Cityam 2011-09-06

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1.14 unc /$ 1.41 unc

Deutsche:
crisis will
kill lenders
THE Eurozone crisis will see some
weak banks collapse if governments
renege on part of their debts,
Deutsche Bank chief Josef
Ackermann (pictured below) has
warned.
Its stating the obvious that many
European banks would not survive
having to revalue sovereign debt held
on the banking book at market lev-
els, said the outgoing chief executive
of Germanys largest bank.
And the crisis will be worsened by
floundering governments inability
to prop up the troubled banks, he
added.
The situation for banks is more
dramatic than it was in 2008, he said
in a panel discussion at a conference
in Frankfurt. In 2008, governments
were still able to support their banks.
Now this is simply no longer possi-
ble.
In a recent round of bank results,
Greeces banks marked down their
holdings of govern-
ment bonds by bil-
lions of euros, pushing
them into the red. But
they still received criti-
cism that they
had not suffi-
ciently dis-
c o unt e d
the assets.
ALLISTER
HEATH:
P4
NEWS: P8-9
BY JULIET SAMUEL
EUROZONE
NBNKs Lord Levene, (left), and Gary Hoffman, (right), are keen to buy Pictures: REUTERS
LORD Levenes investment vehicle,
NBNK, has entered talks to buy out
National Australia Banks UK business,
in a move that could shake up the
industry by creating a banking behe-
moth to rival the dominant players.
If NBNK, run by a group of City
grandees, is successful in buying both
NABs UK holdings and the 632 Lloyds
branches it bid for in July, the result-
ing entity would be immediately cata-
pulted into the premier league of high
street banks.
City A.M. understands that the talks
are at a preliminary stage but any bid
is likely to run into the billions of
pounds.
The discussions are formal enough
that NBNKs shares on the LSEs junior
Aim market are expected to be sus-
pended this morning pending the
outcome of negotiations. A source
familiar with the situation said that a
suspension is likely because NBNK is
far smaller than its takeover target
and because there is little detailed
information available publicly on
NABs UK assets, both of which could
prompt sharp price movements.
The resulting bank could have near-
ly 1,000 branches and up to 55bn in
deposits, depending on the details of
the deal.
Its mix of sites would be concentrat-
ed in the north of England and
CITY GRANDEES IN
PLOT TO BUY BANK
BY JULIET SAMUEL
BANKING
www.cityam.com Issue 1,461 Tuesday 6 September 2011 FREE

SERVICES
IN TURMOIL
SLOWDOWN THE
WORST SINCE
FOOT & MOUTH P6
ANDREW CONNOR ON WINE
THE LUTYENS GURU TALKS CHILLED
REDS IN OUR NEW COLUMN P31
BUSINESS WITH PERSONALITY
Scotland, and would likely include
NABs Clydesdale Bank, Yorkshire
Bank and, if NBNKs Lloyds bid is suc-
cessful, Cheltenham & Gloucester and
Lloyds TSB Scotland.
The NAB purchase would also give
NBNK an IT platform into which it
could integrate the Lloyds branches,
rather than building one from
scratch.
And the new bank would have the
experience of some old City hands at
its disposal: its board boasts veterans
such as senior Evercore adviser Lord
Forsyth and it is headed by former
Northern Rock chief Gary Hoffman.
If NBNK can tie up a deal with NAB
before closing in on Lloyds, it also
could defuse the argument by the
Vickers Commission that the Lloyds
sale will not create an adequate chal-
lenger bank. Cooperative Financial
Services and Sun Capital have also bid
for the Lloyds branches.
Certified Distribution
04/07/2011 till 31/07/2011 is 93,093
Lloyds Banking Group* 25%
RBS* 15%
HSBC 14%
Barclays 13%
Santander 13%
Nationwide 7%
NBNK/NAB** 4.6%+
* after planned divestments
** including acquisition of Lloyds branches
BANKS ESTIMATED UK MARKET SHARE
(PERSONAL CURRENT ACCOUNTS)
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News
4 CITYA.M. 6 SEPTEMBER 2011
FTSE tumbles
on bank fears
THE FTSE shed 49bn yesterday after
slumping to a loss of nearly four per
cent, with investors spooked by a bar-
rage of bad news.
RBS dragged the index down,
falling 12 per cent on the news it is
being sued by the US Federal Finance
Housing Agency (FHFA) over allega-
tions it misled buyers of mortgage
portfolios worth more than $30bn.
Barclays and HSBC, being sued over
a combined $11bn of suspect mort-
gage packages, lost 6.7 per cent and
3.8 per cent respectively. The banking
sector overall hit a two-year low.
The US markets are set to react to
the lawsuits today, after remaining
closed for Labor Day yesterday.
A sharper than expected fall in
service sector growth also hit the
FTSE, with the Markit/CIPS services
purchasing managers index drop-
ping from 55.4 in July to just 51.1.
The bad news was set against the
familiar backdrop of Eurozone fears,
with German and French indexes
also suffering. Angela Merkels gov-
ernment faces a court ruling tomor-
row over claims Berlin is breaking
German law and European treaties by
contributing to bailouts.
Brokers gave a bleak assessment of
market conditions, with UBS saying
equity markets are unlikely to rise
above summer lows.
BY STEVE DINNEEN
MARKETS
Eurozone learnt nothing from 2008

FOR anybody with ears to hear it, the
message yesterday from Deutsche
Banks boss was chilling. Many
Eurozone banks would go bust if they
were forced to accept a haircut to
fully reflect current market valua-
tions on their sovereign debt holdings,
Josef Ackermann, Deutsche Banks
chief executive warned. He was speak-
ing at Frankfurts annual Banks in
Transition conference, a meeting
where speakers appeared to compete
to draw the most gruesome parallels
with the crisis of 2008. They were, of
course, right to do so.
Then it was sub-prime that was the
trigger, though there were many
other separate problems caused by
years of global bubblenomics today
the problem is government debt, espe-
cially in the Eurozone, after an equal-
ly lengthy bubble in government
spending and the abysmal failure of
the single currency project.
When the last crisis broke properly
in 2008, mark-to-market accounting
forced banks, hedge funds and others
to slash the value of the assets held on
their balance sheets, triggering huge
losses and many insolvencies; in the
many cases when this reflected reali-
ty, this was a perfectly sensible (albeit
painful) outcome.
But uncertainty, a lack of informa-
tion and the opacity of relationships,
products and counterparty risks
meant that mark-to-market account-
ing often overshot and in some cases
destroyed firms that should have been
able to survive. Liquidity issues turned
an already bad solvency crisis into an
even worse one. This was triggered by
massive redemptions from institution-
al investors, in turn causing forced-
selling; at times, it seemed that
nobody was willing to buy anything at
any price, which temporarily pushed
down mark-to-market valuations to
excessively low levels, unfairly bank-
rupting some institutions.
This time around, the opposite is
true, at least at this stage of the crisis.
It is a joke that Greek bonds are being
valued at a haircut of just 21 per cent
when Greek two-year yields are at 50
per cent. There are other signs that a
2008-style crisis is in the making. The
inter-bank lending market has
become infected, with banks finding
it tough to raise long-term financing.
The conference yesterday was told
that no bank is currently able to issue
a seven- or eight-year bond in the cur-
rent environment. No wonder, there-
fore, that the STOXX Europe 600
banking index closed down another
six per cent yesterday to its lowest
level in 29 months. The US lawsuit
against many of the largest global
banks didnt help either, of course.
Regulatory changes are making the
problem even worse for many
Eurozone institutions: the rules say
that they should stock up with lots of
supposedly safe government debt. But
if the state fails, it will thus automati-
cally take down the financial system.
The authorities have clearly learnt lit-
tle from the subprime debacle.
Transparency must always be key: it is
imperative that market participants
understand each others balance
sheets and are therefore able to trust
each other. But because the Eurozone
is in denial about the severity of the
crisis facing several of its govern-
ments, and thus refuses to accept that
write-downs will almost certainly have
to be massive, banks can no longer
afford to trust those players deemed
most at risk from an outbreak of reali-
ty. Its looking grimmer by the day for
the Eurozone; we will all pay a heavy
price for its implosion.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
AT&T may not have to pay Deutsche
Telekom a multi-billion dollar break
fee, even if its $39bn (24bn) acquisi-
tion of T-Mobile USA falls through,
according to people familiar with
the matter.
The US government last week
went to court in an attempt to derail
the bid on competition grounds,
threatening to trigger a breakup fee
comprising $6bn in cash and other
assets, including mobile spectrum
and a roaming agreement.
However, the source said the deal
is only valid if the acquisition
receives regulatory approval within
a certain timeframe.
The agreement could also become
invalid if regulatory conditions for
the sale push the value of T-Mobile
USA below a certain level, the person
said. Deutsche Telekom declined to
comment last night.
The bid is the biggest the M&A
market has seen this year.
BY STEVE DINNEEN
TELECOMS
AT&T may dodge break fee

The telecoms giant may avoid paying a break fee worth up to $6bn
NEWS | IN BRIEF
SFO considering banks probe
The Serious Fraud Office is looking into
the allegations against UK institutions
made by the US Federal Housing
Finance Agency (FHFA). It said it has
not decided whether to launch its own
formal investigation but will keep
abreast of developments in the US.
The FHFA is suing 17 banks and financial
institutions over alleged misrepresenta-
tion of asset-backed securities worth in
excess of $190bn to mortgage giants
Fannie Mae and Freddie Mac prior to
their near-collapse in 2008.
ITV, 3i and Inmarsat in FTSE risk
3i could be demoted from the FTSE 100
next week unless there is a shake-up at
the foot of the blue chip index in trading
today. A reshuffle will be applied next
week, based on tonights closing price.
Investment group 3i is among the
favourites to drop out of the coveted top
index, with satellite communications
firm Inmarsat also at risk, along with
broadcaster ITV. Inmarsat boosted its
chance of staying up with a solid per-
formance yesterday. Possible risers from
the FTSE 250 are investment firm
Ashmore and engineer Meggitt.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Commission. The PCC takes complaints about the
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The way the FTSE
tumbles: RBS boss
Stephen Hester saw
12 per cent wiped
from his banks value
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
LIBYAS NEW OIL CHIEF WARNS THAT
OUTPUT WILL NOT RECOVER UNTIL
LATE NEXT YEAR
Libyan oil production will not return
to pre-war levels until late next eyar
at the earliest, with many of the
countys oil facilities having suffered
heavy damage and looting during the
conflict, according to the newly
appointed charman of the countys
National Oil Company.
CBI CHIEF CALLS FOR OSBORNE TO ACT
ON GROWTH
George Osborne needs to step up a
gear and produce a game-changing
growth plan if he is to have a chance
of reviving the British economy in
2012, warned the nations biggest
business lobby group as it downgrad-
ed its forecasts for next year after a
tumultuous August. John Cridland,
director general of the CBI employers
organisation, urged the chancellor to
sanction European-style toll roads,
cut national insurance contributions
for employers hiring young people
and scrap the 50p income tax rate
immediately as part of the second leg
of this growth review, due in
November.
SHIRET TO RETURN TO CITY ON RETAIL
TEAM OF RBS
Tony Shiret, one the best known and
highly regarded retail industry ana-
lysts, is poised to make his return to
the City with a new role at Royal Bank
of Scotland.
SECURITY FEARS DRIVE MOVE TO
BLOCK SOCIAL MEDIA
Nearly a third of UK companies are
blocking their employees from using
social networking sites like Facebook
and Twitter in reaction to growing
fears about intenet security, accord-
ing to a new study. Highly publicised
hacking incidents are causing a
knee-jerk reaction among compa-
nies to clamp down on internet use.
HONDA ANNOUNCES ANOTHER GLOBAL
RECALL
Honda is recalling almost a million
cars worldwide to repair problems
with power windows and computer
equipment in its second big recall in
as many months. None of the affected
models are sold in Britain. Honda will
also recall 26,000 CR-Z hybrid models
in various markets, including 3,045
in the UK, after it found in testing
that faulty IMA motors potentially
could make the car move forwards or
backwards if the driver stalled.
MI6 ACCUSED OVER TORTURE
The Libyan rebel commander at the
centre of the storm over Britains col-
lusion with the Gaddafi regime
accused UK intelligence agents of
ignoring his claims that he was being
tortured. I have no doubt, not a sin-
gle doubt, they knew, Abdel Hakim
Belhadj said.
FORTELUS ABANDONS PROVIDENT
POSITION
Fortelus Capital, one of Londons lead-
ing hedge funds, has thrown in the
towel on its bet against Provident
Financial by closing its short position.
Traders estimate that the fund has
lost around 10m betting against the
sub-prime lender. Provident has been
one of the most popular shorts for
London hedge funds and traders.
PLANNING REFORMS ARE WRONG,
NATIONAL TRUST WARNS
The coalitions controversial planning
reforms are fundamentally wrong
and need more than a simple rewrite
if the countryside is to be protected,
the National Trust has warned.
Opposition to the Governments draft
National Planning Framework has
been growing amid concern it will
lead to large scale developments
springing up across rural Britain.
IN TSUNAMI'S WAKE, A CAR-SALES
BOOM
At least one business in the tsunami-
ravaged city of Rikuzentakata is
booming: automobile sales. As entre-
preneurs restart companies and fami-
lies rebuild their lives, they are
buying cars to replace vehicles swept
away by the massive waves that hit on
11 March. Toshiaki Hasegawa, who
has set up a small makeshift dealer-
ship on a hillside plot hastily cleared
of timber, said he has sold 70 used
cars and trucks since late April.
SOCGEN DEALS EYED BY LIBYA
Officials working with Libyas new
governing authority are examining
whether any payments made by
Socit Gnrale as part of its busi-
ness relationship with the Libyan
Investment Authority ended up in
the hands of people close to Col.
Moammar Gadhafi's regime.
WHAT THE OTHER PAPERS SAY THIS MORNING
O2 owner Telefonica will create a new
hub in London as it shifts the focus of
its business away from stricken
Spain.
The creation of a new digital busi-
ness will spark an inflow of jobs into
the capital as the telecoms giant
scrabbles to lessen its exposure to the
Spanish economy and give greater
weight to its UK business.
The former Spanish state telecoms
provider will keep its headquarters in
Spain, where it has its primary list-
ing. Telefonica Spain, currently one of
the companys three main hubs, will
be subsumed into its European divi-
sion, creating a 34bn (30bn) rev-
enue business with 105m customers.
The new digital arm will take equal
billing with the European and Latin
American businesses. It will be head-
ed up by Matthew Keys, credited as
the man who brought the iPhone to
Europe.
The digital business, described as
the future of the company, will
encompass areas including machine
to machine payments, internet call-
ing and digital advertising. City A.M.
understands that some of the new
branchs 2,500 employees will be
based in the UK.
In a shake-up of the firms senior
management, current Latin America
boss Jos Mara lvarez-Pallete will
take over Telefonica Europe. Chief
financial officer Santiago Fernndez
Valbuena will take responsibility of
the rapidly growing Latin American
business.
Telefonicas 18bn takeover of O2
in 2005 remains the UKs largest
takeover by a foreign company, dwarf-
ing Krafts 11.9bn takeover of
Cadbury last year.
Telefonica to
create a new
hub in the UK
BY STEVE DINNEEN
TELECOMS
News
FOOD sales increased healthily dur-
ing the summer months, despite
overall retail sales being hit by the
continuing economic squeeze on
households.
While like-for-like food sales were
up 1.4 per cent in the three months to
August, compared to the same period
last year, non-food sales dropped by
1.5 per cent on the same measure.
And August saw a sharper dip in
activity on the high street, with like-
for-like sales across all categories
falling by 0.6 per cent annualised.
The spell of hot weather at the
start of the month was a boost for
some retailers but it failed to last long
enough to make a big impact, said
Stephen Robertson of the British
Retail Consortium, which released
the figures this morning.
People had bought summer fash-
ions early during the spring heat-
wave.
Some good news for retailers came
from internet sales, which were the
strongest for four months in August.
Online sales are being boosted by
bargain-hunters, Robertson added.
Sales of big-ticket items suffered
and were still often deal-driven, as
cash-strapped consumers sought out
special offers.
Weak retail sales helped
by hungry food shoppers
ANALYSIS l Retail sales are still under pressure, although food sales are up
Food
Shoes
1.4% -1.5% 12.6%
Non-food items Internet sales,
non-food items
Furniture & home
accessories
*June to August, year-on-year, like-for-like
August, year-on-year August, year-on-year
BY JULIAN HARRIS
RETAIL
ANALYSIS l Telefonica
30Aug 1 Sep 31 Aug 5Sep 2Sep

14.60
14.20
13.80
13.50
5 Sept
News International puts
Wapping base up for sale
RUPERT Murdochs News International
will sell its historic Wapping complex
after scrapping plans for a multi-mil-
lion pound remodelling of the site.
The East London base has been
home to Murdochs stable of newspa-
pers, including the Sun, the News of
the World and the Times, since his
famous battle with the print unions
in the 1980s.
The announcement follows a
strategic review of the News
International property portfolio. Most
of the newspaper business has
already shifted to the neighbouring
Thomas More Square base.
Sources close to the firm said the
decision to sell the site is based on
purely commercial reasons. It is
understood the extra capacity at
Thomas More Square created by the
closure of the News of the World was
one consideration.
News International abandoned its
last attempt to sell the site in 2008,
saying it would move staff from other
offices to a remodelled Wapping. The
rumoured price tag then was about
200m.
BY STEVE DINNEEN
MEDIA
SERVICES have suffered the sharpest

monthly slowdown in growth since
the foot-and-mouth crisis in 2001,
according to data released yesterday.
Markits Purchasing Managers
Index (PMI) for the sector fell from 55.4
in July to 51.1 in August. A rate of
below 50 indicates declining activity.
The statistics follow last weeks
European Commission report that
showed business confidence at its low-
est since the measures began in 1997.
Economists expected the figure to
fall to 54.3, and the surprisingly large
drop has been blamed on the uncer-
tain economic outlook.
There can be little doubt that the
underlying growth profile of the sec-
tor has weakened in recent months,
said market economist Paul Smith,
More broadly, weak manufacturing
and construction data point to a wider
slowdown, with the composite output
index of all three sectors falling to a 26-
month low.
With the economic climate so
uncertain, this continues to impact on
confidence, while job losses were
again reported as firms remain reluc-
tant to hire, explained Smith.
Noble suggests Londons firms have
reason to hope for an upturn, though.
With the impact of the 2012
Olympics, there are perhaps better
times to look forward to, he said.
But analysts suggest the Olympics
are too far off for the Bank of England
to rely on, and other measures may
be taken in an effort to boost growth.
We now believe that the MPC is like-
ly to restart quantitative easing, most
likely at either this weeks meeting or
the October one, says Citis Michael
Saunders.
From its programme of asset pur-
chases begun around two and a half
years ago, the Bank of England is sit-
ting on roughly 32bn in profit,
Matthew Russell from M&G invest-
ments estimated yesterday. Yet if the
Bank tried to realise its profits, the 10
year yield would rise, Russell said.
MORE ON UKS PMI SLUMP: P25
Concern as UK
services slam
on the brakes
ACTIVITY growth in the Eurozone
service sector has fallen to a two-year
low, according to figures released yes-
terday.
At 51.5 in August, the areas
Purchasing Managers Index (PMI) is
down 0.1 on July. A PMI of 50 means
no change in activity.
Performance is varying wildly
across the continent, though, with
Spain and Italy experiencing a con-
traction in services while the growth
is focused in France and Germany,
where managers are more confident.
French services PMI increased to
56.8 in August, far above that of the
overall region.
Growth in services in the country
has been strong enough to offset
declines in industry, leading some
economists to predict third quarter
growth despite the economy flat-lin-
ing from April to June.
That may not reassure less fortu-
nate Eurozone states, though includ-
ing Germany, where service PMI fell to
51.1.
France continues to have a signifi-
cant edge over Germany in that sector
in terms of economic momentum,
according to Francois Cabau at
Barclays Capital. More broadly, out-
standing and new businesses are in
contraction territory, he warned.
French growth
defies sluggish
Euro activity
Chancellor George Osborne was rocked by news of a drop in services Picture: REUTERS
BY TIM WALLACE
UK ECONOMY
EUROZONE ECONOMY
News
SERVICE SECTORS HAVE SLOWED IN ECONOMIES ACROSS THE GLOBE
Country August Services PMI July Services PMI Growth Direction
UK 51.1 55.4 sluggish growth down
France 56.8 54.2 growth up
Germany 51.1 52.9 sluggish growth down
Spain 45.2 46.5 contraction down
Eurozone 51.5 51.6 sluggish growth down
Brazil 52.2 53.7 sluggish growth down
China 50.6 53.5 near-stagnation down
India 53.8 58.2 sluggish growth down
Australia 52.1 48.8 sluggish growth up
Japan 44.3 45.3 contraction down
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TROUBLES in larger Eurozone
economies are not entirely deflecting
attention away from Greece, analysts
said yesterday.
Greece is far behind schedule on
the [deficit reduction] targets set by
the IMF and this is not due to down-
ward growth revision, but mainly to
governments deficient implementa-
tion, UBS commented in a note.
This is likely to raise concern that
the IMF will refuse to provide the
next [bailout] payment We think
the payment will be made, although
it is likely to be delayed.
A Greek government spokesperson
said that they are expecting the 8bn
(7bn) tranche of EU and IMF aid this
month, as scheduled.
Daiwa economist Grant Lewis yes-
terday also raised questions concern-
ing the European Central Banks
debt-purchasing programme and
whether Greece will default.
You have to be worrying about
your capital if you are the ECB. You
hold 45bn of Greek debt and Greece
is a car crash in slow motion he said.
Most people now think is it sliding
to a proper default ... the ECB must be
getting pretty giddy.
Yields on Greek two-year debt
soared past the 50 per cent mark yes-
terday.
THE European Central Bank (ECB)
bought 13.3bn (11.6bn) of sovereign
bonds last week, data revealed yester-
day, but the dramatic intervention was
barely enough to shore up demand at
two Eurozone debt sales last week.
And yields have begun to rise again,
raising questions about how long the
ECB can afford to keep up its purchas-
es to keep a lid on market pressures.
The latest figures bring the ECBs
stock of Eurozone debt up to 129bn
following president Jean-Claude
Trichets announcement that the
Bank would be restarting its bond-pur-
chasing programme to bring Italian
and Spanish yields down.
But both Italy and Spain saw weak
demand at bond auctions last week,
where they sold a total of 11.37bn
nearly 2bn less than the ECB mopped
up in the secondary market.
Despite the ECBs interventions,
both nations saw below-average
demand at sales last week, but did ben-
efit from lower yields than at previous
auctions.
That trend is now reversing: Spains
ten-year yields jumped 14 basis points
to 5.25 per cent yesterday, while Italys
equivalent rates rose 25 basis points to
5.55 per cent. Six per cent is seen as a
crisis point. Meanwhile yields on
German bunds touched an all-time
low of 1.84 per cent yesterday.
Traders speculated that the ECB had
scaled back its purchases this week to
put pressure on Rome to push
through austerity measures, but the
data confirming whether this is true
will not be available until next week.
The ECB is expected to review its
debt-buying programme this week.
The ECB bond
buying spree
hits 129bn
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Hurry, Book while stocks last!
Super
Seat
Celebration
All eyes on IMF as doubts raised
over Greeces next 8bn bailout
BY JULIET SAMUEL
EUROZONE
GREEK ECONOMY
Eurozone in crisis
Bank funding takes the centre-stage
H
ow vulnerable are Europes
banks? Yesterday, Deutsche
Bank chief Josef Ackermann
issued the dire (if obvious) pre-
diction that the weak will not survive
the gathering storm.
And IMF chief Christine Lagarde
has needled her old Eurozone col-
leagues by repeatedly questioning
the solvency of the regions lenders
and demanding that they raise more
capital over and above the 60bn
raised so far this year.
The question is where the cash will
come from. Equity markets are in a
state: one senior banker told City A.M.
yesterday that its possible that
London will not see any more floats
this year at all, while share issues
look increasingly difficult.
Debt markets are not faring much
better. Figures from Dealogic show
that net issuance by European banks
is now around zero year-to-date.
Banks are just about staying afloat in
funding terms, selling bonds as they
mature.
This means that banks will have to
be on their toes to take advantage of
any narrow opening in wholesale
funding markets, as the recent rush
to issue covered bonds illustrates.
And on the other side, they will
have to fight to hold deposits. The
large players in the market like cen-
tral banks and big lenders are with-
drawing their cash from European
banks, to the tune of 461bn from
January 2010 to July this year.
So far, that capital flight has been
offset by retail and business deposits,
which are up overall. But the picture
is patchy: in the UK, both kinds of
deposit are down, to the tune of
400bn in total.
With capital desperately fleeing
risk, banks are in a precarious posi-
tion: any sign of weakness could bring
on a panic. Heres hope funding mar-
kets open up before too long.
BOTTOMLINE
Analysis by Juliet Samuel
European
Central Bank
head Jean-
Claude Trichet
(right) and the
ECBs incoming
president, Mario
Draghi, (left) are
at the forefront
of the ECBs
bond buying
programme
Picture: REX
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ITS TIME FOR
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registered trademarks or trademarks of Adobe Systems.
EUROPEAN Central Bank president,
Jean-Claude Trichet, has called on the
Eurozones paymaster economies to
ratify changes to the regions
bailout fund immediately, amid
fears that Slovakia could wait
until December to do so.
In Slovakia on Sunday the head
of a junior party in the rul-
ing coalition said the
Slovak parliament
would not vote on
expanding the powers
of the regional bailout
fund, the European
Financial Stability
Facility (EFSF), before
December at the earli-
est.
While a Slovak
delay may not be fatal
for the EFSF in itself, it points to poten-
tial political problems with passing
the measure throughout the
Eurozones nation states.
Tomorrow morning, Germanys
Federal Constitutional Court will
deliver its ruling -- awaited for
over a year -- on suits claiming
Berlin is breaking German law
and European treaties by con-
tributing to multi-billion euro
bailouts of Greece, Ireland and
Portugal.
Legal experts think the
court is highly unlikely to
block the contributions
altogether. But it is expect-
ed to give the German
parliament a bigger say
in approving them; yet
another potential
headache for German
Chancellor Angela
Merkel (left).
Trichet urges
earlier votes
BY HARRY BANKS
EUROZONE POLITICS
A TURBULENT day in Italy saw

