BUSINESS WITH PERSONALITY

Car trade in
first surplus
since 1976
BRITAIN has posted its first
quarterly trade surplus in cars
since 1976 after cashing in on
rising foreign demand for vehicles
made in the UK.
The value of car exports hit
6.1bn in the first quarter of the
year, 561m ahead of the value of
imports and up 20 per cent on the
final three months of 2011.
It comes after a series of
commitments to Britain by major
foreign car companies, such as
Nissan, which is due to spend
127m on building a new
hatchback in Sunderland and
Jaguar Land Rover (JLR), which will
create 1,000 jobs at its Merseyside
factory.
Yesterdays figures also show the
volume of cars exported leapt 21.8
per cent in the first quarter of the
year while imports rose 5.8 per
cent. They come as a boost for
David Camerons flagging plan to
drag Britain out of recession with a
recovery in exports and
manufacturing
Separately yesterday JLR, part of
Indias Tata Motors, said April sales
rose 29 per cent to 25,143 against
the same month last year.
Overall Britains trade deficit
narrowed to a seasonally adjusted
2.7bn in March, compared to
2.9bn in February, according to
the Office for National Statistics.
Both overall goods exports and
imports values hit a record high in
March. Export growth was driven
by sales of pharmaceuticals and
cars to non-EU countries such as
the US and China, but also to
Germany. The goods trade deficit
inched down to 8.56bn in March
from 8.59bn in February.
Far-left Syriza leader Alexis Tsipras refused to join a coalition unless it rejects the bailout. Polls show his will be the biggest party after new elections
MARKETS collapsed again yesterday
after Greece announced that new elec-
tions will take place next month, rais-
ing the spectre of the country
rejecting its bailout and being forced
to leave the Eurozone.
Stocks dropped across Europe, and
struggling Eurozone governments saw
their borrowing costs jump sharply on
the renewed uncertainty, while
German bund yields fell to a record
low as investors rushed to safe havens.
Fears of a bank run in Greece were
also escalating yesterday after minutes
of a meeting between President
Karolos Papoulias and party leaders
showed that up to 800m (638m) of
deposits left Greek banks on Monday
alone as customers started withdraw-
ing cash in case capital controls are
introduced or the country leaves the
euro. In an average month, total with-
drawals are usually between 2-3bn.
The President warned of a great
fear that could develop into panic.
Greek politicians failed to form a
new government after elections 10
days ago, as second-placed Syriza
refused to work with the pro-bailout
PASOK and New Democracy parties.
Polls since the election show far-left
Syriza is now the most popular party. If
it forms an anti-bailout government,
Greece could run out of cash and be
forced out of the Eurozone.
IMF boss Christine Lagarde also
acknowledged the prospect of the
www.cityam.com FREE
country leaving the euro, saying the
IMF must be prepared for anything.
Greek stocks hit a 22 year low falling
by 4.86 per cent on the new elections
announcement, but recovering slight-
ly to leave a 3.62 per cent drop.
Spains IBEX lost 1.6 per cent while
Italys FTSE MIB dropped 2.56 per cent.
The FTSE 100 fell to a new 2012 low,
closing down 0.51 per cent, while the
French CAC fell 0.61 per cent and the
German DAX 0.79 per cent.
Greek 10-year borrowing costs
jumped 2.23 percentage points to
29.79 per cent, Spains rose 0.12 points
to 6.35 per cent and Italys rose 0.167
points to 5.864 per cent. Bund yields
briefly hit a new low of 1.449 per cent.
In December and February the ECB
injected 1 trillion into banks in its
three-year long term refinancing oper-
ations (LTRO), with the aim of averting
a renewed credit crunch. But just a
few months later 38 per cent of
investors already expect another LTRO
as they fear banks will not have been
able to deleverage enough by the time
the current loans need to be repaid.
Meanwhile the Eurozone economy
ground completely to a halt in the
first quarter, official figures revealed,
with only strong German growth
keeping the currency area out of
recession.
MICRO-BLOGGING SITE BOASTS 10mUK MEMBERS
BY PETER EDWARDS
FTSE 100 5,437.62 -27.90 DOW 12,632.00 -63.35 NASDAQ 2,893.76 -8.82 /$ 1.59 -0.02 / 1.25 unc /$ 1.27 -0.01
BY TIM WALLACE
TWEET BRITANNIA
ISSUE 1,633 WEDNESDAY 16 MAY 2012
JP MORGAN:
THE FALLOUT
See Page 2 See Page 12
EUROZONE: Page 4

ALLISTER HEATH: Page 2

ECONOMICS: Page 21

Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
GREEKS FORCED
BACK TO POLLS
Greek 10-year borrowing costs spiked yesterday
Mar Apr May
40%
35%
30%
25%
20%
15%
29.787%
Greek stocks hit a 22-year low
Mar Apr May
900
800
700
600
500
points
562.88
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
ETX gets WorldSpreads businesses
nSpread-betting company ETX
Capital has taken over the Greek,
Spanish and Danish businesses of rival
WorldSpreads, which fell into
administration in March. ETX said last
night that the deal would broaden its
revenue stream and customer base,
and formed part of its plans to expand
further in overseas markets. It did not
disclose the financial terms of the
deal. WorldSpreads entered
administration after finding possible
irregularities in its accounts, and
warned that it owed its clients millions
of pounds.
Strauss-Kahn sues NY hotel maid
n Former IMF chief Dominique
Strauss-Kahn has filed a $1m (624m)
countersuit against the hotel maid
who accused him of sexual assault,
costing him his job and any chance of
being elected president of France. The
countersuit was filed on Monday on
the anniversary of the incident.
Strauss-Kahn denies all wrongdoing in
the countersuit and accuses Diallo of
knowingly and intentionally making
a false report to law enforcement
authorities.
Santander UK calms Spain fears
n Santander UK has moved to reassure
customers as fears mount over the
health of Spains financial sector. Steve
Pateman, head of corporate and
commercial banking, said the Spanish
parent would need FSA approval to take
out a dividend, telling the BBC: We are
a separate stand-alone subsidiary and
therefore by definition are ring-fenced.
G
E
T
T
Y
Dimonfacesno pay revolt
despite FBI probing loss
JP MORGANS Jamie Dimon won the
support of 91 per cent of sharehold-
ers for his pay package yesterday
despite having presided over a $2bn
(1.25bn) trading loss from a botched
hedging strategy.
US regulators widened their inves-
tigation into the losses, with the FBI
and Department of Justice now
looking into it, according to the
FBI, although the probe is believed to
be highly preliminary at the
moment.
But even as criticism of the bank
ramps up among regulators, share-
holders appeared surprisingly
placid.
The bank had proposed creating
the role of an independent chair-
man to preside over Dimon, which,
while the norm in the UK, is rare
among US investment banks.
But only 40 per cent of sharehold-
ers voted in favour at the banks
annual general meeting yesterday,
meaning he will continue to reign
solo.
Dimon told shareholders that he
is looking at appropriate action on
clawing back pay from executives
who were involved in losing the
money, which would mark the first
time an American bank has sought
to take pay back from former man-
agement over such a scandal.
EU to push for binding investor pay
votes
Shareholders in Europes listed companies
will be given a binding vote on pay while
those who invest in banks will gain powers
to set a cap on bonus levels, under plans
being drawn up by senior EU officials. The
initiative from Michel Barnier, the EUs top
financial services regulator, would hand
bank investors the voting power to curb
morally indefensible pay and limit the gap
between the lowest and highest paid. Banks
would also be forced to disclose their top
20-30 earners.
Bankers talks on curbing rating
agencies
Up to 20 of Europes top banks will on
Wednesday discuss a plan to foil the
dominance of the much criticised big three
credit agencies at a private meeting of
finance directors in Frankfurt.
Face hard truths, CBI head tells
bosses
The president of the CBI employers group
will on Wednesday urge business leaders to
confront some hard truths to deliver their
side of the bargain to get the economy
moving again.
Richard Desmonds licence to print
money in Docklands?
Richard Desmond wants to convert his
West Ferry Printers site in Londons
Docklands into homes as his media
empire moves from the capital to Luton .
The Times understands that Northern &
Shell, parent company of the Daily Star,
Daily Express and their Sunday sister
titles, has started talks with the
freeholder British Waterways to convert
the Millwall Outer Dock site from
industrial to residential use.
Builders report paltry sales under
NewBuy
Britain's top builders say they have so far
sold less than one home apiece under the
Governments flagship scheme to boost
the housing market, two months after the
launch.
New legal threat to Apple over ebooks
Apple has been dealt a blow in its
escalating row over alleged ebook price
fixing, after a New York court refused to
throw out a class-action lawsuit against it.
More Real-Estate Loans Default in
Europe
European commercial-real-estate markets
are struggling with a sharp increase in
problem mortgages just as more European
countries slip back into recession. A growing
number of landlords, hit with falling rents
and occupancies, are defaulting on loans,
and it is happening not just in the most-
troubled parts of Europe but in big centers
like London and Frankfurt. Values already
are down nearly 20 per cent since their 2007
peak across Europe, according to CBRE
Group.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE LONGEST greenback rally in
over two and a half decades saw
the dollar climb to its strongest
level since January yesterday, as
the US currency is increasingly
seen as a quick safe haven
investment.
A report revealing
disappointing sales on the high
streets and malls of America
failed to dampen demand for the
dollar, which was pushed up
further by a separate report
showing US homebuilder
sentiment improving to its
highest level in five years.
The study from the National
Association of Home Builders sent
the dollar to a session high
against the yen at 80.07 yen.
Its not great data but if you
compare it to the overall flavour
of the Eurozone and China, the US
economy is outperforming in its
recovery, said Omer Esiner, chief
market analyst at Commonwealth
Foreign Exchange in Washington.
A measurement of the dollar
against a basket of six other key
currencies, rose above 81 for the
first time since the middle of
January.
The dollars climb from last
week continued into Monday and
yesterday, with the rally matching
lengthy upward turns last seen in
the mid-1980s.
US dollar soars
to highest level
since January
Shareholders approved Jamie Dimons pay package despite a trading loss
2
NEWS
BY CITY A.M. REPORTER
BY JULIET SAMUEL
To contact the newsdesk email news@cityam.com
W
HEN a countrys president
warns that its banks are in
danger, and reveals that
depositors are pulling out
cash from their accounts at a record
rate, it is time to dig out the tin hats
and the cans of baked beans. Yet that
was exactly what happened in Greece
yesterday on another pivotal day for
the Eurozone. The beleaguered Greek
president, who was forced to
announce another election after the
failure of talks between the political
parties, claimed that 800m had been
taken out of the countrys banks by
4pm on Monday. Even if that figure is
exaggerated some claim that the
withdrawals had happened over a
longer period it is clear that the
slow-burn Greek bank run is
beginning to accelerate dangerously:
over the past couple of years, net
withdrawals have amounted to
EDITORS
LETTER
ALLISTER HEATH
Governments job is to shield UK taxpayers from Euro chaos
WEDNESDAY 16 MAY 2012
around 2.5bn per month but the
figure this month will be much
higher. But what is truly puzzling is
why so much money remains in
Greek bank accounts: 165.36bn at
last count, which given the risks to
the solvency of Greece and its
financial system, and the growing
threat that all domestic bank
accounts will be converted into an
ultra-weak new drachma if the
country is forced out of the euro,
makes little sense.
Greece may still be bailed out again,
regardless of how vigorously it
thumbs its nose at its paymasters,
including Germany. But if that hap-
pens, it would rob the Eurozone of
influence over all other troubled
economies. There would no longer be
any credibility to bailout deals; other
supplicants such as Portugal would
expect to be able to continue spend-
ing like a drunken sailor while having
the tab picked up by others. The
moral hazard would soon become
unbearable for Germany, which is
why it will prefer to allow Greece to
go to the wall and quit the euro, hop-
ing to ringfence other countries as
much as possible. A bust Greece
would also need European Central
Bank liquidity to prop up its banks;
again, the ECB would discredit itself
were it to be seen to be bailing out
insolvent, rather than illiquid, institu-
Facebook advertising spend because it
doesnt feel it worked. The news came
as WordStream, a search marketing
firm, released a study comparing the
effectiveness of Facebook ads with
those on Googles display network
those ads it places on millions of web-
sites, not those that it displays along-
side its own search results. The
findings arent good for Facebook: the
click through rate of an ad on the
Google display network is 0.4 per
cent, against 0.05 per cent for
Facebook. People arent in the mood
to consume advertising when on
Facebook. It is clearly a valuable com-
pany, and a cultural phenomenon.
But a mooted market cap of at least
$100bn? Bubblenomics is back with a
vengeance.
tions. It wont happen; Greece will
quit the euro. Its time to start prepar-
ing for the Grexit. The governments
sole mission now should be to protect
UK taxpayers from European or IMF
claims to their pockets. A Greek exit
and default will indirectly hit the UK
economy taxpayers shouldnt also
have to contribute to mop up the fall-
out from a destructive project they
rightly never sought to take part in.
FACEBOOK BUBBLE
EVERYBODY uses them but making
money from social networks remains
tough. Twitter, which now claims it
has 10m active users in the UK, has
found it notoriously hard. But even
mighty Facebook, which is about to
launch its $100bn float, could soon be
having some trouble on this front.
General Motors last night con-
firmed that it is cancelling its $10m
Most of the $15.5m awarded last
year to Ina Drew, the chief investment
officer who resigned on Monday, could
be liable to be taken back, since most
of her pay is deferred over several years
and has not yet been paid out.
Dimon told shareholders that the
loss, which is $800m post-tax, is a self-
inflicted wound, but that he is not
against regulation, provided it is
aimed at stopping bailouts for failing
banks.
But there are growing fears that the
loss could increase significantly as
hedge funds that are building posi-
tions on the other side of the trade
know that the bank needs to get out of
it. Dimon has faced calls to simply cut
the losses and close out the trade
immediately, but has so far resisted
them, believing that the bank can lose
less by taking its time.
It is understood that the US regula-
tor is leading the investigation into the
loss, but one former FSA source said
that the bank could face questions
over its competence, which is a
renewed focus of the UK watchdogs
enforcement division.
DEBATE: Page 27

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THE co-head of Carlyle Group sought
to play down the significance of
quarterly reporting as the US private
equity firm posted a 26 per cent
decline in quarterly profit.
Co-founder and co-chief executive
David Rubenstein urged investors
not to focus disproportionately on
its quarter-to-quarter results after a
disappointing first earnings report
as a public company.
Economic net income, a measure
of profitability that takes into
account the mark-to-market
valuation of its assets, fell to $392m
(245m).
The decline was mainly due to its
corporate private equity segment
that contributes two-thirds of its
distributable earnings. Carlyle could
not raise as much cash from its
investments as it did this time last
year, when its Asian buyout funds
sold assets.
Assets under management
increased 48 per cent to $159.2bn,
with fee-paying assets under
management at $117bn. Carlyle said
it generated realised proceeds of
$3.8bn for its fund investors in the
first quarter.
Co-chief executive Bill Conway
said: It is precisely at times like this
when economic data and markets
are sending confusing signals that
the best investments can be made.
Carlyle starts
new era with
profit decline
BY PETER EDWARDS
G
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T
T
Y
THE UK performed a huge climbdown
over new banking rules for Europe
yesterday as it agreed to sign up to
rules that George Osborne said only
two weeks ago would make him look
like an idiot.
The result is the worst possible out-
come for British banks, because while
the UK won the right to goldplate the
new capital requirements, which are
known as CRD 4, it gave up on its
demand that other states apply the
same strict regime.
That means UK lenders will face
much higher costs for carrying out
their business than their EU rivals,
particularly because Britain has won
the right to implement the Vickers
banking reforms.
Although Britain secured some
concessions, such as the requirement
that all EU banks disclose their lever-
age ratio from 2015, it allowed several
glaring loopholes to remain in place
for French and German banks.
In particular, national regulators
UK climbdown
leaves City on
worse footing
BY JULIET SAMUEL will retain the right to define different
qualities of capital however they want
within certain criteria, something
that Britain had said would create a
fracture at the heart of the single
market and was a significant watering
down of the Basel III capital rules that
the EU says it is implementing.
And France kept a large provision
favourable to its banks that allows
them to engage in what the UK had
called dangerous double counting of
their capital reserves.
Despite rolling over, the Treasury
claimed the rules would create a
stronger and safer banking system in
Europe. A Treasury source said its
view is that markets will prefer British
banks, which are subject to a much
harsher regime enforced by the FSA,
because they will be safer. But it also
leaves UK banks facing a much more
difficult operating environment.
The rules will now be negotiated
with other EU bodies, most of which
favour inserting a new restriction on
bonuses that would limit them to no
more than 100 per cent of salary.
MPs told pay row hurts RBS price
POLITICAL interference in the
running of Lloyds and RBS will
make it hard for taxpayers to break
even on the sale of their stakes,
shareholders in the banks have
told MPs.
In a hearing of the Treasury
Committee of MPs, Standard Lifes
Keith Skoech said that political anti-
bank rhetoric has had knock-on
effects on sentiment. He said that
investors are looking for things
they can attach some certainty to,
adding that public pressure of the
kind that forced RBS chief executive
Stephen Hester to forego his bonus
BY JULIET SAMUEL
has had a depressing effect on the
share price. If that persists, it will
make a sharp difference to prices,
Skoech added.
Robert Talbut, chairman of
shareholder group the Association of
British Insurers, said that the bank is
being run not entirely in a
commercial way, putting off
investors.
And Talbut, who has been vocal in
opposing large pay at other banks,
said [RBSs] ability to retain a
commercial management team is
going to be severely inhibited if they
do not believe they are going to
receive a significant market rate.
MPs were also warned by other
industry figures that it will be hard
for taxpayers to get their money
back. No analysts currently value
RBS at the break-even price, said
Manus Costello of Autonomous.
The six industry experts that MPs
heard from yesterday mostly agreed
that they would advise the
government it might have to sell the
first tranche of shares in Lloyds and
RBS at a loss, but had mixed views
over whether it could make a profit
over the course of several sales,
which they all agreed likely to take
more than five years.
Schroders Richard Buxton was
most optimistic, saying: On average,
you will make a profit over time.
FACEBOOK yesterday raised the
pricing range for its initial public
offering (IPO) from $28-$35 to $34-
$38 ahead of its listing this week.
The social network said strong
demand, which caused it to close
its order books several days early,
drove the price up.
In an updated filing, Facebook
said 337.4m shares will be sold
which at the top-range price of $38
would raise $12.82bn.
The updated price range points
towards a market cap of $93bn on
Facebook hikes IPO price but GM
sparks doubts as it pulls adverts
BY LAUREN DAVIDSON
the lower end or up to $104.2bn on
the higher end, catapulting
Facebook to the most valuable US
company to float. This puts it in
line with Amazon, which has a
market cap of $100.4bn. The
flotation is set for Friday.
But General Motors said last
night it will stop advertising on
Facebook, with a source adding
that the companys marketing
executives had decided Facebooks
ads had little impact on consumers.
GM said it regularly reviews how
it spends its marketing budget and
adjusts its approach as needed.
SALES at US retailers barely rose in
April as the boost from an
unseasonably warm winter faded,
official data showed yesterday,
pointing to some loss of
momentum in consumer spending
early in the second quarter.
Commerce department figures
recorded a 0.1 per cent rise in the
month the smallest gain since
December, held back by a decline in
receipts from building materials
and clothing stores.
But details of the report showed
Worries for American GDP as
retail sales stagnate in April
BY TIM WALLACE
underlying strength in demand,
while other reports showed a
strong rebound in manufacturing
activity in New York State this
month and sentiment among home
builders at a five year-high.
The New York Federal Reserve
said its Empire State general
business conditions index jumped
to 17.09 in May from 6.56 in April,
outpacing economists expectations
of 8.50. Separately, the National
Association of Home Builders
housing market index rose to 29
from 24 in April, topping analysts
forecasts of 26.
WEDNESDAY 16 MAY 2012
3
NEWS
cityam.com
Mark Zuckerbergs company is on track for a valuation between $93bn and $104bn
OPPORTUNISTIC hedge funds were
celebrating the trade of the
century yesterday as Greek
authorities agreed to pay out 435m
(346m) of bonds that were not
included in recent haircuts.
Owners of euro-denominated
Greek bonds have taken a loss on
their investments as part of Marchs
bailout agreement for the debt-
ridden Mediterranean state. Yet
bonds denominated in currencies
such as sterling, which are liable to
laws outside Greece, now appear
more likely to be paid up in full.
Bonds in sterling were redeemed
at par [100 per cent], but many were
snapped up with a discount of 70 per
cent back in December and January,
a source familiar with the matter
told City A.M. Major banks and
pension funds were selling them off
cheap, at around 30 per cent level
perhaps they didnt want the risk.
The payment could provoke more
anger on the streets of Athens. but
lawyer Jonathan Henes of Kirkland &
Ellis in New York said that it keeps
all options on the table.
With this payment it looks like
Greece is saying were not defaulting
and leaving Eurozone, Henes said.
Yet Greek authorities insisted that
remaining foreign bonds would not
necessarily be paid out in full.
Hedge funds
celebrate as
Greece pays up
BY JULIAN HARRIS
A TWO-SPEED Eurozone emerged in
the first three months of this year
with the region split more starkly
than ever between recession-hit
peripheral economies and strong
northern countries, initial GDP
estimates revealed yesterday.
Overall the currency area
recorded no economic growth in
the first quarter after the previous
quarters 0.3 per cent drop, leaving
output unchanged on the year and
avoiding a technical recession by the
smallest of margins.
But that figure masks dramatic
differences between countries.
Germany saw GDP growth of 0.5
per cent in the quarter, rebounding
strongly from a 0.2 per cent drop in
the previous three months and
holding up the full Eurozone figure.
An array of smaller economies
also expanded including Finland
by 1.5 per cent, Latvia by 1.1 per cent
and Belgium by 0.3 per cent.
However, Italys recession
Periphery deep
in recession as
Germany soars
BY TIM WALLACE deepened, with GDP falling 0.8 per
cent in the quarter, following drops
of 0.7 per cent and 0.3 per cent in the
previous quarters.
Spain officially entered recession
with a second consecutive 0.3 per
cent drop, and less detailed data
from Greece showed a 6.8 per cent
fall in GDP in the year to the quarter.
France saw GDP stay flat, with no
growth in the quarter.
Economists said it is vital for
peripheral countries to press on with
economic reforms if they are to
achieve German levels of growth in
future, despite the short-term pain.
Germanys very strong figures are
a reminder of the strongly positive
long-term effects of austerity and
structural reforms, said Berenberg
Banks Christian Schulz.
Meanwhile, Europe needs to
continue to manage the crisis to
benefit from the reforms, he said,
pointing to the rebound in
confidence experienced at the end of
2011 when leaders agreed to more
fiscal discipline.
Merkel and Hollande join forces
NEW socialist French President
Francois Hollande and German
chancellor Angela Merkel attempted
to put their political differences
aside last night yet areas of conflict
over the Eurozone crisis remained
evident.
The unlikely couple said they are
united in efforts to save the single
currency area, with Merkel joining
Hollandes repeated call for a
growth-based solution.
Like Mrs. Merkel, I want Greece to
remain in the Eurozone, Hollande
said, speaking after their first
BY JULIAN HARRIS
AND TIM WALLACE
meeting since he was elected.
Merkel added: Growth has to feed
through to the people. And thats
why Im happy that well discuss
different ideas on how to achieve
growth.
Disagreements over policy were
revealed when the French President
named eurobonds as a possible extra
measure to assist crisis-stricken
members such as Greece. I hope
that we can say to the Greeks that
Europe is ready to add measures to
help growth and support economic
activity so that there is a return to
growth in Greece at a time when it is
in recession, he said.
I said it during my election
campaign and I say it again now as
President that I want to renegotiate
what has been agreed to include a
growth dimension, Hollande told a
joint news conference with Merkel
at her chancellery in Berlin.
Hollande yesterday named his
long-term ally Jean-Marc Ayrault as
prime minister.
He also wants to see the fiscal
compact renegotiated, and in a sign
that Hollande seeks to work closely
with Merkel, has already met key
advisers to the Chancellor.
The treaty is incomplete each
side needs to take a step toward the
other, Ayrault said recently. We
need to find a consensus.
I
F SOMEONE had given Greek
president Karolos Papoulias a
textbook called How To Cause A
Bank Run, they could hardly have
improved on his action this week. In
a publicly recorded meeting he told
political leaders that Greeks are
pulling cash out of banks in droves,
and that this could spark a panic.
But it is not just Greece that is
hemorrhaging cash. The ECBs
payments system, TARGET2, shows
other peripherals states are too. Its
data shows what different Eurozone
central banks owe each other.
Unsurprisingly, the Bundesbank is
owed the most more than 600bn,
borrowed mostly by peripheral euro
countries central banks. The figures
reflect the degree to which
Frankfurt has had to fill the funding
gap (faced by both governments and
banks) left by savers pulling their
money out of these countries.
Typically, states in this situation
react to capital flight with controls
on what you can take out of the
country. That is against EU law, but
if it comes to a choice between the
single market and no market, theres
little doubt as to what governments
will choose.
BOTTOM
LINE
JULIET SAMUEL
WEDNESDAY 16 MAY 2012
4
NEWS
cityam.com
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, RIM

