Issue 1,394 Thursday 2 June 2011

BUSINESS WITH PERSONALITY FREE

www.cityam.com

STORM CLOUDS IT’S A FIFA

FARCE
GATHER OVER FA FAIL
TO STOP
BLATTER
THE ECONOMY
■ Slowest US and UK ■ Inflation pressures ■ Yields on 10-year US
VICTORY
P30
factory activity since start to feed through government bonds fall
September 2009 into British wages to three per cent
▲

WORLD ECONOMY
BY JULIAN HARRIS
STORM clouds gathered over the global
economy yesterday, as a raft of gloomy data
poured doubt on the strength of the UK
and world recovery.
Yields on 10-year US government bonds
sank below three per cent for the first time
in over six months, after growth in factory
activity slowed to its most sluggish rate
since September 2009, and American jobs
figures proved desperately disappointing.
The Dow also reacted badly, shedding
279.65 points – its biggest one-day loss in a
year.
In the UK, manufacturing activity in
May recorded its slowest growth since
September 2009, hammering the pound.
“Sterling has taken a major hit, drop-
ping by almost a cent against the US dollar,
and by half a cent against the euro,” com-
mented Richard Driver of Caxton FX.
The UK’s economic weakness is today
compounded by signs of second-round
inflationary effects, with private pay settle-
ments hitting three per cent according to
Incomes Data Services.
One in ten pay settlements in the com-
mercial sector are resulting in raises of
more than four per cent, the data showed.
Inflation is running at 4.5 per cent on
the CPI measure, over twice the target rate.
Sluggish growth and spiralling inflation
are piling greater pressure on the Bank of Chancellor Osborne faces
England, and chancellor George Osborne. the dilemma of a weak
“The disappointing set of figures is further economy and growing
evidence that last year’s economic recovery is price pressures.
stalling,” said Labour MP Angela Eagle.
The UK factory figures came “against a
darkening global backdrop, with energy
prices stubbornly high and global manu- the Bank of England announced, down to dipped to a seven-month PMI low of 54.6,
facturing output beginning to look some- 45,166 in April, from 47,145 in March. while a separate PMI survey reflected a
what shakier,” according to Mark Lee of And confidence among UK businesses slowdown in the Chinese manufacturing –
Barclays Corporate. slipped back in May, after April’s bounce, a down to 52, from 52.9 in April.
Output for British factories fell to 49.9 in business barometer by Lloyds revealed. Meanwhile the Australian economy
Markit’s purchasing managers’ index (PMI) Manufacturing in the US sank to a PMI shrank by 1.2 per cent in the first-quarter of
for May, while the headline rate dropped to reading of 53.5 in May according to ISM, the year, hit by floods and cyclones.
52.1 – down nearly 10 points since the while an ADP survey showed private sector ALLISTER HEATH: P2
beginning of the year. Figures below 50 job growth of just 38,000 – massively below
indicate economic contraction. expectations for 175,000 new jobs. Certified Distribution
Mortgage approvals fell further in April, Factory activity across the Eurozone also 04/04/11 - 01/05/11 is 103,899

FTSE 100 ▼ 5,928.61 -61.38 DOW ▼ 12,290.14 -279.65 NASDAQ ▼ 2,769.19 -66.11 £/$ ▼1.63 -0.02 £/¤ 1.14 unc ¤/$ ▼1.43 -0.01
 2 News
Recovery enters an uncertain phase
EDITOR’S LETTER
ALLISTER HEATH
FOR the first time for almost 18
months, I’m worried about the eco-
nomic recovery. A number of key UK
and global indicators released yester-
day suggest that the Western nations
are slowing again, with Britain not
immune from the bad news. The
biggest change seems to be a slow-
down in manufacturing: after power-
ing the global bounce-back on the
back of recovering trade and Asian
demand, producers are seeing growth
weaken significantly. In part, this is
because of a cost explosion, led by oil
prices, but there are also other factors
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WHAT THE OTHER PAPERS SAY THIS MORNING
FORMER TESCO CHIEF PUTS MONEY
INTO NICOTINE
A medical devices group developing
non-tobacco nicotine delivery systems
has won the backing of Sir Terry
Leahy in the latest private investment
by the former Tesco chief executive
since he retired in March. Sir Terry
has put an undisclosed sum behind
Kind Consumer, a start-up that will
announce on Thursday a commercial
partnership with Nicoventures, a sub-
sidiary of British American Tobacco
devoted to the marketing and sale of
non-tobacco consumer products.
WATCHDOG PROBES PEEL MOVE FOR
PINEWOOD
The Office of Fair Trading has
launched an investigation into the
proposed acquisition of Pinewood
film studios by Peel Holdings, the real
estate investment company owned by
property magnate John Whittaker.
at play, including a continuing hous-
ing crisis in the US. This may just be a
blip of the kind recoveries inevitably
see – we will only know for sure in a
couple of months’ time. But US
investors panicked yesterday, buying
Treasuries and pushing the yield on 10-
year bonds back under three per cent
for the first time in ages.
Until now, I was on the more “opti-
mistic” side of the UK debate – of
course, a relative concept which these
days means decent job creation and
GDP growth of 0.5 per cent per quarter.
There has been much scare-mongering
and nonsense, mainly by those trying
to claim that the economy was about
to implode because of cuts. But with a
net 416,000 jobs created in the UK over
the past year – and well over that num-
ber created in the private sector – the
recovery has been decent so far. It has
certainly been much stronger than
most commentators have acknowl-
edged – but in their defence, this has
been camouflaged by the reality that
out-of-control inflation and higher
TMX details
failed merger
EXCHANGES
▲
BY HARRY BANKS
TMX, Canada’s leading stock exchange
operator, held talks with a third party
for nearly a year before they were
derailed by regulatory and valuation
concerns and before more fruitful
talks ramped up with London Stock
Exchange (LSE).
According to a management infor-
mation circular yesterday, which urges
shareholders to approve LSE’s takeover
proposal, TMX said it held on-again-off-
again talks with a third-party from
February to November 2010. Talks
were formally terminated on 25
January this year.
“TMX Group and the third party
were not in agreement with respect to
proposed undertakings regarding net
benefits to Canada,” the parent of the
Toronto Stock Exchange said in a 731-
The competition watchdog told the
Financial Times that it was looking at
the provision of studio facilities for
television production resulting from
a sale. Possible outcomes include
referring the case to the Competition
Commission.
PUBLIC SERVICE REFORM PLAN ON
HOLD
David Cameron’s plan to free public
services “from the grip of state con-
trol” has been put on hold until July,
in the face of opposition from the
Liberal Democrats and public con-
cern over the privatisation of health
and social care. The plan to transform
public services through greater use of
private providers, mutuals and social
enterprises has already been cut back
and is now the subject of coalition
wrangling. Downing St insiders con-
firmed on Wednesday that the vaunt-
ed white paper on reform – originally
set for publication in January – is now
unlikely to be published until mid-
July.
taxes have cut take-home pay for
almost all Brits.
The additional problem now is that
manufacturing is also slowing, as
demonstrated by yesterday’s purchas-
ing managers’ index (PMI) reading of
just 52.1 (this suggests growth is now
pretty feeble). And in a development
which will terrify the Bank of England,
pay rises are starting to accelerate for
the first time, with the average settle-
ment in the private sector reaching
three per cent, according to figures
out today from Incomes Data Services.
While temporarily good news for work-
ers, it suggests that an inflationary
price wage spiral is building, confirm-
ing the fears of those who have long
been arguing for higher interest rates.
All of this suggests that the second
quarter will see a slowdown, exacerbat-
ed by the extra Bank Holiday and the
fact that car makers are still suffering
component shortages because of the
Japanese earthquake. The official view
that the economy merely stagnated
overall during the fourth and first
page circular to be mailed to share-
holders. Reports suggested that the
third party was Nasdaq OMX Group.
TMX Group said the premium
offered to its stock price had also erod-
ed over the period of the talks, with no
move from the third party to raise its
offer.
“In addition, as initial discussions
with LSE relating to a merger of equals
commenced and progressed, TMX
Group considered that such a transac-
tion was superior to an acquisition by
the third party and considerably more
likely to be achievable.”
LSE chief executive
Xavier Rolet faces a
TMX shareholder vote
on 30 June on its
$3bn takeover bid
CHARITIES PREPARE TO STEP IN IF
LEADING CARE HOME FIRM FAILS
Charities are drawing up plans to
take over care homes from the
biggest private provider, which has
run out of money. Industry insiders
told The Times yesterday that some of
the biggest rival care home operators,
including charities and private com-
panies, are planning to take over the
homes.
GOLDMAN TRADER’S DEFENCE FOUND
ON DISCARDED LAPTOP
Lawyers for Fabrice Tourre, the
Goldman Sachs employee facing
Securities and Exchange Commission
allegations of fraud, are questioning
why their client has been singled out
as the only individual to face charges
over mortgage-backed securities. The
New York Times claims to have
obtained the information from a dis-
carded laptop found among rubbish.
quarter is clearly overly-pessimistic: it
is based on a supposedly dire perform-
ance by the construction sector in the
first quarter of the year, but this is
explained by a dubious new measure-
ment method. The industry has said
that its performance was actually
much better. The figures are also refut-
ed by the fact that the private sector
created a large number of jobs during
that six months period – zero growth
would have signaled an unlikely slump
in productivity. Eventually, the official
stats will be revised up. But all of this is
primarily of historic interest – econom-
ic conditions appear to have become
more difficult since April, even though
the manufacturers’ trade group the
EEF has noted that credit is becoming
much easier to obtain.
It is not time to panic yet. One
month’s data doesn’t mean very
much. But at the very least the eco-
nomic recovery is now entering a more
uncertain phase.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Deloitte chooses chairman
FINANCIAL SERVICES
▲
BY JULIET SAMUEL
DELOITTE Touche Tohmatsu is prepar-
ing to name its new international
chairman today, expected to be Steve
Almond, a long-time managing direc-
tor of its global division.
He will take over from John
Connolly, who has just left the role, at
a time when the audit industry is fac-
ing legal challenges and regulatory
hurdles. Recently in the UK, the
Treasury Select Committee slammed
BHP BILLITON WINS £352M
AUSTRALIAN TAX DISPUTE
BHP Billiton, the largest mining com-
pany in the world, has won a Au$540m
(£352m) dispute with Australian tax
authorities. The high court of Australia
has upheld a federal court ruling that
BHP properly wrote off debt after build-
ing a plant that manufactured bri-
quettes from iron ore particles at
Boodarie in Western Australia.
HEALTH SECRETARY: FUNDING CRISIS
THREATENS THE NHS
The National Health Service is facing a
£20bn-a-year funding black hole that
will threaten its founding principles
unless the Coalition’s controversial
reforms are brought in to prevent it,
the health secretary has warned.
Andrew Lansley says the core values of
the NHS are under threat as never
before from a “financial crisis” that
will see health spending double.
CITYA.M. 2 JUNE 2011
NEWS | IN BRIEF
Banks buy £36.1bn in new gilts
Demand from banks eager to shore up
their liquidity buffers has been a key
supportive factor for gilts over the
past year, Bank of England figures
revealed yesterday. UK banks and
building societies bought £36.1bn of
gilts in the six months to April, up
from £11.4bn in the prior six-month
period. Overseas buying of gilts mean-
while fell sharply. “Banks are buying
gilts partly under regulatory pressure
but also because private sector
demand for bank loans remains weak,”
Henderson’s Simon Ward said.
Delancey buys up Minerva shares
Investment firm Delancey and its part-
ner Area Property Partners have built
up their stake in their takeover target,
Minerva to become its second-biggest
shareholder. The pair bought up 12.5
per cent of Minerva’s stock yesterday
at 118p per share from minority own-
ers, which will deter rival bidders from
entering the fray. APP and Delancey,
which is run by Jamie Ritblat, have
offered £194m to buy the property
developer and have been negotiating
the deal since January.
Steve Almond
will take up the
post of chairman
at one of the
world’s biggest
audit firms
the audit industry as an “oligopoly”.
Almond’s appointment follows the
creation of 63 new partners at the
firm in addition to the recruitment of
30 more, which has now brought the
total number to 953.
Almond, who was speaking to the
FT, said that his role as chairman will
involve coordinating Deloitte’s lobby-
ing effort globally so as to inform regu-
latory changes.
“We have to be prepared to speak
with a global voice to the world of reg-
ulators,” he said.
EUROPE'S STRESS TESTS TO BE DELAYED
The results of Europe’s latest round of
bank “stress tests” will be delayed until
July as European regulators worry that
banks and their national supervisors
submitted overly optimistic data,
according to people familiar with the
matter. The European Banking
Authority previously had planned to
publish the test results later this
month.
GOOGLE MAIL HACK BLAMED ON CHINA
Google said Chinese hackers targeted
the Gmail accounts of hundreds of
prominent people in a fresh computer
attack certain to intensify growing
concern about the security of the
internet. The victims, including senior
US government officials, military per-
sonnel, Chinese activists and journal-
ists, were tricked into sharing their
passwords with “bad actors” based in
China, Google said.
CITYA.M. 2 JUNE 2011
Moody’s cuts
Greek rating
on default fear
▲
EUROZONE
BY JULIET SAMUEL
NEGOTIATORS in Athens were scram-
bling to avoid having to meet the full
cost of a second Greek bailout as
Moody’s downgraded the sovereign
again yesterday. But the euro stayed
near three-week highs on the expecta-
tion that a deal will be reached by the
end of the week.
Moody’s said that Greece’s new rat-
ing means that there is “an even
chance of default over the rating hori-
zon”. Half of others on the same rating
have defaulted, the agency said.
And in the first public signal that
financial institutions are beginning to
write off Greece’s debt, Nord LB, a
German state-owned lender, used its
first-quarter results to prepare
investors for losses, saying it has taken
“precautionary actions” because “it is
likely that there will be a haircut on
Greece’s national debt”.
The IMF, EU and ECB (or “troika”)
are now trying to persuade some of
Greece’s creditors to roll over their
debt or to buy more of Athens’ bonds,
potentially using some of the state’s
assets earmarked for sale as collateral.
If the troika cannot succeed in intro-
ducing even a mild form of burden-
sharing, it will have to find cash for all
of Greece’s €60-80bn (£53bn-£70bn)
funding shortfall for 2012-2013 itself.
The ECB has been strictly opposed to
imposing losses on creditors other
than Eurozone member states for fear
it could cause chaos in financial mar-
kets due to widespread exposure to
Greek debt – not least in the ECB’s own
holdings.
By contrast, the Irish government is
pressing ahead with plans to impose
losses on bondholders of its nation-
alised banks. All have now all pub-
lished plans to favour state-owned
equity over private debt.
Meanwhile, Portugal sold €850m of
four-month bonds yesterday, at the
lower end of its €750m-€1bn target
range. But it had to pay an average of
30 basis points more for the cash than
during the last equivalent sale despite
securing a €78bn bailout last month.
News 3
EU expenses
include €7.5m
on private jets
▲
EUROZONE
BY JULIET SAMUEL
EUROCRATS spent €7.5m (£6.6m) on
private jets in four years and €20,000
on gifts during 2008-2010, including
Tiffany jewellery and fountain pens,
according to data collected by the
Bureau for Investigative Journalism
The figures, which were mostly
obtained via parliamentary questions
asked by independent Austrian MEP
Martin Ehrehauser, also show that
that European Commission president
José Manuel Barroso racked up a
€28,000 bill during a four-night stay
at the New York Peninsula Hotel with
eight assistants.
The EC that he runs also blew
€300,000 on “cocktail parties” in 2009
alone. One event subsidised by EU tax-
payers cost €75,000 and promised
guests “state-of-the-art technology,
challenging art, combined with
trendy cocktails, surprising perform-
ances and top DJs”.
The figures will stoke controversy
as the EU demands a 4.9 per cent
budget increase despite a period of
austerity cuts in member states.
Ehrehauser, MEP, said: “It is
extremely disappointing to see how
easily the Commission spends the EU
taxpayers’ money... This makes the
gap between citizens and the EU
EC president José Manuel Barroso racked up a €28,000 bill at the New York Peninsula Hotel bureaucracy even bigger and deeper.”
 4 News CITYA.M. 2 JUNE 2011

Vodafone boss Colao sees his

remuneration rise to £2.7m
from £7.54m to £7.7m in 2010. strong cash generation but taking a
▲

TELECOMS
BY STEVE DINNEEN
VODAFONE chief executive Vittorio
Colao saw his remuneration rise 2.5
per cent to more than £2.7m last year.
His basic pay rose from £975,000 to
£1m in 2010, with payments from his
incentive scheme rising from £1.26m
to £1.32m. For the current financial
year, Colao’s base salary will rise 6.4
per cent to £1.11m. The total pay of
Vodafone’s four top executives rose
Colao has pursued a strategy of
offloading non-core assets, announc-
ing a string of multi-billion pound
sales, including cashing in its £7bn
stake in France’s SFR.
Vodafone said its guidance on oper-
ating profit for the coming year is
between £11bn to £11.8bn, down from
£11.8bn last year, taking into account
the loss of profits from the SFR stake.
Free cash flow is expected to be
between £6bn to £6.5bn, reflecting
hit from lost dividends in SFR and
China Mobile, of which it also sold out.
The firm also announced it will
tweak its executive incentive package
next year to give equal weight to serv-
ice revenue and profit.
Meanwhile, Vodafone saw its stock
tumble 4.4 per cent to 161.6p yester-
day, possibly because a World Health
Organisation (WHO) report claimed a
potential link between mobile phone
use and cancer.

Vodafone’s Vittorio Colao has disopsed of non-core assets Picture: Micha Theiner/City A.M

Centrica may
shut field due
to tax raid
▲

ENERGY March Budget, which raised taxation

BY MARION DAKERS up to 81 per cent for certain oil and
gas producers to fund a petrol duty
BRITISH Gas parent Centrica said yes- cut.
terday that it will scale back or even “We will continue to monitor the
halt production at one of its market closely to make production
Morecambe gas fields thanks to a decisions and if it makes more eco-
massive tax hike on energy produc- nomic sense to buy gas for our cus-
tion. tomers in the wholesale market we
Centrica said its South Morecambe would limit South field production,”
field’s future was particularly uncer- the spokesman said.
tain, though its North Morecambe Investments worth £12bn have
field is due to come back onstream been put at risk by the Budget meas-
shortly. ure, according to industry body Oil &
“Profitability of Morecambe South Gas UK.
field can be marginal and so we ANALYSIS l Centrica
expect this field to operate on a more
intermittent basis in future,” a
340 p 316.70
335 1 June
spokesman said yesterday.
330
The firm said gas prices were cur-
325
rently not high enough to justify full
320
production at the site in the Irish Sea.
The utility had previously warned 315

London to that the fields could be shut altogeth-

er unless the government rethinks its
tax hike, first implemented in the
310
305
300

Copenhagen
7 May 25 Mar 11 Apr 8 May 26 May

from
Twitter most popular among
£
33 .99 single
inc. taxes
African American internet users
quarter of African American internet
▲

TECHNOLOGY
TWITTER has increased its reach in the
US by five per cent of internet users in
six months, according to data released
by the Pew Research Centre.
The site is now used by 13 per cent
of Americans who are online, versus
We fly from Gatwick and Stansted. Price correct as at 24 May 2011 for travel between 6 June and 4 August 2011. eight per cent in November last year.
Variable charges for hold baggage apply and some payment methods attract a handling fee. See website for details. The gap between usage among
whites and non-whites has also
increased, the research found, with a
users visiting the site versus 19 per
cent of Latinos and just nine per cent
of whites.
The site’s reach among 25-34-year
olds has also increased, rising from
nine to 19 per cent of online
Americans – more than its usage
among 18-24-year olds, 18 per cent of
whom now use Twitter.
The research surveyed 2,277 adult
internet users.
CITYA.M. 2 JUNE 2011 News 5

Cameron drawn into the

Southern Cross furore
withhold some rental payments. Southern Cross said yesterday it

▲
HEALTHCARE
BY DAVID HELLIER
THE Prime Minister’s spokesman
said yesterday the government would
ensure that elderly residents of
The heavily-indebted company,
which provides residential and nurs-
ing care for about 31,000 people, said
it would stop paying nearly a third of
its rental bill while it attempts to
remained hopeful the plan would
succeed, adding that negotiations
with its landlords would continue
through the summer.
“We are confident a critical mass

What do you think should be done
about rising inflation in the UK?
THIS week we’re asking members of
our readers’ panel, recruited in asso-
ciation with PoliticsHome.com, to
have their say on inflation in the UK.
To tell us your views on when the
MPC should raise interest rates, how
damaging you think above-target
inflation has been to the UK economy
Southern Cross care homes were
properly looked after should the
embattled company collapse.
thrash out a wider financial rescue
package.
“Our concern is to make sure that
will support the deal,” a spokesman
said.
But City A.M. reported yesterday
Southern Cross believes it can win
support from enough of its landlords
there is effective protection in place
for residents who might be affected,”
that Bondcare, the owner of 40 of
Southern Cross’s 750 homes, will not
to stay in business after it decided to Cameron’s spokesman told reporters. support the rescue proposal.
and more, apply to join the panel at
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 6 News CITYA.M. 2 JUNE 2011

Landlords bullish
Lloyds will be WOULD YOU CONSIDER BUYING A PROPERTY TO LET?