finance minister Giulio Tremonti
pull out of a planned public speech in
order to return to Rome for crunch
talks on the countrys austerity pack-
age.
Politicians will today begin debat-
ing the plans, which have already
been dogged by disputed figures, pol-
icy U-turns and cabinet rows.
Weve known for years that some-
thing like this could happen, that our
public debt is vulnerable and that
speculative attacks are possible, said
Luca Ricolfi, a professor of political
science at Turin University.
But these people are improvis-
ing. Theyre meeting in the
evening and trying to do things
in 24 hours that require two
years of work and preparation,
he said.
The countrys growth
will fall short of
the estimated 1.1
per cent this year,
an unnamed
senior govern-
ment offi-
cial said
yesterday, confessing that it will prob-
ably come in at less than one per
cent.
Support for Prime Minister
Silvio Berlusconi (left) plunged
to a new low over the summer,
according to an opinion poll
released yesterday. The poll
showed approval ratings of
the government had
fallen to 22 per cent in
this month, hitting a
new low and down
from 27 per cent
in Junes sur-
vey.
Italian finance minister forced to cancel a speech
ahead of crunch talks over troubled austerity plan
ITALIAN ECONOMY
EUROPEAN stocks tumbled yesterday

to their lowest close in more than
two weeks, as debt-induced recession
worries continued to weigh.
The FTSEurofirst 300 index of lead-
ing European shares fell 4.1 per cent
to 910.06 points, the lowest close
since 19 August.
The Euro Stoxx 50 dropped even
more heavily, down 5.1 per cent on
the day, while there were also seri-
ous losses in the French CAC, which
closed down 4.73 per cent, and the
German DAX, which tumbled 5.28
per cent. In London, the FTSE shed
3.6 per cent.
Banks across Europe were also hit
by the US lawsuit connected to the
packaging of toxic mortgage debt.
The STOXX Europe 600 Banks
index fell 5.9 per cent and hit a 29-
month low. It has lost more than a
third of its value in 2011, and is the
worst performing European sector.
Deutsche Bank fell 8.9 per cent,
extending a decline from Friday,
when news of the lawsuit first hit
shares in the sector.
Other banks to fall included Royal
Bank of Scotland, down 12.3 per cent
yesterday.
Europes shares sink
to a two-week low
BY HARRY BANKS
ECONOMY
Eurozone in crisis
0cial government luel conaumtion ngurea in mg (litrea er 1uukm} lor the C-Claaa Saloon range: urban 15. (18.1}-5u.4 (5.}, extra urban 22.2 (8.5}-7.2 (2.7},
combined 22.5 (12.u}-4.2 (4.4}. C02 emiaaiona: 28u-117g/km. Vodel leatured ia a Vercedea-8enz C18u 8lueLlllClLlC Sort Ldition125 Saloon at 29,75.uu on-the-road including otional metallic aint at 45.uu (on-the-
road rice includea vAJ, delivery, 12 montha' Road lund Licence, number latea, nrat regiatration lee and luel}. C-Claaa Ldition 125 modela are available lor ordera between 1 July and 2u lovember and regiatrationa by 21 Lecember 2u11. Jerma and conditiona aly.
0er ia aubject to availability. 0er cannot be uaed in conjunction with any other ubliahed oer lrom the retailer. Pricea correct at time ol going to reaa(u7/11}.
HOUSEBUILDER Berkeley Group per-
formed better than expected in the
four months since May and said yester-
day it would hit its five-year profit tar-
get at least two years early after seeing
a pickup in market conditions.
The FTSE 250-listed group
embarked on a plan in May 2010 to
double pre-tax profit within five years
as well as grow the margin in its land
bank.
In an upbeat trading statement yes-
terday, Berkeley chairman Tony
Pidgley announced that trading had
been ahead of management expecta-
tions since 2010 and said the group
would reach its target at least two
years earlier than originally anticipat-
ed.
Berkeley said it had pre-sold new
homes worth 850m in the four
months through to 31 August, and has
secured seven new property sites in
the past three months alone.
It has also been granted improved
planning consents on schemes in
Battersea, Kew, North Bersted and
Gillingham among others.
The group said its focus on London
and south east property market had
helped it to outperform despite tough
market conditions
But Shore Capital analyst Jon Bell
warned that Berkeley was not
immune to the ongoing issues in the
wider housing market, particularly
continued poor mortgage availability.
Analysts say plans unveiled in June
to return 1.7bn to shareholders over
ten years, may now be accelerated.
Berkeley to
hit its profit
target early
EUROPEAN market authorities are
ploughing ahead with plans to push
all derivatives trading onto electronic
platforms, drafts showed yesterday.
A draft of the EUs new Markets in
Financial Instruments Directive
(Mifid) rules shows regulators set on
moving derivatives onto transparent
platforms to give them a picture of
who is affected when a counterparty
gets in trouble.
FORMER Icelandic prime minister Geir
Haarde appeared in court yesterday to
defend himself against charges that he
acted negligently during the countrys
2008 banking crisis.
Haarde was indicted last year as
part of a push in the country to hold
politicians responsible for the
Icelandic crash, but his defence
lawyers yesterday called the charges
indeterminable and unclear.
EU plans will
shift derivatives
onto exchanges
Trial begins for
Icelands former
prime minister
Berkeley, led by chairman Tony Pidgley, said trading has been ahead of expectations
BY KASMIRA JEFFORD
PROPERTY
MARKETS
News
ANALYSIS l Berkeley
p
1,240
1,200
1,160
1,120
1,236.00
5 Sept
ANALYST VIEWS: HOW WAS BERKELEYS
TRADING STATEMENT? By Kasmira Jefford
SIMON BROWN | NORTHLAND CAPITAL

Land and an entrepreneurial approach to its defined regional market are
core strengths within The Berkeley Group. The rating is a buy and we see
no reason to remove this stock as our favoured investment in the sector.
ROBIN HARDY | PEEL HUNT

[The statement] could mean that consensus is around 15 per cent too low
for 2013 and there should be fewer questions marks over the ability to fund
the 13 in special dividends. We remain a buyer with a 14 target price.
RACHAEL WAREING | PANMURE GORDON

Berkeley is a quality company, operating with the right product in the
right locations. Looking at valuations across the sector at present, the rat-
ing appears fair. We reiterate our hold recommendation.
POLITICS
News
SIR STELIOS Haji-Ioannou reignited
an ongoing row with easyJet yester-
day after calling for yet another
director to be ousted from the board,
sparking an angry response from the
airline.
Sir Stelios has written a letter to
easyJet calling for a shareholder
meeting to vote on the removal of
Professor Rigas Doganis after the
director backed the purchase of 35
aircraft from Airbus in January, a
deal which he has been fiercely
opposed to.
EasyJet has hit back at its former
owner and largest shareholder,
describing the latest proposal as an
unnecessary and costly distraction
which is damaging to the companys
reputation.
The board added that it would in
turn write to investors urging them
to reject the proposal.
Sir Stelios latest missive comes as
a fresh blow, just two weeks after
deputy chairman Sir David Michels
quit following the Greek tycoons
demand for his immediate dismissal
four months before he was due to
stand down.
Sir Stelios calls for
yet another board
change at easyJet
BY KASMIRA JEFFORD
AVIATION
PART TIME MBA

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Sir Stelios (above) called the decision of Professor Doganis (top) value destroying
ANALYSIS l Easyjet
p
355
345
335
325
324.60
5 Sept
IAG traffic up
as Air France
slashes costs
INTERNATIONAL Airlines Group,
formed by the merger of BA and Iberia,
posted a rise in passenger traffic for
August thanks to continued growth in
first-class and business-class travel.
Traffic, measured in revenue pas-
senger kilometres, rose by 2.2 per cent
versus August 2010, while passenger
load factor -- a measure of how well it
fills its planes -- was up 0.1 percentage
points at 84.9 per cent.
Europes second-biggest airline
group by value behind Lufthansa said
its first and business-class travel -- the
most profitable part of its passenger
business -- rose 8.7 per cent, while non-
premium traffic was up 1.4 per cent.
Meanwhile Air France KLM is eying
cost savings of up to 800m
(701.47m) per year to help face down
economic uncertainty.
The carrier yesterday met with
unions to discuss its deeper than
expected cuts plan, which is set to
include some job losses as well as a
reshuffle of the business.
AIRLINES
Your home may be repossessed if you do not keep up repayments on your mortgage.
first direct credit facilities are subject to status. Rates correct as at 02 September 2011. Because we want to make sure were doing a good job,
we may monitor and/or record our calls. HSBC Bank plc 2011. All Rights Reserved. first direct 40 Wakefield Road, Leeds LS98 1FD. A
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TAKEOVER target Charter International
extended the timetable for potential
buyer Melrose to make a formal offer
yesterday, giving it two and half weeks
more for its due diligence.
Charter asked the Takeover Panel to
approve the extension to the put up or
shut up deadline for Melrose to table an
offer just a day after it admitted it was
also in talks with US pump and valve
maker Colfax.
Melrose asked for access to Charters
books before it formalises its latest 850p
cash and shares offer for the engineer-
ing group and can now do so until 21
September.
But the arrival of a second interested
party makes a bidding war for Charter
increasingly likely. Its shares outper-
formed the FTSE yesterday, falling just
0.4 per cent.
Sources close to Melrose said it
believed Charter investors would still
back its offer because they would gain
shares in the enlarged group.
Alex White, corporate finance part-
ner at BDO said this was a valuable ele-
ment of the offer. It is hard to see why
an all cash bid from Colfax would be
attractive given the significant upside
from the ESAB turnaround plan, which
forms part of the Melrose offer, and
from breaking the group up, he said.
About 30 per cent of Charters share-
holders are also investors in Melrose
and have said they would welcome
more shares in a combined group.
But Colfaxs statement said it takes a
disciplined approach to acquisitions
and is committed to maintaining a
prudent capital structure, making a
high bid look unlikely.
Charter gives
Melrose time
Charter chairman Lars Emilson is talking to two potential bidders Picture: REX
BY ALISON LOCK
M&A
News
12
ANALYSIS l Charter International
p
820
800
780
760
782.50
5 Sept
GEORGIAS biggest bank is to move on
to the London Stock Exchange after
five years of trading its global deposi-
tary receipts (GDRs) successfully on
the market, it said yesterday.
It will be the first Georgian compa-
ny to be admitted to the London mar-
ket, just three years after it became
the first Georgian firm to issue a
Eurobond, raising $200m in 2008.
Bank of Georgia, which raised
$139m (85.7m) from listing its GDRs
in 2006, will create a new holding
company and swap all its GDRs for
shares in the new entity on a one-for-
one basis.
Chief executive Irakli Gilauri,
whose brother is Georgias Prime
Minister, said the bank was well-capi-
talised and strongly positioned.
We believe Bank of Georgia offers
UK equity investors exposure to a fast-
growing emerging market through a
leveraged play that has demonstrated
its resilience in recent years, he said
in a statement.
The bank wants access to a more liq-
uid market and a broader investor
base than GDRs can supply, as it plans
to raise more capital to fund both its
physical expansion and asset base.
It is also understood to be preparing
to raise a further $250m from a sec-
ond Eurobond as it seeks to diversify
its sources of wholesale capital.
Sources familiar with the situation
told City A.M. the move was also a
response to the market uncertainty
since the financial crisis, which has
made investors prefer to hold shares
rather than GDRs in emerging market
companies.
The bank has also now had time to
adjust to the strict corporate gover-
nance requirements imposed by the
LSE, and is better prepared to move to
a premium listing.
Bank of Georgia said its home coun-
try was under-banked and both the
financial sector and the wider econo-
my were expected to grow substantial-
ly in the coming years.
It provides 36 per cent of all loans
issued in Georgia, holds 34 per cent of
all deposits there and grew its net
income 139 per cent year-on-year in
the first half of 2011.
The bank is growing well and in
the future they are going to look more
and more to capital markets to fund
their business, one source said.
Georgia bank
to swap GDRs
for LSE listing
SHARE registrar and business services
group Equiniti has bought the corpo-
rate and employee services division of
NatWest Stockbrokers.
Equiniti declined to disclose the
value of the deal, which comes a
week after City A.M. reported that the
private equity-backed firm was look-
ing to make more acquisitions.
Wayne Story, chief executive, yes-
terday said the deal brings a wealth
of experience that will complement
Equinitis existing operations. Stuart
Welch, chief executive of NatWest
Stockbrokers, said the division was a
niche part of his firm. The specialist
corporate share plan stockbroking
team provides dealing services.
Equiniti reported annual revenues
of nearly 287m, according to its lat-
est accounts.
TD Waterhouse Investor Services (Europe) Limited (a subsidiary of the Toronto-Dominion Bank). Authorised and regulated by the Financial Services
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Equiniti snaps up
NatWest division
BY ALISON LOCK
CAPITAL MARKETS
Irakli Gilauri, chief

executive of Bank
of Georgia, is keen
to make the banks
stock more liquid
to aid future
fundraising
BY PETER EDWARDS
FINANCIAL SERVICES
News
ING Bank is advising Bank of Georgia
on its planned listing, fielding a team
that includes Nathalie Bachich de
Recina, who was recently appointed
managing director and head of equity
capital markets for emerging mar-
kets. With ING since 1998, Bachich
de Recina is responsible for central
and eastern European equity capital
markets, with focus on Poland and
Russia. She reports to Willem-Jan
Meijer, global head of equity capital
markets and Pierre Chabrelie, head of
clients and corporate finance. Also
advising is Daniel Friedman, director
of corporate finance. Friedman has
worked for 11 years with ING, seven
of them in the emerging European
team.
The teams recent deals include the
104m (91m) rights issue and
Polish public offering of Nova
Kreditna Banka Maribor in May the
first listing of a Slovenian issuer on
Warsaw Stock Exchange.
It also advised on the 400m Polish
Zloty (83m) accelerated global ten-
der of Kernel Group in 2008, as well
as Exillon Energys $280m (174m)
placing on the London Stock
Exchange in May this year and the
3.17bn Polish zloty (657m) book-
building for Polish insurance group
PZU in June.
MEET THE ADVISER: ING
NATHALIE
BACHICH DE
RECINA
HEAD OF ECM FOR
EMERGING
MARKETS
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MORE NEWS
ONLINE
@
www.cityam.com
NEWS | IN BRIEF
Pension fund assets rising
The total assets of the worlds largest
300 pension funds grew by 11 per cent
last year to a record high of $12.5 trillion
(7.77 trillion) according to new
research. The study from Pensions &
Investments and Towers Watson
showed that despite last year's growth
in total assets, annualised growth of all
funds during the past five years has fall-
en to just above six per cent. Europe is
the region with the highest five-year
growth rate. Chris Ford, Europe, Middle
East and Africa head of investment at
Towers Watson, said: The worlds
largest pension funds have changed their
asset mix during the past five years to
be more defensive partly due to ongoing
volatility and an unpredictable growth
environment.
Manchester United might score in Singapore
M
ANCHESTER Uniteds attempt
to float in the far east is being
monitored carefully in the
City. After all, there are not
many IPOs going on in the moribund
London market right now.
A number of football club boards
will be looking on to see if United, led
on the financial advisory side by
Credit Suisse, manages to pull it off,
with talk that others may follow the
eastern road to riches.
In the 1990s a host of football clubs
ventured onto the London stock mar-
ket, spawning an ancillary industry
of football research analysts, now all
subsumed into leisure teams.
Somewhat amazingly it wasnt just
the big glamour clubs, but the likes of
Charlton, Southampton, Aston Villa
and Sunderland who were also tempt-
ed by the public markets, in the hope
they could persuade institutional
shareholders to invest in their busi-
nesses, whose revenues were being
boosted massively for the first time by
pay television.
But the bubble burst when it
became obvious that as much as the
revenues were rising, they were fast
disappearing into players pockets or
going on crazy transfer fees. Share
prices of most clubs bombed and ulti-
mately they were either taken private
or bought by new owners.
Manchester Uniteds current plan
to spin off 20-30 per cent of the com-
pany is mocked by some investment
bankers who argue that the club,
despite being one of the most power-
ful sports franchises in the world, can
not present a credible investment
case.
And they fail to see how a mooted
valuation of around 2bn can possi-
bly make sense for a business that is
loss-making most years.
Others say the decision to list in
Singapore, rather than Hong Kong
where Prada, Samsonite and Glencore
recently floated, is an odd one.
Yet there is some reason to think
the float may just happen, even if
advisers are ultimately forced to
revise their valuation of the business
downwards.
The retail demand for shares in
companies that have brand kudos is
huge in the far east; United has a mas-
sive following there; and its latest set
of financial results showed impres-
sive (though unpredictable) growth in
turnover and profitability.
The deal might be a difficult one to
pull off but it is probably wise not to
write off Manchester Uniteds far east-
ern financial adventure too soon. It
will be a blow to London if it flies.
INSIDE TRACK
DAVID HELLIER
JOIN THE DEBATE
THE FUTURE OF WORLD BANKING
MAKING SENSE OF UNCERTAIN TIMES
Amid the current market turbulence, banking has never been more controversial. This Conference will debate
the issues in the current crisis with the backdrop of the ICB September report by Sir John Vickers.
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12 October 2011
Keynote address Vicky Pryce
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For more information and to book online
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CITYA.M. 6 SEPTEMBER 2011
RECLUSIVE
TYCOONS
VIEW 35M
SHOW BOAT
WHAT TO do when there are simply no
luxury yachts on the market you want
to buy? Easy start your own yacht busi-
ness and build your own, as Richard
Beattie did when he discovered an
alarming lack of contemporary 21st-
century superyachts for sale.
I fully expected to just go and buy one I
liked, but we found there werent enough
out there, said Beattie, the founder-chair-
man of Aquos Yachts and chief executive of
retail promotions firm TCC, who stepped
into the world of steel-hulled, long-distance
luxury boats when he launched the 45-
metre Big Fish in June 2010.
Fifteen months and many remote expe-
ditions later the Galapagos Islands,
French Polynesia, Antarctica Big Fish is
back on the market for 35m (30.6m), as
Beattie focuses on building his next two
50-metre superyachts, Starfish and
Swordfish.
The audience for a 35m boat is pretty
limited, said Beattie, but he and his yacht
broker, the Aim-listed YCO Group, remain
hopeful for a sale, after last night hosting
a party on board Big Fish currently
moored at Tower Bridge to show off the
boat to potential clients.
challenge by spending three hours and 20
minutes swimming 10km in the River
Dart in Devon. Im loath to think how
much of the river I drank, but the 5k I
have raised for the Prostate Cancer Charity
makes it worthwhile, said Gill (left).
That, and being presented on complet-
ing the swim with a bowl of soup made by
TV chef Hugh Fearnley-Whittingstall,
who happened to be filming The One
Show in the area.
REMEMBERING 9/11
SIX DAYS before the tenth anniversary
of the terrorist attacks on the World
Trade Center, Mayor of London Boris
Johnson yesterday unveiled a com-
memorative public artwork called
After 9/11 in Battersea Park.
Johnson was joined by the sculp-
tures artist Miya Ando; Thomas Von
Essen, the New York fire commissioner
on the day of the attacks; and Peter
Rosengard, chairman of the 911
London Project, the schools education
programme also announced yesterday.
Unfortunately, those solvent buyers
are extremely protective of their priva-
cy, said Gary Wright, managing part-
ner of YCO Group, but think bigger
than Lord Alan Sugar along the lines
of the Middle Eastern royals and Silicon
Valley tech billionaires who write the
foreword endorsements to YCOs 200-
page coffee-table brochures
BUSINESS OR PLEASURE
ON THE subject of big fish in small ponds,
Aviva, the 70-metre superyacht owned by
financier Joe Lewis, is also currently
moored at Tower Bridge, prompting spec-
ulation as to what brings the Bahamas-
based billionaire to London.
Has the notoriously publicity-shy fin-
ancier steamed up the Thames to steady
the ship at Mitchells & Butlers, the pub
chain he holds a 42 per cent sharehold-
ing in with JP McManus and John
Magnier, following a string of board-
level departures at the pub chain?
Has he left the Caribbean on Spurs busi-
ness, after the football club he majority
owns through ENIC International made
no high-profile signings this summer?
Or is he simply in town for YCOs
party, as one of the firms mysterious
yacht-owner guests? You decide.
THE RIVER CAFE
AN UPDATE on Susannah Gill,
Betfairs Iron Lady, who has
completed her ultimate triathlon
For sale: Big Fish arrives in London through Tower Bridge ahead of last nights yacht party
15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
The Capitalist
Thomas Von Essen, Miya Ando and Boris Johnson unveil After 9/11
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Introduction by City AM Editor, Allister Heath
AMBULANCE-CHASING lawyers came
under fire from major UK retailers
and insurers demanding reform of
the booming market for personal
injury claims yesterday.
Businesses led by the Association of
British Insurers are fighting back
against a surge in no win no fee
legal actions behind a 72 per cent
jump in the number of bodily injury
claims received by insurers since 2002.
Ford, Premier Inn, Asda and Argos
are among the firms calling for action
against claims management compa-
nies that send spam text messages to
encourage people to have a go to
claim a few hundred pounds from a
company or insurer.
In a new report, the ABI slammed
the spurious and exaggerated per-
sonal injury claims that cost business
and government bodies such as the
NHS billions every year.
The current system encourages
many people to believe that there is a
compensation culture that they can
exploit with exaggerated and fraudu-
lent claims. The price for this is paid
by millions of honest customers, it
said.
Legal fees for claims can be ten
times the damages paid and all costs
are borne by the defendant, leaving
businesses bearing huge charges.
The ABI cited one supermarket
chain that said its personal injury
claims costs were equivalent to the
annual turnover of five of its shops.
Motor insurance premiums have
also risen sharply as claims from hard-
to-diagnose injuries such as whiplash
have soared. About 2.7m is paid out
to claimant lawyers via premiums
every day, the ABI said.
Insurers hit
out at no win
no fee claims
LONDON insurers are writing far
more business than previously
believed, cementing Londons status
as a top global insurance hub, new
research yesterday showed.
City insurers wrote a total of 39bn
of gross premium in 2010, a third
more than the 30bn estimate for the
industry previously used, the
International Underwriting
Association said after surveying the
entire market for the first time.
Insurers outside of the Lloyds mar-
ket wrote a gross 16.4bn of premium
last year, or 12.6bn after broker com-
missions, the IUA found by surveying
57 insurers. Lloyds insurers brought
in 22.6bn in gross premium or
17.7bn net of commission last year.
IUA chief executive Dave Matcham
said the survey showed London had
kept its competitive edge. The find-
ings clearly show that London is the
place to go for specialty business, he
said. We are quite excited about this;
it is rewriting textbooks.
The survey included only business
directly written in London and did not
capture the billions of pounds of busi-
ness written globally but controlled
from London. Matcham said one com-
pany wrote just a third of its UK-con-
trolled business in London, and that
the IUA will survey this next year.
City insurance
market bigger
than expected
BY ALISON LOCK
INSURANCE
INSURANCE
NHS legal fees have risen five per cent since

