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FTSE 100 5,410.35 -26.35 DOW 11,577.05 +180.05 NASDAQ 2,657.43 +42.51 /$ 1.57 unc / 1.14 -0.01 /$ 1.37 unc
Shock as Apple misses
its earnings forecasts
SHARES in Apple plunged 6.5 per cent
in after hours trading last night as
disappointing sales of its iPhone
meant the tech giant missed its quar-
terly earnings target.
Around $27bn (17.2bn) was wiped
off the value of Apple when it
announced its results after the stock
closed at $394.78. In its first update
since the death of co-founder Steve
Jobs, it reported fourth-quarter
iPhone sales of 17.07m, compared to
the 20m expected by analysts. Apple
said consumers had put off spending
as rumours grew about the new
iPhone 4S, which went on sale last
week.
Overall quarterly revenue rose 39
per cent to $28.27bn but missed Wall
Streets prediction of $29.69bn. Net
profit was up 54 per cent to $6.62bn.
Apple also said sales for the year to
24 September rose 66 per cent to
$108.25bn. Net profit was up 85 per
cent to $25.92bn.
BY PETER EDWARDS
TECHNOLOGY
GOLDMAN Sachs shocked investors by

reporting the second-ever quarterly
loss in its history as a public company
yesterday.
The banks net income plunged to a
$428m (273m) loss, with pre-tax prof-
its falling from $2.8bn last year to a
$730m loss in the third quarter of this
year. Chief executive Lloyd Blankfein
admitted he was disappointed.
The bottom line was hit particularly
hard by drops in the value of
Goldmans proprietary investments:
its investing and lending division lost
$2.48bn versus a gain of $1.8bn in the
same period of 2010.
The biggest contributor to the loss
was a drop in the value of its invest-
ment in Commercial Bank of China,
which alone cost Goldman $1.05bn.
The investment bank also suffered
from revenues melting away as
investors sat on their hands. Revenues
from equity underwriting plunged by
71 per cent and in debt underwriting,
the bank brought in just under half of
the income generated last year.
But secondary trading activity is
also down in the banks largest divi-
sion: top-line income in fixed income,
commodities and currencies fell off by
36 per cent to $1.73bn.
The lacklustre performance saw
bonus pots and staff numbers drop
sharply: the cost of paying the banks
staff dropped 59 per cent to $1.58bn,
in line with the 60 per cent drop in
overall revenues.
As part of a costs crackdown,
Goldman cut four per cent of its
employees, bringing its headcount
down to 34,200 and recording average
annualised pay of $185,000.
City A.M. understands that the bank
has assured some bankers in its
London office that there will not be
mass lay-offs in the City, but not all of
its staff are convinced and some fear
that large-scale UK job cuts could
come down the line in addition to
shrinking bonus payments.
BY JULIET SAMUEL
BANKING
GOVERNOR: TIME
IS RUNNING OUT
www.cityam.com FREE
Goldman plunges into red
BUSINESS WITH PERSONALITY
Issue 1,492 Wednesday 19 October 2011
Certified Distribution
29/08/11 till 02/10/11 is 98,447
such measures.
Kings chilling verdict on the
potentially near-bankrupt state of
some banks and sovereigns imposes
more pressure on the Eurozone,
where crunch meetings are sched-
uled for the coming days.
Policy-makers in the UK alone are
limited in how much they can do to
avert a further economic downturn,
King said. Our fate rests to a consid-
erable extent on the policies pursued
by our trading partners.
While governments in the West
need to rein in their spending and
borrowing, King called for higher
spending by the surplus countries,
stating that countries such as China
and Germany share a major respon-
sibility to respond to our present
dilemma by expanding domestic
demand.
By importing more they would
provide deficit countries with the
wherewithal to export and service
debt repayments, King argued.
China should also cease tampering
with its currency, King implied.
Over the past two decades, some
governments, particularly in China
and the euro area, have tried to fix
exchange rates without putting in
King defended the
Bank of Englands
policies last night
as inf lation soared
Picture: REX
BRITAINS recovery has been
knocked off track by the global
financial crisis, Bank of England gov-
ernor Sir Mervyn King claimed last
night, in a sweeping attack on gov-
ernments and monetary authorities
throughout the world.
King hit out at monetary authori-
ties that have fixed currencies, and
criticised governments for failing to
act quickly enough on the weak-
nesses in bank and sovereign balance
sheets. Time is running out, King
warned a meeting of the Institute of
Directors, in Liverpool.
Four years into the crisis it is sure-
ly time to accept that the underlying
problem is one of solvency not liquid-
ity solvency of banks and solvency
of countries.
Following the crisis of 2008, banks
were recapitalised inadequately,
King said, especially on the conti-
nent [of Europe].
A transparent recognition of loss-
es and a substantial injection of addi-
tional capital are necessary to restore
market confidence, King said,
although he recognised that some
governments are too hard-up to fund
BY JULIAN HARRIS
UK ECONOMY
place mechanisms to ensure that

competitiveness could be rebalanced
by other means, he said, arguing
that exchange rate manipulation has
contributed significantly to the
current turmoil.
Earlier in the day Kings Bank had
come under criticism itself, as CPI
inflation climbed to 5.2 per cent, and
RPI inflation reached a 20-year high
of 5.6 per cent. Yet the governor
defended the Banks record and
recent expansion of its quantitative
easing programme.
Without monetary stimulus --
low interest rates and asset purchas-
es -- there is a risk that growth will
stall and inflation fall below our
symmetric two per cent target, he
said. Yet the current soaring infla-
tion saw Britains Misery Index
climb to yet another unenviable 19-
year high, economists said yesterday.
The index of misery was con-
firmed at its highest since the after-
math of Black Wednesday in the
autumn of 1992. The index combines
the effect of inflation with levels of
unemployment, to produce an over-
all measure of gloom.
The UK recovery was on track
until recently, King concluded last
night. But the problems in the euro
area and the marked slowing in the
world economy have lengthened the
period over which a return to nor-
mality is likely, he warned. We
must use the gravity of the global cri-
sis to provoke a bold response.
ALLISTER HEATH: P2
EUROZONE: P4, INFLATION: P6-7
News
2 CITYA.M. 19 OCTOBER 2011
Moodys cuts
Spain to A1
MOODYS Investors Service last night
cut Spains sovereign ratings by two
notches, saying high levels of debt in
the banking and corporate sectors
leave the country vulnerable to fund-
ing stress.
Worsening growth prospects for the
Eurozone will also make it more chal-
lenging for Spain to reach its ambi-
tious fiscal targets, the ratings agency
added.
Spain could be downgraded again if
the Eurozone debt crisis escalates fur-
ther, Moodys warned.
Since placing Spain's ratings under
review in late July, no credible resolu-
tion of the current sovereign debt cri-
sis has emerged, and it will in any
event take time for confidence in the
areas political cohesion and growth
prospects to be fully restored, Moodys
said in a report.
The downgrade puts more pressure
on Eurozone leaders, who will meet
this weekend to discuss a solution for
the crisis. Reports last night suggested
that Germany and France have agreed
to boost the Eurozones bailout fund
to 2 trillion, causing markets to rally.
Moodys downgrade on Spain was
the third received from the big-three
ratings agencies in the past few weeks.
Moody's was more aggressive than its
rivals, however, cutting the countrys
ratings to A1 from Aa2.
BY HARRY BANKS
EUROZONE
Inflation: an undemocratic stealth tax

INFLATION is taxation without legisla-
tion, as Milton Friedman, the Nobel
prize winning economist, once said.
He was spot on. Yesterdays figures
were truly appalling: inflation on the
retail price index measure hit 5.6 per
cent, the fastest rate for 20 years. On
the official consumer price index
measure, it reached 5.2 per cent. Over
the past 12 months, the British public
has suffered a real terms national pay
cut because prices are rising at a
much faster rate than incomes.
Average compensation went up 2.8 per
cent in cash terms but paradoxically
fell by 2.8 per cent in real terms as the
purchasing power of money slumped,
as a result of sterlings debasement.
The real value of assets and bank
accounts is also falling interest rates
are low, and their meagre income
taxed (unless sheltered in an ISA),
which means that the value of many
saving pots is being eroded by 4-5 per
cent a year. Average UK house prices
are down by 29.9 per cent in real
terms from their July 2007 peak, and
are back to September 2002 levels
after adjusting for inflation, accord-
ing to the Halifax measure (the
decline is sharp but not as pro-
nounced on other indices).
All of this means that the UK is
undergoing yet another secret, giant
act of redistribution from savers
(whose wealth is being eroded as the
purchasing power of sterling declines)
to borrowers (the value of whose debt
is gradually being cut in real terms),
from homeowners with no mortgages
(whose real terms house prices are
falling) to homeowners with mort-
gages (who are better off from lower
real debt but worse off from reduced
real house prices), and from workers
to those on benefits (whose payments
are linked to the CPI). George Osborne
is worse off because he has to pay out
more in benefits and on index-linked
gilts but he is better off because pub-
lic sector salaries and all spending
fixed in cash terms is being cut in real
terms. On balance, this could conceiv-
ably even help cut spending by more
than the 0.7 per cent planned.
Had the government passed a law
in Parliament to take money from one
group and give it to another to grab
cash from peoples bank accounts to
help pay down their neighbours
mortgages, overdrafts and credit card
bills there would have been outrage.
Had the government decreed a partial
default on the national debt (most of
which is not indexed to inflation), the
markets would have panicked. Yet
because this process is happening on
the sly, without discussion, and with
the Bank of England telling us that
this is merely a short-term blip, hardly
anybody is batting an eyelid even
though, once again, the prudent are
being mugged to bail out the impru-
dent. Inflation is not just taxation
without legislation and undemocrat-
ic: it is also the stealthiest of all taxes.
One reason why there has not been
more of public outcry is that the bal-
ance of power between savers and bor-
rowers has changed. The former have
seen their relative numbers and influ-
ence diminish; the latter have gained
clout after years of bingeing on cheap
money. Savers were also given a fillip
when RBS and Northern Rock were
bailed out; debtors now probably
think it is their turn for a handout.
But inflation violates contracts and
property rights; it creates uncertainty
and mistrust. Its costs economic as
well as moral are far greater than its
benefits. Britain needs a renewed com-
mitment to sound money and a new
war on inflation.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
CHARTER International gave its chair-
man Lars Emilson a three-year exten-
sion to his term in June, just five days
before Melrose submitted its first
takeover bid, it emerged yesterday.
The unusual arrangement could
cause headaches for Charters buyer
Colfax, even though Emilson remains
on a one-month notice period and the
same terms and conditions apply as
previously.
Charters board approved the three-
year extension to Emilsons term of
office on 23 June during a torrid week
when a profit warning in its trading
statement caused its shares to plunge
25 per cent in a day. Charters chief
executive Mike Foster resigned four
days later on 27 June, while Melrose
tabled its offer just a day after.
Charter has paid Emilson an extra
132,692 for his services from June to
September, in addition to his annual
215,000, according to the scheme of
arrangement for the sale to Colfax.
BY DAVID HELLIER AND ALISON LOCK
M&A
Charter boss in 3-year deal

Charters chairman Lars Emilson has had his term extended Picture: REX
NEWS | IN BRIEF
Bernanke urges bubble bursting
Federal Reserve chairman Ben Bernanke
said yesterday that central banks may
need to resort to monetary policy to
combat asset bubbles, although regula-
tion should be a first line of defence.
"The possibility that monetary policy
could be used directly to support finan-
cial stability goals, at least on the mar-
gin, should not be ruled out," he said at a
conference at the Boston Federal
Reserve Bank. Bernanke did not directly
discuss the outlook for the US economy
or monetary policy in his speech, which
offered thoughts about how central
banking might shift in the wake of the
financial crisis.
Groupon set for float roadshow
Discounting website Groupon is planning
to launch its IPO roadshow on Monday
or Tuesday, sources said last night. The
float is expected to value the daily deals
site at more than $10bn (6.36bn) and
is likely to be in the range of $11bn to
$12bn. Groupon filed for an IPO of up to
$750m in June but last month put it on
hold amid market volatility. Morgan
Stanley, Goldman Sachs and Credit
Suisse are leading the underwriters.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
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Spain, led by prime
minister Jose Luis
Rodriguez Zapatero,
has been hit by a
Moodys downgrade
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 Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
FRANCE WARNS OVER EURO CRISIS
France has warned that European
unity would be at risk if Eurozone
leaders failed to take bold action to
tackle its sovereign debt crisis at a
crucial summit this weekend.
President Nicolas Sarkozy said leaders
will take very important decisions in
the coming days and said the
destruction of the euro will risk con-
flict and division in Europe.
GILT BUYING COULD HIT PENSIONS
The Bank of Englands moves to stim-
ulate the economy by purchasing
gilts may raise the liabilities of com-
pany pension schemes by as much as
25bn to 30bn, according to Lindsay
Tomlinson, the outgoing chairman of
the National Association of Pension
Funds. Liabilities rise when interest
rates fall because inflation is
assumed to erode future obligations
at a slower rate.
DROPBOX CLOUD RAISES $250M
Dropbox has raised $250m in new
funding in a deal that values the digi-
tal file-sharing service at $4bn. The
firm Dropbox has rocketed in popu-
larity among users and investors. Its
service allows people to access docu-
ments, music and videos from what-
ever device they are using, and to
store them in a so-called internet
cloud. The company plans to launch
new products, make acquisitions and
increase staff from 70 to 200.
DOMINOS BEATS EXPECTATIONS
Dominos Pizza group delivered bet-
ter-than-expected quarterly profit and
said it is optimistic about sales of its
new artisan pizzas, sending its
shares up almost 8 per cent in New
York. The pizza delivery chain said Q3
sales at restaurants open at least a
year were up 3 per cent in the US and
up 8.1 per cent internationally.
Analysts said the growth in same-
restaurant sales, a gauge of perform-
ance, topped their targets.
FIRMS SHUN ON RBS AND LLOYDS
Companies are cutting their business
with Royal Bank of Scotland and
Lloyds amid fears that the cost of bor-
rowings will rise after the recent rat-
ings downgrade by Moodys. The
Association of Corporate Treasurers
told MPs that corporate borrowers
had already begun talking to rival
Japanese banks keen to secure a
stronger foothold among British busi-
nesses.
FRENCH FURY OVER DOING UP RITZ
Mohammed Al Fayed set off a storm
of protest in France yesterday when
he announced the closure of the Ritz
for 27 months while it undergoes a
renovation. The hotel, where Diana,
Princess of Wales, was staying on the
night she died said that all but a few
dozen of its 500 staff would be laid
off. Union official Jacques Lebreton
said staff should be allowed to return.
GLAXO DRUG HALVES MALARIA RISK
GlaxoSmithKlines trial malaria vac-
cine halved the risk of African chil-
dren getting malaria in trials, but the
drug giant has said it will not make a
profit from the vaccine. GSK, along
with African research centres and the
PATH Malaria Vaccine Initiative, is
researching a vaccine to protect chil-
dren against the mosquito-borne dis-
ease, which is responsible for almost
800,000 deaths each year.
ICB REPORT ASTONISHES ME - LAWSON
Former chancellor Lord Lawson has
launched a scathing attack on the
Independent Commission on
Bankings final report, saying he was
astonished by some of its proposals.
He questioned Sir John Vickers and
said he was surprised the commission
had not urged the full separation of
retail and investment banking and
had supported one-stop shops.
VIACOM SEEKS TO REVIVE LAWSUIT
A judges order dismissing an
infringement lawsuit against
Googles YouTube last year should be
overturned because it endangers the
rights of owners of television shows
and other copyrighted materials, a
lawyer for Viacom said. Viacom is
seeking to revive its lawsuit over
alleged unauthorised posting of its
content on the video-sharing site.
GRUPO MEXICO OWES $1.3BN - JUDGE
Delaware judge said Grupo Mexico
SAB owes more than $1.3 billion to
minority shareholders of its
Southern Peru Copper unit in a case
stemming from a corporate restruc-
turing that contributed to the bank-
ruptcy of another of its mining
subsidiaries, Asarco. Leo Strine of
Delawares Court of Chancery said
Grupo Mexico is on the hook to SPC's
minority shareholders
WHAT THE OTHER PAPERS SAY THIS MORNING
BANK of America/Merrill Lynch
(BoA/ML) reported a dramatic rise in
profits yesterday, with earnings rising
from a $5.9bn (3.75bn) loss last year to
$7.4bn in pre-tax profit for the third
quarter of this year.
However, $1.7bn of the profit figure
was due to an accounting gain that
has also affected the results of other
US banks reporting this quarter. And
$4.5bn in earnings was due to a rise in
the value of its structured liabilities.
And $3.6bn of its earnings came
from a one-off sale of its stake in China
Construction Bank, which it offloaded
quickly over the summer in a bid to
placate panicking investors over its
capital levels.
Our focus this quarter was on
strengthening the balance sheet by
selling non-core assets and building
capital, said chief financial officer
Bruce Thompson, reporting a core tier
one capital ratio of 8.65 per cent. The
bank also cut its balance sheet by
$42bn over the quarter.
However, BoAs investment banking
business, which includes Merrill
Lynch, reported a sharp drop-off in rev-
enues, in line with the performance of
many rivals.
Revenues fell by over a quarter to
$5.22bn and pre-tax profits fell from
$2.9bn to $727m. The bank blamed
the figures on the fact that risk aver-
sion has [slowed] customer activity.
The investment bank results also
included $1.7bn of the pre-tax account-
ing gain reflected in the groups
results.
Accounting
gains prop up
BoA earnings
THE US pushed through its toughest
measures yet to curtail speculation in
commodity markets in a tight vote yes-
terday, likely shifting the focus of a
fierce four-year debate from the regu-
lators to the courts.
In a measure decried by Wall Street
and trading companies as a misguided
political attempt to cap soaring oil and
grain prices, the Commodity Futures
Trading Commission (CFTC) voted 3-2
to approve position limits that will
cap the number of futures and swaps
contracts that a single trader can hold.
The rule, which was being modified
until the last minute, offers some
relief for the industry, relenting on
several provisions, as expected.
The divisiveness was stark from the
opening, making a legal challenge
more likely. That would be another
hurdle for CFTC chair Gary Gensler,
who is struggling against Republicans
and Wall Street to put in place rules
required by recent financial reforms.
CFTC approves plans to
crackdown on spectators
CFTC chair Gensler has voted for tougher rules on commodity speculation
BY JULIET SAMUEL
BANKING
News
ANALYSIS l Bank of America Corp (BAC.N)
USD
13Oct 12Oct 14Oct 18Oct 17Oct
6.80
6.70
6.60
6.50
6.40
6.30
6.20
6.10
6.64
18 Oct
THE EU agreed last night to ban naked
credit default swaps (CDS) on sover-
eign debt in an attempt to curb what
some policymakers see as hedge fund
bets on the Eurozone crisis.
The measure had been deadlocked
for months because of a split between
the European Parliament and EU
states, which have joint say.
The countries that were against a
CDS ban agreed to it after the parlia-
ment said they could opt out if the
curb was damaging their government
debt market.
It is a very ambitious accord which
strengthens financial stability and
strengthens the single market for
financial services, Michel Barnier, the
EUs financial services chief, said.
The law, which also includes report-
ing requirements on shortselling
shares, will take effect from 1
November 2012 on new contracts.
Andrew Baker, chief executive of the
Alternative Investment Management
Association, said the ban could
increase pressure on already stretched
lending markets.
It could not only reduce liquidity
and increase volatility in debt markets,
but also increase government borrow-
ing costs and reduce real economy
investments in EU member states,he
said.
EU reaches deal
on naked short
selling ban law
EUROZONE
BY HARRY BANKS
REGULATION
STANDARD & Poors downgraded 24