HENRY YORKE | MARKETFORM

Interviews by Phoebe Torrance and Shiba Babamiri

on the future of
hit by fall in “No I wouldn’t. It’s always going to be a risk
buying rather than renting. Demand will be
there but if it’s not high enough it could be
very hard to cover the cost of the mortgage.”
rental properties

house prices
PROPERTY

▲
DESPITE the downbeat outlook on
MICHELLE BOYD | CATLIN house prices from analysts at
Morgan Stanley (see left), UK land-
lords are increasingly optimistic
“Yes. It is the right time to buy now and the about their buy-to-let prospects.
negative equity risk is worth taking. There is Forty-nine per cent of landlords
▲

PROPERTY
BY ELIZABETH FOURNIER
LLOYDS would be the hardest hit of
the UK banks by an expected decline
in house prices over the next two
years, according to analysts at
Morgan Stanley.
A note released yesterday by
researchers at the bank painted a
more pessimistic view of the housing
market than analysts had previously
predicted, with a 10 per cent drop in
value from the last quarter of 2010 to
the end of 2012.
The note identifies Lloyds as the
most exposed listed bank to UK mort-
gages, due to the fact its loan book is
58 per cent mortgages, of which
Morgan Stanley expects 27 per cent
(£90bn) of these to be in negative
equity by Dec 2012.
As a result, Lloyds would be hit
hardest by the problems that would
face all UK banks if prices fall, with
higher impairments in the mortgage
book, higher capital charges and ele-
vated funding costs stretching bal-
ance sheets across the board. think that now is a good time to
Morgan Stanley says that Lloyds’
also a lot of competition for rental properties invest in new properties, according
profits could be hit by loan losses of so it’s a good idea to buy now.” to research by LSL Property
up to £1.4bn in 2011-12, compared to Services.
£300m in 2010, and has cut its earn- Just one per cent are looking at
ings estimate for the bank by seven
per cent. Morgan Stanley now expects
STEVE MILLER | DANKSE reducing their portfolio, with the
vast majority confident that
21 per cent lower profit before tax for demand from tenants will grow
Lloyds than consensus estimates in “I would consider it because it’s a good mar- over the next 12 months.
2012. ket at the moment. I’m not put off by negative Landlords’ optimism is being
Analysts at the bank see a compara- buoyed by the growing number of
tively much smaller impact on equity in buying a property in London because people remaining in the rental
Barclays, HSBC and RBS, which all
have loan book exposure to mort-
the recovery is usually very quick.” market compared to before the
downturn. In the last 12 months
gages of well below 25 per cent. 185,600 fewer first-time buyers have
Morgan Stanley’s house price revi- ANALYSIS l Expected UK mortgage negative equity by Dec 12 entered the market than the aver-
sions are based on a weakness in 100 age figures for 2005-8.
household income growth, rising £bn “Optimism among landlords is
90 91.4 250%
mortgage rates and overambitious % tnav not only buoyant, but increasing,”
80
valuations. 70 226% 200% said LSL’s David Newnes.
“Demand looks set to be relatively “Soaring rents and climbing
60
unsupportive for prices over the next 150% demand from frustrated first-time
40
year and a half or so,” said the note. 117% buyers are not only making buy-to-
30 92% 100%
“We don’t expect any significant fur- let an attractive proposition for
20
ther increase in availability of higher 11.0 8.3 6.3 6.1 5.3 50% new property investors – but are
loan-to-value mortgages and expect 10 encouraging existing landlords to
20% 14% 7%
only modest improvements in credit 0 0% grow their holdings before proper-
Lloyds RBS SAN UK Nationwide Barclays HSBC
availability more broadly.” Source: Company data, Morgan Stanley Research estimates ty prices increase once more.”

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CITYA.M. 2 JUNE 2011 News 7     

 
 
LONDONERS WARNED OF GAMES DISRUPTION
Spain mulls   

action over "+/
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cucumbers ') 1*
')$ ")*
CONSUMER
"+')

▲
BY KATIE HOPE

THE SPANISH government said
yesterday it was considering
legal action against the author-
ities in Hamburg for wrongly
blaming its cucumbers as the
source of an E. coli outbreak,

which has led to the deaths of
17 people.
“We do not rule out taking
action against the authorities
who called into question the
quality of our products,”
deputy Prime Minister
Alfredo Perez Rubalcaba said.
Spain’s fruit and vegetable
exporters estimate they have
lost more than €200m (£174m)
since the outbreak emerged.
Germany has admitted the bac-
teria did not come from Spain
LONDON workers were yesterday urged to rethink their travel plans during the 2012 as initially reported, but said
Olympics to help avoid overcrowding on the transport network. Transport secretary the decision to issue the warn-
Philip Hammond (pictured above right with London mayor Boris Johnson) said he could ing had been correct as a differ-
not promise transport would not be disrupted during the Games and said people should ent strain of E.coli was present
consider working from home, working flexible hours or changing travel times. in Spanish cucumbers.
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a listing in Shanghai
CONSUMER
▲
BY HARRY BANKS
COCA-COLA, the world’s largest
soft-drink company, said yesterday
it is holding talks with the Chinese
government over a possible listing
in Shanghai, joining other global
firms in testing the waters for a list-
ing in China.
Coca-Cola has said it will commit
$2bn (£1.22bn) of investment into
China and last October opened
three new plants in Inner
Mongolia.
The firm’s lemon-and-lime
flavour Sprite drink is China’s best
selling fizzy beverage.
“We are interested in exploring
the opportunity of listing our stock
on the Shanghai Stock
Exchange,” Geoff Walsh, public
affairs and communications
director for Asia Pacific of
Coca-Cola, said.
“Obviously, we need to bet-
ter understand the regulato-
ry framework and listing
requirements,” he added.
“We continue to have pos-
itive discussions
Chinese government offi-
with
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cials as we look at this opportuni-
@
ty.”
HSBC, Unilever and Standard
Chartered have said they want to
list on the international board,
which was originally slated
to be launched in 2010.
The New York Stock
Exchange is working with
China to launch the coun-
try’s international board
that will allow foreign
firms to list on the main-
land, in a move seen as a cru- FOR MORE NEWS
cial step in developing its
capital markets.
www.cityam.com
 8 News
Northumbrian posts jump in
profit after review of prices
▲
UTILITIES
BY HARRY BANKS
NORTHUMBRIAN Water yesterday
reported a higher annual pre-tax prof-
it, helped by an increase in water and
sewerage charges and steady demand
from its customers.
Pre-tax profit rose six per cent to
£181m in the year to the end of
March, slightly above estimates of
£177.6m. Sales were up five per cent
at £738.1m, in line with estimates.
Water and sewerage charges at its
Northumbrian Water unit, rose in
line with the price review allowance
of five per cent plus the November
2009 Retail Price Index of 0.3 per cent,
the company said, adding that
demand from domestic and industri-
al customers remained steady.
Income from its water and waste
water contracts was up 4.4 per cent,
Northumbrian added.
Last week, peers Severn Trent,
United Utilities and Pennon also
CITYA.M. 2 JUNE 2011
RAMSAY COOKS UP A PROFIT
reported better than expected annual
profits.
Shares in Northumbrian closed
down 1.4 per cent at 357.8p.
Northumbrian shares have added
21 per cent since the end of January
on talk that the Ontario Teachers’
Pension Plan, which has a 27 per cent
holding, could build its stake.
At present levels, we still regard a
bid as a possibility, but not a probabil-
ity,” said Angelos Anastasiou of
Investec who rates the stock a “hold”.
GORDON Ramsay shrugged off the acrimonious sacking of his father-in-law Chris
Hutcheson last October to post an overall return to profit for his companies yesterday.
Cost cuts and the sale of Boxwood Cafe pushed pre-tax profit at Gordon Ramsay
Holdings to £2.05m in the year to August 2010, from £0.57m in 2009, although sales fell
13 per cent to £27m. His international division of newer restaurants cut losses to £1.85m,
leaving Ramsay with an £0.2m overall profit, up from a £7.7m loss in 2009. Picture: REX
Wolseley quiet
on asset sales
▲
CONSTRUCTION profit soared to £131m in the third-
BY HARRY BANKS quarter ended 30 April, from £101m
in the same period last year, broadly
THE world’s biggest building supplies in line with expectations.
company Wolseley yesterday kept Like-for-like revenue rose six per
investors guessing about the future of cent. Revenue growth was strongest
underperforming parts of the busi- in its largest market, the US, as well
ness as it reported strong profit as France and the Nordics, Wolseley
growth driven by its US activities. said, but was partly offset by weaker
Chief financial officer John Martin momentum in the UK and Canada.
said UK builder’s merchant Build
Centre was still under review along ANALYSIS l Wolseley
with other parts of the business and 2200
p 2021.00
played down recent talk that it was 1 June
2150
already up for sale.
The FTSE 100 company indicated in 2100
March it was looking at alternatives 2050
for its French plumbing and heating
unit Brossette including a possible 2000
disposal. Martin said they would
1950
update the market on the sale process
in October. 1900
The firm said underlying operating 7 May 25 Mar 11 Apr 8 May 26 May
ANALYST VIEWS: IS WOLSELEY HEADING IN
THE RIGHT DIRECTION? Interviews by John Dunne
TONY SHEPARD | CHARLES STANLEY
“ The group is finishing the year on a strong note and it is still undergo-
ing a transformation. There was no comment from the company on further dis-
”
posals. Longer-term, there should be opportunities to improve the group profit
margin. Our recommendation remains “accumulate”.
ADRIAN KEARSEY | EVOLUTION SECURITIES
“ Welcome news on top-line like for likes and earnings, which is likely to
be well received by investors. However, earnings forecasts are unlikely to material-
”
ly change and we retain our “neutral” recommendation on valuation grounds..
There was no mention of the rumoured sale of Build Centre.
KEITH BOWMAN | HARGREAVES LANSDOWN
“ On the downside, underlying costs have risen, the termination of gov-
ernment sponsored stimulus schemes has made year-on-year comparatives more
”
difficult. However, with the shares having outperformed the FTSE 100 index by
over 60 per cent the market consensus opinion denotes a strong “hold”.
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 The Capitalist
10
REVEALED: HOW RICHARD DESMOND
FIRST DRUMMED UP NEW BUSINESS
EVERYONE has to start somewhere.
Even Richard Desmond, the media
baron with a personal fortune of
£950m who bought Channel Five last
July with some spare change he
found down the back of his sofa.
Desmond started on the road to
founding his media empire early –
aged 13, in fact, when he took his first
job as cloakroom assistant in the
renowned music venue Manor
House, for which he was paid the
princely sum of £1 per night.
The North London pub was where
the young Desmond first met the
stars who would later form the main-
stay of his celebrity magazine OK! –
Rod Stewart, Elton John – and it was
also the scene of his chats between
breaks with the percussionist in Zoot
Money and the Big Roll Band, who
persuaded the young Desmond to
EDITED BY CITYA.M. 2 JUNE 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
take drumming lessons.
The rest – via numerous colourful
episodes – is history, after Desmond
went on to found his charity band The
Crusaders with The Who’s Roger
Daltrey, which has made millions for
causes such as Desmond’s Children’s
Eye Centre at Moorfields Eye Hospital.
The tale is one of the many anec-
dotes in Desmond’s This Is Your Life-
style interview with Tania Bryer on
This is your life: Richard Desmond drumming with his band The Crusaders
CNBC, to be aired at 10pm on 15 June, since the bells of St Paul’s Cathedral
where the enigma reveals what moti- in 1878, described by their makers as
vates him, why he will never slow “a modern example of true harmonic
down and the reason he likes music bell tuning”.
so much – it is, apparently: “Because The bells were donated by business-
it helps me get away from it all.”
No word yet, though, on whether
Desmond will address the rumours
swirling around the City that he is
considering either selling his four
national newspapers or plotting a
merger with Lord Rothermere’s Mail
Newspapers, as advised by analysts at
Barclays Capital and Goldman Sachs…
OFF THE MENU
CORPORATE entertaining can be a
stressful business – just ask Royal
London Asset Management, whose One of the 12 new bells arrives at Cornhill
trip to the BNP Paribas Tennis Classic
at the Hurlingham Club has become a man Dill Faulkes and 60 other
logistical minefield. donors, including members of the
“When I checked to see if any of my Ancient Society of College Youths, the
guests had any dietary requirements, organisation that has provided most
I meant foods they can’t eat for aller- of the ringing in the City of London
gy or religious reasons, but they took since the body was founded in 1637.
my question to mean things they just
don’t like,” said an RLAM mole.
One client doesn’t like seafood,
another refuses to eat sultanas or
BARKING MAD
BANK Holiday Monday brought enter-
mushrooms, and a third is “not tainment for Richmond-based City
drinking alcohol in June”. Which is girls, boys… and dogs, when the
a problem, because the date of the Gaucho restaurant in Richmond
planned client “entertainment” is launched “doggy Monday”, a canine
a week next Tuesday. friendly evening where dogs were
“welcomed” by soft cow toys.
You couldn’t make it up – even
THAT’S NOT CRICKET Hudson, the labradoodle owned by
MERVYN King is a man of many tal- Gaucho Restaurants’ operations
ents: on 23 June, the Bank of England director Martin Williams showed up
governor and cricket fan will leave for a T-bone steak.
Threadneedle Street to spend the day
teaching state school children maths
by using cricket analogies.
Strange, but true – The Capitalist
MILE HIGH CLUB
HERE’S an early contender for
hears King (below) will October’s biggest Bill of the Week: a
help out in a “cricket- Michelin-starred dinner for ten
themed maths class served in a pod of the London
where pupils learn co- Eye, now on sale for £15,000.
ordinates from the posi- The six-course dinner is being
tions of players on a offered from 3 to 6 October as
cricket field”. part of the London
King’s involvement is Restaurant Festival.
part of the Chance to Shine Parties will start their
sports development campaign evening with drinks
on Brit Insurance National at the Savoy, followed
Cricket Day – no doubt GCSE by a six-course din-
maths grades will rocket. ner inside a London
Eye capsule cooked
by chefs including
BELL RINGERS Angela Hartnett
LISTEN out at 12.45pm and Marcus
today, when the new ring of Wareing, rounded
12 bells at St Michael’s off with an
Cornhill will sound out for overnight stay in
the first time in the the Savoy.
Ascension Day service. To put a new
The bells, which were con- spin on client
secrated by the Bishop of entertaining,
London, are the first new com- please call 020
plete ring of 12 bells in the City 7259 0940.
CITYA.M. 2 JUNE 2011 Consumer News 11

Home Retail execs in line for

pay hikes despite profit drop

▲
RETAIL
BY JOHN DUNNE
HOME Retail Group executives are in
line for pay rises despite a tough year
in which the company issued a profit
warning.
The owner of Homebase and Argos
proposed in its annual report that
chief executive Terry Duddy and
finance director Richard Ashton
Terry Duddy (left) and Richard Ashton have been recommended for salary rises should receive raises.
Under the remuneration proposal,
to be presented to shareholders on 30
June, Duddy would receive a 2.2 per
cent basic salary rise from £820,000
to £838,000. Ashton’s basic salary
would jump from £420,000 to
£480,000. Other top executives would
be in line for a 2.3 per cent rise, the
report said.
However, with a series of target
related bonuses, total packages could
be four times their basic salary.
The company pointed to a pay
freeze over the last three years as
part of the reason for the planned
rises for 2011/12. It also said that the
company’s performance had been rel-
atively strong considering the tough
consumer climate. The company
added: “We believe that a competitive
remuneration package is essential.”
For the year to 26 February, cata-
logue retailer Argos saw operating
profit dive by 18 per cent to £219m.

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▲

RETAIL
BY JOHN DUNNE
ELECTRICALS retailer Dixons has
agreed the sale and leaseback of its
Nordic distribution centre in Sweden
in a bid to reduce its debts.
Dixons, which owns the Currys and
PC World brands, has exchanged con-
tracts with a syndicate of investors
with a deal due for completion on 23
June.
The total cash payable is SEK600m
(£53m).
The proceeds of the sale will be
used to help keep the company’s
£200m debt pile under control.
Dixons was advised by DTZ in the deal
for the centre in Jönköping.
The company said in a statement:
“The proceeds of the sale will be used
for general corporate purposes,
including offsetting drawings on the
revolving credit facility and for repay-
ment of the 6.125 per cent November
2012 bonds.”
Dixons, which is planning a fur-
ther £50m of cuts over the next three
years, has been hit by a decline in
sales across most markets but its
Nordic business has been thriving.
While group sales at Dixons fell by
former was the Nordic region, which
grew underlying sales by nine per
cent.
The company has seen the iPad 2
boost sales more recently, after it was
hit by two profit warnings. Dixons
now expects to report pre-tax profit of
around £85m.
Dixons, which also runs UniEuro in
Italy, Kotsovolos in Greece and Elkjop
in Nordic countries, has an estimated
22 per cent of sales of consumer elec-
trical goods in Britain.
It has recently opened new format
stores in an attempt to breathe new
life into the business, which employs
over 40,000 people. Its shares fell 6.1
per cent yesterday.
ANALYSIS l Dixons Retail
20 p 18.45
1 June
18
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RETAIL LEISURE
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 12 News
Odeon buys Irish Sega exec warns of skills shortage
cinemas for £60m
▲
LEISURE
ODEON & UCI, the cinema chain
owned by Guy Hands’ private equity
house Terra Firma, bought nine cine-
mas in Ireland and two build sites for
new complexes for £60m yesterday.
The chain used some of the pro-
ceeds of its recent £500m bond issue
on the purchase, which will add 77
new screens to its Ireland operation.
Hands raised a for-sale sign over the
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EXCLUSIVE
BY STEVE DINNEEN
SEGA boss Mike Hayes has warned
the UK could be heading for a digi-
chain’s head last month with a hoped- tal skills shortage.
for £1.2bn asking price, but City A.M. In an interview with City A.M. the
understands it is still unclear whether European boss of the gaming giant
an offer at that level will be made. said he is forced to hire a lot of staff
More bolt-on purchases of cinemas from outside the UK because of a
and sites are expected ahead of a sale chronic lack of programming skills.
of the group. He said: “We could face a skills
Terra Firma said the Irish cinema shortage in this country. The pro-
market is one of the strongest in gramming skills being taught in the
Europe, with average visits currently UK are very poor.”
at almost twice the UK’s level and
above the US.
He said he is “encouraged” by the
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firm in Germany social failings
interest being shown by the govern-
ment but warned that even if action
is taken now it could still take years
to catch up.
The UK is the world’s third
biggest gaming hub, with exports of
more than £2bn a year – “there
aren’t many things you could say we
are third best at”, said Hayes.
He said he would welcome tax
breaks in the UK, similar to those in
countries such as Canada, but said
Sega has no plans to shift its UK pro-
duction base.
He described the UK games scene
as “vibrant”, adding that digital
Nokia denies
Microsoft is
lining up offer
▲
TELECOMS
BY STEVE DINNEEN
BELEAGUERED Nokia was yesterday
forced to deny speculation it is in talks
to sell its mobile phone business to
Microsoft.
The Finnish manufacturer
described the report – by the same
industry insider who predicted its tie-
up with the software giant earlier this
year – as “100 per cent baseless”.
Eldar Murtazin says Microsoft is lin-
ing up a massive $19bn (£1.6m) buy-
out of the firm, eclipsing the $8.5bn it
paid last month for Skype.
The rumours came as Nokia’s shares
continued to fall after Tuesday’s 18 per
cent collapse. Nokia ended the day 7.1
per cent lower, rallying slightly on the
bid talks but still down following the
drastic announcement that it has
abandoned its recently-set profit tar-
gets.
It said on Tuesday weak sales and
price cuts had hit its already declining
sales and said it may not make a profit
this quarter. Microsoft’s shares were
dragged down 2.3 per cent by the spec-
ulation.
Microsoft and Nokia struck a deal
Lenovo buys PC Google admits
▲
TECHNOLOGY
CHINESE computer maker Lenovo has
agreed to buy German electronics
retailer Medion for around $900m
(£551.5m), boosting its market share
in Europe.
The acquisition, Lenovo’s biggest
since its purchase of IBM’s PC busi-
ness six years ago, comes four months
after Lenovo signed a joint venture
deal with NEC Corp to sell laptops in
Japan. The deal will double its share
of the German PC market to 14 per
cent, Europe’s biggest economy, and
give the combined company a share
of about 7.5 per cent in the western
European PC market, Lenovo said.
CITYA.M. 2 JUNE 2011
downloads
are becom-
ing an
increasing-
ly impor-
tant part of
the games
market
place, now
totalling 15
per cent of
Sega’s
sales.
MIKE HAYES
earlier this year in which the Finnish
company agreed to use Windows
Phone 7 software on its phones, effec-
tively killing off its Symbian operating
system.
Nokia chief executive Stephen
Elop – an ex-Microsoft executive – mas-
terminded the deal alongside his for-
mer boss Steve Ballmer.
Both men have come under pres-
sure from investors in recent weeks as
they struggle to revive the respective
fortunes of their formerly dominant
companies. Ballmer has stressed the
importance of mobile devices after see-
ing Google’s Android rise to dominate
the smartphone market and Apple
corner the tablet sphere.
ANALYSIS l Nokia
10.60 € 4.77
1 June
9.08
7.55
7 May 25 Mar 11 Apr 8 May 26 May
TECHNOLOGY
GOOGLE has revealed it tried unsuc-
cessfully to team up with Facebook
and admitted it “screwed up” by fail-
ing to make inroads into the booming
social network market.
Executive chairman Eric Schmidt
said Facebook had rebuffed his
entreaties to do a deal, while
acknowledging he had not pushed
hard enough to address the rising
threat posed by social networks dur-
ing his tenure as chief executive.
“I knew that I had to do something
and I failed to do it,” Schmidt said.
“A CEO should take responsibility,”
he said. “I screwed up.”
CITYA.M. 2 JUNE 2011 News 13

FORD AND GM SAY US CAR SALES ARE SLOW

BDO censured
De La Rue hit by FSA over
as Oberthur Shore takeover

rules out bid

ENFORCEMENT

▲
THE Financial Services Authority
(FSA) yesterday slammed accountancy
firm BDO for failings while acting as
sponsor to Shore Capital’s planned
takeover of Puma Brandenburg.
It is the first time the FSA has
▲

MANUFACTURING we have no intention of making an rapped the knuckles of a sponsor for

BY JULIET SAMUEL
BANKNOTE printer De La Rue saw
more than £20m wiped off its market
value yesterday after its rival, smart-
card maker Oberthur Technologies,
asserted that it would not be making
another bid for the firm.
But in a sign that it still has its eye
on the troubled printer, Oberthur also
announced that it has snapped up De
La Rue’s former chief executive James
Hussey as an adviser to its chairman.
Speculation had mounted that
Oberthur could be preparing for
offer for De La Rue,” he said. not providing adequate information
His recruitment of Hussey, however, about a deal. However, the FSA does
will be taken as a sign that Oberthur is not have the power to dish out a fine,
preparing a more long-term strategy it said.
to take over its rival. Oberthur, which
is privately owned by the Savarre fam-
ily, mounted an aggressive campaign
to persuade De La Rue shareholders to
sell earlier this year, including an
announcement that the firm had lost
OFT lobbies for
a major client – the Reserve Bank of
India – and criticism of its manage-
ment for not informing the market.
loan rule change
De La Rue rejected the bid out of
hand and said that the contract with
ENFORCEMENT

another takeover offer following its
failed bid in February. That could have
seen the firm raise capital and come
back to buy its rival in July, once the
six-month period prohibiting a new
offer had run out.
But Oberthur chief executive
Thomas Savarre yesterday squashed
hopes that he could return to the fray
so soon. “Following recent press and
analyst speculation, we want to
clarify, without any reservation, that
the client is still under negotiation
after its suspension following printing
problems at a factory last year.
The spat, which saw Oberthur raise
its offer from £896m to £926m, marked
Oberthur’s second attempt to buy its
rival. But with De La Rue’s new chief
executive, Tim Cobbold, just six months
into the job and promising a recovery,
some see a new bid as premature.
De La Rue’s shares closed 2.6 per cent
lower at 800.9p.
▲
THE Office of Fair Trading (OFT) has
announced a major crackdown on
credit brokers which charge up-front
fees for their services.
The organisation will force
FORD Motor and General Motors yesterday reported lower US vehicle sales in May. General unscrupulous firms to pay back the
Motors’ sales fell 1.2 per cent month-on-month marking a reversal from a 26 per cent sales fee if a loan is not agreed. It will also
increase in April. Ford sales fell 2.4 per cent as strong sales of small cars were weighed lobby the government for changes to
down by lower sales of pickup trucks. Sales rose 13 per cent in April. Ford chief executive the rules banning the practice of
Alan Mulally (pictured) said sales could falter due to “the economy slowing down”. charging up-front fees altogether.