2004, but claimants costs are up 130 per cent
Whiplash claims cost insurers 2bn a year
Legal firms pay up to 1,000 per customer
record to encourage people to make a claim
FAST FACTS | NO WIN NO FEE
News
CITY VIEWS: DOES THE NO WIN NO FEE SYSTEM
NEED REFORM? Interviews by William Turvill and Max Faulkner
I totally agree with the reforms. The compen-
sation culture is getting out of hand, especially
in the western world. It has pushed up the
price of consumers insurance and the only
winners in these scenarios are the lawyers.
PETER GODFREY | JRP
Personally, I think it's a good idea; no win no
pay claims have gone too far and have exacer-
bated our money-grabbing society. Legal fees
should be restrained and, clearly, reforms need
to be made.
I don't think the system needs to be, or
should be, reformed. It should just stay the
same. The organisations causing wrong-doing
should have to pay rather than the badly-
treated people who are seeking compensation
and justice.
MARC TAYLOR | CNS UK
BARNEY TAYLOR | TELIRIS
* These views are those of the individuals above and not necessarily those of their company.
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BARCLAYS Capital yesterday won
another brokership, continuing its
strategy of expanding its UK equities
business.
BarCap will now be joint broker to
Yule Catto, the speciality chemicals
manufacturer, alongside Collins
Stewart.
The investment bank has been
pushing its broking business in an
attempt to forge relationships with
big UK clients and has already won
mandates from the likes of the new
British Airways owner IAG,
Resolution and 3i.
It is understood that Yule Catto
decided on the change after BarCap
advised the group on its recent
376m acquisition of Polymer Latex.
Its previous joint broker was RBS,
which no longer has a dedicated ana-
lyst covering the speciality chemicals
sector.
BarCap has been aggressively chas-
ing new mandates, as has Goldman
Sachs.
Goldman, whose team was boosted
recently by the appointment of Phil
Shelley from UBS, has recently won
mandates at Balfour Beatty and
Autonomy Group. Goldmans other
recent account wins include Arm,
Man Group and IHG.
Barclays Capital notches
up a new broking client
BY DAVID HELLIER
ADVISORY
News
NEWS | IN BRIEF
Profits rise at Hydrogen
Profits at international recruitment
group Hydrogen rose by 64 per cent in
the six months to the end of June, the
company said yesterday, as revenues
increased by 45 per cent to 80m.
Profits before tax were 1.8m and net
fee income hit 15.1m. The profit
increase was driven purely by increasing
revenues, with no cost cutting, chief
executive Tim Smeaton told City A.M.
During the same period weve increased
headcount to 350 staff. Hydrogen saw a
particularly strong performance in its
engineering division, where net fee
income was up 71 per cent to 2.9m. Its
contract group also performed well, with
net fee income at 8.1m up 41 per cent
from last year. Hydrogen recently opened
an office in Hong Kong, and 40 per cent
of the groups fee earning headcount now
comes from international markets.
GERMANY DENIES EYEING EADS STAKE
GERMANY yester-
day denied a
report it was
preparing to take
a stake in EADS
after failing to find
a domestic private
investor for part of
Daimlers holding
in the European
aerospace compa-
ny. There are nei-
ther concrete plans
nor an agreement
for a takeover of
the Daimler share
of EADS through
the KfW bank, an
economy ministry
spokesman said.
THE City last night took a hopeful view
of the 14m incentive plan launched for
the bosses of troubled retailer JJB Sports.
Shares in the firm, which was rescued
by a deal with landlords in March,
closed up 2.4 per cent despite a dire day
on the rest of the FTSE, after it said sen-
ior managers could end up with 15 per
cent of the firms equity if their turn-
around plan is successful.
The incentive scheme will see chair-
man Mike McTighe, chief executive
Keith Jones, chief financial officer Dave
Williams and non-executive director
David Adams, as well as several senior
managers, receive 20 per cent of the
growth in the value of the company
above a market capitalisation of 96.5m,
increasing by five per cent a year until
vesting.
JJB, which counts Microsoft founder
Bill Gates among its major shareholders,
said the scheme will replace previous
management incentive plans and has
been designed to carry out its ongoing
turnaround plan successfully and share
in the value that would be created. It
will encourage directors to hit a target
market cap of 193m, double the level
of emergency investments, triggering
the award of 7.2 per cent of equity.
The awards would be capped at 15 per
cent if JJBs market capitalisation
reached 490m more than eight times
its current value. Analysts were unim-
pressed, however, with Nick Bubb at
Arden Partners, calling the scheme fan-
ciful. JJB posted an annual loss of
181m in May and warned it could take
five years to fix the business.
Troubled JJB
pins hopes on
incentive plan
BY PETER EDWARDS
RETAIL
News
18
ANALYSIS l JJB Sports
p
21.00
20.00
19.00
21.00
5 Sept
JJB chief executive Keith Jones (left) and chairman Mike McTighe are involved in the scheme
HOBBYCRAFT, the arts and crafts
retailer subject to a bidding war last
year, has increased sales and profits
since being taken over by private equi-
ty but admitted it has to become
more interesting.
The retailers parent, Hobbycraft
Group, which was bought by
Bridgepoint Capital last year in a deal
worth around 100m, hit sales of
95.21m for the year to February, up
from 84.38m.
It is already the largest chain of ded-
icated arts and crafts superstores but
Bridgepoint which counts Sir Stuart
Rose among its advisers wants it to
increase sales fourfold.
Over the last year Hobbycraft
opened four stores, taking the total to
51, but the report written by chairman
Simon Burke said the firm must do
more to increase its appeal.
Hobbycraft benefits from a strong
and loyal customer base of craft and
hobby enthusiasts who form the core
of our stores business. But there are
many more potential customers who
do not see themselves as crafters for
whom we need to make ourselves
more accessible and interesting.
The group, which started out from
one shop in Bournemouth, made an
operating profit of 2.77m after a
9.3m goodwill amortisation and
exceptional charges. The pre-tax loss
was 11.03m, which reflects in part
the 12.57m cost of net financing.
Bridgepoint beat off competition
from private equity firm Exponent
and retailer Halfords to buy
Hobbycraft in April last year.
Blackstone had expressed interest, but
did not submit a bid in time.
Hobbycraft, run by ex-Pets at Home
marketing director Catriona Marshall,
did not return calls for comment yes-
terday.
Bridgepoints European advisory
board is made up of names including
former HBOS chief executive Sir James
Crosby, former Labour Health
Secretary Alan Milburn and Lord
Patten, ex-governor of Hong Kong.
Hobbycraft
tells board:
dont be dull
News
NEWS | IN BRIEF
Sales slide lower at Superglass
Superglass Holdings, the glass fibre insula-
tion products manufacturer, said yester-
day that underlying trading for the year to
31 August will be slightly below expecta-
tions. It also said net debt has increased
to 17.7m in an update following its year-
end. Sales were ahead of the forecast in
cured products, compensating for further
underperformance in some blowing wool
product lines. Market weakness and cost
pressures have hit margins, it added.
Capital expenditure increased after a fur-
nace failure last year, for which the insur-
ance claim has yet to be fully settled.
Revenues increase at Brady
Brady, a risk manager for the metals,
energy and soft commodities markets,
said yesterday its first half revenue rose
91 per cent to 8.84m. Like-for-like rev-
enue growth was 11 per cent and operat-
ing profit rose 54 per cent to 550,000.
Chairman Paul Fullagar said the firm has
signed six significant licence contracts in
the first half and nine in the year to date,
despite economic conditions that it
described as challenging. It will also con-
sider further acquisitions, Fullagar added
in the results for the six months to 30
June.
Cluff Gold raises mine estimates
AIM-listed miner Cluff Gold said yester-
day its project in Sierra Leone contains
significantly more gold than previously
forecast. The firm said the indicated
resources at the Baomahun project now
stood at 2.1m ounces a rise of 46 per
cent on last years estimates. Chief exec-
utive Peter Spivey said there was still
scope to further expand the resource
base at Baomahun and that feasibility
studies are continuing.
Alexon hit in sorry summer
SHARES in fashion retailer Alexon
slumped nearly a quarter yesterday
after it posted a profit warning,
despite revealing it was in talks over
a takeover.
The firm, whose brands include
Ann Harvey, Eastex, Kaliko and Dash,
said yesterday it has been in discus-
sions with more than one suitor as it
reported that sales at stores open
over a year fell nine per cent in the
first three weeks of August. It has not
yet received a bid, however.
Alexon blamed very difficult
retail and economic conditions for
its disappointing summer, which
comes after analysts warned of shop-
pers cutting back on non-essential
spending during an uncertain eco-
nomic climate.
The decline in Alexons sales eased
in the final week of August, it said,
with revenue down one per cent on a
like for like basis.
The firm warned that its annual
performance will be well below
expectations but it clung to better
figures from its website, were sales
were up 118 per cent in the first half,
and the results of its Kaliko and
Alexon brands, which it said
achieved double digit like for like
sales growth.
Total sales for the half year to July
30 were down eight per cent.
Earlier this summer Alexon said its
Dash and Minuet brands had been
hit by cotton price inflation.
Yesterdays figures sent Alexons
already struggling shares into a tail-
spin, closing down 28.6 per cent at
5p.
A FASHION industry veteran yester-
day began his role as the new chief
executive of Debenhams.
Michael Sharp took over yesterday
following the retirement of Rob
Templeman, who was in post for
eight years. Sharp has worked for
Debenhams or its predecessor The
Burton Group for the entirety of his
26-year career.
Debenhams chairman Nigel
Northridge has said that the board is
delighted with the appointment of
Sharp, who was deputy chief execu-
tive for the previous three years.
Templeman, who will continue to
hold a consultancy role with
Debenhams for the next year, said:
Michael and I have worked together
extremely closely and I know that he
has the talent and experience to lead
Debenhams forward.
New man looking Sharp
at the top of Debenhams
RETAIL
Hobbycraft chief executive Catriona Marshall has seen profits go up Picture: REUTERS
BY PETER EDWARDS
RETAIL
BY PETER EDWARDS
RETAIL
COMMODITIES trader Glencore has

signed its first contract to deliver fuels
to Libyas interim council, industry
sources said, in a further sign that
rival Vitol is losing its place as top sup-
plier to the rebels who now rule the
country.
The National Transitional Council
(NTC) has gained broad international
recognition as Libyas legitimate gov-
ernment and oil trading firms are
vying for contracts to gain a foothold
in the Opec member country, which
holds Africas largest oil reserves.
The NTC badly needs fuels to help
relieve strain on Libyas infrastructure
and prove it can restore order and
basic services in a country reeling after
six months of fighting.
They are supplying products. The
deal was for two shipments of gasoline
and two shipments of gasoil, said an
industry source in Libya familiar with
the transaction.
Glencore declined to comment.
The size of the cargoes was not dis-
closed but four standard-size products
tankers are worth around $125m
(77.6m) at current European spot
prices. It was not clear when delivery
would begin but a second industry
source said the contract was condi-
tional on the lifting of UN sanctions
on Libya, which still apply to the coun-
trys National Oil Corporation.
Some fuel imports to Libya in the
past two months have been arranged
via Benghazi-based Arabian Gulf Oil
Company, since it has a sanctions
exemption.
Vitol, along with Qatar, was a top
supplier for the rebels in east Libya
during the first few months of the
revolt and, while it is still sending fuel,
the NTC has diversified its business
partners.
In the past week, Frances Total has
supplied its first tankers to Libya since
the conflict between rebels and forces
loyal to Gaddafi began in February.
THE board of the worlds top alumini-
um producer Rusal yesterday unani-
mously rejected an $8.75bn (5.4bn)
offer by mining giant Norilsk Nickel
to buy back its 15 per cent stake in
Norilsk.
The Board of Directors believes the
proposed terms of the deal do not
reflect the fundamental value of a
major stake in Norilsk Nickel, which
remains a strategic investment for
Rusal, it said in a statement.
The $306 per share offer for a 15
per cent stake a 20 per cent premi-
um to the weighted average market
price for the past six months was
approved by Norilsks board and was
valid until 2pm yesterday.
Norilsk said that it plans now to
make a buyback offer to other share-
holders.
Norilsks board will meet in the
near future to discuss the parameters
of the buyback. The date for the meet-
ing has not been set yet, a Norilsk
spokeswoman said.
Norilsk Nickel made the buyback
offer last month in its third attempt
to repurchase the shares and resolve a
long-running dispute between rival
oligarchs Vladimir Potanin, whose
Interros investment company holds
about 30 per cent of Norilsk, and Oleg
Deripaska, who controls Rusal.
Interros, Potanins investment vehi-
cle, said that it would propose to
minority shareholders buyback con-
ditions similar to those in the offer to
Rusal.
Rusal rejects a 5.4bn share buyback
offer from mining giant Norilsk Nickel
KGHM, Europes number two copper
producer, has raised its 2011 net profit
target by 16 per cent to a record 9.6bn
zlotys (2bn) on higher copper prices
and asset sales, a touch above analysts
forecasts.
Analysts expected the state-con-
trolled miner to raise the goal to 9.5bn
zlotys from the 8.4bn it had predicted
earlier, after it booked more than half
of the previous goal in the first six
months.
KGHM is now targeting 2011 sales of
18.9bn zlotys compared with 16.1bn
expected earlier.
The forecast, already nearly double
last years net record profit, includes a
windfall from the sale of its stake in
Polands second biggest mobile opera-
tor Polkomtel, which the owners
agreed to sell in June in the countrys
biggest ever takeover.
The change results mainly from
higher production and a higher esti-
mate for the copper price, said
Ipopema analyst Tomasz Duda.
KGHM ups profit target
on back of copper prices
MINING
BRAZILIAN mining giant Vale is in

talks with Chinese and other ship
owners to sell or lease its planned
fleet of giant bulk carriers.
The worlds biggest iron ore pro-
ducer had planned to own a fleet of
19 dry bulk freighters to cut ship-
ping costs from Brazil to top iron ore
importer China, but has now decid-
ed it no longer needs to have direct
ownership of the vessels.
Market sources said the move may
make it easier for Vale to finalise
negotiations with Chinese ports
after the miner failed to gain access
to them for its first giant bulk carri-
er on its maiden voyage in June .
There had been speculation
among traders that the vessel, Vale
Brasil, was unable to berth after
Chinas domestic shipping industry
urged the authorities to protect its
commercial interests.
The mega ships will cut freight
costs to China by 20-25 per cent, Vale
said.
Vale in talks to sell fleet
of giant ships to China
MINING
APR ENERGY, the temporary power