Italian banks and financial institu-
tions last night, citing renewed mar-
ket tensions and lower growth
prospects.
It also raised the risk assessment on
Italys banking industry from group 2
to group 3, which could prompt high-
er borrowing costs.
Meanwhile jittery investors moved
out of French bonds yesterday. The
move was prompted by Moodys
announcing on Monday that it may
place Frances AAA credit rating on
downgrade watch in coming months
if the cost of funding the Eurozone
bailouts costs too much.
The warning pushed 10-year French
bond spreads over German bunds up
18 basis points (bps) to 114bps, its high-
est since 1992.
Finance minster Francois Baroin
said that France may not meet 2012s
1.75 per cent GDP growth forecast.
Nonetheless, he maintained that the
countrys rating was solid.
Elsewhere, Germanys ZEW indica-
tor of economic sentiment decreased
by five points in October. The eighth
consecutive monthly fall brings the
index down to minus 48.3 points, its
lowest in three years. This suggests a
soft recession is likely.
A Spanish auction of 1bn of 18-
month Spanish debt yesterday saw
yields fall on those seen in September,
down to 3.801 per cent from 3.807.
Greece sold 1.625bn of three-month
treasury bills at 4.61 per cent up five
bps on last months sale.
Italys banks
facing higher
funding costs
CHINAS economy grew 9.1 per cent
in the third quarter from a year earli-
er, its weakest pace since early 2009,
and just below market forecasts.
The countrys growth slowed from
9.5 per cent in the second quarter of
the year, according to official figures
released yesterday.
The bearish news contributed to
some sharp drops in commodity
prices during yesterdays trading,
and hit stocks in Asia and through-
out the world. The MSCI Asia APEX
50 lost over three per cent, while in
Japan the Nikkei was down by more
than 1.5 per cent.
Gold dropped nearly 1.5 per cent
as investors worried about a possible
slowdown in China.
And copper often a bellwether of
global economic health, and heavily
consumed in China lost over half a
per cent during the day.
Brent crude for December fell
below the 50-day moving average to
touch a seven-day low of $108.45 in
morning trading in the US, yet recov-
ered modestly in later trading.
Slowing growth in China has
given the bears new reasons to roar
this morning, RBC said in a note.
The GDP figure has sparked con-
cerns that Europes debt crisis is
dragging on the global economy.
Slowing growth
in China spooks
global investors
Chinese Premier Wen Jiabao faces slowing growth Picture: REUTERS
BY TIM WALLACE
EUROZONE
CHINESE ECONOMY
News
Worlds largest exporter suffering
from contraction in global demand
W
HILE Chinas 9.1 per cent
growth recorded for the
third quarter of the year
may have disappointed
analysts -- with some still question-
ing the reliability of the govern-
ments uber-fast estimates -- it is little
surprise that the worlds largest
exporter is facing a hit from the
global economic slowdown.
The third quarter involved two
months of narrowing in Chinas
trade surplus, with annual export
growth plummeting in September
down to 17.1 per cent, from a 24.5
per cent lift in August.
Government statisticians also
noted yesterday that imports growth
has outpaced exports this year, possi-
bly knocking 0.1 per cent off its GDP
expansion. As real estate construc-
tion is also slowing, expect further
slips in the (albeit questioned) stats
in the coming months.
BOTTOMLINE
Analysis by Julian Harris
ANALYSIS l French yield spread vs bunds
Nov 2011 Mar May Sep Jul
0.50
0.00
1.00
%
ANALYSIS l International inflation rates
Annual
inflation
rate %
00 02 04 06 08 10 12
10
8
6
4
2
0
-2
Japan US
UK Eurozone
ANALYSIS l UK consumer, energy and food prices
%
Sep10 Oct Nov Dec Jan11 Feb Mar Apr May Jun Jul Aug Sep
16
14
20
18
12
10
8
6
4
2
0
CPI Energy Food & non-alcoholic
beverages
ANALYSIS l UK earnings and inflation
%
5.2%
1.8%
02 03 04 05 06 07 08 09 10 11
6
4
3
5
2
1
0
UK inflation - CPI YoY change
Average weekly earnings excluding
bonus - YoY change (3m average)
News
6
CITY VIEWS: HAVE YOU NOTICED RISING PRICES IN
YOUR EVERYDAY LIFE?
Interviews by Phoebe Torrance
Yes, on a daily basis we hear about extremely high
rises in every day living expenses, it doesnt worry
me just yet but if it gets any worse then it will be
something we seriously need to worry about.
DAVID PHILLIPS | JRP UNDERWRITING
* These views are those of the individuals above and not necessarily those of their company.
I havent particularly noticed a large increase in day-to-day
items, the City has always been expensive and doesnt
change a lot. If there was a significant increase then
there would be something to worry about.
SHANE KILLEEN | PERCEPTION
PRICE HIKE BRITAIN
CONSUMER prices increased at a
record rate in the year to September,
the Office for National Statistics (ONS)
said yesterday.
The consumer price index (CPI) rose
to 5.2 per cent the highest since it
was introduced in 1996, and equal to
the peak in September 2008.
The figure was 4.5 per cent in the
year to August, making this the second
largest monthly jump in the rate ever.
Inflation was last within its target of
two per cent, plus or minus one per
cent, in December 2009.
The cost of living, measured by the
retail price index (RPI), rose by 5.6 per
cent, up from 5.2 per cent in August
and the highest annual since 1991.
The tax and price index (TPI), which
also takes taxation into account, rose
by 5.3 per cent -- up from 4.8 per cent
in the previous month.
Meanwhile average weekly wages
failed to keep pace, rising by just 1.5
per cent in the year to August in the
private sector and 2.2 per cent in the
public sector. Energy prices accounted
for 67 per cent of the increase in CPI
from August to September. Gas and
electricity prices soared by 18.3 per
cent in the 12 months to September.
In a speech last night Bank of
England governor Mervyn King (pic-
tured left, with chancellor George
Osborne) restated his view that domes-
tic demand remains low and tempo-
rary factors have pushed up inflation.
When last Januarys VAT rise drops
out of the index this January, all other
things being equal, inflation will fall
by 0.76 percentage points, and com-
modities prices appear to have slowed.
Furthermore, food prices, which
account for 10 per cent of the CPI, may
fall soon as supermarkets have
announced a price war.
However, falls in inflation remain
uncertain core inflation increased by
3.3 per cent in the year to September,
up on 3.1 per cent in August, largely
driven by air fares.
Fastest price
rises since CPI
began in 1996
BENEFITS will cost billions more due
to soaring inflation, the Institute for
Fiscal Studies (IFS) claimed yesterday.
Pensions, job-seekers allowance,
incapacity benefit and severe disability
allowance are all linked with con-
sumer price index (CPI) inflation. Next
Aprils increases are calculated using
Septembers rate, the highest ever.
When the Office for Budget
Responsibility increased its inflation
forecasts for 2011 from 3.1 per cent last
November to 4.3 per cent in March, it
added at least 1.2bn to 2012s expect-
ed social security and tax credits bill.
As CPI inflation has come in higher
still at 5.2 per cent, the IFS believes
1.8bn more will be added to the bill.
For next years calculations, the gov-
ernment switched from the RPI meas-
ure which came in at 5.6 per cent to
the highest of CPI, average earnings or
2.5 per cent.
As a result the basic pension will rise
by 5.31 to 107.46 per week. It would
have risen by 41p more using RPI.
However, business rates remain
linked to the RPI.
A 5.6 per cent increase in rates
amounts to 350m for retailers alone,
according to the British Retail
Consortium, which says that is the
equivalent of the wages of 16,000 shop
workers.
Inflation-linked
benefits bill set
to soar in 2012
BY TIM WALLACE
UK ECONOMY
UK ECONOMY
News
CITYA.M. 19 OCTOBER 2011 7
E
le
c
tric
ity
&
g
a
s
1
8
.
3
%
Petrol
1
7
.9
%
Cigarettes
& alcohol
10
%
Clothes
& shoes
2.1%
Transport
8
.9
%
Food
6
%
ANNUAL RISE IN PRICES
CANACCORD Financial, the Canadian
financial services group, was waiting
on the sidelines yesterday as Investecs
200m-plus all-share takeover of
Evolution Group hit problems.
Canaccord pulled out of the bidding
last month, leaving Investec as pre-
ferred bidder.
Under Takeover Panel rules
Canaccord is barred from relaunching
a takeover for six months but yester-
day those close to the process said the
firm might be allowed to bid again if
Investecs bid failed to gain support at
next weeks shareholder meeting.
Investecs bid was thrown into con-
fusion after Evolutions biggest
investor, fund manager Aberforth,
unexpectedly pulled its support.
The about-turn sparked fears that
others could follow suit and Investecs
offer, which requires 75 per cent of
investors to vote for it, could fail.
Aberforth is understood to be
unhappy that Investecs share price
has fallen 11 per cent since it made the
share offer, cutting its value by a fifth.
They dont want to sell at that
price, one source told City A.M. It is
not a price you would sell assets at.
Other major investors are known to
be considering withdrawing their sup-
port. Share options granted to
Evolution chief executive Alex Snow
just days before bid talks were revealed
also caused some unease.
Andy Brough at Schroders told City
A.M. Investecs bid remained the only
one on the table. At the end of the
party you dont always go home with
the prettiest girl, he said.
Canaccord on
stand-by for
Evolution bid
BORIS Johnson yesterday attacked
one of George Osbornes key posi-
tions on the Eurozone crisis when he
said that any attempts at greater fis-
cal union would be absolutely
crazy.
Speaking at a journalists lunch in
Westminster, the Mayor of London
said: I think its absolutely crazy to
decide the solution to the euro crisis
is to intensify fiscal union.
I cant for the life of me see how
that is going to work in the long-
term.
The chancellor has consistently
called on Eurozone countries to pur-
sue greater fiscal union to help
resolve the escalating debt crisis in
the region.
Johnson, who dismissed sugges-
tions he would run against Osborne
in a future Tory leadership contest,
also repeated calls for the govern-
ment to scrap the 50p rate.
Someones got to say it and it
might as well be me, he said.
Johnson also made a plea for the
Mayor of London to be granted pow-
ers over education, saying there was
a real risk that Londons teenagers
were missing out on opportunities
because they didnt have the same
work ethic as some foreign workers
in the UK.
Mayor attacks
chancellor on
Eurozone ideas
BY ALISON LOCK AND DAVID HELLIER
FINANCIAL SERVICES
POLITICS
News
ANTI-CAPITALIST protestors outside St Pauls Cathedral yesterday said the number of tents
in their camp has now reached 150. The fourth day of demonstrations passed peacefully
with no arrests made as the group of anti-capitalists organised themselves for a long stay.
Picture: Laura Lean / City A.M.
ANALYSIS l Evolution Group PLC
p
86
85
84
83
82
81
80
79
80.25
18 Oct
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SOARING demand in the emerging
markets helped Coca-Cola post a
strong increase in sales yesterday, but
the drinks giant warned it is about to
take a hit on foreign exchange.
Sales in the third quarter rose seven
per cent by volume in Latin America,
Eurasia and Africa and six per cent in
the Pacific region, helping offset weak-
er growth of two per cent in Europe
and one per cent in America, exclud-
ing Cokes new cross-licensed brands.
The group, which is the worlds
largest soft drinks producer, is open to
the effects of currency shifts and hedg-
ing strategies because the majority of
its sales come from outside the US.
It increased global sales by five per
cent and revenue by 45 per cent to
$12.25bn (7.8bn), boosted by last
years acquisition of its North
American bottling operations, price
rises and a five percentage-point cur-
rency benefit.
Profits were up eight per cent to
$2.22bn but Coke warned: Currencies
will adversely impact our fourth quar-
ter operating income by low to mid
single digits while still providing a low
to mid single-digit positive impact for
the full year.
Muhtar Kent, the British-educated
chief executive, said the results were a
testament to Cokes focused system
vision, strong brands and solid execu-
tion in a volatile marketplace.
Cokes global
sales fizz up
amid turmoil
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BY PETER EDWARDS
RETAIL
JOHNSON & Johnsons third-quarter

earnings fell on lower US sales, but the
weaker dollar and strong demand
overseas helped the company beat
Wall Street forecasts.
J&J earned $3.2bn (2.04bn), or $1.15
per share, compared with $3.42bn or
$1.23 per share a year earlier.
Excluding special items, J&J earned
$1.24 per share. Analysts on average
had expected $1.21.
Revenue rose 6.8 per cent to $16bn,
just shy of Wall Street estimates of
$16.02bn. It would have risen just 2.6
per cent if not for the weaker dollar,
which boosts the value of sales in over-
seas markets.
The companys US sales slipped 3.7
per cent, hurt by declines in all three
product segments: prescription drugs,
consumer products and medical
devices.
Johnson & Johnson profit falls
but still beats Wall St forecasts
PHARMA
YAHOO last night paid the price for a

summer of discontent and weak
online advertising as it reported a
third quarter slump.
Profits for the quarter, the last
under chief executive Carol Bartz, who
was fired in September, fell 26 per cent
to $293m (186.57m), or 23 cents per
share. Net revenue, which excludes
fees paid to partner websites, dropped
4.5 per cent to $1.07bn on the same
period last year.
The firm, which has appointed
finance director Tim Morse as interim
chief executive, predicted fourth-quar-
ter net revenue of $1.125bn to
$1.235bn. It has retained investment
banking firm Allen & Co as it conducts
a strategic review of its business,
which could see co-founders Jerry
Yang and David Filo take control in a
$20bn deal with private equity.
Meanwhile chipmaker Intel took a
more upbeat view as demand for its
Notebook helped it record quarterly
results. It said sales for the three
months to the end of September
would be between $14.2bn and
$15.2bn, despite concerns over its abil-
ity to compete with smartphones such
as Apples iPad and Googles Android.
Graham Palmer, managing director
of Intel UK, told City A. M. that British
consumer confidence was returning
slightly quicker than in the US or the
rest of Western Europe.
Yahoo suffers after chiefs
exit but Intel upbeat over UK
BY PETER EDWARDS
TECHNOLOGY
News
Danger ahead: Coca-Cola boss Muhtar Kent has warned of the impact of currency swings
ANALYSIS l Coca Cola Co
USD
67.50
67.25
67.00
66.50
66.75
68.00
67.75
66.74
18 Oct
MAYFAIRS
FINANCIERS
HELP EAT
ALL THE PIES
PIES AND prosecco were yesterday on
the menu at Dartmouth House at
Mayfairs answer to the long-running
annual Gulls Eggs lunch.
Mayfair hedge fund managers met
hotel brokers at the Macmillan Cancer
Support fundraiser, including Jones
Lang LaSalles Jonathan Goldman, who
has a personal connection to the cause,
having recently endured a 20-hour
operation for throat cancer.
Goldman, whose licensed leisure and
hotels team recently sold the Sanderson,
St Martins Lane and W hotels to Middle
East sovereign wealth funds, was a guest
of Puma Hotels director Peter Procopis
also a cancer survivor who was recently
enlisted to the Macmillan committee by
Shore Capitals chairman David Kaye.
Also at the event were Anton Black and
Dominic Epton of Rothschild, while jew-
ellery designer Victoria Tryon and her
brother Edward, the owner of Lichfields,
caught up with Amber Aikens, the
estranged wife of chef Tom Aikens.
Chairman of the committee for the last
two years is Zoe Couper, now known as
Zoe de Givenchy following her June wed-
ding to JP Morgans private banking head
petitive bidding situation.
Meanwhile, across town in Islington
Green, a buyer has been found for the for-
mer premises of the Playtime Bar the
brainchild of Boujis owner Ignite Group,
led by chief executive Matt Hermer, which
stopped trading last Friday. Step forward
French bistro chain Cote, which said the
4,000 sq ft unit really hit the spot for its
twenty-ninth outlet.
CHILD SUPPORT
CAMPAIGNING body ECPAT UK is lobby-
ing the government for more support
for child victims of trafficking, which
is why it yesterday summoned MPs to
the river for the naming of its Row to
Freedom boat The Guardian.
Christening the boat on Anti-
Slavery Day was Olympian Matthew
Pinsent, ahead of its awareness-raising
trip across the Atlantic this winter. The
vessels all-female crew of six includes
Katie Pattison-Hart, currently taking a
year out from corporate life after set-
ting up a branch of Lloyds TSB in the
United Arab Emirates.
Olivier de Givenchy on a beach in the
Bahamas, where the couple have a home.
We wanted something that felt a bit
more barefoot, less formal, the founder
of Couper and Partners and Financial
Jam Sessions told The Capitalist.
BORIS EXPOSED
SONIA Purnell left nothing out in her
biography of Boris Johnson the journal-
istic chicanery, rivalries with fellow
Tories, scandal at City Hall and, yes, that
friendship with the Spectators femme
fatale Petronella Wyatt.
As Channel 4s political correspondent
Michael Crick observed: Sonia must have
had huge fun writing this wonderful
book. The only person who wont be
amused is Boris himself.
So it was perhaps no surprise that the
London mayor (right) was a no-show at
last nights book launch for Just Boris at
the Corinthia Hotel. He was invited, but
he never RSVPd, said a publicist for-
lornly, leaving the ex-Sun editor David
Yelland and Boriss rival 2012 mayoral
candidates Ken Livingstone and Brian
Paddick to fill the charisma vacuum.
LAST ORDERS
GOOD news for fans of the top-
end City curry house Cinnamon
Kitchen. The restaurants chief
executive Vivek Singh has
expanded his empire by sign-
ing a 35-year lease for the
Red Bar in Kingly Street,
after an extremely com-
Macmillan supporters (L-R): Victoria Tryon, Edward Tryon, Zoe de Givenchy and Amber Aikens
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
Olympic rower Matthew Pinsent with the six-strong Row to Freedom crew
The Chartered Institute for Securities &
Investment (CISI) is pleased to announce today
the launch of a new qualifcation
&RPEDWLQJ)LQDQFLDO&ULPH
The qualifcation has been developed by established international
specialists and thoroughly tackles the fnancial crime agenda,
takes a global view of transnational crime and illustrates practical
defences including the Bribery Act (2010).
This qualifcation is now available and it can be taken worldwide.
For more details
visit cisi.org/cfc

Fraud alone is assessed to cost the United Kingdom

over 38bn. It is vital that we all work together to
confront this threat. I believe that the efective
training of staf and provision of professional
accreditation, such as the CISI qualifcation
Combating Financial Crime, is an important step in
ensuring organisations are equipped to provide the
best possible response to combat fnancial crime.
Adrian Leppard,
Commissioner of Policy for the City of London
BPS RUSSIAN joint venture TNK-BP
said it may join a $13bn (8.2bn) law-
suit brought by a minority sharehold-
er over the oil majors failed alliance
with state-controlled Rosneft.
TNK-BP Holding, the main sub-
sidiary of TNK-BP, said it would con-
sider the question of whether or not to
join the lawsuit being put forward by
one of its minority shareholders at a
board meeting being held on 24
October.
However, it is unclear whether the
motion will go-ahead because it would
require the approval of at least eight
out of the nine directors on TNK-BP
Holdings board to vote in its favour, a
spokesman for BP said.
BP and AAR, the consortium of four
Russian billionaire partners. each have
four seats on the board of TNK-BP
Holding. The sole independent direc-
tor is David Lasfargue.
Minority shareholder Andrei
Prokhorov has filed two lawsuits for
$2.8bn and $13bn against the oil
major over alleged loss following BPs
failed deal with Rosneft.
It was unclear yesterday which suit
the board of TNK-BP Holding have
been asked to consider joining, howev-
er BP has rejected both as absurd and
groundless.
TNK-BP may join lawsuit
for damages against BP
BY KASMIRA JEFFORD
OIL & GAS
News
JULIAN BARNES WINS MAN BOOKER PRIZE
AUTHOR and bookmakers favourite Julian Barnes won the Man Booker Prize for fiction yes-
terday, despite once dismissing the coveted award as posh bingo. The 65-year-old won with
The Sense of an Ending, which at 150 pages was described by one review as a novella. It
was his fourth time on the Booker shortlist having previously been nominated for Flauberts
Parrot in 1984, England, England in 1998 and Arthur and George in 2005. Pic: REUTERS
Book now at KLM.com
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t c a x
JAPANESE camera-maker Olympus
says it is considering taking legal
action against its ousted chief execu-
tive after he went public with con-
cerns over his former employers
corporate governance.
Michael Woodford was axed after
just two weeks in the top job after
clashing with the board over alleged-
ly excessive payments made to advis-
ers during a 2008 acquisition.
He held meetings with the Serious
Fraud Office in the UK yesterday,
claiming a report carried out by PwC
had raised concerns over the deal.
Now Olympus is threatening legal
action against Woodford for leaking
confidential information.
His departure was an acrimonious
end to a 30-year career, in which he
rose further than all but a handful of
westerners in a country famed for its
impenetrable corporate culture.
The ongoing saga has put a spot-
light on what critics say is a key weak-
ness of Japanese-style management,
which often lacks strong independ-
ent oversight at board level.
Twelve of Olympus 15 board mem-
bers are company executives, and one
of its three outside directors failed to
pass a test of independence set by top
proxy voting firms.
Chairman Tsuyoshi Kikukawa, who
initially stepped aside to create space
for Woodford, has resumed the chief
executive role, increasing pressure on
the firm to create a structure in
which his authority can be chal-
lenged.
Olympus may
sue its axed
former boss
Michael Woodford has met with the SFO since being sacked Picture: REUTERS
BY STEVE DINNEEN
TECHNOLOGY
News
ANALYSIS l Olympus Corp

2,400
2,000
1,600
1,417
18 Oct
TIME LINE | THE RISE AND
FALL OF MICHAEL WOODFORD
1981
Michael Woodford joins Olympus. Over
the next three decades he becomes the
archetypal company man, known for
his robust, no-nonsense management
style.
April 2011
Woodford takes over as president of
the company, becoming one of only a
handful of non-Japanese to run a large
Japanese corporation.
September 2011
Woodford is promoted to chief execu-
tive as well as maintaining his role as
chairman. His appointment is hailed as
giving Olympus more executive autono-
my.
October 2011
Woodford reportedly asks longstand-
ing chairman Tsuyoshi Kikukawa to
resign over payments made to advisors
during a $2bn acquisition in 2008, fol-
lowing an independent report by PwC.
14 October 2011
Woodford is axed after the board unan-
imously backs Kikukawa. The move
sends shares in the firm plummeting.
Olympus says Woodford was dismissed
because of a clash of management
styles.
17 October 2011
Olympus tanks even further, losing a
quarter of its value. Woodford makes it
clear he will not let the issue lie, hand-
ing documents to the Serious Fraud
Office in the UK. Olympus maintains
there is no evidence of wrongdoing.
ITALYS financial police seized funds
worth 245m (214.3m) at UniCredit
on yesterday in a tax fraud probe and
the banks former chief executive,
Alessandro Profumo, was placed
under investigation, judicial sources
said.
The financial police said in a state-
ment the funds were seized at a lead-
ing bank, in a probe over fraudulent
conduct via a complex series of inter-
national operations that made use of
corporate structures and financial
instruments.
The alleged fraud related to tax dec-
larations for 2007 and 2008, it said.
UniCredit denied any wrongdoing
in the matter and said it was sur-
prised by the authorities decision.
UniCredit is very surprised by this
initiative and remains convinced that
both it and its employees acted cor-
rectly and properly in relation to this
matter, a spokeswoman said.
The investigation centres on sus-
pected tax evasion stemming from a
complex financial scheme, known as
Project Brontos, set up by Barclay and
used by UniCredit.
One of the judicial sources said
Profumo had been put under investi-
gation because, as chief executive of
the bank at the time, he authorised
using the scheme.
A spokesman for Barclays declined
to comment. Profumo, who stepped
down last year after a row with share-
holders, was not immediately avail-
able for comment.
UniCredit and
Profumo hit
by tax probe
BY HARRY BANKS
BANKING
News
15
THIS week we are asking members
of our readers panel whether
Chinas economic growth is losing
steam, after it posted lower-than
expected GDP growth of 9.1 per
cent in the third quarter.
If the spark does go out of the
Chinese economy, what are the
repercussions for the UK and
Europe?
To answer these questions and
others, readers can apply to join
the Voice of the City panel made
up exclusively of those working in
business and financial services in
and around the City by applying
at www.cityam.com/panel
The results of the poll will be
printed in Mondays edition of City
A.M.
In partnership with
PoliticsHome.com PoliticsHome.com
Is Chinas soaring economic
growth losing momentum?
Apply to join today at www.cityam.com/panel
BELLWAY hiked its dividend by nearly
a third after strong sales in London
and the south east helped boost full-
year profits by 51 per cent beating
market expectations.
The UKs fourth largest house-
builder by market capital reported pre-
tax profits of 67.2m for the 12
months to 31 July, up from 44.4m the
previous year.
John Watson, Bellways chief execu-
tive, said sales in the first nine weeks
of the new financial year were up 11
per cent compared with the same peri-
od in 2010, boosted by the opening of
new selling outlets.
The group ended the year operat-
ing from 205 outlets, having started
with 185 and, with the benefit of a
strong balance sheet, we are in a good
position to increase our land bank and
sales outlets in the future, Watson
said.
The number of completed sales rose
to 4,922, up seven per cent from last
year, but still below record highs of
7,638 homes in 2007.
Housebuilders have suffered in
recent years as a slowdown in govern-
ment spending, the lack of mortgages
and economic uncertainty continues
to hit sales prompting firms to shift
their product mix towards more popu-
lar family-sized homes and focus their
activities on the more lucrative south-
east.
The group increased its final divi-
dend by 31.3 per cent from 6.7p to 8.8p.
Shares rose 3.10 per cent to 698.50p
last night.
Bellway lifts
dividend as
profits jump
DROPBOX, the company behind the
virtual file cabinet that allows users
to access documents, photos and
videos from different devices, said it
had raised $250m (159m) in fund-
ing.
Index Ventures led the series B
round from participants that also
included Benchmark Capital,
Goldman Sachs, Greylock Partners,
Institutional Venture Partners, RIT
Capital Partners, and Valiant Capital
Partners.
Dropbox plans to tap the money
for expansion through acquisitions
and partnerships as well as for new
hires. The San Francisco-based com-
pany said it had 45m users who
access 1bn files every three days. It
provides a certain amount of storage
for free before charging people for
extra capacity.
It is run on the so-called fremium
model, offering two gigabytes of stor-
age for free, while 50 gigabytes costs
$9.99 a month and 100 gigabytes
costs $19.99 a month.
Dropbox, which has not disclosed
its revenue, competes with other
services like Google Incs free Docs.
So far, Dropbox has raised $257.2m
that includes early investors Sequoia
Capital, Accel Partners, and Hadi and
Ali Partovi.
Dropbox raises
$250m funding
for expansion
BY KASMIRA JEFFORD
CONSTRUCTION
TECHNOLOGY
News
ANALYST VIEWS: DO BELLWAYS RESULTS
SPELL GROWTH FOR THIS YEAR?Interviews by Kasmira Jefford
CHRIS MILLINGTON | NUMIS SECURITIES

Bellway's full year results are strong and we have increased our 2012 esti-
mates although we feel that the risk remains on the upside. The group has started
the year well with the value of sales reservations up 21 per cent in the first
nine weeks of the year, which should support good top-line growth.
Bellways CEO John Watson said it planned to open 15 new outlets this year.
ANALYSIS l Bellway PLC
p
720
700
680
698.50
18 Oct
MIKE BESSELL | EVOLUTION SECURITIES

A very solid set of results. We see Bellway as a low risk, high quality name
in this space, and todays announcement reinforces that view. Net cash of 3m with
improving profitability from continued improvements in the land mix high-
lights the strength of the business from here.
CHARLIE CAMPBELL | LIBERUM