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 14 News
Greenko eyes wind
growth for India
▲
ENERGY
CLEAN energy producer Greenko yes-
terday ramped up its efforts to supply
India with renewable power after it
secured concessions for a 650
megawatt wind farm project and
raised £50m in a placing of London-
listed shares.
AIM-listed Greenko said its energy
portfolio has passed 1.6 gigawatts,
with around 183 megawatts of proj-
ects currently operational.
“Demand for power in India out-
strips supply and we believe the ener-
gy deficit will become increasingly
pronounced in the years ahead,” said
chief executive Anil Chalamalasetty.
“India does not have a wealth of
natural resources to rely on which
has created an opening for clean ener-
gy generators.”
General Electric has agreed to build
and maintain the new turbines.
ADVISER: ARDEN PARTNERS AND MIRABAUD
RICHARD DAY
ARDEN’S HEAD OF
CORPORATE
FINANCE
GREENKO is using nominated adviser
and broker Arden Partners alongside
Mirabaud Securities to run its £50m
share placing.
Greenko has signed Arden has advised Greenko since
concessions for the India-focused firm floated on AIM
three new wind in November 2007.
farms in India Head of corporate finance Richard
Day is named as the lead broker on
the placing, alongside corporate
finance director Adrian Trimmings.
KBC in plot to
dispose of its
Polish units
▲
FINANCIAL SERVICES
BY HARRY BANKS
BELGIAN financial services group
KBC is looking into the sale of
Polish units and a capital increase
as an alternative to its current
divestment plan, according to
reports in a Belgian newspaper.
The report said that KBC, which
needs to sell assets to pay back €7bn
(£6.2bn) of state aid received during
the financial crisis, was consider-
ing a three-point adjustment to its
plan.
This would involve the sale of
Polish units Kredyt Bank and insur-
er Warta, in place of the partial
flotation of Czech unit CSOB.
KBC would pay back €3.5bn to
Belgium at the end of the year or
the start of 2012 and would also
raise some €2bn via a capital
increase, possibly early in 2012.
KBC insisted that it was still seek-
ing to execute the plan agreed with
the EC at the end of 2009, with no
change in strategy, though it con-
tinued to receive alternative offers
and proposals.
The European authorities would
Hedge funds are UBS hit as more
selling US banks staff go to Citi
▲
BANKING
THE RECOVERY of Citigroup and Bank
of America gave hedge funds some of
their biggest gains last year, but now
the smart money is getting out,
according to Thomson Reuters data.
Maverick Capital, Owl Creek Asset
Management and other major funds
have backed away from the banking
sector in the first quarter. And finan-
cials suffered the biggest decrease in
sector holdings among the Smart
Money 30, a group of some of the
largest stock-picking hedge funds.
Citigroup, the third-largest US bank,
was the top decrease in existing posi-
tions by the Smart Money 30.
CITYA.M. 2 JUNE 2011
Day also acts for Indian coal company
Great Eastern Energy, which listed on
AIM in 2005 and moved to the main
market last year.
Arden Partners is also currently
working with AssetCo, the troubled
fire engine supplier currently fielding
takeover bids.
Mirabaud Securities’ team is being
led by Peter Krens, equity capital mar-
kets partner. Krens advises a number
of energy companies including Gulf
Keystone, Hummingbird Resources
and Caparo Energy.
Greenko’s share placing to fund
more asset purchases will represent
more than 15 per cent of the firm’s
total share capital and is expected to
enter the market on 28 June.
likely need to give their consent to
any change in the previously
approved payback scheme.
“[KBC] is currently pro-actively
examining what the added value of
certain changes to its strategic plan
could be,” KBC said in a statement.
“However, at this stage, it is
impossible to comment specifically
on the outcome of such an exercise,
or the practical details.”
KBC has already sold its Belgian
banking unit Centea, British bro-
kerage unit Peel Hunt and its Asian
derivatives unit, but the sale of KBL
Private Bankers to India’s Hinduja
Group collapsed last month.
The flotation of a minority stake
in CSOB has been put back a num-
ber of times.
KBC hired Goldman Sachs and
Merrill Lynch last month to explore
the possible sale of its Polish assets,
and according to reports the banks
are also advising on the capital
increase option.
The firm’s shares sank more than
six per cent to €27.56 yesterday in
its Belgian listing on investor con-
cerns about the ongoing restructur-
ing.
BANKING
UBS global co-head of M&A, Cary
Kochman, yesterday became the fourth
senior banker to quit the Swiss bank,
moving to rival Citigroup along with
colleagues Jim Glerum and Justin
Friesen.
Friesen was deputy head of US M&A
at UBS, while Glerum headed diversi-
fied industrial banking.
Kochman, Glerum and Friesen join
former colleagues who have moved
from UBS to Citi recently, including
Kevin Cox and Francis Tucci. The depar-
tures came as Citi announced it was
adding over 10 managing directors in
its Asian investment bank.
CITYA.M. 2 JUNE 2011 News 15

Moody’s warns life NEWS | IN BRIEF

Bunzl beefs up with acquisitions

insurers on sales
Outsourcing firm Bunzl yesterday
announced three bolt-on acquisitions
with Spanish distributor of catering sup-
plies King Espana, UK based safety and
workwear distributor SIG and equipment

as tax breaks end

supplier Hospitality Depot. Revenues last
year for the first two companies were
€29m (£25.5m) and £22m respectively
with the forecast for Hospitality Depot
for the year ending 30 June 2011 £13.7m.
The firm said the acquisitions will further
strengthen Bunzl’s position in the respec-
INSURANCE erated on their investments because tive markets.
▲

BY ALISON LOCK of the current virtually-zero interest Swiss Re, run by chief exec Stefan Lippe, has bought £1.6bn worth of UK life insurance assets
rate environment. This combination Intermediate Capital profits rise

Swiss Re buys life assets

CUTBACKS on life insurers’ tax breaks
in Europe are a threat to their com-
petitiveness that is being compound-
ed by ultra-low interest rates in the
region, credit rating agency Moody’s
said yesterday.
European life insurers may see their
sales volumes hurt if they fail to deliv-
er better returns on life products than
savings products offered by banks or
asset managers, it warned.
Tough austerity measures to raise
tax takes are causing governments to
pare back tax advantages currently
allowed to life insurers across
European markets, particularly
France, Germany, the UK and, until
2008, the Netherlands, Moody’s said.
Yet insurers are finding it hard to
bolster returns through interest gen-
gives them almost no advantage over
far more liquid investment options in
banks.
Aviva, Europe’s fifth-largest insurer
by market share, has targeted sales of
unit-linked products and protection
offerings, but like many diversified
insurers says it is focused on prof-
itability rather than sales growth.
Moody’s said the large diversified
insurers would be in the strongest
position as they could most easily
adapt products and sales strategies to
the difficult environment.
“In contrast, life insurers that fail to
adapt to the new environment and
rely on generic products with little dif-
ferentiation...are most vulnerable and
may see their credit profiles deterio-
rate in the longer term,” it said.
INSURANCE
▲
BY ALISON LOCK
SWISS RE, the global reinsurance
giant, agreed to take over £1.6bn UK
life insurance assets from American
Life Insurance Company for an undis-
closed amount yesterday.
Swiss Re will reinsure and adminis-
ter 300,000 UK policies from Alico, a
50-country, US-based insurer.
They include pension and invest-
ment bonds written before 2008 and
will be managed by Swiss Re’s closed-
end life insurance consolidation com-
pany, Admin Re.
Admin Re chairman David Blumer
said the deal “confirms our commit-
ment to being a recognised force in
the closed life book business.”
Alico spokesman Neil Denton
declined to provide the sale price, as
he said it was commercially sensitive.
Swiss Re paid £753m to acquire
760,000 such policies from Barclays in
2008. Admin Re has consolidated
more than 50 life and health books
from insurers worldwide since 1998.
Finance specialists Intermediate Capital
yesterday announced a pre-tax profit
increase of 76 per cent to £186m in the
first three months of the year with a
strong performance across 74 per cent
of its portfolio companies. The annual
dividend of 18p per share is up by six per
cent from last year.
Xchanging sells troubled US ops
Outsourcing firm Xchanging yesterday
said it has sold its troubled US
Cambridge workers’ compensation oper-
ations for $22.7m (£13.8m) to Sedgwick
Claims Management, sending its shares
up nine per cent. In the year to
December, the US business made an
underlying operations loss of $1.4m and
a further $8.2m of operating losses after
amortisation.

AXA sells Canadian

arm to fuel growth
INSURANCE per cent underlying earnings per Joy Ferneyhough.
▲

BY ALISON LOCK
FRENCH insurance giant AXA sold
its Canadian unit for C$2.6bn
(£1.6bn) yesterday as it kicked off a
new five-year plan to boost profits
and cut debt.
AXA, Europe’s second-largest
insurer, said at an investor day it is
targeting high-growth emerging
markets, where it aims to double in
size and profitability on a compara-
ble basis by 2015.
In a bid to redeploy capital
towards growth markets it sold
AXA Canada, which generates
about C$2bn in annual premiums,
to local rival Intact. The sale will
generate a one-off €900m capital
gain for the group.
AXA’s new plan will target ten
share growth by 2015 on a com- However, Jefferies analyst James
pound annual growth rate basis, Shuck said a life business target of
chief executive Henri de Castries generating €6bn cashflow from
told investors. 2011-13 was already in line with his
It has set new cash flow targets, forecasts. He said the targets “seem
including generating €24bn in respectable but not especially chal-
operating free cash flow, and a 15 lenging depending on a stable
per cent adjusted return on equity. macro backdrop”.
It also plans to scale back in the UK
and cut costs in developed markets ANALYSIS l Axa
by 2015 to free up further capital to
focus on Asia.
16 € 15.06
15.5
1 June
In asset management AXA is aim-
ing for a turnaround of net asset 15
flows in 2011 and then four to five
per cent net new money flows per 14.5
year between 2012 and 2015. 14
“The focus of the group now is to
be less ‘all things to all people’ and 13.5
to focus on selective and profitable 13
growth,” said Espirito Santo analyst 7 May 25 Mar 11 Apr 8 May 26 May

Better late than never for Henri de Castries

AXA has changed beyond recogni-
tion over the last 30 years. A string
of global acquisitions have turned
it from a small mutual insurer in
France’s Normandy to a global
player. Despite its big ambitions,
the firm still trades at a discount
to the rest of the large-cap insur-
ance conglomerates. Its price to
book value before yesterday’s
investor day was 0.9 compared to
1.7 for RSA and a peer average of
1.2.
Despite outperforming the rest
of the sector so far this year, 2010
was an annus horribilis in which
the firm’s shares shed 25 per cent.
Yesterday, chief executive Henri de
Castries claimed turbulence in the
markets had hidden the insurer’s
“inherent strengths”, but he must
take some responsibility for its
underperformance. He scrapped
targets in the wake of the financial
crisis and has waited too long to
put new ones in place. Investors
have grown understandably impa-
tient.
Yesterday’s strategy day should
go some way to addressing their
concerns. The sale of its Canadian
ops for $2.7bn comes just one
month after the insurer, along
with AMP, completed a $14.1bn
purchase of Axa Asia Pacific.
Together, the deals show it is seri-
ous about redeploying capital to
the fast-growth tiger economies.
The other targets were sensible.
Cut costs by $2.2bn in mature mar-
kets while making more acquisi-
tions in emerging ones. Double
revenue from property-and-casual-
ty by 2015 while doubling the
value of new life insurance busi-
ness in high-growth markets. All
being well, operating earnings
should grow by 2.5 times over the
next five years.
None of this is rocket science,
however, and we wonder why it has
taken de Castries so long to flesh
out his vision. Yesterday he said he
was aware “some [investors] could
think that it has taken too long”.
Still, better late than never.
BOTTOMLINE
Analysis by David Crow
 16 News CITYA.M. 2 JUNE 2011

Investing in infrastructure is key for UK growth

highway isn’t very super, our airports
bursting, our renewable invisible. We
have rested on our Victorian laurels,
while other nations have built their
way into the lead.
We must promote infrastructure
over consumption. It leads to jobs in
the short term building the schemes,
THURSDAY VIEW but more importantly it leads to high-
ANTHONY BROWNE er levels of long term growth as the
economy becomes more productive.
The CBI is right to complain that the
there is the little matter of paying for
it. Estimates of the bill to get the UK
up to speed range from £200bn to
£500bn; either way, it’s woefully unaf-
fordable.
Or at least it is to the government.
We actually have plenty of money in
the UK looking for investment – the
£1.6 trillion saved up in our pensions
and insurance industry.
International financiers are often
aghast at the UK’s structural mis-
and too complex for pension funds.
But the financial crisis has created an
opportunity – sovereign wealth funds
and pension funds that got burnt by
casino capitalism are keen for more,
er, concrete investments. As one
investor who lost billions told me: “I’d
like to put my money somewhere in
the real world – preferably something
I can see that can’t evaporate
overnight.” Infrastructure such as an
airport or railway is perfect – it pro-
inevitable that will have to stay with
the government. But once a project is
built, it could be sold to pension
funds, so the government recoups the
investment to spend on the next proj-
ect. To do that, the government needs
to expand the work it has started
with the Green Investment Bank and
create a class of “infrastructure
bonds”, compatible with the require-
ments of longer term investors. Such
infrastructure bonds could help the

I
T’S the lament of every politician,
and a brake on the economy:
Britain doesn’t have the world-
leading infrastructure we need to
thrive. Our trains are too slow, our
roads too clogged, our broadband
UK’s poor infrastructure is holding
UK plc back.
The chancellor clearly understands
the case for infrastructure, and it is
likely to feature highly in his second
growth review later this year. But
match – that we have both a great
need for long term investment, and a
great supply of long term investors,
but we haven’t managed to pair them
off. As a country, we focused on PFI,
which is expensive for the taxpayer,
vides a secure, long term investment
that such funds need.
However, pension funds need secu-
rity, and are in no position to take on
the construction risk of major infra-
structure projects – it is almost
supply of long term funds in Britain
meet our need for infrastructure –
and help put UK plc back in the fast
lane.
Anthony Browne is a board member of
theCityUK

Deficits prompt
London is top
A SNAPSHOT OF THE NEW BRITISH BUSINESS LANDSCAPE

governments to
global city hike VAT rates

for visitors

▲
WORLD ECONOMY
DEFICIT problems in the West have
prompted governments to boost
indirect taxes such as VAT, a study
from PricewaterhouseCoopers
revealed yesterday.
The move from direct taxes, such
The results also demonstrate an as income tax, to indirect taxes has
▲

TOURISM opportunity for UK retailers to capi- been accelerated by the effects of

BY SCARLETT ARCHER
LONDON has fought off both New
York and Paris to be crowned the
world’s number one destination city,
with an expected 20.1m inbound pas-
sengers visiting the capital this year,
according to a survey out yesterday.
Foreign visitors to London are
expected to pull in a record $25.6bn
(£15.58bn) this financial year alone.
“London has yet again proved it is
the epicentre of global trade and the
best world city to do business with,”
said Mayor of London Boris Johnson,
commenting on the research from
MasterCard.
talise on London’s position as they global recession, according to the
seek to expand their businesses. report’s findings.
“Retailers often pay massive atten- VAT systems, including general
tion to locating themselves near cus- sales taxes, have now been imple-
tomers. But our study shows that mented in 156 countries around the
many customers are now travelling to world, PwC said.
the retailers -- especially for prime
shops in cities like London,” said
Hedrick-Wong.
Showing retailers exactly where
their most valuable customers will
come from enables them to focus
Companies cut
their business strategies, build their
brands overseas and promote any
London-based services in origin cities
pension deficits
more selectively, he added.
“London’s high ranking is evi-
▲

London visitors also come from a
more diverse range of places than
tourists in peer cities, the research
revealed. The top 40 origin cities for
London collectively account for only
60 per cent of visitors, compared to
over 80 per cent in rival destinations
such as New York.
This makes London less prone to
volatility from economic contraction
and currency deprecation than other
parts of the world, MasterCard econo-
mist Dr. Yuwa Hedrick-Wong told City
A.M.
dence that the UK remains an attrac-
PENSIONS
tive place to do business and indicates RISING equity markets and a renewed
that the capital’s economic health focus on deficit funding have slashed
remains strong,” concluded Hedrick- the UK private sector’s pension deficits
Wong from £148bn last year to £79bn this
year, research published yesterday
TOP 10 DESTINATIONS | BY INTL VISITORS revealed.
“Despite the recent turmoil in mar-
1 London 20.1m 6 Madrid 10.1m BRISTOL and Glasgow are set to be the newest ‘super-cities’ to emerge in the UK in the kets, the last 12 months have been
2 Paris 18.1m 7 Istanbul 9.4m next decade and will be catalysts for growth in their regions, a HSBC report said today. quite good for companies weighed
3 Bangkok 11.5m 8 Frankfurt 8.4m The financial crisis may have been bad for business but it has set the stage for a new eco- down by pension liabilities and
4 Singapore 11.4m 9 Dubai 7.9m nomic dynamism and the UK is on the brink of a new wave of innovation, HSBC finds in deficits,” commented Charles
5 Hong Kong 10.9m 10 Rome 7.9m its ‘The Future of Business 2011’ report. Its future-gazing concludes that UK manufactur- Cowling of JLT Pension Capital
ing will see a new dawn, with new technologies combining with traditional skills. Strategies.
 18 News CITYA.M. 2 JUNE 2011

Russian tax freeze UN REPORT HIGHLIGHTS JAPAN NUCLEAR FAILURES

JAPAN underestimated the

set to hit Gazprom

risk of tsunamis and needs
to closely monitor public
health after the crisis at the
Fukushima Daiichi nuclear
plant, a team of internation-
al safety inspectors said in a
preliminary review of the
would decline. disaster. The report from the
▲

ENERGY
RUSSIA will not increase its mineral
extraction tax for independent gas
producers, finance minister Alexei
Kudrin said yesterday, leaving state
export monopoly Gazprom to bear
the brunt of tax increases.
Gazprom deputy chief executive
Alexander Ananenkov warned that if
the ministry carries through with
proposed output levies, production
“More gas will end up staying in
the ground,” said Ananenkov.
“Extraction companies will wait for
the economics to improve.”
The government is revising its tax
policy to boost revenue from the ener-
gy sector.
Ananenkov said output was
already due to fall this year to
505.6bn cubic metres from 508.6bn
cubic metres last year.
International Atomic Energy
Agency highlighted some of
the well-documented weak-
nesses that contributed to the
crisis at Fukushima when
the plant, 150 miles north of
Tokyo, was hit by a massive
earthquake and a tsunami
in quick succession on 11
March.
Picture: REX

Schneider to
spend €1.4bn
on Telvent
Russia.
▲
ENERGY
BY HARRY BANKS On Tuesday, Schneider announced
the acquisition of 74 per cent of
FRENCH power network equipment Indian energy storage group
specialist Schneider Electric is to buy Luminous for €215m.
energy software provider Telvent for “In the past two days we’ve
€1.36bn (£1.2bn) as part of its push announced two acquisitions that are
into energy efficient grids and emerg- really just the strict execution of the
ing markets. strategy that we explained in
The takeover bid is backed by US- November – a very strong push in the
listed Telvent’s main shareholder and direction of new economies,”
would give Schneider Electric a Schneider chief executive Jean-Pascal
stronger presence in software to com- Tricoire said.
plement its equipment sales. Telvent’s “The deal fits in the ‘medium’ cate-
software helps manage electricity gory and as such there may be some
grids and transportation systems serv- relief that it affirms the previous
ing industries like oil and gas with a management comments,” said
strong position in North and South Citigroup analysts Mark Fielding and
America. Schneider Electric said yes- Alexandre Werbowy.
terday the cash offer values Telvent –
which is 40 per cent owned by ANALYSIS l Schneider Electric
Spanish conglomerate Abengoa – at 125 € 113.20
€27.78 per share, or a 36 per cent pre- 1 June
mium to Telvent’s average share price 120
in the past three months.
The deal has an enterprise value of
€1.4bn including the purchase of 115
Telvent convertible notes, fits with
Schneider’s strategy of making small- 110
to-medium acquisitions to bolster its
existing businesses and expand into 105
emerging markets, such as India and 7 May 25 Mar 11 Apr 8 May 26 May

Rockhopper up Aquarius halts

on Falkland oil Blue Ridge mine
▲

ENERGY
ROCKHOPPER Exploration yesterday
reported “enormously encouraging”
results at a Falkland Islands oil well
and said it would conduct further tests
over the next month to help establish
its commercial viability.
“The well has been highly success-
ful, proving a very thick, high quality
reservoir package and a substantial oil
column,” the company said yesterday.
“The geological prognosis once
again came in very close to predic-
tion,” it added.
Rockhopper’s shares rose more than
10 per cent yesterday on the positive
result.
MINING
AQUARIUS Platinum’s wholly-owned
subsidiary Ridge Mining has decided
to suspended the funding of the joint-
ly-owned Blue Ridge Platinum mine.
The suspension follows a review of
its economic viability in the current
group metals rand price environ-
ment, pending a decision by the
board of Blue Ridge to place the mine
on care and maintenance.
Aquarius Platinum’s South Africa
subsidiary has completed an initial
assessment of the expansion poten-
tial at the Everest Mine following the
recently announced acquisition of
Booysendal South.
CITYA.M. 2 JUNE 2011 News 19

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Religare Capital Markets
Richard Thompson has joined Religare Capital
Markets as head of investment banking for the
London listings and broking business. Thompson
joins from Fox-Davies Capital, where he was
head of investment banking. Three other mem-
bers of the Fox-Davies Capital team have also
joined RCML: Philip Davies, who will focus on
equity capital markets and M&A, and David
Porter and Tim Davis, who join as directors in
the London Listings and Broking team.
Jones Lang LaSalle ment team by appointing James Chell
The real estate firm has strengthened as a senior surveyor. Chell joins from
its residential development and invest- Southern Housing Group, where he
worked in the London and Thames
Gateway new projects team.
Cheapflights
The executive chairman of Cheapflights
Media, Hugo Burge, has assumed the
additional role of chief executive, tak-
ing over the position from Chris Cuddy.
Burge joined the company in 2000 and
has held a number of roles at the firm,
including head of international.
Cevian Capital
Europe’s largest active ownership fund
manager has appointed Lord Myners as
chairman of its UK operations and a
partner, subject to regulatory approval.
Myners’ other board directorships
include chairmanships of Land
Securities and Guardian Media Group.
Navigant Consulting
Mark Pontin, the owner of construction
consultancy firm Pontin Consulting, has
become a part of Navigant’s Global
Construction Practice, also bringing the
rest of his team to the firm.
Barclays Corporate
Barclays’ commercial banking branch
has hired Gavin Rees as a senior relation-
ship director to strengthen its funds
proposition. Rees joins from WestLB in
New York, where he was executive direc-
tor in the funds finance group.
VTB Capital
The investment arm of VTB Group has
appointed Alexey Yakovitsky as chief
executive and chairman of the manage-
ment board of VTB Capital holding
companies. In addition, Vitaly
Bouzoveria will join VTB Bank as head
of investment business.
UniCredit
Graham Smith has taken over the role
of global head of cash equity execution
in the bank’s global equities unit. He will
also retain his current role as global
head of cash equity trading.

