buyback to $5bn and dou-
15Nov 3 Dec 23 Dec 17 Jan 4 Feb ing fewer new drugs than expected. expecting even higher profits, as ble its dividend pay-outs last week. 2,250
the price of iron ore, copper and However, analysts are also
To appear in Best of the Brokers email your research to notes@cityam.com zinc have all made massive gains in expecting capital expenditure of 15 Nov 3 Dec 23 Dec 17 Jan 4 Feb

FTSE will open higher but


relief over Egypt may wane
MARTIN ON being led by the oil markets, with
WTI and Brent crude oil futures hav-
ing closely followed the timeline of
inflation report on Wednesday.
Friday’s above-consensus produc-
er input price and factory gate infla-
THEMARKETS events since the turmoil began.
Interestingly, despite an initial dip
on the news of Mubarak’s decision,
tion will have added to concerns
that the UK’s inflation problem will
spiral out of control, but we can
front month Brent held up expect to see some light shed by the
above the $100 level and indeed report on which way the MPC is
went on to rally to set the highest leaning.
weekly closing price since Also watch out for Barclays’ full-
September 2008 – indicative per- year results due out tomorrow, with
haps of a more-than-niggling con- bonus levels no doubt making the
cern of traders that the tensions still headlines as pre-tax profits are fore-
have potential to spread elsewhere cast to have halved to around £5bn,
in the Middle East. down from £11.1bn a year ago.
MARTIN SLANEY Nevertheless, from a technical
perspective, Friday’s close above
Martin Slaney is director of GFT’s glob-
al dealing operations.
6,060 for the FTSE 100 was a signifi-

A
positive start is expected for cant level, and an open to the upside
stock markets this morning, this morning will have the market
continuing the relief rally on track to tackle the 6,090 target.
that began on Friday when The market isn’t short of other
President Mubarak’s decision to events that could breathe life into
stand down was announced. them this week, notably the release
GFT is quoting the FTSE 100 index of the Bank of England’s quarterly
to open up 15 points from Friday’s
close, at a level of 6,077.
Elsewhere in Europe the German ANALYSIS l FTSE 6,062.90
Dax is called up 23 points at 7,394, 6,100 11 Feb
and the French CAC is quoted up 10
points to open at 4,111. 5,900
The news from Egypt has cleared
some uncertainty for the markets,
5,700
but the situation is still far from
being resolved, with the path for a
transition to democracy hardly a 5,500
straightforward one, and after the
initial relief we may see direction 15 Nov 3 Dec 23 Dec 17 Jan 4 Feb

WALL ST WEEK AHEAD

T
he new national pastimes are drop in prices, even in the face of equities from bond funds have
calling the top of the stock what seem like considerable risks – been enough to push indexes to
market, commenting on an overbought market and a still new highs on an almost daily basis
Middle Eastern affairs – and potentially explosive situation in Bond funds have seen three
buying dips. the Middle East. months of outflows. In that time
Stocks have shown remarkable Confidence in the economy, $23bn moved out of bond funds
resilience as investors snap up any strong earnings, and inflows into and $16bn moved to equity funds,
Business Features | Entrepreneurs
21

UNIVERSITY IS
From banker to barman: A WASTE OF
the man behind Boujis TIME FOR MOST
SIMON DOLAN
ENTREPRENEUR, SJD ACCOUNTANCY
Matt Hermer tells
Donata Huggins how
I
BELIEVE that for the vast majority, uni-
versity is completely pointless. I think
that three years of “further education”
accidently buying a fails to educate the masses about real
life and the ways of the world. It’s counter-
cocktail bar made productive and robs people of learning how
the real world works, rendering them brain-
him a millionaire dead system surfers.
The media is ablaze with discussion about
the alarming number of jobless graduates

C
HUCKLING at Prince Harry falling and the true value of university. Tuition fees
out of a nightclub just wouldn’t be are set to rise at an exorbitant rate and stu-
the same if the club wasn’t a club dents are leaving with huge financial debts
like Boujis. Its reputation for exclu- to repay. Yet we are hearing unprecedented
sivity and A-list guests make it the ideal accounts of graduate unemployment: one in
setting for high-class drama. five graduates, having been told a degree
Matt Hermer, the owner and entrepre- would make them irresistible to employers,
neur behind the bar, however, is not as are currently unable to find work.
starry eyed about the place. Boujis is just a
small segment of Hermer’s Ignite Group WHERE THE JOBS ARE
of clubs, bars and restaurants. The group The fact is, small and medium-sized
owns the Eclipse bars, Bumpkin restau- businesses account for 99 per cent of all the
rants and the Cocoon club among other companies in the UK. This is where the jobs
things. His latest venture, the Wyld club are, and most employers hire according to
inside the brand new W Hotel on Leicester skills and experience. Nine out of ten have
Square, opens tonight. explicitly stated this. I implore school leavers
Most would imagine this sort of night- to reconsider the hand-holding education sys-
club entrepreneur to be an extrovert – a tem, to take on the challenge and look beyond
Peter Stringfellow character – but instead job dependency. There is a gaping budget
he has a more laidback, everyday charm. deficit in the UK that could be remedied by
Probably because once upon a time he was addressing the country’s shortfall of entrepre-
a Square Mile regular, working for neurship.
Hambros, Kleinwort Benson and ABN I was thrown out of school at 16 with vir-
AMRO in the City, and came to the bar tually no qualifications, limited prospects and
business quite by accident. fewer ideas. Selling cheese and eggs on a
“I was drinking in what was my local – a market stall for a period of time taught me
cocktail bar called Barfly on Walton Street Watch out for the Bouji-man the gift-of-the-gab, commitment to hard
– with my friend, Paul Deeming, and we graft and strong arithmetic. I built on my
found out that the bar was for sale, so we the business, but it also made me realise “We opened a number of Eclipse bars, skill with numbers and started a simple busi-
agreed to buy it. To be honest, I don’t why you hire professionals for these jobs.” then closed a few, and now with a little ness handling accounts and tax returns for
really remember the conversation, but the The bar was re-branded the Eclipse bar more knowledge we’re looking to open a small, local businesses. After one initial
next morning I got a phone call from the and became profitable very quickly. few more.” investment of £10 for an advertisement for
owner to discuss the sale, so I went along Deeming became a founder and director But on his most famous customers, he’s my services and 17 years work – at the age
and it became a serious thing.” and they begun expanding rapidly. giving nothing away. When pressed on of 41 – I now own a business empire span-
“I was on gardening leave from my pre- Hermer says their backgrounds certainly the Princes and their antics, Hermer ning financial services, aviation, publishing
vious job, and since I was looking for made this easier: “We found it really help- brushes off the question: “I imagine they and motor racing making over £6m a year in
something else anyway, I thought I’d give ful to already know a bit about how banks like Boujis for the reasons that everyone net profit.
running the bar a go. I had another job and financing worked.” likes Boujis – a home from home with
lined up, but my boss offered me a year’s Their business know-how can be seen great cocktails and fantastic music.” He LIVING PROOF
grace, so if I screwed up I could come from their willingness to shut down bars must know that the mystery makes the I’m living proof that with a sizeable amount of
crawling back – that was really kind of that were not making enough money: club more appealing. tenacity, relentless commitment, and a big
him.” idea, we all have the power to create the
“I took the leap because I was just so CV | MATT HERMER tomorrow we want and run a successful busi-
bored of my job. I hated the fact I sat on ness. If you want to live in one of Britain’s
the same Tube everyday, saw the same Company turnover: Over £15m Reading: The Slap by Christos Tsiolkas richest areas, own a fleet of planes and get a
people and ate breakfast at my desk every- Number of staff: Over 250 Idol: Henry Kissinger place on The Sunday Times Rich List, get back
day.” to where the real action is and start running a
“We must have got the worst deal possi- Job title: CEO and co-founder Talents: Delegation business.
ble from the previous owners, we just did- Age: 39 Favourite business book: What they don’t To pass on this vision, I’ve published an
n’t know what was good value. But it Born: Cardiff, Wales teach you at Harvard Business School autobiographical guide called How To Make
pushed me into the industry, and for that Lives: Chelsea, London Motto: “Work like you don't need money, love Millions Without A Degree in the hope that I
I’m grateful.” Studied: History and Politics, Reading like you've never been hurt, and dance like no can impart some of the confidence, tech-
For a year, Matt worked across the University one's watching.” niques and ideas necessary to turn any idea
whole business: as a barman, a doorman, Drinking: Vodka gimlet First ambition: “To be happy. Done!” into a great business. By learning these tech-
a waiter, the accountant and the manager. niques and by practicing and improving over
“It helped me understand every area of time, you can be 100 per cent, 200 per cent
or even 300 per cent better than you are
now.
ENTREPRENEURS NEWS | IN BRIEF One of the most important of these skills is
resilience and self-belief. With conviction in
your idea, intense engagement, passionate
drive and by giving yourself time, you can
BRANDS OF TOMORROW COMPETITION BUSINESSES LOOKING TO GROW FEMALE ENTREPRENEURS TO DOUBLE start your own business and get rich – with-
Walpole, the British trade body for the luxu- One in four business entrepreneurs inter- Female entrepreneurs are to double over the out the regressive 3-year stint at university.
ry industry, has launched a competition to viewed by Investec Specialist Private Bank next thirty years, says the Avon Inspiring
find Britain’s brand of tomorrow. The prize is will be turning to private equity and venture Young Women report. The research conduct- How to Make Millions without a Degree is
mentoring from the people behind Britain’s capitalists to raise capital in 2011. Many ed by the London School of Economics inter- published by Matador
top luxury brands, including Liberty and entrepreneurs are clearly looking to grow viewed women aged between 16-24 years
Smythson. To be eligible, companies need an their businesses this year, with 44 per cent old to see how the next generation’s women
annual turnover between £100,000 and expecting to launch new ventures and a fur- felt about entrepreneurship. Almost three- Agree with Simon Dolan? We welcome
£2m per year. Visit www.thewalpole.co.uk ther 31 per cent believing that it is “quite quarters (72 per cent) said starting their debate. Do you have a strong view on small
for further information and an application likely” that they will do this. Investec are own business and being their own boss business and entrepreneurship in the UK?
form. Applications closes next Friday on 18 looking to lend £1bn to these entrepreneurs appealed to them and two-thirds (60 per Email donata.huggins@cityam.com
February 2011. this year. cent) expressed interest in doing so.
22 Business Feature | Walking with the Wounded CITYA.M. 14 FEBRUARY 2011

After Afghanistan, a battle with ice


and solitude on the way to the Pole
Nicky Woolf meets
four injured soldiers
who are taking on
one of the globe’s
toughest challenges