, Research In Motion

and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the US and countries around the world.
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Two-Speed Europe
Germanys economy is powering ahead as Italy and Spain face recession
Q1 GDP, change from previous quarter
Germany
0.5%
0% 0%
-0.1% -0.3% -0.8%
Euro Zone France
Portugal Spain Italy al Spai Spa
The single markets biggest test
IN BRIEF
Fed vote likely to happen Thursday
n President Barack Obama's two stalled
nominees for the Federal Reserve are
likely to clear a Senate procedural hurdle
tomorrow, paving the way for anticipated
confirmation, the chamber's leaders said
yesterday. Democratic and Republican
aides said they expect Senate approval of
the pair as early as Thursday, shortly after
the procedural vote, which would take the
Fed's Washington-based board up to its
full seven-person strength for the first
time since April 2006.
Senate renews Ex-Im Bank charter
nThe Senate voted yesterday to renew
the US Export-Import Banks charter
through September 2014 and raise its
lending cap to $140bn, overcoming
objections from conservative Republicans
who wanted to shut the bank down. The
bill now goes to President Barack Obama,
who the White House said will sign it into
law. The House of Representatives passed
the same legislation last week by a vote of
330-93. The Senate voted 78-20 to
approve the bill.
Firms urge delay in offshore tax rules
nFinancial institutions from around the
world called for delay and changes to
proposed US rules to combat offshore tax
evasion at an Internal Revenue Service
hearing yesterday. Government tax
officials gave no indication about how
they would respond to the businesses
requests and said the final rules were on
track to be ready in three to four months.
With just months to go before
implementation of the Foreign Account
Tax Compliance Act, representatives
complained that the rules would cause
confusion and reporting errors that could
destabilise markets.
P
A
REBEKAH Brooks, former chief execu-
tive of News International, was yester-
day charged with three counts of
conspiracy to pervert the course of
justice.
In a statement yesterday evening
Brooks said she was baffled by the
Crown Prosecution Services decision.
Whilst I have always respected the
criminal justice system, you have to
question whether this decision has
been made on a proper impartial
assessment of the evidence, she said.
Brooks, who edited both The News
of the World and The Sun, added her
belief that the decision was weak
and unjust, claiming: People will
see today as an expensive sideshow
and a waste of public money.
She was joined by her husband, race-
horse trainer Charlie Brooks, who
said the charges were an attempt to
use me and others as scapegoats, the
effect of which is to ratchet up the
pressure on my wife who I believe is
the subject of a witch hunt.
Rebekah Brooks charges include
counts of conspiring to conceal mate-
Brooks hits out
at CPS decision
to press charges
BY LAUREN DAVIDSON
rial, documents and electronic equip-
ment from the police and conspiring
to remove seven boxes of material
from the News International archive.
Of the seven people suspected relat-
ing to this evidence, six including
Rebekah and Charlie Brooks were
yesterday charged.
The others comprise Brooks person-
al assistant Cheryl Carter, News
Internationals head of security Mark
Hanna, Brooks chauffeur Paul
Edwards and security guard Daryl
Jorsling.
Rebekah Brooks said: I cannot
express my anger enough that those
close to me have unfairly been
dragged into this.
The charges announced yesterday
are the first to be made as part of the
police probes into inappropriate pay-
ments from journalists to police offi-
cers and allegations of illegal
phone-hacking.
Two further arrests were made yes-
terday; an employee of HM Revenue &
Customs, on suspicion of misconduct
in a public office and corruption, and
another on suspicion of aiding and
abetting misconduct.
Rebekah Brooks described the latest developments as an expensive sideshow
WEDNESDAY 16 MAY 2012
6
NEWS
cityam.com

All you
can eat
data
2000
Any network
minutes
5000
Three-to-Three
minutes
5000
Texts
A most hospitable retreat in the belly of Liverpool Street.
I AM
THE MERCHANT.
I ONLY DO BUSINESS
OVER BREAKFAST.
I PREFER TO
LOOK A MAN IN
THE EYE OVER
A FULL ENGLISH.
NYSE Euronext is out of the race
to buy the London Metal
Exchange, a spokesman said
yesterday, after its reported
800m bid was deemed too low.
NYSE had submitted a binding
bid for the 135-year-old LME last
week, vying with Hong Kong
Exchanges and Clearing, CME
Group and InterContinental
Exchange.
We put a proposal in that we
believe was a fair valuation for the
business and we wish them well, a
spokesman for the exchange.
The LME said on 8 May that it had
received a number of offers from
shortlisted parties, and that it
would now consider the proposals
and provide shareholders with fur-
ther information as appropriate.
The head of the Hong Kong
Exchanges and Clearing said last
week it was confident of winning
the auction to take control of the
worlds largest metals trading mar-
ket.
Moelis & Company is handling
the sale process on behalf of LME.
NYSE Euronext
pulls out of the
race to buy LME
BY CITY A.M. REPORTER
G
E
T
T
Y
COVE Energy yesterday announced a
new oil find in Mozambique that
could open up a bidding war for the
company, which already has an offer
from Shell on the table.
The AIM-listed explorer said that it
had discovered more oil off the coast,
with US operator Anadarko also
working on the project.
The Golfinho discovery in may hold
more than 20 trillion cubic feet (Tcf)
of gas, and would underpin a plan to
develop a world class liquefied natu-
ral gas export operation in
Mozambique. A bid totalling $2bn
(1.2bn) from Shell for Cove had been
recommended by its board but the
new find could attract other suitors
to join the battle.
Thailands PTT had also tabled a
Cove oil boost
could trigger a
bidding war
BY JOHN DUNNE
$1bn offer for Cove that was rejected.
Anadarko is one of the companies
that, as a partner in Mozambique,
could find a takeover bid attractive.
Cove chief executive John Craven
said: We are thrilled at the success of
the Golfinho exploration well, our
eleventh successful well offshore
Mozambique.
Argentinian President Cristina Fernandez has pushed state intervention in the economy
Cove Energy PLC
15May 9May 10May 11 May 14May
225
226
223
224
227
228
229
230 p
228.00
15May
SPANISH oil firm Repsol yesterday
began legal proceedings against
the Argentinian government after
its 51 per cent share in oil firm
YPF was nationalised last month.
Repsol is demanding more than
$10bn (6.2bn) in compensation
and said it has informed Cristina
Fernandez, Argentinas President,
of a dispute under the Spanish-
Spanish oil firm prepares to sue
Argentina over nationalisation
BY JAMES WATERSON
Argentinian investment treaty.
Repsol must now wait six
months before taking the case to
arbitration at the World Banks
International Center for
Settlement of Investment Disputes
(ICSID) but analysts suggest that
there is little chance of a payout.
A quarter of ICSID cases have
been brought against Argentina
but it rarely complies with
judgements.
WEDNESDAY 16 MAY 2012
9
NEWS
cityam.com
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PRIVATE equity house Permira saw
the value of its 9.6bn (7.65bn)
fourth fund jump by more than a
fifth last year despite global econom-
ic turmoil.
The value of investments made so
far in Fund IV rose 21 per cent in
2011, according to the annual review,
published yesterday. The fund began
in September 2006 although not all
of the cash has been spent.
Managing partners Tom Lister and
Kurt Bjrklund said the valuations
reflected strong operational perform-
ance.
It also reflected the well-diversified
international nature of the portfolio
with many companies enjoying sig-
nificant exposure to higher growth
emerging markets. Importantly, this
strong growth was achieved despite a
volatile macro-economic environ-
ment, he said.
The review also showed that valua-
tions across Permiras three active
funds rose 15 per cent last year.
Investments made by the fourth
fund were valued at 1.26 times cost at
the end of the first quarter of 2012,
Permira has told investors in recent
weeks.
The firm, whose interests includes
Hugo Boss and Acromas, the owner of
Saga and the AA, is currently consid-
ering first round offers for Iglo, the
2.5bn-rated firm behind frozen food
specialist Birds Eye.
Permira fund
grew by a
fifth last year
BY PETER EDWARDS
SECURITY firm G4S yesterday said
that revenues were up 7.5 per cent
year-on-year for the first quarter of
2012, assisted by a substantial con-
tract from the forthcoming Olympic
Games.
Despite this the board reported
that profits were at similar levels to
the previous year due to lower oper-
ating margins.
Shares in the firm the worlds sec-
ond largest private sector employer
responded positively, closing up 3.2
per cent at 275.2p.
Based on recent contract awards,
outsourcing trends and the groups
bid pipeline, the organic growth rate
is expected to continue to improve
during 2012, G4S said.
The firms wide-ranging interests
include cash transportation for high-
street shops, security at Heathrow
airport and a 15-year contract to run
two prisons on behalf of the British
government.
It also has a 200m contract to sup-
ply 10,000 personnel for this sum-
mers London Olympics and has seen
G4S revenues
rise with help
from Olympics
BY JAMES WATERSON
increased cash handling in troubled
Eurozone states.
Our fastest growing business last
year in European cash services was
Greece and clearly our biggest contin-
gency issue would arise if the country
were to leave the euro and go back to
the Drachma, chief executive Nick
Buckles told reporters.
Basically we would be involved in
the whole roll out of the currency. We
are not talking to anybody about that
at the moment but that would be a
big challenge for us.
G4S reported good progress towards
its aim 50 per cent of revenue from
developing markets by 2019.
G4S chief executive Nick Buckles is pleased with his firms performance
G4S PLC
14May 15May 9May 10May 11 May
277.50
275.00
272.50
270.00
267.50
265.00
262.50
260.00
p
275.20
15May
WEDNESDAY 16 MAY 2012
cityam.com
10
NEWS
We expect a further acceleration of organic growth through 2012.
Owing to the start-up costs associated with a number of contract mobilisations
and the impact of US government budgetary cuts, we expect at prots
in the rst half and strong growth in the second half of 2012.
ANALYST VIEWS

G4S stands to benet from the ongoing outsourcing dynamic, with its
strong brand providing it with superior pricing power to its peers. Additionally,
G4S has strong exposure to emerging markets, providing a signicant
opportunity to boost revenue further.

[The statement] shows a good pick up in organic growth, offset by

some margin weakness. Organic growth is better than expected, but we are
mindful of FX headwinds and margin pressures. We expect G4S to out-
perform in choppy markets, given its consistent track record to date.

CAN G4S CONTINUE TO

EXPAND DURING 2012?
Interviews by James Waterson
JULIAN CATER CANACCORD GENUITY

JONATHAN JACKSON KILLIK & CO

MIKE ALLEN PANMURE GORDON

DEBT-LADEN pub group
Enterprise Inns yesterday
announced it has reduced net
borrowing by seven per cent to
2.9bn during the six months to 31
March, helped by the sales of loss-
making properties.
The company, which owns
around 6,100 pubs across Britain,
also said that income across its
total estate dropped by 1.6 per
cent for the same period.
First half profit before tax and
exceptional items was 64m.
We have been subjected to
extremely challenging conditions
Enterprise Inns cuts debt load
in face of challenging trading
BY JAMES WATERSON during the past four years, with
cost pressures, consumer
weakness, political interference,
pressure on asset valuations and
the volatility of capital markets
combining to make life difficult,
said chief executive Ted Tuppen.
He added that conditions would
remain challenging but a
summer of major events
including the Olympics and the
Jubilee celebrations would bring
customers to his pubs.
The company is preparing for
the crunch date of December 2013
when it has to refinance its bank
facilities.
Shares in the firm did not move.
WEDNESDAY 16 MAY 2012
11
NEWS
cityam.com
Ted Tuppen said political interference and other factors have made life tough for pubs
GERMAN insurance giant Allianz yes-
terday reported a 40 per cent jump in
operating profit to 2.3bn (1.8bn)
for the first quarter, but warned that
its financial health depended on a
successful outcome to the Eurozone
crisis.
We expect further shocks before
the situation finally calms down and
therefore we remain very cautious,
explained finance chief Oliver Baete.
As a company with total assets of
over 600bn, we hang on the mar-
kets.
He also said that a Greek exit from
the single currency would have ter-
rible consequences for Greece and
must be avoided at all costs before
adding he is very concerned about
the recapitalisation of the Spanish
banking sector.
Overall group revenue rose just 0.5
per cent but the firm confirmed that
it remains on course to hit its target
operating profit of 7.7bn8.7bn for
the year.
Its property and casualty insurance
recorded a 79 per cent increase in
profits to 1.2bn, mainly due to a
Allianz profits
jump despite
Eurozone fears
BY JAMES WATERSON
break from the disasters that hit the
industry during 2011.
Damage claims from natural catas-
trophes were just 42m, down from
737m for the same period last year
when there were devastating earth-
quakes in Japan and New Zealand.
Operating profit in life and health
insurance rose 18 per cent as improv-
ing investment income offset a fall in
revenue, while profit from asset man-
agement rose 16 per cent.
Allianz also revealed it has taken a
77m hit on its stake in Spains Banco
Popular but said it would continue to
work with the bank.
Shares in Allianz closed yesterday
down 0.7 per cent at 76.59.
Allianz SE
14May 15May 9May 10May 11 May
86
84
82
80
78

76.59
15May
TWO of the UKs top four
supermarkets have said they will cut
fuel prices from today, passing on
savings to customers as the cost of
wholesale oil continues to fall.
Sainsburys and Morrisons the
third and fourth biggest
supermarkets by market share
respectively both confirmed
yesterday they will cut petrol prices
by up to 2p per litre.
The continued bad news in
financial markets is good news for
motorists, said Mark Todd, petrol
director for Morrisons.
After seeing continued
reductions in the price of oil we are
taking the opportunity to bring
down prices at the petrol pump.
The latest cuts come less than a
week after Asda, Tesco and
Morrisons last lowered prices, and
are the third round of reductions
this month. But the AA has insisted
that fuel costs with national
averages at 1.39 per litre for petrol
and diesel at 1.45 are still too
high, and that retailers can afford to
make further cuts.
We are doing everything we can
to help our customers save money
and along with the promotions we
run in our stores, competitive fuel
prices are a great way for us to help
shoppers to meet their weekly
budgets, said a Sainburys
spokesperson.
Supermarkets
kick off petrol
price drop wars
BY ELIZABETH FOURNIER
TWITTER has reached 10 million
active users in the UK, the social
micro-blogging site announced
yesterday morning by means of a
tweet.
This means about seven per cent
of tweeters are based in the UK, out
of 140m global Twitter users.
The website defined active as
users who log in at least once every
30 days, and said a staggering 80
per cent access it through mobile
devices.
This compares to the 55 per cent
of Twitters global users that tweet
via mobile.
Twitters insight into its UK
operations, released to mark the
first anniversary of the opening of
its London office, came as the
website said it wants to work more
closely with the government.
Twitters UK general manager
Tony Wang said the company is
looking to hire a public policy
manager who would work with
various ministries and MPs and
concentrate on law enforcement.
The six-year old company made
headlines last year when
thousands took to the website to
identify Ryan Giggs as the subject
of a court superinjunction,
sparking debate on the legal
regulation of Twitter.
Twitter passes
10 million UK
user milestone
BY LAUREN DAVIDSON
G
E
T
T
Y
ANDROID now accounts for more
than half of Great Britains smart-
phones as the dominion of Nokia
and BlackBerry continue to wane.
Android, the operating system
behind Samsung and HTC smart-
phones, has climbed to a 50.1 per
cent share of the market compared
to 44.6 per cent a year ago, according
to Kantar Worldpanel
ComTech.
In the 12 week peri-
od to mid-April,
Nokias Symbian-
based smartphones
and RIMs BlackBerry
continued their
downward spiral,
falling 9.1 per cent
and 7.2 per cent
respectively.
Symbian now holds
just 1.6 per cent of
the GB smartphone
market, and suffered
drops of between 10
Half of British
smartphones
Android-based
BY LAUREN DAVIDSON
and 37 per cent in France, Germany,
Italy and Spain.
And iOS, the operating system behind
Apples iPhones, was quick to pick up the
straying customers, gaining 11.4 percent-
age points in Great Britain to a 30 per cent
share.
While Android surrendered some of its
market share in the US to iOS, the Google
operating system remained top of the
league with 47.6 per cent of American
smartphones.
The green robot con-
tinued to rein in the
European market,
gaining 27.2 percent-
age points to 61.8 per
cent of Germany and
climbing 39.5 notches
to 72.3 per cent of the
Spanish smartphone
market.
DO YOU USE TWITTER?Interviews by
Kasmira Jefford
I do use Twitter. Working for a charity, I nd it
is a fantastic marketing tool for everyday use
and letting people know what your company is about,
what you are doing and what you are working towards.
These views are those of the individuals above andnot necessarily those of their company
ERENE DELLAPORTA
CREATE

I dont use it but I have been meaning to set

up an account for quite a long time. It is a
medium that has really been taking over and it seems to
have about as much power as the press at the moment.
ANDREW MEIKLE
CBRE
I use it for corporate marketing rather than
personal exposure. I dont understand why
people would want to publicise their personal business,
but it is very good for publicising what we do as a rm.
SIMON PRICE
RECOMMIND

Launch of the Lumia has failed to boost ailing Nokia ...

B
ACK in November I wrote of the
difficulties that Nokia faced
and the importance of the
launch of the Nokia Lumia 800.
At that point, Nokia had seen a
rise in the buzz score on YouGovs
BrandIndex but that was already
starting to fade, and the launch had
had no impact on overall brand
perception as measured by the
Index score (an composite of six key
image measures).
At the time, I said that Nokia
would need to do a lot more, but
the intervening six months have
not bought good news for the
Finnish mobile phone brand.
The Index chart shows instantly
the problems that Nokia faced.
Since May 2010 its Index score
had fallen from the low 40s to
the low 30s. Though it then
stabilised, the decrease has
picked up again since, putting
the brand on just +26.
Contrast this with rival Samsung,
which two years ago trailed Nokia
by 12 points but overtook it in the
Autumn of 2011.
Following a further boost in the
wake of the Galaxy III launch
earlier this month, Samsungs
score is now +37, the best it has
ever achieved and a full nine
points ahead of Nokia.
Buzz shows a similar story, with
the boost that Nokia had received in
November quickly petering out.
Following problems with the
Lumia 900 in the US and warnings
of first and second quarter losses,
Nokia now has a negative Buzz
score for the first time in
BrandIndex history.
Samsung, on the other hand,
continues to go from strength to
strength and is on its highest ever
score of +21.
The launch of the Lumia 800 has
not improved perceptions of Nokia,
or even helped it stem the decline.
Unless it can find a way of turning
things around, troubling times lie
ahead.
BRAND
INDEX
STEPHAN SHAKESPEARE
CITYVIEWS
Christopher Biz Stone co-founded Twitter in 2006
Index Chart
2010 2011 2012
15
20
25
0
5
10
30
35
40
45
50
Nokia
Samsung
WEDNESDAY 16 MAY 2012
cityam.com
12
NEWS
Nokia (Symbian) and
BlackBerry (RIM) are
losing share of the GB
smartphone market.
%
Android 50.1%
iOS 30%
RIM 14.3%
Windows 7 3.3%
Symbian 1.6%
Other 0.7%
Buzz Chart
2010 2011 2012
-5
0
5
10
15
20
25
Nokia
Samsung
G
E
T
T
Y
Nokia Oyj
14May 15May 9May 10May 11 May
2.60
2.55
2.50
2.45
2.40
2.35
2.30