Bellway is rightly seen as the most cautious of the housebuilders, so the
market should take note of the dividend surprise (10 per cent ahead of consensus)
and that the statement talks of being confident in delivering sales
growth and margin improvements.
MT4
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WHITBREAD yesterday reported fore-
cast busting first-half pre-tax profits
and ramped up its interim dividend.
The performance of its Premier Inn
and Costa Coffee chains fuelled the
rise. Whitbread, which also operates
the Beefeater and Brewers Fayre pub
restaurant chains, said underlying pre-
tax profits rose 15.2 per cent to
174.9m in the six months to 1
September against analysts forecasts
of 167m.
Total group sales increased 10.7 per
cent to 891.3m. Premier Inn sales
were up 10.6 per cent to 393.4m,
while Costa rose 26.3 per cent to
250.8m.
Whitbread said Premier Inn had
benefited from good demand from
business customers, particularly in
London which was proving resilient.
This is a good set of results demon-
strating the strength of our brands in
tough market conditions, said chair-
man Anthony Habgood.
The company said it would pay an
interim dividend of 17.5p per share, up
from 11.25p last year.
Whitbread in
dividend hike
as profits lift
RETAILER Matalan said yesterday it
remained cautious on its outlook
after reported a 63 per cent fall in
earnings for the second quarter.
Ebitda Earnings before interest,
taxes, depreciation plunged to
13.6m in the 13 weeks to 17 August.
Matalan blamed the tough climate,
promotional activity and higher
input costs. Total revenue dropped
1.7 per cent to 258.5m. The retailer
saw online sales double.
The retailer said that September
started strongly, although this was
hampered by the unseasonably hot
and sunny weather in the last week.
For the 26 weeks to 27 August sales
fell 1.7 per cent to 526.6m. Ebitda for
the same period slumped 47 per cent
from 77.1m to 41.2m.
Matalan said June was a particu-
larly difficult month due to sales at
competitors starting earlier than last
year.
But the retailer said it started to see
improvements in like-for-like trading
in July after implementing its Line &
Price strategy. The improvement also
continued into August.
Hilco buys Irish company
A-wear from Alchemy
IRISH fashion retailer A-wear has
been acquired for an undisclosed
sum by restructuring specialist Hilco
Ireland.
A-wear has 39 stores throughout
Ireland and three in the UK as well as
an online and wholesale businesses.
Hilco said that its Irish arm has
provided extended working capital
facilities to A-wear to facilitate the
business financial needs.
Hilco bought the business from pri-
vate equity group Alchemy.
The indebted retailer has been
researching refinancing options over
recent months. But it rejected any sug-
gestion that it was under threat of
administration.
Hilco chief executive Paul
McGowan said: We are delighted to
have this opportunity to acquire one
of Irelands strongest retail brands.
A-wears online shop includes a
number of discounts including deal
for students.
A-wear joint chief executive Mark
Naughton-Rumbo said: This sale and
the provision of additional working
capital is an important step for the
company, and I would like to thank all
of our lenders as well as our investors,
for their tremendous efforts in com-
pleting this transaction.
Matalan warns of
tough times ahead
BY JOHN DUNNE
LEISURE
FRENCH food group Danone gave a

confident outlook for 2012 yesterday
and said its water business was still
strategic, playing down a report it was
in talks on a disposal.
The worlds largest yoghurt maker,
whose brands include Actimel and
Activia, said it was positive for next
year on the back of robust growth in
emerging markets.
Finance chief Pierre-Andre Terisse
declined comment on a report
Danone was in talks with Japans
Suntory Holdings to sell water assets.
Danone upbeat
amid talk of
water disposal
RETAIL
CONSUMER
RETAIL
News
ANALYSIS l Whitbread
p
1,660
1,620
1,635.00
18 Oct
LVMH, the worlds largest luxury
goods company, posted forecast-beat-
ing third-quarter sales growth yester-
day and said it was confident for the
rest of 2011, in the latest sign of
wealthy shoppers resilient appetite
for high-end goods.
The Louis Vuitton maker posted a
15 per cent sales gain on a like-for-like
basis, following strong results from
Burberry last week. The numbers
augur well for other luxury fashion
brands and retailers even amid nag-
ging signs that the broader economy
is in danger of slipping into recession.
Sales rose to 6.01bn (5.23bn) in
the three months to 30 September,
beating consensus of 5.8bn. LVMH
said the first nine months of the year
confirmed its confidence for the full
year
LVMH said the trend in the third
quarter matched the first half, with
momentum in Asia, Europe and the
United States and a rebound in Japan
from the slump following the earth-
quake disaster..
Louis Vuitton
owner bullish
as sales surge
BY JOHN DUNNE
RETAIL
LVMH, which owns Louis Vuitton (modelled above), grew sales by 15 per cent Picture: REX
Terms apply. Subject to credit check.
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News
NEWS | IN BRIEF
SocialGo soars on product launch
SocialGo, the developer and provider of
software that allows groups to build their
own online social networks, yesterday
released its new social networking soft-
ware product. The launch of SocialGO
Version 2 sent shares on the rise, to close
up by almost 20 per cent. The new product
allows customers to build entire websites
and can connect to Facebook and Twitter.
BBX operating system unveiled
Research In Motion will introduce souped-
up operating software for its BlackBerry
smartphone and PlayBook tablet designed
to make both more formidable competitors
to Apple and Google devices. At a develop-
ers conference in San Francisco, the
Canadian company said yesterday it would
install its new BBX platform in next-gener-
ation devices but provided no timetable.
@
@
@
MORE NEWS
ONLINE
www.cityam.com
BlackBerry suffers more than its parent brand
O
NE benefit of daily trackers such
as YouGovs BrandIndex is that
you can immediately measure
the impact of a crisis compar-
ing where the brand was prior to a
problem, to perception within 24
hours, and then its status during the
recovery period and beyond.
Last week millions of BlackBerry
users were unable to use email, the
web or BlackBerry Messenger (BBM)
following a systems crash on the
morning of 10 October. The blackout
affected services across Europe, the
Middle East and Africa, with many
users taking to social networking sites
to vent their anger.
It was BlackBerry rather than brand
owner, RIM, that bore the brunt of
negativity. Buzz for BlackBerry can be
seen to react immediately to the news
with a dramatic fall from +11 points
on 10 October to -26 on 13 October and
-52 by Monday, while RIM recorded a
smaller fall from 0 to -14 over the same
period.
BlackBerrys Index Scores also fell
(although not as dramatically), regis-
tering a significant drop of 26 points
as they fell from +22 on 10 October to
-4 a week later. RIM again fared better
here, moving only slightly from 3
points on 10 October to +2.
Its the second time recently that
we have witnessed how RIM sees no
discernible impact on overall brand
perception while BlackBerry suffers.
Following the August riots, when
BBM was the communication method
of choice, BlackBerrys Buzz plummet-
ed with a drop from 10 points on
Monday 8 August to -8 by 11 August.
Yet, prior to last week, Blackberry
had fully recovered this 18 point drop.
Whether the brands perception is
capable of recovering from this latest
crisis as successfully can be assessed
over the next few days and weeks.
Stephan Shakespeare is chief executive of
YouGov.
BRAND INDEX
STEPHAN SHAKESPEARE
ANALYSIS l Index Chart
8Oct 11 Oct 14Oct 17Oct
25
20
15
10
5
-5
0
BlackBerry
Research In
Motion
ANALYSIS l Buzz Chart
8Oct 11 Oct 14Oct 17Oct
20
10
0
-10
-20
-30
-40
-50
-60
BlackBerry
Research In
Motion
News
ECONOMISTS have been challenged
to create a plan for the orderly exit
of countries from the Eurozone,
with a prize sponsored by Next chief
executive Lord Wolfson, the peer
announced today.
There is a very real possibility of a
Eurozone collapse, and a disorderly
rout represents the worst possible
option which would put at risk sav-
ings, banks and the stability of all
European nations, said Wolfson.
But if a government says it is
determining how a nations exit
would work, it risks making the situ-
ation worse.
That leaves a policy void to be
filled, and I hope this prize attracts
serious intellectual power from aca-
demic, city and commercial econo-
mists.
Solving the problem would be no
mean feat. All contracts in affected
countries would be undermined if
currencies changed, devastating
debtors and creditors, buyers and
sellers. And runs on banks could
become runs on countries if cash is
moved from a nation leaving the
Eurozone to one staying in.
Policy Exchange and Lord
Wolfson, who jointly announced the
prize, hope to attract a range of
approaches.
Historical examples of disinte-
grating unions can be studied, the
macroeconomic implications are
enormous, the legal elements must
be unwound and there are tactical
questions for central bankers to
address what kind of currency
areas would be the best replacement
for the current Eurozone? said
Wolfson.
The competition is open to
entrants from any country, and the
winner will be awarded a 250,000
prize.
250,000 for a plan
to exit the Eurozone
BY TIM WALLACE
EUROZONE
Lord Wolfson is seeking a framework allowing countries to leave the Eurozone in an orderly fashion Picture: Stephen Lock
NEWS | IN BRIEF
Daimler maintains outlook
Daimler said yesterday it would keep its
2011 outlook, pouring cold water on
market talk it may have to cut its guid-
ance. "We don't have the intention to
lower our outlook," a Daimler spokesman
said. Daimler also said it had dismissed
Ernst Lieb, the head of Mercedes-Benz
USA, with immediate effect and gave no
reasons for the move.
EFG plans restructuring
Private bank EFG International said it
will look to cut jobs, sell its financial
products unit and close several booking
centres and offices as part of a restruc-
turing launched under new chief execu-
tive John Williamson. The Switzerland-
listed bank will slash 10-15 per cent of
jobs in the next 18 months to reduce
costs and return to profit, and will aim to
reduce its stake in EFG Financial
Products from 57 per cent to below 20
per cent, Williamson said yesterday.
News
DREAMING OF A PLENTIFUL CHRISTMAS
HEDGE funds outperformed equi-
ties in September, according to data
released yesterday, although most
managers still lost money.
All strategies managed to post
better returns than the S&P 500,
which plunged by 7.03 per cent last
month, the EDHEC-Risk institute
said.
However, on average, managers
pursuing a short-selling strategy
were the only ones to post positive
returns, with a gain of 8.14 per cent.
Commodity trading adviser (CTA)
funds, which try to play the techni-
cal factors in different niche mar-
kets, posted virtually flat returns of
0.26 per cent, as did merger arbi-
trage funds, down 0.96 per cent.
The worst performing fund man-
agers were those pursuing
emerging markets strategies, with
an average loss of 6.71 per cent.
Relatively spared until last
month, emerging markets also took
a blow as their stumble of last
month turned into free fall in
September, said EDHEC.
ITV snaps up Channel TV
as it consolidates its brand
ITV yesterday snapped up Channel Islands
broadcaster Channel Television in a fur-
ther consolidation of its broadcasting
franchise.
The deal for the small broadcaster
means Northern Ireland-based UTV and
Scotlands STV are the only other holders
of the 15 licences to broadcast on channel
3. The terms of the deal, which is subject
to regulatory approval, were not
disclosed.
Consolidation had seemed unlikely
after chief executive Adam Crozier said
he is focussed on acquiring content pro-
ducers to bolster ITVs agging
production house.
Speculation has now reemerged that
STV, which holds two licences, and UTV
could be targets for ITV. Analysts have
long argued the acquisitions would make
commercial sense, allowing ITV to strip
out costs.
A deal with STV is more likely now the
two rms have settled a long-running pro-
gramming dispute. STV agreed to pay ITV
18m to compensate for what ITV said
was a shortfall in its network programme
contributions.
UTV Media, which also owns TalkSport,
has previously held merger talks with STV.
Hedgies beat shares
but still lose money
HEDGE FUNDS
MEDIA
TWO thirds of Britons are

planning to spend more or
the same on Christmas as
last year, according to the
HSBC Christmas Survey. On
average, Brits are planning
to spend 378 on the holi-
day, with 183 of that
going on food, drink and
entertainment. In a positive
sign for retailers, the 22 per
cent who plan to spend less
say they will cut their
spending by 96.53, while
the 20 per cent who are
planning to spend more say
they will shell out an extra
82.23 almost cancelling
out the implied drop.
Picture: REUTERS
RSM Tenon
finance
boss quits
RSM TENON finance director Russell
McBurnie has stepped down after
three years in the job.
He will be replaced by former PA
Consulting chief financial officer
Adrian Gardner. It is understood
McBurnie will remain at the account-
ancy giant in a lesser role.
RSM Tenon chairman Bob Morton
said: Gardners experience and
insight will help us achieve our
major priorities which continue to
be working capital reduction, profit
improvement and organic develop-
ment.
I would like to thank Russell for
his commitment and dedication to
the business.
BY STEVE DINNEEN
ACCOUNTING
News
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and you can lose more than your initial deposit. These trading
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advice if necessary.
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Square, London, EC2M 4AB. Registered Number: 3218125.
Capital thinking #5
Buy the rumour.
Sell the fact.
Or should you? Fear and rumours
often drive the markets. Facts
only conrm them.
Signia Wealth
Etienne de Merlis has been appointed
as an executive director in the fund
managers investment team, managing
discretionary and advisory accounts
for ultra high net worth clients. De
Merlis joins from JP Morgan Private
Bank, where he was a portfolio manag-
er for UHNW individuals.
Cofunds
The independent investment platform
has appointed Jim Clay, formerly a sen-
ior member of the UK sales team at
SEI, as business development manager.
Barclays
Ian Ackerley has been appointed as
investments director, UK Retail
Business Banking. He joins from Virgin
Money, where he was managing direc-
tor of investments and pensions.
Prupim
The real estate fund manager has hired
Chris Nash, formerly a director and
fund manager at ING Real Estate, as
director of institutional business.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
in association with
Cushman & Wakefield
The global property consultant has appointed
Michael Lindsay as a partner and head of its
EMEA corporate finance team in London. Lindsay
was formerly a partner and UK head of corporate
finance at KPMG, and director in Citigroups real
estate and lodging investment banking team.
+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
BEST OF THE BROKERS
To appear in Best of the Brokers email
your research to notes@cityam.com
ANALYSIS l Lamprell PLC
375
325
275
225
3Oct 1 Aug 1 Sep
p
228.20
18 Oct
LAMPRELL
Investec said its target price of 393p is
under review after the engineer firmed
up an order to build two jackup oil rigs
for Abu Dhabi's National Drilling
Company. Investec believes the deal will
renew investor confidence in the stock.
ANALYSIS l Sarantel Group PLC
1.0
0.5
0.6
0.7
0.8
0.9
1 Aug 1 Sep 3Oct
p
0.75
18 Oct
SARANTEL
Merchant Securities rates the antennae
manufacturer as hold maintaining its
target price of 0.7p after Sarantel issued
a trading statement warning that full
year revenues would be 24 per cent
lower, largely due to a delay in orders.
ANALYSIS l Faroe Petroleum PLC
240
140
160
180
200
220
1 Aug 1 Sep 3Oct
p
154.0
18 Oct
FAROE PETROLEUM
Numis Securities retains its add rec-
ommendation after the oil and gas
explorer announced a discovery at the
Butch prospect in the Norwegian North
Sea. The broker moved its target price
from 190p to 186p.
Wall St rallies on Europe but Apple disappoints after hours
U
S stocks surged late in trading
yesterday as buyers latched
onto another report of agree-
ments to strengthen the euro
zone's rescue fund to bid up stocks
aggressively.
All three major indexes rose
sharply after the Guardian newspa-
per said France and Germany will
increase the euro zone's rescue fund
to 2 trillion as part of a plan to
resolve the sovereign debt crisis.
Investors and buyers piled into
financial shares, which had started
the day weak but gained momen-
tum on the late news. Shares of
Bank of America rose 10.1 per cent
to $6.64 and trading volume for the
Direxion Financial Bull 3X ETF
jumped to the highest since April
2010.
The development from Europe is
really what we had been rallying on
for the past two weeks before
Germany yesterday signaled that the
issue wasn't quite resolved, said
Larry Peruzzi, senior equity trader at
Cabrera Capital Markets in Boston.
But the direction of the market
can easily reverse if we get some-
thing bad again from Europe.
Stocks may also be affected on
Wednesday by last nights late news
from tech bellwether Apple.
Stock index futures sold off after
the bell following weak quarterly
results from Apple. Its shares lost
more than five per cent to below
$400 in extended trade after the
company reported a rare miss in
quarterly results after sales of its
flagship iPhone fell short of Wall
Street expectations. The stock had
closed up 0.5 per cent at $422.24
during the regular session.
S&P 500 futures SPc1 fell 6.3
points while Nasdaq 100 futures
NDc1 lost 18.75 points.
Goldman Sachs Group added 5.5
per cent to $102.25 after reporting a
rare loss, but Goldman said it was
moving to cut costs, including
employee pay.
THENEW YORK
REPORT
B
RITAINS leading share index
ended lower yesterday as nerv-
ous investors retreated from
riskier assets, forcing the FTSE
100 below a significant technical level
as global growth concerns returned to
haunt the market.
The blue-chip index fell 26.35
points, or 0.5 per cent, to 5,410.35 --
below the 5,450 level it has managed
to close above just once since early
August -- as investors pulled out of the
mining and banking sectors.
The FTSE bounced off a session low
at 5,348.64, tracking movements on
Wall Street as market volatility contin-
ued in thin trade.
Rolls Royce and IMI were among the
top risers up 1.6 per cent and 2.2 per
cent, respectively.
Elsewhere, Whitbread rose 0.5 per
cent after Britain's biggest hotel and
coffee shop operator reported a higher-
than-expected first-half pretax profit
and hiked its dividend over 50 per
cent.
Bargain hunters picked up G4S,
which bounced 9.8 per cent, having
slumped more than 20 per cent on
Monday when announcing a deeply
discounted rights issue to pay for its
1.5bn acquisition of Danish firm ISS.
FTSE down
as growth
worries hit
THELONDON
REPORT
18Jul 5Aug 25Aug 5Oct 15Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5,410.35
18 Oct
ANGLO-SWISS miner Xstrata has
warned that its South African coal
operations were significantly
impacted by a strike over an employ-
ee share ownership programme, but
said that customer deliveries had not
yet been affected.
Thousands of workers belonging to
the National Union of Mineworkers
(NUM) have walked off the job since
Sunday, the union said, demanding
equal benefits for all workers under a
proposed share ownership scheme.
The news came as Xstrata posted
record third quarter thermal coal
output yesterday as it recovered from
weather-related setbacks at the start
of the year.
The company reported quarterly
thermal-coal output of 20m tonnes,
its highest ever, compared with
18.5m tonnes the same period a year
earlier.
But Xstratas mined copper output
dropped to 223,606 tonnes in the
quarter from 233,647 tonnes after
production was hit by lower grades,
repairs and blizzard conditions at its
Collahuasi mine in Chile.
Copper generated the most profit
for Xstrata, with coal ranking second.
The miner said it settled annual
thermal coal contracts with long-
term Japanese customers at $126.5
per tonne from $129.85 a tonne in
April, exceeding analyst expectations.
Xstrata fell by 1.33 per cent to
936.40p last night after mining stocks
were hit by weaker-than-expected fig-
ures on Chinas third-quarter growth.
Xstrata hit by
South African
mining strike
CLARITY Commerce yesterday said it
is in talks with a number of suitors
and expects to receive a better offer
than the one tabled by Jon Moultons
Enigmatic Investments.
The Clarity board reiterated its rec-
ommendation to shareholders to
reject the Enigmatic bid, which it says
undervalues the company and its
prospects.
It said: The board is in discussions
with a number of potential interested
parties and is working with these par-
ties towards an offer which would
deliver a significantly better overall
return to shareholders than the offer
by Enigmatic, and which the Clarity
board expects it would be able to rec-
ommend.
Enigmatic, controlled by Moultons
buyout company Better Capital, last
week defended its 9.7m bid and
highlighted the 1.6m loss from con-
tinuing operations Clarity posted last
year.
Clarity says it
may receive
new bid soon
BY KASMIRA JEFFORD
MINING
News
SIR Martin Sorrell yesterday laid out
his vision for the future of the adver-
tising industry, stressing the impor-
tance of social media and the shift to
emerging markets.
He also said mobile advertising is
an increasingly vital part of the indus-
try, with the number of smartphones
expected to increase to 2bn in the
next five years. However, WPPs head
of digital Mark Read also highlighted
the resilience of TV, saying the two
will continue to co-exist.
The WPP boss said he wants to
increase his firms exposure to the
BRIC (Brazil, Russia, India and China)
and Next 11 economies from 30 per
cent to 40 per cent. He also said he
plans to boost its new media expo-
sure from 30 per cent to 40 per cent.
This is in line with a glut of recent
acquisitions focussing on new media
in emerging markets.
WPP boss looks to mobile
future for the ad industry
Sir Martin Sorrell has made several buys in emerging markets Pic: Micha Thiener/City AM
BY STEVE DINNEEN
ADVERTISING
ANALYSIS l Xstrata PLC

p
1,000
940
920
900
880
980
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936.40
18 Oct
BY STEVE DINNEEN
TECHNOLOGY
Jon Moulton questioned

the credibility of Clarity
with its customers after
it rejected a bid from his
Enigmatic vehicle
AIR FRANCE-KLM ousted its chief
executive yesterday and recalled the
chief architects of the Franco-Dutch
merger with a brief to eradicate losses
while preparing for an anointed suc-
cessor.
Europes largest airline by rev-
enues, which has fallen behind peers
due to a cocktail of costs, debts and
competition, said after board talks
that recovery and improving perform-
ance would be its top priority.
The group said it postponed plans
to reorganise into a fully fledged
holding company, with integrated
divisions, from the beginning of 2012
until 2013 and restored its old guard
to run things in the interim.
Jean-Cyril Spinetta will remain
chairman and resume his previous
role as chief executive, replacing
Pierre-Henri Gourgeon who resigned
from the post he had held since
January 2009.
Leo Van Wijk, who with Air
Frances Spinetta masterminded the
2004 merger of French and Dutch car-
riers from the KLM side, will be
deputy chief executive, the group
said.
The holding company move is seen
as a necessary precursor to possible
future acquisitions.
Air France-KLM shares closed up 1.4
per cent after rising six per cent on
newspaper leaks about the proposed
board decision, which analysts said
would speed up restructuring.
Air France-
KLM replaces
its chief exec
THE FINANCIAL Stability Board (FSB)
published its top six priorities for
banking reform yesterday.
Basel III, OTC derivative reforms, pay
changes, systemically important bank
measures and resolution frameworks
were all declared to be FSB priorities.
The body plans to track progress
towards the implementation of legisla-
tion promoting these G20 initiatives.
The selection process was based on
the importance of consistent and com-
prehensive implementation of reforms
in that area for global financial stabili-
ty the FSB said.
Meanwhile, the Basel Committee
published a progress report yesterday,
detailing the stage of implementation
which each country has reached. EU
nations are leading the way, with draft
legislation in place to implement Basel
IIIs requirements and laws in place
covering all of Basel IIs agreements.
Almost every other nation has legis-
lation in place or in the progress to
comply with Basel II, with the excep-
tion of Argentina, which is in the
process of drafting rules, and Russia
which will not have the rules imple-
mented until at least 2014.
In terms of Basel III, only Saudi
Arabia which has issued final regu-
lations to banks China and the EU
have gone beyond the drafting stage.
Basel III and
derivative rules
get FSB priority
BY HARRY BANKS
AVIATION
REGULATION
News
AUSTRALIAS Qantas Airways has
grounded two more planes due to an
escalating industrial dispute which
threatens to disrupt thousands of
domestic flights leading up to the cru-
cial Christmas period.
Qantas warned yesterday of a main-
tenance backlog as aircraft engineers
threatened to continue work bans
until the end of the year, sending its
shares down more than five per cent.
If this overtime ban continues, we
will be grounding even more aircraft,
Qantas chief executive Alan Joyce said.
Two Boeing 767 aircraft would be
grounded on 24 October in a move
expected to result in the cancellation
of a further 80 domestic flights over
the next month, Qantas said.
The cancellations are in addition to
five aircraft already grounded by
Qantas, which operates a total fleet of
more than 250 aircraft.
Qantas forced to ground
planes as dispute deepens
Qantas has been forced to ground planes due to industrial action Picture:REX
BY HARRY BANKS
AVIATION
ANALYSIS l Air France KLM SA