company bought earlier this year by
entrepreneur Hugh Osmond, said it
intends to relist its shares on the
London Stock Exchange this month.
The re-listing comes just three
months after Osmonds investment
vehicle Horizon bought the company
for 527m. Horizons shares were tem-
porarily suspended but will resume
trading as APR on 19 September.
The reverse acquisition could give
the enlarged company a market capi-
talisation of 1bn or more, according
to some estimates.
APR is one of the worlds biggest
suppliers of temporary power, second
only to London-listed Aggreko. The
company has grown rapidly thanks to
booming demand for generators from
emerging markets, where there is a
big shortage of electricity.
Natural disasters like the earth-
quakes in Japan and New Zealand have
also boosted demand for its genera-
tors.
However, APRs growth has been-
held back by a shortage of capital,
which is why the group, which is led
by John Campion, co-founder of the
business in 2004, agreed to reverse
into cash shell Horizon.
The cash introduced through our
reverse into Horizon, coupled with the
access to capital markets and our fast
growing cash flows, will enable us to
compete across the whole market and
accelerate our growth further, APR
said in a statement yesterday.
APR was previously part of French
power company Alstom, before being
spun off in 2004. It is backed by George
Soross Quantum Strategic Partners
and former US secretary of state
Madeline Albrights Albright Capital
Management, which together invested
$250m in March, bringing their com-
bined stake to around 27 per cent.
APR Energy to relist at 1bn
BY KASMIRA JEFFORD
SUPPORT SERVICES
Glencore in
fuel deal with
Libya's NTC
BY HARRY BANKS
MINING
BY HARRY BANKS
MINING
News
Sources: World Energy Atlas, U.S. EIA, Thomson Reuters
Note: Percentages may not add up to 100% due to rounding * Data from Reuters survey
LIBYA'S OIL & GAS RESOURCES
Libya, a member of OPEC, holds the largest proven oil reserves in Africa
44bn barrels of oil and slightly over 54 trillion cubic feet of natural gas
Libya
44.27
(3.3%)
Rest of
world
402.91
(29.8%)
TOTAL
1,354.18
OPEC
951.28
(70.2%)
PROVED RESERVES
Crude oil, in billion barrels, 2010
Libya
1.65
(2.3%)
Rest of
world
41.67
(57.6%)
TOTAL
72.31
OPEC
30.64
(42.4%)
WORLD CRUDE OIL OUTPUT
In million barrels per day, 2009
LIBYA'S CRUDE OIL OUTPUT
In million barrels per day
1.8
1.7
1.6
1.5
1.4
1.3
1.2
2000 '02 '04 '06 '08 '10*
1.41
1.32
1.52
1.68
1.63
1.74
1.65
1.57*
LIBYA'S OIL EXPORTS
By destination, in 2009, in per cent
Italy
Germany
France
Spain
Other Europe
China
U.S.
Other
32
10
14
10
5
7
9
14
Europe
79%
Rest of
world
22%
A
L
G
E
R
I
A
TUNISIA
NIGER CHAD
L I BYA
EGYPT
Benghazi
Medi terranean Sea
Tripoli
Sirte Basin Holds about
80% of Libya's proven oil
reserves and responsible for
most of Libya's oil output
Oil Gas Pipeline: Oil Field: Gas
200 km
NEWS | IN BRIEF
Spanish airport sale heats up
Spain's two biggest airports have each
attracted interest from six potential bid-
ders as part of a 5.3bn planned privati-
sation sale, the countrys Public Works
Ministry said yesterday. Five groups are
interested in both Madrid's Barajas and
Barcelona's El Prat airports, including
German airport operator Fraport and
partner Spanish infrastructure firm
Acciona, and a consortium including
Spain's Ferrovial.
Gulf Keystone in well success
Gulf Keystone said yesterday that they
payzone for its upper Jurassic reservoirs
at its Shaikan-4 well is significantly
better than the pay count of its previ-
ous two wells. The wells in the Kurdistan
region of Iraq contain a total of up to
10.8bn barrels of oil. Gulf Keystone said
Shaikan-2 has achieved flow rates in
excess of 15,000 barrels of oil per day
so far, with more tests planned.
Circle Oil gets more time in Oman
AIM-listed energy explorer Circle Oil
yesterday said it has been granted an
extension on its bid to find fuel of an
onshore block in Oman. The firm said it
now has until December 2012 to explore
the block. Circle also said it is seeking
partners to work on drilling in a sepa-
rate prospect after finding an estimated
2.18bn barrels of oil equivalent oil off
the coast of Muscat.
Hunting completes Doffing buy
Energy services group Hunting has com-
pleted the acquisition of WL Doffing for
$20.8m. WL Doffing provides high pre-
cision machining services to the energy
industry. The consideration paid is on a
cash-free-debt-free basis and will be
funded from Hunting's cash balances,
the firms said yesterday. An additional
consideration of up to $2m is also
payable on the achievement of certain
performance conditions.
ANALYSIS l Glencore
p
430
410
390
370
376.45
5 Sept
SHOP SALES increased across the
Eurozone in July despite a tough sum-
mer in debt-laden peripheral countries
and concern from healthier nations
who might be dragged down, accord-
ing to figures out yesterday.
Overall, retail sales increased by 0.2
per cent in July compared with June.
Portugal and Romania led the way
with 2.5 per cent and 2.2 per cent
monthly growth respectively.
When put in the context of the last
year, though, the figures are less rosy.
Portugals sales are down 5.3 per cent
on last year and Denmarks have fallen
by 5.1 per cent. The food, drink and
tobacco sector is the worst hit catego-
ry, with trade volumes down 2.2 per
cent in 12 months.
Non-food items like computers and
books have performed more strongly,
though, with annual growth over each
month so far this year.
Analysts are not expecting the sec-
tor to pick up any time soon.
It is unlikely that private consump-
tion is on the verge of a strong recov-
ery, at least not in the very near
future, said Barclays Capitals Fabio
Fois. The outlook remains grim.
Unemployment is likely to remain
around 10 per cent until the end of
next year, with the risk that, should
the economic outlook deteriorate, it
could increase further.
Consumer and business confidence
figures suggest concern is rising about
the global economy. That could
prompt further monetary loosening,
and economists expect the European
Central Bank to hold or reduce interest
rates until the end of 2012.
Higher retail
sales a boost
for Eurozone
A GREATER take-up of science studies
in China has resulted in a rapid
growth of innovative industries, the
Institute for Fiscal Studies (IFS) said
yesterday.
Almost one in two Chinese gradu-
ates study for science and engineering
degrees, the group said.
Research and development (R&D)
investment has soared in China in
recent years. The proportion of
national income going to R&D, 1.1 per
cent, has nearly caught up with the
UKs 1.15 per cent investment.
Western multinationals who
account for 25-30 per cent of the R&D
investment in China and who increas-
ingly create new technologies using
Chinese inventors, the report found.
If the trend continues, in 2025,
the US and Europe will have lost their
scientific and technological suprema-
cy for the benefit of Asia, the IFS said.
Skilled Chinese prompting
boom in R&D investment
Nearly half of Chinese graduates have studied science or engineering Pic: REUTERS
BY TIM WALLACE
EUROZONE ECONOMY
France: 0.8 per cent rise year on year in July.

Germany: 1.6 per cent rise year on year in
July.
Spain: 3.9 per cent fall year on year in July.
Belgium: 2.7per cent rise year on year in July.
FAST FACTS | EUROZONE RETAIL SALES
News
BY JULIAN HARRIS
WORLD ECONOMY
21
NEWS | IN BRIEF
Deflation for Russia in August
Russias Federal Statistics Service yes-
terday posted the first monthly deflation
since 2005, driven by cheaper seasonal
foods, making it less likely the central
bank will raise key rates this month.
Russias consumer price index fell 0.2
per cent month-on-month in August
after staying flat in the previous period.
This brings price growth in the first
eight months of the year to 4.7 per cent
compared with 5.4 per cent in the same
period of 2010.
Price pressures steady in Taiwan
Only very slight inflation was recorded
in Taiwan in August, according to figures
released yesterday. Consumer prices
were up 0.03 per cent on the month,
leaving the annual rate of inflation at
1.34 per cent in August up from 1.33
per cent in July. Economists had expect-
ed inflation to come in at close to 1.5 per
cent.
Gold bounces back over $1,900
Lingering concerns over the global econ-
omy were partly responsible for sending
gold back over $1,900 an ounce yester-
day, as the precious metal resumes its
upward trajectory. Gold touched $1,903
in afternoon trading, having dipped as
low as $1,779 last week as investors
cashed in profits. MORE ON GOLD: P26
Economic activity drops in Chile
Chiles economic activity fell 0.3 per cent
in July from June, the central bank said
yesterday, on weaker retail, industry and
mining output, as economic growth
moderates against a backdrop of finan-
cial market gloom. Year on year, eco-
nomic activity was still up by four per
cent in the Latin American country.
RIO TINTO and Anglo American
said they plan to sell their stakes in
Palabora Mining, the South African
copper miner, as it no longer fits
their investment criteria.
The two mining giants, which
together own a 74.5 per cent stake in
the group, said in a statement yes-
terday that the miner is no longer
of a sufficient scale and that they
had kicked off a sale process.
Rio holds about 58 per cent of
Palabora and Anglo owns almost 17
per cent.
Their combined holding is valued
at about $720m (447m) at current
market prices.
Palaboras main asset is a copper
mine that produces about 80,000
tonnes of refined copper a year, sup-
plying most of South Africas copper
requirements and exporting the
rest.
The mine is expected to produce
until early 2016, but studies are
underway to extend operations
until 2030. However Rio said future
value creation at Palabora will likely
come from on-site processing of
magnetite, an activity outside of its
strategic focus.
Rio Tinto is no longer the natu-
ral owner of Palabora due to the lim-
ited opportunity to significantly
expand copper mining, said
Andrew Harding, chief executive
officer of Rios copper arm.
We believe Palabora has a solid
future under an owner who can
develop the magnetite business
alongside the existing copper and
vermiculite operations.
Shares in Rio dropped by five per
cent to 3488.5p yesterday, while
Anglo American fell by 3.6 per cent
to 2368.5p, tracking a wider fall in
the FTSE 100.
Rio Tinto and Anglo
sell Palabora stakes
BY KASMIRA JEFFORD
MINING
SWISS speciality chemicals