2.27
15May
WEDNESDAY 16 MAY 2012
13
NEWS
cityam.com
SHARES IN AVON PRODUCTS fell
more than 10 per cent yesterday after
Coty withdrew its $10.7bn (6.6bn)
takeover bid, saying the worlds
largest cosmetics direct seller had
taken too long to respond to its sweet-
ened offer.
Last week, fragrance company Coty
raised its bid to $24.75 per share from
an earlier $23.25 per share and
brought in Warren Buffetts Berkshire
Hathaway to provide financial back-
ing, giving Avon until Monday
evening to respond.
Avon, which had rejected outright
all of Cotys earlier bids without enter-
ing into discussions, said on Sunday
in a brief statement that it would con-
sider Cotys latest offer but respond
within a week. Coty, which makes for
perfumes for celebrities like Madonna
and Beyonc, said in a letter that after
no one on Avons board returned its
request for an explanation of why
Avon needed more time to agree, it
was pulling the offer.
Your total lack of engagement with
us leads us to believe that you remain
reluctant to explore a friendly, negoti-
Shares in Avon
slide after Coty
withdraws bid
BY KASMIRA JEFFORD
ated combination on a reasonable
timetable, Coty chairman Bart Becht
said in a letter to Avons board. Two
months is enough.
Avon replied yesterday that it had
responded promptly to Cotys 9 May
letter by disclosing it on 10 May and
indicating that its board would consid-
er the letter. However, on Monday, five
days after sending its letter, Coty with-
drew its proposal, Avon said.
The news leaves Avon shareholders
relying on new chief executive
Sherilyn McCoy to come up with a
plan to turn around a company that
has been struggling with plummeting
profits on falling sales both at home
and in some international market.
NOKIA yesterday launched a range
of low-end smartphones in a bid to
counter its plunging market share.
The Finnish company unveiled
two models to the European
market which will retail at around
35 and 38 (around 28 and 30)
respectively when they hit the
shelves later this year.
And to entice consumers to its
latest devices, Nokia is offering 40
free EA games worth about 60
... as Finnish handset maker launches phones for
under 30 in attempt to bump up flagging sales
BY LAUREN DAVIDSON around double the retail cost of
the phone with each purchase.
The phone-maker has been far
outpaced by smartphone giants
Apple and Samsung, and more
recently has been losing its grip on
the basic phone market.
Last month Nokias credit rating
was cut to junk by Fitch and
Standard & Poors, with Moodys
downgrading the debt rating to
one notch above junk.
Nokias shares, down two thirds
in the last year, yesterday dropped
THE LATEST developments in
shopping technology could deliver a
2.4bn sales boost to the UKs retail
sector by 2014, according to eBay.
Developments such as augmented
reality, which overlays digital
information onto physical products,
could indirectly apply to 9.1bn of
sales within the next two years.
The report predicts interactive TV
will be the most influential new
technology for retail, with 25 per
Third wave of shopping tech
to boost UK retail by 2.4bn
BY LAUREN DAVIDSON
cent of people regularly shopping
via this medium by the end of 2014.
Dubbed the third wave of
shopping technology following
online and then mobile
developments the latest creations
include smart devices, such as a
fridge putting in an order for food,
and augmented reality, which
could see consumers use virtual
imagery to try on clothes.
Ebay said these technologies
could boost sales by around four
per cent.
Alexander McQueen is to launch its first flagship store on London Mayfairs Savile Row
BRITISH FASHION house Alexander
McQueen has signed a lease to open
a new flagship store at 9 Savile Row,
Mayfairs famous tailoring street.
The brand, whose creative director
Sarah Burton created the Duchess of
Cambridges wedding dress last year,
will open a 4,400 square feet store
over two floors.
The ground floor will be used for
the luxury menswear collection
while the basement will offer
traditional tailoring in keeping with
the street. The Pollen Estate, which
owns a large part of Savile Row, was
advised by property specialists
Drivers Jonas Deloitte and Kitchen La
Frenais Morgan.
Mike Jones, partner at Drivers
Jonas Deloitte who manages the
estate on behalf of Pollen, said:
Alexander McQueens arrival
confirms the status and desirability
of the Row to eminent retail
businesses with tailoring, rather
than the desire for a famous address,
at their core.
The companys decision to open its
first standalone store on Savile Row
marks a return to its roots.
The late McQueen, who died in
2010, started his career as an
apprentice with Anderson &
Sheppard on Savile Row before
moving onto Gieves & Hawkes. Sarah
Burton, his long-term assistant took
over as creative director in May 2010.
Mcueen to
open flagship
on Savile Row
BY KASMIRA JEFFORD
2.7 per cent to 2.27.
Avon Products Inc
14May 15May 9May 10May 11 May
23
22
21
20
19
$
18.71
15May
SHARES in Smiths Group jumped in
early trading yesterday after the
technology conglomerate said sales
had increased and left its
expectations for the full-year
unchanged.
The maker of Heathrows airport
scanners said sales grew in the nine
months to 28 April, partly due to a
strong performance at its
mechanical seal maker John Crane.
The company also said margin
improvements in its John Crane and
Flex-Tex businesses meant operating
profit was ahead of the same period
last year.
However, underlying sales at
Smiths Medical were flat on last
year in the face of constrained
healthcare budgets.
Smiths Detection, the unit that
makes airport security scanners,
grew sales in the three months to
end April, the firm said.
Airport scanner
maker Smiths
grows revenue
HARRY BANKS
R
E
X
DEFENCE services group Babcock
International expects a profit boost
from austerity measures, as govern-
ments farm out more work to the pri-
vate sector to cut costs.
The current economic climate is
favourable to the further growth of
our business, chief executive Peter
Rogers said yesterday, adding that
2012-13 earnings should be ahead of
Babcocks previous expectations.
We are benefiting from a recogni-
tion that things need to be done dif-
ferently and made more efficient.
Austerity means people doing things
a better way and that is what we do.
Governments around the world
have been cutting spending as they
look to slash budget deficits. Babcock
said its focus on services and mainte-
nance puts it in a strong position as
clients look to cut costs by outsourc-
ing.
Babcock, which maintains British
navy submarines, said pretax profit
rose 26 per cent to 274m in the year
to March, on revenue up 14 per cent
to 3.07bn.
Babcock sees
profits boost
from austerity
BY HARRY BANKS
It was expected to report a 2012-13
pretax profit of 314m.
Babcock said it had secured pre-
ferred bidder status on a number of
new long-term contracts as well as
extensions to existing deals.
New contracts include the refit of
Britains Vanguard submarines at its
Devonport dockyard and a vehicle
replacement deal with Britains
defence ministry.
It said it also sees significant oppor-
tunities in defence training and
equipment support markets.
Contracts in British nuclear, training,
defence and infrastructure markets
were expected to be awarded later this
year.
Babcock shares, which had risen
seven per cent in the past three
months, closed 9.2 per cent higher
yesterday at 73.5p, valuing the compa-
ny at around 2.86bn.
These are strong figures and whilst
there may be some pause for breath,
we maintain our Buy, said Investec
analyst John Lawson.
The company, which this week sold
its US defence services unit, said its
order book stood at 13bn, up eight
per cent on last year.
RECESSION-weary Italians raised a few more glasses of Campari's trademark red aperitif
in the first three months of the year, helping the group post a 2.8 per cent rise in organic
sales. The Milan-based group, whose campaigns are fronted by actress Jessica Alba
(pictured), reported 279.3m in first-quarter sales.
ITALIANS DROWN SORROWS IN CAMPARI
Smiths Group PLC
14May 15May 9May 10May 11 May
1,050
1,045
1,040
1,035
1,030
1,025
1,020
p
1,041.00
15May
WEDNESDAY 16 MAY 2012
14
NEWS
cityam.com
Redrow chairman ups
stake after fundraising
PROPERTY firm Great Portland
Estates sold three buildings for over
100m in Londons West End and
Midtown districts yesterday as it
continues to recycle capital into its
major London schemes.
The company said it has sold
184/190 Oxford Street, Buchanan
House in Holborn and a portfolio of
properties at Portland Place for
106m, and 23 per cent above their
September 2011 book values.
The Oxford street building, which
is leased to retailers including Aldo
shoes, was sold to CBRE Global
Investors for 38.5m while Buchanan
House, a 67,000 sq ft office and
banking hall let to HSBC, was sold to
Orchard Street UK for 20.5m.
A subsidiary of Amazon properties
bought Park Crescent East for 47m
from GPEs joint venture with a
Capital & Counties.
Chief executive Toby Courtauld
said the sales continue its strategy of
recycling capital into recycle more
meaningful opportunities.
Great Portland
sells 100m of
London assets
BY KASMIRA JEFFORD
G
E
T
T
Y
CAPITAL & COUNTIES said yesterday
it has secured a 70m credit facility
from its lenders BNP Paribas and
HSBC, as the property specialist con-
tinued to make good progress on its
major schemes at Covent Garden and
Earls Court.
The five-year revolving credit facili-
ty, which has been secured against
some of the companys Covent
Garden assets, follows a 300m refi-
nancing with the same banks in
November last year.
In its interim management state-
ment for the year to 15 May, chief
executive Ian Hawksworth said the
group had an active start to the
year, acquiring three properties and
securing 10 new lettings at Covent
Garden in the West End.
Occupancy rate for the estate was
97.4 per cent in the period while foot-
fall remained consistently strong at
BY KASMIRA JEFFORD
44m on a 12 month rolling basis.
Hawksworth said the group looked
to benefit from the Queens Diamond
Jubilee celebrations and the Olympics
with a strong pipeline of new restau-
rants set to open ahead of the Games,
including Jamie Olivers Union Jacks
in July.
Richard Carings Balthazar restau-
rant will also be opening in the for-
mer Flower Cellars building at the
end of the year.
Capco secures 70m
financing deal ahead
of Olympic summer
HOUSEBUILDER Redrow said
yesterday that shareholders took up
just a quarter of the 80m-worth of
new shares it offered them in April,
leaving its chairman in control of 40
per cent of the Flintshire-based
company.
Shareholders took up just over
12m shares or 26.3 per cent
leaving the remaining 34m to go to
the underwriter Bridgemere
Securities, which is ultimately
controlled by Steve Morgan,
Redrows chairman.
This means that Morgan, who
also owns Wolverhampton
BY KASMIRA JEFFORD
Wanderers FC, now controls 40.4 per
cent of the companys shares.
Redrow raised 19.4m in total
through the placing of shares with
Bridgemere and 60.2m by issuing
three new shares for every 20
existing shares in an open offer,
which was fully underwritten.
Morgan, who founded Redrow in
1974, did not have to make a
mandatory offer for the firm despite
the stake increase due to a provision
to waive this obligation.
There are an increasing number
of land opportunities both in
London and in the regions and as
such we are looking to raise further
capital to enable us to take
advantage of these opportunities as
they arise, Morgan said when the
offer was announced.
Shares fell 1.4 per cent to 119.2p.
Capital & Counties has secured 10 new lettings at Covent Garden
Redrow PLC
14May 15May 9May 10May 11 May
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123
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120
118
p
119.20
15May
Capital & Counties Properties PLC
14May 15May 9May 10May 11 May
200
198
196
194
192
p 193.00
15May
Explore new horizons
from London
Dubai
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341
Johannesburg
from
515
Buenos Aires
from
663
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The new
jobs website
for London
professionals
WEDNESDAY 16 MAY 2012
15
NEWS
cityam.com
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
THE CHIEF executive of the
Investment Management Association
(IMA) will step down at the end of
2012 after 11 years in the post.
Richard Saunders, who presided
over the creation of the IMA in
2002, said he felt it was time for
him to move on.
It has been a great privilege to
work with a first-rate team at the
IMA and I am very proud of what we
have achieved together since the
association was set up. I know that
my successor will be taking charge
of an organisation in very good
shape to meet the challenges of the
coming years.
Saunders, 60, is one of the
industrys most high-profile
lobbyists and has repeatedly
demanded a fairer way of funding
the Financial Services
Compensation Scheme.
Yesterday IMA chairman Douglas
Ferrans said Saunders had been a
driving force in developing a
strong voice for the industry.
Saunders was appointed director
general of the Association of Unit
Trusts and Investment Funds in May
2001 and oversaw its merger with
the Fund Managers Association in
February 2002 to create the IMA,
Britains first trade association
representing the investment
management industry across all of
its activities.
Saunders set
to bow out as
head of IMA
BY PETER EDWARDS
F&C ASSET Management, the under-
pressure funds house, plans to boost
profits by setting up new investment
trusts.
The firm, which has endured a
turbulent 18 months including a
boardroom coup, said it is looking
at setting up new funds the first
of which could be an equities
trust as it shakes up its flagging
retail business.
Yesterday the firm said it wanted to
tackle perceived corporate issues fol-
lowing a strategic review by Edward
Bramson, the activist investor who
took the chairmans role last year
after a bitter boardroom battle.
The second part of Bramsons
review, focusing on the property,
consumer and retail arms, also
showed F&C plans to market multi-
manager and multi-assets products
directly to retail clients following
regulatory changes which may boost
the number of clients who choose to
manage their own assets rather than
use a financial adviser.
F&C is on track to meet planned
BY PETER EDWARDS
cost cuts of 33.2m by the end of
2013. Two out of three key clients
have also indicated they will retain
the majority of their assets with the
fund manager beyond the end of
existing exclusivity periods.
Last week F&C posted a further
1.7bn of outflows for the first quar-
ter, although total assets under man-
agement rose 1.7 per cent to 101.8bn
after the rally at the end of March.
Analyst David McCann at Numis said
F&C remained cheap compared to
the rest of the sector but added: It
remains very hard to predict how
earnings are going to look over the
medium term.
Richard Saunders is leaving the IMA after 11 years as chief executive
F&C Asset Management PLC
14May 15May 9May 10May 11 May
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66
67
68
69 p
67.00
15May
WEDNESDAY 16 MAY 2012
16
NEWS
cityam.com
F&C plots fund
launches amid
revival plans
Wonga CEO Errol Damelin and
left, Blackpools Thomas Ince
and Ryan McGowan
of Hearts, right
makes a welcome change from the
more usual dominance of the
Glasgow clubs.
Meanwhile one suspects that 42
year-old Damelin, who recently raised
$95,000 by running a marathon for
charity, will also be taking a keen
interest in the result of another game
taking place this weekend, the
European Champions League Cup
Final between Chelsea and Bayern
Munich. If Chelsea win the match,
that will have the consequence of
knocking Tottenham Hotspur out of
the fourth English place for next
seasons competition.
As an avid Spurs fan,
Damelin is naturally hoping
for a Bayern victory.
THIS weekend is a crucial footballing
one for Wonga chief executive Errol
Damelin and his private equity-
backed company.
The online short-term loan
provider is shirt sponsor for Hearts of
Midlothian, the Scottish club that is
contesting an all-Edinburgh cup
final derby against rivals Hibernian.
Wonga is also shirt sponsor in
England for Blackpool, who are tak-
ing on West Ham United in the
Championship play-off at Wembley
with hopes of returning to the lucra-
tive Premiership at the first
time of asking.
South African-born
Damelin has decided to
attend the Hearts match
at Hampden Park, the
first game hes ever been
to in Scotland,
with his two chil-
dren.
It is the first
time the two
Edinburgh clubs
have met in the
Scottish Cup Final
since 1896
a n d
BANKS have been facing a pretty hilly
time of late, with arguably more
downs than ups. But Standard
Chartered has added a few more
mountains to its obstacle course.
The British bank has joined forces
with Bermondseys Salmon Youth
Centre to take on the Three Peaks
Challenge, a bumper hike which
involves climbing the highest
mountains in England, Scotland and
Wales Ben Nevis, Scafell Pike and
Snowdon within 24 hours.
The team, which includes
Standard Chartered executives
Nicholas Philpott, Gregory Atack and
Goncalo Lima as well as Salmon
Youth teenagers, is aiming to raise
10,000 to help fund the centres
work with disadvantaged young
people in South London.
And with a total ascent of 3,000
metres, lets hope these Salmon can
make it upstream.
To donate, go to
www.virginmoneygiving.com/SCsquared
StanChart faces uphill challenge
Tense end of season
looms for Wonga
Float away
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Got A Story? Email thecapitalist@cityam.com
17
THECAPITALIST
cityam.com/the-capitalist
Sir Roger Carr
Centrica
2010 Dealmaker
of the year
Daniel Ek
Spotify
2011 Entrepreneur
of the year
Boris Johnson
Mayor of London
2010 Personality
of the year
Gerald
Ronson
Heron Corperation
2011 Personality
of the year
Crispin Odey
Odey Asset
Management
2010 Trader
of the year
Angela
Ahrendts
Burberry
2010 Company
of the year
G
E
T
T
Y
POWER station Drax yesterday said it
had been boosted by lower costs in
producing power, while sales are on
the rise.
Drax, which converts coal into ener-
gy, said that the wholesale prices it
was paying for coal were falling while
it was selling energy at higher rates.
The difference in so called dark
green spreads was also accompanied
by a rise in sales, the company said in
its trading update.
In the statement covering the peri-
od from 1 January, Drax said it had
delivered a good operating perform-
ance while it was on track to hit fore-
casts for the full year.
Yorkshire-based Drax said its order
book was also strong with the groups
sales for 2012 hitting 25.3 terawatts
(TWh) and 14 TWh and 3.7 TWh for
2013 and 2014.
Drax said it was moving towards
greener technology to create power,
in line with the governments push
towards renewable and biomass ener-
gy.
Drax margins
in boost as its
costs reduce
BY JOHN DUNNE
The company said in a statement:
Drax is ready to transform itself into a
predominantly biomass fuelled gener-
ator, but to do so we need an appropri-
ate level of regulatory support, and to
that end we look forward to the timely
conclusion of the Governments cur-
rent review.
Drax has six generators creating
4,000 megawatts of energy, making it
the largest coal-fired power station in
the UK.
The company sells most of its energy
on the wholesale market and mainly
supplies businesses.
S&P cuts Chesapeake's credit rating
further into junk on funding needs
CHESAPEAKE Energy was hit by
a credit rating downgrade
yesterday following news that
the natural gas producer will
extend its borrowings to $4bn
(2.5bn) from the planned $3bn
as it faces a liquidity crunch.
Chesapeakes cash flows
have shrunk as natural gas
prices have slumped to their
lowest levels in a decade,
putting pressure on the
second-largest US producer of
the fuel to raise money to fund
drilling operations.
Ratings agency Standard &
Poors said it had cut
Chesapeakes credit rating to
BB- from BB, one notch
lower into non-investment, or
junk, status. S&P cited
shortcomings in the companys
corporate governance
practices, concerns about loan
covenants and the likelihood of
a wider gap between operating
cash flow and capital
expenditures.
Funding needs for the
company over the next two
years are likely to be higher
than expected, according to
S&P credit analyst Scott
Sprinzer, who described
Chesapeakes liquidity in a
statement as less than
adequate.
The new, expensive
unsecured bridge loan will
replace an existing $4bn debt
facility. Company executives
said on Monday they had
drawn more than $3bn of that
existing debt line. Demand
from yield-hungry investors for
the bridge loan was huge.
I mean really...Chesapeake is
forced to issue debt at higher
levels than ever with incredibly
onerous terms in an interest
rate environment thats the
lowest most of us have ever seen
in our lifetimes? asked Bonnie
Baha, portfolio manager at
DoubleLine, which oversees
$34bn in assets under
management. Its absolutely
untenable.
HARRY BANKS
Power station Drax has seen strong sales
Drax Group PLC
15May 9May 10May 11 May 14May
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560
565
570
575
580 p
571.00
15May
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18
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ENERGY minister Charles Hendry
said yesterday that RWE and E.ONs
British nuclear joint venture,
Horizon, needs to find new investors
if it is to survive because its existing
backers will not stump up more cash.
Britains nuclear future was
thrown into doubt in March when
RWE and E.ON, under pressure from
their home countrys decision to
phase out nuclear power, announced
the sale of Horizon, while the
government is pushing through an
electricity market reform that seeks
to attract new nuclear investment.
We would not expect it to be one
of the other two nuclear consortia to
take over Horizon. I think this would
be new investors who come forward,
the minister, Charles Hendry, told a
parliamentary committee.
He added that the government had
approached sovereign wealth funds
for investment.
Horizon, based in Gloucester, plans
to build at least six gigawatts (GW) of
new nuclear power capacity at sites
in Oldbury, central England, and
Wylfa, north Wales, an investment
RWE and E.ON had estimated at
15bn.
The two other consortia to have
proposed building new nuclear
plants in Britain are Frances EDF
together with Britains Centrica and
Frances GDF Suez in partnership
with Spains Iberdrola.
Nuclear project
on the hunt for
new backers
BY HARRY BANKS
G
E
T
T
Y
OIL explorer Afren said yesterday its
profits in the first quarter had
jumped thanks to new finds.
The company said it had been
buoyed by discoveries in Nigeria and
Kurdistan.
Afren posted pre-tax profits of
143.2m compared with 2m in the
first quarter of 2011.
The FTSE 250 explorer reported net
production of 41,308 barrels of oil
per day equivalent (boepd), hitting
targets for the period.
That was more than 300 per cent
higher than in the first quarter of
last year.
Meanwhile net debt stands at
$639.4m compared with $291.6m in
the first quarter of 2011.
Afren said it was on track for full
year net production guidance of
42,000 boepd to 46,000 boepd.
Chief executive of Afren Osman
Shahenshah said: We have made an
excellent start to our 2012 explo-
ration campaign with significant dis-
coveries at Okoro East, Ebok North
fault Block and Ain Sifni.
Afren in boost
from Nigeria
and Kurdistan
BY JOHN DUNNE
We look forward to continuing our
exploration programme, with wells
in Nigeria, the Nigeria-So Tom &
Prncipe JDZ, Congo, the Kurdistan
region of Iraq and East Africa.
Analysts at Deutsche Banks and JP
Morgan on Monday named Afren as
one of their preferred oil stocks
because of its recent performance.
The company expanded its reach
into the Middle East last year when it
bought stakes in two Kurdistan opera-
tions for $588m (367m). The firm
has said it expects its Barda Rash field
in Kurdistan in Iraq to produce 10,000
to 15,000 barrels per day by the end of
the year.
Afren PLC
15May 9May 10May 11 May 14May
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130 p
120.10
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WEDNESDAY 16 MAY 2012
20
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ARCELORMITTAL has reduced production at the main steelmaking unit of its plant in
Kazakhstan after a fire killed two people yesterday, the company's local unit said.
ArcelorMittal Temirtau, the Kazakh unit of the firm run by billionaire Lakshmi Mittal, said
the fire had been contained after burning for more than three hours.
ARCELORMITTAL KAZAKH UNIT HIT BY INFERNO
P
A
AN INDEPENDENT Scottish state
would inherit a national debt of up
to 70 per cent of its GDP, and
would expect to face a dangerously
high annual deficit, an expert
witness warned a House of Lords
committee yesterday.
If the debt is divided by
population, the country would
face a debt of 64-83bn, Sterling
University professor David Bell
told the economic affairs
committee.
That represents up to 71 per cent
of the countrys 117bn GDP.
Meanwhile Bell estimates that in
Independent Scotland could
see an 11 per cent budget gap
BY TIM WALLACE 2009-10, an independent Scotland
would have run a budget deficit
worth 11 per cent of GDP.
That stands very much in line
with the total UKs deficit in the
year, which stood at 11.5 per cent.
However, the calculation is based
on the Scottish state gaining
roughly 90 per cent of oil reserves
and without access to that
declining resource, the deficit
would have hit 18 per cent.
Any negotiations to divide assets
and liabilities would be fraught
with difficulties, Bell warned,
particularly due to the fixed
nature of some assets, and investor
participation in debt deals.
WEDNESDAY 16 MAY 2012
21
NEWS
cityam.com
Professor Bell warned Scottish national debt would stand at up to 70 per cent of GDP
LABOUR ministers from the G20
must focus on solving mass
unemployment among young
people, the Organisation for Co-
operation and Development (OECD)
said yesterday.
Senior government officials are
meeting in the Mexican city of
Guadalajara tomorrow and already
face protests from young trade
unionists over growing
international joblessness.
And now the Paris-based think
tank has added its voice to the
chorus demanding concrete
action. Young people continue to
bear the brunt of the jobs crisis,
with nearly 11m 15 to 24-year-olds
out of work in OECD countries in
early 2012, the group said.
The youth unemployment rate
across the G20 was measured at 17.1
per cent in March, close to its
recession high of 18.3 per cent
recorded in November 2009.
In some countries, particularly
those at the centre of the growing
Eurozone debt crisis, over half of
young people are unemployed.
In Spain, youth unemployment
was 17.4 per cent in March 2007 and
had risen to 51.1 per cent by March
2012, the OECD report found.
More than one in five young
people in the labour market in
France, the UK, Sweden, Poland,
Ireland and Italy are out of work.
G20 must focus
on youth jobs,
says the OECD
BY JULIAN HARRIS
EXPORTS increased in March, official
data showed yesterday, as UK trade
with non-EU countries boomed.
The trade deficit in goods and servic-
es narrowed to 2.7bn in the month,
down from 2.9bn in February the
Office for National Statistics reported.
Services exports rose 0.2bn to
15.5bn while imports held at 9.6bn,
leaving a surplus of 5.8bn.
Meanwhile goods exports rose
1.4bn, or 5.8 per cent, to 26.4bn and
imports rose 1.4bn, or 4.2 per cent, to
34.9bn, leaving a deficit unchanged
at 8.6bn.
However, the goods deficit with EU
countries rose as imports increased
0.8bn to 17.6bn while exports stag-
nated at 13.2bn in the month.
The overall fall in the trade deficit
came entirely from trade outside the
EU, where goods exports jumped 12.1
per cent to 13.2bn and imports rose
by four per cent to 17.3bn.
The rise in total exports was driven
by chemical and pharmaceutical sales
which jumped 0.2bn, in large part to
the US and China, as well as car sales
Exports to the
EU dip but UK
deficit shrinks
BY TIM WALLACE
to the US, Russia and Germany.
Meanwhile oil added 0.7bn to
British imports.
Analysts warned the weak state of
the Eurozone remains a major risk to
Britains economic recovery.
The Eurozone crisis is hitting UK
exports the share of total goods
exports sent to the area fell to 45.3 per
cent in the first quarter, the lowest
since data began in 1988, said Citi
economist Michael Saunders.
The headwind for UK exports from
weakness in Eurozone economies is
now being compounded from by the
rising pound, he warned.
Exports to non-EU countries
Jan2012 Jan2011
13,500
13,000
12,500
12,000
11,500
11,000
10,500
10,000
m
PRECISION engineering firm
Renishaw said its quarterly profit fell
15 per cent on continued investment
in staff and infrastructure, but the
company expects to overcome the
shortfall and grow profits for the year.
The company, which makes and sells
precision and inspection products for
the healthcare and metrology indus-
tries, said activity in April was ahead
of last year.
Despite continuing global macro-
economic uncertainties, we have
experienced good growth over the
year to date and are starting to see
signs of an upturn in the electronics
market, Renishaw said in a state-
ment.
Pre-tax profit fell to 21.4m for the
third quarter from 25.2m a year ear-
lier.
January-March revenue rose four per
cent to 81.6m, with growth in
Europe, the UK and the US, which is
also the companys biggest single mar-
ket.
Shares of the company, which have
gained 33 per cent this year, closed up
Renishaw says
dip in profit is
short-term blip
BY HARRY BANKS
9.4 per cent at 1,473p yesterday.
Scott Cagehin, an analyst at Numis
who has a hold recommendation
on the stock said: Profits are lower
but this is driven by a higher cost base
to support revenue growth and
increased research and development.
However, management expects to
generate good profits in the fourth
quarter and full-year 2012 pre-tax
profit should be ahead year-on-year.
With high operational gearing, we
believe that there is good potential
upside risk with a recovery in its elec-
tronics sector coupled with the bene-
fits of restructuring its healthcare
business.
Renishaw PLC
15May 9May 10May 11 May 14May
1,300
1,350
1,400
1,450
1,500
1,550 p
1,467.00
15May
WEDNESDAY 16 MAY 2012
22
NEWS
LONDONREPORT
Bank of Ireland
Adrian Olsen has been
appointed as Bank of
Irelands new head of
business banking in the
UK. He has been with the
bank for 12 years as a
managing director and
head of global project
finance for its UK
corporate banking
division. Olsen has also previously held
senior positions at Dresdner Kleinwort
Benson, BZW and Banque Indosuez.
Laird
The technology firm has announced
the appointment of David Lockwood
as its chief executive. Lockwood was
most recently vice president, global
defence and security, at BT Global
Services. He has also held roles at
GPT (Marconi), BAE Systems,
Intense, and Thales Corporation.
Edison Investment Research
The investment research firm has appointed
Justin Lloyd-Williams to its continental
European coverage team. He joins from
MainFirst Bank, where he worked in equity
sales. He has previously worked for Hordern
Capital and Commerzbank Securities.
CMS Cameron McKenna
The legal and tax services provider has
announced that Tim Scott is joining its
insurance sector group as a consultant.
Scott joins from the FSA and is a specialist in
the prudential regulation of insurers and a
Solvency II expert. He has previously served
as a managing associate in Linklaterss
corporate insurance and regulatory team.
WHOS SWITCHING JOBS
Edited by Tom Welsh
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
BRITAINS top shares extended losses
yesterday, led by the mining sector
as the cloud looming over the
Eurozone darkened after Greek
politicians failed to form a
government, denting sentiment and
the outlook for global growth.
Londons blue chip index fell 0.5
per cent to 5,437.62, adding to the
previous sessions two per cent drop,
with anxiety increasing that Greece
might leave the Eurozone.
Reflecting concerns that the
Eurozone crisis will deepen the
recession in Europe and do serious
damage to the outlook for corporate
Miners help extend FTSE 100 losses
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
earnings, the FTSE volatility index
a crude gauge of investor fear has
spiked more than 100 per cent since
Spain said it would need to scale
back its austerity plan in mid-March.
A slump in German analyst and
investor sentiment in May and
mixed data in the US, where April
retail sales hinted at slower spending
pace while a gauge of
manufacturing in New York state
bounced higher in May, did little to
boost sentiment.
Miners, which rely heavily on
NEW YORKREPORT
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S
We ensure our trainees and
members have a rasp of
the bier picture. And aIso
understand internationaI
business and IocaI market
issues. That's why ACCA
accountants are ood for
business. Their riorous
trainin aIIows them to
be effective and reIevant,
whatever and wherever
the chaIIene.


