To appear in CITYMOVES please email your career

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updates and pictures to citymoves@cityam.com morganmckinley.com

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ANALYSIS l France Telecom ANALYSIS l Serco Group ANALYSIS l Imperial Tobacco 2184.00
15.66
€ 1 Jun 620
p 2250
p 1 Jun
16
15.8
572.50 2200
600 1 Jun 2150
15.6 2100
580
15.4 2050
15.2 560 2000
15 1950
540
14.8 1900
14.6 520 1850
7 Mar 25 Mar 14 Apr 6 May 26 May 7 Mar 25 Mar 14 Apr 6 May 26 May 7 Mar 25 Mar 14 Apr 6 May 26 May

FRANCE TELECOM SERCO IMPERIAL TOBACCO

Nomura rates the company a “buy” and has a target price of €19.20
(£16.84). The broker has raised its earnings forecasts ahead of consensus
following an investor day. The broker also thinks that the company is well
placed to step up its investment phase in the near term, and sees an oppor-
tunity for increased share growth in the company over the next couple of
years.
Canaccord rates the outsourcing company a “buy” and has a target price of
680p. The broker has upgraded its earnings per share forecast by five per
cent, thanks to the group’s £385m acquisition of Indian outsourcer
Intelenet earlier in the week. The broker notes Serco’s confidence in using
that acquisition to drive shareholder value in the next year, and sees 18 per
cent potential upside.
UBS rates the group “buy” with a target price of £23.85. The broker has
trimmed its 2011 earnings forecasts by two per cent, following an
announcement that the tobacco company PMI would reduce the price of
its major brands in Spain, forcing others to follow suit. The broker thinks
Imperial Tobacco is the most exposed to Spain of the large firms, with
most to lose if the government raises its minimum duty.

Economic shocks sent FTSE Wall Street sell-off

back below the 6,000 mark on recovery fears
THELONDON
in May, far below expectations and
the lowest level since September
2010.
Among the minority or blue chip
gainers, broker comment played an
important role. G4S was the top THENEW YORK and Bank of America among the
biggest drags. JP Morgan fell 3.4 per
cent while Bank of America lost 4.3

REPORT Weak domestic data also weighed

in London, with PMI manufacturing
activity at a 20-month low in May,
while mortgage approvals were also
riser, up 1.8 per cent as Espirito
Santo initiated coverage on the secu-
rity services firm with a “buy” rat-
REPORT per cent. A number of hedge funds
are selling the banking sector.
According to ADP, US private
ing. employers added a scant 38,000 jobs

B W
RITAIN’S top share index
dropped back yesterday as
below-par US economic point-
ers and weak UK manufactur-
ing and housing data intensified
investor concerns about the strength
of the global economy.
At the close, the FTSE 100 index
was down 61.38 points, or one per
cent, at 5,928.61, reversing sharply in
the afternoon after briefly pushing
back close to the psychologically
important 6,000 level in the morn-
ing session.
Energy and banking stocks suf-
fered the biggest falls as risk appetite
evaporated, with Lloyds Banking
Group down 3.8 per cent and BG
Group off 3.1 per cent.
“The markets finally ended their
winning streak as data this after-
noon suggested that the U.S recovery
was slowing, and with non-farm pay-
rolls numbers on Friday there will be
little reason for that to change
before then,” said Mic Mills, head of
electronic trading at ETX Capital.
As a precursor to the US jobs
report, a survey by ADP Employer
Services yesterday showed US private
employers added a scant 38,000 jobs
lower than expected in April.
UK blue chips dropped back in
tandem with sharp falls by their US
peers, which were down 1.2 per cent
by London’s close.
Baring Asset Management
expressed concern that valuations
for global equity markets offer little
leeway for the potential earnings dis-
appointments that could accompany
the slowing of the global economic
recovery.
“After two years of strong growth,
recent data suggests that most eco-
nomic indicators are now peaking
out in the West from the troughs of
early 2009 ... Against this backdrop,
the short-term outlook appears
choppy,” said Percival Stanion, head
of asset allocation at Barings.
Vodafone was a top FTSE 100 fall-
er, down 4.4 per cent, as the market
heavyweight traded ex-dividend,
alone knocking over 12 points off
the blue chip index.
Overall 16.83 points were removed
from the index by ex-dividend con-
siderations, with Capital Shopping
Centres, Intertek, National Grid and
WPP also losing their payout attrac-
tions.
Anglo-French property investor
Hammerson added 1.4 per cent as
Morgan Stanley upgraded its stance
to “overweight”.
And Aggreko rose 0.8 per cent
after Canaccord Genuity upgraded
the temporary power provider's rat-
ing to “buy”, saying momentum in
the business outweighs valuation
concerns.
Outside the top flight, Xchanging
gained nine per cent after the strug-
gling outsourcer revealed the sale of
its loss-making US business.
Crisis-hit care homes provider
Southern Cross was the top faller in
the FTSE, down 18 per cent, despite
agreeing a drastic rent reduction.
ANALYSIS l FTSE 100
6,100 5,928.61
1 Jun
6,000
5,900
5,800
5,700
5,600
5,500
7 Mar 25 Mar 14 Apr 10 May
ALL Street ended a four-day
rally with its worst session
since August yesterday and
could suffer more losses in
coming days as investors faced more
signs the economic recovery is fad-
ing.
All 10 Standard & Poor’s sectors
ended more than one per cent lower
and all 30 stocks in the Dow industri-
als fell. Banks were the biggest
decliners as the economic reports
painted a glum picture for jobs and
manufacturing.
The recent four-day winning
streak had some investors pointing
to resilience in the market, but yes-
terday decline took the S&P through
its 50-day moving average, leaving
the market vulnerable to more loss-
es.
The Dow Jones industrial average
was down 279.42 points, or 2.22 per
cent, at 12,290.37. The Standard &
Poor’s 500 Index was down 30.66
points, or 2.28 per cent, at 1,314.54.
The Nasdaq Composite Index was
down 66.11 points, or 2.33 per cent,
at 2,769.19.
The S&P financial sector slumped
31 May 3.5 per cent with JP Morgan Chase
in May, the lowest since September
2010 and far below what had been
expected. Several banks cut their
forecasts for Friday’s non-farm pay-
roll report from the Labor
Department.
Adding to the gloomy data was the
Institute for Supply Management’s
index, a measure of manufacturing
activity that suffered its biggest fall
since September 2009 during May.
Automakers tumbled after report-
ing slightly lower car sales in May as
economic weakness and high gas
prices pushed consumers to delay
purchases. General Motors lost five
per cent and Ford Motor sank 4.6 per
cent.
Almost five stocks fell for every
one that rose on the New York Stock
Exchange while on the Nasdaq about
81 per cent of stocks finished in the
negative.
About 8.36bn shares traded on the
New York Stock Exchange, the
American Stock Exchange and
Nasdaq, slightly under last year's
daily average of 8.47bn. Recently,
days of steep declines have corre-
sponded with sharp upticks in trad-
ing volume.
 20 CITYA.M. 2 JUNE 2011