maker Clariant cut its full-year
sales and margins target for 2011
yesterday, as the strong Swiss
franc and a softening of global
demand take their toll.
The Basel-based firm said it
expects 2011 sales of SwFr7-7.2bn
(5.5 - 5.7bn) and earnings
before interest, tax, depreciation
and amortisation (Ebitda) margin
between 12.8 and 13.2 per cent.
The company, which makes
colour and additive concentrates
for the car and textile industries,
had previously forecast an Ebitda
margin of 13.5-14.5 per cent in
2011, helped by its 1.7bn acquisi-
tion of German group Sued-
Chemie.
The Swiss franc has risen some
16 per cent against the euro in
July and August alone, with sharp
gains also against the dollar, pres-
suring the margins at many Swiss
companies including Clariant,
drugmaker Roche, and bank
Julius Baer.
Chief executive Hariolf
Kottman confirmed Clariants
2015 Ebitda margin before excep-
tional items of above 17 per cent
and said further savings and the
continued integration of Sued-
Chemie would help the groups
performance in coming years.
The turbulence on the world
markets and the ongoing euro
and dollar crises have strongly
shaken confidence in future eco-
nomic development, said
Alessandro Miolo, Ernst & Young
partner responsible for the Swiss
German market.
Shares in Clariant slumped
16.3 per cent yesterday.
Clariant cuts its sales outlook as strong
Swiss franc and low demand takes toll
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The psychology of money
Our world-class line-up of
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AgencySacks, New York, and
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Collaborative
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Wealth Management
Dr Peter Collett, Oxford don,
psychologist and author
Stephen Quinn, Publisher Vogue
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Quintessentially
Russell Prior, Head of
Philanthropy, HSBC
Held over two half days, with a
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News
NEWS | IN BRIEF
Kofax shares slide after results
Software provider Kofax has seen rev-
enues grow 12 per cent to $243.9m
(150m) in the year to the end of June
as market share grew and companies
relied on its maintenance services. But
the companys shares took a nosedive,
falling 17 per cent to top the FTSE losers
yesterday, as it warned that revenue
growth had slowed in the second half of
the year.
Polo plans a special dividend
AIM-listed miner Polo Resources yester-
day unveiled a further special dividend
after more than doubling its annual net
profit and completing several asset
sales. The firm, which has also complet-
ed a share buyback this year, posted a
net profit of $65.2m (40.5m) for the
year to the end of June and said it will
pay investors 2p per share following the
sale of its interest in Caledon.
Helical Bar secures new tenants
Helical Bar has secured a further seven
tenants for 200 Aldersgate, a refur-
bished building with 370,000 sq ft of
offices. It said the new tenants are
patent attorney Venner Shipley, Maples
and Calder, Dexia Management
Services, Oxera, recruitment specialist
Talent 2, Asset International and i2
Office. Rental levels for the upper floors
range from 48-55 per sq ft, with
rates of 45 per sq ft for lower floors.
FIRST MILK JOINS FORCES WITH FONTERRA
FONTERRA, the worlds largest milk processor, has entered the European markst for the
first time through a joint venture with First Milk, which supplies 15 per cent of the UKs
milk. Whey from First Milks dairy operations in Cumbria will be used to supply New
Zealand-based Fonterras food ingredients business.
CHINAs largest producer of offshore
crude oil and natural gas CNOOC
was hit by its biggest share price fall
in a month yesterday after an oil
leak at one of its major oilfields
forced the company to cut its output
estimates.
Chinese authorities ordered
CNOOC last week to suspend all
operations at its PL19-3 field in the
northern Bohai Bay, co-owned and
operated by ConocoPhillips, because
the American firm had failed to seal
a leak after more than two months.
CNOOC said the shutdown will cut
the companys oil production by
62,000 barrels per day, sending
shares in the blue chip oil producer
down by 8.9 per cent to $13.84 on the
Hong Kong stock exchange yesterday.
The spill off the coast of China has
released about 3,200 barrels of oil
and fluids into the water since June
and is the biggest leak from an off-
shore rig ever reported in China.
Chinas State Oceanic
Administration (SOA) said last week
that intends to sue ConocoPhillips
for the environmental damage
caused by the spill.
CNOOC shares fall
after shutdown of
oilfield hits output
BY KASMIRA JEFFORD
MINING
ANALYSIS l CNOOC
HKD
16.00
15.00
14.00
13.84
5 Sept
ANALYSIS l Rio Tinto
p
3,800
3,700
3,600
3,500
3,488.50
5 Sept
Sign up at cityam.com
News
RBC Wealth Management
Samir Dewan, formerly regional chief
financial officer for private banking in
Asia at ABN Amro, has been appointed
as chief operating officer and head of
business development for RBC Wealth
Management Emerging Markets, based
in Singapore. In addition, Amit
Parmanand joins from ABN Amro
Private Banking as manager, strategic
initiatives for RBC Wealth
Management Emerging Markets.
BlackRock
Nick Little has been promoted to co-
manager of the BlackRock UK Fund,
alongside its existing manager, Mark
Lyttleton. Littles promotion follows his
experience in managing core equity
portfolios for institutional clients at the
investment group.
Ince & Co
Nilam Sharma, formerly a partner at
Crowell & Moring, has been hired as a
partner in the insurance and reinsurance
group at the law firms London office.
Insynergy
Brett Williams, until recently the chief
executive of Cofunds, the UKs largest
IFA platform, is joining the board of
boutique fund management house
Insynergy Investment Management as
a non-executive director.
AXA Investment Managers
Katrin Bostrom has been appointed as
head of Nordic sales at AXA
Investment Managers, based in
Stockholm. Bostrom joins from Morgan
Stanley Investment Management,
where she was executive director, head
of sales and business development,
Nordic region.
CLS Group Holdings
CLS Group has hired Gabor Butor as
head of European regulatory affairs,
joining the executive management
team. Previously, Butor was the lead
negotiator for the Hungarian
Presidency to the EU on financial mar-
kets infrastructure regulation.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Cushman & Wakefield
The property consultant has appointed corpo-
rate real estate executive Simon Ward as a
partner in its EMEA corporate occupier &
investor services team in London. Ward has
more than 30 years experience in European and
international corporate real estate, holding sen-
ior roles including regional director of corporate
real estate at Jones Lang LaSalle; global head of
corporate real estate and services at Deutsche
Bank; and most recently, group property direc-
tor at Barclays.
B
RITAINS top share index was
left nursing heavy losses yester-
day after service sector data
from China, the Eurozone and
the UK intensified concerns the glob-
al economy is facing another reces-
sion.
The FTSE 100 index ended down
189.45 points, or 3.6 per cent, at
5,102.58, its lowest close since 22
August, as global growth in services
came almost to a standstill last
month.
Volume was 85 per cent of the 90-
day daily average and relatively light
compared with Germanys DAX and
Frances CAC 40. There was no chance
of a fillip from US markets, closed for
the Labor Day public holiday.
Commodity-related stocks fell
sharply as investors, still jittery after
data on Friday showed US jobs
growth flatlined in August, were met
by a survey revealing Chinas service
sector grew in August at the weakest
pace on record.
Xstrata led miners lower, down six
perc ent, while BG Group was worst
off among integrated oil stocks, off
5.2 per cent, as investors fretted about
the prospect of lower demand for
metals and fuel.
Everyones on tenterhooks to see
what happens tomorrow because,
with Wall Street closed, were not
really likely to have that much feed-
back, Martin Dobson, head of trad-
ing at Westhouse Securities, said.
Banks also exerted significant
downward pressure on the index
after a US regulator sued 17 large
banks and financial institutions on
Friday over losses on about $200bn of
subprime bonds.
Royal Bank of Scotland was the
standout faller, down 12.3 per cent,
while Lloyds Banking Group and
Barclays shed 7.5 per cent and 6.7 per
cent respectively.
Randgold Resources was the sole
riser, up one per cent, continuing its
bounce after a poor production
update and as investors bought the
gold miner as a proxy for gold.
FTSE at two-week
low over poor data
THELONDON
REPORT
06Jun 24Jun 14Jul 23Aug 03Aug
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5,102.58
5 Sept
Eurozone worries
dent bank shares
E
UROPEAN stocks tumbled four
per cent yesterday, with banks
plumbing a more than two-year
low, as fears for the future of the
Eurozone bubbled up against a back-
ground of weak economic growth
and threats to the banking sector.
The euro fell across the board, with
peripheral Eurozone debt concerns
and political uncertainty in Germany
prompting rises in both the dollar
and safe-haven Swiss franc.
Worries about public deficits in
Greece and Italy and a regional elec-
tion rout for Germanys ruling party
cast fresh doubt on the Eurozones
ability to tackle its debt crisis.
Wall Street was closed for a holiday
but it was unlikely US investors would
have been in any more of a positive
mood given Fridays poor job data.
That fuelled concerns that the US is
slipping back into recession and-
prompted oil to sell off yesterday,
with benchmark Brent dropping
below $110 a barrel.
THEWORLD
REPORT
T
HE UKs economy is sick and the
cheap fix of quantitative easing (QE)
is being touted as the cure. The broad
consensus was that yesterdays
Markit/Cips services purchasing managers
index (PMI) was going to come in at around
54.0. It instead dropped off a small cliff,
declining from 55.4 in July to 51.1 in
August. This is the biggest single month
drop since foot-and-mouth disease ravaged
the country in 2001.
A BAD PORTENT
The PMI results reveal to the markets that
the UKs purchasing managers, making up
around three quarters of UK businesses, are
significantly more bearish than they were
last month about their output, new orders,
export orders, stock levels, delivery times,
output and input prices and employment.
Because its a leading indicator and services
dominate the UKs economy, PMI is a
decent indicator of where GDP is heading.
According to Jonathan Loynes, chief
European economist at Capital Economics:
A composite measure of the main activity
indices of the Cips reports on manufactur-
ing, construction and services is now consis-
tent on the basis of the past relationship
with quarterly contractions in GDP of about
0.2 per cent. As such, traders should keep
an eye on Wednesdays NIESR estimate.
QE is being posited by some as a likely
consequence. Although traders will closely
watch Thursdays monetary policy commit-
tee (MPC) policy decision, there is little
chance that Adam Posen the only mem-
ber currently voting for asset purchases
will be joined by many of his colleagues.
David Jones of IG Markets doesnt expect QE
from the UK at the moment, but thinks it
Weak services PMI
results suggest that
poor GDP figures
could be on the cards,
writes Philip Salter
UK bulls are looking lonely Picture: GETTY
UKs economic outlook
is increasingly weak
A
T THE beginning of last week, investors appeared
to have regained their risk appetite. Although
trading volumes were light, equities continued
their recovery following the sharp sell-off in early
August. As we approached month-end, buyers appeared
confident that a near-term bottom for the major stock
indices was in place. Yet most economic data releases
continued to indicate that a slowdown was in progress,
and analysts were still busy downgrading their outlooks
for global growth.
But investors werent put off by bad news; in fact,
quite the contrary. Fed Chairman Ben Bernanke teased
market participants by announcing that the September
FOMC meeting would be extended over two days. This
was interpreted as meaning that additional quantitative
easing was on the cards, a view reinforced after the min-
utes of the August FOMC meeting were released. These
revealed that some members believed that further stim-
ulus was already overdue, and this news had investors
heading back into stocks.
Friday saw the release of a truly awful US non-farm
payroll number, and this time the sell-off in equities was
not only pronounced but prolonged. Bad jobs data should
bolster the case for further Fed intervention more than
anything else, but this time no one was rushing to buy.
Technical analysts are watching the price action on
the S&P 500 very closely. Last weeks rally came to an
abrupt end as the index tested resistance at 1,228 on an
intra-day basis. This marks the 50 per cent retracement
of the most recent decline from May to August this year.
Since then, prices have fallen sharply, and Fridays slump
saw the S&P test significant support at 1,172 - the 50
per cent retracement of the multi-year rally from March
2003 to October 2007. This level was breached yester-
day on electronic trading of US stock index futures. But
the main US exchanges were closed for the Labor Day
holiday. Consequently, stock market bulls are hoping that
investors will pile back in on the long side, just as they did
in August. But sentiment is turning negative, and a grow-
ing number of investors are losing confidence in policy-
makers and central bankers. Many doubt that more
quantitative easing will do anything to solve the chronic
issues at the heart of this financial crisis.
HOPES OF QE3
CANT DISPEL
THE US GLOOM
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
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ANALYSIS l Services PMI edges back down towards 50
Aug2011 Jan2006 Jan2007 Jan2008 Jan2009 Jan2010 Jan2011
70
60
50
40
30
20
10
0
Source: Markit/Cips
will be dictated by QE policy in the US not-
ing that the 20 September Fed interest rate
decision will be key.
TO QE, OR NOT TO QE?
Michael Hewson of CMC Markets says:
Policymakers seem to think QE is a silver
bullet for all the economys ills. Hewson
says it isnt: It will devalue sterling and
drive up imported inflation, giving people
less money to spend, not more. Simon
Smith, chief economist at FxPro, thinks the
Bank of England (BoE) has reservations
about its effectiveness. He says: Even
though the Fed has done QE2, it still only
owns 17 per cent of marketable US securi-
ties, whereas the BoE owns 20 per cent of
UK government paper outstanding. He
expects the BoE to wait to see the results of
the Feds twist-style operation selling
short-dated US Treasuries, while buying
long-dated US Treasuries as this should
pull UK gilts lower. Smith also notes that
flattening the yield curve could further
impact on banks profitability on borrow-
ing short and lending long not really
delivering the unclogging of the financial
system that it is intended to achieve. Yet
Mervyn King has repeatedly argued that
money and lending would have contracted
more sharply in the absence of his first dose
of monetary stimulus. Traders should note
he is still a believer and will be preaching to
the committee for another QE miracle.
25
Wealth Management| Contracts for Difference
Wealth Management | Contracts for Difference
THE TIPSTER
BARCLAYS BANK
WILL BE KEPT IN
PREMIER LEAGUE
unclear as to what the cost to
the banks could end up being.
IG Markets quotes 153.5p-
153.6p.
Supermarket WM Morrison
is updating the markets this
Thursday with its 2011 interim
results. The main focus will be
to see if it has gained any mar-
ket share over rivals in the
increasingly competitive super-
market sector. Speculation has
also been surrounding the
group with talk of a takeover
bid for UK frozen food chain,
Iceland. Capital CFDs quotes
288.5p-289.2p.
To say the retail sector has
been in the limelight of late
would be an understatement.
With profit warnings being
thrown out left, right and cen-
tre earlier this year, the trading
statement of Dixons on
Wednesday should hopefully
shine some light on the future
of the electrical retailer.
Bargain hunters may be looking
for a reason to snap up the
share. Capital Spreads quotes
11.0p-11.3p.
US traders are coming back
to their trading desks today
with some very bearish techni-
cal signals on their Dowcharts.
The Dow is currently trading
down over 140 points from
Fridays closing level, a consid-
erable gap down on the charts.
At 11,080, its below the 50 per
cent Fibonacci retracement of
the August move from 10,455
to 11,715, which is a bearish
sign. Spread Co quotes
11,080.2-11,081.0.
Philip Salter
T
HE threat of Federal
Housing Finance Agency
(FHFA) lawsuits from the
US is certainly hammering
banks and with Barclays being
very much on the Agencys hit
list, the stock has been tumbling
in London over recent days.
However, heavyweight investors
have shown conviction in the
bank in the past, so is there any
reason to believe that they wont
stick with the bank? It is also
F
OLLOWING the meteoric rise in
gold prices, the yellow metal is
now trading at a premium to
platinum, reversing the usual
pattern. Spot gold was at $1,900.30/oz
yesterday, with platinum at $1,885/oz.
Because of this, many are suggest-
ing that platinum is underpriced. But
a comparison with gold may not be
the best method of valuation. Due to
its more industrial purposes, plat-
inum doesnt hold quite the same
allure as gold does for being a pure
safe haven investment, says Angus
Campbell, head of sales for Capital
Spreads. Investors feel that because
gold has no mass market industrial
use, it is the ultimate safe haven,
despite the fact that it doesnt yield
anything and costs money to store.
And it is not just the safe haven
attraction of gold that is driving the
increasing spread between gold and
platinum. John Wong, portfolio man-
ager of Golden Prospect Precious
Metals comments: I am not surprised
that gold is more expensive relative to
platinum at present as the demand
and supply dynamics on both the met-
als are not the same. Platinum is driv-
en by the auto market, which tends to
move in line with the economy
which at present is pointing down
whereas gold is driven off its safe
haven status, which looks increasingly
attractive at present.
While gold and platinum are both
used in jewellery, that is where the
similarities in their application ends.
Around 20 per cent of platinum is
used in jewellery, but its largest use,
along with palladium, is in catalytic
converters for cars. As such, a position
on platinum can be seen as a position
on the automobile industry and in
turn a view on world economic
growth. On the supply side, the car
manufacturing industry in Japan has
resumed production more rapidly
than expected after the earthquake
and tsunami earlier in the year, but US
auto demand has been severely
knocked by the dire state of the econo-
my. US non-farm payroll figures on
Friday showed that the US had created
zero net new jobs in August. With so
many Americans out of work, there is
little light at the end of the tunnel for
US automobile demand.
Platinum may look undervalued
when stood alongside gold, but as QE3
looms large on the horizon, it seems
that gold is going to continue to be the
pick of the two.
Why platinum and
gold are two very
different beasts
Comparing valuations of the two metals
could be a mistake, writes Craig Drake
Platinum has been in golds shadow Picture: GETTY
ANALYSIS l 12 month gold versus platinum prices
$
3Sep2010 27Dec 2010 19Apr 2011 2Sep2011
GOLD
PLATINUM
1,950
1,900
1,850
1,800
1,750
1,700
1,650
1,550
1,600
1,500
1,450
LON GD ONCE FIX AM...........1896.50 42.50
SILVER LDN FIX AM ..................42.93 0.04
MAPLE LEAF 1 OZ ....................45.70 -0.26
LON PLATINUM AM................1881.00 23.00
LON PALLADIUM AM...............776.00 -10.00
ALUMINIUM CASH .................2399.00 -1.50
COPPER CASH ......................9050.00 -50.50
LEAD CASH...........................2525.00 -33.00
NICKEL CASH......................21565.00 -205.00
TIN CASH.............................24050.00 75.00
ZINC CASH ............................2189.00 -18.50
BRENT SPOT INDEX................113.17 -1.37
SOYA .....................................1436.00 11.25
COCOA..................................3092.00 32.00
COFFEE...................................289.20 1.50
KRUG.....................................1963.90 22.40
WHEAT ....................................170.00 -3.08
AIR LIQUIDE........................................86.53 -2.37 100.65 80.90
ALLIANZ..............................................63.85 -4.15 108.85 63.28
ALSTOM ..............................................28.92 -1.89 45.32 28.36
ANHEUS-BUSCH INBEV ....................36.43 -1.94 46.33 33.85
ARCELORMITTAL...............................13.08 -1.05 28.55 13.00
AXA........................................................9.78 -0.75 16.16 9.27
BANCO SANTANDER...........................5.77 -0.36 9.80 5.54
BASF SE..............................................44.46 -2.61 70.22 42.09
BAYER.................................................40.83 -1.98 59.44 40.45
BBVA......................................................5.69 -0.35 10.21 5.52
BMW ....................................................50.87 -3.35 73.85 42.64
BNP PARIBAS.....................................31.30 -2.12 59.93 30.75
CARREFOUR ......................................16.75 -0.91 36.06 16.68
CREDIT AGRICOLE..............................5.85 -0.34 12.92 5.63
CRH PLC..............................................11.12 -0.65 17.40 10.87
DAIMLER.............................................33.15 -2.32 59.09 32.95
DANONE..............................................45.95 -1.78 53.16 42.08
DEU.BOERSE OFFRE ........................37.75 -1.76 55.75 37.03
DEUTSCHE BANK..............................23.72 -2.31 48.70 23.43
DEUTSCHE TELEKOM.........................8.33 -0.40 11.38 8.26
E.ON.....................................................13.57 -0.76 25.54 13.19
ENEL......................................................3.15 -0.14 4.86 3.13
ENI .......................................................13.17 -0.60 18.66 11.83
FRANCE TELECOM............................12.20 -0.38 17.45 11.97
GDF SUEZ ...........................................20.05 -0.78 30.05 18.32
GENERALI ASS...................................11.55 -0.43 17.05 10.34
IBERDROLA..........................................4.71 -0.24 6.50 4.66
ING GROEP CVA...................................5.18 -0.48 9.50 5.09
INTESA SANPAOLO.............................1.03 -0.08 2.53 1.01
KON.PHILIPS ELECTR.......................13.30 -0.60 25.45 12.85
L'OREAL..............................................72.52 -1.85 91.24 71.00
LVMH..................................................109.00 -5.15 132.65 95.17
MUNICH RE.........................................83.62 -4.18 126.00 82.97
NOKIA....................................................4.22 -0.22 8.49 3.33
REPSOL YPF.......................................18.59 -1.21 24.90 17.31
RWE.....................................................23.13 -1.25 55.88 23.09
SAINT-GOBAIN...................................31.32 -1.65 47.64 29.96
SANOFI ................................................48.08 -1.67 56.82 42.85
SAP......................................................35.44 -1.56 46.15 32.88
SCHNEIDER ELECTRIC.....................41.10 -2.90 61.83 40.10
SIEMENS .............................................65.96 -3.82 99.39 65.30
SOCIETE GENERALE.........................20.25 -1.92 52.70 20.09
TELECOM ITALIA..................................0.79 -0.03 1.16 0.77
TELEFONICA ......................................13.50 -0.61 19.69 13.01
TOTAL..................................................32.01 -1.43 44.55 30.34
UNIBAIL-RODAMCO SE...................142.35 -4.60 162.95 124.50
UNICREDIT............................................0.83 -0.07 2.05 0.83
UNILEVER CVA...................................22.97 -0.67 24.08 20.82
VINCI ....................................................33.33 -1.64 45.48 32.05
VIVENDI ...............................................16.10 -0.65 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5102.58 -189.45 -3.58
FTSE 250 INDEX. . . . . . . . 10084.11 -296.91 -2.86
FTSE UK ALL SHARE . . . . 2655.24 -94.40 -3.43
FTSE AIMALL SH . . . . . . . . 761.79 -8.53 -1.11
DOWJONES INDUS 30 . . 11240.26 -253.31 -2.20
S&P 500. . . . . . . . . . . . . . . . 1173.97 -30.45 -2.53
NASDAQ COMPOSITE . . . 2480.33 -65.71 -2.58
FTSEUROFIRST 300 . . . . . . 910.06 -38.56 -4.06
NIKKEI 225 AVERAGE. . . . 8784.46 -166.28 -1.86
DAX 30 PERFORMANCE. . 5246.18 -292.15 -5.28
CAC 40 . . . . . . . . . . . . . . . . 2999.54 -148.99 -4.73
SHANGHAI SE INDEX . . . . 2478.74 -49.54 -1.96
HANG SENG. . . . . . . . . . . 19616.40 -596.51 -2.95
S&P/ASX 20 INDEX . . . . . . 2482.50 -63.50 -2.49
ASX ALL ORDINARIES . . . 4224.20 -97.30 -2.25
BOVESPA SAO PAOLO . . 55112.92-1418.70 -2.51
ISEQ OVERALL INDEX . . . 2434.08 -87.21 -3.46
STI . . . . . . . . . . . . . . . . . . . . 2773.17 -69.92 -2.46
IGBM. . . . . . . . . . . . . . . . . . . 815.56 -39.67 -4.64
SWISS MARKET INDEX. . . 5142.99 -216.68 -4.04
Price Chg %chg
3M........................................................79.35 -2.26 98.19 76.50
ABBOTT LABS ...................................51.04 -0.90 54.24 45.07
ALCOA ................................................12.04 -0.45 18.47 10.32
ALTRIA GROUP..................................26.72 -0.37 28.13 22.45
AMAZON.COM..................................210.00 -2.54 227.45 126.17