6.00
5.60
5.47
18 Oct
Business Features
25
Lloyds is harnessing the 2012 Games
as a transformational opportunity
Sally Hancock sets
out why Lloyds
Banking Group
became a partner of
the 2012 Olympics
Q.
WHAT WAS YOUR BRANDS PRIMARY
REASON FOR BEING INVOLVED WITH
THE GAMES?
A.
We became the first National
Partner of the London 2012 Olympic
and Paralympic Games for a number
of reasons.
Firstly, we wanted to provide a great
opportunity for staff and their families to
be inspired and take part in the Games,
and feel pride in Lloyds Banking Group. 64
per cent are now proud were a partner,
and 60 per cent believe our partnership is
having a positive impact on our communi-
ties and customers.
Our partnership with London 2012 is a
compelling reason for new customers to
come and talk to us and for our existing
customers to do more with us. We know
already that customers aware of
our partnership and our com-
munity activities, such as
National School Sport Week,
are more likely to consider
us for their banking needs.
We knew that the 2012
Games would be good for
business. We have been
actively supporting busi-
nesses in the run up to
London 2012, to ensure they
are taking advantage of
opportunities open to them.
Lloyds has made available 1bn
for firms looking to win London 2012
business, and is supporting one in three
companies that have won contracts for the
2012 Games.
Our 2012 partnership and our approach
to activation sets us apart from all other
partners and our competitors. For example,
as the exclusive ticket marketing partner,
Lloyds TSB and Bank of Scotland branches
were the only location offering official tick-
et guides to the Games and we are the only
national presenting partner to both the
Olympic Torch Relay and Paralympic Torch
Relay.
Q.
HOW DID YOU STRUCTURE THE CASE
FOR INVOLVEMENT TO THE BOARD?
A.
We needed to show that this wasnt
just about a two week elite sports
event, but a five year campaign, posi-
tioning Lloyds
Banking Group at the
heart of the communi-
ty and adding value to
our customers and the
communities we work in.
Q.
WHAT WAS THE HARDEST QUESTION
OR ISSUE TO RECONCILE IN ORDER TO
GET BOARD APPROVAL?
A.
Although the economy was in a
very different position when we
became the first London 2012
Partner in 2007, the board naturally
wanted reassurance that the investment
was justifiable and demonstrated suffi-
cient return. Even today, the Group has
never wavered in its belief that this part-
nership could be transformational for
the organisation and indeed the Games
themselves.
We still believe that the business case
for the partnership with London 2012 is
as strong as ever and we have a robust
evaluation process in place to make sure
all our activity delivers the expected
return on investment.
Q.
HOW HAVE YOU STRUCTURED YOUR
BUSINESS TO MAXIMISE OLYMPIC
OPPORTUNITIES?
A.
Our partnership with London 2012
has developed and grown during the
period since 2007. The agreement
was signed prior to Lloyds TSB acquiring
Bank of Scotland and becoming Lloyds
Banking Group. Driving our partnership
forward during a time of rebranding and
repositioning has been a challenge, but
weve been able to use it to help with the
integration of the Bank of Scotland brand,
enabling us to reach more communities in
Scotland.
Q.
WHICH ARE THE MOST CRUCIAL
COMMERCIAL OPPORTUNITIES FOR
YOU AND HOW WILL YOU BE USING
THESE FOR MAXIMUM RETURN?
A.
We are measuring our return on
investment against different
strands, not only the commercial
opportunities. Our partnership enables us
to build deeper and stronger relationships
with our customers, both individuals and
businesses.
We also track the impact of our partner-
ship on our brand and our customers per-
ceptions of us, because we know this
impacts their likelihood to do more busi-
ness with us in the future. For example, 65
per cent of customers are spontaneously
aware that Lloyds is an Olympic Games
Partner and this awareness drives 20 per
cent of those customers to be more likely to
recommend us to other people as a result.
Around 1,000 athletes will have been
helped on their journey to sporting success
through our Local Heroes programme, and
we have played a key role in encouraging
increased sports participation in schools
across the country through National
School Sport Week.
Internally, 2012 helps to build stronger
staff engagement. Weve provided lots of
opportunities for staff to get involved, vol-
unteer, take part in local activity, and next
year a small number will benefit from win-
ning tickets as a result of internal recogni-
tion programmes.
Sally Hancock is director of marketing and
group sponsorship at Lloyds TSB.
Weve been
able to use
it to help
with the
integration
of the Bank
of Scotland
brand,
enabling us to
reach more
communities
in Scotland.
282 DAYS TO GO
COUNTDOWN
TO THE LONDON
2012
OLYMPIC
GAMES
Q A
&
F
OR business leaders there can be few, if
any, more critical issues than the way that
we educate the workforce of tomorrow.
How the UK approaches education reform
over the coming years will determine how suc-
cessfully it closes the skills gap that threatens
our future prosperity.
So any good business leader knows that he or
she has an enormous stake in the education sys-
tem. What they also need to know is that they
have an enormous and enormously reward-
ing potential role to play too, as my wife and I
have found out through our own experience of
being sponsors and governors of Pimlico
Academy in London.
Education secretary Michael Gove has rapidly
accelerated the academy programme, with over
1,000 now open. What academies and the relat-
ed free schools initiative have in common is
that both are free from local government con-
trol. They receive their funding directly from
central government and are run more
autonomously than other schools. Where they
differ, essentially, is that while academies are
existing schools, free schools are in most cases
started from scratch.
Business people can bring a huge amount to
academies and free schools as sponsors or gov-
ernors: the ability to identify issues, make deci-
sions and drive change; the ability to recruit
well; the ability to set a strategy, a vision and
drive it forward; an instinctive knowledge of
what is first rate, as opposed to second or third
rate; judgement. And something all too often
lacking in our school system common sense.
And to be a sponsor or a governor, no money
is needed, just some time.
At Pimlico we took over a school in 2008 that,
by any definition, was failing. It had been in
special measures, results were poor, behaviour
was bad, and staff and pupil morale was low.
There were eight days of strikes in the year
before we took over.
Parents were completely disengaged. Indeed,
I recall organising a series of meetings in the
communities where parents lived. Out of a total
of 1,300 pupils, one parent turned up.
We spent a good deal of time recruiting a
new principal and appointed Jerry Collins. He
has been truly inspirational.
The first challenge was discipline. Gangs
wandered the school. Many pupils were surly
and scruffy and wouldnt look you in the eye.
Absenteeism was rife. So our leadership team
introduced a simple system of rules that are
consistently and fairly applied, along with
heavy teacher presence in the playground and
the corridors at key points in the day.
Students also had nothing to do after school.
We now have over 90 clubs, ranging from table
tennis to Latin to chess to nail painting.
Teaching is at the heart of our strategy. We
have let quite a few teachers go and hired quite
a few new ones. We have driven the teaching
standards up through training and it is now
unacceptable at Pimlico to be a satisfactory
teacher. If you cant raise your game to being
consistently at least good or better, you should
look elsewhere.
The list goes on: very few of our students had
ever met anybody considered to be at the top of
their profession. So we introduced a speaker
programme. Some 11 year olds start school
with a reading age of six. So we have a special
class for them because there is no point in try-
ing to get them to engage in the curriculum if
they cant read or write. There had been a drift
away from core subjects. So we substantially
raised the academic content of the curriculum.
Problem; solution. Just like business. But
with one crucial difference nothing my wife
or I have ever been involved in has been any-
where near so stimulating and rewarding.
In three years, GCSEs have gone from 36 per
cent to 60 per cent A*-C, including English and
Maths. We have an outstanding Ofsted rating,
happy students and high staff morale. It is a
tribute to our staff and students that this has all
been possible.
We have over 90 per cent attendance at par-
ents evenings. Why? Because we tell them that
if they want to have a child at our school, then
that is what we expect of them.
We still have a long way to go. And like any
successful business, we are planning to expand:
a new primary school, a larger sixth form and
possibly even some boarding provision.
The ability to take a hopeless situation and,
by applying some straightforward business
skills, common sense and positive energy, see
children who were tearaways a few years ago
now engaged in serious academic study, is truly
something special to be involved in.
The CBI, and industry generally, will contin-
ue to lobby effectively for an education system
that delivers the skills that they require and I
am delighted to see that the CBI is now talking
about businesses and business people getting
much more involved in schools. They should.
Lobbying will only take us so far. If we want a
workforce that meets our changing needs, it is
high time we got our hands dirty.
John Nash is a former chairman of the British
Venture Capital Association, co-founder of private equi-
ty firm Sovereign Capital and chairman of Future, a
charity which supports inner-city projects.
26
The Forum
CITYA.M. 19 OCTOBER 2011
Businesspeople can bring a
huge amount to academies
and free schools as sponsors
It is time that business got
its hands dirty by helping
rebuild the nations schools
cityam.com/forum
JOHN NASH
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
27
A worried MEP
explains how a
Tobin Tax may
be forced on the
UK using VAT
The City must be
on guard for the
EUs legal angels
F
ROM its inception, the EU has not been a
simple, straightforward entity with clear
rules and methods of working. Each EU
treaty is an amendment of the previous
one and incorporates any number of opt-
outs, derogations and allowances, not just for
national specificities but also to allow lati-
tude of interpretation for the EU institutions
themselves. That latitude now places the UK
financial services industry at risk.
The entity able to navigate this legal maze is
the European Commission self-professed
Guardian of the Treaty and its 623 angels,
otherwise known as lawyers, who are constant-
ly working to bend those rules to its will.
At the moment, what it wills is a tax that it
claims could raise 57bn. The tax is based on
financial transactions, 60 per cent of which
take place in the UK. The only thing standing
in its way is the treaty-enshrined requirement
that tax matters require the unanimous sup-
port of all 27 EU member states. You might
think that the Commission would be looking
to guard the treatys unequivocal respect for
member states sovereignty over taxation yet
when 57bn is at stake it has a strong incen-
tive, and the legal resources, to look for innova-
tive ways to get around this problem.
Faced with vociferous questions on member
states rights, the taxation commissioner stat-
ed that he would not be held hostage by one
member state he intimated that there were
ways of getting around the unanimity rule, for
example by amending existing taxation rules
that have already been harmonised.
This sent UK lawyers into a tailspin, looking
into what he could mean. One possible avenue
is VAT. While financial services are now
exempt from VAT in the harmonising direc-
tive, there is a view that this exemption could
be removed by a qualified majority of member
states rather than, as most assume, only by
unanimous agreement.
The latest green paper from the Commission
concerning VAT states quite clearly just what
legal acrobatics they would like to perform to
undermine member states rights; via one of
the Lisbon Treatys streamlining procedures
that were supposed to ease working conditions
for an enlarged EU membership of 27.
The Commission has long been pushing for
more power over implementing measures,
which only need a qualified majority of mem-
ber states to agree to them. Their use is now
common in single market legislation. So far,
member states have resisted their use on taxa-
tion issues. Now that certain large member
states have put a lot of political capital behind
an EU financial transactions tax, one wonders
how long their stand will continue, if they see
a quick way of getting what they want without
the UK standing in their way.
For now, I can only hope that the UKs
guardians of our sovereignty are also looking
into this to ensure that the VAT exemption for
financial services cannot be removed via an
implementing act, and that this loophole for
taking yet more of our sovereignty away is not
allowed to become large enough for the
Commissions 623 angels to get through.
Kay Swinburne is the Conservative representative
for Wales in Europe
Innovation first
Norman Lewis makes some good
points [Steve Jobs was an amaz-
ing businessman but Einsteins
the genius behind the iPod, yester-
day] but while pure science is
clearly important, many innova-
tions precede the science. We flew
long before we knew how, we
used electricity long before we
understood what it was and we
continue to use general anaesthet-
ics even though we have no idea
how they work. Indeed, all our
early innovations fire, metals,
boats, farming were accom-
plished without the concept, let
alone the practice, of science.
What is more interesting is how
the last fifty years have shown no
radical innovation. The last was
the jet engine, over 70 years ago.
Why we have failed to cure cancer
or the common cold or construct a
working fusion reactor is the ques-
tion we should ask.
Tim Hammond,
managing director,
Seabury Group
Give Jobs his due
Comparing Steve Jobs with
great physicists might be going
a little far but what he achieved
is extraordinary. The music busi-
ness has changed forever. A
whole business sector has been
born on the back of the app
store. Apple has made technolo-
gy accessible to consumers in a
modern day revolution. Just ask
the 300m owners of an iPod!
Julian Ormerod,
managing director,
Blast Radius
RAPID RESPONSES
In association with
KAY SWINBURNE
BY JAMIE WHYTE
CITYA.M. 19 OCTOBER 2011
The Forum
W
A R R E N
Buffett has
f a m o u s l y
claimed that
he is happy to pay a
higher rate of income
tax. He figures that,
given all he has gained
from society, it is only
right that he give a lot
back. President Obamas proposed new tax on
incomes above $1m has even been dubbed the
Buffett tax.
This week I heard an anti-capitalist protester in
my former home town of Auckland (which I am
visiting for the World Cup) use the same argu-
ment. Asked by a television journalist if her protest
was nothing more than a display of envy, she
replied that, in fact, she earned good money but
she was happy to pay higher tax.
It is astonishing how confused people get when
it comes to their own virtue. If Buffett wants to
give more of his income to the government, noth-
ing stops him. Perhaps this is a virtuous thing for
him to do. Though implausible, if the government
will spend his money more wisely than he or its
alternative recipients would, then this charity
makes the world a better place.
But this supposed virtue on Buffetts part is
irrelevant to proper tax rates. I sponsor a child in
Kenya. The small sum of money benefits the child
much more than it costs me. So I think it is a good
thing to do. But I do not conclude, as I would if I
followed Buffetts reasoning, that everyone who
earns as much or more than me should be com-
pelled to donate to the same charity on threat of
imprisonment.
There is a monstrous moral egotism in Buffetts
argument. He believes that his preferences should
be made universal, and not by a process of argu-
ment, whereby he convinces everyone else that he
is right about who should get how much of their
money, but by simple force. Because he is happy to
give more of his money to the government, anyone
who refuses to do the same should be imprisoned.
What a high opinion he must have of himself. Thy
will be done on earth as it is in heaven.
Many wealthy and powerful people in America
and other Western countries are in receipt of tax-
payers money. For example, Buffett is a major
investor in Bank of America, which survived its
poor risk-taking only because government officials
gave it money confiscated from taxpayers. Anyone
invested in General Motors is also on the take.
Wealthy American farmers are among the worlds
leading long-term crony capitalists. And politi-
cians, of course, are not only paid from tax
receipts but use them to buy votes.
The fantasy that taxes are some kind of volun-
tary charitable donation is congenial to such peo-
ple, and they peddle it tirelessly. If you want to
see this taken to its absurd limit, watch Jan
Helfeld interview Harry Reid, the senate majority
leader, on YouTube. The latter claims that tax is
voluntary because, in America, you get deductions
for interest paid on a mortgage. Never mind that
you get put in prison if you refuse to pay.
Taxes are a necessary evil. Without them, public
goods goods that non-payers cannot be excluded
from enjoying, such as the rule of law would be
under-supplied. But a necessary evil is still an evil.
Start agreeing that taxation is intrinsically good,
and you remove all moral restraint from those
who would profit by squandering money confis-
cated from other people.
Jamie Whyte is a senior fellow of the Cobden
Centre and author of Crimes Against Logic
(McGraw Hill 2004).
There is zero virtue in
involuntary high taxes
Email: theforum@cityam.com
Twitter: @cityamforum
W
ITH no end in sight for market
volatility, options are dwindling
for investors seeking safe haven
currencies. Six weeks ago, the
Swiss National Bank (SNB) made the bold
move of putting a floor under the euro-
Swiss franc exchange rate at SFr1.20.
When it announced the move, the SNB
said that it would protect the franc with
the utmost determination.
So can safety be found in the Scandi cur-
rencies? As ratings agencies crash around
the world sovereign debt markets, kicking
down the door of every AAA government
bond rating in sight, Norway and Sweden
have held firm.
They have also ticked the right boxes
when it comes to monetary activism
George Osbornes new term of endear-
ment for money printing and interest rate
meddling. The Norge Bank has kept inter-
est rates set for three meetings in a row.
Looking at the price reaction to the SNB
move on 8 September (see chart, below,
left), you can see that as euro-Swissie
jumped, Euro-Nokkie fell to around the
kr7.500 level, as investors scrambled to
find another haven currency matching
the Swissies profile.
But despite the strong fundamentals,
the Norwegian and Swedish currencies
Investors are looking for Swiss franc alternatives, writes Craig Drake
Exiting difficulties give
illiquid Scandis limited
appeal as a safe haven
T
HIS week the focus in the currency market is
squarely on the EU summit scheduled for 23
October, but the event itself may prove to be
anticlimactic and could serve as a perfect sell-
the-news moment even if the Eurozone officials man-
age to produce a reasonable plan to deal with the sov-
ereign debt crisis.
Over the past few days, the spread between
French and German bonds has widened to a record
high of 114 basis points, as credit markets are
becoming increasingly concerned about the countrys
balance sheet. On Tuesday, Moodys warned that it
may put a negative outlook on Frances AAA credit
rating if the costs for helping to bail out banks and
other Eurozone members stretch its budget. Given
the fact that the balance sheets of the three main
French banks exceed the countrys GDP by more than
300 per cent, these financial institutions could in fact
be floating icebergs of risk, threatening the countrys
credit rating. Therefore, the task of creating an effec-
tive EFSF fund, which would act as a de facto
European Treasury, could become even more compli-
cated if Frances credit deteriorates further.
Meanwhile, in Germany the latest ZEW reading
printed at -48.3, against an expected -44.7, as
investors continued to worry that the slowdown in
German economic activity could lead to a contrac-
tion in GDP by year end. Recent German PMI data
has already signalled a contraction and if this Fridays
IFO number confirms the downward bias, sentiment
could quickly turn negative as traders realise that
markets are relying on Germany to backstop the
Eurozone, just as the countrys economy risks sliding
into a recession.
In short, the premise behind the Eurozone summit
may be flawed. The bulls assume that Germany and
France, which comprise Europes core, will be able to
provide sufficient capital to rescue the regions
periphery. However, if the market suspects that the
core is rotten the recent rally in euro-dollar will
unwind all of its recent gains, taking the pair to a
retest of the $1.3200 level and possibly $1.3000 by
next week as investors lose faith.
FAITH IN EU
SUMMIT IS
MISPLACED
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
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also show why investors are wary of slim,
illiquid currencies. In the current volatile
markets, entry into and exit from markets
is paramount. Try offloading the Nokkie
when the market turns sour and youll be
stood with your palms out for a long time.
Bad news if you want to fill in your stops.
As Michael van Dulken, head of research
at Accendo Markets points out, minors
like the Nokkie and the Swedish krone are
over the counter (OTC) and closed for the
weekend, increasing the chance of being
stopped out. You could get gapped when
Asia opens the trading week, if weekend
news warrants everyone to try and pile
out of their haven, adds van Dulken.
MINOR LEAGUE NOKKIE
Being out of the major league also pres-
ents a liquidity issue for something like a
sterling-Nokkie pair. As a minor currency,
the krone cannot be used as a base curren-
cy of a cross. So with sterling-Nokkie, you
are actually looking at being long sterling-
dollar and short dollar-Nokkie. In a
volatile market you will have no problem
on the cable side, but could come into dif-
ficulty buying out of the short dollar-
Nokkie position.