P
RINCE Harry is not there when I
meet the Walking with the
Wounded trek team. They have just
finished an eight-day training
excursion in the glacial wilderness above
the Norwegian ski resort of Beitostolen;
their longest yet, an expedition that saw
them trapped in their tents by 50-mile-an-
hour winds for 38 hours on end. But the
charity’s royal patron is hoping to join the
team for a part of their epic Polar journey.
If His Royal Highness is expecting an
easy time, he is mistaken. The four wound-
ed soldiers at the centre of this trip have
been training hard, are spirited and have
everything to prove. They plan to make the
full 250-mile trek across the wind-blasted
Arctic wasteland, facing down the threat
of cracks in the constantly-moving ice,
frostbite and polar bears, in 25 days.
Should they succeed, they will be the first
amputees and severely disabled people to
make the trip.
Their guide is the legendary Norwegian
adventurer Inge Solheim, who has been
trekking in the Arctic and other extreme
environments for nearly two decades.
The wounded soldiers will also be joined
by logistics expert Henry Cookson, a
former City boy who worked for Goldman
Sachs before quitting to join his first Polar
expedition at 28; the charity’s founders, Ed
Parker and Simon Dagleish, and of course, a team to cover areas where their injuries The team return time the metre-thick ice will be moving you might have forgotten or suppressed.
army commitments allowing, the Prince might have left them weaker. home after their beneath them – if they are unlucky and it Some people can fall into a depression.”
himself. “I can’t put up a tent, or cook, as effec- eight-day training moves against them, they could trek for a “We will all go through phases on the
I speak to Solheim as the team break tively as some of the others,” says Hewitt. trek dragging their day and gain no distance at all. Beneath trip,” he continues. “The important thing
camp on the shores of a vast frozen lake. “But then, Guy simply cannot pull the gear behind them the ice, in which massive cracks can is that we lift each other when we can.”
He is keen to stress the enormity of the same weight that I can – he’s pulling on a appear, the Arctic Ocean is three or four Solheim himself is relishing the
task the four wounded men face. “This is a prosthetic leg. And while he’s extremely Picture: kilometres deep. The team will have to put prospect of the lonely walk through the
full-on, hardcore trip,” he says. “To prove robust and very capable, he will not pull as Richard Pohle on weight before departure – polar explor- wilderness. “For me it’s a luxury to be able
certain points to the world”. He tells me much as I can… I’ve got two legs that are ers need 15-20 per cent body fat as energy to follow a chain of thought from A to Z
the team have opted to trek unsupported, fully-functioning. So if needs be, I’ll pull reserves; they will burn around 8,000 calo- without any disturbance,” he says.
dragging all of their supplies and equip- more weight than him. It’s this teamwork ries every day. “Nobody is calling you.”
ment themselves on carbon-fibre sledges that’s essential.” As soldiers, the team are used to push- Hewitt is also looking forward to
or “pulks” which will each weigh upwards Disney goes further. “I can still run ing their bodies to extremes. I get the having time and space to think. “Your
of 100 kilos when fully laden with provi- faster than some people, carry more impression that the training has been mind goes everywhere you can imagine.
sions, tents and gear. Helly Hansen, which weight than some people. What I hope cathartic, allowing them to approach You’re thinking about all sorts. Home,
is providing the team with high-tech cold- about this trip is that people look at it and their injuries as physical barriers to be family, friends, past experiences, what
weather suits, estimate the team’s think ‘that’s actually quite hard, that’s overcome instead of existential catastro- you want to do next. Somewhere warm,
clothing will receive six years worth of something that not every able-bodied per- phes. The psychological challenge facing somewhere hot...”
wear in a single month. son could do.’” them is, if anything, tougher than the He grins. “...Beautiful women, and a
“The North Pole is the most challenging The more time I spend with them, the physical one. beach – you’re dreaming then. For me, I’m
place,” Solheim continues. “It’s also the clearer the military-honed resilience and Solheim outlines what the team can going to spend a lot of time on this trip
most rewarding place. You feel such a extraordinary courage of the four men expect to be happening in their heads as thinking about the future.”
sense of achievement when you've – not becomes. Van Gass compares the trek with they trek across the vast and shifting ice- So what is the next step for the explor-
conquered the place, but lived there, the battlefield. “On a tour [of duty], you’re floes. “I’m preparing the guys for the emo- ers? There is talk of a South Pole trip, and
worked through it alone and with your fighting an enemy that are shooting back. tions that will occur, because I’ve seen Disney tells me that he and Hewitt want
team – and it’s an amazing feeling to stand At the Pole, it’s the elements that you need them 100 times before. Homesickness, to become professional adventurers
on top of the world, knowing that you to attack and conquer. The wind, the cold. regret. You’re walking alone and isolated together. But the answer from everyone is
have come there of your own means. All of Controlling your body temperature. inside your little hood for hours every day, the same. “Let’s get to the Pole first. Then
us will change from this experience.” Covering up against the risk of frostbite.” getting time to think about things that we’ll see.”
The four servicemen at the centre of the I ask Young about how he deals with the
expedition were all injured while on tours punishing routine. “You’ve got to break it FACT BOX | HOW YOU CAN HELP
with the British military in Afghanistan. down,” he tells me. “That’s how I did it
Guy Disney and Martin Hewitt are cap- when I was injured. I went from being
tains; the former lost a leg below the knee someone at the peak of fitness, to lying on More soldiers committed suicide after the Falklands tance, and aims to act pre-emptively to deal with
in a rocket-propelled grenade attack, the a bed, people washing me. I found that war than were killed during the conflict. Walking post-traumatic stress disorder; and Help for Heroes,
latter was shot in the shoulder in a fire- very, very difficult. I had to set myself with the Wounded exists to prevent that statistic the most high-profile servicemen’s charity, founded
fight, which left his right arm paralysed. small goals, like, ‘I will clean myself today’. from ever happening again. It raises money for a in 2007 by Bryn Parry.
Stephen Young, a sergeant, suffered a It took weeks at a time. But every time I large number of third sector organisations involved
broken back after a vehicle carrying him achieved one, I’d say ‘right: what’s next’. in the rehabilitation and retraining of wounded WWTW Founders Ed Parker and Simon Dagleish
ran over an IED – improvised explosive “I remember setting myself the goal to
device – throwing him against the roof. walk to the window. It was four metres
British service personnel, including Enham, set up in met at Sandhurst, and founded the charity after
Jaco Van Gass, a private and the baby of the away. I got up one day and walked to the 1918 to care for “the effects of amputations, neuras- Parker’s nephew lost his legs in an IED explosion in
expedition at 24, lost an arm below the windowsill and back, and I was absolutely thenia, shellshock or fever”; BLESMA, the British Afghanistan. It aims to raise two million pounds
elbow and suffered internal and external drained, exhausted. But that is exactly Limbless Ex Service Men’s Association; Skills Force, from the Polar expedition.
blast damage down his left side in another what you need to do.” which sends mentors into schools; The Warrior
RPG attack. The eight men will have a month-long Program, an NGO that provides psychological assis- To donate, go to walkingwiththewounded.org.uk
They tell me that they work together as window to reach their goal. During this
Wealth Management | Spread Betting
23

Don’t trust THE TIPSTER


YELLING IT
FROM THE

everything ROOFTOPS

H
AVING lost 98 per cent of their
value over the last four years,

people say shares in directory listings company


Yell are clearly struggling. The land-
scape has shifted beyond recognition as
online search services proliferate and
there is little reason to expect any funda-
mental change. With earnings due for
release on Tuesday of next week, any
insights as to where the company intends
Baseless rumours can catch out to go next will be keenly awaited by the
investment community. IG Index quotes a
traders, writes Daniel Knowles price of 10.72p-10.88p.
WorldSpreads is now offering a plat-
form to trade the gap between Brent

T
RADERS short on oil suffered a brief George Bush senior Crude and West Texas Intermediate
shock last Thursday. In early trading, unsettled markets in (WTI) crude oil. The spread has grown to
a rumour began circulating, origi- 1992 $14.45-$14.50. With the current uncer-
nating from a relatively minor Arab tainty in Middle East countries showing
news site that the King of Saudi Arabia had Photo: GETTY no sign of calming down this may be an
died. Despite the implausible nature of the area for investors look to.
story – it was reported that King Abdullah Domino’s Pizza releases its latest
died during a heated phone debate with earnings tomorrow with analysts expect-
Barack Obama – many traders were ing another positive update. The upside
spooked enough to bid the oil price up by a has been held in check for two weeks
dollar. now by the 50-day moving average, but
When it later became clear that the King any dips to the 515p level should be used
is still alive, the price dropped back again. as a buying opportunity. A break above
But the episode serves as an illustration of impact too. In 2008, a “citizen journalist” have to ask: “When is a rumour not a 545p could see the price head towards
how sensitive financial markets are to new reported that the CEO of Apple, Steve Jobs, rumour, but actually inside knowledge?” its 580p high. Spread Co offers a spread
information – and to rumour. Had King had suffered a heart attack and died. The The rumours that cause the biggest rip- on Dominos Pizza of 531.1p–532.4p.
Abdullah actually died, the uncertainty of report was widely picked up and Apple’s ples are the most plausible ones – such as It’s also a big week for sterling this
the Saudi succession would undoubtedly share price collapsed from $105 to around takeover bids, or succession crises. week in the wake of last week’s Bank of
have pushed up the oil price substantially – $95 in less than twenty minutes before The death of King Abdullah is plausible, England (BoE) rate meeting. We have the
given that, even the most baseless asser- recovering equally rapidly. for example, because he is known to be ill CPI figures as well as the BoE quarterly
tions can have an impact on price. So what can traders do to avoid getting and because the Saudi Arabian monarchy inflation report, which could well ratchet
But then rumour, gossip and wild specu- caught out? According to Hewson, the is famously secretive. Similarly, Steve Jobs up the pressure for an increase in interest
lation have always been bugbears for problem with rumours is that traders has had several serious health problems rates. Sterling could well endure some
investors. In 1992, George Bush senior was and is very high profile. Other rumours significant volatility. The CMC Markets
dining with the Prime Minister of Japan, ANALYSIS l Apple's share price plunged when Steve Jobs was have much less effect. spread on sterling-dollar is $1.59755-
Kiichi Miyazawa, when he fainted and rumoured to have died in 2008 Ultimately, traders have to make a $1.5978.
vomited into Miyazawa’s lap. The event 106 $ judgement call based on the quality of the Advertising and marketing group WPP
provided endless ammunition for satirists, news source and the plausibility of the is trading near its 52-week high as it
but as CMC Markets analyst Michael 104 news – the important thing is not to forced its way through the critical 800p
Hewson recalls, “dollar-yen collapsed – all instantly panic and make a move based on resistance level. On the technical side, as
the bids disappeared and you couldn’t sell 102 incomplete information. long as 796p remains a support level, the
it fast enough.” But if traders are tempted to try to get stock could see further upside. Talk of
When it became apparent that Bush was 100 an inside edge by propagating their own further expansion abroad by CEO Martin
not actually on the brink of death, the dol- rumours, another story should deter Sorrell – and the recent purchase of a
lar rapidly recovered – but not before a few 98 them. Last year, the Thai stock market stake in Mindshare South Africa – should
traders had got burnt. plunged 8 per cent after a rumour circu- also help. Capital Spreads quotes a price
And while rumours about political lead- 96 lated that the King was dying. Four traders of 818.5p–820.5p. Daniel Knowles
ers cause the most panic, others have their 10:00 AM 11:00 AM were eventually arrested and imprisoned.