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































WEDNESDAY 16 MAY 2012
23
+44 (0)20 7092 0053
morganmckinley.com
as Greek talks fail
in association with
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
Barclays
Barclayss wealth and investment banking
division has appointed two directors to its
high net worth team. Rupert Allison joins
from the Coutts ultra-high net worth team.
He was previously a team leader at HSBC
Private Bank. Sophie Bultitude joins from
Citigroup Private Bank, where she was most
recently team leader in its law firm group
division.
Air Partner
Paul Argyle has been appointed as director
of the air charter brokers UK commercial jet
division. He joins from Flight Directors
Scheduled Services, where he was chief
executive and led the business since its
launch in 1984.
Natixis
The French corporate and investment bank
has appointed Darren Barker to its London
FX sales team. Barker has over 20 years
experience in FX sales and trading, and has
worked at Citibank, JP Morgan, Bank of
America, UBS and most recently for
UniCredit Bank.
demand from the US and China,
which is the most voracious
consumer of raw materials and has
seen its growth slow this year, were
the sharpest fallers.
Growth worries led UBS to cut its
earnings forecasts for Kazakhmys,
down 4.1 per cent, by up to 20 per
cent between 2012-14 and repeat its
sell rating on the miner.
The mining sector is down 20 per
cent in 2012, hit by concerns over
rising costs and slowing demand,
and is in oversold territory for the
first time since August 2011 just
before UK stocks began to rally.
The broader FTSE 100 has fallen
nine per cent since mid-March, while
banks and insurers, which are most
exposed to the changing fortunes of
the Eurozone, have shed up to 10 per
cent in the last three months.
Both sectors were lower again
yesterday with insurer Aviva falling
2.9 per cent, weighed by an earnings
downgrade by BofA Merrill Lynch,
which said it was too early to turn
positive on the stock.
U
S stocks fell for the eighth day
in the past 10 yesterday as
uncertainty stemming from
the political stalemate in
Greece gave investors another
reason to be cautious and sellers
came out in force late in the
session.
The S&P 500 fell for the third
straight session as attempts to
form a government in Greece fell
apart, raising the possibility of a
rejection of the bailout terms
spelled out by the European Union
for the fiscally troubled nation.
After holding near the
unchanged mark for much of the
session, stocks moved lower in the
absence of positive news to turn
the tide of negative sentiment.
The concerns about upheaval in
the Eurozone and its effect on the
global economy weighed on
energy and materials stocks, with
US crude down for the third
straight day. The S&P energy index
and the S&P materials index each
dropped 1.5 per cent.
Quarterly results helped boost
retailers TJX, up 6.9 per cent at
$42.45, and Dicks Sporting
Goods, up 5.9 per cent at $50.05.
BESTof theBROKERS
Lonmin PLC
p 960
940
920
900
880
860
840
820
9May 10May 11May 14May 15May
805.00
15 May
Man Group PLC
p 90
88
86
84
82
80
9May 10May 11May 14May 15May
79.85
15 May
BT Group PLC
p
222.50
220.00
217.50
215.00
212.50
210.00
207.50
205.00
9May 10May 11May 14May 15May
207.30
15 May
LONMIN
UBS has maintained its sell
rating on the platinum miner
but dropped its target price
from 710p to 700p after a
disappointing first half of the
year that saw the company
lose $14m. The broker has
lowered its earnings per share
forecast for the full year by 25
per cent, and says that if weak
pricing continues to hit Lonmin
it will be forced to reevaluate
its spending plans.
MAN GROUP
Numis has downgraded the
asset manager from hold to
sell with a target price of
64p, saying it expects the
groups flagship AHL fund will
continue to struggle and that
there is little management can
do to change this. The broker
says it now believes that Man is
worth no more than its
liquidation value, which it
estimates as between 50-70p
per share.
BT GROUP
Following fourth quarter
results, Espirito Santo has
upgraded the telecom group
from sell to :neutral and
ups its target price from 180p
to 210p. The broker sees
opportunities for cost cutting
that should help reduce
pressure on revenue and help
Ebitda growth for 2012-13. It
also expects BT Retail to be
able to sustain its
outperformance.
Wall St suffers third straight drop after late slide
L
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Y
A
M
I
N EUROPE, as well as globally,
retail and institutional investors
have been steadily embracing the
use of exchange-traded funds
(ETF).
The move to ETFs is being driven by
several factors:
1) ETFs offer a toolbox: providing
diversified, liquid, transparent and
cost-efficient benchmark exposures
in a fund structure to a wide array of
asset classes and geographies.
2) The recognition that it is diffi-
cult to pick individual stocks and
bonds which perform better than
the benchmark.
3) It is hard to find active funds
that consistently beat their bench-
marks.
An increasing number of investors
are using ETFs to implement tactical
exposure to specific markets and
asset classes. Investors are using ETFs
most commonly to access broad
equities, government bonds, pre-
cious metals and emerging markets.
A recent Lipper study of actively
managed mutual funds in Europe
found that 26.7 per cent of equity
funds beat their benchmark and
only 23.7 per cent of active bond
funds beat their benchmark in 2011.
81 per cent of active large cap man-
agers underperformed the S&P 500
benchmark in 2011 according to a
recent study by Standard and Poors.
In Europe, typically four out of ten
active funds beat their benchmarks.
Finding the time and information to
select active funds in Europe is made
more challenging by the large num-
ber of funds to select from current-
ly around 35,000 funds. Fund
turnover is also very significant with
typically 3,400 new funds launched
and 2,400 closed each year on aver-
Join City A.M. next week for our
age over the past 10 years.
The challenge of finding professional
managers who consistently beat their
benchmark as measured by the S&P
500 index delivering alpha by pick-
ing individual stocks has not changed
much in the past nearly forty years.
Numerous studies have shown that it
is hard for professional active investors
to consistently beat their benchmark.
Whats more, the annual costs associ-
ated with investing in active funds is
significantly more than investing in
an ETF or index fund designed to track
the same benchmark.
These higher costs are another
important factor accelerating the
move to index investing. Since the
recent financial crisis, investors have
become more aware of the impact
these expenses can have on active fund
performance. An active fund that
delivers returns below the benchmark
prior to costs being deducted looks like
a faulty choice for a building block,
after deducting the typical annual 1.50
per cent expenses for active funds.
An index fund may not offer the
potential to outperform a benchmark,
but you do know you will get the
benchmark minus fees and any track-
ing error, which should be very small
typically less than 0.50 percentage
points for an S&P 500 index fund.
Index mutual funds tend to exist
only on well-known indices, while ETFs
cover an ever-expanding array of
indices and asset classes. ETFs offer a
number of benefits over many of the
other alternatives: small minimum
investment, typically less than 100;
liquidity; diversification; low cost;
exchange-traded; and real-time access
to a wide range of indices and asset
classes around the world.
Deborah Fuhr is a partner at ETFGI, an
independent research and consultancy firm.
She will be speaking on our Listed Products
Masterclass on 24 May. To meet our panel-
lists and dozens more trading gurus on 24
May, buy your ticket today:
www.cityamactivetrader.com
WEDNESDAY 16 MAY 2012
24
ACTIVETRADER CONFERENCE
cityamactivetrader.com
Our all-day trading
show is on 24 May. A
session covers trading
listed products our
panellist Deborah
Fuhr gives us a taster
before the big event
DONT MISS OUR BLOCKBUSTER
TRADING & INVESTMENT CONFERENCE
cityamactivetrader.com or call 0203 201 8900
24
TH
MAY 2012
See the full programme & buy your tickets today at THE GRANGE HOTEL, TOWER BRIDGE
In association with Champagne reception sponsor Produced by
TICKETS JUST 40
Dont miss the boat get your Active Trader tickets at The Grange Tower Bridge Hotel today
special trading event
ACTIVETRADER CONFERENCE
25
WEDNESDAY 16 MAY 2012
08:45 09:00
Welcome Address by Allister Heath:
Making prots in a chaotic world
09:00 10:00
Richard Farleigh: How to tame
the lion, my trading secrets
10:30 11:20
Charting Techniques: Panel discussion
with James Hughes, Alejandro
Zambrano, Angus Campbell,
David Jones and Ashraf Laidi
10:30 11:20
Jamie Seattele & David Rodriguez:
Forex Insight
11:30 12:20
Politics meets Trading: Panel
discussion with Guido Fawkes,
Allister Heath, David Kuo and
Steve Sedgwick
11:30 12:20
Listed Products Masterclass:
Panel discussion with Nicolas
Bertrand, Deborah Fuhr and
Alex Houpert
12:30 13:20
Equities Insight with Gary Baker
12:30 13:20
Social Media meets Trading
with Dan Moczulski, Yoni Assia,
David Jones and Joshua Raymond
13:20 14:20
Lunch
14:20 15:20
Lex van Dam: 5 Steps to trading
success
15:30 16:20
Spreadbetting and CFD Masterclass
with David Jones
15:30 16:20
Boris Schlossberg: Strategies
for day trading
16:40 17:30
Masters of Forex: Panel discussion
with Michael Derks, Boris Schlossberg,
John Hardy, and David Rodriguez
16:40 17:30
Global Investment trends
with Tim Guinness
17:40 18:30
The Future of Trading: Panel
discussion with Tim Howkins, Simon
Denham, Torben Kaaber and Drew Niv
17:40 18:30
Quant Trading Masterclass with Emilio
Tomasini & Rakesh Shah
18:30 19:30
Champagne Reception
Complimentary lunch and later, champagne reception available for all delegates at the FXCM restaurant. This will be a chance to informally meet the Active Trader speakers.
Gillian is head of fixed income
and listed products at London
Stock Exchange. She heads up the
companys debt capital markets in
London, and is also responsible for
GILLIAN WALMSLEY
LONDON STOCK EXCHANGE
Islamic Finance, ETFs, covered warrants and structured products.
She has led the introduction and evolution of London Stock
Exchanges Order book for Retail Bonds (ORB), the UKs first
dedicated electronic platform for the listing and trading of retail-
denominated government and corporate debt. Before joining the
Exchange in 2008, Gillian was part of the interest rate product
development team at Liffe, the derivatives arm of NYSE Euronext.
Alex Houpert will speak about how you can trade listed products that limit your risk
ATTEND OUR TRADING CONFERENCE ON 24 MAY: BUY TICKETS AT CITYAMACTIVETRADER.COM
MEET THE PANEL: LISTED
PRODUCTS MASTERCLASS
11.30AM - 12.20AM, 24 MAY
cityam.com
There has been huge interest in exchange-traded funds (ETF),
covered warrants and other listed products over the past few
years. Retail investors now have more freedom to trade
commodities such as gold, silver and oil as well as indices
such as the FTSE and Dow. Our panel will debate the merits of
this exciting new product and guide the delegates through
some of the pitfalls of investing. They will highlight the
dangers of some kinds of products but argue that others
can provide an unparalleled low-cost route to new markets
for retail investors.
Deborah is currently
providing independent ETF
and Delta1 research and strategy.
She was previously the global
head of ETF research and
DEBORAH FUHR
ETFGI
implementation strategy and a managing director at
BlackRock and Barclays Global Investors. Under her guidance,
BlackRocks team was responsible for advising clients on the
implementation of asset allocation strategies using ETFs,
producing analysis and guidebooks on the global ETF
industry. Prior to joining BlackRock in September 2008
Deborah spent the prior 11 years working at Morgan Stanley.
Alex is head of sales in
listed products at Socit
Gnrale, UK and Northern
Europe. He joined the marketing
team in 2001, promoting listed
ALEX HOUPERT
SOCIT GNRALE
products to French retail investors. In 2005, Alex began
working with private banks and asset managers, before
moving to listed and structured products sales in 2007. In
September 2009, Alex was appointed head of UK and
Northern Europe Listed Products, based in London.
Previously, he worked with Ernst & Young as an auditor. He is
a graduate from University Panthon-Assas Paris.
T
HERE is little doubt that 2011 was a
tough year for investors. Record low
interest rates meant savings rates were
kept at rock bottom, and higher levels
of inflation rendered any return virtually
worthless in real terms. It was not much
better in the equity markets. Between 14 May
2011 and 14 May 2012, the FTSE 100 Index
returned an unimpressive 7.90 per cent
and the Eurostoxx 50 Index was down a
depressing -23.93 per cent. This just
highlights what a bumpy ride many
portfolios would have had last year.
HOW CAN LEVERAGE HELP?
Many people would think it mad to even con-
sider leveraging their exposure in such mar-
kets, but the truth is that there are several
reasons why you might do just that.
Firstly, you can focus on the short and
medium-term opportunities that each rise or
fall represents. Plus, youre not actually
restricted to just rising markets, you can posi-
tion yourself for a falling or flat markets too
in an ever growing list of single stocks,
indices, commodities and currencies. And
actually, by gearing up your exposure, you
dont have to commit as much capital as you
would if you were buying the underlying
asset directly, so it is possible in fact to lower
your overall risk.
FIX YOUR RISK WHILE LEVERAGING YOUR RETURNS
And leveraged returns do not have to come at
the expense of unlimited risk. Issuers such as
ours have a range of fixed risk trading prod-
ucts that enable you to leverage returns in
rising, flat or falling markets and without
risking more than your initial investment.
They are listed on the London Stock
Exchange and trade through a stockbroker
account in the same way as trading shares.
This means that live prices are displayed
throughout the trading day and you can buy
or sell at any point during the investment
term.
There are three main types to consider
ranging from simple fixed risk, fixed return
directional trading with Super10s, to geared
products such as Covered Warrants or
Turbos, which allow you to amplify the eco-
nomic effect of a rising or falling asset price.
Each product has a strictly fixed risk profile.
Your capital is completely at risk, but you will
never lose more than you invest.
Interestingly, all three product types can be
traded within the umbrella of self-invested
personal pensions (Sipp), although not a
shares Isa. These products are used extensive-
ly across the world with over 380bn traded
on the global stock exchanges in 2011.
TURBOS
Turbos are geared trading products,
which amplify the economic effect of a rise
or fall in the price of an underlying index
or single stock. Gearing of 10 for example,
means that a 1 per cent movement in the
underlying asset will result in approximate-
ly a 10 per cent change in the value of the
Turbo. There are two types of Turbo: Long
turbos for rising markets and Short turbos
for falling markets. At expiry, typically after
one to three months, a turbo will generate
a payout based on how far above (long
turbo), or below (short turbo) the underly-
ing asset is in relation to a pre-defined
strike price. Turbos have a built-in guaran-
teed knock-out level, which causes the
turbo to expire immediately and limits
traders downside risk to the initial invest-
ment.
COVERED WARRANTS
Covered Warrants are similar to
options allowing traders to benefit
from falling, as well as rising mar-
kets. They too are geared instru-
ments and returns amplify the
movements of the underlying
asset although traders dont
actually take property of the
underlying, so are reliant on
the solvency of the provider.
Like Turbos, at expiry, Covered
Warrants generate a payout
depending on how far above (call)
or below (put) the Strike
Price the Underlying
asset is. A key differ-
ence between covered warrants
and Turbos is that Covered
Warrants do not have a knock-out
level. This makes them suitable for
longer trades as you can ride out a
short-term move against you as long
as there is time until expiry. If the
market is against you at this time,
your covered warrant expires
worthless and your investment
is lost, but nothing more.
SUPER 10S
S u p e r 10 s a r e
de s i gne d t o
provide a
simple way of taking a view on either gold
or the FTSE 100 over a three-to six month
period. As such, a Super10 will generate a
fixed payout of 10 per unit at expiry, just
as long as your chosen Underlying Asset has
never touched a pre-defined Barrier Level.
Capital is fully at risk but you cannot lose
more than you invest. With Super10s you
need to decide whether you expect the
underlying to stay high, stay low or stay
within a range.
Alex Houpert is head of sales in listed products
at Socit Gnrale. Covered Warrants, Turbos
and Super10s are issued by Socit Gnrale
Acceptance. In the unlikely event that Socit
Gnrale Acceptance could not make payments
due, you may lose all or part of your investment.
These products are not eligible for compensation
from the Financial Services Compensation Scheme
or any other compensation scheme.
Houpert will be speaking on our Listed Products
Masterclass on 24 May.
Leverage can help
G
E
T
T
Y
S
AUDI law prevents women
from revealing their body in
public. This prohibition is
intended to protect Saudis
from the lustful impulses
that the Saudi authorities believe
would overwhelm men if they saw a
womans forearm or ankle.
Fornication must not be
encouraged.
Few people in Britain believe that
fornication is something its
voluntary participants need to be
protected from. But many worry
about other voluntary activities. For
example, some believe that no one
should smoke. And they seek to
protect us by preventing us from
seeing what they believe will rouse
smoky desires.
I
N THE past two years, Ive spent
most of my time researching
what I consider to be the most
exciting area for investment in
the next decade life sciences,
particularly novel drugs.
The reason all investors should be
excited about what might loosely be
called biopharma has a lot to do
with advances in computing power.
Most of us see technological
progress in the form of smart
phones, hi-res TVs and iPads, but
beneath the surface a lot more is
happening.
In particular, the implications of
this for drug development and
human life extension are vast. The
sequencing of the human genome,
and the earlier discovery of the
shape and purpose of DNA, has
unveiled a road map for scientists.
That map will now be used, in
conjunction with super-powerful
computers, to design personalised
medicines which will overcome
most known diseases within the
average persons lifetime.
By designing delivery systems and
CITYJET.COM
EXCLUSIVE SERVICEDIRECT FROMLONDONCITY AIRPORT. FAREIS ONEWAY ECONOMY & INCLUDESTAXES & CHARGES. SUBJECT TOAVAILABILITY & TERMS& CONDI TIONS.
Paris
FROM 83
cityam.com/forum
A lot of drugs are
being developed by
smaller, innovative
firms, not Big Pharma
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