AMERICAN EXPRESS........................48.51 -0.99 53.80 37.33
AMGEN INC.........................................54.10 -0.92 61.53 47.66
APPLE...............................................374.05 -6.98 404.50 246.28
AT&T....................................................28.05 -0.22 31.94 27.06
BANK OF AMERICA.............................7.25 -0.66 15.31 6.01
BERKSHIRE HATAW B.......................69.37 -2.00 87.65 66.51
BOEING CO.........................................64.03 -2.02 80.65 56.01
BRISTOL MYERS SQUI ......................29.01 -0.68 30.00 20.05
CATERPILLAR....................................85.38 -3.17 116.55 66.35
CHEVRON...........................................96.41 -2.11 109.94 75.24
CISCO SYSTEMS................................15.41 -0.41 24.60 13.30
CITIGROUP.........................................28.40 -1.60 51.50 25.40
COCA-COLA.......................................69.74 -0.71 71.10 56.27
COLGATE PALMOLIVE......................88.52 -1.38 90.99 73.62
CONOCOPHILLIPS.............................66.44 -1.53 81.80 53.29
CVS/CAREMARK................................35.43 -0.35 39.50 26.86
DU PONT(EI) DE NMR........................46.76 -1.06 57.00 41.12
EXXON MOBIL....................................72.14 -1.35 88.23 59.72
GENERAL ELECTRIC.........................15.76 -0.44 21.65 14.60
GOOGLE A........................................524.84 -7.66 642.96 452.50
HEWLETT PACKARD.........................24.34 -1.33 49.39 22.75
HOME DEPOT.....................................32.18 -0.75 39.38 28.06
IBM.....................................................166.98 -3.35 185.63 124.52
INTEL CORP .......................................19.64 -0.35 26.78 17.75
J.P.MORGAN CHASE.........................34.63 -1.67 48.36 32.31
JOHNSON & JOHNSON.....................64.07 -1.26 68.05 57.44
KRAFT FOODS A................................34.27 -0.54 36.30 24.30
MC DONALD'S CORP ........................89.09 -0.98 91.22 72.14
MERCK AND CO. NEW......................32.37 -0.53 37.68 29.47
MICROSOFT........................................25.80 -0.41 29.46 23.54
OCCID. PETROLEUM.........................83.41 -2.49 117.89 73.86
ORACLE CORP...................................26.97 -0.88 36.50 22.10
PEPSICO.............................................63.30 -0.85 71.89 60.10
PFIZER ................................................18.46 -0.45 21.45 16.07
PHILIP MORRIS INTL .........................68.24 -1.06 72.74 51.88
PROCTER AND GAMBLE ..................62.55 -0.71 67.72 56.57
QUALCOMM INC ................................49.68 -1.38 59.84 38.92
SCHLUMBERGER ..............................74.42 -2.08 95.64 53.90
TRAVELERS CIES..............................48.87 -1.34 64.17 46.62
UNITED TECHNOLOGIE ....................71.04 -2.01 91.83 65.68
UNITEDHEALTH GROUP...................45.73 -1.45 53.50 31.84
VERIZON COMMS ..............................35.56 -0.32 38.95 29.65
WAL-MART STORES..........................52.03 -0.62 57.90 48.31
WALT DISNEY CO ..............................32.46 -0.92 44.34 29.60
WELLS FARGO & CO.........................24.20 -1.03 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.834 0.00
LIBOR Euro - 12 months ................2.044 0.00
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................0.807 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.300 -0.06
European repo rate.........................0.790 0.00
Euro Euribor ....................................1.091 0.00
The vix index ...................................33.92 1.08
The baItic dry index ........................1.740 0.05
Markit iBoxx...................................229.85 0.63
Markit iTraxx..................................164.19 8.99
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4101 0.0104
C/ 0.8756 0.0004
C/ 108.44 0.4420
/C 1.1422 0.0014
/$ 1.6104 0.0115
/ 123.84 0.7260
FTSE 100
5102.58
189.45
FTSE 250
10084.11
296.91
FTSE ALLSHARE
2655.24
94.40
DOW
11240.26
253.31
NASDAQ
2480.33
65.71
S&P 500
1173.97
30.45
RPC Group . . . . . . . .314.7 -11.8 384.8 215.4
Smiths Group . . . . . .935.0 -39.5 1429.0 907.5
Brown (N.) Group . . .263.7 -4.3 311.2 226.9
Carpetright . . . . . . . . .532.0 -6.0 835.5 507.5
Debenhams . . . . . . . . .52.3 -2.1 77.4 51.7
Dignity . . . . . . . . . . . .769.0 9.5 833.0 633.0
Dixons RetaiI . . . . . . .11.0 -1.0 28.5 10.8
DuneImGroup . . . . . .415.6 -14.4 550.0 378.4
HaIfords Group . . . . .292.1 -8.2 504.5 284.8
Home RetaiI Group . .115.0 -9.3 235.0 115.0
Inchcape . . . . . . . . . .296.6 -14.2 425.4 280.7
JD Sports Fashion . .825.0 -7.5 1030.0 726.0
Kesa EIectricaIs . . . .101.3 -4.6 174.0 100.0
Kingfisher . . . . . . . . .227.0 -9.0 287.1 211.1
Marks & Spencer G . .302.4 -12.5 427.5 300.8
Mothercare . . . . . . . .343.7 -15.0 627.5 340.3
Next . . . . . . . . . . . . .2304.0 -49.0 2426.0 1868.0
Sports Direct Int . . . .210.4 -1.6 266.2 113.5
WH Smith . . . . . . . . . .480.2 -12.8 523.0 421.0
Smith & Nephew . . . .593.5 -32.5 742.0 521.0
Synergy HeaIth . . . . .872.0 -24.0 981.0 690.0
Barratt DeveIopme . . .78.5 -3.8 119.0 67.5
BeIIway . . . . . . . . . . . .582.0 -13.5 753.5 511.0
YuIe Catto & Co . . . . .165.7 -6.5 253.0 146.1
BaIfour Beatty . . . . . .237.2 -10.2 357.3 228.6
KeIIer Group . . . . . . .359.0 -10.8 698.5 346.0
Kier Group . . . . . . . .1148.0 -77.0 1418.0 1030.0
Drax Group . . . . . . . .517.0 -11.0 536.5 353.6
Scottish & Southe . .1248.0 -28.0 1423.0 1108.0
Domino Printing S . .540.5 -16.5 705.0 469.0
HaIma . . . . . . . . . . . . .345.8 -7.9 429.6 282.5
Laird . . . . . . . . . . . . . .145.2 -5.6 207.0 127.9
Morgan CrucibIe C . .259.6 -9.0 357.1 203.9
Renishaw . . . . . . . . .1348.0 -37.0 1886.0 865.0
Spectris . . . . . . . . . .1419.0 -45.0 1679.0 942.0
Aberforth SmaIIer . . .555.5 -14.5 714.0 526.0
AIIiance Trust . . . . . .329.0 -9.8 392.7 322.5
Bankers Inv Trust . . .357.9 -11.2 428.0 355.6
BH GIobaI Ltd. GB .1163.0 13.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .11.6 0.2 11.6 10.4
BH Macro Ltd. EUR . . .19.2 0.1 19.3 15.8
BH Macro Ltd. GBP 1990.0 19.0 1999.0 1630.0
BH Macro Ltd. USD . . .19.2 0.1 19.3 15.8
BIackRock WorId M .670.0 -20.0 815.5 589.0
BIueCrest AIIBIue . . .168.0 -2.0 176.2 162.4
British Assets Tr . . . .115.4 -2.9 140.5 113.0
British Empire Se . . .465.0 -12.1 533.0 445.5
CaIedonia Investm .1565.0 -15.0 1928.0 1545.0
City of London In . . .264.0 -7.0 306.9 257.0
Dexion AbsoIute L . .140.1 -1.4 151.0 135.2
Edinburgh Dragon . .220.0 -5.0 262.1 213.0
Edinburgh Inv Tru . . .434.5 -12.5 492.2 414.9
EIectra Private E . . .1366.0 -31.0 1755.0 1295.0
F&C Inv Trust . . . . . .272.6 -9.1 327.9 268.6
FideIity China Sp . . . . .82.8 -1.7 128.7 80.0
FideIity European . . .994.5 -38.5 1287.0 985.0
FideIity SpeciaI . . . . .465.5 -11.5 595.0 462.6
HeraId Inv Trust . . . . .440.0 -13.6 545.5 398.0
HICL Infrastructu . . . .115.4 -0.2 121.3 112.0
Impax Environment . .98.0 -2.0 130.5 98.0
JPMorgan American .742.0 -23.0 916.0 715.5
JPMorgan Asian In . .200.5 -6.0 250.8 198.5
JPMorgan Emerging .519.0 -14.0 639.0 499.3
JPMorgan European .748.0 -18.0 983.5 683.5
JPMorgan Indian I . . .372.0 -7.0 502.0 354.8
JPMorgan Russian .522.0 -3.0 755.0 510.0
Law Debenture Cor . .325.5 -12.0 385.0 306.9
MercantiIe Inv Tr . . . .903.0 -21.0 1137.0 892.5
Merchants Trust . . . .352.5 -14.5 431.8 348.7
Monks Inv Trust . . . .323.3 -7.2 367.9 309.4
Murray Income Tru . .586.5 -18.5 673.0 577.0
Murray Internatio . . .879.0 -18.0 991.5 845.5
PerpetuaI Income . . .242.0 -8.0 276.0 225.9
PoIar Cap TechnoI . .310.9 -6.1 391.2 295.1
RIT CapitaI Partn . . .1199.0 -23.0 1334.0 1110.0
Scottish Inv Trus . . . .431.4 -10.1 524.0 423.5
Scottish Mortgage . .647.5 -24.5 781.0 600.5
SVG CapitaI . . . . . . . .252.0 -9.5 279.8 153.8
TempIe Bar Inv Tr . . .827.0 -17.5 952.0 782.0
TempIeton Emergin .566.0 -21.0 689.5 554.0
TR Property Inv T . . .167.3 -4.1 206.1 147.8
TR Property Inv T . . . .76.3 -0.6 94.0 66.0
Witan Inv Trust . . . . .432.3 -13.6 533.0 428.0
3i Group . . . . . . . . . . .197.8 -6.1 340.0 196.2
3i Infrastructure . . . .120.7 -0.8 125.2 112.9
Aberdeen Asset Ma .195.7 -4.6 240.0 136.9
Ashmore Group . . . .404.4 -6.7 414.5 301.4
Brewin DoIphin Ho . .129.3 -1.2 185.4 117.0
CameIIia . . . . . . . . . .9282.5 7.510950.0 8153.0
CharIes TayIor Co . . .134.5 1.5 198.3 122.0
City of London Gr . . . .76.3 0.0 93.6 76.3
City of London In . . .375.0 -5.0 461.5 278.5
CIose Brothers Gr . . .695.0 -22.5 888.5 656.5
CoIIins Stewart H . . . .67.8 -1.3 90.8 67.0
EvoIution Group . . . . .91.0 -2.0 93.0 62.3
F&C Asset Managem .65.9 -2.2 92.9 58.7
Hargreaves Lansdo .478.5 -21.0 646.5 386.0
HeIphire Group . . . . . . .2.2 -0.2 39.0 2.2
Henderson Group . . .122.9 -6.3 173.1 119.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .462.9 -3.7 570.5 391.3
IG Group HoIdings . .438.2 -5.7 553.0 393.6
Intermediate Capi . . .233.9 -8.8 360.3 204.8
InternationaI Per . . . .237.7 -29.9 388.8 228.0
InternationaI Pub . . . .115.0 0.0 118.3 108.6
Investec . . . . . . . . . . .419.6 -5.8 538.0 378.7
IP Group . . . . . . . . . . . .46.8 -0.8 54.5 27.9
Jupiter Fund Mana . .197.4 -2.8 337.3 184.9
Liontrust Asset M . . . .77.0 -3.0 95.3 72.0
LMS CapitaI . . . . . . . . .57.5 0.0 64.8 43.3
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .875.5 -35.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .14.3 -0.8 19.8 10.5
Man Group . . . . . . . . .211.8 -7.2 311.0 178.0
Paragon Group Of . .149.2 -2.5 206.1 134.6
Provident Financi . .1083.0 -30.0 1124.0 728.5
Rathbone Brothers .1035.0 -16.0 1257.0 828.0
Record . . . . . . . . . . . . .29.5 0.0 52.0 20.3
RSM Tenon Group . . .27.0 -0.5 66.3 21.3
Schroders . . . . . . . .1445.0 -36.0 1922.0 1373.0
Schroders (Non-Vo .1146.0 -27.0 1554.0 1123.0
TuIIett Prebon . . . . . .360.0 -5.5 428.6 329.8
WaIker Crips Grou . . .49.0 0.0 51.5 45.0
BT Group . . . . . . . . . .163.4 -3.7 204.1 137.6
CabIe & WireIess . . . .36.8 -0.6 61.1 31.3
CabIe & WireIess . . . .32.1 -2.1 78.4 32.0
COLT Group SA . . . .102.9 -7.6 156.2 102.9
TaIkTaIk TeIecom . . .127.0 0.7 168.3 119.8
TeIecomPIus . . . . . . .690.0 -3.5 700.5 364.5
Booker Group . . . . . . .68.8 -0.7 77.9 44.5
Greggs . . . . . . . . . . . .489.3 -5.7 550.5 429.1
Morrison (Wm) Sup .285.1 -6.9 308.3 262.7
Ocado Group . . . . . . .110.0 -3.5 285.0 110.0
Sainsbury (J) . . . . . . .287.1 -10.3 395.0 280.4
Tesco . . . . . . . . . . . . .361.3 -13.8 440.7 360.1
Associated Britis . .1038.0 -28.0 1182.0 940.0
Cranswick . . . . . . . . .634.0 -5.0 896.0 606.0
Dairy Crest Group . . .350.6 -13.3 424.9 334.1
Devro . . . . . . . . . . . . .254.3 3.2 296.9 218.0
Premier Foods . . . . . . .12.8 -0.3 35.1 12.6
Tate & LyIe . . . . . . . . .570.0 -18.0 656.0 434.1
UniIever . . . . . . . . . .1993.0 -55.0 2081.0 1742.0
Mondi . . . . . . . . . . . . .518.5 -19.0 664.0 468.8
Centrica . . . . . . . . . . .286.3 -9.2 346.1 286.3
InternationaI Pow . . .322.2 -4.6 448.6 279.4
NationaI Grid . . . . . . .609.0 -10.0 632.5 530.0
Northumbrian Wate .460.1 -1.1 469.5 295.5
Pennon Group . . . . . .638.0 -4.0 737.5 579.5
Severn Trent . . . . . .1420.0 -21.0 1517.0 1306.0
United UtiIities . . . . .583.5 -8.5 632.0 543.5
Cookson Group . . . . .464.1 -30.9 724.5 449.1
DS Smith . . . . . . . . . .197.0 -3.0 266.2 145.8
Rexam . . . . . . . . . . . .339.1 -11.7 400.0 301.5
GIencore Internat . . .376.5 -13.9 531.1 348.0
BAE Systems . . . . . .257.6 -8.9 369.9 248.1
Chemring Group . . . .532.5 -5.0 736.5 485.0
Cobham . . . . . . . . . . .182.4 -5.6 245.6 173.4
Meggitt . . . . . . . . . . . .329.0 -12.2 397.6 272.1
QinetiQ Group . . . . . .118.9 -4.2 136.3 96.7
RoIIs-Royce Group . .607.5 -23.5 665.0 557.5
Senior . . . . . . . . . . . . .146.7 -5.3 190.6 120.0
UItra EIectronics . . .1420.0 -48.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .181.2 -10.5 245.0 147.7
BarcIays . . . . . . . . . . .154.2 -11.1 333.6 145.5
HSBC HoIdings . . . . .504.5 -20.0 730.9 503.7
LIoyds Banking Gr . . .30.7 -2.5 77.6 27.6
RoyaI Bank of Sco . . .21.8 -3.1 50.2 19.7
Standard Chartere .1299.5 -74.0 1950.0 1295.5
AG Barr . . . . . . . . . .1105.0 -36.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .306.9 -9.4 503.5 289.9
Diageo . . . . . . . . . . .1210.0 -30.0 1307.0 1070.0
SABMiIIer . . . . . . . . .2157.0 -58.0 2340.0 1925.5
AZ EIectronic Mat . . .229.0 -0.5 338.1 210.0
Croda Internation . .1679.0 -73.0 2081.0 1342.0
EIementis . . . . . . . . . .145.4 -4.9 187.4 86.5
Johnson Matthey . .1566.0 -89.0 2119.0 1549.0
Victrex . . . . . . . . . . .1225.0 -38.0 1590.0 1122.0
Price Chg High Low
BerkeIey Group Ho .1236.0 57.0 1299.0 789.5
Bovis Homes Group .400.4 0.3 464.7 326.5
Persimmon . . . . . . . .434.3 -11.1 502.5 336.5
Reckitt Benckiser . .3183.0-113.0 3648.0 3015.0
Redrow . . . . . . . . . . . .115.6 -2.4 139.0 98.4
TayIor Wimpey . . . . . . .31.4 -1.6 43.3 22.3
Bodycote . . . . . . . . . .272.6 -17.8 397.7 237.7
Charter Internati . . . .782.5 -3.0 853.5 538.5
Fenner . . . . . . . . . . . .333.8 -17.9 422.5 210.7
IMI . . . . . . . . . . . . . . . .805.0 -48.0 1119.0 718.0
MeIrose . . . . . . . . . . .281.1 -15.5 365.4 250.1
Northgate . . . . . . . . . .267.2 -0.3 346.7 190.0
Rotork . . . . . . . . . . .1660.0 -42.0 1895.0 1501.0
Spirax-Sarco Engi . .1751.0 -39.0 2063.0 1635.0
Weir Group . . . . . . .1767.0 -83.0 2218.0 1283.0
Ferrexpo . . . . . . . . . . .350.0 -25.0 499.0 292.4
TaIvivaara Mining . . .312.2 -24.8 622.0 297.2
BBAAviation . . . . . . .160.7 -5.0 240.8 156.0
Stobart Group Ltd . . .133.0 -1.0 163.6 124.1
AdmiraI Group . . . . .1324.0 -38.0 1754.0 1279.0
AmIin . . . . . . . . . . . . .298.9 -9.2 427.0 295.0
Huntsworth . . . . . . . . .58.5 -1.0 86.0 58.2
Informa . . . . . . . . . . . .339.9 -19.5 461.1 325.1
ITE Group . . . . . . . . . .178.2 -6.6 258.2 152.2
ITV . . . . . . . . . . . . . . . . .54.8 -2.5 93.5 54.2
Johnston Press . . . . . . .5.0 -0.1 16.3 4.4
MecomGroup . . . . . .157.0 -7.5 310.0 156.5
Moneysupermarket. .106.8 -4.6 120.4 71.5
Pearson . . . . . . . . . .1064.0 -24.0 1207.0 926.0
PerformGroup . . . . .173.1 8.1 234.5 150.0
Reed EIsevier . . . . . .489.1 -13.4 590.5 461.3
Rightmove . . . . . . . .1251.0 -26.0 1307.0 691.5
STV Group . . . . . . . . .109.0 -3.0 168.0 89.8
Tarsus Group . . . . . .141.5 1.5 165.0 112.5
Trinity Mirror . . . . . . . .40.5 -2.5 124.0 37.5
United Business M . .438.8 -24.2 725.0 428.4
UTV Media . . . . . . . . .123.5 -6.5 151.0 101.0
WiImington Group . . .87.5 -2.8 183.0 87.5
WPP . . . . . . . . . . . . . .594.5 -23.5 846.5 578.5
YeII Group . . . . . . . . . . .4.7 0.0 16.8 4.1
African Barrick G . . .574.5 2.0 638.0 393.5
AngIo American . . .2368.5 -89.5 3437.0 2234.0
AngIo Pacific Gro . . .287.0 -4.0 369.3 253.5
Antofagasta . . . . . . .1233.0 -67.0 1634.0 1076.0
Aquarius PIatinum . .224.7 -13.2 419.0 216.9
BHP BiIIiton . . . . . . .1954.0 -78.0 2631.5 1846.0
BeazIey . . . . . . . . . . . .113.3 -1.0 139.2 109.6
CatIin Group Ltd. . . .345.6 -17.7 421.4 325.0
Hiscox Ltd. . . . . . . . . .343.4 -8.1 424.7 340.5
Jardine LIoyd Tho . . .625.5 -22.0 709.0 561.0
Lancashire HoIdin . . .659.5 -9.5 700.0 529.0
RSA Insurance Gro . .109.3 -3.4 143.5 109.3
Aviva . . . . . . . . . . . . . .307.1 -18.0 477.9 305.0
LegaI & GeneraI G . . . .94.6 -6.4 123.8 91.3
OId MutuaI . . . . . . . . .112.6 -3.6 145.2 103.2
Phoenix Group HoI . .529.0 4.0 758.0 458.0
PrudentiaI . . . . . . . . .564.5 -32.5 777.0 562.0
ResoIution Ltd. . . . . .254.1 -11.4 316.1 211.3
St James's PIace . . . .341.2 -13.0 376.0 236.2
Standard Life . . . . . . .190.4 -7.6 244.7 172.0
4Imprint Group . . . . .225.0 -5.0 295.0 195.0
Aegis Group . . . . . . .125.5 -5.2 163.5 114.5
BIoomsbury PubIis . .100.0 -0.5 138.0 98.0
British Sky Broad . . .641.0 -16.0 850.0 618.5
Centaur Media . . . . . . .38.8 -0.8 73.0 37.0
Chime Communicati .180.0 -8.0 298.5 173.0
Creston . . . . . . . . . . . .87.0 -2.0 121.0 78.5
DaiIy MaiI and Ge . . .377.3 -12.4 594.5 363.3
Euromoney Institu . .567.5 4.0 736.0 555.5
Future . . . . . . . . . . . . . .12.0 0.5 30.0 11.0
Haynes PubIishing . .235.0 0.0 262.5 202.5
Centamin Egypt Lt . .105.3 -0.3 197.1 89.7
Eurasian NaturaI . . .625.0 -33.5 1125.0 585.5
FresniIIo . . . . . . . . . .1986.0 -47.0 2100.0 1100.0
GemDiamonds Ltd. .210.0 -8.3 306.0 179.8
HochschiId Mining . .503.0 -16.0 680.0 360.0
Kazakhmys . . . . . . . .989.5 -50.5 1671.0 918.0
Kenmare Resources . .40.1 -3.8 59.9 17.2
Lonmin . . . . . . . . . . .1207.0 -48.0 1983.0 1103.0
New WorId Resourc .546.5 -30.0 1060.0 514.5
PetropavIovsk . . . . . .842.0 -11.0 1252.0 676.0
RandgoId Resource 6735.0 65.0 6870.0 4425.0
Rio Tinto . . . . . . . . .3488.5-185.5 4712.0 3387.5
Vedanta Resources 1317.0 -54.0 2559.0 1225.0
Xstrata . . . . . . . . . . . .957.4 -61.1 1550.0 933.4
Inmarsat . . . . . . . . . . .455.2 -25.8 724.5 389.7
Vodafone Group . . . .157.5 -4.9 181.9 155.1
Genesis Emerging . .458.5 -15.1 568.0 444.5
Afren . . . . . . . . . . . . . . .93.9 -5.2 171.2 92.5
BG Group . . . . . . . . .1234.0 -67.0 1564.5 1065.5
BP . . . . . . . . . . . . . . . .363.2 -11.2 509.0 363.2
Cairn Energy . . . . . . .303.1 -15.9 469.7 281.4
EnQuest . . . . . . . . . . . .96.6 -11.2 158.5 96.0
Essar Energy . . . . . .235.1 -11.1 589.5 233.0
ExiIIon Energy . . . . . .241.2 -15.9 469.7 173.0
Heritage OiI . . . . . . . .211.8 -1.9 486.0 190.0
JKX OiI & Gas . . . . . .160.0 -8.9 335.1 156.0
Premier OiI . . . . . . . . .314.7 -14.3 535.0 313.9
RoyaI Dutch SheII . .1948.0 -88.5 2326.5 1803.0
RoyaI Dutch SheII . .1959.5 -89.0 2336.0 1749.0
SaIamander Energy .204.8 -10.1 317.6 203.9
Soco Internationa . . .310.2 -17.8 467.9 279.8
TuIIow OiI . . . . . . . . .1075.0 -37.0 1493.0 945.5
Amec . . . . . . . . . . . . .861.0 -25.5 1251.0 834.0
Hunting . . . . . . . . . . .639.5 -22.0 817.0 592.5
LampreII . . . . . . . . . . .281.1 -15.8 395.2 254.5
Petrofac Ltd. . . . . . .1279.0 -30.0 1685.0 1110.0
Wood Group (John) .554.5 -24.5 715.8 383.3
Burberry Group . . . .1259.0 -58.0 1600.0 870.5
PZ Cussons . . . . . . . .357.0 -0.2 409.0 320.5
Supergroup . . . . . . . .973.5 -21.0 1820.0 818.5
AstraZeneca . . . . . .2739.5 -70.0 3385.0 2543.5
BTG . . . . . . . . . . . . . .259.0 -5.1 309.7 200.1
Genus . . . . . . . . . . . . .920.0 -15.0 1046.0 711.0
GIaxoSmithKIine . . .1264.5 -34.0 1385.0 1127.5
Hikma Pharmaceuti .568.5 -26.5 900.0 561.5
Shire PIc . . . . . . . . . .1913.0 -50.0 2136.0 1405.0
CapitaI & Countie . . .163.4 -5.6 203.7 125.0
Daejan HoIdings . . .2493.0 33.0 2954.0 2282.0
F&C CommerciaI Pr .100.4 -0.5 108.0 88.0
Grainger . . . . . . . . . . .103.2 -1.6 133.2 86.3
London & Stamford .115.4 -1.4 140.0 110.3
SaviIIs . . . . . . . . . . . . .296.8 -9.3 427.1 296.6
St. Modwen Proper . .129.1 -4.7 196.2 127.4
UK CommerciaI Pro . .77.3 -1.1 85.5 70.4
Unite Group . . . . . . . .186.2 -0.6 229.8 152.9
Big YeIIow Group . . .265.2 -9.3 353.3 234.2
British Land Co . . . . .498.7 -16.3 629.5 464.0
CapitaI Shopping . . .318.4 -6.4 424.8 312.5
Derwent London . . .1550.0 -15.0 1880.0 1411.0
Great PortIand Es . . .351.8 -11.1 445.0 324.7
Hammerson . . . . . . . .388.1 -12.4 490.9 373.7
Hansteen HoIdings . . .79.0 -0.5 89.5 62.8
Land Securities G . . .721.0 -12.5 885.0 620.5
SEGRO . . . . . . . . . . . .250.4 -6.1 331.3 232.4
Shaftesbury . . . . . . . .460.9 -5.4 539.0 426.3
Autonomy Corporat 2519.0 -6.0 2525.0 1271.0
Aveva Group . . . . . .1519.0 -46.0 1799.0 1385.0
Computacenter . . . . .382.2 -13.8 490.0 284.1
Fidessa Group . . . . .1600.0 -7.0 2109.0 1371.0
Invensys . . . . . . . . . . .246.0 -13.8 364.3 221.7
Kofax . . . . . . . . . . . . .274.5 -56.5 535.0 242.0
Logica . . . . . . . . . . . . .82.4 -2.4 147.2 80.3
Micro Focus Inter . . .303.5 -7.6 426.2 239.4
Misys . . . . . . . . . . . . .276.0 -3.7 420.2 234.7
Sage Group . . . . . . . .247.7 -7.8 302.0 231.7
SDL . . . . . . . . . . . . . . .630.5 -5.5 711.5 548.0
TeIecity Group . . . . . .544.5 -10.0 572.5 430.0
Aggreko . . . . . . . . . .1807.0 -63.0 2034.0 1394.5
Ashtead Group . . . . .112.0 -2.8 207.9 88.3
Atkins (WS) . . . . . . . .527.5 -17.0 820.0 513.5
Babcock Internati . . .611.0 -15.0 733.0 513.5
Berendsen . . . . . . . . .469.6 -5.4 568.0 381.0
BunzI . . . . . . . . . . . . .772.0 -19.0 812.5 676.5
Capita Group . . . . . . .698.5 -12.5 794.5 635.5
CariIIion . . . . . . . . . . .336.8 -4.8 403.2 298.8
De La Rue . . . . . . . . .798.0 -12.0 853.5 549.5
EIectrocomponents .203.9 -6.6 294.9 190.0
Experian . . . . . . . . . . .684.0 -20.5 833.5 649.0
FiItrona PLC . . . . . . . .342.1 -19.7 385.5 227.5
G4S . . . . . . . . . . . . . . .258.0 -9.3 291.0 237.7
Hays . . . . . . . . . . . . . . .72.3 -3.8 133.6 69.4
Homeserve . . . . . . . .457.4 -5.2 532.0 408.0
Howden Joinery Gr . . .98.1 -3.2 127.5 67.7
Intertek Group . . . . .1920.0 -59.0 2148.0 1682.0
MichaeI Page Inte . . .353.3 -17.0 567.0 349.3
Mitie Group . . . . . . . .214.5 -5.5 242.5 191.2
Premier FarneII . . . . .175.4 -6.7 308.8 168.4
Regus . . . . . . . . . . . . . .71.0 -1.5 119.0 64.0
RentokiI InitiaI . . . . . . .77.3 -3.0 107.1 74.5
RPS Group . . . . . . . . .198.1 -2.4 253.0 175.4
Serco Group . . . . . . .494.7 -17.3 633.0 491.9
Shanks Group . . . . . .112.0 -0.7 130.9 99.0
SIG . . . . . . . . . . . . . . . .99.4 -3.5 153.5 96.0
SThree . . . . . . . . . . . .237.1 -11.6 447.6 235.5
Travis Perkins . . . . . .763.5 -41.5 1127.0 723.5
WoIseIey . . . . . . . . .1515.0 -47.0 2261.0 1353.0
ARM HoIdings . . . . . .533.5 -17.0 651.0 338.9
CSR . . . . . . . . . . . . . .214.0 -6.0 447.0 213.3
Imagination Techn . .325.5 -5.6 502.0 296.9
Pace . . . . . . . . . . . . . .104.0 -4.4 231.8 91.0
Spirent Communica .121.6 -6.4 160.3 116.0
British American . .2699.5 -62.0 2871.0 2282.5
ImperiaI Tobacco . .2040.0 -52.0 2231.0 1784.0
Avis Europe . . . . . . . .313.8 0.7 316.0 184.0
Betfair Group . . . . . . .628.0 4.5 1550.0 567.0
Bwin.party Digita . . . .110.9 -8.6 297.9 100.6
CarnivaI . . . . . . . . . .1830.0 -63.0 3153.0 1742.0
Compass Group . . . .535.0 -17.5 612.0 511.5
Domino's Pizza UK . .496.6 -20.9 586.0 377.0
easyJet . . . . . . . . . . . .324.6 -8.5 479.0 301.0
Enterprise Inns . . . . . .34.9 -3.5 122.7 34.9
FirstGroup . . . . . . . . .349.3 -12.3 412.6 311.3
Go-Ahead Group . . .1420.0 -33.0 1598.0 1085.0
Greene King . . . . . . .431.5 -12.8 518.0 410.0
InterContinentaI . . . .993.0 -23.0 1435.0 955.0
InternationaI Con . . .158.4 -8.6 305.0 157.5
JD Wetherspoon . . . .405.2 -7.1 468.3 389.9
Ladbrokes . . . . . . . . .121.9 -3.6 155.3 120.3
Marston's . . . . . . . . . . .92.0 -2.9 117.1 87.1
MiIIennium& Copt . .406.4 -9.2 600.5 406.4
MitcheIIs & ButIe . . . .217.9 -9.9 361.0 216.2
NationaI Express . . .236.4 -6.7 270.2 220.7
Rank Group . . . . . . . .125.0 -6.5 153.7 109.5
Restaurant Group . . .276.1 -7.6 335.0 254.9
Spirit Pub Compan . . .38.0 -0.5 55.0 37.0
Stagecoach Group . .247.0 -3.8 268.5 180.4
Thomas Cook Group .38.5 -3.0 204.8 38.4
TUI TraveI . . . . . . . . . .140.5 -6.0 271.9 139.6
Whitbread . . . . . . . .1457.0 -37.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .218.9 -5.5 237.3 155.5
Abcam . . . . . . . . . . . .350.0 -15.5 460.0 307.0
AIbemarIe & Bond . .369.0 4.6 400.1 242.3
Amerisur Resource . .16.6 -0.6 29.0 11.5
Andor TechnoIogy . .560.0 -2.0 685.0 322.5
ArchipeIago Resou . . .77.5 0.3 79.0 32.3
ASOS . . . . . . . . . . . .1829.0 -48.0 2468.0 960.5
AureIian OiI & Ga . . . .44.8 -0.8 92.0 42.5
Avanti Communicat .330.0 -9.0 735.0 288.8
Avocet Mining . . . . . .272.0 -0.5 275.0 123.0
BIinkx . . . . . . . . . . . . .114.8 -2.8 148.8 70.5
Borders & Souther . . .50.3 0.5 93.0 44.8
BowLeven . . . . . . . . .129.0 -4.5 398.0 115.3
Brooks MacdonaId 1045.0 2.5 1372.5 907.5
Conygar Investmen . .97.0 -1.8 120.0 95.0
Cove Energy . . . . . . . .65.8 -3.3 112.8 59.5
Daisy Group . . . . . . . .110.5 -1.1 127.0 88.0
EMIS Group . . . . . . . .548.8 -21.3 580.0 303.5
Encore OiI . . . . . . . . . .49.5 -1.3 151.5 40.8
Faroe PetroIeum . . . .155.0 -5.0 218.3 133.0
GuIfsands PetroIe . . .149.5 -5.0 401.5 142.5
GWPharmaceuticaI .104.0 -3.5 130.0 83.0
Hamworthy . . . . . . . .522.5 -18.5 705.0 334.3
Hargreaves Servic . .905.0 -25.0 1076.0 620.0
HeaIthcare Locums . .84.6 0.0 84.6 84.6
Immunodiagnostic .1068.0 -9.0 1218.0 747.5
ImpeIIamGroup . . . .327.5 7.5 387.5 128.5
James HaIstead . . . . .427.5 -7.5 495.0 315.0
KaIahari MineraIs . . .235.5 -2.3 301.0 142.0
London Mining . . . . .333.5 -1.8 436.5 258.8
Lupus CapitaI . . . . . . .89.0 -1.0 150.0 81.5
M. P. Evans Group . .387.5 -24.0 500.5 371.0
Majestic Wine . . . . . .412.5 1.5 510.0 309.0
May Gurney Integr . .240.0 -7.0 295.0 177.0
Monitise . . . . . . . . . . . .36.0 -0.5 39.0 18.5
MuIberry Group . . . .1503.0 -32.0 1920.0 363.5
Nanoco Group . . . . . . .62.0 0.0 115.8 57.5
NauticaI PetroIeu . . .255.3 -7.8 547.0 165.0
NichoIs . . . . . . . . . . . .515.0 -14.0 579.0 410.0
Numis Corporation . .100.0 -3.0 146.0 91.9
Pan African Resou . . .13.0 0.3 13.8 7.3
Patagonia GoId . . . . . .69.8 3.0 71.0 18.3
Prezzo . . . . . . . . . . . . .59.8 -0.8 71.5 47.5
Pursuit Dynamics . . .199.5 -5.5 700.0 160.5
Rockhopper ExpIor .212.8 -7.3 510.0 141.0
RWS HoIdings . . . . . .432.5 0.0 479.8 255.0
Songbird Estates . . .118.5 -1.5 160.3 110.3
VaIiant PetroIeum . . .476.5 -13.5 761.5 467.0
Young & Co's Brew . .650.0 0.0 712.0 525.0
Perform Group . . . . .173.1 4.9
BerkeIey Group HoI 1236.0 4.8
BH GIobaI Ltd. USD . .11.6 1.7
Daejan HoIdings . . .2493.0 1.3
Devro . . . . . . . . . . . . .254.3 1.3
Dignity . . . . . . . . . . . .769.0 1.3
BH GIobaI Ltd. GBP 1163.0 1.1
RandgoId Resources6735.0 1.0
BH Macro Ltd. GBP 1990.0 1.0
Phoenix Group HoId .529.0 0.8
Kofax . . . . . . . . . . . . .274.5 -17.1
RoyaI Bank of Scot . . .21.8 -12.3
InternationaI Pers . . .237.7 -11.2
EnQuest . . . . . . . . . . . .96.6 -10.4
Enterprise Inns . . . . . .34.9 -9.1
Kenmare Resources . .40.1 -8.6
Dixons RetaiI . . . . . . .11.0 -8.1
Home RetaiI Group . .115.0 -7.5
LIoyds Banking Gro . .30.7 -7.5
TaIvivaara Mining . . .312.2 -7.4
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
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REAL ESTATE INVEST. & SERV.