THE WEEK AHEAD in association with

COMPANY NEWS ECONOMICS NEWS ECONOMICS NEWS POLITICAL NEWS


l Barclays will release its full l The Bank of Japan announces its l On Wednesday, British unem- l Barack Obama will present his
year results tomorrow. headline interest rate decision ployment statistics will be budget request for the
tomorrow. released (ILO survey 2012 fiscal year to
l Miner BHP Billiton will release It is expected to hold rates steady rate and claimant Congress today.
its half year results on at their current level of 0–0.10 per count rate). The US is running a
Wednesday. cent. 10 per cent budget
l Wednesday deficit, and House
l French bank Societe Generale l The preliminary estimate for will also see the Republicans are
will release its fourth quarter French fourth quarter GDP growth release of the likely to respond
results on Wednesday. will be released tomorrow at Bank of England aggressively.
6:30 am. quarterly inflation
l On Thursday, report. l In Iran, the
bank BNP l As will the equiva- opposition leaders
Paribas will lent German fourth l The Federal Open Mehdi Karroubi and
release its quarter figure at 7:00 Market Committee min- Mir-Hossein Mousavi will
fourth quar- am. utes from the meeting of 25-26 lead a protest today in solidarity
ter results. January will also be released on with Egyptian protesters.
l British inflation Wednesday at 7:00pm.
l BAE statistics (RPI and l Tomorrow, the controversial
Systems will CPI) are also released l On Thursday, the European Parliamentary Voting Systems
release its full tomorrow at 9:30am. Monetary Union (EMU) consumer and Constituencies bill will be
year results on confidence index figure will be debated again in the House of
Thursday. l The US Empire State released. Lords. The purpose of the bill is to
Manufacturing survey data will also introduce a referendum to change
l Miner Anglo-American will be released tomorrow at 1:30pm, l Friday will see the release of UK the voting system and to reduce
release full year results on Friday. as will the US retail sales figures. retail sales statistics. the number of MPs
24 Wealth Management CITYA.M. 14 FEBRUARY 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1831 0.0003 /$ 1.3523 0.0073
6062.90 11797.77 3143.89 12273.26 2809.44 1329.15 /$ 1.6003 0.0085 /£ 0.8451 0.0001
42.89 76.17 21.58 43.97 18.99 7.28 /¥ 133.69 0.3733 /¥ 112.98 0.3450
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 Yule Catto & Co . . . . .236.5 1.0 240.5 106.1 Brewin Dolphin Ho . .165.8 2.1 177.5 114.0 Rexam . . . . . . . . . . . .375.0 6.3 375.3 276.5 Amlin . . . . . . . . . . . . .391.5 -0.5 433.0 366.8 BHP Billiton . . . . . . .2525.0 41.0 2616.0 1684.5 Great Portland Es . . .374.0 0.4 377.0 279.6 Marston's . . . . . . . . . .105.1 -0.3 117.1 85.1
Camellia . . . . . . . . .10032.0 144.010700.0 6900.0 Smiths Group . . . . .1426.0 16.0 1429.0 1006.0 Beazley . . . . . . . . . . . .133.5 -0.6 135.0 105.4 Centamin Egypt Lt . .149.0 9.0 197.1 111.0 Hammerson . . . . . . . .429.8 -0.4 439.9 336.3 Millennium & Copt . .583.0 7.0 595.0 368.5
Tsy 9.000 11 . . . . .103.43 -0.06 111.3 103.4 CONSTRUCTION & MATERIALS Charles Taylor Co . . .163.3 0.0 240.0 153.0 Brit Insurance Ho . .1055.0 3.0 1059.0 728.0 Eurasian Natural . .1015.0 16.5 1266.0 818.0 Land Securities G . . .700.0 2.0 707.0 545.0 Mitchells & Butle . . . .338.4 -2.5 361.0 269.1
Tsy 3.250 11 . . . . .101.98 -0.01 104.1 102.0 GENERAL RETAILERS
Balfour Beatty . . . . . .351.3 3.7 352.0 229.8 City of London Gr . . . .91.0 0.0 94.5 62.0 Catlin Group Ltd. . . .390.0 -3.6 394.7 319.9 Fresnillo . . . . . . . . . .1469.0 29.0 1682.0 720.5 SEGRO . . . . . . . . . . . .321.3 2.8 341.3 250.2 National Express . . .254.9 0.8 259.6 196.3
Tsy 2.500 11 . . . . .309.37 -0.01 311.1 306.4 Keller Group . . . . . . .642.0 -7.5 784.5 515.0 City of London In . . .440.3 0.3 461.5 266.5 Brown (N.) Group . . .274.3 -5.6 311.2 206.5 CPP Group . . . . . . . . .301.5 1.1 329.0 225.0 Gem Diamonds Ltd. .296.1 13.1 300.0 186.3 Shaftesbury . . . . . . . .451.0 2.3 460.1 349.3 PartyGaming . . . . . . .174.5 -2.1 334.5 171.8
Tsy 4.250 11 . . . . .100.22 -0.03 103.7 100.2 Kier Group . . . . . . . .1235.0 8.0 1383.0 886.5 Close Brothers Gr . . .841.0 -3.0 888.5 664.0 Carpetright . . . . . . . . .690.5 -0.5 973.0 636.0 Hiscox Ltd. . . . . . . . . .376.5 1.7 399.0 327.9 Hochschild Mining . .520.0 7.5 658.0 234.0 Punch Taverns . . . . . .70.0 -0.1 101.0 58.0
Tsy 9.000 12 . . . . .111.29 -0.04 118.0 111.1 Collins Stewart . . . . . .90.0 0.5 94.0 67.3 Debenhams . . . . . . . . .64.7 -0.4 79.0 53.0 Jardine Lloyd Tho . . .635.5 4.5 642.5 471.0 Kazakhmys . . . . . . .1558.0 10.0 1671.0 965.0 SOFTWARE & COMPUTER SERV. Rank Group . . . . . . . .128.9 -0.1 138.5 89.0
Tsy 5.250 12 . . . .105.36 -0.01 108.7 105.4 ELECTRICITY Evolution Group . . . . .70.0 2.5 127.0 67.0 Dignity . . . . . . . . . . . .648.5 -3.0 726.5 598.0 Lancashire Holdin . . .585.0 7.5 647.0 442.0 Kenmare Resources . .40.5 0.6 41.1 9.3 Autonomy Corporat 1600.0 -7.0 1975.0 1271.0 Restaurant Group . . .294.7 0.7 310.9 188.3
Tsy 5.000 12 . . . .104.21 -0.02 107.7 104.2 Drax Group . . . . . . . .403.9 5.8 421.0 326.3 F&C Asset Managem .86.5 -2.6 92.9 47.5 Dixons Retail . . . . . . .22.0 -0.2 36.5 20.4 RSA Insurance Gro . .140.0 0.7 140.6 114.8 Lonmin . . . . . . . . . . .1845.0 67.0 2113.0 1355.0 Aveva Group . . . . . .1710.0 10.0 1739.0 1007.0 Sportingbet . . . . . . . . .51.0 -0.3 79.9 50.2
Tsy 4.500 13 . . . .105.99 0.00 109.2 106.0 Scottish & Southe . .1181.0 8.0 1258.0 1010.0 Gartmore Group Lt . .108.7 -0.4 210.0 88.5 Dunelm Group . . . . . .450.0 -5.4 550.0 325.3 Petropavlovsk . . . . .1068.0 21.0 1365.0 860.5 Computacenter . . . . .419.6 2.6 457.5 260.0 Stagecoach Group . .214.0 -0.4 224.0 160.7
Tsy 8.000 13 . . . . .116.40 0.00 121.3 116.4 LIFE INSURANCE
Hargreaves Lansdo .570.0 0.0 599.0 311.5 Halfords Group . . . . .409.7 3.7 550.0 376.1 Randgold Resource 4891.0 -3.0 6655.0 4486.0 Fidessa Group . . . . .1700.0 65.0 1722.0 1269.0 Thomas Cook Group 194.7 1.9 272.0 171.7
Tsy 2.500 13 . . . .279.42 0.02 280.0 263.9 ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . .14.3 0.3 60.3 11.8 Home Retail Group . .232.8 0.2 295.1 188.5 Aviva . . . . . . . . . . . . . .456.9 0.1 464.0 294.2 Rio Tinto . . . . . . . . .4623.5 74.5 4712.0 2812.0 Invensys . . . . . . . . . . .340.9 1.1 364.3 230.2 TUI Travel . . . . . . . . . .243.6 0.2 308.4 190.0
Tsy 5.000 14 . . . .109.25 0.07 114.1 109.2 Domino Printing S . .673.5 3.5 689.0 337.9 Henderson Group . . .166.8 0.6 167.3 115.3 Inchcape . . . . . . . . . .390.8 -0.4 410.9 237.1 Legal & General G . . .122.7 3.9 123.9 69.8 Vedanta Resources 2361.0 40.0 2934.0 1839.0 Logica . . . . . . . . . . . .143.8 1.8 147.9 101.7 Whitbread . . . . . . . .1841.0 4.0 1887.0 1266.0
Tsy 8.000 15 . . . .123.79 0.09 131.6 123.7 Halma . . . . . . . . . . . . .340.0 0.5 366.6 239.5 Highway Capital . . . . . .7.0 0.0 8.5 6.0 JD Sports Fashion . .875.0 24.0 933.5 560.5 Old Mutual . . . . . . . . .131.5 -0.8 145.2 100.7 Xstrata . . . . . . . . . . .1475.5 33.0 1535.0 845.8 Micro Focus Inter . . .408.6 -2.9 546.5 276.0 William Hill . . . . . . . . .185.2 0.5 216.5 155.5
Tsy 7.750 15 . . . .106.25 -0.04 112.2 76.0 Laird . . . . . . . . . . . . . .172.0 -1.1 179.0 98.8 ICAP . . . . . . . . . . . . . .541.0 -6.5 570.5 323.0 Kesa Electricals . . . .132.9 -2.6 174.0 99.2 Phoenix Group Hol . .654.0 7.0 758.0 557.5 Misys . . . . . . . . . . . . .341.5 -1.8 349.3 201.5
Tsy 4.750 15 . . . .108.77 0.11 114.7 108.5 MOBILE TELECOMS AIM 50
Morgan Crucible C . .269.7 5.7 274.3 161.5 IG Group Holdings . .462.2 -1.7 553.0 362.4 Kingfisher . . . . . . . . .251.8 -1.2 271.3 198.5 Prudential . . . . . . . . .724.0 6.5 731.5 487.5 Sage Group . . . . . . . .298.2 4.8 302.0 222.1
Tsy 2.500 16 . . . .312.45 0.07 318.5 292.5 Renishaw . . . . . . . . .1620.0 6.0 1680.0 575.5 Intermediate Capi . . .338.0 -1.2 360.3 240.4 Marks & Spencer G . .368.0 -3.6 427.5 323.4 Resolution Ltd. . . . . .273.0 7.6 328.6 211.3 Inmarsat . . . . . . . . . . .715.5 5.0 821.0 606.5 SDL . . . . . . . . . . . . . . .656.5 25.5 656.5 421.0 Abcam . . . . . . . . . . . .346.0 -1.0 393.0 208.0
Tsy 4.000 16 . . . . .105.11 0.18 111.4 102.8 Spectris . . . . . . . . . .1370.0 -6.0 1418.0 740.5 International Per . . . .330.0 -4.0 386.6 183.3 Mothercare . . . . . . . .515.0 -7.0 660.0 491.2 St James's Place . . . .306.5 1.1 310.9 204.2 Vodafone Group . . . .180.0 -0.7 180.9 129.5 Telecity Group . . . . . .505.0 9.0 532.5 363.0 Albemarle & Bond . .290.0 0.0 334.0 218.0
Tsy 12.000 17 . . .128.16 -0.02 185.9 126.8 International Pub . . . .114.3 0.7 118.3 110.7 Next . . . . . . . . . . . . .2000.0 -63.0 2344.0 1817.0 Standard Life . . . . . . .240.0 2.9 241.2 173.0 Amerisur Resource . .27.0 1.0 28.0 11.5
Tsy 1.250 17 . . . .106.92 0.03 111.1 102.8 EQUITY INVESTMENT INSTRUM. NONEQUITY INVESTM. COMM. SUPPORT SERVICES
Investec . . . . . . . . . . .471.1 -2.3 562.0 424.0 Sports Direct Int . . . .159.8 0.8 174.7 92.3 MEDIA Archipelago Resou . . .62.5 -0.8 64.8 30.0
Tsy 8.750 17 . . . .133.06 0.14 142.2 132.4 Aberforth Smaller . . .680.5 7.0 685.5 495.0 IP Group . . . . . . . . . . . .37.5 0.5 54.0 28.0 WH Smith . . . . . . . . . .475.8 -2.0 523.0 398.2 Genesis Emerging . .503.5 10.9 568.0 412.0 Aggreko . . . . . . . . . .1520.0 15.0 1685.0 901.0 ASOS . . . . . . . . . . . .1825.0 -65.0 1900.0 438.0
Tsy 5.000 18 . . . .109.93 0.17 117.6 107.4 Alliance Trust . . . . . .370.5 3.5 377.9 293.5 Jupiter Fund Mana . .327.5 -2.6 335.5 180.3 4imprint Group . . . . .245.0 4.0 275.0 120.0 Ashtead Group . . . . .186.5 -1.1 189.3 77.0 Aurelian Oil & Ga . . . .81.0 -0.5 87.0 33.5
Tsy 4.500 19 . . . .105.64 0.23 113.8 102.5 HEALTH CARE EQUIPMENT & S. OIL & GAS PRODUCERS
Bankers Inv Trust . . .425.4 2.2 427.7 337.0 LMS Capital . . . . . . . . .53.8 -0.3 56.3 40.0 Aegis Group . . . . . . .146.9 -1.0 150.2 103.6 Atkins (WS) . . . . . . . .697.0 2.0 792.5 556.5 Avanti Communicat .605.0 21.5 735.0 375.0
Tsy 3.750 19 . . . . .99.68 0.25 107.7 95.9 BH Global Ltd. GB .1106.0 12.0 1178.0 1082.0 London Finance & . . .20.5 0.0 21.5 16.5 Smith & Nephew . . . .728.5 1.5 730.0 537.5 Bloomsbury Publis . .111.0 -3.0 129.0 105.3 Afren . . . . . . . . . . . . . .155.1 2.6 161.7 79.2 Babcock Internati . . .571.0 10.0 635.0 492.8 Avocet Mining . . . . . .217.8 2.5 240.0 88.0
Tsy 4.750 20 . . . .106.86 0.25 115.9 103.8 BH Global Ltd. US . . . .10.9 0.1 11.6 10.7 London Stock Exch .933.0 25.5 933.0 544.0 Synergy Health . . . . .897.0 -10.0 948.0 562.5 British Sky Broad . . .752.5 -6.5 768.0 525.0 BG Group . . . . . . . . .1524.0 51.5 1530.5 984.0 Berendsen . . . . . . . . .440.9 4.9 449.9 360.2 Blinkx . . . . . . . . . . . . . .92.5 0.0 102.0 12.3
Tsy 2.500 20 . . . .314.43 0.07 325.7 291.3 BH Macro Ltd. EUR . . .16.6 0.2 17.2 15.8 Man Group . . . . . . . . .309.0 1.6 311.0 201.9 Centaur Media . . . . . . .70.0 0.0 72.0 45.8 BP . . . . . . . . . . . . . . . .475.8 -1.0 655.4 302.9 Bunzl . . . . . . . . . . . . .778.0 -0.5 779.0 628.5 Borders & Souther . . .65.8 -1.3 93.0 45.8
Tsy 8.000 21 . . . .134.16 0.24 147.1 132.8 HHOLD GDS & HOME CONSTR.
BH Macro Ltd. GBP 1709.0 9.0 1800.0 1630.0 Paragon Group Of . .185.8 1.5 191.2 114.4 Chime Communicati .272.5 -4.5 281.8 158.0 Cairn Energy . . . . . . .419.1 11.1 493.2 329.3 Capita Group . . . . . . .684.5 12.0 826.0 635.5 BowLeven . . . . . . . . .329.0 -8.8 398.0 103.0
Tsy 4.000 22 . . . . .99.42 0.35 108.4 95.4 BH Macro Ltd. USD . . .16.6 0.0 17.1 15.8 Provident Financi . . .986.5 10.5 999.5 728.5 Barratt Developme . . .98.6 2.2 137.7 70.1 Creston . . . . . . . . . . . .89.5 1.5 105.0 78.5 EnQuest . . . . . . . . . . .141.5 0.3 150.6 89.3 Carillion . . . . . . . . . . .395.3 10.1 410.9 273.0 Caledon Resources .101.0 0.5 107.0 23.3
Tsy 1.875 22 . . . . .111.72 0.06 117.8 107.3 BlackRock World M .807.0 26.0 815.0 515.0 Rathbone Brothers .1245.0 5.0 1257.0 762.5 Bellway . . . . . . . . . . . .674.5 14.5 809.0 511.0 Daily Mail and Ge . . .568.0 -12.0 594.5 432.4 Essar Energy . . . . . .510.0 1.0 589.5 383.0 De La Rue . . . . . . . . .714.5 2.0 984.0 549.5 Cape . . . . . . . . . . . . . .437.5 -2.3 470.0 190.5
Tsy 2.500 24 . . . .276.46 0.15 286.9 254.0 BlueCrest AllBlue . . .170.0 1.0 174.5 157.2 Real Estate Credi . . . . .1.1 -0.0 2.5 0.9 Exillon Energy . . . . . .340.5 -11.5 418.1 163.0 Electrocomponents .272.3 -0.5 279.5 184.3 CareTech Holding . . .229.5 -1.5 440.0 229.0
Tsy 5.000 25 . . . .107.99 0.43 118.5 103.6 British Assets Tr . . . .138.5 2.9 140.5 105.0 RSM Tenon Group . . .54.0 0.0 66.3 38.0 Heritage Oil . . . . . . . .308.1 -2.1 581.0 296.8 Experian . . . . . . . . . . .803.5 7.0 819.0 572.0 Conygar Investmen .119.0 0.0 124.3 101.3
Tsy 1.250 27 . . . .105.26
Tsy 4.250 27 . . . . .98.43
0.09
0.39
111.2
108.8
100.4
94.8
British Empire Se . . .504.0 -2.0 512.0 404.1
Caledonia Investm .1794.0 28.0 1928.0 1514.0
S & U . . . . . . . . . . . . .632.5 12.5 643.8 482.5
Schroders . . . . . . . .1802.0 -19.0 1922.0 1116.0
MAIN CHANGES UK 350 JKX Oil & Gas . . . . . .290.0 2.0
Premier Oil . . . . . . . .1952.0 -4.0
329.3 223.2
2140.0 1026.0
Filtrona PLC . . . . . . . .302.4 3.7
G4S . . . . . . . . . . . . . . .268.9 0.3
303.0 178.3
283.5 237.7
Cove Energy . . . . . . .100.3 3.3