26
WEDNESDAY 16 MAY 2012
JIM MELLON
Radical drug development makes
life sciences a healthy investment
specific compounds which target the
mutations that cause disease in a
very accurate way, almost all cancers
will be curable, if not cured, within
ten years. Other disease areas to be
be addressed will include obesity,
diabetes, pulmonary disease, and
neurodegenerative illnesses like
Alzheimers, osteoarthritis and
rheumatoid arthritis.
The old model of small molecule
discovery, where thousands of
compounds were tested on specific
diseases to see if the target
compound locked on to the
cellular receptor, is being
supplanted. This is because so-called
biologic drugs (made from living
processes such as fermentation or
recombinant DNA) are becoming
more important. Companies are also
more adept at shaping drug trials to
lessen time to market and improve
failure rates, by using genetic testing
to see which patients will respond to
which type of compound.
A lot of these drugs are being
developed by smaller, more
innovative companies, rather than
the so-called Big Pharma, which
dominated the landscape in the
1980s and 1990s. Indeed, because
many Big Pharma companies have
faced a patent cliff (where a patent
expires on a blockbuster drug), they
have turned to partnering with
smaller companies, or acquiring
them outright.
This year, there have been many
examples of large companies
bidding for smaller ones (Inhibitex,
Ardea, Illumina, Amylin are just
some recent examples of companies
being subject to $1bn or more bids).
But the patent cliff has been
exaggerated for quite a few Big
Pharma companies, and several
remain formidable cash-generating
machines.
There is no specific model for the
pharma industry, but there is no
doubt that the marketing clout of
Big Pharma remains strong, and
indeed, in the emerging markets,
which have very small drug sales per
capita (e.g. $10-20 in China,
compared to $800 in the US), they
have unique advantages. In these
markets, Big Pharma firms have a
strong reputation for quality and
integrity, which leads to consumers
trusting them over local firms.
Emerging market growth is a
reason why I recommend some Big
Pharma names as investments. They
have the same characteristics as
cigarette companies, as emerging
markets represent their greatest
opportunity.
Any investor looking to invest in
this booming field should have
about 60 per cent of his or her
portfolio in big names. Roche, GSK
and Pfizer are among the best.
In smaller companies, I like
Synergy, with a Phase 3 (late stage)
drug in development for gastro
intestinal disease, Arrowhead, for so-
called short interfering RNA (cell
manipulation), Plethora, a UK
company involved in sexual health,
and Summit, another UK company
involved in a rare but serious orphan
disease, Duchenne's muscular
dystrophy.
These shares are all listed and I
have holdings in all of them.
Jim Mellon is an entrepreneur and
former fund manager. He is chairman and
co-founder of Regent Pacific Group and
director of Charlemagne Capital.
Cracking the Code: Understand and
Profit from the Biotech Revolution That
Will Transform Our Lives and Generate
Fortunes by Jim Mellon and Al Chalabi is
available now (Wiley, 16.99)
Cigarette advertising has been
banned since 1997. Now the
government plans to ban branded
cigarette packets. It is consulting on
a plain packaging policy, by
which all producers packets would
look the same. The only words and
images allowed on cigarette packets
will be health warnings and photos
of cancerous throats, gangrenous
feet and so on.
Most who promote this
prohibition consider themselves
politically progressive. They would
object to the Saudi law that
requires women to cover themselves
in public. Yet they differ from their
Saudi counterparts only in what
they believe to be bad for us. On the
point of political principle, they are
in perfect agreement. They think
the authorities should dictate what
we can show and see so as to
prevent us from doing things they
believe harm us.
But perhaps this principle is fine,
provided those who dictate what we
see are wise. Perhaps the guardians
of British welfare have acquired a
degree of enlightenment that
makes this power safe in their
hands. Whereas the Saudi
authorities are wrong fornication
is harmless and no uncontrollable
passions are roused by the sight of
an arm our British guardians are
right: smoking really is bad for you
and branding really does cause it.
Alas, no. Smoking and sex both
have costs. Cigarettes cost about 40p
each and can cause diseases. Sex
also imperils your wallet and your
health. Despite these costs, many
people find the activities
worthwhile, because they also have
benefits. Some people enjoy
smoking and many enjoy sex. If the
upside of smoking or sex is worth
more to someone than their costs,
then he benefits from them. Since
the authorities do not know how
much upside people experience
from an activity be it smoking,
fornicating or boxing they cannot
know if it is a net harm to them.
Those self-appointed carers for
the British people, who would
protect us by dictating what we may
see, really are no better than the
religious police of Saudi Arabia.
They conflate what is good for
other people with how those other
people would live if they shared the
carers preferences. People
possessed of such moral arrogance
find it easy to believe they are
helping us by depriving us of
liberties.
Jamie Whyte is a senior fellow of the
Cobden Centre.
AGAINST
THE GRAIN
JAMIE WHYTE
Why personal choice in smoking or sex is the only measure that matters
Pau
FROM 73
Deauville
FROM 83
27
Premier play things
[Re: Do we need rules to stop football
teams buying success?, yesterday]
I am a Chelsea boy, so its no surprise that
my answer is no. If a billionaire decides he
wants to buy a football club, let him. If that
means that the club gains an advantage,
tough. Man U has been buying the title for
years, smashing records for acquisitions.
Before Roman Abramovich came along, the
only real challenger to Man U's dominance
was Arsenal and now we can add Man City
to the mix. These billionaires are making the
Premier League more exciting as it is now
not a foregone conclusion that any
particular team will win the League. Its
because of all these billionaires that Sunday
was such a fantastic end.
IkeNwobodo
Tech trust
[Re: A Facebook bank is far more likely
than you imagine, Monday]
It's likely that the tech giants will move into
consumer financial services. It's a logical
progression. What will be most interesting,
however, is how the former actions of these
companies affect their customers decision
whether to use their banking facilities.
Facebooks mishandling of its privacy
policies is a perfect case in point. Compare
that with Apple's relationship with its
customers, or the customer-centric ethos of
Amazon, and it's more likely that the latter
two will be more trusted providers than
Facebook, at least first time round. But then,
Facebook is used to announcing one thing
and then changing policies later.
Leslie L Kossoff
S
OME form of Eurozone
break-up seems more and
more likely. Austerity cant
work without growth, of
which there is no prospect
for the Eurozones peripheral
economies. With recessions set to
deepen, fiscal targets will become
even more difficult to achieve. It is
now close to a consensus view that
political deadlock in Greece will
mean that it fails to meet the
conditions for future instalments
of its bail-out, and will be forced
out of the euro.
A Greek exit would entail the
reintroduction of the drachma, a
sharp devaluation and even bigger
defaults by its government. Greece
would redenominate all domestic
prices, wages and contracts and
would likely declare a bank holiday
to avoid a bank run. Then, the
drachma would depreciate sharply,
perhaps by 50 per cent or more.
The government would probably
insist that its international debts
were redenominated in drachmas.
Given the relative weakness of the
currency, this would amount to a
default by another name. But as it
would now receive tax revenues in
drachmas, debts denominated in
euros would just not be affordable.
The private sector would probably
be legally unable to redenominate
its debts. But it couldnt possibly
service them if they were owed in
euros and hence mass defaults and
bankruptcies could be expected.
The direct effects may not be
catastrophic for the Eurozone. But
the pivotal issue remains that of
contagion. If a Greek exit is seen as
the first step in the unravelling of
the currency union, the economic
and financial consequences would
be extremely severe. Accordingly,
everything hangs on what actions
the policymakers are willing and
TOP TWEETS
The euro was always a flawed concept. Its
almost funny the extent to which vested
interests managed to persuade otherwise.
@martincampbell
Better a new election in Greece than a
technocratic dictatorship.
@Nigel_Farage
Minimum alcohol pricing is a bad idea. The
vast majority of drinkers are responsible and
theyll be the ones to suffer.
@AtavanHalen_
To our regulators: There is no real learning
without mistakes. There is no progress
without risk.
@TheBigFish_UK
Is JP Morgans recent $2bn trading loss a
reason to strengthen banking regulations?
YES
The $2bn (1.24bn) trading loss at JP Morgan is bad news for its
shareholders, bad news for its employees and bad news for its
senior executives. But, so far, US taxpayers have not lost a cent. So
why does it advance the case for tougher financial regulation?
Because if this can happen to JP Morgan, which was regarded as
one of the better-run banks, it can happen to a weaker bank that
might need a government bail-out in similar circumstances. If banks
want to engage in speculative trading of little or no social worth,
regulation is needed to ensure that taxpayers will not have to bail
them out. Banks that accept retail deposits should either face
severe restrictions on their proprietary trading activities, or should
be forced to ring-fence retail deposits so that they are immune from
trading losses.
Tony Dolphin is senior economist at the Institute for Public Policy
Research.
Tony Dolphin
NO
Juliet Samuel
From the reaction to JP Morgans $2bn trading screw-up, as its
chief executive Jamie Dimon called it, you might think that the USs
biggest bank had just cheated millions of grannies out of their lifes
savings. Instead, after tax, it has lost $800m, equivalent to just over
four per cent of last years profits. Even if, as expected, the loss
increases, it is still very, very far from an existential threat. As others
have pointed out, there is no real difference between wicked prop
trading and any other kind of lending. Handing people hundreds of
thousands of dollars to buy houses is pretty speculative business, for
example. So is buying strange and complicated derivatives. Horses
for courses. There is only one change bank regulators need make
and it is already in progress: making sure that bust banks are not
bailed out, but wound up. All this loss shows is that banks that live
by their mistakes must also be allowed to die by them.
Juliet Samuel is chief reporter at City A.M.
RAPIDresponses
Wider contagion
remains greatest
risk of Greek exit
able to take to prevent that process.
It seems clear that the existing
firewalls arent enough. Current
Eurozone bail-out funds, and the
IMFs resources, amount to about
1 trillion. While this is enough to
meet Italy and Spains needs until
the end of 2014, it falls short of the
amount needed to backstop the
Spanish and Italian bond markets.
The threat of a complete collapse of
the euro could prompt policy-
makers to more decisive action to
keep Spain and Italy in. But there is
a growing risk of a bigger break-up.
Even assuming that the break-up
is limited to two or three countries,
consequences for the Eurozone will
be serious. At Capital Economics,
we see the regions GDP falling by
roughly 1 per cent this year and 2.5
per cent in 2013. Others in Europe
will suffer most, given trade and
financial linkages. The region is
the destination for roughly half of
the UKs exports, for example.
Yet there might be light at the
end of the tunnel. Once peripheral
economies have devalued, they will
stand a chance of achieving some
growth. Within a smaller, stronger
Eurozone, theres a greater chance
that Germany will rebalance away
from exports and towards
consumer spending. Both of these
factors could markedly improve
the prospects for what is now the
Eurozone and hence benefit the
global economy in the long run.
Jennifer McKeown is senior European
economist at Capital Economics.
WEDNESDAY 16 MAY 2012
JENNIFER MCKEOWN
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WEDNESDAY 16 MAY 2012
28
MARKETS
cityam.com
LON GD ONCE FIX AM..................................1559.00 -4.00
SILVERLDN FIX AM.........................................28.05 -0.33
MAPLE LEAF 1 OZ ............................................30.53 -0.13
LON PLATINUM AM.....................................1446.00 -5.00
LON PALLADIUM AM.....................................598.00 7.00
ALUMINIUM CASH.......................................1981.00 -10.50
COPPER CASH.............................................7979.00 -100.50
LEAD CASH ................................................2026.00 -26.50
NICKEL CASH.............................................16975.00 -45.00
TIN CASH.................................................20250.00 0.00
ZINC CASH...................................................1919.50 -15.50
BRENT SPOT INDEX.........................................111.02 -1.16
SOYA ...........................................................1387.00 -17.00
COCOA.........................................................2321.00 -51.00
COFFEE ..........................................................177.40 0.85
KRUG...........................................................1617.00 -8.10
WHEAT .........................................................1171.63 -0.63
AIR LIQUIDE.......................................................93.17 -0.66 102.30 80.90
ALLIANZ............................................................76.59 -0.56 101.05 56.16
ANHEUS-BUSCHINBEV.....................................55.21 -0.26 57.51 33.85
ARCELORMITTAL ................................................11.90 -0.17 24.77 10.47
AXA....................................................................9.30 -0.21 15.94 7.88
BANCO SANTANDER...........................................4.60 -0.12 7.65 4.49
BASF SE.............................................................57.29 -0.40 69.80 42.19
BAYER................................................................51.18 -0.33 59.01 35.36
BBVA..................................................................4.92 -0.12 8.06 4.82
BMW.................................................................66.17 -0.27 73.95 43.49
BNP PARIBAS...................................................26.84 -0.78 54.98 22.72
CARREFOUR.......................................................13.81 -0.19 27.35 13.73
CRH PLC ............................................................13.90 -0.01 16.93 10.28
DAIMLER............................................................37.93 -0.59 53.95 29.02
DANONE ...........................................................52.88 0.64 54.96 41.92
DEUTSCHE BANK ..............................................29.38 -0.51 43.35 20.79
DEUTSCHE BOERSE...........................................45.20 0.13 57.68 35.65
DEUTSCHE TELEKOM...........................................8.84 0.02 10.94 7.88
E.ON..................................................................15.30 -0.22 21.03 12.50
ENEL...................................................................2.36 -0.07 4.82 2.34
ENI .....................................................................16.18 -0.28 18.72 11.83
FRANCE TELECOM..............................................10.02 -0.13 15.96 9.86
GDF SUEZ..........................................................16.29 -0.37 26.60 16.16
GENERALI ASS. ...................................................9.03 -0.24 15.96 8.95
IBERDROLA.........................................................3.33 -0.08 5.88 3.29
INDITEX............................................................68.94 1.47 74.73 52.20
ING GROEP CVA...................................................4.81 -0.10 8.87 4.21
INTESA SANPAOLO .............................................0.98 -0.06 2.01 0.85
KON.PHILIPS ELECTR .........................................14.67 0.07 20.65 12.01
L'OREAL ............................................................92.55 1.52 94.80 68.83
LVMH...............................................................122.35 1.30 136.80 94.16
MUNICHRE .....................................................102.90 -0.95 118.35 77.80
NOKIA.................................................................2.27 -0.06 6.15 2.26
REPSOL YPF.......................................................13.62 -0.19 24.35 12.98
RWE.................................................................30.69 -0.49 43.33 21.15
SAINT-GOBAIN.................................................29.64 -0.57 46.44 26.07
SANOFI..............................................................54.51 -0.36 59.56 42.85
SAP...................................................................48.12 -0.69 54.85 32.88
SCHNEIDER ELECTRIC........................................42.22 -0.46 58.85 35.00
SIEMENS...........................................................66.55 -0.55 96.19 62.13
SOCIETE GENERALE...........................................15.80 -0.70 43.06 14.32
TELECOM ITALIA..................................................0.78 -0.02 1.00 0.70
TELEFONICA ......................................................10.68 -0.21 17.09 10.57
TOTAL................................................................34.37 -0.11 42.97 29.40
UNIBAIL-RODAMCO SE.....................................132.45 -1.35 162.95 123.30
UNICREDIT..........................................................2.53 -0.15 11.24 2.20
UNILEVER CVA .................................................26.00 0.07 27.16 20.96
VINCI.................................................................33.37 -0.56 44.98 28.46
VIVENDI ............................................................12.68 0.25 19.14 12.02
VOLKSWAGEN VORZ ........................................133.75 -1.10 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5437.62 -27.90 -0.51
FTSE 250 INDEX. . . . . . . . . . . . . . . 10722.49 -91.11 -0.84
FTSE UK ALL SHARE . . . . . . . . . . . . 2826.01 -15.62 -0.55
FTSE AIM ALL SH. . . . . . . . . . . . . . . . . 717.31 -6.80 -0.94
DOWJONES INDUS 30 . . . . . . . . . 12632.00 -63.35 -0.50
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1330.66 -7.69 -0.57
NASDAQ COMPOSITE. . . . . . . . . . . . 2893.76 -8.82 -0.30
FTSEUROFIRST 300. . . . . . . . . . . . . . 997.70 -6.50 -0.65
NIKKEI 225 . . . . . . . . . . . . . . . . . . . 8900.74 -73.10 -0.81
DAX 30 PERFORMANCE . . . . . . . . . 6401.06 -50.91 -0.79
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3039.27 -18.72 -0.61
SHANGHAI SE INDEX. . . . . . . . . . . . 2374.84 -5.88 -0.25
HANG SENG. . . . . . . . . . . . . . . . . . 19894.31 159.27 0.81
S&P/ASX 20 INDEX . . . . . . . . . . . . . 2570.50 -14.90 -0.58
ASX ALL ORDINARIES . . . . . . . . . . . 4316.30 -35.60 -0.82
BOVESPA SAO PAOLO . . . . . . . . . . 56237.97 -1301.64 -2.26
ISEQ OVERALL INDEX . . . . . . . . . . . 3084.74 -3.57 -0.12
STRAITS TIMES. . . . . . . . . . . . . . . . . 2912.39 -19.59 -0.67
IGBM . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00
SWISS MARKET INDEX. . . . . . . . . . . 5865.16 -10.50 -0.18
Price Chg %chg
3M....................................................................85.78 -0.05 98.19 68.63
ABBOTT LABS....................................................61.89 0.21 63.20 46.29
ALCOA.................................................................8.71 -0.21 17.29 8.45
ALTRIA GROUP..................................................31.75 0.06 32.62 23.20
AMAZON.COM.................................................224.39 1.46 246.71 166.97
AMERICAN EXPRESS.........................................57.94 -0.48 61.42 41.30
APPLE..............................................................553.17 -5.05 644.00 310.50
AT&T .................................................................33.35 -0.18 33.92 27.29
BANK OF AMERICA.............................................7.30 -0.05 12.21 4.92
BOEING CO........................................................72.58 -0.54 80.09 56.01
BRISTOL MYERS SQUI .......................................32.98 0.07 35.44 20.05
CATERPILLAR ...................................................92.68 -0.92 116.95 67.54
CHEVRON.......................................................100.90 -1.04 112.28 86.68
CISCO SYSTEMS.................................................16.54 -0.17 21.30 13.30
CITIGROUP........................................................27.79 -0.35 43.06 21.40
COCA-COLA.......................................................76.57 -0.30 77.82 63.34
COMCAST CLASS A............................................28.85 -0.04 30.88 19.19
CONOCOPHILLIPS..............................................52.53 -0.40 80.13 52.13
CVS/CAREMARK ...............................................45.32 0.20 46.22 31.30
DU PONT(EI) DE NMR........................................50.15 -0.69 57.50 37.10
EXXON MOBIL....................................................81.79 -0.33 87.94 63.47
GENERAL ELECTRIC...........................................18.40 -0.20 21.00 14.02