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TOBACCO
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AIM 50
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Wealth Management
Foreign affairs experts
met recently to discuss
the growing strength
of the worlds largest
democracy. Edward
Shawcross has their
unexpected answers
1INDIA IS BECOMING A HARD POWER
India used to be a leading member of the
Non-Aligned Movement. Until 1991, its for-
eign policy was marked by a refusal to enter
into military agreements with major pow-
ers. The collapse of Indias closest ally, the
Soviet Union, forced Delhi to change its
position and seek a rapprochement with
the US through the 1990s and the early
2000s. Key concessions included the lease of
military bases and support for the Star
Wars missile defence system. This coopera-
tion led to the 2006 US-India Civil Nuclear
Agreement.
The fall of the Soviet Union provided the
external catalyst for change, but internal
economic factors played their part. India
realised that it could only assert itself on
the world stage if it had the resources to
back it up as a world power. The failure of
Indias quasi-socialist economy had become
apparent even before the USSR collapsed,
and was reinforced by the fall of the Berlin
Wall. A capitalist consensus grew out of the
failure of state planning and the limita-
tions of autarky. The example of China was
seen as one to be emulated; this led to a less
idealistic, more realistic approach to for-
eign policy. Moralism and idealism were
shed in favour of pragmatism and realpoli-
tik, what foreign policy analyst and jour-
nalist C. Raja Mohan called a shift from the
power of argument, to the argument of
power. This has manifested itself in a more
ambitious foreign policy, such as seeking a
permanent seat on the UN Security
Council.
The rise of the Indian superpower
The onward march of a rising power Picture:REX
Patrick French: Writer and historian
Rahul Roy-Chaudhury: Senior fellow for
South Asia at the IISS
Jo Johnson MP: MP for Orpington and
deputy chairman of the Indo-UK All Party
Parliamentary Group
Gideon Rachman: Chief foreign affairs
commentator, Financial Times
PANELLISTS
Business Features| Insight
28
business, with nine out of ten MPs in India
under 40 in inherited seats, and this nepo-
tism will lead to a backlash. Nonetheless,
the tradition of democracy is strong, with
voter turnout, even in areas where the
Maoist insurrection is strong, regularly over
80 per cent.
Economically, India is both rich and
poor. However, there is no debate in India;
economic liberalism is the way forward.
The communist party was recently voted
out of power after more than 30 years in
West Bengal. Even so, doing business in
India varies greatly from state to state and
the pace of change in India is fast. For
example, Bihar was a corrupt and
ungovernable territory as recently as 2005,
but has been transformed into a state gov-
erned by the rule of law.
4INDIA REMAINS RESTRAINED
The Mumbai terror attacks were met with a
muted response from Delhi despite evi-
dence linking them to Pakistan. More
recently, India has withdrawn from debates
arising from the Arab Spring, abstaining on
the UN Security Council resolution over
Libya and holding back on support for the
revolution in Cairo. There is a tendency to
step back.
At the moment, India is not
a military power of sub-
stance. Its foreign poli-
cy objectives are to get
as rich as possible, as
fast as possible. This
means concentrating
on the economy and
developing its
power along
the Chinese
m o d e l .
Possible stum-
bling blocks
are endemic
cor r upt i on
and market
access that
doesnt con-
form to World
T r a d e
Organisation
rules.
5EVERYONE IS COURTING INDIA
A leader from every one of the five perma-
nent members of the UN Security Council
has visited India in the past 12 months.
David Camerons trade delegation to India
in July 2010 was described by Downing
Street as the largest in recent memory.
However, Washington signed the US-
India Civil Nuclear Agreement in 2006,
but the US has had little tangible in
return. US companies have not won large
contracts in the nuclear sector and US bid-
ders were noticeably absent on Indias
shortlist to supply the $10bn fighter plane
defence contract. The frontrunner is the
Eurofighter.
6PAKISTAN IS THE PRIMARY CONCERN
India wants to think globally, but it is
forced to engage in the tense atmosphere of
the Afghanistan-Pakistan region. India did-
nt go after the terrorists of the Mumbai
attacks, partly because Pakistan has a large
military and nuclear weapons. This leaves
only so much room for India to manoeuvre,
before the danger of escalation is too great.
Indias international ambitions may be
growing, but there are strong limitations
on its ability to be assertive. For now,
despite its own growing strength, India will
take the blows rather than react the risks
are too great.
Edward Shawcross works for Chartwell Partners,
the specialist speaker bureau, which organised this
meeting. www.chartwellpartners.co.uk
2INDIA NEEDS CHINA
India and China are the worlds largest
neighbours. They make up nearly 40 per
cent of the worlds population. India is
Chinas largest trade partner. However,
Chinas GDP is four times Indias; Beijing
spends over three times as much on defence
as Delhi. China and India are not equals.
There is the potential for rivalry between
democratic India and authoritarian China,
but the main source of tension is the
4,000km of disputed border, known as the
line of actual control, between the two
countries. The fiftieth anniversary of the
Sino-Indian War, fought over this still unde-
fined and porous frontier, will be in 2012.
Agreement over demarcation remains a
long way off: management rather than res-
olution is the pragmatic policy.
Also, Indias continued support for the
Dalai Lamas government in exile angers
China, and has the potential to embarrass it
internationally.
Another point of contention is
inevitably Pakistan. Beijing has fostered
closer ties with Islamabad. This has meant
that India leans naturally more towards
Washington to counterbalance this new
alignment. India fears China plans to
encircle the sub-continent, China sees
India as operating a policy of contain-
ment.
China and India view each other with suspi-
cion and mistrust, but more dialogue
would lead to better understanding of the
trade benefits of good relations. Equally,
while Chinese investment in India is minus-
cule, it could still be a force for good. More
investment would lead to closer ties and
mutually beneficial economic payoffs for
both nations. Doubts on both sides
could be overcome by building
upon the existing trade relation-
ship.
3INDIA REALLY IS ONE NATION
India is extremely diverse. There are
differences of language, religion, race,
food and culture, but the nation exists.
However, despite economic success,
there is a growing sense of middle class
disenfranchisement in the political
realm. Politics is becoming a family
C
HANCES are, youre either fresh off
the beach skin still salty and a lit-
tle tender or youre mourning
the departure of your tan. The
spectre of skin damage is probably also
lingering somewhere. How to claw back
the health of some of those damaged
cells and in the first instance, how to
keep that golden colour you worked so
hard for?
Its an interesting time for the former:
Lancome has just released an anti sun-
damage cream called Visionnaire and its
being hailed as the future of skincare
the result of 10 years of heavyweight
molecular research by parent company
LOreal. Its the first anti-ageing cream in
recent memory that is thought to actual-
ly do what it says on the tin, thanks to
ingenious manipulation of the mole-
cules in something called jasmonic acid.
For instant moisture and colour pro-
longing, there are also a host of luxuri-
ant products that make your skin smell
lovely and properly retain the moisture it
badly needs. Here is our pick of the best.
Lotions and potions for sun-damaged skin
are numerous, and the latest crop of products
has upped the ante, says Zoe Strimpel
Lifestyle
WHISKY LOVERS
PARADISE ON
ISLE OF ISALY
SEE PAGE 31
29
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For your FREE consultation
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Episode 26: a troubled outlook for Q4
EMMA and Maria are interviewing
nannies. On the principle that threes a
crowd, Ive taken Noel shopping. Dates
and numbers swirl in my head as we
walk down the street. The twins are
due on 14 October but will probably
arrive before then. The weight of the
smaller twin has increased but a birth
close to their due date would be good.
I turn 40 on 4 December and term
and half-term dates are equally firmly
established in the diary. Meanwhile,
the current deal is already consuming
my working day and is yet to get into
full swing. Q4 will be flat out. On all
fronts. Only fee income, initially some-
where around 10m, is uncertain. Oh
and whether and when Ill be able to
take any paternity leave.
A heavily pregnant woman heaves
into view, pushing a buggy and drag-
ging what looks like a 4 year old. I stop
and stare. I realise that Noels hand has
become detached from mine. I turn
and see Noel, his face pressed against
the window of the pet shop.
I walk over to Noel. His nose
remains pressed against the glass.
Dad, I want a hamster. Ah. I know
what this is about. Hes feeling anxious
about his position in the world. I
crouch down beside him. You know
that mummy and daddy love you very
much, dont you darling? And that the
twins wont make any difference to
that? Well still love you just as much.
And youll be our big boy. Mummy and
I will need lots of help with the twins
and theyll love you the most of all. Do
you Suddenly Im getting lost. I
mean, do you want a hamster to love?
No dad. To learn about death. They
dont last five minutes, Billys dad says.
To be continued here Tuesday. For pre-
vious City Dad columns, go to
www.cityam.com
CITY DAD
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
The skinny
on slimming
Y
OU know those lucky naturally thin people
that eat loads? Well, theyve won a genet-
ic lottery of sorts. Researchers at Imperial
College London and the University of
Lausanne found that around one in 2,000 people
have a duplicated gene making them many times
more likely to be skinny (23 times more if youre
a man; five times if youre a woman). So, while
these human gazelles get to eat what they like
without so much as a backward glance at the
scales, how can the rest of us crank up our meta-
bolic rate? Its all in the exercise (and the coffee).
CLOCK-UP YOUR CALORIE BURN
Burn as you go without even realising it. The US
National Weight Control Registry followed
5,000 people whod each shed two stone and
kept it off for more than five years. The thing
they all had in common? Each of them burnt
around 400 calories a day in exercise (mainly
walking). But what about the other everyday
stuff? Dancing burns about 45 minutes for
every three quarters of an hour youre at it,
while an hour of five-aside with work col-
leagues will burn around 600 calories.
DONT FORGET WEIGHTS
Different exercise does different things to your
metabolic rate. Training with weights will
increase your percentage of muscle tissue over
time which is metabolically more active than
fat tissue, but aerobic exercise will give you a
higher cal burn both during and immediately
after your workout. This afterburn is, howev-
er, no longer considered to be the cure-all for a
bulging waistline scientists now believe that
the afterburn effect of exercise is just an extra
20 to 30 calories a day.
RACK UP YOUR STARBUCKS CARD
The evidence for caffeine as chief weight loss
aid continues to stack up: caffeine can raise
your metabolic rate by as much as 10 per cent
for as long as two hours after youve ingested it.
It alters the way your body uses fuel so that
youre burning fat for energy instead of glucose.
So, yes, there is a case for a double espresso
before your spinning class.
www.laurawilliamsonline.co.uk
Salve your post-holiday
skin with these soothers
1 Kiehls rosa artica, 45. Flower power in action with this
deeply rejuvenating cream from wholesome skincare classic. At
Selfridges, www.selfridges.com 2 Lierac ultra anti-ageing
cream for face, 25. Jasmine and cactus fig extract make for
one of the richest, most moisturising creams out there. www.lier-
ac.com. 3 Clinique after sun rescue, 17.50. Aloe makes this old
favourite wonderfully soothing. 4 Jo Malone wild bluebell body
creme, 48. Sinfully rich cream in a new scent thats so gorgeous
itll help you forget any skin discomfort. www.jomalone.co.uk
5 Lancome Visionnaire, 57. New product dominating headlines
that may be the closest weve come yet to turning back the clock.
www.lancome.co.uk 6 Liz Earle, Sunshade botanical aftersun
gel, 13.50. Cucumber and lavender make this super-cooling gel a
winner for post-sun skin. uk.lizearle.com 7 Sensai silky bronze
aftersun, 60. Beautifully refined, full of soothing herbs, this lux-
ury, super-smooth formulation will do the trick. Exclusive to
Harrods. www.harrods.com 8 Hampton Sun aftersun moisturis-
er, 28. Tea tree oil and cocoa butter give a wholesomeness to
this fabulous-smelling, super-trendy brands post-bronzing balm.
www.spacenk.co.uk
1
4
5
8
2
6
7
3
Its the perfect time for an idyllic
motoring break in the Alps.
Timothy Barber helps you pack
Motor chic: look the part on
an autumn drive in the Alps
HOW TO GET
DRESSED: EUROPE
CITY BREAK
Clare Rous & Kara Iland
FOUNDERSOF ROUSILANDMEMBERS BOUTIQUE,
WWW.ROUSILAND.COM
Q A
&
1. Prada Linea Rossa 175,
www.davidclulow.com
2. Persol Roadster, 235
www.sunglasshut.co.uk
3. Lotus Originals leather driving
gloves, 149
4. Lotus Originals racing leather
jacket, 890
www.lotusoriginals.com
5.TAG Heuer Monza re-edition.
4,800 www.tagheuer.com
6. Bottega Veneta suede driving
shoe, 325 www.mrporter.com
7. Chucs cashmere pullover, 425
8. Ralph Lauren Purple Label chi-
nos, 265 www.mrporter.com
FASHION NEWS
BY ZOE STRIMPEL
Q.
Im grabbing an early-autumn
break in Rome, rather than head-
ing to the beach. Its still hot
there: what do I need to look cool in the
city?
A.
Rome in September can be pret-
ty sweltering but you need to
dress city (and sometimes
Vatican) appropriate. Set yourself apart
from the tourist crowd by keeping it chic
for the papal venues (and the often over-
ly appreciative male natives!) The best
way to keep the heat contained in this
environment is to be relatively covered
up in light fabrics. Here are a few sum-
mer city break classics with a cooling
twist:
1.
Playsuits have become a summer
holiday staple. To keep cool but
avoid looking too beach (or too
young) go for a tailored style with airy
culotte-style shorts in a light silk or
linen. Take your lead from Aussie design-
ers who know best how to do glamorous
in a warm city. Try ILAND bespoke's
navy silk version with a slightly wedged
peep toe for a look to take you from
Colosseum to aperitifs at the Hotel de
Russie.
2.
Every fashion editor will tell you
that a shirt dress is a key basic for
a hot city slicker weekend. The
collar keeps you city-smart and you can
undo buttons according to the heat.
Stand out from the sea of black, beige
and taupe with a floaty silk printed ver-
sion. Keep it synched in at the waist so
you can go for any length depending on
your body shape. An a-line knee length
skirt will give it a very Roman Holiday
50s vibe. Alternatively take the length
down to mid-calf or even maxi for a very
new season elegance. Antipodean design
siblings Ginger & Smart's Poet collared
dress has an easy pull string waist tie so
you can draw it in or relax it according to
your mood. The skirt wafts down mid-
calf at the back but is slightly higher at
the front for a flattering take on a longer
length skirt. The bold print will work just
as well layered with tights for autumn in
London.
3.
The beach dress can be smarter by
taking it oversized and accessoris-
ing. For strolls through the gar-
dens of the Villa Borghese to the roar of
the crowds at the Trevi Fountain, an
oversized silk tunic dress will keep you
breezy but glamorous. Go for a print or
block colour with a bit of a sleeve. Glam
it up with a chunky necklace or earrings
for the evening.
WINDOWS ON THE FASHION WORLD
The self-proclaimed hub of London
Fashion Week, the May Fair Hotel, is
going all out for fashion week (16-21
Sep). For one thing, its windows will be
transformed into works of fashion art,
a la Champs Elysee. Elsewhere there
youll find fashion week cocktails and
even a themed spa treatment. Stratton
St, W1J 8LT. themayfairhotel.co.uk.
ARROW LAUNCHES IN EUROPE
Iconic American shirt company
Arrow (founded in 1853) is latching
onto Europes taste for all things
preppie and is opening on this side of
the pond this autumn, via parent
company PVH. The collection boasts
distinctly refined, structured...and
liberated shirts in a range of stylish
fabrics. www.pvh.com/arrow
LINKS GET OLYMPIC NOD
Links of London are to design the offi-
cial jewellery collection of London
2012. A blue and red woven band
with an engraved Team GB silver
plate plaque has been created to
show support for the British atheletes
and the games as a whole. A rather
nifty way to show youre keen, we
think. 20, www.linksoflondon.com
A
UTUMN breaks dont come much
more spectacular than driving holi-
days in the Alps, where the summer
season still has a month and a half
to go.
Hiring a classic set of wheels for a buzz
along the snaking Stelvio Pass or the
Grossglockner High Alpine road still has
the glamour of the great age of motoring,
something you can also find at Goodwood
Revival, the classic car extravaganza that
takes place in a couple of weeks. But you
need to look the part comfy driving jeans
and a sweatshirt do not cut the mustard as
you swing into the forecourt of Badrutts
Palace at the wheel of a vintage Aston. Here
are some ideas to bring out the stylish
inner-Connery of any man heading for the
hills in a classic car.
1
3
4
7
6
5
8
2
Lifestyle
The May Fair Hotel. A famous Arrow advert.
F
OR the malt whisky enthusiast, the
Scottish island of Islay is undoubt-
edly the place to visit when it
comes to exploring some of the
finest and most flavoursome whiskies in
the world.
Once the staple preserve for a genera-
tion of rosy-cheeked grandfathers, malt
whisky is currently enjoying something
of a renaissance with a new group of
younger drinkers, eager to trace the ori-
gins of the spirit right back to its
Scottish roots. For years wine enthusiasts
have visited France to experience the
terroir of their favourite wineries first
hand and now there is no better time
than to pay a visit to a whisky distillery
and celebrate one of the UKs most
unique, home grown epicurean delights.
The Hebridean island of Islay, which
lies just off the west coast of Scotland, is
home to eight working distilleries,
famous for making highly characterful
smoky whisky. Often described as the
stuff that separates the men from the
boys, Islay whisky represents the most
richly flavoured of all scotch whiskies
and a trip to this iconic island is an expe-
rience to truly savour.
Getting to Islay by air is an event in
itself and the small prop plane Im trav-
elling in bobs about nervously between
the clouds. But as we circle the island,
the traditional whitewashed distillery
buildings with their unusually shaped
Pagoda chimneys (where malted barley
is smoked, using locally cut peat to give
the whisky its unique flavour) emerge
from the mist and well-known names
such as Laphroaig, Ardbeg and Lagavulin
slowly hove into view. Its the sort of
sight that gives whisky fanatics a minor
heart murmur and genuinely sets the
level of anticipation for trying a few pun-
gent drams.
The Bowmore distillery, situated in the
centre of the island, produces one of the
most well-rounded Islay malt whiskies
and its newly refurbished visitors cen-
tre, complete with an outdoor balcony
overlooking the brooding coastline, is
perfect for experiencing Islay whisky
amongst the elements. Around the cor-
ner, the Harbour Inn Hotel serves up
freshly caught oysters from the local
Loch Gruinart, drizzled with more
Bowmore whisky. Its a combination
that would no doubt taste great any-
where, but to experience it first-hand on
the island just adds to the mouth-water-
ing experience.
To the south of Islay lies Port Ellen,
once home to an iconic distillery of the
same name, which has now long since
closed its doors, but it is also home to
Ardbeg, which produces a wonderfully
light, yet aromatic 10-year old single
Peatheads paradise on the Hebrides
malt. One of Ardbegs real highlights
however is the intriguingly named
Supernova, famed for perhaps being the
smokiest whisky in the world. If youve
never tried a peated whisky before, this
one is not for the faint-hearted and is
most definitely the reserve of the truly
seasoned peathead. But its easy to see
why so many people fall in love with
such a distinct flavour. After spending
time exploring the distillerys ancient
warehouses, full to the brim with vin-
tage oak casks slumbering away until
theyre fully mature, the romance and
sheer craftsmanship of single malt
whisky is really bought to life.
Intoxicating stuff indeed.
Neil Ridley is co-editor of the award-winning
whisky website www.caskstrength.net
DECADENT ISLAND DRAMS
With its pungent peat smoke, Islay undoubtedly produces
the most characterful of all single malt whisky. Heres our
pick of three you must try when visiting the island:
Ardbeg Uigeadail: Taking its name from Loch Uigeadail
(meaning dark and mysterious place in Gaelic), Ardbeg
Uigeadail is a full-bodied whisky, weighing in at 54.2 per
cent abv. Rich dried fruits mix with black treacle and a
waft of aromatic peat. Truly tongue coating stuff.
Lagavulin 16 year old: Robust yet elegant, Lagavulin is
famed for a medicinal, smoky complexity, combining with a
sweet, creamy fudge flavour. Works brilliantly as an
accompaniment to blue cheese.
Bowmore Tempest: Lighter in style to Ardbeg and the
medicinal Lagavulin, Bowmore Tempest has notes of
caramel, milk chocolate and peat smoke, with a surprising-
ly fruity palate.
Getting there: Visit www.visitscotland.com/surprise for
more details.
Neil stayed at The Harbour Inn Hotel: www.harbour-
inn.com
Ardbeg Distillery Port Ellen, Isle of Islay PA42 7EB
01496 302244, www.ardbeg.com
Bowmore Distillery, Bowmore, Isle of Islay, PA43 7JS.
01496 810671, www.bowmore.com
For a chance to try a selection of rare and vintage single
malts, visit The Whisky Show at Vinopolis on the 7 and 8
October. www.whisky-show.com
Above: Lagavulin Distillery. Right: View of
Saligo. Pictures: REX
The Scottish island of Islay is a must for
anyone who loves not just whisky, but the
very best of it, says acionado Neil Ridley
I
MAGINE for a moment that the
English weather hasnt let you
down, that youre basking in the
sunshine of a glorious late sum-
mer (or early autumn) day. You want
the refreshment of a white wine but
youre more of a red drinker. You
could reach for the ros but I want to
propose something a bit more adven-
turous chilled red wine.
As the temperature of a wine goes
down, the volatile molecules that
comprise the aroma find it harder to
escape the surface and find their way
to your nostrils, the wine smells less
(bear this in mind the next time you
ask for your Montrachet ice-cold), at
the same time the astringent tannins
become more and more pronounced
(picture a cold cup of strong tea). A
simple rule follows: the more tannic
a wine, the warmer to drink it (with-
in reason, no wine tastes good much
above 20). Conversely, a less struc-
tured wine can often be served cooler.
Tannin comes from the skins of
the grapes as do the related com-
pounds that provide colour, so the
depth of colour of a wine is a good
guide to how tannic it is and how
suitable it is for a spell in the ice
bucket.
Enough science, what does it mean
in the real world?
Pinot Noir is the perfect candidate;
simple Burgundy, Red Sancerre,
German Sptburgunder, lighter ver-
sions from New Zealand. They all
make charming summer drinking (in
the case of the Kiwi wines a judicious
chilling can tame their sometimes
excessive alcohol, too).
Beaujolais works well too, particu-
larly lighter wines such as Brouilly,
Fleurie or Chiroubles.
Next time the sun comes out why
not pop a bottle of red in the fridge?
Dont be shy about asking the waiter
in your favourite restaurant to pop it
on ice for you either. Chill out!
Follow Andrew on Twitter
@LutyensWine
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
Lifestyle | Food & Drink
Chilled red wine? You must be...deadly serious
An Ardbeg barrel.
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Using only the letters in the Wordwheel, you have
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letters can only be used once in every word. There
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QUICK CROSSWORD
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4 Division of the
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and snow (5)
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15 Beginner (4)
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19 Sightless (5)
20 Bundles, especially
of corn (7)
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22 Man-made bre (5)
DOWN
1 Lumps together (6)
2 Pasting (7)
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6 Dealer (6)
9 Weaken mentally
or morally (8)
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of human nature
and motives (7)
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to the French as
Aix-la-Chapelle (6)
16 Informal term for
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18 Norwegian dramatist (5)
E
P
A
N
N O
H
E
M
4