Daisy Group . . . . . . .102.5 1.5
112.8
108.5
23.5
84.5
Tsy 6.000 28 . . . .120.09 0.38 132.7 116.9 City of London In . . .289.4 2.9 296.0 233.7 Schroders (Non-Vo .1407.0 -20.0 1508.0 931.0 Royal Dutch Shell . .2129.5 -11.0 2267.5 1624.0 Hays . . . . . . . . . . . . . .125.5 0.7 133.6 88.4 Desire Petroleum . . . .33.3 -1.8 168.5 32.3
Tsy 4.125 30 . . . .264.22 0.20 274.4 242.0 Dexion Absolute L . .146.0 0.9 147.9 131.2 Tullett Prebon . . . . . .406.8 4.8 420.5 267.4
Risers % Fallers %
Royal Dutch Shell . .2124.5 -3.0 2251.0 1554.0 Homeserve . . . . . . . .462.0 10.7 487.5 329.0 EMIS Group . . . . . . . .465.0 -9.8 474.8 303.5
Tsy 4.750 30 . . . .103.63 0.48 115.0 100.1 Edinburgh Dragon . .229.7 2.0 262.1 182.1 Walker Crips Grou . . .49.0 0.0 50.5 45.0 Centamin Egypt Ltd .149.0 6.4 Ocado Group . . . . . . .255.0 -10.5 Salamander Energy .301.0 2.1 307.0 204.9 Howden Joinery Gr . .124.3 0.3 124.5 56.8 Encore Oil . . . . . . . . .120.0 -2.5 151.5 15.0
Tsy 4.250 32 . . . . .96.68 0.51 107.8 93.7 Edinburgh Inv Tru . . .428.8 -1.9 467.2 366.0 Gem Diamonds Ltd. .296.1 4.6 Future . . . . . . . . . . . . . .28.3 -4.2 Soco Internationa . . .341.2 -3.5 484.2 292.0 Intertek Group . . . . .1825.0 18.0 2000.0 1177.0 Faroe Petroleum . . . .182.3 -3.3 218.3 105.4
Tsy 4.250 36 . . . . .95.88 0.62 107.4 93.0 Electra Private E . . .1653.0 1.0 1719.0 1177.0 FIXED LINE TELECOMS Michael Page Inte . . .539.5 -3.0 565.5 346.4 Gulfsands Petrole . . .329.0 0.5 401.5 240.0
Tsy 4.750 38 . . . .103.90 0.65 116.5 101.1 JPMorgan Indian In . .410.2 4.1 Real Estate Credit . . . . .1.1 -3.6
F&C Inv Trust . . . . . .316.2 2.9 316.3 251.4 BT Group . . . . . . . . . .185.3 -0.4 190.8 109.9 OIL EQUIPMENT & SERVICES Mitie Group . . . . . . . .212.3 -3.2 241.1 188.7 GW Pharmaceutical .117.8 1.0 141.0 83.0
Tsy 4.500 42 . . . .100.05 0.72 112.8 97.5 SDL . . . . . . . . . . . . . . .656.5 4.0 Exillon Energy . . . . . .340.5 -3.3
Fidelity China Sp . . . .107.3 -0.2 128.7 92.3 Cable & Wireless . . . .46.2 -1.2 63.7 44.4 Fidessa Group . . . . .1700.0 4.0 Next . . . . . . . . . . . . .2000.0 -3.1 Tullow Oil . . . . . . . . .1452.0 53.0 1456.0 991.5 Premier Farnell . . . . .303.0 1.9 306.5 181.2 Hamworthy . . . . . . . .481.8 -8.0 502.0 256.8
Fidelity European . .1146.0 6.0 1158.0 916.0 Cable & Wireless . . . .76.9 2.1 100.0 60.5 Amec . . . . . . . . . . . .1197.0 3.0 1251.0 754.5 Regus . . . . . . . . . . . . .105.2 -0.5 120.0 66.1 Hargreaves Servic . .902.0 8.5 912.5 556.5
AEROSPACE & DEFENCE Fidelity Special . . . . .592.0 4.5 593.0 503.0 COLT Group SA . . . .153.0 0.0 154.2 109.0 Tullow Oil . . . . . . . . .1452.0 3.8 F&C Asset Manageme 86.5 -2.9 Hunting . . . . . . . . . . .779.0 9.0 806.0 439.4 Rentokil Initial . . . . . .100.4 -1.5 138.5 87.7 Healthcare Locums . .112.5 0.0 0.0 0.0
BAE Systems . . . . . .356.5 6.4 388.8 294.7 Herald Inv Trust . . . . .528.0 11.0 528.0 330.5 TalkTalk Telecom . . .149.7 1.2 168.3 108.5 AG Barr . . . . . . . . . .1126.0 3.8 Imagination Techno .349.5 -2.7 John Wood Group . .572.5 18.0 582.5 293.1 RPS Group . . . . . . . . .209.5 0.0 242.0 169.8 Immunodiagnostic . .890.0 -10.0 975.0 575.0
Chemring Group . . .3609.0 67.0 3663.0 2598.0 HSBC Infrastructu . . .116.9 0.3 121.2 112.0 Lonmin . . . . . . . . . . .1845.0 3.8 Bloomsbury Publish .111.0 -2.6 Lamprell . . . . . . . . . . .300.4 9.4 390.0 195.3 Serco Group . . . . . . .551.0 -6.0 651.0 501.5 James Halstead . . . . .429.0 17.0 443.5 280.5
FOOD & DRUG RETAILERS
Cobham . . . . . . . . . . .222.8 6.5 275.9 192.3 Impax Environment .122.0 3.1 130.5 106.5 Evolution Group . . . . .70.0 3.7 Domino's Pizza UK .523.5 -2.6 Petrofac Ltd. . . . . . .1537.0 1.0 1685.0 913.1 Shanks Group . . . . . .116.4 -2.0 126.7 92.0 Kalahari Minerals . . .235.0 -1.0 268.0 142.0
Meggitt . . . . . . . . . . . .367.0 9.3 380.9 257.0 JPMorgan American .902.0 11.5 909.0 673.0 Booker Group . . . . . . .55.6 0.4 60.6 38.6 Berkeley Group Hol .980.0 3.5 Supergroup . . . . . . .1773.0 -2.6 SIG . . . . . . . . . . . . . . .137.0 -2.0 153.2 90.7 London Mining . . . . .418.8 2.5 420.0 194.0
QinetiQ Group . . . . . .132.5 0.2 142.0 96.7 JPMorgan Asian In . .222.1 1.9 250.8 175.0 Greggs . . . . . . . . . . . .494.2 7.4 501.5 404.6 PERSONAL GOODS SThree . . . . . . . . . . . .410.4 2.4 413.9 231.1 Lonrho . . . . . . . . . . . . .18.0 0.3 19.0 9.4
Rolls-Royce Group . .657.5 7.5 665.0 506.5 JPMorgan Emerging .564.0 8.5 639.0 467.0 Morrison (Wm) Sup .276.7 -1.3 306.3 257.6 Price Chg High Low Price Chg High Low Burberry Group . . . .1176.0 -11.0 1200.0 602.0 Travis Perkins . . . . .1044.0 -5.0 1127.0 664.5 M. P. Evans Group . .456.5 13.5 500.5 317.5
Senior . . . . . . . . . . . . .158.2 1.7 159.0 78.5 JPMorgan European .875.0 10.5 885.0 606.0 Ocado Group . . . . . . .255.0 -30.0 285.0 123.5 PZ Cussons . . . . . . . .353.0 0.5 409.0 260.1 Wolseley . . . . . . . . .2260.0 -1.0 2286.0 1223.0 Majestic Wine . . . . . .413.5 1.5 430.0 235.5
Ultra Electronics . . .1828.0 22.0 1895.0 1283.0 JPMorgan Indian I . . .410.2 16.1 502.0 362.0 Sainsbury (J) . . . . . . .388.5 0.8 395.0 312.9 Berkeley Group Ho . .980.0 33.5 981.0 742.0 Euromoney Institu . .735.5 3.0 737.5 462.5 Supergroup . . . . . . .1773.0 -47.0 1828.0 535.0 May Gurney Integr . .258.0 2.5 264.0 177.0
JPMorgan Russian .691.5 16.0 755.0 490.0 Tesco . . . . . . . . . . . . .395.1 0.3 454.4 377.5 Bovis Homes Group .459.0 11.7 460.0 326.6 Future . . . . . . . . . . . . . .28.3 -1.3 29.5 15.8 TECHNOLOGY HARDW. & EQUIP. Monitise . . . . . . . . . . . .25.8 1.5 26.0 14.3
ALTERNATIVE ENERGY Law Debenture Cor . .360.8 3.4 362.9 267.8 PHARMACEUTICALS & BIOTECH ARM Holdings . . . . . .611.0 16.0 611.0 194.9 Mulberry Group . . . .1300.0 0.0 1388.0 162.8
Mcbride . . . . . . . . . . .138.6 2.7 247.4 114.0 Haynes Publishing . .231.5 0.0 262.5 202.5
Hansen Transmissi . . .52.4 1.5 108.0 40.0 Mercantile Inv Tr . . .1124.0 9.0 1133.0 828.0 FOOD PRODUCERS Huntsworth . . . . . . . . .80.0 -1.0 87.5 60.8 AstraZeneca . . . . . .3020.5 -6.0 3385.0 2772.0 CSR . . . . . . . . . . . . . .442.1 0.5 505.0 280.9 Nanoco Group . . . . . . .87.5 -0.3 115.8 76.5
Persimmon . . . . . . . .444.8 10.2 507.5 336.5
Merchants Trust . . . .411.0 4.8 425.0 318.0 Associated Britis . .1045.0 1.0 1182.0 899.5 Reckitt Benckiser . .3290.0 19.0 3655.0 3037.0 Informa . . . . . . . . . . . .457.9 1.4 459.4 319.8 BTG . . . . . . . . . . . . . .219.0 0.4 263.0 154.2 Imagination Techn . .349.5 -9.5 441.7 215.1 Nautical Petroleu . . .450.0 -3.3 547.0 45.0
AUTOMOBILES & PARTS Monks Inv Trust . . . .352.8 4.7 363.0 273.5 Cranswick . . . . . . . . .836.0 10.5 907.5 737.5 Genus . . . . . . . . . . . . .880.0 2.0 893.5 677.5 Pace . . . . . . . . . . . . . .217.9 4.5 218.1 148.6 Nichols . . . . . . . . . . . .463.5 1.0 495.0 332.5
Redrow . . . . . . . . . . . .131.4 1.1 151.9 97.5 ITE Group . . . . . . . . . .244.3 -0.7 252.2 126.5
GKN . . . . . . . . . . . . . .212.4 0.2 237.1 102.0 Murray Income Tru . .641.5 9.5 649.0 513.0 Dairy Crest Group . . .382.4 2.4 424.9 329.0 Taylor Wimpey . . . . . . .36.8 0.6 44.0 22.3 ITV . . . . . . . . . . . . . . . . .86.5 1.5 87.6 48.3 GlaxoSmithKline . . .1176.0 5.5 1318.5 1095.0 Spirent Communica .154.2 2.5 160.3 102.8 Numis Corporation . .123.8 -0.3 158.5 109.0
Murray Internatio . . .914.0 -1.0 966.0 747.5 Devro . . . . . . . . . . . . .228.0 0.0 275.0 146.3 Johnston Press . . . . . .10.5 -0.3 33.5 9.1 Hikma Pharmaceuti .842.5 1.5 900.0 541.5 Patagonia Gold . . . . . .50.3 1.5 59.3 12.5
BANKS Perpetual Income . . .253.4 2.7 262.0 203.0 Premier Foods . . . . . . .22.0 -0.2 35.6 16.0 INDUSTRIAL ENGINEERING Shire Plc . . . . . . . . . .1695.0 24.0 1703.0 1255.0 TOBACCO Pursuit Dynamics . . .401.0 13.3 700.0 143.0
Mecom Group . . . . . .277.5 -6.0 288.0 149.8
Barclays . . . . . . . . . . .311.1 -2.2 383.2 255.4 Polar Cap Technol . .391.2 0.2 391.2 239.5 Tate & Lyle . . . . . . . . .591.5 11.0 594.5 409.1 Bodycote . . . . . . . . . .299.2 -5.0 308.2 175.1 Moneysupermarket. . .91.5 1.1 92.0 61.0 British American . .2423.5 22.5 2521.0 1959.0 Rockhopper Explor .278.0 -58.0 510.0 37.0
HSBC Holdings . . . . .714.0 -1.0 723.0 596.2 RIT Capital Partn . . .1315.0 23.0 1322.0 980.0 Unilever . . . . . . . . . .1807.0 -7.0 1997.0 1688.0 Pearson . . . . . . . . . .1064.0 4.0 1066.0 864.0 REAL ESTATE INVEST. & SERV. Imperial Tobacco . .1955.0 -5.0 2154.0 1753.0 RWS Holdings . . . . . .329.8 -4.3 370.0 239.0
Charter Internati . . . .776.0 6.0 853.5 567.0
Lloyds Banking Gr . . .66.8 1.0 77.6 46.6 Schroder Asia Pac . .220.1 -1.9 233.6 171.0 Fenner . . . . . . . . . . . .339.0 -0.2 386.7 183.3 Reed Elsevier . . . . . .590.5 7.0 592.0 460.6 Capital & Countie . . .146.0 0.4 156.9 100.0 Songbird Estates . . .137.0 -0.5 180.2 133.8
Scottish Inv Trus . . . .506.0 5.0 516.5 401.5 FORESTRY & PAPER Daejan Holdings . . .2795.0 13.0 2870.0 2157.0 TRAVEL & LEISURE Sterling Energy . . . . . .73.8 1.3 166.0 51.3
Royal Bank of Sco . . .44.0 -0.3 58.1 31.3 IMI . . . . . . . . . . . . . . . .912.0 10.5 953.0 546.5 Rightmove . . . . . . . . .905.0 -1.5 910.0 577.0
Standard Chartere .1669.5 27.5 1950.0 1361.8 Scottish Mortgage . .728.5 14.5 728.5 490.6 Mondi . . . . . . . . . . . . .528.0 2.0 557.5 339.6 Melrose . . . . . . . . . . . .311.2 0.6 329.0 165.5 STV Group . . . . . . . . .122.5 2.5 131.8 47.0 F&C Commercial Pr .102.0 0.8 107.0 88.0 Avis Europe . . . . . . . .229.0 5.5 284.7 190.0 Valiant Petroleum . . .615.0 15.0 761.5 504.0
SVG Capital . . . . . . . .247.4 3.4 250.0 125.2 Rotork . . . . . . . . . . .1725.0 37.0 1895.0 1215.0 Tarsus Group . . . . . .137.5 0.0 145.0 105.0 Grainger . . . . . . . . . . .103.6 1.9 145.0 86.3 Betfair Group . . . . . . .919.5 8.5 1550.0 882.0 Vatukoula Gold Mi . . .177.3 -2.0 227.0 84.0
BEVERAGES Temple Bar Inv Tr . . .898.0 10.0 913.5 717.0 GAS, WATER & MULTIUTILITIES Helical Bar . . . . . . . . .273.5 3.5 358.8 262.0 Carnival . . . . . . . . . .2983.0 34.0 3153.0 2037.0 Young & Co's Brew . .605.5 -1.5 670.0 485.0
Spirax-Sarco Engi . .1841.0 -14.0 2025.0 1241.0 Trinity Mirror . . . . . . . .87.8 1.3 170.1 64.5
AG Barr . . . . . . . . . .1126.0 41.0 1304.0 791.5 Templeton Emergin .610.0 3.0 689.5 486.5 Centrica . . . . . . . . . . .344.6 10.8 346.9 264.5 Weir Group . . . . . . .1695.0 34.0 1861.0 735.5 United Business M . .724.5 15.0 726.5 412.3 London & Stamford .127.5 0.7 133.5 110.3 Compass Group . . . .553.5 3.0 594.0 450.5
Britvic . . . . . . . . . . . . .440.5 0.5 518.0 411.6 TR Property Inv T . . .167.0 0.4 171.2 132.3 International Pow . . .339.4 11.2 448.6 284.5 Ferrexpo . . . . . . . . . . .433.1 7.7 447.9 210.2 UTV Media . . . . . . . . .128.3 -1.5 151.0 95.0 Savills . . . . . . . . . . . . .366.3 -0.7 399.0 273.1 Domino's Pizza UK . .523.5 -14.0 586.0 324.7
Diageo . . . . . . . . . . .1206.0 11.0 1258.0 1018.0 TR Property Inv T . . . .82.0 1.6 82.0 59.2 National Grid . . . . . . .572.5 7.5 596.2 484.2 Talvivaara Mining . . .609.0 4.0 622.0 342.4 Wilmington Group . .174.3 -0.3 183.0 129.0 St. Modwen Proper . .170.0 0.0 201.0 135.4 easyJet . . . . . . . . . . . .385.0 4.5 496.5 348.6
SABMiller . . . . . . . . .2144.0 58.5 2306.0 1678.0 Witan Inv Trust . . . . .516.5 3.0 522.0 409.9 Northumbrian Wate .318.0 3.9 361.5 252.8 WPP . . . . . . . . . . . . . .832.0 8.0 837.5 592.0 UK Commercial Pro . .78.4 0.6 85.0 72.8 Enterprise Inns . . . . .106.9 -0.1 139.3 84.4
Pennon Group . . . . . .626.0 7.5 650.0 482.9 INDUSTRIAL TRANSPORTATION Unite Group . . . . . . . .208.4 4.7 290.6 163.0 FirstGroup . . . . . . . . .370.3 -0.9 412.6 336.0
FINANCIAL SERVICES Yell Group . . . . . . . . . .10.5 0.0 59.0 10.0
CHEMICALS Severn Trent . . . . . .1441.0 1.0 1499.0 1086.0 Go-Ahead Group . . .1270.0 -14.0 1490.0 1042.0
BBA Aviation . . . . . . .240.8 2.8 241.8 160.3 REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . .313.6 -3.8 318.0 249.0 3i Group . . . . . . . . . . .315.6 3.0 340.0 250.0 United Utilities . . . . .573.0 8.0 628.5 507.0 MINING Greene King . . . . . . .476.5 -8.9 491.4 376.2
Forth Ports . . . . . . . .1327.0 2.0 1433.0 1025.0
Croda Internation . .1473.0 6.0 1625.0 797.0 3i Infrastructure . . . . .116.7 0.6 125.2 103.6
GENERAL INDUSTRIALS Stobart Group Ltd . . .154.9 0.8 163.6 125.6 African Barrick G . . .516.0 -1.0 670.0 501.5 Big Yellow Group . . .311.0 -6.3 353.3 284.4 InterContinental . . .1374.0 -15.0 1405.0 893.0 http://corporate.webfg.com
Elementis . . . . . . . . . .131.8 3.8 143.0 50.5 Aberdeen Asset Ma .215.6 -0.3 229.5 112.8 Anglo American . . .3421.5 113.0 3427.0 2254.0 British Land Co . . . . .542.5 2.5 542.5 418.3 International Con . . .249.0 -2.0 305.0 184.2 mailto:
Ashmore Group . . . .360.0 -1.6 383.7 228.6 Cookson Group . . . . .680.0 9.5 694.5 367.4 NON LIFE INSURANCE Capital Shopping . . .378.9 3.9 424.8 301.0 JD Wetherspoon . . . .456.8 2.4 548.5 386.5
Johnson Matthey . .1996.0 12.0 2100.0 1460.0 Antofagasta . . . . . . .1459.0 29.0 1634.0 761.0
Victrex . . . . . . . . . . .1339.0 -15.0 1522.0 811.0 Berkeley Technolo . . . .0.0 0.0 0.0 0.0 DS Smith . . . . . . . . . .213.8 -2.9 226.0 108.0 Admiral Group . . . . .1704.0 0.0 1733.0 1162.0 Aquarius Platinum . .416.4 13.4 458.0 227.1 Derwent London . . .1551.0 14.0 1605.0 1208.0 Ladbrokes . . . . . . . . .139.3 2.0 162.7 122.7 globaltechsales@webfg.com