GOOGLE A .........................................................611.11 7.11 670.25 473.02
HEWLETT PACKARD .........................................22.40 -0.57 40.86 19.92
HOME DEPOT....................................................48.67 -1.21 52.88 28.13
IBM.................................................................199.04 -0.40 210.69 157.13
INTEL CORP......................................................26.88 -0.14 29.27 19.16
J.P.MORGAN CHASE..........................................36.24 0.45 46.49 27.85
JOHNSON & JOHNSON......................................63.61 -0.32 68.05 55.76
KRAFT FOODS A ...............................................38.82 -0.22 39.99 24.30
MC DONALD'S CORP ..........................................91.01 0.13 102.22 80.00
MERCK AND CO. NEW........................................37.74 -0.49 39.50 29.47
MICROSOFT.......................................................30.21 -0.47 32.95 23.65
OCCID. PETROLEUM..........................................79.90 -1.76 109.08 66.36
ORACLE CORP...................................................27.06 0.10 35.92 24.72
PEPSICO............................................................67.85 0.70 71.89 58.50
PFIZER .............................................................22.30 -0.29 23.30 16.63
PHILIP MORRIS INTL .........................................84.72 -0.67 91.05 60.45
PROCTER AND GAMBLE....................................63.72 0.14 67.95 56.57
QUALCOMM INC ................................................61.44 -0.02 68.87 45.98
SCHLUMBERGER...............................................65.52 -1.73 95.53 54.79
TRAVELERS CIES................................................64.15 -0.33 65.27 45.97
UNITED TECHNOLOGIE.......................................76.17 0.22 91.83 66.87
UNITEDHEALTH GROUP....................................54.94 -0.22 59.71 41.27
US BANCORP DELAWRE....................................31.30 -0.26 32.98 20.10
VERIZON COMMS ..............................................41.05 0.16 41.43 32.28
VISA CL A .........................................................116.61 -0.11 125.35 73.11
WAL-MART STORES..........................................59.35 0.28 62.63 48.31
WALT DISNEY CO ..............................................45.01 -0.16 45.80 28.19
WELLS FARGO & CO..........................................32.24 -0.17 34.59 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................................0.253 0.00
LIBOR Euro - 12 months................................1.259 0.00
LIBOR USD - overnight..................................0.151 0.00
LIBOR USD - 12 months.................................1.061 0.01
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate.............................................1.500 0.00
Finance house base rate .............................1.500 0.00
US Fed funds ...............................................0.250 0.00
US long bond yield .....................................2.940 -0.01
European repo rate ......................................0.133 0.00
Euro Euribor .................................................0.317 0.00
The vix index ...............................................21.00 -0.87
The baltic dry index....................................1132.0 -6.00
Markit iBoxx................................................245.51 -0.71
Markit iTraxx ...............................................169.14 11.48
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .273.5 -1.1 340.8 248.1
Chemring Group . . . . . .326.1 -5.6 677.0 316.9
Cobham . . . . . . . . . . . . .218.8 2.4 239.5 165.9
Meggitt . . . . . . . . . . . . .390.6 1.9 413.5 304.9
QinetiQ Group . . . . . . . .147.0 -0.3 159.3 101.5
Rolls-Royce Holdi . . . . .829.5 0.5 859.0 557.5
Senior . . . . . . . . . . . . . .202.1 -1.0 213.0 135.6
Ultra Electronics . . . . .1632.0 -4.0 1780.0 1305.0
GKN . . . . . . . . . . . . . . . .190.2 0.2 245.0 157.0
Barclays . . . . . . . . . . . . .186.1 -3.7 277.5 138.9
HSBC Holdings . . . . . . . .547.7 1.9 642.7 463.5
Lloyds Banking Gr . . . . .28.9 -0.5 54.6 21.8
Royal Bank of Sco . . . . . .21.3 -0.5 42.6 17.3
Standard Chartere . . . .1354.5 -13.0 1672.0 1169.5
AG Barr . . . . . . . . . . . . .1122.0 -5.0 1395.0 1031.0
Britvic . . . . . . . . . . . . . . .358.1 -2.9 444.0 289.9
Diageo . . . . . . . . . . . . .1553.0 8.0 1614.5 1112.0
SABMiller . . . . . . . . . .2490.0 -6.5 2660.0 1979.0
AZ Electronic Mat . . . . .292.5 -4.0 338.1 206.1
Croda Internation . . . .2119.0 -6.0 2282.0 1597.0
Elementis . . . . . . . . . . .199.0 2.1 208.1 107.5
Johnson Matthey . . . .2152.0 -29.0 2408.0 1523.0
Victrex . . . . . . . . . . . . .1320.0 -22.0 1590.0 1025.0
Yule Catto & Co . . . . . . .214.4 -5.6 253.0 148.0
/$ 1.2770 0.0086
/ 0.7971 0.0009
/ 102.35 0.2240
/ 1.2544 0.0160
/$ 1.6018 0.0057
/ 128.38 0.1872
FTSE 100
5437.62
27.90
FTSE 250
10722.49
91.11
FTSE ALL SHARE
2826.01
15.62
DOW
12632.00
63.35
NASDAQ
2893.76
8.82
S&P 500
1330.66
7.69
Brown (N.) Group . . . . .236.5 -0.4 293.7 222.4
Carpetright . . . . . . . . . .622.5 7.5 741.0 375.0
Debenhams . . . . . . . . . .76.5 -0.9 85.5 51.2
Dignity . . . . . . . . . . . . .855.0 -4.5 866.0 727.0
Dixons Retail . . . . . . . . .14.8 -1.2 19.9 9.4
DunelmGroup . . . . . . .522.0 2.5 533.0 389.0
Halfords Group . . . . . . .282.5 -2.9 405.9 268.6
Home Retail Group . . . . .81.3 2.8 224.8 72.5
Inchcape . . . . . . . . . . . .340.1 -4.5 425.4 268.1
JD Sports Fashion . . . . .791.5 9.0 1030.0 570.0
Kesa Electricals . . . . . . . .56.0 0.0 151.4 52.1
Kingsher . . . . . . . . . . .285.1 2.0 313.8 217.0
Marks & Spencer G . . . .352.9 1.6 399.9 301.8
Next . . . . . . . . . . . . . .2985.0 0.0 3060.0 2153.0
Sports Direct Int . . . . . .302.5 -0.1 315.6 190.0
WHSmith . . . . . . . . . . .519.5 -0.5 559.0 451.6
Smith & Nephew . . . . .594.5 -2.5 694.0 521.0
Synergy Health . . . . . .809.0 2.0 981.0 793.5
Barratt Developme . . . . .118.1 -5.9 151.5 67.5
Bellway . . . . . . . . . . . .696.0 -27.0 859.5 540.5
Berkeley Group Ho . . .1205.0 -30.0 1414.0 1025.0
Bovis Homes Group . . .443.5 -11.5 518.5 326.5
Persimmon . . . . . . . . .548.0 -26.5 706.5 374.0
Balfour Beatty . . . . . . .258.5 -1.5 328.1 214.6
CRH . . . . . . . . . . . . . . .1106.0 -3.0 1585.5 1053.0
Galliford Try . . . . . . . . . .616.5 -3.5 653.0 383.8
Kier Group . . . . . . . . . .1161.0 -10.0 1489.0 1095.0
Drax Group . . . . . . . . . .571.0 -3.5 581.5 444.5
SSE . . . . . . . . . . . . . . . .1325.0 -7.0 1423.0 1193.0
Domino Printing S . . . .560.5 -10.5 701.5 434.3
Halma . . . . . . . . . . . . . .389.9 -0.3 429.6 306.3
Laird . . . . . . . . . . . . . . . .187.2 3.1 222.0 128.5
Morgan Crucible C . . . . .272.8 -7.4 360.0 224.0
Oxford Instrument . . . .1151.0 6.0 1285.0 714.0
Renishaw . . . . . . . . . . .1467.0 126.0 1886.0 800.0
Spectris . . . . . . . . . . . .1755.0 0.0 1902.0 1039.0
Aberforth Smaller . . . .607.5 -11.0 714.0 494.0
Alliance Trust . . . . . . . .343.0 -1.4 392.7 310.2
Bankers Inv Trust . . . . .402.1 -2.3 433.8 346.5
BH Global Ltd. GB . . . . .1175.0 -10.0 1212.0 1085.0
BH Global Ltd. US . . . . . . .11.8 -0.1 12.2 10.6
BH Macro Ltd. EUR . . . . . .19.8 -0.0 20.2 16.6
BH Macro Ltd. GBP . . .2060.0 4.0 2078.0 1704.0
BH Macro Ltd. USD . . . . . .19.8 0.1 20.2 16.6
BlackRock World M . . . .591.0 -3.0 782.0 574.5
BlueCrest AllBlue . . . . . .163.3 0.5 175.5 160.5
British Assets Tr . . . . . . .119.1 0.4 138.0 109.0
British Empire Se . . . . .402.8 -3.4 533.0 399.3
Caledonia Investm . . .1340.0 -16.0 1780.0 1337.0
City of London In . . . . .284.8 1.3 306.9 257.0
Dexion Absolute L . . . . .136.3 -0.6 148.4 130.0
Edinburgh Dragon . . . .230.9 1.7 253.1 201.4
Edinburgh Inv Tru . . . .476.0 -0.6 504.0 422.5
Electra Private E . . . . .1686.0 -9.0 1745.0 1287.0
Fidelity China Sp . . . . . . .76.8 1.2 108.0 70.0
Fidelity European . . . .1018.0 -3.0 1280.0 912.0
Foreign and Colon . . . .290.4 -1.6 327.9 261.5
Herald Inv Trust . . . . . .486.9 -6.6 545.5 419.0
HICL Infrastructu . . . . . .120.4 -0.1 123.6 112.7
John Laing Infras . . . . .106.7 -0.4 110.6 103.8
JPMorgan American . . .887.0 -0.5 965.5 721.5
JPMorgan Asian In . . . . .181.5 1.3 243.9 170.1
JPMorgan Emerging . . .514.5 0.0 610.5 480.1
JPMorgan Indian I . . . . .317.0 2.3 437.0 312.5
JPMorgan Russian . . . .484.0 -7.1 689.0 415.1
LawDebenture Cor . . .369.5 0.7 398.7 323.0
Mercantile Invest . . . . .969.0 -2.5 1101.0 823.0
Merchants Trust . . . . . .360.3 -0.5 431.8 341.5
Monks Inv Trust . . . . . . .321.5 -1.3 357.4 298.1
Murray Income Tru . . . .627.0 -0.5 674.0 568.0
Murray Internatio . . . . .921.0 -5.5 1012.0 818.5
NB Global Floatin . . . . . .99.8 -0.2 103.0 92.5
Perpetual Income . . . .260.1 -0.6 276.0 236.5
Personal Assets T . . .33540.0-150.0 35350.031750.0
Polar Capital Tec . . . . . .371.4 -0.8 404.0 299.5
RIT Capital Partn . . . . .1138.0 8.0 1360.0 1096.0
Scottish Inv Trus . . . . . .455.7 0.4 524.0 417.0
Scottish Mortgage . . . .659.0 -1.0 781.0 565.0
SVG Capital . . . . . . . . . .267.7 -1.3 295.5 165.1
Temple Bar Inv Tr . . . . .889.5 -4.5 970.0 791.0
Templeton Emergin . . .527.0 -1.0 678.5 497.0
TRProperty Inv T . . . . . .147.4 -1.6 206.1 136.2
TRProperty Inv T . . . . . .63.0 0.0 94.0 59.8
Witan Inv Trust . . . . . . .452.4 -2.6 533.0 401.5
3i Group . . . . . . . . . . . . .180.6 -2.7 294.1 166.9
3i Infrastructure . . . . . . .124.5 -0.4 128.0 115.6
Aberdeen Asset Ma . . . .247.3 1.0 283.8 167.8
Ashmore Group . . . . . .340.3 -8.5 420.0 306.4
Brewin Dolphin Ho . . . .158.0 0.0 177.0 113.7
Camellia . . . . . . . . . . .9500.0-100.0 10950.0 8800.0
Charles Taylor Co . . . . . .137.0 1.1 160.0 115.6
City of London Gr . . . . . .72.0 0.0 86.0 61.3
City of London In . . . . .363.3 0.3 440.0 304.3
Close Brothers Gr . . . . .691.5 -8.5 812.0 590.0
F&C Asset Managem. . . .67.0 0.9 81.7 56.1
Hargreaves Lansdo . . .493.8 -5.6 640.0 402.5
Helphire Group . . . . . . . . .1.4 -0.0 4.8 1.3
Henderson Group . . . . . .98.8 -3.3 163.7 95.1
Highway Capital . . . . . . .14.0 -0.5 21.0 8.0
ICAP . . . . . . . . . . . . . . . .335.3 -9.3 498.8 311.6
IG Group Holdings . . . .446.0 -1.8 502.5 393.6
Intermediate Capi . . . .238.0 -0.5 345.0 197.9
International Per . . . . .224.4 -8.9 388.8 148.5
International Pub . . . . .118.0 0.0 121.7 112.7
Investec . . . . . . . . . . . . .328.3 -8.6 522.0 318.4
IP Group . . . . . . . . . . . .140.0 0.0 151.0 36.0
Jupiter Fund Mana . . . .208.5 2.8 293.2 184.9
Liontrust Asset M . . . . .102.5 -3.5 125.0 57.9
LMS Capital . . . . . . . . . . .59.8 0.3 64.8 54.0
London Finance & . . . . .19.5 0.0 23.5 18.0
London Stock Exch . . . .997.5 -7.5 1093.0 756.5
Lonrho . . . . . . . . . . . . . . .9.8 0.1 19.8 8.9
Man Group . . . . . . . . . . .79.9 -3.2 259.6 79.3
Paragon Group Of . . . .163.5 -5.6 206.1 134.6
Provident Financi . . . .1160.0 -2.0 1204.0 915.0
Rathbone Brothers . . .1240.0 3.0 1351.0 977.0
Record . . . . . . . . . . . . . . .18.1 0.0 35.5 9.8
RSM Tenon Group . . . . . . .5.7 -0.2 31.5 5.6
Schroders . . . . . . . . . .1246.0 -33.0 1670.0 1183.0
Schroders (Non-Vo . . .1020.0 -19.0 1393.0 970.0
Tullett Prebon . . . . . . . .289.0 -4.9 386.4 262.3
Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
BT Group . . . . . . . . . . . .207.3 2.4 232.1 161.0
Cable & Wireless . . . . . .30.5 -0.2 48.9 30.1
Cable & Wireless . . . . . .34.0 -0.2 55.0 14.2
COLT Group SA . . . . . . . .107.7 -4.1 149.5 84.1
KCOM Group . . . . . . . . . .70.0 0.8 84.0 62.0
TalkTalk Telecom . . . . .132.0 0.0 150.0 118.9
TelecomPlus . . . . . . . . .703.0 5.0 802.0 475.0
Booker Group . . . . . . . . .75.3 -1.3 85.3 64.5
Greggs . . . . . . . . . . . . .496.0 9.7 558.0 445.0
Morrison (Wm) Sup . . . .277.1 -1.8 328.0 274.8
Ocado Group . . . . . . . . .116.6 -1.9 228.2 52.9
Sainsbury (J) . . . . . . . . .311.4 -2.5 356.3 263.5
Tesco . . . . . . . . . . . . . . .316.0 -2.8 419.5 310.5
Associated Britis . . . . .1220.0 7.0 1242.0 977.0
Cranswick . . . . . . . . . . .825.5 7.0 841.0 588.5
Dairy Crest Group . . . . .307.0 0.0 408.0 290.4
Devro . . . . . . . . . . . . . .299.9 4.9 332.2 232.0
Tate & Lyle . . . . . . . . . .688.5 -1.5 720.5 544.5
Unilever . . . . . . . . . . .2069.0 -4.0 2189.0 1892.0
Mondi . . . . . . . . . . . . . .509.0 -7.5 664.0 413.5
Centrica . . . . . . . . . . . . .308.5 -5.4 330.3 278.8
International Pow . . . . .419.2 -0.2 419.6 279.4
National Grid . . . . . . . .669.0 -4.0 682.5 569.0
Pennon Group . . . . . . .732.0 -11.0 751.0 623.5
Severn Trent . . . . . . . .1695.0 -9.0 1720.0 1375.0
United Utilities . . . . . . .632.5 -9.5 644.5 560.0
Cookson Group . . . . . . .638.5 -2.5 747.5 395.8
Rexam. . . . . . . . . . . . . .399.8 1.9 438.0 299.8
RPC Group . . . . . . . . . . .351.0 -4.2 393.2 300.5
Smith (DS) . . . . . . . . . . .145.9 -3.7 183.7 113.3
Smiths Group . . . . . . . .1041.0 15.0 1250.0 869.5
Price Chg High Low
Reckitt Benckiser . . . .3443.0 13.0 3660.0 3100.0
Redrow . . . . . . . . . . . . . .119.2 -1.7 126.0 90.2
Taylor Wimpey . . . . . . . .42.0 -2.7 52.8 28.7
Bodycote . . . . . . . . . . . .383.0 -7.0 437.1 225.6
Fenner . . . . . . . . . . . . .405.7 -5.1 483.7 280.0
IMI . . . . . . . . . . . . . . . . .881.0 -23.5 1119.0 636.5
Melrose . . . . . . . . . . . . .407.5 -2.3 441.6 268.0
Northgate . . . . . . . . . . .194.5 -5.1 333.9 190.0
Rotork . . . . . . . . . . . . .2030.0 -27.0 2260.0 1501.0
Spirax-Sarco Engi . . .2050.0-109.0 2334.0 1649.0
Weir Group . . . . . . . . . .1521.0 11.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .328.2 4.6 460.5 315.0
Ferrexpo . . . . . . . . . . . .231.2 -8.0 495.3 229.6
Talvivaara Mining . . . . . .151.3 -5.5 488.2 150.0
BBA Aviation . . . . . . . . .198.0 0.5 222.4 156.0
Stobart Group Ltd . . . . .122.0 -1.7 149.5 112.0
Admiral Group . . . . . . .1127.0 -5.0 1754.0 787.0
Amlin . . . . . . . . . . . . . . .313.0 -5.3 426.4 270.6
Beazley . . . . . . . . . . . . . .138.1 -5.7 151.8 109.6
Catlin Group Ltd. . . . . . .415.0 -1.0 449.0 337.0
Hiscox Ltd. . . . . . . . . . . .377.8 -1.7 424.7 340.5
ITV . . . . . . . . . . . . . . . . . .82.9 0.4 89.9 51.7
Johnston Press . . . . . . . . .6.1 0.1 7.9 4.1
MecomGroup . . . . . . . . .151.8 1.5 282.0 134.5
Moneysupermarket. . . .114.7 -1.5 135.9 93.4
Pearson . . . . . . . . . . . .1152.0 -7.0 1255.0 1038.0
PerformGroup . . . . . . .308.5 -1.5 317.2 150.0
Reed Elsevier . . . . . . . .500.5 -0.5 578.0 461.3
Rightmove . . . . . . . . .1479.0 -19.0 1600.0 1036.0
STV Group . . . . . . . . . . .108.0 0.5 152.0 76.3
Tarsus Group . . . . . . . . .156.3 1.3 165.0 119.5
Trinity Mirror . . . . . . . . . .33.8 2.0 54.3 30.3
UBM . . . . . . . . . . . . . . . .550.0 -4.0 641.5 416.0
UTVMedia . . . . . . . . . . .130.0 -3.9 159.5 92.5
Wilmington Group . . . . .96.5 -1.8 150.0 78.5
WPP . . . . . . . . . . . . . . .803.5 1.0 880.0 578.0
Yell Group . . . . . . . . . . . . .3.2 -0.2 11.0 3.2
African Barrick G . . . . . .328.2 -5.2 616.5 320.2
Anglo American . . . . .2085.5 -33.5 3181.0 2073.5
Anglo Pacic Gro . . . . . .278.1 -6.7 340.0 237.9
Antofagasta . . . . . . . .1003.0 -13.0 1491.0 900.5
Aquarius Platinum . . . . .93.8 -7.8 343.0 91.8
Avocet Mining . . . . . . . .143.5 -3.4 286.8 142.3
BHP Billiton . . . . . . . . .1766.0 -32.0 2521.5 1667.0
Bumi . . . . . . . . . . . . . . .419.0 -4.5 1158.0 418.8
Centamin (DI) . . . . . . . .64.0 -0.3 141.5 60.7
Jardine Lloyd Tho . . . . .690.0 -4.5 764.5 576.0
Lancashire Holdin . . . . .754.5 -6.5 825.0 620.0
RSA Insurance Gro . . . . .101.0 0.1 138.1 99.6
Aviva . . . . . . . . . . . . . . .282.4 -8.3 446.3 275.3
Legal & General G . . . . .109.4 -1.1 135.0 89.8
Old Mutual . . . . . . . . . .146.6 -1.3 188.1 112.1
Phoenix Group Hol . . .496.0 2.4 688.0 451.1
Prudential . . . . . . . . . . .710.0 -5.5 797.5 509.0
Resolution Ltd. . . . . . . .205.5 -6.1 316.1 204.7
St James's Place . . . . . .313.9 -3.4 376.0 294.0
Standard Life . . . . . . . .205.5 -2.9 250.7 172.0
4Imprint Group . . . . . .280.0 -9.0 312.5 200.0
Aegis Group . . . . . . . . .164.2 -1.4 187.4 115.7
Bloomsbury Publis . . . .108.5 0.4 133.5 91.3
British Sky Broad . . . . .692.0 -1.5 850.0 618.5
Centaur Media . . . . . . . .34.8 0.3 56.3 30.5
Chime Communicati . . .149.8 -5.8 298.5 143.0
Creston . . . . . . . . . . . . . .66.8 0.8 121.0 47.0
Daily Mail and Ge . . . . . .411.2 2.0 503.5 343.4
Euromoney Institu . . . .756.0 -5.5 828.0 522.5
Future . . . . . . . . . . . . . . . .11.0 -0.3 19.0 8.3
Haynes Publishing . . . .190.0 0.0 255.0 190.0
Huntsworth . . . . . . . . . .43.8 0.5 76.3 32.3
Informa . . . . . . . . . . . . .384.9 -7.1 451.0 313.9
ITE Group . . . . . . . . . . . .213.7 -0.9 248.6 157.7
Eurasian Natural . . . . . .481.3 -11.5 855.5 476.3
Fresnillo . . . . . . . . . . . .1380.0 -1.0 2150.0 1302.0
GemDiamonds Ltd. . . .226.7 -10.7 310.6 179.8
Glencore Internat . . . . .370.2 -1.8 531.1 348.0
Hochschild Mining . . . .419.0 -5.2 549.5 365.9
Kazakhmys . . . . . . . . . .707.0 -30.0 1405.0 701.5
Kenmare Resources . . . .44.0 -1.9 61.5 31.0
Lonmin . . . . . . . . . . . . .805.0 -49.0 1600.0 803.5
NewWorld Resourc . . .331.4 -23.3 1038.0 329.8
Petra Diamonds Lt . . . .133.0 -7.7 188.2 97.0
Petropavlovsk . . . . . . .390.5 -21.6 913.0 389.6
Polymetal Interna . . . .808.5 14.0 1175.0 767.5
Randgold Resource . .4596.0 -107.0 7565.0 4565.0
Rio Tinto . . . . . . . . . . .2953.5 -89.5 4595.0 2712.5
Vedanta Resources . . .1013.0 -40.0 2169.0 928.0
Xstrata . . . . . . . . . . . . .999.0 -14.0 1425.5 764.0
Inmarsat . . . . . . . . . . . .421.4 -14.4 618.0 389.3
Vodafone Group . . . . . .170.5 0.8 182.7 155.1
Genesis Emerging . . . .478.2 -1.8 543.5 424.0
Afren . . . . . . . . . . . . . . . .120.1 -0.7 171.0 73.6
BG Group . . . . . . . . . . .1274.5 -15.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .400.4 -3.5 504.6 363.2
Cairn Energy . . . . . . . . .297.7 -3.6 501.4 291.9
EnQuest . . . . . . . . . . . . .122.8 1.5 135.2 85.7
Essar Energy . . . . . . . . .125.3 0.4 455.9 101.6
Exillon Energy . . . . . . . .106.0 -2.8 455.0 105.0
Heritage Oil . . . . . . . . . .123.0 -5.4 262.1 122.2
Ophir Energy . . . . . . . . .515.0 7.0 586.0 184.5
Premier Oil . . . . . . . . . .329.3 -7.7 485.0 310.0
Royal Dutch Shell . . . .2001.5 -13.5 2402.0 1883.5
Royal Dutch Shell . . . .2075.5 -15.0 2489.0 1890.5
Ruspetro . . . . . . . . . . . .161.0 -3.3 230.0 125.0
Salamander Energy . . .168.2 -5.1 235.8 148.0
Soco Internationa . . . . .264.8 9.9 397.5 254.9
TullowOil . . . . . . . . . . .1391.0 -2.0 1601.0 945.5
Amec . . . . . . . . . . . . . .1001.0 -10.0 1187.0 740.5
Hunting . . . . . . . . . . . . .782.5 4.5 968.0 530.0
Kentz Corporation . . . . .397.6 4.6 508.0 375.0
Lamprell . . . . . . . . . . . .294.8 -2.8 395.2 220.7
Petrofac Ltd. . . . . . . . .1560.0 -3.0 1772.0 1108.0
Wood Group (John) . . .739.5 -1.0 798.0 469.9
Burberry Group . . . . . .1438.0 -7.0 1600.0 1092.0
PZ Cussons . . . . . . . . . .338.2 1.6 387.9 285.0
Supergroup . . . . . . . . .330.0 9.5 1165.0 307.0
AstraZeneca . . . . . . . . .2651.5 -8.5 3194.0 2543.5
BTG . . . . . . . . . . . . . . . . .373.1 2.8 387.7 236.8
Genus . . . . . . . . . . . . .1285.0 -19.0 1457.0 853.5
GlaxoSmithKline . . . . .1423.5 4.0 1497.0 1205.0
Hikma Pharmaceuti . . .612.5 -11.0 869.0 555.5
Shire Plc . . . . . . . . . . . .1993.0 -25.0 2300.0 1818.0
Capital & Countie . . . . .193.0 -2.5 203.7 158.1
Daejan Holdings . . . .3084.0 44.0 3300.0 2282.0
F&C Commercial Pr . . . .103.6 -0.5 107.9 92.6
Grainger . . . . . . . . . . . . .96.0 -1.5 133.2 77.3
London & Stamford . . .106.9 -1.8 140.0 103.9
Savills . . . . . . . . . . . . . .343.9 2.6 427.1 256.2
UK Commercial Pro . . . . .73.3 0.9 85.5 65.1
Big Yellow Group . . . . .293.0 -5.1 344.4 218.0
British Land Co . . . . . . .497.2 -2.8 629.5 444.0
Capital Shopping . . . . .309.8 -2.2 408.6 288.7
Derwent London . . . . .1776.0 5.0 1880.0 1400.0
Great Portland Es . . . . .370.0 -0.1 445.0 312.9
Hammerson . . . . . . . . .422.0 -1.5 490.9 345.2
Hansteen Holdings . . . . .70.5 -2.5 89.5 68.0
Land Securities G . . . . .734.5 -3.5 885.0 612.0
SEGRO . . . . . . . . . . . . . . .217.6 -0.3 326.1 195.0
Shaftesbury . . . . . . . . .522.0 1.5 539.0 441.2
Aveva Group . . . . . . . .1567.0 -16.0 1799.0 1298.0
Computacenter . . . . . . .387.9 0.4 490.0 324.7
Fidessa Group . . . . . . .1488.0 -8.0 2109.0 1444.0
Invensys . . . . . . . . . . . .204.0 -5.0 333.9 180.9
Logica . . . . . . . . . . . . . . .66.4 -3.4 143.6 59.0
Micro Focus Inter . . . . . .451.8 -4.2 476.7 242.9
Misys . . . . . . . . . . . . . . .348.9 0.0 420.2 214.9
Sage Group . . . . . . . . .260.0 -5.5 312.4 231.7
SDL . . . . . . . . . . . . . . . .699.0 -8.5 756.0 586.0
Telecity Group . . . . . . . .791.5 1.0 816.0 450.5
Aggreko . . . . . . . . . . . .2175.0 13.0 2316.0 1522.0
Ashtead Group . . . . . . .232.5 2.6 271.1 99.4
Atkins (WS) . . . . . . . . . .672.5 6.5 820.0 490.2
Babcock Internati . . . . .868.5 69.5 875.5 570.5
Berendsen . . . . . . . . . .470.5 -6.3 568.0 402.7
Bunzl . . . . . . . . . . . . . .1014.0 -1.0 1063.0 676.5
Cape . . . . . . . . . . . . . . .334.6 -7.4 591.5 295.0
Capita . . . . . . . . . . . . . .645.5 1.0 767.0 611.5
Carillion . . . . . . . . . . . . .279.5 -3.6 399.3 264.6
De La Rue . . . . . . . . . . .1017.0 -7.0 1024.0 730.0
Diploma . . . . . . . . . . . . .449.1 -4.9 460.5 284.0
Electrocomponents . . . .211.8 -0.9 294.9 182.2
Experian . . . . . . . . . . . .894.0 -27.0 998.0 665.0
Filtrona PLC . . . . . . . . . .463.2 -2.0 484.5 296.3
G4S . . . . . . . . . . . . . . . .275.2 8.4 292.1 219.9
Hays . . . . . . . . . . . . . . . . .76.1 -0.3 114.9 58.9
Homeserve . . . . . . . . . .239.2 -9.8 531.5 214.7
Howden Joinery Gr . . . .113.6 -3.0 130.8 93.1
Interserve . . . . . . . . . . .277.3 -2.7 341.3 270.1
Intertek Group . . . . . .2486.0 8.0 2605.0 1744.0
Michael Page Inte . . . . .357.7 -3.5 552.5 323.0