4

4

W O R K H O U S E
W M Y P U A
I D E A L I N L E T
T G I O U K T
T R A C E M A Y B E
I A B N
C O S T S S C O L D
I H T O M N A
S C A L Y A L I E N
M V L R O T
D E F E A T I N G
1 5 6 3 1 8 3
9 6 9 1 2 7 2
1 2 4 3 6 2 1
4 9 8 7 8 9 5
2 3 2 5 9
8 2 6 9 1 4 7 3 5
9 8 6 4 3
2 4 1 3 2 8 1
4 8 7 5 7 9 8
1 7 2 3 1 5 9
7 9 7 9 3 2 4
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
FLETCHING
Lifestyle | TV&Games
CITYA.M. 6 SEPTEMBER 2011 32
Results
WORLD No1 Novak Djokovic made it
safely through to the last eight of the
US Open but only after prevailing in
an epic first set tie break against
Russias Alexandr Dolgopolov.
Djokovic triumphed in straight sets
recording his 61st win of the calen-
dar year but it might have been a
different story had he failed to save
four set points in a tie break which he
eventually took 16-14.
Dolgopolov troubled the
Wimbledon champion throughout,
particularly with his sliced backhand,
but after losing the first set in such
dramatic circumstances he never
looked capable of causing an upset.
After completing a 7-6, 6-4, 6-2 vic-
tory Djokovic said: It wasnt a great
performance from my side in the first
set.
I wasn't feeling the ball the way I
wanted in the first set but it was
important to win and I played much
better in the next two sets.
Djokovics next opponent, Janko
Tipsarevic, earlier reached his first
grand slam quarter-final with a 7-5, 6-
7, 7-5, 6-2 victory over the former
world No1 Juan Carlos Ferrero.
Looking ahead to the all-Serbian
clash, Djokovic added: We know
each other really, really well but we
are both professionals. When we step
on the court we want to win.
Meanwhile, in the womens draw
Serena Williams breezed into the
quarter-finals with a comfortable
straight-sets win against another
Serb, Ana Ivanovic.
The 28th seed remains on course
for a fourth title at Flushing Meadows
following an impressive 6-3, 6-4 defeat
of the former world No1.
After a tumultuous couple of years
Williams could be about to announce
her return to the top of the womens
game with 14th grand slam title, but
she admits that would pose a prob-
lem of its own.
Williams said: I dont have any
more space (for the trophy). I have a
new house in LA. I created a karaoke
room, so I cant put trophies in there.
In Florida, forget it. Venus and I,
theres just no more space. I would
love to keep winning them. But were
like, Oh, what are we going to do
with this one?
Djokovic made
to sweat by
Dolgopolov
BY JAMES GOLDMAN
TENNIS
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email sport@cityam.com I
TS AN exciting time for
European golf with youngsters
like Rory McIlroy and Matteo
Manassero establishing them-
selves as forces to be reckoned with,
but its equally uplifting to see the
old guard reminding the upstarts
that theres no substitute for experi-
ence in this game.
Thomas Bjorn secured back-to-
back victories at the weekend repre-
senting a fantastic achievement for
one of the tours outstanding golfers.
These were no end of season run of
the mill tournaments either.
Winning a five-way play-off at
Gleneagles must have given Bjorn a
real shot in the arm confidence wise
and he was strong enough to finish
clear of a stellar field at the European
Masters.
When you couple Bjorns success
with Darren Clarkes victory at The
Open it just goes to show the over 40s
club are still capable of having their
say at the top end of the game.
Only through experience are you
able to consistently deal with the var-
ious scenarios this wonderful sport
throws up. I remember I had my best
year, winning five tournaments,
when I turned 43 and was more at
ease with the pressures that accom-
pany playing in, and leading, big
events.
That certainly looked as if it was
the case for Darren during his final
round at St Georges, where he coped
with the hype as if it was just anoth-
er day at his local course, rather than
the biggest day of his career.
Bjorn, meanwhile, has shot
straight into contention for next
years Ryder Cup and hed certainly
be a great asset to the team, not just
because hes used to playing in that
unique atmosphere in America, but
because hes a superb golfer.
I enjoyed my best finish of the year
at the Senior Masters last week
despite some pretty ordinary put-
ting. Still, you cant quibble with a
top 10 finish and hopefully I can
carry that form into the next tourna-
ment in Prague later this month.
BRITAINS Andy Murray is looking to
make sure lightning does not strike
twice when he renews hostilities with
flashy American wild card Donald
Young tonight.
Murray meets baseball-cap-and-ear-
ring-sporting Young in the last 16 of
the US Open, eager to avoid a repeat
of Marchs shock defeat to the 22-year-
old at Indian Wells.
That Masters event upset came dur-
ing the Scots woeful slump in form
following loss in the Australian Open
final, and Murray is a revitalised force
now. But he knows better than to
underestimate Young, a former jun-
ior world No1 who has already
claimed the high-profile scalps of
Stan Wawrinka and Juan Ignacio
Chela this year at
F l u s h i n g
Meadows.
Murray said:
Hes talented
so he can hit
winners from
all parts of the
c o u r t .
Thats why
hes dan-
g e r o u s ,
hes very
flashy and
gets on a
roll when
hes playing well. Murrays straight-
sets win over Spains 25th seed
Feliciano Lopez in the third round
late on Sunday night was his best per-
formance of the competition. The
world No4, still
seeking a
first grand
slam title,
looked rusty
against Somdev
De v v a r ma n
and then went
two sets down
before beating Robin
Haase in round two.
Yet he approaches one of
the ghosts of his early-season
wilderness heartened now by a
sense of momentum, if not any obvi-
ous thirst for retribution.
Its not so much revenge against
Donald, its more for the situation I
was in there and making sure I can
move on from that. Its a big match
for me because of what happened ear-
lier in the year, Murray added.
I think energy-wise Ill be feeling
good going into that one for, hopeful-
ly, a long second week.
Flamboyant Donald, ranked 84 in
the world, has been compared to
Andre Agassi for his colourful attire
and penchant for jewellery.
As far as style, I like to play with
style, he says. I dont like to be bor-
ing. I like colours. I like to wear flashy
things if Im feeling good.
Flashy Young in steady Murrays sights
BY FRANK DALLERES
TENNIS
SPORT | IN BRIEF
Uefa uphold Wenger suspension
FOOTBALL: Arsenal manager Arsene
Wenger will serve a two-match
Champions League suspension after his
appeal against the punishment was
rejected by Uefa. The Frenchman was
initially given the suspension in the wake
of the Gunners play-off first leg at home
to Udinese. Wenger will now be banned
for the Champions League group games
at Borussia Dortmund and at home
against Olympiakos. Meanwhile, Wenger
could be without Thomas Vermaelen for
up to two months after the Belgian
defender underwent ankle surgery yes-
terday.
Stars to turn out for Barbarians
RUGBY UNION: South Africas Victor
Matfield, Danny Cipriani and Jamie
Roberts are among the first players to
have accepted invitations to play for the
Barbarians against Tri Nations champi-
ons Australia at Twickenham on 26
November. Matfield led the Barbarians
to victory over New Zealand in 2009
and for his second appearance he will
have South Africa team-mate Bakkies
Botha alongside him at lock.
Great Britain bow out in style
BASKETBALL: Great Britain were
knocked out of Eurobasket despite pro-
ducing an 88-81 win in an exciting final
group game against Poland in
Panevezys. NBA star Luol Deng again
led the GB scorers with 28 points and
Joel Freeland added 27, including hitting
all 12 of his shots. GB lost their first
three games against the top seeds in the
group, but finished with two successive
wins. We just won a close one against a
great team, said Freeland.
Sport
Djokovic won the first set tie break 16-14 Picture: GETTY
GOLF COMMENT
SAM TORRANCE
Bjorn would be a major Ryder Cup asset
Sport
34
MANCHESTER CITYS flawless start to
the new season is in danger of being
soured after their chief executive,
Garry Cook, found himself at the cen-
tre of a row over an email mocking a
cancer-stricken woman.
Dr Anthonia Onuoha, the mother
and agent of City defender Nedum
Onuoha, alleges she received an
offensive message poking fun at her
illness from an email account that
appeared to belong to Cook.
Former Nike executive Cook (right),
no stranger to controversy in his
three years at City, has denied send-
ing the email, saying his account
had been hacked and that the club
were investigating. Dr Onuoha has
asked the Football Association and
Premier League to probe the message,
which followed an exchange between
her and City football administrator
Brian Marwood.
She wrote to Marwood in October
2010, copying in
Cook, regarding
a dispute over
her sons con-
tract, saying:
My body
might be rav-
aged by can-
cer and
ongoing chemotherapy but, thank-
fully, my intellectual and mental
capacities remain fully functional.
Two weeks later she received a
reply from Cooks account addressed
to Marwood, which said: Brian,
Ravaged with it!!... I dont know how
you sleep at night. You used to be
such a nice man when I worked with
you at Nike. G.
Dr Onuoha says that when she
replied to Cook he denied knowledge
of the offending email, saying his
account had been infiltrated by hack-
ers while he was on holiday, and apol-
ogised profusely. She says Cook also
told her a City was employee was
being disciplined over the incident,
but now wants the games governing
bodies to look into the matter.
Cook has come under fire for con-
troversial remarks several times since
he was hired by former City owner
and ex-Thai prime minister Thaksin
Shinawatra in 2008.
He famously promised City would
beat neighbours and rivals
Manchester United in the 2010
Carling Cup semi-final during a talk
with fans in New York.
City lost the second leg 3-1 and the
tie 4-3, and United manager Sir Alex
Ferguson is said to have used Cooks
comments as motivation in his pre-
match team-talk.
City, who are to investigate the
claims, have won all three of their
Premier League matches this season,
scoring 12 goals in the process.
Onuoha, 24, came through the youth
ranks at the club and spent last sea-
son on loan at Sunderland.
Cancer patient email row threatens to drag focus
away from Man City brilliance and onto chief Cook
BY FRANK DALLERES
FOOTBALL
INDIA batsman Sachin Tendulkar will

remain marooned on 99 internation-
al hundreds after it was announced
yesteday that his tour of England, like-
ly to be his last, had been ended by a
toe injury.
The 38-year-old missed the first
game of the five-match one-day series,
which ended in a rain-affected draw
at Durham, and will now have to wait
until the one-day series against
England in October, on home soil, to
reach the landmark of a century of
centuries.
The Little Master struggled for form
during the Test series, passing 50 only
twice, in which his side were compre-
hensively beaten 4-0.
Tendulkar, who is expected to be
out for a month, becomes the eight
high-profile member of Duncan
Fletchers squad to have flown home
early and has been replaced by
Subramaniam Badrinath ahead of
todays match at the Rose Bowl.
It was the injury that he had in
2001 and it flared up in Durham,
said an Indian team official. He went
to a specialist in London and we got
the news he would not be taking any
further part in the one-day series any-
more and he might need rest for four
to six weeks.
Tendulkars
tour ended
by toe injury
CRICKET
ENGLAND captain John Terry admits

his side must make Wembley a
fortress again starting with tonights
European Championship qualifier
against Wales.
Fabio Capellos side have been in
fine, free-scoring form away from
home in their bid to reach Poland
and Ukraine next summer, but have
stumbled in front of their own fans.
Aside from the 4-0 drubbing of
Bulgaria at the outset of the qualify-
ing campaign, England stuttered to a
disappointing goalless draw against
Montenegro, and two defensive
howlers meant they were forced to
battle back from 2-0 down to earn a
point against Switzerland back in
May.
Moreover, England have failed to
win any of their previous four games
at Wembley but Terry insists
England arent suffering from stage
fright and are ready to reverse the
recent trend against Wales.
People can look too much into
that, (the home form), he said. I
have gone long spells at home with-
out winning, it chops and changes
and its just one of those things we
are going through. It would be nice
to change that sooner rather than
later.
The fixture follows Wales first
win of the qualifying campaign a 2-
1 victory over Englands only rivals
for top spot in Group G
Montenegro and Terry believes
there will be no repeat showing of
the straightforward win they
enjoyed over the Welsh back in
March.
I think it will be very different
from the last game, he said.
We got off to a good start then
but we are expecting a tough game
tomorrow night and they will be full
of confidence after their win.
Everyone (the players) will proba-
bly know each other inside out, ide-
ally it would be nice to get off to a
good start like we did in Bulgaria but
that doesnt always happen but it is
important the fans stay with us.
England manager Capello was also
impressed by the way Speeds men
applied themselves against
Montenegro, when goals from Steve
Morison and Aaron Ramsey secured
victory, and knows they will repre-
sent a genuine threat this evening.
Its very important to win tomor-
row and beat Wales, Capello said.
Wales are in really good form.
It will be a really, really danger-
ous game tomorrow.
Probably we can change the style
to a different style to the one we
played against Bulgaria because
tomorrow we are playing at home.
Well get over
our Wembley
wobble, vows
captain Terry
May 08: Cook is hired by City owner
Thaksin Shinawatra as chief executive
Aug 08: Defends Thaksin, accused of
corruption in his native Thailand: Is he
a nice guy? Yes. Is he a great guy to
play golf with? Yes.
Jan 09: Accuses AC Milan of bottling
it after bid for Kaka runs aground
Sep 09: Says he deeply regrets his
failure to do proper research on
Thaksin, following Shinawatras sale to
Sheik Mansour.
Nov 09: Booed by City fans for induct-
ing Uwe Rosler into the Manchester
United Hall of Fame [sic]
Dec 09: Forced to defend treatment of
Mark Hughes in press conference to
introduce his successor Roberto
Mancini.
Jan 10: Tells fans Citys impending win
over United in Carling Cup semi-final
was not if but when. They lost
COOK CONTROVERSIES | TIMELINE
India batsman Tendulkar Picture: PA
BY JAMES GOLDMAN
FOOTBALL
ENGLAND
WALES
Terry is likely to
partner Cahill in
defence against
Wales
Picture: ACTION
IMAGES
ENGLAND front-row Matt Stevens
cannot wait to put his scrummaging
powers to what he considers to be the
ultimate test, a World Cup clash
against Argentina with or without
captain Lewis Moody.
Flanker Moody will not be ready to
return from a knee injury when
Martin Johnsons men begin their
tournament against the Pumas in
New Zealand on Saturday, it emerged
yesterday.
But Saracens prop Stevens, who
rates the South Americans among
the very best packs on the planet, is
unflinchingly focused on getting
Englands campaign Down Under off
to the best possible start.
Argentina have got some great
front rows and we are relishing the
challenge. Front row players get bet-
ter with age and that is the case of
Argentina, he said. Their front row
would definitely be pushing to be the
best in the world. They are good ball
carriers as well, not just scrum-
magers.
What you notice about
Argentinian sides is that it is an eight-
man effort. I think they were the first
team to really spearhead scrummag-
ing as an eight.
That is what we have done as a
pack in the last four or five years. We
have tried to push our work with the
clubs and with England to scrum as
an eight.
New Zealand are very good at it,
the South Africans are coming up but
the Argentina spearheaded it in and
we are matching them.
James Haskell is likely to replace
Moody at openside, with centre Mike
Tindall taking over the captaincy, but
Johnson expects his skipper to be in
contention for the second pool match
against Georgia eight days later.
He has been running around
today so he is not a million miles
away, said Johnson. It is just one of
those calls: are you ready to partici-
pate fully this week and play a Test
match this Saturday? Not quite.
Vs
England have dominated this fixture
in the past, winning eight of the 13
previous meetings. The Three Lions
have won the last three clashes with-
out even conceding a goal. Wales
have won only once at Wembley back
in 1977 when a Leighton James
penalty gave them a 1-0 win.
On their last meeting back in March
an expectant home crowd packed the
Millennium Stadium but their hopes
were dashed inside the opening 14
minutes. Frank Lampard slotted home
a seventh minute penalty before
Darren Bents emphatic finish handed
England a 2-0 win.
35
BJORN SHOWS THERES NO
SUBSTITUTE FOR EXPERIENCE
SAM TORRANCE ON DANISH VETERANS
BACK-T0-BACK VICTORIES: PAGE 33
THERES RUGBY
THEN THERES BARBARIANS RUGBY
DONT MISS THE ONLY TWICKENHAM INTERNATIONAL THIS AUTUMN
BARBARIANS V AUSTRALIA
TWICKENHAM SATURDAY 26
th
NOVEMBER 2011 KO: 2.30
tickets from
TICKETMASTER.CO.UK
0844 847 2492
in association with
ADULTS from 35
KIDS ONLY 15
Barbarians squad includes: Bakkies Botha (SA), Danny Cipriani (Eng), Ryan Jones (Wal), Victor Matfield (SA),
Keven Mealamu (NZ), Jamie Roberts (Wal) plus other international players to be announced.
15. B Foden (Northampton)
14. C Ashton (Northampton)
13. M Tuilagi (Leicester)
12. M Tindall (Gloucester) (captain)
11. M Cueto (Sale)
10. J Wilkinson (Toulon)
9. R Wigglesworth (Saracens)
1. A Sheridan (Sale)
2. S Thompson (Wasps)
3. D Cole (Leicester)
4. L Deacon (Leicester)
5. C Lawes (Northampton)
6. T Croft (Leicester)
7. H Fourie (Sale)
8. J Haskell (Ricoh Black Rams)
LIKELY TEAM | ENGLAND V ARGENTINA
BY FRANK DALLERES
RUGBY UNION
England will need a point from their

last group match, at Montenegro on 7
October, to guarantee top spot and a
place at next years finals regardless
of what happens tonight. If Wales
were to win at Wembley, England
would need a win in Podgorica to
qualify as group winners.
TEAM NEWS
England manager Fabio Capello opted
not to call up replacements for Aston
Villa striker Darren Bent and
Manchester City right-back Micah
Richards, heightening the likelihood
hell makes no changes to the team
which won so impressively in Bulgaria
last Friday.
Wales are likely to be severely ham-
pered by the suspension of former
captain Craig Bellamy, as well as
Sunderland midfielder David Vaughan.
Bolton defender Sam Ricketts is still
recovering from Achilles surgery
while Blackpool full-back Neal Eardley
is out with broken fingers.
TACTICS
Flexibility hasnt been the watchword
of Fabio Capellos reign but the Italian
went some way to appeasing the
masses with the 4-2-3-1 formation he
employed in Sofia. Whether hell be
brave enough to dispense with one of
his holding midfielders for a game on
home soil remains to be seen.
Wales were guilty of trying t overplay
in the reverse fixture. Despite Gary
Speeds bravado, his side are likely to
be more circumspect tonight. Gareth
Bale played on the right against
Montenegro but could revert back to
his customary left-sided position and
test the inexperienced Chris Smalling.
MATCH FOCUS | ENGLAND V WALES
HISTORY
Kick-off 19.45
At Wembley Stadium
Live on ITV1 from 19.00
England 6 4 2 0 14 3 14
Montenegro 6 3 2 1 5 3 11
Switzerland 5 1 2 2 7 7 5
Bulgaria 6 1 2 3 2 9 5
Wales 5 1 0 4 3 9 3
GROUP G
TEAM PLD W D L F A PTS
WHAT IT MEANS FOR EURO 2012
Moody blues
wont lessen
Stevens World
Cup hunger
Moody should
return in time to
face Georgia
Picture: GETTY
:
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Cityam 2011-09-06

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