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Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................93.91 0.01 99.15 72.54 3M ........................................................91.80 1.34 91.95 67.98
ALLIANZ ............................................106.50 0.60 107.35 75.82 ABBOTT LABS ...................................45.56 0.07 55.55 44.59
ALSTOM ..............................................42.53 0.23 50.73 30.78 ALCOA ................................................17.37 0.25 17.48 9.81

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ANHEUS-BUSCH INBEV ....................41.26 0.36 46.33 34.99 AMAZON.COM..................................189.25 3.04 191.60 105.80
ARCELORMITTAL...............................27.98 0.00 33.68 20.26 AMERICAN EXPRESS........................46.75 0.18 49.19 37.00
AXA......................................................15.65 -0.11 17.60 10.88 AMGEN INC.........................................53.74 -0.53 61.26 50.32

10:30 AM EMAIL
BANCO SANTANDER...........................8.84 0.09 10.57 7.00 APPLE ...............................................356.85 2.31 360.00 194.06
BASF SE..............................................58.04 -0.49 61.88 39.72 AT&T....................................................28.47 0.23 30.10 23.78
BAYER .................................................55.58 -0.12 59.17 43.27 BANK OF AMERICA ...........................14.77 0.28 19.86 10.91
BBVA......................................................8.94 0.11 10.95 6.87 BERKSHIRE HATAW B.......................84.91 0.46 85.86 68.48
BMW ....................................................63.14 1.43 65.49 28.28 BOEING CO.........................................72.14 -0.52 76.00 58.93
BNP PARIBAS.....................................56.72 0.26 59.34 40.81 BRISTOL MYERS SQUI......................25.22 -0.32 28.00 22.24
CARREFOUR ......................................35.38
CREDIT AGRICOLE ............................11.57
0.03
-0.04
41.28
13.78
30.85
7.87
Each day we’ll cover the morning’s breaking news, CATERPILLAR..................................103.54
CHEVRON ...........................................96.45
2.94
-0.25
103.55
98.23
52.45
66.83
CRH PLC .............................................16.69
DAIMLER .............................................56.51
0.20
1.03
22.00
59.09
11.51
29.93
give you current market analysis and CISCO SYSTEMS................................18.70
COCA-COLA .......................................63.57
-0.22
0.03
27.74
65.88
18.61
49.47
DANONE..............................................43.59
DEUTSCHE BANK ..............................46.17
-0.52
0.16
48.50
55.25
39.35
35.93 the most up-to-date financial headlines. COLGATE PALMOLIVE ......................78.92
CONOCOPHILLIPS.............................71.58
1.19
1.50
86.15
72.65
73.12
47.15
DEUTSCHE BOERSE .........................61.62 0.52 62.48 45.95 DU PONT(EI) DE NMR........................54.58 0.25 54.75 31.88
DEUTSCHE TELEKOM .........................9.90 -0.05 10.64 8.51 EMC CORP..........................................27.04 -0.15 27.23 16.63
E.ON.....................................................24.78
ENEL......................................................4.32
0.00
0.01
28.93
4.35
20.86
3.42 Sign up now to ensure you EXXON MOBIL....................................82.82
FORD MOTOR.....................................16.38
-0.38
0.43
84.00
18.97
55.94
9.75
ENI .......................................................18.26
FRANCE TELECOM............................16.24
0.00
-0.04
18.37
17.92
14.30
14.01 receive our free email. GENERAL ELECTRIC.........................21.33
GOLDMAN SACHS GRP ..................166.66
0.06
1.32
21.44
186.41
13.75
129.50
GDF SUEZ ...........................................29.72 0.19 30.05 22.64 GOOGLE A........................................624.50 8.06 642.96 433.63
GENERALI ASS...................................16.90 0.01 18.25 13.31 HEWLETT PACKARD.........................48.64 0.10 54.75 37.32
IBERDROLA ..........................................6.34
ING GROEP CVA...................................8.93
INTESA SANPAOLO .............................2.45
0.01
-0.11
0.02
6.44
9.20
2.99
4.38
5.34
1.88
Visit: www.CityAM.com/newsletter In association with HOME DEPOT.....................................37.48
IBM.....................................................163.85
INTEL CORP .......................................21.76
0.17
-0.24
-0.04
38.12
166.25
24.37
26.62
116.00
17.60
KON.PHILIPS ELECTR .......................23.44 0.04 27.01 20.58 J.P.MORGAN CHASE .........................46.57 1.04 48.20 35.16
L'OREAL..............................................85.72 -3.78 90.00 70.90 JOHNSON & JOHNSON.....................60.70 -0.23 66.20 56.86
LVMH..................................................119.40 0.55 129.05 75.92 WORLD INDICES KRAFT FOODS A................................30.66 -0.45 32.67 27.49
MUNICH RE .......................................122.05 -0.50 123.55 98.38 MC DONALD'S CORP ........................76.14 0.38 80.94 62.54
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................7.00 -1.16 11.82 6.59 MERCK AND CO. NEW ......................33.07 0.03 39.04 30.70
FTSE 100 . . . . . . . . . . . . . . 6062.90 42.89 -0.53
0.71 S&P 500 . . . . . . . . . . . . . . . 1329.15 7.28 0.55 CAC 40 . . . . . . . . . . . . . . . . 4101.31 6.17 0.15 BOVESPA SAO PAOLO . . 65755.66 1177.83 1.82
REPSOL YPF.......................................23.48 0.03 23.88 15.31 FTSE 250 INDEX. . . . . . . . 11797.77 76.17 -0.64
0.65 NASDAQ COMPOSITE . . . 2809.44 18.99 0.68 SHANGHAI SE INDEX . . . . 2827.33 9.17 0.33 ISEQ OVERALL INDEX . . . 2972.07 34.95 1.19 MICROSOFT........................................27.25 -0.25 31.58 22.73
RWE .....................................................53.47 -0.03 68.34 47.65 FTSE UK ALL SHARE . . . . 3143.89 21.58 -0.55
0.69 FTSEUROFIRST 300 . . . . . 1174.13 4.82 0.41 HANG SENG. . . . . . . . . . . 22828.92 120.30 0.53 STI . . . . . . . . . . . . . . . . . . . . 3077.27 -26.12 -0.84 OCCID. PETROLEUM.........................99.74 0.81 101.00 72.13
SAINT-GOBAIN ...................................43.32 0.82 43.87 27.81 FTSE AIM ALL SH . . . . . . . . 955.45 0.75 0.08 NIKKEI 225 AVERAGE . . . 10605.65 -12.18 -0.11 S&P/ASX 20 INDEX . . . . . . 2935.70 -22.30 -0.75 IGBM . . . . . . . . . . . . . . . . . . 1105.11 1.94 0.18 ORACLE CORP...................................33.47 0.21 33.59 21.24
SANOFI-AVENTIS ...............................49.65 -0.74 57.45 44.01 DOW JONES INDUS 30 . . 12273.26 43.97 0.36 DAX 30 PERFORMANCE. . 7371.20 30.92 0.42 ASX ALL ORDINARIES . . . 4970.60 -31.10 -0.62 SWISS MARKET INDEX. . . 6665.22 53.16 0.80 PEPSICO .............................................63.87 0.51 68.11 59.51
SAP ......................................................44.37 0.67 44.67 30.91 PFIZER ................................................18.81 -0.22 19.39 14.00
SCHNEIDER ELECTRIC ...................114.85
SIEMENS .............................................94.68
0.90
0.98
120.00
96.00
72.00
61.72
COMMODITIES CREDIT & RATES PHILIP MORRIS INTL .........................59.62
PROCTER AND GAMBLE ..................64.73
0.45
0.15
60.87
66.95
2.00
39.37
SOCIETE GENERALE.........................48.40 0.83 49.43 29.71 LON GD ONCE FIX AM...........1359.00 0.25 TIN CASH.............................31200.00 -290.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.000 0.00 QUALCOMM INC ................................57.60 0.60 57.65 31.63
TELECOM ITALIA..................................1.05 0.00 1.15 0.88 SILVER LDN FIX AM ..................30.05 -0.17 ZINC CASH ............................2401.00 -52.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 SCHLUMBERGER ..............................90.37 -0.26 91.61 51.67
TELEFONICA ......................................18.33 -0.08 19.69 14.67 MAPLE LEAF 1 OZ ....................65.00 -5.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 TRAVELERS CIES ..............................58.99 0.53 59.12 47.69
BRENT SPOT INDEX................101.69 0.76 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.00
TOTAL..................................................43.45 -0.03 44.63 35.66 LON PLATINUM AM................1830.00 -4.00 UNITED TECHNOLOGIE ....................85.20 0.45 85.46 62.88
SOYA .....................................1433.00 0.00 BoE IR 6 months ............................0.500 0.00 European repo rate .........................0.899 -0.09
UNIBAIL-RODAMCO SE...................144.45 0.85 155.95 105.19 LON PALLADIUM AM ...............820.00 2.00 UNITEDHEALTH GROUP ...................42.38 -0.05 44.09 27.13
COCOA ..................................3397.00 0.00 LIBOR Euro - overnight ..................0.872 -0.09 Euro Euribor ....................................0.942 -0.02
UNICREDIT............................................1.86 0.01 2.30 1.46 ALUMINIUM CASH .................2503.00 -34.00 LIBOR Euro - 12 months ................1.643 0.01 The vix index ...................................15.80 -0.29 VERIZON COMMS ..............................36.39 -0.03 37.70 24.77
UNILEVER CVA...................................21.73 -0.16 24.11 20.68 COPPER CASH ......................9875.00 -124.00 COFFEE...................................257.85 0.00 WAL-MART STORES..........................55.69 0.10 57.90 47.77
LIBOR USD - overnight...................0.234 0.00 The baltic dry index ........................1.136 0.04
VINCI....................................................43.83 -0.10 44.98 33.01 LEAD CASH ...........................2505.00 69.00 KRUG.....................................1414.60 4.10 LIBOR USD - 12 months .................0.796 0.00 Markit iBoxx...................................208.43 0.30 WALT DISNEY CO ..............................43.41 0.10 44.05 29.03
VIVENDI ...............................................20.77 0.18 22.07 16.18 NICKEL CASH ......................28005.00 -250.00 WHEAT ....................................210.00 -1.00 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................97.25 1.15 WELLS FARGO & CO.........................33.76 0.76 34.25 23.02
CITYA.M. 14 FEBRUARY 2010 Wealth Management | Spread Betting 25