Wealth Management Markets |

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1384 0.0044 /$ 1.4369 0.0027
5928.61 12009.84 3092.54 12290.14 2769.19 1314.55 /$ 1.6359 0.0093 /£ 0.8783 0.0032
-61.38 -50.95 -28.53 -279.65 -66.11 -30.65 /¥ 132.33 1.7978 /¥ 116.18 1.0150
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 . . . . .220.9 -1.2 240.5 112.7 Brewin Dolphin Ho . .165.7 -0.6 185.4 114.0 RPC Group . . . . . . . .361.1 6.1 361.1 187.5 Amlin . . . . . . . . . . . . .421.0 -4.0 433.0 369.3 Centamin Egypt Lt . .126.3 -0.9 197.1 115.8 Hammerson . . . . . . . .486.3 6.8 488.5 336.3 JD Wetherspoon . . . .442.8 -2.3 468.3 386.5
CONSTRUCTION & MATERIALS Camellia . . . . . . . . .10175.0 -25.010700.0 7400.0 Smiths Group . . . . .1222.0 -14.0 1429.0 1018.0 Beazley . . . . . . . . . . . .130.0 2.5 139.2 109.1 Eurasian Natural . . .832.5 -13.0 1125.0 806.5 Hansteen Holdings . . .87.2 -0.1 89.3 59.4 Ladbrokes . . . . . . . . .149.3 0.7 152.2 122.7
Tsy 3.250 11 . . . . .101.45 -0.02 103.8 101.4 Charles Taylor Co . . .122.0 -8.0 240.0 120.0 Catlin Group Ltd. . . .414.8 -2.8 419.9 319.9 Fresnillo . . . . . . . . . .1478.0 20.0 1682.0 897.5 Land Securities G . . .837.0 5.0 839.0 545.0 Marston's . . . . . . . . . .106.3 -0.7 117.1 90.4
Tsy 9.000 11 . . . . .100.96 -0.03 109.3 101.0 Balfour Beatty . . . . . .312.4 -9.5 357.3 229.8 City of London Gr . . . .85.5 0.0 93.6 65.8 GENERAL RETAILERS Hiscox Ltd. . . . . . . . . .417.1 -5.0 424.0 335.5 Gem Diamonds Ltd. .269.7 10.7 306.0 186.3 SEGRO . . . . . . . . . . . .323.8 -0.9 331.3 250.2 Millennium & Copt . .514.0 -1.5 600.5 392.0
Tsy 2.500 11 . . . . .307.79 0.00 310.0 307.8 Keller Group . . . . . . .521.5 1.0 698.5 513.0 City of London In . . .434.0 -1.0 461.5 273.5 Brown (N.) Group . . .290.4 -0.7 311.2 221.0 Jardine Lloyd Tho . . .686.5 -10.5 709.0 521.5 Hochschild Mining . .531.5 1.5 680.0 280.0 Shaftesbury . . . . . . . .534.5 -4.0 540.5 349.3 Mitchells & Butle . . . .316.2 -2.1 361.0 274.0
Tsy 5.250 12 . . . .104.60 -0.04 108.5 104.6 Kier Group . . . . . . . .1279.0 -2.0 1418.0 886.5 Close Brothers Gr . . .794.5 -4.0 888.5 664.0 Carpetright . . . . . . . . .703.0 -19.5 835.5 631.0 Lancashire Holdin . . .653.5 7.0 660.0 474.6 Kazakhmys . . . . . . .1294.0 -20.0 1671.0 965.0 National Express . . .256.0 0.9 270.2 213.4
Tsy 9.000 12 . . . .109.62 -0.37 116.9 108.6 Collins Stewart H . . . .78.3 -1.3 90.8 67.3 Debenhams . . . . . . . . .72.6 -2.2 77.4 53.0 RSA Insurance Gro . .136.8 -0.7 143.5 117.3 Kenmare Resources . .48.0 -1.0 50.3 11.5 SOFTWARE & COMPUTER SERV. Punch Taverns . . . . . .70.6 -0.3 90.4 58.0
Tsy 5.000 12 . . . .103.37 -0.05 107.3 103.3 ELECTRICITY
Evolution Group . . . . .70.5 -0.3 99.0 67.0 Dignity . . . . . . . . . . . .760.5 5.5 775.0 623.5 Aviva . . . . . . . . . . . . . .432.1 -4.8 477.9 305.8 Lonmin . . . . . . . . . . .1595.0 -5.0 1983.0 1355.0 Autonomy Corporat 1794.0 -3.0 1975.0 1271.0 Rank Group . . . . . . . .151.3 -1.7 154.0 94.8
Tsy 4.500 13 . . . .106.26 -0.03 109.2 105.8 Drax Group . . . . . . . .466.9 1.7 469.8 333.0 F&C Asset Managem .79.0 -0.6 92.9 47.5 Dixons Retail . . . . . . .18.5 -1.2 28.5 11.8 Legal & General G . . .116.6 -0.5 123.8 75.6 Petropavlovsk . . . . . .761.5 -19.0 1365.0 720.5 Aveva Group . . . . . .1685.0 18.0 1739.0 1125.0 Restaurant Group . . .297.2 0.8 335.0 208.2
Tsy 2.500 13 . . . .286.02 -0.03 286.1 273.8 Scottish & Southe . .1380.0 2.0 1392.0 1062.0 Hargreaves Lansdo .630.0 -3.0 646.5 317.4 Dunelm Group . . . . . .463.7 13.7 550.0 325.3 Randgold Resource 4980.0 -35.0 6655.0 4425.0 Computacenter . . . . .449.0 13.2 489.7 260.0 Stagecoach Group . .238.0 0.5 246.9 160.7
Tsy 8.000 13 . . . . .116.07 -0.09 121.3 115.8 LIFE INSURANCE
ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . . .4.3 -0.6 45.0 3.3 Halfords Group . . . . .395.0 -5.7 550.0 348.2 Rio Tinto . . . . . . . . .4255.0 10.0 4712.0 2880.5 Fidessa Group . . . . .1912.0 -33.0 1956.0 1269.0 Thomas Cook Group 151.2 0.8 206.2 145.0
Tsy 5.000 14 . . . . .110.81 -0.05 114.1 109.2 Henderson Group . . .148.7 -1.5 173.1 118.1 Home Retail Group . .213.7 -1.3 250.4 188.5 Old Mutual . . . . . . . . .129.5 -1.7 145.2 102.0 Vedanta Resources 2130.0 -22.0 2583.0 1839.0 Invensys . . . . . . . . . . .303.5 -6.3 364.3 230.2 TUI Travel . . . . . . . . . .233.0 -2.0 271.9 190.0
Tsy 7.750 15 . . . .104.54 -0.35 111.0 76.0 Domino Printing S . .665.0 -3.0 705.0 385.0 Highway Capital . . . . .21.0 0.0 23.0 6.0 Inchcape . . . . . . . . . .393.9 0.7 414.0 237.1 Phoenix Group Hol . .665.0 0.0 758.0 584.5 Xstrata . . . . . . . . . . .1420.0 -5.5 1550.0 845.8 Kofax . . . . . . . . . . . . .461.0 -2.5 535.0 231.0 Whitbread . . . . . . . .1587.0 -44.0 1887.0 1344.0
Tsy 8.000 15 . . . .125.91 -0.07 131.6 123.7 Halma . . . . . . . . . . . . .395.8 1.6 397.4 244.7 ICAP . . . . . . . . . . . . . .479.7 -4.6 570.5 380.2 JD Sports Fashion . .963.0 13.0 1004.0 683.0 Prudential . . . . . . . . .724.5 -13.0 777.0 489.2 Logica . . . . . . . . . . . .135.7 -2.3 147.2 101.7 William Hill . . . . . . . . .214.7 1.0 223.5 155.5
Tsy 4.750 15 . . . . .111.32 -0.05 114.7 108.6 MOBILE TELECOMS
Laird . . . . . . . . . . . . . .137.0 -0.7 179.0 98.8 IG Group Holdings . .445.3 -3.7 553.0 379.2 Kesa Electricals . . . .150.0 0.5 174.0 99.2 Resolution Ltd. . . . . .305.2 -6.4 313.0 211.3 Micro Focus Inter . . .379.3 4.2 541.5 276.0
Tsy 2.500 16 . . . .328.32 0.00 328.4 304.4 AIM 50
Morgan Crucible C . .311.0 -5.0 333.0 173.5 Intermediate Capi . . .339.1 -5.5 360.3 240.4 Kingfisher . . . . . . . . .282.1 -5.0 288.7 198.5 St James's Place . . . .338.0 -5.3 360.4 204.2 Inmarsat . . . . . . . . . . .601.0 -2.0 821.0 575.0 Misys . . . . . . . . . . . . .368.0 6.2 370.0 227.0
Tsy 4.000 16 . . . .108.41 -0.05 111.4 104.9 Renishaw . . . . . . . . .1761.0 68.0 1819.0 683.0 International Per . . . .374.6 4.0 386.6 183.3 Marks & Spencer G . .386.4 -12.5 427.5 327.2 Standard Life . . . . . . .207.6 -2.3 244.7 173.0 Vodafone Group . . . .161.6 -7.4 181.9 135.1 Sage Group . . . . . . . .285.0 -5.2 302.0 222.7 Abcam . . . . . . . . . . . .428.5 3.5 431.8 237.4
Tsy 1.250 17 . . . . .110.70 -0.03 111.1 104.9 Spectris . . . . . . . . . .1568.0 -7.0 1579.0 740.5 International Pub . . . .116.3 -0.4 118.3 108.6 Mothercare . . . . . . . .430.5 -7.0 627.5 382.0 SDL . . . . . . . . . . . . . . .704.0 -3.0 714.5 438.7 Albemarle & Bond . .330.5 -4.5 335.0 218.0
Tsy 8.750 17 . . . .136.41 -0.37 142.2 132.9 Investec . . . . . . . . . . .505.0 0.0 538.0 429.2 Next . . . . . . . . . . . . .2268.0 -2.0 2326.0 1868.0 MEDIA NONEQUITY INVESTM. COMM. Telecity Group . . . . . .542.0 -0.5 548.5 374.0 Amerisur Resource . .28.5 -0.5 30.0 11.5
Tsy 12.000 17 . . .127.03 0.00 185.9 126.0 EQUITY INVESTMENT INSTRUM.
IP Group . . . . . . . . . . . .50.5 1.6 52.5 28.0 Sports Direct Int . . . .224.5 -0.7 228.8 94.2 4imprint Group . . . . .272.5 1.0 276.0 195.0 Genesis Emerging . .527.5 0.5 568.0 433.3 Archipelago Resou . . .61.5 0.5 66.8 32.3
Tsy 5.000 18 . . . . .114.19 -0.04 117.6 109.7 Aberforth Smaller . . .699.0 -7.0 706.5 498.0 Jupiter Fund Mana . .283.0 -4.3 337.3 180.3 WH Smith . . . . . . . . . .489.5 4.0 523.0 398.2 Aegis Group . . . . . . .141.3 -0.3 148.3 103.6 SUPPORT SERVICES ASOS . . . . . . . . . . . .2338.0 -29.0 2432.0 632.5
Tsy 4.500 19 . . . . .110.40 -0.04 113.8 105.4 OIL & GAS PRODUCERS
Alliance Trust . . . . . .378.9 -3.9 385.0 293.5 LMS Capital . . . . . . . . .64.8 0.6 64.8 40.0 Bloomsbury Publis . .128.3 -2.6 138.0 106.8 Aggreko . . . . . . . . . .1882.0 15.0 1901.0 1278.0 Aurelian Oil & Ga . . . .52.8 0.8 92.0 35.8
Tsy 3.750 19 . . . .104.58 -0.05 107.7 99.4 Bankers Inv Trust . . .418.4 -7.1 428.0 337.0 London Finance & . . .21.3 0.8 21.5 16.5 HEALTH CARE EQUIPMENT & S. British Sky Broad . . .830.0 -2.0 849.0 563.5 Afren . . . . . . . . . . . . . .167.9 2.2 171.2 79.2 Ashtead Group . . . . .177.0 -5.8 207.9 77.0 Avanti Communicat .425.0 6.8 735.0 376.0
Tsy 4.750 20 . . . . .111.78 -0.07 115.9 106.6 BH Global Ltd. GB .1088.0 -4.0 1174.0 1058.0 London Stock Exch .981.5 1.0 990.0 544.0 Smith & Nephew . . . .679.5 2.5 742.0 537.5 Centaur Media . . . . . . .56.0 0.0 73.0 45.8 BG Group . . . . . . . . .1363.0 -43.5 1564.5 1002.0 Atkins (WS) . . . . . . . .814.5 -5.5 825.0 650.0 Avocet Mining . . . . . .202.8 1.5 253.5 112.0
Tsy 2.500 20 . . . .335.40 0.02 335.6 303.8 BH Global Ltd. US . . . .10.6 -0.1 11.6 10.4 Man Group . . . . . . . . .254.3 -2.6 311.0 206.4 Synergy Health . . . . .868.5 5.5 948.0 565.0 Chime Communicati .291.0 -7.5 302.0 158.0 BP . . . . . . . . . . . . . . . .466.2 -2.2 509.0 302.9 Babcock Internati . . .698.0 8.5 704.5 492.8 Blinkx . . . . . . . . . . . . .137.3 -3.0 148.8 28.3
Tsy 8.000 21 . . . .140.01 -0.07 147.1 133.8 BH Macro Ltd. EUR . . .16.8 -0.1 17.2 15.8 Paragon Group Of . .203.0 0.8 204.7 114.4 Creston . . . . . . . . . . . .116.0 0.0 118.0 78.5 Cairn Energy . . . . . . .437.2 -4.0 493.2 366.0 Berendsen . . . . . . . . .488.2 4.1 519.5 360.2 Borders & Souther . . .55.8 0.3 93.0 55.0
Tsy 1.875 22 . . . . .116.07 0.03 117.8 108.5 BH Macro Ltd. GBP 1738.0 -7.0 1780.0 1630.0 Provident Financi . . .971.5 -5.5 1033.0 728.5 HHOLD GDS & HOME CONSTR. Daily Mail and Ge . . .448.8 -4.4 594.5 433.0 EnQuest . . . . . . . . . . .133.4 0.5 158.5 96.0 Bunzl . . . . . . . . . . . . .769.0 2.5 783.0 658.0 BowLeven . . . . . . . . .307.0 0.0 398.0 111.3
Tsy 4.000 22 . . . .104.20 -0.07 108.4 99.0 BH Macro Ltd. USD . . .16.8 0.0 17.1 15.8 Rathbone Brothers .1185.0 -24.0 1257.0 762.5 Barratt Developme . .111.4 -2.0 119.0 70.1 Euromoney Institu . .673.0 10.0 736.0 562.5 Essar Energy . . . . . .450.0 -5.9 589.5 387.1 Capita Group . . . . . . .724.0 -12.0 810.0 635.5 Caledon Resources .104.5 2.0 107.0 23.3
Tsy 2.500 24 . . . .293.28 0.10 293.5 262.1 BlackRock World M .772.0 -8.0 815.5 533.0 Real Estate Credi . . . . .1.4 0.0 2.4 0.9 Bellway . . . . . . . . . . . .730.5 -12.5 753.5 511.0 Future . . . . . . . . . . . . . .18.3 1.0 30.0 15.8 Exillon Energy . . . . . .452.0 -1.7 469.7 166.0 Carillion . . . . . . . . . . .378.1 -4.9 403.2 291.2 Cape . . . . . . . . . . . . . .526.0 -2.5 564.0 190.5
Tsy 5.000 25 . . . . .113.07 -0.07 118.5 107.4 BlueCrest AllBlue . . .174.6 -0.2 176.2 161.5 RSM Tenon Group . . .25.0 1.5 66.3 21.3 Heritage Oil . . . . . . . .243.9 2.4 486.0 227.8 De La Rue . . . . . . . . .798.0 -24.0 984.0 549.5 Conygar Investmen .116.8 1.0 120.0 101.3
Tsy 1.250 27 . . . .109.50 0.15 111.2 100.5 British Assets Tr . . . .135.0 -3.0 140.5 105.0 S & U . . . . . . . . . . . . .630.0 0.0 708.5 482.5 JKX Oil & Gas . . . . . .285.0 -0.3 335.1 228.0 Electrocomponents .293.5 -0.3 296.0 205.7 Cove Energy . . . . . . . .87.8 1.3 112.8 47.5
Tsy 4.250 27 . . . .103.62
Tsy 6.000 28 . . . .125.91
-0.01
-0.01
108.8
132.7
97.9
119.5
British Empire Se . . .523.0 0.0
Caledonia Investm .1770.0 -4.0
528.0 404.1
1928.0 1539.0
Schroders . . . . . . . .1633.0 -5.0 1922.0 1154.0
Schroders (Non-Vo .1359.0 -9.0 1554.0 950.5
MAIN CHANGES UK 350 Premier Oil . . . . . . . . .475.4 -1.3
Royal Dutch Shell . .2158.5 -33.5
535.0 282.5
2326.5 1624.0
Experian . . . . . . . . . . .794.5 -5.5
Filtrona PLC . . . . . . . .373.6 2.6
819.0 578.0
385.5 193.8
Daisy Group . . . . . . . .99.5 -0.5
Desire Petroleum . . . .12.8 0.3
108.5
168.5
86.0
11.3
Tsy 4.750 30 . . . .109.39 0.06 115.0 103.0 City of London In . . .299.7 -2.8 304.0 235.0 Tullett Prebon . . . . . .382.4 1.0 428.6 307.5 Royal Dutch Shell . .2167.0 -32.0 2336.0 1554.0 G4S . . . . . . . . . . . . . . .291.0 5.1 294.1 237.7 EMIS Group . . . . . . . .540.0 4.3 555.5 303.5
Tsy 4.125 30 . . . .278.39 0.18 278.5 248.7 Dexion Absolute L . .147.4 -0.6 151.0 131.2 Walker Crips Grou . . .49.0 -1.0 50.0 45.0
Risers % Fallers %
Salamander Energy .284.9 -2.3 317.6 210.0 Hays . . . . . . . . . . . . . .108.7 -0.4 133.6 88.4 Encore Oil . . . . . . . . . .61.3 -3.3 151.5 16.3
Tsy 4.250 32 . . . .102.48 0.04 107.8 96.0 Edinburgh Dragon . .241.7 -1.3 262.1 201.1 Tate & Lyle . . . . . . . . .651.5 5.0 AZ Electronic Mate . .312.0 -7.7 Soco Internationa . . .392.0 -5.5 484.2 292.0 Homeserve . . . . . . . .515.0 -6.5 532.0 398.6 Faroe Petroleum . . . .164.8 2.5 218.3 113.5
Tsy 4.250 36 . . . .102.05 0.05 107.4 95.0 FIXED LINE TELECOMS
Edinburgh Inv Tru . . .487.9 -4.3 494.9 372.2 Gem Diamonds Ltd. .269.7 4.1 Dixons Retail . . . . . . .18.5 -6.1 Tullow Oil . . . . . . . . .1317.0 -30.0 1493.0 991.5 Howden Joinery Gr . .112.2 -1.5 127.5 56.8 Gulfsands Petrole . . .265.0 -0.5 401.5 250.0
Tsy 4.750 38 . . . . .110.73 0.05 116.5 102.8 Electra Private E . . .1725.0 -3.0 1755.0 1177.0 BT Group . . . . . . . . . .201.7 0.9 203.7 125.6 Intertek Group . . . . .2013.0 -33.0 2148.0 1379.0 GW Pharmaceutical .120.5 -3.0 141.0 83.0
Tsy 4.500 42 . . . .107.14 0.00 112.8 98.9 Renishaw . . . . . . . . .1761.0 4.0 Redrow . . . . . . . . . . . .122.9 -5.7 OIL EQUIPMENT & SERVICES
F&C Inv Trust . . . . . .315.4 -1.6 317.9 251.4 Cable & Wireless . . . .43.2 -2.0 62.9 41.9 Elementis . . . . . . . . . .163.4 3.3 National Grid . . . . . . .596.0 -4.8 Michael Page Inte . . .540.5 6.5 567.0 349.4 Hamworthy . . . . . . . .550.0 -20.5 582.0 280.0
Fidelity China Sp . . . .102.6 -2.1 128.7 96.0 Cable & Wireless . . . .50.4 0.7 92.0 46.6 Dunelm Group . . . . . .463.7 3.0 Stobart Group Ltd. . .137.2 -4.7 Amec . . . . . . . . . . . .1137.0 -21.0 1251.0 786.0 Mitie Group . . . . . . . .229.9 -1.6 241.1 188.7 Hargreaves Servic .1015.0 -25.0 1040.0 556.5
ALTERNATIVE ENERGY Fidelity European . .1250.0 -5.0 1287.0 916.0 COLT Group SA . . . .143.0 -2.0 156.2 109.0 Hunting . . . . . . . . . . .766.5 17.5 817.0 439.4 Premier Farnell . . . . .289.6 -3.4 308.8 210.2 Healthcare Locums . .112.5 0.0 112.5 112.5
Glencore Internat . . .513.9 -17.2 531.1 510.5 Fidelity Special . . . . .570.0 -8.5 595.0 503.0 TalkTalk Telecom . . .145.0 0.5 168.3 114.3 Computacenter . . . . .449.0 3.0 Cable & Wireless C . . .43.2 -4.5 John Wood Group . .625.5 -3.0 706.0 293.1 Regus . . . . . . . . . . . . .114.1 -0.9 119.0 66.1 Immunodiagnostic . .957.5 37.5 980.0 575.0
Herald Inv Trust . . . . .516.5 -5.5 541.0 350.5 Lamprell . . . . . . . . . . .400.9 2.5 Vodafone Group . . . .161.6 -4.4 Lamprell . . . . . . . . . . .400.9 9.9 409.6 195.3 Rentokil Initial . . . . . . .97.3 -1.4 121.7 84.3 Impellam Group . . . .326.5 -1.0 387.5 73.0
AEROSPACE & DEFENCE HICL Infrastructu . . . .117.4 -0.6 121.3 112.0 FOOD & DRUG RETAILERS Daejan Holdings . . .2790.0 2.4 Lloyds Banking Gro . .50.0 -3.8 Petrofac Ltd. . . . . . .1573.0 -30.0 1685.0 1140.0 RPS Group . . . . . . . . .245.3 -2.2 251.4 169.8 James Halstead . . . . .480.0 10.0 489.0 306.0
BAE Systems . . . . . .329.5 -0.7 369.9 294.7 Impax Environment .119.8 -1.9 130.5 106.5 Booker Group . . . . . . .68.6 -0.4 70.3 39.5 Hunting . . . . . . . . . . .766.5 2.3 Anglo Pacific Grou . .301.1 -3.3 PERSONAL GOODS Serco Group . . . . . . .572.5 -4.5 640.0 529.5 Kalahari Minerals . . .230.0 1.0 301.0 142.0
Chemring Group . . . .651.0 -14.5 736.5 519.6 JPMorgan American .880.5 -5.5 909.0 673.0 Greggs . . . . . . . . . . . .529.5 3.5 532.5 418.7 St. Modwen Propert .185.3 2.3 Glencore Internati . . .513.9 -3.2 Shanks Group . . . . . .125.1 -1.9 128.5 96.5 London Mining . . . . .397.0 0.3 436.5 194.0
Cobham . . . . . . . . . . .225.6 -1.0 247.6 192.3 JPMorgan Asian In . .233.5 -0.5 250.8 187.0 Morrison (Wm) Sup .301.8 -1.8 308.3 257.7 Burberry Group . . . .1326.0 7.0 1365.0 704.0 SIG . . . . . . . . . . . . . . .149.3 -2.9 153.5 90.7 Lupus Capital . . . . . .132.0 0.0 150.0 72.0
Meggitt . . . . . . . . . . . .364.0 -2.8 380.9 261.7 JPMorgan Emerging .582.5 -2.0 639.0 479.5 Ocado Group . . . . . . .220.9 -1.8 285.0 123.5 Price Chg High Low Price Chg High Low PZ Cussons . . . . . . . .363.0 -1.0 409.0 291.6 SThree . . . . . . . . . . . .408.5 -2.6 447.6 231.1 M. P. Evans Group . .415.3 -5.0 500.5 317.5
QinetiQ Group . . . . . .113.7 -0.9 136.3 96.7 JPMorgan European .921.0 -6.0 983.5 614.0 Sainsbury (J) . . . . . . .341.9 -3.7 395.0 317.2 Supergroup . . . . . . .1123.0 11.0 1820.0 605.0 Travis Perkins . . . . .1067.0 -8.0 1127.0 709.0 Majestic Wine . . . . . .437.5 7.3 437.5 268.0
Rolls-Royce Group . .627.5 -8.5 665.0 535.0 JPMorgan Indian I . . .410.5 -1.5 502.0 393.0 Tesco . . . . . . . . . . . . .418.5 -0.6 440.7 377.5 Berkeley Group Ho .1125.0 -4.0 1156.0 751.0 Haynes Publishing . .246.5 0.0 262.5 202.5 AstraZeneca . . . . . .3185.0 7.5 3385.0 2801.5 Wolseley . . . . . . . . .2021.0 -37.0 2261.0 1223.0 May Gurney Integr . .272.0 1.8 274.7 177.0
Senior . . . . . . . . . . . . .152.5 -2.5 159.5 111.2 JPMorgan Russian .646.5 -6.0 755.0 502.0 FOOD PRODUCERS Bovis Homes Group .438.7 -6.4 464.7 326.6 Huntsworth . . . . . . . . .74.3 0.5 87.5 65.0 PHARMACEUTICALS & BIOTECH Monitise . . . . . . . . . . . .27.5 0.0 29.5 17.8
Law Debenture Cor . .367.1 -5.3 373.0 273.3 TECHNOLOGY HARDW. & EQUIP. Mulberry Group . . . .1407.0 -44.0 1610.0 200.5
Ultra Electronics . . .1695.0 4.0 1895.0 1522.0 Persimmon . . . . . . . .473.6 -3.6 502.5 336.5 Informa . . . . . . . . . . . .428.0 -7.0 461.1 342.1
GKN . . . . . . . . . . . . . .219.0 0.0 237.1 109.3 Mercantile Inv Tr . . .1089.0 -6.0 1137.0 840.0 Associated Britis . .1081.0 4.0 1182.0 940.0 Reckitt Benckiser . .3419.0 -18.0 3648.0 3015.0 ITE Group . . . . . . . . . .244.4 -3.4 258.2 136.2 BTG . . . . . . . . . . . . . .274.4 1.5 281.5 180.0 ARM Holdings . . . . . .571.5 -1.0 651.0 252.5 Nanoco Group . . . . . . .79.3 -0.3 115.8 68.0
AUTOMOBILES & PARTS Merchants Trust . . . .427.5 -4.3 435.5 320.0 Cranswick . . . . . . . . .762.5 3.0 907.5 735.0 Redrow . . . . . . . . . . . .122.9 -7.4 139.0 97.5 ITV . . . . . . . . . . . . . . . . .70.1 -1.0 93.5 48.3 Genus . . . . . . . . . . . . .980.0 5.0 1000.0 704.5 CSR . . . . . . . . . . . . . .350.7 -8.5 447.0 280.9 Nautical Petroleu . . .356.0 15.8 547.0 50.5
Monks Inv Trust . . . .352.4 -2.0 367.9 275.5 Dairy Crest Group . . .395.6 7.5 424.9 339.7 Taylor Wimpey . . . . . . .36.6 -0.3 43.3 22.3 Johnston Press . . . . . . .4.6 -0.1 20.0 4.5 GlaxoSmithKline . . .1307.0 -13.0 1348.5 1095.0 Imagination Techn . .502.0 8.7 506.0 235.0 Nichols . . . . . . . . . . . .552.5 -10.0 570.0 370.0
Barclays . . . . . . . . . . .269.7 -7.0 344.0 255.4 Murray Income Tru . .663.5 -8.5 673.0 518.0 Devro . . . . . . . . . . . . .281.9 -4.8 296.9 171.8 Mecom Group . . . . . .254.3 2.5 310.0 162.0 Hikma Pharmaceuti .852.5 2.5 900.0 674.5 Pace . . . . . . . . . . . . . .115.2 -2.6 231.8 93.0 Numis Corporation . .109.0 -5.0 146.5 94.0
Murray Internatio . . .950.5 3.0 966.0 803.0 Premier Foods . . . . . . .32.4 0.1 35.1 16.0 INDUSTRIAL ENGINEERING Moneysupermarket. . .99.5 0.4 102.7 64.0 Shire Plc . . . . . . . . . .1927.0 10.0 1961.0 1341.0 Spirent Communica .153.0 -1.1 160.3 104.5 Patagonia Gold . . . . . .47.0 0.8 59.3 12.5
BANKS
Perpetual Income . . .274.0 -2.0 277.9 212.0 Tate & Lyle . . . . . . . . .651.5 31.0 683.0 409.1 Bodycote . . . . . . . . . .377.3 -1.4 397.7 182.5 Pearson . . . . . . . . . .1126.0 -16.0 1171.0 864.0 Pursuit Dynamics . . .381.0 1.0 700.0 188.0
Polar Cap Technol . .353.1 -2.9 391.2 273.6 Unilever . . . . . . . . . .1980.0 9.0 2000.0 1688.0 REAL ESTATE INVEST. & SERV. TOBACCO Rockhopper Explor .255.0 24.0 510.0 202.5
HSBC Holdings . . . . .631.8 -3.0 730.9 596.2 Charter Internati . . . .778.0 -2.0 853.5 567.0 Reed Elsevier . . . . . .549.0 -2.0 590.5 471.4
Lloyds Banking Gr . . .50.0 -2.0 77.6 49.7 RIT Capital Partn . . .1290.0 -13.0 1328.0 1056.0 Fenner . . . . . . . . . . . .385.5 -2.8 392.9 186.8 Rightmove . . . . . . . .1101.0 -3.0 1114.0 596.5 Capital & Countie . . .179.1 -0.8 181.0 100.2 British American . .2733.0 11.0 2748.5 2091.0 RWS Holdings . . . . . .392.0 3.0 418.0 239.0
Royal Bank of Sco . . .41.9 -0.8 52.1 37.6 Schroder Asia Pac . .223.9 -1.6 233.6 182.8 FORESTRY & PAPER STV Group . . . . . . . . .135.0 0.0 168.0 66.0 Daejan Holdings . . .2790.0 64.0 2919.0 2220.0 Imperial Tobacco . .2184.0 8.0 2231.0 1784.0 Songbird Estates . . .154.0 -5.5 159.5 133.8
IMI . . . . . . . . . . . . . . .1039.0 1.0 1112.0 642.0
Standard Chartere .1605.5 -22.5 1950.0 1522.2 Scottish Inv Trus . . . .500.5 -2.5 517.0 401.5 Mondi . . . . . . . . . . . . .615.5 4.0 622.5 367.6 Melrose . . . . . . . . . . .342.4 0.2 355.5 203.4 Tarsus Group . . . . . .147.0 3.0 165.0 108.0 F&C Commercial Pr .104.0 0.7 108.0 88.0 Sterling Energy . . . . . .48.5 2.8 147.0 44.0
Scottish Mortgage . .735.0 -4.0 764.0 533.0 Grainger . . . . . . . . . . .125.9 0.6 128.2 86.3 TRAVEL & LEISURE Valiant Petroleum . . .597.5 22.5 761.5 504.0
AG Barr . . . . . . . . . .1358.0 -2.0 1395.0 973.0 GAS, WATER & MULTIUTILITIES Northgate . . . . . . . . . .327.0 -1.0 346.7 152.3 Trinity Mirror . . . . . . . .46.3 -0.5 124.3 45.3
BEVERAGES SVG Capital . . . . . . . .256.0 -7.2 279.8 137.8 Rotork . . . . . . . . . . .1738.0 14.0 1895.0 1254.0 United Business M . .577.0 -3.0 725.0 483.8 Helical Bar . . . . . . . . .266.3 -5.6 339.5 255.3 Avis Europe . . . . . . . .184.0 -0.2 269.7 184.0 Vatukoula Gold Mi . . .117.0 -13.0 227.0 84.0
Temple Bar Inv Tr . . .933.0 -12.0 947.5 717.0 Centrica . . . . . . . . . . .316.7 -1.4 346.1 274.5 Spirax-Sarco Engi . .2000.0 7.0 2063.0 1346.0 UTV Media . . . . . . . . .125.0 -5.0 151.0 106.0 London & Stamford .134.5 -1.0 135.5 110.3 Betfair Group . . . . . . .835.0 -4.0 1550.0 753.0 Young & Co's Brew . .685.0 18.5 685.0 510.0
Britvic . . . . . . . . . . . . .436.6 0.2 518.0 364.5 Templeton Emergin .635.5 -4.5 689.5 515.0 International Pow . . .318.0 -0.9 448.6 289.6 Weir Group . . . . . . .1960.0 -35.0 2005.0 894.0 Wilmington Group . .120.3 -1.3 183.0 120.0 Savills . . . . . . . . . . . . .413.4 3.3 427.1 273.1 Bwin.party Digita . . .143.7 -1.9 309.5 127.5
Diageo . . . . . . . . . . .1296.0 2.0 1308.0 1033.0 TR Property Inv T . . .198.5 -2.5 202.5 132.3 National Grid . . . . . . .596.0 -30.0 632.5 484.2 Ferrexpo . . . . . . . . . . .452.8 -4.8 499.0 235.0 WPP . . . . . . . . . . . . . .738.0 -19.0 846.5 614.5 St. Modwen Proper . .185.3 4.2 189.9 135.4 Carnival . . . . . . . . . .2411.0 -30.0 3153.0 2037.0
SABMiller . . . . . . . . .2243.0 -6.5 2306.0 1827.0 TR Property Inv T . . . .90.0 -1.0 91.7 59.5 Northumbrian Wate .358.9 -3.8 365.3 278.4 Talvivaara Mining . . .486.7 5.4 622.0 351.6 Yell Group . . . . . . . . . . .6.2 -0.2 32.5 5.8 UK Commercial Pro . .84.1 0.4 85.0 74.3 Compass Group . . . .591.0 0.0 594.0 501.0
AZ Electronic Mat . . .312.0 -26.1 338.1 248.5 Witan Inv Trust . . . . .511.0 -5.0 528.0 409.9 Pennon Group . . . . . .668.0 -7.0 677.0 527.0 Unite Group . . . . . . . .218.0 2.3 229.8 163.0 Domino's Pizza UK . .398.8 0.6 586.0 349.6
Severn Trent . . . . . .1505.0 -9.0 1521.0 1216.0 INDUSTRIAL TRANSPORTATION MINING easyJet . . . . . . . . . . . .363.8 0.8 479.0 322.3
CHEMICALS FINANCIAL SERVICES REAL ESTATE INVEST. TRUSTS
United Utilities . . . . .618.0 -4.0 632.0 520.0 BBA Aviation . . . . . . .217.3 -1.5 240.8 175.0 African Barrick G . . .455.4 0.4 670.0 445.0 Enterprise Inns . . . . . .79.4 0.8 122.7 77.0
Croda Internation . .1949.0 2.0 1970.0 963.5 3i Group . . . . . . . . . . .286.1 -2.1 340.0 254.1 Forth Ports . . . . . . . .1627.0 0.0 1629.0 1627.0 Anglo American . . .3016.5 -13.5 3437.0 2254.0 Big Yellow Group . . .340.5 -0.8 353.3 284.4 FirstGroup . . . . . . . . .337.1 -1.2 412.6 311.3
GENERAL INDUSTRIALS
Elementis . . . . . . . . . .163.4 5.2 169.8 58.8 3i Infrastructure . . . .122.6 -0.2 125.2 106.6 Stobart Group Ltd . . .137.2 -6.7 163.6 124.1 Anglo Pacific Gro . . .301.1 -10.2 369.3 241.0 British Land Co . . . . .593.0 -4.5 604.5 429.0 Go-Ahead Group . . .1453.0 16.0 1504.0 1042.0 http://corporate.webfg.com
Johnson Matthey . .2081.0 -38.0 2129.8 1460.0 Aberdeen Asset Ma .233.9 -0.3 240.0 123.0 Cookson Group . . . . .680.0 -7.5 724.5 367.4 Antofagasta . . . . . . .1309.0 -20.0 1634.0 761.0 Capital Shopping . . .396.6 -12.0 424.8 301.3 Greene King . . . . . . .492.1 3.0 502.5 376.2 mailto:
Victrex . . . . . . . . . . .1480.0 -29.0 1525.0 1049.0 Ashmore Group . . . .377.1 -2.3 383.8 236.5 DS Smith . . . . . . . . . .212.1 1.1 226.0 108.0 NON LIFE INSURANCE Aquarius Platinum . .341.0 -1.8 419.0 227.1 Derwent London . . .1832.0 1.0 1851.0 1208.0 InterContinental . . .1278.0 -17.0 1435.0 982.0
Berkeley Technolo . . . .4.3 0.0 9.0 2.2 Rexam . . . . . . . . . . . .395.2 -4.8 400.7 290.4 Admiral Group . . . . .1703.0 -20.0 1754.0 1307.0 BHP Billiton . . . . . . .2392.0 -11.0 2631.5 1684.5 Great Portland Es . . .436.0 -5.6 442.0 280.5 International Con . . .234.9 -1.6 305.0 186.5 globaltechsales@webfg.com