Mitie Group . . . . . . . . . .283.0 -3.0 296.7 208.0
PayPoint . . . . . . . . . . . .637.0 2.0 670.0 451.0
Premier Farnell . . . . . . .186.7 -2.3 301.0 144.5
Regus . . . . . . . . . . . . . . . .94.1 -2.1 117.5 64.0
Rentokil Initial . . . . . . . . .81.8 -1.3 98.7 58.2
RPS Group . . . . . . . . . . .213.7 -1.5 253.0 156.6
Serco Group . . . . . . . . . .527.0 -12.5 597.5 458.0
Shanks Group . . . . . . . . .85.0 -0.7 130.9 82.0
SIG . . . . . . . . . . . . . . . . . .94.6 -2.7 153.5 77.0
Travis Perkins . . . . . . . .950.5 -5.5 1125.0 715.0
Wolseley . . . . . . . . . . .2251.0 12.0 2558.0 1404.0
ARM Holdings . . . . . . . .487.3 -4.0 645.0 464.0
CSR . . . . . . . . . . . . . . . . .217.5 0.0 375.1 154.1
Imagination Techn . . . .580.5 -5.5 717.0 296.9
Spirent Communica . . .159.5 0.6 174.0 105.8
British American . . . . .3115.5 12.0 3248.5 2592.0
Imperial Tobacco . . . .2500.0 1.0 2591.0 1974.0
Betfair Group . . . . . . . .779.0 3.0 901.0 567.0
Bwin.party Digita . . . . .138.8 -1.4 174.0 100.6
Carnival . . . . . . . . . . . .2034.0 67.0 2603.0 1742.0
Compass Group . . . . . .624.5 -5.0 671.0 512.5
Domino's Pizza UK . . . .438.0 5.0 526.0 377.0
easyJet . . . . . . . . . . . . . .514.5 -4.0 534.0 302.5
FirstGroup . . . . . . . . . . .198.3 -7.2 370.2 190.0
Go-Ahead Group . . . . .1113.0 -10.0 1598.0 1094.0
Greene King . . . . . . . . .488.3 0.8 527.5 410.0
InterContinental . . . . .1477.0 6.0 1532.0 955.0
International Con . . . . .149.9 -9.5 258.7 132.0
Ladbrokes . . . . . . . . . . .165.9 -1.2 181.4 114.0
Marston's . . . . . . . . . . . .95.3 -2.0 110.6 84.6
Millennium& Copt . . . .484.6 5.4 526.5 371.2
Mitchells & Butle . . . . . .249.9 -3.4 336.4 215.6
National Express . . . . .201.9 -4.9 267.0 201.6
Rank Group . . . . . . . . . .122.1 -1.4 153.7 109.5
Restaurant Group . . . . .275.9 3.2 311.1 254.9
Spirit Pub Compan . . . . .55.3 -0.8 62.8 35.3
Stagecoach Group . . . .238.2 -2.4 287.4 220.0
TUI Travel . . . . . . . . . . . .173.1 -4.7 248.2 136.7
Wetherspoon (J.D. . . . .373.5 2.2 457.2 368.4
Whitbread . . . . . . . . . .1859.0 -28.0 2006.0 1409.0
WilliamHill . . . . . . . . . .265.8 -0.7 281.7 183.3
Abcam . . . . . . . . . . . . .380.0 1.5 460.0 320.0
Advanced Medical . . . . .70.8 0.8 95.0 64.8
Albemarle & Bond . . . .313.0 3.0 400.1 304.0
Amerisur Resource . . . . .22.3 -0.3 29.0 9.5
Andes Energia . . . . . . . .38.8 -0.3 82.8 17.5
Andor Technology . . . .540.0 18.0 685.0 471.8
Archipelago Resou . . . . .57.5 2.3 79.0 54.9
ASOS . . . . . . . . . . . . . .1593.0 29.0 2468.0 1142.0
Aurelian Oil & Ga . . . . . . .18.5 0.0 71.0 16.0
Avanti Communicat . . .309.3 -4.5 436.5 241.3
Blinkx . . . . . . . . . . . . . . .42.8 -2.0 158.0 41.3
Borders & Souther . . . . .76.0 -2.0 131.0 43.5
BowLeven . . . . . . . . . . . .68.3 -1.8 342.3 62.0
Brooks Macdonald . . .1340.0 0.0 1372.5 940.0
Cluf Gold . . . . . . . . . . . .67.8 -5.8 112.8 66.5
Cove Energy . . . . . . . . .228.0 4.5 242.0 61.0
Daisy Group . . . . . . . . . .92.0 -9.5 127.0 91.0
EMIS Group . . . . . . . . . .540.0 5.0 583.0 397.5
Faroe Petroleum . . . . . .163.5 -0.5 177.8 130.0
Gulfsands Petrole . . . . .113.0 -2.0 271.8 105.5
GWPharmaceutical . . . .83.5 -3.5 130.0 78.5
H&T Group . . . . . . . . . .289.0 -7.0 395.0 286.0
Hargreaves Servic . . . .1190.0 15.0 1264.0 855.0
Healthcare Locums . . . . . .3.2 -0.0 3.5 2.8
ImpellamGroup . . . . . .362.5 0.0 382.6 225.0
Iomart Group . . . . . . . . .129.3 -0.5 151.0 86.1
James Halstead . . . . . .530.0 1.5 536.9 410.3
London Mining . . . . . . .263.5 1.3 405.0 257.3
Lupus Capital . . . . . . . .129.0 -0.5 140.0 86.0
M. P. Evans Group . . . . .501.0 0.5 525.0 371.0
Majestic Wine . . . . . . . .425.0 -12.8 510.0 315.0
May Gurney Integr . . . .233.8 -1.0 302.0 230.0
Monitise . . . . . . . . . . . . .30.3 -0.8 40.0 25.5
Mulberry Group . . . . .2220.0 2.0 2472.0 1290.0
Nanoco Group . . . . . . . .60.8 -2.3 89.0 38.0
Nautical Petroleu . . . . .284.3 -8.8 379.0 223.5
Nichols . . . . . . . . . . . . . .701.5 0.3 732.0 505.0
Numis Corporation . . . . .91.0 0.0 119.6 72.0
Pan African Resou . . . . .15.0 -0.3 18.3 9.5
Patagonia Gold . . . . . . . .22.8 -1.8 70.0 22.8
Prezzo . . . . . . . . . . . . . . .69.0 -1.0 71.5 53.5
Rockhopper Explor . . .296.3 2.8 393.5 141.0
RWS Holdings . . . . . . .500.0 3.8 560.0 389.0
Secure Trust Bank . . . .1055.0 0.0 1077.5 755.0
Sirius Minerals . . . . . . . . .16.3 -0.5 32.0 6.4
Songbird Estates . . . . . .109.0 -0.8 160.3 103.0
Valiant Petroleum . . . . .510.5 4.5 628.5 400.0
Young & Co's Brew . . . .612.5 -6.5 712.0 580.0
Renishaw . . . . . . . . . . . . . . . . .1467.0 9.4
Babcock Internatio . . . . . . . . . .868.5 8.7
Soco International . . . . . . . . . . .264.8 3.9
Home Retail Group . . . . . . . . . . . .81.3 3.5
Carnival . . . . . . . . . . . . . . . . . .2034.0 3.4
G4S . . . . . . . . . . . . . . . . . . . . . . .275.2 3.2
Supergroup . . . . . . . . . . . . . . . .330.0 3.0
Greggs . . . . . . . . . . . . . . . . . . . .496.0 2.0
Polymetal Internat . . . . . . . . . .808.5 1.8
Laird . . . . . . . . . . . . . . . . . . . . . . .187.2 1.7
Aquarius Platinum . . . . . . . . . . .93.8 -7.6
Dixons Retail . . . . . . . . . . . . . . . .14.8 -7.2
New World Resource . . . . . . . . .331.4 -6.6
Taylor Wimpey . . . . . . . . . . . . . .42.0 -6.1
International Cons . . . . . . . . . . .149.9 -6.0
Lonmin . . . . . . . . . . . . . . . . . . . .805.0 -5.7
Petra Diamonds Ltd . . . . . . . . . .133.0 -5.5
Petropavlovsk . . . . . . . . . . . . . .390.5 -5.2
Spirax-Sarco Engin . . . . . . . . .2050.0 -5.1
Logica . . . . . . . . . . . . . . . . . . . . . .66.4 -4.8
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
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 5.250 12 . . . . . . .100.28 -0.03 104.7 100.2
Tsy 9.000 12 . . . . . . .101.94 0.00 109.9 100.8
Tsy 2.500 13 . . . . . .283.42 -0.03 287.7 282.8
Tsy 4.500 13 . . . . . . .103.32 -0.01 106.4 103.2
Tsy 8.000 13 . . . . . . .110.39 0.00 116.3 110.3
Tsy 5.000 14 . . . . . . .110.61 0.00 112.9 110.5
Tsy 8.000 15 . . . . . . .126.32 0.00 129.2 125.6
Tsy 4.750 15 . . . . . . .113.83 0.00 115.4 111.0
Tsy 4.000 16 . . . . . . .113.66 0.03 114.7 108.0
Tsy 2.500 16 . . . . . .346.02 0.05 346.3 325.5
Tsy 1.250 17 . . . . . . .116.54 0.08 117.1 110.0
Tsy 8.750 17 . . . . . . .139.88 -0.32 141.9 135.6
Tsy 12.000 17 . . . . . . .118.14 0.00 127.9 117.0
Tsy 5.000 18 . . . . . .122.06 0.01 122.5 113.5
Tsy 3.750 19 . . . . . . .116.18 -0.03 116.2 103.8
Tsy 4.500 19 . . . . . . .120.91 -0.01 120.9 109.6
Tsy 4.750 20 . . . . . .123.78 -0.06 123.9 111.1
Tsy 2.500 20 . . . . . .370.92 0.05 371.5 331.8
Tsy 8.000 21 . . . . . .152.98 -0.09 155.5 139.3
Tsy 1.875 22 . . . . . . .129.50 0.09 129.7 114.9
Tsy 4.000 22 . . . . . .118.83 -0.11 119.0 103.4
Tsy 2.500 24 . . . . . .336.58 0.13 337.0 289.4
Tsy 5.000 25 . . . . . .130.66 -0.03 130.8 111.5
Tsy 1.250 27 . . . . . . .125.51 0.07 127.0 107.6
Tsy 4.250 27 . . . . . . .121.79 -0.09 122.7 101.7
Tsy 6.000 28 . . . . . .146.43 -0.10 148.0 123.7
Tsy 4.125 30 . . . . . . .318.69 0.08 322.8 272.0
Tsy 4.750 30 . . . . . . .128.21 -0.13 130.5 107.3
Tsy 4.250 32 . . . . . .120.35 -0.16 123.1 100.3
Tsy 4.250 36 . . . . . . .119.85 -0.26 123.9 99.6
Tsy 4.750 38 . . . . . . .129.21 -0.33 134.2 107.9
Tsy 4.500 42 . . . . . .125.09 -0.40 130.8 104.1
% %
AUTOMOBILES & PARTS
AEROSPACE & DEFENCE
BANKS
BEVERAGES
CHEMICALS
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
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FINANCIAL SERVICES
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FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER &MULTIUTILITIES
GENERAL INDUSTRIALS
GENERAL RETAILERS
HEALTH CARE EQUIPMETN & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
NON LIFE INSURANCE
LIFE INSURANCE
MEDIA
MINING
MOBILE TELECOMS
NON EQUITY INVESTM. COMM.
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
REAL ESTATE INVEST. TRUSTS
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. &EQUIP.
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29
WORDS BY MARC SIDWELL
L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
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M
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For London 2012 a marketing firm
is both service provider and client
McCann Worldgroup
is the first Olympic
marketing sponsor.
Nick Sykes says why
Q
What was your brands
primary reason for being
involved with the Games?
A
The task of marketing the
London Olympic Games has
been described as the biggest
assignment in UK marketing
history. For a group of agencies to
collectively and collaboratively be
able to nail that is the most
extraordinary platform to show
what we do, frankly from soup to
nuts in the marketing context. Lots
of our competitors are very good at
advertising but might not do
branding, are very good at social
media but might not be able to do
other bits and bobs. What we want
to prove is that for massive, complex
assignments Worldgroup has the
capability in breadth of service and
depth of skill. This will give us great
awareness within UK plc of that.
As well as awareness, it is a retention
and recruitment tool. We work in a
creative industry, and to be able to
have a recruitment conversation and
say to somebody on 27 July 2012, your
work might be seen by up to 4bn peo-
ple is a huge positive in a hugely com-
petitive environment. The other thing
its been great for, more surprisingly to
me, is retention. Ive never seen people
so passionate about working on some-
thing for so long. On the teams that
have worked on the Olympics over the
last three and a half years, in the five
or six companies that weve got togeth-
er, no one whos left has been intense-
ly involved. And in this industry,
locking people in for three and a half
years is a long time.
The other reason is the family of
sponsors you join, which gives privi-
leged access to some of the biggest
brands on the planet. Some of those
were now working with, that we
werent working with beforehand.
Some of them, who we were working
with before, were now working with
on a whole broader range of things
72 DAYS TO GO
COUNTDOWN
TO THE LONDON
2012
OLYMPIC
GAMES
OLYMPICBUSINESS
WEDNESDAY 16 MAY 2012
cityam.com
since our Olympic relationship.
Q
How did you structure the
case for involvement to the
board?
A
It was about showing that the
benefits would outweigh the
cost. In our sector, no one had
ever done what we were
bidding for, being a sponsor and also
providing the full gamut as services
in kind. And agencies are not big
companies. So the sorts of sums are
big for us. But we saw a long-term
effect in reputation enhancement.
Ive got years of we did that just
imagine what we could do for you.
Q
What was the hardest
question or issue to reconcile
in order to get board
approval?
A
The most difficult thing was
the return on investment
equations. How to give them
some confidence that our
hunches were right. So we did quite
a lot of work on building a model
and actually once that was
presented, because they bought all
of the other reasons, it was a
relatively straightforward decision.
Also everyone was going for it, and
for an American company its a huge
feather in the cap to beat some other,
very well known UK communications
groups.
Q
How have you structured
your business to maximise
Olympic opportunities?
A
We had to get used to the fact
we are also a client: a sponsor.
For people who are used to
service provision, we had to
create a structure that didnt just
concentrate all our efforts on
delivering what they need, we had to
have other people going well, hang
on, Ive got rights and to make sure
they were heard. So we created a
very small central team, four of us,
and then around each of the
companies we created a team. So as
not to duplicate, the central team
works with all of the people who
execute the disciplines. For example,
I would walk into FutureBrand, the
single biggest provider of marketing
services for McCann Worldgroup in
relation to London 2012, and we
would use some of the client service
people but we would use the
designers directly. We would do the
same with our sports marketing
company, Octagon, or our events
company, Jack Morton. It doesnt
duplicate roles and it also meant we
didnt have huge numbers of people
on it full time for a value in kind
contract. Working smartly worked
for everybody, and the London
organising committee loved the idea
of having a core team that could
stitch everything together.
We then created a separate team
who didnt have to worry about what
we were delivering but were totally
focused on what we are getting out of
it, getting this compelling story in
front of a very tight audience of poten-
tial clients in the UK.
Q
What has been the employee
reaction to being involved
with the Olympics?
A
Its a fantastic buzz around the
office. When we were able to
use the London 2012 logo on
our business cards, it was
amazing how many people had
suddenly run out because they
wanted it on. Its a massive boost to
morale.
Q
What advice can you give to
non-official partners about
this summers commercial
opportunities?
A
We do a lot of country
branding, and non-sponsors
should be thinking about how
they can contribute to an
improvement in Brand UK for every
single visitor that comes to this
country. You dont have to be at the
Games to make the trip a success.
Nick Sykes is managing partner of London
2012 for McCann Worldgroup.
Nick Sykes is helping McCann Worldgroup reinvent Olympic marketing from soup to nuts
G
E
T
T
Y
I
TS been four years since the
darkest days of the global financial
crisis, but its reverberations
continue. From all sorts of
different stakeholders, numerous
reports and reviews have been
launched to look into the causes of
the crisis and there have been plenty
of recommendations for reform to
prevent lightning from striking
twice. Up until recently though, one
set of voices has been notably absent
from the debate: the investors.
This matters investors are the own-
ers of the worlds businesses and are
in a prime position to influence the
management of those businesses in
such a way that protects their invest-
ments. But the role of the modern
investor is often overlooked; the fact
that what some are calling the share-
holder spring is only just beginning
with a handful of votes to register dis-
quiet with executive pay draws
attention to investors earlier silence.
True, investor voices arent exactly
homogenous, which can make it hard
for investor concerns to cut through,
but at the same time, policymakers
usually do not see investor opinion as
a starting point for reform or a refer-
ence point against which to prioritise
issues. Instead, what usually drives
reform programmes are the plethora
of individual responses from multiple
regulators and jurisdictions, each
with their own aims. The consequent
piecemeal approach to reform can
cause problems further down the
road.
THE BIG PICTURE
This isnt to criticise regulators: indi-
vidually they do a good job. But by
considering issues from their own
particular perspective, there is little
focus on the inter-relatedness of
issues, their impact on other jurisdic-
tions, or their relative priority.
Investors, on the other hand, tend to
be able to see the bigger, global pic-
ture. Liz Murrall, chair of the
International Corporate Governance
Networks accounting and audit prac-
tices committee, believes that:
Everybody seems to be running at
the corporate reporting model from
every direction. We have national
standards setters setting require-
ments for the front of the accounts,
and international standards setters
setting requirements for the back.
This is resulting in a framework that
is not cohesive.
Re-engaging with investors, bring-
ing their views to the fore, and
emphasising their role in corporate
accountability will help develop a pos-
itive agenda for change. It will help
strengthen reporting, assurance, and
corporate governance, generate an
overview of all issues, promoting a
With chief executives toppling
the shareholder is king this spring
more integrated picture of the finan-
cial and accounting system, and pro-
vide structured evidence to inform
wider debates in business, the
accountancy profession, and the polit-
ical sphere. This can only be in the
public interest.
ACCA has repeatedly called for a
focus on the investor, whether in cor-
porate reporting or corporate gover-
nance, and our Standards for Business
focus highlights the need for integrat-
ed standard setting. Weve recently
been working with Grant Thornton
globally to collect the views of investor
groups on assurance, reporting, and
governance systems. Several key
themes have emerged from our discus-
sions: the need for a proper under-
standing of investor needs; the need
for greater investor participation in an
integrated reform agenda; and
investors desire for higher standards
of corporate governance, the broaden-
ing of reports, and expanded assur-
ance and audit.
One of the biggest problems for
investors is that their basic needs and
assumptions are often overlooked or
misunderstood by policymakers. For
example, investors weve spoken with
are irritated that some non-investors
have taken a poor view of short-term
investments, a form of investment
investors believe is essential, as part of
an overall mix, for properly function-
ing markets.
Likewise, despite ostensibly being
the ultimate customer in financial
reporting systems, investors believe
their needs are inadequately consid-
ered in the reform process. Liz Murrall
told us that: One of the faults there
may have been with the accounting
standards setters was that often it was
difficult to see if what they were pro-
posing was a noticeable improvement
to the information that was reported
to the capital markets, and whether or
not, in setting their priorities, that had
been a consideration.
INTEGRATED REPORTING
While there were criticisms of the sta-
tus quo, there were also suggestions
on how to improve matters: integrated
reporting and corporate governance
were identified as priority areas for
reform.
Integrated reporting the bringing
together of all material information
about an organisation in one report
was particularly favoured. Claudia
Kruse at APG Investments says we
have taken a very strong view that
integrated reporting has to be taken
forward. Its important [that] the stan-
dard setters are fully behind it, partic-
ularly in the US, so that it gains
further momentum.
Turning to corporate governance,
investors almost uniformly see contin-
uous improvements in standards as
essential for maintaining their confi-
dence in companies reports.
Specifically, investors identify a num-
ber of areas of high importance: strong
internal audit; consistent, high-quality
audit committee reporting; truly inde-
pendent independent directors; the
beefing up of risk disclosures; and the
tightening of bank regulation.
As well as praising the role of the
internal auditor, investors also value
the role of the external auditor, but,
like ACCA, they feel the scope of audit
and reporting can be extended and
enhanced. Dr Ian Wood from AMP
Capital explains the investors prob-
lem: Auditors get asked to say
whether [information in the annual
report] is a fair and reasonable descrip-
tion of the company at a particular
point. They might say yes, whats
depicted is reasonable. The problem
is, that doesnt mean its right from an
investors perspective. The auditors
can say what the company is hedging,
but they are not in a position to say
whether its a good approach to hedg-
ing.
INVESTOR RESPONSIBILITY
There is an acceptance too, that
investors need to take on more respon-
sibility for raising their profile. More
pro-active engagement from investors
with standard setters is certainly
something that has been more notice-
able recently, exemplified in the UK by
the FRCs Financial Reporting Lab, a
project aimed at bringing investors
and companies together to discuss
issues in reporting. Investors weve
spoken to also acknowledge their
responsibility to invest wisely sup-
porting companies that take diligent
approaches to corporate governance,
for example and share best practice.
Raising the volume of investor voices
leaves some important questions that
need answers: how can standard set-
ters develop a more co-ordinated agen-
da? How can the voices of investors be
more clearly heard in the financial
reporting reform process?
Adjustments to the current financial
reporting framework are needed, and
will be made. If they are to be relevant
and to create value, then greater and
more co-ordinated thought needs to
be given to the needs of investors
around the world and the reforms
that would most increase their confi-
dence in global financial markets. As
Steve Maslin, a Grant Thornton part-
ner, argues, Investors are willing to
explore new approaches to developing
financial reporting reforms. They sup-
port the concept of a more integrated
process that emphasises the interrelat-
ed nature of accounting, reporting,
auditing and corporate governance
standards and regulations. Any pro-
posals for reform must begin with a
sound analysis and understanding of
the challenges investors face and their
most urgent priorities for improve-
ment. Whatever happens, investors
need to be listened to.
Andrew Leck is head of ACCA UK.
ANDREW LECK
Time for a focus on the investor
But changes of the
financial reporting
framework are needed
WEDNESDAY 16 MAY 2012
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ACCOUNTINGBUSINESS
cityam.com
Everybody seems
to be running at the
corporate reporting
model from every
direction