ADVERTISEMENT FEATURE

Think again about “no dealing desk”

GARY TILKIN
PRESIDENT AND CEO, GFT

R
ecently, there has been a lot of dis-
cussion in the business media
about the “no dealing desk” model
in retail forex.
Let’s take a closer look at what a deal-
ing desk is, how “no dealing desk” bro-
kers stand up to dealers and market
makers, and what you should really be
looking for in your broker/dealer.

LET’S GET SOMETHING STRAIGHT. THERE


IS NO SUCH THING AS “NO DEALING DESK”
IN AN OTC FOREX TRANSACTION – THERE
MUST ALWAYS BE A DEALER (WITH A
DEALING DESK) ON ALL FOREIGN
EXCHANGE TRANSACTIONS.
The claim of having “no dealing desk” is
ridiculous. Plain and simple. Spot forex
is traded over-the-counter, not on a cen-
tralised exchange, so the trade cannot
occur without a dealer (or counterparty)
being involved in some capacity. “No
dealing desk” brokers are middle men –
they get your order and pass it on to an
actual dealing desk to be executed. They,
however, are contractually your dealer
or counterparty to the trade; they then
face the other dealer with a correspon-
ding trade.
In reality, the “no dealing desk” bro-
kers forward their trading orders to the
dealing desks of others, typically a bank
or other financial institution that makes
markets in spot FX. So whether you
know it or not, a dealing desk is always
involved when you place a trade. A more
accurate description of this model
would be to call it a pass-through deal-
ing desk. The pass-through dealing desk
“passes” the customer’s order to another
dealing desk. If this sounds like an extra tions. Sounds simple in theory, but the Not evey jurisdiction are problems with the trade. The broker 3. Does your broker operate from a reliable
middle man, it is. The elimination of the reality is quite a bit more complex and is as reliable literally “passes the buck” of responsibil- jurisdiction?
“middle men” is the main reason why can vary customer by customer or mar- ity, making any adjustments in favour of Is your broker/dealer operating in a
over-the-counter trading has grown so ket by market. These general ideas are Picture: the customer highly unlikely. In a deal- banana republic, or in areas with lax or
much over the last 15 years – which manipulated and customised by dealers Micha Theiner ing desk model, the customer can no regulation? If so, you may have no
makes it ironic that some firms are now (also called market makers) across the /City A.M. always call the dealer directly to discuss protection, regardless of whether they
trying to introduce middle men back industry, from major money centre any legitimate problems in execution. claim to have a dealing desk or no deal-
into the process. It’s also important to banks, to GFT. All with one goal in mind ing desk.
note that a pass-through dealing desk – to minimise risk to their firm and WHAT SHOULD YOU LOOK FOR IN A FOREX
puts all of the execution risk on the trad- make money. Dealers and consumers BROKER/DEALER? 4. Does your broker provide a steady price
er, but provides none of the benefits of can both profit at the same time. Other than spreads, what else should feed?
being able to speak directly to a dealing Ironically, most “no dealing desk” bro- you be looking for in a forex dealer? In currency trading, execution and serv-
desk. kers started out with direct dealing Here are some other things to consider: ice are of upmost importance. It doesn’t
desks, but some have reverted back to matter if your broker claims to offer a
DON’T FALL FOR THE MARKETING SPIN! being brokers instead of dealers, with a 1. Does your broker often widen spreads dur- half-pip wide spread – it will be of little
You might have heard in current adver- network of other, successful dealing ing volatile market conditions? use if those prices are not executable or
tising that when the customer makes desks to introduce their customers’ Pass-through dealing desk brokers and stable. The Internet is replete with
money, the dealer loses – that is, the order flow to. However, they still have to even some direct dealing desk brokers reports of brokers whose platforms are
dealer is trading against the customer. If make money somehow – and that is on will often widen their spreads during unstable and whose prices often lag the
that is the case, why does it matter if the the backs of their customers. news announcements, resulting in market. Simply search “lagging price” to
dealing desk is with the actual trading Instead of getting their profits as a spreads that could expand to 25 pips or see what comes up.
company that holds your account or dealer or market maker would, they more, for minutes at a time. For traders
another financial institution? This kind have to resort to other ways to find prof- who use tight stops, this “spread widen- The retail forex market has made
of marketing can be really misleading its. These may include increasing the ing” could prove very costly, triggering tremendous progress over the past
because in today’s regulatory environ- spread they offer customers as well as unnecessary stops outs and creating decade, allowing thousands of investors
ment, the concern that a dealer can only taking “payouts/rebates” from the deal- missed opportunities. and traders across the world to benefit
make money when their customers lose ing desks they use to execute customer from this unique market. However,
(and therefore, is actively trading against orders – possibly in a way not favourable 2. Does your broker have a clean regulatory when selecting a trading company, it is
customers), is not reality. to the customer. Rebates mean wider record? important to ask questions rather than
Dealing desks, whether they are with spreads from the dealer/market maker In the UK the FSA and in the US the NFA accept its claims at face value. A smart
a large money centre bank, or the trad- which could mean a worse price for the provide a full public record of any trader does research before making a
ing desks of companies like GFT, have customer. enforcement actions against the broker final choice.
one goal – make money for their firm. In or its key personnel. To look up the vio-
retail forex, that money can come from DEALING DESKS AND MARKET MAKERS lation records of any licensed broker
a variety of sources. Dealing desks can CAN BE CONTACTED DIRECTLY TO DISCUSS simply go to:
make money by matching one customer PROBLEMS IN EXECUTION. www.fsa.gov.uk/register/home.do
order against another, sending customer Since the pass-through dealing desk is or:
orders or part of customer orders to merely acting as a middle man in the www.nfa.futures.org/NFA-investor-infor-
other liquidity providers in the broader trade and routes the order to some mation/index.HTML.
market, and also holding proprietary financial institution, the customer has Generally, the better the record, the bet-
positions based on their customer posi- almost no recourse in cases where there ter the broker.
Lifestyle
26 CITYA.M. 14 FEBRUARY 2011

| Travel

Stay in style
in the Land of
the Rising Sun
David Crow discovers the cool urban
hotels transforming Japanese hospitality

T
RADITIONALLY, visitors to Then there are the little things:
Japan have had two choices. Japanese hotel rooms are fitted with
Stay in a Western chain hotel the kinds of comforts a local might
like a Hilton or opt for a expect – electric toilet seats and tradi-
Japanese establishment. The first tional tea making facilities – but if
option is safe but dull. There is some- you wanted to make a cup of coffee in
thing quite galling about returning your room, you could forget it.
to a slice of America or Europe when In recent years, however, things
you’ve spent the day soaking up have changed. The best Western chains
Eastern culture. (like Hyatt and Peninsula) are now
Nor is going for a Japanese chain, designed with Japanese style in mind,
or one of the countless boutique while some high-end hoteliers in
hotels, a particularly easy experience. Japan have begun catering for Western
It is tricky to book online, with many travellers.
of the websites written in Japanese Here we’ve picked five hotels from
only, while the rooms are, for the Japan’s most visited cities – Tokyo,
most part, much smaller than you Kyoto and Osaka – that offer, as cliché
might expect. would have it, the best of both worlds.

Peninsula, Tokyo (left and below)

ARELY three years old, the place in the city to enjoy it; the cur-

B Peninsula has already estab-


lished itself as one of
the great hotels of
Tokyo. In a city known
for its gaudy neon,
rent menu takes it’s inspiration
from Jo Malone fragrances.
Given that space is at
a premium in Tokyo,
it’s impressive to
this hotel is an exer- find the very cen-
cise in how ele- tre of the hotel
gance need not be given over to a
understated and it stunning art
starts as soon as installation.
you walk through The Void is a
the door (or series of silvery,
before that even, if fibre-optic
one of the hotel’s sculptures sus-
vintage Rolls Royce pended inside a
cars happens to be 70 metre “black
waiting outside). hole”, visible from
The lobby is a vast cir- every floor of the hotel.
cular room, decked in Even more impressive,
Japanese wood with a magnificent though, are the views. Situated
chandelier consisting of over a thou- opposite the Imperial Palace, the
sand LEDs hanging in the centre. main residence of the Emperor of
Afternoon tea is an unexpectedly Japan, the hotel provides beauty and
popular activity in Japan and the heritage at every turn.
Peninsula’s lobby might be the best www.peninsula.com/tokyo, 03-6270-2888.
CITYA.M. 14 FEBRUARY 2011 FIRST-CLASS FISH 27
IN BATTERSEA
SEE TOMORROW’S
RESTAURANT REVIEW

Mistui Garden Hotel Ginza Premier, Tokyo Hyatt Regency, Kyoto


HERE is no doubt about it, IKE Kyoto itself, there is nothing Save for the de-rigeur electric toilet seat

T the Mitsui Garden Hotel


Ginza Premier in Tokyo is
Japanese through and
through. Like many Tokyo hotels, it
is housed in the upper section of a
L showy about the Hyatt Regency.
Due to the city’s strict building
laws (there are virtually no high-
rises) the hotel is housed in an
unremarkable five-storey
(a staple of all Japanese hotels), there is
little in the way of gadgetry. At first, it’s
hard to believe you’re in a five-star estab-
lishment, but stay a while and
you’ll find that everything
soaring tower block – the entrance building on the edge of is dripping with solid,
is accessed by an unremarkable ele- town. Step inside and unpretentious quali-
vator that’s shared with a photo- you'll find a tran- ty. Be sure to visit
copying firm. Once you arrive, quil, quiet lobby, the excellent
however, you quickly realise there more reminis- Touzan restau-
are advantages to having a lobby cent of an rant and
suspended 16 storeys in mid-air opera house indulge your-
rather than the ground floor. foyer than a self with a
The near-panoramic views of the bustling inter- traditional
Tokyo skyline – including the national meal of
famous Tokyo Tower – and the hotel. kaiseki ryōri,
twisting nexus of futuristic roads, The décor Kyoto’s take
is breathtaking; the Piero Lissoni- is stylish but on haute cui-
designed interior almost pales in understated: a sine, a tasting
comparison, but not quite. giant piece of menu of beau-
The rooms aren’t exactly tiny, fretwork, the tifully pre-
although they’re small by Western provide an opportunity to drop in also perfectly located for a visit to shapes cut to pared morsels
standards, and are jam-packed with on some of Tokyo’s more neglected the Tsukiji fish market, a must-see resemble a made from sea-
technical wizardry, luxury fabrics areas. Nearby Shiodome, a futuristic for any Tokyo visitor. A perfect Japanese kimono, sonal ingredients
and glossy surfaces. Located on the skyscraper-packed district that is example of high-end hotel living, serves as a low-hanging (ours included wagyu
edge of Japan’s fashionable Ginza home to some of Japan’s biggest cor- Japanese-style. ceiling; the furniture, all beef, rolled eel, scallops
district, the hotel is somewhat off porations, makes Canary Wharf www.gardenhotels.co.jp/eng/ginza- beiges and creams, is low-slung and marbled cod). Happy to
the beaten track, although it does look positively antiquated. You’re premier, 03-3543-1131. and inviting. leave the glitz and glamour to Tokyo
The rooms, with floor-to-ceiling win- establishments, this hotel is a triumph of
dows that look out on a stunning tradi- restrained elegance.
Dojima Hotel, Osaka tional garden, are similarly unflashy. www.kyoto.regency.hyatt.com, 075-541-1234.