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Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................95.25 -1.28 100.65 78.26 3M ........................................................91.44 -2.94 97.95 72.72
ALLIANZ ..............................................94.72 -1.46 108.85 77.48 ABBOTT LABS ...................................51.92 -0.33 54.24 44.59
ALSTOM ..............................................42.75 -0.28 45.32 30.78 ALCOA ................................................16.09 -0.72 18.47 9.81

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ANHEUS-BUSCH INBEV ....................41.75 -0.17 46.33 38.37 ALTRIA GROUP ..................................27.92 -0.14 28.13 19.53
ARCELORMITTAL...............................22.77 -0.41 28.55 20.26 AMAZON.COM..................................192.40 -4.30 206.39 105.80
AXA......................................................15.06 0.22 16.16 10.88 AMERICAN EXPRESS........................49.91 -1.69 51.97 37.13
BANCO SANTANDER...........................8.09 -0.17 10.23 7.00 AMGEN INC.........................................59.70 -0.84 61.53 50.34
BASF SE..............................................63.41
BAYER .................................................56.60
BBVA......................................................7.96
BMW ....................................................60.61
-0.85
-0.35
-0.16
-0.87
70.22
59.44
10.71
65.49
40.74
43.27
6.75
36.98
10:30 AM EMAIL APPLE ...............................................345.51
AT&T....................................................31.17
BANK OF AMERICA ...........................11.24
BERKSHIRE HATAW B.......................77.08
-2.32
-0.39
-0.51
-1.99
364.90
31.94
16.18
87.65
236.78
23.88
10.91
69.61
BNP PARIBAS.....................................53.80 -0.42 59.93 40.81 BOEING CO.........................................75.35 -2.68 80.65 59.48
CARREFOUR ......................................30.43
CREDIT AGRICOLE ............................10.53
-0.35
-0.09
41.28
12.92
29.83
7.87
Each day we’ll cover the morning’s breaking news, BRISTOL MYERS SQUI......................28.27
CATERPILLAR ..................................101.24
-0.49
-4.56
28.99
116.55
22.31
54.89
CRH PLC .............................................14.89
DAIMLER .............................................48.51
-0.25
-0.60
19.92
59.09
11.51
37.03 give you current market analysis and CHEVRON .........................................102.49
CISCO SYSTEMS................................16.38
-2.42
-0.42
109.94
26.00
66.83
16.11
DANONE..............................................50.76 -0.19 51.33 41.00 CITIGROUP .........................................39.65 -1.50 51.50 36.20
DEUTSCHE BANK ..............................41.05 -0.37 51.61 35.93 the most up-to-date financial headlines. COCA-COLA .......................................66.76 -0.05 68.77 49.47
DEUTSCHE BOERSE .........................54.61 -0.17 62.48 46.33 COLGATE PALMOLIVE ......................86.91 -0.62 87.58 73.12
DEUTSCHE TELEKOM .......................10.22 -0.12 11.38 8.95 CONOCOPHILLIPS.............................72.34 -0.88 81.80 48.06

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E.ON.....................................................19.39 -0.35 25.54 19.34 DU PONT(EI) DE NMR........................51.57 -1.73 57.00 33.73
ENEL......................................................4.75 -0.03 4.86 3.42 EMC CORP..........................................28.06 -0.41 28.73 17.72

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ENI .......................................................16.49 -0.17 18.66 14.59 EXXON MOBIL....................................82.03 -1.44 88.23 55.94
FRANCE TELECOM............................15.66 -0.24 17.45 14.01 GENERAL ELECTRIC.........................19.13 -0.51 21.65 13.75
GDF SUEZ ...........................................25.17 -0.40 30.05 22.64 GOLDMAN SACHS GRP ..................136.25 -4.41 175.34 129.50
GENERALI ASS...................................15.10 -0.11 17.05 13.31 GOOGLE A........................................525.60 -3.42 642.96 433.63
IBERDROLA ..........................................6.10 -0.05 6.50 4.38 HEWLETT PACKARD .........................36.63 -0.75 49.39 35.44
ING GROEP CVA...................................8.19
INTESA SANPAOLO .............................1.75
-0.19
-0.05
9.50
2.53
5.86
1.65
Visit: www.CityAM.com/newsletter HOME DEPOT.....................................35.40
IBM.....................................................166.56
-0.88
-2.37
39.38
173.54
26.62
120.61
KON.PHILIPS ELECTR .......................19.05 -0.23 26.87 18.86 INTEL CORP .......................................22.00 -0.51 23.96 17.60
L'OREAL..............................................86.67 -0.76 90.00 74.50 J.P.MORGAN CHASE .........................41.76 -1.48 48.36 35.16
LVMH..................................................120.10 -0.80 129.05 83.66 WORLD INDICES JOHNSON & JOHNSON.....................66.48 -0.81 67.37 56.86
MUNICH RE .......................................105.45 -1.15 126.00 98.38 KRAFT FOODS A................................34.73 -0.24 35.44 27.59
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................4.71 -0.04 8.49 4.27 MC DONALD'S CORP ........................80.98 -0.56 83.08 65.31
FTSE 100 . . . . . . . . . . . . . . 5928.61 -61.38 -1.02 S&P 500 . . . . . . . . . . . . . . . 1314.55 -30.65 -2.28 CAC 40 . . . . . . . . . . . . . . . . 3964.81 -42.13 -1.05 BOVESPA SAO PAOLO . . 63411.48-1208.60 -1.87
REPSOL YPF.......................................23.16 -0.52 24.90 15.67 MERCK AND CO. NEW ......................36.25 -0.50 37.68 31.06
FTSE 250 INDEX . . . . . . . 12009.84 -50.95 -0.42 NASDAQ COMPOSITE . . . 2769.19 -66.11 -2.33 SHANGHAI SE INDEX . . . . 2743.57 0.10 0.00 ISEQ OVERALL INDEX . . . 2971.30 1.73 0.06
RWE .....................................................40.11 -0.42 59.85 40.01 MICROSOFT........................................24.43 -0.58 29.46 22.73
FTSE UK ALL SHARE . . . . 3092.54 -28.53 -0.91 FTSEUROFIRST 300 . . . . . 1131.01 -11.17 -0.98 HANG SENG. . . . . . . . . . . 23626.43 -57.70 -0.24 STI . . . . . . . . . . . . . . . . . . . . 3172.87 12.94 0.41
SAINT-GOBAIN ...................................45.63 -0.30 47.64 27.81 OCCID. PETROLEUM.......................103.68 -4.17 117.89 72.13
FTSE AIM ALL SH . . . . . . . . 890.60 -0.18 -0.02 NIKKEI 225 AVERAGE . . . . 9719.61 25.88 0.27 S&P/ASX 20 INDEX . . . . . . 2826.50 -5.10 -0.18 IGBM . . . . . . . . . . . . . . . . . . 1052.78 -13.59 -1.27
SANOFI................................................54.00 -1.02 56.50 44.01 ORACLE CORP...................................32.88 -1.34 36.50 21.24
DOW JONES INDUS 30 . . 12290.14 -279.65 -2.22 DAX 30 PERFORMANCE. . 7217.43 -76.26 -1.05 ASX ALL ORDINARIES . . . 4788.60 -0.30 -0.01 SWISS MARKET INDEX. . . 6496.47 -58.24 -0.89
SAP ......................................................42.89 -0.28 46.15 34.13 PEPSICO .............................................70.29 -0.83 71.89 60.32
SCHNEIDER ELECTRIC ...................113.20
SIEMENS .............................................91.39
-1.40
-1.61
123.65
99.39
79.35
70.02
COMMODITIES CREDIT & RATES PFIZER ................................................21.05
PHILIP MORRIS INTL .........................71.07
-0.40
-0.68
21.45
71.75
14.00
42.94
SOCIETE GENERALE.........................40.53 -0.72 52.70 29.71 LON GD ONCE FIX AM...........1532.25 -4.75 TIN CASH.............................27950.00 910.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.250 0.00 PROCTER AND GAMBLE ..................66.40 -0.60 67.72 56.57
TELECOM ITALIA..................................0.98 -0.00 1.16 0.88 SILVER LDN FIX AM ..................38.36 -0.04 ZINC CASH ............................2249.00 32.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 QUALCOMM INC ................................57.16 -1.44 59.84 31.63
TELEFONICA ......................................16.70 -0.18 19.69 14.83 MAPLE LEAF 1 OZ ....................60.00 4.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 SCHLUMBERGER ..............................83.19 -2.53 95.64 51.67
BRENT SPOT INDEX ................116.63 1.87 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.03
TOTAL..................................................39.58 -0.45 44.55 35.66 LON PLATINUM AM................1819.00 -2.00 TRAVELERS CIES ..............................61.20 -0.88 64.17 47.77
SOYA .....................................1376.00 -3.75 BoE IR 6 months ............................0.545 0.00 European repo rate .........................0.854 -0.01
UNIBAIL-RODAMCO SE...................155.20 -1.50 159.30 108.66 LON PALLADIUM AM ...............773.00 -2.00 UNITED TECHNOLOGIE ....................84.30 -3.47 90.67 62.88
COCOA ..................................2999.00 30.00 LIBOR Euro - overnight ..................0.845 -0.06 Euro Euribor ....................................1.058 -0.02
UNICREDIT............................................1.54 -0.04 2.24 1.46 ALUMINIUM CASH .................2648.00 51.00 LIBOR Euro - 12 months ................2.106 0.00 The vix index ...................................17.73 2.28 VERIZON COMMS ..............................36.27 -0.66 38.95 25.30
UNILEVER CVA...................................22.74 0.06 24.11 20.68 COPPER CASH ......................9224.00 74.50 COFFEE...................................264.60 0.90 WAL-MART STORES..........................54.30 -0.92 57.90 47.77
LIBOR USD - overnight...................0.127 0.00 The baltic dry index ........................1.480 0.00
VINCI....................................................44.18 -0.66 45.48 33.01 LEAD CASH ...........................2531.00 -9.00 KRUG.....................................1603.60 10.20 LIBOR USD - 12 months .................0.729 0.00 Markit iBoxx...................................221.09 0.69 WALT DISNEY CO ..............................40.40 -1.23 44.34 30.72
VIVENDI ...............................................19.28 -0.12 22.07 16.25 NICKEL CASH ......................23150.00 30.00 WHEAT ....................................187.75 -2.00 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................95.06 0.00 WELLS FARGO & CO.........................26.94 -1.43 34.25 23.02
CITYA.M. 2 JUNE 2011 21

Wealth Management | Funds

Demographic
IN FOCUS | TOP 10 HEALTHCARE FUNDS SOURCE:MORNINGSTAR
UK REGISTERED 30/05/08 LATEST LATEST DOMICILE PORTFOLIO MANAGEMENT
INVESTMENT FUNDS – 31/05/11 SHARE PORTFOLIO MANAGER(S) GROUP
PERFORM. PRICE SIZE
CHANGE (%) (£) (£M)

trends set to
Atlantis China Healthcare 65.91 1.28 44.55 Ireland Yang Liu Atlantis Investment Management
Wellington Mgmt Global Health Care G 51.93 25.70 136.39 Ireland Edward Owens Wellington Management Company
BGF World Healthscience A2 USD 50.18 17.95 369.14 Luxembourg Tom Callen Blackrock (Luxembourg)
JPM Global Healthcare A (acc) - USD 44.19 124.37 29.94 Luxembourg Nicole Vettise JPMorgan Asset Management
AXA WF Frm Health AC USD 44.12 118.20 21.22 Luxembourg Gemma Game AXA Investment Managers Paris

lead to boom AXA Framlington Health Inc

Schroder Medical Discovery Acc
L&G Glbl Health and Pharma Index I Inc
Pictet-Generics-HP EUR
iShares STOXX Europe 600 HC (DE) ETF
43.85
43.76
42.45
42.04
41.55
7.73
0.63
0.25
120.46
41.97
267.31
62.82
49.66
273.78
N/A
United Kingdom
United Kingdom
United Kingdom
Luxembourg
Germany
Deane Donnigan
John Bowler
Shadi Sarhangpour
Paulina Niewiadomska
Management Team
AXA Investment Managers UK
Schroder Unit Trusts
Legal & General Unit Trust Managers
Pictet Funds (Europe)
iShares

in healthcare
Rising life expectancies and incomes
will increase demand for products and
services in health, says Philip Salter

I
NVESTORS have been profiting risks: failure and regulation.
from a healthcare revolution Pinniger notes that on the clinical
sweeping the globe, which still development side, only 1 in 10 proj-
has a long way to run. ects go to market and the product
Stephen Barber of Selftrade notes development is both slow and expen-
two global demographic changes set sive. Although exciting biotechnolo-
to increase demand for healthcare: gies are about to hit the market – for
“The ageing population and the example, fighting prostate cancer
growth of the middle classes in the and hepatitis C – he thinks picking
emerging world, led by China and winners is difficult. He says the diver-
India.” Across the world, population sification offered by a fund makes a
pyramids are turning into rectangles, lot of sense, noting that UK investors
says Dan Mahoney, who co-manages just in UK biotech would have lost
the healthcare fund at Polar Capital. money in recent years. Mahoney cau-
Barber cites “a massive demo- tions that trends play out differently
graphic shift in the newly wealthy in different countries. Thus, the
corners of the world.” Peter Kirkman, recent crisis in UK care homes,
fund manager of the JP Morgan played out in Southern Cross, con-
Global Consumer Trends Fund trasts with the relative success of
explains: “Growth for the healthcare French and American care homes.
sector is shifting eastwards.” He Government regulations could
points out: “Emerging markets are also throw a spanner in the works,
forecast to contribute 70 per cent of especially in China where the govern-
pharmaceutical growth in the next ment has ploughed in vast amounts
five years. Added to this, the Chinese of cash. However, as messy as govern-
government is committed to invest- ment intervention can be, it won’t be
ing £125bn to support healthcare able to dampen peoples’ aspiration to
reform between 2009 and 2011. extend and improve the quality of
Governments in Russia and Brazil their lives and the profitability of
have made similar commitments.” companies making it happen.
The Atlantis China Healthcare
fund has been top of the tree over the
last three years, profiting from buy-
ing into newly listed companies
in China – 2010 saw $6.9bn of
activity with 24 new health-
care IPOs. The fund started off
holding the medical group
Shandong Weigao, which remains a
major constituent of their current
portfolio. Roger Mortimer of Atlantis
Investment Management says that
although the US healthcare market
dwarfs the Chinese market – $2 tril-
lion versus $240bn – he expects
25 per cent compound annual
growth rate (CAGR) over the
coming years. Mortimer believes
China trumps developed mar-
kets because its healthcare is
high growth as well as defensive.
US companies still dominate in
other leading funds. Wellington
Management Global Health Care
G, BGF World Healthscience A2
and JPM Global Healthcare A
have 80.94, 97.61 and 98.90 per
cent invested in the US. David
Pinniger of the International
Biotechnology Trust (IBT)
explains that healthcare innova-
tion is still based in centres of
excellence in the developed world.
Healthcare companies face two key
 22

Business Features Structured Finance |

TRUST IS MOVING
FORWARD FOR ASSET Allowing the
BACKED SECURITIES
LEON WEBB
SENIOR PRICING ANALYST
securitisation
F
STANDARD & POOR’S SECURITIES EVALUATIONS
OLLOWING the onset of the finan-
cial crisis in 2008 – and the result-
ing loss of confidence in the
performance of Asset Backed
structured finance.
Certainly, the outlook for ABS has
significantly improved relative to the
pessimism of two years ago, aided by
sector revival
Securities (ABS) – distressed or forced
sales led to depressed valuations. Yet
the assets themselves suffered few
actual defaults – in fact mostly per-
forming as expected. It was the forced
selling, or the paper losses due to mark-
to-market valuations, that led to this
both improving credit performance and
amortisation. With higher underwriting
standards and more protection for
investors, the ABS market looks to
have re-secured its long term status as
an important funding tool – if still only
one for sophisticated investors.
to flourish
collapse in confidence for this asset
class. CHALLENGES AHEAD An essential part of economic recovery, it is
Of course, ABS as an asset class
presents unique valuation challenges –
However, challenges remain. For exam-
ple, a smarter approach to valuation is important that this important industry is
due in no small part to its reliance on
inherently uncertain future cash flows.
required in order to create a more
accurate reflection of pricing and value give freedom to rebuild, writes Craig Drake
However, increased investor protection in the ABS market.

has led to prices recovering to levels
not seen since the middle of 2008.
Added to this, the strong value offered
by ABS bonds compared to other asset
classes gives them excellent upside
potential, especially in the present low
interest rate environment. For example,
a “AAA” rated Dutch Residential
Mortgage Backed Security with a five-
year weighted average life recently
traded at a spread of 128 basis points
(bps) over three month Euribor, while a
corporate bond of similar maturity and
rating traded at a spread of just 88
bps.
Furthermore, the opportunity for
strong returns has been enhanced for
those with a higher risk tolerance.
Some “BBB” rated bonds have become
heavily discounted due to a growing
risk aversion among investors,
although some hedge funds have been
successfully picking bargains. That
said, the gap between senior and sub-
ordinated ABS spreads is narrowing,
revealing that risk appetite is making a
strong return across the ABS asset
class.
In fact – and perhaps surprisingly –
stability has been one characteristic of
the ABS market of late. The sovereign
debt crisis and rating downgrades on
sovereign bonds have both failed to sig-
nificantly dent bond prices in European
Yet as liquidity has returned the vol-
ume of market information – encourag-
ing price transparency – has also
improved. This includes publications
such as Standard & Poor’s
Assumptions Survey, an industry-wide
perspective on modelling assumptions
in European ABS. Furthermore,
investors now have the tools available
to compare their own views on bond
valuations to those produced by the
likes of Standard & Poor’s Security
Evaluations (SPSE).
Also, cash flow modelling engines
such as S&P’s ABSXchange are being
adopted by an increasing number of
investors to analyse different stress
levels on the collateral pools that sup-
port ABS issuance and by extension on
ABS pricing.
The challenge to fully rebuild
investor confidence in the ABS market
has yet to be won. Nevertheless, with
more advanced risk evaluation, thanks
to new loan-level data sets and also
more robust analytics entering the
market, the long road to recovery in
investor confidence seems to be
unwinding.
A
S the US and European finan-
cial sectors continue to collec-
tively dust themselves off after
the financial crash of 2008, it
is clear that securitisation is vital for
market stability and for economic
growth – allowing for more efficient
use of capital, higher liquidity and
more stable risk management.
According to the Bank for
International Settlements, in 2006
the volume of asset-backed securities
(ABS) issued in the US and the EU was
around $4 trillion. This was compara-
ble to the value of gross corporate
bond issuance. Treated as a black
sheep by politicians, the ABS sector
for securitised products shrank to $1
trillion by 2009.
The sector is now returning to
growth, but in the middle of the cur-
rent bun-fight for regulatory control,
it is essential that a regulatory sledge-
hammer is not used to crack the
financial walnut.
EU AND US DIFFERENCES
In Europe, securitisation is particular-
ly important as a means to restore
healthy growth to economies. By way
of comparison, within the EU, banks
provide around two thirds of non-
equity external finance – with the
remainder provided by capital mar-
kets. In the US, this ratio is reversed.
As banks are pushed to deleverage
and rebalance their balance sheets,
and as a result are left with less
money to lend, securitisation is neces-
sary to provide the required funding.
According to Rick Watson of the
European Securitisation Forum, “in
Europe this is a particularly impor-
tant issue because in the past a larger
proportion of funding was provided
by banks than capital markets. Some
EU banks relied upon a high leverage,
low risk, low margin business and
funding strategy. Securitisation really
is the only way to to solve the policy

The Two Wise Men?