Despite this, there is evidence that the
Nokkie and the Swedish kroner can take a
certain amount of capital inflows, but any
real driving up of the currencies by
investors seeking safety would likely acti-
vate the interventionist chip inside the
brains of their respective authorities and
trigger a central bank move. However,
Stephen Gallo, head of market analysis for
Schneider FX, suggests that the countries
would shout before they shoot: I would
argue that Norges Bank and the Riksbank
would warn speculators off long before
any aggressive bidding happened, so that
they would not end up like the Swiss, hav-
ing to print money.
The chart (below, right) of the current
Norwegian sovereign curve, shows yields
on various term debt instruments issued
by the Norwegian government. What is
interesting is the sharp drop in yield up
until about the 2-year sector, and the rise
further out, says Gallo. The depressed
yields at the shorter end of the curve are
probably to one degree or another a result
of safe haven flows into Norway.
In short, while the Scandi currencies
and other similarly thin and illiquid cur-
rencies offer some haven attraction, the
potential for big market swings and the
natural instinct for governments to med-
dle in currency policy should deter any
major buying.
28
Wealth Management| Foreign Exchange
2011 22Aug 29Aug 5Sep 12Sep 19Sep 26Sep 3Oct 10Oct 17Oct
10
4
6
8
2
0
-2
-4
ANALYSIS l Moderate Scandi in-flows
% euro-
Swiss
franc
SNB
intervention
euro-
Norwegian
kroner
3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y
2.50
2.30
2.10
1.90
1.70
ANALYSIS l Norwegian sovereign curve
Source: Bloomberg /Schneider FX
rates
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Sell euro-sterling
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold euro-dollar at $1.4328 on 29 July expecting a deepening EU
debt crisis to hurt the euro, while a slowing global recovery boosts
safe-haven demand for the dollar. The single currency rebounded
amid a flurry of rhetoric, but German candor cut the recovery short
after Chancellor Merkel dismissed hopes for an immediate fix as a
dream. I am expecting selling pressure to resume from here and
continue to look for an objective of $1.30 in the coming weeks.
The market that has been moving lower since the 2008 record highs and
any rallies continue to be well capped, with the formation of lower top
after lower top. As such, the latest topside failure on the euro-sterling
daily chart by 0.8800 suggests that another lower top is now in the
process of carving, and we look for fresh downside back towards the
0.8500 area over the coming days. Ultimately, only back above 0.8800
would negate outlook and force rethink.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Scalp dollar-yen and short Kiwi dollar-dollar
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
I had a mixed bag last week with my short euro-sterling hitting its
stop at its new resistance, while sterling-dollar hit its initial target. We
are seeing the dominant risk trend waver to start the week, so consis-
tency is difficult to gauge. I dont like a resumption of risk trend fun-
damentally, but if yield appetite does drop, Id like Kiwi dollar-dollar
below $0.7900 and then $0.7500. A scalping effort on dollar-yen
(with a long bias) looks to avoid bigger sentiment trends.
THE TIPSTER TRADING A JAPANESE PLAY ON
THE TECHNICALS, AND OVERSTATED UK WORRIES
T
he rally in sterling from recent lows
has hit the skids in the last few days,
with sterling-Japanese yen playing
the technical levels beautifully again.
After topping out almost exactly on the 50-
day simple moving average at 122.47 and
just above trend-line resistance going back
to the April highs of 139, it has pulled back
to support at 120. The downtrend is still
intact and any rallies to 122 should be sold
for the time being. Spread Co offers a
spread on sterling-Japanese yen of
120.261-120.341.
Some analysts may have posted relative-
ly bearish assessments for sterling-dollar,
with suggestions that itll nose-dive into
the year end. But against a backdrop of
renewed uncertainty in the Eurozone and
ongoing concern over the state of the US
budget deficit, so long as some growth can
be seen in the UK then these worries may
yet prove to be overstated. The current IG
Index price on sterling-dollar is $1.5710-
$1.5711.
The wallabies arent the only thing from
Australia that is down and out. Australian
dollar-dollar is looking increasingly vulner-
able as risk appetite takes a turn for the
worse. Below $1.0150 opens the way to
$1.0055 a key technical support zone.
Forex.com is currently offering a spread of
$1.0148-$1.0151.
Despite trading near a one month high,
the euro-dollar pair dropped off drastically
as traders were shaken by the news that
German leaders think it will be unrealistic
to find a solution for Eurozone debt prob-
lems by the time of the European Council
summit, scheduled for 23 October. The pair
has strong momentum pointing down-
wards and has broken through a rising
trend line, which could signal further weak-
ness here. Capital Spreads quotes for euro-
dollar at $1.3679-$1.3680.
Yesterday evening, the Bank of Japan
announced that it is to form a special team
to monitor initiatives designed to address
the strong yen. The writing seems to be on
the wall for the dollar-Japanese yen. The
pair has been trending higher, on the
assumption that a serious repatriation of
yen was on the cards, but fell to the 76.6-
76.8 area on resumption of trading on
Monday morning. The current IG Index
price for dollar-yen is 76.75- 76.78.
Craig Drake
29
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BAE Systems . . . . . .285.2 2.6 369.9 248.1
Chemring Group . . . .529.5 -5.0 736.5 485.0
Cobham . . . . . . . . . . .172.3 0.7 245.6 168.5
Meggitt . . . . . . . . . . . .370.9 8.5 397.6 303.9
QinetiQ Group . . . . . .116.2 0.2 136.3 96.7
RoIIs-Royce Group . .700.0 11.0 701.5 557.5
Senior . . . . . . . . . . . . .158.9 1.7 190.6 131.1
UItra EIectronics . . .1590.0 -12.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .195.1 4.8 245.0 157.0
BarcIays . . . . . . . . . . .175.1 -1.3 333.6 138.9
HSBC HoIdings . . . . .520.2 -2.8 730.9 473.6
LIoyds Banking Gr . . .32.1 -0.4 72.2 27.6
RoyaI Bank of Sco . . .23.7 -0.3 49.0 19.7
Standard Chartere .1390.0 -39.0 1950.0 1169.5
AG Barr . . . . . . . . . .1201.0 -28.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .306.8 -4.6 503.5 289.9
Diageo . . . . . . . . . . .1280.0 0.0 1307.0 1112.0
SABMiIIer . . . . . . . . .2261.0 0.5 2340.0 1979.0
AZ EIectronic Mat . . .249.1 -0.4 338.1 206.1
Croda Internation . .1805.0 12.0 2081.0 1367.0
EIementis . . . . . . . . . .132.7 0.6 187.4 104.8
Johnson Matthey . .1746.0 -19.0 2119.0 1523.0
Victrex . . . . . . . . . . .1138.0 -14.0 1590.0 1025.0
YuIe Catto & Co . . . . .169.9 1.9 253.0 148.0
LON GD ONCE FIX AM...........1658.00 -31.00
SILVER LDN FIX AM ..................30.98 -0.99
MAPLE LEAF 1 OZ ....................34.44 0.13
LON PLATINUM AM................1526.00 -48.00
LON PALLADIUM AM...............606.00 -36.00
ALUMINIUM CASH .................2208.00 38.00
COPPER CASH ......................7565.00 65.00
LEAD CASH...........................1990.00 -17.00
NICKEL CASH......................18750.00 -100.00
TIN CASH.............................21950.00 -95.00
ZINC CASH ............................1899.50 -1.50
BRENT SPOT INDEX ................111.64 -2.89
SOYA .....................................1253.00 -17.00
COCOA..................................2622.00 -49.00
COFFEE...................................234.00 -5.55
KRUG.....................................1699.70 -42.70
WHEAT ....................................146.68 -0.75
AIR LIQUIDE........................................91.74 0.13 100.65 80.90
ALLIANZ..............................................75.96 -0.60 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.46 -0.15 46.33 33.85
ARCELORMITTAL...............................13.54 -0.25 28.55 10.47
AXA......................................................10.39 -0.36 16.16 7.88
BANCO SANTANDER...........................6.07 0.01 9.47 5.05
BASF SE..............................................50.87 0.37 70.22 42.19
BAYER.................................................44.42 0.42 59.44 35.36
BBVA......................................................6.31 -0.06 9.82 4.94
BMW ....................................................55.08 0.58 73.85 43.49
BNP PARIBAS.....................................29.94 -1.12 59.93 22.72
CARREFOUR ......................................16.74 -0.30 34.47 14.66
CRH PLC .............................................12.95 0.26 17.40 10.28
DAIMLER.............................................36.49 -0.02 59.09 30.52
DANONE..............................................46.40 1.00 53.16 41.92
DEU.BOERSE OFFRE ........................40.88 -0.80 55.75 35.46
DEUTSCHE BANK..............................26.42 -0.05 48.70 20.79
DEUTSCHE TELEKOM.........................9.36 -0.04 11.38 7.88
E.ON.....................................................17.02 -0.17 25.54 12.50
ENEL......................................................3.41 -0.06 4.86 2.81
ENI .......................................................15.45 0.08 18.66 11.83
FRANCE TELECOM............................12.91 -0.13 17.45 11.12
GDF SUEZ ...........................................21.76 -1.36 30.05 18.32
GENERALI ASS...................................12.65 0.05 17.05 10.34
IBERDROLA..........................................5.19 -0.09 6.50 4.29
INDITEX ...............................................66.38 -1.20 68.23 50.92
ING GROEP CVA...................................5.99 0.07 9.50 4.21
INTESA SANPAOLO.............................1.24 0.02 2.53 0.85
KON.PHILIPS ELECTR.......................14.67 0.15 25.45 12.01
L'OREAL..............................................78.63 -0.81 91.24 68.83
LVMH..................................................114.00 0.45 132.65 94.16
MUNICH RE.........................................95.86 -0.77 126.00 77.80
NOKIA....................................................4.40 0.00 8.49 3.33
REPSOL YPF.......................................21.62 -0.16 24.90 17.31
RWE.....................................................29.15 -0.26 55.88 21.22
SAINT-GOBAIN...................................33.35 0.05 47.64 26.07
SANOFI ................................................50.19 -0.24 56.82 42.85
SAP......................................................41.88 0.42 46.15 32.88
SCHNEIDER ELECTRIC.....................44.89 0.42 61.83 35.94
SIEMENS .............................................74.23 0.30 99.39 62.13
SOCIETE GENERALE.........................19.24 -1.01 52.70 14.32
TELECOM ITALIA..................................0.88 -0.02 1.16 0.70
TELEFONICA ......................................15.02 -0.12 19.69 12.50
TOTAL..................................................37.07 0.01 44.55 29.40
UNIBAIL-RODAMCO SE...................143.30 -2.85 162.95 124.05
UNICREDIT............................................0.91 0.02 2.03 0.64
UNILEVER CVA...................................24.30 -0.14 24.90 20.90
VINCI ....................................................34.75 -0.13 45.48 29.49
VIVENDI ...............................................16.15 -0.16 22.07 14.10
VOLKSWAGEN VORZ.......................114.15 1.85 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5410.35 -26.35 -0.48
FTSE 250 INDEX . . . . . . . 10178.89 -71.50 -0.70
FTSE UK ALL SHARE . . . . 2790.43 -14.73 -0.53
FTSE AIMALL SH . . . . . . . . 709.85 -4.60 -0.64
DOWJONES INDUS 30 . . 11577.05 180.05 1.58
S&P 500 . . . . . . . . . . . . . . . 1225.38 24.52 2.04
NASDAQ COMPOSITE . . . 2657.43 42.51 1.63
FTSEUROFIRST 300 . . . . . . 962.13 -3.91 -0.40
NIKKEI 225 AVERAGE. . . . 8741.91 -137.69 -1.55
DAX 30 PERFORMANCE. . 5877.41 17.98 0.31
CAC 40 . . . . . . . . . . . . . . . . 3141.10 -24.96 -0.79
SHANGHAI SE INDEX . . . . 2383.49 -56.92 -2.33
HANG SENG. . . . . . . . . . . 18076.46 -797.53 -4.23
S&P/ASX 20 INDEX . . . . . . 2534.70 -49.10 -1.90
ASX ALL ORDINARIES . . . 4249.50 -88.40 -2.04
BOVESPA SAO PAOLO. . 55031.93 1120.60 2.08
ISEQ OVERALL INDEX . . . 2604.54 16.25 0.63
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 886.42 -5.25 -0.59
SWISS MARKET INDEX. . . 5682.51 -40.90 -0.71
Price Chg %chg
3M........................................................78.36 2.48 98.19 68.63
ABBOTT LABS ...................................52.44 0.40 54.24 45.07
ALCOA ................................................10.14 0.56 18.47 8.45
ALTRIA GROUP..................................27.53 0.11 28.14 23.20
AMAZON.COM..................................243.88 1.55 246.71 156.57
AMERICAN EXPRESS........................46.68 1.56 53.80 38.75
AMGEN INC.........................................57.28 0.84 61.53 47.66
APPLE...............................................422.24 2.25 426.70 297.76
AT&T....................................................29.21 0.19 31.94 27.20
BANK OF AMERICA.............................6.64 0.61 15.31 5.13
BERKSHIRE HATAW B.......................75.07 2.18 87.65 65.35
BOEING CO.........................................63.47 1.69 80.65 56.01
BRISTOL MYERS SQUI ......................32.56 0.12 33.20 20.05
CATERPILLAR....................................84.72 3.20 116.55 67.54
CHEVRON.........................................102.95 4.34 109.94 80.41
CISCO SYSTEMS................................17.51 0.34 24.60 13.30
CITIGROUP.........................................29.88 1.95 51.50 21.40
COCA-COLA.......................................66.74 -0.26 71.77 59.74
COLGATE PALMOLIVE......................92.34 1.40 94.89 74.39
CONOCOPHILLIPS.............................69.21 0.87 81.80 58.37
DU PONT(EI) DE NMR........................44.98 1.20 57.00 37.10
EMC CORP..........................................23.99 1.31 28.73 19.84
EXXON MOBIL....................................78.89 1.42 88.23 63.47
GENERAL ELECTRIC.........................16.71 0.48 21.65 14.02
GOOGLE A........................................590.51 8.10 642.96 473.02
HEWLETT PACKARD.........................25.61 0.75 49.39 19.92
HOME DEPOT.....................................35.95 1.30 39.38 28.13
IBM.....................................................178.90 -7.69 190.53 136.70
INTEL CORP .......................................23.40 0.12 26.78 18.90
J.P.MORGAN CHASE.........................32.87 1.83 48.36 27.85
JOHNSON & JOHNSON.....................64.42 0.63 68.05 57.50
KRAFT FOODS A................................35.24 0.47 36.30 24.30
MC DONALD'S CORP ........................89.64 0.98 91.22 72.14
MERCK AND CO. NEW......................32.79 0.48 37.68 29.47
MICROSOFT........................................27.31 0.33 29.46 23.65
OCCID. PETROLEUM.........................84.98 2.30 117.89 66.36
ORACLE CORP...................................31.88 0.65 36.50 24.72
PEPSICO.............................................62.41 0.52 71.89 58.50
PFIZER ................................................18.97 0.28 21.45 16.25
PHILIP MORRIS INTL .........................66.31 -0.73 72.74 55.85
PROCTER AND GAMBLE ..................64.92 0.66 67.72 56.57
QUALCOMM INC ................................54.56 0.92 59.84 42.45
SCHLUMBERGER ..............................69.91 2.39 95.64 54.79
TRAVELERS CIES..............................51.46 1.88 64.17 45.97
UNITED TECHNOLOGIE ....................74.12 2.00 91.83 66.87
UNITEDHEALTH GROUP...................45.34 -1.26 53.50 34.50
VERIZON COMMS ..............................37.24 0.30 38.95 31.60
WAL-MART STORES..........................55.89 1.11 57.90 48.31
WALT DISNEY CO ..............................33.94 0.55 44.34 28.19
WELLS FARGO & CO.........................25.86 1.44 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 ..................0.858 -0.01
LIBOR Euro - 12 months ................2.066 0.00
LIBOR USD - overnight...................0.140 0.00
LIBOR USD - 12 months.................0.913 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 .........................3.750 0.00
European repo rate.........................0.728 -0.02
Euro Euribor ....................................1.166 0.00
The vix index ...................................32.09 -1.31
The baItic dry index ........................2.160 -0.01
Markit iBoxx...................................233.46 0.89
Markit iTraxx..................................174.66 2.23
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3743 0.0009
C/ 0.8756 0.0031
C/ 105.56 0.0281
/C 1.1433 0.0029
/$ 1.5695 0.0047
/ 120.55 0.4162
FTSE 100
5410.35
26.35
FTSE 250
10178.89
71.50
FTSE ALLSHARE
2790.43
14.73
DOW
11577.05
180.05
NASDAQ
2657.43
42.51
S&P 500
1225.38
24.52
RPC Group . . . . . . . .340.0 -4.9 384.8 215.4
Smiths Group . . . . . .924.5 -7.0 1429.0 907.5
Brown (N.) Group . . .266.3 -4.3 311.2 252.5
Carpetright . . . . . . . . .487.0 -8.2 835.5 472.5
Debenhams . . . . . . . . .64.3 0.1 77.4 51.2
Dignity . . . . . . . . . . . .839.5 -13.5 854.5 633.0
Dixons RetaiI . . . . . . .11.3 -0.9 28.5 10.6
DuneImGroup . . . . . .472.9 11.8 550.0 383.9
HaIfords Group . . . . .322.0 -1.7 459.7 268.6
Home RetaiI Group . .119.7 -1.8 235.0 105.1
Inchcape . . . . . . . . . .314.5 -8.5 425.4 268.1
JD Sports Fashion . .835.0 -6.0 1030.0 753.5
Kesa EIectricaIs . . . . .91.2 -3.0 174.0 80.0
Kingfisher . . . . . . . . .255.6 -4.3 287.1 217.0
Marks & Spencer G . .329.4 -5.5 427.5 301.8
Mothercare . . . . . . . .197.7 -5.3 627.5 179.6
Next . . . . . . . . . . . . .2558.0 -16.0 2649.0 1868.0
Sports Direct Int . . . .237.7 5.8 266.2 125.5
WH Smith . . . . . . . . . .549.5 8.5 553.5 433.8
Smith & Nephew . . . .572.5 -8.0 742.0 521.0
Synergy HeaIth . . . . .851.0 -4.5 981.0 736.0
Barratt DeveIopme . . .87.6 -2.0 119.0 67.5
BeIIway . . . . . . . . . . . .698.5 21.0 753.5 511.0
BaIfour Beatty . . . . . .257.7 0.2 357.3 228.6
GaIIiford Try . . . . . . . .438.0 -3.0 530.0 276.5
Kier Group . . . . . . . .1372.0 6.0 1418.0 1097.0
Drax Group . . . . . . . .460.2 2.2 536.5 353.6
SSE . . . . . . . . . . . . . .1340.0 -9.0 1423.0 1108.0
Domino Printing S . .528.0 -11.5 705.0 434.3
HaIma . . . . . . . . . . . . .332.4 -3.1 429.6 306.3
Laird . . . . . . . . . . . . . .138.0 -1.5 207.0 127.9
Morgan CrucibIe C . .264.9 2.6 357.1 222.3
Oxford Instrument . .783.0 -4.0 1010.0 495.0
Renishaw . . . . . . . . . .870.5 -1.0 1886.0 850.0
Spectris . . . . . . . . . .1174.0 10.0 1679.0 1039.0
Aberforth SmaIIer . . .524.5 3.0 714.0 508.5
AIIiance Trust . . . . . .333.5 -2.1 392.7 310.2
Bankers Inv Trust . . .378.0 5.0 428.0 346.5
BH GIobaI Ltd. GB .1191.0 -9.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.9 0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.3 0.2 20.1 15.8
BH Macro Ltd. GBP 1975.0 -15.0 2070.0 1630.0
BH Macro Ltd. USD . . .18.9 0.0 20.1 15.8
BIackRock WorId M .602.0 -13.5 815.5 574.5
BIueCrest AIIBIue . . .169.9 1.3 176.2 162.4
British Assets Tr . . . .116.5 0.6 140.5 109.0
British Empire Se . . .450.0 1.0 533.0 409.9
CaIedonia Investm .1526.0 -1.0 1928.0 1470.0
City of London In . . .280.2 0.1 306.9 257.0
Dexion AbsoIute L . .133.8 -0.1 151.0 130.0
Edinburgh Dragon . .219.0 -1.6 262.1 201.4
Edinburgh Inv Tru . . .455.1 -4.2 492.2 414.9
EIectra Private E . . .1383.0 8.0 1755.0 1287.0
F&C Inv Trust . . . . . .282.7 -1.7 327.9 261.5
FideIity China Sp . . . . .75.0 -1.7 128.7 70.0
FideIity European . .1018.0 5.0 1287.0 912.0
HeraId Inv Trust . . . . .465.0 7.0 545.5 419.0
HICL Infrastructu . . . .117.1 0.1 121.3 112.7
Impax Environment . .93.2 -0.3 130.5 88.5
JPMorgan American .825.0 5.0 916.0 721.5
JPMorgan Asian In . .189.0 -1.0 250.8 170.1
JPMorgan Emerging .520.0 -3.0 639.0 480.1
JPMorgan European .759.5 3.5 983.5 692.5
JPMorgan Indian I . . .362.0 -4.1 502.0 350.0
JPMorgan Russian .485.0 9.5 755.0 415.1
Law Debenture Cor . .343.0 -3.0 385.0 309.8
MercantiIe Inv Tr . . . .907.0 -11.0 1137.0 856.5
Merchants Trust . . . .366.0 -2.2 431.8 347.0
Monks Inv Trust . . . .321.0 -1.0 367.9 298.1
Murray Income Tru . .614.0 0.5 673.0 568.0
Murray Internatio . . .877.0 -6.0 991.5 818.5
PerpetuaI Income . . .250.6 0.6 276.0 234.8
PersonaI Assets T .33380.0 -20.0 33725.030210.0
PoIar Cap TechnoI . .341.0 1.9 391.2 299.5
RIT CapitaI Partn . . .1294.0 -8.0 1334.0 1127.0
Scottish Inv Trus . . . .444.0 -4.0 524.0 417.0
Scottish Mortgage . .643.0 -8.0 781.0 586.5
SVG CapitaI . . . . . . . .206.7 -3.3 279.8 187.2
TempIe Bar Inv Tr . . .853.0 2.0 952.0 791.0
TempIeton Emergin .545.0 -4.5 689.5 497.0
TR Property Inv T . . .169.5 -1.5 206.1 150.0
TR Property Inv T . . . .74.9 0.3 94.0 69.5
Witan Inv Trust . . . . .439.0 7.0 533.0 401.5
3i Group . . . . . . . . . . .197.7 -6.8 340.0 184.1
3i Infrastructure . . . . .119.7 -0.2 125.2 112.9
Aberdeen Asset Ma .185.0 -2.1 240.0 167.8
Ashmore Group . . . .318.5 -2.1 420.0 301.5
Brewin DoIphin Ho . .118.4 -2.9 185.4 113.7
CameIIia . . . . . . . . . .9000.0 -50.010950.0 8862.5
CharIes TayIor Co . . .139.8 1.8 193.0 122.0
City of London Gr . . . .71.0 -1.0 93.6 71.0
City of London In . . .325.0 -10.0 461.5 321.3
CIose Brothers Gr . . .718.5 -10.5 888.5 656.5
CoIIins Stewart H . . . .62.0 -1.0 90.8 59.0
EvoIution Group . . . . .80.3 -2.5 94.0 62.3
F&C Asset Managem .61.7 0.2 92.9 56.1
Hargreaves Lansdo .488.2 -18.8 646.5 402.5
HeIphire Group . . . . . . .3.0 0.0 33.0 2.2
Henderson Group . . .119.4 -4.7 173.1 95.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .418.0 -4.2 570.5 383.7
IG Group HoIdings . .453.2 -5.4 553.0 393.6
Intermediate Capi . . .226.3 -3.4 360.3 197.9
InternationaI Per . . . .251.7 -3.2 388.8 196.5
InternationaI Pub . . . .115.5 0.1 118.3 108.6
Investec . . . . . . . . . . .361.4 -5.3 538.0 331.8
IP Group . . . . . . . . . . . .65.8 0.8 66.0 27.9
Jupiter Fund Mana . .213.1 -8.0 337.3 184.9
Liontrust Asset M . . . .59.0 -2.0 94.3 59.0
LMS CapitaI . . . . . . . . .59.5 0.0 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .890.5 -6.0 1076.0 685.5
Lonrho . . . . . . . . . . . . .14.8 -0.3 19.8 12.5
Man Group . . . . . . . . .158.3 -2.5 311.0 150.0
Paragon Group Of . .156.8 0.0 206.1 134.6
Provident Financi . .1060.0 8.0 1124.0 728.5
Rathbone Brothers .1044.0 -11.0 1257.0 866.5
Record . . . . . . . . . . . . .24.0 0.0 46.0 20.3
RSM Tenon Group . . .23.5 1.3 66.3 20.3
Schroders . . . . . . . .1303.0 -25.0 1922.0 1183.0
Schroders (Non-Vo .1116.0 -16.0 1554.0 970.0
TuIIett Prebon . . . . . .361.0 -4.6 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .178.9 -2.2 204.1 148.3
CabIe & WireIess . . . .34.6 -1.0 54.3 31.3
CabIe & WireIess . . . .26.4 -0.8 76.9 26.3
COLT Group SA . . . . .92.0 -2.5 156.2 91.5
KCOM Group . . . . . . . .69.0 -1.5 84.0 47.5
TaIkTaIk TeIecom . . .129.9 -2.1 168.3 119.8
TeIecomPIus . . . . . . .727.0 -13.0 740.0 375.0
Booker Group . . . . . . .76.7 0.1 77.9 53.2
Greggs . . . . . . . . . . . .496.8 1.4 550.5 429.1