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cityam.com
I
ts possible that you havent
heard of Infiniti but its a
company thats prepared to
kidnap a colour in the pursuit of
brand awareness. How very modern.
Infiniti wants to render us all
unable to see the colour purple
without thinking about its brand.
During lunch, even my mashed
potatoes were purple.
Launched 20 years ago in North
America, Infiniti was conceived to
present a very modern definition
of luxury and attract buyers who are
looking for an unusual alternative to
the more established premium
brands. Now it wants to account for
10 per cent of luxury cars globally in
all of the key car markets, except for
Japan.
Im in Munich driving the latest
version of Infinitis FX SUV crossover
model. The FX promises to mix
sports coupe performance with SUV
practicality and the flagship 5.0-litre
V8 version the FX50 can sprint
from 0-62mph in seven seconds. Its
a car that Infiniti promises is more
sportscar than SUV and its the
model most people associate with
Infiniti. Today, though, Im driving
the FX30d GT, which sees the power-
ful V8 engine of the FX50 replaced
with a more modest 238hp 3.0-litre
turbocharged V6 diesel for the
European market, and which will
almost certainly be the best-selling
in the UK.
It certainly looks different. To
some peoples eyes, this is not an
attractive car. But to mine, it adds a
very interesting alternative to the
usual boxy form of SUVs, or so-called
SUV crossovers. The very long bon-
net and low, curved, coupe-style
roofline suggest speed like a
sportscar on steroids rather than
SUV practicality. It really does stand
out.
Perhaps, then, youll not be sur-
prised to learn that inside the FX is
not the most spacious of SUVs, given
its exterior shape. But thats not the
point. Infiniti has designed the FX so
that the engine is as far back as pos-
sible, to maximise weight distribu-
tion. The cabin inside is comfortable
and well specced out, if a little dull.
Instrument illumination is, unsur-
prisingly, in purple.
The steering is good; communica-
tive and with a driving position that
feels akin to a sportscar but at an ele-
vated height. In the bends, the FX
handles well for a big car. It has plen-
ty of grip and is more agile than
expected. The AWD system is really
quite clever. It functions as a rear-
wheel drive unless four-wheel drive is
needed, when it can send power to
wherever its needed.
Still, it feels most at home on the
motorway. There is a short delay
when you put your foot down,
thanks to that turbo, and so it is
most fun when already wound up.
The seven-speed automatic gearbox
can, of course, do all of the work for
you, or you can shift using the pad-
dles behind the steering wheel. Gear
changes are not always smooth but
the overall experience is relaxing
enough.
Inside the cockpit you dont get to
hear much of the diesel engine
unless you have your foot down,
when it doesnt have most agreeable
exhaust note. Overall, the FX30d just
doesnt feel quite quick enough,
despite being very sporty for an SUV.
With the FX, Infiniti hopes to
attract people who love coupes but
will be prepared to trade up into FX
when their lifestyle changes, as well
as pinch punters from other brands.
Its a car for people who dont want
to drive an Audi, BMW, Lexus or
Mercedes because so many other peo-
ple do. In that context its a roaring
success. It is uniquely different and
quite unlike anything else on sale.
Which means if its your kind of
thing, the FX could be a seductive
proposition.
Purple comes as standard on this SUV crossover. Inset: the slick steering wheel, which comes with gear paddles.
FX30d aims for Infiniti and beyond
You may not have heard of high-end brand Infiniti but its aiming for an ambitious
10 per cent of the luxury car market. We road test its SUV crossover FX30d GT
WEDNESDAY 16 MAY 2012
LIFE&STYLE MOTORING
CAR TALK
BY RYAN BORROFF
Ferrari looks to its famous racing day
Ferrari is aiming to paint the track red in September when its famous
Ferrari Racing Days weekend returns to Silverstone. Vintage F1 Ferraris
and iconic models including the FXX and 599XX will all undertake
demonstration laps. Ferrari owners will get a chance to race their own
cars or can join in the latest attempt to claim the Guinness World Record
for the Largest Parade of Ferrari Cars. www.ferrariracingdays.com
WORDS BY
RYAN BORROFF
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhii
PRACTICALITY hhhii
VALUE FOR MONEY hhhhi
THE FACTS:
INFINITI FX30D GT
PRICE: 46,840
0-62MPH: 8.3 secs
TOP SPEED: 132mph
CO2 G/KM: 238g/km
MPG COMBINED: 31.4mpg
Smart to launch electric scooter
Carmaker smart has announced it is going to produce an electric
scooter. The fully electric e-scooter which represents smarts idea of
future urban mobility will join the companys growing portfolio of
electric vehicles. The German automaker will deliver its first electric
smart Fortwo this summer and its e-bikes are already on the road. The
escooter should go on sale in 2014.
Get ready for Goodwood
If youve never been to the Goodwood Festival of Speed, which takes
place between 28 June until 1 July, then perhaps its time you went. This
celebration of the worlds fastest cars attracts many of the worlds
quickest drivers. Formula 1 drivers Sebastian Vettel, Lewis Hamilton and
Jenson Button will race at Goodwood this year, alongside veteran racers
including Alain Prost, Sir Stirling Moss and Emerson Fittipaldi.
T
HE Salon is a little known part
of the Ritz, up on the seventh
floor. Its a surprisingly
unguilded haven plainly
decorated, and quiet but for the
civilised murmur of ladies having
their hair and nails done and the
odd door closing softly behind
someone going in for a treatment.
Into this rarefied atmosphere I
strolled one recent Friday, seeking a
wind-down after a busy week. The
Salon recruits unusual treatments;
last time I was here it was for a gold
manicure with Orly, which involved
nail art in a glittering bronze colour.
This time theyve got in Comfort
Zone, a rather lovely range of prod-
ucts from Italy and not until now
used in the UK. The Salon has collab-
orated with Comfort Zone to create
three long-named treatments: a
facial (The Ritz Signature Precious
Pearl Face Ritual), a body treatment
(The Ritz Signature Precious Pearl
Body Cocoon) and a facial plus body
treatment (you can guess).
I had the latter. And it was
absolutely lovely. The treatment bed
is comfortable, for a start, which
cannot be said of all flashier spas.
So, as I lay face down, within five
minutes of the soothing yet firm
strokes of the therapists exfoliating
brush I was nearly asleep: remark-
able given the hyperactivity of my
mind beforehand.
Its too nice to sleep through,
though. The products smell divine
almonds, honey and flowers in one
and evidently they are laced with
pearl powder. The combination of
exfoliation, body polish and mas-
sage is wonderful and your relax-
ation is uninterrupted by anything
so troubling as having to go and
wash either the exfoliating scrub or
the body mask off. The therapist
in my case the lovely Anna expert-
ly manages the whole thing for you.
The facial includes a terrific pres-
sure point massage in my view the
high point of a face treatment (how
many creams can you rub in a cir-
cle, after all?). The wholeness of this
treatment is what makes it so satis-
fying cocooned is just the right
word for how I felt when the feared
final moment of the treatment
arrived. 140 for 90 minutes. To book,
call 020 7300 2435 or email
salon@theritzlondon.com.
Cocooned in
style at the
Ritzs Salon
Zoe Strimpel has a yummy body treatment
WEDNESDAY 16 MAY 2012
32 LIFE&STYLE FOOD & DRINK
T
he Cutty Sark clipper ship has
long been one of the jewels in
Britains maritime crown.
One of the last of the
clippers, it was built for speed,
tearing through the seas on its
voyage to and from China on the
lucrative tea trail. Docked at
Greenwich, it cut an imposing
figure, with its svelte frame and
tall masts. But in 2007, disaster
struck when the 143-year-old
vessel was ravaged by fire.
Now though, the newly
reopened treasure holds a new
draw: it is raised three metres
above its dry dock, allowing
people to pass underneath its
copper hull and imagine it zipping
through the ocean, its hold packed
with fresh tea leaves.
The contrast between the iron
and glass latticework frame and
the boat itself is striking: a colli-
sion of old and new. Its restoration
has seen history and technology
dovetail to save this unique ship
and allow a new generation to be
captivated by the spirit of the sea.
Its restoration over the last five
years has been painstaking. The
innards of the ship bore the brunt
of what police suspected may have
been arson and the original tim-
bers many of which had been
removed for restoration at the
time of the blaze had to be care-
fully grafted back into the hull.
The boats place in the heart of
the nation was shown by the vast
number of donations from the
public, helping to cover the 50m
cost of the restoration work.
In April the Queen reopened the
Cutty Sark to the public. Its gilded
bows and copper hull gleam in the
light: a truly timeless reminder of
Britains maritime past. Since 1957,
more than 13m people have visited
the ship the new work guarantees
this number will rise exponentially
over the coming years and decades.
The gleaming copper hull of the renovated Cutty Sark.
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For the next month City A.M. and Brewin Dolphin will be shining a spotlight
on a series of City Treasures as we celebrate some of the great places and
institutions around us. Many of them are established with a long
and interesting heritage yet they still exude their core values
based on service and excellence.
Tomorrow is the Old Curiosity Shop.
www.brewin.co.uk
EPISODE 56: OVER THE LIMIT
where parents and children gather
outside.
How would I have answered? That
mummy and I had a horrible argument, I
drank far too much and collapsed into the
spare room bed? It has the advantage of
truthfulness. Now Im hungover,
unshaven, scruffy and chucking a sickie.
As I approach the forming line of children
I hear Mr Donnelly, his back to me, quip to
a couple of BAFTA-winning, Italian-suited
TV producers, dads of various Jocastas
and Dexters, Give a man a gun and he
can rob a bank. Give a man a bank and he
can rob an entire nation. Smug laughter
all round.
Mr Donnelly turns to inspect his
charges but, instead, confronts me. Mr
Cashman. Ah Noel and Billy career into
the back of the line of seven year olds,
sending a ripple through the class. Noel.
Billy. Be careful. Right, in you go, says Mr
Donnelly. The children enter the
classroom, Noel and Billy giggling at the
rear of the line. Mr Donnelly turns and
enters the classroom.
I walk away, wondering whether I
should make Donnelly an offer he cant
refuse. He has a great reputation. Maybe
quadruple his salary to tutor Noel at
home. Thatd ruffle some BAFTA-winning
feathers. I pass a putrid rubbish bin and
retch violently. My head spins. And as I
raise my head I see Mr Donnelly watching
me from the classroom window.
City Dad continues next Tuesday. For a
full archive of City Dad log on to
cityam.com.
CITY DAD
Weve walked to school in silence, Noel
swinging his book bag, but as we enter
the playground Noel asks, Daddy, why
were you sleeping in the spare room? Im
about to attempt an answer when Billy
dashes past us. Noel wheels into his best
friends slipstream and they are gone.
Somehow, during this manoeuvre, Noel
has transferred his book bag into my
hand. I walk towards Noels classroom,
FIT IN
THE CITY
LAURA WILLIAMS
FITNESS & DIET EXPERT
Prep for summer
with Rodials new
sculpt treatment
This week I continue my search for the
citys best beach shape-up regimes.
TRIED & TESTED: THE POWER
PLATE/RODIAL SUMMER SCULPT
Every so often a collaboration occurs
thats so sexy you sign up for it without
really knowing what it is. This summers
sexiest link-up is between Power Plate
(www.powerplate.com/uk) and Rodial
Skincare. Summer Sculpt is a series of
dynamic, high-intensity Power Plate
classes (think bouncy split squats on a
vibrating platform) complimented by
Rodial (www.rodial.co.uk) products such
as their Tummy Tuck and Arm Sculpt
cream.
Having always longed to be busty and
dimple-free (highbrow goals, I know) I
opted for the Boob Job and Body Sculpt
creams and headed off to the Power Plate
Academy convinced this was never going
to produce the same results as a set of
dumbbells and lots of exercise know-how.
Wrong. Despite the fact that I like to think
of myself as pretty conditioned, I still got
up a sweat in the short classes as
promised, and I do believe every last
gluteal fibre (bum muscle) was recruited.
Not that surprising if you read the
scientific evidence for Power
Plate/vibration training its believed
muscular strength is increased via the
stimulation of tiny receptors in the muscle
picking up the vibration and causing
muscles to contract more fully than they
would on a less turbulent surface. Ah. So
thats why the likes of Serena Williams
and Clint Eastwood swear by it (Clint
Eastwood likes a PowerPlate before a
round of golf because it helps him stay
loose and flexible).
VERDICT
Rodials Boob Job cream I wasnt so sure
about put it this way, I wont be needing
Katie Prices hand-me-downs anytime
soon, but the Body Sculpture cream does
leave skin very smooth and fresh looking.
As for Power Plate, consider me
converted - it normally takes a lot longer
than that to get me some good DOMS
(Delayed Onset Muscle Soreness, aka that
John Wayne walk) after a workout these
days. Its not a miracle alternative to
eating less and moving more, but you will
get great results in a much shorter space
of time than with many other gym
workouts.
www.laurawilliams.com
cityam.com
The sedate Ritz salon has created three luxuriant Comfort Zone treatments.
WHY THIS MARITIME JEWEL IS WOWING VISITORS IN A NEW WAY
- CUTTY SARK -
33
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
7pmSky Sports News 7.30pm
Live Football League 10pmYoure
on Sky Sports! 11pmFIFA
11.30pmFootball Asia 12am
Football League 1.30amYoure on
Sky Sports! 2.30amTotal Rugby
3amFootball League 4.30am
Football Asia 5amFIFA
5.30am-6amTotal Rugby
SKY SPORTS 2
6pmLive Masters Tennis 8pm
Boots n All 9pmTotal Rugby
9.30pmSporting Greats 11pm
Total Rugby 11.30pmFIBA
Basketball 12am-2amPGA
EuroPro Tour Golf
SKY SPORTS 3
7pmEuropean Tour Golf 8pm
PGA EuroPro Tour Golf 10pm
Cage Fighter 10.30pmTrans
World Sport 11.30pmCage
Fighter 12amWatersports World
1amPool 2am-3amProfessional
8 Ball Pool Masters
BRITISH EUROSPORT
6.45pmLive Diving 7.45pm
Wednesday Selection 7.50pm
Equestrian 8.50pm Riders Club
8.55pmAlexias Selection 9pm
PGA Tour Golf 10pmLadies
European Tour Golf 10.10pmGolf
Club 10.15pmSailing 10.45pm
Yacht Club 10.55pmLive Cycling
11.45pmCycling: Giro dItalia
12.45am-12.55amGT Academy
ESPN
6.30pmLive Turkish Cup Final
8.45pmESPN Kicks: Extra 9pm
Russian Premier League Review
9.30pmWorld Series by Renault
11pmPremier League World
11.30pmPress Pass 2012 12am
UFC 3amGoal Show3.30am
Bundesliga 4amPremiership
Rugby Union 5.30am-6amFrench
Top 14 Rugby Union
SKY LIVING
7pmSteps: On the Road Again
8pmThe Secret Circle 9pmBones
10pmGreys Anatomy 11pmThe
Love Machine 12amBones 1am
Criminal Minds 2.40amMedium
3.30amBones 4.20amLuton
Airport 4.45amNothing to
Declare 5.10am-6amJerry
Springer
BBC THREE
7pmDont Tell the Bride USA
7.50pmDont Tell The Bride:
Greatest Moments 8pmFree
Speech 9pmDont Blame the Dog
10pmFILMCon Air 1997.
11.50pm Family Guy 12.30am
American Dad! 1.15amSnog,
Marry, Avoid? 1.45amDont
Blame the Dog 2.45amThe 16
Year Old Killer: Cyntoias Story
3.40amSnog, Marry, Avoid?
4.10am-5.10amBritain Unzipped
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmFILMTake the
Lead 2006. 10.20pmFILMSaw
IV 2007. 12.10amThe Big Bang
Theory 1.10amScrubs 1.35am
How I Met Your Mother 2.05am
Rules of Engagement 2.25am
Accidentally on Purpose 2.45am
David Blaine: Drowned Alive
3.30amDesperate Housewives
4.15am90210 5am-6amGreek
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmNo County for Old Men
9pmSwamp People 11pm
American Pickers 12amStorage
Wars 12.30amPawn Stars 1am
Swamp People 3amIce Road
Truckers 4amHeir Hunters
5am-6amAncient Discoveries
DISCOVERY
7pmBear Grylls: Born Survivor
8pmMoonshiners 9pmRiver
Monsters 10pmSons of Guns
11pmGold Rush 12amBear
Grylls: Born Survivor 1amRiver
Monsters 2amSons of Guns 3am
Deadliest Catch 3.50amIce Pilots
4.40amWheeler Dealers
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSay Yes to the Dress 8pmI
Didnt Know I Was Pregnant 9pm
Hospital Sydney 10pmEmergency
11pmUntold Stories of the ER
12amHospital Sydney 1am
Emergency 2amUntold Stories of
the ER 3amSay Yes to the Dress
4amA Baby Story 5am-6am
Birth Stories
SKY1
8pmEmergency Abroad 9pm
Touch: A woman is reunited with
her biological mother and twin
sister. 10pmFringe 11pmLaw &
Order 12amRoad Wars 1am
Airline USA 2amBrit Cops:
Frontline Crime UK 2.55amBig
Trouble in Thailand 3.45amBody
Language Secrets 4.35amReal
Filth Fighters 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmPlanet Earth Live:
BBC News
8pmCHOICE DIY SOS: The
Big Build
9pmThe Apprentice 10pmBBC
News 10.25pmRegional News
10.35pmThe National Lottery
Wednesday Night Draws 10.45pm
FILMCast Away. 2=000; National
Lottery Update 1amWeatherview
1.05amSign Zone: See Hear
1.35amSign Zone: The 70s 2.35am
Sign Zone: Great Ormond Street
3.35amSign Zone: Chaplains:
Angels of Mersey 4.05amSign
Zone: Great British Railway
Journeys 4.35am-6amBBC News
6pmEggheads
6.30pmAntiques Road Trip:
Anita Manning and Mark
Stacey conclude their contest.
7.30pmGreat British Menu
8pmAntiques Uncovered
9pmFelicity Kendals Indian
Shakespeare Quest: The
actress explores the countrys
love for the Bard.
10pmThe Apprentice: Youre
Fired
10.30pmNewsnight: Weather
11.20pmThe Town Taking on
China
12.20amBBC News
3.20am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmThe Unforgettable
Noele Gordon
8pmCHOICE Lewis: New
series. A botanist accidentally
unearths a body.
10pmITV News at Ten
10.30pmLondon News
10.35pmMy Dad Is a Woman
11.35pmTotal Emergency
12.30amJackpot247; ITV
News Headlines
2.30amFILM All Creatures Great
and Small. 1974. 4am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Secret Eaters:
New series. Fat families eating
habits are scrutinised.
9pm24 Hours in A&E
10pmThe Killing
10.55pm2 Broke Girls
11.30pmDesperate
Housewives
12.30amRandom Acts
12.35amMusic on 4
3.05amSmallville 3.50amSt
Elsewhere 4.35amDeal or No Deal
5.30am-6.15amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmThe Gadget Show: World
Tour: 5 News Update
8pmEmergency Bikers: 5
News at 9
9pmNCIS
10pmLaw & Order: Special
Victims Unit
10.55pmLaw & Order: Special
Victims Unit
11.55pmPoker: The Big Game
12.55amSuperCasino
3.55amHouse Doctor 4.20am
HouseBusters 4.45am
HouseBusters 5.10amWildlife SOS
5.35am-6amWildlife SOS
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
digits1-9 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
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.
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.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5 6 7 8
9
10
11
12 13 14
15 16 17 18 19
20 21
22
23 24
25
26 27
20 6
11 30
45
24 10 12
8 38
13 7
22 13
15 5 9
45
10 29
23 7
13
12
35
34
14
14
14
19
28
15
16
38
10
20
6
27
16
15
30
26
ACROSS DOWN
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S T A T E M E N T
A R I E E A
S W A R M L A W N S
S M E C O E C
U P P E R N E R V E
R D A N
A B H O R M U M P S
N A O B I E I
C H I N A D I E G O
E K S S T N
M U L T I T A S K
7 2 9 8 9 3 1 2
9 1 8 6 8 6 9 5
7 2 1 5 5 1
1 2 5 3 4 1 7 3
6 9 7 9 6 5 8
2 7 1 5 1 2 3 7
4 2 1 6 3 4 9
9 8 3 9 7 4 6 8
7 1 2 8 5 3
8 6 9 4 4 2 1 9
6 3 2 1 2 1 3 8
4
4
4
4
4
4
4
4
4
The nine-letter words were
FORESTING and FOSTERING
1 Gasps for breath (5)
4 Drinking vessel (5)
9 High male voice (4)
10 Resembling a
dream (7)
11 Spring-loaded
door fastener (5)
12 Block the passage
through (6)
15 Land measure (4)
18 Character from an
ancient Germanic
alphabet (4)
20 One of four playing-
card suits (6)
22 Rle player (5)
23 Faced boldly (7)
25 Fit of shivering
or shaking (4)
26 ___ rma, solid
ground (5)
27 Jerks violently (5)
1 Saron-avoured
dish made of rice
with shellsh and
chicken (6)
2 Help to develop
and grow (7)
3 Japanese dish (5)
5 Food store (6)
6 Alcoholic beverage (3)
7 Flower part (6)
8 God of the sun, the
equivalent of the
Greek god Helios (3)
13 Rug (3)
14 Trash can (7)
16 Price for some
article (6)
17 Breadwinner (6)
19 Emergence (6)
21 In an unfortunate
manner (5)
23 Overweight (3)
24 Belonging to us (3)
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
WEDNESDAY 16 MAY 2012
DIY SOS: THE BIG BUILD
BBC1, 8PM
Nick Knowles helps adapt a house for
Eric Rivers, who suffers from motor
neurone disease, enlisting the help of
his friends and neighbours.
LEWIS
ITV1, 8PM
A botanist accidentally unearths the
body of a recently buried professor
who was fixated upon solving a
seemingly impossible riddle.
SECRET EATERS
CHANNEL4, 8PM
Anna Richardson puts fat families
under surveillance to scrutinise their
eating habits, beginning with a brother
and sister from the Wirral.
TVPICK
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RITISH summertime may have
hampered West Indies
preparations but England
would be foolish to go into
tomorrows first Test
underestimating their opponents.
The Windies have some good pace
in their attack and gave Australia a
proper contest last month. Perhaps
they lack enough all-round strength
to worry a switched-on England, but
if Andrew Strauss and his team
begin with the same lack of focus
that they exhibited against Pakistan
in Abu Dhabi, they could get a nasty
surprise. It is critical that England
are ready to play; if so, they should
win and win nicely.
Yorkshires Jonny Bairstow is in
line for a Test debut in the middle
order, preferred to Eoin Morgan,
Samit Patel and James Taylor.
Morgan needs to get his head
down again, Patel can perhaps
consider himself a little unlucky
that conditions dictate his spin is
not required, while Taylor is a great
prospect but is probably destined to
be an opening batsman, maybe one
day replacing Strauss.
Bairstow, meanwhile, shone when
given a chance in one-day
internationals and has impressed
those Ive spoke to on the county
circuit. The selectors have chosen to
use this series to blood some new
talent and I think thats a very
sensible idea.
Englands biggest headache is
over who should be third seamer,
alongside James Anderson and
Stuart Broad, with Steven Finn,
Graham Onions and Tim Bresnan
each boasting strong claims.
I suspect Bresnan will get the
nod, but personally Im a huge fan
of Onions and would love to see him
back in the team.
Back problems halted a promising
international career and it has
taken him time to rediscover top
form, but he is doing it week in,
week out for Durham now and
deserves another shot.
Andy Lloyd is a former England Test
cricketer, and captain and later chairman
of Warwickshire.
CRICKET
COMMENT
ANDY LLOYD
Ferdinand is set to be the most high-profile casualty of Hodgsons Euro 2012 selection
Onions has fought back from injury
WEDNESDAY 16 MAY 2012
34
SPORT
cityam.com/sport
ENGLAND manager Roy Hodgson is
poised to omit international stalwart
Rio Ferdinand and include former
captain John Terry, despite his loom-
ing trial for alleged racial abuse,
when he names his squad for Euro
2012 today.
Hodgson is thought to have
acted on concerns that 33-
year-old Ferdinand, who
has not played for
England for almost a
year due to persistent
injuries, would not be
able to cope with the
tournament schedule.
The surprise decision
could signal the end of
Manchester United defender
Ferdinands international
career and points to Chelsea skipper
Terry winning a place in the 23-man
party for next months European
Championship.
Major doubts had been raised
about the willingness of the two cen-
tre-backs to play together, as
Terry faces trial in July over
allegations he racially
abused Ferdinands
brother, QPR defender
Anton, in a Premier
League match in
October. Terry denies
the claims.
Tottenham right-back
Kyle Walker is also set to
miss out with a toe injury,
while other high-profile omis-
sions are expected to include
Manchester City defender Micah
Richards and experienced Stoke for-
ward Peter Crouch.
Liverpool striker Andy Carroll is
poised to make Hodgsons first squad
after the 35m target man recently
Ferdinand out
and Terry in as
Hodgson picks
Euro 2012 party
showed glimpses of the form that
made him the most expensive British
player of all time.
Hodgson will confirm his selection
at this afternoon, when he is likely to
face questions about whether Terrys
selection was linked to any reluc-
tance on Ferdinands part to resume
their long-standing partnership.
Former West Brom, Liverpool and
Fulham manager Hodgson is
believed to have informed
81-cap Ferdinand of his fate
by telephone yesterday
before visiting Chelseas
training ground to speak
to Terry.
United manager Sir
Alex Ferguson voiced his
concerns about Ferdinands
durability at the weekend, say-
ing: You play something like a
game every four days Rio couldnt
do that.
Football Association chiefs stripped
Terry of the captaincy in February
owing to the ongoing criminal pro-
ceedings, a move that prompted
Fabio Capello to resign as head
coach and the FA to recruit
Hodgson this month.
Liverpool midfielder
Steven Gerrard is the
favourite to be made skip-
per, while a list of five
reserves is expected to
include Everton centre-
back Phil Jagielka.
Hodgson has also flexed
his muscles by scrapping plans
for the squad to travel to Malaga,
Spain, next week for a training camp,
in favour of giving them an extended
recuperation period. His first match
in charge is a friendly against Norway
in Oslo on 26 May, followed by a final
Euro 2012 warm-up with Belgium at
Wembley on 2 June.
BY FRANK DALLERES
WEST INDIES coaches have brushed
off fitness concerns over their fast-
bowlers ahead of tomorrows first
Test against England at Lords.
Kemar Roach, Fidel Edwards and
Ravi Rampaul all managed to bowl
in training yesterday despite niggles
resulting from last weeks defeat to
England Lions.
Everybody pulled up okay today,
said coach Ottis Gibson. Kemar
twisted his ankle at Northants at
Tourists attack declared fit to
spoil start of Englands summer
this stage hes doing okay. Ravi is
fine, and Fidel is as well. Everything
looks all set for Thursday.
England paceman Stuart Broad,
meanwhile, has urged the home side
to hit them hard when their
summer programme begins with the
first match of a three-Test series.
Theyve got two bowlers who can
bowl very quick, theyve got
[Shivnarine] Chanderpaul whos a
world class batsman, so theyre
certainly a team we have to be very
careful of, Broad added.
BY FRANK DALLERES
FIVE Indian Premier League
cricketers have been suspended
and an investigation launched
following allegations of spot-fixing.
Pune Warriors Mohnish Mishra,
TP Sudhindra of Deccan Chargers,
Kings XI Punjab pair Shalabh
Srivastava and Amit Yadav, and
Abhinav Bali have been banned by
domestic cricket chiefs until the
probe is concluded.
It comes after an Indian
Indian Premier League players
suspended over fixing claims
television network claimed players
had been caught on hidden camera
engaging in corruption relating to
the IPL, crickets richest
competition, and domestic first-
class matches. Srivastava has
denied the allegations.
IPL commissioner Rajiv Shukla
said: The Board of Control for
Cricket in India has decided to
suspend these players from all
cricket till preliminary
investigation into the whole
episode is completed.
BY SPORTS DESK STAFF
Onions merits
a recall against
West Indies
64%
England win rate in
John Terrys 72
games
57%
England win rate in
Rio Ferdinands 81
games
35
IN BRIEF
Barton blasted by players chief
nFOOTBALL: QPR captain Joey
Barton is doing himself no favours,
admits players chief Gordon Taylor.
Barton is facing a huge ban after
reacting violently to his red card at
Manchester City on Sunday.
Ulster want ODriscoll return
n RUGBY UNION: Ulster boss Brian
McLaughlin insists he wants Leinster
star Brian ODriscoll to recover from
knee surgery for Saturdays Heineken
Cup final. You wouldnt want anyone
to miss an occasion like this, he said.
Cavendish points boost in Giro
n CYCLING: Britains Mark Cavendish
edged closer to points jersey leader
Matt Goss in the 10th stage of the Giro
dItalia. Spaniard Joaquim Rodriguez
won the stage and took the overall
lead from Ryder Hesjedal.
G
E
T
T
Y
G
E
T
T
Y
Manchester City target Eden Hazard scored 17 goals
and made 19 assists for Lille this term, enhancing his
status as one of Europes hottest properties
cityam.com
WEDNESDAY 16 MAY 2012
Photography: Simon Procter
Millinery: Stephen Jones
Attire: Antonio Berardi
royalascothospitality.co.uk
0844 411 5081
Results
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Hartley set for bite ban return
but Lancaster sweats on Flood
CHELSEA manager Robert di
Matteo is refusing to let the
prospect of a swift and ruthless
departure distract him from his
mission to take the club into
uncharted territory by winning the
Champions League.
Di Matteo knows that even
victory in Saturdays final against
Bayern Munich at the Germans
own Allianz Arena may not be
enough to convince Blues owner
Roman Abramovich to prolong the
Italians brief tenure.
But he said: I have a big drive
and a big motivation to do
something extraordinary for this
club. Thats all I want to do.
Whatever comes afterwards, theres
always a reason why things happen.
This game can decide the history
of our football club. It would be the
first time we would win the
European Champions League.
Thats all that matters and all were
thinking about and focusing on.
Di Matteo has already led Chelsea
to the FA Cup in a 10-week spell in
charge since replacing the
sacked Andre Villas-Boas, and
has defied expectations by
masterminding their
progress to the cusp of
Champions League
glory. Yet Abramovich
dispensed with
Avram Grant despite
reaching the final in
2008, while a league
and cup double only
bought Carlo
Ancelotti a seasons
grace, and
suggestions of Di Matteos
imminent departure abound.
Suspensions have left the
former Blues midfielder with
a headache and although
defenders David Luiz and
Gary Cahill were fit enough
to train yesterday he
admits that concerns over
their fitness are unlikely
to be banished until the
weekend.
BY FRANK DALLERES
NORTHAMPTON hooker Dylan
Hartley will make his first
competitive appearance since his
eight-week ban for biting when
England warm up for their summer
tour of South Africa by facing the
Barbarians next week.
But coach Stuart Lancaster has
warned that Leicester fly-half Toby
Flood will be cut from the squad for
the southern hemisphere trip if he
cannot prove his fitness for the first
Test on 9 June.
Floods absence would open the
door for Gloucesters Freddie Burns,
who was yesterday among four
players added to Lancasters party
for the Killik Cup clash with the Baa
Baas at Twickenham on 27 May.
London Irish flanker Jamie
Gibson, Haydn Thomas of Exeter
Chiefs and fellow scrum-half
Richard Wigglesworth of Saracens
have also been drafted in as
Harlequins and Leicester players are
on Premiership final duty.
Hartleys return is the most
significant arrival, however,
following the completion of his
suspension for biting Irelands
Stephen Ferris during the Six
Nations victory in March.
Despite his disciplinary record,
Lancaster regards Hartley as one of
his leaders and the New Zealand-
born 26-year-old has been touted as
a future England captain by
forwards coach Graham Rowntree.
Englands new generation are
likely to come up against one of the
old in former captain Mike Tindall,
after the veteran centre was named
in the Barbarians squad alongside
Welsh fly-half Stephen Jones.
Lancaster, meanwhile, has
admitted Flood faces a race to prove
he can overcome an ankle injury
that threatens to rule him out of the
domestic final and, potentially, the
three-Test series against the
Springboks. England doctors will
assess Flood today and Lancaster
said: Clearly there is no point
taking someone who is not available
until halfway through the tour.
He has an ankle injury that will
take a couple of weeks. It will
depend very much on what our
physios and the Leicester physios
think at the time. Hopefully hell be
right for the final and the tour. I
have to make sure I have enough
cover for South Africa.
BY FRANK DALLERES
Hovering axe wont deflect Di Matteo gaze from slice of history
Di Matteo admits Euro glory may
not be enough to keep his job
Hartley has completed an eight-week ban for biting Irelands Stephen Ferris
Mancini compared City to Barcelona
MANCHESTER City manager
Roberto Mancini has urged the
clubs super-rich owners to keep
the purse-strings loose as he plots
adding European titles to his first
Premier League success.
Sheikh Mansour has spent close
to 1bn transforming City from
top-flight also-rans into champions
but Mancini insists further sprees
are necessary if they are to claim
the Champions League. Arsenal
striker Robin van Persie and Lilles
sought-after Belgian winger Eden
Hazard are among the players that
Mancini is thought keen to add to
an already stellar Blues squad.
Barcelona and Real Madrid
every year buy two or three players
and spend a lot of money. I think
for Manchester City it will be the
same, he said. We need to
improve. We need to have the
strength to play Champions League
and Premier League.
Mancini warns
rivals City will
keep spending
BY FRANK DALLERES
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