If you’re not getting data, support and ANALYSIS,
you’re not getting the full story.
The credit-related analyses, including ratings, of Standard & Poor's and its affiliates are statements of opinion as of the date they are expressed and not statements of fact or
recommendations to purchase, hold, or sell any securities or to make any investment decisions. Ratings, credit-related analyses, data, models, software and output therefrom should
not be relied on when making any investment decision. Standard & Poor's opinions and analyses do not address the suitability of any security. Standard & Poor's does not act as a
fiduciary or an investment advisor.
© 2011 Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. STANDARD & POOR’S and ABSXCHANGE are trademarks of
Standard & Poor’s Financial Services, LLC

friction between politicians encour-
aging banks to lend more without
increasing leverage.”
BASEL III REQUIREMENTS
The challenge for regulators, as they
deal with bank deleveraging, changes
to financial institutions and new cap-
ital requirements, is that they must
not interfere with the smooth run-
ning of the pan-European securitisa-
tion markets.
At the same time, there are fears
that the securitisation sector could
get trampled in the regulatory stam-
pede. Specifically, as the tougher reg-
ulatory capital requirements for
banks kick in, there is the risk that
Standard & Poor’s ABSXchange™ empowers analytics:
take ABS data and models in-house with locally hosted,
integrated API and Excel delivery solutions. Access scripting
codes to customise your analytics.
Analytical Strength
• Pre-issuance Models
• Counterparty Default Analysis
• Portfolio Batch Assumptions
• Index Forward Curves
• Master Trust Models Coverage
the requirements could raise the
costs of securitisation.
Last year, the Bank for
International Settlements
announced stricter regulatory
requirements for banks in form of
Basel III. This came as part of several
revisions to the regulatory capital
framework – collectively known as
Basel II – that the Basel Committee on
Bankink Supervision had previously
proposed to address the issues that
were seen to influence the credit cri-
sis (see summary, right).
According to a report from the rat-
ing arm of Standard and Poor’s: “We
believe the adoption of the Basel III
capital requirement platform is likely
to raise the cost of securitisation and
could influence the strategies of
banks that originate or invest in
structured finance transactions.”
EC UNSWAYED
In the debate on the correct approach
to regulatory reform, European
Commissioner Michel Barnier has
become increasingly hostile. Last
week he responded to criticism by
saying “some were accusing us of
damaging the economic recovery by
implementing rules which would be
too tough for banks because they
would impede their lending to the
real economy.” He continued, “others
seem to accuse us of the opposite
To find out more about how we can help, call
+44 20 7176 3566 or email
absxchange@standardandpoors.com
www.absxchange.com
ABSXchange™
One platform to monitor all your transactions.
Regulators should
be wary not to
stamp out the
greet shoots of
recovery
Picture: REX
with suggestions Europe would not
be implementing Basel properly, thus
not learning all the lessons from the
crisis.” With a hint of the flexibility
and ability to respond to market
demands for which the EC is famed,
he concluded “they will not affect my
determination. I will not be swayed
by various pressures.”
As things stand, banks are being
pulled in both directions – respond-
ing to capital reserve requirements as
well as being pushed to lend more. As
such, the regulators need to listen to
the needs of the securitisation sector
rather than simply pushing through
heavy handed regulation in the name
of being seen to do the right thing.
23
Tough capital
requirements
from Basel III
L
AST year, the Bank for
International Settlements (BIS)
announced new, stricter regula-
tory capital requirements for
banks. This proclamation marked the
adoption of several revisions to the
regulatory capital framework – collec-
tively known as Basel III – that the
Basel Committee on Banking
Supervision (BCBS) had previously pro-
posed to address some of the main
issues that arose during the credit cri-
sis.
The Basel directive requires that
banks hold capital “against all of their
securitisation exposures, including
those arising from the provision of
credit risk mitigants to a securitisa-
tion transaction, investments in asset-
backed securities, retention of a
subordinated tranche, and extension
of a liquidity facility or credit
enhancement.”
Piled on top of the existing 2006
Basel II framework, Basel III includes
some specific changes to the way that
banks will be required to treat securi-
tisation exposures when calculating
their capital requirements. These
changes include:
l Under the previous incarnation
of the directive, banks were required
to deduct certain unrated or non-
investment grade securitisation expo-
sures from regulatory capital – 50 per
cent from tier 1 capital and 50 per
cent from tier 2 capital. Under Basel
III, banks will be required to apply a
1,250 per cent risk weight to some
lower-rated and unrated securitisation
exposures.
l Under Basel II, banks may
reduce their credit exposure to a
counterparty if they receive eligible
financial collateral. Basel III proposes
the introduction of more conservative
collateral haircuts (discounts) for secu-
ritisation collateral with respect to
counterparty exposure.
l The introduction of specific risk
haircuts for securitisation exposures
when calculating the capital require-
ment related to market risk.
Banks are expected to comply with
these changes by 31 December 2011.
 24 Business Features | Careers
Take a trip into
PowerPoint
hell: slides you
dread to see
The world’s worst business
presentations provide a
guide for how not to do it,
writes Donata Huggins
D
ID you know that PowerPoint presentations can be a
matter of life and death? Yale professor and visual
communication expert Edward Tufte believes it is.
Nasa’s use of the technology, he claims, led to the
Space Shuttle Columbia disaster in 2003 that killed seven
astronauts. Vital information got lost in the blur of slides,
arrows and flow charts.
Tufte complains that PowerPoint “routinely disrupts,
dominates and trivialises content.” You will no doubt agree
next time you are awake at 4am prior to a presentation,
desperately trying to squeeze text into a flow chart.
Something about the technology makes otherwise self-
respecting, sensible office workers go a little doo-lally.
Perhaps it is the pressure of presenting in front of an audi-
ence. Or the last minute most of us choose to create them
in – often in the dead of night.
A quick google found the fruits of the InFocus What Not
to Present competition. The search (evidenced right) is
designed to shock and amuse you. And we thought that
there was surely no better way to offer advice on the mat-
ter than to show you what not to do. Maybe you could stick
this article in your study for reference, just in case the
PowerPoint witching hour tries to seize your otherwise
sensible visual presentation ideas.
If you have come across a PowerPoint slide to rival these tragic
samples, please email donata.huggins@cityam.com
Interexec, as the market leader, has a unique
track record in maximising the careers of busy
top executives and a reputation for results and
professionalism.
Thirty five years of global networking with
headhunters and employers provides in-depth
knowledge and unrivalled access to current
opportunities which are seldom published
at this executive level.
If you are earning £150k to £1m+
do call to arrange an exploratory meeting.
UK and International H.O.
+44 (0)207 562 3482
london@interexec.co.uk
www.interexec.co.uk
London, Manchester and Birmingham
Tragic PowerPoint
slides from digital
display provider,
InFocus,
www.infocus.com
MAD AS A MARCH HARE
VERDICT: Mental. The crimes committed
against sentences on this slide are some-
what overshadowed by the bizarre inclu-
sion of the rabbit and hot dog pictures.
How they relate to the “Design for Social
Change” can only be a frightening
prospect.
WHAT NOT TO DO: Include pictures to fill
space or to add colour.
High Achievers
Confidential Market Access
LITTLE MEN JUMP OFF A CLIFF
VERDICT: Chaotic. Can you blame the lit-
tle men for jumping? I don’t. This slide
needs to be split across three or four – at
least. The language is equally confusing.
“Reaching broadly throughout the value
chain” makes very little sense. The slide
does little to explain it.
WHAT NOT TO DO: Cram as much as pos-
sible on to slides.
CITYA.M. 2 JUNE 2011
WE ARE SEEKING... SANITY!
VERDICT: Nuts. Are you actually supposed
to take information away from this? Or just
quietly muse that the presenter has just dis-
covered that computers allow you to change
fonts?
WHAT NOT TO DO: Use multiple fonts and
colours. If you want your audience to digest
the information you’re giving them then you
should make it as easy to read as possible.
MORE LIKE THE ROADMAP TO HELL
VERDICT: Useless. Can you read this? No?
The audience certainly won’t be able to.
And the arrows? No matter how interest-
ing the speaker, the audience is likely to
ignore them, transfixed on this labyrinth.
WHAT NOT TO DO: Cram information
into tables with weird linking arrows.
Readers will require a map to decipher
these sorts of slides.
FLOATING BUBBLES: UP OR DOWN?
VERDICT: Confusing. There is a lot of bubble
movement here. Things are moving down,
things are moving up, the writing is indeci-
pherable and no one is sure where to start
looking. Flow arrows are, er, supposed to
flow.
WHAT NOT TO DO: Use complex diagrams
that leave your audience thinking about how
to navigate them rather than listening to you.
CITYA.M. 2 JUNE 2011 Careers 25

How to triple your chances of winning the job

employers say they choose the right
mindset over the right skill set when
they recruit.
THE WINNING MINDSET
Further research identifies the spe-
cific qualities that make up this win-
ning mindset. We discovered these
CHAIRMAN, REED RECRUITMENT fall into three groups, which we have
JAMES REED called Global, Good, and Grit, nam-
ing the winning combination the 3G
Mindset.
no difference. Using active verbs such
as “managed”, “led” and “communi-
cated” did not make applications
more successful.
Finally, however, a breakthrough
came.
It turns out that CVs that include
specific examples that demonstrate
the impact of the 3G Mindset at work
literally triple the chances of jobseek-
ers getting the job they want.
Merck, Prudential, Shell, Mars,
Facebook, Ernst & Young and
Deloitte.
THE RIGHT MINDSET
All of them agreed that mindset
trumps skill set not just when they
choose whom to employ but when
assessing how much value a given
person actually delivers. We asked a
simple question: “So, specifically,
how much is someone with the right

T
ODAY’S job market is one of
the most competitive we’ve
ever seen. Good job opportuni-
ties attract literally hundreds
of online applications. Often every
one of these lists the same high levels
of skills and qualifications.
Just how can you stand out and
win the job you want in this context?
Especially when it is clear that trying
anything gimmicky is the fastest way
to get rejected.
Our new book, based on in-depth
international research, has uncov-
ered some startling new answers.
For a start, it helps to know what
employers really want – and it turns
out that skills alone are not enough.
In fact, ninety-seven percent of
The practical breakthrough came
with a study of 30,000 CVs, analysed
from first application to final out-
come.
We wanted to find out if there
were any CV characteristics that had
a statistically measurable effect on
success.
Our independent research team
really struggled at the start. They
kept trying to check out evidence for
actual impact from following the
best advice they could find – and
came up blank each time.
PERSONAL STATEMENT
Including an introductory personal
statement gave jobseekers no advan-
tage. Adding a hobbies section made
STATISTICAL EFFECTS
As far as we know, this is the first
time anyone has been able to identify
such a statistical effect. Its impact on
your future could be huge.
The book is packed with advice,
tools and exercises to help you devel-
op and show employers you’ve got
the mindset they want, and gives you
access to the world’s first pro-
gramme for gauging and strengthen-
ing a winning mindset.
This is even more important when
you realize just how valuable the
right mindset makes you to employ-
ers.
We spoke directly to leading
employers across Europe, Asia and
the Americas, including Aviva,
mindset worth to you, compared to
an ordinary recruit?”
The result was startling. On aver-
age, top global employers told us that
a person with the right mindset is
seven times more valuable.
Developing a winning mindset is
not a cheap gimmick. It’s a much
deeper, more fundamental process,
which can change your life as well as
your career.
It can also triple your chances of
winning the job you want. Not a bad
start.
Put Your Mindset to Work by James
Reed and Dr Paul G. Stoltz is published by
Portfolio Penguin at £12.99, and includes a
unique code to access 3G Mindset.com to
measure, master and apply your mindset.

The presentation guru gives his top

five tips for visual communication
Use big font. Make sure the font is big enough for
OVE or hate giving PowerPoint presentations,
3
L they are a fact of office life for most of us. And
often being good at it distinguishes you from your
colleagues. To help you along, we’ve selected five
of the most useful tips from Dave Paradi’s book: 102
Tips to Communicate More Effectively on PowerPoint.
the audience to see. Less than a 24 point size is usu-
ally too small to be read in most situations. Text at a
28 or 32 point size, with titles being 36 to 44 point
size is recommended.

Blank the screen. Presentations should be about

Tell a story. Decide on the content first before you
1 think about colours or graphics. Paradi suggests you
draw out a storyboard, using movable sticky notes to
organise your ideas: “By creating an outline first, you
ensure that the content of your presentation is solid
before you concern yourself with the visual elements.”
4 the presenter persuading the audience. To make
sure you are doing this effectively and the audience is
not simply transfixed on your slides, turn the presenta-
tion off occasionally when you’re talking. To do this
with ease press the B key on the keyboard and the
image is replaced with a black screen.

Turn the pointer off. It is really annoying to have

2 Use contrasting colours. If you want your audi-
ence to be able to see what you have on the slide,
there needs to be a lot of contrast. Paradi says: “I sug-
gest a dark background with light text – I usually use a
medium to dark blue background and white or yellow
letters. Some prefer a light background and dark let-
ters, which will also work well.”
5 the pointer (the little arrow) dart around the screen
while the presenter is speaking. It draws the audience’s
attention to the screen and away from the presenter.
To prevent this presentational faux pas from happen-
ing, after the Slide Show view has started, press the
Ctrl-H key combination.
 Lifestyle
26
Foodie heaven
with summer
cookery books
Here comes the sun! And with it some great
new culinary masterpieces, says Lucie Greene
O
OOZING summer puddings with
fresh forest berries, flame grilled
juicy sausages, vibrant crunchy leaf
salads and jugs of fragrant fruity
Pimms, sipped slowly over balmy
evenings. So much of summer is about the
food. And, as the holidays approach, culi-
nary enthusiasts are already scanning the
Win a
cool mini
fridge!
Chill out this Summer…
…with the n
new, sophisticated dairy drink for adults.
Find out more, including where to buy and how to enter
our competition1 by visiting
www.modernmilk.co.uk
1. Terms and conditions apply
| Food
cookbooks on offer to see what new treats
they can concoct.
Luckily, there’s a host of new inspira- A TASTE OF HOME
tion from chefs and experts alike, with a BY ANGELA HARTNETT
clutch of cookbooks set to launch just in Ebury, £20
time for barbecue season and catering to
every food-lover’s fancy. City A.M. rounded “A Taste of Home” comes
up the best of the bunch. out next month and is a
collection of easy-to-recre-
ate recipes inspired by Hartnett’s child-
hood experiences with her Italian
w
grandmother. The book combines
E d nmi
w
European and Mediterranean influences
w
nt ay lk.
Tooder
.m
and features, among others, Lamb Broth
er
with mint, Goats Curd and lentil salad,
and Chocolate Pecan tart, all explained
in Hartnett’s trademark unfussy style.
co
FISHY FISHY
.u
k
FROM DERMOT O’LEARY
New Holland, £16.99
Dermot O’Leary (off the
telly) has already estab-
lished a firm following for
his fish restaurants, Fishy Fishy, in
Brighton and Poole, serving fresh
seafood and fish dishes. Now the presen-
ter, along with friends James Ginzler and
Paul Shovlin, is launching a partnering
cookbook, with recipes for cod, and
more unusual sustainable varieties
including Pollack and Gunard. Out July.
HUNGRY?
BY INNOCENT
Fourth Estate, £20
From the makers of organic fruit smoothies,
beloved of yummy mummies in Fulham and
beyond, “Hungry?” has been created to offer
“quick ideas for when you’re in a hurry, posher stuff for when
you’re not.” Aka, a no-fuss cookbook focussing on healthy,
wholesome recipes that all the family can enjoy. Innocent just
launched a children’s recipe book which was impressively easy
with lots of good ideas. This is a great follow-up.
FOOD & BOOZE NEWS
TIMOTHY BARBER
BEACH PARTY AT THE GORING
Having got the Royal Wedding out of the
way, the Goring Hotel in Victoria – base
camp for the Middletons during those
heady days in April – is letting its hair
down by creating a beach and bar in its
garden. Basil Charles, who has spent a
lifetime serving the finest cocktails to the
jet set at Basil’s Bar in Mustique, will be
present to oversee things, and there’ll be
coconuts, battered old fishing boats, a
bar with a polished driftwood counter,
and a lot of sand. And the good news for
upper crust beach bums is that it’s open
all summer. Basil’s on the Beach, the
Goring, Beeston Place, SW1W 0JW.
www.thegoring.com
Pictured above, at
home, Angela
Hartnett.
Picture: REX
BEACH PARTY AT THE GORING
Getting a table at restaurants like the
Ivy, Le Caprice and Scott’s isn’t always
the easiest thing – but why bother
when they can come to you? A serv-
ice titled the Ivy To You has been
launched by Urban Caprice, the
events arm of the Caprice Holdings
group of restaurants. On offer are
chefs, designers, and technicians for
everything from cocktail parties to
gala dinners, with dishes from the
famous restaurants on the menu as
well as napkins, tableware and
other design touches. For more
information go to www.urban-
caprice.co.uk
CITYA.M. 2 JUNE 2011
BOCCA
BY JACOB KENNEDY
Bloomsbury, £20
Tables at Soho’s famed
Italian trattoria Bocca di
Lupo are booked weeks in
advance, but don’t worry if you can’t
make the wait. The hotspot’s chef Jacob
Kennedy has launched a new cookbook
offering step-by-step guides to all its most
famous recipes including Tuscan porcini
soup and Lazian asparagus frittata.
RICK STEIN’S SPAIN
BY RICK STEIN
BBC Books, £12.50
Modern Spanish “soul
food” courtesy of Rick
Stein. Stein spent an exten-
sive period traveling around Spain for
the book, from the mountainous north,
to the Mediterranean beaches, and has
explored specialities in each locale to cre-
ate dishes that reflect modern Spanish
cooking. The book will accompany a BBC
series. Launches August 8th.
PAELLA
BY ALBERTO HERRÁIZ
Phaidon, £24.95
Continuing the Spanish
theme, Alberto Herráiz’
paella bible comes packed with sumptu-
ous photography and easy-to-follow
guides for making authentic paellas,
stocks and sauces, alongside more
adventurous numbers such as cod paella
with spring garlic and paella with goats
milk and rhubarb. Herráiz is the
Michelin-starred chef behind Fogón, the
world-famous paella restaurant in Paris.
THE KRAKEN AWAKES...
Associate rum with lightness
and sunshine and fresh sum-
mer cocktails? Think again.
The Kraken rum is an alto-
gether feistier beast, a
black spiced rum that’s
newly available here in the
UK. It’s got a deep, myste-
rious taste full of cinna-
mon and cloves and
caramel, and comes in a
wonderfully handsome
bottle – a talking point in
any drinks cabinet.
£22.99 from Selfridges
and Majestic.
CITYA.M. 2 JUNE 2011
The docks that you don’t
have to dock with
Bluetooth isn’t just
for headsets – it can
also connect your
music to speakers,
says Timothy Barber
T
HE annoying thing with docks for
MP3 players is how problematic and
fragile those multi-pin docking con-
nectors can be. Much easier if you
don’t have to connect at all, which is what
the latest generation of wireless docks and
speakers enable.
Bluetooth speaker systems have been
around a little while but in items like
Soundfreaq’s Sound Platform they’re real-
ly coming of age, meaning you can link up
your laptop, tablet, MP3 player or any
other music-playing device with a
Bluetooth connection.
Meanwhile Apple’s Air-Play technology,
enabling special link up with its various
products, is adding even more favourable
sound conversion and technological effi-
ciency to the mix (provided your media
player is an Apple product, obviously).
In a couple of years it’ll be the norm,
but for now the act of sitting back in your
armchair, hitting “play” on your phone’s
music player and letting the music blast
from speakers on the other side of the
room feels distinctly futuristic.
27
X-MEN FIRST
CLASS
REVIEWED IN
TOMORROW’S PAPER
Exclusive
offer for
SOUNDFREAQ
readers
SOUND PLATFORM HERE are portable speakers,
Soundfreaq’s boxy, retro-styled
Bluetooth speaker represents
very good value for money. It’s
T and there are portable speakers
– and then there’s the Wowee
One, an incredibly dinky, fit-in-
the-palm-of-your-hand gizmo that just
happens to pump out the most remark-
BOWERS & WILKINS ZEPPELIN ably powerful sounds. In fact it works
got an easy interface for linking
with pretty much any fixed or portable
The Zeppelin speaker, designed by British company Bowers & Wilkins, is already being up to your laptop, phone or other sound device – iPods, iPads, laptops,
seen as a design classic, and in its latest, Apple Air-Play-enabled incarnation, it takes Bluetooth-enabled device, and desktops, CD players, you name it –
the mix of killer sound quality with splendidly sleek design smarts to a new level. the sound quality is excellent. and, with an internal battery that can
£199 www.soundfreaq.com be recharged via computer USB or
£499 www.bowersandwilkins.com power adapter, it doesn’t require plug-
ging in to work.
JAWBONE JAMBOX The real genius of the Wowee One,
however, is in the engineering, which
produces sound quality that’s meatier
Jawbone, a company that normally specializes in Bluetooth head- and more complete across the frequen-
sets, has moved into the speaker market with a product that is cies than any comparable devices.
very funky and very portable. Just six inches wide and 2.25 inches It’s all based around use of hybrid
technology of a standard speaker for
high, it comes in red, black, blue or grey. £159 www.amazon.co.uk the mid to high frequencies, and an
ingenious driver called a Gel Audio for
the low end bass frequencies – it actu-
ally turns the surface it’s sitting on into
DENON CEOL a soundboard for the bass, which can
go to around three octaves below the
Specialist audiophile manufacturer Denon’s dock incorpo- low end cut-off of traditional units.
rates Apple Air-play into a smart, multi-functional system City A.M. is offering readers a 20
per cent discount on the RRP of £49.99
including CD player, dock and radio with separate speakers, for the Wowee One Classic. All you
all in cool-as-you-like white. £499 www.denon.com need do is go to www.woweeone.com
and enter cityam into the promotional
code box in the shopping basket, and
it’s yours for £39.99.
www.woweeone.com
CREATIVE ZIISOUND D5
BLUETOOTH WIRELESS SPEAKERS
Superior, room-filling sound quality meets an unobtrusive, sleekly
minimalist design sensibility in ZiiSound’s D5 system, well suited for
those living in modern, sleekly minimalist apartments.
£249 www.amazon.co.uk
 28 Lifestyle | TV& Games CITYA.M. 2 JUNE 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News 6pm Great British Menu: 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News The regional champions 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show prepare their desserts. 7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm EastEnders: BBC News 7pm The Culture Show: 7.30pm Britain’s Got Talent 7.55pm 4thought.tv 7.30pm Zoo Days:
8pm CHOICE Andrew John Mullan meets author 9pm Coronation Street 8pm Three in a Bed 5 News Update
Marr’s Megacities Alan Hollinghurst. 9.30pm Britain’s Got 9pm CHOICE 8pm Emergency Bikers:
9pm Traffic Cops 8pm Springwatch 2011 Talent Results Meet the Elephant Man 5 News at 9
10pm BBC News 9pm The Shadow Line: 10pm ITV News at Ten 10pm Bums, Boobs and Botox 9pm Extreme Fishing with Robson
10.25pm Regional News Gatehouse finally tracks 10.30pm London News 11.05pm The Secret Millionaire Green – At the Ends of the Earth
10.35pm Question Time down Glickman. 10.35pm When Piers 12.05am The Film Show 10pm FILM Resident Evil: ANDREW MARR’S MEGACITIES
10pm CHOICE Psychoville 2 Met Sir Cliff 12.35am Music on 4: JD Set Apocalypse. 2004. 11.45pm BBC1, 8PM
11.35pm FILM Presumed Sex Lessons 12.15am SCXTRA New series. The broadcaster finds out
11.35pm Amanda Holden’s Fantasy Presents 12.50am 4Play: Cat’s Eyes
Innocent. 1990; Holiday 10.30pm Newsnight: Weather 12.45am SuperCasino 4am The
Lives 12.30am The Zone: Shopping 1.05am The Model Agency 2am how metropolises feed, protect and
Weatherview 11.20pm Time to Remember: and interactive gaming; ITV News The Sex Education Show: Am I Family Recipe 4.05am Michaela’s move populations of more than 10
1.45am Sign Zone: Countryfile 11.50pm French Open Tennis Headlines 2.35am Nightwatch with Normal? 2.55am Unreported World Wild Challenge 4.30am Michaela’s million.
2.40am Britain’s Next Big Thing 12.50am The Culture Show Steve Scott: Crime 3.25am ITV 3.25am The Dead Zone 4.05am Hill Wild Challenge 4.55am County
3.40am DIY SOS: The Big Build 1.50am BBC News 4.40am- Nightscreen 4.35am-5.30am Street Blues 5am Wogan’s Perfect Secrets 5.10am Wildlife SOS
4.40am-6am BBC News 6am Close The Jeremy Kyle Show Recall 5.25am-6.10am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 7.45pm Euro 2012 Flash 7.55pm 3.30am Ghost Whisperer 1.55am Shameless 2.50am Ugly DISCOVERY HOME &
SATELLITE & CABLE