Morrison (Wm) Sup .301.0 -3.6 308.3 262.7
Ocado Group . . . . . . . .86.7 -1.0 285.0 85.5
Sainsbury (J) . . . . . . .298.5 -1.8 391.5 263.5
Tesco . . . . . . . . . . . . .404.7 -1.4 439.0 356.3
Associated Britis . .1088.0 4.0 1182.0 940.0
Cranswick . . . . . . . . .683.0 -2.0 896.0 588.5
Dairy Crest Group . . .345.2 -2.6 424.9 325.0
Devro . . . . . . . . . . . . .249.5 -3.3 296.9 218.0
Premier Foods . . . . . . . .4.4 -0.4 35.1 3.8
Tate & LyIe . . . . . . . . .649.5 4.5 656.0 490.2
UniIever . . . . . . . . . .2068.0 -16.0 2109.0 1777.0
Mondi . . . . . . . . . . . . .487.3 -6.6 664.0 450.1
Centrica . . . . . . . . . . .304.4 -0.9 345.8 282.6
InternationaI Pow . . .327.0 0.9 448.6 279.4
NationaI Grid . . . . . . .639.0 1.0 649.5 530.0
Pennon Group . . . . . .685.0 0.5 737.5 584.5
Severn Trent . . . . . .1521.0 -3.0 1571.0 1333.0
United UtiIities . . . . .604.5 -0.5 631.5 543.5
Cookson Group . . . . .473.0 -4.5 724.5 395.8
DS Smith . . . . . . . . . .195.2 0.2 266.2 163.5
Rexam . . . . . . . . . . . .321.6 -1.9 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1155.0 -15.0 1299.0 789.5
Bovis Homes Group .460.1 10.2 464.7 326.5
Persimmon . . . . . . . .489.6 6.2 502.5 336.5
Reckitt Benckiser . .3311.0 -37.0 3648.0 3015.0
Redrow . . . . . . . . . . . .117.0 -2.0 139.0 98.4
TayIor Wimpey . . . . . . .36.5 -0.5 43.3 22.3
Bodycote . . . . . . . . . .272.0 -0.2 397.7 225.6
Charter Internati . . . .863.0 -0.5 876.5 538.5
Fenner . . . . . . . . . . . .331.5 -3.4 422.5 256.0
IMI . . . . . . . . . . . . . . . .801.0 17.0 1119.0 636.5
MeIrose . . . . . . . . . . .321.5 1.4 365.4 265.7
Northgate . . . . . . . . . .244.1 -2.8 346.7 202.0
Rotork . . . . . . . . . . .1550.0 -30.0 1858.0 1501.0
Spirax-Sarco Engi . .1770.0 -9.0 2063.0 1649.0
Weir Group . . . . . . .1660.0 14.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .315.5 -14.6 499.0 238.7
TaIvivaara Mining . . .210.4 2.4 622.0 203.5
BBAAviation . . . . . . .177.4 -5.1 240.8 156.0
Stobart Group Ltd . . .124.0 -2.0 163.6 122.0
AdmiraI Group . . . . .1242.0 -20.0 1754.0 1227.0
AmIin . . . . . . . . . . . . .305.5 -7.0 427.0 270.6
Huntsworth . . . . . . . . .58.1 -1.9 85.0 56.0
Informa . . . . . . . . . . . .341.0 0.8 461.1 313.9
ITE Group . . . . . . . . . .176.5 -2.0 258.2 157.7
ITV . . . . . . . . . . . . . . . . .62.0 -0.5 93.5 51.7
Johnston Press . . . . . . .4.8 0.1 13.5 4.3
MecomGroup . . . . . .135.0 -3.0 310.0 135.0
Moneysupermarket. .100.0 -1.9 120.4 75.7
Pearson . . . . . . . . . .1158.0 1.0 1207.0 926.0
PerformGroup . . . . .201.0 -1.0 234.5 150.0
Reed EIsevier . . . . . .526.0 2.0 590.5 461.3
Rightmove . . . . . . . .1284.0 36.0 1307.0 736.5
STV Group . . . . . . . . . .96.0 -1.0 168.0 90.3
Tarsus Group . . . . . .135.0 -7.0 165.0 112.5
Trinity Mirror . . . . . . . .46.5 1.0 108.0 37.5
UBM . . . . . . . . . . . . . .481.8 16.6 725.0 416.0
UTV Media . . . . . . . . .123.8 -2.5 150.0 101.0
WiImington Group . . .91.5 2.0 183.0 82.5
WPP . . . . . . . . . . . . . .633.5 -6.5 846.5 578.0
YeII Group . . . . . . . . . . .3.7 -0.2 16.1 3.7
African Barrick G . . .557.0 2.5 618.5 393.5
AIIied GoId Minin . . .149.2 -5.5 281.3 34.4
AngIo American . . .2270.0 -34.0 3437.0 2138.5
AngIo Pacific Gro . . .255.0 -0.5 369.3 237.9
Antofagasta . . . . . . .1071.0 -7.0 1634.0 900.5
Aquarius PIatinum . .186.5 -5.1 419.0 163.1
BeazIey . . . . . . . . . . . .123.2 0.6 139.2 109.6
CatIin Group Ltd. . . .392.5 2.5 421.4 331.5
Hiscox Ltd. . . . . . . . . .382.8 -4.6 424.7 340.5
Jardine LIoyd Tho . . .684.5 9.0 709.0 571.5
Lancashire HoIdin . . .738.0 18.0 739.5 529.0
RSA Insurance Gro . .112.5 -1.8 143.5 106.0
Aviva . . . . . . . . . . . . . .333.3 -6.7 477.9 275.3
LegaI & GeneraI G . . .104.8 0.3 123.8 89.8
OId MutuaI . . . . . . . . .108.1 -0.7 144.8 98.1
Phoenix Group HoI . .519.0 -3.5 699.5 451.1
PrudentiaI . . . . . . . . .619.0 -2.5 777.0 509.0
ResoIution Ltd. . . . . .275.2 2.4 316.1 211.3
St James's PIace . . . .337.0 -8.1 376.0 236.2
Standard Life . . . . . . .209.9 -4.5 244.7 172.0
4Imprint Group . . . . .222.0 -10.0 295.0 200.0
Aegis Group . . . . . . .134.3 1.2 163.5 119.4
BIoomsbury PubIis . . .98.0 -0.5 138.0 95.1
British Sky Broad . . .675.5 10.5 850.0 618.5
Centaur Media . . . . . . .39.3 -0.8 73.0 36.0
Chime Communicati .202.0 -3.0 298.5 173.0
Creston . . . . . . . . . . . .85.0 1.0 121.0 72.0
DaiIy MaiI and Ge . . .395.9 -4.5 594.5 343.4
Euromoney Institu . .601.5 -9.5 736.0 522.5
Future . . . . . . . . . . . . . .10.0 -0.1 30.0 9.3
Haynes PubIishing . .215.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1894.0 -16.0 2631.5 1667.0
Centamin Egypt Lt . .105.9 1.5 197.1 89.7
Eurasian NaturaI . . .640.5 -11.0 1125.0 522.0
FresniIIo . . . . . . . . . .1597.0 -32.0 2150.0 1223.0
GemDiamonds Ltd. .198.0 -0.7 306.0 179.8
GIencore Internat . . .402.0 -6.0 531.1 348.0
HochschiId Mining . .464.8 -6.3 680.0 397.0
Kazakhmys . . . . . . . .874.5 2.0 1671.0 730.0
Kenmare Resources . .39.2 -0.4 59.9 18.4
Lonmin . . . . . . . . . . .1048.0 -29.0 1983.0 974.5
New WorId Resourc .491.0 -16.0 1060.0 410.5
PetropavIovsk . . . . . .677.5 -11.5 1165.0 543.5
RandgoId Resource 6335.0-115.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3159.5-142.5 4712.0 2712.5
Vedanta Resources .1164.0 -42.0 2559.0 948.0
Xstrata . . . . . . . . . . . .936.4 -12.6 1550.0 764.0
Inmarsat . . . . . . . . . . .457.1 1.1 719.5 389.7
Vodafone Group . . . .172.5 -1.0 182.8 155.1
Genesis Emerging . .446.0 -9.0 568.0 430.0
Afren . . . . . . . . . . . . . . .89.0 -3.0 171.2 73.6
BG Group . . . . . . . . .1352.0 6.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .430.9 5.4 509.0 363.2
Cairn Energy . . . . . . .286.1 -4.6 469.7 261.4
EnQuest . . . . . . . . . . .102.5 -1.7 158.5 86.6
Essar Energy . . . . . .283.6 -2.4 589.5 235.1
ExiIIon Energy . . . . . .265.0 -4.6 469.7 184.2
Heritage OiI . . . . . . . .225.5 -1.0 486.0 190.0
Ophir Energy . . . . . . .225.5 -0.7 299.0 184.5
Premier OiI . . . . . . . . .364.5 -4.2 535.0 310.0
RoyaI Dutch SheII . .2187.0 -5.0 2326.5 1883.5
RoyaI Dutch SheII . .2238.0 -3.0 2336.0 1890.5
SaIamander Energy .203.0 0.7 317.6 182.3
Soco Internationa . . .337.9 1.7 400.0 279.8
TuIIow OiI . . . . . . . . .1410.0 35.0 1493.0 945.5
Amec . . . . . . . . . . . . .876.0 0.0 1251.0 740.5
Hunting . . . . . . . . . . .632.0 -1.0 817.0 530.0
Kentz Corporation . .480.0 15.0 494.5 275.5
LampreII . . . . . . . . . . .228.2 4.2 395.2 224.0
Petrofac Ltd. . . . . . .1323.0 -12.0 1685.0 1108.0
Wood Group (John) .570.5 -0.5 715.8 432.5
Burberry Group . . . .1245.0 -17.0 1600.0 959.5
PZ Cussons . . . . . . . .352.0 -0.3 409.0 320.5
Supergroup . . . . . . . .657.0 -11.0 1820.0 652.0
AstraZeneca . . . . . .2971.5 -1.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .275.6 -4.8 309.7 210.1
Genus . . . . . . . . . . . . .989.0 -19.0 1111.0 800.0
GIaxoSmithKIine . . .1368.0 -7.5 1390.0 1127.5
Hikma Pharmaceuti .614.0 -19.0 900.0 555.5
Shire PIc . . . . . . . . . .2031.0 7.0 2136.0 1454.0
CapitaI & Countie . . .168.5 -4.0 203.7 142.5
Daejan HoIdings . . .2609.0 -40.0 2954.0 2282.0
F&C CommerciaI Pr . .96.2 -1.3 108.0 88.0
Grainger . . . . . . . . . . . .86.5 -2.5 133.2 77.3
London & Stamford .118.6 -1.3 140.0 112.9
SaviIIs . . . . . . . . . . . . .272.3 -8.1 427.1 256.2
UK CommerciaI Pro . .76.6 -1.2 85.5 70.4
Unite Group . . . . . . . .170.4 -3.2 224.1 152.9
Big YeIIow Group . . .265.0 -7.1 352.2 234.2
British Land Co . . . . .511.0 -13.0 629.5 452.0
CapitaI Shopping . . .328.7 -8.6 424.8 296.4
Derwent London . . .1628.0 -18.0 1880.0 1400.0
Great PortIand Es . . .351.1 -10.3 445.0 317.4
Hammerson . . . . . . . .408.2 -9.3 490.9 353.0
Hansteen HoIdings . . .78.5 -0.7 89.5 70.0
Land Securities G . . .686.5 -19.5 885.0 616.0
SEGRO . . . . . . . . . . . .236.5 -2.0 331.3 210.1
Shaftesbury . . . . . . . .491.2 -11.8 539.0 431.7
Aveva Group . . . . . .1417.0 -9.0 1799.0 1298.0
Computacenter . . . . .364.0 -3.0 490.0 354.8
Fidessa Group . . . . .1640.0 -30.0 2109.0 1409.0
Invensys . . . . . . . . . . .213.6 -1.5 364.3 199.6
Logica . . . . . . . . . . . . .87.1 -0.7 147.2 73.9
Micro Focus Inter . . .336.0 5.2 426.2 239.4
Misys . . . . . . . . . . . . .255.0 -2.8 420.2 214.9
Sage Group . . . . . . . .275.4 -1.6 302.0 231.7
SDL . . . . . . . . . . . . . . .664.0 -10.5 711.5 555.0
TeIecity Group . . . . . .582.0 1.5 588.0 430.0
Aggreko . . . . . . . . . .1739.0 10.0 2034.0 1394.5
Ashtead Group . . . . .150.8 -3.2 207.9 99.4
Atkins (WS) . . . . . . . .525.0 0.0 820.0 490.2
Babcock Internati . . .678.5 3.5 733.0 513.5
Berendsen . . . . . . . . .441.5 -0.3 568.0 391.3
BunzI . . . . . . . . . . . . .792.0 0.0 812.5 676.5
Cape . . . . . . . . . . . . . .471.8 9.4 591.5 348.8
Capita Group . . . . . . .703.0 -1.0 792.5 635.5
CariIIion . . . . . . . . . . .349.0 -8.0 403.2 298.8
De La Rue . . . . . . . . .837.5 6.5 854.5 549.5
DipIoma . . . . . . . . . . .304.0 -3.3 414.3 258.0
EIectrocomponents .207.9 -3.3 294.9 182.2
Experian . . . . . . . . . . .750.0 5.5 833.5 665.0
FiItrona PLC . . . . . . . .353.5 3.0 385.5 227.5
G4S . . . . . . . . . . . . . . .241.5 21.6 291.0 214.2
Hays . . . . . . . . . . . . . . .73.1 0.0 133.6 66.6
Homeserve . . . . . . . .448.8 -3.7 532.0 408.0
Howden Joinery Gr . .116.0 0.7 127.5 75.4
Interserve . . . . . . . . . .309.0 -1.4 341.3 183.5
Intertek Group . . . . .1933.0 6.0 2148.0 1715.0
MichaeI Page Inte . . .355.0 -2.5 567.0 338.7
Mitie Group . . . . . . . .240.0 1.7 244.0 194.1
Premier FarneII . . . . .170.5 -1.6 308.8 144.5
Regus . . . . . . . . . . . . . .69.9 -0.1 119.0 64.0
RentokiI InitiaI . . . . . . .68.7 -1.0 104.9 64.8
RPS Group . . . . . . . . .171.0 1.4 253.0 156.6
Serco Group . . . . . . .496.6 -2.9 633.0 489.8
Shanks Group . . . . . .106.1 -0.2 130.9 103.0
SIG . . . . . . . . . . . . . . . .99.5 2.6 153.5 83.8
SThree . . . . . . . . . . . .259.9 -6.7 447.6 213.2
Travis Perkins . . . . . .831.5 -3.5 1127.0 715.0
WoIseIey . . . . . . . . .1697.0 38.0 2261.0 1404.0
ARM HoIdings . . . . . .591.5 -5.5 651.0 338.9
CSR . . . . . . . . . . . . . .187.1 2.1 447.0 183.4
Imagination Techn . .457.0 -5.6 502.0 296.9
Pace . . . . . . . . . . . . . . .92.6 0.0 231.8 88.1
Spirent Communica .127.0 1.2 160.3 109.5
British American . .2779.0 -22.5 2871.0 2282.5
ImperiaI Tobacco . .2179.0 3.0 2231.0 1784.0
Betfair Group . . . . . . .735.0 -15.0 1550.0 567.0
Bwin.party Digita . . .102.8 -4.4 280.9 100.5
CarnivaI . . . . . . . . . .2176.0 30.0 3153.0 1742.0
Compass Group . . . .553.5 -0.5 612.0 511.5
Domino's Pizza UK . .455.8 -3.8 586.0 377.0
easyJet . . . . . . . . . . . .350.4 -3.7 479.0 301.0
FirstGroup . . . . . . . . .318.3 -7.8 412.6 301.8
Go-Ahead Group . . .1470.0 -11.0 1598.0 1118.0
Greene King . . . . . . .436.7 -10.7 518.0 410.0
InterContinentaI . . .1087.0 5.0 1435.0 955.0
InternationaI Con . . .162.5 -0.9 305.0 141.6
JD Wetherspoon . . . .426.4 2.4 468.3 380.5
Ladbrokes . . . . . . . . .134.0 0.3 155.3 114.0
Marston's . . . . . . . . . . .93.2 -1.6 117.1 84.6
MiIIennium& Copt . .413.4 3.0 600.5 375.6
MitcheIIs & ButIe . . . .236.0 -4.8 361.0 216.4
NationaI Express . . .229.2 -4.1 270.2 219.6
Rank Group . . . . . . . .126.3 -1.1 153.7 109.5
Restaurant Group . . .286.9 2.5 335.0 254.9
Stagecoach Group . .241.9 -6.1 272.4 189.8
Thomas Cook Group .45.0 -1.6 204.8 33.7
TUI TraveI . . . . . . . . . .160.2 0.1 271.9 137.2
Whitbread . . . . . . . .1635.0 8.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .228.8 -12.7 244.1 155.5
Abcam . . . . . . . . . . . .342.0 -2.0 460.0 307.0
AIbemarIe & Bond . .320.0 -5.0 400.1 272.0
Amerisur Resource . . .11.8 -0.8 29.0 9.5
Andor TechnoIogy . .503.0 -6.0 685.0 340.0
ArchipeIago Resou . . .69.4 -0.6 79.0 32.3
ASOS . . . . . . . . . . . .1445.0 5.0 2468.0 1198.0
AureIian OiI & Ga . . . .17.5 -0.8 92.0 16.0
Avanti Communicat .303.5 -7.5 735.0 248.5
Avocet Mining . . . . . .242.0 -8.5 286.8 173.8
BIinkx . . . . . . . . . . . . .146.8 0.3 158.0 70.5
Borders & Souther . . .49.8 -1.1 73.0 43.5
BowLeven . . . . . . . . .115.0 -1.8 398.0 74.5
Brooks MacdonaId 1216.0 -19.0 1372.5 940.0
Cove Energy . . . . . . . .82.5 -3.0 112.8 61.0
Daisy Group . . . . . . . .110.5 0.0 127.0 88.0
EMIS Group . . . . . . . .545.0 11.5 580.0 396.0
Encore OiI . . . . . . . . . .76.8 -0.8 151.5 40.8
Faroe PetroIeum . . . .154.0 10.0 218.3 130.0
GuIfsands PetroIe . . .186.0 -6.3 401.5 142.5
GWPharmaceuticaI . .92.0 -3.0 130.0 83.0
H&T Group . . . . . . . . .339.0 -0.8 395.0 277.0
Hamworthy . . . . . . . .532.0 20.0 705.0 373.8
Hargreaves Servic .1065.0 5.0 1080.0 676.0
HeaIthcare Locums . . . .4.8 0.0 5.3 4.6
Immunodiagnostic . .900.0 -20.0 1218.0 768.5
ImpeIIamGroup . . . .330.0 -0.1 387.5 155.0
James HaIstead . . . . .460.0 -5.0 495.0 345.5
KaIahari MineraIs . . .243.0 -6.5 301.0 161.5
London Mining . . . . .342.0 7.5 436.5 283.0
Lupus CapitaI . . . . . . .97.1 0.3 150.0 86.0
M. P. Evans Group . .400.0 -5.0 500.5 371.0
Majestic Wine . . . . . .416.8 -0.3 510.0 337.0
May Gurney Integr . .292.0 3.0 300.0 211.0
Monitise . . . . . . . . . . . .36.5 -0.5 39.0 18.5
MuIberry Group . . . .1405.0 5.0 1920.0 520.0
Nanoco Group . . . . . . .44.3 1.8 115.8 42.5
NauticaI PetroIeu . . .313.0 3.0 547.0 223.5
NichoIs . . . . . . . . . . . .548.8 -1.8 579.0 410.0
Numis Corporation . . .92.5 2.5 137.8 89.0
Pan African Resou . . .12.3 0.0 14.5 9.4
Patagonia GoId . . . . . .54.5 0.5 70.0 20.3
Prezzo . . . . . . . . . . . . .54.0 0.3 71.5 53.3
Pursuit Dynamics . . .193.5 -4.0 700.0 160.5
Rockhopper ExpIor .205.3 1.0 386.0 141.0
RWS HoIdings . . . . . .430.0 2.5 479.8 266.5
Songbird Estates . . .116.5 -3.5 160.3 110.3
VaIiant PetroIeum . . .477.0 -13.0 750.0 435.0
Young & Co's Brew . .615.0 25.0 712.0 530.0
G4S . . . . . . . . . . . . . . .241.5 9.8
UBM . . . . . . . . . . . . . .481.8 3.6
Kentz Corporation . .480.0 3.2
BeIIway . . . . . . . . . . .698.5 3.1
Rightmove . . . . . . . .1284.0 2.9
SIG . . . . . . . . . . . . . . . .99.5 2.7
DuneIm Group . . . . . .472.9 2.6
TuIIow OiI . . . . . . . . .1410.0 2.6
GKN . . . . . . . . . . . . . .195.1 2.5
Lancashire HoIding .738.0 2.5
Premier Foods . . . . . . . .4.4 -9.0
Dixons RetaiI . . . . . . .11.3 -7.3
WiIIiam HiII . . . . . . . . .228.8 -5.3
Ferrexpo . . . . . . . . . .315.5 -4.4
Rio Tinto . . . . . . . . .3159.5 -4.3
Bwin.party DigitaI . . .102.8 -4.1
Henderson Group . . .119.4 -3.8
Hargreaves Lansdow 488.2 -3.7
Jupiter Fund Manag .213.1 -3.6
AIIied GoId Mining . .149.2 -3.6
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.23 -0.15 103.0 100.2
Tsy 9.000 12 . . . .105.86 -0.74 114.6 105.9
Tsy 5.000 12 . . . .101.69 -0.04 106.1 101.7
Tsy 5.250 12 . . . .102.96 -0.02 107.5 102.9
Tsy 4.500 13 . . . .105.40 0.01 108.8 105.4
Tsy 2.500 13 . . . .285.02 0.29 287.7 277.6
Tsy 8.000 13 . . . . .114.21 0.01 120.7 114.2
Tsy 5.000 14 . . . . .111.86 0.09 114.1 109.2
Tsy 4.750 15 . . . . .114.04 0.14 114.8 108.6
Tsy 8.000 15 . . . .127.84 0.16 131.3 123.7
Tsy 7.750 15 . . . .101.85 -0.07 108.8 101.5
Tsy 4.000 16 . . . . .112.49 0.24 113.4 104.9
Tsy 2.500 16 . . . .342.24 0.55 342.6 310.2
Tsy 8.750 17 . . . .139.40 0.03 141.9 132.9
Tsy 12.000 17 . . .123.97 0.00 134.0 122.5
Tsy 1.250 17 . . . . .114.93 0.63 115.3 106.7
Tsy 5.000 18 . . . . .119.83 0.39 121.0 109.7
Tsy 4.500 19 . . . . .117.27 0.53 118.8 105.4
Tsy 3.750 19 . . . . .111.83 0.62 113.5 99.4
Tsy 2.500 20 . . . .353.64 0.98 355.6 312.4
Tsy 4.750 20 . . . . .119.46 0.64 121.4 106.6
Tsy 8.000 21 . . . .148.48 0.73 151.8 133.8
Tsy 1.875 22 . . . .123.70 1.28 125.4 111.3
Tsy 4.000 22 . . . . .114.04 0.84 115.6 99.0
Tsy 2.500 24 . . . .315.32 1.08 320.1 273.5
Tsy 5.000 25 . . . .125.31 0.93 126.9 107.4
Tsy 4.250 27 . . . . .116.75 1.06 118.1 97.9
Tsy 1.250 27 . . . . .117.80 1.09 121.0 104.6
Tsy 6.000 28 . . . .141.18 1.03 142.9 119.5
Tsy 4.750 30 . . . .124.08 1.15 125.6 103.0
Tsy 4.125 30 . . . .299.02 1.06 305.4 261.2
Tsy 4.250 32 . . . . .116.24 1.26 117.9 96.0
Tsy 4.250 36 . . . . .116.25 1.38 117.6 95.0
Tsy 4.750 38 . . . .125.54 1.47 126.9 102.8
Tsy 4.500 42 . . . .122.06 1.59 123.0 98.9
% %
ALTERNATIVE ENERGY
Wealth Management
I
N THE eye of another economic
storm, the issue of whether the world
will take a step closer to having one
set of accounting standards may not
be at the top of most executives minds.
Yet, in less than a month, the way in
which companies around the world report
their performances could see a fundamen-
tal shift.
The US regulator, the Securities and
Exchange Commission (SEC), is in the
final stages of deliberating whether the
States should adopt International
Financial Reporting Standards (IFRS) as
issued by the International Accounting
Standards Board (ISAB) rather than com-
plying with US Generally Accepted
Accounting Principles (US GAAP).
Hot on the heels of the decision will
come the G20 in November which, hav-
ing already called for the establishment of
one set of common reporting standards as
a way of bringing the global economy
back into line, will be asking for an update
on progress.
While ACCA, with more than 600,000
members and students around the world,
has always seen the value in having a com-
mon set of standards by which to report,
we have also believed that the views of the
end users of accounts are critical in any
decision making.
Too often, investors and potential
investors have the sense that they have
been kept on the sidelines of the debate,
which has broadly raged around the mer-
its of rules-based standards, such as US
GAAP, against those of principles-based
standards represented by IFRS.
This is nonsensical given that the issue
which boils down to whether they can
trust the numbers they read in accounts
and compare them with those of other
businesses is the equivalent of their ball
being kicked around.
This is why we asked investors and Chief
Financial Officers (CFOs) in Asia Pacific,
the Middle East, Europe and the US for
their views on whether global standards
can really help to resolve global economic
issues.
Judging from the responses, it appears
that, broadly, they do. Just over half of
CFOs and finance directors (FDs), 52 per
cent, and 58 per cent of investors, have a
positive view of the benefits of global stan-
dards.
The international study, which sur-
veyed a total of 163 senior executives from
a wide range of industries, including the
financial sector across the US, Europe,
Asia and the Middle East also found that
just 6 per cent of CFOs and FDs and 11 per
cent of investors believe that global stan-
dards have had a negative effect on inter-
national trade.
The study also found that as investors
and finance professionals became more
familiar with IFRS that any resistance they
might have had to using the new stan-
dards were eroded.
There were also signs that global stan-
dards can bring tangible benefits to busi-
ness. Critically, more than 40 per cent of
respondents said that using IFRS had
improved access to capital. And over 50
per cent of respondents said that the
spread of IFRS has had quite a positive
effect in facilitating cross-border activities.
This is significant, not only in tough
times when survival is paramount, but
also for businesses which need to recruit
more staff, or to buy new equipment to
enable them to take advantage of any sus-
tained recovery, when it finally arrives.
One of the riskiest times for businesses is
during a recovery because if they are
unable to meet increased demand
because they do not have capacity or the
potential to expand rapidly, they face fail-
ure.
Alongside global financial reporting
standards the study shows that there is an
appetite for global standards in other
areas too. For example, over 40 per cent of
investors found benefits from a switch to
international standards of auditing in
terms of quality and cost. And a rising
demand from investors and customers for
greater disclosure is fuelling an appetite
for global standards in non-financial
reporting.
The majority of respondents believe
global standards would improve areas
such as corporate social responsibility and
environmental risk, with a view that com-
panies risk management would also ben-
efit from having to report to a high,
globally recognised standard.
And there was strong support for global
standards in the critical area of corporate
governance. Interestingly, given all the
problems with the ways in which bonuses
are paid in the finance sector, 70 per cent
of investors and CFOs thought that global
standards or benchmarks in corporate
governance would encourage more long-
term thinking in the boardroom.
There is also a clear recognition of the
potential benefits of integrated reporting
whereby financial, governance and sus-
tainability information is presented
together which would improve decision
making by giving a more accurate picture
of overall corporate performance. We
believe that if global standards are to
deliver on their full potential for
investors, finance professionals and wider
society, then countries need to resist the
temptation to carve out sections which
they do not like, or add on specific
requirements because they believe they
have a better solution.
The key issue is ensuring the standards
that are in place are the best to serve
stakeholder interests and the feedback
is that those standards need to be global.
Our study suggests that investors and
finance professionals recognise that
achieving the best possible environment
for standards requires a more concerted
effort by stakeholders those who issue
and use financial reports to explain
what they want to see in the reports writ-
ten to these standards.
Judging by the value that many execu-
tives see in global standards as a means
for better aligning the interests of
investors and corporate boards, there
appears to be ample motivation for more
engagement.
Given that, there is real hope that
investors will cease being limited to the
role of mere spectators.
Investors should take
an active role in the
process of regulatory
changes so interests
are properly aligned
ANDREW LECK
HEAD OF ACCA UK
Global standards are set to provoke
continental shifts in accounting rules
City Focus| Accounting
By all accounts the
world is converging
Picture: GETTY
I
T may sound obvious that the num-
ber one rule of leather-care is to
take care of your leather. But when
you think about the amount of
wear and tear that happens when you
haul your holdall through customs,
scrape your bag through tube doors,
drop your wallet in puddles, you start
thinking that maybe this wisdom isnt
as daft as it sounds. The key is not to
leave your leather goods unattended for
years so that it perishes past the point of
no return, says Carol Bellingham,
leather buyer at Londons luxury goods
store William & Son, You must get there
before they look like theyre dying.
Theres no doubt that the key to your
bags looking as good as new is consistent
care. Carol shares her top tips with us on
keeping your leather, and other exotic
skins, in pristine condition.
1.
Polishing is paramount. Invest in