SAKA is often described as

O an industrial city, meaning


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members bar Dojima Club. All dark Japanese whisky might once have well worth trying.
wood and low lighting, it’s got an suffered the same reputation as www.dojima-hotel.com, 06-6341-3000.
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28 Lifestyle | Travel and Gadgets CITYA.M. 14 FEBRUARY 2011

Is Nokia jumping off


the burning platform
and into the fire?

GEEK
SPEAK

Taking the easy route @steve_dinneen

N
OKIA finally confirmed a tie-up with Microsoft on Friday,
which sent a ripple of excitement through absolutely
nobody. At Mobile World Congress (MWC) this week it will
Family skiing trips don’t have to be a trial, says Jenny announce a new tablet. Or an Xbox phone. Or a giant laser
with which it will attempt to destroy the moon. It doesn’t really
Forsyth, if you get somebody else to take care of the kids mater – nobody will pay any attention anyway.
Its new chief executive Stephen Elop could drop his trousers and
run laps around the MWC site, frothing at the mouth and licking

G
RINNING broadly, my daughter proudly For example, half term week next year in the windows of the BlackBerry stall, and people would only com-
displayed her Ski Esprit certificate – a Meribel’s Chalet Hotel Alba would cost a family plain he was obstructing their view of the new Playbook (I’m offer-
Little Miss Sunshine award. All week she of four £4,960, with an additional £776 for two ing odds on this actually happening, by the way).
had smiled as a child helper trudged up children’s all-day childcare and ski lessons. It must be frustrating for Elop. Nokia is the biggest smartphone
the slopes and made sure her boots and gloves If you’ve got pre-schoolers, or are willing to provider in the world. Its Symbian operating system was the most
were fitting snugly before she practised her risk the wrath of a headteacher for pulling your common platform last year and it shipped almost a third of all
“pizza” turns down the nursery trails at kids out of school, you can take advantage of smartphones in 2010.
Meribel, in France’s Three Valleys. Six-year-old heavily discounted, “one child goes free” and The problem is, Nokia is both vast and dull. It’s like Canada. Its
Eloise chattered happily as she wolfed down “free ski hire” deals from many operators. phones are about as exciting as the vast swathes of
hot dinners at the Chalet Hotel Alba and cheer- The flip side, as my kids like to remind me, is icy tundra; characterless and difficult to navigate.
fully whiled away the afternoon hours in a they can end up the only English children in Sure, they both have their highlights. Canada has
Blue Peter craft-making heaven. the ski school, with only each other to talk to, Montreal. The camera on Nokia’s N8 is nice. But
And after a final day of family skiing, when I an instructor giving English tuition as an after- this doesn’t make up for the N900. Or Celine
could watch satisfied as Eloise skied steadily thought, and foreign-language films every Dion.
down the mountain and her brother Jake, eight, lunch time. Elop has been doing his level best to create
honed his newly-learned parallel turns, I was some buzz. In a “leaked” Nokia memo, he
feeling more than a little smug. In fact, it’s fair THE BUDGET OPTION said the firm was on a “burning platform”
to say I was feeling like Mrs Sunshine myself. One option is to cut out the hand-holding – and later, rather incongruously, quoted
That, in my book, is a perfect family snow and the cost – with a DIY family ski package. Winston Churchill during his keynote. But is
holiday, with adults free to ski unencumbered Eurotunnel fares are around £150 return, this latest announcement a case of jumping off
all day, while the juniors crash into each other then add fuel for an eight to 10-hour drive to the burning platform and into the fire?
instead of your knees. You stop for a long the Alps, accommodation (self-catering apart- A tie-up with Microsoft isn’t much of a sur-
mountain-top lunch, if you please, while they ments for four cost from €1,400 per week for prise. Elop (who, incidentally, hails from
quaff their hot chocolate with a table full of half term through www.meribel.net), lessons Canada) was until September a Microsoft
children. They learn to ski without picking up (British-founded ski school New Generation, man, responsible for its terribly exciting suite
the type of “French” that turns the air bleu. www.skinewgen.com, runs two-hour lessons of Office products. The software giant has a US
It’s an attitude, I know, that some parents for four to five-year-olds for €235 a week or market share of between three and five per cent
object to. And really, if you prefer the martyr- four-and-a-half-hour lessons for over six-year- for its Windows Phone 7 platform and is des-
dom of lugging your children’s gear up and the olds for €395 a week) and lunches for the perate to show it off (and it’s surprisingly good –
down the hill each day, stopping oh-so-regular- whole family on the piste (think €5 for a plate but only in the sense that discovering your
ly for toilet stops and cafe breaks to warm up of chips). If you need to hire equipment, you grandmother isn’t racist is surprisingly good; it
cold fingers, and giving up your dreams of can save yourself time and trouble by booking confounds your expectations but isn’t exactly
black run skiing so you can be off the slopes ahead from England, for easy pick up in the something to brag about). The deal makes sense
around midday with your youngsters, who can Alps (www.intersport.com). for them. It will raise the profile of Windows
blame you? At least you’ll have no one else to It’s a budget scheme, which wouldn’t work if Phone 7, place it in the hands of people who
blame for the bad habits they’ve picked up. your children are too young for ski lessons, but wouldn’t have seen it otherwise, and if it catches
The type of cosseted family skiing I’m talking could be perfect for families with older chil- on, Microsoft can skip off into the sunset with
about, of course, comes at a price. There’s the dren ready to tour the mountains together. all the major handset-manufacturers.
financial toll of all-day childcare, three meals a And at least you wouldn’t face the mixed For Nokia it is less straightforward. On the plus side, it can
day, ski lessons, evening “cocoa clubs” and the blessing of children so entranced by the prom- escape its Symbian nightmare (partly responsible for Nokia’s mar-
babysitter for the big night out (well, the one ise of an afternoon treasure hunt, they’d rather ket share nose-dive) and resist strengthening Android further by
where you’re not having dinner with other not be picked up early for family skiing. avoiding a deal with Google.
adults while the kids are tucked up and moni- That’s what happened last year, when we But Windows Phone 7 is unlikely to convince too many people to
tored upstairs). And then there’s the cost of went as far as to book our family ski trip over buy Nokia. The deal has also effectively killed MeeGo, the Linux-
being organised enough to book well ahead. Christmas. With a guarantee of the three Ss – based operating system it has been jointly developing. Bizarrely, a
It’s at this time of year that the keenest mums Santa, Snow and Someone else to look after single, orphan MeeGo phone, the N9, will debut at MWC. The two
and dads start planning the February half-term the children and cook the turkey – I would rec- other phones expected this week are the E6 and X7, which will
holiday – for next year. True, you can still find ommend it as the ultimate feel-good family probably run Symbian. With Elop seeming to scotch rumours of a
last minute 2011 season places – for both half holiday. With everything catered for, my MeeGo-powered tablet, the question is: what exactly is Nokia going
term and Easter – and congratulate yourself on biggest dilemma was whether we’d get away to show off in Barcelona?
not losing all spontaneity in the maternity from snowbound England. And the kids had If the promise of future Windows Phone 7 handsets is the best it
ward. But you are unlikely to strike the type of only one pressing worry – how would Father can do, Nokia is not so much rearranging deckchairs on the Titanic
discounts or availability, for both childcare and Christmas find us in France? but sending a diving team to the bottom of the Atlantic Ocean to
lessons, that early booking brings. www.espritski.com, www.meribel.net drape bunting over its rusting shell.

TRAVEL NOTES | by Timothy Barber MOTOROLA MILESTONE 2


THE Motorola Milestone 2 had a difficult task – to
improve upon the pretty awful Milestone. Its
Cut-price luxe chalets Direct transfer at City appearance is similar, although the small aesthetic
Ultra high-end ski operator Scott Dunn is In addition to launching new routes to changes make a big difference. The metallic navy hue
offering savings of up to £4,000 per Florence, Avignon and Toulon, CityJet – and metal rim look slick and it’s lighter than its prede-
group for two of its luxury chalets for the the airline flying from London City cessor but still solid. But the greatest improvement is the
week departing 27 March. Spa-tastic Airport – now has a direct transfer operating system, an overhauled version of Android 2.2.
Chalet Louise in Zermatt and Chalet facility at the airport. Passengers with Social networking is brought to the forefront and, while it
Pauline in Val d’Isere both sleep 10. onward connections at London City can can look a little cluttered, it makes keeping up with Facebook
They’re going for £1,395 and £1,595 per proceed straight to the new CityJet and Twitter very easy. Quite who will buy it, though, when
person respectively, including flights, driv- transfer desk, with no need to re-check stronger alternatives are on the market, is unclear.
er and half board. www.scottdunn.com in luggage. www.cityjet.com
CITYA.M. 14 FEBRUARY 2011 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK


TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News 6.30pm One Man 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show and His Campervan 7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Inside Out: BBC News 7pm Geert Wilders: Europe’s 7.30pm Coronation Street 7.55pm 4thought.tv: 7.30pm How Do They Do It?
8pm EastEnders Most Dangerous Man? 8pm The Lakes The issue of obesity in the UK. Five News Update
8.30pm WikiLeaks: Following Dutch politician Geert 8.30pm Coronation Street 8pm Dispatches: Lessons in 8pm CHOICE The Gadget
The Secret Story: Panorama Wilders on the campaign trail. 9pm CHOICE The Biggest Hate and Violence: Allegations Show: Five News at 9
9pm CHOICE Outcasts 8pm University Challenge: Loser: Davina McCall presents. of assault made against 9pm Royal Navy
10pm BBC News Presented by Jeremy Paxman. 10pm ITV News at Ten teachers in Muslim schools. Caribbean Patrol
10.25pm Regional News 8.30pm Baking Made Easy 10.30pm London News 9pm One Born Every Minute 10pm Steven Seagal v Justin
10.35pm A Question of Sport 9pm Horizon: How to 10.35pm Total Emergency 10pm Alan Carr: Chatty Man Lee Collins OUTCASTS
11.05pm Late Kick Off 11.35pm The Mend a Broken Heart 11.35pm That Sunday 11.10pm The Joy of Teen Sex 11pm FILM Half Past Dead: BBC1, 9PM
Graham Norton Show 12.20am The 10pm Episodes Stella and Tate enlist the help of Tipper
Night Show 12.10am Music on 4: Action adventure, starring
Apprentice USA 1.05am The when a whiteout of unprecedented
Apprentice USA; Weatherview
10.30pm Newsnight: Weather 12.05am Grimefighters Taio Cruz: Life of a Rockstar Steven Seagal. 2002.
1.55am Sign Zone: Ancient Worlds 11.20pm Mad Men 12.30am The Zone; 12.45am Premier League Poker 12.50am SuperCasino strength threatens to destroy
2.55am Sign Zone: Climbing Great 12.05am An Island Parish ITV News Headlines 1.40am Mosley 2.40am Dispatches: 4.05am The FBI Files 4.55am Forthaven. Liam Cunningham stars.
Buildings 3.25am Sign Zone: Rip Off 12.35am BBC News 2.35am UEFA Champions League Lessons in Hate and Violence Animal Rescue Squad 5.10am
Britain 3.55am Sign Zone: Save My 3.15am The Super League Show Weekly 3am The Jeremy Kyle Show 3.40am The Last Dragon 5.30am- Wildlife SOS 5.35am-6am
Holiday 4.40am-6am BBC News 4am-6am BBC Learning Zone 3.55am-5.30am ITV Nightscreen 6am Wogan’s Perfect Recall House Doctor

SKY SPORTS 1 Afterburn 12am WWE: NXT 8pm Nikita 9pm America’s 11.05pm Skins 12.10am 4.40am Nasa’s Greatest
SATELLITE & CABLE

7pm Sky Sports News at 1am WWE Vintage Collection Next Top Model 10pm Bedlam Scrubs 1.10am David Blaine: Missions 5.30am-6am How
Seven 7.30pm Live Monday 2am Live WWE: Late Night – 11pm Criminal Minds 12am What Is Magic? 1.55am Skins Does That Work?
Night Football 10.30pm The Raw 4.15am-5.15am Show CSI: Crime Scene Investigation 2.50am Dirty Sexy Money
Sky Sports Years 11.30pm Jumping 2.40am Charmed 4.20am Four 3.35am Style Her Famous DISCOVERY HOME &
Netbusters 12am SPL Round- Weddings 5.10am-6am Maury 3.55am Life Unexpected HEALTH
Up 12.30am Football Special BRITISH EUROSPORT 4.40am-6am Switched 7pm A Baby Story 8pm How THE BIGGEST LOSER
1.30am Soccer AM: The Best 7pm Live Snooker: The Welsh BBC THREE Clean Is Your House? 9pm ITV1, 9PM
Bits 2.30am Sports Unlimited Open 10pm Alpine Skiing 7pm Doctor Who 7.50pm HISTORY Trauma Unit 10pm Untold The remaining contestants face a
3.30am Watersports World 11.35pm Eurogoals 12.05am- Doctor Who Confidential 8pm 7pm Heir Hunters 8pm Stories of the ER 11pm Critical challenge at an RAF base, and tensions
4.30am Max Power 5.30am- 12.30am WATTS Hotter Than My Daughter America: The Story of the US Condition 12am Trauma Unit mount in the house following a shocking
6am FIFA Futbol Mundial 8.30pm The Lock Up 9pm The 9pm Pawn Stars 10pm 1am Untold Stories of the ER revelation. Davina McCall presents.
ESPN World’s Worst Place to Be Gay American Pickers 12am Pawn 2am Critical Condition 3am
SKY SPORTS 2 6.30pm Talk of the Terrace 10pm EastEnders 10.30pm Stars 1am American Pickers How Clean Is Your House?
7pm IRB Rugby Sevens 9pm 8pm French Top 14 Rugby Being Human 11.30pm Family 3am Life After People 4am 4am Bringing Home Baby
Cricket World Cup 10pm Bass Union 8.30pm Premiership Guy 12.15am The World’s UFO Files 5am-6am Ancient 5am-6am A Baby Story
Fishing 11pm Extreme Carp Rugby Union 10pm Between Worst Place to Be Gay 1.15am Discoveries
11.30pm Soccer AM: The Best The Lines 10.30pm Pardon the The Lock Up 1.45am Young, SKY1
Bits 12.30am Cricket World Cup Interruption UK 11pm ESPN Jobless and Living at Home DISCOVERY 8pm Dream Lives for Sale 9pm
2.30am European Tour Golf Game of the Week 11.30pm 2.45am Hotter Than My 8pm How Do They Do It? Road Wars 10pm An Idiot
3.30am PGA Tour Golf 4.30am- Talk of the Terrace 1am Live Daughter 3.15am Is Oral Sex 8.30pm How It’s Made 9pm Abroad 11pm Inside: Surviving
6am Wonderful World of Golf NHL Ice Hockey 3.30am ESPN Safe? 4.10am Doctor Who Aircrash Confidential 10pm Prison 12am Mental 1am Road
Press Pass 4am ESPN Game of Confidential 4.25am-5.25am Dual Survival 11pm Surviving Wars 1.50am Inside Killer THE GADGET SHOW
SKY SPORTS 3 the Week 4.30am-6am Being Human the Cut 12am Bear Grylls: Born Sharks 2.40am Invasion of the CHANNEL5, 8PM
7pm Bass Fishing 8pm Premiership Rugby Union Survivor 1am Deadliest Bodyscratchers 3.30am The New series. The team presents an
NASCAR 9pm Athletics 10pm E4 Catch 2am Future Weapons 4400 4.20am Don’t Forget the edition of the technology show at
WWE: Late Night – Bottom SKY LIVING 7pm Hollyoaks 7.30pm Friends 3am Hitler’s Henchmen Lyrics 5.10am-6am Sell Me Manchester’s Museum of Science &
Line 11pm WWE: Late Night – 7pm Ghost Whisperer 9pm Glee 10pm Tool Academy 3.50am The First World War the Answer Industry.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
22 13 3 23 41 17 7
11 18 12
  