7pm Live Darts 11pm Time of
Our Lives 12am Ringside 1am
Premier League World 1.30am
Darts 5.30am-6am Premier
League World
SKY SPORTS 2
5.30pm Live Twenty20 Cup
Cricket 9.30pm Ringside
10.30pm WWE: Late Night –
Raw 12.30am WWE: NXT
1.30am Twenty20 Cup Cricket
3.30am-5.30am Superleague
Netball
SKY SPORTS 3
7pm The Rugby Club 8pm Live
PGA Tour Golf 11pm European
Tour Golf 1am PGA Tour Golf
4am Kings of the Surf 4.30am
Aerobics Oz Style 5am-6am
Racemax
BRITISH EUROSPORT
5.45pm French Open Tennis
Athletics 9.25pm ITU Triathlon
World Cup 10.20pm
International Football 11.50pm
Horse Racing Time
12.20am-12.50am Game, Set
and Mats
ESPN
7pm ESPN Press Pass 7.30pm
NHL 10pm The Ultimate Fighter
11pm AFL Review Show 12am
NBA Action 12.30am ESPN
Press Pass 1am NBA Tonight
1.30am Live NBA Countdown
2am Live NBA Basketball
5am-6am The Ultimate Fighter
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Chuck 9pm
FILM Beverly Hills Cop. 1984.
11.05pm Dating in the Dark
12am 16 & Pregnant 1am
Criminal Minds 1.50am CSI:
Crime Scene Investigation
5.10am-6am Charmed
BBC THREE
7pm The Apprentice 8pm
Secrets of the Superbrands: Food
9pm Misbehaving Mums-to-Be
10pm EastEnders 10.30pm
Ideal 11pm Family Guy 11.45pm
Misbehaving Mums-to-Be
12.45am Ideal 1.15am Secrets
of the Superbrands: Food
2.15am Fast Food Baby 3.15am
Secrets of the Superbrands:
Fashion 4.10am-5.15am The
Apprentice
E4
7pm Hollyoaks 7.30pm Friends
9pm The Big Bang Theory
9.30pm How I Met Your Mother
10pm The IT Crowd 10.30pm
Friday Night Dinner 11pm
Shameless 12.05am My Name
Is Earl 1am The IT Crowd
1.30am Friday Night Dinner
Betty 3.30am Heartland 4.15am
Reaper 4.55am-6am Switched HEALTH
7pm Bringing Home Baby 8pm
HISTORY Little People, Big World 9pm I’m
7pm Heir Hunters 8pm Ice Road Pregnant and A Drug Dealer
Truckers 9pm Pawn Stars 10pm 10pm Special Delivery: Baby ER PSYCHOVILLE 2
11pm A&E 12am I’m Pregnant BBC2, 10PM
Storage Wars 11pm Swamp
Tealeaf and Peter Bishop join forces to
People 12am Pawn Stars 1am and A Drug Dealer 1am Special
solve the mystery of the locket, but
Storage Wars 2am The True Delivery: Baby ER 2am A&E
things do not go to plan. Comedy
Story 3am Heir Hunters 4am 3am Little People, Big World
thriller, starring Daniel Kaluuya.
The Universe 5am-6am Ax Men 4am A Baby Story 5am-6am
Bringing Home Baby
DISCOVERY
8pm Through the Wormhole SKY1
with Morgan Freeman 9pm 8pm Hawaii Five-0: The team
Flying Wild Alaska 10pm pursues a bomber. 9pm The
Deadliest Catch 11pm Surviving Chicago Code 10pm Lie to Me
the Cut 12am Bear Grylls: Born 11pm Martina Cole’s The Take
Survivor 1am Deadliest Catch 12am Caprica 1am Drug Wars:
2am Future Weapons 3am DEA 1.45am Stargate Atlantis MEET THE ELEPHANT MAN
Greatest Tank Battles 3.50am 3.20am The 4400 4.05am CHANNEL4, 9PM
World War Two in HD Colour Secret Life of Suburbia 4.30am Scientists study the bones of Joseph
4.40am Clash of the Dinosaurs Airline 4.55am Bite Size Merrick, who developed disfigure-
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Seconds Forget the Lyrics one of the most extraordinary figures.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
   

SUDOKU KAKURO
14 45 16 10 10 34 
17 24
23 
31
Place the numbers from 1 to 9 in each empty cell so that each 45 11  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 13 9
22 7
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 30 28
  
above or to the left of it. 19
You can only use the digits 1-9 8 10  
   and you must not use the
20 6
17 19 8   
same digit twice in a block. 15 35
   The same digit may occur 29 13  
16 18
   more than once in a row or
column, but it must be in a
14
19
27

18 11
   separate block.
4 5 
35
    12 21


   ACROSS DOWN
1 Bell of the 1 Fundamental (5)
  
   WORDWHEEL R W
clock associated
with the UK’s
Houses of Parliament
2 Catch the wind (6)
3 Insensitive, dull
Using only the letters in the Wordwheel, you have (3,3) to pain (4)
   ten minutes to find as many words as possible,
T A 6 Foolhardy (6) 4 Far-off (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters Y 7 Ski-race over a 5 Native American
tent (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E S winding course (6)
8 Armed fight (6) 9 Charitable gifts (4)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
O H 10 Pandemonium (5) 11 In the customary
manner (2,5)
13 Itinerant Australian
QUICK CROSSWORD 9 6 7 8 1 2 4 3 12 Condiment, sodium
E T H I C S B D
7 2 6 9 7 4 8 9 SUDOKU         
labourer (7)
16 Establish (3,2)
chloride (4)
4 1 5 2 3 1 9 7
X O O R A T O R
8 4 9 2 1 6 8
         14 Supply or impregnate
C H O P P Y C N          18 Being in the original with oxygen (6)
E P Y A S H M A K 6 3 3 4 2 7 1 6
         position (2,4)
P A L T U T 8 2 5 6 9 15 Where the sides of a
WORDWHEEL
T E A C H E R S P E T          20 Burns with steam (6)
7 6 9 5 8 4 6 1 ship curve in to form
R O F A S H         
3 1 1 9 1 7 2
R O M A N C E T I          21 Glimpse (6) the bottom (5)
S L U R S I N E
9 7 8 6 1 2 5 4 The nine-letter word was
D O R S A L N V 5 2 1 6 8 5 9 7          22 Profoundly (6) 17 Meat-pie (5)
L O L O C A T E 8 3 2 9 5 4 8 3
PRECIPICE         
19 Taken advantage of (4)
 Sport
Murray ready for Nadal test
British ace confident
his injured ankle will
stand up to rigours
of combatting Spain’s
clay court supremo
▲
TENNIS
BY JAMES GOLDMAN
BRITISH No1 Andy Murray admits
he can’t afford any of the lapses in
concentration which marred his
progress to his first French Open
semi-final if he is to get the better
of reigning champion Rafael
Nadal.
Murray was forced to display all
of his battling qualities, and con-
tend again with the side effects of
his damaged ankle, in a tense
three-set win over Argentine Juan
Igancio Chela to book a place in
the last four.
The Briton took just under
three hours to dispense of Chela
for the third straight year at
Roland Garros, but the final score-
line of 7-6 (7-2), 7-5, 6-2 hardly illus-
trated just how far the 24-year-old,
playing on Court Suzanne
Lenglen for the third day in suc-
cession, was pushed.
“It was just very up and down,”
Murray said. “The wind doesn’t
help, but it was just a really scrap-
py match. I didn’t start particular-
ly well and then got a little bit
better, started moving a bit better
towards the end of the first set.
“Then I got up in the second,
sort of maybe lost concentration a
little bit, which you can’t afford to
do against someone like Juan who
has a lot of experience on this sur-
face. Something I definitely won’t
get away with against Rafa.”
Asked about the state of the
ankle injury he picked up against
David Berrer in the third round,
Murray added: “It’s definitely get-
ting better with each day and play-
ing a match on it. You gain
Connections poised to make a call
on Derby favourite Carlton House
▲
HORSE RACING
BY JAMES GOLDMAN
CONNECTIONS are likely to wait
until tomorrow to make a decision
on whether Investec Derby
favourite Carlton House will run in
the Epsom showpiece on Saturday.
The Queen’s colt (right), forced
his way to the head of the betting
for the highlight of the flat racing
season on the back of his eye-catch-
ing victory in last month’s Dante
Stakes at York.
But the Sir Michael Stoute
trained three-year-old suffered a
major set-back in his preparations
when he strained an ankle during
Murray is through to his first French Open semi-final
confidence more with the move-
ment each time you play.
“I still, at times, wasn’t moving
great. I was moving a lot better
forward today, sideways could still
definitely be better, but I felt it a
few times. Nothing major, but I
just need in the next couple of
days to do all the right things
again. A lot of treatment, a lot of
icing, and I’m sure it will get bet-
ter.”
Nadal, meanwhile, believes he
is peaking at the just the right
time after advancing to the semi-
finals at Soderling’s expense fol-
lowing a comprehensive 6-4, 6-1,
7-6 victory.
“I played better than I have on
other days. I played a very good
level and Robin maybe made
more mistakes than usual,” said
the Spaniard after completing vic-
tory over the only man to have
beaten him in his last 44 matches
at this event.
“I have to be playing better and
better every day if I want to have
chances to win the final and
that’s what I’m going to try.”
Meanwhile, in the women’s
draw Maria Sharapova stormed
a workout on Monday.
“We’ve got the next few
days to see if it [the ankle
strain] is cooling itself
down – that’s going to
be key,” said Her
Majesty’s racing
manager, John
Warren, ahead of
today’s final declara-
tion stage.
“The good thing is
the horse is sound and
he’s moving well. He’s
on trotting exercise
but, of course, Sir
Michael Stoute
would love to be
29
“SOMETHING MARVELLOUS
HAS HAPPENED TODAY”
FA CRUSHED IN BID TO PREVENT
BLATTER’S RE-ELECTION: PAGE 30
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email sport@cityam.com
Picture: ACTION IMAGES
into the semi-finals with a 6-0, 6-3
win over Andrea Petkovic.
Sharapova, the seventh seed, will
meet Li Na, the Australian Open
runner-up, in the last four after
the Chinese star beat fourth seed
Victoria Azarenka 7-5 6-2.
FRENCH OPEN | SEMI-FINAL LINE-UP
The Royal Ascot
MEN’S DRAW
Golf Day and Charity Ball
Roger Federer (Swi) [3] in aid of Cancer Research UK
Novak Djokovic (Ser) [2]
*Tomorrow
V hosted by Derek Thompson and horseracing stars
Andy Murray (GB) [4]
Rafael Nadal (Spa) [1]
*Tomorrow
V
WOMEN’S DRAW
Marion Bartoli (Fra) [11]
Francesca Schiavone (Ita) [5]
*Today
V
Li Na (Ch) [6]
V
Maria Sharapova (Rus) [7]
*Today
getting some good cantering
into him at this point.
“Luckily, we’ve got the
most experienced trainer
in the country and the
best rider [Ryan Moore]
in the country.
We’ve got a chance of
running. It’s not with-
out a possibility that
he’ll stand in the line-
up.
“He won’t run unless
the trainer is complete-
ly content that he’s
Cancer Researcch UK is a registered charity
sound. By tomor- in England & Wales
a (1089464) and in
Scotland (SC041666)
row we’ll know
more.”
 30 Sport
Mayor Johnson one of 250,000 people not
to have got an Olympic ticket Picture: PA
Boris fails in
tickets bid
▲
OLYMPICS
BY FRANK DALLERES
MAYOR of London Boris Johnson
admits he is “cheesed off” after
becoming one of an estimated
250,000 people to miss out on their
initial bids for London 2012 tickets.
Olympic gold medal-winning cyclist
Bradley Wiggins said he had also lost
out, while teenage diving sensation
Tom Daley fears his mother may not
be able to witness him competing on
home soil after the bulk of her appli-
cations failed.
The last of the millions of successful
applicants have this week been
charged for the tickets allocated to
them by the controversial ballot sys-
tem, although they are yet to be told
which events they will get to see.
“I am personally disappointed not
to have got any tickets but I shall try
again,” said Johnson. “Clearly it’s been
a massively popular thing and there’s
no surprise the event has attracted so
much demand for tickets but I’m mas-
sively disappointed and cheesed off.”
Unsuccessful applicants will have
priority if they enter the second ballot
next month. Wiggins, who is aiming
to add to his three golds at next sum-
mer’s event, missed out, writing on
Twitter: “Sorry kids, going to have to
watch dad on the telly.”
Daley, one of Britain’s best medal
hopes, also expressed frustration at
his family’s attempts on the social net-
working site, adding: “Mum had the
money taken from the bank for the
Olympic tickets! But only 1/4 of what
she wanted! I hope my family get tick-
ets to watch me!!!!”
WHAT A FARCE
l Blatter wins uncontested presidential vote
l Plans to clean up in-house ethics committee
l FA unrepentant despite crushing defeat
▲
FOOTBALL
BY JAMES GOLDMAN
FIFA president Sepp Blatter won a
fourth term in office amid farcical
scenes in Zurich yesterday while the
English Football Association were left
virtually friendless and lambasted for
their attempts to postpone his coro-
nation.
Blatter, as expected, stood unop-
posed following the suspension of his
main rival Mohamed Bin Hammam
amid allegations of bribery.
He collected 186 out of 203 votes
from the ballot of Fifa’s member asso-
ciations to seal his position
at the head of the world
governing body until
2015.
The absurdity of
the situation was
neatly encapsulated
by the polling card
given to delegates
which displayed only
the name of the sole
candidate.
The 75-year-old emerged
from his triumph bullish, declar-
ing “something marvellous has hap-
pened today in this solidarity” and
insisted he was capable of “putting
Fifa’s ship back on the right course in
clear, transparent waters”.
Blatter then revealed that former
US secretary of state Henry Kissinger
would head the band of “politicians,
celebrities and former footballers”
making up the “solution committee”
that would attempt to restore his
organisation’s tarnished reputation.
But his pledge to strengthen the in-
house ethics committee and change
the voting procedure by which World
Cup host nations are chosen are hard-
ly the sweeping reforms likely to
appease the national associations and
heavyweight sponsors who have
CITYA.M. 2 JUNE 2011
voiced their concerns over the accusa-
tions of corruption that have
engulfed Fifa.
The election only took place after
the FA’s bid to force a postponement
suffered a crushing defeat by 172
votes to 17, representing another
painful snub following on from the
failed 2018 World Cup bid.
Scotland and Vietnam, mistakenly,
voted in support of FA chairman
David Bernstein’s motion, but he was
unable to count on the support of
even Wales or Northern Ireland,
while the likes of Argentina and
Cyprus made their feelings known in
a series of stinging attacks.
Despite the late attempt to
derail Blatter’s bid to hang on
to power ending in abject
defeat, Bernstein (left)
believes he and England’s
governing body were right Blatter was re-
to voice their concerns in elected unopposed
such a public fashion. to win a fourth
“I think it was worth it; term in office
we made an important point Picture: PA
of principle,” he said. “We felt
a coronation wasn’t appropriate
given what’s happening at Fifa.
“The problem at Fifa is that people
are scared to put their heads above
the parapet. There’s quite a
groundswell of support but you have
to talk to people privately to under-
stand that.”
Bernstein did find an ally in Bayern
Munich and European Club
Association chief Karl-Heinz
Rummenigge, who said: “The recent
happenings have proven that Fifa
needs a change in its whole structure.
“I request Fifa to immediately
introduce democratic and transpar-
ent structures and procedures.
European clubs will no longer accept
that they do not participate in the
decision-making when it comes to
club related matters.”
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For all who enjoy cooking, novice to talented,
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Kindly sponsored by
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CITYA.M. 2 JUNE 2011
FA must
keep heat
on Blatter
COMMENT
DAMIAN COLLINS
S
EPP BLATTER has made a few
concessions, none of which
really add up to much on
their own, and I think he
thinks it will all blow over.
But the anger of the football
fans and the concerns raised over
the last few days are not going to
be addressed by what’s happened.
People in Fifa have been fright-
ened of sticking their head above
the parapet and would rather do
deals behind closed doors. I think
the last few days have changed
that. The concern expressed by Fifa
sponsors is interesting; they’ll be
keeping a close eye on this.
The genie’s out of the bottle,
and Blatter has to work very hard
to reassure people Fifa is changing,
becoming more open and account-
able, and is serious about dealing
with allegations of corruption.
The FA have made their stand –
it’s a shame they couldn’t have
started earlier – what’s important
is they build on that now and work
with other countries to establish a
coalition for change within Fifa
council, not go away again.
Damian Collins MP is a leading sup-
porter of lobby group Change Fifa.
SPORT | IN BRIEF
Henson recalled to Wales side
RUGBY UNION: Forgotten man Gavin
Henson is set to make his first Wales
appearance for more than two years in
Saturday’s match against the Barbarians.
Houllier parts company with Villa
FOOTBALL: Aston Villa have confirmed
the departure of Gerard Houllier as man-
ager after nine months at the club. The
SPORT
MURRAY INTO FRENCH
OPEN SEMI-FINALS
British No1 faces Nadal next
Tennis: Page 29
Sport 31
Hammers reject Fernandes bid
Sullivan dismisses offer
from AirAsia and Lotus Allardyce: I may
F1 chief for minority need two years
stake in West Ham SAM ALLARDYCE admits it may take
two years to drag West Ham back up
into the Premier League. Allardyce,
▲
FOOTBALL who was confirmed as Hammers boss
BY FRANK DALLERES said: “The contract is two seasons, so
that gives me a two-year period to get
WEST HAM’S owners last night them there. It depends just how many
emphatically rejected an offer to players leave and how many we can
invest in the club from Malaysian attract to West Ham from thereon.”
entrepreneur Tony Fernandes, calling Fernandes (left) is a fan of West Ham, who named as Allardyce manager Pic: ACTION IMAGES
it “very unhelpful”.
Fernandes, the man behind Air
Asia and Formula One team Lotus
and long-standing Hammers fan, sub-
mitted an offer for part-ownership of
the east Londoners yesterday.
It is thought Fernandes bid for
some or all of the 35 per cent that is
still held by CB Holding, the company
which assumed control of the club in
2009 when the previous Icelandic
regime went bust.
But David Sullivan, who together
with David Gold owns around 61 per
cent of West Ham and has first option
on CB Holding’s stake, swiftly dis-
missed the offer from Fernandes,
which is thought to have fallen short
of their valuation.
“We have received an email from
Tony Fernandes regarding an offer for
a share of the club which has immedi-
ately been rejected,” said Sullivan.
“We are not looking to sell the club
but, as we have always said, we would
love co-investors to join us in rebuild-
ing West Ham, which has been our
aim ever since we took charge back in
January 2010. In the event that a seri-
ous investor came forward as was the
case at Chelsea and Manchester City,
we would naturally consider it for the
good of the club – but this is certainly
not the case in this instance.
“This kind of approach is very
unhelpful when we have just made a
big step forward as a club in our hope
of returning to the Premier League,
and it distracts from our main focus
which is promotion.”
Sullivan and Gold were earlier this
year thought to be looking for around
Outstanding bars and restaurants and the best views
£40m for the 35 per cent share held
by CB Holding. The club has since of the match action at every home game
been relegated to the Championship,
which is likely to cost the club in the
region of £50m a season.
Join the Club Level waiting list to take your
matchday experience to the next level
call 0845 262 0001 email clublevel@arsenal.co.uk
63-year-old missed the closing stages of
visit www.arsenal.com/clublevel
last season due to a heart problem.
Fulham’s Mark Hughes is among the early
favourites to succeed the Frenchman.
Shaq announces his retirement
BASKETBALL: American superstar
Shaquille O’Neal is to retire from the
sport aged 39 following a 19-year career
which saw him win four NBA titles.