Russell and Bromleys neutral ani-
line cream, 4. This is the only
thing that will really bring your leather
back to life. Use sparingly, and only once
a month.
2.
Deal with scratches right away.
Use a little of the aniline cream to
disguise the scratch.
3.
Store carefully. When youre not
using them, store bags in a cloth
bag. Dont expose brightly coloured
leather to direct sunlight, or even moon-
light, which can fade certain pigments.
Also avoid humid places, especially if the
object is glued. The glue might start to
disintegrate.
4.
Try not to get your leather wet. If
you get caught in the rain, dry it
off as soon as you can with a
duster or a soft cloth. If the rain perma-
nently spots it, the leather might bubble
and never recover.
5.
Polish
crocodile
and
lizard skin.
Like normal
leather, try to
give this a polish
once a month with
aniline. Lizard is
quite brittle so a bit
of moisture on it
keeps it malleable.
6.
Brush bridle-
hide with a sad-
dle brush.
Bridlehide, used for doc-
ument cases and tradi-
tional hand stitched
briefcases, are tanned in
a different way from
leather used in hand-
bags. It has a natural
bloom that comes
through and
goes white,
which just
needs to be
brushed with
a saddle
brush. Dont
use the ani-
line cream as
it has already
got lots of
moisture in it.
The more you pol-
ish, the better it
gets.
7.
Ostrich skin is
tough enough. Dont
use aniline on this as it
is absorbent and porous and
it might stain and leave a residue.
On the whole, the skin is resilient, so it
wont scratch so easily.
If youve invested in good leather,
you need to know how to care for
it. Helena Lee finds out how to
keep your skins soft and supple
Pampering
your leather
HOW TO GET
DRESSED
Q.
I love the idea of wearing heels
but cant bear my feet being
uncomfortable. In the summer
I can get away with pretty sandals
and espadrilles, but I find winter really
hard. What can I wear thats suitable?
A.
The historic answer to this ques-
tion has been to wear the ballet
pump or the flat knee-high boot.
Unfortunately, these can look a little un-
polished and casual. A ballet pump is just
as uncomfortable as a vertiginous heel as
they lack arch support. It is also very
unflattering with a longer skirt hemline
and too underdressed for trousers. Knee-
high boots are hard work and wont go
with everything great for the weekend,
not so great for the office.
The alternative is a flat with a very
slight heel (similar to a mans dress shoe
heel). In a patent, the shoe will look
smarter (and infinitely more weather
proof). A patent shoe also holds its struc-
ture much better.
Another option is the wedge heel
youll feel like you are wearing flats and
gives the structure you need for rushing
across a cobbled London street while the
slight elevation gives height and improves
your posture. Rupert Sandersons Earl
style is supremely chic. If you feel the
cold, then a wedge ankle boot is even bet-
ter. They make a fiercer look which con-
trasts nicely with feminine dresses. Pair
with opaque tights and a blazer and you
will be able to transform a summery dress
into an autumn wardrobe. A black wedge
with black tights will give the illusion of a
never ending leg winters equivalent to
summers nude heel with bare legs. Try
Rupert Sandersons Hanover boots which
are sexy, but safe.
The catwalk collections for this season
and next spring are full of the lower kitten
heel. If you keep the shape sharp and
modern with a slightly cut away shape, it
will be equally as flattering as a larger
heel and will look endlessly more graceful
as you stride out with confidence rather
than tottering in fear.
A final option is the properly sensible
brogue, which is absolutely everywhere
this season. Keep them smart and choose
a patent. Enjoy its versatility by wearing
with a trouser suit or skirt above the knee
the midi length wont work with this
one.
www.rousiland.com
Q A
&
Clare Rous &
Kara Iland
FOUNDERS OF ROUS
ILAND MEMBERS
BOUTIQUE
What and where to buy
1 Agent Provocateur
Snake hold ups
30, www.agentprovocateur.com
2 Wolford
Gisella merino wool
79, www.wolfordshop.co.uk
3 Bebaroque
Sea holly print
39.59, www.bebaroque.co.uk
4 House of Holland
Super suspender
12, www.prettypolly.co.uk
5 Aristoc
Lace tights
12, www.mytights.com
6 Falke
Hibiscus pure matt
24, www.my-wardrobe.com
Lifestyle
33
Stocking up: autumn tights
1
4
5
6
Travel bag: conker brown
bridlehide with cream,
1,250
All from William & Son,
www.williamandson.com
2
3
Laptop document
case: yellow hide with
cream, 1,650
RUSSELL NORMAN ON
POLPO DOMINATION
IN TOMORROWS LIFESTYLE
Episode 32: Sleepless in the City a day in the life with baby twins
0
0.00 Gabriella doesnt do nights.
Seems its an opportunity for
babies and parents to bond. So
one day ends and another begins
with Emma and me feeding the twins.
01.45 Ditto after an hours sleep.
02.15 Harry has colic. I pace the dark-
ened bedroom with him wailing into my
shoulder. Emma sleeps soundly.
03.15 Feeding AGAIN.
06.00 Noel bounds into our bedroom.
Emma affixes Gwenllian to her breast
and suggests I make Noel breakfast. I
mutter something about Maria.
07.00 Noel is fed, washed, dressed and
were reading My dad goes into space.
Maria and Gabriella emerge. Emma
descends, one wailing twin in each arm.
We grunt at one another.
07.30 Emma and I slip back to bed.
09.15 For 90 minutes I discuss the cur-
rent deal with Juliette. Fear Im barely
coherent.
11.00 I dress. Emma and I take the
twins for a walk. Grab a coffee. Feed
twins.
12.00 Nick calls. I decline becoming
chairman of his company. Offer to help,
informally, with negotiations. Then find
myself offering to invest. Foolish. After
90 minutes, we agree to meet next
week.
14.00 Unbelievable. Emma has arranged
for a party planner to visit to discuss my
forthcoming 40th. I feel 80. Am rude.
15.30 Noels home. Computer, television,
homework, dinner, bath and bedtime
stories ensue. Its a breeze. Meanwhile,
Emma, Maria and Gabriella outnumber
the twins and survive the afternoon.
20.00 Noels asleep. The Dynamic Duo
are off duty. The twins feed. Breasts and
bottles. They dont seem fussy. Just insa-
tiable.
21.00 Emma and I sit in front of the tel-
evision, eating, one twin on each of our
laps. No idea what were watching.
21.59 In bed. The twins have fed and
slept all evening. Now they want to play.
00.00 Drowning. Not swimming.
Thankfully, paternity leave ends on
Friday.
City Dad will be continued next Tuesday.
For previous episodes, see
www.cityam.com
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Prevent lasting
pain and get
back to basics
Y
esterday saw the start of Back
Awareness Week, an initiative
designed to promote awareness of
back pain and its surrounding issues.
Its just as well, as research shows that over
80 per cent of Brits will experience low back
pain at some point in their lives. Here are my
top tips to keep your backs healthy for city
types:
WATCH YOUR BAG
Although youre unlikely to sustain any last-
ing damage from an oversized handbag, car-
rying anything much over ten pounds is
thought to place excess strain on your back.
If you must go for a single strap bag over
the shoulder, at least ensure the strap is
padded and wide. Also, backpacks may be
uncool and wheelie cases may make fellow
tube travellers homicidal, but at least you
wont be clogging up A&E with your frozen
shoulder.
CREATE A CAST-IRON CORE
When Three Musketeers star Orlando Bloom
broke his back, he thought he might never
walk again. To stay as pain free as possible,
he admits that Pilates, the regime with
strong focus on the core muscles, is a must.
Body Control Pilates, one of the UKs leading
Pilates organisations has launched
Back4Good, a new initiative that provides a
long-term solution to managing lower back
pain. Their practitioners are experienced
teachers but have undertaken extensive
training exclusively related to exercise refer-
ral and low back pain. Visit www.bodycon-
trol.co.uk for more info.
MIND YOUR MOVES
Whether thats slouching instead of sitting,
or twisting as youre bending (a back no-no)
theres lots you can be doing in your daily life
to prevent episodes of back pain. Try to
avoid standing, bending or driving for long
periods, too.
WATCH THE POUNDS
Sorry I had to get it in. I dont think any-
thing will stress that poor spine quite like
excess weight. Those with a high body mass
index (BMI) are at greater risk for back,
joint and muscle pain than their slim coun-
terparts. Fact.
www.laurawilliamsonline.co.uk
recovery after long days of skiing.
On top of that, here are some tips from
Jenny that you can do, whether skier or
boarder, to strengthen your muscles, and
feel primed by the time you slip your skis
on.
1.
The Squat: This is a great all round-
er exercise: it can be used to
increase leg strength, leg power,
endurance, core strength and flexibility,
depending on how it's used in a program.
When you are snowboarding youre pret-
ty much constantly in a slight squat
position so its a very relevant exer-
cise.
2.
The Single Leg Squat: The
forces going through each leg
vary when riding, so single leg
exercises help to train for that. These
give a big balance challenge and they
develop postural control and range of
motion pretty much everywhere. The
exercise is brilliant for strengthening
both the knee joints and
core stability.
3.
The Step Up:
This exercise
changes the
amount of work you do at
If youre trying a
jump, make sure you
practice your step
ups.
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Helena Lee jghkghjkgh
W
HETHER youve already booked
your ski holiday (why, how sen-
sible you are), or are still hunt-
ing for the right chalet (the
best deals come at the end of October, of
course), its time to get excited about the
slopes. You may think its early, but the
more prepared your body is, the fewer
injuries youll sustain, which will make
for a guaranteed good-time holiday.
Youll be able to get round the moun-
tains more, hit the side of the piste and
still be able to walk the next day, says
Jenny Jones, one of the worlds leading
Slopestyle snowboarders.
And what with the Ski and
Snowboard show launching today in
Earls Court, where you can kit yourself
up, theres no better time to start prep-
ping. The first thing you want to do is
increase your core work, then work on
specific exercises. Do more core
strengthening exercises to help twisting
and turning on the ski slopes and
also to provide you with more
stamina, suggests personal
trainer, Mark Anthony
(www.markanthonysuk.com),
and increase your anaerobic
workouts. Move quicker from
exercise to exercise with shorter
rest periods to enhance your
different joint angles more than a single
leg squat and they are great for the glutes
(joint angles are forever changing with all
the variable terrain you are riding as you
have to bend and react to the snow). This
is particularly good for the calf. It
strengthens knee ligaments so you can
take tumbles better.
4.
The Nordic Hamstring: The squat
and step up movements are a little
heavier on the quads so these exer-
cises are used to increase strength in the
hamstrings. This exercise allows you to
stretch out your legs and prevent pulling
a muscle when youre going down the
slopes, and is great for core stability.
Youll be able to turn your hips more easi-
ly and turn better. Start by fixing your
feet in a kneeling position. Lower your
torso towards the floor by straightening
your legs. Bring your body back to the
kneeling position.
5.
The Abdominal Curl Up: Being
able to switch on your core correct-
ly is important in any sport, and
these curl ups are brilliant for doing that.
The London Ski and Snowboard Show 2011,
Earls Court from 19-23 October, visit www.met-
rosnow.co.uk for tickets or buy on the door.
Squat, step and
curl your way
to ski fitness
CITY DAD
Start limbering up now with these short exercises
to enjoy the slopes later, writes Helena Lee
Lifestyle | Health
substance is a matter of conjecture and
depends on the value you put on standing
out from the crowd. Vive la diffrence!
PORCHE CAYMAN R
Porsches Cayman R has beaten the Aston Martin Vantage S, BMW
1M, Jaguar XKR-S, Lotus Evora S and McLaren MP4-12C (among
others) to the title of Britains Best Drivers Car for 2011 from
industry magazine Autocar. It even beat Porsches own 911 GT3 RS.
Our review of the Cayman R will be here next week.
CAR TALK BY RYAN BORROFF
HYUNDAI VELOSTER
Hyundai's unusual Veloster three-door coupe will go on sale in
February next year priced from 17,995. The most economical car in
the range will be the Blue Drive version. Capable of 47.9mpg (com-
bined) and with CO2 emissions of just 137g/km, it will cost
18,345.
BMW 3-SERIES
The all-new BMW 3-series has been launched in Munich. BMWs
most popular saloon, which will go on sale in February, is faster and
more frugal across the range than its predecessor. It also looks
quite different and has a long bonnet similar to that seen on the 5
and 7-series models.
Citrons new DS is a C4 evolution
The car for the younger, trendier audience doesnt quite live up to its name.
T
HE Citron DS remains one of the
coolest cars of all time. Launched
in 1955, it came to define Citron
and became a cultural icon for
France thanks to its groundbreaking
styling and technological innovation.
The French manufacturer is hoping that
some of that former glory rubs off on its
new DS4 the second model in its emerg-
ing DS line after the much-lauded DS3.
Sadly, the DS range only shares the DS
name, and has none of the groundbreak-
ing technology or elegant looks of
Citrons most iconic car. These days, DS
is a brand that takes Citrons more ordi-
nary, predictable models in this case the
C4 hatchback and reworks them for a
younger, trendier and wealthier audi-
ence. This car is essentially the same car
as the C4 saloon, albeit with a more excit-
ing character and some performance
tweaks.
However, that is not to say that it isnt
any good. Looks-wise it resembles a stylish
if quirky crossover, a blend of compact
4x4, coupe and five-door hatchback. Its
front end is more SUV than what follows
behind. At the rear the roof tapers down
coupe style. This fastback look is
enhanced by the visual trick of integrat-
ing the rear door handles into the rear
window frame.
The only complaint is that the shape of
the rear window bears so little relation to
the door below it, its impossible for the
window to wind into the door. And it
doesnt. Citron just decided to make
non-opening rear windows. The effect in
the back seat, despite plenty of head and
legroom, is a sense of confinement.
Inside the car is a step forward in terms
of quality. The design of the interior is so
cool, the instrumentation is illuminated
in blue with red pointers to indicate
speed. Its unusual and quite beautiful.
But its also quite tricky to read at first,
though you do get used to it.
The seats are stylish and comfortable.
Our seats had a leather weave design,
which somehow managed to combine the
comfortable warmth and familiarity of
an old favourite leather chair with a con-
temporary style thats so on trend, its
sharp. The result is an interior that has an
expensive lounge feel about it, an ambi-
ence not lost on Citrons marketing peo-
ple who call it their Habana Club
option.
The new DS4 is fast,
sporty and good
looking, but just not
as cool as the original
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhhi
PRACTICALITY hhhii
VALUE FOR MONEY hhhii
THE FACTS: CITROEN DS4
DSPORT
PRICE: 23,650
0-62MPH: 8.5secs
TOP SPEED: 146mph
CO2 G/KM: 149g/km
MPG COMBINED: 44.1mpg
On the road this 200hp 1.6-litre petrol-
engined version certainly has some atti-
tude. Capable of 0-62mph in 8.5 seconds,
the DS4 feels fast and the engine makes a
beefy note, which is pleasing, though arti-
ficial. Fuel consumption, even on this
sportiest of models, is good, 44mpg is pos-
sible on a combined cycle. Its a very good
engine.
The driving position is higher than a
regular saloon yet it doesnt feel like a
SUV. The handling is also surprisingly
good. The six-speed manual gearbox is
sporty and quick. Its an exciting enough
drive and feels far sportier than youd
think from the exterior or design. The
ride can be too harsh and a bit jarring,
though.
So the DS4 is a C4 transformed and
remarkably different from the original
car its based on. Whether its style over
Lifestyle
WORDS BY
RYAN BORROFF
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FILM2011 WITH CLAUDIA
WINKLEMAN BBC1, 11.20PM
New series. The host and journalist
Danny Leigh return to discuss the
weeks new releases, beginning with
Steven Soderberghs film Contagion.
KIRSTIES HANDMADE BRITAIN
CHANNEL4, 8PM
New series. Kirstie Allsopp visits fairs
across Britain to put her creative skills
to the test by entering some of the
toughest craft competitions.
PAUL MERTONS ADVENTURES
CHANNEL5, 9PM
New series. The comedian turns travel
presenter in a range of globetrotting
enterprises to learn about some of the
most fascinating places on Earth.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.30pm
Youre on Sky Sports! 11.30pm
Footballs Greatest 12amFIFA
Futbol Mundial 12.30amUEFA
Champions League Goals 1.30am
Youre on Sky Sports! 2.30am
Footballs Greatest 3amUEFA
Champions League Goals 4am
FIFA Futbol Mundial 4.30am
Footballs Greatest 5am-6am
UEFA Champions League Goals
SKY SPORTS 2
6pmUEFA Champions League
Pre-Game Show7.30pmLive
UEFA Champions League 10pm
UEFA Champions League Goals
11pmWatersports World 12am
International One-Day Cricket
2am-3amNFL: Total Access
SKY SPORTS 3
1.25pmLive International One-
Day Cricket 9.30pm2011 PGA
Grand Slam of Golf 1amAsian
Tour Golf Show1.30amInside the
PGA Tour 2amChampions Tour
Golf 3amEuropean Tour Weekly
3.30amTotal Rugby 4am-5am
Trans World Sport
BRITISH EUROSPORT
5.35pmLive WTA Tennis 7.25pm
Wednesday Selection 7.30pm
Equestrian 8.30pmRiders Club
8.35pmPGA Tour Golf 9.35pm
European Tour Golf 10.05pmGolf
Club 10.10pmYacht Club
10.15pmWednesday Selection
10.35pmFootball
11.35pm-12.35amWorld
Superbikes
ESPN
6.45pmESPN Press Pass 7.15pm
Goal Show7.45pmESPN Kicks:
Extra 8pmESPN Films: Catching
Hell 10pmPremier League World
10.30pmSerie A Rivals
11.30pmESPN Press Pass 12am
World Series of Poker Europe 1am
Fight Code 2.30amGoal Show
3amSerie A Rivals 4amESPN
Press Pass 4.30amESPN Game of
the Week 5amFrench Top 14
Rugby Union 5.30am-6amPlanet
Speed
SKY LIVING
7pmCriminal Minds 8pmThe
Secret Circle 9pmSteps Reunion
10pmSupernatural 11pmBones
12amCriminal Minds 1amCSI:
Crime Scene Investigation
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmDont Tell the Bride 9pmUp
for Hire Live 10pmThe Fades
11pmFamily Guy 11.45pm
American Dad! 12.30amUp for
Hire Live 1.30amThe Fades
2.30amDont Tell the Bride
4.25am-5.25amBizarre ER
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmFILM
Independence Day 1996. 10.45pm
FILMRun Fat Boy Run 2007.
12.45amThe Big Bang Theory
1.45amScrubs 2.40amHow I
Met Your Mother 3.05amRules of
Engagement 3.25amReaper
4.10amGlee 4.55am-6am
Switched
HISTORY
7pmAmerica: The Story of the US
8pmAx Men 9pmSwamp People
10pmOnly in America 11pm
Seven Deadly Sins 12amSwamp
People 1amAx Men 2amSeven
Deadly Sins 3amAmerica: The
Story of the US 4amPawn Stars
4.30amStorage Wars 5am-6am
Ancient Discoveries
DISCOVERY
7pmMythbusters 8pmFactory
Line 9pmAlone in the Wild
10pmTop 10 Mega Engineering
11pmWheeler Dealers 12am
Bear Grylls: Born Survivor
1amWheeler Dealers 2amTop 10
Mega Engineering 3amDeadliest
Catch 3.50amWildest Africa
4.40amHow the Universe Works
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Stories 8pmI Didnt
Know I Was Pregnant 9pm
Untold Stories of the ER 10pm
A&E 11pmHospital Sydney 12am
Untold Stories of the ER 1amA&E
2amHospital Sydney 3amI Didnt
Know I Was Pregnant 4amA
Baby Story 5am-6amDeliver Me
SKY1
8pmThe Middle 8.30pmModern
Family 9pmAn Idiot Abroad
10pmFringe 11pmStrike Back:
Project Dawn 12amBrit Cops:
Frontline Crime UK 1amRoad
Wars 1.50amUK Border Force
2.40amLost 4.20amMy Pet
Shame 5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmWaterloo Road: BBC
News: Regional News
8.30pmPlanet Dinosaur
9pmBritains Child Beggars 10pm
BBC News 10.25pmRegional News
10.35pmThe National Lottery
Wednesday Night Draws 10.45pm
Ask Rhod Gilbert 11.20pmCHOICE
Film 2011 with Claudia Winkleman:
National Lottery Update 12am
FILMMorvern Callar. 2002.
1.35amWeatherview1.40amSign
Zone: See Hear 2.10amSign Zone:
Watchdog 3.10amSign Zone: Made
In Britain 4.10am-6amBBC News
6pmEggheads:
6.30pmStrictly Come Dancing
It Takes Two
7pmA History of Ancient
Britain: Neil Oliver charts the
battles that marked the
beginning of Roman Britain.
8pmAll Roads Lead Home
9pmFaster Than the Speed of
Light?
10pmRab C Nesbitt
10.30pmNewsnight: Weather
11.20pmThe Lions New
Zealand 1971
12.20amDamages
1amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmLive UEFA Champions
League: Marseille v Arsenal
(Kick-off 7.45pm).
10pmITV News at Ten
10.30pmLondon News
10.35pmUEFA Champions
League: Extra Time:
11.35pmLadette to Lady:
Australia
12.30amThe Zone; ITV News
Headlines
2.35amFILMThe Four
Musketeers. 1974. 4.20am-5.30am
ITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Kirsties Handmade
Britain 9pmGrand Designs 10pm
Fresh Meat 10.50pmShameless
11.55pmRandom Acts 12amMusic
on 4: On Track 12.30amMusic on
4: The Album Chart Show:
Spotlight 12.45amMusic on 4: The
Album Chart Show Introduces
Joe Jonas 1amMusic on 4: 4Play:
Slow Club 1.15amMommas Boy
1.35amWithout a Trace 2.20am
Laid Off 2.35amFILMThe History
of Mr Polly 1949. 4.10am
Catastrophe 5.05amCountdown
5.50am-6.15amThe TV Book Club
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmNew Highland
Emergency: 5 News Update
8pmDangerous Drivers
School: 5 News at 9
9pmCHOICE Paul Mertons
Adventures
10pmBig Brother
11pmImpossible? 12amPoker: The
Big Game 12.55amSuperCasino
4amThe Family Recipe 4.05am
Michaelas Wild Challenge
4.30amMichaelas Wild Challenge
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3
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Gradient (5)
3 Large ladle (5)
7 Fanciful but graceful
asymmetric
ornamentation (6)
9 Panache (4)
10 Hardy annual cereal grass (3)
12 Expression used at the
end of a prayer (4)
13 Moderately warm (5)
15 British system of medical
care (inits) (3)
17 Loosen (5)
19 Smoke-duct (4)
21 Sleeveless outer garment
worn by Arabs (3)
22 Juicy, gritty-
textured fruit (4)
23 Remain awake beyond ones
normal bedtime (4,2)
25 African country,
capital Tripoli (5)
26 Struggle for breath (5)
DOWN
1 High-pitched
noise resembling
a human cry (6)
2 For, in favour of (3)
4 Grovel (5)
5 Languish (4)
6 Compass
point (5-4)
8 Dirt-free (5)
11 Afrmative
word (3)
14 Decoration made
by tting pieces
of wood into a
surface (5)
15 Pen tip (3)
16 Folk (6)
18 After the
expected time (5)
20 Gemstone (4)
24 Deciduous tree (3)
O
E
O
A
S L
P
G
I