6 15 7
Place the numbers from 1 to 9 in each empty cell so that each 28 11 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 24 16
42
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 14 17    
above or to the left of it. 6 15 5
You can only use the digits 1-9 11 13
   and you must not use the
8 12 29
45     
same digit twice in a block.
   The same digit may occur 14 12 
8 10
   more than once in a row or
column, but it must be in a 9 19
8
8
21
20
 
35 12
   separate block.
16
4 16 10
  9 10 12
 

   ACROSS DOWN
1 Appear suddenly (3,2) 1 Egyptian royal
  
   WORDWHEEL R M
4 Impertinent (5)
7 Answer back (6)
tomb (7)
2 Communion
plate (5)
Using only the letters in the Wordwheel, you have 9 Compass point (4)
   ten minutes to find as many words as possible,
N I 3 Less tainted (5)
10 ___ Brockovich, 2000 film
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I starring Julia Roberts (4)
5 Retaliator (7)
6 Hindu social
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E C 11 Sacred word or syllable
repeated in prayer (6)
class (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E S 13 Units of force associated
8 Restraint
that confines
with gravity (4)
QUICK CROSSWORD 6 8 4 9 8 9 4 2
freedom (7)

E F H L I M I T
8 9 5 7 3 7 2 1 SUDOKU         
15 Female operatic star (4)
12 Passage (7)
5 2 3 1 8 1
         17 Maritime (6)
A G I T A T E I A
2 6 1 7 8 3 1 14 Perfumed (7)
G N R V N I
1 7 6 8 9 4 7 5
         20 Yule (4)
E L E C T R I C I A N
         16 Interior (5)
R A H H T 2 3 4 6 1
         21 Burden of responsibility (4)
C
F O R
V
G I V I
N P
N G
B
4 3 1
6 5
2 5
8 9
7 4
7 2
3
1
WORDWHEEL          22 Lasso (6)
18 Concern (5)
U N N E C E S S A R Y
7 9 3 8 9 5          19 Fool (5)
I A U A R W The nine-letter word was 23 Thin meat soup (5)
N T S I N A T R A 8 1 3 2 6 8 3 9         
TOUGHENED
G R O U P D Y Y 9 2 1 4 2 4 1 3          24 In a softened tone (5)
Sport
30 CITYA.M. 14 FEBRUARY 2011

Ashton’s our natural born finisher


HEAD-TO-HEAD | WING WONDERS
Johnson thrilled by
After nine tries in his first nine games,
progress of England’s Chris Ashton is being talked of as poten-
tial England great, but he’s got a way to
try scoring machine go before he eclipses these three wingers.

RBS
6 NATIONS
BY JAMES GOLDMAN
ENGLAND manager Martin Johnson
hailed try scoring sensation Chris RORY UNDERWOOD: The former RAF
Ashton as his side’s new talisman pilot remains England’s record try scorer
following his record-breaking
exploits against Italy. with 49 from 85 Tests. He’s also the most
Ashton followed up his brace in capped England back of all-time.
England’s RBS 6 Nations victory over
Wales with four more in Saturday’s
crushing 59-13 win over the Azzurri.
The 23-year-old now has nine tries
from his first nine internationals, a
haul which must have seemed
unthinkable to a player who was Ashton was the first
considering returning to his rugby England player to score
league roots just 18 months ago. four tries in a 6 Nations BEN COHEN: The nephew of England 1966
But such has been his rapid rise to games since 1914 hero, George, is third on the all-time
prominence that Johnson compared Picture: ACTION IMAGES England list with 31 tries from 57 games
his impact to England’s only previ- and he won the World Cup in 2003.
ous unqualified cross-code success
story, Jason Robinson.
“We need finishers. They make Johnson after wheeling out his at records is the day I am sure I will once again a fixture in the side, but
the difference in games. Chris is trademark try scoring celebration stop scoring tries,” Ashton said. “My has warned Ashton he can expect to
enjoying what he does but under- against Italy – dubbed the “Ash aim when I got in the team was to become a marked man.
neath that he does work hard, he is Splash” – but despite the showboat- play the best I could and hopefully He said: “Teams start to target
conscientious and he wants to be a ing, his feet are firmly on the the tries would come from that.” you and they will throw extra
very good player. Chris is a bit differ- ground. Rory Underwood last week England’s other wing, Mark defenders. Whenever you do your
ent. When Jason Robinson came predicted Ashton will break his Cueto, made a similarly stellar start analysis on the teams you come up JASON ROBINSON: Like Ashton, the
into the team he was different and record of 49 England tries but the to his international career six years against you pick out the threats player nicknamed Billy Whizz was a
Chris is different again.” Northampton wing refuses to even ago, before a dip in form saw him and without a shadow of a doubt, league star with Wigan. He scored 28
Ashton avoided a ticking off from consider it. “The day I start looking slide into the wilderness. Cueto is teams will be looking at Ashy.”
tries in his 51 internationals.

@ Liverpool came off better in Sturridge makes it


@
@
three from three
www.cityam.com
MORE NEWS
ONLINE
Torres transfer, insists Rush as Trotters kick on
FOOTBALL in, so that says everything about them.”

BY FRANK DALLERES Uruguayan Suarez, who netted on his

LIVERPOOL may have seen former darling of


Reds debut and hit the post in Saturday’s 1-1
draw with Wigan, was infamously sent off
BOLTON WANDERERS 2
the Kop Fernando Torres defect to Chelsea, for handling during the World Cup to deny a
but Anfield great Ian Rush believes time will goal to Ghana, who lost the ensuing penalty EVERTON 0

!
prove the Reds did the better business in the shootout. And Rush lauds that as proof of a

BURN
last transfer window. champion’s mentality.
Torres has endured a miserable time since “When he handballed the thing he got FOOTBALL

his British record £50m transfer, suffering sent off – for his country really, he was try-
BY FRANK DALLERES

2500
defeat to his former team-mates on his debut ing to protect them,” added Rush at a
last week, while one of his replacements, Standard Chartered Football Clinic in BOLTON boss Owen Coyle insists he is happy
£23m Luis Suarez, has impressed already. London, where disadvantaged children for his club to act as a finishing school for
CALORIES Andy Carroll, a £35m purchase from
Newcastle, has yet to make his Liverpool
received coaching and a lesson in financial
literacy. “When [Ghana] missed the
youngsters at bigger clubs after on-loan
Daniel Sturridge struck again.
bow, but club ambassador Rush has penalty you could see the excite- Sturridge smashed a fine volley to take his
high hopes for the 22-year-old, ment on his face and that it tally to three goals in three games since join-
and believes losing Torres but meant a lot to him. You can’t ing on loan from Chelsea until the end of
gaining Carroll and Suarez buy that; it’s in you. He the season.
Visit us at Livepool represents great business.
“It’s taken two players to
seems to be a winner.”
Would he be happy for
And Coyle said: “I am not surprised. These
young players are just craving a platform to
Street Station to tone replace Torres – that’s how
good a player he was – but I
Suarez to do likewise in
Liverpool colours? “Yeah
go and play.
“There are some terrific young talented
tummy, hips and thighss. think Liverpool have got
the better deal,” Rush told
why not? It’s a natural
instinct to do that.”
players out there, most of them will be at the
elite clubs. But there is no shame in not
Stepup@gmx.us City A.M. yesterday.
“He’ll do alright for Chelsea
Rush also believes Carroll’s
rough edges will be
being in the Arsenal or Chelsea team. If I feel
there are players who can benefit Bolton I
but we’ve got to look to smoothed out by Liverpool will do everything in my power to bring
www.vacupower.com Liverpool now and we’ve got two boss Kenny Dalglish and his staff, them here.”
fantastic players who I think will be adding: “He’s still raw, but he’s a Centre-back Gary Cahill headed Bolton in
Call now: 07821 035 009 better in the long run. You’d never think the great target man and header of a ball, has a front via a deflection, and after the break
supporters would be happy if Torres left. But great left foot. With the right players and Sturridge wrapped up a win to keep the
they seem to be with the two who have come coaching we will see a better Carroll.” Trotters eighth in the Premier League.
CITYA.M. 14 FEBRUARY 2011 31

Ireland take credit Kid Cassidy lucky, says trainer


but not the victory trainers have suggested they may and knuckled over for a second.


HORSE RACING
BY JAMES GOLDMAN have suffered electric shocks and a “It does appear it was to do with
section of cable has since been electricity and underground cables.”
TRAINER Nicky Henderson believes removed from the paddock area. Stuart Hogarth, operations direc-
Kid Cassidy is “extremely lucky” to “Kid Cassidy was extremely lucky tor for Southern Electric Power
be alive after two other horses died as he definitely got the effect,” said Distribution, said yesterday: “A sec-
at Newbury on Saturday. his trainer Henderson. tion of electricity cable has been
An investigation is under way “It was something that none of us removed from the paddock area for
after Fenix Two and Marching Song have ever seen before and we hope further detailed inspection.
died in the paddock, while Kid never to see again. “Our initial on-site investigations
Cassidy was withdrawn after show- “Kid Cassidy was just walking last night confirm there was no dan-
ing signs of distress. The horses’ round and went over on to the grass ger to the public.”

“The feeling is that’s an opportunity


IRELAND 22 lost. We had too many turnovers,”
said Kidney. “We won the try-count 3-
1 but still lost the match so we’ll have
FRANCE 25 to look again at the penalties to see
which ones were under our control.
“We need to keep playing this way
and get used to doing it at Test level.

RUGBY UNION
BY JAMES GOLDMAN It is the right way forward for us.”
Ireland held a deserved 15-12 half-
IRELAND head coach Declan Kidney time lead and the Grand Slam cham-
admitted his side only had them- pions appeared there for the taking.
selves to blame after France escaped Winger Maxime Medard crossed to
from the first RBS 6 Nations match to help France back into the driving seat
be played at the Aviva Stadium with a until No8 Heaslip crashed over in the
scarcely deserved victory. right corner to set up a tense finish
Fergus McFadden, scrum-half which saw Les Bleus just about hold on.
Tomas O’Leary and Jamie Heaslip all
crossed as the hosts, playing by far
the more adventurous and cohesive
RBS 6 NATIONS
TEAM PLD W D L F A PTS
rugby, won the try-count 3-1, but the
concession of needless penalties England 2 2 0 0 85 32 4
allowed the French, aided by the boot France 2 2 0 0 59 43 4
of Morgan Parra, to make it two wins Wales 2 1 0 1 43 32 2
from two.
And Kidney refused to take consola- Ireland 2 1 0 1 35 36 2
tion from an ambitious display, Scotland 2 0 0 2 27 58 0
undermined by the number of errors. Italy 2 0 0 2 24 72 0

SPORT | IN BRIEF
Resilient Quiros prevails in Dubai to the contrary. Winger Bale hit a hat-
GOLF: A rollercoaster round involving trick in the San Siro earlier this season
both a triple-bogey and a hole-in-one saw when Spurs lost 4-3 to Inter Milan, but
Spain’s Alvaro Quiros see off a host of big looks set to miss out on the club’s return.
names to win the Dubai Desert Classic. Redknapp said: “I’d like to be able to
Quiros lost his ball up a palm tree at the scare Milan a bit but he’s struggling to
eighth but hit the perfect tee-shot at the get over this back injury.”
11th, and went on to win by one shot on
11 under par. Denmark’s Anders Hansen Gloucester scrape into top four
and South African James Kingston were RUGBY UNION: Gloucester climbed to
second, while Tiger Woods fell out of fourth in the Premiership after a late let-
contention with a woeful round of 75. off in a 10-9 win at Wasps. A try from
James Simpson-Daniel and the kicking of
Bale set to miss AC Milan clash Nicky Robinson put the visitors ahead,
FOOTBALL: Tottenham boss Harry but Wasps came back through three
Redknapp says Gareth Bale is likely to Dave Walder kicks and had a late chance
miss tomorrow’s Champions League trip to nick victory but Walder’s drop-goal
to AC Milan, despite making suggestions attempt was low and wide.

Results
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email sport@cityam.com
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