4
4

D R A P E A W A I T
U R I R E
B O R E D D E M U R
A C A X M
I M P E C U N I O U S
A D G S R
I N T E R E S T I N G
S N R E R
S K A T E I N T R O
U N L C S
E X T O L V E N U S
9 4 6 6 9 7 4 8
7 1 2 3 8 2 1 4
3 1 7 2 9 5
1 2 4 5 3 5
8 6 5 9 7 4 2 1
3 8 1 7 5
7 9 8 6 8 7 3 9
1 6 4 3 1 2
2 1 2 9 8 5
2 8 7 3 1 6 2 1
8 7 9 6 3 9 6 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
RENOVATED
Lifestyle | TV&Games
Sport
E
NGLAND have been thoroughly
outplayed in the opening two
one-day internationals against
India and there is every danger
this series could end up being a white-
wash if changes arent made.
I dont want to be overly critical as
India is an exceptionally tough place
to tour at the best of times, and having
been destroyed by England in all for-
mats of the game over the summer,
they were always going to be deter-
mined, in front of their own fans, to
right a few wrongs.
Furthermore, Ive been reasonably
encouraged about the steps that have
been taken to revamp the side follow-
ing the World Cup in March, but there
is one department that clearly isnt
functioning and thats the opening
combination.
England have attempted to go down
the pinch-hitting route with Craig
Kieswetter, and before him Steven
Davies and Matt Prior have both tried
and failed.
Its a pretty thankless task to be
asked to go out there and hit sixes
from the first ball its a high-risk
strategy that is likely to pay-off less
than 50 per cent of the time unless
your name is Adam Gilchrist.
Having said that, this is a tour for
experimentation and as this is essen-
tially a young side, I feel its time for
Englands senior batsman to be
entrusted with extra responsibility,
and for me that means opening with
Ian Bell.
There was a suggestion that Bell
had been a bit under the weather and
thats the only explanation I can offer
for him having been left out of the
opening two games.
England experimented with Kevin
Pietersen opening the batting at the
World Cup before he got injured, but
right now Id say Bell has surpassed
him as our most complete batsman.
Pietersen exploded onto the scene
with those three centuries against
South Africa, the type of which wed
never seen the like of from an England
player, but to me those days are gone.
Bell, even at his best, will never pro-
vide the same sort of fireworks but he
can play shots all around the wicket
and is capable of batting out 50 overs
in a way that none of the top order,
Jonathan Trott aside, albeit at a slower
pace, seem capable of right now.
Elsewhere, the selectors have shown
a tremendous amount of patience and
faith in Samit Patel and as hard as hes
worked on his game I just dont see
him developing into anything more
than a bits and pieces cricketer.
I championed the young leg-spinner
from Durham, Scott Borthwick, last
week and although pitching him in at
this stage of the series would repre-
sent a baptism of fire, if youre going
to take these guys on tour it would
serve them better in the long run to be
out there in the middle, rather than
simply taking in the sights.
A
S ALASTAIR Cooks one-day
team toil on the Subcontinent
against an Indian side intent
on righting the wrongs of
their catastrophic summer tour,
arguably Englands most destructive
batsman sits at home, almost
resigned to the fact the book has been
closed on his limited-overs interna-
tional career.
Championed, legitimately so on
the evidence of this summers
exploits, as Englands answer to
Adam Gilchrist in the role of wicket-
keeper-batsman, Matt Prior could jus-
tifiably feel aggrieved at having been
made the highest-profile casualty of
Englands World Cup campaign back
in March.
Prior, who passed 50 only once in
what are likely to represent the final
24 matches of his ODI stint, however,
sees it differently.
I had 67 games so I cant argue I
didnt have a pretty good go at it,
said the 29-year-old, who made his
debut back in 2004. There are
so many reasons I could
offer as to why it never
worked out. I batted up
and down the order
and didnt have a
long enough
run.
But ulti-
mately I had all
those matches
and didnt per-
form to the level I
wouldve wanted to.
When you get given
chances in profession-
al sport you have to take
them and when you look
back at it I have to admit I didnt.
Ill keep working hard like I
always do and maybe I can work my
way back into that side but there
are about four 20-year-olds so Im
probably at the back of a very long
line.
While the Hampshire stalwart
is considered surplus to requirements
in the shorter formats, Prior has
become an integral part of Andrew
Strausss all-conquering Test side.
He has transformed himself from a
middle-order biffer who kept a bit
into an orthodox game-
changing batsman now
worth his place in the
side on the strength of
his keeping alone.
Opportunities for
Prior to showcase his
talent are becom-
ing depressingly
less frequent,
however, as the
popularity of
Test cricket
decreases and
the authori-
ties milk the
T we n t y 2 0
cash cow
d r y .
Strauss yesterday voiced fears for the
future of five-day cricket in the wake
of the decision to abandon plans for a
World Test Championships, which
had been due to be held in 2013.
And for Prior, a player who looks
destined to earn his keep in white
rather than coloured clothing, that
news came as a bitter blow.
He said: Obviously thats disap-
pointing for me. Test cricket is my pri-
ority, I absolutely love the game and
its the best form of the game. It
would have been great to have an
actual competition rather than play
series after series.
You see the scenes from the World
Twenty20 finals and the England
guys getting to celebrate when its
not based on things like points and
rankings. Something like that for Test
cricket wouldve been great.
Priors enforced break at least
means he has time to reflect on an
outstanding summers work in which
he made centuries in both Tests at
Lords against Sri Lanka and India.
Unfortunately, Priors most memo-
rable act of the summer came at HQ
in the draw against Sri Lanka when,
after being run out in a mix-up with
Ian Bell, he took his frustration out
on a window in the Lords pavilion.
If you smash a window at Lords
and it makes that much noise people
are always going to talk about it, he
said. Especially when its a very bor-
ing day of Test cricket and theres
nothing else to talk about.
Thats part and parcel of it but
hopefully everyone can move on from
that now because it was a fantastic
summer for me personally, especially
against India, and I took a huge
amount of pride from it.
Matt Prior was supporting the NatWest
OSCAs at Lord's, held annually to reward
volunteers and celebrate the unsung heroes
of the game. Find out more at
natwest.com/cricket
Results
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email sport@cityam.com
Smashing sixes, not windows,
is what defined my summer
England star Matt
Prior opens up on
his one-day exile.
By James Goldman
Prior infamously broke a window at Lords but prefers to remember the summer for his batting heroics Pictures: ACTION IMAGES
Time for Bell to take on pivotal England role
CRICKET COMMENT
ANDY LLOYD
Sport 38 CITYA.M. 19 OCTOBER 2011
ARSENAL manager Arsene Wenger
admits his sides latest Champions
League campaign is offering him a
pleasant distraction from what has
been a turbulent start to the domes-
tic season.
The Gunners are well placed in
Group F after following up a cred-
itable draw in Dortmund with a nar-
row win over Olympiacos a fortnight
ago. Victory in Marseille tonight
would in all likelihood put them
within three points of the knockout
stages.
By stark contrast, Sundays jittery
2-1 win over Sunderland, achieved on
the back of a Robin van Persie brace,
moved Arsenal into the top-half of the
Premier League table for the first
time this season.
We play with a bit more freedom
away from home in Europe and there
is a bit less pressure, admitted
Wenger, who expects midfielder
Aaron Ramsey to have recovered from
a slight hamstring strain.
But in [the qualifier] Udinese we
also played with massive pressure
because that was the game of the sea-
son for us. Not to win that game
would have been a disaster.
You can see since then that it was
a good game (to win) because Udinese
are top of the league in Italy and at
the time I could feel they were a very
good side.
Left-back Kieran Gibbs misses out
with a stomach injury against the
French club, who like Arsenal are
struggling at home but thriving in
the Champions League.
Thomas Vermaelen is a fortnight
away from full fitness but Arsenal
have been boosted by the news that
the former Ajax centre-half has com-
mitted his future to the club by sign-
ing a new long-term contract.
Wenger said: We are delighted
that Thomas has signed a new long-
term contract. Our plan is always to
sign top-quality players and with
Thomas extending his contract, we
have done just that. Thomas is a spe-
cial player, who has always made a
huge contribution on the pitch.
MANCHESTER United manager Sir
Alex Ferguson praised Wayne
Rooneys composure after the striker
kept his nerve to fire the champions to
a first European victory of the season.
Rooney, sent off for England on his
last competitive start, scored two sec-
ond-half penalties as United downed a
resolute Otelul Galati side in
Bucharest.
A red card for defender Nemanja
Vidic, on his return from injury,
meant both sides finished with 10
men and soured Uniteds triumph
slightly, but Ferguson was content
enough with Rooneys contribution.
He showed composure and took his
penalties well, said Ferguson. In the
second half we improved a great deal.
Nanis performance was terrific,
Rooney started to come into the game,
Anderson was terrific. I was satisfied
with the result.
We won -- thats the important
thing. We said before that if we won
our next two games that brings us to
eight points. Ive always said that 10
points gets you through.
Ferguson called Vidics dismissal, a
straight red card for a high tackle in
the 67th minute, very harsh but said
he would be unlikely to appeal referee
Felix Brychs decision. He added: I
dont think you win these things.
Rooney was left on the bench for
Saturdays 1-1 draw at Liverpool,
which came less than 48 hours after
learning he would be banned for three
international games, ruling him out
of the Euro 2012 group stage.
He was back in the starting line-up
last night against the Romanian
champions but found his involvement
restricted until the second half, when
the visitors gained the upper hand.
The breakthrough came in the 64th
minute, when Rooneys cross was han-
dled in the penalty area by Sergiu
Costin and the striker sent goalkeeper
Branko Grahovac the wrong way.
Vidics sending off gave the home
side hope, but they then saw Milan
Perendija dismissed for a second book-
ing and Rooney made the points safe
in injury time when he won and
emphatically scored his second spot
kick of the evening.
Wengers Arsenal feel more at home in Europe
Rooneys spot
on to secure
Uniteds win
FORGOTTEN man Gavin Henson has
completed a U-turn and returned to
his native Wales to sign for Cardiff
Blues.
Lions centre Henson, who was
released by French side Toulouse in
the summer, has penned an eight-
month contract. The 29-year-old
insisted he wanted to get away from
Wales when he negotiated his early
release from Ospreys and signed for
Saracens 12 months ago.
But Henson only played four games
for the Premiership champions
before joining Toulouse in February.
He fought his way back into
Warren Gatlands Wales squad but
missed out on the World Cup squad
with a wrist injury.
BY JAMES GOLDMAN
FOOTBALL
MARSEILLE
ARSENAL
BY FRANK DALLERES
FOOTBALL
0
2
OTELUL GALATI
MANCHESTER UTD
BY FRANK DALLERES
RUGBY UNION
ENGLAND wing Mark Cueto has leapt

to the defence of manager Martin
Johnson as uncertainty surrounds his
future following a disastrous World
Cup.
Johnsons men crashed out in the
quarter-finals, equalling their worst
ever campaign, and were dogged by
off-field controversy.
That has led to questions about the
future of Johnson, who also stands
accused of failing to find the right sys-
tem to get the most out of his players.
But Cueto said: No-one cares about
how youre playing if youre getting
results. The result is the priority, the
performance is No2.
Thats rugby though, thats the
way it always has been and thats the
way it always will be.
Former England captain Will
Carling has tipped Johnson to walk
away, rather than attempt to lead the
squad into a home World Cup in
2015. I dont know if Johnson will
put himself up again, he said.
Hes a very loyal man and if he is
told the coaching team needs to
change, would he hang around? I
dont know.
World Cup star Cueto defends Johnson
reign as Carling predicts boss may quit
BY FRANK DALLERES
RUGBY UNION
Marseille 2 2 0 0 4 0 6
Arsenal 2 1 1 0 3 2 4
Dortmund 2 0 1 1 1 4 1
Olympiacos 2 0 0 2 1 0 0
GROUP F
TEAM PLD W D L F A PTS
Benfica 3 2 1 0 4 1 7
Man Utd 3 1 2 0 6 4 5
Basel 3 1 1 1 5 6 4
Galati 3 0 0 3 1 5 0
GROUP C
Rooney started on
the bench against
Liverpool on
Saturday
Picture: ACTION
IMAGES
Henson joins Cardiff in
fresh bid to revive career
Sport
CHELSEA manager Andre Villas-Boas
has added his voice to the chorus of
condemnation for plans to scrap rele-
gation and ringfence the Premier
League.
Managers chief Richard Bevan on
Monday alleged that some overseas
proprietors of top-flight clubs wanted
the change, namely those from the
United States and Asia.
Manchester United boss Sir Alex
Ferguson and Wigan chairman Dave
Whelan were quick to rubbish the
idea, saying it was stupid and
would be suicide.
Blackburns Indian owners fol-
lowed yesterday by distancing them-
selves from any such move, insisting
they were fully supportive and com-
mitted to the current format.
And Anglophile Villas-Boas, a pro-
tege of former England manager Sir
Bobby Robson who undertook his
coaching qualifications in Britain,
joined them in decrying the plan.
If there is something that makes
the Premier League so proud, it is its
established rules over the past, the
history there has been in English foot-
ball, said the Portuguese. Thats
something that must be taken into
account very seriously. I wouldnt do
any kind of changes.
Villas-Boas spoke out as he pre-
pared the Blues for tonights
Champions League fixture against
injury-hit Belgian champions Genk.
Chelsea were held to a 1-1 draw at
Valencia in their last European fix-
ture but could take a huge step
towards qualifying for the knockout
stage with victory over Group Es bot-
tom club, who are missing several
first-team players.
Blues striker Fernando Torres is
back from suspension and expected
to start but midfield-
er Ramires, who
injured his knee on
Saturday against
Everton, is out and
rated 50-50 for
Sundays west London
derby against QPR.
Some Chelsea fans
plan to boycott
ttonights match over a
ticket price rise but the
effect may go unnoticed as the club
has again given away at least a thou-
sand tickets as City A.M. revealed
they had
against Bayer
Leverkus en
last month (above).
The fixture will also give midfield-
er Kevin de Bruyne another chance to
impress Villas-Boas, who wanted the
20-year-old in the summer.
S
O AN international coach con-
sidered massaging the rules to
his potential advantage in a bid
to counter a perceived injustice
forgive me if I dont combust in a
fit of moral outrage.
Warren Gatlands confession that
he thought about asking one of his
prop forwards to feign injury in
order to trigger uncontested scrums
could never be dressed up as any-
thing other than underhand.
But was it any worse than swap-
ping the ball because a certain high-
profile World Cup winning fly-halfs
kicking radar was malfunctioning?
Furthermore, Id suggest the very
fact Gatland countenanced such a
pro-active ploy exemplifies just why
he is so highly coveted and managed
to steer Wales to within a point of
their greatest sporting achievement.
If only England, who sank without
trace showcasing a brand of rugby
that would have looked out of date
back when Martin Johnson was still
able to boast a full head of hair,
couldve come up with something as
innovative to help stem the tide
against France in their one-sided
quarter-final.
EMOTION
Having just seen his inspirational
captain sent-off, rightly or wrongly,
it was human nature to think of
exploring any possible option in
order to redress the balance in a
game which represented the pinna-
cle of an already ultra-successful
career.
In any case, by dispensing with
contested scrums Gatland may well
have ended up playing into the
hands of a French side, who would
have been able to make better use of
the one-man advantage had they
been able to generate quick ball.
On a more general theme, any-
thing that reduces the frequency of
scrums has got to be a good thing
for the game.
Im not privy to what goes on
between front row forwards not
that I ever want to be and it
appears that match officials are also
increasingly clueless as to what
occurs with penalties awarded seem-
ingly at random.
Moreover, scrums slow the game
down far too much game time is
wasted getting them organised and
re-set are dangerous by their
nature and prevent fans from seeing
the ball in the hands of the more
skillful backs.
James Goldman is a Sports Reporter at
City A.M. Follow him on Twitter
@JamesG_City_AM
Villas-Boas wouldnt
ditch relegation rule
BY FRANK DALLERES
FOOTBALL
CHELSEA
GENK
Villas-Boas is against changes Picture: ACTION IMAGES
Chelsea 2 1 1 0 3 1 4
B Leverkusen 2 1 0 1 2 2 3
Valencia 2 0 2 0 1 1 2
Genk 2 0 1 1 0 2 1
GROUP E
YES
JAMES GOLDMAN
M
ILLIONS of Welshmen, and
the millions more of us who
were desperate to see Warren
Gatlands thrilling blend of
exuberance and know-how outdo a
very ordinary France, still burn with
the injustice of Saturdays result.
That Wales deserve to be preparing
for the final rather than a third place
play-off, only the staunchest of
Francophiles would disagree. The
courageous men in red were the bet-
ter team on the day, superior by far
over the whole tournament and were
undoubtedly handicapped by a harsh
sending off.
But lets be clear: that could never
excuse cheating. Sport is such marvel-
lous theatre because it is a test of who
is the best, and that test is predicated
on all parties playing by the rules. It
might not always happen, but toss
that principle onto the bonfire and it
turns the contest into something
worthless.
Does Gatland imagine he deserves
credit for considering but ultimately
rejecting the idea of faking an injury
to another prop, in order to benefit
from uncontested scrums? Surely
picking the honest option is the min-
imum we should expect from our
sporting heroes. Better that it had
never even crossed his mind.
CHAMPAGNE
Had he given into temptation and
taken the dishonest route Wales
would likely be in the final, and in
with a shot at immortality. But would
that winners medal look as good, the
champagne taste as sweet, or the trib-
utes feel as fulfilling? Not a chance.
The Bloodgate scandal in which
Harlequins coaching staff used a fake
blood capsule to simulate a mouth
injury and bring on an extra replace-
ment shocked rugby union follow-
ers to the core. That incident may
have been more premeditated, but,
had Gatland erred, the crime seek-
ing to steal an advantage from a
feigned ailment would have been
much the same.
Wales have been a breath of fresh
air at the World Cup, not least
because their enthusiasm and atti-
tude has been in delightful contrast
to the unrelenting parade of embar-
rassments thrown up by Englands
campaign. Not for them the ferry
jumping, hotel staff pestering or ille-
gal ball-swapping.
Sympathy and admiration already
abounds for Gatlands team, thanks
to the way they have lit up this tour-
nament. This admission does
absolutely nothing to enhance it.
Frank Dalleres is Sports Editor of City
A.M. Follow him on Twitter @frankdalleres
NO
FRANK DALLERES
SPORT | IN BRIEF
Cavendish fancies double glory
CYCLING: British world road champion
Mark Cavendish is confident the 2012
Tour de France route will aid his bid for
double glory next summer. Cavendish,
who won the Tours green jersey this
year, is also aiming for gold in the road
race at the London 2012 Olympics. The
2012 Tour route, with fewer gruelling
mountain stages, was unveiled yesterday
and Team Skys latest signing Cavendish
said: The course weve seen is a lot bet-
ter to do that.
Quins to revert to Broncos name
RUGBY LEAGUE: Harlequins RL are
expected to revert back to their previous
name, London Broncos, next season as
part of a full-scale rebranding. The club,
who have been ground-sharing with
Premiership rugby union side Harlequins
at The Stoop for seven years, and
changed their name in 2005, are also set
to change their badge and playing kit.
The Londoners came into existence in
1980 and were among the founder mem-
bers of Super League in 1996.
Finn to play for Otago Volts
CRICKET: Middlesexs Steven Finn will
play domestic First Class cricket in New
Zealand for Otago Volts next month fol-
lowing the England one-day squads cur-
rent tour of India. The 22-year-old will
join the Volts for a one-month stint ahead
of their opening Plunket Shield match
against Canterbury in Rangiora on 7
November. He will remain with the squad
until 4 December and be available for a
further three Plunket Shield Matches
during this period.
CHELSEA, embroiled in a controver-
sial battle with some supporters over
a possible move to a new larger capac-
ity stadium, gave away more than
1,000 tickets for their last Champions
League match, City A.M. has learned,
fans shunned the game due
Chelsea Foundation, which supports
the local community.
Chelsea have raised general admis-
sion prices for European games from
30 to 40 in two years.
The crowd for the Bayer Leverkusen
game was around 8,000 short of
capacity despite the giveaways and
many expect the attendance for the
Genk match to be lower still. Chelsea
generally sell out for Premier League
h althoughthere are often cor-
d
Chelsea give away 1,000
Euro seats to fill stadium
ent style
ent.
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BY DAVID HELLIER
FOOTBALL
The Debate: Was
Gatland right to
consider cheating
in France defeat?
MANCHESTER CITY manager Roberto
Mancini believes his side have finally
announced themselves on Europes
grandest stage after Sergio Agueros
injury-time strike secured a maiden
Champions League victory.
Having taken just one point from
their opening two matches in the com-
petition Mancini declared victory
essential prior to kick-off, but Ruben
Canis fourth minute strike ensured
any hope the Italian had of a comfort-
able evening ahead of Sundays
Manchester derby were dashed.
Carlos Marchenas own goal two
minutes before the interval changed
the mood inside Etihad Stadium, and
although City had to wait until the
93rd minute for substitute Aguero to
make his match-winning contribu-
tion, Mancini believes City can now
target hauling in Group A pacesetters
Bayern Munich.
I hope this goal will be very impor-
tant it was very important to win the
first game in the Champions League. I
think everything can happen in this
group, for first place, he said. We
know we go to Villarreal in 15 days, it
will be a very important game for us.
Citys last outing in Europe ended in
controversy when Carlos Tevez
appeared to refuse to come on as a sec-
ond half substitute against Bayern.
Mancini was reluctant to discuss
the outcome of todays investigation
into the episode which saw the
Argentine exiled for two weeks.
However, he intriguingly added:
Im soft because Im a good man and
I cant understand everything but I
would prefer not to speak about this
situation.
City could themselves have been
accused of being soft in the build up to
Canis early goal with David Silva
guilty of giving the ball away and
Nigel de Jong weak in the tackle.
Joe Hart will also have been disap-
pointed at the way he could only shov-
el Giuseppe Rossis shot into the path
of Cani, but parity was restored just
before the break when Marchena just
beat Edin Dzeko to Aleksandar
Kolarovs low cross.
Dzeko spurned Citys best opportu-
nities after the break but his blushes
were spared by Aguero, who stole in at
the far post to convert a cross from his
compatriot Pablo Zabaleta, just as it
appeared Villarreal would survive and
cling on for a point.
WALES coach Warren Gatland could
face punishment after the
International Rugby Board opened an
investigation into his admission that
he considered cheating during
Saturdays World Cup semi-final
defeat to France.
Gatland confessed yesterday that he
and his staff discussed asking a front-
row forward to feign injury a move
that, having already lost prop Adam
Jones to a calf problem, would have
led to uncontested scrums. That could
have handed a boost to Wales, whose
pack had been weakened by the
early sending-off of captain
Sam Warburton.
The former Wasps and
Ireland coach (right) decided
against it because it wasnt
the right thing to do, and
14-man Wales were edged
out 9-8 by France, who
meet hosts New
Zealand in
Sundays final,
but Gatlands
c o mme nt s
could yet
land him in
trouble with the IRB.
We discussed whether we would
fake an injury to one of our props
and go to uncontested scrums. But
morally, I made the decision it
wasnt the right thing to do,
Gatland said.
We could easily have
done that in the first 25-30
minutes, but in the spirit of
the game, in the spirit of
a World Cup semi-
final, I didnt think
that was the
fairest or the
right thing.
Gatl and,
who reiterated his displeasure with
referee Alain Rollands contentious
decision to send off Warburton,
received support from Wales Rugby
Union chief executive Roger Lewis.
Warren Gatland should be
applauded in this professional era
where tough decisions are made that
he didnt go into that particular
zone, said Lewis.
New Zealander Gatlands admis-
sion will prompt comparisons with
the Bloodgate scandal of 2009, in
which Harlequins staff faked a blood
injury to wing Tom Williams in order
to bring on a specialist kicker after all
their replacements had been used.
Quins boss Dean Richards was banned
for three years and Williams for four
months.
Wales must regroup for Fridays
bronze final against Australia, for
which Gatland has handed the cap-
taincy to prop Gethin Jenkins, with
Warburton suspended. Ever-present
Toby Faletau switches to flanker, with
Ryan Jones drafted in at No8 and Alun
Wyn Jones afforded a rest.
Record try-scorer Shane Williams
has hinted he will shelve plans to
retire after the tournament in order
to bow out at home in Decembers
Test against Australia.
GATLAND DEBATE: PAGE 39
Agueros ninth goal of the season was his first in exactly a month Picture: ACTION IMAGES
BY JAMES GOLDMAN
FOOTBALL
2
1
MANCHESTER CITY
VILLARREAL
Chiefs probe Wales coach over cheat admission
Aguero to the
rescue as City
leave it late to
earn a lifeline
Sport
I WOULDNT DO ANY
KIND OF CHANGES
CHELSEA BOSS AGAINST
RELEGATION AXE: P39
BY FRANK DALLERES
RUGBY UNION
Bayern 3 2 1 0 5 1 7
Napoli 3 1 2 0 4 2 5
Man City 3 1 1 1 3 4 4
Villarreal 3 0 0 3 1 6 0
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Have You Got: Five Minutes?

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